Document:

laser_ex42.htm

EXHIBIT 4.2
  
 WARRANT AGENT AGREEMENT
  
 This WARRANT AGENT AGREEMENT (this “Warrant Agreement”) dated as of March __, 2022 (the “Issuance Date”) is between Laser Photonics Corporation, a Delaware corporation (the “Company”), and Direct Transfer, LLC (the “Warrant Agent”).
      
 WHEREAS, pursuant to a registered offering by the Company of Units (the “Offering”), with each Unit consisting of one shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) and one warrant (the “Warrants”) to purchase one share of Common Stock (the “Warrant Shares”) at a price of $5.00 per share (or 100% of the price of each share of common stock sold in the Offering); and
  
 WHEREAS, the Company granted an over-allotment option to purchase up to 15% of the aggregate number of Units sold, including warrants to purchase an additional 450,000 shares of Common Stock (the “Over-Allotment Option”) to the Underwriters; and
  
 WHEREAS, upon the terms and subject to the conditions hereinafter set forth and pursuant to an effective registration statement on Form S-1, as amended (File No. 333-261129) (the “Registration Statement”), and the terms and conditions of the Warrant Certificate, the Company wishes to issue the Warrants in book entry form entitling the respective holders of the Warrants (the “Holders,” which term shall include a Holder’s transferees, successors and assigns and “Holder” shall include, if the Warrants are held in “street name,” a Participant (as defined below) or a designee appointed by such Participant); and
  
 WHEREAS, the shares of Common Stock and Warrants to be issued in connection with the Offering shall be immediately separable and will be issued separately, but will be purchased together in the Offering; and
  
 WHEREAS, the Company wishes the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing so to act, in connection with the issuance, registration, transfer, exchange, exercise and replacement of the Warrants and, in the Warrant Agent’s capacity as the Company’s transfer agent, the delivery of the Warrant Shares (as defined below).
  
 NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto agree as follows:
  
 1. Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company with respect to the Warrants, and the Warrant Agent hereby accepts such appointment and agrees to perform the same in accordance with the express terms and conditions set forth in this Warrant Agreement (and no implied terms or conditions).
  
 2. Warrants.
  
 2.1. Form of Warrants. The Warrants shall be registered securities and shall be evidenced by a global warrant (“Global Warrant”) in the form of Exhibit 1 to this Warrant Agreement, which shall be deposited on behalf of the Company with a custodian for The Depository Trust Company (“DTC”) and registered in the name of Cede & Co., a nominee of DTC. The terms of the Global Warrant are incorporated herein by reference. If DTC subsequently ceases to make its book-entry settlement system available for the Warrants, the Company may instruct the Warrant Agent regarding making other arrangements for book-entry settlement. In the event that the Warrants are not eligible for, or it is no longer necessary to have the Warrants available in, book-entry form, the Company may instruct the Warrant Agent to provide written instructions to DTC to deliver to the Warrant Agent for cancellation the Global Warrant, and the Company shall instruct the Warrant Agent to deliver to DTC separate certificates evidencing Warrants (“Definitive Certificates” and, together with the Global Warrant, “Warrant Certificates”) registered as requested through the DTC system.
  
 2.2. Issuance and Registration of Warrants.
  
 2.2.1. Warrant Register. The Warrant Agent shall maintain books (“Warrant Register”) for the registration of original issuance and the registration of transfer of the Warrants.
   
 	 
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 2.2.2. Issuance of Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall issue the Global Warrant and deliver the Warrants in the DTC book-entry settlement system in accordance with written instructions delivered to the Warrant Agent by the Company. Ownership of security entitlements in the Warrants shall be shown on, and the transfer of such ownership shall be effected through, records maintained (i) by DTC and (ii) by institutions that have accounts with DTC (each, a “Participant”).
  
 2.2.3. Beneficial Owner; Holder. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may deem and treat the person in whose name that Warrant shall be registered on the Warrant Register (the “Holder”) as the absolute owner of such Warrant for purposes of any exercise thereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Warrant Agent or any agent of the Company or the Warrant Agent from giving effect to any written certification, proxy or other authorization furnished by DTC governing the exercise of the rights of a holder of a beneficial interest in any Warrant. The rights of beneficial owners in a Warrant evidenced by the Global Warrant shall be exercised by the Holder or a Participant through the DTC system, except to the extent set forth herein or in the Global Warrant.
  
 2.2.4. Delivery of Warrant Certificate. A Holder has the right to elect at any time or from time to time a Warrant Exchange (as defined below) pursuant to a Warrant Certificate Request Notice (as defined below). Upon written notice by a Holder to the Warrant Agent for the exchange of some or all of such Holder’s Global Warrants for a Warrant Certificate evidencing the same number of Warrants, which request shall be in the form attached hereto as Exhibit 2 (a “Warrant Certificate Request Notice” and the date of delivery of such Warrant Certificate Request Notice by the Holder, the “Warrant Certificate Request Notice Date” and the deemed surrender upon delivery by the Holder of a number of Global Warrants for the same number of Warrants evidenced by a Warrant Certificate, a “Warrant Exchange”), the Warrant Agent shall promptly effect the Warrant Exchange and shall promptly issue and deliver to the Holder a Warrant Certificate for such number of Warrants in the name set forth in the Warrant Certificate Request Notice. Such Warrant Certificate shall be dated the date of issuance of the Warrant Certificate, shall include the initial exercise date of the Warrants, shall be executed by an authorized signatory of the Company and shall be reasonably acceptable in all respects to such Holder. In connection with a Warrant Exchange, the Company agrees to deliver, or to direct the Warrant Agent to deliver, the Warrant Certificate to the Holder within three (3) business days of the Warrant Certificate Request Notice pursuant to the delivery instructions in the Warrant Certificate Request Notice (“Warrant Certificate Delivery Date”). The Company covenants and agrees that, upon the date of delivery of the Warrant Certificate Request Notice, the Holder shall be deemed to be the holder of the Warrant Certificate and, notwithstanding anything to the contrary set forth herein, the Warrant Certificate shall be deemed for all purposes to contain all of the terms and conditions of the Warrants evidenced by such Warrant Certificate and the terms of this Agreement.
  
 2.2.5. Execution. The Warrant Certificates shall be executed on behalf of the Company by any authorized officer of the Company (an “Authorized Officer”), which need not be the same authorized signatory for all of the Warrant Certificates, either manually or by facsimile signature. The Warrant Certificates shall be countersigned by an authorized signatory of the Warrant Agent, which need not be the same signatory for all of the Warrant Certificates, and no Warrant Certificate shall be valid for any purpose unless so countersigned. In case any Authorized Officer of the Company that signed any of the Warrant Certificates ceases to be an Authorized Officer of the Company before countersignature by the Warrant Agent and issuance and delivery by the Company, such Warrant Certificates, nevertheless, may be countersigned by the Warrant Agent, issued and delivered with the same force and effect as though the person who signed such Warrant Certificates had not ceased to be such officer of the Company; and any Warrant Certificate may be signed on behalf of the Company by any person who, at the actual date of the execution of such Warrant Certificate, shall be an Authorized Officer of the Company authorized to sign such Warrant Certificate, although at the date of the execution of this Warrant Agreement any such person was not such an Authorized Officer.
  
 2.2.6. Registration of Transfer. At any time at or prior to the Expiration Date (as defined below), a transfer of any Warrants may be registered and any Warrant Certificate or Warrant Certificates may be split up, combined or exchanged for another Warrant Certificate or Warrant Certificates evidencing the same number of Warrants as the Warrant Certificate or Warrant Certificates surrendered. Any Holder desiring to register the transfer of Warrants or to split up, combine or exchange any Warrant Certificate shall make such request in writing delivered to the Warrant Agent, and shall surrender to the Warrant Agent the Warrant Certificate or Warrant Certificates evidencing the Warrants the transfer of which is to be registered or that is or are to be split up, combined or exchanged and, in the case of registration of transfer, shall provide a signature guarantee. Thereupon, the Warrant Agent shall countersign and deliver to the person entitled thereto a Warrant Certificate or Warrant Certificates, as the case may be, as so requested. The Company and the Warrant Agent may require payment, by the Holder requesting a registration of transfer of Warrants or a split-up, combination or exchange of a Warrant Certificate (but, for purposes of clarity, not upon the exercise of the Warrants and issuance of underlying shares of Common Stock (the “Warrant Shares”) to the Holder), of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with such registration of transfer, split-up, combination or exchange, together with reimbursement to the Company and the Warrant Agent of all reasonable expenses incidental thereto.
   
 	 
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 2.2.7. Loss, Theft and Mutilation of Warrant Certificates. Upon receipt by the Company and the Warrant Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Warrant Certificate, and, in case of loss, theft or destruction, of indemnity or security in customary form and amount, and reimbursement to the Company and the Warrant Agent of all reasonable expenses incidental thereto, and upon surrender to the Warrant Agent and cancellation of the Warrant Certificate if mutilated, the Warrant Agent shall, on behalf of the Company, countersign and deliver a new Warrant Certificate of like tenor to the Holder in lieu of the Warrant Certificate so lost, stolen, destroyed or mutilated. The Warrant Agent may charge the Holder an administrative fee for processing the replacement of lost Warrant Certificates. The Warrant Agent may receive compensation from the surety companies or surety agents for administrative services provided to them.
  
