Document:

Exhibit 10.7

 

NEITHER THIS SECURITY NOR THE SECURITIES
FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK PURCHASE WARRANT

 

REIGN
SAPPHIRE CORPORATION

 

	Warrant Shares: ___________	Issuance Date:  November 10, 2016

  

Warrant No: ___________

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _____________________,
or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after the six month anniversary of the date hereof (the “Initial Exercise
Date”) and on or prior to the close of business on the five (5) year anniversary of the Initial Trading Date (the “Termination
Date”) but not thereafter, to subscribe for and purchase from REIGN SAPPHIRE CORPORATION, a Delaware corporation
(the “Company”), up to ______________ shares (as subject to adjustment hereunder, the “Warrant
Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise
Price, as defined in Section 2(b). 

 

Section 1.          Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase
Agreement (the “Purchase Agreement”), dated November 10, 2016, among the Company and the purchasers signatory
thereto and the Note issued to the Holder contemporaneously with this Warrant.

 

     

     

    

 

Section 2.          
Exercise.

 

a)         Exercise of the
purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise
Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may
designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of
a duly executed facsimile copy of the Notice of Exercise Form annexed hereto. Within two (2) Trading Days following the date of
exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice
of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified
in Section 2(c) below is specified in the applicable Notice of Exercise. Notwithstanding anything herein to the contrary (although
the Holder may surrender the Warrant to, and receive a replacement Warrant from, the Company), the Holder shall not be required
to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder
and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation
within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant
resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering
the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.
The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases.
The Company shall deliver any objection to any Notice of Exercise Form within one (1) Trading Day of delivery of such notice. The
Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph,
following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder
at any given time may be less than the amount stated on the face hereof.

 

b)         Exercise Price.
The initial exercise price per share of the Common Stock under this Warrant shall be $0.30, subject to adjustment hereunder
(the “Exercise Price”).

 

c)         Cashless Exercise.
If at any time after the Initial Exercise Date, there is no effective Registration Statement registering, or no current prospectus
available for the resale of the Warrant Shares by the Holder, then this Warrant may also be exercised at the Holder’s election,
in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive
a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = the
VWAP on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless
exercise,” as set forth in the applicable Notice of Exercise;

 

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

 

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

 

Notwithstanding anything
herein to the contrary, on the Termination Date, unless the Holder notifies the Company otherwise, if there is no effective Registration
Statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant
shall be automatically exercised via cashless exercise pursuant to this Section 2(c).

 

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d)         Mechanics
of Exercise.

 

i.            Delivery
of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be transmitted by the Transfer Agent to the
Holder by crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit or Withdrawal
at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an
effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder
or (B) this Warrant is being exercised via cashless exercise and Rule 144 is available, and otherwise by physical delivery to the
address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the latest of (A) the
delivery to the Company of the Notice of Exercise, (B) surrender of this Warrant (if required) and (C) payment of the aggregate
Exercise Price as set forth above (including by cashless exercise, if permitted) (such date, the “Warrant Share Delivery
Date”). The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named
therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been
exercised, with payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to
be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of such shares, having been paid. The Company
understands that a delay in the delivery of the Warrant Shares after the Warrant Share Delivery Date could result in economic loss
to the Holder. As compensation to the Holder for such loss, the Company agrees to pay (as liquidated damages and not as a penalty)
to the Holder for late issuance of Warrant Shares upon exercise of this Warrant the proportionate amount of $10 per Trading Day
(increasing to $20 per Trading Day after the fifth (5th) Trading Day) after the Warrant Share Delivery Date for each
$1,000 of Exercise Price of Warrant Shares for which this Warrant is exercised which are not timely delivered. The Company shall
pay any payments incurred under this Section in immediately available funds upon demand. Furthermore, in addition to any other
remedies which may be available to the Holder, in the event that the Company fails for any reason to effect delivery of the Warrant
Shares by the Warrant Share Delivery Date, the Holder may revoke all or part of the relevant Warrant exercise by delivery of a
notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective positions
immediately prior to the exercise of the relevant portion of this Warrant, except that the liquidated damages described above shall
be payable through the date notice of revocation or rescission is given to the Company.

 

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

 

iii.         Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing
the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right, at any
time prior to issuance of such Warrant Shares, to rescind such exercise.

 

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

 

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

 

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

 

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

 

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

 

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Section 3.          Certain
Adjustments.

 

a)         Stock Dividends
and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution
or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common
Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this
Warrant or pursuant to any of the other Transaction Documents), (ii) subdivides outstanding shares of Common Stock into a larger
number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number
of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in
each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock
(excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number
of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant
shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment
made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders
entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of
a subdivision, combination or re-classification.

 

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

 

c)         Pro Rata Distributions.
If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common Stock (and not to the
Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase
any security other than the Common Stock (which shall be subject to Section 3(c)), then in each such case the Exercise Price shall
be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders
entitled to receive such distribution by a fraction of which the denominator shall be the VWAP determined as of the record date
mentioned above, and of which the numerator shall be such VWAP on such record date less the then per share fair market value at
such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of
the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments shall be described in a
statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such subscription rights
applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become
effective immediately after the record date mentioned above.

 

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

 

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e)         Adjustment Upon
Issuance of Shares of Common Stock. If and whenever on or after the date hereof, the Company issues or sells, or in accordance
with this Section 3(e) is deemed to have issued or sold, any shares of Common Stock (including the issuance or sale of shares of
Common Stock owned or held by or for the account of the Company, but excluding any Exempt Issuance issued or sold or deemed to
have been issued or sold) for a consideration per share (the “New Issuance Price”) less than a price equal to
the Exercise Price in effect immediately prior to such issue or sale or deemed issuance or sale (such Exercise Price then in effect
is referred to as the “Applicable Price”) (the foregoing a “Dilutive Issuance”), then immediately
after such Dilutive Issuance, the Exercise Price then in effect shall be reduced to the New Issuance Price except that after the
later of (i) eighteen (18) months after the Issuance Date, or (ii) the date upon which the Note issued to the Holder pursuant to
the Purchase Agreement is fully paid, the minimum adjusted Exercise Price shall not be less than $0.15 per Warrant Share, subject
to equitable adjustment and other adjustments pursuant to this Warrant. For all purposes of the foregoing (including, without limitation,
determining the adjusted Exercise Price and consideration per share under this Section 3(e)), the following shall be applicable:

 

i.            Issuance
of Options. If the Company in any manner grants or sells any Options (other than Options that qualify as Exempt Issuances)
and the lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion,
exercise or exchange of any Convertible Securities issuable upon exercise of any such Option is less than the Applicable Price,
then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of
the granting or sale of such Option for such price per share. For purposes of this Section 3(e)(i), the “lowest price per
share for which one share of Common Stock is issuable upon the exercise of any such Options or upon conversion, exercise or exchange
of any Convertible Securities issuable upon exercise of any such Option” shall be equal to (1) the lower of (x) the sum of
the lowest amounts of consideration (if any) received or receivable by the Company with respect to any one share of Common Stock
upon the granting or sale of such Option, upon exercise of such Option and upon conversion, exercise or exchange of any Convertible
Security issuable upon exercise of such Option and (y) the lowest exercise price set forth in such Option for which one share of
Common Stock is issuable upon the exercise of any such Options or upon conversion, exercise or exchange of any Convertible Securities
issuable upon exercise of any such Option minus (2) the sum of all amounts paid or payable to the holder of such Option (or any
other Person) upon the granting or sale of such Option, upon exercise of such Option and upon conversion, exercise or exchange
of any Convertible Security issuable upon exercise of such Option plus the value of any other consideration received or receivable
by, or benefit conferred on, the holder of such Option (or any other Person). Except as contemplated below, no further adjustment
of the Exercise Price shall be made upon the actual issuance of such shares of Common Stock or of such Convertible Securities upon
the exercise of such Options or upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of
such Convertible Securities.

