Document:

rcrt_ex410

 

 

 
Exhibit 4.10

 

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. 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

 

RECRUITER.COM
GROUP, INC.

 

	
Warrant Shares:
_____

	

Initial Exercise
Date: May ___, 2021

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that,
for value received, [HOLDER] 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 date hereof (the “Initial Exercise Date”)
and on or prior to 5:00 p.m. (New York City time) on May __, 2024
(the “Termination
Date”) but not thereafter, to subscribe for and
purchase from Recruiter.com Group, Inc., a Nevada corporation (the
“Company”), up to ____
shares of common stock (“Common Stock”) of the
Company, par value $0.0001 (the “Warrant Shares”). The
purchase price of one share of Common Stock under this Warrant
shall be equal to the Exercise Price, as defined in Section
1(b).

 

Section 1. Exercise.

 

a) Exercise
of Warrant. Subject to the terms and conditions hereof, this
Warrant may be exercised by the Holder on any day on or after the
Initial Exercise Date, in whole or in part, by delivery (whether
via facsimile or otherwise) of a written notice (the
“Notice of
Exercise”) of the Holder’s election to exercise
this Warrant. Within one (1) Trading Day following an exercise of
this Warrant as aforesaid, the Holder shall deliver payment to the
Company of an amount equal to the Exercise Price (as defined below)
in effect on the date of such exercise multiplied by the number of
Warrant Shares as to which this Warrant was so exercised (the
“Aggregate Exercise
Price”) in cash or via wire transfer of immediately
available funds if the Holder did not notify the Company in such
Notice of Exercise that such exercise was made pursuant to a
Cashless Exercise (as defined below). The Holder shall not be
required to deliver the original of this Warrant in order to effect
an exercise hereunder. Execution and delivery of a Notice of
Exercise with respect to less than all of the Warrant Shares shall
have the same effect as cancellation of the original of this
Warrant and issuance of a new Warrant evidencing the right to
purchase the remaining number of Warrant Shares. Execution and
delivery of a Notice of Exercise for all of the then-remaining
Warrant Shares shall have the same effect as cancellation of the
original of this Warrant after delivery of the Warrant Shares in
accordance with the terms hereof.

 

b) Exercise Price. The exercise
price per share of Common Stock under this Warrant shall be
$0.01, subject to adjustment
hereunder (the “Exercise
Price”).

 

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

 

Net
Number = A - (A x B)

 

For
purposes of the foregoing formula:

 

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

 

B =
$0.01 (as adjusted for stock splits, stock dividends, stock
combinations, recapitalizations, and similar events)

 

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

 

 

 

 

d)
 Mechanics of
Exercise.
  

i. Delivery of Warrant Shares Upon
Exercise. The Company shall cause the Warrant Shares
purchased hereunder to be transmitted by the Company’s
transfer agent (the “Transfer Agent”) to the
Holder by crediting the account of the Holder’s or its
designee’s balance account with The Depository Trust Company
through its Deposit or Withdrawal at Custodian system
(“DWAC”) if the Company is
then a participant in such system and either (A) there is an
effective registration statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by the Holder or
(B) the Warrant Shares are eligible for resale by the Holder
without volume or manner-of- sale limitations pursuant to Rule 144
(assuming cashless exercise of the Warrants), and otherwise by
physical delivery of a certificate, registered in the
Company’s share register in the name of the Holder or its
designee, for the number of Warrant Shares to which the Holder is
entitled pursuant to such exercise to the address specified by the
Holder in the Notice of Exercise by the date that is the earliest
of (i) two (2) Trading Days after the delivery to the Company of
the Notice of Exercise, (ii) one (1) Trading Day after delivery of
the Aggregate Exercise Price to the Company and (iii) the number of
Trading Days comprising the Standard Settlement Period after the
delivery to the Company of the Notice of Exercise (such date, the
“Warrant Share
Delivery Date”). Upon delivery of the Notice of
Exercise, the Holder shall be deemed for all corporate (but not
Rule 144) purposes to have become the holder of record of the
Warrant Shares with respect to which this Warrant has been
exercised, irrespective of the date of delivery of the Warrant
Shares, provided that payment of the aggregate Exercise Price
(other than in the case of a cashless exercise) is received within
the earlier of (i) two (2) Trading Days and (ii) the number of
Trading Days comprising the Standard Settlement Period following
delivery of the Notice of Exercise. The Company agrees to maintain
a transfer agent that is a participant in the FAST program so long
as this Warrant remains outstanding and exercisable. As used
herein, “Standard
Settlement Period” means the standard settlement
period, expressed in a number of Trading Days, on the
Company’s primary Trading Market with respect to the Common
Stock as in effect on the date of delivery of the Notice of
Exercise. As used herein, “Trading Day” means a day
on which the principal trading market of the Common Stock is open
for trading.

