Document:

Exhibit 4.1

 

EXECUTION VERSION

 

FORBEARANCE AGREEMENT

AND

INCREMENTAL AMENDMENT TO FINANCING AGREEMENT

 

This FORBEARANCE AGREEMENT
AND INCREMENTAL AMENDMENT TO FINANCING AGREEMENT (together with each exhibit, schedule and/or attachment hereto, this “Agreement”)
dated as of February 27, 2020, is entered into by and among EVO TRANSPORTATION & ENERGY SERVICES, INC., a Delaware corporation
(“Borrower”), and all Subsidiaries of Borrower, as Guarantors, the Required Lenders under the Existing Financing
Agreement that are party hereto, the Incremental Term Lenders party hereto and CORTLAND CAPITAL MARKET SERVICES LLC and its successors
to serve as administrative agent and collateral agent under the Loan Documents (in such capacities, the “Administrative
Agent” and the “Collateral Agent,” as applicable, and from time to time referred to herein without
differentiation as an “Agent”).

 

Reference is made to
the Financing Agreement, dated as of September 16, 2019, entered into by and among Borrower, the Guarantors party thereto, the
Lenders party thereto, certain other parties and the Agent (the “Existing Financing Agreement,” as amended by
this Agreement and as further amended, modified and supplemented from time to time, the “Financing Agreement”).

 

Borrower has requested
that (i) the financial institutions party hereto and listed on Schedule A (the “Incremental Term Lenders”)
provide in the aggregate $3,214,285.71 in additional Term Loan Commitments having the same terms as the existing Term Loan Commitments,
as amended hereby, (the “Incremental Term Loan Commitments” and the loans made thereunder, the “Incremental
Term Loans”);

 

The Loan Parties have
requested that the Lenders and the Agent forbear from exercising certain rights, remedies, powers, privileges and defenses under
the Financing Agreement and the other Loan Documents, for the period of time set forth herein and subject to the terms and conditions
hereof, solely with respect to the following Events of Default and/or expected or anticipated Events of Default arising under the
Financing Agreement and the other Loan Documents (collectively, the “Specified Defaults”):

 

(a) the
failure and expected failure during the Forbearance Period of Borrower and its Subsidiaries to comply with the financial covenants
contained in Section 6.8 of the Financing Agreement;

 

(b) the
failure to timely take title to and reflect the Lien in favor of the Collateral Agent on certain vehicles as required by Schedule
5.15 of the Financing Agreement; and

 

(c) the
occurrence and continuance prior to the Effective Date of any Default or Event of Default under the Financing Agreement, other
than a Default or Event of Default arising under Section 2.13(a)(asset sale proceeds), Section 2.13(d)(debt issuance proceeds),
Section 4.34 (materially false information), Section 6.1 (debt), 6.2 (liens), 6.5 (Restricted Junior Payments with respect to clauses
(a), (b) or (c) of such definition) or 6.9(in respect of dispositions of assets) in each case of the Financing Agreement.

 

[Signature Page to Forbearance and Incremental
Amendment]

 

     

     

    

 

The Agent and the Lenders
party hereto are willing to, solely for the period of time set forth herein and expressly in all respects subject to the terms
and conditions hereof, forbear from exercising certain rights, remedies, powers, privileges and defenses under the Financing Agreement
and the other Loan Documents solely with respect to the Specified Defaults. In consideration of the foregoing and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Loan Parties, the Agent and the Lender
hereby agree as follows:

 

Section 1. Definitions
and Rules of Interpretation. Except as otherwise defined in this Agreement, terms defined in the Financing Agreement or the
other Loan Documents are used herein as defined therein. For purposes of this Agreement, the following terms shall have the following
meanings:

 

1.01. Defined
Terms.

 

“13-Week
Forecast” has the meaning specified in Section 4.04 of this Agreement.

 

“2020
Budget” has the meaning specified in Section 6.11 of this Agreement.

 

“Balance
Date” has the meaning specified in Section 3.01(c) of this Agreement.

 

“Collateral”
has the meaning set forth in the Collateral Documents.

 

“Effective
Date” means the date on which the conditions specified in Section 6 are satisfied (or waived by the Lender).

 

“Excepted
Representations” means the representations and warranties contained in Section 8.05(c) (regarding the absence of any
Defaults) of the Financing Agreement.

 

“Existing
Financing Agreement” has the meaning specified in the first recital of this Agreement.

 

“Forbearance
Period” has the meaning specified in Section 3.02 of this Agreement.

 

“Forbearance
Termination Date” means the earliest to occur of (a) September 30, 2020, (b) the occurrence of any Event of Default other
than the Specified Defaults, or (c) the date on which any breach of any of the conditions or agreements, including without limitation
the Liquidity Milestone, provided in this Agreement shall occur (it being agreed that the breach of any such condition or agreement
shall constitute an immediate and incurable Event of Default under the Financing Agreement without the requirement of any notice,
demand, passage of time, presentment, protest or forbearance of any kind by any Loan Party (all of which each Loan Party waives)).

 

“Incremental
Term Lenders” has the meaning specified in the second recital of this Agreement.

 

“Incremental
Term Loan Commitments” has the meaning specified in the second recital of this Agreement.

 

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“Incremental
Term Loans” has the meaning specified in the second recital of this Agreement.

 

“Lender
Parties” has the meaning specified in Section 8 of this Agreement.

 

“Liquidity
Milestone” has the meaning specified in Section 4.03 of this Agreement.

 

“Material
Action” means any action which could reasonably be expected to (i) have a material adverse effect on the business or
financial condition of any of the Loan Parties, (ii) cause the Loan Parties to violate any term of this Agreement or any other
Loan Document or (iii) adversely affect the rights and remedies of the Lender. For the avoidance of doubt, each of the following
shall be a Material Action: (a) any Person instituting, taking any step to institute, or consenting to or failing to object to
any other Person instituting, any proceeding under the Bankruptcy Code or similar law with respect to any Loan Party, (b) any Loan
Party amending any compensation agreement or arrangement, or management agreement, to which a Loan Party is a party or by which
it is bound, (c) any Loan Party making any Restricted Junior Payment or any other dividend, distribution or other transfer of value
on account of the equity interests of a Loan Party other than a transfer by a Subsidiary of Borrower to Borrower, provided, however,
that Borrower may, to the extent constituting a Restricted Junior Payment, pay monthly interest payments due, or reserve monthly
in cash for payment of the next quarterly interest payments due in the aggregate amount of $176,500 per month, with the ability
to pay out reserved cash amounts quarterly to pay such quarterly interest payments when due, (d) any Loan Party making any amendment
or other change to the organizational documents of itself or any other Loan Party except as required by this Agreement and approved
by the Required Lenders, or (e) any Loan Party taking action in furtherance of any of the foregoing.

 

“Prepayment
Premium” has the meaning specified in the Financing Agreement.

 

“Prior
13-Week Forecast” has the meaning specified in Section 4.04 of this Agreement.

 

“Releasing
Party” and “Releasing Parties” have the meaning specified in Section 8 of this Agreement.

 

“Specified
Defaults” has the meaning specified in the third recital of this Agreement.

 

1.02. Rules
of Interpretation. Unless otherwise expressly indicated, a reference to any document or agreement shall include such document
or agreement as amended, modified, restated or supplemented from time to time in accordance with its terms and the terms of this
Agreement. Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending
on the reference. References herein to any Section or Exhibit shall be to a Section or an Exhibit, as the case may be, hereof unless
otherwise specifically provided. The use herein of the word “include” or “including”, when following any
general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters
set forth immediately following such word or to similar items or matters, whether or not non-limiting language (such as “without
limitation” or “but not limited to” or words of similar import) is used with reference thereto, but rather shall
be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or
matter.

 

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Section 2. Agreement
to Make Incremental Term Loans. Pursuant to Section 2.23 of the Financing Agreement, each Incremental Term Lender hereby agrees,
severally and not jointly, to provide its respective Incremental Term Loan Commitment as set forth on Schedule A annexed
hereto on the terms set forth in this Agreement, and its Incremental Term Loan Commitment shall be binding as of the Effective
Date. Each Incremental Term Lender hereby agrees, severally and not jointly, to make an Incremental Term Loan to the Borrower having
the same terms as the Term Loans on the Effective Date in the amount of its Incremental Term Loan Commitment. The Incremental Term
Loans shall be subject in all respects to the terms of the Financing Agreement. Without limiting the foregoing, the Incremental
Term Loans shall (i) be evidenced by the Financing Agreement as provided in Section 2.6 thereof, (ii) bear interest at the rate,
and such interest on the Incremental Term Loan shall be payable, as provided in Section 2.7 of the Financing Agreement, provided
that during the Forbearance Period, Section 2.9 shall not apply to the Incremental Term Loans, (iii) mature and be payable together
with all other Term Loans on the Term Loan Maturity Date as provided in Sections 2.1(a) 2.12, 2.13, 2.15 and 8 of the Financing
Agreement, in each case together with any Prepayment Premium provided for in the Financing Agreement, (iv) be secured by all of
the Collateral pursuant to the Collateral Documents, (v) together with interest thereon and all other obligations incurred by Borrower
in connection therewith, constitute Obligations under the Financing Agreement, (vi) constitute and be treated as Term Loans for
all purposes under the Financing Agreement, including without limitation, Sections 2.14 and 2.16 therein. Each Incremental Term
Lender (a) represents and warrants that it is legally authorized to enter into this Agreement; (b) confirms that it has received
a copy of the Loan Agreement, this Agreement and the other Loan Documents, together with copies of the financial statements referred
to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to
enter into this Agreement; (c) agrees that it will, independently and without reliance upon the Administrative Agent or any other
Lender or Agent and based on such documents and information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Loan Agreement, the other Loan Documents or any other instrument or document
furnished pursuant hereto or thereto; (d) appoints and authorizes each applicable Agent to take such action as agent on its behalf
and to exercise such powers and discretion under the Loan Agreement, the other Loan Documents or any other instrument or document
furnished pursuant hereto or thereto as are delegated to each such Agent, as applicable, by the terms thereof, together with such
powers as are incidental thereto; and (e) agrees that it will be bound by the provisions of the Loan Agreement and will perform
in accordance with the terms of the Loan Agreement all the obligations which by the terms of the Loan Agreement are required to
be performed by it as a Lender, including its obligations pursuant to Section 9.8 of the Loan Agreement. Each Incremental Term
Lender has delivered herewith to the Borrower and the Administrative Agent such forms, certificates or other evidence with respect
to United States federal income tax withholding matters as such Incremental Term Lender may be required to deliver to the Borrower
and the Administrative Agent pursuant Loan Agreement. This Agreement constitutes an Additional Credit Extension Amendment. For
avoidance of doubt (A) Section 2.12(c) of the Financing Agreement applies to prepayments of Incremental Term Loans, (B) Section
2.10, providing for a two percent (2.0%) original issue discount, shall apply to the Incremental Term Loan and shall be paid on
the Effective Date, and (C) the Required Lenders hereby waive the requirement of Section 2.23(b)(ii) of the Financing Agreement
that no Default or Event of Default shall have occurred and be continuing at the time of funding of an incremental loan solely
with respect to the making of the Incremental Term Loans provided for in this Agreement. This Agreement shall constitute a Funding
Notice for the Incremental Term Loans. The first Interest Payment Date applicable to the Incremental Term Loans shall be March
31, 2020.

 

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Section 3. Acknowledgments
and Agreements; Limited Forbearance in Respect of Specified Defaults.