 

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ii.         Issuance
of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities (other than Convertible
Securities that qualify as Exempt Issuances) and the lowest price per share for which one share of Common Stock is issuable upon
the conversion, exercise or exchange thereof is less than the Applicable Price, then such share of Common Stock shall be deemed
to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities
for such price per share. For the purposes of this Section 3(e)(ii), the “lowest price per share for which one share of Common
Stock is issuable upon the conversion, exercise or exchange thereof” shall be equal to (1) the lower of (x) the sum of the
lowest amounts of consideration (if any) received or receivable by the Company with respect to one share of Common Stock upon the
issuance or sale of the Convertible Security and upon conversion, exercise or exchange of such Convertible Security and (y) the
lowest conversion price set forth in such Convertible Security for which one share of Common Stock is issuable upon conversion,
exercise or exchange thereof minus (2) the sum of all amounts paid or payable to the holder of such Convertible Security (or any
other Person) upon the issuance or sale of such Convertible Security plus the value of any other consideration received or receivable
by, or benefit conferred on, the holder of such Convertible Security (or any other Person). Except as contemplated below, no further
adjustment of the Exercise Price shall be made upon the actual issuance of such shares of Common Stock upon conversion, exercise
or exchange of such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise
of any Options for which adjustment of this Note has been or is to be made pursuant to other provisions of this Section 3(e), except
as contemplated below, no further adjustment of the Exercise Price shall be made by reason of such issue or sale.

 

iii.         Change
in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any Options, the additional consideration,
if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the rate at which any Convertible
Securities are convertible into or exercisable or exchangeable for shares of Common Stock increases or decreases at any time, the
Exercise Price in effect at the time of such increase or decrease shall be adjusted to the Exercise Price which would have been
in effect at such time had such Options or Convertible Securities provided for such increased or decreased purchase price, additional
consideration or increased or decreased conversion rate, as the case may be, at the time initially granted, issued or sold. For
purposes of this Section 3(e)(iii), if the terms of any Option or Convertible Security that was outstanding as of the date of issuance
of this Note are increased or decreased in the manner described in the immediately preceding sentence, then such Option or Convertible
Security and the shares of Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been
issued as of the date of such increase or decrease. No adjustment pursuant to this Section 3(e) shall be made if such adjustment
would result in an increase of the Exercise Price then in effect.

 

    	 	9	 

     

    

 

(iv)        Calculation
of Consideration Received. If any Option and/or Convertible Security and/or Adjustment Right is issued in connection with the
issuance or sale or deemed issuance or sale of any other securities of the Company (as determined by the Holder, the “Primary
Security”, and such Option and/or Convertible Security and/or Adjustment Right, the “Secondary Securities”),
together comprising one integrated transaction, the consideration per share of Common Stock with respect to such Primary Security
shall be deemed to be equal to the difference of (x) the lowest price per share for which one share of Common Stock was issued
in such integrated transaction (or was deemed to be issued pursuant to Section 3(e)(i) or 3(e)(ii) above, as applicable) solely
with respect to such Primary Security, minus (y) with respect to such Secondary Securities, the sum of (I) the Black Scholes Consideration
Value of each such Option, if any, (II) the fair market value (as determined by the Holder) or the Black Scholes Consideration
Value, as applicable, of such Adjustment Right, if any, and (III) the fair market value (as determined by the Holder) of such Convertible
Security, if any, in each case, as determined on a per share basis in accordance with this Section 3(e)(iv). If any shares of Common
Stock, Options or Convertible Securities are issued or sold or deemed to have been issued or sold for cash, the consideration received
therefor (for the purpose of determining the consideration paid for such Common Stock, Option or Convertible Security, but not
for the purpose of the calculation of the Black Scholes Consideration Value) will be deemed to be the net amount of consideration
received by the Company therefor. If any shares of Common Stock, Options or Convertible Securities are issued or sold for a consideration
other than cash (for the purpose of determining the consideration paid for such Common Stock, Option or Convertible Security, but
not for the purpose of the calculation of the Black Scholes Consideration Value), the amount of such consideration received by
the Company will be the fair value of such consideration, except where such consideration consists of publicly traded securities,
in which case the amount of consideration received by the Company for such securities will be the arithmetic average of the VWAPs
of such security for each of the five (5) Trading Days immediately preceding the date of receipt. If any shares of Common Stock,
Options or Convertible Securities are issued to the owners of the non-surviving entity in connection with any merger in which the
Company is the surviving entity (for the purpose of determining the consideration paid for such Common Stock, Option or Convertible
Security, but not for the purpose of the calculation of the Black Scholes Consideration Value), the amount of consideration therefor
will be deemed to be the fair value of such portion of the net assets and business of the non-surviving entity as is attributable
to such shares of Common Stock, Options or Convertible Securities, as the case may be. The fair value of any consideration other
than cash or publicly traded securities (for the purpose of determining the consideration paid for such Common Stock, Option or
Convertible Security, but not for the purpose of the calculation of the Black Scholes Consideration Value) will be determined jointly
by the Company and the Holder. If such parties are unable to reach agreement within ten (10) days after the occurrence of an event
requiring valuation (the “Valuation Event”), the fair value of such consideration will be determined within
five (5) Trading Days after the tenth (10th) day following such Valuation Event by an independent, reputable appraiser
jointly selected by the Company and the Holder. The determination of such appraiser shall be final and binding upon all parties
absent manifest error and the fees and expenses of such appraiser shall be borne by the Company.

 

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

 

g)         Notice
to Holder.

 

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

 

    	 	10	 

     

    

 

ii.         Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares
of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer
of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted
into other securities, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of
the affairs of the Company, then, in each case, to the extent that such information constitutes material non-public information
(as determined in good faith by the Company) the Company shall follow the procedure described in Section 13 of the Subscription
Agreement and shall deliver to the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least
20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which
a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to
be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption,
rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or
share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock
of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or
any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in
such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding
the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current
Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such
notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

h)         Increase in
Warrant Shares. In the event the Exercise Price is reduced for any reason, including but not limited to pursuant to Section
3(e) of this Warrant the number of Warrant Shares issuable hereunder shall be increased such that the aggregate Exercise Price
payable hereunder, after taking into account the decrease in the Exercise Price, shall be equal to the aggregate Exercise Price
prior to such adjustment.

 

Section 4.          Transfer
of Warrant.

 

a)         Transferability.
Subject to compliance with any applicable securities laws and the provisions of the Purchase Agreement, this Warrant and all rights
hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this
Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially
in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes
payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver
a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified
in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned,
and this Warrant shall promptly be cancelled. The Warrant, if properly assigned in accordance herewith, may be exercised by a new
holder for the purchase of Warrant Shares without having a new Warrant issued.

 

    	 	11	 

     

    

 

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

 

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

 

Section 5.          Miscellaneous.

 

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

 

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

 

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

 

d)         Authorized Shares.
The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights
under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers
who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares
upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary
to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of
any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares
which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights
represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully
paid and non-assessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other
than taxes in respect of any transfer occurring contemporaneously with such issue). Except and to the extent as waived or consented
to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation
or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate
to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing,
the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately
prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction
thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant. Before taking any action which
would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory
body or bodies having jurisdiction thereof.

 

    	 	12	 

     

    

 

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

 

f)         Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, or unless exercised
in a cashless exercise when Rule 144 is available, and the Holder does not utilize cashless exercise, will have restrictions upon
resale imposed by state and federal securities laws.

 

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

 

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

 

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

 

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

 

    	 	13	 

     

    

 

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

 

l)         Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holders
of not less than a majority of the outstanding Warrants issued pursuant to the Purchase Agreement.

 

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

 

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

 

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

 

(Signature Page Follows)

 

    	 	14	 

     

    

 

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

 

	 	REIGN SAPPHIRE CORPORATION
	 	 	 
	 	By:	 
	 	 	Name:  Joseph Segelman
	 	 	Title:   President

 

    	 	15	 

     

    

  

NOTICE OF EXERCISE

 

		To:	REIGN SAPPHIRE
CORPORATION

 

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

 

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

 

 ̈
in lawful money of the United States; or

 

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

 

(3)         Please
issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is
specified below:

 

 

 

(4)         After
giving effect to this Notice of Exercise, the undersigned will not have exceeded the Beneficial Ownership Limitation.

