Document:

Exhibit 10.3

 

INVESTMENT
AGREEMENT

 

This
Agreement is entered into this 5th day of May 2017 BETWEEN:

 

		(1)	REBEL
                                         GROUP INC. (CIK No. 0001532158) (“Rebel Group”), a company incorporated
                                         in the State of Florida and having its principal executive office at 7500A Beach Road,
                                         Unit 12-313, The Plaza, Singapore 199591;

 

		(2)	PURE
                                         HEART ENTERTAINMENT PTE LTD (RC No. 200007374H) (“Pure Heart”),
                                         a company incorporated in Singapore and having its registered address at 7500A Beach
                                         Road #12-313 The Plaza, Singapore 199591;

 

		(3)	LEONG
                                         KHIAN KIEE (NRIC No. S0170169Z) (“LKK”), of 65 Shelford Road #02-11
                                         Shelford Regency, Singapore 288455;

 

		(4)	TENG
                                         CHEE KEONG (NRIC NO.S7418771D) (“TCK”), of Apt Blk 4 Sago Lane
                                         #14-103 Singapore 050004.

 

WHEREAS:

 

		(A)	As
                                         at the date of this Agreement, Rebel Group has an issued and paid-up capital of US$315,715
                                         divided into 23,531,548 shares. LKK is a majority shareholder of Rebel Group.

 

		(B)	Pure
                                         Heart is a wholly-owned subsidiary of Rebel Group.

 

		(C)	TCK
                                         has agreed to invest in Rebel Group on the terms and subject to the conditions contained
                                         in this Agreement.

 

IT
IS HEREBY AGREED:

 

		1	Definitions

 

		1.1	In
                                         this Contract, words and expressions used shall have the meanings set out hereunder,
                                         or as defined in this Contract, unless the context otherwise requires:

 

“Agreement”
means this Contract;

 

“Board
of Directors” or “”Directors” means the directors for the time being of Rebel Group;

 

“Business
Day” means a day (other than Saturday, Sunday or public holidays in Singapore and/or the United States) in which banks
are open for general business in Singapore and the United States;

 

“Clause”
means clauses in this Contract;

 

“Completion
Date” means 12 May 2017 or such other date as may be agreed between the parties;

 

“Conversion
Amount” means the aggregate amount of the Loan, being US$300,000;

 

“Conversion
Date” shall have the meaning ascribed in Clause 7.4(i);

 

     

     

    

 

“Conversion
Notice” means a notice in writing issued by TCK to Rebel Group substantially in the form set out in Annex A;

 

“Conversion
Period” shall have the meaning ascribed in Clause 7.2;

 

“Conversion
Right” shall have the meaning ascribed in Clause 7.1;

 

“Conversion
Shares” means if the Conversion Right is exercised (a) in accordance with Clause 7.3(i), 600,000 new Shares or (b) in
accordance with Clause 7.3(ii), 500,000 new Shares, to be issued by Rebel Group upon the conversion of the Loan, such Shares to
be issued free from all claims, charges, liens and other Encumbrances and shall rank pari passu with the then existing
Shares in the capital of Rebel Group;

 

“Encumbrance”
means any mortgage, assignment of receivable, debenture, lien, hypothecation, charge, pledge, title retention, right to acquire,
security interest, option, pre-emptive or other similar right, right of first refusal, restriction, third-party right or interest,
any other encumbrance, condition or security interest whatsoever or any other type of preferential arrangement (including without
limitation, a title transfer or retention arrangement) having similar effect;

 

“Event
of Default” means any of the events described in Clause 12;

 

“Extended
Maturity Date” shall have the meaning in Clause 4.2;

 

“Loan”
shall have the meaning ascribed in Clause 2.1;

 

“Loan
Disbursement Date” means 5 May 2017 or such other date as may be agreed between the parties;

 

“Maturity
Date” shall have the meaning in Clause 4.1;

 

“Shares”
means ordinary shares issued and outstanding in the common stock of Rebel Group;

 

“Shareholders”
means the shareholders of Rebel Group;

 

“Subscription
Shares” means 1,400,000 new ordinary shares in the capital of Rebel Group;

 

“Subscription
Price” means US$0.50 for each Subscription Share;

 

“Tax”
or “Taxation” means any tax, levy, impost, duty or other charge or withholding of a similar nature (including
any penalty or interest payable in connection with any failures to pay or any delay in paying any of the same);

 

“S$”
and “Singapore Dollars” means the lawful currency of Singapore.

 

“USD”
and “US$” means the lawful currency of The United States of America.

 

“Year”
means one calendar year.

 

		1.2	The
                                         headings in this Agreement are inserted for convenience only and shall be ignored in
                                         construing this Agreement. Unless the context otherwise requires, words (including words
                                         defined herein) denoting the singular number only shall include the plural and vice
                                         versa. The words “written” and “in writing” include any means
                                         of visible reproduction. References to the “Annexes”, “Clauses”
                                         and “Recital” are to be construed as references to the annexes, clauses and
                                         recital of this Agreement respectively. Any reference to a sub clause or a paragraph
                                         is to a sub clause or paragraph of the clause in which such reference appears. Any reference
                                         to a time of the day is to be construed as Singapore time unless otherwise stated.

 

    	 	2	 

     

    

 

		1.3	References
                                         to a statute or statutory provision include that statute or provision as from time to
                                         time modified, re-enacted or consolidated whether before or after the date of this Agreement
                                         so far as such modification, re-enactment or consolidation applies or is capable of applying
                                         to any transactions entered into in accordance with this Agreement and (so far as liability
                                         thereunder may exist or can arise) shall include also any past statute or statutory provision
                                         (as from time to time modified, re-enacted or consolidated) which such statute or provision
                                         has directly or indirectly replaced. References to a statutory provision include any
                                         subordinate legislation made from time to time under that provision.

 

		2	THE
                                         LOAN

 

		2.1	TCK
                                         has agreed to grant to Rebel Group a convertible loan of in the aggregate principal amount
                                         of United States Dollars US$300,000 (the “Loan”) subject to
                                         the terms of this Agreement.

 

		2.2	Unless
                                         otherwise notified by Rebel Group in writing, the Loan shall be disbursed by TCK no later
                                         than the Loan Disbursement Date. The Loan shall be disbursed in immediately available
                                         funds to the following account of Rebel Group

 

	 	A/C
    Name	:	Pure
    Heart Entertainment Pte Ltd
	 	A/C
    Number (USD A/C)	:	392
    901 126 9
	 	(S$
    A/C)	:	392
    303 860 2
	 	Bank
    Name	:	United
    Overseas Bank Limited (Jalan Sultan Branch)
	 	Bank
    Address	:	200
    Jalan Sultan #01-06 Textile Centre, Singapore 199018
	 	SWIFT
    Address	:	UOVBSGSG

 

		3	USE
                                         OF PROCEEDS

 

Rebel
Group shall utilise the Loan paid by TCK for Mixed Martial Arts event operations in China.

 

		4	REPAYMENT

 

		4.1	Rebel
                                         Group shall repay the principal amount of the Loan (to the extent actually received by
                                         Rebel Group in accordance with this Agreement and to the extent that it has not been
                                         converted pursuant to Clause 7 (Conversion) below) within 7 Business Days immediately
                                         following 4 May 2018 (the “Maturity Date”).

 

		4.2	TCK
                                         shall at his sole and absolute discretion have the option to extend the term of the Loan
                                         from the Maturity Date to 4 May 2019 (the “Extended Maturity Date”).

 

		5	INTEREST

 

		5.1	Subject
                                         to Clause 5.2 below, Rebel Group shall pay interest on any outstanding portion of the
                                         Loan at the rate of ten percent. (10%) per annum until the date on which the Loan is
                                         fully repaid or converted into Conversion Shares. For the avoidance of doubt, interest
                                         of United States Dollars SevenThousand Five Hundred (US$7,500) is payable every quarter
                                         (on 4th August 2017, 4th November 2017, 4th February
                                         2018 and 4th May 2018 and if the term of the Loan is extended to the Extended
                                         Maturity Date, on 4th August 2018, 4th November 2018, 4th
                                         February 2019 and 4th May 2019).

 

    	 	3	 

     

    

 

		5.2	If
                                         any sum becomes due for payment under or pursuant to this Agreement on a day which is
                                         not a Business Day, full payment shall be made on the next succeeding Business Day.

 

		6	GUARANTEE
                                         AND INDEMNITY

 

		6.1	LKK
                                         irrevocably:

 

		(i)	guarantees
                                         to TCK punctual payment by Rebel Group of all of Rebel Group’s obligations under
                                         this Agreement;

 

		(ii)	undertakes
                                         with TCK that whenever Rebel Group does not punctually pay any amount when due under
                                         or in connection with this Agreement, that LKK shall immediately on demand pay that amount
                                         as if he was the principal borrower in respect of that amount; and

 

		(iii)	agrees
                                         with TCK that if any obligation guaranteed or expressed to be guaranteed by him is or
                                         becomes unenforceable, invalid or illegal, he will, as an independent and primary obligation,
                                         indemnify TCK immediately on demand against any cost, loss or liability which TCK incurs
                                         as a result of Rebel Group not paying any amount which would, but for such unenforceability,
                                         invalidity or illegality, have been payable by Rebel Group under this Agreement on the
                                         date when it would have been due. The amount payable by LKK under this indemnity will
                                         not exceed the amount he would have to pay under this Clause 6 if the amount claimed
                                         had been recoverable on the basis of a guarantee.

 

		6.2	This
                                         guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable
                                         by Rebel Group under this Agreement, regardless of any intermediate payment or discharge
                                         in whole or in part.

 

		6.3	If
                                         any discharge, release or arrangement (whether in respect of the obligations of Rebel
                                         Group or any security for those obligations or otherwise) is made by TCK in whole or
                                         in part on the basis of any payment, security or other disposition which is avoided or
                                         must be restored in insolvency, liquidation, administration or otherwise, without limitation,
                                         then the liability of LKK under this Clause 6 will continue or be reinstated as if such
                                         discharge, release or arrangement had not occurred.

 

		6.4	The
                                         obligations of LKK under this Clause 6 will not be affected by an act, omission, matter
                                         or thing which, but for this Clause 6, would reduce, release or prejudice any of its
                                         obligations under this Clause 6 (without limitation and whether or not known to it or
                                         TCK) including:

 

		(i)	any
                                         time, waiver or consent granted to, or composition with Rebel Group, LKK or any other
                                         person;

 

		(ii)	the
                                         release of Rebel Group, LKK or any other person under the terms of any composition or
                                         arrangement with any creditor of Rebel Group, LKK or any other person;

 

		(iii)	the
                                         taking, variation, compromise, exchange, renewal or release of, or refusal or neglect
                                         to perfect, take up or enforce, any rights against, or security over assets of Rebel
                                         Group, LKK or any other person, any non-execution of this Agreement by Rebel Group, LKK
                                         or any other person, or any non-presentation or non-observance of any formality or other
                                         requirement in respect of any instrument or any failure to realise the full value of
                                         any security;

 

    	 	4	 

     

    

 

		(iv)	any
                                         incapacity or lack of power, authority or legal personality of or dissolution or change
                                         in the members or status of Rebel Group, LKK or any other person;

 

		(v)	any
                                         amendment, novation, supplement, extension, restatement (however fundamental and whether
                                         or not more onerous) or replacement of this Agreement or any other document or security
                                         including any change in the purpose of, any extension of or increase in any loan or the
                                         addition of any new loans under any agreement or other document or security;

 

		(vi)	any
                                         unenforceability, illegality or invalidity of any obligation of any person under this
                                         Agreement or any other document or security;

 

		(vii)	any
                                         insolvency or similar proceedings.

 

		(viii)	any
                                         postponement, discharge, reduction, non-provability or other similar circumstance affecting
                                         any obligation of any Party or other person under this Agreement resulting from any insolvency,
                                         liquidation or dissolution proceedings or from any law, regulation or order;

 

		(ix)	anything
                                         done or not done by TCK in exercising its rights under this Agreement;

 

		(x)	TCK
                                         obtaining a judgement against Rebel Group in any court for performance of any obligation
                                         under this Agreement;

 

		(xi)	TCK
                                         agreeing to Rebel Group making an assignment for the benefit of Rebel Group’s creditors
                                         or any arrangement with creditors under insolvency laws; or

 

		(xii)	any
                                         arrangement made between TCK and Rebel Group with or without the consent of LKK.

