Document:

POLARITYTE,
INC. 

CHANGE
IN CONTROL COMPENSATION PLAN

 

ARTICLE
I - INTRODUCTION

 

Section
1.1 Background. The Board of Directors of PolarityTE, Inc. (the “Company”), has considered the effect a Change
in Control of the Company may have on certain Executives of the Company. The Board has determined that it is in the best interests
of the Company and its shareholders to assure that the Company will have the continued dedication of its Executives, notwithstanding
the possibility, threat or occurrence of a Change in Control of the Company. The Board believes it is imperative to diminish the
inevitable distraction of its Executives by virtue of the personal uncertainties and risks, including personal financial risks,
created by a pending or threatened Change in Control of the Company.

 

Section
1.2 Purpose. This Plan is designed to encourage the Executives’ full attention and dedication to the Company currently
and in the event of any threatened or pending Change in Control transaction and, notwithstanding the outcome of any such proposed
transaction, to assure fair treatment of such Executives in the event of a Change in Control of the Company.

 

ARTICLE
II - ESTABLISHMENT OF THE POLICY 

 

Section
2.1 Applicability of Plan. The benefits provided by this Plan shall be available to all Executives who, at or after the
Effective Date, meet the eligibility requirements of Article IV hereof.

 

Section
2.2 Contractual Right to Benefits. Subject to the provisions of Article VIII hereof, this Plan establishes and vests in
each Participant a contractual right to the benefits to which he or she is entitled hereunder, enforceable by the Participant
against the Company on the terms and subject to the conditions hereof.

 

ARTICLE
III - DEFINITIONS AND CONSTRUCTION 

 

Section
3.1 Definitions. The following terms shall have the following meanings when used in this Plan with initial capital letters:

 

(a)
“Base Pay” of a Participant means the Participant’s annual base salary from the Company as in effect
on the Termination Date; provided, however, that any reductions in Base Pay following the date of the Change in Control
will not be considered when determining Base Pay hereunder.

 

(b)
“Board” means the Board of Directors of the Company.

 

(c)
“Change in Control” of the Company shall be deemed to have occurred if the events set forth in any one of the
following paragraphs shall have occurred:

 

(i)
The acquisition by any Person of Beneficial Ownership of fifty percent (50%) or more of either (A) the then-outstanding shares
of common stock of the Company (the “Outstanding Company Common Stock”), or (B) 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 subsection (i), the following acquisitions
shall not constitute a Change in Control: (aa) any acquisition directly from the Company, (bb) any acquisition by the Company,
(cc) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company, or (dd) any acquisition by any corporation pursuant to a transaction that complies with clauses (A),
(B), and (C) of subsection (iv) of this Section 3.1(c); or

 

    	 	 	 

    	 

    

 

(ii)
The acquisition by any Person other than the Grandfathered Person of Beneficial Ownership of thirty percent (30%) or more of either
(A) the adjusted then-outstanding shares of common stock of the Company (the “Adjusted Outstanding Company Common Stock”),
or (B) the combined voting power of the adjusted then-outstanding voting securities of the Company entitled to vote generally
in the election of directors (the “Adjusted Outstanding Company Voting Securities”); provided, however,
that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control: (aa) any acquisition
directly from the Company, (bb) any acquisition by the Company, (cc) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (dd) any acquisition by any corporation
pursuant to a transaction that complies with clauses (A), (B), and (C) of subsection (iv) of this Section 3.1(c); or

 

(iii)
Individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason
to constitute at least a majority of the Board; provided, however, that any individual becoming a member of the Board subsequent
to the Effective Date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of
at least a majority of the members of the Board then comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office
occurs as a result of an actual or threatened election contest with respect to the election or removal of members of the Board
or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

 

(iv)
Consummation of a reorganization, merger or consolidation of the Company or sale or other disposition of all or substantially
all of the assets of the Company or the acquisition by the Company of assets or stock of another entity (a “Business
Combination”), in each case, unless, following such Business Combination, (A) all or substantially all of the individuals
and entities who were the Beneficial Owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting
Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than eighty percent (80%)
of, respectively, the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination
(including a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately
prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case
may be, (B) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related
trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly,
fifty percent (50%) or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from such
Business Combination, or the combined voting power of the then-outstanding voting securities of such corporation except to the
extent that such ownership existed prior to the Business Combination, and (C) at least a majority of the members of the board
of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board, providing for such Business Combination.

 

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For
purposes of this Section 3.1(c), “Person” shall mean any individual, firm, corporation, partnership (general
or limited), limited liability company, limited liability partnership, association, unincorporated organization, trust or other
legal entity and also (y) any syndicate or group deemed to be a Person under Section 13(d)(3) of the Exchange Act and Rule 13d-5(b)
thereunder and (z) any successor (by merger or otherwise) of any such firm, corporation, partnership (general or limited), limited
liability company, limited liability partnership, association, unincorporated organization, trust, or other group or entity.

 

(d)
“Code” means the Internal Revenue Code of 1986, as amended.

 

(e)
“Company” means PolarityTE, Inc., a Delaware corporation, and any successor thereto as provided in Section
7.1 hereof.

 

(f)
“Effective Date” means August 6, 2019.

 

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

 

(h)
“Executive” means any person who is the Company’s Chief Operating Officer, President of Corporate Development,
Chief Financial Officer, Chief Scientific Officer, Chief Translational Medicine Officer, General Counsel, Chief Intellectual Property
Officer, or Chief Legal Officer.

 

(i)
“Good Reason” means, without the express written consent of the Participant:

 

(i)
the assignment to the Participant of any duties inconsistent in any substantial respect with the Participant’s position
(including status, office or title), authority or responsibilities as in effect during the 120-day period immediately preceding
the Change in Control, which assignment results in a substantial diminution in such position, authority or responsibilities or
any other substantial adverse change in such position, authority or responsibilities, excluding an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company as set forth below;

 

(ii)
any failure by the Company to furnish the Participant with compensation (including Base Salary and Incentive Pay) and benefits
at a level substantially equal to or exceeding those received by the Participant from the Company or any Subsidiary during the
120-day period preceding the Change in Control, other than (A) an insubstantial and inadvertent failure remedied by the Company
as set forth below, (B) a reduction in the same type of compensation paid to Executives that is applied to substantially all of
the Executives of the Company in approximately the same percentage of that type of compensation, or (C) a reduction or modification
of any employee benefit program covering substantially all of the employees of the Company, which reduction or modification generally
applies to all employees covered under such program; or

 

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(iii)
the Company requiring the Participant to be based or to perform services at any office or location that is in excess of 30 miles
from the principal location of the Participant’s work during the 120-day period immediately preceding the Change in Control,
except for travel reasonably required in the performance of the Participant’s responsibilities.

