Document:

Exhibit 10.1

 

 

 

IIOT-OXYS, Inc.

attn: Cliff Emmons

705 Cambridge Street

Cambridge, MA 02141

 

Re:       Finder’s Fee Agreement

 

Dear
Cliff Emmons:

 

As
you know, IIOT-OXYS, Inc. (the “Issuer”), has
expressed an interest in obtaining private equity or debt capital for various purposes. This letter agreement (“Agreement”)
sets forth the terms and conditions upon which J.H. Darbie & Co., Inc. (“Darbie”),
will introduce the Issuer to third-party investors (each, an “Introduced Party”).

 

	 	1.	Nature of Agreement and Services.

 

(a)             
Promptly upon execution of this Agreement by the Issuer, Darbie will use its best efforts to initiate an introductory meeting
between principals of the Introduced Party and the Issuer to discuss a possible Transaction (as defined herein). The Issuer understands
that Darbie is not guaranteeing that a Transaction will be consummated, is not offering to purchase any securities of the Issuer,
and is not obligated to provide any additional services beyond the scope of this Agreement.

 

(b)             
Issuer is not at the time of this Agreement a customer, affiliate, or representative of Darbie.

 

(c)             
Darbie is not providing any recommendation to the Issuer in connection with any possible Transaction.

 

(d)             
Darbie has not provided any investment banking, advisory, or analytic services to the Issuer, including underwriting or
placement agent services, either as principal or agent, in connection with the offer or sale of any securities of the Issuer.

 

(e)             
Darbie is not and will not be a party to any contract entered into between the Issuer and any Introduced Party.

 

(f)             
Darbie will not participate in any way in fulfilling any obligations to any Introduced Party undertaken by the Issuer, including
services relating to the offer or sale of securities, such as: (i) performing any independent analysis of the offer or sale of
securities; (ii) engaging in any due diligence activities; (iii) assisting in or providing financing for such purchases; (iv) providing
any advice relating to the valuation of or the financial advisability of such an investment; (v) advising or providing information
regarding the suitability of any investment for any person; or (vi) handling any funds or securities.

 

	 	2.	Term.

 

(a)       This
Agreement will remain in effect for a period of 60 days from its date (the “Term”). Darbie will have the
right to terminate this Agreement upon five days’ prior written notice to the Issuer. The Issuer will not have the
right to terminate this Agreement unless there has been a breach by Darbie of a material term of this Agreement, and the
Issuer has provided Darbie with written notice of such breach; provided, however, Darbie will have the right to
cure such breach within 10 days of the date of the notice sent by the Issuer. Notwithstanding termination of this Agreement,
Darbie will be entitled to receive compensation under section 3 in the event the Issuer and an Introduced Party consummate a
Transaction (as defined herein) at any time during the period commencing on the date hereof and ending 12 months from the date
of introduction of the Introduced Party to the Issuer. Sections 2, 3, 6, 8, and 11 will survive termination of this
Agreement.

 

 

 

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(b)       If:
(i) during the 12 months following termination or expiration of this Agreement, any Introduced Party purchases equity or debt
securities from the Issuer other than through an underwritten public offering; or (ii) during the Term, an Introduced Party enters
into an agreement to purchase securities from the Issuer, which is consummated at any time thereafter; each of the foregoing,
a “Transaction,” the Issuer will pay Darbie, upon the receipt of the purchase price for the securities or the
close of the Transaction, a Finder’s Fee in the amount that would otherwise have been payable to Darbie in accordance with
this Agreement had such Transaction occurred during the Term.

 

	 	3.	Finder’s Fee and Expenses.

 

(a)             
In consideration of the foregoing, upon consummation of the closing regarding a financing on behalf of the Issuer, directly
or through a structured Transaction, Darbie will be entitled to receive a finder fee (“Finder’s Fee”) in cash
equal to two percent (2%) of the gross proceeds of an equity/convertible debt transaction and two percent (2%) of
the gross proceeds of a debt transaction received by the Issuer within three business days from the closing date. The Issuer and
the Introduced Party will not be obligated to pay Darbie if the Issuer does not receive the Transaction Proceeds for any reason
whatsoever.

 

(b)             
The Finder’s Fee will be paid in cash and will be payable whether or not the Transaction involves equity or debt
securities, or a combination of equity and debt securities and cash, or is made on the installment-sale basis. The Finder’s
Fee will be deducted from the Transaction Proceeds by the Introduced Party, and the Introduced Party will remit the Finder’s
Fee directly to Darbie on Issuer’s behalf. For purposes of this Agreement “Transaction Proceeds” will
mean the fair market value of all cash and securities received by the Issuer from the Introduced Party, including a debt repayment
or debt assumption, all determined in accordance with generally accepted accounting principles. Notwithstanding the foregoing,
in the event that the Transaction Proceeds are received by the Issuer in installments, the compensation payable to Darbie hereunder
will be due and payable upon receipt by the Issuer of each installment in the same manner described earlier in this section.