 2.2.8. Proxies. The Holder of a Warrant may grant proxies or otherwise authorize any person, including the Participants and beneficial holders that may own interests through the Participants, to take any action that a Holder is entitled to take under this Agreement or the Warrants; provided, however, that at all times that Warrants are evidenced by a Global Warrant, exercise of those Warrants shall be effected on their behalf by Participants through DTC in accordance the procedures administered by DTC.
  
 3. Terms and Exercise of Warrants.
  
 3.1. Exercise Price. Each Warrant shall entitle the Holder, subject to the provisions of the applicable Warrant Certificate and of this Warrant Agreement, to purchase from the Company the number of shares of Common Stock stated therein, at the price of $5.00 per whole share, subject to the subsequent adjustments provided in the Global Warrant. The term “Exercise Price” as used in this Warrant Agreement refers to the price per share at which shares of Common Stock may be purchased at the time a Warrant is exercised.
  
 3.2. Duration of Warrants. A Warrant may be exercised only during the period (“Exercise Period”) commencing on the date of issuance and ending on the Termination Date. For purposes of this Warrant Agreement, the “Termination Date” shall have the meaning set forth in the Global Warrant. Each Warrant not exercised on or before the Termination Date shall become void, and all rights thereunder and all rights in respect thereof under this Agreement shall cease at the close of business on the Termination Date, provided however, that for any Warrants that have not been exercised on or prior to the Termination Date, the Holder shall be issued one-tenth (1/10th) of one share of Common Stock (the “Automatic Issuance”) within five (5) business days after the Termination Date. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant, pursuant to this Section.
  
 3.3. Exercise of Warrants.
  
 3.3.1. Exercise. Subject to the provisions of the Global Warrant, a Holder (or a Participant or a designee of a Participant acting on behalf of a Holder) may exercise Warrants by delivering to the Warrant Agent, not later than 5:00 P.M., Eastern Standard Time, on any business day during the Exercise Period a notice of exercise of the Warrants to be exercised (i) in the form attached to the Global Warrant or (ii) via an electronic warrant exercise through the DTC system (each, an “Election to Purchase”). All other requirements for the exercise of a Warrant shall be as set forth in the Warrant. 
  
 3.3.2. The Warrant Agent shall, by 5:00 p.m., New York City time, on the Trading Day following the exercise date of any Warrant, advise the Company, the transfer agent and registrar for the Company’s Common Stock, in respect of (i) the number of Warrant Shares indicated on the Notice of Exercise as issuable upon such exercise with respect to such exercised Warrants, (ii) the instructions of the Holder or Participant, as the case may be, provided to the Warrant Agent with respect to the delivery of the Warrant Shares and the number of Warrants that remain outstanding after such exercise and (iii) such other information as the Company or such transfer agent and registrar shall reasonably request. The Company shall issue the Warrant Shares in compliance with the terms of the Warrant.
   
 	 
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 3.3.3. Valid Issuance. All Warrant Shares issued by the Company upon the proper exercise of a Warrant in conformity with this Warrant Agreement shall be validly issued, fully paid and non-assessable.
  
 3.3.4. No Fractional Exercise. Notwithstanding any provision contained in this Warrant Agreement to the contrary, no fractional shares or scrip representing fractional shares shall be issued upon the exercise of the 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.
  
 3.3.5. No Transfer Taxes. The Company shall not be required to pay any stamp or other tax or governmental charge required to be paid in connection with any transfer involved in the issue of the Warrant Shares upon the exercise of Warrants; and in the event that any such transfer is involved, the Company shall not be required to issue or deliver any Warrant Shares until such tax or other charge shall have been paid or it has been established to the Company’s satisfaction that no such tax or other charge is due.
  
 3.3.6. Date of Issuance. The Company will treat an exercising Holder as a beneficial owner of the Warrant Shares as of the exercise date, and for purposes of Regulation SHO, a holder whose interest in this Warrant is a beneficial interest in certificate(s) representing this Warrant held in book-entry form through DTC shall be deemed to have exercised its interest in this Warrant upon instructing its broker that is a DTC participant to exercise its interest in this Warrant, except that, if the exercise date is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the open of business on the next succeeding date on which the stock transfer books are open.
  
 4. Adjustments. Upon every adjustment of the Exercise Price or the number of Warrant Shares issuable upon exercise of a Warrant, the Company shall give written notice thereof to the Warrant Agent, which notice shall state the Exercise Price resulting from such adjustment and the increase or decrease, if any, in the number of Warrant Shares purchasable at such price upon the exercise of a Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence of any event specified in Section 3 of the Warrant, then, in any such event, the Company shall give written notice to the Warrant Agent. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event. The Warrant Agent shall be entitled to rely conclusively on, and shall be fully protected in relying on, any certificate, notice or instructions provided by the Company with respect to any adjustment of the Exercise Price or the number of shares issuable upon exercise of a Warrant, or any related matter, and the Warrant Agent shall not be liable for any action taken, suffered or omitted to be taken by it in accordance with any such certificate, notice or instructions or pursuant to this Warrant Agreement. The Warrant Agent shall not be deemed to have knowledge of any such adjustment unless and until it shall have received written notice thereof from the Company.
  
 5. Restrictive Legends; Fractional Warrants. In the event that a Warrant Certificate surrendered for transfer bears a restrictive legend, the Warrant Agent shall not register that transfer until the Warrant Agent has received an opinion of counsel for the Company stating that such transfer may be made and indicating whether the Warrants must also bear a restrictive legend upon that transfer. The Warrant Agent shall not be required to effect any registration of transfer or exchange which will result in the transfer of or delivery of a Warrant Certificate for a fraction of a Warrant.
  
 6. Other Provisions Relating to Rights of Holders of Warrants.
  
 6.1. No Rights as Stockholder. Except as otherwise specifically provided herein, a Holder, solely in its capacity as a holder of Warrants, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant Agreement be construed to confer upon a Holder, solely in its capacity as the registered holder of Warrants, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of share capital, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights or rights to participate in new issues of shares, or otherwise, prior to the issuance to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of Warrants.
   
 	 
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 6.2. Reservation of Common Stock. The Company shall at all times reserve and keep available a number of its authorized but unissued shares of Common Stock that will be sufficient to permit the exercise in full of all outstanding Warrants issued pursuant to this Warrant Agreement.
  
 7. Concerning the Warrant Agent and Other Matters.
  
 7.1. Any instructions given to the Warrant Agent orally, as permitted by any provision of this Warrant Agreement, shall be confirmed in writing by the Company as soon as practicable. The Warrant Agent shall not be liable or responsible and shall be fully authorized and protected for acting, or failing to act, in accordance with any oral instructions which do not conform with the written confirmation received in accordance with this Section 7.1.
  
 7.2. (a) Whether or not any Warrants are exercised, for the Warrant Agent’s services as agent for the Company hereunder, the Company shall pay to the Warrant Agent such fees as may be separately agreed between the Company and Warrant Agent and the Warrant Agent’s reasonable out of pocket expenses in connection with this Warrant Agreement, including, without limitation, the fees and expenses of the Warrant Agent’s counsel. While the Warrant Agent endeavors to maintain out-of-pocket charges (both internal and external) at competitive rates, these charges may not reflect actual out-of-pocket costs, and may include handling charges to cover internal processing and use of the Warrant Agent’s billing systems. (b) All amounts owed by the Company to the Warrant Agent under this Warrant Agreement are due within 30 days of the invoice date. Delinquent payments are subject to a late payment charge of one and one-half percent (1.5%) per month commencing 45 days from the invoice date. The Company agrees to reimburse the Warrant Agent for any attorney’s fees and any other costs associated with collecting delinquent payments. (c) No provision of this Warrant Agreement shall require Warrant Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties under this Warrant Agreement or in the exercise of its rights.
  
