Document:

Exhibit 4.2

 

DESCRIPTION OF SECURITIES

 

The following description of
the securities of Paltalk, Inc. (“Paltalk,” the “Company,” “we,” “our” or “us”)
is a summary of the material terms of, and is qualified in its entirety by reference to, our Certificate of Incorporation and our By-Laws,
copies of which are filed as exhibits to this Annual Report on Form 10-K.

 

Our purpose is to engage in
any lawful act or activity for which corporations may be organized under the Delaware General Corporation Law (the “DGCL”).
Our authorized capital stock consists of 25,000,000 shares of common stock, par value $0.001 per share, and 10,000,000 shares of preferred
stock, par value $0.001 per share. No shares of preferred stock are issued or outstanding as of the date hereof.

 

Common Stock

 

As of March 25, 2022, we had
issued and outstanding 9,837,157 shares of common stock, including 31,963 shares of common stock held by us as treasury stock.

 

Dividend Rights

 

Holders of our common stock
are entitled to receive dividends, if any, as may be declared from time to time by our Board of Directors out of funds legally available
therefor. We never have declared or paid cash dividends on any of our common stock and currently do not anticipate paying any cash dividends
after the offering or in the foreseeable future.

 

Voting Rights

 

Each holder of our common stock
is entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders, including the election of
directors. Our stockholders do not have cumulative voting rights in the election of directors. Accordingly, holders of a plurality of
the voting shares are able to elect all of the directors standing for election. Any other matters submitted to the vote of the stockholders
must be authorized by a majority of the votes cast, except where the DGCL prescribes a different percentage of votes or a different exercise
of voting power.

 

Liquidation

 

In the event of our liquidation,
dissolution or winding up, holders of our common stock will be entitled to share ratably in the assets legally available for distribution
to stockholders after the payment of all of our debts and other liabilities.

 

Rights and Preferences

 

Holders of our common stock
have no preemptive, conversion, subscription or other rights, and there are no redemption or sinking fund provisions applicable to our
common stock. The rights, preferences and privileges of the holders of our common stock are subject to, and may be adversely affected
by, the rights of the holders of shares of any series of our preferred stock that we may designate in the future.

 

Holders

 

As of March 21, 2022, there
were approximately 53 holders of record of our common stock. This does not reflect the number of persons or entities who held stock in
nominee or street name through various brokerage firms.

 

Preferred Stock

 

Our Board of Directors has
the authority, within the limitations and restrictions of our Certificate of Incorporation, to issue up to 10,000,000 shares of preferred
stock in one or more series and to fix the powers, preferences and rights thereof without further action by our stockholders. These rights,
preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences,
sinking fund terms and the number of shares constituting any series or the designation of such series, any or all of which may be greater
than the rights of common stock. The issuance of preferred stock could have the effect of delaying, deferring or preventing a change of
control of us or other corporate action. In addition, the issuance of preferred stock could adversely affect the voting power of holders
of common stock and the likelihood that such holders will receive dividend payments and payments upon liquidation. In some circumstances,
the issuance of preferred stock could have the effect of decreasing the market price of our common stock. No shares of preferred stock
are outstanding, and we do not currently intend to issue any shares of preferred stock.

 

     

     

    

 

Registration Rights

 

On October 7, 2016, we entered
into a registration rights agreement with Clifford Lerner (the “Registration Rights Agreement”), a former officer, director
and employee of the Company. The Registration Rights Agreement provides that, subject to certain limitations, Mr. Lerner may demand that
we register for resale under the Securities Act of 1933, as amended, all or a portion of his shares of our common stock. In addition,
the Registration Rights Agreement provides Mr. Lerner with certain incidental “piggy-back” registration rights, which generally
allow him to participate in registered offerings of our common stock that are initiated by the Company or on behalf of other holders of
the Company’s securities.

