Document:

Taronis
Fuels, Inc.

 

2019
Employee Stock Purchase Plan

 

1. General; Purpose.

 

(a)
Purpose. The Company, by means of the Plan, seeks to retain the services of such Employees, to secure and retain the services
of new Employees and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Related
Corporations and Affiliates. The Plan provides a means by which Eligible Employees of the Company and certain Designated Companies
may be given an opportunity to purchase shares of Common Stock. The Plan permits the Company to grant a series of Purchase Rights
to Eligible Employees under an Employee Stock Purchase Plan.

 

(b)
Qualified and Non-Qualified Offerings Permitted. The Plan includes two components: a 423 Component and a Non-423 Component.
The Company intends (but makes no undertaking or representation to maintain) the 423 Component to qualify as an Employee Stock
Purchase Plan. The provisions of the 423 Component, accordingly, will be construed in a manner that is consistent with the requirements
of Section 423 of the Code. In addition, this Plan authorizes grants of Purchase Rights under the Non-423 Component that
do not meet the requirements of an Employee Stock Purchase Plan. Except as otherwise provided in the Plan or determined by the
Board, the Non-423 Component will operate and be administered in the same manner as the 423 Component. In addition, the Company
may make separate Offerings which vary in terms (provided that such terms are not inconsistent with the provisions of the Plan
or the requirements of an Employee Stock Purchase Plan to the extent the Offering is made under the 423 Component), and the Company
will designate which Designated Company is participating in each separate Offering.

 

2. Administration.

 

(a)
The Board will administer the Plan unless and until the Board delegates administration of the Plan to a Committee or Committees,
as provided in Section 2(c).

 

(b)
The Board will have the power, subject to, and within the limitations of, the express provisions of the Plan:

 

(i)
To determine how and when Purchase Rights will be granted and the provisions of each Offering (which need not be identical).

 

(ii)
To designate from time to time which Related Corporations will be eligible to participate in the Plan as Designated 423 Corporations
or which Related Corporations or Affiliates will be eligible to participate in the Plan as Designated Non-423 Corporations, which
Affiliates or Related Corporations may be excluded from participation in the Plan, and which Designated Companies will participate
in each separate Offering (to the extent that the Company makes separate Offerings).

 

(iii)
To construe and interpret the Plan and Purchase Rights, and to establish, amend and revoke rules and regulations for its administration.
The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan, in a manner and to the
extent it deems necessary or expedient to make the Plan fully effective.

 

    	 

    	 

    

 

(iv)
To settle all controversies regarding the Plan and Purchase Rights granted under the Plan.

 

(v)
To suspend or terminate the Plan at any time as provided in Section 12.

 

(vi)
To amend the Plan at any time as provided in Section 12.

 

(vii)
Generally, to exercise such powers and to perform such acts as it deems necessary or expedient to promote the best interests
of the Company, its Related Corporations, and Affiliates and to carry out the intent that the 423 Component be treated as an Employee
Stock Purchase Plan.

 

(viii)
To adopt such rules, procedures and sub-plans relating to the operation and administration of the Plan as are necessary or
appropriate under applicable local laws, regulations and procedures to permit or facilitate participation in the Plan by Employees
who are foreign nationals or employed or located outside the United States. Without limiting the generality of, but consistent
with, the foregoing, the Board specifically is authorized to adopt rules, procedures, and sub-plans, which, if applicable to a
Designated Non-423 Corporation, do not have to comply with the requirements of Section 423 of the Code, regarding, without
limitation, eligibility to participate in the Plan, the definition of eligible “earnings,” handling and making of
Contributions, establishment of bank or trust accounts to hold Contributions, payment of interest, conversion of local currency,
obligations to pay payroll tax, withholding procedures and handling of share issuances, any of which may vary according to applicable
requirements.

 

(c)
The Board may delegate some or all of the administration of the Plan to a Committee or Committees. If administration is delegated
to a Committee, the Committee will have, in connection with the administration of the Plan, the powers theretofore possessed by
the Board that have been delegated to the Committee, including the power to delegate to a subcommittee any of the administrative
powers the Committee is authorized to exercise (and references in this Plan to the Board will thereafter be to the Committee or
subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from
time to time by the Board. Further, to the extent not prohibited by Applicable Law, the Board or Committee may, from time to time,
delegate some or all of its authority under the Plan to other persons or groups of persons as it deems necessary, appropriate,
or advisable under conditions or limitations that it may set at or after the time of the delegation. The Board may retain the
authority to concurrently administer the Plan with the Committee and may, at any time, revest in the Board some or all of the
powers previously delegated. Whether or not the Board has delegated administration of the Plan to a Committee, the Board will
have the final power to determine all questions of policy and expediency that may arise in the administration of the Plan.

 

(d)
All determinations, interpretations and constructions made by the Board will not be subject to review by any person and will
be final, binding and conclusive on all persons.

 

3. Shares of Common Stock Subject to the Plan.

 

(a)
Number of Shares Available; Automatic Increases. Subject to the provisions of Section 11(a) relating to Capitalization
Adjustments and the following sentence regarding the Evergreen Increase, the initial number of shares of Common Stock that may
be issued under the Plan shall equal 25,000,000 shares of Common Stock (the “Share Reserve”). In addition,
the Share Reserve will automatically increase on January 1st of each year for a period of up to ten (10) years, commencing
on January 1, 2020 and ending on (and including) January 1, 2029 (each, an “Evergreen Date”), in an
amount equal to the lesser of (i) 1.0% of the total number of shares of Common Stock outstanding on December
31st immediately preceding the applicable Evergreen Date, and (ii) 25,000,000 shares (the “Evergreen Increase”).
Notwithstanding the foregoing, the Board may act prior to the Evergreen Date of a given year to provide that there will be no
Evergreen Increase for such year or that the Evergreen Increase for such year will be a lesser number of shares of Common Stock
than would otherwise occur pursuant to the preceding sentence. For the avoidance of doubt, up to the maximum number of shares
of Common Stock reserved under this Section 3(a) may be used to satisfy purchases of Common Stock under the 423 Component
and any remaining portion of such maximum number of shares may be used to satisfy purchases of Common Stock under the Non-423
Component.

 

    	 

    	 

    

 

(b)
Share Recycling. If any Purchase Right granted under the Plan terminates without having been exercised in full, the shares
of Common Stock not purchased under such Purchase Right will again become available for issuance under the Plan.

 

(c)
Source of Shares. The stock purchasable under the Plan will be shares of authorized but unissued or reacquired Common Stock,
including shares repurchased by the Company on the open market.

 

4. Grant of Purchase Rights; Offerings.

 

(a)
Offerings. The Board may from time to time grant or provide for the grant of Purchase Rights to Eligible Employees under an
Offering (consisting of one or more Purchase Periods) on an Offering Date or Offering Dates selected by the Board. Each Offering
will be in such form and will contain such terms and conditions as the Board will deem appropriate, and, with respect to the 423
Component, will comply with the requirement of Section 423(b)(5) of the Code that all Employees granted Purchase Rights will
have the same rights and privileges. The terms and conditions of an Offering shall be incorporated by reference into the Plan
and treated as part of the Plan. The provisions of separate Offerings need not be identical, but each Offering will include (through
incorporation of the provisions of this Plan by reference in the Offering Document or otherwise) the period during which the Offering
will be effective, which period will not exceed 27 months beginning with the Offering Date, and the substance of the provisions
contained in Sections 5 through 8, inclusive.

 

(b)
Restart Provision Permitted. The Board will have the discretion to structure an Offering so that if the Fair Market Value
of a share of Common Stock on the first Trading Day of a new Purchase Period within that Offering is less than or equal to the
Fair Market Value of a share of Common Stock on the Offering Date for that Offering, then (i) that Offering will terminate
immediately as of that first Trading Day, and (ii) the Participants in such terminated Offering will be automatically enrolled
in a new Offering beginning on the first Trading Day of such new Purchase Period.