 7.3. As agent for the Company hereunder the Warrant Agent: (a) shall have no duties or obligations other than those specifically set forth herein or as may subsequently be agreed to in writing by the Warrant Agent and the Company; (b) shall be regarded as making no representations and having no responsibilities as to the validity, sufficiency, value, or genuineness of the Warrants or any Warrant Shares; (c) shall not be obligated to take any legal action hereunder; if, however, the Warrant Agent determines to take any legal action hereunder, and where the taking of such action might, in its judgment, subject or expose it to any expense or liability it shall not be required to act unless it has been furnished with an indemnity reasonably satisfactory to it; (d) may rely on and shall be fully authorized and protected in acting or failing to act upon any certificate, instrument, opinion, notice, letter, telegram, telex, facsimile transmission or other document or security delivered to the Warrant Agent and believed by it to be genuine and to have been signed by the proper party or parties; (e) shall not be liable or responsible for any recital or statement contained in the Registration Statement or any other documents relating thereto; (f) shall not be liable or responsible for any failure on the part of the Company to comply with any of its covenants and obligations relating to the Warrants, including without limitation obligations under applicable securities laws; (g) may rely on and shall be fully authorized and protected in acting or failing to act upon the written, telephonic or oral instructions with respect to any matter relating to its duties as Warrant Agent covered by this Warrant Agreement (or supplementing or qualifying any such actions) of officers of the Company, and is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from the Company or counsel to the Company, and may apply to the Company, for advice or instructions in connection with the Warrant Agent’s duties hereunder, and the Warrant Agent shall not be liable for any delay in acting while waiting for those instructions; any applications by the Warrant Agent for written instructions from the Company may, at the option of the Agent, set forth in writing any action proposed to be taken or omitted by the Warrant Agent under this Warrant Agreement and the date on or after which such action shall be taken or such omission shall be effective; the Warrant Agent shall not be liable for any action taken by, or omission of, the Warrant Agent in accordance with a proposal included in such application on or after the date specified in such application (which date shall not be less than five business days after the date such application is sent to the Company, unless the Company shall have consented in writing to any earlier date) unless prior to taking any such action, the Warrant Agent shall have received written instructions in response to such application specifying the action to be taken or omitted; (h) may consult with counsel satisfactory to the Warrant Agent, including its in-house counsel, and the advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered, or omitted by it hereunder in good faith and in accordance with the advice of such counsel; (i) may perform any of its duties hereunder either directly or by or through nominees, correspondents, designees, or subagents, and it shall not be liable or responsible for any misconduct or negligence on the part of any nominee, correspondent, designee, or subagent appointed with reasonable care by it in connection with this Warrant Agreement; (j) is not authorized, and shall have no obligation, to pay any brokers, dealers, or soliciting fees to any person; and (k) shall not be required hereunder to comply with the laws or regulations of any country other than the United States of America or any political subdivision thereof.
   
 	 
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 7.4. (a) In the absence of gross negligence or willful or illegal misconduct on its part, the Warrant Agent shall not be liable for any action taken, suffered, or omitted by it or for any error of judgment made by it in the performance of its duties under this Warrant Agreement. Anything in this Warrant Agreement to the contrary notwithstanding, in no event shall Warrant Agent be liable for special, indirect, incidental, consequential or punitive losses or damages of any kind whatsoever (including but not limited to lost profits), even if the Warrant Agent has been advised of the possibility of such losses or damages and regardless of the form of action. Any liability of the Warrant Agent will be limited in the aggregate to the amount of fees paid by the Company hereunder. The Warrant Agent shall not be liable for any failures, delays or losses, arising directly or indirectly out of conditions beyond its reasonable control including, but not limited to, acts of government, exchange or market ruling, suspension of trading, work stoppages or labor disputes, fires, civil disobedience, riots, rebellions, storms, electrical or mechanical failure, computer hardware or software failure, communications facilities failures including telephone failure, war, terrorism, insurrection, earthquakes, floods, acts of God or similar occurrences. (b) In the event any question or dispute arises with respect to the proper interpretation of the Warrants or the Warrant Agent’s duties under this Warrant Agreement or the rights of the Company or of any Holder, the Warrant Agent shall not be required to act and shall not be held liable or responsible for its refusal to act until the question or dispute has been judicially settled (and, if appropriate, it may file a suit in interpleader or for a declaratory judgment for such purpose) by final judgment rendered by a court of competent jurisdiction, binding on all persons interested in the matter which is no longer subject to review or appeal, or settled by a written document in form and substance satisfactory to Warrant Agent and executed by the Company and each such Holder. In addition, the Warrant Agent may require for such purpose, but shall not be obligated to require, the execution of such written settlement by all the Holders and all other persons that may have an interest in the settlement.
  
 7.5. The Company covenants to indemnify the Warrant Agent and hold it harmless from and against any loss, liability, claim or expense (“Loss”) arising out of or in connection with the Warrant Agent’s duties under this Warrant Agreement, including the costs and expenses of defending itself against any Loss, unless such Loss shall have been determined by a court of competent jurisdiction to be a result of the Warrant Agent’s gross negligence or willful misconduct.
  
 7.6. Unless terminated earlier by the parties hereto, this Agreement shall terminate 30 days after the earlier of the Expiration Date and the date on which no Warrants remain outstanding (the “Termination Date”). On the business day following the Termination Date, the Agent shall deliver to the Company any entitlements, if any, held by the Warrant Agent under this Warrant Agreement. The Agent’s right to be reimbursed for fees, charges and reasonable out-of-pocket expenses as provided in this Section 8 shall survive the termination of this Warrant Agreement.
  
 7.7. If any provision of this Warrant Agreement shall be held illegal, invalid, or unenforceable by any court, this Warrant Agreement shall be construed and enforced as if such provision had not been contained herein and shall be deemed an Agreement among the parties to it to the full extent permitted by applicable law.
  
 7.8. The Company represents and warrants that: (a) it is duly incorporated and validly existing under the laws of its jurisdiction of incorporation; (b) the offer and sale of the Warrants and the execution, delivery and performance of all transactions contemplated thereby (including this Warrant Agreement) have been duly authorized by all necessary corporate action and will not result in a breach of or constitute a default under the articles of association, bylaws or any similar document of the Company or any indenture, agreement or instrument to which it is a party or is bound; (c) this Warrant Agreement has been duly executed and delivered by the Company and constitutes the legal, valid, binding and enforceable obligation of the Company; (d) the Warrants will comply in all material respects with all applicable requirements of law; and (e) to the best of its knowledge, there is no litigation pending or threatened as of the date hereof in connection with the offering of the Warrants.
   
 	 
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 7.9. In the event of inconsistency between this Warrant Agreement and the descriptions in the Warrant, as it may from time to time be amended, the terms of this Warrant shall control.
  
 7.10. Set forth in Exhibit 3 hereto is a list of the names and specimen signatures of the persons authorized to act for the Company under this Warrant Agreement (the “Authorized Representatives”). The Company shall, from time to time, certify to you the names and signatures of any other persons authorized to act for the Company under this Warrant Agreement.
  
 7.11. Except as expressly set forth elsewhere in this Warrant Agreement, all notices, instructions and communications under this Agreement shall be in writing, shall be effective upon receipt and shall be addressed, if to the Company, to its address set forth beneath its signature to this Agreement, or, if to the Warrant Agent, to Direct Transfer, LLC, 1 Glenwood Ave., Suite 1001, Raleigh, North Carolina 27603, or to such other address of which a party hereto has notified the other party.
  
 7.12. (a) This Warrant Agreement shall be governed by and construed in accordance with the laws of the State of New York. All actions and proceedings relating to or arising from, directly or indirectly, this Warrant Agreement, other than those arising under the Securities Act or the Exchange Act, may be litigated in courts located within the Borough of Manhattan in the City and State of New York. The Company hereby submits to the personal jurisdiction of such courts and consents that any service of process may be made by certified or registered mail, return receipt requested, directed to the Company at its address last specified for notices hereunder. Each of the parties hereto hereby waives the right to a trial by jury in any action or proceeding arising out of or relating to this Warrant Agreement other than those arising under the Securities Act or the Exchange Act. (b) This Warrant Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto. This Warrant Agreement may not be assigned, or otherwise transferred, in whole or in part, by either party without the prior written consent of the other party, which the other party will not unreasonably withhold, condition or delay; except that (i) consent is not required for an assignment or delegation of duties by Warrant Agent to any affiliate of Warrant Agent and (ii) any reorganization, merger, consolidation, sale of assets or other form of business combination by Warrant Agent or the Company shall not be deemed to constitute an assignment of this Warrant Agreement. (c) No provision of this Warrant Agreement may be amended, modified or waived, except in a written document signed by both parties. The Company and the Warrant Agent may amend or supplement this Warrant Agreement without the consent of any Holder for the purpose of curing any ambiguity, or curing, correcting or supplementing any defective provision contained herein or adding or changing any other provisions with respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties determine, in good faith, shall not adversely affect the interest of the Holders. All other amendments and supplements shall require the vote or written consent of Holders of at least 50.1% of the then outstanding Warrants, provided that adjustments may be made to the Warrant terms and rights in accordance with Section 4 without the consent of the Holders.
  
 7.13. Payment of Taxes. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company or the Warrant Agent in respect of the issuance or delivery of Warrant Shares upon the exercise of Warrants, but the Company may require the Holders to pay any transfer taxes in respect of the Warrants or such shares. The Warrant Agent may refrain from registering any transfer of Warrants or any delivery of any Warrant Shares unless or until the persons requesting the registration or issuance shall have paid to the Warrant Agent for the account of the Company the amount of such tax or charge, if any, or shall have established to the reasonable satisfaction of the Company and the Warrant Agent that such tax or charge, if any, has been paid.
  