 

(c)             
Darbie will be solely liable for the payment of any taxes imposed or arising out of any Finder’s Fee received by it
under this Agreement.

 

(d)             
Issuer agrees to not circumvent Darbie by entering into business relations with any Introduced Party without providing payment
of the agreed upon Finder’s Fee as stated in this Agreement.

 

(e)             
Issuer and Darbie will each pay its own expenses arising out of or relating to this Agreement.

 

4.              Preexisting
Relationship. In the event Issuer has prior evidentiary communication with an Introduced party, the Issuer will notify Darbie
of such a relationship and, upon written request, provide documentation of the Issuer’s prior communication with an Introduced
Party. Communication will include phone or e-mail contact or written representations by both Issuer and an Introduced Party of
a preexisting relationship. For purposes of this paragraph, email communication is deemed acceptable. If the Issuer provides
satisfactory evidence that it had a preexisting relationship with any Introduced Party, that party will no longer be considered
an Introduced Party and any transaction between that party and the Issuer will not be subject to the Finder’s Fee. Exhibit
A identifies parties with whom the parties hereto recognize the Issuer has a preexisting relationship with but will
be subject to the Finder’s Fee.

 

5.               Darbie’s
Representations and Warranties. Darbie, a registered broker-dealer, represents and warrants that: (a) it is not prohibited
by any legal, contractual, fiduciary, or other obligation from receiving a Finder’s Fee; (ii) it has the full legal authority
and capacity to sign this Agreement; (iii) it is acting merely as a finder and will not provide investment banking or related
services to Issuer or any potential Introduced Parties; and (iv) no other person or entity is entitled to or has any claim to
the Finder’s Fee or any portion thereof. Darbie agrees to notify the Issuer promptly if any of the foregoing representations
ceases to be true.

 

6.               Confidential
Information. Darbie will hold in confidence, for a period of two years from the date hereof, any confidential information
that the Issuer may provide to it pursuant to this Agreement unless the Issuer gives Darbie permission in writing to disclose
such confidential information to a specific third party. Notwithstanding the foregoing, Darbie will not be required to maintain
confidentiality for information: (a) that is or becomes part of the public domain through no fault or action of Darbie; (b) of
which it had independent knowledge prior to disclosure to it by the Issuer; (c) that comes into Darbie’s possession in the
normal and routine course of its own business from and through independent, nonconfidential sources; or (d) that is required to
be disclosed by Darbie by governmental or security regulatory requirements. If Darbie is requested or required (by oral questions,
interrogatories, requests for information or document subpoenas, civil investigative demands, or similar process) to disclose
any confidential information supplied to it by the Issuer, or the existence of other negotiations in the course of its dealings
with the Issuer or its representatives, Darbie will, unless prohibited by law, promptly notify the Issuer of such a request so
that the Issuer may seek an appropriate protective order.

 

 

 

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7.               Independent
Contractor. Nothing in this Agreement will constitute a business combination, joint venture, partnership, or employment relationship
between the Issuer and Darbie. Darbie acknowledges and agrees that it is merely and strictly acting as a finder, and not as an
agent, employee, or representative of the Issuer, and has no authority to negotiate for or to bind the Issuer. This Agreement
is not exclusive, and each party is free to enter into similar arrangements with third parties. Darbie agrees it will not make,
publish, or distribute any advertisement or marketing material using the trademarks, logos, trade names or abbreviations thereof,
or any other such identifying mark or name of the Issuer or its affiliates without the prior consent of the Issuer.