 

5. Eligibility.

 

(a)
General. Purchase Rights may be granted only to Employees of the Company or, as the Board may designate in accordance with
Section 2(b), to Employees of a Related Corporation or an Affiliate. Except as provided in Section 5(b) or as required
by Applicable Law, an Employee will not be eligible to be granted Purchase Rights unless, on the Offering Date, the Employee has
been in the employ of the Company, a Related Corporation or an Affiliate, as the case may be, for such continuous period preceding
such Offering Date as the Board may require, but in no event will the required period of continuous employment be equal to or
greater than two years. The Board may provide that no Employee will be eligible to be granted Purchase Rights under the Plan unless,
on the Offering Date, such Employee’s customary employment with the Company, the Related Corporation, or the Affiliate,
as applicable, is more than 20 hours per week and more than five months per calendar year or such other criteria as the Board
may determine consistent with Section 423 of the Code with respect to the 423 Component and Applicable Law. The Board further
retains the discretion to determine which Eligible Employees may participate in an Offering pursuant to and consistent with U.S.
Treasury Regulation Section 1.423-2(e) and (f).

 

    	 

    	 

    

 

(b)
Grant of Purchase Rights in Ongoing Offering. The Board may provide that each person who, during the course of an Offering,
first becomes an Eligible Employee will, on a date or dates specified in the Offering which coincides with the day on which such
person becomes an Eligible Employee or which occurs thereafter, receive a Purchase Right under that Offering, which Purchase Right
will thereafter be deemed to be a part of that Offering. Such Purchase Right will have the same characteristics as any Purchase
Rights originally granted under that Offering, as described herein, except that:

 

(i)
the date on which such Purchase Right is granted will be the “Offering Date” of such Purchase Right
for all purposes, including determination of the exercise price of such Purchase Right;

 

(ii)
the period of the Offering with respect to such Purchase Right will begin on its Offering Date and end coincident with the
end of such Offering; and

 

(iii)
the Board may provide that if such person first becomes an Eligible Employee within a specified period of time before the
end of the Offering, he or she will not receive any Purchase Right under that Offering.

 

(c)
5% Stockholders Excluded. No Employee will be eligible for the grant of any Purchase Rights if, immediately after any such
Purchase Rights are granted, such Employee owns stock possessing five percent or more of the total combined voting power or value
of all classes of stock of the Company or of any Related Corporation. For purposes of this Section 5(c), the rules of Section 424(d)
of the Code will apply in determining the stock ownership of any Employee, and stock which such Employee may purchase under all
outstanding Purchase Rights and options will be treated as stock owned by such Employee.

 

(d)
US $25,000 Limit. As specified by Section 423(b)(8) of the Code, an Eligible Employee may be granted Purchase Rights
only if such Purchase Rights, together with any other rights granted under all Employee Stock Purchase Plans of the Company and
any Related Corporations or Affiliates, do not permit such Eligible Employee’s rights to purchase stock of the Company or
any Related Corporation or Affiliates to accrue at a rate which, when aggregated, exceeds US$25,000 of Fair Market Value of such
stock (determined at the time such rights are granted, and which, with respect to the Plan, will be determined as of their respective
Offering Dates) for each calendar year in which such rights are outstanding at any time, subject to compliance with Applicable
Law.

 

(e)
Highly Compensated Employees. Officers of the Company and any Designated Company, if they are otherwise Eligible Employees,
will be eligible to participate in Offerings under the Plan. Notwithstanding the foregoing, the Board may provide in an Offering
that Employees who are highly compensated Employees within the meaning of Section 423(b)(4)(D) of the Code will not be eligible
to participate.

 

(f)
Non-423 Component Offerings. Notwithstanding anything in this Section 5 to the contrary, in the case of an Offering under
the Non-423 Component, an Eligible Employee (or group of Eligible Employees) may be excluded from participation in the Plan or
an Offering if the Board has determined, in its sole discretion, that participation of such Eligible Employee(s) is not advisable
or practical for any reason.

 

    	 

    	 

    

 

6. Purchase Rights; Purchase Price.

 

(a)
Grant and Maximum Contribution Rate. On each Offering Date, each Eligible Employee, pursuant to an Offering made under the
Plan, will be granted a Purchase Right to purchase up to that number of shares of Common Stock (rounded down to the nearest whole
share) purchasable either with a percentage or with a maximum dollar amount, as designated by the Board, but in either case not
exceeding 15% of such Employee’s earnings (as defined by the Board in each Offering) during the period that begins on the
Offering Date (or such later date as the Board determines for a particular Offering) and ends on the date stated in the Offering,
which date will be no later than the end of the Offering.

 

(b)
Purchase Dates. The Board will establish one or more Purchase Dates during an Offering on which Purchase Rights granted for
that Offering will be exercised and shares of Common Stock will be purchased in accordance with such Offering.

 

(c)
Other Purchase Limitations. In connection with each Offering made under the Plan, the Board may specify (i) a maximum
number of shares of Common Stock that may be purchased by any Participant on any Purchase Date during such Offering, (ii) a
maximum aggregate number of shares of Common Stock that may be purchased by all Participants pursuant to such Offering and/or
(iii) a maximum aggregate number of shares of Common Stock that may be purchased by all Participants on any Purchase Date
under the Offering. If the aggregate purchase of shares of Common Stock issuable upon exercise of Purchase Rights granted under
the Offering would exceed any such maximum aggregate number, then, in the absence of any Board action otherwise, a pro rata (based
on each Participant’s accumulated Contributions) allocation of the shares of Common Stock (rounded down to the nearest whole
share) available will be made in as nearly a uniform manner as will be practicable and equitable.

 

(d)
Purchase Price. The purchase price of shares of Common Stock acquired pursuant to Purchase Rights will be not less than the
lesser of:

 

(i)
an amount equal to 85% of the Fair Market Value of the shares of Common Stock on the Offering Date; or

 

(ii)
an amount equal to 85% of the Fair Market Value of the shares of Common Stock on the applicable Purchase Date.

 

7. Participation; Withdrawal; Termination.

 

(a)
Enrollment and Contributions. An Eligible Employee may elect to authorize payroll deductions as the means of making Contributions
by completing and delivering to the Company or Company Designee, within the time specified in the Offering, an enrollment form
provided by the Company or Company Designee. The enrollment form will specify the amount of Contributions not to exceed the maximum
amount specified by the Board. Each Participant’s Contributions will be credited to a bookkeeping account for such Participant
under the Plan and will be deposited with the general funds of the Company except where Applicable Laws require that Contributions
be deposited with a Company Designee or otherwise segregated. If permitted in the Offering, a Participant may begin such Contributions
with the first payroll occurring on or after the Offering Date (or, in the case of a payroll date that occurs after the end of
the prior Offering but before the Offering Date of the next new Offering, Contributions from such payroll will be included in
the new Offering). If permitted in the Offering, a Participant may thereafter during the Offering reduce (including to zero) or
increase his or her Contributions. If required under Applicable Law or if specifically provided in the Offering, in addition to
or instead of making Contributions by payroll deductions, a Participant may make Contributions through a payment by cash, check,
or wire transfer prior to a Purchase Date, in a manner directed by the Company or a Company Designee.

 

    	 

    	 

    

 

(b)
Withdrawals. During an Offering, a Participant may cease making Contributions and withdraw from the Offering by delivering
to the Company or a Company Designee a withdrawal form provided by the Company. The Company may impose a deadline before a Purchase
Date for withdrawing. Upon such withdrawal, such Participant’s Purchase Right in that Offering will immediately terminate
and the Company will distribute as soon as practicable to such Participant all of his or her accumulated but unused Contributions
and such Participant’s Purchase Right in that Offering shall thereupon terminate. A Participant’s withdrawal from
that Offering will have no effect upon his or her eligibility to participate in any other Offerings under the Plan, but such Participant
will be required to deliver a new enrollment form to participate in subsequent Offerings.