                 7.14. Resignation of Warrant Agent.
  
 7.14.1. Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged from all further duties and liabilities hereunder after giving thirty (30) days’ notice in writing to the Company, or such shorter period of time agreed to by the Company. The Company may terminate the services of the Warrant Agent, or any successor Warrant Agent, after giving thirty (30) days’ notice in writing to the Warrant Agent or successor Warrant Agent, or such shorter period of time as agreed. If the office of the Warrant Agent becomes vacant by resignation, termination or incapacity to act or otherwise, the Company shall appoint in writing a successor Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period of 30 days after it has been notified in writing of such resignation or incapacity by the Warrant Agent, then the Warrant Agent or any Holder may apply to any court of competent jurisdiction for the appointment of a successor Warrant Agent at the Company’s cost. Pending appointment of a successor to such Warrant Agent, either by the Company or by such a court, the duties of the Warrant Agent shall be carried out by the Company. Any successor Warrant Agent (but not including the initial Warrant Agent), whether appointed by the Company or by such court, shall be a person organized and existing under the laws of any state of the United States of America, in good standing, and authorized under such laws to exercise corporate trust powers and subject to supervision or examination by federal or state authority. After appointment, any successor Warrant Agent shall be vested with all the authority, powers, rights, immunities, duties, and obligations of its predecessor Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without any further act or deed, and except for executing and delivering documents as provided in the sentence that follows, the predecessor Warrant Agent shall have no further duties, obligations, responsibilities or liabilities hereunder, but shall be entitled to all rights that survive the termination of this Warrant Agreement and the resignation or removal of the Warrant Agent, including but not limited to its right to indemnity hereunder. If for any reason it becomes necessary or appropriate or at the request of the Company, the predecessor Warrant Agent shall execute and deliver, at the expense of the Company, an instrument transferring to such successor Warrant Agent all the authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon request of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant Agent all such authority, powers, rights, immunities, duties, and obligations.
   
 	 
	7
	

	 

  
 7.14.2. Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof to the predecessor Warrant Agent and the transfer agent for the Common Stock not later than the effective date of any such appointment.
  
 7.14.3. Merger or Consolidation of Warrant Agent. Any person into which the Warrant Agent may be merged or converted or with which it may be consolidated or any person resulting from any merger, conversion or consolidation to which the Warrant Agent shall be a party or any person succeeding to the shareowner services business of the Warrant Agent or any successor Warrant Agent shall be the successor Warrant Agent under this Warrant Agreement, without any further act or deed. For purposes of this Warrant Agreement, “person” shall mean any individual, firm, corporation, partnership, limited liability company, joint venture, association, trust or other entity, and shall include any successor (by merger or otherwise) thereof or thereto.
  
 8. Miscellaneous Provisions.
  
 8.1. Persons Having Rights under this Warrant Agreement. Nothing in this Warrant Agreement expressed and nothing that may be implied from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto any right, remedy, or claim under or by reason of this Warrant Agreement or of any covenant, condition, stipulation, promise, or agreement hereof.
  
 8.2. Examination of the Warrant Agreement. A copy of this Warrant Agreement shall be available at all reasonable times at the office of the Warrant Agent designated for such purpose for inspection by any Holder. Prior to such inspection, the Warrant Agent may require any such holder to provide reasonable evidence of its interest in the Warrants.
  
 8.3. Counterparts. This Warrant Agreement may be executed in any number of original, facsimile or electronic counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.
  
 8.4. Effect of Headings. The Section headings herein are for convenience only and are not part of this Warrant Agreement and shall not affect the interpretation thereof.
  
 9. Certain Definitions. As used herein, the following terms shall have the following meanings:
  
 (a) “Trading Day” means any day on which the Common Stock is traded on the Trading Market, or, if the Trading Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market in the United States on which the Common Stock is then traded.
  
 (b) “Trading Market” means NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange.
  
 [Signature Page Follows]
   
 	 
	8
	

	 

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

	  

	 By: 
	 Wayne Tupuola
	
	  
	 Name: Wayne Tupola
	  

	  
	 Title: President
	  

  
 	 DIRECT TRANSFER, LLC

	  
	  
		
	 By: 
	  
	 
	  
	 Name: 
	  
	 
	  
	 Title: 
	  
	 

   
 	 
	9
	

	 

  
 Exhibit 1
  
 Form of Warrant Certificate
   
 	 
	10
	

	 

  
 Exhibit 2
  
 Form of Global Warrant Request Notice
  
 GLOBAL WARRANT REQUEST NOTICE
  
 To: DIRECT TRANSFER, LLC, as Warrant Agent for LASER PHOTONICS CORPORATION (the “Company”)
  
 The undersigned Holder of Common Stock Purchase Warrants (“Warrants”) in the form of Warrants Certificates issued by the Company hereby elects to receive a Global Warrant evidencing the Warrants held by the Holder as specified below:
  
 	 1.
	 Name of Holder of Warrants in form of Warrant Certificates: _____________________________

	  
	  

	 2.
	 Name of Holder in Global Warrant (if different from name of Holder of Warrants in form of Warrant Certificates): ________________________________

	  
	  

	 3.
	 Number of Warrants in name of Holder in form of Warrant Certificates: ___________________

	  
	  

	 4.
	 Number of Warrants for which Global Warrant shall be issued: __________________

	  
	  

	 5.
	 Number of Warrants in name of Holder in form of Warrant Certificates after issuance of Global Warrant, if any: ___________

	  
	  

	 6.
	 Global Warrant shall be delivered to the following address:

	  
	  

	  
	 ______________________________

	  
	  

	  
	 ______________________________

	  
	  

	  
	  

	  
	 ______________________________

     
 The undersigned hereby acknowledges and agrees that, in connection with this Global Warrant Exchange and the issuance of the Global Warrant, the Holder is deemed to have surrendered the number of Warrants in form of Warrant Certificates in the name of the Holder equal to the number of Warrants evidenced by the Global Warrant.
  
 [SIGNATURE OF HOLDER]
  
 Name of Investing Entity: ____________________________________________________
  
 Signature of Authorized Signatory of Investing Entity: ______________________________
  
 Name of Authorized Signatory: ________________________________________________
  
 Title of Authorized Signatory: _________________________________________________
  
 Date: _______________________________________________________________
   
 	 
	11
	

	 

  
 Exhibit 3
  
 Authorized Representatives
  
 	 Name 
	 Specimen Signature
	  

	  
	  
	  

	 Wayne Tupuola 
	  

   
 	 
	12
	

	 

  
 COMMON STOCK PURCHASE WARRANT
  
 LASER PHOTONICS CORPORATION
  
 Warrant Shares: [●] Initial Exercise Date: [●]1, 2022
  
 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 date hereof (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on [●], 20272 (the “Termination Date”) but not thereafter, to subscribe for and purchase from Laser Photonics Corporation, a corporation organized under the laws of the State of Delaware (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). This Warrant shall initially be issued and maintained in the form of a security held in book-entry form and the Depository Trust Company or its nominee (“DTC”) shall initially be the sole registered holder of this Warrant, subject to a Holder’s right to elect to receive a Warrant in certificated form pursuant to the terms of the Warrant Agency Agreement, in which case this sentence shall not apply.
  
 Section 1. Definitions. In addition to the terms defined elsewhere in this Warrant, the following terms have the meanings indicated in this Section 1:
  
 “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.
  
 “Bid Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.
  
 “Board of Directors” means the board of directors of the Company.
  
 1 NTD: The Initial Exercise Date will be the IPO closing date.
 2 NTD: The Termination Date will be 5 years post the Initial Exercise Date.
   
 	 
	13
	

	 

  
 “Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.
  
 “Commission” means the United States Securities and Exchange Commission.
  
 “Common Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.
  
 “Common Stock Equivalents” means any securities of the Company or its subsidiary which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
  
 “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.
  
 “Registration Statement” means the Company’s registration statement on Form S-1, as amended (File No. 333-261129).
  
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
  
 “Trading Day” means a day on which the Common Stock is traded on a Trading Market.
  
 “Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing).
  
 “Transfer Agent” means Direct Transfer, LLC, the current transfer agent of the Company, with a mailing address of [●] and a facsimile number of [●], and any successor transfer agent of the Company.
  
 “Underwriting Agreement” means the underwriting agreement, dated as of [●], 2022, among the Company and Alexander Capital, L.P. as representative of the underwriters named therein, as amended, modified or supplemented from time to time in accordance with its terms.
  
 “VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.
   
 	 
	14
	

	 

   
 “Warrant Agency Agreement” means that certain warrant agency agreement, dated [●], 2022, between the Company and the Warrant Agent.
  
 “Warrant Agent” means the Transfer Agent and any successor warrant agent of the Company.
  
 “Warrants” means this Warrant and other Common Stock purchase warrants issued by the Company pursuant to the Registration Statement.
  
 Section 2. Exercise.
  
 a) Exercise of Warrant. 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 of a duly executed facsimile copy (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice of Exercise”). Within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) 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. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, 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 on which 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 within one (1) Business Day of receipt 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.
  