 

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

 

 

 

 

 

 

 

 

 

 

[SIGNATURE
OF HOLDER]

 

	Name of Investing Entity: 	 

	Signature of Authorized Signatory of Investing Entity: 	 

	Name of Authorized Signatory: 	 

	Title of Authorized Signatory: 	 

	Date: 	 

 

     

     

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

REIGN
SAPPHIRE CORPORATION

 

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

 

_______________________________________________
whose address is

 

_______________________________________________________________.

 

 

_______________________________________________________________

 

Dated: ______________,
_______

 

	Holder’s Signature:	 

 

	Holder’s Address:	 
	 	 
	 	 

 

	Signature Guaranteed:	 	 

 

NOTE: The signature to this Assignment
Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever,
and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing Warrant.Exhibit 10.8

 

REIGN SAPPHIRE CORPORATION

AMENDED AND RESTATED

2015 EQUITY INCENTIVE PLAN

 

SECTION 1. PURPOSE

 

The purpose of the Reign Sapphire Corporation
2015 Equity Incentive Plan is to attract, retain and motivate employees, officers, directors, consultants, agents, advisors and
independent contractors of the Company and its Related Companies by providing them the opportunity to acquire a proprietary interest
in the Company and to link their interests and efforts to the long-term interests of the Company's stockholders.

 

SECTION 2. DEFINITIONS

 

Certain terms used in the Plan have the
meanings set forth in Appendix A.

 

SECTION 3. ADMINISTRATION

 

		3.1	Administration of the Plan

 

The Plan shall be administered by the Board.
All references in the Plan to the "Plan Administrator" shall be to the Board.

 

		3.2	Administration and Interpretation by Plan Administrator

 

(a)          Except
for the terms and conditions explicitly set forth in the Plan, the Plan Administrator shall have full power and exclusive authority,
to the extent permitted by applicable law and subject to such orders or resolutions not inconsistent with the provisions of the
Plan as may from time to time be adopted by the Board to (i) select the Eligible Persons to whom Awards may from time to time
be granted under the Plan; (ii) determine the type or types of Award to be granted to each Participant under the Plan; (iii) determine
the number of shares of Common Stock to be covered by each Award granted under the Plan; (iv) determine the terms and conditions
of any Award granted under the Plan; (v) approve the forms of notice or agreement for use under the Plan; (vi) determine
whether, to what extent and under what circumstances Awards may be settled in cash, shares of Common Stock or other property or
canceled or suspended; (vii) determine whether, to what extent and under what circumstances cash, shares of Common Stock,
other property and other amounts payable with respect to an Award shall be deferred either automatically or at the election of
the Participant; (viii) interpret and administer the Plan and any instrument evidencing an Award or notice or agreement entered
into under the Plan; (ix) establish such rules and regulations as it shall deem appropriate for the proper administration
of the Plan; (x) delegate ministerial duties to such of the Company's employees as it so determines; and (xi) make any
other determination and take any other action that the Plan Administrator deems necessary or desirable for administration of the
Plan.

 

     

     

    

 

(b)          The
effect on the vesting of an Award of a Company-approved leave of absence or a Participant's reduction in hours of employment or
service shall be determined by the Company's chief human resources officer or other person performing that function or, with respect
to directors or executive officers, by the Board, whose determination shall be final.

 

(c)          Decisions
of the Plan Administrator shall be final, conclusive and binding on all persons, including the Company, any Participant, any stockholder
and any Eligible Person. A majority of the members of the Plan Administrator may determine its actions.

 

SECTION 4. SHARES SUBJECT TO THE
PLAN

 

		4.1	Authorized Number of Shares

 

Subject to adjustment from time to time
as provided in Section 14.1, a maximum of 20,000,000 (Twenty Million) shares of Common Stock shall be available for issuance
under the Plan. Shares issued under the Plan shall be drawn from authorized and unissued shares or shares now held or subsequently
acquired by the Company as treasury shares.

 

		4.2	Share Usage

 

(a)          Shares
of Common Stock covered by an Award shall not be counted as used unless and until they are actually issued and delivered to a Participant.
If any Award lapses, expires, terminates or is canceled prior to the issuance of shares thereunder or if shares of Common Stock
are issued under the Plan to a Participant and thereafter are forfeited to or otherwise reacquired by the Company, the shares subject
to such Awards and the forfeited or reacquired shares shall again be available for issuance under the Plan. Any shares of Common
Stock (i) tendered by a Participant or retained by the Company as full or partial payment to the Company for the purchase
price of an Award or to satisfy tax withholding obligations in connection with an Award or (ii) covered by an Award that is
settled in cash or in a manner such that some or all of the shares covered by the Award are not issued shall be available for Awards
under the Plan. The number of shares of Common Stock available for issuance under the Plan shall not be reduced to reflect any
dividends or dividend equivalents that are reinvested into additional shares of Common Stock or credited as additional shares of
Common Stock subject or paid with respect to an Award.

 

(b)          The
Plan Administrator shall also, without limitation, have the authority to grant Awards as an alternative to or as the form of payment
for grants or rights earned or due under other compensation plans or arrangements of the Company.

 

(c)          Notwithstanding
anything in the Plan to the contrary, the Plan Administrator may grant Substitute Awards under the Plan. In the event that a written
agreement between the Company and an Acquired Entity pursuant to which a merger or consolidation is completed is approved by the
Board and that agreement sets forth the terms and conditions of the substitution for or assumption of outstanding awards of the
Acquired Entity, those terms and conditions shall be deemed to be the action of the Plan Administrator without any further action
by the Plan Administrator.

 

     

     

    

 

(d)          Notwithstanding
the foregoing, the maximum number of shares that may be issued upon the exercise of Incentive Stock Options shall equal the aggregate
share number stated in Section 4.1, subject to adjustment as provided in Section 14.1.

 

SECTION 5. ELIGIBILITY

 

An Award may be granted to any employee,
officer or director of the Company or a Related Company whom the Plan Administrator from time to time selects. An Award may also
be granted to any consultant, agent, advisor or independent contractor for bona fide services rendered to the Company or any Related
Company that (a) are not in connection with the offer and sale of the Company's securities in a capital-raising transaction
and (b) do not directly or indirectly promote or maintain a market for the Company's securities.

 

SECTION 6. AWARDS

 

		6.1	Form, Grant and Settlement of Awards

 

The Plan Administrator shall have the authority,
in its sole discretion, to determine the type or types of Awards to be granted under the Plan. Such Awards may be granted either
alone, in addition to or in tandem with any other type of Award. Any Award settlement may be subject to such conditions, restrictions
and contingencies as the Plan Administrator shall determine.

 

		6.2	Evidence of Awards

 

Awards granted under the Plan shall be
evidenced by a written, including an electronic, instrument that shall contain such terms, conditions, limitations and restrictions
as the Plan Administrator shall deem advisable and that are not inconsistent with the Plan.

 

		6.3	Deferrals

 

The Plan Administrator may permit or require
a Participant to defer receipt of the payment of any Award if and to the extent set forth in the notice or agreement evidencing
the Award at the time of grant. If any such deferral election is permitted or required, the Plan Administrator, in its sole discretion,
shall establish rules and procedures for such payment deferrals, which may include the grant of additional Awards or provisions
for the payment or crediting of interest or dividend equivalents, including converting such credits to deferred stock unit equivalents;
provided, however, that the terms of any deferrals under this Section 6.3 shall comply with all applicable law, rules and regulations,
including, without limitation, Section 409A of the Code.

 

     

     

    

 

		6.4	Dividends and Distributions

 

Participants may, if and to the extent
the Plan Administrator so determines and sets for in the notice or agreement evidencing the Award at the time of grant, be credited
with dividends paid with respect to shares underlying an Award or dividend equivalents in a manner determined by the Plan Administrator
in its sole discretion. The Plan Administrator may apply any restrictions to the dividends or dividend equivalents that the Plan
Administrator deems appropriate. The Plan Administrator, in its sole discretion, may determine the form of payment of dividends
or dividend equivalents, including cash, shares of Common Stock, Restricted Stock or Stock Units.

 

SECTION 7. OPTIONS

 

		7.1	Grant of Options

 

The Plan Administrator may grant Options
designated as Incentive Stock Options or Nonqualified Stock Options.

 

		7.2	Option Exercise Price

 

The exercise price for shares purchased
under an Option shall be at least 100% of the Fair Market Value of the Common Stock on the Grant Date as determined by the Board,
but shall not be less than the minimum exercise price required by Section 8.3 with respect to Incentive Stock Options, except
in the case of Substitute Awards.

 

		7.3	Term of Options

 

Subject to earlier termination in accordance
with the terms of the Plan and the instrument evidencing the Option, the maximum term of an Option (the "Option Term")
shall be ten years from the Grant Date. For Incentive Stock Options, the Option Term shall be as specified in Section 8.4.