 

3.01. Acknowledgment
of Default. To induce the Agent and the Lenders to execute this Agreement, each Loan Party hereby acknowledges, stipulates,
represents, warrants, covenants and agrees as follows:

 

(a) Each
Specified Default constitutes an Event of Default that (i) has occurred, remains uncured, has not been waived and is continuing
as of the date of this Agreement and cannot be cured or (ii) is expected to occur during the Forbearance Period and will not be
able to be cured. Except for the Specified Defaults, no other Defaults or Events of Default have occurred and are continuing as
of the date hereof, or to the best of its knowledge are expected to occur. Except as expressly set forth in this Agreement, the
agreements of the Agent and the Lender hereunder to forbear in the exercise of their respective rights, remedies, powers, privileges
and defenses under the Loan Documents in respect of the Specified Defaults during the Forbearance Period do not in any manner whatsoever
limit any right of any of the Agent and the Lenders to insist upon strict compliance with this Agreement or any Loan Document during
the Forbearance Period.

 

(b) Nothing
has occurred that constitutes or otherwise can be construed or interpreted as a waiver of, or otherwise to limit in any respect,
any rights, remedies, powers, privileges and defenses any of the Lenders or the Agent have or may have arising as the result of
any Event of Default (including any Specified Default) that has occurred or that may occur under the Financing Agreement, the other
Loan Documents or applicable law. The Agent’s and the Lender’s actions in entering into this Agreement are without
prejudice to the rights of any of the Agent and the Lenders to pursue any and all remedies under the Loan Documents pursuant to
applicable law or in equity available to each of them in each such Person’s sole discretion upon the termination (whether
upon expiration thereof, upon acceleration or otherwise) of the Forbearance Period.

 

(c) The
aggregate outstanding principal amount of the Loans as of February 26, 2020 (the “Balance Date”) (including
loans made on the Closing Date and interest paid in kind pursuant to Section 2.7(b) of the Financing Agreement) was equal to $25,376,908.87
and accrued and unpaid interest thereon (excluding interest paid “in kind”) as of the Balance Date was equal to $219,933.21.
The foregoing amounts do not include interest from the Balance Date through the Term Loan Maturity Date and the fees, expenses
and other amounts that are chargeable or otherwise reimbursable under the Loan Documents.

 

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(d) All
of the assets pledged, assigned, conveyed, mortgaged, hypothecated or transferred to the Agent pursuant to the Collateral Documents
are (and shall continue to be) subject to valid and enforceable liens and security interests of the Agent, as collateral security
for all of the Obligations, subject to no Liens other than Liens permitted by the Financing Agreement. Each Loan Party hereby reaffirms
and ratifies its prior conveyance to the Agent pursuant to the Collateral Documents of a continuing security interest in and Lien
on the Collateral.

 

(e) The
obligations of the Loan Parties under this Agreement of any nature whatsoever, whether now existing or hereafter arising, constitute
“Obligations” for all purposes of the Loan Documents and the term “Obligations” when used in any Loan Document
shall include all such obligations hereunder.

 

(f) All
interest accruing and/or payable during the Forbearance Period shall be paid in immediately available United States Dollars on
the date when due pursuant to the Financing Agreement.

 

(g) Each
member of the Lender has acted reasonably, in good faith, and in compliance with applicable law in connection with the negotiation
and enforcement of the Financing Agreement, the other Loan Documents, and this Agreement.

 

(h) As
of the Effective Date, no Restricted Junior Payments of the type described in clauses (a), (b) or (c) of such definition have occurred,
been requested, noticed, demanded or otherwise triggered, nor are otherwise due, owing and unpaid.

 

3.02. Limited
Forbearance. Subject (a) to the satisfaction of the conditions precedent set forth in Section 6 below and (b) to the continuing
effectiveness and enforceability of the Loan Documents in accordance with their terms, the Agent and the Lenders agree to forbear
in the exercise of their respective rights, remedies, powers, privileges and defenses under the Loan Documents solely in respect
of the Specified Defaults for the period (the “Forbearance Period”) commencing on the Effective Date and ending
automatically and without further action or notice on the Forbearance Termination Date; provided that (i) except as expressly
provided in this Agreement, each Loan Party shall comply with all agreements, limitations, restrictions, terms, covenants and prohibitions
that would otherwise be effective or applicable under the Loan Documents, and (ii) that nothing herein shall be construed as a
waiver by the Agent or any Lender of any Specified Default. Required Lenders hereby further agree to suspend until the Forbearance
Termination Date the accrual of interest at the post-default rate provided for in Section 2.9 of the Financing Agreement, such
that interest paid timely in cash at the Fixed Rate on each Interest Payment Date occurring on or before the Forbearance Termination
Date shall constitute payment of all interest due on each such Interest Payment Date. For avoidance of doubt, Section 2.9 of the
Financing Agreement shall be automatically reinstated into full force and effect commencing on the first calendar day after the
Forbearance Termination Date.

 

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3.03. Termination
of Forbearance Period. Upon the occurrence of the Forbearance Termination Date, the agreement of the Agent and the Lender to
comply with any of their obligations hereunder, including the agreement to forbear, shall automatically and without any further
action or notice terminate and be of no force and effect; it being expressly agreed that the effect of the termination of the Forbearance
Period will be to permit the Agent and the Lenders to exercise, or cause the exercise of, any rights, remedies, powers, privileges
and defenses available to any of them under the Financing Agreement, the other Loan Documents or applicable law, immediately, without
any further notice, demand, passage of time, presentment, protest or forbearance of any kind (all of which each Loan Party waives).
Covenants of the Loan Parties under this Agreement that do not expressly provide that they terminate on the Forbearance Termination
Date shall remain in full force and effect following the Forbearance Termination Date, and this Agreement shall continue to constitute
a Loan Document for all purposes following the Forbearance Termination Date.

 

Section 4. Covenants.

 

4.01. Information
Rights. At all times and as requested by the Agent, Borrower shall provide the Agent and the Lenders with all information related
to the business performance of the Loan Parties as Agent may request. The provisions of this Section 4.01 shall be in addition
to any other information sharing requirements Borrower may have under the Loan Documents and this Agreement.

 

4.02. Expenses.
In furtherance of and without limiting any such obligation under the Financing Agreement, Borrower shall pay on a current basis
and in cash all costs and expenses of the Agent and the Lender, including all fees, disbursements and expenses of their respective
legal and financial advisors incurred in connection with this Agreement, the transactions contemplated by this Agreement, the Loan
Documents and the Obligations thereunder, together with any reimbursable amounts and indemnified amounts owed to the Agent or any
Lender pursuant to the Financing Agreement.

 

4.03. Restructuring
Milestone. Borrower and the Guarantors hereby agree that during the period commencing after the Effective Date and ending on
or before March 31, 2020, Borrower and the Guarantors shall have received additional cash equity contributions in the aggregate
amount of $6,000,000 in immediately available funds in consideration of issuance to the persons providing such cash equity of Capital
Stock of the Borrower that is not Disqualified Capital Stock and on terms and documentation acceptable to Required Lenders (the
“Liquidity Milestone”).

 

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4.04. Cash-Flow
Reporting. On the first Business Day of each calendar week beginning with the first full week following the Effective Date,
Borrower shall deliver to the Lender an updated rolling 13-week cash flow forecast (the “13-Week Forecast”),
which 13-Week Forecast shall include (x) the immediately following week after the 13-week period contained in the most recently
delivered 13-Week Forecast (the “Prior 13-Week Forecast”) and the same (or updated) next 12-week forecast as
in the Prior 13-Week Forecast, based on Borrower’s reasonable cash flow projections and consistent with past practice, and
showing projected cash flow for the next 13 weeks in addition to a historical comparison of actual performance to projected performance
based on the Prior 13-Week Forecast, (y) an updated written report on all of the operations of the Loan Parties, including, without
limitation, reporting of variances from budget on a weekly basis and updates on operations and sales, and (z) compliance with Sections 4.05,
4.06 and 4.07 of this Agreement. The 13-Week Forecast shall be certified by the Chief Financial Officer of Borrower, or another
authorized officer of Borrower acceptable to the Lenders, as having been prepared in good faith, on a reasonable basis and consistent
with past practice.

 

4.05. Investments.
No Loan Party shall make any Investment without the prior written consent of the Required Lenders.

 

4.06. Asset
Sales. No Loan Party shall dispose of any asset other than as expressly permitted by Section 6.9(e), including any other disposition
otherwise permitted by the Loan Documents or this Section 4, without the prior written consent of the Required Lenders.

 

4.07. Material
Actions. No Loan Party shall take any Material Action without the prior written consent of the Required Lenders.

 

4.08. Transport
Financial Solutions. The A/R Lenders, including, without limitation, Transport Financial Solutions, shall continue to make
advances to the applicable “Seller” under the various A/R Credit Agreements in the same manner, including the making
of A/R Loan advances in excess of the formula provided for in such A/R Credit Agreements, as such advances were being made on the
Closing Date, including without limitation advancing against “Accounts” that are not expected to be paid to a Loan
Party by the applicable account debtor for up to six weeks after the advance thereon by such A/R Lender.

 

4.09. Monthly
Budget Updates. Commencing with respect to April 2020, Borrower shall also deliver an updated 2020 Budget, broken out by month
and otherwise in form and substance acceptable to Required Lenders, for each month that commences during the Forbearance Period
with a comparison to the prior 2020 Budget for such month, not later than the twentieth (20th) day of each month immediately
prior to the month to which such updated 2020 Budget pertains.

 

4.10. Additional
Financial Covenants.

 

(a) Cash
Reporting. On or before Tuesday of each week during the Forbearance Period commencing in March, 2020, the Company shall deliver
to Agent (i) a cash flow statement of the Company and its Subsidiaries with respect to the prior week in form and substance acceptable
to Required Lenders, together with (ii) a calculation of aggregate outstanding accounts payable by the Company and its Subsidiaries
as of the last day of the prior month and (iii) the aggregate ending bank account balances of the Company and its Subsidiaries
as of the close of business on Friday of each prior week.

 

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(b) Minimum
Cash Flow. Company and its Subsidiaries shall not permit total cash flow less expenditures paid in cash during such period
for the Company and its Subsidiaries with respect to each full month during the Forbearance Period, to be less than amounts specified
below (or in the case of a negative number denoted by “< >,” more negative) for such month (subtracting therefrom
the amount of cash payment of non-recurring expenditures set forth on Schedule B hereto and actually made in cash in such
month):

 

	Month	 	Cash Flow Net of Expenditures	 
	April, 2020	 	<$	1,788,000	>
	May, 2020	 	$	873,000	 
	June, 2020	 	<$	1,550,000	>
	July, 2020	 	$	4,000	 
	August, 2020	 	$	1,542,000	 
	September, 2020	 	$	254,000	 

 

Note that except
in the case of the contingency line item, each line item of non-recurring expenditure on Schedule B is a separate allowance
and amounts not used under one line item of non-recurring expenditure cannot be used to supplement the amount of another line item
of non-recurring expenditure. For avoidance of doubt, the contingency line item can be applied both to other one-time expenditures
not itemized on Schedule B and to supplement a line item that is itemized on Schedule B.

 

(c) Maximum
Accounts Payable. The aggregate amount of accounts payable of the Company and its Subsidiaries on the last day of each month
commencing with March, 2020 shall not exceed the aggregate amount of accounts payable of the Company and its Subsidiaries that
were outstanding on the Effective Date.

 

(d) Minimum
Weekly Cash Balance. The aggregate ending bank account balances of the Company and its Subsidiaries as of the close of business
on the last Business Day of each calendar month during the Forbearance Period shall not be less than $500,000.

 

4.11. Opinions.
Within ten (10) Business Days following the Effective Date, the Required Lenders shall have received a favorable written opinion
covering due authorization, execution and delivery of this Agreement, the warrant agreement referred to in Section 6.08 and the
equity issuance referred to in Section 6.07, addressed to Agent and the Lenders and in a form reasonably satisfactory to the Required
Lenders.