 

(c)
Termination of Employment or Eligible Employee Status. Unless otherwise required by Applicable Law, Purchase Rights granted
to a Participant pursuant to any Offering under the Plan will terminate immediately if the Participant either (i) is no longer
an Employee for any reason or for no reason or (ii) is otherwise no longer eligible to participate, and the Company will
distribute as soon as practicable to such Participant all of his or her accumulated but unused Contributions and such Participant’s
Purchase Right in that Offering shall thereupon terminate.

 

(d)
Leave of Absence. For purposes of this Section 7, an Employee will not be deemed to have terminated employment or failed
to remain in the continuous employ of the Company or of a Designated Company in the case of sick leave, military leave, or any
other leave of absence approved by the Company; provided that such leave is for a period of not more than ninety (90) days
or reemployment upon the expiration of such leave is guaranteed by contract or statute. The Company will have sole discretion
to determine whether a Participant has terminated employment and the effective date on which the Participant terminated employment,
regardless of any notice period or garden leave required under local law.

 

(e)
Employment Transfers. Unless otherwise determined by the Board, a Participant whose employment transfers or whose employment
terminates with an immediate rehire (with no break in service) by or between the Company and a Designated Company or between Designated
Companies will not be treated as having terminated employment for purposes of participating in the Plan or an Offering; however,
if a Participant transfers from an Offering under the 423 Component to an Offering under the Non-423 Component, the exercise of
the Participant’s Purchase Right will be qualified under the 423 Component only to the extent such exercise complies with
Section 423 of the Code. If a Participant transfers from an Offering under the Non-423 Component to an Offering under the
423 Component, the exercise of the Purchase Right will remain non-qualified under the Non-423 Component. In the event that a Participant’s
Purchase Right is terminated under the Plan, the Company will distribute as soon as practicable to such individual all of his
or her accumulated but unused Contributions.

 

(f)
No Transfers of Purchase Rights. During a Participant’s lifetime, Purchase Rights will be exercisable only by such Participant.
Purchase Rights are not transferable by a Participant, except by will, by the laws of descent and distribution, or, if permitted
by the Company, by a beneficiary designation.

 

(g)
No Interest. Unless otherwise specified in the Offering or required by Applicable Law, the Company will have no obligation
to pay interest on Contributions.

 

8. Exercise of Purchase Rights.

 

(a)
On each Purchase Date, each Participant’s accumulated Contributions will be applied to the purchase of shares of Common
Stock (rounded down to the nearest whole share), up to the maximum number of shares of Common Stock permitted by the Plan and
the applicable Offering, at the purchase price specified in the Offering. No fractional shares will be issued unless specifically
provided for in the Offering.

 

(b)
Unless otherwise provided in the Offering, if any amount of accumulated Contributions remains in a Participant’s account
after the purchase of shares of Common Stock on a Purchase Date in an Offering, then such remaining amount will be distributed
to such Participant as soon as practicable after the applicable Purchase Date, without interest, unless the payment of interest
is required by Applicable Law.

 

    	 

    	 

    

 

(c)
No Purchase Rights may be exercised to any extent unless the shares of Common Stock to be issued upon such exercise under
the Plan are covered by an effective registration statement pursuant to the Securities Act and the Plan is in material compliance
with all applicable U.S. federal and state, foreign and other securities, exchange control and other laws applicable to the Plan.
If on a Purchase Date the shares of Common Stock are not so registered or the Plan is not in such compliance, no Purchase Rights
will be exercised on such Purchase Date, and the Purchase Date will be delayed until the shares of Common Stock are subject to
such an effective registration statement and the Plan is in material compliance, except that the Purchase Date will in no event
be more than 6 months from the Offering Date. If, on the Purchase Date, as delayed to the maximum extent permissible, the shares
of Common Stock are not registered and the Plan is not in material compliance with Applicable Law, as determined by the Company
in its sole discretion, no Purchase Rights will be exercised and all accumulated but unused Contributions will be distributed
as soon as practicable to the Participants without interest, unless the payment of interest is required by Applicable Law.

 

9. Covenants of the Company.

 

The
Company will seek to obtain from each U.S. federal or state, foreign or other regulatory commission or agency having jurisdiction
over the Plan such authority as may be required to grant Purchase Rights and issue and sell shares of Common Stock thereunder
unless the Company determines, in its sole discretion, that doing so is not practical or would cause the Company to incur costs
that are unreasonable. If, after commercially reasonable efforts, the Company is unable to obtain the authority that counsel for
the Company deems necessary for the grant of Purchase Rights or the lawful issuance and sale of Common Stock under the Plan, and
at a commercially reasonable cost, the Company will be relieved from any liability for failure to grant Purchase Rights and/or
to issue and sell Common Stock upon exercise of such Purchase Rights.

 

10. Death of Participant.

 

If
a Participant dies, the Company will deliver any shares of Common Stock and/or Contributions to the executor or administrator
of the estate of the Participant. If no executor or administrator has been appointed (to the knowledge of the Company), the Company,
in its sole discretion, may deliver such shares of Common Stock and/or Contributions, without interest, unless the payment of
interest is required by Applicable Law, to the Participant’s spouse, dependents or relatives, or if no spouse, dependent
or relative is known to the Company, then to such other person as the Company may designate.

 

11. Adjustments upon Changes in Common Stock; Corporate Transactions.

 

(a)
Capitalization Adjustment. In the event of a Capitalization Adjustment, the Board will appropriately and proportionately adjust:
(i) the class(es) or kind and maximum number of securities subject to the Plan pursuant to Section 3(a), (ii) the class(es)
or kind and maximum number of securities by which the share reserve is to increase automatically each year pursuant to Section 3(a),
(iii) the class(es) or kind and number of securities subject to, and the purchase price applicable to outstanding Offerings and
Purchase Rights, and (iv) the class(es) or kind and number of securities that are the subject of the purchase limits under
each ongoing Offering. The Board will make these adjustments, and its determination will be final, binding and conclusive.

 

(b)
Corporate Transaction. In the event of a Corporate Transaction, then: (i) any surviving corporation or acquiring corporation
(or the surviving or acquiring corporation’s parent company) may assume or continue outstanding Purchase Rights or may substitute
similar rights (including a right to acquire the same consideration paid to the stockholders in the Corporate Transaction) for
outstanding Purchase Rights, or (ii) if any surviving or acquiring corporation (or its parent company) does not assume or
continue such Purchase Rights or does not substitute similar rights for such Purchase Rights, then the Participants’ accumulated
Contributions will be used to purchase shares of Common Stock (rounded down to the nearest whole share) within ten business days
(or such other period specified by the Board) prior to the Corporate Transaction under the outstanding Purchase Rights, and the
Purchase Rights will terminate immediately after such purchase.

 

    	 

    	 

    

 

(c)
Spin-Off. In the event of a spin-off or similar transaction involving the Company, the Board may take actions deemed necessary
or appropriate in connection with an ongoing Offering and subject to compliance with Applicable Law (including the assumption
of Purchase Rights under an ongoing Offering by the spun-off company, or shortening an Offering and scheduling a new Purchase
Date prior to the closing of such transaction). In the absence of any such action by the Board, a Participant in an ongoing Offering
whose employer ceases to qualify as a Related Corporation as of the closing of a spin-off or similar transaction will be treated
in the same manner as if the Participant had terminated employment (as provided in Section 7(c)).