 

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

 

iii. Rescission
Rights. If the Company fails to cause the Transfer Agent to
transmit to the Holder the Warrant Shares pursuant to Section
1(d)(i) by the Warrant Share Delivery Date, then the Holder will
have the right to rescind such exercise.

 

iv. 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.

 

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

 

vi. 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.

 

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 1 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 (such persons, “Attribution Parties”)),
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 and Attribution Parties 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 or Attribution Parties and (ii) exercise or
conversion of the unexercised or unconverted 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 or Attribution
Parties. Except as set forth in the preceding sentence, for
purposes of this Section 1(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 1(e) applies,
the determination of whether this Warrant is exercisable (in
relation to other securities owned by the Holder together with any
Affiliates and Attribution Parties) 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 Attribution Parties) 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 1(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 one Trading Day
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 or
Attribution Parties since the date as of which such number of
outstanding shares of Common Stock was reported. The
“Beneficial
Ownership Limitation” shall be 4.99% of the number of
shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock issuable upon
exercise of this Warrant. The Holder, upon notice to the Company,
may increase or decrease the Beneficial Ownership Limitation
provisions of this Section 1(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
1(e) shall continue to apply. Any increase in the Beneficial
Ownership Limitation will not be effective until the 61st day after such
notice is delivered to the Company. The provisions of this
paragraph shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 1(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.

 

 

 

 

Section 2. Certain
Adjustments.

 

a) Stock Dividends and Splits. If
the Company, at any time while this Warrant is outstanding: (i)
pays a stock dividend or otherwise makes a distribution or
distributions on shares of its Common Stock or any other equity or
equity equivalent securities payable in shares of Common Stock
(which, for avoidance of doubt, shall not include any shares of
Common Stock issued by the Company upon exercise of this Warrant),
(ii) subdivides outstanding shares of Common Stock into a larger
number of shares, (iii) combines (including by way of reverse stock
split) outstanding shares of Common Stock into a smaller number of
shares or (iv) issues by reclassification of shares of the Common
Stock any shares of capital stock of the Company, then in each case
the Exercise Price shall be multiplied by a fraction of which the
numerator shall be the number of shares of Common Stock (excluding
treasury shares, if any) outstanding immediately before such event
and of which the denominator shall be the number of shares of
Common Stock outstanding immediately after such event, and the
number of shares issuable upon exercise of this Warrant shall be
proportionately adjusted such that the aggregate Exercise Price of
this Warrant shall remain unchanged. Any adjustment made pursuant
to this Section 2(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 2(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, that, 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. During
such time as this Warrant is outstanding, if the Company shall
declare or make any dividend or other distribution of its assets
(or rights to acquire its assets) to holders of shares of Common
Stock, by way of return of capital or otherwise (including, without
limitation, any distribution of cash, stock or other securities,
property or options by way of a dividend, spin off,
reclassification, corporate rearrangement, scheme of arrangement or
other similar transaction) (a “Distribution”), at any
time after the issuance of this Warrant, then, in each such case,
the Holder shall be entitled to participate in such Distribution to
the same extent that the Holder would have participated therein if
the Holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Warrant (without regard to any
limitations on exercise hereof, including without limitation, the
Beneficial Ownership Limitation) immediately before the date of
which a record is taken for such Distribution, or, if no such
record is taken, the date as of which the record holders of shares
of Common Stock are to be determined for the participation in such
Distribution (provided, however, that, to the extent
that the Holder's right to participate in any such Distribution
would result in the Holder exceeding the Beneficial Ownership
Limitation, then the Holder shall not be entitled to participate in
such Distribution to such extent (or in the beneficial ownership of
any shares of Common Stock as a result of such Distribution to such
extent) and the portion of such Distribution shall be held in
abeyance for the benefit of the Holder until such time, if ever, as
its right thereto would not result in the Holder exceeding the
Beneficial Ownership Limitation).