 

Before
a termination by the Participant under this Section 3.1(i) will constitute termination for Good Reason, the Participant must give
the Company a Notice of Termination within 30 calendar days of the occurrence of the event that constitutes Good Reason. Failure
to provide such Notice of Termination within such 30-day period shall be conclusive proof that the Participant shall not have
Good Reason to terminate employment.

 

For
purposes of this Section 3.1(i), Good Reason shall exist only if the Company fails to remedy the event or events constituting
Good Reason within 30 calendar days after receipt of the Notice of Termination from the Participant. If the Participant determines
that Good Reason for termination exists and timely files a Notice of Termination, such determination shall be presumed to be true
and the Company will have the burden of proving that Good Reason does not exist.

 

(j)
“Grandfathered Person” shall mean Denver Lough, his spouse, lineal descendants and his Affiliates and Associates,
and any trusts or other entities whose principal beneficiary is Denver Lough, his spouse, lineal descendants or his Affiliates
and Associates.

 

(k)
“Incentive Pay” means the target annual cash incentive award, if any, as notified to the Participant for the
year in which the Termination Date occurs under the annual bonus, incentive or other payment of cash compensation in addition
to Base Pay, made or to be made in regard to services rendered in any fiscal year or other annual measurement period pursuant
to any bonus, incentive, performance, or similar agreement, policy, program or arrangement of the Company or any successor thereto.

 

(l)
“Just Cause” means without the written consent of the Company, the Participant (i) participates in fraud or
embezzlement, in each case related to the Company or its Subsidiaries, (ii) intentionally engages in other unlawful or criminal
activity of a serious nature in connection with his or her duties as an Executive that causes or may reasonably be expected to
cause substantial economic injury to or substantial injury to the reputation of the Company or its Subsidiaries, (iii) enters
a guilty plea with respect to or is convicted of a felony that causes or may reasonably be expected to cause substantial economic
injury to or substantial injury to the reputation of the Company or its Subsidiaries, (iv) commits any intentional and deliberate
breach of his or her duties that, individually or in the aggregate, are material in relation to the Participant’s overall
duties and cause or are reasonably expected to cause substantial economic injury to or substantial injury to the reputation of
the Company or its Subsidiaries, or (v) materially breaches any confidentiality or noncompete agreement entered into with the
Company. The Company shall have the burden of proving that Just Cause exists. For purposes of this Plan, the Participant shall
not be deemed to have been terminated for “Just Cause” hereunder unless (A) the Participant receives a Notice of Termination
setting forth the grounds for the termination at least 30 calendar days prior to the specified Termination Date, (B) if requested
by the Participant, the Participant (and/or the Participant’s counsel or other representative) is granted a hearing before
the Board, and (C) the Board determines, by resolution duly adopted by a majority of the members of the Board, that the Participant
violated one or more of the provisions of the definition of “Just Cause” set forth above.

 

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(m)
“Notice of Termination” means (i) a written notice of termination by the Company to the Participant for Just
Cause, or (ii) a written notice of termination for Good Reason by the Participant to the Company, in either case, setting forth
in reasonable detail the specific reasons for termination and the facts and circumstances claimed to provide a basis for termination
of employment under the provision indicated.

 

(n)
“Participant” means an Executive who meets the eligibility requirements of Article IV hereof, other than an
Executive who has entered into a separate agreement with the Company with terms that become operative upon the occurrence of a
change in control of the Company as defined in the agreement with the Executive (other than a stock option or performance share
award agreement or other form of equity award agreement or participation document entered into pursuant to a Company-sponsored
plan that may incidentally refer to accelerated vesting or accelerated payment upon a change in control (as defined in such separate
plan or document)).

 

(o)
“Plan” means this Change in Control Compensation Plan.

 

(p)
“Protection Period” means the period of time commencing on the date of the first occurrence of a Change in
Control and continuing until the date that is six months following the date of the first occurrence of the Change in Control.

 

(q)
“Severance Payment” means the payment of severance compensation as provided in Article V hereof.

 

(r)
“Subsidiary” means any corporation or other legal entity a majority of the securities of which are owned by
the Company or another Subsidiary of the Company.

 

(r)
“Termination Date” means, (i) with respect to a termination by the Company for Just Cause, the date on which
the Participant’s employment is terminated as stated in the Notice of Termination, and (ii) with respect to a termination
by the Participant for Good Reason, the date that is 30 calendar days following the Company’s receipt of the Notice of Termination,
modified to the extent necessary to be consistent with the requirements of Section 3.2(c) below.

 

Section
3.2 Status of Plan/Applicable Law.

 

(a)
This Plan is classified as a “payroll practice” and is not a “plan” that is subject to the provisions
of the Employee Retirement Income Security Act of 1974, as amended. The Plan will be interpreted and administered accordingly.

 

(b)
This Plan shall in all respects be interpreted, enforced and governed in accordance with the laws of the state of Utah, without
regard to principles of conflicts of laws.