 

Section 5. Representations
and Warranties. Each of the Loan Parties represents and warrants to the Agent and the Lenders that (a) the representations
and warranties set forth in Article IV of the Financing Agreement (other than the Excepted Representations), and in each of the
other Loan Documents, are true and complete on the Effective Date as if made on and as of the Effective Date (or, if any such representation
or warranty is expressly stated to have been made as of a specific date, such representation or warranty shall be true and correct
as of such specific date) and as if each reference to Article IV of the Financing Agreement to “this Agreement” included
reference to this Agreement, (b) no Loan Party maintains any deposit accounts, securities accounts or commodities accounts except
as set forth on Schedule 4.30 to the Financing Agreement and (c) Schedule 4.2 to the Financing Agreement accurately
sets forth the ownership of all of the equity interests issued by Borrower and each other Loan Party as of the date hereof.

 

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Section 6. Conditions
Precedent. The effectiveness of this Agreement and the obligations of the Lender hereunder are subject to the satisfaction,
or waiver by the Lender, of the following conditions:

 

6.01. Counterparts.
Receipt by Agent of counterparts of this Agreement executed by Borrower, each Guarantor and Lenders constituting the “Required
Lenders” under the Existing Financing Agreement.

 

6.02. Expenses.
Payment, in cash, of the total of (i) $125,000 plus all accrued expenses, paid “on account” of accrued and unpaid costs
and expenses of Agent and the Lender including all fees, disbursements and expenses of their respective legal and financial advisors
through January 15, 2020, the unpaid balance of which remains due, owing and unpaid by the Borrower to the Agent and the Lender,
and (ii) all costs and expenses of the Agent and the Lender incurred in respect of this Financing Agreement since January 15, 2020,
including without limitation all fees, disbursements and expenses of their respective legal and financial advisors incurred in
connection with the negotiation, preparation and consummation of this Agreement, the warrant agreement and related work, as per
invoice delivered concurrently with the Effective Date. For avoidance of doubt, Loan Parties authorize the Incremental Term Lender
to directly apply the proceeds of the Incremental Term Loans to the satisfaction of this Obligation.

 

6.03. Form
of Opinions. Required Lenders shall have received a draft form of favorable written opinion covering due authorization, execution
and delivery of this Agreement, the warrant agreement referred to in Section 6.08 and the equity issuance referred to in Section
6.07, addressed to Agent and the Lenders and in a form reasonably satisfactory to the Required Lenders.

 

6.04. Collateral
Documents. The Agent and its counsel shall be satisfied that all control agreements and other Collateral Documents required
under the Loan Documents have been delivered and are in full force and effect, and all required perfection and priority steps with
respect thereto shall have been taken.

 

6.05. No
Default. No Default or Event of Default other than the Specified Defaults shall have occurred and be continuing.

 

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6.06. Representations
and Warranties. As of the Effective Date, the representations and warranties contained in this Agreement, the Financing Agreement
(other than the Excepted Representations) and in each other Loan Documents shall be true and correct in all material respects (except
that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified
as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties
shall be true and correct in all respects subject to such qualification) on and as of the Effective Date as if made on and as of
the Effective Date, except to the extent such representations and warranties specifically relate to an earlier date, in which case
such representations and warranties shall have been true and correct in all material respects (except that such materiality qualifier
shall not be applicable to any representations or warranties that already are qualified or modified as to “materiality”
or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in
all respects subject to such qualification) on and as of such earlier date.

 

6.07. Cash
Equity Infusion. On, or not more than forty-eight hours prior to, the Effective Date, Borrower and the Guarantors shall have
received additional cash equity contributions in the aggregate amount of $3,100,000 in immediately available funds in consideration
of the issuance to the persons providing such cash equity of Capital Stock of the Borrower that is not Disqualified Capital Stock
and that is issued by the Borrower on terms and documentation acceptable to Required Lenders.

 

6.08. Warrants.
The Incremental Term Lender shall have received warrants to purchase up to 3,650,000 shares of the common Capital Stock of the
Borrower at the price of $2.50 per share and otherwise on terms and documentation acceptable to the Incremental Term Lender. The
foregoing warrants shall be issued by Borrower free and clear of any withholding or deduction, including on account of any form
of taxes.

 

6.09. Officer
Certificate. A certificate of an officer of Borrower as to the authority, incumbency and specimen signatures of the persons
who have executed the Loan Documents or will execute any other documents in connection herewith on behalf of the Obligors.

 

6.10. Corporate
Documents. Certified copies duly enacted resolutions of, or consents by, the governing body or person of each Loan Party authorizing
the making and performance by it of this Agreement.

 

6.11. 2020
Budget. Borrower shall have delivered its budget for calendar year 2020 (“2020 Budget”), broken out by month
and otherwise in form and substance acceptable to Required Lenders, including, without limitation, entries for gross revenue and
net revenue, and attached hereto as Exhibit A.

 

6.12. Other.
All documents, certificates and instruments relating to this Agreement shall be in form and substance acceptable to the Lenders.

 

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Section 7. No Waiver;
Reservation of Rights. The Agent and each of the Lenders have not waived, and are not waiving, by the execution of this Agreement
or the acceptance of any payments hereunder or under the Financing Agreement any Default or Event of Default (including any Specified
Default) whether now existing or hereafter arising under the Financing Agreement or any of the other Loan Documents, or its respective
rights, remedies, powers, privileges and defenses arising as a result thereof or otherwise, and no failure on the part of the Agent
or the Lenders to exercise and no delay in exercising, including without limitation the right to take any enforcement actions,
and no course of dealing with respect to, any right, remedy, power, privilege or defense hereunder, under the Financing Agreement
or any other Loan Document, at law or in equity or otherwise, arising as the result of any Default or Event of Default (including
any Specified Default) whether now existing or hereafter arising under the Financing Agreement or any of the other Loan Documents
or the occurrence thereof or any other action by Loan Parties and no acceptance of partial performance or partial payment by the
Agent or the Lenders, shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power,
privilege or defense hereunder, under the Financing Agreement or under any other Loan Document, at law, in equity or otherwise,
preclude any other or further exercise thereof or the exercise of any other right, remedy, power, privilege or defense, nor shall
any failure to specify any Default or Event of Default in this Agreement constitute any waiver of such Default or Event of Default.
The rights, remedies, powers, privileges and defenses provided for herein, in the Financing Agreement and the other Loan Documents
are cumulative and, except as expressly provided hereunder, may be exercised separately, successively or concurrently at the sole
discretion of the Agent and the Lenders, and are not exclusive of any rights, remedies, powers, privileges and defenses provided
at law, in equity or otherwise, all of which are hereby expressly reserved. Notwithstanding the existence or content of any communication
by or between the Borrower or any Guarantor and the Agent or any Lender, or any of their representatives, including, but not limited
to, any Agent, regarding any Default or Event of Default, no waiver, forbearance, or other similar action by the Agent or any Lender
with regard to such Default or Event of Default, whether now existing or hereafter arising under the Financing Agreement or any
of the other Loan Documents, shall be effective unless the same has been reduced to writing and executed by authorized representatives
of the percentage of Lenders required under the applicable provisions of the Financing Agreement, the applicable Loan Parties and
every other entity deemed necessary or desirable by the percentage of Lenders required under the applicable provisions of the Financing
Agreement. Borrower and each Guarantor acknowledges and agrees that, both before and after giving effect to this Agreement, Borrower
and each Guarantor is, jointly and severally, indebted to the Lenders and the other Secured Parties for the Obligations (including
the Obligations in respect of the Incremental Term Loans provided pursuant to this Agreement), without defense, counterclaim or
offset of any kind. The Borrower and each Guarantor hereby ratifies and reaffirms the validity, enforceability and binding nature
of such Obligations both before and after giving effect to this Agreement (except as the enforceability thereof may be limited
by bankruptcy, insolvency or similar laws affecting creditors’ rights generally and subject to general principles of equity).
Borrower and each Guarantor hereby ratifies and reaffirms the validity and enforceability (except as the enforceability thereof
may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally and subject to general principles
of equity) of the Liens and security interests granted to Collateral Agent for the benefit of the Secured Parties to secure all
of the Obligations (including the Obligations in respect of the Incremental Term Loans provided pursuant to this Agreement) by
Borrower and each Guarantor pursuant to the Loan Documents to which any of Borrower or such other Guarantor is a party and hereby
confirms and agrees that notwithstanding the effectiveness of this Agreement, and except as expressly amended by this Agreement,
each such Loan Document is, and shall continue to be, in full force and effect and each is hereby ratified and confirmed in all
respects.

 

    12

     

    

 

Section 8. Release.
Each Loan Party, on behalf of itself, its Subsidiaries and Affiliates, and each of their successors, representatives,
assignees and, whether or not claimed by right of, through or under any Loan Party, past, present and future employees,
agents, representatives, officers, directors, members, managers, principals, affiliates, shareholders, trustees, consultants,
experts, advisors, attorneys and other professionals (each, a “Releasing Party” and collectively, the
“Releasing Parties”), does hereby fully, finally, and forever remise, release and discharge, and shall be
deemed to have forever remised, released and discharged, the Agent and the Lenders, and the Agent’s and each
Lender’s respective successors, representatives, assignees and past, present and future employees, agents,
representatives, officers, directors, members, managers, principals, affiliates, shareholders, trustees, consultants,
experts, advisors, attorneys and other professionals and all other persons and entities to whom any of the foregoing would be
liable if such persons or entities were found to be liable to any Releasing Party, or any of them (collectively hereinafter
the “Lender Parties”), from any and all manner of action and actions, cause and causes of action, claims,
defenses, rights of setoff, charges, demands, counterclaims, suits, debts, obligations, liabilities, dues, sums of money,
accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, damages, judgments, expenses,
executions, liens, claims of liens, claims of costs, penalties, attorneys’ fees, or any other compensation, recovery or
relief on account of any liability, obligation, demand or cause of action of whatever nature, whether in law, equity or
otherwise (including without limitation those arising under the Bankruptcy Code and interest or other carrying costs,
penalties, legal, accounting and other professional fees and expenses, and incidental, consequential and punitive damages
payable to third parties), whether known or unknown, fixed or contingent, joint and/or several, secured or unsecured, due or
not due, primary or secondary, liquidated or unliquidated, contractual or tortious, direct, indirect, or derivative, asserted
or unasserted, foreseen or unforeseen, suspected or unsuspected, now existing, heretofore existing or which may heretofore
accrue against any of the Lender Parties, whether held in a personal or representative capacity, and which are based on any
act, circumstance, fact, event or omission or other matter, cause or thing occurring at or from any time prior to and
including the date hereof in any way, directly or indirectly arising out of, connected with, in respect of or relating to
this Agreement, the Financing Agreement or any other Loan Document and the transactions contemplated thereby, and all other
agreements, certificates, instruments and other documents and statements (whether written or oral) related to any of the
foregoing.

 

Section 9. Confirmation
of Loan Documents. Each of the Loan Parties hereby confirms and ratifies all of its obligations under the Loan Documents to
which it is a party, and each of the Guarantors hereby confirms its obligations under Article VII of the Financing Agreement. By
its execution on the respective signature lines provided below, each of the Loan Parties hereby acknowledges and agrees that the
Financing Agreement, as amended by this Agreement, remains in full force and effect and is enforceable by the Agent and the Lenders
pursuant to its terms. By its execution on the respective signature lines provided below, each of the Loan Parties hereby confirms
and ratifies all of its obligations and the Liens granted by it under the Collateral Documents to which it is a party and confirms
that all references in such Collateral Documents to the “Financing Agreement” (or words of similar import) refer to
the Financing Agreement as amended hereby without impairing any such obligations or Liens in any respect.

 

Section 10. Amendments.
No amendment, modification, termination or waiver of any provision of this Agreement, or consent to any departure by any Loan Party
therefrom, shall in any event be effective without the written concurrence of Borrower and the Required Lenders (or Agent acting
at the direction of the Required Lenders).