 

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, merger 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 1(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 1(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 2(e) pursuant to written agreements in
form and substance reasonably satisfactory to the Holder and
approved by the Holder (without unreasonable delay) prior to such
Fundamental Transaction and shall, at the option of the Holder,
deliver to the Holder in exchange for this Warrant a security of
the Successor Entity evidenced by a written instrument
substantially similar in form and substance to this Warrant which
is exercisable for a corresponding number of shares of capital
stock of such Successor Entity (or its parent entity) equivalent to
the shares of Common Stock acquirable and receivable upon exercise
of this Warrant (without regard to any limitations on the exercise
of this Warrant) prior to such Fundamental Transaction, and with an
exercise price which applies the exercise price hereunder to such
shares of capital stock (but taking into account the relative value
of the shares of Common Stock pursuant to such Fundamental
Transaction and the value of such shares of capital stock, such
number of shares of capital stock and such exercise price being for
the purpose of protecting the economic value of this Warrant
immediately prior to the consummation of such Fundamental
Transaction), and which is reasonably satisfactory in form and
substance to the Holder. Upon the occurrence of any such
Fundamental Transaction, the Successor Entity shall succeed to, and
be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this Warrant 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.

 

e) Calculations. All calculations
under this Section 2 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 2, 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.

 

 

 

 

 

f) Notice to
Holder.

 

i. Adjustment to Exercise Price.
Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 2, the Company shall promptly deliver to the Holder
by facsimile or email 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.

 

ii. Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any
other distribution in whatever form) on the Common Stock, (B) the
Company shall declare a special nonrecurring cash dividend on or a
redemption of the Common Stock, (C) the Company shall authorize the
granting to all holders of the Common Stock rights or warrants to
subscribe for or purchase any shares of capital stock of any class
or of any rights, (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification
of the Common Stock, any consolidation or merger to which the
Company is a party, any sale or transfer of all or substantially
all of the assets of the Company, or any compulsory share exchange
whereby the Common Stock is converted into other securities, cash
or property, or (E) the Company shall authorize the voluntary or
involuntary dissolution, liquidation or winding up of the affairs
of the Company, then, in each case, the Company shall cause to be
delivered by facsimile or email to the Holder at its last facsimile
number or email 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 deliver such notice or any
defect therein or in the delivery thereof shall not affect the
validity of the corporate action required to be specified in such
notice. To the extent that any notice provided in this Warrant
constitutes, or contains, material, non-public information
regarding the Company or any of the Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a
Current Report on Form 8-K. The Holder shall remain entitled to
exercise this Warrant during the period commencing on the date of
such notice to the effective date of the event triggering such
notice except as may otherwise be expressly set forth
herein.

 

Section 3. Transfer of
Warrant.

 

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

 

b) New Warrants. This Warrant may
be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written
notice specifying the names and denominations in which new Warrants
are to be issued, signed by the Holder or its agent or attorney.
Subject to compliance with Section 3(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 Exercise Date and shall be identical with this
Warrant except as to the number of Warrant Shares issuable pursuant
thereto.

 

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

 

d) Transfer Restrictions. If, at
the time of the surrender of this Warrant in connection with any
transfer of this Warrant, the transfer of this Warrant shall not be
either (i)
registered pursuant
to an effective registration statement under the Securities Act and
under applicable state securities or blue sky laws or (ii) eligible
for resale without volume or manner-of-sale restrictions or current
public information requirements pursuant to Rule 144, the Company
may require, as a condition of allowing such transfer, that the
Holder or transferee of this Warrant.

 

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

 

Section 4. 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
1(d)(i), except as expressly set forth in Section 1.

 

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 Business Day, then, such action may be taken or such
right may be exercised on the next succeeding Business
Day.

 

d) Authorized
Shares.

 

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

 

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

 

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

 

e) Governing Law; Jurisdiction.
This Warrant shall be governed by and construed in accordance with
the laws of the State of Nevada without regard to principles of
conflicts of laws. Any action brought by either party against the
other concerning the transactions contemplated by this Warrant
shall be brought only in the federal courts of Southern District of
New York. The parties to this Warrant hereby irrevocably waive any
objection to jurisdiction and venue of any action instituted
hereunder and shall not assert any defense based on lack of
jurisdiction or venue or based upon forum non conveniens. The
Company and Holder waive trial by jury. The prevailing party shall
be entitled to recover from the other party its reasonable
attorney's fees and costs. In the event that any provision of this
Warrant or any other agreement delivered in connection herewith is
invalid or unenforceable under any applicable statute or rule of
law, then such provision shall be deemed inoperative to the extent
that it may conflict therewith and shall be deemed modified to
conform with such statute or rule of law. Any such provision which
may prove invalid or unenforceable under any law shall not affect
the validity or enforceability of any other provision of any
agreement. Each party hereby irrevocably waives personal service of
process and consents to process being served in any suit, action or
proceeding in connection with this Warrant by mailing a copy
thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect
for notices to it under this Warrant and agrees that such service
shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any other manner permitted by
law.