 

8.               Indemnification. Each
party hereto agrees to indemnify and hold harmless the other party and its officers, directors, employees, agents,
representatives, and controlling persons (and the officers, directors, employees, agents, representatives, and controlling
persons of each of them) (as such are defined in Section 20 of the Securities Exchange Act of 1934, as amended), from and
against any and all losses, claims, damages, liabilities, costs, and expenses (and all actions, suits, proceedings, or claims
in respect thereof) and any legal or other expenses in giving testimony or furnishing documents in response to a subpoena or
otherwise (including the cost of investigating, preparing, or defending any such action, suit, proceeding or claim, whether
or not inconnection with any action, suit, proceeding, or claim in which Darbie or the Issuer is a party), as and when
incurred, directly or indirectly, caused by, relating to, based upon, or arising out of Darbie’s service pursuant to
this Agreement, including any suit based upon the terms and conditions of a Transaction or information, representations, or
warranties provided by the Issuer to a Transaction party by the Issuer. The Issuer further agrees that Darbie will incur no
liability to the Issuer for any acts or omissions by Darbie arising out of or relating to this Agreement or Darbie’s
performance or failure to perform any services under this Agreement, except for: (a) Darbie’s intentional or willful
misconduct; or (b) information regarding Darbie that is provided by Darbie to the Issuer or to a Transaction party. Further,
in no event will Darbie be liable to the Issuer or to any third party or Transaction party for an amount in excess of the
cash compensation received pursuant to section 3 hereof. This section 8 will survive the termination of this Agreement.
Notwithstanding the foregoing, no party otherwise entitled to indemnification will be entitled thereto to the extent such
party has been determined to have acted in a manner that has been deemed as gross negligence or willful misconduct regarding
the matter for which indemnification is sought herein.

 

9.               Notices.
Any notice, demand, request, or other communication permitted or required under this Agreement will be in writing and will be deemed
to have been given as of the date so delivered, if personally delivered; as of the date so sent, if sent by electronic mail and
receipt is acknowledged by the recipient; and one day after the date so sent, if delivered by overnight courier service; addressed
as follows:

 

	 	If to the Issuer:	IIOT-OXYS, Inc.
	 	 	attn: Cliff Emmons
	 	 	705 Cambridge Street
	 	 	Cambridge, MA 02141
	 	 	Email: Cliff.Emmons@oxyscorp.com
	 	 	 
	 	If to Darbie, to:	J H Darbie & Co., Inc.
	 	 	40 Wall Street
	 	 	New York, NY 10005 
	 	 	Email: ib@jhdarbie.com

 

Notwithstanding the foregoing, service
of legal process or other similar communications will not be given by electronic mail and will not be deemed duly given under this
Agreement if delivered by such means. Each party, by notice duly given in accordance herewith, may specify a different address
for the giving of any notice hereunder.

 

10.            
Successors and Assigns. No party will assign its rights, duties, and obligations under this Agreement without the
written consent of the other party, which will not be unreasonably withheld, except as otherwise specifically contemplated in this
Agreement. This Agreement will be binding upon, inure to the benefit of, and be enforceable by the parties and their permitted
successors and assigns.

 

11.            
Governing Law and Enforcement. This Agreement will be governed by and construed under and in accordance with the
laws of the state of New York, without giving effect to any choice or conflict of law provision or rule (whether the state of New
York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the state of New York.
All matters involving the Issuer and Darbie, whether arising under this Agreement or otherwise will be heard and determined by
mediation or arbitration in the manner provided herein.

 

 

 

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12.            
Entire Agreement. This Agreement incorporates and includes all prior negotiations, correspondence, conversations,
agreements, or understandings applicable to the matters contained herein, and the parties agree that there are no commitments,
agreements, or understandings concerning the subject matter of this Agreement that are not contained in this document. The parties
acknowledge that, in deciding to enter into this Agreement, they have not relied upon any statements, promises, or representations,
written or oral, express or implied, other than those set forth in this Agreement. Accordingly, it is agreed that no deviation
from the terms hereof will be predicated upon any prior representations or agreements, whether oral or written. The parties acknowledge
that they have negotiated this Agreement at arm’s-length with adequate representation on an equal basis, and the filing of
a suit challenging the negotiated terms of this Agreement by either party will be deemed a default and this Agreement will be terminated
as provided herein.

 

13.         Amendment.
Any amendment, modification, or waiver of the terms of this Agreement must be executed in writing by both parties.

 

14.          
Severability. The provisions of this Agreement are severable and should any provision hereof be void, voidable, or
unenforceable under any applicable law, such void, voidable, or unenforceable provision will not affect or invalidate any other
provision of this Agreement, which will continue to govern the relative rights and duties of the parties as though the void, voidable,
or unenforceable provision was not a part hereof. In addition, it is the intention and agreement of the parties that all of the
terms and conditions hereof be enforced to the fullest extent permitted by law.

 

15.          
Warranty of Authority. Each of the individuals signing this Agreement on behalf of a party hereto warrants and represents
that such individual is duly authorized and empowered to enter in this Agreement and bind such party hereto.