 

On June 15, 2018, in connection
with Mr. Lerner’s resignation from the Company, we entered into an amendment to the Registration Rights Agreement (the “Registration
Rights Amendment”). The Registration Rights Amendment provides that Mr. Lerner may only exercise his demand registration rights
to effect a firm commitment underwritten offering.

 

Anti-Takeover Effects of Our Certificate of
Incorporation and By-Laws and Certain Provisions of Delaware Law

 

Our Certificate of Incorporation,
By-Laws and the DGCL, which are summarized in the following paragraphs, contain provisions that are intended to enhance the likelihood
of continuity and stability in the composition of our Board of Directors. These provisions are intended to avoid costly takeover battles,
reduce our vulnerability to a hostile change of control and enhance the ability of our Board of Directors to maximize stockholder value
in connection with any unsolicited offer to acquire us. However, these provisions may have an anti-takeover effect and may delay, deter
or prevent a merger or acquisition of our company by means of a tender offer, a proxy contest or other takeover attempt that a stockholder
might consider is in its best interest, including those attempts that might result in a premium over the prevailing market price for the
shares of common stock held by stockholders.

 

Authorized but Unissued Capital Stock

 

The authorized but unissued
shares of our common stock and our preferred stock will be available for future issuance without any further vote or action by our stockholders.
These additional shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital,
corporate acquisitions and employee benefit plans. The existence of authorized but unissued shares of our common stock and our preferred
stock could render more difficult or discourage an attempt to obtain control over us by means of a proxy contest, tender offer, merger
or otherwise.

 

Business Combinations

 

We are subject to the “business
combination” provisions of Section 203 of the DGCL. In general, Section 203 of the DGCL prohibits a publicly held Delaware corporation
from engaging in various “business combination” transactions with an interested stockholder for a period of three (3) years
after the date of the transaction in which the person became an interested stockholder, unless:

 

	 	●	the transaction is approved by the corporation’s Board of Directors prior to the date the interested stockholder became an interested stockholder;

 

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	 	●	upon the consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced; or

 

	 	●	on or subsequent to such date the business combination is approved by the corporation’s Board of Directors and authorized at an annual or special meeting of the corporation’s stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.

 

In general, a “business combination” is defined to include
mergers, asset sales and other transactions resulting in financial benefit to a stockholder and an “interested stockholder”
is a person who, together with affiliates and associates, owns or, within three years prior to the determination of interested stockholder
status, previously owned 15% or more of a corporation’s outstanding voting stock. This statute may encourage companies interested
in acquiring our company to negotiate in advance with our Board of Directors because the stockholder approval requirement would be avoided
if our Board of Directors approves either the business combination or the transaction which results in the stockholder becoming an interested
stockholder. This statute also may have the effect of preventing changes in our Board of Directors and may make it more difficult to accomplish
transactions which stockholders may otherwise deem to be in their best interests.

 

Removal of Directors; Vacancies

 

Our By-Laws provide that directors
may be removed with or without cause upon the affirmative vote of a majority in voting power of all outstanding shares of common stock
present in person or by proxy and entitled to vote. Our By-Laws also provide that any vacancies or newly created directorships on our
Board of Directors will be filled only by the affirmative vote of a majority of the remaining directors, even if less than a quorum, or
by a sole remaining director.

 

No Cumulative Voting

 

Under Delaware law, the right
to vote cumulatively does not exist unless the certificate of incorporation specifically authorizes cumulative voting. Our Certificate
of Incorporation does not authorize cumulative voting.

 

Special Stockholder Meetings

 

Our By-Laws provide that special
meetings of our stockholders may be called only by our President whenever he deems advisable. A special meeting of the stockholders will
be called by the President whenever so directed in writing by a majority of the entire Board of Directors or whenever the holders of one-third
(1/3) of the number of shares of our capital stock entitled to vote at such meeting request in writing that a special meeting be held.
These provisions may have the effect of deferring, delaying or discouraging hostile takeovers, or changes in control or management of
our company.

