Document:

fsbw_Ex10_10

		
			Exhibit 10.10
		

		
			FS BANCORP, INC.
		

		
			 
		

		
			2018 EQUITY INCENTIVE PLAN
		

		
			 
		

		
			 
		

		
			

		 

		

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			TABLE OF CONTENTS
		

			
					
						 

					
					
						Page

				
	
					
						ARTICLE I PURPOSE

					
1
				
	
					
						 

					
					
						 

				
	
					
						SECTION 1.1

					
					
						GENERAL PURPOSE OF THE PLAN. 

					
1
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE II DEFINITIONS

					
1
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE III AVAILABLE SHARES

					
4
				
	
					
						 

					
					
						 

				
	
					
						SECTION 3.1

					
					
						SHARES AVAILABLE UNDER THE PLAN. 

					
4
				
	
					
						SECTION 3.2

					
					
						SHARES AVAILABLE FOR OPTIONS. 

					
4
				
	
					
						SECTION 3.3

					
					
						SHARES AVAILABLE FOR RESTRICTED STOCK AWARDS. 

					
4
				
	
					
						SECTION 3.4

					
					
						COMPUTATION OF SHARES ISSUED. 

					
4
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE IV ADMINISTRATION

					
4
				
	
					
						 

					
					
						 

				
	
					
						SECTION 4.1

					
					
						COMMITTEE. 

					
4
				
	
					
						SECTION 4.2

					
					
						COMMITTEE POWERS. 

					
5
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE V STOCK OPTIONS

					
5
				
	
					
						 

					
					
						 

				
	
					
						SECTION 5.1

					
					
						GRANT OF OPTIONS. 

					
5
				
	
					
						SECTION 5.2

					
					
						SIZE OF OPTION. 

					
6
				
	
					
						SECTION 5.3

					
					
						EXERCISE PRICE. 

					
6
				
	
					
						SECTION 5.4

					
					
						EXERCISE PERIOD. 

					
6
				
	
					
						SECTION 5.5

					
					
						VESTING DATE. 

					
6
				
	
					
						SECTION 5.6

					
					
						ADDITIONAL RESTRICTIONS ON INCENTIVE STOCK OPTIONS. 

					
7
				
	
					
						SECTION 5.7

					
					
						METHOD OF EXERCISE. 

					
7
				
	
					
						SECTION 5.8

					
					
						LIMITATIONS ON OPTIONS. 

					
8
				
	
					
						SECTION 5.9

					
					
						PROHIBITION AGAINST OPTION REPRICING. 

					
9
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE VI RESTRICTED STOCK AWARDS

					
9
				
	
					
						 

					
					
						 

				
	
					
						SECTION 6.1

					
					
						IN GENERAL. 

					
9
				
	
					
						SECTION 6.2

					
					
						VESTING DATE. 

					
10
				
	
					
						SECTION 6.3

					
					
						DIVIDEND RIGHTS. 

					
11
				
	
					
						SECTION 6.4

					
					
						VOTING RIGHTS. 

					
11
				
	
					
						SECTION 6.5

					
					
						DESIGNATION OF BENEFICIARY. 

					
11
				
	
					
						SECTION 6.6

					
					
						MANNER OF DISTRIBUTION OF AWARDS. 

					
11
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE VII ADDITIONAL TAX PROVISION

					
11
				
	
					
						 

					
					
						 

				
	
					
						SECTION 7.1

					
					
						TAX WITHHOLDING RIGHTS. 

					
11
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE VIII AMENDMENT AND TERMINATION

					
12
				
	
					
						 

					
					
						 

				
	
					
						SECTION 8.1

					
					
						TERMINATION

					
12
				
	
					
						SECTION 8.2

					
					
						AMENDMENT. 

					
12
				
	
					
						SECTION 8.3

					
					
						ADJUSTMENTS IN THE EVENT OF BUSINESS REORGANIZATION. 

					
12
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE IX MISCELLANEOUS

					
13
				
	
					
						 

					
					
						 

				
	
					
						SECTION 9.1

					
					
						STATUS AS AN EMPLOYEE BENEFIT PLAN; NON-APPLICATION OF SECTION 409A. 

					
13
				
	
					
						SECTION 9.2

					
					
						NO RIGHT TO CONTINUED SERVICE. 

					
13
				
	
					
						SECTION 9.3

					
					
						CONSTRUCTION OF LANGUAGE. 

					
13
				
	
					
						SECTION 9.4

					
					
						SEVERABILITY. 

					
13
				
	
					
						SECTION 9.5

					
					
						GOVERNING LAW. 

					
13
				
	
					
						SECTION 9.6

					
					
						HEADINGS. 

					
13
				
	
					
						SECTION 9.7

					
					
						NON-ALIENATION OF BENEFITS. 

					
14
				
	
					
						SECTION 9.8

					
					
						NOTICES. 

					
14
				
	
					
						SECTION 9.9

					
					
						APPROVAL OF SHAREHOLDERS

					
14
				
	
					
						SECTION 9.10

					
					
						CLAWBACK. 

					
14
				

		
			 
		

		
			 
		

		
			

		 

		

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			FS Bancorp, Inc.
		

		
			 2018 Equity Incentive Plan
		

		
			ARTICLE I
		

		
			PURPOSE
		

		
			Section 1.1           General Purpose of the Plan.
		

		
			The purpose of the Plan is to promote the long-term growth and profitability of FS Bancorp, Inc., to provide Plan Participants with an incentive to achieve corporate objectives, to attract and retain individuals of outstanding competence and to provide Plan Participants with incentives that are closely linked to the interests of all shareholders of FS Bancorp, Inc.  The Plan is not intended to expose the Company to imprudent risks.
		

		
			The Plan was originally adopted effective as of March 22, 2018 by the Board, and became effective on ___________ , 2018 (the “Effective Date”), the date the Plan was approved by the Company’s shareholders.
		

		
			As of the Effective Date, this Plan shall be treated as a new plan for purposes of Section 422 of the Code (as herein defined), so that an Option granted hereunder on a date that is not more than ten years after the Effective Date, and that is intended to qualify as an Incentive Stock Option under Section 422 of the Code, complies with the requirements of Section 422(b)(2) of the Code and the applicable regulations thereunder.
		

		
			ARTICLE II
		

		
			DEFINITIONS
		

		
			The following definitions shall apply for the purposes of this Plan, unless a different meaning is plainly indicated by the context:
		

		
			Affiliate means any “parent corporation” or “subsidiary corporation” of the Company, as those terms are defined in Section 424(e) and (f) respectively, of the Code.
		

		
			Award means the grant by the Committee of an Incentive Stock Option, a Non-Qualified Stock Option, a Restricted Stock Award or any other benefit under this Plan.
		

		
			Award Agreement means a written instrument evidencing an Award under the Plan and establishing the terms and conditions thereof.
		

		
			Beneficiary means the Person designated by a Participant to receive any Shares subject to a Restricted Stock Award made to such Participant that become distributable, to have the right to exercise any Options granted to such Participant that are exercisable or to receive any cash paid out under a Cash Award to such Participant where such payout is made, following the Participant’s death.
		

		
			Board means the Board of Directors of FS Bancorp, Inc. and any successor thereto.
		

		
			Change in Control means any of the following events:
		

		
			(a)        any third Person, including a "group" as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, becomes the beneficial owner of Shares with respect to which 25% or more of the total number of votes that may be cast for the election of the Board (other than a tax-qualified plan of the Company or its Affiliate);
		

		
			(b)        consummation of a plan of reorganization, merger, acquisition, consolidation, sale of all or substantially all of the assets of the Company or a similar transaction in which the Company is not the resulting entity;
		

		
			(c)        as a result of, or in connection with, any cash tender offer, merger or other business combination, sale of assets or contested election(s), or combination of the foregoing, the individuals who were members of the
		

		
			
		

		
			

		 

		

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			Board of Directors on the date of adoption of this Plan (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequent to the date of adoption of this Plan whose election was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board, or whose nomination for election by the Company’s shareholders was approved by the nominating committee serving under an Incumbent Board, shall be considered a member of the Incumbent Board; or
		

		
			(d)        a tender offer or exchange offer for 25% or more of the total outstanding Shares is completed (other than such an offer by the Company).
		

		
			Code means the Internal Revenue Code of 1986, as amended from time to time.
		

		
			Committee means the Committee described in Article IV.
		

		
			Company means FS Bancorp, Inc., a Washington corporation, and any successor thereto.
		

		
			Disability means a total and permanent disability, within the meaning of Code Section 22(e)(3), as determined by the Committee in good faith, upon receipt of sufficient competent medical advice from one or more individuals, selected by the Committee, who are qualified to give professional medical advice.
		

		
			Domestic Relations Order means a domestic relations order that satisfies the requirements of Section 414(p)(1)(B) of the Code, or any successor provision, as if such section applied to the applicable Award.
		

		
			Effective Date means the date on which the Plan is approved by the shareholders of FS Bancorp, Inc.
		

		
			Exchange Act  means the Securities Exchange Act of 1934, as amended.
		

		
			Exercise Period means the period during which an Option may be exercised.
		

		
			Exercise Price means the price per Share at which Shares subject to an Option may be purchased upon exercise of the Option.  If the Fair Market Value for Exercise Price purposes is determined to be less than fair market value of the underlying Shares as determined under Section 409A (the "Section 409A Fair Market Value"), then the Exercise Price shall automatically adjusted to be the Section 409A Fair Market Value.  The Committee may take such actions as it determines necessary to carry out the preceding sentence.
		

		
			Fair Market Value means, with respect to a Share on a specified date:
		

		
			(a)        If the Shares are listed on any U.S. national securities exchange registered under the Securities Exchange Act of 1934 (“National Exchange”), the closing sales price for such stock (or the closing bid, if no sales were reported) as reported on that exchange on the applicable date, or if the applicable date is not a trading day, on the trading day immediately preceding the applicable date;
		

		
			(b)        If the Shares are not listed on a National Exchange but are traded on the over-the-counter market or other similar system, the mean between the closing bid and the asked price for the Shares at the close of trading in the over-the-counter market or other similar system on the applicable date, or if the applicable date is not a trading day, on the trading day immediately preceding the applicable date; and
		

		
			(c)        In the absence of such markets for the Shares, the Fair Market Value shall be determined in good faith by the Committee.
		

		
			In no event shall the Fair Market Value for Exercise Price purposes be less than fair market value of the underlying Shares as determined under Section 409A.
		

		
			Family Member means with respect to any Participant, any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Participant’s
		

		
			
		

		
			

		 

		

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			household (other than a tenant or employee), a trust in which these persons have more than fifty percent of the beneficial interest, a foundation in which these persons (or the Participant) control the management of assets, and any other entity in which these persons (or the Participant) own more than fifty percent of the voting interests.
		

		
			Incentive Stock Option means a right to purchase Shares that is granted to an employee of the Company or any Affiliate that is designated by the Committee to be an Incentive Stock Option and that is intended to satisfy the requirements of Section 422 of the Code.
		

		
			Involuntary Separation from Service means the first to occur of the following:
		

		
			(a)          The Participant’s Service is unilaterally terminated by the Company or an Affiliate;
		

		
			(b)          The Participant voluntarily terminates Service after the Company or the Affiliate reduces the Participant’s base salary to a rate that is lower than the rate in effect immediately prior to the Change in Control, or as the same may have been increased thereafter; or
		

		
			(c)          The Participant voluntarily terminates Service after the Company or an Affiliate requires the Participant to change the Participant's job location or office, so that such Participant will be based at a location more than thirty-five (35) miles from the location of the Participant's job or office immediately prior to the Change in Control, provided that such new location is not closer to Participant's home.
		

		
			For the avoidance of doubt, an Involuntary Separation from Service does not include a Termination for Cause.
		

		
			Non-Qualified Stock Option means a right to purchase Shares that is not intended to qualify as an Incentive Stock Option or does not satisfy the requirements of Section 422 of the Code.
		