 

		6.5	LKK
                                         waives any right he may have of first requiring Rebel Group (or any trustee or agent
                                         on its behalf) to proceed against or enforce any other rights or security or claim payment
                                         from any person before claiming from LKK under this Clause 6. This waiver applies irrespective
                                         of any law or any provision of this Agreement to the contrary.

 

		6.6	The
                                         guarantee under this Clause 6 is in addition to and is not in any way prejudiced by any
                                         other guarantee or security now or subsequently held by TCK.

 

		7	CONVERSION

 

		7.1	TCK
                                         shall be entitled to convert the Loan into Conversion Shares on the terms set out below
                                         (the “Conversion Right”).

 

		7.2	Subject
                                         to Clause 7.1, the Conversion Right can be exercised at any time for the period commencing
                                         on the date hereof and ending on either of (a) 14 days after the Maturity Date or (b)
                                         14 days after the Extended Maturity Date (if the repayment of the Loan is extended in
                                         accordance with Clause 4 above) (the “Conversion Period”), in full
                                         and not in part, by TCK serving a Conversion Notice on Rebel Group. A Conversion Notice,
                                         once received by Rebel Group, shall be irrevocable.

 

		7.3	For
                                         the purposes of Clauses 7.1 and 7.2, the Conversion Shares shall be calculated as follows:

 

		(i)	in
                                         the event that the Conversion Right is exercised within 7 Business Days immediately following
                                         the Maturity Date, it shall result in TCK being issued the Conversion Shares based on
                                         the share price of USD0.50 per share.

 

    	 	5	 

     

    

 

		(ii)	in
                                         the event that the Conversion Right is exercised after the Maturity Date but within 7
                                         Business Days immediately following the Extended Maturity Date, it shall result in TCK
                                         being issued the Conversion Shares based on the share price of USD0.60 per Share.

 

		7.4	Upon
                                         receipt by Rebel Group of the Conversion Notice and its enclosures, in each case duly
                                         executed by TCK:

 

		(i)	Rebel
                                         Group shall allot and issue, on or prior to the date falling 10 Business Days after the
                                         date of the Conversion Notice (the “Conversion Date”), in favour of
                                         TCK the Conversion Shares; and

 

		(ii)	TCK
                                         shall be deemed to have applied and subscribed for the Conversion Shares at a total consideration
                                         equal to the principal sum of the Loan, and the Loan shall be deemed to be fully discharged
                                         and released simultaneously upon the allotment of the Conversion Shares to TCK.

 

		7.5	On
                                         the Conversion Date, Rebel Group shall deliver to TCK the following:

 

		(i)	the
                                         definitive share certificate in respect of the Conversion Shares (credited as fully paid-up);
                                         and

 

		(ii)	a
                                         certified true copy of the updated register of members of Rebel Group with TCK’s
                                         name entered thereon as a member of Rebel Group in respect of the Conversion Shares.

 

		8	SUBSCRIPTION,
                                         ISSUE AND ALLOTMENT OF SHARES TO TCK

 

		8.1	Subject
                                         to the terms and conditions of this Agreement, on the Completion Date, TCK, relying on
                                         the representations, warranties, undertaking and indemity by Rebel Group, Pure Heart
                                         and LKK contained in this Agreement shall subscribe in cash for, and Rebel Group shall
                                         issue and allot the Subscription Shares based on the share price of USD0.50 to TCK at
                                         the aggregate Subscription Price of US$700,000.

 

		8.2	The
                                         Subscription Shares shall be allotted and issued by Rebel Group free from all claims,
                                         charges, liens, options, pledges and other encumbrances on the Completion Date.

 

		9	CONDITIONS
                                         PRECEDENT

 

		9.1	The
                                         issue and allotment of the Subscription Shares is conditional upon the following conditions
                                         (“Conditions”) having been fulfilled (or waived):

 

		(i)	the
                                         approval of the board of directors (and if required, the shareholders) of each Party
                                         for the entering into of this Agreement and other related transactions as may be required
                                         in relation thereto;

 

		(ii)	the
                                         clearance by OTCQX and/or OTCQB if required, of the transactions contemplated in this
                                         Agreement;

 

    	 	6	 

     

    

 

		(iii)	all
                                         applicable governmental or regulatory approvals being obtained, including but not limited
                                         to any OTCQX or OTCQB requirements, for the issue and allotment of the Subscription Shares.

 

		9.2	If
                                         at any time Rebel Group or LKK shall become aware of a fact or circumstance which might
                                         prevent any of the Conditions from being satisfied, it shall immediately inform TCK.

 

		9.3	A
                                         Party shall notify the other Party promptly in writing upon either:

 

		(i)	waiving
                                         a Condition; or

 

		(ii)	being
                                         satisfied that a Condition has been fulfilled.

 

		10	PAYMENT
                                         AND COMPLETION

 

		10.1	Completion
                                         for the subscription, allotment and issuance of the Subscription Shares shall take place
                                         at such venue as the Parties may agree on the Completion Date.
	 	 	 
		10.2	On
                                         the Completion Date, Rebel Group shall deliver to TCK:

 

		(i)	a
                                         certified true copy of the shareholders’ resolution (a) approving the allotment
                                         and issue of the Subscription Shares to TCK and authorising the Board of Directors to
                                         allot and issue the Subscription Shares to TCK and (b) appointing TCK as an independent
                                         non-executive director of Rebel Group;

 

		(ii)	a
                                         certified true copy of the resolutions of the Board of Directors approving the allotment
                                         and issue of the Subscription Shares to TCK;

 

		(iii)	the
duly issued share certificates in respect of the Subscription Shares;

 

		(iv)	a
certified true copy of the constitutional documents of Rebel Group;

 

		10.3	Rebel
                                         Group shall duly file with the Florida corporate regulatory authority and/or any other
                                         appropriate governmental authority all relevant documents, returns, notifications and
                                         instruments in relation to the subscription for, allotment and issue of the Subscription
                                         Shares as soon as possible, and in any event within the time period stipulated in any
                                         relevant U.S. legislation or regulations.

 

		10.4	On
                                         the Completion Date, TCK shall pay to Rebel Group the aggregate Subscription Price for
                                         the Subscription Shares, such payment to be made by way of cashier’s order or such
                                         other form of payment as Rebel Group may deem to be acceptable.

 

    	 	7	 

     

    

 

		11	REPRESENTATIONS,
                                         WARRANTIES AND UNDERTAKINGS

 

		11.1	Each
                                         of Rebel Group, Pure Heart and LKK jointly and severally represent and warrant to TCK
                                         that as at the date hereof:

 

		(i)	It/he
                                         has the legal right and full power and authority to execute and deliver this Agreement
                                         and perform the transactions contemplated hereby, and all necessary actions have been
                                         taken to authorise the execution, delivery and performance of this Agreement and all
                                         other documents to be executed and delivered by Rebel Group in connection therewith;

 

		(ii)	this
                                         Agreement constitutes its/his valid and legally binding obligations, enforceable against
                                         it/him in accordance with its/his terms;

 

		(iii)	the
                                         execution and delivery of, and the performance by it of its obligations under this Agreement
                                         do not and will not:

 

		a)	infringe,
                                         or constitute a default under, any instrument, contract, document or agreement to which
                                         it/he is a party or by which it/he or its/his assets are bound; or

 

		b)	result
                                         in a breach of any law, rule, regulation, ordinance, order, judgment or decree of or
                                         undertaking to any court, government body, statutory authority or regulatory, administrative
                                         or supervisory body to which it/he is a party or by which it/he or its/his assets are
                                         bound, whether in Singapore, United States or elsewhere; and

 

		(iv)	it/he
                                         is not insolvent or unable to pay its/his debts (including subordinated or contingent
                                         debts), nor will it/he become so in consequence of entering into this Agreement and/or
                                         performing any transaction contemplated by this Agreement.

 

		11.2	Each
                                         of Rebel Group, Pure Heart and LKK further jointly and severally represent, warrant and
                                         undertake to TCK that:

 

		(i)	the
                                         Conversion Shares to be allotted and issued pursuant to the exercise of the Conversion
                                         Right are validly authorised but unissued Shares which Rebel Group shall, on the exercise
                                         of the Conversion Right by TCK, have full authority to allot and issue and are not subject
                                         to any pre-emptive or other similar rights of Shareholders (and if so subject, such rights
                                         shall have been duly waived by all the Shareholders for the time being), and when allotted,
                                         issued and paid up pursuant to the terms of this Agreement, will be validly issued and
                                         fully paid Shares which will not be subject to further call;

 

		(ii)	the
                                         Conversion Shares shall be issued free from all Encumbrances and will be freely transferable
                                         (save to the extent restricted in Rebel Group’s constitutional documents and applicable
                                         laws and regulations, if any) and shall rank pari passu in all respects with all
                                         other Shares in issue at the time of the allotment of the Conversion Shares (save to
                                         the extent, if any, otherwise provided in Rebel Group’s constitutional documents
                                         and applicable laws and regulations);

 

		(iii)	all
                                         written information and documents provided by Rebel Group, its officers, representatives
                                         and/or its advisers (whether or not included in this Agreement) are when provided true
                                         and accurate in all material aspects and not misleading; and

 

		(iv)	from
                                         the date of this Agreement to the earlier of:

 

		(a)	the
                                         Maturity Date or Extended Maturity Date (as the case may be); and

 

		(b)	the
                                         allotment date of the Conversion Shares to TCK,

 

it/he
will promptly notify TCK in writing of any changes to the share capital structure of Rebel Group, and the issue or grant of any
option, right and/or convertible (whether exercisable now or in future and whether contingent or not) by Rebel Group to call for
the allotment, conversion, issue, sale or transfer of any of the Shares.

 

    	 	8	 

     

    

 

		11.3	Each
                                         of Rebel Group and LKK jointly and severally warrant that:

 

		(i)	Rebel
                                         Group is or will on Completion Date be entitled to or is otherwise able to allot and
                                         issue to TCK the Subscription Shares on the terms and conditions of this Agreement without
                                         the consent of any person;

 

		(ii)	that
                                         the Subscription Shares will on issue have been validly authorised, such Subscription
                                         Shares are not or will not be subject to any pre-emptive rights of any person, and when
                                         allotted and issued will be validly allotted and issued as preference shares which are
                                         free from all and any Encumbrance; and

 

		(iii)	no
                                         person has the right (whether exercisable now or in the future and whether contingent
                                         or not) to call for the allotment, issue, sale or transfer of any share or loan capital
                                         of Rebel Group under any option or other agreement (including conversion rights and rights
                                         of pre-emption).

 

		11.4	Save
                                         as disclosed to TCK in writing, Rebel Group hereby represents and warrants to TCK and
                                         his successors in title that as at the date of this Agreement and for each day up to
                                         and including the date of Completion, each of the representations and warranties set
                                         out in Annex B (“Warranties”) is true and accurate in all respects
                                         and there is no information the omission of which might make any of such representations
                                         and warranties misleading or inaccurate in any respect.

 

		11.5	Each
                                         of the Warranties shall be separate and independent and save as expressly provided shall
                                         not be limited by reference to any other Clause or anything in this Agreement or any
                                         other paragraph of Annex B. The Warranties given hereunder shall continue after the Completion
                                         Date and shall not in any respect be extinguished or qualified in any way affected except
                                         by a specific and duly authorised written waiver or release by TCK.

 

		11.6	If
                                         at Completion, it shall be found that any of the Warranties has not been carried out
                                         or complied with to the satisfaction of TCK or is otherwise untrue or misleading in any
                                         respect, TCK shall be entitled (in addition to and without prejudice to all other rights
                                         or remedies available to it and its successors in title including the right to claim
                                         damages) by notice in writing to the other Parties to terminate this Agreement and/or
                                         his obligation to subscribe for the Subscription Shares, but failure to exercise this
                                         right shall not constitute a waiver of any other rights of TCK or his successors in title
                                         arising out of any breach of a Warranty.

 

		11.7	Each
                                         of Rebel Group and LKK hereby jointly and severally covenants to TCK to indemnify and
                                         hold harmless TCK from and against any and all losses, damages, charges, costs and expenses
                                         of whatever nature which TCK may at any time and from time to time sustain, incur or
                                         suffer as a direct result of or arising out of a breach or breaches of the representations,
                                         warranties and undertakings contained in this Agreement.