 

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(c)
Payment of amounts, including any Severance Payments, under this Plan are intended to comply with an exception to or exclusion
from the requirements of Code Section 409A to the maximum extent possible and, to the extent Code Section 409A is applicable to
any payments or benefits, this Plan is intended to comply with the requirements of Code Section 409A. Notwithstanding any other
provision of this Plan to the contrary, this Plan shall be interpreted, operated and administered in a manner consistent with
such intentions. The payments or benefits to be made or provided under this Plan, including any Severance Payments, are intended
to be exempt from the requirements of Code Section 409A because they are (i) non-taxable benefits, (ii) welfare benefits within
the meaning of Treas. Reg. Sec. 1.409A-1(a)(5), (iii) short-term deferrals under Treas. Reg. Sec. 1.409A-1(b)(4), or (iv) payments
under a separation pay plan within the meaning of Treas. Reg. Sec. 1.409A-1(b)(9). For purposes of Code Section 409A, each payment
under this Plan shall be treated as a separate payment. Without limiting the generality of the foregoing, and notwithstanding
any other provision of this Plan to the contrary, all references in this Plan to the termination of the Participant’s employment
or separation from service (including the date of such termination or separation or Termination Date) are intended to mean the
Participant’s “separation from service,” within the meaning of Code Section 409A(a)(2)(A)(i). All reimbursements
or in-kind benefits to be made under this Plan that constitute deferred compensation subject to Code Section 409A shall be made
in accordance with the requirements of Treas. Reg. Sec. 1.409A-3(i)(1)(iv). If, at the time of Participant’s termination
of employment, Participant is a “specified employee” within the meaning of Code Section 409A, then any payment of
an amount that is deferred compensation subject to Code Section 409A and payable on account of a separation from service shall
be suspended and not made until the first business day following the end of the six month period following the Participant’s
termination of employment, or if earlier, upon the Participant’s date of death.

 

Section
3.3 Severability. If a provision of this Plan shall be held illegal or invalid, the illegality or invalidity shall not
affect the remaining parts of this Plan and this Plan shall be construed and enforced as if the illegal or invalid provision had
not been included.

 

ARTICLE
IV - ELIGIBILITY 

 

Section
4.1 Participation. Each person who is an Executive on the Effective Date shall be a Participant on the Effective Date.
Thereafter, each other person who becomes an Executive prior to both (a) a Change in Control, and (b) unless specifically provided
for by the Board at the time a Participant is elected as an Executive, the date a notice of termination of the Plan is provided
under Section 8.1(a), shall automatically become a Participant on the day on which such person becomes an Executive; provided,
however, that if the person has not been employed by the Company on a continuous full-time basis during the period of 90 days
prior to such day, he or she will not become a Participant until the day that 90 days of continuous full-time employment has been
completed.

 

Section
4.2 Duration of Participation. A Participant shall cease to be a Participant and shall have no rights hereunder, without
further action, when he or she ceases to be an Executive, unless such Participant is then entitled to payment of a Severance Payment
as provided in Section 5.1 hereof. A Participant entitled to a Severance Payment shall remain a Participant in this Plan until
the full amount of the Severance Payment has been paid to the Participant.

 

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ARTICLE
V - SEVERANCE PAYMENTS 

 

Section
5.1 Right to Severance Payment.

 

(a)
Subject to Subsection (c) hereof, a Participant shall be entitled to receive from the Company a Severance Payment in the amount
provided in Section 5.2 hereof if there has been a Change in Control and if, after a Change in Control and within the Protection
Period, (i) the Participant’s employment by the Company shall be terminated by the Company without Just Cause, or (ii) the
Participant shall terminate employment with the Company for Good Reason.

 

(b)
Notwithstanding anything to the contrary contained in this Plan, any termination of employment of the Participant or removal of
the Participant from the office or position in the Company that occurs prior to a Change in Control, but which the Participant
reasonably demonstrates occurred at the request of a third party who had taken steps reasonably calculated to effect the Change
in Control, shall be deemed to be a termination or removal of the Participant after a Change in Control for purposes of this Plan.

 

(c)
Notwithstanding anything to the contrary contained in this Plan, a Participant shall not be entitled to receive any Severance
Payment hereunder unless within 60 days of the Participant’s termination (i) he or she has signed and returned to the Company
a release substantially in the form attached to this Plan as Attachment A, and (ii) any applicable rescission period for
such release has expired. The Company shall provide a form of release to the Participant not later than 5 days following the Participant’s
Termination Date.

 

Section
5.2 Amount of Severance Payment.

 

(a)
Each Participant entitled to a Severance Payment under this Plan shall receive as such Severance Payment a lump sum cash payment
in an amount equal to

 

(i)
for any Participant who is designated as the Chief Operating Officer, President of Corporate Development, or Chief Financial Officer,
the sum of (A) 1.5 multiplied by the greater of $400,000 or Base Pay, and (B) 1.5 multiplied by the greater of $400,000 or the
target bonus established in an annual executive target bonus plan in effect on the Termination Date; and

 

(ii)
for any other Participant, (A) 1.0 multiplied by the greater of $350,000 or Base Pay, and (B) 1.0 multiplied by the greater of
$350,000 or the target bonus established in an annual executive target bonus plan in effect on the Termination Date; provided,
however, that the amount of such cash payment determined pursuant to this Section 5.2(a) shall be reduced by an amount equal
to the aggregate amount of any other cash payments in the nature of severance payments paid or payable by the Company or any Subsidiary
pursuant to any agreement, policy, program, arrangement or requirement of statutory or common law (other than this Plan or cash
payments received in lieu of stock incentives) from the Company.

 

(b)
The Participant shall not be required to mitigate damages or the amount of his or her Severance Payment by seeking other employment
or otherwise, nor shall the amount of such payment be reduced by any compensation earned by the Participant as a result of employment
after the termination of his or her employment by the Company.

 

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Section
5.3 Time of Severance Payment. The Severance Payment to which a Participant is entitled under Section 5.2(a) shall be paid
to the Participant by the Company in cash and in full on the 60th day following the Participant’s Termination
Date. If a Participant should die before all amounts payable to him or her under this Plan have been paid, such unpaid amounts
shall be paid to the personal representative of the Participant’s estate.

 

Section
5.4 Liability for Payment. The Company shall be solely liable for and shall pay the Severance Payments (or cause the Severance
Payments to be paid) to the Participant.

 

ARTICLE
VI - OTHER RIGHTS AND BENEFITS NOT AFFECTED 

 

Section
6.1 Other Benefits. Neither the provisions of this Plan nor the Severance Payment provided for hereunder shall reduce or
increase any amounts otherwise payable, or in any other way affect a Participant’s rights as an employee of the Company,
whether existing now or hereafter, under any benefit, incentive, retirement, stock option, stock bonus, stock purchase or employment
agreement, policy (other than this Plan), program or arrangement (collectively, the “Other Plans”), except to the
extent specifically provided in such Other Plans. Notwithstanding the generality of the foregoing, each Participant is entitled
to receive any Base Salary accrued but unpaid as of the Termination Date and any other bonus, incentive or other pay or employee
benefits that are accrued but unpaid as of the Termination Date.