		
			Option means either an Incentive Stock Option or a Non-Qualified Stock Option.
		

		
			Option Holder means, at any relevant time with respect to an Option, the person having the right to exercise the Option.
		

		
			Participant means any director, emeritus director, officer, employee or advisory director of the Company or any Affiliate who is selected by the Committee to receive an Award.
		

		
			Permitted Transferee means, with respect to any Participant, a Family Member of the Participant to whom an Award has been transferred as permitted hereunder.
		

		
			Person means an individual, a corporation, a partnership, a limited liability company, an association, a joint-stock company, a trust, an estate, an unincorporated organization and any other business organization or institution.
		

		
			Plan means the FS Bancorp, Inc. 2018 Equity Incentive Plan, as amended from time to time.
		

		
			Restricted Stock Award means an award of Shares pursuant to Article VI.
		

		
			Retirement means the termination of a Participant’s employment with the Company and its Affiliates, other than a Termination for Cause, after the Participant has attained age 591⁄2.
		

		
			Section 409A means Section 409A of the Code and any regulations or guidance of general applicability thereunder.
		

		
			Service means, unless the Committee provides otherwise in an Award Agreement, service in any capacity as a director, emeritus director, officer, employee or advisory director of the Company or any Affiliate.
		

		
			Share means a share of common stock, par value $.01 per share, of FS Bancorp, Inc.
		

		
			
		

		
			

		 

		

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			Termination for Cause means termination upon an intentional failure to perform stated duties, a breach of a fiduciary duty involving personal dishonesty which results in material loss to the Company or one of its Affiliates or a willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or a final cease-and-desist order which results in material loss to the Company or one of its Affiliates.  No act or failure to act on Participant’s part shall be considered willful unless done, or omitted to be done, not in good faith and without reasonable belief that the action or omission was in the best interest of the Company.  Notwithstanding the above, if a Participant is subject to a different definition of termination for cause in an employment or severance or similar agreement with the Company or any Affiliate, such other definition shall control.
		

		
			Vesting Date means the date or dates on which the grant of an Option is eligible to be exercised or the date or dates on which a Restricted Stock Award ceases to be forfeitable.
		

		
			ARTICLE III
		

		
			AVAILABLE SHARES
		

		
			Section 3.1           Shares Available Under the Plan.
		

		
			Subject to adjustment under Article VIII, the aggregate number of Shares representing Awards shall not exceed 650,000 Shares.
		

		
			Section 3.2           Shares Available for Options.
		

		
			Subject to adjustment under Article XI, the maximum aggregate number of Shares with respect to which Options may be granted under the Plan shall be 650,000 Shares. The maximum aggregate number of Shares with respect to which Incentive Stock Options may be granted under the Plan shall be 650,000 Shares.
		

		
			Section 3.3           Shares Available for Restricted Stock Awards.
		

		
			Subject to adjustment under Article XI, the maximum aggregate number of Shares with respect to which Restricted Stock Awards may be granted under the Plan shall be 163,000 Shares
		

		
			Section 3.4           Computation of Shares Issued.
		

		
			For purposes of this Article III, Shares shall be considered issued pursuant to the Plan only if actually issued upon the exercise of an Option or in connection with a Restricted Stock Award.  Any Award subsequently forfeited, in whole or in part, shall not be considered issued. If any Award granted under the Plan terminates, expires, or lapses for any reason, any Shares subject to such Award again shall be available for the grant of an Award under the Plan.  Shares used to pay the Exercise Price of an Option and Shares used to satisfy tax withholding obligations shall not be available for future Awards under the Plan.  To the extent that Shares are delivered pursuant to the exercise of an Option, the number of underlying Shares as to which the exercise related shall be counted against the number of Shares available for Awards, as opposed to only counting the Shares issued.
		

		
			ARTICLE IV
		

		
			ADMINISTRATION
		

		
			Section 4.1           Committee.
		

		
			(a)          The Plan shall be administered by a Committee appointed by the Board for that purpose and consisting of not less than two (2) members of the Board.  Each member of the Committee shall be a “Non-Employee Director” within the meaning of Rule 16b-3(b)(3)(i) under the Exchange Act or a successor rule or regulation and an “Independent Director,” and shall satisfy any other membership requirements, under the corporate governance rules and regulations imposing independence and other membership standards on committees performing similar functions promulgated by any national securities exchange or quotation system on which Shares are listed.
		

		
			
		

		
			

		 

		

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			(b)          The act of a majority of the members present at a meeting duly called and held shall be the act of the Committee.  Any decision or determination reduced to writing and signed by all members shall be as fully effective as if made by unanimous vote at a meeting duly called and held.
		

		
			(c)          The Committee’s decisions and determinations under the Plan need not be uniform and may be made selectively among Participants, whether or not such Participants are similarly situated.
		

		
			Section 4.2           Committee Powers.
		

		
			Subject to the terms and conditions of the Plan and such limitations as may be imposed by the Board, the Committee shall be responsible for the overall management and administration of the Plan and shall have such authority as shall be necessary or appropriate in order to carry out its responsibilities, including, without limitation, the authority:
		

		
			(a)        to interpret and construe the Plan, and to determine all questions that may arise under the Plan as to eligibility for participation in the Plan, and the number of Shares subject to Awards to be issued or granted;
		

		
			(b)        with the consent of the Participant, to the extent deemed necessary by the Committee, to amend or modify the terms of any outstanding Award or accelerate or defer the Vesting Date thereof;
		

		
			(c)        to adopt rules and regulations and to prescribe forms for the operation and administration of the Plan; and
		

		
			(d)     to take any other action not inconsistent with the provisions of the Plan that it may deem necessary or appropriate.
		

		
			All decisions, determinations and other actions of the Committee made or taken in accordance with the terms of the Plan shall be final and conclusive and binding upon all parties having an interest therein.
		

		
			ARTICLE V
		

		
			STOCK OPTIONS
		

		
			Section 5.1           Grant of Options.
		

		
			(a)          Subject to the limitations of the Plan, the Committee may, in its discretion, grant to a Participant an Option to purchase Shares.  An Option must be designated as either an Incentive Stock Option or a Non-Qualified Stock Option and, if not designated as either, shall be a Non-Qualified Stock Option.  Only employees of the Company or its Affiliates may receive Incentive Stock Options.
		

		
			(b)          Any Option granted shall be evidenced by an Award Agreement which shall:
		

		
			(i)           specify the number of Shares covered by the Option;
		

		
			(ii)          specify the Exercise Price;
		

		
			(iii)         specify the Exercise Period;
		

		
			(iv)         specify the Vesting Date; and
		

		
			(v)          contain such other terms and conditions not inconsistent with the Plan as the Committee may, in its discretion, prescribe.
		

		
			
		

		
			

		 

		

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			Section 5.2           Size of Option.
		

		
			Subject to the restrictions of the Plan, the number of Shares as to which a Participant may be granted Options shall be determined by the Committee, in its discretion.
		

		
			Section 5.3           Exercise Price.
		

		
			The price per Share at which an Option may be exercised shall be determined by the Committee, in its discretion; provided, however, that the Exercise Price shall not be less than the Fair Market Value of a Share on the date on which the Option is granted.
		

		
			Section 5.4           Exercise Period.
		

		
			The Exercise Period during which an Option may be exercised shall commence on the Vesting Date.  It shall expire on the earliest of:
		

		
			(a)        the date specified by the Committee in the Award Agreement;
		

		
			(b)        unless otherwise determined by the Committee and set forth in the Award Agreement, the last day of the three-month period commencing on the date of the Participant’s termination of Service, other than on account of death, Disability, Retirement or a Termination for Cause;
		

		
			(c)        unless otherwise determined by the Committee and set forth in the Award Agreement, the last day of the one-year period commencing on the date of the Participant’s termination of Service due to death, Disability or Retirement;
		

		
			(d)        as of the time and on the date of the Participant’s termination of Service due to a Termination for Cause; or
		

		
			(e)        the last day of the ten-year period commencing on the date on which the Option was granted.
		

		
			An Option that remains unexercised at the close of business on the last day of the Exercise Period shall be canceled without consideration at the close of business on that date.
		

		
			Section 5.5           Vesting Date.
		

		
			(a)          Subject to any restrictions set forth in this Plan:
		

		
			(i)           the Vesting Date for each Option Award shall be determined by the Committee and specified in the Award Agreement; and
		

		
			(ii)          notwithstanding Section 5.5(a)(i), no more than 32,500 Shares in total may be awarded under the Plan, whether pursuant to an Option or a Restricted Stock Award, with a Vesting Date that is earlier than the first anniversary of the date the Award is granted (taking into account Shares whose Vesting Date is accelerated by the Committee pursuant to Section 4.2(b) to a date that is earlier than the first anniversary of the date the Award is granted).
		

		
			(b)          Unless otherwise determined by the Committee and specified in the Award Agreement:
		

		
			(i)           if the Participant of an Option Award terminates Service prior to the Vesting Date for any reason other than death or Disability, or prior to a Change in Control, any unvested Option shall be forfeited without consideration;
		

		
			
		

		
			

		 

		

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			(ii)          if the Participant of an Option Award terminates Service prior to the Vesting Date on account of death or Disability, the Vesting Date shall be accelerated to the date of the Participant’s termination of Service; and
		

		
			(iii)         if a Change in Control occurs prior to the Vesting Date of an Option Award that is outstanding on the date of the Change in Control, and the Participant experiences an Involuntary Separation from Service other than a Termination for Cause during the 365-day period following the date of such Change in Control, then the Vesting Date for any non-vested Option Award shall be accelerated to the date of the Participant’s Involuntary Separation from Service.  Notwithstanding the preceding sentence, if at the effective time of the Change in Control the successor to the Company’s business and/or assets does not either assume the outstanding Option Award or replace the outstanding Option Award with an award that is determined by the Committee to be at least equivalent in value to such outstanding Option Award on the date of the Change in Control, then the Vesting Date of such outstanding Option Award shall be accelerated to the earliest date of the Change in Control.
		

		
			Section 5.6           Additional Restrictions on Incentive Stock Options.
		

		
			An Option designated by the Committee to be an Incentive Stock Option shall be subject to the following provisions:
		

		
			(a)        Notwithstanding any other provision of this Plan to the contrary, no Participant may receive an Incentive Stock Option under the Plan if such Participant, at the time the award is granted, owns (after application of the rules contained in Section 424(d) of the Code) stock possessing more than ten (10) percent of the total combined voting power of all classes of stock of the Company or its Affiliates, unless (i) the option price for such Incentive Stock Option is at least 110 percent of the Fair Market Value of the Shares subject to such Incentive Stock Option on the date of grant and (ii) such Option is not exercisable after the date five (5) years from the date such Incentive Stock Option is granted.
		

		
			(b)        Each Participant who receives Shares upon exercise of an Option that is an Incentive Stock Option shall give the Company prompt notice of any sale of Shares prior to a date which is two years from the date the Option was granted or one year from the date the Option was exercised.  Such sale shall disqualify the Option as an Incentive Stock Option.
		

		
			(c)        The aggregate Fair Market Value (determined with respect to each Incentive Stock Option at the time such Incentive Stock Option is granted) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by a Participant during any calendar year (under this Plan or any other plan of the Company or an Affiliate) shall not exceed $100,000 and the term of the Incentive Stock Option shall not be more than ten years.
		

		
			(d)        Any Option under this Plan which is designated by the Committee as an Incentive Stock Option but fails, for any reason, to meet the foregoing requirements shall be treated as a Non-Qualified Stock Option.
		

		
			Section 5.7           Method of Exercise.
		

		
			(a)          Subject to the limitations of the Plan and the Award Agreement, an Option Holder may, at any time on or after the Vesting Date and during the Exercise Period, exercise his or her right to purchase all or any part of the Shares to which the Option relates; provided, however, that the minimum number of Shares which may be purchased at any time shall be 100, or, if less, the total number of Shares relating to the Option which remain un-purchased.  An Option Holder shall exercise an Option to purchase Shares by:
		

		
			(i)           giving written notice to the Committee, in such form and manner as the Committee may prescribe, of his or her intent to exercise the Option;
		

		
			(ii)          delivering to the Committee full payment for the Shares as to which the Option is to be exercised; and
		

		
			
		

		
			

		 

		

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			(iii)         satisfying such other conditions as may be prescribed in the Award Agreement.
		