 Notwithstanding the foregoing in this Section 2(a), a holder whose interest in this Warrant is a beneficial interest in certificate(s) representing this Warrant held in book-entry form through DTC (or another established clearing corporation performing similar functions), shall effect exercises made pursuant to this Section 2(a) by delivering to DTC (or such other clearing corporation, as applicable) the appropriate instruction form for exercise, complying with the procedures to effect exercise that are required by DTC (or such other clearing corporation, as applicable), subject to a Holder’s right to elect to receive a Definitive Warrant pursuant to the terms of the Warrant Agency Agreement, in which case this sentence shall not apply.
  
 b) Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $5.00, subject to adjustment hereunder (the “Exercise Price”).
   
 	 
	15
	

	 

   
 c) Cashless Exercise. If at the time of exercise hereof there is no effective registration statement registering, or the prospectus contained therein is not available for the issuance of all of the Warrant Shares to the Holder, then this Warrant may, in the sole discretion of the Holder, also be exercised, 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)
	 = as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(68) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;

	  
	  
	  

	  
	 (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.

   
 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 registered characteristics of the Warrants being exercised. The Company agrees not to take any position contrary to this Section 2(c).
  
 Notwithstanding anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c).
  
 	 
	16
	

	 

   
 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 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 Holder or (B) this Warrant is being exercised via cashless exercise, 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 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. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such 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. 
  
 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 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.
  
 iv. Compensation for Buy-In on Failure to Timely Deliver Warrant Shares 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 the Warrant Shares in accordance with the provisions of Section 2(d)(i) above 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 shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.
   
 	 
	17
	

	 

  
  
 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 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.
  
 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 (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 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 or Attribution Parties. 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 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 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 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% (or, upon election by a Holder prior to the issuance of any Warrants, 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, upon notice to the Company, may increase or decrease 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 increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. For purposes of clarity, the shares of Common Stock issuable pursuant to the terms of this Warrant in excess of the Beneficial Ownership Limitation shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to exercise this Warrant pursuant to this paragraph shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination of exercisability. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 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), (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. 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, 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).
   
 	 
	20
	

	 

  
  
 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. 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 of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction; provided, however, if the Fundamental Transaction is not within the Company’s control, including not approved by the Company’s Board of Directors, the Holder shall only be entitled to receive from the Company or any Successor Entity, as of the date of consummation of such Fundamental Transaction, the same type or form of consideration (and in the same proportion), at the Black Scholes Value of the unexercised portion of this Warrant, that is being offered and paid to the holders of Common Stock of the Company in connection with the Fundamental Transaction, whether that consideration be in the form of cash, stock or any combination thereof, or whether the holders of Common Stock are given the choice to receive from among alternative forms of consideration in connection with the Fundamental Transaction. “Black Scholes Value” means the value of this Warrant based on the Black and 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 non-cash 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). 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 in accordance with the provisions of this Section 3(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 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 with the same effect as if such Successor Entity had been named as the Company herein.
  
 	 
	21
	

	 

   
 e) 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.
  
 f) 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 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 its subsidiary, 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 4. Transfer of Warrant.
  
 a) Transferability. 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 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.
   
 	 
	22
	

	 

   
 c) Warrant Register. The Warrant Agent (or, in the event a Holder elects to receive a Definitive Certificate (as defined in the Warrant Agency Agreement), the Company) shall register this Warrant, upon records to be maintained by the Warrant Agent (or, in the event a Holder elects to receive a Definitive Certificate, the Company) for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company and the Warrant Agent 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), except as expressly set forth in Section 3.
  
 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, 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 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).
   
 	 
	23
	

	 

   
 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, intentionally 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 use commercially reasonable efforts to 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 lawful 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 are, in the opinion of legal counsel to the Company, necessary to enable the Company to perform its obligations under this Warrant.
  
 Before taking any action that would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company will obtain all such authorizations or exemptions thereof, or consents thereto, as are, in the opinion of legal counsel to the Company, necessary from any public regulatory body or bodies having jurisdiction thereof.
  
 e) Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Warrant (whether brought against a party hereto or their respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York other than for claims arising under the Securities Act or Exchange Act. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof 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. If either party shall commence an action, suit or proceeding to enforce any provisions of this Warrant, the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for their reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.
  
 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.
   
 	 
	24
	

	 

   
 h) Notices. Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation, any Notice of Exercise, shall be in writing and delivered personally, or e-mail, or sent by a nationally recognized overnight courier service, addressed to the Company, at Laser Photonics Corporation, 1101 N. Keller Rd., Suite G, Orlando, Florida 32810, Attention: Wayne Tupuola, email address: wtupuola@laserphotonics.com, or such other email address or address as the Company may specify for such purposes by notice to the Holders. Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile or e-mail, or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number, e-mail address or address of such Holder appearing on the books of the Company. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or via e-mail at the e-mail address set forth in this Section prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or via e-mail at the e-mail address set forth in this Section on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or its subsidiary, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.
  
 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. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company, on the one hand, and the Holder or the beneficial owner of this Warrant, on the other hand.
  
 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.
   
 	 
	25
	

	 

   
 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.
  
 o) Warrant Agency Agreement. If this Warrant is held in global form through DTC (or any successor depositary), this Warrant is issued subject to the Warrant Agency Agreement. To the extent any provision of this Warrant conflicts with the express provisions of the Warrant Agency Agreement, the provisions of this Warrant shall govern and be controlling.
  
 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.
  
 	  
	 LASER PHOTONICS CORPORATION
	  

	  
	  
	  
	  

	  
	 By:
	  
	  

	  
	  
	 Name: Wayne Tupuola
	  

	  
	  
	 Title: President
	  

  
 	 
	26
	

	 

  
 NOTICE OF EXERCISE
  
 	 TO:
	 Laser Photonics 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 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:
  
 _______________________________
  
 _______________________________
  
 _______________________________
  
 [SIGNATURE OF HOLDER]
  
 Name of Investing Entity: ________________________________________________________________________
 Signature of Authorized Signatory of Investing Entity: _________________________________________________
 Name of Authorized Signatory: ___________________________________________________________________
 Title of Authorized Signatory: ____________________________________________________________________
 Date: ________________________________________________________________________________________
   
 	 
	27
	

	 

  
 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:
	  
	  

	  
	 (Please Print)
	  

	  
	  
	  

	 Address:
	  
	  

	  
	 (Please Print)
	  

	  
	  
	  

	 Phone Number: 
	  
	  

	  
	  
	  

	 Email Address: 
	  
	  

	  
	  
	  

	 Dated: _______________ __, ______
	  
	  

	  
	  
	  

	 Holder’s Signature:______________________________________
	  
	  

	  
	  
	  

	 Holder’s Address:_______________________________________
	  
	  

   
 	 
	28Exhibit
4.1

 

1847
HOLDINGS LLC

 

SHARE
DESIGNATION 

OF 

SERIES B SENIOR CONVERTIBLE
PREFERRED SHARES

(no par value per
share)

 

The
undersigned duly authorized officer of 1847 Holdings LLC, a Delaware limited liability company (the “Company”), hereby
certifies that, pursuant to the authority conferred upon the board of directors of the Company (the “Board”) by Section
3.3(b) of the Second Amended and Restated Operating Agreement of the Company, dated January 19, 2018 (as such may be amended, modified
or restated from time to time, the “Operating Agreement”), the Board on February 15, 2022 adopted a resolution which
creates a series of preferred shares of the Company as follows:

 

RESOLVED,
that pursuant to the authority vested in the Board in accordance with the provisions Section 3.3(b) of the Operating Agreement, a series
of preferred shares is hereby created, and that the designation and number of shares of such series and the voting powers, designations,
preferences and relative, participating, optional or other rights and the qualifications, limitations and restrictions thereof, are as
set forth in the Operating Agreement and this Share Designation, as it may be amended from time to time, as follows:

 

1.
Definitions. For the purposes hereof, the following terms shall have the following meanings:

 

“Allocation
Shares” means any of the Company’s Allocation Shares as defined in the Operating Agreement.

 

“Business
Day” means a day on which the New York Stock Exchange is open for trading and which is not a Saturday, Sunday or other day
on which banks in New York City are authorized or required by law to close.

 

“Common
Shares” means any of the Company’s Common Shares as defined in the Operating Agreement.

