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NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE
TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144
OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

THE NUMBER OF SHARES THAT MAY BE EXERCISED
BY THIS WARRANT MAY BE LESS THAN THE NUMBER LISTED BELOW. SEE SECTION 1.

 

BOOMERANG SYSTEMS, INC.

 

WARRANT TO PURCHASE COMMON STOCK

 

Warrant No.: BSW___

 

Date of Issuance: _______, 201_ (“Issuance
Date”)

 

BOOMERANG SYSTEMS,
INC., a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, ________________, the registered holder hereof or its permitted assigns
(the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise
Price (as defined below) then in effect, upon exercise of this Warrant to Purchase Common Stock (including any Warrants to Purchase
Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or times on or
after the Issuance Date, but not after 11:59 p.m., New York time, on the Expiration Date (as defined below), _________ (subject
to adjustment as provided herein) fully paid and non-assessable shares of Common Stock (as defined below)   (the “Warrant
Shares”). Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in
Section 16. This Warrant is one of the Warrants to Purchase Common Stock (the “Warrants”) issued pursuant to
Section 1 of that certain Subscription Agreement, dated as of __________, 201_, by and between the Company and the Holder (the
“Subscription Agreement”).

 

    	 

    	 

    

 

1.           EXERCISE
OF WARRANT.

 

(a)          Mechanics
of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section
1(f)), this Warrant may be exercised by the Holder on any day on or after the Issuance Date, in whole or in part, by delivery (whether
via facsimile or otherwise) of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”),
of the Holder’s election to exercise this Warrant and Representations and Warranties in the form attached hereto as Exhibit
B. On the Trading Day on which this Warrant is exercised, the Holder shall deliver payment to the Company of an amount equal
to the Exercise Price in effect on the date of such exercise multiplied by the number of Warrant Shares as to which this Warrant
was so exercised (the “Aggregate Exercise Price”) in cash or via wire transfer of immediately available funds
if the Holder did not notify the Company in such Exercise Notice that such exercise was made pursuant to a Cashless Exercise (as
defined in Section 1(d)). The Holder shall not be required to deliver the original of this Warrant in order to effect an exercise
hereunder. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares shall have the same
effect as cancellation of the original of this Warrant and issuance of a new Warrant evidencing the right to purchase the remaining
number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining Warrant Shares shall have
the same effect as cancellation of the original of this Warrant after delivery of the Warrant Shares in accordance with the terms
hereof. On or before the third (3rd) Trading Day following the date on which the Company has received an Exercise Notice,
the Company shall transmit by facsimile an acknowledgment of confirmation of receipt of such Exercise Notice, in the form attached
hereto as Exhibit C, to the Holder and the Company’s transfer agent (the “Transfer Agent”). On
or before the third (3rd) Trading Day following the date on which the Company has received such Exercise Notice, the
Company will (1) provided that: (a) the Company’s Transfer Agent is participating in The Depository Trust Company’s
Fast Automated Securities Transfer Program, (b) the Warrant Shares are eligible for such program, (c) a registration statement
covering the re-sale of the Warrant Shares is effective, and (d) on the date on which the Company has received the Exercise Notice,
a letter from a broker is delivered to the Transfer Agent representing that all of the Warrant Shares were sold pursuant to the
registration statement referred to in clause (c) (collectively, the “DTC FAST Requirements”), credit such aggregate
number of shares of Common Stock to which the Holder shall be entitled to the Holder’s or its designee’s balance account
with DTC through its Deposit/Withdrawal at Custodian system, or (2) if all of the DTC Fast Requirements are not met, instruct its
transfer agent to issue and deliver to the Holder or, at the Holder’s instruction pursuant to the Exercise Notice, the Holder’s
agent or designee, in each case, sent by reputable overnight courier to the address as specified in the applicable Exercise Notice,
a certificate, registered in the Company’s share register in the name of the Holder or its designee (as indicated in the
applicable Exercise Notice), for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise.
Upon delivery of an Exercise Notice, 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 such Warrant Shares are credited
to the Holder’s DTC account or the date of delivery of the certificates evidencing such Warrant Shares (as the case may be).
If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented
by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then, at the
request of the Holder, the Company shall as soon as practicable and in no event later than three (3) Business Days after any exercise
and at its own expense, issue and deliver to the Holder (or its designee) a new Warrant (in accordance with Section 7(d)) representing
the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the
number of Warrant Shares with respect to which this Warrant is exercised. No fractional shares of Common Stock are to be issued
upon the exercise of this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest
whole number. The Company shall pay any and all taxes and fees which may be payable with respect to the issuance and delivery of
Warrant Shares to the Holder upon exercise of this Warrant.

 

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(b)          Exercise
Price. For purposes of this Warrant, “Exercise Price” means $5.00, subject to adjustment as provided herein.

 

(c)          Company’s
Failure to Timely Deliver Securities. If the Company shall fail, for any reason or for no reason, to issue to the Holder within
three (3) Trading Days after receipt of the applicable Exercise Notice, a certificate for the number of shares of Common Stock
to which the Holder is entitled and register such shares of Common Stock on the Company’s share register, or to credit the
Holder’s balance account with DTC for such number of shares of Common Stock to which the Holder is entitled upon the Holder’s
exercise of this Warrant if the Warrant Shares are eligible for the Program (as the case may be) (a “Delivery Failure”),
then, in addition to all other remedies available to the Holder, if on or after such third (3rd) Trading Day the Holder
(or any other Person in respect, or on behalf, of the Holder) purchases (in an open market transaction or otherwise) shares of
Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of shares of Common Stock,
or a sale of a number of shares of Common Stock equal to all or any portion of the number of shares of Common Stock, issuable upon
such exercise that the Holder so anticipated receiving from the Company, the Company shall, within three (3) Business Days after
the Holder’s request pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage
commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including, without limitation,
by any other Person in respect, or on behalf, of the Holder) (the “Buy-In Price”), at which point the Company’s
obligation to so issue and deliver such certificate or credit the Holder’s balance account with DTC for the number of shares
of Common Stock to which the Holder is entitled upon the Holder’s exercise hereunder (as the case may be) (and to issue such
shares of Common Stock) shall terminate.

 

(d)          Cashless
Exercise. Notwithstanding anything contained herein to the contrary (other than Section 1(f) below), if the average daily trading
volume equals or exceeds 10,000 shares of Common Stock during at least five (5) of the ten (10) consecutive Trading Days immediately
preceding the date of the Exercise Notice, then the Holder may, in its sole discretion, exercise this Warrant in whole or in part
and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate
Exercise Price, elect instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according
to the following formula (a “Cashless Exercise”):

 

Net Number = (A x B) - (A x
C)

B

 

For purposes of the
foregoing formula:

 

A= the total number of shares
with respect to which this Warrant is then being exercised.

 

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B= the a price equal to the average
of the last sale price of the Common Stock during the five (5) consecutive trading days ending on the trading day immediately preceding
the date of the applicable Exercise Notice if such Exercise Notice is both executed and delivered pursuant to Section 1(a) hereof.

 

C= the Exercise Price then in
effect for the applicable Warrant Shares at the time of such exercise.

  

(e)          Disputes.  In
the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares
to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares that are
not disputed and resolve such dispute in accordance with Section 13.