		
			(b)          The Exercise Price of Shares to be purchased upon exercise of any Option shall be paid in full:
		

		
			(i)           in cash (by certified or bank check or such other instrument as the Company may accept); or
		

		
			(ii)          if and to the extent permitted by the Committee, in the form of Shares already owned by the Option Holder as of the exercise date and having an aggregate Fair Market Value on the date the Option is exercised equal to the aggregate Exercise Price to be paid; or
		

		
			(iii)         if and to the extent permitted by the Committee, by the Company withholding Shares otherwise issuable upon the exercise having an aggregate Fair Market Value on the date the Option is exercised equal to the aggregate Exercise Price to be paid; or
		

		
			(iv)         by a combination thereof.
		

		
			Payment for any Shares to be purchased upon exercise of an Option may also be made by delivering a properly executed exercise notice to the Company, together with a copy of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds to pay the purchase price and applicable tax withholding amounts (if any), in which event the Shares acquired shall be delivered to the broker promptly following receipt of payment.
		

		
			(c)          When the requirements of this Section have been satisfied, the Committee shall take such action as is necessary to cause the issuance of a stock certificate or cause Shares to be issued by book-entry procedures, in either event evidencing the Option Holder's ownership of such Shares. The Person exercising the Option shall have no right to vote or to receive dividends, nor have any other rights with respect to the Shares, prior to the date the Shares are transferred to such Person on the stock transfer records of the Company, and no adjustments shall be made for any dividends or other rights for which the record date is prior to the date as of which the transfer is effected.
		

		
			Section 5.8           Limitations on Options.
		

		
			(a)          An Option by its terms shall not be transferable by the Option Holder other than by will or the laws of descent and distribution, or pursuant to the terms of a Domestic Relations Order, and shall be exercisable, during the life of the Option Holder, only by the Option Holder or an alternate payee designated pursuant to such a Domestic Relations Order; provided, however, that a Participant may, at any time at or after the grant of a Non-Qualified Stock Option under the Plan, apply to the Committee for approval to transfer all or any portion of such Non-Qualified Stock Option which is then unexercised to such Participant’s Family Member. The Committee may approve or withhold approval of such transfer in its sole and absolute discretion. If such transfer is approved, it shall be effected by written notice to the Company given in such form and manner as the Committee may prescribe and actually received by the Company prior to the death of the person giving it. Thereafter, the transferee shall have, with respect to such Non-Qualified Stock Option, all of the rights, privileges and obligations which would attach thereunder to the Participant. If a privilege of the Option depends on the life, Service or other status of the Participant, such privilege of the Option for the transferee shall continue to depend upon the life, Service or other status of the Participant. The Committee shall have full and exclusive authority to interpret and apply the provisions of the Plan to transferees to the extent not specifically addressed herein.
		

		
			(b)          The Company's obligation to deliver Shares with respect to an Option shall, if the Committee so requests, be conditioned upon the receipt of a representation as to the investment intention of the Option Holder to whom such Shares are to be delivered, in such form as the Committee shall determine to be necessary or advisable to comply with the provisions of applicable federal, state or local law. It may be provided that any such representation shall become inoperative upon a registration of the Shares or upon the occurrence of any other event eliminating the necessity of such representation. The Company shall not be required to deliver any Shares under the Plan prior to:
		

		
			
		

		
			

		 

		

			A-8

		

 

		

		
			 
		

		
			(i)           the admission of such Shares to listing on any stock exchange or trading on any automated quotation system on which Shares may then be listed or traded; or
		

		
			(ii)          the completion of such registration or other qualification under any state or federal law, rule or regulation as the Committee shall determine to be necessary or advisable.
		

		
			(c)          An Option Holder may designate a Beneficiary to receive any Options that may be exercised after his death. Such designation and any change or revocation of such designation shall be made in writing in the form and manner prescribed by the Committee. In the event that the designated Beneficiary dies prior to the Option Holder, or in the event that no Beneficiary has been designated, any Options that may be exercised following the Option Holder's death shall be transferred to the Option Holder's estate. If the Option Holder and his or her Beneficiary shall die in circumstances that cause the Committee, in its discretion, to be uncertain which shall have been the first to die, the Option Holder shall be deemed to have survived the Beneficiary.
		

		
			Section 5.9           Prohibition Against Option Repricing.
		

		
			Except as provided in Section 8.3 and notwithstanding any other provision of this Plan, neither the Committee nor the Board shall have the right or authority following the grant of an Option pursuant to the Plan to amend or modify the Exercise Price of any such Option, or to cancel the Option at a time when the Exercise Price is greater than the Fair Market Value of the Shares in exchange for another Option, Award or other form of compensation (e.g., a cash payment).
		

		
			ARTICLE VI
		

		
			RESTRICTED STOCK AWARDS
		

		
			Section 6.1           In General.
		

		
			(a)          Each Restricted Stock Award shall be evidenced by an Award Agreement which shall specify:
		

		
			(i)           the number of Shares covered by the Restricted Stock Award;
		

		
			(ii)          the amount, if any, which the Participant shall be required to pay to the Company in consideration for the issuance of such Shares;
		

		
			(iii)         the date of grant of the Restricted Stock Award;
		

		
			(iv)         the Vesting Date for the Restricted Stock Award and the performance conditions, if any, which must be satisfied in order for the Vesting Date to occur;
		

		
			(v)          the rights of the Participant with respect to dividends, voting rights and other rights and preferences associated with such Shares; and
		

		
			such other terms and conditions not inconsistent with the Plan as the Committee may, in its discretion, prescribe.
		

		
			(b)          All Restricted Stock Awards shall be in the form of issued and outstanding Shares that shall be registered in the name of the Participant, subject to written transfer restriction instructions issued to the Company’s stock transfer agent, together with an irrevocable stock power executed by the Participant in favor of and held by the Committee or its designee, pending the vesting or forfeiture of the Restricted Stock Award.  The Shares shall at all times prior to the applicable Vesting Date be subject to the following restriction, communicated in writing to the Company’s stock transfer agent:
		

		
			These shares of common stock are subject to the terms of an Award Agreement between FS Bancorp, Inc. and [Name of Participant] dated [Award Date] made pursuant to the terms of the FS Bancorp, Inc. 2018 Equity Incentive Plan, copies of which are on file at the executive
		

		
			
		

		
			

		 

		

			A-9

		

 

		

		
			 
		

		
			offices of FS Bancorp, Inc. and may not be sold, encumbered, hypothecated or otherwise transferred, except in accordance with the terms of such Plan and Award Agreement.
		

		
			or such other restrictive communication or legend as the Committee, in its discretion, may specify.
		

		
			(c)          Unless otherwise set forth in the Award Agreement, a Restricted Stock Award by its terms shall not be transferable by the Participant other than by will or by the laws of descent and distribution, or pursuant to the terms of a Domestic Relations Order; provided, however, that a Participant may, at any time at or after the grant of a Restricted Stock Award under the Plan, apply to the Committee for approval to transfer all or any portion of such Restricted Stock Award which is then unvested to such Participant’s Family Member.  The Committee may approve or withhold approval of such transfer in its sole and absolute discretion. If such transfer is approved, it shall be effected by written notice to the Company given in such form and manner as the Committee may prescribe and actually received by the Company prior to the death of the person giving it. Thereafter, the transferee shall have, with respect to such Restricted Stock Award, all of the rights, privileges and obligations which would attach thereunder to the Participant. If a privilege of the Restricted Stock Award depends on the life, Service or other status of the Participant, such privilege of the Restricted Stock Award for the transferee shall continue to depend upon the life, Service or other status of the Participant. The Committee shall have full and exclusive authority to interpret and apply the provisions of the Plan to transferees to the extent not specifically addressed herein.
		

		
			Section 6.2           Vesting Date.
		

		
			(a)          Subject to any restrictions set forth in the Plan:
		

		
			(i)           the Vesting Date for each Restricted Stock Award shall be determined by the Committee and specified in the Award Agreement; and
		

		
			(ii)          notwithstanding Section 6.2(a)(i), no more than 32,500 Shares in total may be awarded under the Plan, whether pursuant to an Option or a Restricted Stock Award, with a Vesting Date that is earlier than the first anniversary of the date the Award is granted (taking into account Shares whose Vesting Date is accelerated by the Committee pursuant to Section 4.2(b) to a date that is earlier than the first anniversary of the date the Award is granted).
		

		
			(b)          Unless otherwise determined by the Committee and specified in the Award Agreement:
		

		
			(i)           if the Participant of a Restricted Stock Award terminates Service prior to the Vesting Date for any reason other than death or Disability, or prior to a Change in Control, any unvested Shares shall be forfeited without consideration;
		

		
			(ii)          if the Participant of a Restricted Stock Award terminates Service prior to the Vesting Date on account of death or Disability, the Vesting Date shall be accelerated to the date of termination of the Participant’s Service with the Company; and
		

		
			(iii)         if a Change in Control occurs prior to the Vesting Date of a Restricted Stock Award that is outstanding on the date of the Change in Control, and the Participant experiences an Involuntary Separation from Service other than a Termination for Cause during the 365-day period following the date of such Change in Control, then the Vesting Date for any non-vested Restricted Stock Award shall be accelerated to the date of the Participant’s Involuntary Separation from Service.  Notwithstanding the preceding sentence, if at the effective time of the Change in Control the successor to the Company’s business and/or assets does not either assume the outstanding Restricted Stock Award or replace the outstanding Restricted Stock Award with an award that is determined by the Committee to be at least equivalent in value to such outstanding Restricted Stock Award on the date of the Change in Control, then the Vesting Date of such outstanding Restricted Stock Award shall be accelerated to the earliest date of the Change in Control.
		

		
			
		

		
			

		 

		

			A-10

		

 

		

		
			 
		

		
			Section 6.3           Dividend Rights.
		

		
			Any dividends or distributions (collectively referred to herein as “Dividends”) declared and paid with respect to Shares subject to a Restricted Stock Award, whether or not in cash, shall be held by the Company on behalf of the Participant.  If the Participant becomes vested in his Shares that are subject to the Restricted Stock Award, then the Company shall pay the Dividends related to those Shares to the Participant or his Beneficiary in a lump sum, without interest, no later than thirty (30) days following the Vesting Date of those Shares.   The Participant and his Beneficiaries heirs, successors or assigns shall have no legal or equitable rights, interests or claims in any property or assets of the Company or an Affiliate with respect to held Dividends, and such Dividends shall, until paid, remain general, unpledged and unrestricted assets of the Company.  The Company’s obligation under the Plan with respect to held Dividends shall be merely of an unfunded and unsecured promise to pay money in the future.
		

		
			Section 6.4           Voting Rights.
		

		
			Unless otherwise specified in the Award Agreement, voting rights appurtenant to the Shares subject to the Restricted Stock Award shall be exercised by the Participant.
		

		
			Section 6.5           Designation of Beneficiary.
		

		
			A Participant who has received a Restricted Stock Award may designate a Beneficiary to receive any unvested Shares that become vested on the date of the Participant’s death.  Such designation (and any change or revocation of such designation) shall be made in writing in the form and manner prescribed by the Committee.  In the event that the Beneficiary designated by a Participant dies prior to the Participant, or in the event that no Beneficiary has been designated, any vested Shares that become available for distribution on the Participant’s death shall be paid to the executor or administrator of the Participant’s estate.
		

		
			Section 6.6           Manner of Distribution of Awards.
		