 

Section
6.2 Certain Limitations. This Plan does not constitute a contract of employment or impose on any Participant or the Company
any obligation to retain any Participant as an employee or in any other capacity, to change or not change the status, terms or
conditions of any Participant’s employment, or to change or not change the Company’s policies regarding termination
of employment.

 

ARTICLE
VII - SUCCESSORS SECTION 

 

Section
7.1 Successors. Without limiting the obligations of any person or entity under applicable law, the Company shall require
any successor or assignee, whether direct or indirect, by purchase, reorganization, merger, consolidation or otherwise, to all
or substantially all the business or assets of the Company, expressly and unconditionally to assume and agree to perform the Company’s
obligations under this Plan, in the same manner and to the same extent that the Company would be required to perform if no such
succession or assignment had taken place. In such event, the term “Company,” as used in this Plan, shall mean the
Company as hereinbefore defined and any successor assignee to the business or assets that by reason hereof becomes bound by the
terms and provisions of this Plan.

 

ARTICLE
VIII - DURATION, AMENDMENT AND TERMINATION 

 

Section
8.1 Duration/Termination.

 

(a)
This Plan will terminate as to all Participants: (i) if a Change in Control has not occurred, the date that is one year following
the giving of notice to each Executive who is a Participant on the date of the notice that the Board has determined (by resolution
adopted by a majority of the members of the Board) that the Plan will terminate; and (ii) if a Change in Control has occurred,
the expiration of the Protection Period.

 

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(b)
Notwithstanding the foregoing, if a Change in Control occurs, this Plan shall continue in full force and effect, and shall not
terminate or expire until after all Participants who were Participants on the date of the Change in Control who became entitled
to a Severance Payment hereunder shall have received such payment in full.

 

Section
8.2 Amendment. Unless a Change in Control has previously occurred, this Plan may be amended in any respect by resolution
duly adopted by the Board; provided, however, that no such amendment shall adversely affect the rights of a Participant
under this Plan without the Participant’s consent unless such amendment does not become effective until the date that is
one year following the giving of notice to all Participants of the adoption of such amendment by the Board. If a Change in Control
occurs, notwithstanding the foregoing, this Plan no longer shall be subject to amendment, change, substitution, deletion or revocation
in any respect.

 

Section
8.3 Form of Amendment/Termination. The form of any proper amendment or termination of this Plan shall be a written instrument
signed by a duly authorized officer or officers of the Company, certifying that the amendment or termination has been approved
by the Board as provided in Sections 8.1 or 8.2 hereof. A proper amendment of this Plan automatically shall effectuate a corresponding
amendment to all Participants’ rights hereunder. A proper termination of this Plan automatically shall effectuate a termination
of all Participants’ rights and benefits hereunder without further action.

 

ARTICLE
IX - MISCELLANEOUS SECTION 

 

Section
9.1 Legal Fees and Expenses 

 

(a)
It is the intent of the Company that Participants not be required to incur any expenses associated with the enforcement of rights
under this Plan because the cost and expense thereof would substantially detract from the benefits intended to be extended to
Participants hereunder. Accordingly, if the Company has failed to comply with any of its obligations under this Plan or in the
event that the Company or any other person takes any action to declare this Plan void or unenforceable, or institutes any litigation
designed to deny, or to recover from, a Participant the benefits intended to be provided to the Participant hereunder, the Company
irrevocably authorizes the Participant from time to time to retain counsel of his or her choice, at the expense of the Company,
as hereafter provided, to represent the Participant in connection with the initiation or defense of any legal action, whether
by or against the Company, in any jurisdiction. The Company shall pay or cause to be paid and shall be solely responsible for
any and all reasonable attorneys’ fees and expenses incurred by the Participant in enforcing his or her rights hereunder
individually (but not as a representative of any class) as a result of the Company’s failure to perform this Plan or any
provision hereof or as a result of the Company or any person contesting the validity or enforceability of this Plan or any provision
hereof.

 

(b)
Notwithstanding any provision of the Plan to the contrary, all fees and expenses subject to payment or reimbursement pursuant
to this Section 9.1 shall be paid not later than the last day of the calendar month following the calendar month in which the
Participant incurs such fees or expenses. The Participant shall be solely responsible for timely providing to the Company sufficient
proof of the fees and expenses to be paid or reimbursed pursuant to this Section.

 

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Section
9.2 Withholding of Taxes. The Company may withhold from any amounts payable under this Plan all foreign, federal, state,
or other taxes as the Company reasonably determines are required pursuant to any law or government regulation or ruling.

 

Section
9.3 Successors.

 

(a)
This Plan shall inure to the benefit of and be enforceable by the Participant’s personal or legal representatives, executors,
administrators, successors, heirs, distributees and/or legatees.

 

(b)
The rights under this Plan are personal in nature and neither the Company nor any Participant shall, without the consent of the
other, assign or transfer any rights or obligations hereunder except as expressly provided in Sections 5.3 and 7.1 hereof. Without
limiting the generality of the foregoing, the Participant’s right to receive a Severance Payment hereunder shall not be
assignable or transferable, whether by pledge, creation of a security interest or otherwise, other than by a transfer by his or
her will or by the laws of descent and distribution and, in the event of any attempted assignment or transfer contrary to this
Section 9.3(b), the Company, shall have no liability to pay any amount so attempted to be assigned or transferred.

 

(c)
The Company and each Participant recognize that each party will have no adequate remedy at law for breach by the other of any
of the agreements contained herein and, in the event of any such breach, the Company, and each Participant hereby agree and consent
that the other shall be entitled to a decree of specific performance, mandamus or other appropriate remedy to enforce performance
of this Plan.

 

Section
9.4 Notices. For all purposes of this Plan, all communications, including without limitation notices, consents, requests
or approvals provided for herein, shall be in writing and shall be deemed to have been duly given when delivered or five business
days after having been mailed by registered or certified mail, return receipt requested, postage prepaid, addressed to the Company
(to the attention of the General Counsel of the Company), at its principal executive office and to any Participant at his or her
principal residence as shown in the relevant records of the Company, or to such other address as any party may have furnished
to the other in writing and in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

Adopted
by Resolution of the Board of Directors on August 6, 2019.