 

16.          
Counterpart Signatures. This Agreement may be executed in any number of counterparts (and any counterpart may be
executed by original, portable document format (pdf), or facsimile signature), each of which when executed and delivered will be
deemed an original, but all of which will constitute one and the same instrument.

 

 

 

 

If
the foregoing is acceptable to you, please so indicate by signing in the space provided below and returning a signed
copy of this Agreement to us for our records.

 

	 	Sincerely,

 

J H DARBIE & CO., INC.

 

Xavier Vicuña

 

Vice President

 

Agreed to and accepted this 18th day of May, 2020.

 

	 	Issuer:	IIOT-OXYS, Inc.
	 	By:	/s/ Clifford Emmons
	 	Name:	Clifford Emmons
	 	Title:	CEO

 

 

 

 

 

 

 

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Exhibit A

 

to JH Darbie Finder’s
Agreement: Carveout List

(updated as of 18th of May 2020)

 

1.       Crown Bridge Partners,
LLC, a New York limited liability company

 

 

 

 

 

 

 

 

 

 

 

    	 	5Exhibit 10.2

 

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

 

COMMON STOCK PURCHASE WARRANT

IIOT-OXYS, INC.

 

Warrant Shares: 175,000

 

Date of Issuance: May 20, 2020 (“Issuance Date”)

 

This COMMON STOCK
PURCHASE WARRANT (the “Warrant”) certifies that, for value received (in connection with the funding of purchase
price of $31,500.00, for the second tranche of $35,000.00 under the convertible promissory note in the principal amount of $105,000.00
issued by the Company (as defined below) to the Holder (as defined below) on August 29, 2019) (the “Note”)), Crown
Bridge Partners, LLC (including any permitted and registered assigns, the “Holder”), is entitled, upon
the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date
of issuance hereof, to purchase from IIOT-OXYS, Inc., a Nevada corporation (the “Company”), 175,000 shares
of Common Stock (as defined below) (the “Warrant Shares”) at the Exercise Price per share then in effect (whereby
such number may be adjusted from time to time pursuant to the terms and conditions of this Warrant).

 

Capitalized terms
used in this Warrant shall have the meanings set forth in the Purchase Agreement unless otherwise defined in the body of this
Warrant or in Section 12 below. For purposes of this Warrant, the term “Exercise Price” shall mean $0.20 subject
to adjustment as provided herein (including but not limited to cashless exercise), and the term “Exercise Period”
shall mean the period commencing on the Issuance Date and ending on 5:00 p.m. eastern standard time on the five-year anniversary
thereof.

 

1.       EXERCISE OF WARRANT.

 

(a)       Mechanics
of Exercise. Subject to the terms and conditions hereof, the rights represented by this Warrant may be exercised in whole
or in part at any time or times during the Exercise Period by delivery of a written notice, in the form attached hereto as Exhibit
A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant. The Holder shall not
be required to deliver the original Warrant in order to effect an exercise hereunder. Partial exercises of this Warrant resulting
in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding
number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. On or
before the second Trading Day (the “Warrant Share Delivery Date”) following the date on which the Holder sent
the Exercise Notice to the Company or the Company’s transfer agent, and upon receipt by the Company of payment to the Company
of an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares

 

as to which all or a portion of this Warrant
is being exercised (the “Aggregate Exercise Price” and together with the Exercise Notice, the “Exercise
Delivery Documents”) in cash or by wire transfer of immediately available funds (or by cashless exercise, in which case
there shall be no Aggregate Exercise Price provided), the Company shall (or direct its transfer agent to) issue and dispatch by
overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register
in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to
such exercise (or deliver such shares of Common Stock in electronic format if requested by the Holder). Upon delivery of the Exercise
Delivery Documents, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares
with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such
Warrant Shares. If this Warrant is submitted in connection with any exercise 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 the Company
shall as soon as practicable and in no event later than three Business Days after any exercise and at its own expense, issue a
new Warrant (in accordance with Section 6) 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.

 

 

 

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If the Company fails
to cause its transfer agent to transmit to the Holder the respective shares of Common Stock by the respective Warrant Share Delivery
Date, then the Holder will have the right to rescind such exercise in Holder’s sole discretion, and such failure shall be
deemed an event of default under the Note.

 

If the Market Price
of one share of Common Stock is greater than the Exercise Price, the Holder may elect to receive Warrant Shares pursuant to a cashless
exercise, in lieu of a cash exercise, equal to the value of this Warrant determined in the manner described below (or of any portion
thereof remaining unexercised) by surrender of this Warrant and a Notice of Exercise, in which event the Company shall issue to
Holder a number of Common Stock computed using the following formula:

 

X = Y (A-B) 

 

A

 

Where X = the number of Warrant Shares to be issued to Holder.