		
			The Company's obligation to deliver Shares with respect to a Restricted Stock Award shall, if the Committee so requests, be conditioned upon the receipt of a representation as to the investment intention of the Participant or Beneficiary to whom such Shares are to be delivered, in such form as the Committee shall determine to be necessary or advisable to comply with the provisions of applicable federal, state or local law. It may be provided that any such representation shall become inoperative upon a registration of the Shares or upon the occurrence of any other event eliminating the necessity of such representation. The Company shall not be required to deliver any Shares under the Plan prior to (i) the admission of such Shares to listing on any stock exchange or trading on any automated quotation system on which Shares may then be listed or traded, or (ii) the completion of such registration or other qualification under any state or federal law, rule or regulation as the Committee shall determine to be necessary or advisable.
		

		
			ARTICLE VII
		

		
			ADDITIONAL TAX PROVISION
		

		
			Section 7.1           Tax Withholding Rights.
		

		
			The Company shall have the power and the right to deduct or withhold, or require a Person to remit to the Company, an amount sufficient to satisfy Federal, state and local taxes (including the Participant’s FICA obligation) required by law to be withheld with respect to any grant, exercise or payment made under or as a result of the Plan.  In this regard, where any Person is entitled to receive Shares, the Company shall have the right to require such Person to pay to the Company the amount of any tax which the Company is required to withhold with respect to such Shares, or, in lieu thereof, to retain, or to sell without notice, a sufficient number of Shares to cover the minimum amount required to be withheld, provided, however, that (a) no Shares are withheld with a value exceeding the maximum amount of tax that may be required to be withheld by law (or such other amount as may be permitted while still avoiding classification of the Award as a liability for financial accounting purposes), and (b) with respect to an Award held by any Participant who is subject to the filing requirements of Section 16 of the
		

		
			
		

		
			

		 

		

			A-11

		

 

		

		
			 
		

		
			Exchange Act, any such share withholding must be specifically approved by the Compensation Committee as the applicable method that must be used to satisfy the tax withholding obligation or such share withholding procedure must otherwise satisfy the requirements for an exempt transaction under Section 16(b) of the Exchange Act.
		

		
			ARTICLE VIII
		

		
			AMENDMENT AND TERMINATION
		

		
			Section 8.1           Termination
		

		
			The Board may suspend or terminate the Plan in whole or in part at any time prior to the tenth anniversary of the Effective Date by giving written notice of such suspension or termination to the Committee.  Unless sooner terminated, the Plan shall terminate automatically on the tenth anniversary of the Effective Date.  In the event of any suspension or termination of the Plan, all Awards previously granted under the Plan that are outstanding on the date of such suspension or termination of the Plan shall remain outstanding and exercisable for the period and on the terms and conditions set forth in the Award Agreements evidencing such Awards.
		

		
			Section 8.2           Amendment.
		

		
			The Board may amend or revise the Plan in whole or in part at any time; provided, however, that, to the extent required to avoid or comply with the application of Section 409A, or the corporate governance standards imposed under the listing or trading requirements imposed by any national securities exchange or automated quotation system on which the Company lists or seeks to list or trade Shares, no such amendment or revision shall be effective if it amends a material term of the Plan unless approved by the holders of a majority of the votes cast on a proposal to approve such amendment or revision.
		

		
			Section 8.3           Adjustments in the Event of Business Reorganization.
		

		
			In the event any recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off, combination, exchange of Shares or other securities, stock dividend or other special and nonrecurring dividend or distribution (whether in the form of cash, securities or other property), liquidation, dissolution, or other similar corporate transaction or event, affects the Shares such that an adjustment is appropriate in order to prevent dilution or enlargement of the rights of Participants under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of:
		

		
			(i)           the number and kind of securities deemed to be available thereafter for grants of Awards in the aggregate to all Participants;
		

		
			(ii)          the number and kind of securities that may be delivered or deliverable in respect of outstanding Awards; and
		

		
			(iii)         the Exercise Price of Options.
		

		
			In addition, the Committee is authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards (including, without limitation, cancellation of Awards in exchange for the in-the-money value, if any, of the vested portion thereof, or substitution of Awards using stock of a successor or other entity) in recognition of unusual or nonrecurring events (including, without limitation, events described in the preceding sentence) affecting the Company or any Affiliate or the financial statements of the Company or any Affiliate, or in response to changes in applicable laws, regulations, or accounting principles.
		

		
			
		

		
			

		 

		

			A-12

		

 

		

		
			 
		

		
			ARTICLE IX
		

		
			MISCELLANEOUS
		

		
			Section 9.1           Status as an Employee Benefit Plan; Non-Application of Section 409A.
		

		
			This Plan is not intended to satisfy the requirements for qualification under Section 401(a) of the Code or to satisfy the definitional requirements for an "employee benefit plan" under Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended. It is intended to be a non-qualified incentive compensation program that is exempt from the regulatory requirements of the Employee Retirement Income Security Act of 1974, as amended. The Plan shall be construed and administered so as to effectuate this intent.  Since only Options and Restricted Stock Awards that qualify for the exemption under Section 409A may be awarded under the Plan, Section 409A shall not apply to Awards granted hereunder.  Accordingly, no Award may granted hereunder that is subject to Section 409A, and any Award so granted shall be void ab initio.  It is also intended that Dividends that are held as described in Section 6.3 shall, if payable, be paid promptly enough to cause such payment to qualify as a “short-term deferral” that is exempt from the application of Section 409A.
		

		
			Section 9.2           No Right to Continued Service.
		

		
			Neither the establishment of the Plan nor any provisions of the Plan nor any action of the Board or Committee with respect to the Plan shall be held or construed to confer upon any Participant any right to a continuation of his or her position as a director, emeritus director, officer, employee or advisory director of the Company or any Affiliate.  The Company reserves the right to remove any participating member of the Board or dismiss any Participant or otherwise deal with any Participant to the same extent as though the Plan had not been adopted.
		

		
			Section 9.3           Construction of Language.
		

		
			Whenever appropriate in the Plan, words used in the singular may be read in the plural, words used in the plural may be read in the singular, and words importing the masculine gender may be read as referring equally to the feminine or the neuter. Any reference to an Article or Section number shall refer to an Article or Section of this Plan unless otherwise indicated.
		

		
			 
		

		
			Section 9.4           Severability.
		

		
			In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.
		

		
			 
		

		
			Section 9.5           Governing Law.
		

		
			The Plan shall be construed, administered and enforced according to the laws of the State of Washington without giving effect to the conflict of laws principles thereof.  The federal and state courts located in the County or contiguous counties in which the Company’s headquarters are located shall have exclusive jurisdiction over any claim, action, complaint or lawsuit brought under the terms of the Plan. By accepting any Award granted under this Plan, the Participant, and any other person claiming any rights under the Plan, agrees to submit himself, and any such legal action as he shall bring under the Plan, to the sole jurisdiction of such courts for the adjudication and resolution of any such disputes.
		

		
			Section 9.6           Headings.
		

		
			The headings of Articles and Sections are included solely for convenience of reference.  If there is any conflict between such headings and the text of the Plan, the text shall control.
		

		
			
		

		
			

		 

		

			A-13

		

 

		

		
			 
		

		
			Section 9.7           Non-Alienation of Benefits.
		

		
			The right to receive a benefit under the Plan shall not be subject in any manner to anticipation, alienation or assignment, nor shall such right be liable for or subject to debts, contracts, liabilities, engagements or torts.
		

		
			Section 9.8           Notices.
		

		
			Any communication required or permitted to be given under the Plan, including any notice, direction, designation, comment, instruction, objection or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally or three (3) days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to such party at the address listed below, or at such other address as one such party may by written notice specify to the other party:
		

		
			(a)          If to the Committee:
		

		
			FS Bancorp, Inc.
		

		
			6920 220th Street, SW
		

		
			Mountlake Terrace, Washington 98043
		

		
			Attention:  Corporate Secretary
		

		
			 
		

		
			(b)          If to a Participant, to such person’s address as shown in the Company’s records.
		

		
			Section 9.9           Approval of Shareholders.
		

		
			The Plan shall be subject to approval by the Company’s shareholders within twelve (12) months before or after the date the Board adopts the Plan.
		

		
			Section 9.10            Clawback.
		

		
			All Awards (whether vested or unvested) shall be subject to such clawback (recovery) as may be required to be made pursuant to law, rule, regulation or stock exchange listing requirement or any policy of the Company adopted pursuant to any such law, rule, regulation or stock exchange listing requirement.
		

		 

		

			A-14Exhibit 4.1

 

[FORM OF WARRANT]

 

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

 

SMTC CORPORATION

 

Warrant To Purchase Common
Stock

 

Warrant No.: __________

Number of Shares of Common Stock:_____________

Date of Issuance: [__________], 2018 ("Issuance Date")

 

SMTC Corporation, a Delaware corporation (the
"Company"), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, [_______________], the registered holder hereof or its permitted
assigns (the "Holder"), is entitled, subject to the terms set forth below, to purchase from the Company, at the
Exercise Price (as defined below) then in effect, at any time or times on or after the Issuance Date, but not after 11:59 p.m.,
New York time, on the Expiration Date, (as defined below), [_______________] (_______________)fully paid nonassessable shares of
Common Stock, subject to adjustment as provided herein (the "Warrant Shares"). Except as otherwise defined herein,
capitalized terms in this Warrant to Purchase Common Stock (including any Warrants to Purchase Common Stock issued in exchange,
transfer or replacement hereof, this "Warrant"), shall have the meanings set forth in Section 18. This Warrant
is one of the Warrants to purchase Common Stock (the "Lender Warrants") issued pursuant to Section 1 of that certain
Subscription Agreement, dated as of November [•], 2018 (the "Subscription Date"), by and among the Company
and the investors (the "Subscribers") referred to therein (the "Subscription Agreement"). Capitalized
terms used herein and not otherwise defined shall have the definitions ascribed to such terms in the Subscription Agreement.

 

    

    

    

 

1.                 
EXERCISE OF WARRANT.

 

(a)   
Mechanics of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations
set forth in Section 1(f)), this Warrant may be exercised by the Holder at any time or times on or after the Issuance Date, in
whole or in part, by (i) delivery of a written notice, in the form attached hereto as Exhibit A (the "Exercise
Notice"), of the Holder's election to exercise this Warrant and (ii) (A) payment to the Company of an amount equal
to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the "Aggregate
Exercise Price") in cash by wire transfer of immediately available funds or (B) by notifying the Company that this Warrant
is being exercised pursuant to a Cashless Exercise (as defined in Section 1(d)). No ink-original Exercise Notice shall be required,
nor shall any medallion guarantee (or other type of guarantee or notarization) of any Exercise Notice be required. Execution and
delivery of the Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation
of the original Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares.
On or before the first (1st) Trading Day following the date on which the Holder has delivered an Exercise Notice to
the Company, the Company shall transmit by facsimile or electronic mail an acknowledgment of confirmation of receipt of the Exercise
Notice to the Holder and the Company's transfer agent (the "Transfer Agent"). On or before the earlier of (i)
the second (2nd) Trading Day and (ii) the number of Trading Days comprising the Standard Settlement Period, in each
case, following the date on which the Holder has delivered the Exercise Notice to the Company, so long as the Holder delivers the
Aggregate Exercise Price (or notice of a Cashless Exercise) on or prior to the first (1st) Trading Day following the
date on which the Holder has delivered the Exercise Notice to the Company (a "Share Delivery Date") (provided
that if the Aggregate Exercise Price has not been delivered by such date, the applicable Share Delivery Date shall be one (1) Trading
Day after the Aggregate Exercise Price (or notice of a Cashless Exercise) is delivered), the Company shall (X) provided that the
Transfer Agent is participating in The Depository Trust Company ("DTC") Fast Automated Securities Transfer Program
and (A) the Warrant Shares are subject to an effective resale registration statement in favor
of the Holder or (B) if exercised via Cashless Exercise, at a time when Rule 144 would be available for immediate resale of the
Warrant Shares by the Holder, credit such aggregate number of Warrant Shares to which the Holder is entitled pursuant to
such exercise to the Holder's or its designee's balance account with DTC through its Deposit / Withdrawal At Custodian system,
or (Y) if (A) the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program or
(B) the Warrant Shares are not subject to an effective resale registration statement in favor of the Holder and, if exercised via
Cashless Exercise, at a time when Rule 144 would not be available for immediate resale of the Warrant Shares by the Holder,
issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company's
share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant
to such exercise. The Company shall be responsible for all fees and expenses of the Transfer Agent and all fees and expenses with
respect to the issuance of Warrant Shares via DTC, if any, including without limitation for same day processing. Upon delivery
of the Exercise Notice, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant
Shares with respect to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the
Holder's DTC account or the date of delivery of the certificates evidencing such Warrant Shares, as the case may be. If this Warrant
is submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this
Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall
as soon as practicable and in no event later than four (4) Trading Days after any exercise and at its own expense, issue a new
Warrant (in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares issuable immediately
prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No
fractional Warrant Shares are to be issued upon the exercise of this Warrant, but rather the number of Warrant Shares to be issued
shall be rounded up to the nearest whole number. The Company shall pay any and all taxes which may be payable with respect to the
issuance and delivery of Warrant Shares upon exercise of this Warrant. The Company's obligations to issue and deliver Warrant Shares
in accordance with the terms and subject to the conditions hereof are absolute and unconditional, irrespective of any action or
inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment
against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination.