 

		7.4	Exercise of Options

 

The Plan Administrator shall establish
and set forth in each instrument that evidences an Option the time at which, or the installments in which, the Option shall vest
and become exercisable, any of which provisions may be waived or modified by the Plan Administrator at any time. If not so established
in the instrument evidencing the Option, the Option shall vest and become exercisable according to the following schedule, which
may be waived or modified by the Plan Administrator at any time:

 

	
        Period
        of Participant's Continuous 

Employment or Service With the 

Company or Its Related Companies 

From the Vesting Commencement Date
	 	
        Portion of Total Option That

 Is Vested and Exercisable

	 	 	 
	Annually	 	Equal Installments
	After 3 years	 	100%

 

     

     

    

 

To the extent an Option has vested and
become exercisable, the Option may be exercised in whole or from time to time in part by delivery to the Company of a properly
executed stock option exercise agreement or notice, in a form and in accordance with procedures established by the Plan Administrator,
setting forth the number of shares with respect to which the Option is being exercised, the restrictions imposed on the shares
purchased under such exercise agreement or notice, if any, and such representations and agreements as may be required by the Plan
Administrator, accompanied by payment in full as described in Sections 7.5 and 12. An Option may be exercised only for whole
shares and may not be exercised for less than a reasonable number of shares at any one time, as determined by the Plan Administrator.

 

		7.5	Payment of Exercise Price

 

The exercise price for shares purchased
under an Option shall be paid in full to the Company by delivery of consideration equal to the product of the Option exercise price
and the number of shares purchased. Such consideration must be paid before the Company will issue the shares being purchased and
must be in a form or a combination of forms acceptable to the Plan Administrator for that purchase, which forms may include:

 

(a)          cash;

 

(b)          check
or wire transfer;

 

(c)          having
the Company withhold shares of Common Stock that would otherwise be issued on exercise of the Option that have a Fair Market Value
on the date of exercise of the Option equal to the exercise price of the Option and, if applicable, shares equal to or less than
the withholding required by Section 12 hereof;

 

(d)          tendering
(either actually or, if and as so long as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange
Act, by attestation) shares of Common Stock owned by the Participant that on the day prior to the exercise date have a Fair Market
Value equal to the aggregate exercise price of the shares being purchased under the Option;

 

(e)          if
and so long as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, and to the extent permitted
by law, delivery of a properly executed exercise agreement or notice, together with irrevocable instructions to a brokerage firm
designated or approved by the Company to deliver promptly to the Company the aggregate amount of proceeds to pay the Option exercise
price and any withholding tax obligations that may arise in connection with the exercise, all in accordance with the regulations
of the Federal Reserve Board; or

 

(f)          such
other consideration as the Plan Administrator may permit.

 

     

     

    

 

In addition, to assist a Participant (including
directors and executive officers) in acquiring shares of Common Stock pursuant to an Option granted under the Plan, the Plan Administrator,
in its sole discretion and to the extent permitted by applicable law, may authorize, either at the Grant Date or at any time before
the acquisition of Common Stock pursuant to the Option, (i) the payment by a Participant of the purchase price of the Common
Stock by a promissory note or (ii) the guarantee by the Company of a loan obtained by the Participant from a third party.
Such notes or loans must be full recourse to the extent necessary to avoid adverse accounting charges to the Company's earnings
for financial reporting purposes. Subject to the foregoing, the Plan Administrator shall in its sole discretion specify the terms
of any loans or loan guarantees, including the interest rate and terms of and security for repayment.

 

7.6           Effect
of Termination of Service

 

The Plan Administrator shall establish
and set forth in each instrument that evidences an Option whether the Option shall continue to be exercisable, and the terms and
conditions of such exercise, after a Termination of Service, any of which provisions may be waived or modified by the Plan Administrator
at any time. If not so established in the instrument evidencing the Option, the Option shall be exercisable according to the following
terms and conditions, which may be waived or modified by the Plan Administrator at any time:

 

(a)          Any
portion of an Option that is not vested and exercisable on the date of a Participant's Termination of Service shall expire on such
date.

 

(b)          Any
portion of an Option that is vested and exercisable on the date of a Participant's Termination of Service shall expire on the earliest
to occur of:

 

(i)          if
the Participant's Termination of Service occurs for reasons other than Cause, Retirement, Disability or death, the date that is
three months after such Termination of Service;

 

(ii)         if
the Participant's Termination of Service occurs by reason of Retirement, Disability or death, the one-year anniversary of such
Termination of Service; and

 

(iii)        the
Option Expiration Date.

 

Notwithstanding the foregoing, if a Participant
dies after the Participant's Termination of Service but while an Option is otherwise exercisable, the portion of the Option that
is vested and exercisable on the date of such Termination of Service shall expire upon the earlier to occur of (y) the Option
Expiration Date and (z) the one-year anniversary of the date of death, unless the Plan Administrator determines otherwise.

 

Notwithstanding the foregoing, to the extent
required by applicable law, unless employment or services are terminated for Cause, the right to exercise an Option in the event
of Termination of Service, to the extent that the Participant is otherwise entitled to exercise an Option on the date of Termination
of Service, shall be

 

     

     

    

 

a.           at
least six months from the date of a Participant's Termination of Service if termination was caused by death or Disability; and

 

b.           at
least 30 days from the date of a Participant's Termination of Service if termination was caused by other than death or Disability;

 

c.           but
in no event later than the Option Expiration Date.

 

Also notwithstanding the foregoing, in
case a Participant's Termination of Service occurs for Cause, all Options granted to the Participant shall automatically expire
upon first notification to the Participant of such termination, unless the Plan Administrator determines otherwise. If a Participant's
employment or service relationship with the Company is suspended pending an investigation of whether the Participant shall be terminated
for Cause, all the Participant's rights under any Option shall likewise be suspended during the period of investigation. If any
facts that would constitute termination for Cause are discovered after a Participant's Termination of Service, any Option then
held by the Participant may be immediately terminated by the Plan Administrator, in its sole discretion.

 

(c)          A
Participant's change in status from an employee of the Company or a Related Company to a nonemployee director, consultant, advisor
or independent contractor of the Company or a Related Company or a change in status from a nonemployee director, consultant, advisor
or independent contractor of the Company or a Related Company to an employee of the Company or a Related Company shall not be considered
a Termination of Service for purposes of this Section 7.6.

 

SECTION 8. INCENTIVE STOCK OPTION
LIMITATIONS

 

Notwithstanding any other provisions of
the Plan, the terms and conditions of any Incentive Stock Options shall in addition comply in all respects with Section 422
of the Code or any successor provision, and any applicable regulations thereunder, including, to the extent required thereunder,
the following:

 

		8.1	Dollar Limitation

 

To the extent the aggregate Fair Market
Value (determined as of the Grant Date) of Common Stock with respect to which a Participant's Incentive Stock Options become exercisable
for the first time during any calendar year (under the Plan and all other stock option plans of the Company and its parent and
subsidiary corporations) exceeds $100,000, such portion in excess of $100,000 shall be treated as a Nonqualified Stock Option.
In the event the Participant holds two or more such Options that become exercisable for the first time in the same calendar year,
such limitation shall be applied on the basis of the order in which such Options are granted.

 

     

     

    

 

		8.2	Eligible Employees

 

Individuals who are not employees of the
Company or one of its parent or subsidiary corporations may not be granted Incentive Stock Options.

 

		8.3	Exercise Price

 

The exercise price of an Incentive Stock
Option shall be at least 100% of the Fair Market Value of the Common Stock on the Grant Date and, in the case of an Incentive Stock
Option granted to a Participant who owns more than 10% of the total combined voting power of all classes of the stock of the Company
or of its parent or subsidiary corporations (a "Ten Percent Stockholder"), shall not be less than 110%
of the Fair Market Value of the Common Stock on the Grant Date. The determination of more than 10% ownership shall be made in accordance
with Section 422 of the Code.

 

		8.4	Option Term

 

Subject to earlier termination in accordance
with the terms of the Plan and the instrument evidencing the Option, the Option Term of an Incentive Stock Option shall not exceed
ten years, and in the case of an Incentive Stock Option granted to a Ten Percent Stockholder, shall not exceed five years.

 

		8.5	Exercisability

 

An Option designated as an Incentive Stock
Option shall cease to qualify for favorable tax treatment as an Incentive Stock Option to the extent it is exercised (if permitted
by the terms of the Option) (a) more than three months after the date of a Participant's Termination of Service if termination
was for reasons other than death or Disability, (b) more than one year after the date of a Participant's Termination of Service
if termination was by reason of Disability, or (c) after the Participant has been on leave of absence for more than 90 days,
unless the Participant's reemployment rights are guaranteed by statute or contract.