 

(f)          Limitations
on Exercises. Notwithstanding anything to the contrary contained in this Warrant, this Warrant shall not be exercisable by
the Holder hereof to the extent (but only to the extent) that the Holder or any of its affiliates would beneficially own in excess
of 4.9% (the “Maximum Percentage”) of the Common Stock. To the extent the above limitation applies,
the determination of whether this Warrant shall be exercisable (vis-à-vis other convertible, exercisable or exchangeable
securities owned by the Holder or any of its affiliates) and of which such securities shall be exercisable (as among all such securities
owned by the Holder) shall, subject to such Maximum Percentage limitation, be determined on the basis of the first submission to
the Company for conversion, exercise or exchange (as the case may be). No prior inability to exercise this Warrant pursuant to
this paragraph shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent
determination of exercisability. For the purposes of this paragraph, beneficial ownership and all determinations and calculations
(including, without limitation, with respect to calculations of percentage ownership) shall be determined in accordance with Section
13(d) of the 1934 Act (as defined in the Subscription Agreement) and the rules and regulations promulgated thereunder. The provisions
of this paragraph shall be implemented in a manner otherwise than in strict conformity with the terms of this paragraph to correct
this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Maximum Percentage beneficial ownership
limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such Maximum Percentage
limitation. The limitations contained in this paragraph shall apply to a successor Holder of this Warrant. The holders of Common
Stock shall be third party beneficiaries of this paragraph and the Company may not waive this paragraph without the consent of
holders of a majority of its Common Stock. For any reason at any time, upon the written request of the Holder, the Company shall
within one (1) Business Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding,
including by virtue of any prior conversion or exercise of convertible or exercisable securities into Common Stock, including,
without limitation, pursuant to this Warrant or securities issued pursuant to the Subscription Agreement.

 

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(g)          Insufficient
Authorized Shares. The Company shall at all times keep reserved for issuance under this Warrant a number of shares of Common
Stock as shall be necessary to satisfy the Company’s obligation to issue shares of Common Stock hereunder (without regard
to any limitation otherwise contained herein with respect to the number of shares of Common Stock that may be acquirable upon exercise
of this Warrant). If, notwithstanding the foregoing, and not in limitation thereof, at any time while any of the Warrants remain
outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation
(an “Authorized Share Failure”), to reserve for issuance upon exercise of the Warrants at least a number of
shares of Common Stock equal to the number of shares of Common Stock as shall from time to time be necessary to effect the exercise
of all of the Warrants then outstanding (the “Required Reserve Amount”) then the Company shall immediately take
all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company
to reserve the Required Reserve Amount for all the Warrants then outstanding. Without limiting the generality of the foregoing
sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than sixty
(60) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval
of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each
stockholder with a proxy statement and shall use its best efforts to solicit its stockholders’ approval of such increase
in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such
proposal.

 

2.           ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and number of Warrant Shares issuable upon exercise of this
Warrant are subject to adjustment from time to time as set forth in this Section 2.

 

(a)          Stock
Dividends and Splits. Without limiting any provision of Section 2(b), if the Company, at any time on or after the date of the
Subscription Agreement, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock or otherwise
makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides (by any stock split,
stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares of Common Stock into a larger
number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more classes of its then outstanding
shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction
of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the
denominator shall be the number of shares of Common Stock outstanding immediately after such event.  Any adjustment made
pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders
entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall
become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment
under this paragraph occurs during the period that an Exercise Price is calculated hereunder, then the calculation of such Exercise
Price shall be adjusted appropriately to reflect such event.

 

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(b)          Adjustment
Upon Issuance of Shares of Common Stock.

 

(i)          In
the event the Company shall, at any time, from time to time, issue or sell any additional shares of Common Stock (“Additional
Shares of Common Stock”) (excluding shares issued or issuable as a dividend, distribution or combination as provided
in Section 2(a) or an Exempt Issuance (as defined below)), without consideration or for a consideration per share (the “New
Price”) less than the applicable Exercise Price in effect on the date of and immediately prior to such issue, then and
in such event, such Exercise Price shall be reduced, concurrently with such issue to the New Price; provided, however, that the
Exercise Price shall not be adjusted pursuant to this Section 2(b) below $0.25 (subject to adjustment pursuant to Section 2(a)
and 2(d)). “Exempt Issuance” means the issuance of (a) shares of Common Stock, options or other stock-based
awards or grants to employees, officers, directors or consultants (provided that such issuances to consultants shall not exceed
1,250,000 shares of Common Stock of the Company) pursuant to any existing stock or option plan or any future stock or option plan
duly adopted by a majority of the non-employee members of the Board of Directors of the Company or a majority of the members of
a committee of non-employee directors established for such purpose and (b) securities upon the exercise or exchange of or conversion
of the Notes and Warrants and/or securities exercisable or exchangeable for or convertible into shares of Common Stock issued and
outstanding on the date of the Term Sheet.

 

(ii)         If
the Company in any manner issues or sells any Convertible Securities (as defined herein) and the lowest price per share for which
one share of Common Stock is issuable upon such conversion or exchange or exercise 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 of sale of such Convertible Securities for such price per share and shall trigger the adjustment provisions of Section
2(b)(i). For the purposes of this Section 2(b)(ii), the “lowest price per share for which one share of Common Stock is issuable
upon such conversion or exchange or exercise” shall be equal to 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 issuance or sale of the Convertible Securities
and upon the conversion or exchange or exercise of such Convertible Securities. No further adjustment of the Conversion Price shall
be made upon the actual issuance of such share of Common Stock upon conversion or exchange or exercise of such Convertible Securities
at the price used to calculate the adjustment provisions of Section 2(b)(i). “Convertible Securities” means
any stock or securities directly or indirectly convertible into or exercisable or exchangeable for Common Stock.

 

(iii)        Record
Date. With respect to Section 2(b), 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 Convertible
Securities or (B) to subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then such record
date will be deemed to be the date of the issue 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).

 

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(c)          Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to paragraphs (a) or (b) of this Section
2, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately
up to the nearest full Warrant Share, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted
number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without
regard to any limitations on exercise contained herein).

 

(d)          Other
Events. In the event that the Company (or any Subsidiary (as defined in the Subscription Agreement)) shall take any action
to which the provisions hereof are not strictly applicable, or, if applicable, would not operate to protect the Holder from dilution
or if any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions
(including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features
other than Exempt Issuances), then the Company’s board of directors shall in good faith determine and implement an appropriate
adjustment in the Exercise Price and the number of Warrant Shares (if applicable) so as to protect the rights of the Holder, provided
that no such adjustment pursuant to this Section 2(d) will increase the Exercise Price or decrease the number of Warrant Shares
as otherwise determined pursuant to this Section 2, provided further that if the Holder does not accept such adjustments as appropriately
protecting its interests hereunder against such dilution, then the Company’s board of directors and the Holder shall agree,
in good faith, upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose
determination shall be final and binding and whose fees and expenses shall be borne by the Company.

 

(e)          Calculations.
All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest whole share, as applicable.
The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account
of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

3.           RIGHTS
UPON DISTRIBUTION OF ASSETS. In addition to any adjustments pursuant to Section 2 above, if the Company shall declare or make
any dividend (other than a dividend consisting solely of shares of Common Stock) 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 (other than shares of Common Stock), 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 to the extent of the unexercised portion of
the Warrant shall, in addition to the shares of Common Stock or other securities receivable upon exercise thereof, receive upon
exercise of such unexercised portion of the Warrant, the same cash, stock, other securities or any other thing of value that they
would have been entitled to receive at the time of such dividend or Distribution. At the time of any such dividend or Distribution,
the Company shall make appropriate reserves to ensure the timely performance of the provisions of this Section 3.

 

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4.           FUNDAMENTAL
TRANSACTIONS. 

 

(a)          If
the Company engages in a Fundamental Transaction lawful and adequate provisions shall be made whereby the Holder shall thereafter
have the right to purchase and receive upon the terms and conditions specified in this Warrant and in lieu of the Warrant Shares
immediately theretofore receivable upon the exercise of the rights represented hereby, such shares of capital stock, securities
or assets as may be issued or payable with respect to or in exchange for a number of outstanding shares of such Common Stock equal
to the number of Warrant Shares immediately theretofore so receivable had such Fundamental Transaction not taken place, and in
any such case appropriate provision reasonably satisfactory to such Holder shall be made with respect to the rights and interests
of such Holder to the end that the provisions hereof (including, without limitation, provisions for adjustments of the Exercise
Price and of the number of Warrant Shares receivable upon the exercise) shall thereafter be applicable, as nearly as possible,
in relation to any shares of capital stock, securities or assets thereafter deliverable upon the exercise of Warrants.