 

    	- 2 -

    

    

 

(b)  
Exercise Price. For purposes of this Warrant, "Exercise Price" means $0.01, subject to adjustment
as provided herein.

 

(c)   
Company's Failure to Timely Deliver Securities. If the Company shall fail for any reason or for no reason to issue
to the Holder on or prior to the applicable Share Delivery Date either (I) if the Transfer Agent is not participating in the DTC
Fast Automated Securities Transfer Program, a certificate for the number of shares of Common Stock to which the Holder is entitled
and register such shares of Common Stock on the Company's share register or if the Transfer Agent is participating in the DTC Fast
Automated Securities Transfer Program, to credit the Holder's balance account with DTC, for such number of shares of Common Stock
to which the Holder is entitled upon the Holder's exercise of this Warrant or (II) if the Registration Statement (as defined in
the Registration Rights Agreement) covering the resale of the Warrant Shares that are the subject of the Exercise Notice (the "Unavailable
Warrant Shares") is not available for the resale of such Unavailable Warrant Shares and the Company fails to promptly,
but in no event later than as is required pursuant to the Registration Rights Agreement (x) so notify the Holder and (y) deliver
the Warrant Shares electronically without any restrictive legend by crediting such aggregate number of Warrant Shares to which
the Holder is entitled pursuant to such exercise to the Holder's or its designee's balance account with DTC through its Deposit
/ Withdrawal At Custodian system (the event described in the immediately foregoing clause (II) is hereinafter referred as a "Notice
Failure" and together with the event described in clause (I) above, an "Exercise Failure"), then, in
addition to all other remedies available to the Holder, the Holder, upon written notice to the Company, may void its Exercise Notice
with respect to, and retain or have returned, as the case may be, any portion of this Warrant that has not been exercised pursuant
to such Exercise Notice; provided that the voiding of an Exercise Notice shall not affect the Company's obligations to make any
payments which have accrued prior to the date of such notice pursuant to this Section 1(c) or otherwise. In addition to the foregoing,
if on or prior to the applicable Share Delivery Date either (I) if the Transfer Agent is not participating in the DTC Fast Automated
Securities Transfer Program, the Company shall fail to issue and deliver a certificate to the Holder and register such shares of
Common Stock on the Company's share register or, if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer
Program, credit the Holder's balance account with DTC for the number of shares of Common Stock to which the Holder is entitled
upon the Holder's exercise hereunder or pursuant to the Company's obligation pursuant to clause (ii) below or (II) a Notice Failure
occurs, and if on or after such Trading Day the Holder purchases (in an open market transaction or otherwise) shares of Common
Stock relating to the applicable Exercise Failure (a "Buy-In"), then the Company shall, within three (3) Trading
Days after the Holder's request and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's
total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock
with respect to the Buy-In (the "Buy-In Price"), at which point the Company's obligation to deliver such certificate
(and to issue such shares of Common Stock) or credit the Holder's balance account with DTC for such shares of Common Stock shall
terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such shares
of Common Stock or credit the Holder's balance account with DTC, as applicable, and pay cash to the Holder in an amount equal to
the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) any trading price
of the Common Stock selected by the Holder in writing as in effect at any time during the period beginning on the date of delivery
of the applicable Exercise Notice and ending on the applicable Share Delivery Date. Nothing herein shall limit the Holder's right
to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company's failure to timely deliver certificates representing shares of
Common Stock (or to electronically deliver such shares of Common Stock) upon the exercise of this Warrant as required pursuant
to the terms hereof.

 

    	- 3 -

    

    

 

(d)  
Cashless Exercise. Notwithstanding anything contained herein to the contrary, the Holder may, in its sole discretion,
exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company
upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the "Net Number"
of shares of Common Stock determined according to the following formula (a "Cashless Exercise"):

 

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

D

 

For purposes of the foregoing formula:

 

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

 

B= the arithmetic average
of the Closing Sale Prices of the Common Stock for the five (5) consecutive Trading Days ending on the date immediately preceding
the date of the Exercise Notice.

 

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

 

D = the Closing Sale Price
of the Common Stock on the date of the Exercise Notice

 

For purposes of Rule 144(d) promulgated under
the Securities Act, as in effect on the date hereof, the Company hereby acknowledges and agrees that the Warrant Shares issued
in a Cashless Exercise shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall
be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Subscription Agreement. The Company
agrees not to take any position contrary to this Section 1(d).

 

    	- 4 -

    

    

 

(e)   
Disputes. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of
the Warrant Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve
such dispute in accordance with Section 12.

 

(f)   
Limitations on Exercises.

 

(i)    
Beneficial Ownership. Notwithstanding anything to the contrary contained herein, the Company shall not effect the
exercise of any portion of this Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, pursuant
to the terms and conditions of this Warrant and any such exercise shall be null and void and treated as if never made, to the extent
that after giving effect to such exercise, the Holder together with the other Attribution Parties collectively would beneficially
own in excess of 4.99% (the "Maximum Percentage") of the number of shares of Common Stock outstanding immediately
after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially
owned by the Holder and the other Attribution Parties shall include the number of shares of Common Stock held by the Holder and
all other Attribution Parties plus the number of shares of Common Stock issuable upon exercise of this Warrant with respect to
which the determination of such sentence is being made, but shall exclude the number of shares of Common Stock which would be issuable
upon (A) exercise of the remaining, unexercised portion of this Warrant beneficially owned by the Holder or any of the other Attribution
Parties and (B) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company (including,
without limitation, any convertible notes or convertible preferred stock or warrants, including the other Lender Warrants) beneficially
owned by the Holder or any other Attribution Party subject to a limitation on conversion or exercise analogous to the limitation
contained in this Section 1(f)(i). For purposes of this Section 1(f)(i), beneficial ownership shall be calculated in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as amended (the "1934 Act"). For purposes of determining
the number of outstanding shares of Common Stock the Holder may acquire upon the exercise of this Warrant without exceeding the
Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company's most
recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing with the Securities
and Exchange Commission (the "SEC"), as the case may be, (y) a more recent public announcement by the Company
or (3) any other written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding
(the "Reported Outstanding Share Number"). If the Company receives an Exercise Notice from the Holder at a time
when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding Share Number, the Company shall
(i) notify the Holder in writing of the number of shares of Common Stock then outstanding and, to the extent that such Exercise
Notice would otherwise cause the Holder's beneficial ownership, as determined pursuant to this Section 1(f)(i), to exceed the Maximum
Percentage, the Holder must notify the Company of a reduced number of Warrant Shares to be purchased pursuant to such Exercise
Notice (the number of shares by which such purchase is reduced, the "Reduction Shares") and (ii) as soon as reasonably
practicable, the Company shall return to the Holder any exercise price paid by the Holder for the Reduction Shares. For any reason
at any time, upon the written or oral request of the Holder, the Company shall within two (2) Trading Days confirm orally and in
writing or by electronic mail to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding
shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including
this Warrant, by the Holder and any other Attribution Party since the date as of which the Reported Outstanding Share Number was
reported. In the event that the issuance of shares of Common Stock to the Holder upon exercise of this Warrant results in the Holder
and the other Attribution Parties being deemed to beneficially own, in the aggregate, more than the Maximum Percentage of the number
of outstanding shares of Common Stock (as determined under Section 13(d) of the 1934 Act), the number of shares so issued by which
the Holder's and the other Attribution Parties' aggregate beneficial ownership exceeds the Maximum Percentage (the "Excess
Shares") shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not have the power to vote
or to transfer the Excess Shares. As soon as reasonably practicable after the issuance of the Excess Shares has been deemed null
and void, the Company shall return to the Holder the exercise price paid by the Holder for the Excess Shares. Upon delivery of
a written notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage
not in excess of 9.99% as specified in such notice; provided that (i) any such increase in the Maximum Percentage will not be effective
until the sixty-first (61st) day after such notice is delivered to the Company and (ii) any such increase or decrease
will apply only to the Holder and the other Attribution Parties and not to any other holder of Lender Warrants that is not an Attribution
Party of the Holder. For purposes of clarity, the shares of Common Stock issuable pursuant to the terms of this Warrant in excess
of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes of
Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to exercise this Warrant pursuant to this paragraph shall
have any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of exercisability.
The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms
of this Section 1(f)(i) to the extent necessary to correct this paragraph or any portion of this paragraph which may be defective
or inconsistent with the intended beneficial ownership limitation contained in this Section 1(f)(i) or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitation contained in this paragraph may not be waived
and shall apply to a successor holder of this Warrant.

 

    	- 5 -

    

    

 

(ii)  
Principal Market Regulation. The Company shall not be obligated to issue any
shares of Common Stock upon exercise of this Warrant and the Holder shall not have the right to receive upon exercise of this Warrant
any shares of Common Stock, to the extent the issuance of such shares of Common Stock
would exceed the aggregate number of shares of Common Stock which the Company may issue upon exercise of the Lender Warrants without
breaching the Company's obligations under the rules or regulations of the Principal Market (the "Exchange Cap"),
except that such limitation shall not apply in the event that the Company obtains the approval of its shareholders as required
by the applicable rules of the Principal Market for issuances of Common Stock in excess of such amount. Until such approval is
obtained, no Subscriber shall be issued in the aggregate, upon exercise of any Lender Warrants, shares of Common Stock in an amount
greater than the product of the Exchange Cap multiplied by a fraction, the numerator of which is the total number of shares of
Common Stock underlying the Lender Warrant issued to such Subscriber pursuant to the Subscription Agreement
on the Issuance Date and the denominator of which is the aggregate number of shares of Common Stock underlying the Lender Warrants
issued to the Subscribers pursuant to the Subscription Agreement on the Issuance Date
(with respect to each Subscriber, the "Exchange Cap Allocation"). In the event that any Subscriber or transferee
of Warrants shall sell or otherwise transfer any of the Holder's Lender Warrants such transferee shall be allocated a pro rata
portion of such Subscriber's Exchange Cap Allocation, and the restrictions of the prior sentence shall apply to such transferee
with respect to the portion of the Exchange Cap Allocation allocated to such transferee. In the event that any holder of Lender
Warrants shall exercise all of such holder's Lender Warrants into a number of shares of Common Stock which, in the aggregate, is
less than such holder's Exchange Cap Allocation, then the difference between such holder's Exchange Cap Allocation and the number
of shares of Common Stock actually issued to such holder shall be allocated to the respective Exchange Cap Allocations of the remaining
holders of Lender Warrants on a pro rata basis in proportion to the number of shares of Common Stock underlying the Lender Warrants
then held by each such holder. In the event that the Company is prohibited from issuing any Warrant Shares for which an Exercise
Notice has been received as a result of the operation of this Section 1(f)(ii) after the Company failed to obtain the Nasdaq Stockholder
Approval (as defined in the Subscription Agreement) on or prior to the Nasdaq Stockholder Meeting Deadline (as defined in the Subscription
Agreement) pursuant to Section 4.5(b) of the Subscription Agreement, then, unless the Holder elects to void such exercise,
in exchange for cancellation of the applicable number of Warrant Shares that is subject to such Exercise Notice, the Holder may
require the Company to pay to the Holder within three (3) Trading Days of the applicable exercise, cash by wire transfer of immediately
available funds, which cash amount for each share of Common Stock that the Company is unable to deliver pursuant to this Section
1(f)(ii) shall be equal to the highest trading price of the Common Stock in effect at any time during the period beginning on the
applicable date of the applicable Exercise Notice and ending on the date the Company makes the payment provided for in this sentence.