 

Section 11. Miscellaneous.
Except as herein expressly provided, the Financing Agreement and each of the other Loan Documents shall remain unchanged and in
full force and effect. This Agreement is a “Loan Document” under the Financing Agreement for all purposes and all obligations
of the Loan Parties under this Agreement are Obligations under the Financing Agreement. This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one and the same amendatory instrument and any of the parties hereto
may execute this Agreement by signing any such counterpart. Delivery of an executed counterpart of a signature page to this Agreement
by electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement. This Agreement
shall be governed by, and construed in accordance with, the law of the State of New York, without application of any choice of
law provisions that would require the application of the law of another jurisdiction.

 

[Signatures Follow on Next Page]

 

    13

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed and delivered as of the day and year first above written.

 

	 	BORROWER:
	 	 
	 	EVO TRANSPORTATION & ENERGY SERVICES, INC., a Delaware corporation
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:   	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	GUARANTORS:
	 	 
	 	EVO CNG, LLC,
	 	a Delaware limited liability company
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	THUNDER RIDGE TRANSPORT, INC.,
	 	a Missouri corporation
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	EVO EQUIPMENT LEASING, LLC,
	 	a Delaware limited liability company
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	EVO SERVICES GROUP, LLC,
	 	a Delaware limited liability company
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer

 
[Signature Page to Forbearance and Incremental
Amendment]

 

     

     

    

 

	 	FINKLE TRANSPORT INC.,
	 	a New Jersey corporation
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:   	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	RITTER TRANSPORT, INC.,
	 	a Maryland corporation
	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	JOHN W. RITTER TRUCKING, INC.,
	 	a Maryland corporation
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	W.E. GRAHAM, INC.,
	 	a Tennessee corporation
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	URSA MAJOR CORPORATION,
	 	a Wisconsin corporation
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	SHEEHY MAIL CONTRACTORS, INC.,
	 	a Wisconsin corporation
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer

 

[Signature Page to Forbearance and Incremental
Amendment]

 

     

     

    

 

	 	J.B. LEASE CORPORATION,
	 	a Wisconsin corporation
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	JOHMAR LEASING COMPANY, LLC,
	 	a Maryland limited liability company
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	COURTLANDT AND BROWN ENTERPRISES L.L.C.,
	 	a New Jersey limited liability company
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:   	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	RITTER TRANSPORTATION SYSTEMS, INC.,
	 	a Maryland corporation
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	TITAN CNG LLC,
	 	a Delaware limited liability company
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer

 
[Signature Page to Forbearance and Incremental
Amendment]

 

     

     

    

 

	 	ENVIRONMENTAL ALTERNATIVE FUELS, LLC,
	 	a Delaware limited liability company
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	EVO HOLDING COMPANY LLC,
	 	a Delaware limited liability company
	 	 	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:  	Thomas J. Abood
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	EVO LOGISTICS LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	/s/ Thomas J. Abood
	 	 	Name:	Thomas J. Abood
	 	 	Title:	Chief Executive Officer

 

[Signature Page to Forbearance and Incremental
Amendment]

 

     

     

    

 

	 	ADMINISTRATIVE AGENT AND COLLATERAL AGENT
	 	 
	 	Cortland Capital Market Services LLC, as Administrative Agent and Collateral Agent
	 	 	 	 
	 	By:	/s/ Matthew Trybula
	 	 	Name:  	Matthew Trybula
	 	 	Title:	Associate Counsel

 

[Signature Page to Forbearance and Incremental
Amendment]

 

     

     

    

 

	 	LENDERS
	 	 
	 	ANTARA CAPITAL MASTER FUND LP
	 	As a Lender under the Existing Financing Agreement and as an Incremental Term Lender
	 	 
	 	By:  Antara Capital LP,
	 	not in its individual corporate capacity,
	 	but solely as Investment Advisor and agent 
	 	 	 	 
	 	By: 	Antara Capital GP LLC,
	 	 	its general partner
	 	 	 
	 	By:	/s/ Himanshu Gulati
	 	 	Name:   	Himanshu Gulati
	 	 	Title:	Managing Member

 

[Signature Page to Forbearance and Incremental
Amendment]

 

     

     

    

 

SCHEDULE A

 

INCREMENTAL TERM LOAN COMMITMENTS

 

	Incremental Term Loan Lender	 	Incremental Term Loan Commitment	 
	ANTARA CAPITAL MASTER FUND LP	 	$	3,214,285.71	 

 

     

     

    

 

SCHEDULE B

 

Allowed one time cash flow addbacks

 

	 	 	Allowed	 
	LoadTrek Installation for full fleet Route-based payroll	 	$	0.100	 
	D&O Renewal	 	$	0.750	 
	Road Use Tax	 	$	0.195	 
	Fleet Registration	 	$	0.800	 
	20 Used Trailers	 	$	0.036	 
	Trailer Tracking for McCormick	 	$	0.007	 
	Finkle Insurance Deductibles	 	$	0.100	 
	CA CNG Item	 	$	1.400	 
	Audit Fees	 	$	0.400	 
	Contingency	 	$	0.750	 
	TOTAL	 	$	4.538Exhibit 10.1

 

WARRANT

 

THIS
WARRANT (THIS “WARRANT”) AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR QUALIFIED UNDER
ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR
ASSIGNED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SHARES IS EFFECTIVE UNDER THE ACT AND IS QUALIFIED UNDER APPLICABLE
STATE AND FOREIGN LAW OR (II) THE TRANSACTION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS UNDER THE ACT
AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW AND, IF THE CORPORATION REQUESTS, AN OPINION SATISFACTORY
TO THE CORPORATION TO SUCH EFFECT HAS BEEN RENDERED BY COUNSEL.

 

Warrant
Certificate No.: [38]

 

Original
Issue Date: February 27, 2020

 

FOR
VALUE RECEIVED, EVO Transportation & Energy Services, Inc., a Delaware corporation (the
“Company”), hereby certifies that Antara Capital Master Fund LP, a Cayman Islands limited partnership, any
of its affiliates or its registered assigns (the “Holder”) is entitled to purchase from the Company three million
six hundred and fifty thousand (3,650,000) duly authorized, validly issued, fully paid
and nonassessable shares of Common Stock at a purchase price per share of $2.50  (the “Exercise Price”),
all subject to the terms, conditions and adjustments set forth below in this Warrant. Certain capitalized terms used herein are
defined in Section 1 hereof. 

 

1. Definitions.
As used in this Warrant, the following terms have the respective meanings set forth below:

 

“Aggregate
Exercise Price” means an amount equal to the product of (a) the number of Warrant Shares in respect of which
this Warrant is then being exercised pursuant to Section 4 hereof, multiplied by (b) the Exercise Price in effect as of
the Exercise Date in accordance with the terms of this Warrant.

 

“Board”
means the board of directors of the Company.

 

“Business
Day” means any day, except a Saturday, Sunday or legal holiday, on which banking institutions in New York are
authorized or obligated by law or executive order to close.

 

     

     

    

 

“Change
of Control” shall mean (i) a merger or consolidation of the Company with another entity, in which the Company is not
the survivor or the stockholders of the Company immediately prior to such merger or consolidation do not own, directly or indirectly,
at least 50% of the voting securities of the surviving entity, (ii) the sale, assignment, transfer, conveyance or other disposal
of all or substantially all of the properties or assets or all or a majority of the outstanding voting securities of the Company,
(iii) a purchase, tender or exchange offer accepted by the holders of a majority of the outstanding voting shares of capital stock
of the Company directly or indirectly, in one or more related transactions, (iv) a “person” or “group”
(as these terms are used for purposes of Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of at least a majority of the outstanding shares of Common Stock of the Company through a stock purchase agreement
or other business combination (including, without limitation, a reorganization, reclassification, spin off or scheme of arrangement)
with another person, or (v) the Company has elected to reorganize, recapitalize or reclassify its Common Stock (other than to
change domicile).

 

“Common
Stock” means the common stock, par value $0.0001 per share, of the Company, and any capital stock into which
such Common Stock shall have been converted, exchanged or reclassified following the date hereof.

 

“Common
Stock Deemed Outstanding” means, at any given time, the sum of (a) the number of shares of Common Stock actually outstanding
at such time, plus (b) the number of shares of Common Stock issuable upon exercise of Options actually outstanding at such time,
plus (c) the number of shares of Common Stock issuable upon conversion or exchange of Convertible Securities actually outstanding
at such time (treating as actually outstanding any Convertible Securities issuable upon exercise of Options actually outstanding
at such time), in each case, regardless of whether the Options or Convertible Securities are actually exercisable at such time;
provided, that Common Stock Deemed Outstanding at any given time shall not include shares owned or held by or for the account
of the Company or any of its wholly owned subsidiaries.

 

“Company”
has the meaning set forth in the preamble.

 

“Convertible
Securities” means any securities (directly
or indirectly) convertible into or exchangeable for Common Stock, but excluding Options.

 

“Excluded
Issuances” means any issuance or sale (or deemed issuance or sale in accordance with Section 4(c)) by the Company
after the Original Issue Date of: (a) shares of Common Stock issued upon the exercise of this Warrant; or (b) shares of Common
Stock (as such number of shares is equitably adjusted for subsequent stock splits, stock combinations, stock dividends and recapitalizations)
issued directly or upon the exercise of Options to directors, officers, employees, or consultants of the Company in connection
with their service as directors of the Company, their employment by the Company or their retention as consultants by the Company,
in each case authorized by the Board and issued pursuant to the Company’s Amended and Restated 2018 Stock Incentive Plan
(including all such shares of Common Stock and Options outstanding prior to the Original Issue Date), so long as the exercise
price in respect of any Options is not less than the Fair Market Value of the Common Stock as of the date such Option is issued.

 

    2

     

    

 

“Exercise
Date” means, for any given exercise of this Warrant, the date on which the conditions to such exercise as
set forth in Section 4 shall have been satisfied at or prior to 5:00 p.m., New York City time, on a Business Day, including,
without limitation, the receipt by the Company of the Exercise Form, the Warrant and the Aggregate Exercise Price.

 

“Exercise
Form” has the meaning set forth in Section 4(a)(i).

 

“Exercise
Period” has the meaning set forth in Section 2.

 

“Exercise
Price” has the meaning set forth in the preamble.

 

“Fair
Market Value” of a Warrant Share shall mean the arithmetic average of the last trade price of the Common Stock (as reported
by Bloomberg Financial Markets) for the five (5) consecutive days on which the Nasdaq is open for trading, ending on the date
immediately preceding the Exercise Date, on the principal trading market on which the Common Stock is quoted or listed for trading.
If the Fair Market Value cannot be calculated on a particular date on the foregoing basis, the Fair Market Value shall be the
average of the highest bid and lowest asked prices for the Common Stock on the principal trading market at the end of such day.
If at any time the Common Stock is not listed on a domestic securities exchange or quoted on the Financial Industry Regulatory
Authority OTC Bulletin Board electronic inter-dealer quotation system, the OTC Markets Group Inc. electronic inter-dealer quotation
system or similar quotation system or association, the Fair Market Value of the Common Stock shall be the fair market value determined
jointly in good faith by the Board and the Holder; provided, that if the Board and the Holder are unable to agree on the
Fair Market Value of a Warrant Share within a reasonable period of time (not to exceed five (5) days from the Company’s
receipt of the Exercise Form), Fair Market Value shall be determined by a nationally recognized investment banking, accounting
or valuation firm jointly selected by the Holder and the Company and engaged by the Company. The determination of such firm shall
be final and conclusive, and the fees and expenses of such valuation firm shall be borne by the Company. The investment bank so
engaged shall determine the Fair Market Value of the Common Stock assuming an orderly sale transaction between a willing buyer
and a willing seller, using valuation techniques then prevailing in the securities industry without regard to the lack of liquidity
of the Common Stock due to any restrictions (contractual or otherwise) applicable thereto or any discount for minority interests
and assuming full disclosure of all relevant information and a reasonable period of time for effectuating such sale and assuming
the sale of all of the issued and outstanding Common Stock (including fractional interests) calculated on a fully diluted basis
(except those securities, rights and warrants (a) owned or held by or for the account of the Company or any of its subsidiaries,
or (b) convertible or exchangeable into Common Stock where the conversion, exchange or exercise price per share is greater than
the Fair Market Value). All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination
or other similar transaction during the applicable calculation period.