 

	Y =     	the number of Warrant Shares that the Holder elects to purchase under this Warrant (at the date of such calculation).
	A =     	the Market Price (at the date of such calculation).
	B =     	Exercise Price (as adjusted to the date of such calculation).

 

(b)          
No Fractional Shares. No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any
adjustment pursuant hereto. All Warrant Shares (including fractions) issuable upon exercise of this Warrant may be aggregated for
purposes of determining whether the exercise would result in the issuance of any fractional share. If, after aggregation, the exercise
would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the Holder
otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the then-current fair market
value of a Warrant Share by such fraction.

 

(c)            Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to
exercise any portion of this Warrant, to the extent that after giving effect to issuance of Warrant Shares upon exercise as
set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other
persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess
of the Beneficial Ownership Limitation, as defined below. For purposes of the foregoing sentence, the number of shares of
Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable
upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares
of Common Stock which would be issuable upon (i) exercise of the remaining, non-exercised portion of this Warrant
beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or non-converted
portion of any other securities of the Company (including without limitation any other Common Stock Equivalents) subject to a
limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of
its Affiliates. Except as set forth in the preceding sentence, for purposes of this paragraph (d), beneficial ownership shall
be calculated in accordance with Section 13(d) of the Exchange Act, it being acknowledged by the Holder that the Company is
not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder
is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation
contained in this paragraph applies, the determination of whether this Warrant is exercisable (in relation to other
securities owned by the Holder together with any affiliates) and of which portion of this Warrant is exercisable shall be in
the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s
determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any
Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation,
and the Company shall have no obligation to verify or confirm the accuracy of such determination.

 

 

 

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For purposes of this
paragraph, in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares
of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the
case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or its transfer
agent setting forth the number of shares of Common Stock outstanding. Upon the request of a Holder, the Company shall within two
Trading Days confirm to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding
shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including
this Warrant, by the Holder or its affiliates since the date as of which such number of outstanding shares of Common Stock was
reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant.
The limitations contained in this paragraph shall apply to a successor Holder of this Warrant. The Company is required at all
times to have authorized and reserved (free from preemptive rights) ten times the number of shares that is actually issuable upon
full exercise of the Warrant (based on the Exercise Price in effect at that time)(the “Reserved Amount”). The Reserved
Amount shall be increased from time to time in accordance with the Company’s obligations hereunder.

 

2.       ADJUSTMENTS.
The Exercise Price and the number of Warrant Shares shall be adjusted from time to time as follows:

 

(a)       Distribution
of Assets. If the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its
assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including without limitation any distribution
of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement
or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in
each such case:

 

(i)       any
Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination of holders
of shares of Common Stock entitled to receive the Distribution shall be reduced, effective as of the close of business on such
record date, to a price determined by multiplying such Exercise Price by a fraction (i) the numerator of which shall be the Closing
Sale Price of the shares of Common Stock on the Trading Day immediately preceding such record date minus the value of the Distribution
(as determined in good faith by the Company’s Board of Directors) applicable to one share of Common Stock, and (ii) the
denominator of which shall be the Closing Sale Price of the shares of Common Stock on the Trading Day immediately preceding such
record date; and

 

(ii)       the
number of Warrant Shares shall be increased to a number of shares equal to the number of shares of Common Stock obtainable immediately
prior to the close of business on the record date fixed for the determination of holders of shares of Common Stock entitled to
receive the Distribution multiplied by the reciprocal of the fraction set forth in the immediately preceding clause (i); provided,
however, that in the event that the Distribution is of shares of common stock of a company (other than the Company) whose common
stock is traded on a national securities exchange or a national automated quotation system (“Other Shares of Common Stock”),
then the Holder may elect to receive a warrant to purchase Other Shares of Common Stock in lieu of an increase in the number of
Warrant Shares, the terms of which shall be identical to those of this Warrant, except that such warrant shall be exercisable
into the number of shares of Other Shares of Common Stock that would have been payable to the Holder pursuant to the Distribution
had the Holder exercised this Warrant immediately prior to such record date and with an aggregate exercise price equal to the
product of the amount by which the exercise price of this Warrant was decreased with respect to the Distribution pursuant to the
terms of the immediately preceding clause (i) and the number of Warrant Shares calculated in accordance with the first part of
this clause (ii).