 

(b)          In
the event of a Fundamental Transaction as a result of which a number of shares of Common Stock or its equivalent of the successor
Person greater or lesser than the number of shares of Common Stock outstanding immediately prior to such Fundamental Transaction
are issuable to holders of Common Stock, then the Exercise Price in effect immediately prior to such merger, share exchange or
consolidation shall be adjusted in the same manner as though there were a subdivision or combination of the outstanding shares
of Common Stock.

 

(c)          The
Company shall not effect any such Fundamental Transaction unless prior to or simultaneously with the consummation thereof the successor
Person (if other than the Company) resulting from such Fundamental Transaction purchasing or otherwise acquiring such assets shall
have assumed by written instrument executed and mailed or delivered to the Holder at the last address of such Holder appearing
on the books of the Company, the obligation to deliver to such Holder such shares of capital stock, securities or assets as, in
accordance with the foregoing provisions, such Holder may be entitled to receive, and all other liabilities and obligations of
the Company hereunder. Upon written request by the Holder, such successor Person will issue a new warrant revised to reflect the
modifications in this Warrant effected pursuant to this Section 4.

 

(d)          The
Company shall not effect a Fundamental Transaction with the Person having made such offer or with any affiliate of such Person,
unless prior to the consummation of such Fundamental Transaction the holder hereof shall have received 10 days prior written notice
of the Fundamental Transaction from the Company or the reasonable opportunity (and in no event less than ten (10) Business Days)
to then elect to receive upon the exercise of the Warrants either the capital stock, securities or assets then issuable with respect
to the Common Stock or the capital stock, securities or assets, or the equivalent, issued to previous holders of the Common Stock
in accordance with such offer.

 

(e)          Application.
The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and shall be applied
as if this Warrant (and any such subsequent warrants) were fully exercisable and without regard to any limitations on the exercise
of this Warrant (provided that the Holder shall continue to be entitled to the benefit of the Maximum Percentage, applied however
with respect to shares of capital stock registered under the 1934 Act and thereafter receivable upon exercise of this Warrant (or
any such other warrant)).

 

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5.           NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation (as defined
in the Subscription Agreement), Bylaws (as defined in the Subscription Agreement) or through any reorganization, transfer of assets,
consolidation, merger, scheme of arrangement, 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, and will at all times in good faith carry out
all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting
the generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock receivable
upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may be necessary
or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon
the exercise of this Warrant , and (iii) shall, so long as any of the Warrants are outstanding, take all action necessary to reserve
and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise
of the Warrants, the maximum number of shares of Common Stock as shall from time to time be necessary to effect the exercise of
the Warrants then outstanding (without regard to any limitations on exercise).

 

6.           WARRANT
HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in its capacity as a
holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company
for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in its capacity as
the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to
any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance
or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the
Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant.  In addition,
nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon
exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company
or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices
and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

 

7.           REISSUANCE
OF WARRANTS.

 

(a)          Transfer
of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company
will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the
Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less
than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section
7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

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(b)          Lost,
Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below shall
suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to
the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the
Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase
the Warrant Shares then underlying this Warrant.

 

(c)          Exchangeable
for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the
Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the
number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion
of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no warrants for fractional
shares of Common Stock shall be given.

 

(d)          Issuance
of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to
purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a)
or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying
the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this
Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date,
and (iv) shall have the same rights and conditions as this Warrant.

 

8.           NOTICES.  Whenever
notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance with
Section 9.2 of the Note. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this
Warrant, including in reasonable detail a description of such action and the reason therefor. Without limiting the generality of
the foregoing, the Company will give written notice to the Holder (i) promptly upon each adjustment of the Exercise Price and the
number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of such adjustment(s) and (ii) at
least ten (10) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend
or distribution upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any Options, Convertible
Securities or rights to purchase stock, warrants, securities or other property to holders of shares of Common Stock or (C) for
determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that
such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder.  To
the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company
or any of its Subsidiaries, the Company shall simultaneously file such notice with the SEC (as defined in the Subscription Agreement)
pursuant to a Current Report on Form 8-K. It is expressly understood and agreed that the time of execution specified by the Holder
in each Exercise Notice shall be definitive and may not be disputed or challenged by the Company.

 

    	10

    	 

    

 

9.          AMENDMENT
AND WAIVER.  Except as otherwise provided herein, the provisions of this Warrant (other than Section 1(f)(i)) may
be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by
it, only if the Company has obtained the written consent of the Holder. The Holder shall be entitled, at its option, to the benefit
of any amendment of (i) any other similar warrant issued under the Subscription Agreement or (ii) any other similar warrant. No
waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

 

10.         SEVERABILITY.  If
any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties
or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good
faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

11.         GOVERNING
LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without
giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of New York. The Company hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein,
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that
the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Holder from
bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations
to the Holder or to enforce a judgment or other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH
OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

12.         CONSTRUCTION;
HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against
any Person as the drafter hereof.  The headings of this Warrant are for convenience of reference and shall not form part
of, or affect the interpretation of, this Warrant. Terms used in this Warrant but defined in the other Transaction Documents (as
defined in the Subscription Agreement) shall have the meanings ascribed to such terms on the Closing Date (as defined in the Subscription
Agreement) in such other Transaction Documents unless otherwise consented to in writing by the Holder.

 

    	11

    	 

    

 

13.         DISPUTE
RESOLUTION. In the case of a dispute as to the determination of the Exercise Price, the Closing Sale Price or fair market value
or the arithmetic calculation of the Warrant Shares (as the case may be), the Company or the Holder (as the case may be) shall
submit the disputed determinations or arithmetic calculations (as the case may be) via facsimile (i) within two (2) Business Days
after receipt of the applicable notice giving rise to such dispute to the Company or the Holder (as the case may be) or (ii) if
no notice gave rise to such dispute, at any time after the Holder learned of the circumstances giving rise to such dispute (including,
without limitation, as to whether any issuance or sale or deemed issuance or sale was an issuance or sale or deemed issuance or
sale of Excluded Securities). If the Holder and the Company are unable to agree upon such determination or calculation (as the
case may be) of the Exercise Price, the Closing Sale Price or fair market value or the number of Warrant Shares (as the case may
be) within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the Company or the
Holder (as the case may be), then the Company shall, within two (2) Business Days submit via facsimile (a) the disputed determination
of the Exercise Price, the Closing Sale Price or fair market value (as the case may be) to an independent, reputable investment
bank selected by the Holder and reasonably acceptable to the Company or (b) the disputed arithmetic calculation of the Warrant
Shares to the Company’s independent, outside accountant and reasonably acceptable to the Holder. The Company shall cause
at its expense the investment bank or the accountant (as the case may be) to perform the determinations or calculations (as the
case may be) and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives
such disputed determinations or calculations (as the case may be). Such investment bank’s or accountant’s determination
or calculation (as the case may be) shall be binding upon all parties absent demonstrable error.

 

14.         REMEDIES,
CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative
and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance
and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure
by the Company to comply with the terms of this Warrant. The Company covenants to the Holder that there shall be no characterization
concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments,
exercises and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as
expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges
that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such
breach may be inadequate. The Company shall provide all information and documentation to the Holder that is reasonably requested
by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Warrant (including,
without limitation, compliance with Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby
upon the exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs
in respect thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer
involved in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

 

    	12

    	 

    

 

15.         TRANSFER.
This Warrant has been acquired for investment and has not been registered under the securities laws of the United States of America
or any state thereof. Accordingly, notwithstanding Section 2.2(a), neither this Note nor any interest thereon may be offered for
sale, sold or transferred in the absence of registration and qualification of this Note under applicable federal and state securities
laws or an opinion of counsel of the Holder reasonably satisfactory to the Company that such registration and qualification are
not required.

 

16.         CERTAIN
DEFINITIONS.  For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)          “Bloomberg”
means Bloomberg, L.P.