 

    	 	9	 

     

    

 

		11.8	TCK
                                         represents and warrants to Rebel Group that as the date hereof:

 

		(i)	this
                                         Agreement has been duly executed and delivered by TCK and constitutes a valid and legally
                                         binding obligation of TCK, enforceable in accordance with its terms; and

 

		(ii)	he
                                         has full legal right and capacity to execute and deliver this Agreement and perform the
                                         transactions contemplated hereby.

 

		12	EVENTS
                                         OF DEFAULT

 

		12.1	Each
                                         of the following events or circumstances is an Event of Default:

 

		(i)	Rebel
                                         Group commits any material breach of its obligations under this Agreement or any representation
                                         or warranty given in this Agreement is false or inaccurate in any material respect, and,
                                         if remediable, fails to remedy such breach within 14 days from the service of written
                                         notice by TCK notifying such breach;

		(ii)	Rebel
                                         Group is adjudicated to be insolvent or if applicable, enters into a scheme of arrangement
                                         or composition with or assignment for the benefit of all or any class of creditors or
                                         any order is made by any competent court or other appropriate authority or any resolution
                                         is passed for the winding-up of Rebel Group or for the appointment of a judicial manager,
                                         liquidator or provisional liquidator, receiver or receiver and manager, trustee or similar
                                         officer of the whole or any part of the undertakings, assets, rights or revenue of Rebel
                                         Group;

 

		(iii)	any
                                         expropriation, attachment, sequestration, distress or execution which affects any asset
                                         or assets of Rebel Group is not discharged within one (1) month; or
	 	 	 

		(iv)	it
                                         is or becomes unlawful for Rebel Group to perform any of its obligations under this Agreement.

 

		12.2	On
                                         and at any time after the occurrence of an Event of Default TCK may, by notice to Rebel
                                         Group, declare that all or part of the Loan (to the extent actually received by Rebel
                                         Group in accordance with this Agreement and to the extent unconverted pursuant to the
                                         exercise of the Conversion Right) be immediately due and payable, whereupon they shall
                                         become immediately due and payable.

 

		13	CONFIDENTIALITY

 

		13.1	Each
                                         Party agrees to keep strictly confidential, and under no circumstances disclose to any
                                         person who is not a Party, any confidential information and discussions relating to,
                                         arising from or in connection with this Agreement unless such disclosure is expressly
                                         permitted by the prior written consent of the other Parties, which shall not be unreasonably
                                         withheld.

 

		13.2	The
                                         obligations in this Clause 10 shall not apply to:

 

		(i)	any
                                         information obtained which becomes generally known to the public, other than by reason
                                         of any willful or negligent act or omission of the disclosing Party or any of its agents,
                                         advisers, directors, officers, employees or representatives;
	 	 	 

		(ii)	any
                                         information which is required to be disclosed to a Party pursuant to judicial proceedings,
                                         any applicable laws, or rules and regulations of any regulatory authority; and

 

    	 	10	 

     

    

 

		(iii)	any
                                         information disclosed by a Party to its respective professional advisers or its directors,
                                         officers and shareholders for the purpose of entering into, performing, or exercising
                                         its obligations under this Agreement, provided that the disclosing Party procures such
                                         persons to be made aware or agree to be bound by the provisions under this clause.

 

		13.3	Notwithstanding
                                         Clause 10, each Party’s obligations under this clause shall apply without limitation
                                         in time and shall survive termination of this Agreement.

 

		14	NOTICES

 

All
notices, demands or other communications required or permitted to be given or made under this Agreement shall be in writing and
delivered personally or sent by local courier or by email or facsimile transmission to the intended recipient thereof at its or
his address or email address or facsimile number, and marked for the attention of such person (if any), designated by it or him
for the purposes of this Agreement. The initial address, email address or facsimile number and person (if any) so designated by
the Parties are set out below:

 

	 	Rebel
    Group, Inc.	 	 
	 	 	 	 
	 	Address	:	7500A
    Beach Road, Unit 12-313, The Plaza, Singapore 199591
	 	Email	:	kkleong@rebelfc.com.sg
	 	Facsimile	:	63387806
	 	Attention:	:	Mr.
    K K Leong
	 	 	 	 
	 	Pure
    Heart	 	 
	 	 	 	 
	 	Address	:	7500A
    Beach Road, Unit 12-313, The Plaza, Singapore 199591
	 	Email	:	justin@rebelfc.com.sg
	 	Facsimile	:	63387806
	 	Attention:	:	Leong
    Aan Yee, Justin
	 	 	 	 
	 	LKK	 	 
	 	 	 	 
	 	Address	:	65
    Shelford Road #02-11 Shelford Regency, Singapore 288455
	 	Email	:	kkleong@rebelfc.com.sg
	 	Facsimile	:	63387806
	 	Attention:	:	Mr.
    K K Leong
	 	 	 	 
	 	TCK	 	 
	 	 	 	 
	 	Address	:	Apt
    Blk 4 Sago Lane #14-103 Singapore 050004.
	 	Email	:	mephistkyle@gmail.com
	 	Attention	:	Mr
    C K Teng

 

    	 	11	 

     

    

 

		15	COSTS

 

Rebel
Group Inc shall bear its own Taxes, legal costs, and any other costs and expenses incurred in connection with this Agreement.

 

		16	FURTHER
                                         ASSURANCE

 

Each
Party shall do and execute or procure to be done and executed all such further acts, deeds, things and documents as may be necessary
to give effect to the terms of this Agreement.

 

		17	ASSIGNMENT

 

Each
Party shall not assign or transfer any of its rights (including the Loan and the right to the repayment thereof and the Conversion
Right), undertakings, agreements, duties, liabilities or obligations under this Agreement without the prior written consent of
the other Parties.

 

		18	TIME
                                         OF ESSENCE

 

Time
shall be of the essence of the obligations to be performed by the Parties under this Agreement.

 

		19	ENTIRE
                                         AGREEMENT

 

This
Agreement constitutes the entire Agreement between the Parties with respect to the subject matter of this Agreement and supersedes
and extinguishes all previous agreements, promises, assurances, warranties, representations and understandings between them, whether
written or oral, relating to its subject matter.

 

		20	VARIATION

 

No
variation, supplement, deletion or replacement of or from this Agreement or any of its items shall be effective unless made in
writing and signed by or on behalf of each Party.

 

		21	NON-WAIVER

 

No
failure to exercise, nor any delay in exercising any right or remedy under this Agreement shall operate as a waiver, nor shall
any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right
or remedy. The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided
by law.

 

		22	SEVERANCE

 

If
any provision of this Agreement is held to be illegal, invalid or unenforceable in whole or in part in any jurisdiction, this
Agreement shall, as to such jurisdiction, continue to be valid as to its other provisions and the remainder of the affected provision;
and the legality, validity and enforceability of such provision in any other jurisdiction shall be unaffected.

 

    	 	12	 

     

    

 

		23	THIRD
                                         PARTIES

 

The
Contracts (Rights of Third Parties) Act, Chapter 53B shall not under any circumstances apply to this Agreement and any person
who is not a party to this Agreement (whether or not such person shall be named, referred to, or otherwise identified, or form
part of a class of persons so named, referred to or identified in this Agreement) shall have no right under the Contracts (Rights
of Third Parties) Act, Chapter 53B to enforce this Agreement.

 

		24	COUNTERPARTS

 

This
Agreement may be signed in any number of counterparts, and by the Parties on separate counterparts, each of which when so executed,
shall be an original, but all counterparts shall together constitute one and the same document. Delivery of an executed counterpart
of a signature page to this Agreement by facsimile or other electronic transmission, such as a PDF, shall be effective as delivery
of a manually executed counterpart of this Agreement, with original signatures to follow.

 

		25	GOVERNING
                                         LAW AND DISPUTE RESOLUTION

 

		25.1	This
                                         Agreement is governed by, and shall be construed in accordance with, the laws of Singapore.

 

		25.2	The
                                         Parties irrevocably agree to submit to the exclusive jurisdiction of the courts of Singapore
                                         in all matters arising in connection with this Agreement.

 

    	 	13	 

     

    

 

ANNEX
A

 

CONVERSION
NOTICE

 

	Date	:	[●]
	 	 	 
	To	:	Rebel
    Group Inc.
	 	 	7500A
    Beach Road,
	 	 	Unit
    12-313, The Plaza,
	 	 	Singapore
    199591
	 	 	 
	Attn	:	The
    Board of Directors

 

Dear
Sirs

 

CONVERSION
OF THE LOAN

 

		1.	I,
                                         [●], hereby irrevocably exercise my conversion rights in respect of the
                                         Investment Agreement (the “Agreement”) dated [●] 2017 made between
                                         (1) yourselves, (2) Pure Heart Entertainment Pte Ltd, (3) Leong Khian Kiee and (4) myself
                                         in accordance with Clause 7 (Conversion) of the Agreement. Terms defined and references
                                         construed in the Agreement shall have the same meaning and construction in this notice.

 

		2.	I
                                         hereby irrevocably request that the Loan be converted in accordance with Clause 7 (Conversion),
                                         and hereby give you notice that the Conversion Amount is United States Dollars Three
                                         Hundred Thousand (US$300,000) and that the number of Conversion Shares to be issued and
                                         allotted to me is [       ] new ordinary shares in the capital of Rebel Group Inc.

 

Yours
faithfully,

 

 

 

 

 

 

		 
	Name:	 

 

    	 	14	 

     

    

 

ANNEX
B

 

WARRANTIES

 

		1.	Information

 

All
written information disclosed by Rebel Group or its directors or auditors or financial advisers or consultants to TCK or his representatives
in the course of the negotiations leading to this Agreement was when given true, complete and accurate in all material respects
or has been corrected by other written information subsequently given to TCK or his representatives and Rebel Group is not aware
of any fact or matter not disclosed in writing to TCK which renders any such information untrue, inaccurate or misleading in any
material respect of the disclosure of which might reasonably affect the willingness of the Subscriber to subscribe for the Subscription
Shares or the terms upon which TCK would be wiling to subscribe for them.

 

		2.	Accounts

 

		(a)	As
                                         at Completion, the audited and unaudited accounts of Rebel Group covering the period
                                         from the date of incorporation of Rebel Group up to 31 December 2016 (the “Accounts
                                         Date”) delivered to TCK (the “Accounts”) have been prepared
                                         so as to give a true and fair view of the state of affairs of Rebel Group and do not
                                         materially misstate the assets and liabilities of Rebel Group at the date of the Accounts
                                         nor the profits or losses for the period concerned.

 

		(b)	Save
                                         as disclosed to TCK in writing, Rebel Group does not have any outstanding loan capital,
                                         nor any debt, nor is it engaged in financing of a type which would not be required to
                                         be shown or reflected in the Accounts, nor has it, borrowed any money which it has not
                                         repaid.

 

		(c)	There
                                         are no liabilities (including contingent liabilities) which are outstanding on the part
                                         of Rebel Group, other than those liabilities disclosed in the Accounts or which have
                                         arisen in the ordinary course of business since the date of Accounts.

 

		(d)	There
                                         has been no revaluation of any assets, fixed or otherwise, of Rebel Group from the value
                                         of those assets stated in the Accounts.

 

		(e)	No
                                         value was attributed in the Accounts to any assets which was not beneficially owned by
                                         Rebel Group at the date of the Accounts or which, in the case of fixed assets, were not
                                         in full and exclusive use for the purposes of Rebel Group’s business.

 

		(f)	The
                                         stock-in-trade and work-in-progress were valued in the Accounts at figures not exceeding
                                         the amounts which could in the circumstances existing at the date of the Accounts, reasonably
                                         be expected to be realised in the ordinary and usual course of carrying on the business
                                         of Rebel Group (net of selling and distribution costs).

 

    	 	15	 

     

    

 

		(g)	The
                                         profits and losses of Rebel Group for the period ended on the date of the Accounts as
                                         shown by the Accounts and the trend of profits and losses shown by such accounts have
                                         not (except as fairly disclosed in such accounts) been affected by changes or inconsistencies
                                         in accounting treatment, by any non-recurring items of income or expenditure, by transactions
                                         of an abnormal or unusual nature or entered into otherwise than on normal commercial
                                         terms or by any other factors rendering such profits and losses for all or any of such
                                         periods exceptionally high or low.