 

(b)       Anti-Dilution
Adjustments to Exercise Price. If the Company or any Subsidiary thereof, as applicable, at any time while this Warrant is
outstanding, shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose of or issue
(or announce any offer, sale, grant or any option to purchase or other disposition) any Common Stock or securities entitling any
person or entity to acquire shares of Common Stock (upon conversion, exercise or otherwise) (including but not limited to under
the Note), at an effective price per share less than the then Exercise Price (such lower price, the “Base Share Price”
and such issuances collectively, a “Dilutive Issuance”) (if the holder of the Common Stock or Common Stock
Equivalents so issued shall at any time, whether by operation of purchase price adjustments, elimination of an applicable floor
price for any reason in the future (including but not limited to the passage of time or satisfaction of certain condition(s)),
reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share
which are issued in connection with such issuance, be entitled or potentially entitled to receive shares of Common Stock at an
effective price per share which is less than the Exercise Price at any time while such Common Stock or Common Stock Equivalents
are in existence, such issuance shall be deemed to have occurred for less than the Exercise Price on such date of the Dilutive
Issuance (regardless of whether the Common Stock or Common Stock Equivalents are (i) subsequently redeemed or retired by the Company
after the date of the Dilutive Issuance or (ii) actually converted or exercised at such Base Share Price), then the Exercise Price
shall be reduced at the option of the Holder and only reduced to equal the Base Share Price, and the number of Warrant Shares
issuable hereunder shall be increased such that the aggregate Exercise Price payable hereunder, after taking into account the
decrease in the Exercise Price, shall be equal to the aggregate Exercise Price prior to such adjustment (for the avoidance of
doubt, the aggregate Exercise Price prior to such adjustment is calculated as follows: the total number of Warrant Shares multiplied
by the initial Exercise Price in effect as of the Issuance Date). Such adjustment shall be made whenever such Common Stock or
Common Stock Equivalents are issued, regardless of whether the Common Stock or Common Stock Equivalents are (i) subsequently redeemed
or retired by the Company after the date of the Dilutive Issuance or (ii) actually converted or exercised at such Base Share Price
by the holder thereof (for the avoidance of doubt, the Holder may utilize the Base Share Price even if the Company did not actually
issue shares of its common stock at the Base Share Price under the respective Common stock Equivalents). The Company shall notify
the Holder in writing, no later than the Trading Day following the issuance of any Common Stock or Common Stock Equivalents subject
to this Section 2(b), indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion
price and other pricing terms (such notice the “Dilutive Issuance Notice”). For purposes of clarification,
whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 2(b), upon the occurrence of any Dilutive
Issuance, after the date of such Dilutive Issuance the Holder is entitled to receive a number of Warrant Shares based upon the
Base Share Price regardless of whether the Holder accurately refers to the Base Share Price in the Notice of Exercise.

 

 

 

    	 	3	 

     

    

 

(c)       Subdivision
or Combination of Common Stock. If the Company at any time on or after the Issuance Date subdivides (by any stock split, stock
dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of
shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant
Shares will be proportionately increased. If the Company at any time on or after the Issuance Date combines (by combination, reverse
stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Exercise
Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares will be
proportionately decreased. Any adjustment under this Section 2(c) shall become effective at the close of business on the date the
subdivision or combination becomes effective. Each such adjustment of the Exercise Price shall be calculated to the nearest one-hundredth
of a cent. Such adjustment shall be made successively whenever any event covered by this Section 2(c) shall occur.

 

3.               
FUNDAMENTAL TRANSACTIONS. If, at any time while this Warrant is outstanding, (i) the Company effects any merger
of the Company with or into another entity and the Company is not the surviving entity (such surviving entity, the “Successor
Entity”), (ii) the Company effects any sale of all or substantially all of its assets in one or a series of related
transactions, (iii) any tender offer or exchange offer (whether by the Company or by another individual or entity, and approved
by the Company) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares of Common
Stock for other securities, cash or property and the holders of at least 50% of the Common Stock accept such offer, or (iv) the
Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property (other than as a result of a subdivision or combination
of shares of Common Stock) (in any such case, a “Fundamental Transaction”), then, upon any subsequent exercise
of this Warrant, the Holder shall have the right to receive the number of shares of Common Stock of the Successor Entity or of
the Company and any additional consideration (the “Alternate Consideration”) receivable upon or as a result
of such reorganization, reclassification, merger, consolidation or disposition of assets by a holder of the number of shares of
Common Stock for which this Warrant is exercisable immediately prior to such event (disregarding any limitation on exercise contained
herein solely for the purpose of such determination). For purposes of any such exercise, the determination of the Exercise Price
shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable
in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among
the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate
Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental
Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of
this Warrant following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any Successor
Entity in such Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing
the Holder’s right to exercise such warrant into Alternate Consideration.