 

“Event
of Default” means the happening of any of the following events:

 

(a)
Any representation or warranty made or deemed made by the Company in the Securities Purchase Agreement or by the Company or any of its
subsidiaries in any other Related Agreement to which it is a party or any certificate or document delivered by it pursuant hereto or
thereto shall prove to have been false or misleading in any material respect when so made or deemed made;

 

(b)
The Company shall fail to declare or pay any dividends in accordance with Section 4 hereof or any failure or default shall be made in
the payment or distribution on any Series B Preferred Shares or any other shares, when and as the same shall become due and payable,
whether at the due date thereof or at a date fixed for prepayment thereof or by acceleration thereof or otherwise, in each case for any
reason whatsoever and, solely with respect to any failure to declare or pay any dividends in accordance with Section 4, such failure
shall continue unremedied for a period of five (5) Business Days;

 

(c)
Any failure or default shall be made in the due observance or performance by the Company or any of its subsidiaries of any covenant,
condition or agreement contained herein or in any other Related Agreement to which it is a party and such failure or default shall continue
unremedied for a period of forty-five (45) days after the notice thereof;

 

     

     

    

 

(d)
The Company or any subsidiary of the Company shall make an assignment for the benefit of creditors, or apply for or consent to the appointment
of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise
be appointed;

 

(e)
(i) Any unpaid money judgment, writ or similar process shall be entered or filed against the Company or any subsidiary of the Company
or any of its property or other assets for more than $100,000, and shall remain unvacated, unbonded or unstayed for a period of forty
five (45) days unless otherwise consented to by the holders of the Requisite Holders; or (ii) the settlement of any claim or litigation,
creating an obligation on the Company in amount over $100,000 that remains unpaid after forty-five (45) days;

 

(f)
Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any
bankruptcy law or any law for the relief of debtors shall be instituted by or against the Company or any subsidiary of the Company; provided
that with respect to any such proceedings that are involuntary, the Company shall have a sixty (60) day cure period in which to have
such involuntary proceedings dismissed;

 

(g)
If at any time on or after the date hereof, the Company shall fail to maintain the listing or quotation of the Common Shares on the OTCQB
or a national securities exchange and the Company does not cure such failure within sixty (60) days;

 

(h)
Any dissolution, liquidation, or winding up of the Company or any substantial portion of its business;

 

(i)
Any cessation of operations by the Company or the Company admits it is otherwise generally unable to pay its debts as such debts become
due, provided, however, that any disclosure of the Company’s ability to continue as a “going concern” shall not be
an admission that the Company cannot pay its debts as they become due;

 

(j)
The failure by the Company to maintain any intellectual property rights, personal, real property or other assets which are necessary
to conduct its business (whether now or in the future), to the extent that such failure would result in a material adverse condition
or material adverse change in or affecting the business operations, properties or financial condition of the Company or any of its subsidiaries,
taken as a whole (a “Material Adverse Effect”);

 

(k)
The Company restates any financial statements for any date or period from two (2) years prior to the Original Issue Date, if the result
of such restatement would, by comparison to the unrestated financial statement, have constituted a Material Adverse Effect on the rights
of the holders of Series B Preferred Shares;

 

(l)
The failure of the Company to execute any of the Related Agreements if not cured within fifteen (15) days of receipt by the Company of
written notice of such failure from any holder of Series B Preferred Shares;

 

(m)
Any court of competent jurisdiction issues an order declaring this Share Designation, any of the other Related Agreements or any provision
hereunder or thereunder to be illegal, exclusive of the execution of the Related Agreements or the transactions and acts contemplated
herein;

 

    2

     

    

 

(n)
A breach or default by the Company of any covenant or other term or condition contained in any of the other financial instrument, including
but not limited to all promissory notes, currently issued, or hereafter issued, by the Company, to any holder of Series B Preferred Shares
or any other third party (the “Other Agreements”), after the passage of all applicable notice and cure or grace periods,
that results in a Material Adverse Effect;

 

(o)
The Company effectuates a reverse split of its Common Shares without twenty (20) days prior written notice to the holders of the Series
B Preferred Shares.

 

(p)
In the event that the Company proposes to replace its transfer agent, the Company fails to provide, prior to the effective date of such
replacement, a fully executed irrevocable transfer agent instructions signed by the successor transfer agent to Company and the Company;

 

(q)
The DTC places a “chill” (i.e. a restriction placed by DTC on one or more of DTC’s services, such as limiting a DTC
participant’s ability to make a deposit or withdrawal of the security at DTC) on any of the Company’s securities;

 

(r)
The Common Shares are otherwise not eligible for trading through the DTC’s Fast Automated Securities Transfer or Deposit/Withdrawal
at Custodian programs;

 

(s)
Following written notice by a holder of Series B Preferred Shares that it does not desire to receive material non-public information
concerning the Company which is not immediately cured by Company’s filing of a Form 8-K pursuant to Regulation FD on that same
date, any attempt by the Company or its officers, directors, and/or affiliates to transmit, convey, disclose, or any actual transmittal,
conveyance, or disclosure by the Company or its officers, directors, and/or affiliates of, material non-public information concerning
the Company, to any holder of Series B Preferred Shares or its successors and assigns, which is not immediately cured by Company’s
filing of a Form 8-K pursuant to Regulation FD on that same date; or

 

(t)
If, at any time on or after the date which is six (6) months after the Original Issue Date, the holder of such shares is unable to (i)
obtain a standard “144 legal opinion letter” from an attorney reasonably acceptable to such holder, such holder’s brokerage
firm (and respective clearing firm), and the Company’s transfer agent in order to facilitate such holder’s conversion of
such Series B Preferred Shares into free trading Common Shares pursuant to Rule 144, and/or (ii) thereupon deposit such shares into such
holder’s brokerage account.

 

“Liquidation”
means any liquidation, dissolution or winding up of the Company’s affairs, whether voluntary or involuntary; provided, however,
that none of (i) a consolidation or merger of the Company with one or more Persons, individually or in a series of transactions, (ii)
a sale, lease or transfer of all or substantially all of the Company’s assets or (iii) a statutory share exchange shall be deemed
to be a Liquidation.

 

“Original
Issue Date” means the date on which the first Series B Preferred Share was issued.

 

“Person”
means natural persons, companies, limited liability companies, unlimited liability companies, limited partnerships, general partnerships,
limited liability partnerships, joint ventures, trusts, land trusts, business trusts, or other organizations, irrespective of whether
they are legal entities, and governments and agencies and political subdivisions thereof.

 

    3

     

    

 

“Related
Agreements” shall mean this Share Designation, the Operating Agreement, the Securities Purchase Agreement, the Warrant and
any other documents or instruments executed and delivered in connection with any of the foregoing.

 

“Requisite
Holders” means the holders of a majority of Series B Preferred Shares.

 

“Securities
Purchase Agreement” means the Securities Purchase Agreement, dated as of even date herewith, by and between and the Company
and any purchaser of Series B Preferred Shares.

 

“Warrant”
shall mean, with respect to a purchaser of Series B Preferred Shares, any Warrant to Purchase Common Shares issued by the Company to
a Person in connection with such Person’s purchase of Series B Preferred Shares.

 

2. Designation and
Number of Shares; Admission as Member.

 

(a) There is hereby created
a new series of shares of the Company that are designated as the “Series B Senior Convertible Preferred Shares” (the “Series
B Preferred Shares”). The number of shares constituting such series shall be 583,334. Each Series B Preferred Share shall have
a stated value of $3.00 per share, subject to adjustments as described herein (the “Stated Value”). Each Series B
Preferred Share shall be identical in all respects to every other Series B Preferred Share.

 

(b) A Person shall be
admitted as a Member (as defined in the Operating Agreement) and shall become bound by the terms of the Operating Agreement, including
this Share Designation, if such Person purchases or otherwise lawfully acquires any Series B Preferred Shares and becomes the record
holder of such shares in accordance with the provisions of this Share Designation and the Operating Agreement. A Person may become a
record holder without the consent or approval of any of the Members of the Company. A person may not become a Member without acquiring
a Series B Preferred Share or otherwise acquiring a Common Share, Series B Preferred Share or Allocation Share.

 

3. Ranking. The
Series B Preferred Shares shall, with respect to the payment of dividends and the distribution of assets upon Liquidation of the Company,
be deemed to rank:

 

(a) senior to all Common
Shares, Allocation Shares and to each other class or series of Additional Securities (as defined in the Operating Agreement) of the Company
that is established in accordance with the Operating Agreement after the date of this Share Designation and that is not expressly made
senior to or on parity with the Series B Preferred Shares as to the payment of dividends and as to the distribution of assets upon Liquidation
of the Company (the “Junior Securities”);

 

(b)
on parity with the Company’s Series A Senior Convertible Preferred Shares and to each other class or series of Additional Securities
of the Company that is established in accordance with the Operating Agreement after the date of this Share Designation and that is not
expressly subordinated or made senior to the Series B Preferred Shares as to the payment of dividends and as to the distribution of assets
upon Liquidation of the Company, whether or not the dividend rates, dividend payment dates or redemption or liquidation prices per share
thereof differ from those of the Series B Preferred Shares (the “Parity Securities”); and

 

(c)
junior to all of the Company’s indebtedness and other liabilities with respect to assets available to satisfy claims against the
Company and to each other class or series of Additional Securities of the Company that is expressly made senior to the Series B Preferred
Shares as to the payment of dividends and as to the distribution of assets upon Liquidation of the Company (“Senior Securities”).