 

		(h)	Full
                                         provision or reserve has been made in the Accounts for all Taxation liable to be assets
                                         on Rebel Group or for which Rebel Group is or may become accountable in respect of:

 

		(i)	profits,
                                         gains or income (as computed for Taxation purposes) arising or accruing or deemed to
                                         arise or accrue on or before the date of Accounts; and

 

		(ii)	any
                                         transactions effected or deemed to be effected on or before the date of the Accounts,
                                         or provided for in the Accounts.

 

		(i)	Full
                                         provision for deferred Taxation has been made in the Accounts in accordance with accounting
                                         principles, standards and practices generally accepted in USA at the relevant date of
                                         the Accounts.

 

		3.	Changes
                                         since Accounts Date

 

Rebel
Group (a) is a corporation duly organised and validly existing under the laws of Florida, USA (b) has full corporate power to
carry on its business as it is now conducted, and (c) is entitled to own, lease or operate the properties and assets it now owns,
leases and operates.

 

Since
the Accounts Date, save as disclosed in writing by Rebel Group to TCK or in the Accounts (if any):

 

		(a)	it
                                         has not carried on any business other than the existing business of Rebel Group;

 

		(b)	its
                                         business has been lawfully carried on in the ordinary course;

 

		(c)	there
                                         has been no material adverse change in its financial position, operations, assets or
                                         prospects and no event, fact or matter has occurred which will give rise to any such
                                         change;

 

		(d)	its
                                         business has not been materially and adversely affected by the loss of any important
                                         customer or by any abnormal factor not affecting similar businesses to a like extent
                                         and there are no facts which are likely to give rise to any such effects;

 

		(e)	it
                                         has not repaid any shareholders loan or inter-Rebel Group loan owing by it or paid any
                                         accrued directors’ fees to any of its directors, whether in the ordinary and usual
                                         course of business or not;

 

		(f)	no
                                         dividend or other distribution has been declared, made or paid to its members;

 

    	 	16	 

     

    

 

		(g)	no
                                         share or loan capital or any other security giving rise to a right over the capital has
                                         been allotted or issued or agreed to be allotted or issued;

 

		(h)	it
                                         has not redeemed or purchased or agreed to redeem or purchase any of its share capital;

 

		(i)	it
                                         has not made or received any surrender relating to group relief or any surrender of a
                                         Tax refund;

 

		(j)	no
                                         insurance claims have been refused or settled below the amount claimed;

 

		(k)	it
                                         has not entered into any unusual, long term and onerous commitments and contracts; and

 

		(l)	it
                                         has not disposed of any assets which are material for the business of Rebel Group.

 

		4.	Litigation

 

		(a)	Rebel
                                         Group is not present engaged whether as plaintiff or defendant or otherwise any legal
                                         action, proceeding or arbitration or being prosecuted for any criminal offence and no
                                         such legal action, proceeding, arbitration or prosecution is pending or threatened by
                                         or against Rebel Group (or any person for whose acts or defaults Rebel Group may be vicariously
                                         liable).

 

		(b)	There
                                         are no circumstances known to Rebel Group which, to the best knowledge of Rebel Group,
                                         are likely to lead to any such claim or legal action, proceeding or arbitration or prosecution
                                         against Rebel Group.

 

		(c)	Neither
                                         Rebel Group, nor any of the properties, assets or operations which it owns or in which
                                         it is interested, is subject to any continuing injunction, judgment or order of any Court,
                                         arbitrator, governmental agency or regulatory body, nor in default under any order, licence,
                                         regulation or demand of any governmental agency or regulatory body or with respect to
                                         any order, suit, injunction or decree of any Court.

 

		5.	Taxation

 

		(a)	Rebel
                                         Group has not been the subject of an investigation, discovery or access order by or involving
                                         any Taxation authority and there are no circumstances existing which make it likely that
                                         an investigation, discovery or order will be made.

 

		(b)	All
                                         returns, computations, notices and information which are or have been required to be
                                         made or given Rebel Group for any Taxation purpose:

 

		(i)	have
                                         been made or given within the requisite periods and on a proper basis and are up-to-date
                                         and correct; and

 

		(ii)	none
                                         of them is, or is likely to be, the subject of any dispute with the Inland Revenue or
                                         other Taxation authorities.

 

    	 	17	 

     

    

 

		(c)	Rebel
                                         Group is in possession of sufficient information to enable it to compute its liability
                                         to Taxation insofar as it depends on any transaction occurring on or before the Completion
                                         Date.

 

		(d)	No
                                         transaction has been effected by Rebel Group in respect of which any consent or clearance
                                         from the relevant Taxation authorities or other governmental authorities was required
                                         or was or could have been sought (i) without such consent or clearance having been validly
                                         obtained before the transaction was effected, (ii) otherwise than in accordance with
                                         the terms of and so as to satisfy any conditions attached to such consent or clearance,
                                         and (iii) otherwise than at a time when in circumstances in which such consent or clearance
                                         was valid and effective.

 

		(e)	All
                                         particulars furnished to the relevant Taxation authorities or other governmental authorities,
                                         in connection with the application for any consent or clearance by Rebel Group, fully
                                         and accurately disclosed all facts and circumstances relevant to the decision of the
                                         relevant Taxation authorities.

 

		(f)	Rebel
                                         Group has not paid nor has any director or officer of Rebel Group paid, or become liable
                                         to pay, any fine, penalty or interest charged by virtue of any other statutory provision
                                         relating to Taxation.

 

		(g)	Rebel
                                         Group has complied in all respects with all statutory provisions relating to Taxation
                                         and requiring the deduction of Tax from any payment made by it, and has properly accounted
                                         for, and remitted or paid to the Inland Revenue or other Taxation authorities within
                                         the time required.

 

		(h)	Rebel
                                         Group has not since its incorporated engaged in, or been a party to, any transaction
                                         or series of transaction or scheme or arrangement of which the main purpose, or one of
                                         the main purposes, was or could be said to be the avoidance of, or deferral of or a reduction
                                         in liability to, Taxation.

 

		(i)	All
                                         documents to which Rebel Group is a party or which form part of Rebel Group’s title
                                         to any asset owned or possessed by it or which it may need to enforce or produce in evidence
                                         in the courts of Singapore have been duly stamped and (where appropriate) adjudicated.

 

		6.	Employees

 

		(a)	There
                                         are no amounts owing to any present or former director of Rebel Group other than any
                                         amounts reimbursable to such director for any expenses properly incurred by such director
                                         in the ordinary course of performing his duties as a director or employee.

 

		(b)	There
                                         are no employees employed in Rebel Group other than those whose details have been disclosed
                                         in writing to TCK.

 

		(c)	Full
                                         details, in relation to Rebel Group, of the terms of all consultancy and employment agreements
                                         have been disclosed in writing to TCK.

 

    	 	18	 

     

    

 

		(d)	To
                                         the best knowledge of Rebel Group, no liability has been incurred, and no liability is
                                         expected to be incurred, by Rebel Group for breach of any contract of employment or consultancy
                                         agreement with any employee or consultant, including redundancy payments, protective
                                         awards, compensation for wrongful dismissal, unfair dismissal or for failure to comply
                                         with any order for the reinstatement or re-engagement of any employee.

 

		(e)	Save
                                         as disclosed in writing to TCK, Rebel Group has not made or agreed to make any payment
                                         or provided or agreed to provide any benefit to any employee or consultant or former
                                         employee or consultant or any dependant of any such persons in connection with the proposed
                                         termination or suspension of employment or variation of any contract of employment or
                                         consultancy agreement of any such employee or consultant or former employee or consultant.

 

		7.	Debts
                                         to, and Contracts with, Connected Persons

 

		(a)	There
                                         are:

 

		(i)	no
                                         loans made by Rebel Group to its shareholders and/or directors or any affiliate of a
                                         shareholder or director (each a “Connected Person”);

 

		(ii)	no
                                         debts owing to Rebel Group by any Connected Person;

 

		(iii)	no
                                         securities for any such loans or debts as aforesaid; and

 

		(iv)	no
                                         claim or circumstance which may reasonably be expected to give rise to a claim against
                                         Rebel Group by any Connected Person or employee of Rebel Group.

 

		(b)	There
                                         are no existing contracts or arrangement to which Rebel Group is a party and in which
                                         any shareholder and/or any director is interested.

 

		(c)	No
                                         director has any right or interest, direct or indirect, in any business other than those
                                         now carried on by Rebel Group which is of a similar nature to or is, or is likely to
                                         become, competitive with any of the businesses or any proposed new business of Rebel
                                         Group other than right or interest in shares or securities of any such public listed
                                         company which is listed and traded on any stock exchange where such right or interest
                                         does not exceed 4% of such public listed company’s total share capital.

 

		8.	Capital
                                         Commitments, Unusual Contracts and Guarantees

 

Save
as disclosed to TCK in writing or in the Accounts (if any) Rebel Group:

 

		(a)	has
                                         no other capital commitments;

 

		(b)	has
                                         not delegated any powers under a power of attorney which remains in effect;

 

		(c)	has
                                         not entered into or is bound by any guarantee or indemnity under which any liability
                                         or contingent liability is outstanding;

 

    	 	19	 

     

    

 

		(d)	is
                                         not or has not agreed to become a member of any joint venture, consortium, partnership
                                         or other unincorporated association; is or has agreed to become, a party to any agreement
                                         or arrangement for participating with others in any business sharing commissions or other
                                         income;

 

		(e)	is
                                         not a party to any agreement or arrangement of any nature whatsoever which restricts
                                         its freedom to carry on its business in any part of the world in any manner; or

 

		(f)	is
                                         or has been a party to any contract, commitment, arrangement, transaction, understanding,
                                         obligation or liability which:

 

		(i)	is
                                         outside the ordinary and usual course of business;

 

		(ii)	is
                                         not wholly on an arm’s length basis;

 

		(iii)	is
                                         of a long-term nature (that is, unlikely to have been fully performed in accordance with
                                         its terms more than six months after the date it was entered into or undertaken or incapable
                                         of termination by Rebel Group on six months’ notice or less); or

 

		(iv)	involves,
                                         or is likely to involve, obligations or liabilities which by reason of their nature or
                                         magnitude, ought reasonably to be made known to an intending investor in Rebel Group.

 

		9.	Book
                                         Debts 

 

Save
as disclosed to TCK in writing or in the Accounts (if any), Rebel Group does not have any book debts.

 

		10.	Title
                                         to Assets

 

Save
as disclosed to TCK in writing or in the Accounts, if any:

 

		(a)	the
                                         assets owned by Rebel Group comprise all the assets necessary to enable Rebel Group to
                                         carry on its business in the ordinary course as carried on up to the present time and
                                         no such assets are used wholly or partly for any purpose other than its business.

 

		(b)	all
                                         assets of Rebel Group, including all debts due to Rebel Group which have been represented
                                         as being the property of or due to Rebel Group or used or held for the purposes of its
                                         business, were on the relevant date the absolute property of Rebel Group and (save for
                                         those subsequently disposed of or realised in the ordinary and usual course of business)
                                         all such assets and all assets and debts which have subsequently have been acquired or
                                         arisen are the absolute property of Rebel Group and none is the subject of any assignment
                                         or Encumbrance (excepting only liens arising by operation of law in the normal course
                                         of trading) or the subject of any factoring arrangement, hire purchase, conditional sale
                                         or credit sale agreement.

 

    	 	20	 

     

    

 

		(c)	all
                                         such assets are, where capable of possession, in the possession of or under the control
                                         of Rebel Group or Rebel Group is entitled to take possession or control of such assets.

 

		(d)	The
                                         property, rights and assets owned, leased or otherwise used by Rebel Group comprise all
                                         the property, rights and assets necessary or convenient for the carrying on of the business
                                         of Rebel Group fully and effectively in the manner in, and to the extent to, which it
                                         is presently conducted.

 

		11.	Property,
                                         Leases

 

		(a)	Rebel
                                         Group has not entered into any leases, tenancies, licenses, concessions, agencies and
                                         agreements of whatsoever nature.

 

		(b)	Rebel
                                         Group does not own any real property.