 

(b)          “Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

(c)          “Closing
Sale Price” means, for any security as of any date, the last closing trade price for such security on the Principal Market,
as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing
trade price, then the last trade price of such security prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if
the Principal Market is not the principal securities exchange or trading market for such security, the last trade price of such
security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg,
or if the foregoing does not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin
board for such security as reported by Bloomberg, or, if no last trade price is reported for such security by Bloomberg, the average
of the ask prices of any market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc.
(formerly Pink Sheets LLC). If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing
bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company
and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute
shall be resolved in accordance with the procedures in Section 12. All such determinations shall be appropriately adjusted
for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

(d)          “Common
Stock” means (i) the Company’s shares of common stock, $0.001 par value per share, and (ii) any capital stock
into which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.

 

(e)          “Expiration
Date” means December 31, 2017 or, if such date falls on a day other than a Business Day or on which trading does not
take place on the Principal Market (a “Holiday”), the next date that is not a Holiday.

 

    	13

    	 

    

 

(f)          “Fundamental
Transaction” means that (i) the Company shall, directly or indirectly, in one or more related transactions, (1) consolidate
or merge with or into (whether or not the Company is the surviving corporation) any other Person, or (2) sell, lease, license,
assign, transfer, convey or otherwise dispose of all or substantially all of its respective properties or assets to any other Person,
or (3) facilitate any other Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50%
of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the Person
or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange
offer), or (4) consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with any other Person whereby such other Person acquires more than 50% of
the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company 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), or (5) (I) reorganize, recapitalize or reclassify the Common Stock, (II)
effect or consummate a stock combination, reverse stock split or other similar transaction involving the Common Stock or (III)
make any public announcement or disclosure with respect to any stock combination, reverse stock split or other similar transaction
involving the Common Stock (including, without limitation, any public announcement or disclosure of (x) any potential, possible
or actual stock combination, reverse stock split or other similar transaction involving the Common Stock or (y) board or stockholder
approval thereof, or the intention of the Company to seek board or stockholder approval of any stock combination, reverse stock
split or other similar transaction involving the Common Stock), or (ii) any “person” or “group” (as these
terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder) is
or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50%
of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.

 

(g)          “Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

(h)          “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock
or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity,
the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(i)          “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity or a government or any department or agency thereof.

 

(j)          “Principal
Market” means The New York Stock Exchange, the NYSE Amex, the Nasdaq Global Select Market, the Nasdaq Capital Market,
the OTC Bulletin Board or the OTC Markets, as the case may be on which the Common Stock is listed or quoted for trading.

 

    	14

    	 

    

 

(k)          “Successor
Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving
any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction
shall have been entered into.

 

(l)          “Trading
Day” means, as applicable, (x) with respect to all price determinations relating to the Common Stock, any day on which
the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market for the Common
Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded, provided that “Trading
Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5
hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or
if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the
hour ending at 4:00:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder or
(y) with respect to all determinations other than price determinations relating to the Common Stock, any day on which The New York
Stock Exchange (or any successor thereto) is open for trading of securities.

 

(m)          “Voting
Stock” of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have
the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers or
trustees of such Person (irrespective of whether or not at the time capital stock of any other class or classes shall have or might
have voting power by reason of the happening of any contingency).

 

[signature page follows]

 

    	15

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

 

	 	BOOMERANG SYSTEMS, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	16

    	 

    

 

EXHIBIT A

 

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER
TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

BOOMERANG SYSTEMS, INC.

 

The undersigned holder
hereby exercises the right to purchase _________________ of the shares of Common Stock (“Warrant Shares”) of
Boomerang Systems, Inc., a Delaware corporation (the “Company”), evidenced by Warrant No. _______ (the “Warrant”).
Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1.          Form
of Exercise Price.  The Holder intends that payment of the Exercise Price shall be made as:

  

	 		 	a “Cash Exercise” with respect to _________________ Warrant Shares; and/or

 

	 		 	a “Cashless Exercise” with respect to _______________ Warrant Shares.

 

2.          Payment
of Exercise Price. In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to
be issued pursuant hereto, the Holder has paid to the Company the Aggregate Exercise Price in the sum of $___________________ to
the Company in accordance with the terms of the Warrant.

 

3.          Delivery
of Warrant Shares.  The Company shall deliver to Holder, or its designee or agent as specified below, __________ Warrant
Shares in accordance with the terms of the Warrant.  Delivery shall be made to Holder, or for its benefit, to the following
address:

 

Date: _______________ __, ______

 

Name of Registered Holder

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	17

    	 

    

 

EXHIBIT B

 

REPRESENTATIONS
AND WARRANTIES

 

The undersigned Holder,
in connection with the exercise of this Warrant, hereby represents and warrants to Boomerang Systems, Inc. (the “Company”)
as follows:

 

(a)          The
Warrant Shares may not be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement
under the Act and in compliance with the applicable securities laws of any state or other jurisdiction, or pursuant to an opinion
of counsel satisfactory to the Company that such registration is not required and such compliance has been obtained. The Company
may affix an appropriate legend restricting transfer of the Warrant Shares under the Act to any certificate(s) representing the
Warrant Shares to reflect the foregoing in accordance with the Subscription Agreement by and among the Holder and the Company.

 

(b)          The
Holder understands that the Warrant Shares are being offered and sold by the Company in reliance on an exemption from the registration
requirements of the Securities Act and equivalent state securities and “blue sky” laws, and that the Company is relying
upon the accuracy of, and the compliance by the Holder with his representations and warranties set forth in this letter, in determining
the availability of such exemption and the eligibility of the Holder to acquire the Warrant Shares.

 

(c)          The
Holder acknowledges that it has been given an opportunity to ask questions of, and to receive answers from, the Company’s
management personnel concerning the Company’s business and the Warrant Shares. The Holder has been provided access to all
materials relating to the business, financial position and results of operations of the Company, and all other materials requested
by the Holder to enable it to make an informed investment decision with respect to the acquisition of the Warrant Shares. The Holder
has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of an
investment in the Company’s securities.

 

(d)          The
Holder is, and upon exercise of the Warrant will be experienced in making investments of the kind represented by the Warrant Shares,
and (iii) capable, by reason of his business and financial experience, of evaluating the relative merits and risks of an investment
in the Warrant Shares.

 

(e)          The
Holder understands that an investment in the Warrant Shares involves a high degree of risk, and has the financial ability to bear
the economic risk of this investment in the Warrant Shares, including a complete loss of such investment. The Holder has adequate
means for providing for his current financial requirements and has no need for liquidity with respect to this investment.

 

    	18

    	 

    

 

(f)          The
Holder agrees to indemnify the Company and hold it harmless from and against any and all losses, damages, liabilities, cost and
expenses which it may sustain or incur in connection with the breach by the undersigned of any representation, warranty or covenant
made by the undersigned.

 

	 	 	 	HOLDER:	 
	 	 	 	 	 
	 	 	 	 	 
	Date:	 	 	Signature:	 
	 	 	 	 	Name:
	 	 	 	 	Title :
	 	 	 	 	Address:

 

    	19

    	 

    

 

EXHIBIT C

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Exercise Notice and hereby directs ______________ to issue the above indicated number of shares of Common Stock
in accordance with the Transfer Agent Instructions dated _________, 20__, from the Company and acknowledged and agreed to by _______________.

 

	 	BOOMERANG SYSTEMS, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	20SUBSCRIPTION AGREEMENT

		To:	Boomerang Systems, Inc.

30 B Vreeland Rd

Florham Park, NJ 07932

 

Ladies and Gentlemen:

 

1.          Purchase
and Sale of the Note and Warrants

 

(a)          The
undersigned hereby tenders this subscription and applies for the purchase of (i) $_________ principal amount of 6% convertible
promissory notes due December 31, 2017, in the form attached as Exhibit A hereto (the “Note”), and (ii) warrants,
in the form attached as Exhibit B hereto (the “Warrants” and together with the Note, the “Offering Securities”),
to purchase the number (equal to the principal amount of the Note divided by $5.00 (the initial conversion price of the Note))
of shares (the “Warrant Shares”) of the common stock (the “Common Stock”), par value $0.001 per Share,
of Boomerang Systems, Inc. (the “Company”) at a price of $5.00, subject to adjustment. Together with this Subscription
Agreement, the undersigned is delivering to the Company funds by check or by wire transfer in accordance with the instructions
provided by the Company, in the full amount of the purchase price for the Note and Warrants which the undersigned is subscribing
for pursuant hereto.