 

Requirements for Advance Notification of Director Nominations
and Stockholder Proposals

 

Our By-Laws establish advance
notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations
made by or at the direction of the Board of Directors or a committee of the Board of Directors. In order for any matter to be “properly
brought” before a meeting, a stockholder has to comply with advance notice requirements and provide us with certain information.
Generally, to be timely, a stockholder’s notice must be received at our principal executive offices not less than 90 days nor more
than 120 days prior to the first anniversary date of the immediately preceding annual meeting of stockholders. Our By-Laws also specify
requirements as to the form and content of a stockholder’s notice. These provisions may defer, delay or discourage a potential acquirer
from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to influence or
obtain control of our company.

 

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Dissenters’ Rights of Appraisal and Payment

 

Under the DGCL, with certain
exceptions, our stockholders will have appraisal rights in connection with a merger or consolidation of us. Pursuant to the DGCL, stockholders
who properly request and perfect appraisal rights in connection with such merger or consolidation will have the right to receive payment
of the fair value of their shares as determined by the Delaware Court of Chancery.

 

Stockholders’ Derivative Actions

 

Under the DGCL, any of our
stockholders may bring an action in our name to procure a judgment in our favor, also known as a derivative action, provided that the
stockholder bringing the action is a holder of our shares at the time of the transaction to which the action relates or such stockholder’s
stock thereafter devolved by operation of law.

 

Exclusive Forum

 

Our Certificate of Incorporation
provides, subject to limited exceptions, that unless we consent to the selection of an alternative forum, the Court of Chancery of the
State of Delaware shall, to the fullest extent permitted by law, be the sole and exclusive forum for (i) any derivative action or proceeding
brought on behalf of our company, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer, or other
employee or stockholder of our company to the Company or our stockholders, (iii) any action asserting a claim arising pursuant to any
provision of the DGCL or our Certificate of Incorporation or our By-Laws, or (iv) any other action asserting a claim governed by the internal
affairs doctrine. Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of our company shall
be deemed to have notice of and consented to the forum provisions in our Certificate of Incorporation. However, the enforceability of
similar forum provisions in other companies’ certificates of incorporation has been challenged in legal proceedings, and it is possible
that a court could find these types of provisions to be unenforceable.

 

Limitations on Liability and Indemnification
of Officers and Directors

 

Our Certificate of Incorporation
contains a provision permitted under the DGCL relating to the liability of directors. This provision eliminates a director’s personal
liability to the fullest extent permitted by the DGCL for monetary damages resulting from a breach of fiduciary duty; provided that such
provision will not eliminate or limit a director’s liability for:

 

	 	●	any breach of the director’s duty of loyalty;

 

	 	●	acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law;

 

	 	●	Section 174 of the DGCL (unlawful dividends); or

 

	 	●	any transaction from which the director derives an improper personal benefit.

 

The principal effect of the
limitation on liability provision is that a stockholder is unable to prosecute an action for monetary damages against a director unless
the stockholder can demonstrate a basis for liability for which indemnification is not available under the DGCL. This provision, however,
should not limit or eliminate our rights or any stockholder’s rights to seek non-monetary relief, such as an injunction or rescission,
in the event of a breach of a director’s fiduciary duty. This provision does not alter a director’s liability under federal
securities laws. The inclusion of this provision in our Certificate of Incorporation may discourage or deter stockholders or management
from bringing a lawsuit against directors for a breach of their fiduciary duties, even though such an action, if successful, might otherwise
have benefited us and our stockholders.

 

Our Certificate of Incorporation
and By-Laws provide that we are required to indemnify our directors and officers, to the fullest extent permitted by law, for all judgments,
fines, settlements, legal fees and other expenses incurred in connection with pending or threatened legal proceedings because of the director’s
or officer’s positions with us or another entity that the director or officer serves at our request, subject to various conditions
and exceptions, and to advance funds to our directors and officers to enable them to defend against such proceedings.