 

		12.	Statutory
                                         and Other Requirements, Consents and License 

 

		(a)	Rebel
                                         Group has carried on its business in accordance with applicable laws, regulations and
                                         bylaws in the countries it operates and there is no investigation or enquiry by, or order,
                                         decree or judgment of, any court or any government agency or regulatory body outstanding
                                         or anticipated against Rebel Group.

 

		(b)	There
                                         is no investigation disciplinary proceeding or enquiry by, or order, decree, decision
                                         or judgment of, any court, tribunal, arbitrator, governmental agency or regulatory body
                                         outstanding or to the best knowledge of Rebel Group, anticipated against Rebel Group
                                         or any person for whose acts or defaults it may be vicariously liable.

 

		(c)	Rebel
                                         Group has not received any notice or other communication (official or otherwise) from
                                         any court, tribunal, arbitrator, governmental agency or regulatory body with respect
                                         to an alleged, actual or potential violation and/or failure to comply with any such applicable
                                         law, bye-law or regulation, or requiring it to take or omit any action.

 

		(d)	None
                                         of the directors, officers, agents, employees or other persons acting on behalf of Rebel
                                         Group has been party to the use of any of the assets of Rebel Group for unlawful contributions,
                                         gifts, entertainment or other unlawful expenses relating to political activity or to
                                         the making of any direct or indirect unlawful payment to government officials or employees
                                         from such assets; to the establishment or maintenance of any unlawful or unrecorded fund
                                         of monies or other assets; to the making of any false or fictitious entries in the books
                                         or records of Rebel Group; or to the making of any unlawful or undisclosed payment.

 

		13.	Books
                                         and Records

 

The
statutory records, registers and books and the books of account of Rebel Group have been properly kept, are duly entered up and
maintained in accordance with all legal requirements applicable thereto on a proper and consistent basis and contain complete
and accurate records of all matters required to be dealt with in such books and all such books and records and all other documents
(including documents of title and copies of all subsisting agreements to which Rebel Group is a party) which are the property
of Rebel Group or ought to be in its possession are in its possession (or under its control) and no notice or allegation that
any is incorrect or should be rectified has been received. All accounts, documents and returns required by law to be delivered
or made to the Registrar of Companies or any other authority have been duly and correctly delivered or made.

 

    	 	21	 

     

    

 

		14.	Options
                                         on Share Capital or Assets 

 

There
is no option, right to acquire, mortgage, charge, pledge, lien or other form of security or Encumbrance on, over or affecting
the shares or capital in, or any of the assets or businesses of, Rebel Group and there is no agreement or commitment to give or
create any of the foregoing.

 

		15.	Intellectual
                                         Property 

 

For
the purposes of this paragraph of Schedule 3:

 

“Business
IP” means all Intellectual Property which has been used in the business of Rebel Group;

 

“Intellectual
Property” means trademarks, service marks, trade names, domain names, logos, get-up, patents, inventions, registered
and unregistered design rights, copyrights, semi-conductor topography rights, database rights and all other similar rights in
any part of the world (including Know-how) including, where such rights are obtained or enhanced by registration, any registration
of such rights and applications and rights to apply for such registrations;

 

“Know-how”
means confidential, industrial and commercial information and techniques in any form including drawings, formulae, test results,
reports, project reports and testing procedures, instruction and training manuals, tables of operating conditions, market forecasts,
lists and particulars of customers and suppliers;

 

“Licensed
Business IP” means Business IP other than Owned Business IP; and

 

“Owned
Business IP” means Business IP which is owned by Rebel Group.

 

		(a)	All
                                         Business IP is either legally and beneficially owned by Rebel Group or lawfully used
                                         with the consent of the owner.

 

		(b)	All
                                         Owned Business IP is not being infringed or attacked or opposed by any person.

 

		(c)	All
                                         Business IP is not subject to any Encumbrance or any licence or authority in favour of
                                         another.

 

		(d)	The
                                         Owned Business IP is valid and enforceable.

 

		(e)	There
                                         has been and is no misuse of Know-how by Rebel Group and Rebel Group has not made any
                                         disclosure of Know-how to any person other than TCK, except property and in the ordinary
                                         and usual course of business and on the basis that such disclosure is to be treated as
                                         being of a confidential character.

 

    	 	22	 

     

    

 

		(f)	Neither
                                         entering into, nor compliance with, nor completion of this Agreement will, or is likely
                                         to result in a breach of, or give any third party a right to terminate or vary any license
                                         to use any Licensed Business IP.

 

		(g)	No
                                         moral rights have been asserted or, to the best knowledge of Rebel Group, are likely
                                         to be asserted which would affect the use of any of the Business IP.

 

		(h)	The
                                         Business IP comprises all the rights and interests in Intellectual Property necessary
                                         or convenient for the carrying on of the business of Rebel Group in the manner in and
                                         to the extent to which it is presently conducted.

 

		16.	Banking
                                         and Finance

 

Save
as disclosed in writing to TCK:

 

		(a)	Rebel
                                         Group has no liabilities in the nature of borrowings or in respect of debentures or negotiable
                                         instruments other than cheques drawn in the ordinary course of business on its bank accounts
                                         and is not a party to any loan agreement, facility letter or other agreement for the
                                         provision of credit or financing facilities to it or any agreement for the sale, factoring
                                         or discounting of debts.

 

		(b)	Rebel
                                         Group has not given or undertaken to give any security or guarantee for any liability
                                         of any person.

 

		17.	Material
                                         Contracts

 

Save
as disclosed in writing to TCK, Rebel Group has not entered into any Material Contract. As used herein, “Material Contract”
means an agreement or arrangement to which Rebel Group is a party or is bound by and which is of material importance to its business,
affairs, operations, assets, profits or financial condition.

 

		18.	Insolvency,
                                         etc

 

		(a)	No
                                         order has been made or petition presented or resolution passed for the winding-up or
                                         administration of Rebel Group and to the best knowledge of Rebel Group, there are no
                                         grounds on which any person would be entitled to have Rebel Group wound-up or placed
                                         in administration, nor has any person threatened to present such a petition or convened
                                         or threatened to convene a meeting of Rebel Group to consider a resolution to wind up
                                         Rebel Group or any other resolutions, nor has any step been taken in relation to Rebel
                                         Group under the law relating to insolvency or the relief of debtors in any part of the
                                         world.

 

		(b)	No
                                         petition has been presented or other proceedings have been commenced for an administration
                                         or judicial management order to be made (or any other order to be made by which during
                                         the period it is in force, the affairs, business and assets of the company concerned
                                         are managed by a person appointed for the purpose by a court, governmental agency or
                                         similar body) in relation to Rebel Group, nor has any such other been made.

 

		(c)	No
                                         receiver (including an administrative receiver), liquidator, judicial manager trustee,
                                         administrator, custodian or similar official has been appointed in any jurisdiction in
                                         respect of the whole or any part of the business or assets of Rebel Group and no step
                                         has been taken for or with a view to the appointment of such a person.

 

		(d)	In
                                         relation to any property or assets held by Rebel Group under any hire purchase, conditional
                                         sale, chattel leasing or retention of title agreement or otherwise belonging to a third
                                         party, no event has occurred which entitles, or which upon intervention or notice by
                                         the third party may entitle, the third party to repossess the property or assets concerned
                                         or terminate the agreement or any license in respect of the same.

 

    	 	23	 

     

    

 

IN
WITNESS WHEREOF this Agreement has been duly executed on the date stated at the beginning of this Contract.

 

REBEL
GROUP

 

	

        Signed
by:

         

        For
        and on behalf of

        REBEL
        GROUP INC.

         

        In
        the presence of:
	

 

	 	 
	Witness
    name:	 
	Passport
    Number:	 
	Address:	 

 

PURE
HEART

 

	

        Signed
by:

         

        Leong
        Aan Yee, Justin (Director)

         

        For
and on behalf of

        PURE
        HEART ENTERTAINMENT PTE LTD

         

        In
        the presence of:
	

 

	 	 
	Witness
    name:	 
	Passport
    Number:	 
	Address:	 

 

    	 	24	 

     

    

 

LKK

 

	

        Signed
by:

         

        LEONG
        KHIAN KIEE

         

         

         

        

        In
        the presence of:
	

 

	 	 
	Witness
    name:	 
	Passport
    Number:	 
	Address:	 

 

TCK

 

	

        Signed
by:

         

        TENG
CHEE KEONG

         

         

         

        

        In
        the presence of:
	

 

	 	 
	Witness
    name:	 
	Passport
    Number:	 
	Address:	 

 

 

25[FORM OF WARRANT]

 

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

 

AIR
INDUSTRIES GROUP

 

Warrant
To Purchase Common Stock

 

Warrant No.: ______

 

Number of Shares of Common Stock:____________

 

Date of Issuance: May [___], 2017 ("Issuance Date")

 

Air Industries Group,
a Nevada corporation (the "Company"), hereby certifies that, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, [BUYER], the registered holder
hereof or its permitted assigns (the "Holder"), is entitled, subject to the terms set forth below, to purchase
from the Company, at the Exercise Price (as defined below) then in effect, at any time or times on or after the Issuance Date,
but not after 11:59 p.m., New York time, on the Expiration Date, (as defined below), ______________ (_____________)1
fully paid nonassessable shares of Common Stock, subject to adjustment as provided herein (the "Warrant Shares").
Except as otherwise defined herein, capitalized terms in this Warrant to Purchase Common Stock (including any Warrants to Purchase
Common Stock issued in exchange, transfer or replacement hereof, this "Warrant"), shall have the meanings set
forth in Section 17. This Warrant is one of the Warrants to purchase Common Stock (the "SPA Warrants") issued
pursuant to Section 1 of that certain Securities Purchase Agreement, dated as of May [  ], 2017 (the "Subscription
Date"), by and among the Company and the investors (the "Buyers") referred to therein (the "Securities
Purchase Agreement"). Capitalized terms used herein and not otherwise defined shall have the definitions ascribed to
such terms in the Securities Purchase Agreement.

 

1
Insert 30% of the number of shares of Common Stock issuable to the Holder on the Closing Date upon conversion of the Notes
(as defined in the Securities Purchase Agreement) (without regard to any limitation on conversion set forth therein) purchased
by the Holder pursuant to the Securities Purchase Agreement.

 

    

    

    

 

1.    EXERCISE OF WARRANT.

 

(a)  
Mechanics of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations
set forth in Section 1(f)), this Warrant may be exercised by the Holder at any time or times on or after the Issuance Date, in
whole or in part, by (i) delivery of a written notice, in the form attached hereto as Exhibit A (the "Exercise
Notice"), of the Holder's election to exercise this Warrant and (ii) (A) payment to the Company of an amount equal
to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the "Aggregate
Exercise Price") in cash by wire transfer of immediately available funds or (B) if the provisions of Section 1(d) are
applicable, by notifying the Company that this Warrant is being exercised pursuant to a Cashless Exercise (as defined in Section
1(d)). No ink-original Exercise Notice shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization)
of any Exercise Notice be required. The Holder shall not be required to deliver the original Warrant in order to effect an exercise
hereunder. Execution and delivery of the Exercise Notice with respect to less than all of the Warrant Shares shall have the same
effect as cancellation of the original Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number
of Warrant Shares. On or before the first (1st) Trading Day following the date on which the Holder has delivered an
Exercise Notice, the Company shall transmit by facsimile an acknowledgment of confirmation of receipt of the Exercise Notice to
the Holder and the Company's transfer agent (the "Transfer Agent"). On or before the earlier of (i) third (3rd)
Trading Day and (ii) the number of Trading Days comprising the Standard Settlement Period, in each case, following the date on
which the Holder has delivered the Exercise Notice, so long as the Holder delivers the Aggregate Exercise Price (or notice of a
Cashless Exercise) on or prior to the first (1st) Trading Day following the date on which the Holder has delivered the
Exercise Notice (a "Share Delivery Date") (provided that if the Aggregate Exercise Price has not been delivered
by such date, the applicable Share Delivery Date shall be one (1) Trading Day after the Aggregate Exercise Price (or notice of
a Cashless Exercise) is delivered), the Company shall (X) provided that the Transfer Agent is participating in The Depository Trust
Company ("DTC") Fast Automated Securities Transfer Program, credit such aggregate number of Warrant Shares to
which the Holder is entitled pursuant to such exercise to the Holder's or its designee's balance account with DTC through its Deposit
/ Withdrawal At Custodian system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer
Program, issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered
in the Company's share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder
is entitled pursuant to such exercise. The Company shall be responsible for all fees and expenses of the Transfer Agent and all
fees and expenses with respect to the issuance of Warrant Shares via DTC, if any. Upon delivery of the Exercise Notice, the Holder
shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this
Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder's DTC account or the date of
delivery of the certificates evidencing such Warrant Shares, as the case may be. If this Warrant is submitted in connection with
any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise
is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable and
in no event later than three (3) Trading Days after any exercise and at its own expense, issue a new Warrant (in accordance with
Section 7(d)) representing the right to purchase the number of Warrant Shares issuable immediately prior to such exercise under
this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional Warrant Shares are
to be issued upon the exercise of this Warrant, but rather the number of Warrant Shares to be issued shall be rounded up to the
nearest whole number. The Company shall pay any and all taxes which may be payable with respect to the issuance and delivery of
Warrant Shares upon exercise of this Warrant. The Company's obligations to issue and deliver Warrant Shares in accordance with
the terms and subject to the conditions hereof are absolute and unconditional, irrespective of any action or inaction by the Holder
to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person
or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination.