 

    	- 6 -

    

    

 

(g)  
Insufficient Authorized Shares. If at any time while this Warrant remains outstanding the Company does not have a
sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise
of this Warrant at least a number of shares of Common Stock equal to: (x) prior to the earlier to occur of the Authorized Capital
Increase Approval Date (as defined in the Subscription Agreement) and the Authorized Capital Increase Stockholder Meeting Deadline
(as defined in the Subscription Agreement), 125% of the number of shares of Common Stock as shall from time to time be necessary
to effect the exercise of all of this Warrant then outstanding, including after giving effect to Section 2(a) and/or Section 2(c)
of this Warrant and (y) on or after the earlier to occur of the Authorized Capital Increase Approval Date and the Authorized Capital
Increase Stockholder Meeting Deadline, 150% of the number of shares of Common Stock as shall from time to time be necessary to
effect the exercise of all of this Warrant then outstanding, including after giving effect to Section 2(a) and/or Section 2(c)
of this Warrant (the number of shares of Common Stock required to be reserved for issuance upon exercise of the Warrants set forth
in clause (x) or (y), as applicable, the "Required Reserve Amount" and the failure to have such sufficient number
of authorized and unreserved shares of Common Stock, an "Authorized Share Failure"), then the Company shall immediately
take all action necessary to increase the Company's authorized shares of Common Stock to an amount sufficient to allow the Company
to reserve the Required Reserve Amount for this Warrant then outstanding, including, without limitation, calling a special meeting
of stockholders to authorize additional shares to meet the Company's obligations under this Section 1(g), in the case of an insufficient
number of authorized shares, obtain shareholder approval of an increase in such authorized number of shares, and voting the management
shares of the Company in favor of an increase in the authorized shares of the Company to ensure that the number of authorized shares
is sufficient to meet the Required Reserve Amount. Without limiting the generality of the foregoing sentence, as soon as practicable
after the date of the occurrence of an Authorized Share Failure, but in no event later than ninety (90) days after the occurrence
of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number
of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy
statement and shall use reasonable best efforts to solicit its stockholders' approval of such increase in authorized shares of
Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal. Notwithstanding
the foregoing, if any such time of an Authorized Share Failure, the Company is able to obtain the written consent of a majority
of the shares of its issued and outstanding Common Stock to approve the increase in the number of authorized shares of Common Stock,
the Company may satisfy this obligation by obtaining such consent and submitting for filing with the SEC an Information Statement
on Schedule 14C. In the event that upon any exercise of this Warrant, the Company does not have sufficient authorized shares to
deliver in satisfaction of such exercise, then unless the Holder elects to void such attempted exercise, in exchange for cancellation
of the applicable number of Warrant Shares that is subject to such Exercise Notice the Holder may require the Company to pay to
the Holder within three (3) Trading Days of the applicable exercise, cash by wire transfer of immediately available funds, which
cash amount for each share of Common Stock that the Company is unable to deliver pursuant to this Section 1(g) shall be equal to
the highest trading price of the Common Stock in effect at any time during the period beginning on the applicable date of the applicable
Exercise Notice and ending on the date the Company makes the payment provided for in this sentence.

 

    	- 7 -

    

    

 

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

 

(a)   
Adjustment Upon Issuance of Shares of Common Stock. If and whenever on or after the Subscription Date, the Company
issues or sells, or in accordance with this Section 2 is deemed to have issued or sold, any shares of Common Stock (including the
issuance or sale (or deemed issuance or sale) of shares of Common Stock owned or held by or for the account of the Company, but
excluding shares of Common Stock issued or sold (or deemed to have been issued or sold) by the Company in connection with any Excluded
Securities for a consideration per share (the "New Issuance Price") less than a price (the "Applicable
Price") equal to the Market Price per share of the Common Stock immediately prior to such issuance or sale (or deemed
issuance or sale) (the foregoing a "Dilutive Issuance"), then immediately upon such Dilutive Issuance, the number
of Warrant Shares issuable upon exercise of this Warrant immediately prior to any such Dilutive Issuance shall be increased (but
in no event decreased) to a number of Warrant Shares equal to the product obtained by multiplying the number of Warrant Shares
issuable upon exercise of this Warrant immediately prior to such Dilutive Issuance by a fraction (which shall in no event be less
than one):

 

(i) the numerator of which shall be
the number of shares of Common Stock Deemed Outstanding immediately after such Dilutive Issuance; and

 

(ii) the denominator of which shall
be the sum of (A) the number of shares of Common Stock Deemed Outstanding immediately prior to such Dilutive Issuance plus (B)
the aggregate number of shares of Common Stock which the aggregate amount of consideration, if any, received by the Company upon
such Dilutive Issuance would purchase at the Market Price per share of the Common Stock immediately prior to such Dilutive Issuance.

 

    	- 8 -

    

    

 

For purposes of determining the adjusted number
of Warrant Shares under this Section 2(a), the following shall be applicable:

 

(i)    
Issuance of Options. If the Company in any manner grants or sells any Options after the Subscription Date, whether
or not such Options or the right to convert or exchange any Convertible Securities issuable upon the exercise of such Options are
immediately exercisable, and the price per share for which Common Stock is issuable upon the exercise of such Options or upon the
conversion or exchange of Convertible Securities issuable upon the exercise of such Options is less than the Applicable Price,
then the total maximum number of shares of Common Stock issuable upon the exercise of such Options or upon conversion or exchange
of the total maximum amount of Convertible Securities issuable upon the exercise of such Options shall be deemed to have been issued
as of the date of granting or sale of such Options, at a price per share equal to the quotient obtained by dividing (A) the sum
(which sum shall constitute the applicable consideration received for purposes of Section 2(a)) of (w) the total amount, if any,
received or receivable by the Company as consideration for the granting or sale of all such Options, plus (x) the minimum aggregate
amount of additional consideration payable to the Company upon the exercise of all such Options, plus (y), in the case of such
Options for the purchase of Convertible Securities, the minimum aggregate amount of additional consideration, if any, payable to
the Company upon the issuance or sale of all such Convertible Securities and the conversion or exchange of all such Convertible
Securities, less (z) any consideration paid or payable by the Company with respect to such
one share of Common Stock upon the granting or sale of such Option, upon exercise of such Option and upon conversion exercise or
exchange of any Convertible Security issuable upon exercise of such Option by (B) the total maximum number of shares of
Common Stock issuable upon the exercise of all such Options or upon the conversion or exchange of all Convertible Securities issuable
upon the exercise of all such Options (without giving effect to any limitation on the exercise, conversion or exchange of such
Options). Except as set forth in Section 2(a)(iii), no further adjustment of the number of Warrant Shares shall be made upon the
actual issuance of such shares of Common Stock or of such Convertible Securities upon the exercise of such Options or upon the
actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible Securities.

 

(ii)  
Issuance of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities after
the Subscription Date, whether or not the right to convert or exchange any such Convertible Securities is immediately exercisable,
and the price per share for which Common Stock is issuable upon the conversion or exchange of such Convertible Securities is less
than the Applicable Price, then the total maximum number of shares of Common Stock issuable upon conversion or exchange of the
total maximum amount of such Convertible Securities shall be deemed to have been issued as of the date of granting or sale of such
Convertible Securities, at a price per share equal to the quotient obtained by dividing (A) the sum (which sum shall constitute
the applicable consideration received for purposes of Section 2(a)) of (x) the total amount, if any, received or receivable by
the Company as consideration for the granting or sale of such Convertible Securities, plus (y) the minimum aggregate amount of
additional consideration, if any, payable to the Company upon the conversion or exchange of all such Convertible Securities, less
(z) any consideration paid or payable by the Company with respect to such one share of Common Stock upon the issuance or sale of
such Convertible Security and upon conversion, exercise or exchange of such Convertible Security, by (B) the total maximum
number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities (without giving effect
to any limitation on the exercise, conversion or exchange of such Convertible Securities). Except as set forth in Section 2(a)(iii),
no further adjustment of the number of Warrant Shares shall be made upon the actual issuance of such shares of Common Stock upon
conversion, exercise or exchange of such Convertible Securities, and if any such issue or sale of such Convertible Securities is
made upon exercise of any Options for which adjustment of this Warrant has been or is to be made pursuant to other provisions of
this Section 2(a), no further adjustment of the number of Warrant Shares shall be made by reason of such issue or sale.

 

    	- 9 -

    

    

 

(iii) Change in Option Price or Rate of Conversion.
If the purchase price provided for in any Options, the additional consideration, if any, payable upon the issue, conversion, exercise
or exchange of any Convertible Securities, or the rate at which any Convertible Securities are convertible into or exercisable
or exchangeable for shares of Common Stock increases or decreases at any time, the number of Warrant Shares in effect at the time
of such increase or decrease shall be adjusted to the number of Warrant Shares, which would have been in effect at such time had
such Options or Convertible Securities provided for such increased or decreased purchase price, additional consideration or increased
or decreased conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of this Section 2(a)(iii),
if the terms of any Options or Convertible Securities that were outstanding as of the Subscription Date are increased or decreased
in the manner described in the immediately preceding sentence, then such Options or Convertible Securities and the shares of Common
Stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such
increase or decrease. No adjustment pursuant to this Section 2(a) shall be made if such adjustment would result in a decrease in
the number of Warrant Shares.

 

(iv) Calculation of Consideration Received.
In case any Common Stock, Options or Convertible Securities are issued in connection with the issue or sale of other securities
of the Company, together comprising one integrated transaction, the amount of consideration therefore shall be deemed to be the
Fair Market Value of such Common Stock, Options or Convertible Securities, as applicable, attributable to such portion of the aggregate
consideration received by the Company in such transaction. If any shares of Common Stock, Options or Convertible Securities are
issued or sold or deemed to have been issued or sold for cash, the consideration other than cash received therefor will be deemed
to be the net amount received by the Company therefor. If any shares of Common Stock, Options or Convertible Securities are issued
or sold for a consideration other than cash, the amount of such consideration received by the Company will be the fair value of
such consideration, except where such consideration consists of publicly traded securities, in which case the amount of consideration
received by the Company will be the Closing Sale Price of such publicly traded securities on the date of receipt. If any shares
of Common Stock, Options or Convertible Securities are issued to the owners of the non-surviving entity in connection with any
merger in which the Company is the surviving entity, the amount of consideration therefor will be deemed to be the fair value of
such portion of the net assets and business of the non-surviving entity as is attributable to such shares of Common Stock, Options
or Convertible Securities, as the case may be. The fair value of any consideration other than cash or publicly traded securities
will be determined jointly by the Company and the Required Holders. If such parties are unable to reach agreement within ten (10)
days after the occurrence of an event requiring valuation (the "Valuation Event"), the fair value of such consideration
will be determined within five (5) Business Days after the tenth (10th) day following the Valuation Event by an independent,
reputable appraiser jointly selected by the Company and the Required Holders. The determination of such appraiser shall be final
and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne by the Company.