 

We have entered into indemnification
agreements and employment agreements with our directors and certain of our executive officers, respectively, pursuant to which we have
agreed to indemnify such persons against any liability, damage, cost or expense incurred in connection with the defense of any action,
suit or proceeding to which such persons are a party to the extent permitted by applicable law, subject to certain exceptions.

 

Trading Market

 

Our common stock is currently
quoted on The Nasdaq Capital Market under the symbol “PALT.”

 

Transfer Agent and Registrar

 

The transfer agent and registrar
for our common stock is American Stock Transfer and Trust Company, LLC.

 

 

4Exhibit 10.13

 

FORM OF NONQUALIFIED STOCK OPTION AGREEMENT

 

PALTALK, INC.

 

2016 LONG-TERM INCENTIVE PLAN

 

1. Grant
of Option. Pursuant to the Paltalk, Inc. 2016 Long-Term Incentive Plan (the “Plan”) for Employees, Contractors,
and Outside Directors of Paltalk, Inc., a Delaware corporation (the “Company”), the Company grants to

 

________ ___________

(the “Participant”)

 

an option (the “Option”
or “Stock Option”) to purchase a total of ________(____________) full shares of Common Stock of the Company (the
“Optioned Shares”) at an “Option Price” equal to $________ per share (which is equal
to the Fair Market Value per share of Common Stock on the Date of Grant).

 

The “Date of Grant”
of this Stock Option is __________ __, 20__. The “Option Period” shall commence on the Date of Grant and shall
expire on the date immediately preceding the tenth (10th) anniversary of the Date of Grant, unless terminated earlier in accordance
with Section 4 below. The Stock Option is a Nonqualified Stock Option. This Stock Option is intended to comply with the provisions
governing nonqualified stock options under the final Treasury Regulations issued on April 17, 2007, in order to exempt this Stock
Option from application of Section 409A of the Code.

 

2. Subject
to Plan. The Stock Option and its exercise are subject to the terms and conditions of the Plan, and the terms of the Plan shall control
to the extent not otherwise inconsistent with the provisions of this Nonqualified Stock Option Agreement (this “Agreement”).
The capitalized terms used herein that are defined in the Plan shall have the same meanings assigned to them in the Plan. The Stock Option
is subject to any rules promulgated pursuant to the Plan by the Board or the Committee and communicated to the Participant in writing.

 

3. Vesting;
Time of Exercise. Except as specifically provided in this Agreement and subject to certain restrictions and conditions set forth in
the Plan, the Optioned Shares shall be vested and the Stock Option shall be exercisable as follows:

 

a. _____________________
of the total Optioned Shares shall vest and that portion of the Stock Option shall become exercisable on _____________________, provided
the Participant is employed by (or, if the Participant is a Contractor or an Outside Director, is providing services to) the Company or
a Subsidiary on that date.

 

b. _____________________
of the total Optioned Shares shall vest and that portion of the Stock Option shall become exercisable on _____________________, provided
the Participant is employed by (or, if the Participant is a Contractor or an Outside Director, is providing services to) the Company or
a Subsidiary on that date.

 

c. _____________________
of the total Optioned Shares shall vest and that portion of the Stock Option shall become exercisable on _____________________, provided
the Participant is employed by (or, if the Participant is a Contractor or an Outside Director, is providing services to) the Company or
a Subsidiary on that date.

 

     

     

    

 

d. _____________________
of the total Optioned Shares shall vest and that portion of the Stock Option shall become exercisable on _____________________, provided
the Participant is employed by (or, if the Participant is a Contractor or an Outside Director, is providing services to) the Company or
a Subsidiary on that date.

 

Notwithstanding the foregoing,
upon a Change in Control, one hundred percent (100%) of the then-unvested Optioned Shares shall immediately vest and become fully exercisable,
if not previously so exercisable, on the date of the Change in Control.

