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Exhibit 4.11

PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BECAUSE SUCH PORTIONS ARE BOTH NOT MATERIAL AND THE TYPE OF INFORMATION THAT ARE BOTH CUSTOMARILY AND ACTUALLY TREATED AS PRIVATE AND CONFIDENTIAL. THE OMISSIONS HAVE BEEN INDICATED BY ASTERISKS (“[***]”).

									
		ASML – SMT Business Agreement
	

Between
ASML Netherlands B.V.
and
Carl Zeiss SMT GmbH 

          

 ASML - SMT Business Agreement
						
	Preamble
	3

	I.    Behavior & Culture
	4

	1.    Principles
	4

	2.    Behavioral Rules
	4

	3.    Relationship Management
	4

	4.    Cultural Program
	4

	II.    Governance
	5

	1.    Overall Principle
	5

	2.    Roles & Responsibilities
	5

	3.    Decision Making Model
	6

	4.    Disagreements in Lithography Steering Committee
	7

	III.    Interaction
	8

	1.    Meeting Structure
	8

	2.    Specification Alignment
	9

	3.    Information Flow
	10

	IV.    Commercial
	11

	1.    Scope of Lithography Business
	11

	2.    Pricing Model
	11

	3.    Investment & Cash Support
	14

	4.    M&A
	17

	5.    Divestments
	20

	6.    Cost Allocation
	20

	7.    Transparency & Validation
	22

	8.    Historical Balances
	24

	9.    Payment Terms
	25

	10.    Accounting
	25

	11.    Tax
	25

	12.    Exceptional Events
	26

	V.    Competences, IP & Exclusivity
	27

	1.    Definitions
	27

	2.    Exclusivity
	28

	3.    Intellectual Property; Ownership & Licenses
	28

	4.    IP Disputes
	30

	VI.    Marketing, Quality, Sustainability
	30

	1.    Marketing
	30

	2.    Quality
	31

	3.    Sustainability
	31

	VII.    Miscellaneous
	31

			
	

    

          

						
	1.    Effectiveness
	31

	2.    Term and Termination
	32

	3.    Applicable Law
	38

	4.    Dispute Resolution
	38

	5.    Confidentiality
	39

	6.    Change of Control
	42

	7.    Insolvency Event
	42

	8.    Material Breach
	43

	9.    Assignment
	43

	10.    Other
	43

	APPENDIX I – ASML LITHOGRAPHY BUSINESS PLAN
	47

	APPENDIX II – FINANCIAL INFORMATION PRODUCT LIST
	48

	APPENDIX III – LITHOGRAPHY BUSINESS
	49

	APPENDIX IV – PRICING MODEL EXAMPLE*
	50

	APPENDIX V – FINANCIAL PLANNING PROCESS
	52

	APPENDIX VI – LOAN AGREEMENT TEMPLATE
	53

	APPENDIX VII – ILLUSTRATION OF M&A DECISION MAKING PROCESS
	54

	APPENDIX VIII – LIST OF INTERNAL COMPONENTS AND INTERNAL SERVICES
	55

	APPENDIX IX – TRANSPARENCY DOCUMENTATION
	85

	APPENDIX X –DEPRECIATION SCHEDULE
	93

	APPENDIX XI –ILLUSTRATION OF TERMINATION PROCESS
	94

			
	

    

          

						
	

Preamble

	ASML Netherlands B.V.,  a corporation organized under the laws of the Netherlands  (“ASML”) and Carl Zeiss SMT GmbH,  a corporation organized under the laws of Germany  (“SMT”) (jointly the “Parties”) have developed a highly successful and exclusive strategic cooperation in the field of lithography, based on a contractual framework comprising multiple agreements. ASML and SMT  intend to continue to cooperate in a more integrated manner, with the mutual intent to support and add value for their end customers, grow the Lithography Business (as defined below) for both Parties, and share the overall responsibility of this business towards the end customers (the “Two Companies – One Business” concept). Certain decisions affecting the Lithography Business shall be taken by mutual agreement, as further described in this Agreement. With respect to the Lithography Business, each Party acknowledges that a strong focus on the Lithography Business as compared to other business activities is important and that each Party can only be successful with the other Party.

The Parties agree that the main, longstanding principles underpinning the “Two Companies – One Business” concept are (i) fair sharing of risk and reward (ii) transparency and (iii) simplicity, which need to be redefined. The Parties now intend to achieve a higher level of trust and stronger alignment and introduce an additional principle: (iv) jointly driving growth and profitability of the Lithography Business through enhancing end customer value. By better aligning interests, the Parties will become more effective in their decision making and execution, which is important to better serve the end customers who are facing increasingly complex roadmaps and industry consolidation, and which will benefit the business of each Party.

Therefore, the Parties intend to agree to a new, integral agreement that shall supersede any and all existing agreements between the Parties, to the extent that provisions in such existing agreements would contradict provisions in this new integral agreement (the “Agreement”). The Agreement will include the following three – strongly interrelated and mutually supportive – core elements:

(i)A Behavior & Culture Model that fosters mutual respect and understanding between the Parties;
(ii)A Governance Model that enables the Parties to become more effective, and integrated in their decision making and the execution  of the strategy in the Lithography Business, and that reflects the integrity and autonomy of the two Parties within their respective Roles & Responsibilities (as defined below); and 
(iii)A Commercial Model that inherently achieves increased trust through better aligning interests and establishing a price setting mechanism. 

			
	

    

          

						
	I.Behavior & Culture 

	1.Principles
	1.The Parties agree that mutual trust is key to the success behind the “Two Companies – One Business” concept. The Parties therefore commit to fostering a culture of innovation, collaboration, trust and respect as one of the key principles for their cooperation. 

2.The Parties shall:

(i)make best efforts to understand and respect the other Party’s position and culture;
(ii)treat the other Party with respect and integrity; and
(iii)leverage their respective corporate cultures to best serve the Lithography Business as well as the semiconductor industry in general.
  

	2.Behavioral Rules
	The boards of management of both Parties, shall in good faith, mutually define rules on the behavior regarding any engagement between the Parties (the “Behavioral Rules”), which shall be cascaded down in the respective Party’s organizations and which shall be adhered to by the Parties at all times. 

	3.Relationship Management
	1.Each Party shall appoint a manager who is responsible for promoting and supervising the Behavioral Rules within its company and acts as a liaison on this topic for the other Party (the “Relationship Manager”). In case of a breach of the Behavioral Rules, any employee can file a complaint with the Relationship Manager of its company.
 
2.The Relationship Manager shall first review the complaint. If it decides the complaint is warranted it shall discuss the complaint with the Relationship Manager of the other Party. The Relationship Managers shall make best efforts to jointly find a solution to address the complaint and to prevent breaches in the future.

3.In case the Relationship Managers are not able to find a joint solution, the Relationship Managers shall escalate the complaint to a dedicated board member of their respective companies. These dedicated board members shall in good faith discuss and resolve the issue.

4.The Lithography Steering Committee (as defined below) shall, on a bi-annual basis, review progress and the quality of the interaction, and any proposed recommendations as submitted by the Relationship Managers.

	4.Cultural Program
	The Relationship Managers shall mutually agree on a proposal for a joint program of activities to support the Behavioral Rules. 

			
	

    

          

						
	II.Governance 

	1.Overall Principle
	1.The Parties agree that, while needing closer alignment in order to achieve maximum value for the Lithography Business, they are separate, independent companies.

2.Certain decisions affecting the Lithography Business shall be taken by mutual agreement, as further described in this Agreement. Otherwise the Parties have autonomy to decide and execute within their respective Roles & Responsibilities.

	2.Roles & Responsibilities
	1.The Parties agree that ASML has the role and responsibilities of a system integrator and SMT has the role and responsibilities of a sub-system supplier, as further described in this Section (the “Roles and Responsibilities” or “R&Rs”).

2.ASML as system integrator:

(i)identifies areas to increase value for the mutual business and creates customer agreements ensuring compensation for the value generated;
(ii)holds overall responsibility for the system, the system architecture, serviceability and the related technical optimization trade-offs;
(iii)holds responsibility for any sub-systems except Core Components of SMT (as defined below) covering areas such as sub-system architecture, technical optimization/trade-offs (including interface and control of such sub-systems), and sub-system functionality; and
(iv)markets, delivers systems and service to end customers according to agreed specifications.

3.SMT as the sub-system supplier:

(i)supports initiatives to increase value for the mutual business and, where possible, brings in ideas to increase value;
(ii)holds responsibility for Core Components of SMT covering areas such as sub-system architecture, serviceability, technical optimization/trade-offs, and sub-systems functionality; and
(iii)delivers sub-systems and related service according to agreed specifications.

			
	

    

          

						
		

4.ASML and SMT share the responsibility for the Lithography Business to ensure performance and value agreed with the end customer at delivery and over the product lifetime. To this end, ASML and SMT jointly:

(i)take decisions in the Lithography Steering Committee as further described in this Agreement; and
(ii)agree on the SMT sub-system specification and its interface to the lithography system (including the access via an agreed standard interface to any integrated manipulation means in the sub-system) between Core Components of SMT and other parts of the lithography system, which are not Core Components of SMT, in order to ensure an optimal integration of the SMT sub-system. 