 

(b)          The
Offering Securities are being issued to investors (the “Subscribers”) pursuant to a term sheet (the “Term Sheet”)
and series of Subscription Agreements in connection with a private offering (the “Offering”) of the Offering Securities
by the Company to certain accredited investors, and includes those Notes and Warrants to be issued in connection with the Offering
to certain holders of outstanding debt of the Company in exchange for cancellation of outstanding notes or debentures of the Company.
The Company may utilize the services of agents in connection with the Offering and pay compensation to any such agents as described
in the Term Sheet. The closing of the purchase and sale of the Securities to be acquired by the undersigned from the Company under
this Subscription Agreement shall take place at the offices of Blank Rome LLP, 405 Lexington Avenue, New York, NY 10174 (the “Closing”)
at 10:00 a.m., New York time on (i) the date on which the last to be fulfilled or waived of the conditions set forth in Section
5 hereof and applicable to such Closing shall be fulfilled or waived in accordance herewith or (ii) at such other time and place
or on such date as the Subscriber and the Company may agree upon (the “Closing Date”). The undersigned acknowledges
there may be multiple Closings with other Subscribers that occur prior to, or subsequent to the Closing under this Subscription
Agreement. The date of the final closing of the Offering is referred to as the “Final Closing Date.”

 

    	 

    	 

    

 

2.          Representations,
Warranties and Agreements of the Subscriber. The undersigned represents and warrants to the Company as of the date set forth
below:

 

(a)          The
undersigned acknowledges that the undersigned has access to and has reviewed copies of (i) the Company’s filings with the
Securities and Exchange Commission (the “SEC”) via EDGAR consisting of the following: the Company’s Form 10-K
for the fiscal year ended September 30, 2011 (including all of the exhibits thereto and incorporated therein); as well as all Quarterly
Reports on Form 10-Q (and any amendments thereto) for the fiscal quarters ended subsequent to September 30, 2011 and all the Current
Reports on Form 8-K and other filings (including, in each case, as amended, and all of the exhibits thereto) filed with the SEC
subsequent to September 30, 2011 and at least five (5) full Business Days (as defined in the Note) prior to the Closing Date (collectively,
the “SEC Reports”), and the undersigned has performed its own due diligence in connection with its subscription for
the Note and Warrants and has had a reasonable opportunity to ask questions of and receive answers from representatives of the
Company concerning the business and financial condition of the Company, the terms and conditions of this Subscription Agreement,
and all of such questions have been answered to the satisfaction of the undersigned.

 

(b)          The
undersigned is an “accredited investor,” as such term is defined in Regulation D of the Rules and Regulations promulgated
under the Securities Act of 1933, as amended (the “Act”). The undersigned is not a registered broker dealer registered
under Section 15(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or a member of the Financial
Industry Regulatory Authority, Inc. or an entity engaged in the business of being a broker dealer. The undersigned is not affiliated
with any broker dealer registered under Section 15(a) of the Exchange Act, or a member of the Financial Industry Regulatory Authority,
Inc. or an entity engaged in the business of being a broker dealer.

 

(c)          The
undersigned understands that the Company has determined that the exemption from the registration provisions of the Act, which is
based upon non-public offerings are applicable to the offer and sale of the Note and Warrants based, in part, upon the representations,
warranties and agreements made by the undersigned herein.

 

(d)          The
undersigned understands that (A) none of the Note, Warrants, shares of Common Stock issuable upon conversion of the Notes (the
“Conversion Shares”) or Warrant Shares (collectively, the “Securities”) have been registered under the
Act or the securities laws of any state, based upon an exemption from such registration requirements for non-public offerings pursuant
to Regulation D under the Act; (B) the Securities are and will be “restricted securities,” as said term is defined
in Rule 144 of the Rules and Regulations promulgated under the Act; (C) unless they have been first registered under the Act and
all applicable state securities laws, the Securities may only be offered, sold or otherwise transferred (1) to the Company, (2)
pursuant to the exemption from registration under the Act provided by Rule 144, or (3) pursuant to another exemption from registration
after providing a satisfactory legal opinion to the Company; (D) the Company is under no obligation to register any of the Securities
under the Act or any state securities laws, or to take any action to make any exemption from any such registration provisions available;
(E) the certificates for the Securities will bear the legend set forth in Section 2(r); and (F) stop transfer instructions will
be placed with the transfer agent for the Common Stock.

 

    	2

    	 

    

 

(e)          The
undersigned is acquiring the Note and Warrants in the ordinary course of business for its own account and not with a view towards,
or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered under the Act or
under an exemption from such registration and in compliance with applicable federal and state securities laws, and the undersigned
does not have a present arrangement to effect any distribution of the Securities to or through any person or entity in violation
of the Act or any applicable state securities laws.

 

(f)          The
undersigned, either alone or together with its representatives has such knowledge, sophistication and experience in business and
financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Note and Warrants,
and has so evaluated the merits and risks of such investment. The undersigned understands that it must bear the economic risk of
this investment in the Note and Warrants indefinitely, and is able to bear such risk and is able to afford a complete loss of such
investment.

 

(g)          The
undersigned is acquiring the Note and Warrants solely for the account of the undersigned, for investment purposes only, and not
with a view towards the resale or distribution thereof within the meaning of the Act.

 

(h)          The
undersigned has full power and authority to execute and deliver this Subscription Agreement and to perform the obligations of the
undersigned hereunder; and this Subscription Agreement is a legally binding obligation of the undersigned in accordance with its
terms.

 

(i)          The
address set forth below is the undersigned’s true and correct residence, and the undersigned has no present intention of
becoming a resident of any other state or jurisdiction. (If a corporation, trust or partnership, the undersigned has its principal
place of business at the address set forth below and was not organized (or has the jurisdiction of its organization and the address
of its investment manager as set forth on the signature page) for the specific purpose of subscribing to this offering).

 

(j)          The
undersigned does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations
to such person or to any third person, with respect to any of the Securities for which the undersigned is subscribing.

 

(k)          The
foregoing representations, warranties and agreements shall survive the execution, delivery and acceptance of this Subscription
Agreement and the closing of the sale of the Note and Warrants and shall continue in full force and effect notwithstanding any
subsequent disposition by the undersigned of any of the Securities.

 

(l)          The
undersigned acknowledges that it has access to and has reviewed the SEC Reports and has been afforded: (i) the opportunity to ask
such questions as it has deemed necessary of, and to receive answers from, the Company and its representatives concerning the terms
and conditions of the offering of the Note and Warrants and the merits and risks of investing in the Note and Warrants; (ii) access
to information (other than material non-public information) about the Company and Subsidiaries (as defined herein) and their respective
financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate
its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without
unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Neither
such inquiries nor any other investigation conducted by or on behalf of the undersigned or its representatives or counsel shall
modify, amend or affect the undersigned’s right to rely on the truth, accuracy and completeness of the SEC Reports and the
Company’s representations and warranties contained in this Subscription Agreement.

 

    	3

    	 

    

 

(m)          The
undersigned is not purchasing the Note and Warrants as a result of any advertisement, article, notice or other communication regarding
the Note and Warrants published in any newspaper, magazine or similar media, broadcast over television or radio, disseminated over
the Internet or presented at any seminar or, to its knowledge, any other general solicitation or general advertisement.

 

(n)          The
execution, delivery and performance by the undersigned of this Subscription Agreement and the consummation by the undersigned of
the transactions contemplated hereby will not (i) result in a violation of the organizational documents of the undersigned (if
the undersigned is not a natural person) or (ii) conflict with, or constitute a default (or an event which with notice or lapse
of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation
of, any agreement, indenture or instrument to which the undersigned is a party, or (iii) result in a violation of any law, rule,
regulation, order, judgment or decree (including federal and state securities laws) applicable to the undersigned, except in the
case of clauses (ii) and (iii) above, for such that are not material and do not otherwise affect the ability of the undersigned
to consummate the transactions contemplated hereby.