 

4. Term;
Forfeiture.

 

a. Except
as otherwise provided in this Agreement, to the extent the unexercised portion of the Stock Option relates to Optioned Shares that are
not vested on the date of the Participant’s Termination of Service, the Stock Option will be terminated on that date. The unexercised
portion of the Stock Option that relates to Optioned Shares which are vested on such date will terminate at the first of the following
to occur:

 

i. 5
p.m. on the date the Option Period terminates;

 

ii. 5
p.m. on the date that is ninety (90) days following the date of the Participant’s Termination of Service for any reason not otherwise
specified in this Section 4(a);

 

iii. immediately
upon the Participant’s Termination of Service by the Company for Cause (as defined below);

 

iv. 5
p.m. on the date the Company causes any portion of the Stock Option to be forfeited pursuant to Section 7 hereof; or

 

v. immediately
upon the Participant’s violation of any non-compete or non-solicitation agreement entered into between the Company and the Participant.

 

b. For
purposes hereof, “Cause” shall have the meaning set forth in the employment agreement or other service agreement
by and between the Company and the Participant; provided, that, if no such agreement is in effect or such agreement does not define such
term, then “Cause” shall mean (i) acts of fraud or dishonesty in the course of employment or service, (ii) violations of law
causing material harm to the Company, (iii) substance abuse causing harm to the Company or impairing performance, (iv) conviction of a
felony involving moral turpitude, or (v) insubordination, dereliction of duties, habitual absenteeism, or material failure to follow reasonable
Company instructions after (solely in the case of this clause (v)) notice to the Participant and the Participant’s failure to correct
same within the time period specified in the notice, which time period shall be not less than ten (10) business days.

 

5. Who
May Exercise. Subject to the terms and conditions set forth in Sections 3 and 4 above, during the lifetime of the Participant,
the Stock Option may be exercised only by the Participant, or by the Participant’s guardian or personal or legal representative.
If the Participant’s Termination of Service is due to his or her death prior to the dates specified in Section 4(a) hereof,
and the Participant has not exercised the Stock Option as to the maximum number of vested Optioned Shares as set forth in Section 3
hereof as of the date of death, the following persons may exercise the exercisable portion of the Stock Option on behalf of the Participant
at any time prior to the earliest of the dates specified in Section 4(a) hereof: the personal representative of his or her
estate, or the person who acquired the right to exercise the Stock Option by bequest or inheritance or by reason of the death of the Participant;
provided that the Stock Option shall remain subject to the other terms of this Agreement, the Plan, and Applicable Laws, rules, and regulations.

 

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6. No
Fractional Shares. The Stock Option may be exercised only with respect to full shares, and no fractional share of stock shall be issued.

 

7. Manner
of Exercise. Subject to such administrative regulations as the Committee may from time to time adopt, the Stock Option may be exercised
by the delivery of written notice to the Committee setting forth the number of shares of Common Stock with respect to which the Stock
Option is to be exercised (the “Exercise Notice”) and the date of exercise thereof (the “Exercise
Date”) which shall be the date that the Participant has delivered both the Exercise Notice and consideration to the Company
with a value equal to the total Option Price of the shares to be purchased (plus any employment tax withholding or other tax payment due
with respect to the exercise of the Stock Option). On the Exercise Date, the Participant shall deliver to the Company consideration with
a value equal to the total Option Price of the shares to be purchased, payable as follows: (a) cash, check, bank draft, or money order
payable to the order of the Company, (b) if the Company, in its sole discretion, so consents in writing, Common Stock (including Restricted
Stock) owned by the Participant on the Exercise Date, valued at its Fair Market Value on the Exercise Date, and which the Participant
has not acquired from the Company within six (6) months prior to the Exercise Date, (c) if the Company, in its sole discretion, so consents
in writing, by delivery (including by FAX or electronic transmission) to the Company or its designated agent of an executed irrevocable
option exercise form (or, to the extent permitted by the Company, exercise instructions, which may be communicated in writing, telephonically,
or electronically) together with irrevocable instructions from the Participant to a broker or dealer, reasonably acceptable to the Company,
to sell certain of the shares of Common Stock purchased upon exercise of the Stock Option or to pledge such shares as collateral for a
loan and promptly deliver to the Company the amount of sale or loan proceeds necessary to pay such purchase price, and/or (d) in any other
form of valid consideration that is acceptable to the Committee in its sole discretion. In the event that shares of Restricted Stock are
tendered as consideration for the exercise of a Stock Option, a number of shares of Common Stock issued upon the exercise of the Stock
Option equal to the number of shares of Restricted Stock used as consideration therefor shall be subject to the same restrictions and
provisions as the Restricted Stock so tendered. If the Participant fails to deliver the consideration described above within three (3)
business days of the date of the Exercise Notice, then the Exercise Notice shall be null and void and the Company will have no obligation
to deliver any shares of Common Stock to the Participant in connection with such Exercise Notice.