5.If the jointly agreed sub-system specification cannot be met or maintained, then further work by both Parties within their specific R&Rs is needed to understand the root cause of the problem, resolve the problem and deliver the solution to end customer to fulfill the shared responsibility of the Lithography Business.

6.Within its respective R&Rs and respecting the other Party’s R&Rs, each Party is responsible for, without limitation: 

(i)the implementation and execution of any decisions of the Lithography Steering Committee;
(ii)the selection of its suppliers;
(iii)the implementation and execution of investment decisions; and
(iv)the implementation and execution of cost-reduction programs.

	3.Decision Making Model
	ASML Lithography Business Strategy

1.Based on its understanding of the market needs, ASML will define the ASML strategy and roadmap for the Lithography Business (the “ASML Lithography Business Strategy”). 

Lithography Steering Committee

2.The Parties shall establish a joint steering committee with three representatives from each Party, including at least two members of the respective boards of management from each Party (the “Lithography Steering Committee”). 

			
	

    

          

						
	

	3.    The Lithography Steering Committee shall: 

(i)annually discuss the ASML Lithography Business Strategy including the expectations around the investments and returns for both Parties resulting from it (the “ASML Lithography Business Plan” as further specified in APPENDIX I); and
(ii)on a quarterly basis decide on the topics defined in this Section. The Lithography Steering Committee may delegate by mutual agreement any such decisions to any other representative committees as established by the Parties.

4.The Lithography Steering Committee shall mutually agree on any investment related to the Lithography Business, that is in the good faith opinion of either Party (based on the information available to such Party at that time) expected to represent [***] (”Strategic Investment”). 

5.The Lithography Steering Committee shall mutually agree on  any divestment of assets where [***] (“Strategic Divestment”).

6.The Lithography Steering Committee shall, with respect to the Core Components of SMT and Common Components (as defined below) and any other products supplied by SMT to ASML as part of the Lithography Business, mutually agree on: 

(i)Product and product roadmap requirements (such as performance, lifetime performance, serviceability, service concept, timing), taking into consideration the related estimated value, costs and investments; 
(ii)Long term operational capacity requirements, taking into consideration the related estimated costs and investments;
(iii)Product lead time and flexibility requirements, taking into consideration the related estimated costs and investments; and
(iv)Product related sustainability requirements, taking into consideration the related estimated costs and investments.
(the “Requirements”)

7.In case of any significant deviation:

(i)relating to the ASML Lithography Business Strategy or the ASML Lithography Business Plan, the Lithography Steering Committee shall discuss the deviations and the resulting impact on the ASML Lithography Business Plan; or
(ii)relating to a Strategic Investment or the execution of a Requirement  or  the underlying assumptions such as the related estimated value, costs and investment, the Parties shall jointly try to find a solution in accordance with the relevant decision making process as defined in Section II.3, paragraph 4 and 6, while continuing the execution for a period of three months. In case the Parties do not find a solution within said period, the Lithography Steering Committee shall mutually agree on the relevant Strategic Investment or Requirement, in accordance with Section II.3, paragraph 4 and 6 as applicable.

			
	

    

          

						
	4.Disagreements in Lithography Steering Committee
	Requirements

1.In the event a disagreement on any Requirement is primarily related to the unwillingness or inability of one Party to provide the necessary funding for said Requirement, the other Party shall, upon request, offer to support with such funding in accordance with Section IV.3.  The former Party may reject such offer at its discretion and maintain its disagreement with respect to the Requirement.

2.If the Parties fail to reach mutual agreement within the Lithography Steering Committee on any Requirement, the Parties shall each identify one representative from within the Lithography Steering Committee with the mandate to within three (3) months resolve the disagreement in good faith. The representatives can either agree on the original Requirement, on a revised Requirement, or the Requirement shall be dropped.

Non-Agreed Strategic Investments

3.If the Lithography Steering Committee fails to reach mutual agreement on a Strategic Investment (a “Non-Agreed Strategic Investment”), either Party may request a debate in which the Parties shall substantiate their positions.  

4.In the event a disagreement on any Non-Agreed Strategic Investment is primarily related to the unwillingness or inability of one Party to provide the necessary funding for said Non-Agreed Strategic Investment, the other Party shall, upon request, offer to support with such funding in accordance with  Section IV.3. The former Party may reject such offer at its discretion and maintain its disagreement with respect to the Non-Agreed Strategic Investment.

5.In the unlikely event that the Parties fail to resolve their disagreement of a Non-Agreed Strategic Investment, [***].

			
	

    

          

						
	III. Interaction 

	1.Meeting Structure
	1.The Parties can by mutual agreement establish meetings for supporting and aligning on the execution of the Lithography Business and for any decision-making delegated by the Lithography Steering Committee. These meetings shall be reviewed and updated on a regular basis by the Parties by mutual agreement.

2.As of signing of this Agreement the Parties shall establish the following committees (“Relevant Meetings”). 

3.All Relevant Meetings shall operate within the mandate and boundaries as set out below and as may be further defined by the Lithography Steering Committee, respecting each Party’s respective R&Rs. Any deadlocks in the Relevant Meetings on decisions mandated by the Lithography Steering Committee shall be escalated to the Lithography Steering Committee for resolution.

A.The Product Policy Meeting: In this meeting, ASML shall elaborate on the market requirements, and the resulting product strategy and roadmap of the Lithography Business. SMT and ASML shall discuss the ASML product strategy and roadmap, and the product and roadmap implications for SMT related to the Core Components and other relevant products as basis for the relevant Lithography Steering Committee decisions. This meeting takes place on a quarterly basis. 

B.The Business Line Review Meeting for each of EUV 0.33NA, EUV 0.55NA and DUV: In these meetings, market/customer review, installed base review, product business plan and product execution review (incl. issue resolution) shall be addressed. These meetings shall take place on a two (2) monthly basis.

C.The Interface Meeting (“IFM”): In this meeting, the technical progress and execution of the relevant portfolio of the Lithography Business shall be reviewed, including roadmap/technology execution and related decisions. This meeting takes place five (5) times a year, and is followed by a management meeting which serves as primary escalation meeting for the IFM.

D.The Joint Operational Review Meeting (“JORM”): In this meeting, the operational progress of the output and infrastructure requirements shall be reviewed, and operational challenges (quality, logistics, capacity, demand, supply, customer support) shall be aligned on. This meeting takes place on a quarterly basis.

E.The Financial Planning Meeting (“FPM”): In this meeting (i) the Financial Planning Process shall be coordinated, including requirements related to the exchange of financial information, (ii) the financial materials used for decision making in the Lithography Steering Committee shall be coordinated, and (iii) pricing shall be determined in accordance with the mechanism as described in Section IV.2 (Pricing Model). This meeting takes place on a quarterly basis.

			
	

    

          

						
	2.Specification Alignment
	1.Based on the decision on Requirements provided by the Lithography Steering Committee, ASML and SMT shall mutually align on detailed Specifications (as defined below) or any change to the Specifications. Any Specifications which cannot be aligned on shall be escalated to the Lithography Steering Committee. 

2.Every product supplied by SMT to ASML shall be defined by (a) the Element Performance Specification (EPS), (b) the “Abnahme” specification and if required and agreed (c) the Optical Column Warranty Sheet (OCWS) (“Specification”)

3.ASML and SMT shall apply the guidelines for the established way of working between both Parties to agree on the Specifications, reflected in the “Agreement ASML / ZEISS – EPS, Pre-SAT WS and OCWS Guidelines updated as of 12/19/2019,  Document ID: D000799624” for DUV and EUV 0.33NA (“Specification Guideline”) which may be amended by mutual agreement by the Parties.

4.ASML and SMT agree to review and adjust the Specification Guideline to include EUV 0.55NA and any other applicable products which may be amended by mutual agreement. 

5.Any change to the Specifications shall be handled according to the then current version of the  established “PRD ENGINEERING CHANGE PROCESS BETWEEN ASML AND ZEISS SMT as of 2020-03-13,  Document ID: D000379563-10-PRD-001”process for DUV and EUV 0.33NA and EUV 0.55NA  which may be amended by mutual agreement.

			
	

    

          

						
	3.Information Flow
	1.The Parties commit themselves to a free flow of information (including technical and financial information) to the extent that is required:
 
(i)for the joint decision-making by (or delegated by) the Lithography Steering Committee as further described in this Agreement; or
(ii)for the execution of the Lithography Business by each Party within its R&Rs; or;
(iii)once per year ultimately by October 31 of each year, with respect to the products listed in APPENDIX II (as may be updated by the Parties from time to time with mutual agreement) to ensure compliance with the Applicable Accounting Standards:
• [***]
•Including a split of EUV Optical Columns into POB and Illuminator
•Excluding service parts
(iv)for product business plans which are the basis for decisions in the Lithography Steering Committee , and once per year in the first week of May (or a different moment as may be agreed by the Parties) for the update of existing product business plans that should cover all products specified in Appendix II (as may be updated by the Parties from time to time with mutual agreement), [***].