 

“Holder” has
the meaning set forth in the preamble.

 

“Nasdaq” means
The NASDAQ Stock Market LLC.

 

    3

     

    

 

“New
Securities” shall mean any capital stock of the Company issued after the Date of Issuance, all rights, options or warrants
to purchase such capital stock, and any securities of any type whatsoever that shall be (or may become) exchangeable or exercisable
for, or convertible into, such capital stock.

 

“Options” means
any warrants or other rights or options to subscribe for or purchase Common Stock or Convertible Securities.

 

“Original
Issue Date” means February 27, 2020.

 

“OTC
Bulletin Board” means the Financial Industry Regulatory Authority OTC Bulletin Board electronic inter-dealer
quotation system.

 

“Person” means
any individual, sole proprietorship, partnership, limited liability company, corporation, joint venture, trust, incorporated organization
or government or department or agency thereof.

 

“Pink
OTC Markets” means the OTC Markets Group Inc. electronic inter-dealer quotation system, including OTCQX,
OTCQB and OTC Pink.

 

“Warrant”
means this Warrant and all warrants issued upon division or combination of, or in substitution for, this Warrant.

 

“Warrant
Shares” means the shares of Common Stock or other capital stock of the Company then purchasable upon exercise of this
Warrant in accordance with the terms of this Warrant.

 

2.
Term of Warrant. Subject to the terms and conditions hereof, at any time or from time to time after the date hereof and
prior to 5:00 p.m., New York City time, February 27, 2030 (the “Exercise Period”),
the Holder of this Warrant may exercise this Warrant for all or any part of the Warrant Shares purchasable hereunder (subject
to adjustment as provided herein). The Company shall give the Holder written notice of the expiration of the Exercise Period not
less than 30 days but not more than 60 days prior to the end of the Exercise Period.

 

3. Automatic
Exercise. If, at the end of the Exercise Period, the Holder has remaining Warrant Shares subject to this Warrant (excluding
Warrant Shares that the Holder has delivered a duly executed Exercise Form pursuant to Section 4(a)(i) hereof) and the
Fair Market Value of shares of Common Stock is greater than the Exercise Price, then such Warrant Shares shall be automatically
deemed to be exercised pursuant to a Cashless Exercise (as defined below) by the Holder immediately prior to the end of the Exercise
Period. The Company will promptly thereafter issue to the Holder a stock certificate representing the Warrant Shares the Holder
is entitled to at such time.

 

    4

     

    

 

4. Exercise
of Warrant.

 

(a) Exercise
Procedure. This Warrant may be exercised from time to time on any Business Day during the Exercise Period, for all or any
part of the unexercised Warrant Shares, upon:

 

(i)
surrender of this Warrant to the Company at its then principal executive offices (or an indemnification undertaking with respect
to this Warrant in the case of its loss, theft or destruction), together with an Exercise Form in the form attached hereto as
Exhibit A (each, an “Exercise Form”), duly completed (including
specifying the number of Warrant Shares to be purchased) and executed; and

 

(ii) payment
to the Company of the Aggregate Exercise Price in accordance with Section 4(b).

 

(b) Payment
of the Aggregate Exercise Price. Payment of the Aggregate Exercise Price shall be made, at the option of the Holder as expressed
in the Exercise Form, by the following methods:

 

(i) by
delivery to the Company of a certified or official bank check payable to the order of the Company or by wire transfer of immediately
available funds to an account designated in writing by the Company, in the amount of such Aggregate Exercise Price;

 

(ii) by
instructing the Company to withhold a number of Warrant Shares then issuable upon exercise of this Warrant with an aggregate Fair
Market Value as of the Exercise Date equal to such Aggregate Exercise Price (a “Cashless Exercise”); or

 

(iii) any
combination of the foregoing.

 

In
the event of any withholding of Warrant Shares or surrender of other equity securities pursuant to clause (ii), (iii) or (iv)
above where the number of shares whose value is equal to the Aggregate Exercise Price is not a whole number, the number of shares
withheld by or surrendered to the Company shall be rounded up to the nearest whole share and the Company shall make a cash payment
to the Holder (by delivery of a certified or official bank check or by wire transfer of immediately available funds) based on
the incremental fraction of a share being so withheld by or surrendered to the Company in an amount equal to the product of (x)
such incremental fraction of a share being so withheld or surrendered multiplied by (y) in the case of Common Stock, the Fair
Market Value per Warrant Share as of the Exercise Date, and, in all other cases, the value thereof as of the Exercise Date determined
in accordance with clause (iii)(y) above.

 

(c) Issuance
of Warrant Shares. Upon receipt by the Company of the Exercise Form, surrender of this Warrant and payment of the Aggregate
Exercise Price (in accordance with Section 4(a) hereof), the Company at its expense shall, as promptly as practicable,
and in any event within three (3) Business Days thereafter, cause to be issued via book-entry in the name of the Holder or as
the Holder may direct, the number of shares of Warrant Shares to which the Holder shall be entitled upon such exercise, together
with cash in lieu of any fraction of a share, as provided in Section 4(d) hereof. This Warrant shall be deemed to have
been exercised and such Warrant Shares shall be deemed to have been issued via book-entry, and the Holder or any other Person
so designated to be named therein shall be deemed to have become a holder of record of such Warrant Shares for all purposes, as
of the Exercise Date.

 

    5

     

    

 

(d) Fractional
Shares. The Company shall not be required to issue a fractional Warrant Share upon exercise of any Warrant. As to any fraction
of a Warrant Share that the Holder would otherwise be entitled to purchase upon such exercise, the Company shall pay to such Holder
an amount in cash (by delivery of a certified or official bank check or by wire transfer of immediately available funds) equal
to the product of (i) such fraction multiplied by (ii) the Fair Market Value of one Warrant Share on the Exercise Date.

 

(e) Delivery
of New Warrant. Unless the purchase rights represented by this Warrant shall have expired or shall have been fully exercised,
the Company shall, at the time of delivery of the certificate or certificates representing the Warrant Shares being issued in
accordance with Section 4(c) hereof, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase
the unexpired and unexercised Warrant Shares called for by this Warrant. Such new Warrant shall in all other respects be identical
to this Warrant.

 

(f) Valid
Issuance of Warrant and Warrant Shares; Payment of Taxes. With respect to the exercise of this Warrant, the Company hereby
represents, covenants and agrees:

 

(i) This
Warrant is, and any Warrant issued in substitution for or replacement of this Warrant shall be, upon issuance, duly authorized
and validly issued.

 

(ii) All
Warrant Shares issuable upon the exercise of this Warrant pursuant to the terms hereof shall be, upon issuance, and the Company
shall take all such actions as may be necessary or appropriate in order that such Warrant Shares are, validly issued, fully paid
and non-assessable, issued without violation of any preemptive or similar rights of any stockholder of the Company and free and
clear of all taxes, liens and charges.

 

(iii) The
Company shall take all such actions as may be necessary to ensure that all such Warrant Shares are issued without violation by
the Company of any applicable law or governmental regulation or any requirements of any domestic securities exchange upon which
shares of Common Stock or other securities constituting Warrant Shares may be listed at the time of such exercise (except for
official notice of issuance which shall be immediately delivered by the Company upon each such issuance).

 

(iv) The
Company shall use its best efforts to cause the Warrant Shares, immediately upon such exercise, to be listed on any domestic securities
exchange upon which shares of Common Stock or other securities constituting Warrant Shares are listed at the time of such exercise.

 

(v) The
Company shall pay all expenses in connection with, and all taxes and other governmental charges that may be imposed with respect
to, the issuance or delivery of Warrant Shares upon exercise of this Warrant; provided, that the Company shall not be required
to pay any tax or governmental charge that may be imposed with respect to any applicable withholding or the issuance or delivery
of the Warrant Shares to any Person other than the Holder, and no such issuance or delivery shall be made unless and until the
Person requesting such issuance has paid to the Company the amount of any such tax, or has established to the satisfaction of
the Company that such tax has been paid.

 

    6

     

    

 

(g)
Conditional Exercise. Notwithstanding any other provision hereof, if an exercise of any portion of this Warrant is to be
made in connection with a sale of the Company (pursuant to a merger, sale of stock, or otherwise), such exercise may at the election
of the Holder be conditioned upon the consummation of such transaction, in which case such exercise shall not be deemed to be
effective until immediately prior to the consummation of such transaction.

 

(h) Exercise
Upon a Change of Control. Upon the occurrence of a Change of Control, the Holder may elect, by giving notice to the Company
within fifteen (15) days of such Change of Control, to receive in exchange for its Warrants the kind and amount of securities,
cash or other assets (the “Sale Consideration”) which the Holder would have received with respect to the Common
Stock issuable upon the exercise of such Warrants if the Holder had exercised such Warrants on a cashless basis immediately prior
to the occurrence of the Change of Control, with such number of shares of Common Stock which would have been so issuable to be
determined by (i) subtracting B from A, (ii) dividing the result by A, and (iii) multiplying the quotient by C as set forth in
the following equation:

 

X=
(A - B) x C

A

 

where:

 

		X
                              =	the
                                         number of shares of Common Stock issuable upon exercise pursuant to this paragraph 4(g).

 

		A
                              =	the
                                         amount of Sale Consideration payable per share of Common Stock in connection with the
                                         Change of Control, (i) with such amount expressed in U.S. dollars and, if applicable,
                                         rounded to the nearest whole cent, and (ii) with any non-cash portion of such Sale Consideration
                                         valued at the value attributed thereto in the Change of Control.

 

		B
                              =	the
                                         Exercise Price.

 

		C =	 the number of shares of Common Stock as to which the applicable Warrants are exercisable (prior to payment of the Exercise Price).

 

    7

     

    

 

(i) Reservation
of Shares. During the Exercise Period, the Company shall at all times reserve and keep available out of its authorized but
unissued Common Stock or other securities constituting Warrant Shares, solely for the purpose of issuance upon the exercise of
this Warrant, the maximum number of Warrant Shares issuable upon the exercise of this Warrant, and the par value per Warrant Share
shall at all times be less than or equal to the applicable Exercise Price. The Company shall not increase the par value of any
Warrant Shares receivable upon the exercise of this Warrant above the Exercise Price then in effect, and 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.

 

5. Adjustment
to Exercise Price and Number of Warrant Shares. In order to prevent dilution of the purchase rights granted under this Warrant,
the Exercise Price and the number of Warrant Shares issuable upon exercise of this Warrant shall be subject to adjustment from
time to time as provided in this Section 5 (in each case, after taking into consideration any prior adjustments pursuant
to this Section 5).

 

(a) Adjustment
to Exercise Price Upon Issuance of Common Stock. Except as provided in Section 5(c) and except in the case of an event
described in either Section 5(e) or Section 5(f), if the Company shall, at any time or from time to time after the
Original Issue Date, issue or sell, or in accordance with Section 5(d) is deemed to have issued or sold, any shares of
Common Stock without consideration or for consideration per share less than the Exercise Price in effect immediately prior to
such issuance or sale (or deemed issuance or sale), then immediately upon such issuance or sale (or deemed issuance or sale),
the Exercise Price in effect immediately prior to such issuance or sale (or deemed issuance or sale) shall be reduced (and in
no event increased) to an Exercise Price equal to the quotient obtained by dividing:

 

(i) the
sum of (A) the product obtained by multiplying the Common Stock Deemed Outstanding immediately prior to such issuance or sale
(or deemed issuance or sale) by the Exercise Price then in effect plus (B) the aggregate consideration, if any, received by the
Company upon such issuance or sale (or deemed issuance or sale); by

 

(ii) the
sum of (A) the Common Stock Deemed Outstanding immediately prior to such issuance or sale (or deemed issuance or sale) plus (B)
the aggregate number of shares of Common Stock issued or sold (or deemed issued or sold) by the Company in such issuance or sale
(or deemed issuance or sale).