 

    4

     

    

 

4. Dividends.

 

(a)
From and after the date of the issuance of any Series B Preferred Share, dividends at the rate per annum of 14.0% of the Stated Value,
subject to adjustment as provided herein (the “Stated Dividend Rate”) shall accrue on such Series B Preferred Share
(subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with
respect to the Series B Preferred Shares) (the “Accruing Dividends”). Accruing Dividends shall accrue from day to
day, whether or not declared, and shall be cumulative. Accruing Dividends shall be payable quarterly in arrears on each January 30, April
30, July 30 and October 30 beginning on April 30, 2022 (each, a “Dividend Payment Date”). Any calculation of the amount
of Accruing Dividends shall be made based on a 365-day year, the actual number of days elapsed, to the extent permitted by law. Accruing
Dividends shall be payable, on each Dividend Payment Date, in cash or Common Shares at the Company’s discretion. Dividends payable
in Common Shares shall be calculated based on a price equal to eighty percent (80%) of the volume weighted average price (“VWAP”)
for the Common Shares on the Company’s principal trading market during the five (5) trading days immediately prior to the applicable
Dividend Payment Date. The Common Shares issued hereunder in lieu of cash dividends shall be free-trading, and freely transferable, and
will not contain a legend (or be subject to stop transfer or similar instructions) restricting the resale or transferability thereof;
provided however, that if the Common Shares are not registered, and rulemaking referenced in Section 9(e) is effective on the respective
Dividend Payment Date, the dividends payable in Common Shares shall be calculated based upon the fixed price of $2.70; provided further,
that the Company may only elect to pay dividends in Common Shares based upon such fixed price if the VWAP for the Common Shares on the
Company’s principal trading market during the five (5) trading days immediately prior to the applicable Dividend Payment Date is
$2.70 or higher.

 

(b)
The Company shall not declare, pay or set aside any dividends on Junior Securities unless such dividends are paid out of the Company’s
cash flow from operations (as defined in U.S. Generally Accepted Accounting Principles) and the Company shall not declare, pay or set
aside any dividends on Junior Securities from and during the continuance of an Event of Default. The holders of Series B Preferred Shares
shall not be entitled to participate in any dividend or other distribution made on the Junior Securities unless and until the Series
B Preferred Shares are converted in accordance with this Share Designation and then only in connection with dividends or other distributions
having a record date that occurs from or after such conversion; provided, however, that the Company shall provide written notice to the
holders of Series B Preferred Shares no less than ten (10) days prior to the record date for any dividend or other distribution made
on the Junior Securities. However, in no event, shall the Company declare any dividend on any Junior Security, if such dividend would
impair the ability of the Company to pay any dividends due on any Series B Preferred Shares.

 

(c)
If and for so long as any Event of Default occurs and is continuing, then the Stated Dividend Rate, as adjusted and in effect at the
time, of any such Event of Default shall automatically increase by five percent (5%) per annum, commencing as of the date of such Event
of Default. The dividend rate shall return to the Stated Dividend Rate in effect immediately preceding the Event of Default (subject
to any additional adjustments of the Stated Dividend Rate as provided elsewhere herein) upon any cure of the Event of Default giving
rise to the rights set forth in this Section 4(c).

 

5. Liquidation Preference.

 

(a)
Subject to the rights of the Company’s creditors and the holders of any Senior Securities or Parity Securities, upon any Liquidation
of the Company or its subsidiaries, before any payment or distribution of the assets of the Company (whether capital or surplus) shall
be made to or set apart for the holders of Junior Securities as to the distribution of assets on any Liquidation of the Company, each
holder of outstanding Series B Preferred Shares shall be entitled to receive an amount of cash equal to one hundred fifteen percent (115%)
of the Stated Value, plus an amount of cash equal to all accumulated accrued and unpaid dividends thereon (whether or not declared) to,
but not including the date of final distribution to such holders. If, upon any Liquidation of the Company, the assets of the Company,
or proceeds thereof, distributable among the holders of the Series B Preferred Shares shall be insufficient to pay in full the preferential
amount payable to the holders of the Series B Preferred Shares as described in this Section 5(a) and liquidating payments on any other
shares of any class or series of Parity Securities as to the distribution of assets on any Liquidation of the Company, then such assets,
or the proceeds thereof, shall be distributed among the holders of Series B Preferred Shares and any such other Parity Securities ratably
in accordance with the respective amounts that would be payable on such Series B Preferred Shares and any such other Parity Securities
if all amounts payable thereon were paid in full.

 

    5

     

    

 

(b)
Subject to the rights of the Company’s creditors and the holders of any Senior Securities or Parity Securities, upon any Liquidation
of the Company, after payment shall have been made in full to the holders of the Series B Preferred Shares in accordance with this Section
5, the holders of any other series or class or classes of Junior Securities shall, subject to the respective terms and provisions (if
any) applying thereto, be entitled to receive any and all assets remaining to be paid or distributed, and the holders of the Series B
Preferred Shares shall not be entitled to share therein or have any other right or claim to such assets.

 

(c)
Written notice of any such Liquidation of the Company, stating the payment date or dates when, and the place or places where, the amounts
distributable in such circumstances shall be payable, shall be given by first class mail, postage prepaid, not less than twenty (20)
nor more than sixty (60) days prior to the payment date stated therein, to each record holder of the Series B Preferred Shares at the
respective address of such holders as the same shall appear on the stock transfer records of the Company.

 

6. Voting Rights.

 

(a)
The Series B Preferred Shares shall not have any relative, participating, optional or other voting rights or powers of any type, and
the consent of the holders thereof shall not be required for the taking of any corporate action, except as set forth in this Section
6 or as otherwise provided by the Operating Agreement of the Company or the Delaware Limited Liability Company Act.

 

(b)
Notwithstanding the foregoing, so long as any Series B Preferred Shares are outstanding, the affirmative vote of the Requisite Holders
at the time outstanding, voting as a separate class, given in person or by proxy, either in writing without a meeting or by vote at any
meeting called for the purpose, shall be necessary for approving, effecting or validating (i) any amendment, alteration or repeal of
any of the provisions of this Share Designation or (ii) the Company’s creation or issuance of any Parity Securities or any Senior
Securities. For the avoidance of doubt, the consent of the Requisite Holders shall not be required in connection with the issuance of
Parity Securities or Senior Securities if, and so long as, the proceeds resulting from the issuance of such securities are used to redeem
in full the outstanding Series B Preferred Shares.

 

(c)
For purposes of this Section 6, with respect to any matter as to which the holders of Series B Preferred Shares are entitled to vote
as a class, such holders shall be entitled to one vote per share.

 

7. Conversion.

 

(a)
Each Series B Preferred Share, plus all accrued and unpaid dividends thereon, shall be convertible, at the option of the holder thereof,
at any time and from time to time after the issuance of such share, into such number of fully paid and nonassessable Common Shares (calculated
as to each conversion to the whole share) determined by dividing the Stated Value, plus the value of the accrued, but unpaid, dividends
thereon, by the Conversion Price on such Conversion Date). The “Conversion Price” is initially equal to $3.00 per
share, subject to adjustments as described herein.

 

    6

     

    

 

(b)
The holders of any Series B Preferred Shares may exercise their conversion rights as to all such shares or any part thereof by delivering
to the Company during regular business hours, at the office of any transfer agent of the Company for the Series B Preferred Shares, or
at the principal office of the Company or at such other place as may be designated by the Company, the certificate or certificates for
the shares to be converted, if any, duly endorsed for transfer to the Company (if required by the Company), accompanied by written notice
stating that the holder elects to convert such shares. Conversion shall be deemed to have been effected on the date when such delivery
is made, and such date is referred to herein as the “Conversion Date.” As promptly as practicable after the Conversion
Date, but not later than three (3) Business Days thereafter, the Company shall issue the Common Shares to which such holder is entitled
and deliver to such holder an account statement from the Company’s transfer agent evidencing such issuance. The holder shall be
deemed to have become a shareholder of record on the Conversion Date. Provided the Company is participating in the Depository Trust Company
(“DTC”) Fast Automated Securities Transfer program, upon request of any holder of outstanding Series B Preferred Shares,
the Company shall use its best efforts to cause its transfer agent to electronically transmit the Common Shares issuable upon conversion
to such holder by crediting the account of such holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission
system.

 

(c)
No fractional Common Shares or scrip shall be issued upon conversion of Series B Preferred Shares. The number of full Common Shares issuable
upon conversion thereof shall be computed on the basis of the aggregate number of Series B Preferred Shares. Any fractional Common Shares
which would otherwise be issuable upon conversion of the Series B Preferred Shares will be rounded up to the next whole share.

 

(d)
The Company shall pay any and all issuance, delivery and transfer taxes in respect of the issuance or delivery of Common Shares on conversion
of the Series B Preferred Shares pursuant hereto.

 

(e)
The Company shall at all times reserve and keep available, free from preemptive rights, such number of its authorized but unissued Common
Shares as may be required to effect conversions of the Series B Preferred Shares.

 

(f)
If the Company at any time after the date of issue of the Series B Preferred Shares (i) declares a dividend or makes a distribution on
Common Shares payable in Common Shares, (ii) subdivides or splits the outstanding Common Shares, (iii) combines or reclassifies the outstanding
Common Shares into a smaller number of shares, (iv) issues any shares of its capital stock in a reclassification of Common Shares (including
any such reclassification in connection with a consolidation or merger in which the Company is the continuing corporation), (v) effects
any sale of all or substantially all of its assets in one transaction or a series of related transactions, or (vi) consolidates with,
merges with or into or is converted into any other Person, the Conversion Price in effect at the time of the record date for such dividend
or distribution or of the effective date of such subdivision, split, combination, consolidation, conversion, sale, merger or reclassification
shall be adjusted so that the conversion of the Series B Preferred Shares after such time shall entitle the holder to receive the aggregate
number of Common Shares or other securities of the Company (or shares of any security into which such Common Shares have been combined,
consolidated, converted, merged or reclassified) which, if the Series B Preferred Shares had been converted immediately prior to such
time, such holder would have owned upon such conversion and been entitled to receive by virtue of such dividend, distribution, subdivision,
split, combination, consolidation, conversion, merger or reclassification. Such adjustment shall be made successively whenever any event
listed above shall occur.