(the “Relevant Information”). 

2.The Relevant Information shall be shared between the Parties timely and openly, subject to the provisions with respect to confidentiality in Section VII.5., and the provisions on sensitivity of financial information in Sections IV.4.10 and IV.7.6. Furthermore, the Relevant Information shall not encompass any third party competitively sensitive information.

3.Each Party shall provide Relevant Information to the other Party upon its request. 

4.In case of any disagreement with respect to either Party’s request for information as described above, the Parties shall first escalate their disagreement to the committee/meeting most relevant to the subject matter, such as the committees/meetings defined in Section III.1. If the Parties fail to resolve the disagreement in the respective committee, the disagreement shall be escalated to the Lithography Steering Committee.

			
	

    

          

						
	IV.Commercial

	1.Scope of Lithography Business 
	1.The “Lithography Business” is defined as:

(i)Optical lithography systems, including any components forming an integral part and required for achieving specifications of such systems; 
(ii)Any service and service parts for optical lithography systems;
(iii)Any options or upgrades improving the specifications of optical lithography systems (e.g. throughput and overlay); and
(iv)Any interface or model connected to optical lithography systems in a manner which uses information that is not available to third parties.

2.The products captured by the Lithography Business as sold by the Parties at the moment of signing of this Agreement, are included in APPENDIX III. ASML and SMT represent that their respective products listed in Appendix III under “Products excluded from the Lithography Business” do not fulfill any of the criteria described in paragraph 1. (i) – (iv) above.

3.The Parties shall mutually agree on any changes to the above mentioned definition of the Lithography Business.

	2.Pricing Model 
	1.ASML and SMT agree to apply, with retroactive effect as of the ASML FY 2021 and the SMT FY 2020/2021, a pricing model for any product and service delivered by SMT to ASML as part of the Lithography Business (“SMT Product”) based on [***]. 

2.Therefore, ASML and SMT shall, based on the ASML Lithography Business Plan, determine and thereafter regularly review the prices for the SMT Products as described in the following paragraphs (the “Pricing Model”).

[***] 

			
	

    

          

						
	3.Investment & Cash Support
	Prepayments on materials

1.The Parties agree that ASML shall make prepayments to SMT for products to be supplied by SMT to ASML as part of the Lithography Business as follows: 

(i) For EUV 0.55NA products which are ordered before 1 January 2021, and for any other products existing prior to the moment of signing this Agreement, regardless when ordered: amounts and schedule according to the existing prepayment mechanism as defined between the Parties before the moment of signing of this Agreement;

(ii) For EUV 0.55NA products which are ordered after January 1, 2021, and for any other products not yet  existing prior to the Effective Date of this Agreement: amount equal to the material cost that SMT needs to pay to its suppliers, according to a schedule following the principle set out in paragraph 2 below.

2. [***] The amount and timing of the material prepayments by ASML to SMT, less any payments from SMT to its suppliers, shall not have a significant positive but in any case not a negative FCF (as defined below) impact for SMT. In order to enable this, SMT shall provide ASML with the material cost expenditure profile for the respective product, broken down into a proposal for up to a maximum of 4 prepayments. [***]

Financing of CAPEX investments 

3. Upon the request of SMT, ASML agrees to financially support SMT with its costs and expenses for property, plant and equipment (PPE) that SMT shall use for the benefit of the Lithography Business (the “Investments”) under the conditions as defined below. These facilities and capital equipment shall be wholly owned by SMT or an Affiliate of SMT.

4. If the amount of Investments in a period calculated based on the sum of two (2) years, being the forecast for the current SMT financial year and the actuals of the SMT financial year preceding the current financial year, less any financial support provided by ASML pursuant to this Section in said period (the “Investment Period”) [***]. The Parties shall annually review the actuals against the forecasts and shall adjust for any deviations.

5. The financial support by ASML as referred to in paragraphs 3 and 4 above, shall, upon the request of SMT, be provided in the current SMT financial year in a form of a loan, according to the terms and conditions to be agreed on in a separate agreement with the following agreed core elements, unless otherwise agreed upon in the loan agreement (the “Loan Agreement”):

			
	

    

          

						
		(i) 10 year-term loans; 
(ii) interest rate based on [***], capped at 1%;
(iii) 3-year grace period for repayments and linear thereafter, except in case of impairment (see below under iv).
(iv) If, during the term of this Agreement, SMT recognizes an impairment of an asset that has been financed with a loan, SMT shall repay to ASML the share of ASML in accordance with [***] ;
(v) voluntary prepayment option (without penalty); 
(vi) [***];
(vii) governed by German law; and 
(viii) the loan will be designed in a manner to satisfy relevant accounting and regulatory requirements and the Parties will exercise best efforts to agree on its characteristics (such as the person of the lender/borrower and the ranking of the loan and the guarantee) to accommodate this objective. 

If the maximum loan commitment of a Loan Agreement has been reached, the Parties shall, in accordance with this paragraph 5 above, enter into an additional Loan Agreement. 

6. The Parties will exercise best efforts to agree on a template of the Loan Agreement which will be attached to this Agreement as APPENDIX VI after mutual agreement by the Parties on such template. 

7. [***]

Cash Support

8. At the request of SMT, ASML shall, before the end of any financial year of SMT, provide cash support to SMT for such amount as may be necessary for SMT to maintain an Adjusted FCF  from the Lithography Business over that year of at least  [***]

	4.M&A 
	[***]

	5. Divestments
	1.Any gains or losses under the Applicable Accounting Standards related to divestments of assets in scope of the Lithography Business [***]

2.Any gains or losses relating to divestments of assets of (parts of) Acquisitions that have not been implemented in the Lithography Business [***]

	6.Cost Allocation 
	[***]

			
	

    

          

						
	7. Trans-parency & Validation
	Transparency
The Parties warrant that the following documentation provided by each Party as attached to this Agreement as APPENDIX IX is accurate and represents the initial situation as of signing of this Agreement:

[***] 

1.The following reports shall be provided yearly by each Party to the other Party:
[***]

Agreed Upon Procedures

2. The Parties agree that they have annual agreed upon procedures conducted by their own external auditors (“Agreed Upon Procedures”) as part of the regular year-end audit with the following scope:
[***]
3. The report of the Agreed Upon Procedures shall be provided by the audited Party to the other Party immediately after preparation of the audit report by the external auditor, however by end of February of each year the latest. [***]

4. With respect to the Agreed Upon Procedures, each Party proposes the process to be carried out by its auditor and agrees them with the other Party prior to engaging its auditor. Parties will agree on a reasonable materiality threshold for the Agreed Upon Procedures.  Each Party shall have the right to request changes to the process proposed by the other Party and to suggest reasonable additional procedures. The approval of such additional procedures shall not be unreasonably withheld by the other Party.

Escalation 
5. In case of significant concerns with respect to the items covered in the Agreed Upon Procedures as described in paragraph 3 above,  resulting from the Agreed Upon Procedures or otherwise, each Party shall be entitled to request, not more than once a year, an auditor, to be selected at its discretion, to perform additional agreed upon procedures thereon (“Special Audit”). The latter Party shall bear the cost of the Special Audit, unless a material non-compliance is identified, [***]. In such case the audited Party shall bear the cost of the Special Audit. 

Compliance
6. The Parties shall agree on appropriate protocols to exchange the financial information necessary to execute the arrangements as set forth in Chapter IV. Commercial, including the information referred to in this Section, in a compliant manner.

			
	

    

          

						
	8.Historical Balances
	1.Instead of the repayment mechanism for any RBA HiNA Investment Down-payment and any HiNA Investment Down-payment paid to SMT up to and including  September 30, 2020  pursuant to the High NA Development Agreement of 2 November 2016 (which will not longer exist following the termination of said agreement upon signing of this Agreement, as described in Section VII.1) (the “Historical Repayment Mechanism”),  these payments shall be repaid to ASML through [***]

2.For the avoidance of doubt, upon termination of this Agreement, the Historical Repayment Mechanism shall remain terminated and ASML shall, subject to the terms and conditions set forth in this Agreement, be entitled to impair any of the underlying assets as part of the mechanism regarding the final settlement as described in Section VII.2, paragraph 16.

3.The payments made by ASML under the High NA Development Agreement after September 30, 2020 will be considered as prepayments [***]
4.For avoidance of doubt, the RBA HiNA R&D NRE Payment and HiNA R&D NRE Payment as defined in the High NA Development Agreement of 2 November 2016 from ASML before September 30, 2020 will not be repaid and are considered expensed as agreed in the High NA Development Agreement. 

5.All other amounts prepaid by ASML to SMT, such as payments under ERBA 1 and ERBA 2, are unaffected by this agreement and will be further addressed in a ‘Support Letter’. 