 

12. Amendment, Termination or Suspension of the Plan.

 

(a)
Plan Amendment. The Board may amend the Plan at any time in any respect the Board deems necessary or advisable. However, except
as provided in Section 11(a) relating to Capitalization Adjustments, stockholder approval will be required for any amendment
of the Plan for which stockholder approval is required by Applicable Laws, including any amendment that either (i) materially
increases the number of shares of Common Stock available for issuance under the Plan, (ii) materially expands the class of
individuals eligible to become Participants and receive Purchase Rights, (iii) materially increases the benefits accruing
to Participants under the Plan or materially reduces the price at which shares of Common Stock may be purchased under the Plan,
(iv) materially extends the term of the Plan, or (v) expands the types of awards available for issuance under the Plan,
but in each of (i) through (v) above only to the extent stockholder approval is required by Applicable Law.

 

(b)
Suspension or Termination. The Board may suspend or terminate the Plan at any time. No Purchase Rights may be granted under
the Plan while the Plan is suspended or after it is terminated.

 

(c)
No Impairment of Rights. Any benefits, privileges, entitlements and obligations under any outstanding Purchase Rights granted
before an amendment, suspension or termination of the Plan will not be materially impaired by any such amendment, suspension or
termination except (i) with the consent of the person to whom such Purchase Rights were granted, (ii) as necessary to
facilitate compliance with any laws, listing requirements, or governmental regulations (including, without limitation, the provisions
of Section 423 of the Code and the regulations and other interpretive guidance issued thereunder relating to Employee Stock
Purchase Plans) including without limitation any such regulations or other guidance that may be issued or amended after the Effective
Date, or (iii) as necessary to obtain or maintain any special tax, listing, or regulatory treatment. To be clear, the Board
may amend outstanding Purchase Rights without a Participant’s consent if such amendment is necessary to ensure that the
Purchase Right and/or the 423 Component complies with the requirements of Section 423 of the Code, or other Applicable Law.

 

(d)
Corrections and Administrative Procedures. Notwithstanding anything in the Plan to the contrary, the Board or the Plan Administrator
will be entitled to: (i) permit Contributions in excess of the amount designated by a Participant in order to adjust for
mistakes in the Company’s processing of properly completed Contribution elections; (ii) establish reasonable waiting
and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common
Stock for each Participant properly correspond with amounts withheld from the Participant’s Contributions; (iii) amend
any outstanding Purchase Rights or clarify any ambiguities regarding the terms of any Offering to enable the Purchase Rights to
qualify under and/or comply with Section 423 of the Code; and (iv) establish other limitations or procedures as the
Board or the Plan Administrator determines in its sole discretion advisable that are consistent with the Plan. The actions of
the Board or the Plan Administrator pursuant to this paragraph will not be considered to alter or impair any Purchase Rights granted
under an Offering as they are part of the initial terms of each Offering and the Purchase Rights granted under each Offering.

 

    	 

    	 

    

 

13. Tax Matters.

 

(a)
Code Section 409A. Purchase Rights granted under the 423 Component are intended to be exempt from the application of
Section 409A of the Code under U.S. Treasury Regulation Section 1.409A-1(b)(5)(ii). Purchase Rights granted under the Non-423
Component to U.S. taxpayers are intended to be exempt from the application of Section 409A of the Code under the short-term
deferral exception or compliant with Section 409A of the Code and any ambiguities will be construed and interpreted in accordance
with such intent.

 

(b)
No Guarantee of Tax Treatment. Although the Company may endeavor to qualify a Purchase Right for special tax treatment under
the laws of the United States or jurisdictions outside the United States, or avoid adverse tax treatment (e.g., under Section 409A
of the Code), the Company makes no representation to that effect and expressly disavows any covenant to maintain special or to
avoid unfavorable tax treatment, notwithstanding anything to the contrary in this Plan.

 

14. Tax Withholding.

 

The
Participant will make adequate provision to satisfy the Tax-Related Items withholding obligations, if any, of the Company and/or
the applicable Designated Company which arise with respect to Participant’s participation in the Plan or upon the disposition
of the shares of the Common Stock. The Company and/or the Designated Company may, but will not be obligated to, withhold from
the Participant’s compensation or any other payments due the Participant the amount necessary to meet such withholding obligations,
withholding a sufficient whole number of shares of Common Stock issued following exercise having an aggregate value sufficient
to pay the Tax-Related Items or withhold from the proceeds of the sale of shares of Common Stock, either through a voluntary sale
or a mandatory sale arranged by the Company or any other method of withholding that the Company and/or the Designated Company
deems appropriate. The Company and/or the Designated Company will have the right to take such other action as may be necessary
in the opinion of the Company or a Designated Company to satisfy withholding and/or reporting obligations for such Tax-Related
Items. The Company shall not be required to issue any shares of Common Stock under the Plan until such obligations are satisfied.

 

15. Effective Date of Plan.

 

The
Plan will become effective on August 15, 2019. No Purchase Rights will be exercised unless and until the Plan has been approved
by the stockholders of the Company, which approval must be within 12 months before or after the date the Plan is adopted (or if
required under Section 12(a) above, materially amended) by the Board.

 

16. Miscellaneous Provisions.

 

(a)
Proceeds from the sale of shares of Common Stock pursuant to Purchase Rights will constitute general funds of the Company.

 

(b)
A Participant will not be deemed to be the holder of, or to have any of the rights of a holder with respect to, shares of
Common Stock subject to Purchase Rights unless and until the Participant’s shares of Common Stock acquired upon exercise
of Purchase Rights are recorded in the books of the Company (or its transfer agent).

 

    	 

    	 

    

 

(c)
The Plan and Offering do not constitute an employment contract. Nothing in the Plan or in the Offering will in any way alter
the at-will nature of a Participant’s employment or amend a Participant’s employment contract, if applicable, or be
deemed to create in any way whatsoever any obligation on the part of any Participant to continue in the employ of the Company,
a Related Corporation, or an Affiliate, or on the part of the Company, a Related Corporation or an Affiliate to continue the employment
of a Participant.

 

(d)
The provisions of the Plan will be governed by the laws of the State of Delaware without resort to that state’s conflicts
of laws rules.

 

(e)
If any particular provision of the Plan is found to be invalid or otherwise unenforceable, such provision will not affect
the other provisions of the Plan, but the Plan will be construed in all respects as if such invalid provision were omitted.

 

(f)
If any provision of the Plan does not comply with Applicable Law, such provision shall be construed in such a manner as to
comply with Applicable Law.

 

17. Definitions.

 

As
used in the Plan, the following definitions will apply to the capitalized terms indicated below:

 

(a)
“423 Component” means the part of the Plan, which excludes the Non-423 Component, pursuant to which
Purchase Rights that satisfy the requirements for an Employee Stock Purchase Plan may be granted to Eligible Employees.

 

(b)
“Affiliate” means any entity, other than a Related Corporation, in which the Company has an equity
or other ownership interest or that is directly or indirectly controlled by, controls, or is under common control with the Company,
in all cases, as determined by the Board, whether now or hereafter existing.

 

(c)
“Applicable Law” means the requirements relating to the administration of equity-based awards under
state corporate laws, United States federal and state securities laws, the Code, any stock exchange or quotation system on which
the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Purchase Rights are,
or will be, granted under the Plan.

 

(d)
“Board” means the board of directors of the Company.

 

(e)
“Capitalization Adjustment” means any change that is made in, or other events that occur with respect
to, the Common Stock subject to the Plan or subject to any Purchase Right after the Effective Date without the receipt of consideration
by the Company through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property
other than cash, large nonrecurring cash dividend, stock split, liquidating dividend, combination of shares, exchange of shares,
change in corporate structure or other similar equity restructuring transaction, as that term is used in Financial Accounting
Standards Board Accounting Standards Codification Topic 718 (or any successor thereto). Notwithstanding the foregoing, the conversion
of any convertible securities of the Company will not be treated as a Capitalization Adjustment.