 

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ATTACHMENT
A 

 

RELEASE

 

This
Release (the “Release”) is required to be delivered by ________________ (“Executive”) as a condition of
Executive’s receipt of severance and other benefits under the PolarityTE, Inc. (“Company”), Change in Control
Compensation Plan (the “Plan”).

 

1.
Executive agrees that, in consideration of the severance and other benefits to which he/she is eligible under the terms of the
Plan, Executive hereby releases and forever discharges the Company, as well as its affiliates and all of their respective directors,
officers, employees, members, agents, and attorneys (the “Released Parties”), of and from any and all manner
of actions and causes of action, suits, debts, claims, and demands whatsoever, in law or equity, known or unknown, asserted or
unasserted, which he/she ever had, now has, or hereafter may have on account of his/her employment with the Company, the termination
of his/her employment with the Company, and/or any other fact, matter, incident, claim, injury, event, circumstance, happening,
occurrence, and/or thing of any kind or nature which arose or occurred prior to the date when he/she executes this Release, including,
but not limited to, any and all claims for wrongful termination; breach of any implied or express employment contract; unpaid
compensation of any kind; breach of any fiduciary duty and/or duty of loyalty; breach of any implied covenant of good faith and
fair dealing; negligent or intentional infliction of emotional distress; defamation; fraud; unlawful discrimination, harassment;
or retaliation based upon age, race, sex, gender, sexual orientation, marital status, religion, national origin, medical condition,
disability, handicap, or otherwise; any and all claims arising under arising under Title VII of the Civil Rights Act of 1964,
as amended (“Title VII”); the Utah Anti-Discrimination Act, as amended; the Equal Pay Act of 1963, as amended
(“EPA”); the Americans with Disabilities Act of 1990, as amended (“ADA”); the Family and
Medical Leave Act, as amended (“FMLA”); the Employee Retirement Income Security Act of 1974, as amended (“ERISA”);
the Sarbanes-Oxley Act of 2002, as amended (“SOX”); the Worker Adjustment and Retraining Notification Act of
1988, as amended (“WARN”); and/or any other federal, state, or local law(s) or regulation(s); any and all claims
for damages of any nature, including compensatory, general, special, or punitive; and any and all claims for costs, fees, or other
expenses, including attorneys’ fees, incurred in any of these matters. The Company also acknowledges that Executive does
not release or waive any claims, and that he/she retains any rights he/she may have, to any vested 401(k) monies (if any) or benefits
(if any), or any other benefit entitlement that is vested as of the Termination Date (as defined in the Plan) pursuant to the
terms of any Company-sponsored benefit plan governed by ERISA. Nothing contained herein shall release the Company from its obligations
set forth in the Plan. However, this general release and waiver of claims excludes, and the Executive does not waive, release,
or discharge any right to file an administrative charge or complaint with, or testify, assist, or participate in an investigation,
hearing, or proceeding conducted by, the Equal Employment Opportunity Commission or other similar federal or state administrative
agencies, although the Executive waives any right to monetary relief related to any filed charge or administrative complaint.
Executive is not waiving rights or claims that otherwise cannot be waived by applicable law, including without limitation claims:
(a) that may arise after the Termination Date, (b) for indemnification and/or advanced expenses under applicable law, any directors
and officers liability insurance, applicable certificate of incorporation or by-laws, (c) to enforce the Plan, (d) to exercise
vested equity awards determined as of the Termination Date, (e) to benefits that have accrued and are payable pursuant to the
Company’s employee benefit plans, including deferred compensation plans, (f) for unemployment insurance benefits; (g) for
workers’ compensation benefits related to any injury he/she sustained in the course of his/her duties for the Company, (h)
to rights under the Consolidated Omnibus Reconciliation Act of 1985, as amended, (“COBRA”), and (i) to his/her rights,
if any, under the Uniformed Services Employment and Reemployment Rights Act (USERRA) 38 U.S.C. § 4301, et seq.

 

    	11

     

    

 

[Without
limiting the generality of Section 1, above, Executive acknowledges and agrees that he/she is waiving and releasing any rights
he/she may have under the Age Discrimination in Employment Act of 1967, as amended (the “ADEA”) (29 U.S. Code
§621 et seq.), and that this waiver and release is knowing and voluntary. Executive and the Company agree that this waiver
and release does not apply to any rights or claims that may arise under the ADEA after Executive has executed this Release. Nothing
in this Release prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of this
Release under the ADEA, nor does it impose any condition precedent, penalties or costs for doing so, unless specifically authorized
by federal law. Executive acknowledges that the consideration given for this Release under the Plan is in addition to anything
of value to which he/she was already entitled. The Company advises Executive in this Release to consult with an attorney prior
to executing this Release. Executive understands that insofar as this Release relates to Executive’s rights, if any, under
the ADEA, it shall not become effective or enforceable until seven days after he/she signs it. Executive acknowledges that he/she
has been advised to consult with an attorney if he/she chooses before signing this Release. Executive understands that he/she
has the right to revoke this Release, insofar as it extends to Executive’s claims, if any, under the ADEA, by written notice
of such to the Company within seven (7) calendar days following his/her signing this Release. Any such revocation must be in writing
and hand-delivered to the Company or, if sent by mail, postmarked within the applicable revocation period, sent by certified mail,
return receipt requested, and addressed to: PolarityTE, Inc., Attention: General Counsel, 123 N. Wright Brothers Drive, Salt Lake
City, Utah, 84116.]1

 

2.
Executive agrees not to sue any Released Party or participate in any lawsuit against a Released Party concerning any claim released
under Section 1 above, or to challenge the enforceability of this Release or the release given hereby. This covenant not to sue
does not apply to any claim that Executive did not knowingly and voluntarily sign this Release as required by the ADEA and the
Older Workers Benefit Protection Act.

 

3.
Notwithstanding the above, Executive is not waiving and is not being required to waive any right that cannot be waived under law,
including the right to file an administrative charge or participate in an administrative investigation or proceeding; provided,
however, that Executive hereby waives all right to any monetary recovery should any foreign, federal, state or other administrative
agency pursue any claims on Executive’s behalf arising out of or related to employment with and/or termination of employment
with any of the Released Parties.