 

    - 2 -

    

    

 

(b)  
Exercise Price. For purposes of this Warrant, "Exercise Price" means the lesser of the (i) closing
price on Friday May 12, 2017, and (ii) the Weighted Average Price of the Common Stock for the five trading days ending Thursday
May 11, 2017.

 

(c)  
Company's Failure to Timely Deliver Securities. If the Company shall fail for any reason or for no reason to issue
to the Holder on or prior to the applicable Share Delivery Date either (I) if the Transfer Agent is not participating in the DTC
Fast Automated Securities Transfer Program, a certificate for the number of shares of Common Stock to which the Holder is entitled
and register such shares of Common Stock on the Company's share register or if the Transfer Agent is participating in the DTC Fast
Automated Securities Transfer Program, to credit the Holder's balance account with DTC, for such number of shares of Common Stock
to which the Holder is entitled upon the Holder's exercise of this Warrant or (II) if a registration statement covering the resale
of the Warrant Shares that are the subject of the Exercise Notice (the "Unavailable Warrant Shares") is not available
for the resale of such Unavailable Warrant Shares and the Company fails to promptly (x) so notify the Holder and (y) deliver the
Warrant Shares electronically without any restrictive legend by crediting such aggregate number of Warrant Shares to which the
Holder is entitled pursuant to such exercise to the Holder's or its designee's balance account with DTC through its Deposit / Withdrawal
At Custodian system (the event described in the immediately foregoing clause (II) is hereinafter referred as a "Notice
Failure" and together with the event described in clause (I) above, an "Exercise Failure"), then, in
addition to all other remedies available to the Holder, the Holder, upon written notice to the Company, may retain or have returned,
as the case may be, any portion of this Warrant that has not been exercised pursuant to such Exercise Notice. In addition to the
foregoing, if on or prior to the applicable Share Delivery Date either (I) if the Transfer Agent is not participating in the DTC
Fast Automated Securities Transfer Program, the Company shall fail to issue and deliver a certificate to the Holder and register
such shares of Common Stock on the Company's share register or, if the Transfer Agent is participating in the DTC Fast Automated
Securities Transfer Program, credit the Holder's balance account with DTC for the number of shares of Common Stock to which the
Holder is entitled upon the Holder's exercise hereunder or pursuant to the Company's obligation pursuant to clause (ii) below or
(II) a Notice Failure occurs, and if on or after such Trading Day the Holder purchases (in an open market transaction or otherwise)
shares of Common Stock to deliver in satisfaction of a sale by the Holder of shares of Common Stock issuable upon such exercise
that the Holder anticipated receiving from the Company (a "Buy-In"), then the Company shall, within three (3)
Trading Days after the Holder's request promptly honor its obligation to deliver to the Holder a certificate or certificates representing
such shares of Common Stock or credit such Holder's balance account with DTC, as applicable, and pay cash to the Holder in an amount
equal to the excess (if any) of the Holder’s total purchase price (including brokerage commissions and other out of pocket
expenses, if any) for the shares of Common Stock so purchased (the “Buy-In Price”) over the product of (A) such number
of shares of Common Stock, times (B) the price at which the sell order giving rise to such purchase obligation was executed. Nothing
shall limit the 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 certificates
representing shares of Common Stock (or to electronically deliver such shares of Common Stock) upon the exercise of this Warrant
as required pursuant to the terms hereof.

 

    - 3 -

    

    

 

(d)  
Cashless Exercise. Notwithstanding anything contained herein to the contrary, if a registration statement covering
the resale of the Unavailable Warrant Shares is not available for the resale of such Unavailable Warrant Shares, the Holder may,
in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated
to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise
the "Net Number" of shares of Common Stock determined according to the following formula (a "Cashless Exercise"):

 

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

       B

 

For purposes
of the foregoing formula:

 

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

 

B=
as applicable: (i) the Weighted Average Price of the Common Stock on the Trading Day immediately preceding the date of the applicable
Exercise Notice if such Exercise Notice is (1) both executed and delivered pursuant to Section 1(a) hereof on a day that is not
a Trading Day or (2) both executed and delivered pursuant to Section 1(a) 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) the Closing Bid Price of the Common Stock on the principal trading market as reported by Bloomberg as of the time of
the Holder’s execution of the applicable Exercise Notice if such Exercise Notice is executed during "regular trading
hours" on a Trading Day and is delivered within two (2) hours thereafter pursuant to Section 1(a) hereof or (iii) the Weighted
Average Price of the Common Stock on the date of the applicable Exercise Notice if the date of such Exercise Notice is a Trading
Day and such Exercise Notice is both executed and delivered pursuant to Section 1(a) hereof after the close of "regular trading
hours" on such Trading Day.

 

    - 4 -

    

    

 

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

 

For purposes of Rule
144(d) promulgated under the 1933 Act, as in effect on the date hereof, the Company hereby acknowledges and agrees that the Warrant
Shares issued in a Cashless Exercise shall be deemed to have been acquired by the Holder, and the holding period for the Warrant
Shares shall be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Securities Purchase Agreement.

 

(e)  
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 and resolve
such dispute in accordance with Section 12.

 

(f)   
Beneficial Ownership. Notwithstanding anything to the contrary contained herein, the Company shall not effect
the exercise of any portion of this Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, pursuant
to the terms and conditions of this Warrant and any such exercise shall be null and void and treated as if never made, to the extent
that after giving effect to such exercise, the Holder together with the other Attribution Parties collectively would beneficially
own in excess of 4.99% (the "Maximum Percentage") of the number of shares of Common Stock outstanding immediately
after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially
owned by the Holder and the other Attribution Parties shall include the number of shares of Common Stock held by the Holder and
all other Attribution Parties plus the number of shares of Common Stock issuable upon exercise of this Warrant with respect to
which the determination of such sentence is being made, but shall exclude the number of shares of Common Stock which would be issuable
upon (A) exercise of the remaining, unexercised portion of this Warrant beneficially owned by the Holder or any of the other Attribution
Parties and (B) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company (including,
without limitation, any convertible notes or convertible preferred stock or warrants, including the other SPA Warrants) beneficially
owned by the Holder or any other Attribution Party subject to a limitation on conversion or exercise analogous to the limitation
contained in this Section 1(f). For purposes of this Section 1(f), beneficial ownership shall be calculated in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended (the "1934 Act"). For purposes of determining
the number of outstanding

 

    - 5 -

    

    

 

shares of Common Stock the Holder may acquire upon the exercise of this Warrant without exceeding the
Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company's most
recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing with the Securities
and Exchange Commission (the "SEC"), as the case may be, (y) a more recent public announcement by the Company
or (3) any other written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding
(the "Reported Outstanding Share Number"). If the Company receives an Exercise Notice from the Holder at a time
when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding Share Number, the Company shall
(i) notify the Holder in writing of the number of shares of Common Stock then outstanding and, to the extent that such Exercise
Notice would otherwise cause the Holder's beneficial ownership, as determined pursuant to this Section 1(f), to exceed the Maximum
Percentage, the Holder must notify the Company of a reduced number of Warrant Shares to be purchased pursuant to such Exercise
Notice (the number of shares by which such purchase is reduced, the "Reduction Shares") and (ii) as soon as reasonably
practicable, the Company shall return to the Holder any exercise price paid by the Holder for the Reduction Shares. For any reason
at any time, upon the written or oral request of the Holder, the Company shall within one (1) Trading Day confirm orally and in
writing or by electronic mail 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 and any other Attribution Party since the date as of which the Reported Outstanding Share Number was
reported. In the event that the issuance of shares of Common Stock to the Holder upon exercise of this Warrant results in the Holder
and the other Attribution Parties being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number
of outstanding shares of Common Stock (as determined under Section 13(d) of the 1934 Act), the number of shares so issued by which
the Holder's and the other Attribution Parties' aggregate beneficial ownership exceeds the Maximum Percentage (the "Excess
Shares") shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not have the power to vote
or to transfer the Excess Shares. As soon as reasonably practicable after the issuance of the Excess Shares has been deemed null
and void, the Company shall return to the Holder the exercise price paid by the Holder for the Excess Shares. Upon delivery of
a written notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage
not in excess of 9.99% as specified in such notice; provided that (i) any such increase in the Maximum Percentage will not be effective
until the sixty-first (61st) day after such notice is delivered to the Company and (ii) any such increase or decrease
will apply only to the Holder and the other Attribution Parties and not to any other holder of SPA Warrants that is not an Attribution
Party of the Holder. For purposes of clarity, the shares of Common Stock issuable pursuant to the terms of this Warrant in excess
of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes of
Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to exercise this Warrant pursuant to this paragraph shall
have any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of exercisability.
The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms
of this Section 1(f) to the extent necessary to correct this paragraph or any portion of this paragraph which may be defective
or inconsistent with the intended beneficial ownership limitation contained in this Section 1(f) or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitation contained in this paragraph may not be waived
and shall apply to a successor holder of this Warrant.

 

    - 6 -

    

    

 

(g)  
Insufficient Authorized Shares. If at any time while this Warrant remains outstanding the Company does not have a
sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise
of this Warrant at least a number of shares of Common Stock equal to the number of shares of Common Stock as shall from time to
time be necessary to effect the exercise of all of this Warrant then outstanding (the "Required Reserve Amount"
and the failure to have such sufficient number of authorized and unreserved shares of Common Stock, an "Authorized Share
Failure"), then the Company shall immediately take all action necessary to increase the Company's authorized shares of
Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for this Warrant then outstanding.
Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized
Share Failure, but in no event later than seventy-five (75) days after the occurrence of such Authorized Share Failure, the Company
shall hold a meeting of its shareholders for the approval of an increase in the number of authorized shares of Common Stock. In
connection with such meeting, the Company shall provide each shareholder with a proxy statement and shall use its best efforts
to solicit its shareholders' approval of such increase in authorized shares of Common Stock and to cause its board of directors
to recommend to the shareholders that they approve such proposal. Notwithstanding the foregoing, if any such time of an Authorized
Share Failure, the Company is able to obtain the written consent of a majority of the shares of its issued and outstanding Common
Stock to approve the increase in the number of authorized shares of Common Stock, the Company may satisfy this obligation by obtaining
such consent and submitting for filing with the SEC an Information Statement on Schedule 14C. In the event that upon any exercise
of this Warrant, the Company does not have sufficient authorized shares to deliver in satisfaction of such exercise, then unless
the Holder elects to void such attempted exercise, the Holder may require the Company to pay to the Holder within three (3) Trading
Days of the applicable exercise, cash in an amount equal to the product of (i) the quotient determined by dividing (x) the number
of Warrant Shares that the Company is unable to deliver pursuant to this Section 1(g), by (y) the total number of Warrant Shares
issuable upon exercise of this Warrant (without regard to any limitations or restrictions on exercise of this Warrant) and (ii)
the Black Scholes Value; provided, that (x) references to "the day immediately following the public announcement of the applicable
Fundamental Transaction" in the definition of "Black Scholes Value" shall instead refer to "the date the Holder
exercises this Warrant and the Company cannot deliver the required number of Warrant Shares because of an Authorized Share Failure"
and (y) clause (iii) of the definition of "Black Scholes Value" shall instead refer to "the underlying price per
share used in such calculation shall be the highest Weighted Average Price during the period beginning on the date of the applicable
date of exercise and the date that the Company makes the applicable cash payment."