 

(b) Adjustment
to Number of Warrant Shares Upon Adjustment to Exercise Price. Upon any and each adjustment of the Exercise Price as provided
in Section 5(a), the number of Warrant Shares issuable upon the exercise of this Warrant immediately prior to any such
adjustment shall be increased to a number of Warrant Shares equal to the quotient obtained by dividing:

 

(i) the
product of (A) the Exercise Price in effect immediately prior to any such adjustment multiplied by (B) the number of Warrant Shares
issuable upon exercise of this Warrant immediately prior to any such adjustment; by

 

(ii) (ii)
the Exercise Price resulting from such adjustment.

 

    8

     

    

 

(c) Exceptions
to Adjustment Upon Issuance of Common Stock. Anything herein to the contrary notwithstanding, there shall be no adjustment
to the Exercise Price or the number of Warrant Shares issuable upon exercise of this Warrant with respect to any Excluded Issuance.

 

(d) Effect
of Certain Events on Adjustment to Exercise Price. For purposes of determining the adjusted Exercise Price under Section
5(a) hereof, the following shall be applicable:

 

(i) Issuance
of Options. If the Company shall, at any time or from time to time after the Original Issue Date, in any manner grant or sell
(whether directly or by assumption in a merger or otherwise) any Options, 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 (determined as provided in this paragraph and in Section 5(c)(v)) 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 Exercise Price in effect immediately prior to the time of the granting or sale of such Options, 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 (and thereafter shall be deemed to be outstanding for purposes of adjusting the Exercise Price
under Section 5(a)), 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 5(a)) of (x) the total amount, if any, received or receivable by the
Company as consideration for the granting or sale of all such Options, plus (y) the minimum aggregate amount of additional consideration
payable to the Company upon the exercise of all such Options, plus (z), in the case of such Options which relate to 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, 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. Except as otherwise provided in Section 5(c)(iii), no further
adjustment of the Exercise Price shall be made upon the actual issuance of Common Stock or of Convertible Securities upon exercise
of such Options or upon the actual issuance of Common Stock upon conversion or exchange of Convertible Securities issuable upon
exercise of such Options.

 

    9

     

    

 

(ii) Issuance
of Convertible Securities. If the Company shall, at any time or from time to time after the Original Issue Date, in any manner
grant or sell (whether directly or by assumption in a merger or otherwise) any Convertible Securities, whether or not the right
to convert or exchange any such Convertible Securities is immediately exercisable, and the price per share (determined as provided
in this paragraph and in Section 5(d)(v)) for which Common Stock is issuable upon the conversion or exchange of such Convertible
Securities is less than the Exercise Price in effect immediately prior to the time of the granting or sale of such Convertible
Securities, 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 (and thereafter shall be deemed to be outstanding for purposes of adjusting the Exercise Price pursuant to Section
5(a)), 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 5(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, by (B) the total
maximum number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities. Except as
otherwise provided in Section 5(c)(iii), no further adjustment of the Exercise Price shall be made upon the actual issuance
of Common Stock upon conversion or exchange of such Convertible Securities or by reason of the issue or sale of Convertible Securities
upon exercise of any Options to purchase any such Convertible Securities for which adjustments of the Exercise Price have been
made pursuant to the other provisions of this Section 5(c).

 

(iii) Change
in Terms of Options or Convertible Securities. Upon any change in any of (A) the total amount received or receivable by the
Company as consideration for the granting or sale of any Options or Convertible Securities referred to in Section 5(d)(i)
or Section 5(d)(ii) hereof, (B) the minimum aggregate amount of additional consideration, if any, payable to the Company
upon the exercise of any Options or upon the issuance, conversion or exchange of any Convertible Securities referred to in Section
5(d)(i) or Section 5(d)(ii) hereof, (C) the rate at which Convertible Securities referred to in Section 5(d)(i)
or Section 5(d)(ii) hereof are convertible into or exchangeable for Common Stock, or (D) the maximum number of shares
of Common Stock issuable in connection with any Options referred to in Section 5(d)(i) hereof or any Convertible Securities
referred to in Section 5(d)(ii) hereof (in each case, other than in connection with an Excluded Issuance), then (whether
or not the original issuance or sale of such Options or Convertible Securities resulted in an adjustment to the Exercise Price
pursuant to this Section 5) the Exercise Price in effect at the time of such change shall be adjusted or readjusted, as
applicable, to the Exercise Price which would have been in effect at such time pursuant to the provisions of this Section 5
had such Options or Convertible Securities still outstanding provided for such changed consideration, conversion rate or maximum
number of shares, as the case may be, at the time initially granted, issued or sold, but only if as a result of such adjustment
or readjustment the Exercise Price then in effect is reduced, and the number of Warrant Shares issuable upon the exercise of this
Warrant immediately prior to any such adjustment or readjustment shall be correspondingly adjusted or readjusted pursuant to the
provisions of Section 5(b).

 

(iv) Treatment
of 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 Security (or portion thereof) for which any adjustment (either
upon its original issuance or upon a revision of its terms) was made pursuant to this Section 5 (including without limitation
upon the redemption or purchase for consideration of all or any portion of such Option or Convertible Security by the Company),
the Exercise Price then in effect hereunder shall forthwith be changed pursuant to the provisions of this Section 5 to
the Exercise Price 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 Security (or portion thereof), to the extent outstanding immediately
prior to such expiration or termination, never been issued.

 

    10

     

    

 

(v) Calculation
of Consideration Received. If the Company shall, at any time or from time to time after the Original Issue Date, issue or
sell, or is deemed to have issued or sold in accordance with Section 5(c), any shares of Common Stock, Options or Convertible
Securities: (A) for cash, the consideration received therefor shall be deemed to be the net amount received by the Company therefor;
(B) for consideration other than cash, the amount of the consideration other than cash received by the Company shall be the fair
value of such consideration, except where such consideration consists of marketable securities, in which case the amount of consideration
received by the Company shall be the market price (as reflected on any securities exchange, quotation system or association or
similar pricing system covering such security) for such securities as of the end of business on the date of receipt of such securities;
(C) for no specifically allocated consideration in connection with an issuance or sale of other securities of the Company, together
comprising one integrated transaction, the amount of the consideration therefor shall be deemed to be the fair value of such portion
of the aggregate consideration received by the Company in such transaction as is attributable to such shares of Common Stock,
Options or Convertible Securities, as the case may be, issued in such transaction; or (D) to the owners of the non-surviving entity
in connection with any merger in which the Company is the surviving corporation, the amount of consideration therefor shall 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, issued to such owners. The fair value of any consideration
other than cash or marketable securities shall be determined in good faith jointly by the Board and the Holder; provided,
that if the Board and the Holder are unable to agree on the fair value of any consideration other than cash or marketable securities
within a reasonable period of time (not to exceed five (5) days from the Holder’s receipt of a certificate of adjustment
pursuant to Section 5(h)(i) relating to the applicable issuance), such fair value shall be determined by a nationally recognized
investment banking, accounting or valuation firm jointly selected by the Board and the Holder. The determination of such firm
shall be final and conclusive, and the fees and expenses of such valuation firm shall be borne by the Company.

 

(vi) Record
Date. For purposes of any adjustment to the Exercise Price or the number of Warrant Shares in accordance with this Section
5, in case the Company shall take a record of the holders of its Common Stock for the purpose of entitling them (A) to receive
a dividend or other distribution payable in Common Stock, Options or Convertible Securities or (B) to subscribe for or purchase
Common Stock, Options or Convertible Securities, then such record date shall 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.

 

(vii) Treasury
Shares. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for
the account of the Company or any of its wholly-owned subsidiaries, and the disposition of any such shares (other than the cancellation
or retirement thereof or the transfer of such shares among the Company and its wholly-owned subsidiaries) shall be considered
an issue or sale of Common Stock for the purpose of this Section 5.

 

    11

     

    

 

(viii) Other
Dividends and Distributions. Subject to the provisions of this Section 5(d), if the Company shall, at any time or from time
to time after the Original Issue Date, make or declare, or fix a record date for the determination of holders of Common Stock
entitled to receive, a dividend or any other distribution payable in securities of the Company (other than a dividend or distribution
of shares of Common Stock, Options or Convertible Securities in respect of outstanding shares of Common Stock), cash or other
property, then, and in each such event, provision shall be made so that the Holder shall receive upon exercise of the Warrant,
in addition to the number of Warrant Shares receivable thereupon, the kind and amount of securities of the Company, cash or other
property which the Holder would have been entitled to receive had the Warrant been exercised in full into Warrant Shares on the
date of such event and had the Holder thereafter, during the period from the date of such event to and including the Exercise
Date, retained such securities, cash or other property receivable by them as aforesaid during such period, giving application
to all adjustments called for during such period under this Section 5 with respect to the rights of the Holder; provided,
that no such provision shall be made if the Holder receives, simultaneously with the distribution to the holders of Common Stock,
a dividend or other distribution of such securities, cash or other property in an amount equal to the amount of such securities,
cash or other property as the Holder would have received if the Warrant had been exercised in full into Warrant Shares on the
date of such event.

 

(e) Adjustment
to Exercise Price and Warrant Shares Upon Dividend, Subdivision or Combination of Common Stock. If the Company shall, at any
time or from time to time after the Original Issue Date, (i) pay a dividend or make any other distribution upon the Common Stock
or any other capital stock of the Company payable in shares of Common Stock or in Options or Convertible Securities, or (ii) subdivide
(by any stock split, recapitalization or otherwise) its outstanding shares of Common Stock into a greater number of shares, the
Exercise Price in effect immediately prior to any such dividend, distribution or subdivision shall be proportionately reduced
and the number of Warrant Shares issuable upon exercise of this Warrant shall be proportionately increased. If the Company at
any time combines (by combination, reverse stock split or otherwise) its outstanding shares of Common Stock into a smaller number
of shares, the Exercise Price in effect immediately prior to such combination shall be proportionately increased and the number
of Warrant Shares issuable upon exercise of this Warrant shall be proportionately decreased. Any adjustment under this Section
5(e) shall become effective at the close of business on the date the dividend, subdivision or combination becomes effective.