 

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

 

g) Nonwaiver and Expenses. No
course of dealing or any delay or failure to exercise any right
hereunder on the part of Holder shall operate as a waiver of such
right or otherwise prejudice the Holder’s rights, powers or
remedies. Without limiting any other provision of this Warrant, 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. All notices, demands,
requests, consents, approvals, and other communications required or
permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in
the mail, registered or certified, return receipt requested,
postage prepaid, (iii) delivered by reputable air courier service
with charges prepaid, or (iv) transmitted by hand delivery,
telegram, facsimile, or electronic mail addressed as set forth
below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication
required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery, upon electronic mail delivery, or
delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated
below (if delivered on a business day during normal business hours
where such notice is to be received), or the first business day
following such delivery (if delivered other than on a business day
during normal business hours where such notice is to be received)
or (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address,
or upon actual receipt of such mailing, whichever shall first
occur. The addresses for such communications shall be:

 

If to
the Company:

 

RECRUITER.COM
GROUP, INC.

100
Waugh Dr.

Suite
300

Houston, TX
77007

Attn:
Evan Sohn

E-mail: 

 

If to
the Holder:

 

[Holder]

[address]

e-mail:

 

 

 

 

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

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

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

 

 

(Signature Page Follows)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

	
 

	
RECRUITER.COM
GROUP, INC.

	
 

	
 

	
 

	
 

	
 

	

	
By:  

	
/s/ 

	
 

	
 

	
 

	
Name: Evan
Sohn

	
 

	
 

	
 

	
Title: Chief Executive
Officer

	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOTICE
OF EXERCISE

 

 

TO: 
[                                            

 

(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; orres purchasable pursuant to the cashless
exercise procedure set forth in subsection 2(c).

 

[ ] [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 said
Warrant Shares in the name of the undersigned or in such other name
as is specified below:

 

 

   
      
                 
                 
                 
               
                 
                 
    

 

 

The
Warrant Shares shall be delivered to the following DWAC Account
Number:

 

 

 
 
                 
      
                 
                 
                 
     

 

 

 
               
 
      
                 
                 
                 
       

 

 

 
 
                 
      
                 
                 
                 
     

 

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

 

[SIGNATURE OF
HOLDER]

 

Name of
Investing Entity: 

Signature of Authorized Signatory of Investing
Entity:                                                                                        

Name of
Authorized Signatory:                                                                                                                             

Authorized
Signatory:                                                                                                                                            

Date: 
                                                                             
                 
                 
                 
                 
             
 

 

 

 

 

EXHIBIT
B

 

ASSIGNMENT
FORM

(To assign the foregoing Warrant, execute this form and supply
required information. Do not use this form to purchase
shares.)

 

FOR
VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to Name:

 

	
Name:

	
   

	
 

	
(Please Print)

	
 

	
 

	Address:	
 

	
 

	
(Please Print)

	
	
 

	Phone Number:
	
 

	
 

	
 

	Email Address:
	
 

 

Dated: 
     
                 
                 
          ,          
               
 
                  

 

Holder's Signature:
         
                 
                 
             
  

 

Holder's Address:rcrt_ex1018

 

Exhibit 10.18

 

April
16, 2021

 

INVESTOR

ADDRESS

 

VIA ELECTRONIC MAIL

 

Re:
Notice of the Automatic Conversion
of 12.5% Original Issue Discounts Senior Secured Debentures and
Agreement to Certain Amendments to Common Stock Purchase
Warrants

  

NAME;

 

You are
being sent this letter (the “Letter Agreement”) as you
are currently the holder of $_______ 12.5% Original Issue Discount
Senior Subordinate Convertible Debentures (the
“Debentures”) issued by Recruiter.com Group, Inc. (the
“Company”) and $_______ Common Stock Purchase Warrants
(the “Warrants”) entitling you to purchase in
additional _______ of common stock of the Company. Reference is
made to transaction documents entered into by and among the Company
and Michael J. Calise pursuant to which you acquired the Debentures
and Warrants (the “Transaction Documents”). The
Transaction Documents refer to the documents entered into in
connection with the Company’s bridge offering consummated
between May and June 2020 (the “Initial Bridge Transaction
Documents”) and /or our bridge offering consummated in
January 2021 (the “Subsequent Bridge Transaction
Documents”), depending upon which (or both) offerings in
which you participated.