 

Upon payment of all amounts
due from the Participant, the Company shall cause certificates for the Common Stock then being purchased to be delivered as directed by
the Participant (or the person exercising the Participant’s Stock Option in the event of his or her death) at its principal business
office promptly after the Exercise Date. The obligation of the Company to deliver shares of Common Stock shall, however, be subject to
the condition that, if at any time the Committee shall determine in its discretion that the listing, registration, or qualification of
the Stock Option or the Common Stock upon any securities exchange or inter-dealer quotation system or under any state or federal law,
or the consent or approval of any governmental regulatory body, is necessary as a condition of, or in connection with, the Stock Option
or the issuance or purchase of shares of Common Stock thereunder, then the Stock Option may not be exercised in whole or in part unless
such listing, registration, qualification, consent, or approval shall have been effected or obtained free of any conditions not reasonably
acceptable to the Committee.

 

If the Participant fails to
pay for any of the Optioned Shares specified in such notice or fails to accept delivery thereof, that portion of the Participant’s
Stock Option and the right to purchase such Optioned Shares may be forfeited by the Participant.

 

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8. Nonassignability.
The Stock Option is not assignable or transferable by the Participant except by will or by the laws of descent and distribution.

 

9. Rights
as Stockholder. The Participant will have no rights as a stockholder with respect to any of the Optioned Shares until the issuance
of a certificate or certificates to the Participant for the shares of Common Stock. The Optioned Shares shall be subject to the terms
and conditions of this Agreement. Except as otherwise provided in Section 10 hereof, no adjustment shall be made for dividends
or other rights for which the record date is prior to the issuance of such certificate or certificates. The Participant, by his or her
execution of this Agreement, agrees to execute any documents requested by the Company in connection with the issuance of the shares of
Common Stock.

 

10. Adjustment
of Number of Optioned Shares and Related Matters. The number of shares of Common Stock covered by the Stock Option, and the Option
Prices thereof, shall be subject to adjustment in accordance with Articles 11 - 13 of the Plan.

 

11. Nonqualified
Stock Option. The Stock Option shall not be treated as an Incentive Stock Option.

 

12. Voting.
The Participant, as record holder of some or all of the Optioned Shares following exercise of this Stock Option, has the exclusive right
to vote, or consent with respect to, such Optioned Shares until such time as the Optioned Shares are transferred in accordance with this
Agreement; provided, however, that this Section shall not create any voting right where the holders of such Optioned Shares
otherwise have no such right.

 

13. Specific
Performance. The parties acknowledge that remedies at law will be inadequate remedies for breach of this Agreement and consequently
agree that this Agreement shall be enforceable by specific performance. The remedy of specific performance shall be cumulative of all
of the rights and remedies at law or in equity of the parties under this Agreement.