 

(f)
“Code” means the U.S. Internal Revenue Code of 1986, as amended, including any applicable regulations
and guidance thereunder.

 

(g)
“Committee” means a committee of one or more members of the Board to whom authority has been delegated
by the Board in accordance with Section 2(c).

 

    	 

    	 

    

 

(h)
“Common Stock” means the common stock of the Company.

 

(i)
“Company” means Taronis Fuels, Inc., a Delaware corporation, and any successor corporation thereto.

 

(j)
“Contributions” means the payroll deductions and/or other payments specifically provided for in
the Offering that a Participant contributes to fund the exercise of a Purchase Right. A Participant may make additional payments
into his or her account if specifically provided for in the Offering, and then only if the Participant has not already contributed
the maximum permitted amount of payroll deductions and/or other payments during the Offering.

 

(k)
“Corporate Transaction” means the consummation, in a single transaction or in a series of related
transactions, of any one or more of the following events:

 

(l)
a sale or other disposition of all or substantially all, as determined by the Board in its sole discretion, of the consolidated
assets of the Company and its Subsidiaries;

 

(i)
a sale or other disposition of more than 50% of the outstanding securities of the Company;

 

(ii)
a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or

 

(iii)
a merger, consolidation or similar transaction following which the Company is the surviving corporation but the shares of
Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by
virtue of the merger, consolidation or similar transaction into other property, whether in the form of securities, cash or otherwise.

 

(iv)
“Designated 423 Corporation” means any Related Corporation selected by the Board as participating
in the 423 Component.

 

(m)
“Designated Company” means any Designated Non-423 Corporation or Designated 423
Corporation, provided, however, that at any given time, a Related Corporation participating in the 423 Component shall not be
a Related Corporation participating in the Non-423 Component.

 

(n)
“Designated Non-423 Corporation” means any Related Corporation or Affiliate selected by the Board
as participating in the Non-423 Component.

 

(o)
“Director” means a member of the Board.

 

(p)
“Effective Date” means the effective date of the Plan, as set forth in Section 15.

 

(q)
“Eligible Employee” means an Employee who meets the requirements set forth in the document(s) governing
the Offering for eligibility to participate in the Offering, provided that such Employee also meets the requirements for eligibility
to participate set forth in the Plan. For purposes of clarity, the term “Eligible Employee” shall not
include the following, regardless of any subsequent reclassification as an employee by the Company or a Designated Company, any
governmental agency, or any court: (i) any independent contractor; (ii) any consultant; (iii) any individual performing
services for the Company or a Designated Company who has entered into an independent contractor or consultant agreement with the
Company or a Designated Company; (iv) any individual performing services for the Company or a Designated Company under an
independent contractor or consultant agreement, a purchase order, a supplier agreement or any other agreement that the Company
or a Designated Company enters into for services; (v) any individual classified by the Company or a Designated Company as
contract labor (such as contractors, contract employees, job shoppers), regardless of length of service; and (vi) any leased
employee. The Board shall have exclusive discretion to determine whether an individual is an Eligible Employee for purposes of
the Plan.

 

    	 

    	 

    

 

(r)
“Employee” means any person, including an Officer or Director, who is “employed” for
purposes of Section 423(b)(4) of the Code by the Company or a Related Corporation (including an Affiliate). However, service
solely as a Director, or payment of a fee for such services, will not cause a Director to be considered an “Employee”
for purposes of the Plan.

 

(s)
“Employee Stock Purchase Plan” means a plan that grants Purchase Rights intended to be options issued
under an “employee stock purchase plan,” as that term is defined in Section 423(b) of the Code.

 

(t)
“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended and the rules and regulations
promulgated thereunder.

 

(u)
“Fair Market Value” means, as of any date, the value of the Common Stock determined as follows:

 

(v)
If the Common Stock is listed on any established stock exchange or traded on any established market, the Fair Market Value
of a share of Common Stock will be, unless otherwise determined by the Board, the closing sales price for such stock as quoted
on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the date of
determination, as reported in such source as the Board deems reliable. Unless otherwise provided by the Board, if there is no
closing sales price for the Common Stock on the date of determination, then the Fair Market Value will be the closing sales price
on the last preceding date for which such quotation exists.

 

(i)
In the absence of such markets for the Common Stock, the Fair Market Value will be determined by the Board in good faith in
compliance with Applicable Law and, to the extent applicable as determined in the sole discretion of the Board, in a manner that
complies with Sections 409A of the Code.

 

(w)
“Non-423 Component” means the part of the Plan, which excludes the 423 Component, pursuant
to which Purchase Rights that are not intended to satisfy the requirements for an Employee Stock Purchase Plan may be granted
to Eligible Employees.

 

(x)
“Offering” means the grant to Eligible Employees of Purchase Rights, with the exercise of those
Purchase Rights automatically occurring at the end of one or more Purchase Periods. The terms and conditions of an Offering will
generally be set forth in the “Offering Document” approved by the Board for that Offering.

 

(y)
“Offering Date” means a date selected by the Board for an Offering to commence.

 

(z)
“Officer” means a person who is an officer of the Company or a Related Corporation or Affiliate
within the meaning of Section 16 of the Exchange Act.

 

(aa)
“Participant” means an Eligible Employee who holds an outstanding Purchase Right.

 

(bb)
“Plan” means this Taronis Fuels, Inc. 2019 Employee Stock Purchase Plan, as amended from time to
time.

 

    	 

    	 

    

 

(cc)
“Plan Administrator” means one or more Officers or Employees designated by the Committee to administer
the day-to-day operations of the Plan and the Company’s other equity incentive programs.

 

(dd)
“Purchase Date” means one or more dates during an Offering selected by the Board on which Purchase
Rights will be exercised and on which purchases of shares of Common Stock will be carried out in accordance with such Offering.

 

(ee)
“Purchase Period” means a period of time specified within an Offering, generally beginning on the
Offering Date or on the first Trading Day following a Purchase Date, and ending on a Purchase Date. An Offering may consist of
one or more Purchase Periods.

 

(ff)
“Purchase Right” means an option to purchase shares of Common Stock granted pursuant to the Plan.

 

(gg)
“Related Corporation” means any “parent corporation” or “subsidiary corporation”
of the Company whether now or subsequently established, as those terms are defined in Sections 424(e) and (f), respectively, of
the Code.

 

(hh)
“Securities Act” means the U.S. Securities Act of 1933, as amended.

 

(ii)
“Tax-Related Items” means any income tax, social insurance, payroll tax, fringe benefit tax, payment
on account or other tax-related items arising in relation to a Participant’s participation in the Plan and legally applicable
to a Participant.

 

(jj)
“Trading Day” means any day on which the exchange(s) or market(s) on which shares of Common Stock
are listed, including but not limited to the NYSE, NYSE American, Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq
Capital Market or any successors thereto, is open for trading.Exhibit 4.1

 

 FORM OF CLASS A COMMON STOCK
PURCHASE WARRANT

 

	Warrant Shares: [          ] 	Original Issuance Date: [          ], 2019

 

Initial Exercise Date: [          ], 2020

 

THIS CLASS A COMMON
STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, __________ or its assigns (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after the Initial Exercise Date and on or prior to 5:00 p.m. (New York City time) on [ ], 2024 (the “Termination Date”)
but not thereafter, to subscribe for and purchase from HYLETE, Inc., a Delaware corporation (the “Company”), up to
[ ] shares (as subject to adjustment hereunder, the “Warrant Shares”) of Class A Common Stock, par value $0.001 per
share (“Common Stock”). The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise
Price, as defined in Section 2(a). If this Warrant is not exercised on or before the Termination Date it shall become void, and
all rights hereunder shall cease at the close of business on the Termination Date. For the avoidance of doubt, this Warrant will
be exercisable at any time, and from time to time, in whole or in part, commencing one year from the
Effective Date (as defined the Agreement), which period shall not extend further than five (5) years from the Effective Date in
compliance with FINRA Rule 5110(f)(2)(G)(i).