6.Any existing agreements regarding warranty obligations of SMT for SMT Products shall continue to apply and may only be amended subject to mutual agreement by the Parties 

			
	

    

          

						
	9.Payment Terms
	1.The existing payment terms between the Parties shall continue to apply.  Deviations to the payment terms described below can be discussed between the Parties in good faith. 

2.ASML shall not need to pay any invoices due during [***]. However, immediately following such period, ASML shall settle all accounts payable with SMT. 

3.During [***] SMT shall be entitled, at its discretion, (i) to request immediate payment of any invoiced accounts receivables, even if they are not due, or (ii) postpone receipt of any payments from ASML. However, immediately following such period, ASML shall settle all accounts payable with SMT. The general payment term will be [***].

	10.Accounting
	1.The Parties agree that the following accounting standards apply: for ASML US GAAP, for SMT IFRS (the “Applicable Accounting Standards”).

2.In the event of a change in the Applicable Accounting Standards with respect to a Party, and such change has an expected impact of [***] of such Party, it shall immediately inform the other Party of such change and the expected impact.
3.If a Party intents to change the manner in which it applies the Applicable Accounting Standards, and such application has an impact of [***] of such Party, the consent of the other Party is required for such change. [***]. 

			
	

    

          

						
	11.Tax 
	1.For the avoidance of doubt, other than the SMT Products, the Parties shall not transfer any assets pursuant to this Agreement, including any intangible assets such as IP (except for transactions according to Section V.3) or Goodwill.

2.In compliance with all applicable tax and transfer pricing laws and regulations, the Parties shall support each other on the VAT and transfer pricing related documentation and substantiation related to the commercial arrangements under this Agreement. In case the Parties cannot reach agreement on such support, the Parties shall refer such matter to the Lithography Steering Committee, which shall finally discuss and agree on such matter. 
 
3.The Parties agree that any taxes, including penalties and interest costs, shall [***]
 
4.Neither Party shall be liable for the other Party's or its Affiliates’ taxes, including corporate income tax assessed as a result of or in connection with this Agreement or the transactions contemplated by this Agreement.
 

	12.Exceptional Events
	1.In case of any ‘force majeure’ event impacting a Party’s and/or its Affiliates’ assets relating to the Lithography Business representing [***] (act of God such as fire, strike or other labor disturbance, flood, epidemic, earthquake, volcanic activity, quarantine restriction, war, riot or act of terrorism) (“Force Majeure Threshold”), the direct financial impact/effect of such event (including the direct loss, damages, fines and any connected legal fees/costs) exceeding the Force Majeure Threshold shall be born [***].

2.In case of any legal issues (including any government investigations, proceedings, administrative or civil litigation), the direct financial impact/effect resulting from such issues (including the direct loss, damages, fines and any connected legal fees/costs) shall be born [***]

3.The Parties shall support each other using commercially reasonable efforts to mitigate and recover from the consequences of the ‘force majeure’ events referred to in paragraph 1 above, including through funding in accordance with Section IV.3.

4.The Parties shall mutually agree, on a case by case basis, on the parameters for sharing the impact of Included Exceptional Events.

			
	

    

          

						
	V.Competences, IP & Exclusivity

	1.Definitions
	1.Core Competencies of SMT are:

(i)Know how, processes and devices for designing, manufacturing, assembling, adjusting, measuring, qualifying (not in resist) and, for Collector, cleaning of the below-mentioned Core Components of SMT. 

2.Core Components of SMT are:

(i)Illumination systems for optical lithography systems, [***]; 
(ii)Projection systems for optical lithography systems, [***];  
(iii)Collector for optical lithography systems, [***].

3.Core Competencies of ASML are:

(i)Know how, processes and devices for designing, manufacturing, assembling, adjusting, measuring and qualifying of the below-mentioned Core Components of ASML.

4.Core Components of ASML are:

(i)Optical lithography systems, [***]; 
–excluding reticles and wafers,
–including EUV light sources,
excluding the Core Components of SMT and the Common Components defined below. 

5.Common Components are:
(i)[***].

6.SMT Exclusive Field shall mean the SMT Core Components. 

7.ASML Exclusive Field shall mean ASML Core Components. 

8.Combined Exclusive Field shall mean the ASML Exclusive Field and the SMT Exclusive Field.

	2.Exclusivity
	1.No Party shall manufacture or have manufactured the other Party’s Core Components. 

2.No Party shall sell or have sold, deliver or have delivered the other Party's Core Components to third parties, except that ASML may sell SMT’s Core Components supplied by SMT as part of complete lithography systems.

[***]

			
	

    

          

						
	3.Intellectual Property; Ownership & Licenses 
	1.Definitions:

(i)“IP” shall mean Information and Patents. 
(ii)“Information” shall mean all information owned and/or controlled by a Party and/or its Affiliates, including but not limited to Inventions, know-how, trade secrets, technology, applied research engineering data and information, drawings, designs and systems, computer software, report, documents, papers, files and data in any form related thereto.
(iii)“Patents” shall mean all patents, utility models, patent applications, utility model applications (including divisionals, continuations, continuations-in-part, reissues, renewals, amendments, re-examinations or extensions thereof), invention certificates and registered designs in any jurisdiction in the world owned and/or controlled by a Party and/or its Affiliates.
(iv)“Inventions” shall mean concepts eligible for protection by Patents. 

2.Except as set forth in paragraphs 8 and 9 below, IP (Information and Patents) shall be owned by the Party or the Parties whose employee(s) and/or contractor(s) originated such IP. 

[***]

	4.IP Disputes
	1.The Parties acknowledge that resolving IP litigation with third parties relating to the Lithography Business (“Lithography Business IP Disputes”) requires transparency and open communication between the Parties;

2.In this connection, each Party shall notify the other Party of any such actual Lithography Business IP Disputes.

3.The Lithography Steering Committee shall decide the allocation of case management of Lithography Business IP Disputes based on the relevance of each Party’s respective Core Components for such Lithography Business IP Disputes. Each Party shall make available their respective Patents as reasonably required for resolving the Lithography Business IP Disputes.  In case the Core Components and the Patents of a Party are not relevant to the  Lithography Business IP Disputes, such Party will not participate in the case management, but shall be entitled to regular briefings on the progress of such Lithography Business IP Disputes.

[***]

			
	

    

          

						
	VI.Marketing, Quality, Sustainability

	1.Marketing
	1.ASML shall expressly mention SMT (i.e. the ZEISS brand) in its marketing activities and promote that SMT optical systems are part of ASML ́s lithography systems.

2.SMT shall expressly mention ASML in its marketing activities and promote that SMT optical systems are part of ASML ́s lithography systems.

3.ASML shall affix to all its lithography systems containing an optical system from SMT, the then current ZEISS logo which shall be provided by SMT in a manner that is clearly visible to the end customer.

4.ASML and SMT may jointly present the above-mentioned products to the ASML end customers at end customers sites.

	2.Quality
	1.The “Quality First Way of Working” document applies, reflecting the quality mindset and aspiration of ASML and SMT. 

2.ASML and SMT shall align on quality targets and roadmap to meet those targets at least once per year. ASML and SMT shall also review at least once per year the resulting quality performance at the end customer and align on revised quality targets and roadmap.

3.With respect to quality, the Parties shall discuss and timely align upon:
•    Validation of designs;
•    Product verifications;
•    Verification methods and equipment;
•    Optical system test methods and test procedures (at SMT and ASML);
•    How rules and regulations for solving quality problems shall be applied;
•    Quality records; and
•    Feedback methods
which shall be executed in line with each Party’s R&Rs as described in Section II.2. 

	3.Sustainability
	The Parties recognize the increasing importance of corporate sustainability and agree to work towards improving sustainability. The Parties recognize the opportunity to work together to realize ambitious sustainability targets. To this end, the Parties shall exchange sustainability requirements which shall be reviewed, discussed, and result into sustainability targets mutually agreed by the Lithography Steering Committee.

			
	

    

          

						
	VII.Miscellaneous

	1.Effectiveness
	1.The Agreement is concluded under the following conditions precedent (aufschiebende Bedingungen) to be fulfilled by August 31, 2021 the latest:

(i)That the Parties agree on a template of the Loan Agreement, including any ancillary documentation as the Parties hereto may deem fit, which will be attached to this Agreement as APPENDIX VI after mutual agreement by the Parties in relation thereto. For the avoidance of doubt, the Parties shall negotiate such documentation in good faith, but shall be free to assess the commercial, legal, tax, accounting, regulatory and other risks and opportunities as they deem fit and consequently, shall be under no obligation whatsoever to actually agree on such documentation; 
(ii)all written opinions (based on the signed version of this Agreement and the agreed template of the Loan Agreement, including any ancillary documentation as the Parties hereto may deem fit) by the auditor firms, tax advisors and legal consultants of each Party have been exchanged between the Parties and either Party has confirmed in writing that the opinions provided by the other Party sufficiently confirm that all conditions to avoid materialization of any of the events described in Section VII.2. paragraph 14. (i), (iii) and (iv) are met; and
(iii)either Party has obtained any board and/or supervisory board resolutions which may be required.
2.Unless the Parties have agreed on an extension of the time period specified paragraph 1 above, each Party shall be entitled to rescind (zurücktreten) the Agreement by written declaration to the other Party if the condition precedents described in paragraph 1 above have not been fulfilled by 31 August, 2021 (24:00 hours CET).