 

14. Participant’s
Representations. Notwithstanding any of the provisions hereof, the Participant hereby agrees that he or she will not exercise the
Stock Option granted hereby, and that the Company will not be obligated to issue any shares to the Participant hereunder, if the exercise
thereof or the issuance of such shares shall constitute a violation by the Participant or the Company of any provision of any law or regulation
of any governmental authority. Any determination in this connection by the Company shall be final, binding, and conclusive. The obligations
of the Company and the rights of the Participant are subject to all Applicable Laws, rules, and regulations.

 

15. Investment
Representation. Unless the shares of Common Stock are issued to the Participant in a transaction registered under applicable federal
and state securities laws, by his or her execution hereof, the Participant represents and warrants to the Company that all Common Stock
which may be purchased hereunder will be acquired by the Participant for investment purposes for his or her own account and not with any
intent for resale or distribution in violation of federal or state securities laws. Unless the Common Stock is issued to him or her in
a transaction registered under the applicable federal and state securities laws, all certificates issued with respect to the Common Stock
shall bear an appropriate restrictive investment legend and shall be held indefinitely, unless they are subsequently registered under
the applicable federal and state securities laws or the Participant obtains an opinion of counsel, in form and substance satisfactory
to the Company and its counsel, that such registration is not required.

 

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16. Participant’s
Acknowledgments. The Participant acknowledges that a copy of the Plan has been made available for his or her review by the Company,
and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Stock Option subject to all the
terms and provisions thereof. The Participant hereby agrees to accept as binding, conclusive, and final all decisions or interpretations
of the Committee or the Board, as appropriate, upon any questions arising under the Plan or this Agreement.

 

17. Law
Governing. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Delaware (excluding
any conflict of laws rule or principle of Delaware law that might refer the governance, construction, or interpretation of this Agreement
to the laws of another state).

 

18. No
Right to Continue Service or Employment. Nothing herein shall be construed to confer upon the Participant the right to continue in
the employ or to provide services to the Company or any Subsidiary, whether as an Employee, Contractor, or Outside Director, or to interfere
with or restrict in any way the right of the Company or any Subsidiary to discharge the Participant as an Employee, Contractor, or Outside
Director at any time.

 

19. Legal
Construction. In the event that any one or more of the terms, provisions, or agreements that are contained in this Agreement shall
be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect for any reason, the invalid, illegal,
or unenforceable term, provision, or agreement shall not affect any other term, provision, or agreement that is contained in this Agreement
and this Agreement shall be construed in all respects as if the invalid, illegal, or unenforceable term, provision, or agreement had never
been contained herein.

 

20. Covenants
and Agreements as Independent Agreements. Each of the covenants and agreements that is set forth in this Agreement shall be construed
as a covenant and agreement independent of any other provision of this Agreement. The existence of any claim or cause of action of the
Participant against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement
by the Company of the covenants and agreements that are set forth in this Agreement.

 

21. Entire
Agreement. This Agreement together with the Plan supersede any and all other prior understandings and agreements, either oral or in
writing, between the parties with respect to the subject matter hereof and constitute the sole and only agreements between the parties
with respect to the said subject matter. All prior negotiations and agreements between the parties with respect to the subject matter
hereof are merged into this Agreement. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements,
orally or otherwise, have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement
or the Plan and that any agreement, statement or promise that is not contained in this Agreement or the Plan shall not be valid or binding
or of any force or effect.

 

22. Parties
Bound. The terms, provisions, and agreements that are contained in this Agreement shall apply to, be binding upon, and inure to the
benefit of the parties and their respective heirs, executors, administrators, legal representatives, and permitted successors and assigns,
subject to the limitation on assignment expressly set forth herein.