 

		8.6	Taxation of Incentive Stock Options

 

In order to obtain certain tax benefits
afforded to Incentive Stock Options under Section 422 of the Code, the Participant must hold the shares acquired upon the
exercise of an Incentive Stock Option for two years after the Grant Date and one year after the date of exercise. A Participant
may be subject to the alternative minimum tax at the time of exercise of an Incentive Stock Option. The Participant shall give
the Company prompt notice of any disposition of shares acquired on the exercise of an Incentive Stock Option prior to the expiration
of such holding periods.

 

     

     

    

 

		8.7	Code Definitions

 

For the purposes of this Section 8,
"disability," "parent corporation" and "subsidiary corporation" shall have the meanings attributed
to those terms for purposes of Section 422 of the Code.

 

		8.8	Promissory Notes

 

The amount of any promissory note delivered
pursuant to Section 7.5 in connection with an Incentive Stock Option shall bear interest at a rate specified by the Plan Administrator,
but in no case less than the rate required to avoid imputation of interest (taking into account any exceptions to the imputed interest
rules) for federal income tax purposes.

 

SECTION 9. STOCK APPRECIATION
RIGHTS

 

		9.1	Grant of Stock Appreciation Rights

 

The Plan Administrator may grant Stock
Appreciation Rights to Participants at any time on such terms and conditions as the Plan Administrator shall determine in its sole
discretion. An SAR may be granted in tandem with an Option or alone ("freestanding"). The grant price of
a tandem SAR shall be equal to the exercise price of the related Option. The grant price of a freestanding SAR shall be established
in accordance with procedures for Options set forth in Section 7.2. An SAR may be exercised upon such terms and conditions
and for the term as the Plan Administrator determines in its sole discretion; provided, however, that, subject to earlier termination
in accordance with the terms of the Plan and the instrument evidencing the SAR, the maximum term of a freestanding SAR shall be
ten years, and in the case of a tandem SAR, (a) the term shall not exceed the term of the related Option and (b) the
tandem SAR may be exercised for all or part of the shares subject to the related Option upon the surrender of the right to exercise
the equivalent portion of the related Option, except that the tandem SAR may be exercised only with respect to the shares for which
its related Option is then exercisable.

 

		9.2	Payment of SAR Amount

 

Upon the exercise of an SAR, a Participant
shall be entitled to receive payment in an amount determined by multiplying: (a) the difference between the Fair Market Value
of the Common Stock for the date of exercise over the grant price of the SAR by (b) the number of shares with respect to which
the SAR is exercised. At the discretion of the Plan Administrator as set forth in the instrument evidencing the Award, the payment
upon exercise of an SAR may be in cash, in shares, in some combination thereof or in any other manner approved by the Plan Administrator
in its sole discretion.

 

     

     

    

 

		9.3	Waiver of Restrictions

 

Subject to Section 17.3, the Plan Administrator,
in its sole discretion, may waive any other terms, conditions or restrictions on any SAR under such circumstances and subject to
such terms and conditions as the Plan Administrator shall deem appropriate.

 

SECTION 10. STOCK AWARDS, RESTRICTED
STOCK AND STOCK UNITS

 

		10.1	Grant of Stock Awards, Restricted Stock and Stock Units

 

The Plan Administrator may grant Stock
Awards, Restricted Stock and Stock Units on such terms and conditions and subject to such repurchase or forfeiture restrictions,
if any, which may be based on continuous service with the Company or a Related Company or the achievement of any performance goals,
as the Plan Administrator shall determine in its sole discretion, which terms, conditions and restrictions shall be set forth in
the instrument evidencing the Award.

 

		10.2	Vesting of Restricted Stock and Stock Units

 

Upon the satisfaction of any terms, conditions
and restrictions prescribed with respect to Restricted Stock or Stock Units, or upon a Participant's release from any terms, conditions
and restrictions of Restricted Stock or Stock Units, as determined by the Plan Administrator, and subject to the provisions of
Section 12, (a) the shares of Restricted Stock covered by each Award of Restricted Stock shall become transferable by
the Participant subject to the terms and conditions of the Plan, the instrument evidencing the Award, and applicable securities
laws, and (b) Stock Units shall be paid in shares of Common Stock or, if set forth in the instrument evidencing the Awards,
in cash or a combination of cash and shares of Common Stock. Any fractional shares subject to such Awards shall be paid to the
Participant in cash.

 

		10.3	Waiver of Restrictions

 

Subject to Section 17.3, the Plan
Administrator, in its sole discretion, may waive the repurchase or forfeiture period and any other terms, conditions or restrictions
on any Restricted Stock or Stock Unit under such circumstances and subject to such terms and conditions as the Plan Administrator
shall deem appropriate.

 

SECTION 11. OTHER STOCK OR CASH-BASED
AWARDS

 

Subject to the terms of the Plan and such
other terms and conditions as the Plan Administrator deems appropriate, the Plan Administrator may grant other incentives payable
in cash or in shares of Common Stock under the Plan as it determines.

 

SECTION 12. WITHHOLDING

 

The Company may require the Participant
to pay to the Company the amount of (a) any taxes that the Company is required by applicable federal, state, local or foreign
law to withhold with respect to the grant, vesting or exercise of an Award ("tax withholding obligations")
and (b) any amounts due from the Participant to the Company or to any Related Company ("other obligations").
The Company shall not be required to issue any shares of Common Stock or otherwise settle an Award under the Plan until such tax
withholding obligations and other obligations are satisfied.

 

     

     

    

 

The Plan Administrator may permit or require
a Participant to satisfy all or part of the Participant's tax withholding obligations and other obligations by (a) paying
cash to the Company, (b) having the Company withhold an amount from any cash amounts otherwise due or to become due from the
Company to the Participant, (c) having the Company withhold a number of shares of Common Stock that would otherwise be issued
to the Participant (or become vested in the case of Restricted Stock) having a Fair Market Value equal to the tax withholding obligations
and other obligations, or (d) surrendering a number of shares of Common Stock the Participant already owns having a value
equal to the tax withholding obligations and other obligations. The value of the shares so withheld or tendered may not exceed
the employer's minimum required tax withholding rate.

 

SECTION 13. ASSIGNABILITY

 

No Award or interest in an Award may be
sold, assigned, pledged (as collateral for a loan or as security for the performance of an obligation or for any other purpose)
or transferred by a Participant or made subject to attachment or similar proceedings otherwise than by will or by the applicable
laws of descent and distribution, except to the extent the Participant designates one or more beneficiaries on a Company-approved
form who may exercise the Award or receive payment under the Award after the Participant's death. During a Participant's lifetime,
an Award may be exercised only by the Participant. Notwithstanding the foregoing and to the extent permitted by Section 422
of the Code, the Plan Administrator, in its sole discretion, may permit transfer to a revocable trust or as otherwise permitted
by Rule 701 of the Securities Act, subject to such terms and conditions as the Plan Administrator shall specify.

 

SECTION 14. ADJUSTMENTS

 

		14.1	Adjustment of Shares

 

In the event, at any time or from time
to time, a stock dividend, stock split, spin-off, combination or exchange of shares, recapitalization, merger, consolidation, distribution
to stockholders other than a normal cash dividend, or other change in the Company's corporate or capital structure results in (a) the
outstanding shares of Common Stock, or any securities exchanged therefor or received in their place, being exchanged for a different
number or kind of securities of the Company or any other company or (b) new, different or additional securities of the Company
or any other company being received by the holders of shares of Common Stock, then the Plan Administrator shall make proportional
adjustments in (i) the maximum number and kind of securities available for issuance under the Plan; (ii) the maximum
number and kind of securities issuable as Incentive Stock Options as set forth in Section 4.2(d); and (iii) the
number and kind of securities that are subject to any outstanding Award and the per share price of such securities, without any
change in the aggregate price to be paid therefor. The determination by the Plan Administrator as to the terms of any of the foregoing
adjustments shall be conclusive and binding.

 

     

     

    

 

Notwithstanding the foregoing, the issuance
by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, for cash or property,
or for labor or services rendered, either upon direct sale or upon the exercise of rights or warrants to subscribe therefor, or
upon conversion of shares or obligations of the Company convertible into such shares or other securities, shall not affect, and
no adjustment by reason thereof shall be made with respect to, outstanding Awards. Also notwithstanding the foregoing, a dissolution
or liquidation of the Company or a Company Transaction shall not be governed by this Section 14.1 but shall be governed by
Sections 14.2 and 14.3, respectively.