3.This Agreement shall go into effect as of the end of the day on which both Parties confirm in writing that all conditions precedent as described in paragraph 1. above have been fulfilled (“the Effective Date”). 

4.The Parties agree that the Agreement shall supersede any and all agreements between the Parties covering the same subject matter or contradicting the terms of the Agreement and that the Agreement shall terminate the following agreements: 
•The agreement signed on November 25, 1997 (the "1997 Agreement")
•The agreement signed on March 17, 2000 (the "2000 EUV Agreement")
•The agreement signed on October 24, 2003 (the "2003 Agreement")
[***]
•The agreement titled ‘High NA Development Agreement’ of November 2, 2016 (“High NA Development Agreement”)
[***]

			
	

    

          

						
	2.Term and Termination
	Term

1.The Agreement shall have an indefinite term.

Parachute

2.Each Party may terminate the Agreement by submitting a prior written notice to the other Party, which termination will be effective at the end of the month following  one (1) year after submitting said notice, unless the Parties agree on a different effective termination date. 

3.The aforementioned termination may be for any reason, except for a period of two (2) years after signing of this Agreement, during which period termination shall be only possible if continuation of the Agreement would have an unforeseen materially adverse impact on the terminating Party.

4.The Parties agree that the principle of continuing the business relationship between the Parties applies during the entire termination process as described in this Section. 

Replacement Agreement Negotiation

5.Upon receipt of the termination notice as referred to in paragraph 2, the Parties agree to immediately engage in good faith negotiations, led by the Lithography Steering Committee, on an agreement replacing this Agreement (the “Replacement Agreement”). 

6.The Parties shall use best efforts to agree on the Replacement Agreement within six (6) months from the date of submission of the termination notice, unless the Parties agree on an earlier period (“First Negotiation Period”). 

7.The Replacement Agreement shall be based on the “Two Companies – One Business” concept and shall respect the exclusivity terms of Section V.2.

8.The Parties agree to use the 1997 Agreement, the 2000 EUV Agreement, the 2003 Agreement and the 2013 Agreements, as important reference points in negotiating the Replacement Agreement. 

9.If the Parties fail to agree on a Replacement Agreement, immediately after the First Negotiation Period they shall request  the Chairmen of the Supervisory Boards of ASML Holding N.V. and Carl Zeiss AG each to appoint an individual  with an explicit mandate from ASML and SMT respectively to define a Replacement Agreement for the Parties’ future cooperation, including a replacement commercial arrangement (“Mandated Representatives”).

			
	

    

          

						
		10. The Mandated Representatives shall be appointed within 2 weeks and shall use best efforts to define a Replacement Agreement before the effective termination date of the Agreement (the “Second Negotiation Period”). 

11. Each Party shall submit to both Mandated Representatives (1) the reasons underlying the termination of this Agreement, (2) the principles and terms and conditions for a Replacement Agreement that they agree on, (3) the principles and terms and conditions for a Replacement Agreement that they were not able to agree on, (4) a proposal for a Replacement Agreement that aims to resolve the disagreements between the Parties.

12. The Mandated Representatives shall use the 1997 Agreement, the 2000 Agreement, the 2003 Agreement and the 2013 Agreements as reference points in their discussions. 

Termination for cause

13. A Party may terminate this Agreement with immediate effect in case of:

(i)an Insolvency Event with respect to the other Party; or
(ii)a Material Breach of Obligations by the other Party; or
(iii)a Change of Control of the other Party; or
(iv)at least two Special Audits within a timeframe of three (3) years confirming substantially similar instances of non-compliance by the other Party that have a material impact on the Adjusted EBIT of either Party.

Termination for ‘regulatory force majeure’

14.If there is a significant risk that any of the following events will occur, the Parties will in good faith negotiate on an appropriate solution to prevent said event from materializing.

[***]

In case no such solution is found, the Agreement may be terminated by SMT in case of (i), (iii) and (iv), by ASML in case of (iv) and by either Party in case of (ii), effective immediately prior to the moment that the event would otherwise have materialized.

15.An illustration of the content described in this Section VII.2 paragraph 2-14 is attached as APPENDIX XI.

			
	

    

          

						
		Effects of Termination

[***]

After the effective date of termination, the Parties shall in any event continue to:

(i)apply the “Two Companies – One Business” concept;
(ii)adhere to the principle of continuing the business relationship between the Parties, by continuing to do business with each other in order to meet end customer demand (i.e. SMT to continue to supply existing SMT Products to ASML, and ASML to continue to procure such products from SMT subject to fair commercial conditions to be agreed on between the Parties); and
(iii)be bound by the provisions regarding Exclusivity according to Section V.2 of this Agreement.

	3.Applicable Law
	This Agreement shall be governed by and construed in accordance with the laws of the Federal Republic of Germany under exclusion of the international conflict of law’s provisions thereof. The United Nations Convention on the International Sale of Goods of 11 April 1980 shall not be applicable.

			
	

    

          

						
	4. Dispute Resolution
	Management Escalation

1.The Parties agree to use best efforts to amicably settle any dispute, controversy or claim arising out of or in connection with this Agreement (“Dispute”), by first escalating such Dispute to the management boards of both Parties. 

2.For the avoidance of doubt, the fact that Parties disagree on matters where the Agreement requires mutual agreement, shall not be considered a Dispute in itself. 

Mediation

3.Any Dispute, that is not settled amicably through the management escalation as described above shall be settled by mediation under the Netherlands Arbitration Institute (NAI) Rules of Mediation.

Arbitration

4.Any Dispute, that is not settled through mediation as describes above shall be finally settled by arbitration under the Netherlands Arbitration Institute (NAI) Rules of Arbitration, with the possibility of instituting arbitral appeal under said rules.

Dispute Process

5.The Parties agree that:

(i)the place of mediation/arbitration shall be Amsterdam, the Netherlands;
(ii)the language to be used in the mediation/arbitration proceedings shall be English;
(iii)the material laws to be applied by the mediator/arbitrators shall be those of the Republic of Germany with the exclusion of the United Nations Convention on Contracts for the International Sale of Goods (CISG) of April 11, 1980;
(iv)with respect to mediation, the Parties shall jointly appoint one mediator who may not be a citizen of a state where any of the Parties has its principal place of business;
(v)with respect to arbitration, the number of arbitrators shall be three and the chairman thereof may not be a citizen of a state where any of the Parties has its principal place of business. Any arbitrators selected based on the above mentioned procedure shall remain competent if further arbitration proceedings are started within two years of the settlement of the Dispute.

			
	

    

          

						
	5.Confidentiality
	1.Both Parties agree that the following terms shall be applicable to all meetings and communications between employees and/or representatives of ASML and SMT as well as of their Affiliates as defined below in connection with the business relationship between ASML and SMT, specifically in the field of the Lithography Business and in any other field of business activities between ASML and SMT, hereinafter called the “Authorized Purpose”.

2.The term Affiliate shall mean any corporation, company or other entity which: (i) is Controlled by a Party; (ii) Controls a Party; or (iii) is under common Control with a Party. Control is assumed when more than fifty percent (50%) of the controlled entity’s shares or ownership interest representing the right to make decisions for such entity are owned or controlled, directly or indirectly, by the controlling entity. An entity is considered to be an Affiliate so long as such ownership or control exists.  Notwithstanding the foregoing sentences of this paragraph 2, Carl Zeiss AG and ASML Holding N.V. respectively shall be deemed to be the ultimate parent companies having Control over SMT and ASML respectively.

3.Any Party as well as its Affiliates (for the purpose of this Section hereinafter called “Disclosing Party") may disclose certain information to the other Party as well as its Affiliates (for the purpose of this Section hereinafter called “Receiving Party") with respect to the Authorized Purpose in writing, orally and/or otherwise. Such information may be, without limitations, in the form of business and/or financial records, presentations, specifications, samples, photographs, drawings or other documents and such information shall in particular include (by way of example) the following information concerning the Disclosing Party’s Core Components:
- technical features, such as optical features
- characteristics and specifications
- processes and technologies
- test results.
All information so disclosed is hereinafter referred to as “Confidential Information".

4.All Confidential Information, which shall include any derivative therefrom, or translation, abridgement, adaptation or other change thereof by ASML or SMT, shall be the property of the Disclosing Party.

5.The Disclosing Party shall provide all Confidential Information on an „as is" basis, without any warranty whatsoever, whether express, implied or otherwise, regarding its accuracy, completeness or otherwise, and Disclosing Party shall not be liable for any direct, special, incidental, consequential or other damages.

6.The Receiving Party shall return all Confidential Information and any copies thereof to the Disclosing Party immediately upon the Disclosing Party’s first written request.