 

Section
1.               
Definitions. Capitalized terms used and not otherwise defined herein shall
have the meanings set forth in that certain Underwriting Agreement (the “Agreement”), dated [ ], 2019, among the Company
and the Holder.

 

Section
2.               
Exercise.

 

(a)                
Exercise Price. The exercise price per share of Common Stock
under this Warrant shall be $[ ] (which is 110% of the offering price per unit in the offering contemplated by the Agreement) (the
“Exercise Price”). 

 

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

 

 

 

 

    	 	1	 

     

    

 

(c)                
Cashless Exercise. This Warrant may also be exercised, in whole or in part, at such time by means
of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient
obtained by dividing [(A-B) (X)] by (A), where:

 

		(A) =	as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable
Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(b) hereof on a day that
is not a Trading Day or (2) both executed and delivered pursuant to Section 2(b) hereof on a Trading Day prior to the opening of
“regular trading hours” (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws)
on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of
the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg
L.P. as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed
during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two
(2) hours after the close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the
VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of
Exercise is both executed and delivered pursuant to Section 2(b) hereof after the close of “regular trading hours”
on such Trading Day;

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

    	 	2	 

     

    

 

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

 

(d)                
Mechanics of Exercise.

 

(i)                 
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant
Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s
or its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system
(“DWAC”) if the Company is then a participant in such system and either (A) there is an effective registration statement
permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder, or (B) if there is no effective registration
statement and the Warrant is exercised via cashless exercise at a time when such Warrant Shares would be eligible for resale under
Rule 144 by a non-affiliate of the Company, such Warrant Shares are delivered to Holder’s broker, and the Company receives
a statement from Holder’s broker that it has received instructions to sell the Warrant Shares or that it would take responsibility
that the sales of the Warrant Shares will only be made if the Warrant Shares are eligible to be sold under Rule 144, and otherwise
by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee,
for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder
in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the
Notice of Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number
of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date,
the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate
purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective
of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of
a cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising
the Standard Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to deliver to
the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the
Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based
on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading
Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery
Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to use commercially reasonable
efforts to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and
exercisable. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number
of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery
of the Notice of Exercise.

 

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

 

 

 

 

    	 	3	 

     

    

 

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

 

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

 

(v)                
Valid Issuance. All shares of Common Stock issued by the Company through
the Transfer Agent upon the proper exercise of this Warrant in conformity with this Warrant shall be validly issued, fully paid
and non-assessable.

 

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

 

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

 

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

 

 

 

 

    	 	4	 

     

    

 

(e)                
Holder’s Exercise Limitations. The Company shall not effect
any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section
2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of
Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder
or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)), would beneficially own in excess
of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common
Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common
Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number
of shares of Common Stock which would be issuable upon (i) exercise of the remaining, non-exercised portion of this Warrant beneficially
owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or 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 or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial
ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder,
it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance
with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance
therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant
is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and
of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice
of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other
securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable,
in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the
accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined
in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this
Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding
shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission,
as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or
the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder,
the Company shall within one Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then
outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion
or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since
the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial
Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99%
of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock
upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase
in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the
Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with
the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the
intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly
give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

(g)                
 Disputes. In the case of a dispute as to the
determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the
Holder the number of Warrant Shares that are not disputed.

 

 

 

 

    	 	5	 

     

    

 

Section
3.               
Certain Adjustments.

 

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

 

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

 

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

 

 

 

 

    	 	6	 

     

    

 

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

 

 

 

    	 	7	 

     

    

 

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

 

(f)                 
Notice to Holder.

 

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

 

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

 

Section
4.               
Transfer of Warrant.

 

(a)                
Transferability. Pursuant to FINRA Rule 5110(g)(1) and the Agreement,
neither this Warrant nor any Warrant Shares issued upon exercise of this Warrant shall be sold, transferred, assigned, pledged
or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective
economic disposition of the securities by any person for a period of one hundred eighty (180) days immediately following the date
of effectiveness or commencement of sales of the offering pursuant to which this Warrant is being issued, except the transfer of
any security:

 

 

 

 

    	 	8	 

     

    

 

		(i)	by operation of law or by reason of reorganization of the Company;

 

		(ii)	to any FINRA member firm participating in the offering and the officers and partners thereof, if
all securities so transferred remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period;

 

		(iii)	if the aggregate amount of securities of the Company held by the Holder or related person do not
exceed 1% of the securities being offered;

 

		(iv)	that is beneficially owned on a pro-rata basis by all equity owners of an investment fund, provided
that no participating member manages or otherwise directs investments by the fund, and participating members in the aggregate do
not own more than 10% of the equity in the fund; or

 

		(v)	the exercise or conversion of any security, if all securities received remain subject to the lock-up
restriction in this Section 4(a) for the remainder of the time period.

 

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

 

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

 

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

 

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

 

 

 

 

    	 	9	 

     

    

 

Section
5.               
Registration Rights.

 

(a)                
Demand Registration.

 

(i)                 
Grant of Right. If at any time prior to the Termination Date, the Registration
Statement is no longer effective, the Company, upon written demand (“Initial Demand Notice”) of the Holder(s)
of at least 51% of the Warrant Shares (“Majority Holders”), agrees to register (the “Demand Registration”)
under the Securities Act all or any portion of the Warrant Shares requested by the Majority Holders in the Initial Demand Notice
(the “Registrable Securities”). On each occasion, the Company will file a registration statement covering the
Registrable Securities within 60 days after receipt of the Initial Demand Notice and to have such registration statement declared
effective as soon as possible thereafter. The demand for registration may be made at any time during which the Majority Holders
hold any of the Warrant Shares. Notwithstanding the foregoing, the Company shall not be required to effect a registration pursuant
to this Section 5 a): (A) with respect to securities that are not Registrable Securities; (B) during any Scheduled Black-Out Period;
(C) if the aggregate offering price of the Registrable Securities to be offered is less than $250,000, unless the Registrable Securities
to be offered constitute all of the then-outstanding Registrable Securities; or (D) within 180 days after the effective date of
a prior registration in respect of the Common Stock, including a Demand Registration (or, in the event that Holders were prevented
from including any Registrable Securities requested to be included in a Piggyback Registration pursuant to Section 5(b), within
90 days after the effective date of such prior registration in respect of the Common Stock. For purposes of this Agreement, a “Scheduled
Black-Out Period” shall means the periods from and including the day that is ten days prior to the last day of a fiscal
quarter of the Company to and including the day that is two days after the day on which the Company publicly releases its earnings
for such fiscal quarter. The Initial Demand Notice shall specify the number of shares of Registrable Securities proposed to be
sold and the intended method(s) of distribution thereof. The Company will notify all holders of the Warrant Shares of the demand
within ten days from the date of the receipt of any such Initial Demand Notice. Each holder of the Warrant Shares who wishes to
include all or a portion of such holder’s Warrant Shares in the Demand Registration (each such holder including shares of
Registrable Securities in such registration, a “Demanding Holder”) shall so notify the Company within 15 days
after the receipt by the holder of the notice from the Company. Upon any such request, the Demanding Holders shall be entitled
to have their Warrant Shares included in the Demand Registration.

 

(ii)               
Effective Registration. A registration will not count as a Demand Registration
until the registration statement filed with the Commission with respect to such Demand Registration has been declared effective
and the Company has complied with all of its obligations under this Warrant with respect thereto.