 

Our Current Financing – Potential Uplisting

 

As you
may be aware, the Company is currently in the process of pursuing a
public offering of its securities, including but not limited to,
its common stock, par value $0.001 per share (the “Common
Stock”), to raise up to $12,000,000, and list its securities
onto the NASDAQ (the “Offering”). The Company has filed
a registration statement on Form S-1 with the United States
Securities and Exchange Commission (the “SEC”) related
to the Offering which is being led by Joseph Gunnar & Co. LLC
(the “Underwriter”). In connection with the Offering
and prior to its closing, the Company will be engaging in a reverse
stock split pursuant to which the number of our shares of Common
Stock issued and outstanding will be reduced proportionately based
on the reverse stock split ratio to be determined. The share and
dollar figures in this Letter Agreement are pre-split and the share
amounts actually issued will be adjusted post-split based on the
reverse stock split ratio that is ultimately agreed to by the
Underwriter and the Company. The Company believes that attaining
and maintaining the listing of our shares of Common Stock on NASDAQ
is in the best interests of our Company and its stockholders,
because if listed on NASDAQ, the Company believes that the
liquidity in the trading of its Common Stock could be significantly
enhanced, which could result in an increase in the trading price
and may encourage investor interest and improve the marketability
of our Common Stock to a broader range of investors. The Underwriter has advised the Company that in
order for it to proceed with the Offering and with the
Company’s listing of the Common Stock on NASDAQ, it requires
that certain actions be taken by holders of securities of the
Company. The Company is therefore contacting you and other
holders of Debentures and Warrants issued pursuant to the
Transaction Documents (i) to advise that the Offering, if
consummated, will trigger mandatory conversion of the Debentures
into Common Stock (or units of Common Stock and warrants to
purchase Common Stock if units are offered to the public in the
Offering), (ii) to request certain amendments to the Warrants
issued pursuant to the Transaction Documents and (iii) to request
that you agree to certain lock-up provisions with respect to the
Securities issued to you pursuant to the Transaction Documents as
contemplated in the Securities Purchase Agreement that was executed
in connection with your purchase of Debentures and
Warrants.

 

 

 

 

Please Note the Following:

 

Automatic Conversion of your Debentures in connection with the
Offering

 

As of
April 16, 2021 our records indicate that you own $_______
Debentures whose outstanding principal balance equals $_______
excluding interest owed which will be paid in cash upon
conversion.

  

The
closing of the Offering is currently contemplated to qualify as
Qualified Offering under the terms of the Debentures and will
trigger automatic conversion of amounts owed under the Debentures
into restricted shares of Common Stock or units of Common Stock and
warrants to purchase Common Stock if units are offered to the
public in the Offering pursuant to Section 4(e) of the Debentures
(the “Automatic Debenture Conversion”). These
securities will be issued pursuant to an exemption from
registration as promulgated by the SEC. The Automatic Debenture
Conversion shall be calculated as follows:

 

The
amounts owing under your Debenture shall convert to securities of
the Company by taking the outstanding principal balance of and any
unpaid accrued interest owed pursuant to the Debenture and dividing
it by the lower of (i) $1.60, and (ii) 80% of the per share price
of Common Stock in the Offering (or unit price if applicable) (the
“Qualified Offering Conversion Price”). By way of
example, if the outstanding principal balance of your Debenture is
$1,000 and the public offering price per share in the Offering is
$5.00 (in this example no warrants are issued in the Offering), the
Qualified Offering Conversion Price of your Debenture will be $1.60
per share and you will be entitled to receive $1,000 divided by
1.60 or 625 shares of Common Stock.

 

Upon
the triggering of the Automatic Debenture Conversion, the Company
shall send you prompt written notice (the “Automatic
Debenture Conversion Notice”) specifying the conversion price
and date upon which such conversion was effective (the
“Effective Date”) and the number and type of restricted
securities to be issued to you upon conversion. The Automatic
Debenture Conversion Notice will also contain instructions on
surrendering to the Company your Debenture; provided, however, the
Automatic Debenture Conversion shall be effective on the Effective
Date whether or not you surrender your Debenture, which shall be
null and void on the Effective Date.