 

(o)          Neither
the undersigned, directly or indirectly, nor any Person acting on behalf of or pursuant to any understanding with the undersigned,
has engaged in any purchases or sales of any securities, including any derivatives, of the Company (including, without limitation,
any Short Sales involving any of the Company’s securities) (a “Transaction”) since the time that the undersigned
was first contacted by the Company or any other Person regarding an investment in the Company. The undersigned covenants that neither
it nor any Person acting on its behalf or pursuant to any understanding with the undersigned will engage, directly or indirectly,
in any Transactions prior to the time the transactions contemplated by this Subscription Agreement are publicly disclosed. The
term “Short Sales” shall have the meaning as defined in Rule 200 promulgated under Regulation SHO under the Exchange
Act.

 

(p)          The
undersigned understands that (i) this subscription is not binding upon the Company until the Company accepts it, which acceptance
is to be evidenced by the Company’s execution of this Subscription Agreement where indicated and (ii) the Company may, in
its sole discretion, reject this subscription, in which case this Subscription Agreement shall be null and void or reduce this
Subscription in any amount.

 

(q)          The
undersigned understands that neither this Subscription Agreement nor any of the rights of the undersigned hereunder may be transferred
or assigned by the undersigned prior to the Closing.

 

    	4

    	 

    

 

(r)          (i)          The
undersigned agrees to the imprinting of the legend set forth (i) on Exhibit A on the Note, (ii) on Exhibit B on the Warrants and
(iii) below (or a substantially similar) on any certificate representing the Conversion Shares or Warrant Shares:

 

THE SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD EXCEPT (i) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR (ii) UPON THE DELIVERY BY THE
HOLDER TO THE COMPANY OF AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO COUNSEL FOR THE COMPANY, STATING THAT AN EXEMPTION FROM
REGISTRATION UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS IS AVAILABLE FOR THE OFFER AND SALE OF SUCH SHARES.

 

(s)          The
undersigned agrees and acknowledges that there is no minimum amount of gross proceeds that the Company must receive to consummate
the Closing and that the Closing may occur whether or not the Company receives or accepts any other Subscriber’s Subscription
Agreement to purchase Offering Securities in the Offering.

 

3.          Representations
and Warranties of the Company. The Company hereby makes the following representations and warranties to the undersigned as
of the Closing Date. Each of the representations and warranties are qualified in their entirety by the information contained in
the SEC Reports and Disclosure Schedules hereto.

 

(a)          SEC
Reports; Term Sheet. As of their respective dates, each of the SEC Reports, as any of such documents may have been subsequently
amended by filings made by the Company with the SEC prior to the Closing Date, complied in all material respects with the requirements
of the Exchange Act and the applicable rules and regulations of the SEC thereunder and none of the SEC Reports or the Term Sheet
contains, and on the Closing Date, none of the SEC Reports or the Term Sheet will contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading. The financial statements of the Company included in the SEC Reports comply as to form in all material respects
with applicable accounting requirements and the published rules and regulations of the SEC or other applicable rules and regulations
with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles
(“GAAP”) applied on a consistent basis during the periods involved (except (i) as may be otherwise indicated in such
financial statements or the notes thereto or (ii) in the case of unaudited interim statements, to the extent they may not include
footnotes or may be condensed or summary statements), and fairly present in all material respects the financial position of the
Company and its Subsidiaries as of the dates thereof and the results of operations and cash flows for the periods then ended (subject,
in the case of unaudited statements, to normal year-end audit adjustments).

 

    	5

    	 

    

 

(b)          Organization;
Good Standing. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State
of Delaware, with full power and authority, corporate and other to own or lease, as the case may be, and operate its properties,
whether tangible or intangible, and to conduct its business as described in the SEC Reports and is duly qualified as a foreign
corporation to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership
or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing
would not have a Material Adverse Effect (as defined herein) on the Company. “Material Adverse Effect” or “Material
Adverse Change” means any effect or change, or any development that could result in a material adverse effect, on the business
or business prospects, properties, assets, operations, results of operations or condition (financial or otherwise) of the Company
or the Subsidiaries taken as a whole whether or not arising in the ordinary course of business, or on the transactions contemplated
by this Subscription Agreement, the Notes and the Warrants delivered in connection with the Offering (collectively, the “Transaction
Documents”). Except as set forth in the SEC Reports, there has been no obligation, contingent or otherwise, directly or indirectly
incurred by the Company or any Subsidiary.

 

(c)          Subsidiaries.
The Company’s subsidiaries are set forth in Exhibit 21 to the Company’s Annual Report on Form 10-K for the fiscal year
ended September 30, 2011 (the “Subsidiaries”). Unless the context requires otherwise, all references to the Company
include the Subsidiaries. Each Subsidiary is a corporation duly organized, validly existing and in good standing under the laws
of its state of incorporation as set forth in the Disclosure Schedules, with full power and authority, corporate and other, to
own or lease, as the case may be, and operate its properties, whether tangible or intangible, and to conduct its business as currently
conducted and as described in the SEC Reports. Each Subsidiary is duly qualified as a foreign corporation to transact business
and is in good standing in each jurisdiction in which the conduct of its business or the ownership or leasing of property requires
such qualification, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse
Effect on the Company and the Subsidiaries taken as a whole. The Company owns all of the issued and outstanding shares of capital
stock (or other equity or ownership interests) of each Subsidiary, such ownership is free and clear of any security interests,
liens, encumbrances, claims and charges, and all of such shares have been duly authorized and validly issued, and are fully paid
and nonassessable.

 

(d)          Capitalization.
The authorized capital stock of the Company conforms in all material respects to the description thereof contained in the SEC Reports
and such description conforms in all material respects to the rights in the instruments defining the same. The issued and outstanding
capital stock of the Company is as set forth in the Disclosure Schedules, except to the extent of the issuance of Notes and Warrants
in a prior Closing and to the extent that outstanding convertible debt is converted into shares of common stock and/or outstanding
warrants or options are exercised. No shares of Common Stock are entitled to preemptive rights or registration rights and there
are no outstanding options, warrants, scrip, rights to subscribe to, call or commitments of any character whatsoever relating to,
or securities or rights convertible into, any shares of capital stock of the Company. Furthermore, except as set forth in the SEC
Reports there are no contracts, commitments, understandings, or arrangements by which the Company is or may become bound to issue
additional shares of the capital stock of the Company or options, securities or rights convertible into shares of capital stock
of the Company. Except for customary transfer restrictions contained in agreements entered into by the Company in order to sell
restricted securities or as provided in the SEC Reports the Company is not a party to any agreement granting registration or anti-dilution
rights to any person with respect to any of its equity or debt securities. The Company is not a party to, and it has no knowledge
of, any agreement restricting the voting or transfer of any shares of the capital stock of the Company. Except as set forth in
the SEC Reports, the offer and sale of all capital stock, convertible securities, rights, warrants, or options of the Company issued
prior to the Closing complied in all material respects with all applicable Federal and state securities laws, and, to the knowledge
of the Company, no stockholder has a right of rescission or claim for damages with respect to the acquisition of the securities
from the Company which would have a Material Adverse Effect.

 

    	6

    	 

    

 

(e)          Authorization.
The Note and Warrants to be sold under this Subscription Agreement have been duly authorized and, when issued and sold and paid
for by the undersigned in accordance with the terms of this Subscription Agreement, will be duly authorized and validly issued.
The Conversion Shares and Warrant Shares have been duly reserved for issuance from the Company’s authorized but unissued
Common Stock and, upon conversion of the Note in accordance with the terms of the Note or exercise of the Warrants and payment
of the exercise price therefore in accordance with the terms of the Warrants, as the case may be, will be duly authorized, validly
issued, fully paid and non assessable, and the undersigned will not be subject to personal liability solely by reason of being
such holders and will not be subject to the preemptive or similar rights of any holders of any security of the Company.