 

		14.2	Dissolution or Liquidation

 

To the extent not previously exercised
or settled, and unless otherwise determined by the Plan Administrator in its sole discretion, Options, Stock Appreciation Rights
and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company. To the extent a vesting condition,
forfeiture provision or repurchase right applicable to an Award has not been waived by the Plan Administrator, the Award shall
be forfeited immediately prior to the consummation of the dissolution or liquidation.

 

		14.3	Company Transaction

 

14.3.1           Effect
of a Company Transaction

 

Notwithstanding any other provision of
the Plan to the contrary, unless the Plan Administrator shall determine otherwise with respect to a particular Award in the instrument
evidencing the Award or in a written employment, services or other agreement between the Participant and the Company or a Related
Company, in the event of a Company Transaction that is not a Related Party Transaction, all outstanding Awards shall become fully
vested and exercisable or payable, and all applicable deferral and restriction limitations or forfeiture provisions shall lapse,
immediately prior to the Company Transaction, and then terminate upon effectiveness of the Company Transaction, unless such Awards
are assumed or substituted for by the Successor Company. Notwithstanding the foregoing, with respect to outstanding Options or
Stock Appreciation Rights, the Plan Administrator, in its sole discretion, may instead provide that such Awards shall terminate
upon consummation of such Company Transaction and that each such Participant shall receive, in exchange therefor, a cash payment
equal to the amount (if any) by which (a) the Acquisition Price multiplied by the number of shares of Common Stock subject to such
outstanding Options or SARs (either to the extent then vested and exercisable or whether or not then vested and exercisable, as
determined by the Plan Administrator in its sole discretion) exceeds (b) the respective aggregate exercise price for such Options
or grant price for such SARs. If and to the extent the Successor Company assumes or substitutes outstanding Awards, the vesting
and exercisability or payment provisions applicable to such Awards shall remain in full effect and continue with respect to the
Awards or any awards that may be issued in exchange or in substitution for such Awards, and the forfeiture provisions applicable
to Restricted Stock shall not lapse, and all such restrictions shall continue with respect to any shares of the Successor Company
or other consideration that may be issued in exchange or in substitution for such Restricted Stock.

 

     

     

    

 

14.3.2           Assumption
or Substitution

 

For the purposes of this Section 14.3,
an Award shall be considered assumed or substituted for if following the Company Transaction, an option or right confers the right
to purchase or receive, for each share of Common Stock subject to the Award immediately prior to the Company Transaction, the consideration
(whether stock, cash, or other securities or property) received in the Company Transaction by holders of Common Stock for each
share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of the outstanding shares); provided, however, that if such consideration received in the Company
Transaction is not solely common stock of the Successor Company, the Plan Administrator may, with the consent of the Successor
Company, provide for the consideration to be received upon the exercise of the Option, for each share of Common Stock subject thereto,
to be solely common stock of the Successor Company substantially equal in fair market value to the per share consideration received
by holders of Common Stock in the Company Transaction. The determination of such substantial equality of value of consideration
shall be made by the Plan Administrator, and its determination shall be conclusive and binding.

 

		14.4	Further Adjustment of Awards

 

Subject to Sections 14.2 and 14.3,
the Plan Administrator shall have the discretion, exercisable at any time before a sale, merger, consolidation, reorganization,
liquidation, dissolution or change in control of the Company, as defined by the Plan Administrator, to take such further action
as it determines to be necessary or advisable with respect to Awards. Such authorized action may include (but shall not be limited
to) establishing, amending or waiving the type, terms, conditions or duration of, or restrictions on, Awards so as to provide for
earlier, later, extended or additional time for exercise, lifting restrictions and other modifications, and the Plan Administrator
may take such actions with respect to all Participants, to certain categories of Participants or only to individual Participants.
The Plan Administrator may take such action before or after granting Awards to which the action relates and before or after any
public announcement with respect to such sale, merger, consolidation, reorganization, liquidation, dissolution or change in control
that is the reason for such action.

 

		14.5	No Limitations

 

The grant of Awards shall in no way affect
the Company's right to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate,
dissolve, liquidate or sell or transfer all or any part of its business or assets.

 

     

     

    

 

		14.6	Fractional Shares

 

In the event of any adjustment in the number
of shares covered by any Award, each such Award shall cover only the number of full shares resulting from such adjustment.

 

		14.7	Section 409A of the Code

 

Notwithstanding anything in this Plan to
the contrary, (a) any adjustments made pursuant to this Section 14 to Awards that are considered "deferred compensation"
within the meaning of Section 409A of the Code shall be made in compliance with the requirements of Section 409A of the
Code; (b) any adjustments made pursuant to Section 14 to Awards that are not considered "deferred compensation"
subject to Section 409A of the Code shall be made in such a manner as to ensure that after such adjustment the Awards either
(i) continue not to be subject to Section 409A of the Code or (ii) comply with the requirements of Section 409A
of the Code; and (c) in any event, the Plan Administrator shall not have the authority to make any adjustments pursuant to
Section 14 to the extent the existence of such authority would cause an Award that is not intended to be subject to Section 409A
of the Code at the time of grant to be subject thereto.

 

SECTION 15. FIRST REFUSAL RIGHTS

 

		15.1	First Refusal Rights

 

Until the date on which the initial registration
of the Common Stock under Section 12(b) or 12(g) of the Exchange Act first becomes effective, the Company shall have the right
of first refusal with respect to any proposed sale or other disposition by a Participant of any shares of Common Stock issued pursuant
to an Award. Such right of first refusal shall be exercisable in accordance with the terms and conditions established by the Plan
Administrator and set forth in the agreement evidencing the Participant's receipt of the shares.

 

		15.2	General

 

The Company's first refusal rights under
this Section 15 are assignable by the Company at any time.

 

SECTION 16. MARKET STANDOFF

 

In the event of an underwritten public
offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act,
including the Company's initial public offering, no person may sell, make any short sale of, loan, hypothecate, pledge, grant any
option for the purchase of, or otherwise dispose of or transfer for value or otherwise agree to engage in any of the foregoing
transactions with respect to any shares issued pursuant to an Award granted under the Plan without the prior written consent of
the Company or its underwriters. Such limitations shall be in effect for such period of time as may be requested by the Company
or such underwriters; provided, however, that in no event shall such period exceed (a) 180 days after the effective date
of the registration statement for such public offering or (b) such longer period requested by the underwriter as is necessary
to comply with regulatory restrictions on the publication of research reports (including, but not limited to, NYSE Rule 472 or
NASD Conduct Rule 2711). The limitations of this Section 16 shall in all events terminate two years after the effective
date of the Company's initial public offering.

 

     

     

    

 

In the event of any stock split, stock
dividend, recapitalization, combination of shares, exchange of shares or other change affecting the Company's outstanding Common
Stock effected as a class without the Company's receipt of consideration, any new, substituted or additional securities distributed
with respect to the shares issued under the Plan shall be immediately subject to the provisions of this Section 16, to the
same extent the shares issued under the Plan are at such time covered by such provisions.

 

In order to enforce the limitations of
this Section 16, the Company may impose stop-transfer instructions with respect to the purchased shares until the end of the
applicable standoff period.

 

SECTION 17. AMENDMENT AND TERMINATION

 

		17.1	Amendment, Suspension or Termination

 

The Board may amend, suspend or terminate
the Plan or any portion of the Plan at any time and in such respects as it shall deem advisable; provided, however, that, to the
extent required by applicable law, regulation or stock exchange rule, stockholder approval shall be required for any amendment
to the Plan. Subject to Section 17.3, the Board may amend the terms of any outstanding Award, prospectively or retroactively.

 

		17.2	Term of the Plan

 

The Plan shall terminate upon the earlier
of (a) ten years after the adoption of the Plan by the Board and (b) the approval of the Plan by the stockholders.  After
the Plan is terminated, no future Awards may be granted, but Awards previously granted shall remain outstanding in accordance with
their applicable terms and conditions and the Plan's terms and conditions.

 

		17.3	Consent of Participant

 

The amendment, suspension or termination
of the Plan or a portion thereof or the amendment of an outstanding Award shall not, without the Participant's consent, materially
adversely affect any rights under any Award theretofore granted to the Participant under the Plan. Any change or adjustment to
an outstanding Incentive Stock Option shall not, without the consent of the Participant, be made in a manner so as to constitute
a "modification" that would cause such Incentive Stock Option to fail to continue to qualify as an Incentive Stock Option.
Notwithstanding the foregoing, any adjustments made pursuant to Section 14 shall not be subject to these restrictions.