 

Warrant Amendment

 

We are
requesting an amendment to certain language in the warrants that
were issued to you in connection with your Debenture purchase to
eliminate provisions that have created a warrant derivative
liability on our balance sheet, as of December 31, 2020, in the
amount of $11,537,997. This is due to the accounting treatment of
the current Black Scholes language in the warrant (creating a
potential liability upon a change in control). This $11,537,997
derivative liability reduces our shareholders equity by that same
amount. As one of the criteria to meet NASDAQ's listing
requirements is a positive shareholders equity of $5mm, we need to
eliminate this liability in our efforts to meet NASDAQ's listing
requirements.

 

 

2

 

 

By
executing and delivering this letter, you agree to the amendment of
the provisions of the Warrants as follows:

 

(a)

Section 3(b)(iii)
thereof is hereby amended by deleting the section entitled
“Change in Option
Price or Rate of Conversion” therein in its entirety
and replacing it with the following:

 

Change in Option Price or Rate of
Conversion. If any Option and/or Common Stock Equivalents
and/or Adjustment Right (as defined below) 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 Common Stock
Equivalents and/or Adjustment Right (as defined below), the
“Secondary Securities”), together comprising one
integrated transaction, (or one or more transactions if such
issuances or sales or deemed issuances or sales of securities of
the Company either (A) have at least one investor or purchaser in
common, (B) are consummated in reasonable proximity to each other
and/or (C) are consummated under the same plan of financing) the
aggregate 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 Common Stock was
issued (or was deemed to be issued pursuant to Section 3(b)(i) or
3(b)(ii) above, as applicable) in such integrated transaction
solely with respect to such Primary Security, minus (y) with
respect to such Secondary Securities, the sum of (I) the fair
market value (as determined by the Holder in good faith) of such
Adjustment Right (as defined below), if any, and (II) the fair
market value (as determined by the Holder) of such Common Stock
Equivalents, if any, in each case, as determined on a per share
basis in accordance with this Section 3(b)(iv). If any shares of
Common Stock, Options or Common Stock Equivalents 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 Common Stock
Equivalents) will be deemed to be the net amount of consideration
received by the Company therefor. If any shares of Common Stock,
Options or Common Stock Equivalents are issued or sold for a
consideration other than cash, the amount of such consideration
received by the Company (for the purpose of determining the
consideration paid for such Common Stock, Option or Common Stock
Equivalents) 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 Common Stock Equivalents are issued to the owners of the
non-surviving entity in connection with any merger in which the
Company is the surviving entity, the amount of consideration
therefor (for the purpose of determining the consideration paid for
such shares of Common Stock, Option or Common Stock Equivalents)
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 Common Stock Equivalents
(as the case may be). The fair value of any consideration other
than cash or publicly traded securities will be determined jointly
by the Company and the 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). “Adjustment Right” means any right granted
with respect to any securities issued in connection with, or with
respect to, any issuance or sale (or deemed issuance or sale
hereunder) of Common Stock (other than rights of the type described
in Sections 3(c) and 3(d) hereof) that could result in a decrease
in the net consideration received by the Company in connection
with, or with respect to, such securities (including, without
limitation, any cash settlement rights, cash adjustment or other
similar rights).

 

 

3

 

 

(b)

Section 3(e)
thereof is hereby amended by deleting in its entirety the following
portion of Section 3(e):

 

Notwithstanding
anything to the contrary, in the event of a Fundamental
Transaction, the Company or any Successor Entity (as defined below)
shall, at the Holder’s option, exercisable at any time
concurrently with, or within 30 days after, the consummation of the
Fundamental Transaction (or, if later, the date of the public
announcement of the applicable Fundamental Transaction), purchase
this Warrant from the Holder by paying to the Holder an amount of
cash equal to the Black Scholes Value (as defined below) of the
remaining unexercised portion of this Warrant on the date of the
consummation of such Fundamental Transaction. “Black Scholes
Value” means the value of this Warrant based on the
Black-Scholes Option Pricing Model obtained from the
“OV” function on Bloomberg, L.P.
(“Bloomberg”) determined as of the day of consummation
of the applicable Fundamental Transaction for pricing purposes and
reflecting (A) a risk-free interest rate corresponding to the U.S.
Treasury rate for a period equal to the time between the date of
the public announcement of the applicable Fundamental Transaction
and the Termination Date, (B) an expected volatility equal to the
greater of 100% and the 100 day volatility obtained from the HVT
function on Bloomberg as of the Trading Day immediately following
the public announcement of the applicable Fundamental Transaction,
(C) the underlying price per share used in such calculation shall
be the greater of (i) the sum of the price per share being offered
in cash, if any, plus the value of any noncash consideration, if
any, being offered in such Fundamental Transaction and (ii) the
greater of (x) the last VWAP immediately prior to the public
announcement of such Fundamental Transaction and (y) the last VWAP
immediately prior to the consummation of such Fundamental
Transaction and (D) a remaining option time equal to the time
between the date of the public announcement of the applicable
Fundamental Transaction and the Termination Date. The payment of
the Black Scholes Value will be made by wire transfer of
immediately available funds within five Business Days of the
Holder’s election (or, if later, on the effective date of the
Fundamental Transaction).