			
	

    

          

						
		7. The Parties agree that, unless the Disclosing Party gives its prior written authorization, the Receiving Party shall, after disclosure of any Confidential Information hereunder:

(i)Not use the Confidential Information for any other purpose than for the Authorized Purpose. 

(ii)Protect the Disclosing Party's Confidential Information against disclosure in the same manner and with the same degree of care, with which it protects confidential information of its own, but not less than a reasonable degree of care;

(iii)Limit circulation of the Confidential Information disclosed by the Disclosing Party to such employees of the Receiving Party that have a need to know in connection with the Authorized Purpose and only if such employees are bound by written non-disclosure agreements whose terms are no less stringent than the ones in this Agreement. In case of doubt the Receiving Party agrees to request the Disclosing Party for the Disclosing Party’s opinion. 

8.The Parties acknowledge that the Disclosing Party may be irreparably harmed if the Receiving Party actually violates or threatens to violate its confidentiality obligations under this Agreement. Therefore, in the event of such actual or threatened violation the Disclosing Party shall be entitled to an injunction or any other appropriate steps regarding any actual or threatened violation by the Receiving Party or its employees.

9.The Parties agree that information disclosed by the Disclosing Party to the Receiving Party pursuant to this Agreement which would otherwise be Confidential Information shall not be deemed Confidential Information to the extent that the Receiving Party can prove by written records that said information:

(i) Is part of the public domain at the time of receipt or thereafter without violation of this Agreement;

(ii) Is known and on record at the Receiving Party prior to disclosure by the Disclosing Party;

(iii) Is lawfully obtained by the Receiving Party from a third party who is not bound by similar confidentiality obligations to the Disclosing Party;

(iv) Is developed by the Receiving Party completely independently of any such disclosure by the Disclosing Party;

(v) Is ascertainable from a commercially available product; or

			
	

    

          

						
		(vi) Is disclosed pursuant to administrative or judicial action, provided that the Receiving Party shall use its best efforts to maintain the confidentiality of the Confidential Information e.g. by asserting in such action any applicable privileges, and shall, immediately after getting knowledge or receiving notice of such action, notify the Disclosing Party thereof and give the Disclosing Party the opportunity to seek any legal remedies so as to maintain such Confidential Information in confidence.

If only a portion of the Confidential Information falls under any of the above subsections, then only that portion of the Confidential Information shall be excluded from the use and disclosure restrictions of this Agreement.

10.Nothing contained in this Section shall be construed as a grant by implication, estoppel or otherwise, of a license of any kind by the Disclosing Party to the Receiving Party e.g. to make, have made, use or sell any product using Confidential Information or as a license under any patent, patent application, utility model, copyright, maskwork right, or any other intellectual property right.

11.SMT and its Affiliates shall comply with all applicable securities laws and shall (a) refrain from trading in securities of ASML or its Affiliates on the basis of Confidential Information disclosed by ASML in a way that is inconsistent with securities law and (b) not incite others to effect transactions on the basis of such Confidential Information.

12.No Party shall (and shall ensure that none of its Affiliates and its and their respective agents, representatives or attorneys shall) originate any publicity, news release, or other public announcement, written or oral, relating to this Agreement without the prior approval of the other Party except as otherwise required by law. Such approval shall not be unreasonably withheld. For the avoidance of doubt, the Parties may disclose the terms of this Agreement to governmental authorities as required by any applicable law or the applicable rules or regulations of any securities exchange on which any of such Party’s securities are listed (in either case, as determined by such Party upon advice of counsel), provided that prior to any such required disclosure, the disclosing Party gives the non-disclosing Party reasonable advance notice of such disclosure, minimizes the scope of such disclosure (including by making redactions to documents provided as part of such disclosure and by cooperating with the non-disclosing Party to obtain protective orders) to the extent permitted under applicable law, and otherwise coordinates with the non-disclosing Party with respect to the scope of such disclosure.

13.Provisions 2-12 of this Section shall survive termination of this Agreement.
    

			
	

    

          

						
	6.Change of Control
	Change of Control shall mean in respect of a Party if  (i) that Party sells, leases or exchanges a material portion of its assets, (ii) that Party merges or consolidates with or into another Person, or (iii) a change in Control (as defined in Section VII.5 paragraph 2) of that Party occurs. As used herein, “Person” shall mean any individual, partnership, corporation, trust, limited liability entity, unincorporated organization, association, governmental authority or any other entity.

			
	

    

          

						
	7.Insolvency Event
	1.“Insolvency Event” shall mean in respect of a Party if that Party:
 
(i)is dissolved (other than as a result of a consolidation, amalgamation or merger); 
(ii)admits in writing its inability generally to pay its debts as they become due; 
(iii)makes a general assignment, arrangement or composition with or for the benefit of its creditors; 
(iv)institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organization or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, in each case other than by way of an Undisclosed Administration, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official; 
(v)has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition is instituted or presented by a person or entity not described in paragraph (iv) above and 
a)results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; or 
b)is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof; 
(vi)has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); 
(vii)seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee in bankruptcy, custodian or other similar official for it or for all or substantially all its assets, in each case other than by way of an Undisclosed Administration; 
(viii)has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter; 
(ix)causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (i) to (viii) above; or 
(x)takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.

			
	

    

          

						
		2.“Undisclosed Administration” shall mean, in relation to a Party, the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official by a supervisory authority or regulator under or based on the law in the country where that Party is subject to home jurisdiction supervision if applicable law requires that such appointment is not to be publicly disclosed.

	8.Material Breach
	1.“Material Breach of Obligations” shall mean if a Party is in breach of any of its obligations under this Agreement to an extent or in a manner which has a Material Adverse Effect.

2.“Material Adverse Effect” shall mean, in relation to the other Party, a material adverse effect on 
(i)the business, operations, property, condition (financial or otherwise) or prospects of such Party;
(ii)the ability of such Party to perform its obligations under this Agreement; or 
(iii)the validity or enforceability of this Agreement or the rights or remedies of the Parties thereunder.

	9.Assignment
	Neither Party may assign their rights or delegate or subcontract their duties under this Agreement to any third parties without the prior written consent of the other Party, such consent not to be unreasonably withheld.
	10.Other
	1.The invalidity or unenforceability of one or more provisions of this Agreement shall not lead to its invalidity overall. The Parties shall endeavor to replace invalid or unenforceable provisions by such valid and enforceable provisions that approximate as closely as permissible the commercial intent of the invalid or unenforceable provisions.

2.This Agreement and any amendments, supplements or the termination of this Agreement (including this written form clause) shall be valid only if made in writing. Stricter statutory form requirements shall remain unaffected. An amendment or supplement shall not become effective until signed by authorized representatives of both Parties.

- Signature Page to follow ---

			
	

    

          

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and delivered by their respective duly authorized representatives as of the Effective Date.

						
	ASML Netherlands B.V.
	By:	
	Name:	
	Title:	

						
	By:	
	Name:	
	Title:	

Signature page to ASML - SMT Business Agreement  
			
	

    

          

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and delivered by their respective duly authorized representatives as of the Effective Date.

						
	Carl Zeiss SMT GmbH
	By:	
	Name:	
	Title:	

						
	By:	
	Name:	
	Title:	

Signature page to ASML - SMT Business Agreement  
			
	

    

          

APPENDIX I
 
[***]
APPENDIX II 
[***]
APPENDIX III 
[***]
APPENDIX IV
[***]
APPENDIX V 
[***]
APPENDIX VI
[***]
APPENDIX VII 
[***]
APPENDIX VIII
[***]
APPENDIX IX
[***]
APPENDIX X
[***]
APPENDIX XI
[***]Exhibit 4.1

 

Form of Representative’s Warrant Agreement

 

THE REGISTERED HOLDER OF THIS
PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT AS HEREIN PROVIDED
AND THE REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE
WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY (180) DAYS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN (I) EF HUTTON,
DIVISION OF BENCHMARK INVESTMENTS, LLC, OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER
OR PARTNER OF EF HUTTON, DIVISION OF BENCHMARK INVESTMENTS, LLC OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

 

THIS PURCHASE WARRANT IS
NOT EXERCISABLE PRIOR TO [________________] [DATE THAT IS 180 DAYS FROM THE EFFECTIVE DATE OF THE OFFERING]. VOID AFTER 5:00 P.M.,
EASTERN TIME, [___________________] [DATE THAT IS FIVE YEARS FROM THE EFFECTIVE DATE OF THE OFFERING].

 

 

WARRANT TO PURCHASE COMMON STOCK 

 

VIVAKOR, INC.

 

Warrant Shares: _______

Initial Exercise Date: ______, 202__

 

THIS WARRANT TO PURCHASE COMMON
STOCK (the “Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after
____, 202__ (the “Initial Exercise Date”) and, in accordance with FINRA Rule 5110(g)(8)(A), prior to at 5:00 p.m. (New
York time) on the date that is five (5) years following the Effective Date (the “Termination Date”) but not thereafter,
to subscribe for and purchase from Vivakor, Inc., a Nevada corporation (the “Company”), up to ______ shares of common
stock, no par value per share (the “Common Stock”), of the Company (the “Warrant Shares”), as subject
to adjustment hereunder. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined
in Section 2(b).