 

(f)          Enforceability.
Each of this Subscription Agreement, the Note and the Warrants has been duly authorized, executed and delivered by, and is a valid
and binding agreement of, the Company enforceable in accordance with its terms, subject to applicable bankruptcy, reorganization,
insolvency, moratorium and similar laws affecting creditors’ rights generally (including, without limitation, statutory or
other laws regarding fraudulent preferential transfers) and equitable principles of general applicability.

 

(g)          No
Conflicts. The execution and delivery by the Company, and the performance by the Company of its obligations under the Transaction
Documents will not conflict with or contravene in any material respect, cause a breach or violation of or default under, any provision
of applicable law or the certificate of incorporation or by-laws of the Company or any agreement or other instrument binding upon
the Company that is material to the Company, or any judgment, order or decree of any governmental body, agency or court having
jurisdiction over the Company, and no consent, approval, authorization or order of, or qualification with, any governmental body
or agency is required for the performance by the Company of its obligations under the Transaction Documents, except for the filing
of a Form D with the SEC and such as may be required by the securities or Blue Sky laws of the various states in connection with
the offer and sale of the Note and Warrants and by Federal and state securities laws with respect to the obligations of the Company
under this Subscription Agreement or which have been obtained or the failure of which to obtain would not have a Material Adverse
Effect on the Company and the Subscribers taken as a whole.

 

(h)          Material
Adverse Change. Since the date of the last SEC Report, there has not occurred any Material Adverse Change, or any development
involving a prospective Material Adverse Change.

 

    	7

    	 

    

 

(i)          No
Violation. None of the Company nor any Subsidiary is in violation of its charter or by-laws or in default in the performance
of any obligation, agreement, covenant or condition contained in any indenture, loan agreement, mortgage, lease or other agreement
or instrument that is material to the Company and the Subsidiaries taken as a whole to which the Company or any Subsidiary is a
party or by which the Company, any Subsidiary or any of their properties is bound, except for such defaults that would not, singly
or in the aggregate, have a Material Adverse Effect on the Company and the Subsidiaries taken as a whole.

 

(j)          Actions
Pending. There are no legal or governmental proceedings, orders, judgments, writs, injunctions, decrees or demands pending
or, to the Company’s knowledge, threatened to which the Company or any Subsidiary is a party or to which any of the properties
of the Company or any Subsidiary is subject other than proceedings, orders, judgments, writs, injunctions, decrees or demands accurately
described in all material respects in the SEC Reports and proceedings, orders, judgments, writs, injunctions, decrees or demands
that would not have a Material Adverse Effect on the Company and the Subsidiaries taken as a whole or on the power or ability of
the Company to perform its obligations under the Transaction Documents or to consummate the transactions contemplated by the Transaction
Documents.

 

(k)          Integration.
Neither the Company nor any of its affiliates (as defined in Rule 501(b) of Regulation D, each an “Affiliate”) has
directly, or through any agent, (a) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any
security (as defined in the Securities Act) which is or will be integrated with the sale of the Note and Warrants in a manner that
would require the registration under the Act of the Note and Warrants or (b) offered, solicited offers to buy or sold the Note
and Warrants by any form of general solicitation or general advertising (as those terms are used in Regulation D) or in any manner
involving a public offering within the meaning of Section 4(2) of the Act. No registration under the Act of the Note and Warrants
is required for the sale of the Note and Warrants to the undersigned under this Subscription Agreement, assuming the accuracy of
the undersigned representations, warranties and agreements set forth in Section 2.

 

(l)          Intellectual
Property. The Company and each Subsidiary owns or possesses, or has the right to use, all material patents, patent rights,
licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures), trademarks, service marks and trade names currently employed or required by it in connection
with the business currently conducted by it as described in the SEC Reports, except such as the failure to so own or possess or
have the right to use would not have, singly or in the aggregate, a Material Adverse Effect on the Company and the Subsidiaries
taken as a whole. To the Company’s knowledge, there are no valid and enforceable United States patents that are infringed
by the business currently conducted by the Company or any Subsidiary, or as currently proposed to be conducted by the Company or
any Subsidiary, as described in the SEC Reports and which infringement would have a Material Adverse Effect on the Company and
the Subsidiaries taken as a whole. The Company is not aware of any basis for a finding that the Company or any Subsidiary does
not have valid title or license rights to the patents and patent applications referenced in the SEC Reports as owned or licensed
by the Company or any Subsidiary, and, to the Company’s knowledge, neither the Company nor any Subsidiary is subject to any
judgment, order, writ, injunction or decree of any court or any Federal, state, local, foreign or other governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign, or any arbitrator, nor has it entered into or is it
a party to any contract, which restricts or impairs the use of any of the foregoing which would have a Material Adverse Effect
on the Company and the Subsidiaries taken as a whole. Neither the Company nor any Subsidiary has received any written notice of
infringement of or conflict with asserted rights of any third party with respect to the business currently conducted by it as described
in the SEC Reports and which, if determined adversely to the Company or any Subsidiary, would have a Material Adverse Effect on
the Company and the Subsidiaries taken as a whole and the Company has no knowledge of any facts or circumstances that would serve
as a reasonable basis for any such claims.

 

    	8

    	 

    

 

(m)          SEC
Reporting Requirements. The Company is subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange
Act. Since January 1, 2011, the Company has filed with the SEC all reports required to be filed under the Exchange Act and the
Company is and, as of the time of the Closing will be, current in its reporting obligations under the Exchange Act. To the Company’s
knowledge, the Company has responded to all comments raised by the SEC with respect to the Company’s reports, registration
statements and other filings made with the SEC to the SEC’s satisfaction, and there are no comments which could have an adverse
effect on the Company’s consolidated financial condition or results of operations (past or future) or could require a restatement
of previously filed financial statements remained unresolved with the SEC.

 

(n)          Disclosure
Controls and Procedures. Except as set forth in the SEC Reports, the Company has established and maintains disclosure controls
and procedures (as such term is defined in Rule 13a-14 and 15d-14 under the Exchange Act); such disclosure controls and procedures
are designed to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known
to the Company’s Chief Executive Officer and its Chief Financial Officer by others within those entities, and such disclosure
controls and procedures are reasonably effective to perform the functions for which they were established, subject to the limitation
of any such control system; the Company’s auditors and the Audit Committee of the Board of Directors of the Company have
been advised of: (A) any significant deficiencies in the Company’s ability to record, process, summarize, and report financial
data; and (B) any fraud, whether or not material, that involves management or other employees who have a role in the Company’s
internal controls; any material weaknesses in internal controls have been identified for the Company’s auditors; and since
the date of the most recent evaluation of such disclosure controls and procedures, there have been no significant changes in internal
controls or in other factors that could significantly affect internal controls, including any corrective actions with regard to
significant deficiencies and material weaknesses.

 

(o)          Blue
Sky Filings. The Company has caused or will cause to be timely filed with each applicable jurisdiction corresponding to the
principal place(s) of business of the undersigned (as same has been provided by the undersigned) and such other jurisdictions as
reasonably requested by the undersigned all appropriate documentation required for the registration of the Offering under applicable
state law or required to secure an exemption from such registration requirements.

 

4.          Covenants.
The Company covenants with the undersigned as follows, which covenants are for the benefit of the undersigned and its permitted
assignees (as defined herein).

 

(a)          Securities
Compliance. The Company shall notify the SEC in accordance with its rules and regulations, of the transactions contemplated
by this Subscription Agreement, including filing a Form D with respect to the Offering Securities as required under Regulation
D, and shall take all other necessary action and proceedings as may be required and permitted by applicable law, rule and regulation,
for the legal and valid issuance of the Securities to the Subscribers or subsequent holders.

 

    	9

    	 

    

 

(b)          Registration
and Listing. As long as the Notes are outstanding, the Company will cause its Common Stock to continue to be registered under
Sections 12(b) or 12(g) of the Exchange Act, will comply in all respects with its reporting and filing obligations under the Exchange
Act, and will not take any action or file any document (whether or not permitted by the Securities Act or the rules promulgated
thereunder) to terminate or suspend such registration or to terminate or suspend its reporting and filing obligations under the
Exchange Act or Securities Act, except as permitted herein.