 

(iii)             
Terms. The Company shall bear all fees and expenses attendant to registering
the Registrable Securities, including the expenses of any legal counsel selected by the Company to represent it in connection with
the sale of the Registrable Securities. The Company agrees to qualify or register the Registrable Securities in such states as
are reasonably requested by the Majority Holder(s); provided, however, that in no event shall the Company be required to register
the Registrable Securities in a state in which such registration would cause (i) the Company to be obligated to qualify to do business
in such state, or would subject the Company to taxation as a foreign corporation doing business in such jurisdiction or (ii) the
principal shareholders of the Company to be obligated to escrow their shares of common stock of the Company. The Company shall
cause any registration statement filed pursuant to the demand rights granted under Section 5(a)(iii) to remain effective until
all Registrable Securities are sold.

 

(iv)              
Notwithstanding the foregoing, if the Board of Directors of the Company determines in its good faith judgment that
the filing of a registration statement in connection with a Demand Registration (i) would be seriously detrimental to the Company
in that such registration would interfere with a material corporate transaction or (ii) would require the disclosure of material
non-public information concerning the Company that at the time is not, in the good faith judgment of the Board of Directors, in
the best interests of the Company to disclose and is not, in the opinion of the Company’s counsel, otherwise required to
be disclosed, then the Company shall have the right to defer such filing for the period during which such registration would be
seriously detrimental under clause (i) or would require such disclosure under clause (ii); provided, however, that (x) the Company
may not defer such filing for a period of more than 90 days after receipt of any demand by the Holders and (y) the Company shall
not exercise its right to defer a Demand Registration more than once in any 12-month period. The Company shall give written notice
of its determination to the Holders to defer the filing and of the fact that the purpose for such deferral no longer exists, in
each case, promptly after the occurrence thereof.

 

 

 

 

    	 	10	 

     

    

 

(b)                
Piggy-Back Registration.

 

(i)                 
Piggy-Back Rights. If at any time during the three year period after the
Effective Date, and the Registration Statement is no longer effective, the Company proposes to file a registration statement under
the Securities Act with respect to an offering of equity securities, or securities or other obligations exercisable or exchangeable
for, or convertible into, equity securities, by the Company for its own account or for shareholders of the Company for their account
(or by the Company and by shareholders of the Company including, without limitation, pursuant to Section 5(a)), other than a registration
statement (i) filed in connection with any employee share option or other benefit plan, (ii) for an exchange offer or offering
of securities solely to the Company’s existing shareholders, or (iii) for a dividend reinvestment plan, then the Company
shall (x) give written notice of such proposed filing to the holders of Registrable Securities as soon as practicable but in no
event less than ten days before the anticipated filing date, which notice shall describe the amount and type of securities to be
included in such offering, the intended method(s) of distribution, and the name of the proposed managing underwriter or underwriters,
if any, of the offering, and (y) offer to the holders of Registrable Securities in such notice the opportunity to register the
sale of such number of Warrant Shares held by such holder (the “Piggy-Back Registrable Securities”), as such
holders may request in writing within five days following receipt of such notice (a “Piggy-Back Registration”).
The Company shall cause such Piggy-Back Registrable Securities to be included in such registration and shall use its commercially
reasonable efforts to cause the managing underwriter or underwriters of a proposed underwritten offering to permit the Piggy-Back
Registrable Securities requested to be included in a Piggy-Back Registration on the same terms and conditions as any similar securities
of the Company and to permit the sale or other disposition of such Piggy-Back Registrable Securities in accordance with the intended
method(s) of distribution thereof. All holders of Piggy-Back Registrable Securities proposing to distribute their securities through
a Piggy-Back Registration that involves an underwriter or underwriters shall enter into an underwriting agreement in customary
form with the underwriter or underwriters selected for such Piggy-Back Registration.

 

(ii)               
Reduction of Offering. If the managing underwriter or underwriters for a
Piggy-Back Registration that is to be an underwritten offering advises the Company and the holders of Registrable Securities in
writing that the dollar amount or number of shares of Common Stock which the Company desires to sell, taken together with Common
Stock, if any, as to which registration has been requested pursuant to written contractual arrangements with persons other than
the holders of Piggy-Back Registrable Securities hereunder, the Piggy-Back Registrable Securities as to which registration has
been requested under this Section 5(b), and the Common Stock, if any, as to which registration has been requested pursuant to the
written contractual piggy-back registration rights of other shareholders of the Company, exceeds the maximum dollar amount or maximum
number of shares that can be sold in such offering without adversely affecting the proposed offering price, the timing, the distribution
method, or the probability of success of such offering (such maximum dollar amount or maximum number of shares, as applicable,
the “Maximum Number of Shares”), then the Company shall include in any such registration:

 

(x)       If
the registration is undertaken for the Company’s account: (A) first, the Common Stock or other securities that the Company
desires to sell that can be sold without exceeding the Maximum Number of Shares; and (B) second, subject to the requirements of
registration rights granted by the Company prior to the date hereof, to the extent that the Maximum Number of Shares has not been
reached under the foregoing clause (A), up to the amount of shares of Common Stock or other securities that can be sold without
exceeding the Maximum Number of Shares, on a pro rata basis, from (i) Piggy-Back Registrable Securities as to which registration
has been requested and (ii) the Common Stock or other securities for the account of other persons that the Company is obligated
to register pursuant to written contractual piggy-back registration rights with such persons;

 

(y)       If
the registration is a Demand Registration undertaken at the demand of holders of Registrable Securities, subject to the requirements
of registration rights granted by the Company prior to the date hereof, (A) first, the Common Stock or other securities for the
account of the demanding persons that can be sold without exceeding the Maximum Number of Shares; (B) second, to the extent that
the Maximum Number of Shares has not been reached under the foregoing clause (A), the Common Stock or other securities comprised
of Piggy-Back Registrable Securities, pro rata, as to which registration has been requested pursuant to the terms hereof that can
be sold without exceeding the Maximum Number of Shares; and (C) third, to the extent that the Maximum Number of Shares has not
been reached under the foregoing clauses (A) and (B), the Common Stock or other securities for the account of other persons that
the Company is obligated to register pursuant to written contractual arrangements with such persons, that can be sold without exceeding
the Maximum Number of Shares.

 

 

 

 

    	 	11	 

     

    

 

(iii)             
Withdrawal. Any holder of Piggy-Back Registrable Securities may elect to
withdraw such holder’s request for inclusion of such Piggy-Back Registrable Securities in any Piggy-Back Registration by
giving written notice to the Company of such request to withdraw prior to the effectiveness of the registration statement. The
Company (whether on its own determination or as the result of a withdrawal by persons making a demand pursuant to written contractual
obligations) may withdraw a registration statement at any time prior to the effectiveness of the registration statement. Notwithstanding
any such withdrawal, the Company shall pay all expenses incurred by the holders of Piggy-Back Registrable Securities in connection
with such Piggy-Back Registration as provided in Section 5(b)(iv).

 

(iv)              
Terms. The Company shall bear all fees and expenses attendant to registering
the Piggy-Back Registrable Securities, including the expenses of any legal counsel selected by the Holders to represent them in
connection with the sale of the Piggy-Back Registrable Securities but the Holders shall pay any and all underwriting commissions
related to the Piggy-Back Registrable Securities. In the event of such a proposed registration, the Company shall furnish the then
Holders of outstanding Piggy-Back Registrable Securities with not less than fifteen days written notice prior to the proposed date
of filing of such registration statement. Such notice to the Holders shall continue to be given for each applicable registration
statement filed (during the period in which the Warrant is exercisable) by the Company until such time as all of the Piggy-Back
Registrable Securities have been registered and sold. The Holders of the Piggy-Back Registrable Securities shall exercise the “piggy-back”
rights provided for herein by giving written notice, within ten days of the receipt of the Company’s notice of its intention
to file a registration statement. The Company shall cause any registration statement filed pursuant to the above “piggyback”
rights to remain effective for at least nine (9) months from the date that the Holders of the Piggy-Back Registrable Securities
are first given the opportunity to sell all of such securities.