 

4.               
NON-CIRCUMVENTION. The Company covenants and agrees that it will not, by amendment of its certificate of incorporation,
bylaws 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, for so long as this Warrant
is outstanding, have authorized and reserved, free from preemptive rights, a sufficient number of shares of Common Stock to provide
for the exercise of the rights represented by this Warrant (without regard to any limitations on exercise) as further provided
in this Warrant.

 

5.       WARRANT
HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, this Warrant, in and of itself, shall not
entitle the Holder to any voting rights or other rights as a stockholder of the Company. 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.

 

6.       REISSUANCE.

 

(a)            
Lost, Stolen or Mutilated Warrant. If this Warrant is lost, stolen, mutilated or destroyed, the Company will, on such
terms as to indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender
thereof), issue a new Warrant of like denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.

 

 

 

    	 	4	 

     

    

 

(b)            
Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant,
such new Warrant shall be of like tenor with this Warrant, and shall have an issuance date, as indicated on the face of such new
Warrant which is the same as the Issuance Date.

 

7.       TRANSFER.
This Warrant shall be binding upon the Company and its successors and assigns, and shall inure to be the benefit of the Holder
and its successors and assigns. Notwithstanding anything to the contrary herein, the rights, interests or obligations of the Company
hereunder may not be assigned, by operation of law or otherwise, in whole or in part, by the Company without the prior signed
written consent of the Holder, which consent may be withheld at the sole discretion of the Holder (any such assignment or transfer
shall be null and void if the Company does not obtain the prior signed written consent of the Holder). This Warrant or any of
the severable rights and obligations inuring to the benefit of or to be performed by Holder hereunder may be assigned by Holder
to a third party, in whole or in part, without the need to obtain the Company’s consent thereto.

 

8.       NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance
with the notice provisions contained in the Purchase Agreement. The Company shall provide the Holder with prompt written notice
(i) immediately upon any adjustment of the Exercise Price, setting forth in reasonable detail, the calculation of such adjustment
and (ii) at least 20 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 stock or other securities
directly or indirectly convertible into or exercisable or exchangeable for shares of Common Stock or other property, pro rata
to the 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.

 

9.       AMENDMENT
AND WAIVER. The terms of this Warrant may be amended or waived (either generally or in a particular instance and either retroactively
or prospectively) only with the written consent of the Company and the Holder.

 

10.       GOVERNING
LAW AND VENUE. This Warrant shall be governed by and construed in accordance with the laws of the State of Nevada without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions
contemplated by this Warrant shall be brought only in the state courts located in New York, NY or in the federal courts
located in New York, NY. The parties to this Warrant hereby irrevocably waive any objection to jurisdiction and venue of any
action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non
conveniens. THE BORROWER 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. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In
the event that any provision of this Warrant or any other agreement delivered in connection herewith is invalid or
unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which
may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of
any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any
suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for
notices to it under this 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 other manner
permitted by law.

 

11.            
ACCEPTANCE. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms
and conditions contained herein.

 

12.            
CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)             
“Nasdaq” means www.Nasdaq.com.

 

 

 

    	 	5	 

     

    

 

(b)            
“Closing Sale Price” means, for any security as of any date, (i) the last closing trade price for such
security on the Principal Market, as reported by Nasdaq, 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 p.m., New York time,
as reported by Nasdaq, or (ii) if the foregoing does not apply, the last trade price of such security in the over-the-counter
market for such security as reported by Nasdaq, or (iii) if no last trade price is reported for such security by Nasdaq, the average
of the bid and ask prices of any market makers for such security as reported by the OTC Markets. 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. All such determinations to be appropriately
adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation
period.

 

(c)             
“Common Stock” means the Company’s common stock, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

(d)            
“Common Stock Equivalents” means any securities of the Company that would entitle the holder thereof
to acquire at any time Common Stock, including without limitation any debt, preferred stock, rights, options, warrants or other
instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to
receive, Common Stock.

 

(e)             
“Dilutive Issuance” is any issuance of Common Stock or Common Stock Equivalents described in Section
2(c) above; provided, however, that a Dilutive Issuance shall not include any Exempt Issuance.

 

(f)             
“Exempt Issuance” means the issuance of (i) shares of Common Stock or options to officers or directors
of the Company pursuant to any 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, (ii) securities
issued pursuant to acquisitions approved by a majority of the disinterested directors of the Company, (iii) shares of Common Stock
issued in connection with regularly scheduled dividend payments on any preferred stock of the Company, and (iv) shares of Common
Stock issued pursuant to any real property leasing arrangement or financing from a national bank approved by the Board of Directors
of the Company.