 

     

     

    

 

Notwithstanding any provision contained
in the Plan to the contrary, the Board shall have broad authority to amend the Plan or any outstanding Award without the consent
of a Participant to the extent the Board deems necessary or advisable to (a) comply with, or take into account, changes in applicable
tax laws, securities laws, accounting rules and other applicable law, rules and regulations or (b) to ensure that an Award is not
subject to additional taxes under Section 409A of the Code.

 

SECTION 18. GENERAL

 

		18.1	No Individual Rights

 

No individual or Participant shall have
any claim to be granted any Award under the Plan, and the Company has no obligation for uniformity of treatment of Participants
under the Plan.

 

Furthermore, nothing in the Plan or any
Award granted under the Plan shall be deemed to constitute an employment contract or confer or be deemed to confer on any Participant
any right to continue in the employ of, or to continue any other relationship with, the Company or any Related Company or limit
in any way the right of the Company or any Related Company to terminate a Participant's employment or other relationship at any
time, with or without cause.

 

		18.2	Issuance of Shares

 

Notwithstanding any other provision of
the Plan, the Company shall have no obligation to issue or deliver any shares of Common Stock under the Plan or make any other
distribution of benefits under the Plan unless, in the opinion of the Company's counsel, such issuance, delivery or distribution
would comply with all applicable laws (including, without limitation, the requirements of the Securities Act or the laws of any
state or foreign jurisdiction) and the applicable requirements of any securities exchange or similar entity.

 

The Company shall be under no obligation
to any Participant to register for offering or resale or to qualify for exemption under the Securities Act, or to register or qualify
under the laws of any state or foreign jurisdiction, any shares of Common Stock, security or interest in a security paid or issued
under, or created by, the Plan, or to continue in effect any such registrations or qualifications if made.

 

As a condition to the exercise of an Option
or any other receipt of Common Stock pursuant to an Award under the Plan, the Company may require (a) the Participant to represent
and warrant at the time of any such exercise or receipt that such shares are being purchased or received only for the Participant's
own account and without any present intention to sell or distribute such shares and (b) such other action or agreement by
the Participant as may from time to time be necessary to comply with the federal, state and foreign securities laws. At the option
of the Company, a stop-transfer order against any such shares may be placed on the official stock books and records of the Company,
and a legend indicating that such shares may not be pledged, sold or otherwise transferred, unless an opinion of counsel is provided
(concurred in by counsel for the Company) stating that such transfer is not in violation of any applicable law or regulation, may
be stamped on stock certificates to ensure exemption from registration. The Plan Administrator may also require the Participant
to execute and deliver to the Company a purchase agreement or such other agreement as may be in use by the Company at such time
that describes certain terms and conditions applicable to the shares.

 

     

     

    

 

To the extent the Plan or any instrument
evidencing an Award provides for issuance of stock certificates to reflect the issuance of shares of Common Stock, the issuance
may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the applicable rules of any stock
exchange.

 

		18.3	Indemnification

 

Each person who is or shall have been a
member of the Board shall be indemnified and held harmless by the Company against and from any loss, cost, liability or expense
that may be imposed upon or reasonably incurred by such person in connection with or resulting from any claim, action, suit or
proceeding to which such person may be a party or in which such person may be involved by reason of any action taken or failure
to act under the Plan and against and from any and all amounts paid by such person in settlement thereof, with the Company's approval,
or paid by such person in satisfaction of any judgment in any such claim, action, suit or proceeding against such person; provided,
however, that such person shall give the Company an opportunity, at its own expense, to handle and defend the same before such
person undertakes to handle and defend it on such person's own behalf. Notwithstanding the prior sentence, the indemnification
provisions of this Section 18.3 shall not apply if such loss, cost, liability or expense is a result of such person's own willful
misconduct.

 

The foregoing right of indemnification
shall not be exclusive of any other rights of indemnification to which such person may be entitled under the Company's certificateof
incorporation or bylaws, as a matter of law, or otherwise, or of any power that the Company may have to indemnify or hold harmless.

 

		18.4	No Rights as a Stockholder

 

Unless otherwise provided by the Plan Administrator
or in the instrument evidencing the Award or in a written employment, services or other agreement, no Option, Stock Appreciation
Right or Stock Unit shall entitle the Participant to any cash dividend, voting or other right of a stockholder unless and until
the date of issuance under the Plan of the shares that are the subject of such Award.

 

		18.5	Compliance with Laws and Regulations

 

In interpreting and applying the provisions
of the Plan, any Option granted as an Incentive Stock Option pursuant to the Plan shall, to the extent permitted by law, be construed
as an "incentive stock option" within the meaning of Section 422 of the Code.

 

     

     

    

 

Any Award granted pursuant to the Plan
is intended to comply with the requirements of Section 409A of the Code, including any applicable regulations and guidance
issued thereunder, and including transition guidance, to the extent Section 409A of the Code is applicable thereto and the terms
of the Plan and any Award granted under the Plan shall be interpreted, operated and administered in a manner consistent with this
intention to the extent the Company deems necessary to comply with Section 409A of the Code and any official guidance issued
thereunder. Notwithstanding any other provision in the Plan, the Company, to the extent it deems necessary or advisable in its
sole discretion, reserves the right, but shall not be required, to unilaterally amend or modify the Plan and any Award granted
under the Plan so that the Award qualifies for exemption from or complies with Section 409A of the Code; provided, however,
that the Company makes no representations that the Awards shall be exempt from or comply with Section 409A of the Code and
makes no undertaking to preclude Section 409A of the Code from applying to Awards granted under the Plan. Also notwithstanding
the foregoing, if at the time of a scheduled vesting date for an Award granted under the Plan that is subject to Section 409A
of the Code the Participant is a “specified employee” of the Company within the meaning of that term under Section 409A
of the Code and as determined by the Company, and payment would be treated as a payment made on “separation from service”
within the meaning of that term under Section 409A of the Code, then, if such delayed commencement is otherwise required in
order to avoid a prohibited distribution under Section 409A of the Code, the payment shall be delayed until the date which
is six months after the date of such separation from service or, if earlier, the date of the Participant's death.

 

		18.6	Participants in Other Countries or Jurisdictions

 

Without amending the Plan, the Plan Administrator
may grant Awards to eligible persons who are foreign nationals on such terms and conditions different from those specified in the
Plan, which may, in the judgment of the Plan Administrator, be necessary or desirable to foster and promote achievement of the
purposes of the Plan and shall have the authority to adopt such modifications, procedures, subplans and the like as may be necessary
or desirable to comply with provisions of the laws or regulations of other countries or jurisdictions in which the Company or any
Related Company may operate or have employees to ensure the viability of the benefits from Awards granted to Participants employed
in such countries or jurisdictions, meet the requirements that permit the Plan to operate in a qualified or tax efficient manner,
comply with applicable foreign laws or regulations and meet the objectives of the Plan.

 

		18.7	No Trust or Fund

 

The Plan is intended to constitute an "unfunded"
plan. Nothing contained herein shall require the Company to segregate any monies or other property, or shares of Common Stock,
or to create any trusts, or to make any special deposits for any immediate or deferred amounts payable to any Participant, and
no Participant shall have any rights that are greater than those of a general unsecured creditor of the Company.

 

     

     

    

 

		18.8	Successors

 

All obligations of the Company under the
Plan with respect to Awards shall be binding on any successor to the Company, whether the existence of such successor is the result
of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all the business and/or assets of
the Company.

 

		18.9	Severability

 

If any provision of the Plan or any Award
is determined to be invalid, illegal or unenforceable in any jurisdiction, or as to any person, or would disqualify the Plan or
any Award under any law deemed applicable by the Plan Administrator, such provision shall be construed or deemed amended to conform
to applicable laws, or, if it cannot be so construed or deemed amended without, in the Plan Administrator's determination, materially
altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person or Award, and the
remainder of the Plan and any such Award shall remain in full force and effect.

 

		18.10	Choice of Law and Venue

 

The Plan, all Awards granted thereunder
and all determinations made and actions taken pursuant hereto, to the extent not otherwise governed by the laws of the United States,
shall be governed by the laws of the State of California without giving effect to principles of conflicts of law. Participants
irrevocably consent to the nonexclusive jurisdiction and venue of the state and federal courts located in the State of California.