 

2.    ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall be adjusted from
time to time as follows:

 

(a)  
Adjustment Upon Subdivision or Combination of Shares of Common Stock. If the Company at any time on or after the
Subscription Date subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding
shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will
be proportionately reduced and the number of Warrant Shares will be proportionately increased. If the Company at any time on or
after the Subscription Date combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding
shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will
be proportionately increased and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 2(a)
shall become effective at the close of business on the date the subdivision or combination becomes effective.

 

    - 7 -

    

    

 

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

 

(c)  
Reset. On the earlier to occur of (i) the consummation by the Company of an offering of Common Stock pursuant to
the Company's Registration Statement No. 333-217582 provided that such offering results in gross process to the Company of at least
$3,000,000 and (ii) the first date on which no Notes are outstanding, the Exercise Price then in effect shall be reset to equal
the lower of (x) the Exercise Price then in effect and (y) if the trigger of the reset of the Exercise Price pursuant to this Section
2(c) is (A) the immediately preceding clause (i), the lowest price at which the Company offers shares of Common Stock pursuant
to such registration statement and (B) the immediately preceding clause (ii), the Weighted Average Price of the Common Stock on
such first date on which no Notes are outstanding.

 

3.    RIGHTS
UPON DISTRIBUTION OF ASSETS. If the Company shall declare or make any dividend or other distribution of its assets (or rights
to acquire its assets) to any or all holders of shares of Common Stock, by way of return of capital or otherwise (including, without
limitation, any distribution of cash, stock or other securities, property, options, evidence of indebtedness or any other assets
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
or restrictions on exercise of this Warrant, including without limitation, the Maximum Percentage) 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, that to the
extent that the Holder's right to participate in any such Distribution would result in the Holder and the other Attribution Parties
exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to such extent (and
shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such Distribution (and beneficial
ownership) to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until
such time or times as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum
Percentage, at which time or times the Holder shall be granted such Distribution (and any Distributions declared or made on such
initial Distribution or on any subsequent Distribution held similarly in abeyance) to the same extent as if there had been no
such limitation).

 

    - 8 -

    

    

 

4.    PURCHASE
RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a)    Purchase
Rights. In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders
of any class 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 or restrictions
on exercise of this Warrant, including without limitation, the Maximum Percentage) 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, that to the extent that the Holder's right to participate in any such Purchase Right would result in the Holder
and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such
Purchase Right to such extent (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of
such Purchase Right (and beneficial ownership) to such extent) and such Purchase Right to such extent shall be held in abeyance
for the benefit of the Holder until such time or times as its right thereto would not result in the Holder and the other Attribution
Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted such right (and any Purchase Right
granted, issued or sold on such initial Purchase Right or on any subsequent Purchase Right held similarly in abeyance) to the
same extent as if there had been no such limitation).

 

(b)    Fundamental
Transactions. The Company shall cause any Successor Entity in a Fundamental Transaction in which the Company is not the survivor
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 4(b) pursuant to written agreements in form and substance reasonably satisfactory to the Required
Holders, including agreements, if so requested by the Required Holders, to deliver to each holder of the SPA Warrants in exchange
for such SPA Warrants a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to this Warrant, including, without limitation, an adjusted exercise price equal to the value for the shares of Common Stock reflected
by the terms of such Fundamental Transaction, and exercisable for a corresponding number of shares of capital stock 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 reasonably satisfactory to the Required Holders, 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
adjustments to the 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 occurrence or consummation of such Fundamental Transaction). No later than (i)
thirty (30) days prior to the occurrence or consummation of any Fundamental Transaction or (ii) if later, the first Trading Day
following the date the Company first becomes aware of the occurrence or potential occurrence of a Fundamental Transaction, the
Company shall deliver written notice thereof via facsimile or electronic mail and overnight courier to the Holder. Upon the occurrence
or consummation of any Fundamental Transaction, , the Company and the Successor Entity or Successor Entities, jointly and severally,
shall succeed to, and the Company shall cause

 

    - 9 -

    

    

 

any
Successor Entity or Successor Entities to jointly and severally succeed to, and be added to the term "Company" under
this Warrant (so that from and after the date of such Fundamental Transaction, each and every provision of this Warrant referring
to the "Company" shall refer instead to each of the Company and the Successor Entity or Successor Entities, jointly
and severally), and the Company and the Successor Entity or Successor Entities, jointly and severally, may exercise every right
and power of the Company prior thereto and shall assume all of the obligations of the Company prior thereto under this Warrant
with the same effect as if the Company and such Successor Entity or Successor Entities, jointly and severally, had been named
as the Company in this Warrant, and, solely at the request of the Holder, if the Successor Entity and/or Successor Entities is
a publicly traded corporation whose common stock is quoted on or listed for trading on an Eligible Market, shall deliver (in addition
to and without limiting any right under this Warrant) to the Holder in exchange for this Warrant a security of the Successor Entity
and/or Successor Entities evidenced by a written instrument substantially similar in form and substance to this Warrant and exercisable
for a corresponding number of shares of capital stock of the Successor Entity and/or Successor Entities (the "Successor
Capital Stock") 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 (such corresponding number of
shares of Successor Capital Stock to be delivered to the Holder shall be equal to the greater of (A) the quotient of (i) the aggregate
dollar value of all consideration (including cash consideration and any consideration other than cash ("Non-Cash Consideration"),
in such Fundamental Transaction, as such values are set forth in any definitive agreement for the Fundamental Transaction that
has been executed at the time of the first public announcement of the Fundamental Transaction or, if no such value is determinable
from such definitive agreement, as determined in accordance with Section 12 with the term "Non-Cash Consideration" being
substituted for the term "Exercise Price") that the Holder would have been entitled to receive upon the happening of
such Fundamental Transaction or the record, eligibility or other determination date for the event resulting in such Fundamental
Transaction, had this Warrant been exercised immediately prior to such Fundamental Transaction or the record, eligibility or other
determination date for the event resulting in such Fundamental Transaction (without regard to any limitations on the exercise
of this Warrant) (the "Aggregate Consideration") divided by (ii) the per share Closing Sale Price of such Successor
Capital Stock on the Trading Day immediately prior to the consummation or occurrence of the Fundamental Transaction and (B) the
product of (i) the quotient obtained by dividing (x) the Aggregate Consideration, by (y) the Closing Sale Price of the Common
Stock on the Trading Day immediately prior to the consummation or occurrence of the Fundamental Transaction and (ii) the highest
exchange ratio pursuant to which any shareholder of the Company may exchange Common Stock for Successor Capital Stock) (provided,
however, to the extent that the Holder's right to receive any such shares of publicly traded common stock (or their equivalent)
of the Successor Entity would result in the Holder and its other Attribution Parties exceeding the Maximum Percentage, if applicable,
then the Holder shall not be entitled to receive such shares to such extent (and shall not be entitled to beneficial ownership
of such shares of publicly traded common stock (or their equivalent) of the Successor Entity as a result of such consideration
to such extent) and the portion of such shares shall be held in abeyance for the Holder until such time or times, as its right
thereto would not result in the Holder and its other Attribution Parties exceeding the Maximum Percentage, at which time or times
the Holder shall be delivered such shares to the extent as if there had been no such limitation), and such security shall be satisfactory
to the Holder, and with an identical exercise price to the Exercise Price hereunder (such adjustments to the number of shares
of capital stock and such exercise price being for the purpose of protecting after the consummation or occurrence of such Fundamental
Transaction the economic value of this Warrant that was in effect immediately prior to the consummation or occurrence of such
Fundamental Transaction, as elected by the Holder solely at its option). Upon occurrence or consummation of the Fundamental Transaction,
the Company and the Successor Entity or

 

    - 10 -

    

    

 

Successor Entities shall deliver to the Holder confirmation that there shall be issued
upon exercise of this Warrant at any time after the occurrence or consummation of the Fundamental Transaction, as elected by the
Holder solely at its option, shares of Common Stock, Successor Capital Stock or, in lieu of the shares of Common Stock or Successor
Capital Stock (or other securities, cash, assets or other property purchasable upon the exercise of this Warrant prior to such
Fundamental Transaction), such shares of stock, securities, cash, assets or any other property whatsoever (including warrants
or other purchase or subscription rights), which for purposes of clarification may continue to be shares of Common Stock, if any,
that the Holder would have been entitled to receive upon the happening of such Fundamental Transaction or the record, eligibility
or other determination date for the event resulting in such Fundamental Transaction, had this Warrant been exercised immediately
prior to such Fundamental Transaction or the record, eligibility or other determination date for the event resulting in such Fundamental
Transaction (without regard to any limitations on the exercise of this Warrant), as adjusted in accordance with the provisions
of this Warrant. In addition to and not in substitution for any other rights hereunder, prior to the occurrence or consummation
of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities, cash, assets
or other property with respect to or in exchange for shares of Common Stock (a "Corporate Event"), the Company
shall make appropriate provision to insure that, and any applicable Successor Entity or Successor Entities shall ensure that,
the Holder will thereafter have the right to receive upon exercise of this Warrant at any time after the occurrence or consummation
of the Corporate Event, shares of Common Stock or Successor Capital Stock or, if so elected by the Holder, in lieu of the shares
of Common Stock (or other securities, cash, assets or other property) purchasable upon the exercise of this Warrant prior to such
Corporate Event (but not in lieu of such items still issuable under Sections 3 and 4(a), which shall continue to be receivable
on the Common Stock or on the such shares of stock, securities, cash, assets or any other property otherwise receivable with respect
to or in exchange for shares of Common Stock), such shares of stock, securities, cash, assets or any other property whatsoever
(including warrants or other purchase or subscription rights and any shares of Common Stock) which the Holder would have been
entitled to receive upon the occurrence or consummation of such Corporate Event or the record, eligibility or other determination
date for the event resulting in such Corporate Event, had this Warrant been exercised immediately prior to such Corporate Event
or the record, eligibility or other determination date for the event resulting in such Corporate Event (without regard to any
limitations on exercise of this Warrant). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably
satisfactory to the Holder. The provisions of this Section 4(b) shall apply similarly and equally to successive Fundamental Transactions
and Corporate Events.

 

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

 

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

 

7.    REISSUANCE
OF WARRANTS.

 

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

 

    - 12 -

    

    

 

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

 

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

 

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

 

8.    NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance
with Section 9(f) of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all
actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor. Without
limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment
of the Exercise Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least
fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or
distribution upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities
or rights to purchase stock, warrants, securities or other property to holders of shares of Common Stock or (C) for determining
rights to vote with respect to any Fundamental Transaction, dissolution or liquidation; provided in each case that such
information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder. It is
expressly understood and agreed that the time of exercise specified by the Holder in each Exercise Notice shall be definitive
and may not be disputed or challenged by the Company.

 

    - 13 -

    

    

 

9.    AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended or waived
and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only
if the Company has obtained the written consent of the Required Holders. Any change, amendment or waiver by the Company and the
Required Holders shall be binding on the Holder of this Warrant and all holders of the other SPA Warrants.

 

10. GOVERNING LAW; JURISDICTION; JURY TRIAL. This Warrant shall be governed by and construed and enforced in accordance
with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed
by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. The
Company hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof to such party at the address set forth in Section 9(f) of the Securities Purchase Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall
be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction
to collect on the Company's obligations to the Holder, to realize on any collateral or any other security for such obligations,
or to enforce a judgment or other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY
HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT
OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

11. CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and all the Buyers and
shall not be construed against any Person as the drafter hereof. The headings of this Warrant are for convenience of reference
and shall not form part of, or affect the interpretation of, this Warrant.