 

23. Modification.
No change or modification of this Agreement shall be valid or binding upon the parties unless the change or modification is in writing
and signed by the parties; provided, however, that the Company may change or modify this Agreement without the Participant’s consent
or signature if the Company determines, in its sole discretion, that such change or modification is necessary for purposes of compliance
with or exemption from the requirements of Section 409A of the Code or any regulations or other guidance issued thereunder. Notwithstanding
the preceding sentence, the Company may amend the Plan to the extent permitted by the Plan.

 

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24. Headings.
The headings that are used in this Agreement are used for reference and convenience purposes only and do not constitute substantive matters
to be considered in construing the terms and provisions of this Agreement.

 

25. Gender
and Number. Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular
number shall be held to include the plural, and vice versa, unless the context requires otherwise.

 

26. Notice.
Any notice required or permitted to be delivered hereunder shall be deemed to be delivered only when actually received by the Company
or by the Participant, as the case may be, at the addresses set forth below, or at such other addresses as they have theretofore specified
by written notice delivered in accordance herewith:

 

		a.	Notice to the Company shall be addressed and delivered as
follows:

 

Paltalk, Inc.

30 Jericho Executive
Plaza, Suite 400E

Jericho, NY 11753

Attn:
____________________

Facsimile:
_______________________

 

		b.	Notice to the Participant shall be addressed and delivered
as set forth on the signature page.

 

27. Tax
Requirements. The Participant is hereby advised to consult immediately with his or her own tax advisor regarding the tax consequences
of this Agreement. The Company or, if applicable, any Subsidiary (for purposes of this Section 27, the term “Company”
shall be deemed to include any applicable Subsidiary), shall have the right to deduct from all amounts paid in cash or other form in connection
with the Plan and this Agreement, any federal, state, local, or other taxes required by law to be withheld in connection with this Award.
The Company may, in its sole discretion, also require the Participant receiving shares of Common Stock issued under the Plan to pay the
Company the amount of any taxes that the Company is required to withhold in connection with the Participant’s income arising with
respect to this Award. Such payments shall be required to be made when requested by the Company and may be required to be made prior to
the delivery of any certificate representing shares of Common Stock. Such payment may be made (i) by the delivery of cash to the Company
in an amount that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding obligations
of the Company; (ii) if the Company, in its sole discretion, so consents in writing, the actual delivery by the exercising Participant
to the Company of shares of Common Stock that the Participant has not acquired from the Company within six (6) months prior to the date
of exercise, which shares so delivered have an aggregate Fair Market Value that equals or exceeds (to avoid the issuance of fractional
shares under (iii) below) the required tax withholding payment; (iii) if the Company, in its sole discretion, so consents in writing,
the Company’s withholding of a number of shares to be delivered upon the exercise of the Stock Option, which shares so withheld
have an aggregate Fair Market Value that equals (but does not exceed) the required tax withholding payment; (iv) if the Company, in its
sole discretion, so consents in writing, arrange for the sale of a number of shares to be delivered upon the exercise of the Stock Option
(on the Participant’s behalf and at his or her direction pursuant to a written authorization) with an aggregate Fair Market Value
that equals (but does not exceed) the required tax withholding payment; or (v) by any combination of (i), (ii), (iii), or (iv). The Company
may, in its sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the Company to the Participant.

 

[Remainder of Page Intentionally Left Blank

Signature Page Follows.]

 

    6

     

    

 

IN WITNESS WHEREOF, the Company
has caused this Agreement to be executed by its duly authorized officer, and the Participant, to evidence his or her consent and approval
of all the terms hereof, has duly executed this Agreement, as of the date specified in Section 1 hereof.

 

	 	COMPANY:
	 	 	 
	 	Paltalk, Inc.
	 	 
	 	By:	              
	 	Name:	 
	 	Title:	 
	 	 	 
	 	PARTICIPANT:
	 	 	 
	 	 
	 	Signature	 
	 	 	 
	 	Name:	 
	 	Address:	 
	 	 	 

 

 

Signature Page to 

Nonqualified Stock
Option Agreement

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