 

Section 1. Definitions.
In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings indicated in this Section 1:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day
on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Effective
Date” means the effective date of the registration statement on Form S-1 (File No. 333-250011), including any related prospectus
or prospectuses, for the registration of the Company’s Common Stock and the Warrant Shares under the Securities Act, that the Company
has filed with the Commission.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

 

 

 

    	 	1	 

     

    

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company,
joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Trading
Day” means a day on which the Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date
in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, or the New York
Stock Exchange (or any successors to any of the foregoing).

 

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

  

Section 2. Exercise.

 

a)                 
Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may
designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly
executed facsimile copy (or e-mail attachment) of the Notice of Exercise Form annexed hereto. Within two (2) Trading Days following the
date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the Warrant Shares specified in the applicable
Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified
in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall
any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required. Notwithstanding anything
herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased
all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this
Warrant to the Company for cancellation within five (5) Trading Days of the date the final Notice of Exercise is delivered to the Company.
Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall
have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number
of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the
date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within two (2) Business Days of receipt
of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions
of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase
hereunder at any given time may be less than the amount stated on the face hereof.

 

b)                 
Exercise Price. The exercise price per share of the Common Stock under this Warrant shall be $_______[1],
subject to adjustment hereunder (the “Exercise Price”).

 

 

 

 

    	 	2	 

     

    

 

c)                 
Cashless Exercise. If there is not an effective registration statement registering the Warrant Shares, then in lieu of exercising
this Warrant by delivering the aggregate Exercise Price by wire transfer or cashier’s check, at the election of the Holder, this
Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall
be entitled to receive the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = as applicable:
(i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1)
both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant
to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(64) of
Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) the VWAP on the Trading Day immediately preceding
the date of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours” on a Trading
Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours”
on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such
Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the
close of “regular trading hours” on such Trading Day;

 

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

 

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

 

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

 

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

 

d)                
Mechanics of Exercise.

 

i.           
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by its
transfer agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository
Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in
such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale
of the Warrant Shares by Holder, or (B) the Warrant Shares are eligible for resale by the Holder without volume or manner-of-sale limitations
pursuant to Rule 144 and, in either case, the Warrant Shares have been sold by the Holder prior to the Warrant Share Delivery Date (as
defined below), and otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the
Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified
by the Holder in the Notice of Exercise by the date that is two (2) Trading Days after the delivery to the Company of the Notice
of Exercise (such date, the “Warrant Share Delivery Date”). If the Warrant Shares can be delivered via DWAC, the transfer
agent shall have received from the Company, at the expense of the Company, any legal opinions or other documentation required by it to
deliver such Warrant Shares without legend (subject to receipt by the Company of reasonable back up documentation from the Holder, including
with respect to affiliate status) and, if applicable and requested by the Company prior to the Warrant Share Delivery Date, the transfer
agent shall have received from the Holder a confirmation of sale of the Warrant Shares (provided the requirement of the Holder to provide
a confirmation as to the sale of Warrant Shares shall not be applicable to the issuance of unlegended Warrant Shares upon a cashless exercise
of this Warrant if the Warrant Shares are then eligible for resale pursuant to Rule 144(b)(1)). The Warrant Shares shall be deemed to
have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of
such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or by
cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the
issuance of such shares, having been paid. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to
a Notice of Exercise by the second (2nd) Trading Day following the Warrant Share Delivery Date, the Company shall pay to the
Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the
VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on
the fifth (5th) Trading Day after such liquidated damages begin to accrue) for each Trading Day after the second (2nd)
Trading Day following such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise.

__________

1
120% of the public offering price per share of common stock in the offering.

    	 	3	 

     

    

 

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

 

 iii.            Rescission Rights. If the Company fails to cause its transfer
agent to deliver to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will
have the right to rescind such exercise; provided, however, that the Holder shall be required to return any Warrant Shares
or Common Stock subject to any such rescinded exercise notice concurrently with the return to Holder of the aggregate Exercise Price paid
to the Company for such Warrant Shares and the restoration of Holder’s right to acquire such Warrant Shares pursuant to this Warrant
(including, issuance of a replacement warrant certificate evidencing such restored right).

 

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

  

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

 

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

 

 

 

    	 	4	 

     

    

 

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

 

 viii.            Signature. This Section 2 and the exercise form attached
hereto set forth the totality of the procedures required of the Holder in order to exercise this Warrant.  Without limiting the preceding
sentences, no ink-original exercise form shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization)
of any exercise form be required in order to exercise this Warrant.  No additional legal opinion, other information or instructions
shall be required of the Holder to exercise this Warrant.  The Company shall honor exercises of this Warrant and shall deliver Warrant
Shares underlying this Warrant in accordance with the terms, conditions and time periods set forth herein.

 

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

  

 

 

    	 	5	 

     

    

 

Section 3. Certain
Adjustments.

 

a)                 
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares
of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse
stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common
Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the
numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event
and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of
shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant
shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for
the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective
date in the case of a subdivision, combination or re-classification. For the purposes of clarification, the Exercise Price of this Warrant
will not be adjusted in the event that the Company or any subsidiary thereof, as applicable, sells or grants any option to purchase, or
sell or grant any right to reprice, or otherwise dispose of or issue (or announce any offer, sale, grant or any option to purchase or
other disposition) any Common Stock or Common Stock equivalents, at an effective price per share less than the Exercise Price then in
effect.

 

b)                 
[RESERVED]

  

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

 

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

  

 

 

    	 	6	 

     

    

 

e)                 
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or
more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or
indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its
assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their
shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv)
the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for
other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock
or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off
or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding
shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated
or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a
“Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to
receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental
Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number
of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional
consideration (the “Alternate Consideration”) receivable by holders of Common Stock as a result of such Fundamental
Transaction for each share of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without
regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the
Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among
the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.
If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor
(the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant in accordance
with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and
approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver
to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar
in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity
(or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard
to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the
exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant
to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise
price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental
Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction,
the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions
of this Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such Successor
Entity had been named as the Company herein.

  

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

 

g)                 
Notice to Holder.

 

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

 

 

 

    	 	7	 

     

    

 

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

  

Section 4. Transfer
of Warrant.

 

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

 

i.                        
by operation of law or by reason of reorganization of the Company;

 

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

 

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

 

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

 

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

  

 

 

    	 	8	 

     

    

 

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

 

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

 

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

 

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

Section 5. Registration
Rights.

 

5.1. Demand Registration.

 

5.1.1          Grant
of Right. The Company, upon written demand (a “Demand Notice”) of the Holder(s) of at least 51% of the Warrants and/or the
underlying Warrant Shares, agrees to register, on one (1) occasion, all or any portion of the Warrant Shares underlying the Warrants (collectively,
the “Registrable Securities”). On such occasion, the Company will file a registration statement with the Commission covering
the Registrable Securities within sixty (60) days after receipt of a Demand Notice and use its reasonable best efforts to have the registration
statement declared effective promptly thereafter, subject to compliance with review by the Commission; provided, however, that the Company
shall not be required to comply with a Demand Notice if the Company has filed a registration statement with respect to which the Holder
is entitled to piggyback registration rights pursuant to Section 5.2 hereof and either: (i) the Holder has elected to participate in the
offering covered by such registration statement or (ii) if such registration statement relates to an underwritten primary offering of
securities of the Company, until the offering covered by such registration statement has been withdrawn or until thirty (30) days after
such offering is consummated. The demand for registration may be made at any time beginning on the Initial Exercise Date and expiring
on the fifth anniversary of the date of the Underwriting Agreement (as defined below) in accordance with FINRA Rule 5110(g)(8)(C). The
Company covenants and agrees to give written notice of its receipt of any Demand Notice by any Holder(s) to all other registered Holders
of the Warrants and/or the Registrable Securities within ten (10) days after the date of the receipt of any such Demand Notice.

 

 

 

    	 	9	 

     

    

 

5.1.2           Terms.
The Company shall bear all fees and expenses attendant to the registration of the Registrable Securities pursuant to Section 5.1.1, but
the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to represent
them in connection with the sale of the Registrable Securities. The Company agrees to use its reasonable best efforts to cause the filing
required herein to become effective promptly and to qualify or register the Registrable Securities in such States as are reasonably requested
by the Holder(s); provided, however, that in no event shall the Company be required to register the Registrable Securities in a State
in which such registration would cause: (i) the Company to be obligated to register or license to do business in such State or submit
to general service of process in such State, or (ii) the principal shareholders of the Company to be obligated to escrow their shares
of capital stock of the Company. The Company shall cause any registration statement filed pursuant to the demand right granted under Section
5.1.1 to remain effective for a period of at least twelve (12) consecutive months after the date that the Holders of the Registrable Securities
covered by such registration statement are first given the opportunity to sell all of such securities. The Holders shall only use the
prospectuses provided by the Company to sell the Warrant Shares covered by such registration statement, and will immediately cease to
use any prospectus furnished by the Company if the Company advises the Holder that such prospectus may no longer be used due to a material
misstatement or omission. Notwithstanding the provisions of this Section 5.1.2, the Holder shall be entitled to a demand registration
under Section 5.1.1 on only one (1) occasion and such demand registration right shall terminate on the fifth anniversary of the date of
the Underwriting Agreement (as defined below) in accordance with FINRA Rule 5110(g)(8)(C).