 

(g)            
“Principal Market” means the primary national securities exchange on which the Common Stock is then
traded.

 

(h)            
“Market Price” means the highest traded price of the Common Stock during the sixty Trading Days prior
to the date of the respective Exercise Notice.

 

(i)              
“Trading Day” means (i) any day on which the Common Stock is listed or quoted and traded on its Principal
Market, (ii) if the Common Stock is not then listed or quoted and traded on any national securities exchange, then a day on which
trading occurs on any over-the-counter markets, or (iii) if trading does not occur on the over-the-counter markets, any Business
Day.

 

13.       MOST
FAVORED NATION. While any portion of this Warrant remains unexercised, the Company shall not enter into any public or private
offering of its securities (including securities convertible into shares of Common Stock) with any individual or entity (an “Other
Investor”) that has the effect of establishing rights or otherwise benefiting such Other Investor in a manner more favorable
to such Other Investor than the rights and benefits established in favor of the Holder by this Warrant unless, in any such case,
the Holder has been provided with such rights and benefits pursuant to a definitive written agreement or agreements between the
Company and the Holder. From the date hereof and for so long as any portion of this Warrant remains unexercised, in the event
that the Company issues or sells any Common Stock or Common Stock Equivalents or issues, any other securities convertible into,
exercisable for, or otherwise entitle any person or entity the right to acquire, shares of Common Stock, if the Holder then holding
any unexercised portion of this Warrant, believes that any of the terms and conditions appurtenant to such issuance or sale are
more favorable to such investor(s) than are the terms and conditions granted to the Holder, then such additional or more favorable
term, at Holder’s option, shall automatically become a part of the transaction documents (including but not limited to this
Warrant) with the Holder. The Company shall provide the Holder with notice of any such issuance or sale not later than two (2)
Trading Days before such issuance or sale.

 

* * * * * * *

 

 

 

 

 

    	 	6	 

     

    

 

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

 

	 	IIOT-OXYS, INC.
	 	 
	 	/s/ Clifford L. Emmons
	 	Name: Clifford L. Emmons 
	 	Title: Chief Executive Officer

 

 

 

 

 

 

 

 

    	 	7	 

     

    

 

 

EXHIBIT A

 

EXERCISE NOTICE

 

(To be executed by the registered holder
to exercise this Common Stock Purchase Warrant)

 

THE UNDERSIGNED
holder hereby exercises the right to purchase___________of the shares of

 

Common Stock (“Warrant Shares”)
of IIOT-OXYS, Inc., a Nevada corporation (the “Company”), evidenced by the attached copy of the Common Stock Purchase
Warrant (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 (check one):

 

☐
a cash exercise with respect to_________________________ Warrant Shares; or

☐ by cashless exercise pursuant to the Warrant.

 

		2.	Payment of Exercise Price. If cash exercise is selected above, the holder shall pay the applicable 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 the holder_______ Warrant
                                                              Shares in accordance with the terms of the Warrant.

 

Date: _________________________

 

 

	 	 
	 	(Print Name of Registered Holder)
	 	 
	 	 
	 	By: ______________________
	 	Name:____________________
	 	Title: _____________________

 

 

 

 

    	 	8	 

     

    

 

 

EXHIBIT B

 

ASSIGNMENT OF WARRANT

 

(To be signed only upon authorized transfer
of the Warrant)

 

FOR VALUE RECEIVED,
the undersigned hereby sells, assigns, and transfers unto________________________________ the right to purchase _________
shares of common stock of IIOT-OXYS, Inc., to which the within Common Stock Purchase Warrant relates and appoints
____________, as attorney-in-fact, to transfer said right on the books of IIOT-OXYS, Inc. with full power of substitution and
re-substitution in the premises. By accepting such transfer, the transferee has agreed to be bound in all respects by the
terms and conditions of the within Warrant.

 

Dated:

	 	 
	 	(Signature)*
	 	 
	 	(Name)
	 	 
	 	 
	 	(Address)
	 	 
	 	 
	 	(Social Security or Tax Identification No.)
	 	 

 

* The signature on this Assignment of Warrant
must correspond to the name as written upon the face of the Common Stock Purchase Warrant in every particular without alteration
or enlargement or any change whatsoever. When signing on behalf of a corporation, partnership, trust or other entity, please indicate
your position(s) and title(s) with such entity.

 

 

 

 

    	 	9

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