 

12. DISPUTE RESOLUTION. 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 submit the disputed determinations or arithmetic calculations via facsimile or electronic
mail within one (1) Business Day of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder.
If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant
Shares within one (1) Business Day of such disputed determination or arithmetic calculation being submitted to the Holder, then
the Company shall, within one (1) Business Day submit via facsimile (a) the disputed determination of the Exercise Price to an
independent, reputable investment bank selected by the Holder and approved by the Company, such approval not to be unreasonably
withheld, conditioned or delayed or (b) the disputed arithmetic calculation of the Warrant Shares to an independent, outside accountant,
selected by the Holder and approved by the Company, such approval not to be unreasonably withheld, conditioned or delayed. The
Company shall cause at its expense the investment bank or the accountant, as the case may be, to perform the determinations or
calculations and notify the Company and the Holder of the results no later than five (5) Business Days from the time it receives
the disputed determinations or calculations. Such investment bank's or accountant's determination or calculation, as the case
may be, shall be binding upon all parties absent demonstrable error.

 

    - 14 -

    

    

 

13. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative
and in addition to all other remedies available under this Warrant and the other Transaction Documents, at law or in equity (including
a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue
actual damages for any failure by the Company to comply with the terms of this Warrant. The Company acknowledges that a breach
by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may
be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant
shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity
of showing economic loss and without any bond or other security being required.

 

14. TRANSFER.This Warrant and the Warrant Shares may be offered for sale, sold, transferred, pledged or assigned
without the consent of the Company, except as may otherwise be required by Section 2(f) of the Securities Purchase Agreement.

 

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

 

16. DISCLOSURE.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Warrant, unless the Company has in
good faith determined that the matters relating to such notice do not constitute material, nonpublic information relating to the
Company or its Subsidiaries, the Company shall within one (1) Business Day after any such receipt or delivery publicly disclose
such material, nonpublic information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that
a notice contains material, nonpublic information relating to the Company or its Subsidiaries, the Company so shall indicate to
such Holder contemporaneously with delivery of such notice, and in the absence of any such indication, the Holder shall be allowed
to presume that all matters relating to such notice do not constitute material, nonpublic information relating to the Company
or its Subsidiaries.

 

    - 15 -

    

    

 

17. 
CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)  
"1933 Act" means the Securities Act of 1933, as amended.

 

(b)  
"Affiliate" means, with respect to any Person, any other Person that directly or indirectly controls, is
controlled by, or is under common control with, such Person, it being understood for purposes of this definition that "control"
of a Person means the power directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the
election of directors of such Person or direct or cause the direction of the management and policies of such Person whether by
contract or otherwise.

 

(c)  
"Attribution Parties" means, collectively, the following Persons and entities, which the Holder shall identify
in writing to the Company on the Closing Date and from time to time thereafter, together with the number of shares of Common Stock
beneficially owned: (i) any investment vehicle, including, any funds, feeder funds or managed accounts, currently, or from time
to time after the Issuance Date, directly or indirectly managed or advised by the Holder's investment manager or any of its Affiliates
or principals, (ii) any direct or indirect Affiliates of the Holder or any of the foregoing, (iii) any Person acting or who could
be deemed to be acting as a Group together with the Holder or any of the foregoing and (iv) any other Persons whose beneficial
ownership of the Company's Common Stock would or could be aggregated with the Holder's and the other Attribution Parties for purposes
of Section 13(d) of the 1934 Act. For clarity, the purpose of the foregoing is to subject collectively the Holder and all other
Attribution Parties to the Maximum Percentage.

 

(d)  
"Black Scholes Value" means the value of this Warrant based on the Black-Scholes Option Pricing Model obtained
from the "OV" function on Bloomberg determined as of the day immediately following the public announcement of the applicable
Fundamental Transaction, or, if the Fundamental Transaction is not publicly announced, the date the Fundamental Transaction is
consummated, for pricing purposes and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate for a period
equal to the remaining term of this Warrant as of such date of request, (ii) an expected volatility equal to the greater of 100%
and the 100 day volatility obtained from the HVT function on Bloomberg as of the day immediately following the public announcement
of the applicable Fundamental Transaction, or, if the Fundamental Transaction is not publicly announced, the date the Fundamental
Transaction is consummated, (iii) the greater of (x) Closing Sale Price of the Common Stock as of the day the applicable Fundamental
Transaction is publicly announced, or, if the Fundamental Transaction is not publicly announced, the date immediately preceding
the date the Fundamental Transaction is consummated and (y) the underlying price per share used in such calculation shall be 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
the Fundamental Transaction, (iv) a zero cost of borrow and (v) a 360 day annualization factor.

 

    - 16 -

    

    

 

(e)   
"Bloomberg" means Bloomberg Financial Markets.

 

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

 

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

 

(h)  
"Common Stock" means (i) the Company's shares of Common Stock, par value $0.001 per share, and (ii) any
share capital into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such
Common Stock.

 

(i)  
"Convertible Securities" means any stock or securities (other than Options) directly or indirectly convertible
into or exercisable or exchangeable for shares of Common Stock.

 

(j)  
 "Designee" means Empery Asset Management, LP.

 

(k) 
"Eligible Market" means the Principal Market, The NASDAQ Global Market, The NASDAQ Global Select Market,
The NASDAQ Capital Market or The New York Stock Exchange, Inc.

 

    - 17 -

    

    

 

(l)    "Expiration
Date" means the date sixty (60) months after the Issuance Date or, if such date falls on a day other than a Business
Day or on which trading does not take place on the Principal Market (a "Holiday"), the next day that is not a
Holiday.

 

(m) "Fundamental
Transaction" means (A) that the Company shall, directly or indirectly, including through Subsidiaries, Affiliates or otherwise,
in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation)
another Subject Entity, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties
or assets of the Company or any of its "significant subsidiaries" (as defined in Rule 1-02 of Regulation S-X) to one
or more Subject Entities, or (iii) make, or allow one or more Subject Entities to make, or allow the Company to be subject to or
have its Common Stock be subject to or party to one or more Subject Entities making, a purchase, tender or exchange offer that
is accepted by the holders of at least either (x) 50% of the outstanding shares of Common Stock, (y) 50% of the outstanding shares
of Common Stock calculated as if any shares of Common Stock held by all Subject Entities making or party to, or Affiliated with
any Subject Entities making or party to, such purchase, tender or exchange offer were not outstanding; or (z) such number of shares
of Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such
purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of
at least 50% of the outstanding shares of Common Stock, or (iv) consummate a stock purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more Subject
Entities whereby such Subject Entities, individually or in the aggregate, acquire, either (x) at least 50% of the outstanding shares
of Common Stock, (y) at least 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by
all the Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such stock purchase agreement
or other business combination were not outstanding; or (z) such number of shares of Common Stock such that the Subject Entities
become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding shares
of Common Stock, or (v) reorganize, recapitalize or reclassify its Common Stock, (B) that the Company shall, directly or indirectly,
including through Subsidiaries, Affiliates or otherwise, in one or more related transactions, allow any Subject Entity individually
or the Subject Entities in the aggregate to be or become the "beneficial owner" (as defined in Rule 13d-3 under the 1934
Act), directly or indirectly, whether through acquisition, purchase, assignment, conveyance, tender, tender offer, exchange, reduction
in outstanding shares of Common Stock, merger, consolidation, business combination, reorganization, recapitalization, spin-off,
scheme of arrangement, reorganization, recapitalization or reclassification or otherwise in any manner whatsoever, of either (x)
at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock, (y) at least 50% of the
aggregate ordinary voting power represented by issued and outstanding Common Stock not held by all such Subject Entities as of
the Subscription Date calculated as if any shares of Common Stock held by all such Subject Entities were not outstanding, or (z)
a percentage of the aggregate ordinary voting power represented by issued and outstanding shares of Common Stock or other equity
securities of the Company sufficient to allow such Subject Entities to effect a statutory short form merger or other transaction
requiring other shareholders of the Company to surrender their shares of Common Stock without approval of the shareholders of the
Company or (C) directly or indirectly, including through Subsidiaries, Affiliates or otherwise, in one or more related transactions,
the issuance of or the entering into any other instrument or transaction structured in a manner to circumvent, or that circumvents,
the intent of this definition in which case this definition shall be construed and implemented in a manner otherwise than in strict
conformity with the terms of this definition to the extent necessary to correct this definition or any portion of this definition
which may be defective or inconsistent with the intended treatment of such instrument or transaction.

 

    - 18 -

    

    

 

(n)   
"Group" means a "group" as that term is used in Section 13(d) of the 1934 Act and as defined
in Rule 13d-5 thereunder.

 

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

 

(p)   
"Parent Entity" of a Person means an entity that, directly or indirectly, controls the applicable Person,
including such entity whose common capital or equivalent equity security is quoted or listed on an Eligible Market (or, if so elected
by the Required Holders, any other market, exchange or quotation system), or, if there is more than one such Person or such entity,
the Person or such entity designated by the Required Holders or in the absence of such designation, such Person or entity with
the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

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

 

(r)   
"Principal Market" means the NYSE MKT LLC.

 

(s)   
"Required Holders" means the holders of the SPA Warrants representing at least a majority of the shares
of Common Stock underlying the SPA Warrants then outstanding and shall include the Designee so long as the Designee or any of its
Affiliates holds any SPA Warrants.

 

(t)    
"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 applicable
Exercise Notice.

 

(u)  
"Subject Entity" means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons
or Group.

 

(v)  
"Subsidiary" has the meaning ascribed to such term in the Securities Purchase Agreement.

 

(w) "Successor
Entity" means one or more Person or Persons (or, if so elected by the Required Holders, the Company or Parent Entity)
formed by, resulting from or surviving any Fundamental Transaction or one or more Person or Persons (or, if so elected by the Required
Holders, the Company or the Parent Entity) with which such Fundamental Transaction shall have been entered into.

 

    - 19 -

    

    

  

(x)  
"Trading Day" means any day on which the Common Stock is traded on the Principal Market, or, if the Principal
Market is not the principal trading market for the Common Stock on such day, then on the principal securities exchange or securities
market on which the Common Stock is then traded.

 

(y)  
"Weighted Average Price" means, for any security as of any date, the dollar volume-weighted average price
for such security on the Principal Market during the period beginning at 9:30:01 a.m., New York time (or such other time as the
Principal Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other
time as the Principal Market publicly announces is the official close of trading), as reported by Bloomberg through its "Volume
at Price" function or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter
market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time (or such other
time as such market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other
time as such market publicly announces is the official close of trading), as reported by Bloomberg, or, if no dollar volume-weighted
average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest
closing ask price of any of the market makers for such security as reported in the OTC Link or "pink sheets" by OTC Markets
Group Inc. (formerly Pink OTC Markets Inc.). If the Weighted Average Price cannot be calculated for a security on a particular
date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as
mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value
of such security, then such dispute shall be resolved pursuant to Section 12 with the term "Weighted Average Price" being
substituted for the term "Exercise Price." All such determinations shall be appropriately adjusted for any stock dividend,
stock split, stock combination, reclassification or other similar transaction during the applicable calculation period.

 

[Signature Page Follows]

 

    - 20 -

    

    

 

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

 

	 	AIR
INDUSTRIES GROUP

 

By:___________________________

Name:

Title: 

 

    

    

    

 

EXHIBIT A

 

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER
TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

air
industries group 

 

The
undersigned holder hereby exercises the right to purchase _________________ of the shares of Common Stock ("Warrant Shares")
of Air Industries Group, a Nevada corporation (the "Company"), evidenced
by the attached Warrant to Purchase Common Stock (the "Warrant"). Capitalized terms used herein and not otherwise
defined shall have the respective meanings set forth in the Warrant.

 

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

 

____________a
"Cash Exercise" with respect to _________________ Warrant Shares; and/or

 

____________a
"Cashless Exercise" with respect to _______________ Warrant Shares.

 

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

 

3. Delivery of Warrant
Shares. The Company shall deliver to the holder __________ Warrant Shares in accordance with the terms of the Warrant.

 

Date: _______________ __, ______

 

_________________________

Name of Registered Holder

 

By:_______________________

       Name: 

       Title:

 

    

    

    

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Exercise Notice and hereby directs Broadridge Investor Communication Solutions Inc. to issue the above indicated
number of shares of Common Stock in accordance with the Transfer Agent Instructions dated May __, 2017 from the Company and acknowledged
and agreed to by Broadridge Investor Communication Solutions Inc.

 

	 	AIR INDUSTRIES
GROUP

 

By:________________________________

Name:

Title:

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