 

5.2 “Piggy-Back” Registration.

 

5.2.1          Grant
of Right. In addition to the demand right of registration described in Section 5.1 hereof, the Holder shall have the right, for a period
of no more than two (2) years from the Initial Exercise Date in accordance with FINRA Rule 5110(g)(8)(D), to include the Registrable Securities
as part of any other registration of securities filed by the Company (other than in connection with a transaction contemplated by Rule
145(a) promulgated under the Securities Act or pursuant to Form S-8 or Form S-4 or any equivalent form); provided, however, that if, solely
in connection with any primary underwritten public offering for the account of the Company, the managing underwriter(s) thereof shall,
in its reasonable discretion, impose a limitation on the number of Warrant Shares which may be included in the Registration Statement
because, in such underwriter(s)’ judgment, marketing or other factors dictate such limitation is necessary to facilitate public
distribution, then the Company shall be obligated to include in such Registration Statement only such limited portion of the Registrable
Securities with respect to which the Holder requested inclusion hereunder as the underwriter shall reasonably permit. Any exclusion of
Registrable Securities shall be made pro rata among the Holders seeking to include Registrable Securities in proportion to the number
of Registrable Securities sought to be included by such Holders; provided, however, that the Company shall not exclude any Registrable
Securities unless the Company has first excluded all outstanding securities, the holders of which are not entitled to inclusion of such
securities in such Registration Statement or are not entitled to pro rata inclusion with the Registrable Securities.

 

5.2.2           Terms.
The Company shall bear all fees and expenses attendant to registering the Registrable Securities pursuant to Section 5.2.1 hereof, but
the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to represent
them in connection with the sale of the Registrable Securities. In the event of such a proposed registration, the Company shall furnish
the then Holders of outstanding Registrable Securities with not less than thirty (30) days written notice prior to the proposed date of
filing of such registration statement. Such notice to the Holders shall continue to be given for each registration statement filed by
the Company during the two (2) year period following the Initial Exercise Date until such time as all of the Registrable Securities have
been sold by the Holder. The holders of the Registrable Securities shall exercise the “piggy-back” rights provided for herein
by giving written notice within ten (10) days of the receipt of the Company’s notice of its intention to file a registration statement.
Except as otherwise provided in this Warrant, there shall be no limit on the number of times the Holder may request registration under
this Section 5.2.1; provided, however, that such registration rights shall terminate on the second (2nd) anniversary of the
Initial Exercise Date.

 

 

 

    	 	10	 

     

    

 

5.3 General Terms

 

5.3.1          Indemnification.
The Company shall indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement hereunder and
each person, if any, who controls such Holders within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange
Act against all loss, claim, damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably
incurred in investigating, preparing or defending against any claim whatsoever) to which any of them may become subject under the Securities
Act, the Exchange Act or otherwise, arising from such registration statement but only to the same extent and with the same effect as the
provisions pursuant to which the Company has agreed to indemnify the Underwriters contained in Section 5.1 of the Underwriting Agreement,
dated June 3, 2021, by and between the Company and EF Hutton, division of Benchmark Investments, LLC as representatives of the underwriters
set forth therein (the “Underwriting Agreement”). The Holder(s) of the Registrable Securities to be sold pursuant to such
registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, against all loss, claim,
damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating,
preparing or defending against any claim whatsoever) to which they may become subject under the Securities Act, the Exchange Act or otherwise,
arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for specific inclusion
in such registration statement to the same extent and with the same effect as the provisions contained in Section 5.2 of the Underwriting
Agreement pursuant to which the Underwriters have agreed to indemnify the Company.

 

5.3.2           Exercise
of Warrants. Nothing contained in this Warrant shall be construed as requiring the Holder(s) to exercise their Warrants prior to or after
the initial filing of any registration statement or the effectiveness thereof.

 

5.3.3           Documents
Delivered to Holders. The Company shall furnish to each Holder participating in any of the foregoing offerings and to each underwriter
of any such offering, if any, a signed counterpart, addressed to such Holder or underwriter, of: (i) an opinion of counsel to the Company,
dated the effective date of such registration statement (and, if such registration includes an underwritten public offering, an opinion
dated the date of the closing under any underwriting agreement related thereto), and (ii) a “cold comfort” letter dated the
effective date of such registration statement (and, if such registration includes an underwritten public offering, a letter dated the
date of the closing under the underwriting agreement) signed by the independent registered public accounting firm which has issued a report
on the Company’s financial statements included in such registration statement, in each case covering substantially the same matters
with respect to such registration statement (and the prospectus included therein) and, in the case of such accountants’ letter,
with respect to events subsequent to the date of such financial statements, as are customarily covered in opinions of issuer’s counsel
and in accountants’ letters delivered to underwriters in underwritten public offerings of securities. The Company shall also deliver
promptly to each Holder participating in the offering requesting the correspondence and memoranda described below and to the managing
underwriter, if any, copies of all correspondence between the Commission and the Company, its counsel or auditors and all memoranda relating
to discussions with the Commission or its staff with respect to the registration statement and permit each Holder and underwriter to do
such investigation, upon reasonable advance notice, with respect to information contained in or omitted from the registration statement
as it deems reasonably necessary to comply with applicable securities laws or rules of FINRA. Such investigation shall include access
to books, records and properties and opportunities to discuss the business of the Company with its officers and independent auditors,
all to such reasonable extent and at such reasonable times as any such Holder shall reasonably request.

 

5.3.4           Underwriting
Agreement. The Company shall enter into an underwriting agreement with the managing underwriter(s), if any, selected by any Holders whose
Registrable Securities are being registered pursuant to this Section 5, which managing underwriter shall be reasonably satisfactory to
the Company. Such agreement shall be reasonably satisfactory in form and substance to the Company, each Holder and such managing underwriters,
and shall contain such representations, warranties and covenants by the Company and such other terms as are customarily contained in agreements
of that type used by the managing underwriter. The Holders shall be parties to any underwriting agreement relating to an underwritten
sale of their Registrable Securities and may, at their option, require that any or all the representations, warranties and covenants of
the Company to or for the benefit of such underwriters shall also be made to and for the benefit of such Holders. Such Holders shall not
be required to make any representations or warranties to or agreements with the Company or the underwriters except as they may relate
to such Holders, their Warrant Shares and their intended methods of distribution.

 

 

 

 

    	 	11	 

     

    

 

5.3.5           Documents
to be Delivered by Holder(s). Each of the Holder(s) participating in any of the foregoing offerings shall furnish to the Company a completed
and executed questionnaire provided by the Company requesting information customarily sought of selling security holders.

 

5.3.6           Damages.
Should the registration or the effectiveness thereof required by Sections 5.1 and 5.2 hereof be delayed by the Company or the Company
otherwise fails to comply with such provisions, the Holder(s) shall, in addition to any other legal or other relief available to the Holder(s),
be entitled to obtain specific performance or other equitable (including injunctive) relief against the threatened breach of such provisions
or the continuation of any such breach, without the necessity of proving actual damages and without the necessity of posting bond or other
security.

 

Section 6. Miscellaneous.

 

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

 

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

 

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

 

d)                 
Authorized Shares.

 

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

  

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

 

 

 

    	 	12	 

     

    

 

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

 

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

 

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

 

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

 

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

  

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

(Signature Page Follows)

 

 

    	 	13	 

     

    

 

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

 

	 	VIVAKOR, INC. 
	 	 
	 	 
	 	
    By:__________________________________________

    Name:

    Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	14	 

     

    

 

NOTICE OF EXERCISE

 

TO:         VIVAKOR,
INC.

_________________________

 

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

 

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

 

[ ] in lawful money of the United States;
or

 

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

 

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

 

_______________________________

 

 

The Warrant Shares shall be delivered to the following
DWAC Account Number or by physical delivery of a certificate to:

 

_______________________________

 

_______________________________

 

_______________________________

 

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

 

 

[SIGNATURE
OF HOLDER]

 

Name of Investing Entity: _______________________________________________________________

Signature of Authorized Signatory of Investing Entity: _________________________________________

Name of Authorized Signatory: ___________________________________________________________

Title of Authorized Signatory: ____________________________________________________________

Date: ________________________________________________________________________________

 

 

 

 

 

    	 	15	 

     

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

 

 

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

 

 

_______________________________________________
whose address is

 

_______________________________________________________________.

 

 

 

_______________________________________________________________

 

Dated: ______________,
_______

 

 

Holder’s Signature: _____________________________

 

Holder’s Address: _____________________________

 

_____________________________

 

 

 

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

 

 

 

 

 

 

 

 

 

    	 	16

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