 

By your
agreement and acknowledgment below, this Letter Agreement shall
serve as written confirmation that you acknowledge and agree that
the terms of the Warrants have been amended as set forth above on
the date of your agreement and acknowledgment below.

 

Lock Up Agreement

 

As
contemplated in Section 4.19 of the Securities Purchase Agreement
you executed in connection with your Debenture and Warrant
purchase, you covenanted and agreed to enter into a standard
lock-up agreement, solely with respect to the Securities (as
defined in the Securities Purchase Agreement), that shall provide
that for a period beginning on the closing date of a Qualified
Offering (which the contemplated Offering will so qualify) and
ending on the six (6) month anniversary of such closing date, you
shall not sell into the market pursuant to Rule 144 or pursuant to
a then effective registration statement any of the
Securities.

 

Accordingly,
by your agreement and acknowledgment below, this Letter Agreement
shall serve as written confirmation that you acknowledge and agree
to the below lock up provisions as set forth below as of the date
of your agreement and acknowledgment below.

 

 

4

 

 

You
agree to the following lock-up conditions to take effect upon the
Effective Date of the Qualified Offering:

 

a.

That for a period
of 180 days beginning on the Effective Date of the Qualified
Offering (the “Lock-Up Period”), you will not, without
the prior written consent of the Underwriter, (1) offer, pledge,
sell, contract to sell, grant, lend, or otherwise transfer or
dispose of, directly or indirectly, any shares of the Common Stock
(the “Shares”) or any securities convertible into or
exercisable or exchangeable for Shares, whether now owned or
hereafter acquired by you or with respect to which you have or
hereafter acquire the power of disposition (collectively, the
“Lock-Up Securities”); (2) enter into any swap or other
arrangement that transfers to another, in whole or in part, any of
the economic consequences of ownership of the Lock-Up Securities,
whether any such transaction described in clause (1) above or this
clause (2) is to be settled by delivery of Lock-Up Securities, in
cash or otherwise; (3) make any demand for or exercise any right
with respect to the registration of any Lock-Up Securities; or (4)
publicly disclose the intention to make any offer, sale, pledge or
disposition, or to enter into any transaction, swap, hedge or other
arrangement relating to any Lock-Up Securities. Notwithstanding the
foregoing, and subject to the conditions below, you may transfer
Lock-Up Securities without the prior written consent of the
Underwriter in connection with (a) transactions relating to Lock-Up
Securities acquired in open market transactions after the
completion of the Offering; provided that no filing under Section
16(a) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), shall be required or shall be
voluntarily made in connection with subsequent sales of Lock-Up
Securities acquired in such open market transactions; (b) transfers
of Lock-Up Securities as a bona fide gift, by will or intestacy or
to a family member or trust for the benefit of a family member (for
purposes of this Letter Agreement, “family member”
means any relationship by blood, marriage or adoption, not more
remote than first cousin); (c) transfers of Lock-Up Securities to a
charity or educational institution; or (d) if you, directly or
indirectly, control a corporation, partnership, limited liability
company or other business entity, any transfers of Lock-Up
Securities to any shareholder, partner or member of, or owner of
similar equity interests in such entity, as the case may be;
provided that in the case of any transfer pursuant to the foregoing
clauses (b), (c) or (d), (i) any such transfer shall not involve a
disposition for value, (ii) each transferee shall sign and deliver
to the Underwriter a lock up agreement substantially in the form of
the lock-up provisions of this Letter Agreement and (iii) no filing
under Section 16(a) of the Exchange Act shall be required or shall
be voluntarily made. You also agree and consent to the entry of
stop transfer instructions with the Company’s transfer agent
and registrar against the transfer of your Lock-Up Securities
except in compliance with the lock-up provisions of this Letter
Agreement.