 

    	- 10 -

    

    

 

(v)  
Record Date. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling
them (A) to receive a dividend or other distribution payable in shares of Common Stock, Options or in Convertible Securities
or (B) to subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then such record date will
be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration
of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase,
as the case may be.

 

(vi) Expired or Terminated Options or Convertible
Securities. Upon the expiration or termination of any unexercised Option (or portion thereof) or any unconverted or unexchanged
Convertible Securities (or portion thereof) (including without limitation upon the redemption or purchase for consideration of
all or any portion of such Options or Convertible Securities by the Company) for which any adjustment was made pursuant to this
Section 2(a), the number of Warrant Shares then issuable upon exercise of this Warrant shall forthwith be changed pursuant to the
provisions of this Section 2(a) to the number of Warrant Shares which would have been in effect at the time of such expiration
or termination had such unexercised Option (or portion thereof) or unconverted or unexchanged Convertible Securities (or portion
thereof), to the extent outstanding immediately prior to such expiration or termination, never been issued; provided, however,
that any such decrease to the number of Warrant Shares shall not be greater than the number of Warrant Shares then remaining under
this Warrant.

 

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

 

(c)   
Reset. If the Term Loan B remains outstanding on the second (2nd) anniversary of the Issuance Date (the
"Reset Date") and the Designee has not elected to increase the interest rate in respect of the Term Loan B pursuant
to Section 2.04 of the Financing Agreement, then, on the Reset Date the number of Warrant Shares issuable upon exercise of this
Warrant shall increase by a number of Warrant Shares equal to the product obtained by multiplying (x) 3.0% of the shares of Common
Stock Deemed Outstanding on the Reset Date, and (y) a fraction, the numerator of which is the amount of the Term Loan B that remains
outstanding as of the Reset Date, and the denominator of which is the aggregate amount of the Term Loan B drawn under the Term
Loan B Commitments (as defined in the Financing Agreement) (without giving effect to any repayments in respect thereof) as of the
applicable date of determination.

 

    	- 11 -

    

    

 

(d)  
Other Events. If any event occurs of the type contemplated by the provisions
of this Section 2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation
rights, phantom stock rights or other rights with equity features), then the Company's Board of Directors will make an appropriate
adjustment in the Exercise Price and the number of Warrant Shares, as mutually determined by the Company's Board of Directors and
the Required Holders, so as to protect the rights of the Holder; provided that no such adjustment pursuant to this Section
2(d) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section
2.

 

3.                 
RIGHTS UPON DISTRIBUTION OF ASSETS. If the Company shall declare or make any dividend or other distribution of its
assets (or rights to acquire its assets) to any or all holders of shares of Common Stock, by way of return of capital or otherwise
(including, without limitation, any distribution of cash, stock or other securities, property, options, evidence of indebtedness
or any other assets by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar
transaction) (a "Distribution"), at any time after the issuance of this Warrant, then, in each such case, the
Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to
any limitations or restrictions on exercise of this Warrant, including without limitation, the Maximum Percentage) immediately
before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record
holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however,
that to the extent that the Holder's right to participate in any such Distribution would result in the Holder and the other Attribution
Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to such extent
(and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such Distribution (and beneficial
ownership) to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such
time or times as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage,
at which time or times the Holder shall be granted such Distribution (and any Distributions declared or made on such initial Distribution
or on any subsequent Distribution to be held similarly in abeyance) to the same extent as if there had been no such limitation).

 

4.     
PURCHASE RIGHTS; PUT RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a)   
Purchase Rights. In addition to any adjustments pursuant to Section 2 above, if at any time on or after the Subscription
Date the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities
or other property pro rata to the record holders of any class of Common Stock (the "Purchase Rights"), then the
Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the
Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this
Warrant (without regard to any limitations or restrictions on exercise of this Warrant, including without limitation, the Maximum
Percentage) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or,
if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant,
issuance or sale of such Purchase Rights (provided, however, that to the extent that the Holder's right to participate
in any such Purchase Right would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then
the Holder shall not be entitled to participate in such Purchase Right to such extent (and shall not be entitled to beneficial
ownership of such shares of Common Stock as a result of such Purchase Right (and beneficial ownership) to such extent) and such
Purchase Right to such extent shall be held in abeyance for the benefit of the Holder until such time or times as its right thereto
would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder
shall be granted such right (and any Purchase Right granted, issued or sold on such initial Purchase Right or on any subsequent
Purchase Right to be held similarly in abeyance) to the same extent as if there had been no such limitation).

 

    	- 12 -

    

    

 

(b)  
Put Rights. Upon the occurrence of any of the following events (each, a "Put Triggering Event"),
(i) a Fundamental Transaction other than one in which holders of Common Stock receive solely cash (a "Put Fundamental Transaction"),
(ii) the Final Maturity Date (as defined in the Financing Agreement), (iii) a refinancing in full of all the Loans (as defined
in the Financing Agreement) under the Financing Agreement, (iv) any Event of Default under Section 9.01(a), Section 9.01(f) or
Section 9.01(g) of the Financing Agreement or (v) the acceleration of the Company's obligations under the Financing Facility, at
the request of the Holder delivered before the ninetieth (90th) day after the occurrence or consummation of any Put
Triggering Event, the Company (or the Successor Entity) shall purchase this Warrant from the Holder by paying to the Holder, within
five (5) Business Days after such request (or in case of a Put Fundamental Transaction, on the effective date of such Put Fundamental
Transaction if such date is earlier than the date that is five (5) Business Days following the request of the Holder), cash by
wire transfer of immediately available funds in an amount equal to the Fair Market Value of the remaining unexercised portion of
this Warrant on the Trading Day immediately preceding the initial day of the applicable Put Triggering Event.

 

(c)   
Fundamental Transaction. Upon: (i) the occurrence or consummation
of a Fundamental Transaction in which holders of Common Stock receive solely cash or (ii) if the Holder indicates in writing
it shall not exercise its put right pursuant to Section 4(b) in connection with a Put Fundamental Transaction, on the fifth (5th)
Business Day after such notice, or, if the Holder does not notify the Company in writing prior to the ninetieth (90th)
day after the occurrence or consummation of a Put Fundamental Transaction, on the ninetieth (90th) day after the occurrence
or consummation of such Put Fundamental Transaction, the Company (or the Successor Entity)
shall deliver to the Holder, in case of the foregoing clause (i), such cash, or, in case of the foregoing clause (ii), such cash
and/or such other consideration, in each case, which the Holder would have been entitled to receive upon the happening of such
applicable Fundamental Transaction had this Warrant been exercised immediately prior to such applicable Fundamental Transaction
(without regard to any limitations on the exercise of this Warrant) (provided, however, to the extent that the Holder's
right to receive any such shares of publicly traded common stock (or their equivalent) of the Successor Entity would result in
the Holder and its other Attribution Parties exceeding the Maximum Percentage, if applicable, then the Holder shall not be entitled
to receive such shares to such extent (and shall not be entitled to beneficial ownership of such shares of publicly traded common
stock (or their equivalent) of the Successor Entity as a result of such consideration to such extent) and the portion of such shares
shall be held in abeyance for the Holder until such time or times, as its right thereto would not result in the Holder and its
other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder shall be delivered such shares to
the extent as if there had been no such limitation). For the avoidance of doubt, if a Fundamental
Transaction does not result in holders of Common Stock receiving any consideration and the Holder does not elect to exercise its
put right pursuant to Section 4(b), then, this Warrant shall remain outstanding and the Company and the Successor Entity or Successor
Entities, jointly and severally, shall succeed to, and the Company shall cause any Successor Entity or Successor Entities to jointly
and severally succeed to, and be added to the term "Company" under this Warrant (so that from and after the date of such
Fundamental Transaction, each and every provision of this Warrant referring to the "Company" shall refer instead to each
of the Company and the Successor Entity or Successor Entities, jointly and severally), and the Company and the Successor Entity
or Successor Entities, jointly and severally, may exercise every right and power of the Company prior thereto and shall assume
all of the obligations of the Company prior thereto under this Warrant with the same effect as if the Company and such Successor
Entity or Successor Entities, jointly and severally, had been named as the Company in this Warrant and, at the election
of the Holder, the Company and the Successor Entity or Successor Entities shall deliver
to the Holder in exchange for this Warrant a security of the Successor Entity and/or Successor Entities evidenced by a written
instrument substantially similar in form and substance to this Warrant and exercisable for a corresponding number of shares of
capital stock of the Successor Entity and/or Successor Entities 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.

 

    	- 13 -

    

    

 

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

 

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

 

    	- 14 -

    

    

 

7.     
REISSUANCE OF WARRANTS.

 

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

 

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

 

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

 

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

 

    	- 15 -

    

    

 

8.     
NOTICES. Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice
shall be given in accordance with Section 6.3 of the Subscription Agreement. The Company shall provide the Holder with prompt written
notice of all actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason
therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately
upon any adjustment of the Exercise Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment
and (ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect
to any dividend or distribution upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any Options,
Convertible Securities or rights to purchase stock, warrants, securities or other property to holders of shares of Common Stock
or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation; provided
in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided
to the Holder. It is expressly understood and agreed that the time of exercise specified by the Holder in each Exercise Notice
shall be definitive and may not be disputed or challenged by the Company.

 

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

 

10.  GOVERNING
LAW; JURISDICTION; PROCESS AGENT; JURY TRIAL. This Warrant shall be governed by and construed and enforced in accordance with,
and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the
internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than
the State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. The Company hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to the Company at the address set forth in Section 6.3 of the Subscription Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude
the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company's
obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or
other court ruling in favor of the Holder. The Company hereby appoints CT Corporation (the "Process Agent"), with
an office on the Subscription Date at 111 8th Avenue, 13th Floor, New York, New York 10011, as its agent
to receive on its behalf service of the summons and complaint and any other process which may be served in any action or proceeding
described above.  Such service may be made by mailing or delivering a copy of such process to the Company, in care of the
Process Agent at the address specified above for the Process Agent, and the Company hereby authorizes and directs the Process Agent
to accept such service on its behalf. The Company covenants and agrees that, for so long as it shall be bound under this Warrant
or any other Transaction Document, it shall maintain a duly appointed agent for the service of summons and other legal process
in New York, New York, United States of America, for the purposes of any legal action, suit or proceeding brought by any party
in respect of this Warrant or such other Transaction Document and shall keep the Holder advised of the identity and location of
such agent.  If for any reason there is no authorized agent for service of process in New York, the Company irrevocably consents
to the service of process out of the said courts by mailing copies thereof by registered United States air mail postage prepaid
to it at its address specified in Section 6.3 of the Subscription Agreement.  Nothing in this Section 10 shall affect the
right of the Holder to (i) commence legal proceedings or otherwise sue the Company in the country in which it is domiciled or in
any other court having jurisdiction over the Company or (ii) serve process upon the Company in any manner authorized by the laws
of any such jurisdiction. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL
FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

 

    	- 16 -

    

    

 

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

 

12.  DISPUTE
RESOLUTION. In the case of a dispute as to the determination of the Exercise Price, the arithmetic calculation of the Warrant
Shares or the Fair Market Value of the Warrant, the Company shall submit the disputed determinations or arithmetic calculations
via facsimile or electronic mail within three (3) Business Days of receipt of the Exercise Notice giving rise to such dispute,
as the case may be, to the Holder. If the Holder and the Company are unable to agree upon such determination or calculation of
the Exercise Price, the Warrant Shares or the Fair Market Value of the Warrant within three (3) Business Days of such disputed
determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two (2) Business Days submit
via facsimile or electronic mail (a) the disputed determination of the Exercise Price or the Fair Market Value of the Warrant,
as the case may be, to an independent, reputable investment bank selected by the Holder and approved by the Company, such approval
not to be unreasonably withheld, conditioned or delayed or (b) the disputed arithmetic calculation of the Warrant Shares to an
independent, outside accountant, selected by the Holder and approved by the Company, such approval not to be unreasonably withheld,
conditioned or delayed. The Company shall cause at its expense the investment bank or the accountant, as the case may be, to perform
the determinations or calculations and notify the Company and the Holder of the results no later than five (5) Business Days from
the time it receives the disputed determinations or calculations. Such investment bank's or accountant's determination or calculation,
as the case may be, shall be binding upon all parties absent demonstrable error.