 

(c)          Compliance
With Laws. Except for the matters herein, the Company shall comply, and cause each Subsidiary to comply, with all applicable
laws, rules, regulations and orders, noncompliance with which could have a Material Adverse Effect.

 

(d)          Keeping
of Records and Books of Account. The Company shall keep and cause each Subsidiary to keep adequate records and books of account,
in which complete entries will be made in accordance with GAAP consistently applied, reflecting all financial transactions of the
Company and its subsidiaries, and in which, for each fiscal year, all proper reserves for depreciation, depletion, obsolescence,
amortization, taxes, bad debts and other purposes in connection with its business shall be made.

 

(e)          Reporting
Requirements. If the Company ceases to file its periodic reports with the SEC, or if the SEC ceases making these periodic reports
available via the Internet without charge, then the Company shall furnish the following to the undersigned so long as the undersigned
shall beneficially own any Securities:

 

(i)          Quarterly
Reports filed with the SEC on Form 10-Q as soon as available, and in any event within forty-five (45) days after the end of each
of the first three fiscal quarters of the Company or within the extended time period provided for in Rule 12b-25 promulgated under
the Exchange Act;

 

(ii)         Annual
Reports filed with the SEC on Form 10-K as soon as available, and in any event within ninety (90) days after the end of each fiscal
year of the Company or within the extended time period provided for in Rule 12b-25 promulgated under the Exchange Act; and

 

(iii)        Copies
of all notices and information, including, without limitation, notices and proxy statements in connection with any meetings, that
are provided to holders of shares of Common Stock, contemporaneously with the delivery of such notices or information to such holders
of Common Stock.

 

5.          Conditions
Precedent. The obligation hereunder of the undersigned to acquire and pay for the Offering Securities is subject to the satisfaction
or waiver, at or before the Closing, of each of the conditions set forth below. These conditions are for the sole benefit of the
undersigned and may be waived by the undersigned at any time in its sole discretion.

 

    	10

    	 

    

 

(a)          Each
of the representations and warranties of the Company shall be true and correct in all material respects as of the date when made
and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a particular
date), which shall be true and correct in all material respects as of such date.

 

(b)          The
Company shall have performed, satisfied and complied in all respects with all covenants, agreements and conditions required by
this Subscription Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing.

 

(c)          On
the Closing Date, the Term Sheet will not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

(d)          From
the date set forth below to the Closing Date, trading in the Company’s Common Stock shall not have been suspended by the
SEC (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior
to the Closing), and, at any time prior to the Closing, trading in securities generally as reported by Bloomberg Financial Markets
(“Bloomberg”) shall not have been suspended or limited, or minimum prices shall not have been established on securities
whose trades are reported by Bloomberg, or on the New York Stock Exchange, nor shall a banking moratorium have been declared either
by the United States or New York State authorities, nor shall there have occurred any material outbreak or escalation of hostilities
or other national or international calamity or crisis of such magnitude in its effect on, or any material adverse change in any
financial market which, in each case, in the judgment of the undersigned, makes it impracticable or inadvisable to purchase the
Offering Securities.

 

(e)          No
statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Subscription Agreement.

 

(f)          No
action, suit or proceeding before any arbitrator or any governmental authority shall have been commenced, and no investigation
by any governmental authority shall have been threatened, against the Company or any Subsidiary, or any of the officers, directors
or affiliates of the Company or any Subsidiary seeking to restrain, prevent or change the transactions contemplated by this Subscription
Agreement, or seeking damages in connection with such transactions.

 

(g)          The
Company shall have executed and delivered to the undersigned a Note and Warrant for the Offering Securities being acquired at the
Closing (such Offering Securities shall not be issued until full payment has been made therefor).

 

(h)          The
board of directors of the Company shall have adopted resolutions approving the transaction contemplated hereby.

 

    	11

    	 

    

 

6.           Miscellaneous.

 

(a)          In
the event of rejection of this subscription, this Subscription Agreement and any other agreement entered into between the undersigned
and the Company relating to this subscription shall thereafter have no force or effect and the Company shall promptly return or
cause to be returned to the undersigned the subscription amount remitted to the Company by the undersigned, without interest thereon
or deduction therefrom.

 

(b)          Except
as otherwise provided herein, this Subscription Agreement shall be binding upon and inure to the benefit of the parties and their
heirs, executors, administrators, successors, legal representatives and assigns. If the undersigned is more than one person, the
obligation of the undersigned shall be joint and several and the agreements, representations, warranties and acknowledgements herein
contained shall be deemed to be made by and be binding upon each such person and his heirs, executors, administrators and successors.

 

(c)          This
Subscription Agreement and the documents referenced herein contain the entire agreement of the parties and there are no representations,
covenants or other agreements, except as stated or referred to herein and therein.

 

(d)          This
Subscription Agreement shall be governed by and construed under the laws of the State of New York applicable to contracts made
and to be performed entirely within the State of New York. Each party hereby irrevocably submits to the non-exclusive jurisdiction
of the state and federal courts sitting in the City and County of New York for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby (including without limitation any dispute under or with respect
to the Note or the Warrants), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding involving
the undersigned or permitted assignee of the undersigned, any claim that it is not personally subject to the jurisdiction of any
such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in
any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this
Subscription Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.

 

(e)          This
Subscription Agreement may only be modified by a written instrument executed by the undersigned and the Company.

 

(f)          Unless
the context otherwise requires, all personal pronouns used in this Subscription Agreement, whether in the masculine, feminine or
neuter gender, shall include all other genders.

 

(g)          All
notices or other communications hereunder shall be given in accordance with Section 9.2 of the Note.

 

(h)          Nothing
in this Subscription Agreement or any other materials presented by or on behalf of the Company to the undersigned in connection
with the purchase of the Note and Warrants constitutes legal, tax or investment advice. The undersigned has consulted such legal,
tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase
of the Shares.

 

    	12

    	 

    

 

IN WITNESS WHEREOF, the undersigned has
executed this Subscription Agreement this _____ day of ____________, 201_.

  

    	13

    	 

    

 

SIGNATURE PAGE

 

	Organization Signature:	 	Individual Signature(s): [If Joint Tenants or Tenants-In-Common, both persons must sign and print their names]:
	 	 	 
	Print Name of Subscriber Organization	 	 
	 	 	 
	By:	 	 	 
	 	(Signature and Title)	 	Signature(s)
	 	 	 

 

	 	 	 
	Print Name and Title of Person Signing	 	Print Name of Subscriber
	 	 	 
	 	 	 
	Print Address of Subscriber	 	Print Name of Subscriber
	 	 	 
	 	 	 
	 	 	Print Address of Subscriber

 

Principal Amount of Note subscribed
for: $   Principal Amount of Note)

Number of Warrants subscribed for: _________Warrants
($__ per Warrant)

 

	Individual/Company Name:	 
	By:	 
	Name:	 
	Title:	 
	Name to appear on certificate:	 
	Tax ID:	 
	Mailing address:	 
	 	 
	 	 
	Mailing address for notices, if any: 	 
	 	 
	 	 
	Email address for notices, if any:	 
	Physical Delivery Address:	 
	 	 

  

    	 

    	 

    

 

ACCEPTANCE OF SUBSCRIPTION

 

BOOMERANG SYSTEMS, INC.

 

The foregoing subscription is hereby accepted
by Boomerang Systems, Inc., this _____ day of _________, 201_ for $______ Principal Amount of Notes and _______ Warrants.

 

	 	BOOMERANG SYSTEMS, INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

EXHIBIT A

 

Form of Promissory Note

 

    	 

    	 

    

 

EXHIBIT B

 

Form of Warrant

 

    	 

    	 

    

 

DISCLOSURE SCHEDULES
TO SUBSCRIPTION AGREEMENT

 

The Disclosure Schedule is arranged in sections corresponding
to the lettered sections contained in Section 3 of the Subscription Agreement, and the disclosures in any section of the Disclosure
Schedule shall qualify other sections and subsections in Section 3.

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