 

(c)                
General Terms. These additional terms shall relate to registration
under Sections 5(a) above:

 

(i)                 
Indemnification.

 

(w)       The
Company shall, to the fullest extent permitted by applicable law, indemnify the Holder(s) of the Registrable Securities to be sold
pursuant to any registration statement hereunder and each person, if any, who controls such Holders within the meaning of Section
15 of the Act or Section 20(a) of the Exchange Act against all loss, claim, damage, expense or liability (including all reasonable
attorneys’ fees and other expenses reasonably incurred in investigating, preparing or defending against litigation, commenced
or threatened, or any claim whatsoever whether arising out of any action between the underwriter and the Company or between the
underwriter and any third party or otherwise) to which any of them may become subject under the Act, the Exchange Act or otherwise,
arising from such registration statement; provided, however, that, with respect to any Holder of Registrable Securities,
this indemnity shall not apply to any loss, liability, claim, damage or expense to the extent arising out of an untrue statement
or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished
to the Company by such Holder expressly for use in the registration statement (or any amendment thereto), or any preliminary prospectus
or the prospectus (or any amendment or supplement thereto).

 

(x)       The
Holder(s) of the Registrable Securities to be sold pursuant to such registration statement, and their successors and assigns, shall
severally, and not jointly, indemnify the Company, its officers and directors and each person, if any, who controls the Company
within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, against all loss, claim, damage, expense or liability
(including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or defending
against any claim whatsoever) to which they may become subject under the Act, the Exchange Act or otherwise, arising from information
furnished by or on behalf of such Holders, or their successors or assigns, in writing, for specific inclusion in such registration
statement(or any amendment thereto), or any preliminary prospectus or the prospectus (or any amendment or supplement thereto).

 

 

 

    	 	12	 

     

    

 

(y)       Each
indemnified party shall give prompt notice to each indemnifying party of any action commenced against it in respect of which indemnity
may be sought hereunder, but failure to so notify an indemnifying party shall not relieve the indemnifying party from any liability
it may have under this Agreement, except to the extent that the indemnifying party is prejudiced thereby. If it so elects, after
receipt of such notice, an indemnifying party, jointly with any other indemnifying parties receiving such notice, may assume the
defense of such action with counsel chosen by it; provided, however, that the indemnified party shall be entitled
to participate in (but not control) the defense of such action with counsel chosen by it, the reasonable fees and expenses of which
shall be paid by such indemnified party, unless a conflict would arise if one counsel were to represent both the indemnified party
and the indemnifying party, in which case the reasonable fees and expenses of counsel to the indemnified party shall be paid by
the indemnifying party or parties. In no event shall the indemnifying party or parties be liable for a settlement of an action
with respect to which they have assumed the defense if such settlement is effected without the written consent of such indemnifying
party, or for the reasonable fees and expenses of more than one counsel for (i) the Company, its officers, directors and controlling
persons as a group, and (ii) the selling Holders and their controlling persons as a group, in each case, in connection with any
one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances;
provided, however, that if, in the reasonable judgment of an indemnified party, a conflict of interest may exist
between such indemnified party and the Company or any other of such indemnified parties with respect to such claim, the indemnifying
party shall be obligated to pay the reasonable fees and expenses of such additional counsel.

 

(z)       If
the indemnification provided for in or pursuant to Section 5(b)(i) is due in accordance with the terms hereof, but held by a court
of competent jurisdiction to be unavailable or unenforceable in respect of any losses, claims, damages, liabilities or expenses
referred to therein, then each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall contribute
to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in
such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified
party on the other in connection with the statements or omissions which result in such losses, claims, damages, liabilities or
expenses as well as any other relevant equitable considerations. The relative fault of the indemnifying party on the one hand and
of the indemnified party on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party, and by such party’s relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

 

(ii)               
Documents Delivered to Holders. The Company shall furnish the initial Holder
a signed counterpart, addressed to the initial Holder, of (i) an opinion of counsel to the Company, dated the effective date of
such registration statement (or, if such registration includes an underwritten public offering, an opinion dated the date of the
closing under any underwriting agreement related thereto), and (ii) if such registration statement is filed in connection of an
underwritten public offering, a “cold comfort” letter dated the effective date of such registration statement (or,
if such registration includes an underwritten public offering, a letter dated the date of the closing under the underwriting agreement)
signed by the independent public accountants who have issued a report on the Company’s financial statements included in such
registration statement, in each case covering substantially the same matters with respect to such registration statement (and the
prospectus included therein) and, in the case of such accountants’ letter, with respect to events subsequent to the date
of such financial statements, as are customarily covered in opinions of issuer’s counsel and in accountants’ letters
delivered to underwriters in underwritten public offerings of securities.

 

 

 

    	 	13	 

     

    

 

(iii)             
Supplemental Prospectus. Each Holder agrees, that upon receipt of any notice
from the Company of the happening of any event as a result of which the prospectus included in the registration statement, as then
in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary
to make the statements therein not misleading in light of the circumstances then existing, such Holder will immediately discontinue
disposition of Registrable Securities pursuant to the registration statement covering such Registrable Securities until such Holder’s
receipt of the copies of a supplemental or amended prospectus, and, if so desired by the Company, such Holder shall deliver to
the Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of such destruction) all copies,
other than permanent file copies then in such Holder’s possession, of the prospectus covering such Registrable Securities
current at the time of receipt of such notice. Immediately after discovering of such an event which causes the prospectus included
in the registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then
existing, the Company shall prepare and file, as soon as practicable, a supplement or amendment to the prospectus so that such
registration statement does not include any untrue statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing and distribute
such supplement or amendment to each Holder.

 

Section
6.               
Miscellaneous.

 

(a)                
No Rights as Stockholder Until Exercise. This Warrant does not
entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof
as set forth in Section 2(d)(i), except as expressly set forth in Section 3.

 

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

 

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

 

(d)                
Authorized Shares.

 

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

 

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

 

 

 

    	 	14	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(Signature Page Follows)

 

 

    	 	15	 

     

    

 

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

 

HYLETE, INC.

 

By:_____________________________

Ronald L. Wilson, II, President
and Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

(Signature Page to Underwriter’s
Warrant)

    	 	 	 

     

    

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

TO: HYLETE, INC.

 

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

 

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

 

	 	[  ]	in lawful money of the United States by wire transfer or cashier’s check drawn on a United States bank; or
	 	 	 
	 	[  ]	if permitted by the terms of the Warrant, the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

 

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

 

	 	 
	 	 
	The Warrant Shares shall be delivered to the following DWAC Account Number:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	[SIGNATURE OF HOLDER]	 
	 	 	 
	Name of Investing Entity:	 
	 	 	 
	 	 	 
	 	 
	Signature of Authorized Signatory of Investing Entity:	 
	 	 	 
	 	 	 
	 	 
	Name of Authorized Signatory:	 
	 	 	 
	 	 	 
	 	 
	Title of Authorized Signatory:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Date:	 	 

 

 

 

    	 	17	 

     

    

 

EXHIBIT B

 

ASSIGNMENT FORM

 

(To assign the attached Warrant, execute
this form and supply required information.

Do not use this form to exercise the Warrant.)

 

 

FOR VALUE RECEIVED,
[____] all of or [_______] shares of the attached Warrant and all rights evidenced thereby are hereby assigned to:

 

_________________________________________________,
whose address is

 

_______________________________________________________________

 

_______________________________________________________________

 

	 	Date: ______________, _______	 
	 	 	 
	Holder’s Signature: 	 	 
	 	 	 
	Holder’s Address: 	 	 
	 	 	 

 

NOTE: The signature to this Assignment
Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever.
Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority
to assign the foregoing Warrant.

 

 

 

 

 

 

 

 

 

 

    	 	18

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