 

    	- 17 -

    

    

 

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

 

14.  TRANSFER.This
Warrant and the Warrant Shares may be offered for sale, sold, transferred, pledged or assigned without the consent of the Company,
except as may otherwise be required by Section 3.2(h) of the Subscription Agreement. Notwithstanding foregoing, this Warrant
shall not be permitted to be offered for sale, sold, transferred, pledged or assigned to a Competitor (as defined in the Financing
Agreement) without the prior written consent of the Company; provided, that no such consent shall be required if as of the
applicable date of determination there shall have occurred and be continuing any Event of Default under Section 9.01(a), Section
9.01(c) (solely as a result of any breach of any financial covenant set forth in Section 7.03), Section 9.01(f) or Section 9.01(g)
of the Financing Agreement.

 

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

 

16.  DISCLOSURE.
At any time after the Holder or an of its Affiliates ceases to be a Lender under the Financing Agreement, upon receipt or delivery
by the Company of any notice in accordance with the terms of this Warrant, unless the Company has in good faith determined that
the matters relating to such notice do not constitute material, nonpublic information relating to the Company or its Subsidiaries,
the Company shall contemporaneously with any such receipt or delivery publicly disclose such material, nonpublic information on
a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice contains material, nonpublic information
relating to the Company or its Subsidiaries, the Company so shall indicate to the Holder contemporaneously with delivery of such
notice, and in the absence of any such indication, the Holder shall be allowed to presume that all matters relating to such notice
do not constitute material, nonpublic information relating to the Company or its Subsidiaries.

 

    	- 18 -

    

    

 

17.  CURRENCY;
JUDGMENT CURRENCY; PAYMENTS.

 

(a)   
Currency. All amounts set forth in this Warrant that refer to dollars or $ shall refer to U.S. dollars. All amounts
denominated in other currencies shall be converted in the U.S. dollar equivalent amount in accordance with the Exchange Rate on
the date of calculation.

 

(b)  
Judgment Currency.

 

(i)       If
for purposes of obtaining or enforcing judgment against the Company in any court in any jurisdiction it becomes necessary to convert
into any other currency (such other currency, a "Judgment Currency") an amount due in U.S. Dollars under this
Warrant, the conversion shall be made at the Exchange Rate prevailing on the Business Day immediately preceding:

 

(1)       the
date of actual payment of the amount due, in the case of any proceeding in the courts of New York or in the courts of any other
jurisdiction that will give effect to such conversion being made on such date: or

 

(2)       the
date on which the foreign court determines, in the case of any proceeding in the courts of any other jurisdiction (the date as
of which such conversion is made pursuant to this Section 17(c) being hereinafter referred to as the "Judgment Conversion
Date").

 

(ii)       If,
in the case of any proceeding in the court of any jurisdiction referred to in Section 17(c)(i)(2) above, there is a change in the
Exchange Rate prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the applicable
party shall pay such adjusted amount as may be necessary to ensure that the amount paid in the Judgment Currency, when converted
at the Exchange Rate prevailing on the date of payment, will produce the amount of U.S. Dollars which could have been purchased
with the amount of Judgment Currency stipulated in the applicable judgment order at the Exchange Rate prevailing on the Judgment
Conversion Date.

 

(iii)       Any
amount due from the Company under this section shall be due as a separate debt and shall not be affected by judgment being obtained
for any other amounts due under or in respect of this Warrant.

 

(c)   
Payments. Whenever any payment of cash is to be made by the Company to any Person pursuant to this Warrant, such
payment shall be made in lawful money of the United States via wire transfer of immediately available funds by providing the Company
with prior written notice setting out such request and the Holder's wire transfer instructions; provided that the Holder may elect
to receive a payment of cash by a check drawn on the account of the Company and sent via overnight courier service to such Person
at such address as previously provided to the Company in writing (which address, in the case of each of the Buyers, shall initially
be as set forth on the Schedule of Subscribers attached to the Subscription Agreement). Whenever any amount expressed to be due
by the terms of this Warrant is due on any day which is not a Trading Day, the same shall instead be due on the next succeeding
day which is a Trading Day.

 

    	- 19 -

    

    

 

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

 

(a)   
"Affiliate" shall have the meaning ascribed to such term in Rule 405 of the Securities Act.

 

(b)  
"Approved Stock Plan" means any employee benefit plan which has been approved by the Board of Directors
of the Company, pursuant to which the Company's securities may be issued to any employee, officer or director for services provided
to the Company.

 

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

 

(d)  
"Bloomberg" means Bloomberg Financial Markets.

 

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

 

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

 

    	- 20 -

    

    

 

(g)  
"Common Stock" means (i) the Company's shares of Common Stock, par value $0.01 per share, and (ii) any
capital stock into which such Common Stock shall have been changed or any capital stock resulting from a reclassification, reorganization
or recapitalization of such Common Stock.

 

(h)  
"Common Stock Deemed Outstanding" means, at any given time, the number of shares of Common Stock actually
outstanding at such time, plus the number of shares of Common Stock deemed to be outstanding pursuant to Sections 2(a)(i) and 2(a)(ii)
hereof regardless of whether the Options or Convertible Securities are actually exercisable at such time, but excluding (i) any
shares of Common Stock owned or held by or for the account of the Company or issuable upon exercise of the Lender
Warrants, (ii) any shares of Common Stock issued or issuable in connection with any Approved Stock Plan and (iii) any shares
of Common Stock issued or issuable to the extent all the proceeds of the issuance or deemed issuance of such Common Stock, net
solely of any reasonable underwriting and legal fees and expenses directly related to such issuance or deemed issuance (such fees
and expenses, the "Direct Costs"), is used to pay down or pay off the Term Loan B; provided, that if the
Company raises proceeds in an issuance or deemed issuance that exceed the amounts outstanding under the Term Loan B (such excess
proceeds, the "Excess Proceeds"), such Common Stock issued or deemed issued shall only be considered "Excluded
Securities" hereunder if the applicable Direct Costs shall first be deducted from such Excess Proceeds.

 

(i)    
"Convertible Securities" means any stock or securities (other than Options) directly or indirectly convertible
into or exercisable or exchangeable for shares of Common Stock, including, without limitation, restricted stock units.

 

(j)    
"Designee" means TCW Asset Management Company LLC.

 

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

 

(l)    
"Event of Default" shall have the meaning ascribed to such term in the Financing Agreement.

 

(m) "Exchange Rate" means,
in relation to any amount of currency to be converted into U.S. dollars pursuant to this Warrant, the U.S. dollar exchange rate
as published in the Wall Street Journal on the relevant date of calculation (it being understood and agreed that where an amount
is calculated with reference to, or over, a period of time, the date of calculation shall be the final date of such period of time).

 

    	- 21 -

    

    

 

(n)  
"Excluded Securities" means any Common Stock issued or issuable: (i) in connection with any Approved Stock
Plan, (ii) upon the exercise of the Lender Warrants; provided, that the Lender Warrants are not amended, modified or changed
on or after the Subscription Date, provided, further, that any Common Stock issued or issuable upon exercise of any
Lender Warrants amended, modified or changed on or after the Subscription Date may nevertheless be deemed "Excluded Securities"
with respect to this Warrant (but not with respect to the other Lender Warrants) with the prior written consent of the Holder,
(iii) upon exercise of any Options or Convertible Securities which are outstanding on the day immediately preceding the Subscription
Date; provided, that the terms of such Options or Convertible Securities are not amended, modified or changed on or after
the Subscription Date; provided, further, that any Common Stock issued or issuable upon exercise of any Options or
Convertible Securities which are outstanding on the day immediately preceding the Subscription Date, but which are amended, modified
or changed on or after the Subscription Date may nevertheless be deemed "Excluded Securities" with respect to this Warrant
(but not with respect to the other Lender Warrants) with the prior written consent of the Holder (iv) to the extent all the proceeds
of the issuance or deemed issuance of such Common Stock, net solely of any Direct Costs directly related to such issuance or deemed
issuance, is used to pay down or pay off the Term Loan B; provided, that if the Company raises proceeds in an issuance or
deemed issuance Excess Proceeds, such Common Stock issued or deemed issued shall only be considered "Excluded Securities"
hereunder if the applicable Direct Costs shall first be deducted from such Excess Proceeds.

 

(o)  
"Expiration Date" means the date eighty-four (84) months after the Issuance Date or, if such date falls
on a day other than a Business Day or on which trading does not take place on the Principal Market (a "Holiday"),
the next day that is not a Holiday.

 

(p)  
"Fair Market Value" of a security shall be the fair market value of such security as determined jointly
by the Company and the Holder; provided, that if the Company and the Holder are unable to agree upon the fair market value
of such security, then such dispute shall be resolved pursuant to Section 12.

 

(q)  
"Financing Agreement" means that certain Financing Agreement of even date herewith by and among the Company,
certain other loan parties thereto, the lenders from time to time party thereto, the Designee, as administrative agent for lenders
thereunder, and as the collateral agent for the lenders thereunder, as amended, amended and restated, supplemented or otherwise
modified from time to time.

 

    	- 22 -

    

    

 

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

 

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

 

(t)    
"Market Price" means the arithmetic average of the Weighted Average Prices of the Common Stock during the
ten (10) Trading Days immediately prior to the applicable date of determination.

 

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

 

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

 

    	- 23 -

    

    

 

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

 

(x)  
"Principal Market" means The Nasdaq Global Market.

 

(y)  
"Registration Rights Agreement" means that certain Registration Rights Agreement dated as of the Subscription
Date by and among the Company and the Subscriber.

 

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

 

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

 

(bb)          
"Standard Settlement Period" means the standard settlement period, expressed in a number of Trading Days,
on the principal securities exchange or securities market on which the Common Stock is then traded as in effect on the date of
delivery of the applicable Exercise Notice.

 

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

 

(dd)         
"Subsidiary" has the meaning ascribed to such term in the Financing Agreement.

 

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

 

(ff) "Term Loan B" has the
meaning ascribed to such term in the Financing Agreement.

 

(gg)          
"Trading Day" means any day on which the Common Stock is traded on the Principal Market, or, if the Principal
Market is not the principal trading market for the Common Stock on such day, then on the principal securities exchange or securities
market on which the Common Stock is then traded; provided that "Trading Day" shall not include any day on which the Common
Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from
trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance
the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

    	- 24 -

    

    

 

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

 

[Signature Page Follows]

 

 

 

 

 

 

    	- 25 -

    

    

 

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

 

 

	 	 	SMTC CORPORATION
	 	 	 
	 	 	By: 	 
	 	 	Name:       
	 	 	Title:       

 

 

 

 

 

 

 

 

 

 

 

    

    

    

 

EXHIBIT A

 

EXERCISE NOTICE

TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

SMTC CORPORATION

 

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

 

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

 

	____________ 	a "Cash Exercise" with respect to _________________ Warrant Shares;
and/or
	 	 
	____________ 	a "Cashless Exercise" with
respect to _______________ Warrant Shares, resulting in a delivery obligation of the Company
to the Holder of __________ shares of Common Stock representing the applicable Net Number.
	 	 	 

 

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

 

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

 

Date: _______________ __, ______

 

 

	 	 	 
	Name of Registered Holder	 	 
	 	 	 
	 	 	 
	By: 	 	 	 
	 	Name:	 	 
	 	Title:	 	 

 

 

 

 

    

    

    

 

ACKNOWLEDGMENT

 

 

The Company hereby acknowledges this Exercise
Notice and hereby directs Computershare Inc. to issue the above indicated number of shares of Common Stock in accordance with the
terms of the Warrant.

 

	 	 	SMTC CORPORATION
	 	 	 
	 	 	By: 	 
	 	 	Name:       
	 	 	Title:

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