 

		18.11	Legal Requirements

 

The granting of Awards and the issuance
of shares of Common Stock under the Plan is subject to all applicable laws, rules and regulations, and to such approvals by any
governmental agencies or national securities exchanges as may be required.

 

SECTION 19. EFFECTIVE DATE

 

The effective date (the "Effective
Date") is the date on which the Plan is adopted by the Board. If the stockholders of the Company do not approve the
Plan within 12 months after the Board's adoption of the Plan, any Incentive Stock Options granted under the Plan will be treated
as Nonqualified Stock Options. To the extent required under applicable law, any Award exercised before the stockholders of the
Company approve the Plan shall be rescinded if the stockholders of the Company do not approve the Plan by the later of (a) within
12 months before or after the date on which the Board adopts the Plan and (b) prior to or within 12 months of the date on
which any Award under the Plan is granted in California.

 

     

     

    

 

PLAN ADOPTION

SUMMARY PAGE

 

	
        Date
        of

        Board Action
	 	
        

        Action
	 	
        Date
        of 

Stockholder 

Approval

	 	 	 	 	 
	May 1, 2015	 	Initial Plan Adoption	 	May 1, 2015
	 	 	 	 	 
	December 22, 2015	 	Increase number of shares reserved for issuance under Plan from 10,000,000 to 14,000,000	 	December 22, 2015
	 	 	 	 	 
	October 13, 2016	 	Increase number of shares reserved for issuance under Plan from 14,000,000 to 20,000,000	 	October 13, 2016

 

     

     

    

 

APPENDIX A

 

"Acquired Entity"
means any entity acquired by the Company or a Related Company or with which the Company or a Related Company merges or combines.

 

"Acquisition Price"
means the fair market value of the securities, cash or other property, or any combination thereof, receivable upon consummation
of a Company Transaction in respect of a share of Common Stock.

 

"Award" means any
Option, Stock Appreciation Right, Stock Award, Restricted Stock, Stock Unit or cash-based award or other incentive payable in cash
or in shares of Common Stock, as may be designated by the Plan Administrator from time to time.

 

"Board" means the
Board of Directors of the Company.

 

"Cause," unless
otherwise defined in the instrument evidencing an Award or in a written employment, services or other agreement between the Participant
and the Company or a Related Company, means dishonesty, fraud, serious or willful misconduct, unauthorized use or disclosure of
confidential information or trade secrets, or conduct prohibited by law (except minor violations), in each case as determined by
the Company's chief human resources officer or other person performing that function or, in the case of directors and executive
officers, the Board, whose determination shall be conclusive and binding.

 

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

 

"Common Stock"
means the common stock, par value $0.0001 per share, of the Company.

 

"Company" means
Reign Sapphire Corporation, a Delaware corporation.

 

"Company Transaction,"
unless otherwise defined in the instrument evidencing the Award or in a written employment, services or other agreement between
the Participant and the Company or a Related Company, means consummation of:

 

(a)          a
merger or consolidation of the Company with or into any other company or other entity,

 

(b)          a
sale in one transaction or a series of transactions undertaken with a common purpose of all of the Company's outstanding voting
securities, or

 

(c)          a
sale, lease, exchange or other transfer in one transaction or a series of related transactions undertaken with a common purpose
of all or substantially all of the Company's assets.

 

Where a series of transactions undertaken
with a common purpose is deemed to be a Company Transaction, the date of such Company Transaction shall be the date on which the
last of such transactions is consummated.

 

     

     

    

 

"Disability," unless
otherwise defined by the Plan Administrator or in the instrument evidencing the Award or in a written employment, services or other
agreement between the Participant and the Company or a Related Company, means a mental or physical impairment of the Participant
that is expected to result in death or that has lasted or is expected to last for a continuous period of 12 months or more
and that causes the Participant to be unable to perform his or her material duties for the Company or a Related Company and to
be engaged in any substantial gainful activity, in each case as determined by the Company's chief human resources officer or other
person performing that function or, in the case of directors and executive officers, the Board, each of whose determination shall
be conclusive and binding.

 

"Effective Date"
has the meaning set forth in Section 19.

 

"Eligible Person"
means any person eligible to receive an Award as set forth in Section 5.

 

"Exchange Act"
means the Securities Exchange Act of 1934, as amended from time to time.

 

"Fair Market Value"
means the per share fair market value of the Common Stock as established in good faith by the Plan Administrator or, if the Common
Stock is publicly traded, the average of the high and low trading prices for the Common Stock on any given date during regular
trading, or if not trading on that date, such price on the last preceding date on which the Common Stock was traded, unless determined
otherwise by the Plan Administrator using such methods or procedures as it may establish.

 

"Grant Date"means
the later of (a) the date on which the Plan Administrator completes the corporate action authorizing the grant of an Award
or such later date specified by the Plan Administrator and (b) the date on which all conditions precedent to an Award have
been satisfied, provided that conditions to the exercisability or vesting of Awards shall not defer the Grant Date.

 

"Incentive Stock Option"means
an Option granted with the intention that it qualify as an "incentive stock option" as that term is defined for purposes
of Section 422 of the Code or any successor provision.

 

"Nonqualified Stock Option"means
an Option other than an Incentive Stock Option.

 

"Option"means a
right to purchase Common Stock granted under Section 7.

 

"Option Expiration Date"
means the last day of the maximum term of the Option.

 

"Option Term" means
the maximum term of an Option as set forth in Section 7.3.

 

"Participant" means
any Eligible Person to whom an Award is granted.

 

"Plan" means the
Reign Sapphire Corporation 2015 Equity Incentive Plan.

 

"Plan Administrator"
has the meaning set forth in Section 3.1.

 

     

     

    

 

"Related Company"
means any entity that, directly or indirectly, is in control of, is controlled by or is under common control with the Company.

 

"Related Party Transaction"
means (a) a merger or consolidation of the Company in which the holders of the outstanding voting securities of the Company
immediately prior to the merger or consolidation hold at least a majority of the outstanding voting securities of the Successor
Company immediately after the merger or consolidation; (b) a sale, lease, exchange or other transfer of all or substantially
all of the Company's assets to a majority-owned subsidiary company; or (c) a transaction undertaken for the principal purpose
of restructuring the capital of the Company, including, but not limited to, reincorporating the Company in a different jurisdiction,
converting the Company to a limited liability company or creating a holding company.

 

"Restricted Stock"
means an Award of shares of Common Stock granted under Section 10, the rights of ownership of which are subject to restrictions
prescribed by the Plan Administrator.

 

"Retirement," unless
otherwise defined in the instrument evidencing the Award or in a written employment, services or other agreement between the Participant
and the Company or a Related Company, means "retirement" as defined for purposes of the Plan by the Plan Administrator
or the Company's chief human resources officer or other person performing that function or, if not so defined, means Termination
of Service on or after the date the Participant reaches "normal retirement age," as that term is defined in Section 411(a)(8)
of the Code.

 

"Securities Act"
means the Securities Act of 1933, as amended from time to time.

 

"Stock Appreciation Right"
or "SAR" means a right granted under Section 9.1 to receive the excess of the Fair Market Value of
a specified number of shares of Common Stock over the grant price.

 

"Stock Award" means
an Award of shares of Common Stock granted under Section 10, the rights of ownership of which are not subject to restrictions
prescribed by the Plan Administrator.

 

"Stock Unit" means
an Award denominated in units of Common Stock granted under Section 10.

 

"Substitute Awards"
means Awards granted or shares of Common Stock issued by the Company in substitution or exchange for, awards previously granted
by an Acquired Entity.

 

"Successor Company"
means the surviving company, the successor company, the acquiring company or its parent, as applicable, in connection with a Company
Transaction.

 

"Termination of Service"
means a termination of employment or service relationship with the Company or a Related Company for any reason, whether voluntary
or involuntary, including by reason of death, Disability or Retirement. Any question as to whether and when there has been a Termination
of Service for the purposes of an Award and the cause of such Termination of Service shall be determined by the Company's chief
human resources officer or other person performing that function or, with respect to directors and executive officers, by the Board,
whose determination shall be conclusive and binding. Transfer of a Participant's employment or service relationship between the
Company and any Related Company shall not be considered a Termination of Service for purposes of an Award. Unless the Board determines
otherwise, a Termination of Service shall be deemed to occur if the Participant's employment or service relationship is with an
entity that has ceased to be a Related Company.

 

"Vesting Commencement Date"
means the Grant Date or such other date selected by the Plan Administrator as the date from which an Award begins to vest.

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