 

b.

No portion of the
lock-up provisions of this Letter Agreement shall be deemed to
restrict or prohibit the exercise, exchange or conversion by you of
any securities exercisable or exchangeable for or convertible into
the Shares, as applicable; provided that you do not transfer the
Shares acquired on such exercise, exchange or conversion during the
Lock-Up Period, unless otherwise permitted pursuant to the terms of
the lock-up provisions of this Letter Agreement. In addition, no
provision herein shall be deemed to restrict or prohibit the entry
into or modification of a so-called “10b5-1” plan at
any time (other than the entry into or modification of such a plan
in such a manner as to cause the sale of any Lock-Up Securities
within the Lock-Up Period).

 

c.

You understand that
the lock-up provisions of this Letter Agreement are irrevocable and
shall be binding upon your heirs, legal representatives, successors
and assigns.

  

By
signing below, this Letter Agreement shall serve as written
confirmation that you have reviewed this Letter Agreement (and
consulted with your legal and tax advisors to the extent you deemed
necessary) and agree to the amendments to the Warrants and the lock
up provisions hereto. Upon the Effective Date in respect of the
Automatic Debenture Conversion, you understand that the Company and
its affiliates will be released and discharged from any and all
obligations and duties that such persons may have to you with
respect to the Debenture. Notwithstanding anything contained
herein, in the event the Offering is not consummated on or before
June 30, 2021, this Letter Agreement will terminate and the
Automatic Debenture Conversion shall not take place in connection
with the Offering For the avoidance of doubt, the Warrant
amendments shall remain in place even if the Offering is not
consummated on or before June 30, 2021.

 

 

5

 

 

This
Letter Agreement contains the entire understanding between and
among the parties and supersedes any prior understandings and
agreements among them respecting the subject matter of this Letter
Agreement. In addition, you hereby represent that you meet the
requirements of at least one of the suitability standards for an
“accredited investor” as that term is defined in
Regulation D promulgated under the 1933 Act and that you have had
the opportunity to obtain any additional information, to the extent
the Company has such information in its possession or could acquire
it without unreasonable effort or expense, necessary in connection
with the matters set forth in this Letter Agreement including,
without limitation, information concerning the financial condition,
results of operations, capitalization and business of the Company
deemed relevant by you or your advisors, if any, and all such
requested information, to the extent the Company had such
information in its possession or could acquire it without
unreasonable effort or expense, has been provided to your full
satisfaction. This Letter Agreement shall be governed by and
construed in accordance with the laws of the State of Nevada
without regard to choice of law principles. This Letter Agreement
may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one
and the same instrument. Counterparts may be delivered via
facsimile, electronic mail (including .pdf or any electronic
signature complying with the U.S. federal ESIGN Act of 2000, for
example, www.docusign.com) or other transmission method and any
counterpart so delivered shall be deemed to have been duly and
validly delivered and be valid and effective for all purposes. In
case any provision of this Letter Agreement shall be held to be
invalid, illegal or unenforceable, such provision shall be
severable from the rest of this Letter Agreement, and the validity
legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

 

This
letter evidences waiver by the undersigned with respect to any and
all defaults or events of default by the Company with respect to
any failure by the Company to comply with any covenants contained
in the Transaction Documents.

 

The
parties hereby consent and agree that if this Letter Agreement
shall at any time be deemed by the parties for any reason
insufficient, in whole or in part, to carry out the true intent and
spirit hereof or thereof, the parties will execute or cause to be
executed such other and further assurances and documents as in the
reasonable opinion of the parties may be reasonably required in
order more effectively to accomplish the purposes of this Letter
Agreement.

 

***REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK***

 

 

 

 

 

 

 

 

6

 

 

Please
indicate confirmation of the terms provided herein by executing and
returning this letter in the space provided below.

 

	
 

	

Very
truly yours,

	
 

	
 

	
 

	
 

	

RECRUITER.COM GROUP, INC.

	
 

	
 

	
 

	
 

	

By:

	

	
 

	

Name:

	

Evan H.
Sohn

	
 

	

Title:

	

CEO

	
 

	
 

	
 

	
 

	

Date:

	

April
16, 2021

 

ACCEPTED AND AGREED:  

 

INVESTOR

 

	
 

	
 

	
 

	

Name:

	
 

	
 

	

Title:

	
 

	
 

	
 

	
 

	
 

	

Date:

	
 

	
 

 

 

 

 

7

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