 

4.
Executive and the Company each agree to treat this Release as confidential and will not discuss or disclose, the terms of this
Release, other than his/her immediate family members, attorneys and financial advisors, or as required by law.

 

1
Retain this section if ADEA applicable to Executive.

 

    	12

     

    

 

5.
Executive has been advised that this Release shall be executed by him/her no earlier than Executive’s Termination Date and
no later than forty-five (45) days after Executive’s Termination Date.

 

6.
Executive expressly acknowledges and understands that this Release is not an admission of liability under any statute or otherwise
by Company, and it does not admit any violation of Executive’s legal rights.

 

7.
The parties agree that this Release shall be binding upon and inure to the benefit of Executive’s assigns, heirs, executors
and administrators as well as all Releasees.

 

8.
This Release shall in all respects be interpreted, enforced and governed in accordance with the laws of the state of Utah, without
regard to principles of conflicts of laws, and furthermore, any dispute regarding this Release shall be subject to the exclusive
jurisdiction of any court of competent jurisdiction located in Salt Lake County, Utah.

 

9.
The language of all parts of this Release shall in all cases be construed as a whole, according to its fair meaning, and not strictly
for or against any of the parties. In the event that one or more provisions of this Release shall for any reason be held to be
illegal or unenforceable, this Release shall be revised only to the extent necessary to make the Release or such provision(s)
legal and enforceable.

 

EXECUTIVE

 

	 	 
	Print
    Name: 	 	 
	 	 
	Date	 

 

    	13Exhibit 4.1

 

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

 

COMMON STOCK PURCHASE WARRANT

 

ECOARK
HOLDINGS, INC.

 

	Warrant Shares: _______	Initial Exercise Date: November 13, 2019

 

THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after the date hereof (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on
November 13, 2024 (the “Termination Date”) but not thereafter, to subscribe for and purchase from Ecoark Holdings,
Inc., a Nevada corporation (the “Company”), up to ______ shares (as subject to adjustment hereunder, the “Warrant
Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise
Price, as defined in Section 2(b).

 

Section 1.Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement
(the “Purchase Agreement”), dated November 11, 2019, among the Company and the purchasers signatory thereto.

 

Section 2.Exercise.

 

a)
Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part,
at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of
a duly executed facsimile copy or PDF copy submitted by email (or e-mail attachment) of the Notice of Exercise in the form annexed
hereto (the “Notice of Exercise”). Within the earlier of (i) two (2) Trading Days and (ii) the number of Trading
Days comprising the Standard Settlement Period (as defined in Section 2(e)(i) herein) following the date of exercise as aforesaid,
the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer
or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is
specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee
(or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary,
the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the
Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant
to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to
the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available
hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to
the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant
Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1)
Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that,
by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number
of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

    1

      

    

 

b)
Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $0.725, subject to
adjustment hereunder (the “Exercise Price”).

 

c)
Cashless Exercise. If at any time after the six-month anniversary of the Closing Date, there is no effective Registration
Statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant
may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall
be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

		(A)	= as applicable: (i) the VWAP on the Trading Day immediately
preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant
to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on
a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(68) of Regulation NMS promulgated
under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day
immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal
Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s execution of the applicable Notice of Exercise
if such Notice of Exercise is executed during “regular trading hours” on a Trading Day and is delivered within two
(2) hours thereafter (including until two (2) hours after the close of “regular trading hours” on a Trading Day) pursuant
to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise
is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of
“regular trading hours” on such Trading Day;

 

    2

      

    

 

		(B)	= the Exercise Price of this Warrant, as adjusted
hereunder; and

 

		(X)	= the number of Warrant Shares that would be issuable
upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather
than a cashless exercise.

 

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

 

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

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period
of the Warrant Shares being issued may be tacked on to the holding period of this Warrant.  The Company agrees not to
take any position contrary to this Section 2(c).

 

    3

      

    

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant
to this Section 2(c).

 

d)
Optional Cashless Exercise. An Optional Cashless Exercise (as defined below) may occur in whole or in part for a
whole number of Warrant Shares, if, the arithmetic average of the VWAPs of the Common Stock for the five Trading Days immediately
prior to July 22, 2020 (such date, the “Measurement Date” and such price, the “Applicable Measurement
Price”) fails to exceed the initial Conversion Price in which event, the Holder shall be entitled to receive an additional
number of Warrant Shares (the "Additional Warrant Shares") upon cashless exercise of this Warrant determined according
to the following formula (an “Optional Cashless Exercise”):

 

	 	Number of Additional Warrant Shares = 	(A) - (A)
	 	 	(B)    (C)

 

For purposes
of the foregoing formula:

 

		(A)	= the sum of (i) the Stated Value of the aggregate number of share of Preferred Shares held by
the Holder on the Measurement Date and (ii) product of (x) the number of Conversion Shares (as defined in the Certificate of Designations)
held by the Holder on the Measurement Date, and (y) the Conversion Price (as defined in the Certificate of Designations) in effect
on the Measurement Date.

 

		(B)	= the greater of (i) the Applicable Measurement Price and (ii) $0.25, (subject to adjustment for
any stock splits, stock dividends, stock combinations, recapitalizations and similar events).

 

		(C)	= the Conversion Price in effect on the Measurement Date

 

Upon
any Optional Cashless Exercise, in whole or in part, the parties acknowledge and agree that in accordance with Section 3(a)(9),
this Warrant shall be deemed to have been exchanged for the Additional Warrant Shares and a replacement warrant (the "Replacement
Warrant") that is identical to this Warrant except that the provisions of this Section 2(d) shall no longer apply. Accordingly,
the holding period of the Warrants being exercised may be tacked on to the holding period of the Additional Warrant Shares. The
Company agrees not to take any position contrary to this Section 2(d). For administrative ease, the parties acknowledge and agree
that in lieu of the Holder delivering this Warrant to the Company and the Company delivering the Replacement Warrant to the Holder
that this Warrant shall continue to remain in effect, except that, upon the Optional Cashless Exercise in full, the provisions
of this Section 2(d) shall no longer be applicable.

 

    4

      

    

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant
to this Section 2(d).

 

e)
Mechanics of Exercise.