 

    12

     

    

 

(f) Adjustment
to Exercise Price and Warrant Shares Upon Reorganization, Reclassification, Consolidation or Merger. To the extent the Holder
does not exercise its applicable rights under Section 4(h) hereof, if there is a (i) capital reorganization of the Company,
(ii) reclassification of the stock of the Company (other than a change in par value or from par value to no par value or from
no par value to par value or as a result of a stock dividend or subdivision, split-up or combination of shares), (iii) consolidation
or merger of the Company with or into another Person, (iv) Change of Control or (v) other similar transaction (other than any
such transaction covered by Section 5(d)), in each case which entitles the holders of Common Stock to receive (either directly
or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common Stock, each Warrant shall,
immediately after such reorganization, reclassification, consolidation, merger, sale or similar transaction, remain outstanding
and shall thereafter, in lieu of or in addition to (as the case may be) the number of Warrant Shares then exercisable under this
Warrant, be exercisable for the kind and number of shares of stock or other securities or assets of the Company or of the successor
Person resulting from such transaction to which the Holder would have been entitled upon such reorganization, reclassification,
consolidation, merger, sale or similar transaction if the Holder had exercised this Warrant in full immediately prior to the time
of such reorganization, reclassification, consolidation, merger, sale or similar transaction and acquired the applicable number
of Warrant Shares then issuable hereunder as a result of such exercise (without taking into account any limitations or restrictions
on the exercisability of this Warrant); and, in such case, appropriate adjustment (in form and substance satisfactory to the Holder)
shall be made with respect to the Holder’s rights under this Warrant to insure that the provisions of this Section 5
hereof shall thereafter be applicable, as nearly as possible, to this Warrant in relation to any shares of stock, securities
or assets thereafter acquirable upon exercise of this Warrant (including, in the case of any consolidation, merger, sale or similar
transaction in which the successor or purchasing Person is other than the Company, an immediate adjustment in the Exercise Price
to the value per share for the Common Stock reflected by the terms of such consolidation, merger, sale or similar transaction,
and a corresponding immediate adjustment to the number of Warrant Shares acquirable upon exercise of this Warrant without regard
to any limitations or restrictions on exercise, if the value so reflected is less than the Exercise Price in effect immediately
prior to such consolidation, merger, sale or similar transaction). The provisions of this Section 5(e) shall similarly
apply to successive reorganizations, reclassifications, consolidations, mergers, sales or similar transactions. The Company shall
not effect any such reorganization, reclassification, consolidation, merger, sale or similar transaction unless, prior to the
consummation thereof, the successor Person (if other than the Company) resulting from such reorganization, reclassification, consolidation,
merger, sale or similar transaction, shall assume, by written instrument substantially similar in form and substance to this Warrant
and satisfactory to the Holder, the obligation to deliver to the Holder such shares of stock, securities or assets which, in accordance
with the foregoing provisions, such Holder shall be entitled to receive upon exercise of this Warrant. Notwithstanding anything
to the contrary contained herein, with respect to any corporate event or other transaction contemplated by the provisions of this
Section 5(e), the Holder shall have the right to elect prior to the consummation of such event or transaction, to give
effect to the exercise rights contained in Section 2 instead of giving effect to the provisions contained in this Section
5(e) with respect to this Warrant.

 

(g) Certain
Events. If any event of the type contemplated by the provisions of this Section 5 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) occurs, then the Board shall make an appropriate adjustment in the Exercise Price and the number of Warrant
Shares issuable upon exercise of this Warrant so as to protect the rights of the Holder in a manner consistent with the provisions
of this Section 5; provided, that no such adjustment pursuant to this Section 5(g) shall increase the Exercise Price
or decrease the number of Warrant Shares issuable as otherwise determined pursuant to this Section 5.

 

    13

     

    

 

(h) Certificate
as to Adjustment.

 

(i) As
promptly as reasonably practicable following any adjustment of the Exercise Price pursuant to the provisions of this Section
5, but in any event not later than five (5) Business Days thereafter, the Company shall furnish to the Holder a certificate
of an executive officer setting forth in reasonable detail such adjustment and the facts upon which it is based and certifying
the calculation thereof.

 

(ii) As
promptly as reasonably practicable following the receipt by the Company of a written request by the Holder, but in any event not
later than five (5) Business Days thereafter, the Company shall furnish to the Holder a certificate of an executive officer certifying
the Exercise Price then in effect and the number of Warrant Shares or the amount, if any, of other shares of stock, securities
or assets then issuable upon exercise of the Warrant.

 

(i) Notices.
In the event:

 

(i) that
the Company shall take a record of the holders of its Common Stock (or other capital stock or securities at the time issuable
upon exercise of the Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, to
vote at a meeting (or by written consent), to receive any right to subscribe for or purchase any shares of capital stock of any
class or any other securities, or to receive any other security; or

 

(ii) of
any capital reorganization of the Company, any reclassification of the Common Stock of the Company, any consolidation or merger
of the Company with or into another Person, or sale of all or substantially all of the Company’s assets to another Person;
or

 

(iii) of
the voluntary or involuntary dissolution, liquidation or winding-up of the Company;

 

then,
and in each such case, the Company shall send or cause to be sent to the Holder at least ten (10) Business Days prior to the applicable
record date or the applicable expected effective date, as the case may be, for the event, a written notice specifying, as the
case may be, (A) the record date for such dividend, distribution, meeting or consent or other right or action, and a description
of such dividend, distribution or other right or action to be taken at such meeting or by written consent, or (B) the effective
date on which such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up is proposed
to take place, and the date, if any is to be fixed, as of which the books of the Company shall close or a record shall be taken
with respect to which the holders of record of Common Stock (or such other capital stock or securities at the time issuable upon
exercise of the Warrant) shall be entitled to exchange their shares of Common Stock (or such other capital stock or securities)
for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding-up, and the amount per share and character of such exchange applicable to the Warrant and the Warrant Shares.

 

6. Purchase
Rights. In addition to any adjustments pursuant to Section 5 above, if at any time the Company grants, issues or sells
any shares of Common Stock, Options, Convertible Securities or rights to purchase stock, warrants, securities or other property
pro rata to the record holders of Common Stock (the “Purchase Rights”), then the Holder shall be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder would have acquired
if the Holder had held the number of Warrant Shares acquirable upon complete exercise of this Warrant 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 Common Stock are to be determined for the grant, issue or sale of such Purchase Rights. Anything
herein to the contrary notwithstanding, the Holder shall not be entitled to the Purchase Rights granted herein with respect to
any Excluded Issuance.

 

    14

     

    

 

7. Preemptive
Rights.

 

(a)
Preemptive Right on New Securities. From and after the date hereof until the earlier of the expiration of the Exercise
Period, the Company will not issue or sell any Common Stock, Options or Convertible Securities, except in an Excluded Issuance,
without first complying with this Section 7. The Company hereby grants to the Holder the preemptive right to purchase its
pro rata share of any New Securities that the Company may, from time to time, propose to sell or issue. A Holder’s “pro
rata share” for purposes of this Section 7 is the number of shares of Common Stock held by the Holder or into which
the Holder’s outstanding Warrants are exercisable, in each case, as of the date the Company delivers the notice to the Holder
contemplated by Section 7(b) divided by the number of outstanding shares of Common Stock Deemed Outstanding as of the date
the Company delivers the notice to the Holder contemplated by Section 7(b).

 

(b)
Notice to Holder. Except in connection with an Excluded Issuance, if the Company proposes to issue or sell Common Stock,
Options or Convertible Securities, then it will give the Holder written notice of its intention, describing the type of Common
Stock, Options or Convertible Securities and the price and terms upon which the Company proposes to issue or sell the Common Stock,
Options or Convertible Securities. The Holder will have fifteen (15) Business Days from the date of receipt of any such notice
to agree to purchase up to its pro rata share of the Common Stock, Options or Convertible Securities for the price and upon the
terms specified in the notice from the Company described above by giving written notice to the Company stating the quantity of
Common Stock, Options or Convertible Securities agreed to be purchased.

 

(c)
Alternate Issuance. Notwithstanding the foregoing, if the Board determines in good faith that compliance with the time
period described in Section 7(b) would not be in the best interests of the Company, then, in lieu of offering any Common
Stock, Options or Convertible Securities to the Holder at the time such Common Stock, Options or Convertible Securities are otherwise
being issued or sold to the Holder, the Company may comply with the provisions of this Section 7 by making an offer to
sell to the Holder its pro rata share of such Common Stock, Options or Convertible Securities (calculated before giving effect
to the issuance of such Common Stock, Options or Convertible Securities) promptly, and in no event later than thirty days, after
such issuance or sale is consummated; provided, that the Company may not consummate a Change of Control prior to complying with
this section.

 

    15

     

    

 

8. Transfer
of Warrant. This Warrant and all rights hereunder are transferable, in whole or in part, by the Holder without charge to the
Holder, upon surrender of this Warrant to the Company at its then principal executive offices with a properly completed and duly
executed Assignment in the form attached hereto as Exhibit B, together with funds sufficient to pay any transfer taxes described
in Section 4(f)(v) in connection with the making of such transfer. Upon such compliance, surrender and delivery and, if
required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees
and in the denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing
the portion of this Warrant, if any, not so assigned and this Warrant shall promptly be cancelled.

 

9. Holder
Not Deemed a Stockholder; Limitations on Liability. Except as otherwise specifically provided herein (including Section
5(c)(viii)), prior to the issuance to the Holder of the Warrant Shares to which the Holder is then entitled to receive upon
the due exercise of this Warrant, the Holder shall not be entitled to vote or receive dividends or be deemed the holder of shares
of capital stock of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the
Holder, as such, 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. 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 9, 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.

 

10. Replacement
on Loss; Division and Combination.

 

(a) Replacement
of Warrant on Loss. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation
of this Warrant and upon delivery of an indemnity reasonably satisfactory to it (it being understood that a written indemnification
agreement or affidavit of loss of the Holder shall be a sufficient indemnity) and, in case of mutilation, upon surrender of such
Warrant for cancellation to the Company, the Company at its own expense shall execute and deliver to the Holder, in lieu hereof,
a new Warrant of like tenor and exercisable for an equivalent number of Warrant Shares as the Warrant so lost, stolen, mutilated
or destroyed; provided, that, in the case of mutilation, no indemnity shall be required if this Warrant in identifiable form is
surrendered to the Company for cancellation.

 

(b) Division
and Combination of Warrant. Subject to compliance with the applicable provisions of this Warrant as to any transfer or other
assignment which may be involved in such division or combination, this Warrant may be divided or, following any such division
of this Warrant, subsequently combined with other Warrants, upon the surrender of this Warrant or Warrants to the Company at its
then principal executive offices, together with a written notice specifying the names and denominations in which new Warrants
are to be issued, signed by the respective Holders or their agents or attorneys. Subject to compliance with the applicable provisions
of this Warrant as to any transfer or assignment which may be involved in such division or combination, the Company shall at its
own expense execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants so surrendered in accordance
with such notice. Such new Warrant or Warrants shall be of like tenor to the surrendered Warrant or Warrants and shall be exercisable
in the aggregate for an equivalent number of Warrant Shares as the Warrant or Warrants so surrendered in accordance with such
notice.

 

    16

     

    

 

11. No
Impairment. The Company shall not, by amendment of its Certificate of Incorporation or Bylaws, or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek
to avoid the observance or performance of any of the terms to be observed or performed by it hereunder, but shall at all times
in good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may reasonably
be requested by the Holder in order to protect the exercise rights of the Holder against dilution or other impairment, consistent
with the tenor and purpose of this Warrant.

 

12. Compliance
with the Securities Act.

 

(a) Agreement
to Comply with the Securities Act; Legend. The Holder, by acceptance of this Warrant, agrees to comply in all respects with
the provisions of this Section 12 and the restrictive legend requirements set forth on the face of this Warrant and further
agrees that such Holder shall not offer, sell or otherwise dispose of this Warrant or any Warrant Shares to be issued upon exercise
hereof except under circumstances that will not result in a violation of the Securities Act of 1933, as amended (the “Securities
Act”). This Warrant and all Warrant Shares issued upon exercise of this Warrant (unless registered under the Securities
Act) shall be stamped or imprinted with a legend in substantially the following form:

 

“THIS
WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD,
PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SHARES IS EFFECTIVE
UNDER THE ACT AND IS QUALIFIED UNDER APPLICABLE STATE AND FOREIGN LAW OR (II) THE TRANSACTION IS EXEMPT FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS UNDER THE ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW AND,
IF THE CORPORATION REQUESTS, AN OPINION SATISFACTORY TO THE CORPORATION TO SUCH EFFECT HAS BEEN RENDERED BY COUNSEL.”

 

    17

     

    

 

(b) Representations
of the Holder. In connection with the issuance of this Warrant, the Holder specifically represents, as of the date hereof,
to the Company by acceptance of this Warrant as follows:

 

(i) The
Holder is an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act. The
Holder is acquiring this Warrant and the Warrant Shares to be issued upon exercise hereof for investment for its own account and
not with a view towards, or for resale in connection with, the public sale or distribution of this Warrant or the Warrant Shares,
except pursuant to sales registered or exempted under the Securities Act.