 

i.
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with
The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is
then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant
Shares to or resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder without
volume or manner-of-sale limitations pursuant to Rule 144 (assuming cashless exercise of the Warrants), and otherwise by physical
delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the
number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the
Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the Notice
of Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number of Trading
Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the “Warrant
Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes
to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of
the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a
cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the
Standard Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the
Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder,
in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP
of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on
the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date
until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer agent that
is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein, “Standard
Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s
primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.

 

    5

      

    

 

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

 

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

 

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

 

    6

      

    

 

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

 

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

 

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

 

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

 

    7

      

    

 

Section 3.Certain
Adjustments.

 

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

 

b)
Adjustment Upon Issuance of Shares of Common Stock. If and whenever on or after the date of issuance (the “Issuance
Date”), the Company issues or sells, or in accordance with this Section 3(b) is deemed to have issued or sold, any shares
of Common Stock and/or Common Stock Equivalents (including the issuance or sale of shares of Common Stock owned or held by or for
the account of the Company, but excluding any securities contemplated in clauses (a), (b) or (d) of the definition of “Exempt
Issuance” (as defined in the Purchase Agreement) issued or sold or deemed to have been issued or sold) for a consideration
per share (the “New Issuance Price”) less than a price equal to the Exercise Price in effect immediately prior
to such issuance or sale or deemed issuance or sale (such Exercise Price then in effect is referred to herein as the “Applicable
Price”) (the foregoing a “Dilutive Issuance”), then immediately upon such Dilutive Issuance, the Exercise
Price then in effect shall be reduced to an amount equal to the New Issuance Price. For all purposes of the foregoing (including,
without limitation, determining the adjusted Exercise Price and the New Issuance Price under this Section 3(b)), the following
shall be applicable:

 

i.
Issuance of Options. If the Company in any manner grants or sells any rights, warrants or options to subscribe for
or purchase shares of preferred stock and/or Common Stock or Common Stock Equivalents (“Options”) and the lowest
price per share for which one share of Common Stock is at any time issuable upon the exercise of any such Option or upon conversion,
exercise or exchange of any Common Stock Equivalents issuable upon exercise of any such Option or otherwise pursuant to the terms
thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued
and sold by the Company at the time of the granting or sale of such Option for such price per share. For purposes of this Section
3(b)(i), the “lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Options
or upon conversion, exercise or exchange of any Common Stock Equivalents issuable upon exercise of any such Option or otherwise
pursuant to the terms thereof” shall be equal to (1) the lower of (x) the sum of the lowest amounts of consideration
(if any) received or receivable by the Company with respect to any one share of Common Stock upon the granting or sale of such
Option, upon exercise of such Option and upon conversion, exercise or exchange of any Common Stock Equivalents issuable upon exercise
of such Option or otherwise pursuant to the terms thereof and (y) the lowest exercise price set forth in such Option for which
one share of Common Stock is issuable upon the exercise of any such Options or upon conversion, exercise or exchange of any Common
Stock Equivalents issuable upon exercise of any such Option or otherwise pursuant to the terms thereof. Except as contemplated
below, no further adjustment of the Exercise Price shall be made upon the actual issuance of such shares of Common Stock or of
such Common Stock Equivalents upon the exercise of such Options or otherwise pursuant to the terms of or upon the actual issuance
of such shares of Common Stock upon conversion, exercise or exchange of such Common Stock Equivalents. This Section 3(b)(i) shall
not apply to any securities contemplated in clauses (a), (b) or (d) of the definition of “Exempt Issuance” (as defined
in the Purchase Agreement).

 

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

 

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

 

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iv.
Calculation of Consideration Received. If any Option and/or Common Stock Equivalent and/or Adjustment Right is issued
in connection with the issuance or sale or deemed issuance or sale of any other securities of the Company (as determined by the
Holder, the “Primary Security”, and such Option and/or Common Stock Equivalent and/or Adjustment Right, the “Secondary
Securities” and together with the Primary Security, each a “Unit”), together comprising one integrated transaction,
the aggregate consideration per share of Common Stock with respect to such Primary Security shall be deemed to be the lowest of
(x) the purchase price of such Unit, (y) if such Primary Security is an Option and/or Common Stock Equivalent, the lowest price
per share for which one share of Common Stock is at any time issuable upon the exercise or conversion of the Primary Security in
accordance with Section 3(b)(i) or 3(b)(ii) above and (z) the lowest VWAP of the Common Stock on any Trading Day during the four
Trading Day period immediately following the public announcement of such Dilutive Issuance (for the avoidance of doubt, if such
public announcement is released prior to the opening of the Trading Market on a Trading Day, such Trading Day shall be the first
Trading Day in such four Trading Day period). If any shares of Common Stock, Options or Common Stock Equivalents are issued or
sold or deemed to have been issued or sold for cash, the consideration received therefor will be deemed to be the net amount of
consideration received by the Company therefor. If any shares of Common Stock, Options or Common Stock Equivalents are issued or
sold for a consideration other than cash, the amount of such consideration received by the Company will be the fair value of such
consideration, except where such consideration consists of publicly traded securities, in which case the amount of consideration
received by the Company for such securities will be the arithmetic average of the VWAPs of such security for each of the five (5)
Trading Days immediately preceding the date of receipt. If any shares of Common Stock, Options or Common Stock Equivalents are
issued to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the
amount of consideration therefor will be deemed to be the fair value of such portion of the net assets and business of the non-surviving
entity as is attributable to such shares of Common Stock, Options or Common Stock Equivalents (as the case may be). The fair value
of any consideration other than cash or publicly traded securities will be determined jointly by the Company and the Holder. If
such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the “Valuation
Event”), the fair value of such consideration will be determined within five (5) Trading Days after the tenth (10th) day
following such Valuation Event by an independent, reputable appraiser jointly selected by the Company and the Holder. The determination
of such appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser
shall be borne by the Company. For purposes of hereof, “Adjustment Right” means any right granted with respect to any
securities issued in connection with, or with respect to, any issuance or sale (or deemed issuance or sale in accordance with this
Section 3(b)) of shares of Common Stock (other than rights of the type described in Section 3(f) and (g) hereof) that could result
in a decrease 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).

 

v.
Holder’s Right of Alternative Exercise Price. In addition to and not in limitation of the other provisions
of this Section 3, if the Company in any manner issues or sells or enters into any agreement to issue or sell, any Common Stock,
Options or Common Stock Equivalents (any such securities, “Variable Price Securities”) after the date the Company enters
into the Purchase Agreement that are issuable pursuant to such agreement or convertible into or exchangeable or exercisable for
shares of Common Stock pursuant to such Options or Common Stock Equivalents, as applicable, at a price which varies or may vary
with the market price of the shares of Common Stock, including by way of one or more reset(s) to a fixed price, but exclusive of
such formulations reflecting customary anti-dilution provisions (such as share splits, share combinations, share dividends and
similar transactions) (each of the formulations for such variable price being herein referred to as, the “Variable Price”),
the Company shall provide written notice thereof via a facsimile and overnight courier to the Holder on the date of such agreement
and/or the issuance of such Common Stock Equivalents or Options, as applicable. From and after the date the Company enters into
such agreement or issues any such Variable Price Securities, the Holder shall have the right, but not the obligation, in its sole
discretion to substitute the Variable Price for the Exercise Price upon exercise of this Warrant by designating in the Notice of
Exercise delivered upon any exercise of this Warrant that solely for purposes of such exercise the Holder is relying on the Variable
Price rather than the Exercise Price then in effect. The Holder’s election to rely on a Variable Price for a particular exercise
of this Warrant shall not obligate the Holder to rely on a Variable Price for any future exercise of this Note.

 

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vi.
Record Date. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling
them (A) to receive a dividend or other distribution payable in shares of Common Stock, Options or in Common Stock Equivalents
or (B) to subscribe for or purchase shares of Common Stock, Options or Common Stock Equivalents, then such record date will be
deemed to be the date of the issuance or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration
of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase
(as the case may be).

 

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

 

d)
Pro Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any
dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of
return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or
options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall
be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder
had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record
is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock
are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder's
right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the
Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of
Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for
the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial
Ownership Limitation).

 

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e)
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly,
in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the
outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more
related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other
Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held
by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to,
such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then,
upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder
(without regard to any limitation in Section 2(f) on the exercise of this Warrant), the number of shares of Common Stock of the
successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the
“Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard
to any limitation in Section 2(f) on the exercise of this Warrant). For purposes of any such exercise, the determination of the
Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of
a Fundamental Transaction, the Company or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable
at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction (or, if later, the date
of the public announcement of the applicable Fundamental Transaction), purchase this Warrant from the Holder the same type or form
of consideration (and in the same proportion), at the Black Scholes Value (as defined below) of the unexercised portion of this
Warrant, that is being offered and paid to the holders of Common Stock of the Company in connection with the Fundamental Transaction,
whether that consideration be in the form of cash, stock or any combination thereof, or whether the holders of Common Stock are
given the choice to receive from among alternative forms of consideration in connection with the Fundamental Transaction. “Black
Scholes Value” means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the
“OV” function on Bloomberg, L.P. (“Bloomberg”) determined as of the day of consummation of the applicable
Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate
for a period equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination
Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg
(determined utilizing a 365-day annualization date) as of the Trading Day immediately following the public announcement of the
applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the greater of (i) the
sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in
such Fundamental Transaction and (ii) the greater of (x) the last VWAP immediately prior to the public announcement of such Fundamental
Transaction and (y) the last VWAP immediately prior to the consummation of such Fundamental Transaction, (D) a remaining option
time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination
Date and (E) a zero cost of borrow. The payment of the Black Scholes Value will be made by wire transfer of immediately available
funds or such other consideration within five Business Days of the Holder’s election (or, if later, on the effective date
of the Fundamental Transaction). The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the
obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section
3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without
unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange
for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent
entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the
exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock
pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock
and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation
of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence
of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity
had been named as the Company herein.

 

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

 

g)
Voluntary Adjustment By Company.  The Company may at any time during the term of this Warrant, with the prior
written consent of the Holder, reduce the then current Exercise Price to any amount and for any period of time deemed appropriate
by the Board of Directors of the Company

 

h)
Notice to Holder.

 

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

 

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

 

Section 4.Transfer
of Warrant.

 

a)
Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section
4(d) hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without
limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office
of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto
duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of
such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants
in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument
of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant
shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender
this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this
Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company
assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for
the purchase of Warrant Shares without having a new Warrant issued.

 

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

 

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

 

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

 

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

 

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Section 5.Miscellaneous.

 

a)
No Rights as Stockholder Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting
rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i),
except as expressly set forth in Section 3. Without limiting any rights of a Holder to receive Warrant Shares on a “cashless
exercise” pursuant to Section 2(c) or to receive cash payments pursuant to Section 2(d)(i) and Section 2(d)(iv) herein, in
no event shall the Company be required to net cash settle an exercise of this Warrant.

 

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

 

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

 

d)
Authorized Shares.

 

The Company covenants
that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient
number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.
The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged
with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without
violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be
listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance
herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by
the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such
issue).

 

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

 

    15

      

    

 

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

 

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

 

f)  
Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not
registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal
securities laws.

 

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

 

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

 

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

 

    16

      

    

 

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

 

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

 

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

 

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

 

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

 

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

 

(Signature Page Follows)

 

    17

      

    

 

 

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

 

	 	ECOARK HOLDINGS, INC.
	 	 
	 	By:	        
	 	 	Name:
	 	 	Title:

 

    18

      

    

 

NOTICE OF EXERCISE

 

To:ECOARK
HOLDINGS, INC.

 

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

 

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

 

		☐	in lawful money of the United States; or

 

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

 

		☐	if permitted the cancellation of such number of Additional
Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(d), to exercise this Warrant with respect
to the maximum number of Additional Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection
2(d).

 

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

 

_______________________________

 

 

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

 

_______________________________

 

_______________________________

 

_______________________________

 

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

 

[SIGNATURE
OF HOLDER]

 

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of
Investing Entity: _________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

     

      

    

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

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

 

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

 

	Name:	______________________________________
	 	(Please
    Print)
	Address:	______________________________________
	 

         

        Phone
        Number:

         

        Email
        Address:

         
	(Please
        Print)

         

        ______________________________________

         

        ______________________________________

         

	Dated:
    _______________ __, ______	 
	Holder’s
    Signature:________________________________	 
	Holder’s
Address:_________________________________

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