 

(ii) The
Holder understands and acknowledges that this Warrant and the Warrant Shares to be issued upon exercise hereof are “restricted
securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and that, under such laws and applicable regulations, such securities may be resold without registration
under the Securities Act only in certain limited circumstances. In addition, the Holder represents that it is familiar with Rule
144 under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities
Act.

 

(iii) The
Holder acknowledges that it can bear the economic and financial risk of its investment for an indefinite period, and has such
knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment
in the Warrant and the Warrant Shares. The Holder has had an opportunity to ask questions and receive answers from the Company
regarding the terms and conditions of the offering of the Warrant and the business, properties, prospects and financial condition
of the Company.

 

13. Representations
and Warranties of the Company. The Company hereby represents and warrants to the Holder that (i) it has the corporate power
and authority to execute this Warrant and consummate the transactions contemplated by this Warrant, (ii) there are no statutory
or contractual stockholders’ preemptive rights or rights of refusal with respect to the issuance of any Warrants and (iii)
the execution and delivery by the Company of this Warrant and the issuance of the Common Stock upon exercise of any Warrant do
not and shall not (A) conflict with or result in a breach of the terms, conditions or provisions of, (B) constitute a default
under, (C) result in the creation of any lien, security interest, charge or encumbrance upon the Company’s capital stock
or assets pursuant to, (D) result in a violation of, or (E) require any authorization, consent, approval, exemption or other action
by or notice or declaration to, or filing with, any court or administrative or governmental body or agency pursuant to, the Company’s
certificate of incorporation or bylaws or any law in effect as of the date hereof to which the Company is subject, or any agreement,
instrument, order, judgment or decree to which the Company is subject as of the date hereof, except for any such authorization,
consent, approval, notice or exemption required under applicable securities laws.

 

14. Warrant
Register. The Company shall keep and properly maintain at its principal executive offices books for the registration of the
Warrant and any transfers thereof. The Company may deem and treat the Person in whose name the Warrant is registered on such register
as the Holder thereof for all purposes, and the Company shall not be affected by any notice to the contrary, except any assignment,
division, combination or other transfer of the Warrant effected in accordance with the provisions of this Warrant.

 

    18

     

    

 

15. Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be
deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee
if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF
document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day
if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered
mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the addresses indicated
below (or at such other address for a party as shall be specified in a notice given in accordance with this Section 15).

 

	If
        to the Company:	EVO
        Transportation & Energy Services, Inc

        8285
        West Lake Pleasant Parkway, Peoria, AZ, USA, 85382

        Facsimile:       623-777-1408

        E-mail:
        smays@evotransinc.com

        Attention:
        Shirley Mays, General Counsel

         

	If
    to the Holder:	Antara
        Capital LP

        500
        Fifth Avenue, Suite 2320

        New
        York, New York 10110

         

	with
    a copy to:	Milbank
        LLP

        2029
        Century Park East, 33rd Floor

        Los
        Angeles, CA 90067

        Attention:
        Adam Moses

        E-mail:
amoses@milbank.com

 

16. Cumulative
Remedies. Except to the extent expressly provided in Section 8 to the contrary, the rights and remedies provided in
this Warrant are cumulative and are not exclusive of, and are in addition to and not in substitution for, any other rights or
remedies available at law, in equity or otherwise.

 

17. Equitable
Relief. Each of the Company and the Holder acknowledges that a breach or threatened breach by such party of any of its obligations
under this Warrant would give rise to irreparable harm to the other party hereto for which monetary damages would not be an adequate
remedy and hereby agrees that in the event of a breach or a threatened breach by such party of any such obligations, the other
party hereto shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach,
be entitled to equitable relief, including a restraining order, an injunction, specific performance and any other relief that
may be available from a court of competent jurisdiction.

 

18. Entire
Agreement. This Warrant constitutes the sole and entire agreement of the parties to this Warrant with respect to the subject
matter contained herein, and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with
respect to such subject matter.

 

    19

     

    

 

19. Successor
and Assigns. This Warrant and the rights evidenced hereby shall be binding upon and shall inure to the benefit of the parties
hereto and the successors of the Company and the successors and permitted assigns of the Holder. Such successors and/or permitted
assigns of the Holder shall be deemed to be a Holder for all purposes hereunder.

 

20. No
Third-Party Beneficiaries. This Warrant is for the sole benefit of the Company and the Holder and their respective successors
and, in the case of the Holder, permitted assigns and nothing herein, express or implied, is intended to or shall confer upon
any other Person any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Warrant.

 

21. Headings.
The headings in this Warrant are for reference only and shall not affect the interpretation of this Warrant.

 

22. Amendment
and Modification; Waiver. Except as otherwise provided herein, this Warrant may only be amended, modified or supplemented
by an agreement in writing signed by each party hereto. No waiver by the Company or the Holder of any of the provisions hereof
shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall operate
or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether
of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising,
any rights, remedy, power or privilege arising from this Warrant shall operate or be construed as a waiver thereof; nor shall
any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof
or the exercise of any other right, remedy, power or privilege.

 

23. Severability.
If any term or provision of this Warrant is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Warrant or invalidate or render unenforceable such term
or provision in any other jurisdiction.

 

24. Governing
Law. This Warrant shall be governed by and construed in accordance with the internal laws of the State of New York without
giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction)
that would cause the application of laws of any jurisdiction other than those of the State of New York.

 

25. Submission
to Jurisdiction. Any legal suit, action or proceeding arising out of or based upon this Warrant or the transactions contemplated
hereby may be instituted in the federal courts of the United States of America or the courts of the State of New York in each
case located in the city of New York and County of New York, and each party irrevocably submits to the exclusive jurisdiction
of such courts in any such suit, action or proceeding. Service of process, summons, notice or other document by certified or registered
mail to such party’s address set forth herein shall be effective service of process for any suit, action or other proceeding
brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit,
action or any proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that any such
suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

    20

     

    

 

26. Waiver
of Jury Trial. Each party acknowledges and agrees that any controversy which may arise under this Warrant is likely to involve
complicated and difficult issues and, therefore, each such party irrevocably and unconditionally waives any right it may have
to a trial by jury in respect of any legal action arising out of or relating to this Warrant or the transactions contemplated
hereby.

 

27. Counterparts.
This Warrant may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed
to be one and the same agreement. A signed copy of this Warrant delivered by facsimile, e-mail or other means of electronic transmission
shall be deemed to have the same legal effect as delivery of an original signed copy of this Warrant.

 

28. No
Strict Construction. This Warrant shall be construed without regard to any presumption or rule requiring construction or interpretation
against the party drafting an instrument or causing any instrument to be drafted.

 

29. Investment
Unit. The parties hereto agree (i) to treat that certain Forbearance Agreement and Incremental Amendment to Financing Agreement,
dated as of the date hereof, by and among the Company, Antara Capital Master Fund LP (“Antara”), Cortland Capital
Market Services LLC, as administrative agent and collateral agent, and other entities from time to time party thereto (the “Incremental
Loan”) and this Warrant as having been issued as an “investment unit” within the meaning of Section 1273(c)(2)
of the U.S. Internal Revenue Code of 1986, as amended as of the date hereof (the “Code”), (ii) solely for purposes
of Section 1273(c)(2) of the Code, to treat the portion of the amount advanced under the Incremental Loan on the date hereof that
is paid for this Warrant as equal to the amount determined by Antara and, correspondingly, the Incremental Loan as having been
issued with additional original issue discount for U.S. federal income tax purposes consistent with such allocation, and (iii)
to not take any tax position inconsistent with such tax characterization. Antara shall notify the Company of the amount allocated
to this Warrant pursuant to clause (ii) hereof within 60 days of the date hereof.

 

[SIGNATURE
PAGE FOLLOWS]

 

    21

     

    

 

IN
WITNESS WHEREOF, the Company has duly executed this Warrant on the date first written above.

 

	 	EVO
    TRANSPORTATION & ENERGY SERVICES, INC.
	 	 
	 	By:	 /s/ Thomas J. Abood                
	 	Name: 	Thomas J. Abood
	 	Title: 	Chief Executive Officer

 

	Accepted
    and agreed,	 
	 	 
	Antara Capital Master Fund LP	 
	 	 
	By: 	Antara Capital LP	 
	not in its individual corporate capacity,	 
	but solely as Investment Advisor and agent	 
	 	 
	By: 	Antara Capital GP LLC,	 
	 	its general partner	 
	 	 
	By: 	/s/ Himanshu Galati	 
	Name:  	Himanshu Galati	 
	Title: 	Managing Member	 

 

[Signature
Page to Warrant]

 

     

     

    

 

EXHIBIT
A

 

EXERCISE
FORM

 

(To
be executed upon exercise of Warrant(s))

 

The
undersigned is the Holder of the attached Warrant (the “Warrant”) dated February 27, 2020, issued by EVO Transportation
& Energy Services, Inc., a Delaware corporation (the “Company”). Capitalized terms not otherwise defined
in this Exercise Form shall have the meanings ascribed to such terms in the Warrant.

 

The
undersigned hereby irrevocably elects to exercise the Warrant to purchase [●] shares of Common Stock for a purchase price
of $2.50 per share.

 

If
said number of Warrant Shares shall not be all the Warrant Shares issuable upon exercise of the Warrant, the undersigned requests
that a new Warrant representing the balance of such Warrant shall be issued in the name of the undersigned Holder and delivered
to the address of the Holder set forth in Section 12 of the Warrant.

 

The
Holder hereby instructs the Company to deliver the shares to the following:

 

[details
of account(s), names(s) and address(es) of any person(s) into whose name the shares is to be registered and/or any bank, broker
or agent to whom documents evidencing the shares are to be delivered]

 

	Dated: __________________	 
	 	 
	Antara Capital Master Fund LP	 
	 	 	 
	By:	Antara Capital LP	 
	not in its individual corporate
    capacity,	 
	but solely as Investment Advisor
    and agent	 
	 	 	 
	By:	Antara Capital GP LLC,                   	 
	 	its general partner	 
	 	 	 
	By:	 	 
	Name: 	 	 
	Title:	 	 

 

     

     

    

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

FOR
VALUE RECEIVED, the undersigned registered owner of the attached warrant (the “Warrant”) dated February 27,
2020, issued by EVO Transportation & Energy Services, Inc., a Delaware corporation (the “Company”), hereby
sells, assigns and transfers unto the assignee named below (the “Assignee”) all of the rights of the undersigned
under the Warrant, with respect to the number of shares of Common Stock set forth below:

 

	Name of Assignee	 	Address	 	No. of Shares
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

and
does hereby irrevocably constitute and appoint ____________________ Attorney to make such transfer on the books of _____________
maintained for the purpose, with full power of substitution in the premises.

 

The
undersigned also represents that, by assignment hereof, the Assignee acknowledges that this Warrant and the shares of stock to
be issued upon exercise hereof or conversion thereof are being acquired for investment and that the Assignee will not offer, sell
or otherwise dispose of this Warrant or any shares of stock to be issued upon exercise hereof or conversion thereof except under
circumstances which will not result in a violation of applicable securities laws. Further, the Assignee has acknowledged that
upon exercise of this Warrant, the Assignee shall, if requested by the Company, confirm in writing, in a form satisfactory to
the Company, that the shares of stock so purchased are being acquired for investment and not with a view toward distribution or
resale.

 

DATED:
_____________________

 

	 	Antara Capital Master Fund LP
	 	 
	 	By: Antara Capital LP
	 	not in its individual corporate
    capacity,
	 	but solely as Investment Advisor
    and agent
	 	 	 
	 	By:	Antara Capital GP LLC,
	 	 	its general partner
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:

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