 

    7

     

    

 

(g)
The Company shall not, through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities
or any other voluntary action, including amending this Share Designation, avoid or seek to avoid the observance or performance of any
of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of
all the provisions of this Section 7 and in the taking of all such action as may be necessary or appropriate in order to protect the
conversion rights of the holders of Series B Preferred Shares against impairment.

 

(h)
All Common Shares which may be issued upon conversion of the Series B Preferred Shares will upon issuance by the Company be validly issued,
fully paid and nonassessable and free from all taxes, liens and charges with respect to the issuance thereof.

 

(i)
In case any Series B Preferred Shares shall be converted pursuant to this Section 7, the Series B Shares so converted shall be canceled
and shall not be issuable by the Company.

 

(j)
In no event shall the holder of any Series B Preferred Shares be entitled to convert any number of Series B Preferred Shares, that upon
conversion the sum of (1) the number of Common Shares beneficially owned by the holder and its affiliates (other than Common Shares which
may be deemed beneficially owned through the ownership of any unconverted Series B Preferred Shares, or the unexercised or unconverted
portion of any other security of the Company subject to a limitation on conversion or exercise analogous to the limitations contained
herein) and (2) the number of Common Shares issuable upon the conversion of the Series B Preferred Shares with respect to which the determination
of this proviso is being made, would result in beneficial ownership by the holder and its affiliates of more than 4.99% of the then outstanding
Common Shares of the Company. For purposes of the proviso set forth in the immediately preceding sentence, beneficial ownership shall
be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulations 13D-G thereunder.
However, the limitations on conversion or exercise detailed herein, may be waived (up to a maximum of 9.99%) by the holder and in its
sole discretion, not less than sixty-one (61) days’ prior notice to the Company, and the provisions of the limitations herein shall
continue to apply until such 61st day (or such later date, as determined by the holder, as may be specified in such notice
of waiver).

 

8. Redemption.

 

(a)
The Company may redeem in whole (but not in part) the Series B Preferred Shares by paying in cash therefore a sum equal to one hundred
fifteen percent (115%) of the Stated Value, plus all accrued and unpaid dividends and any amounts due but unpaid under Section 7(f) (the
“Redemption Price”).

 

(b)
Upon any redemption of Series B Preferred Shares pursuant to this Section 8, the Company shall pay any accumulated accrued and unpaid
dividends in arrears thereon (whether or not declared) to, but not including, the redemption date.

 

(c)
Notwithstanding the foregoing, if as of any particular date all accrued and unpaid dividends on the Series B Preferred Shares and any
other class or series of Parity Securities of the Company have not been paid or declared and set apart for payment, the Company shall
not repurchase, redeem or otherwise acquire, whether under this Section 8 or otherwise, in whole or part any Series B Preferred Shares
or Parity Securities unless (x) all outstanding Series B Preferred Shares and Parity Securities are simultaneously redeemed or (y) any
such repurchase, redemption or acquisition is effected pursuant to a purchase or exchange offer made on the same terms to all holders
of Series B Preferred Shares and any Parity Securities.

 

    8

     

    

 

(d)
Written notice of the redemption of any Series B Preferred Shares under this Section 8 shall be sent to each holder of record of Series
B Preferred Shares to be redeemed at the address of each such holder as shown on the Company’s stock transfer records, not less
than fifteen (15) nor more than thirty (30) days prior to the redemption date; provided, however, that each holder of Series
B Preferred Shares subject to such redemption notice shall have the right to convert each such holder’s Series B Preferred Shares
into Common Shares in accordance with Section 7 hereof prior to the redemption date in lieu of the Redemption Price. Neither the failure
to give notice required by this Section 8(d), nor any defect in the notice therein or in the mailing thereof, to any particular holder,
shall affect the validity of the redemption proceedings with respect to the other holders. Any notice sent in the manner herein provided
shall be conclusively presumed to have been duly given on the date sent whether or not the holder receives the notice. Each such mailed
notice shall state, as appropriate: (i) the redemption date; (ii) the applicable Redemption Price; (iii) the number of Series B Preferred
Shares to be redeemed; (iv) if any shares are represented by certificates, the place or places at which certificates for such shares
are to be surrendered for payment; (v) that dividends on the shares to be redeemed shall cease to accrue on such redemption date; and
(vi) that the shares of Series B Preferred Shares are being redeemed pursuant to the Company’s redemption right under Section 8(a)
hereof. If a notice of redemption is duly sent as aforesaid, then from and after the redemption date, (i) dividends on the Series B Preferred
Shares so called for redemption shall cease to accrue, (ii) such shares shall no longer be deemed to be outstanding, and (iii) all rights
of the holders thereof as holders of such Series B Preferred Shares shall cease (except the right to receive cash payable upon such redemption,
without interest thereon, upon surrender and endorsement of their certificates if so required and to receive any dividends payable thereon);
provided, however, that no such rights shall terminate if the Company fails to provide funds sufficient to complete the redemption at
the time and place specified for payment pursuant to the applicable redemption notice.

 

(e)
Notwithstanding anything to the contrary in this Section 8, any redemption under this Section 8 may be affected only out of funds legally
available for such purpose.

 

(f)
Any Series B Preferred Shares redeemed by the Company in accordance with this Section 8, or otherwise acquired by the Company, shall
be restored to the status of authorized but unissued shares of undesignated Additional Securities of the Company.

 

9.
Other Adjustments. The Stated Dividend Rate, the Stated Value and the Conversion Price shall automatically adjust as follows:

 

(a)
On the first day of the 12th month following the Original Issue Date (the “First Adjustment Date”), the
Stated Dividend Rate shall automatically increase by five percent (5.0%) per annum and the Conversion Price shall automatically adjust
to the lower of the (i) initial Conversion Price or (ii) the price equal the lowest VWAP of the ten (10) trading days immediately preceding
the First Adjustment Date.

 

(b)
On the first day of the 24th month following the Original Issue Date (the “Second Adjustment Date”), the
Stated Dividend Rate shall automatically increase by an additional five percent (5.0%) per annum, the Stated Value shall automatically
increase by ten percent (10%) and the Conversion Price shall automatically adjust to the lower of the (i) initial Conversion Price or
(ii) the price equal the lowest VWAP of the ten (10) trading days immediately preceding the Second Adjustment Date.

 

(c)
On the first day of the 36th month following the Original Issue Date (the “Third Adjustment Date”), the
Stated Dividend Rate shall automatically increase by an additional five percent (5.0%) per annum, the Stated Value shall automatically
increase by ten percent (10%) and the Conversion Price shall automatically adjust to the lower of the (i) initial Conversion Price or
(ii) the price equal the lowest VWAP of the ten (10) trading days immediately preceding the Third Adjustment Date.

 

    9

     

    

 

(d)
Notwithstanding the foregoing, the conversion price in this Section 9 shall not be less than $0.0075 per share, subject to adjustment
for splits or dividends of the Common Shares.

 

(e)
If, after the date hereof, any legislation or rules are adopted whereby the holding period of securities for purposes of Rule 144 of
the Securities Act of 1933, as amended (the “Securities Act”) for convertible securities that convert at market-adjusted
rates is increased resulting in a longer holding period for convertible securities like the Series B Preferred Shares and the unavailability
at the time of conversion of Rule 144, the pricing provisions of this Share Designation that are based upon the lowest VWAP of the previous
ten (10) trading days immediately preceding the relevant Adjustment Date in this Section 9, shall be removed unless the Conversion Shares
are then registered under an effective registration statement in which case this Section 9(e) shall not apply.

 

10.
Record Holders. The Company and its transfer agent shall deem and treat the record holder of any Series B Preferred Shares as
the true and lawful owner thereof for all purposes, and neither the Company nor its transfer agent shall be affected by any notice to
the contrary.

 

11.
No Sinking Fund. The holders of Series B Preferred Shares shall not be entitled to (i) any mandatory redemption rights, (ii) payment
of a principal amount at any particular date, (iii) the benefits of any retirement or sinking fund or (iv) require the Company to set
aside funds to secure the Company’s obligations under the Series B Preferred Shares.

 

12.
Additional Issuances. The Board may only authorize and issue additional Series B Preferred Shares from time to time in one or
more series with the written consent of the Requisite Holders.

 

13. Miscellaneous.

 

(a)
Any and all notices or other communications
or deliveries to be provided by the holders of Series B Preferred Shares hereunder shall be in writing and delivered by facsimile, by
electronic mail, or sent by a nationally recognized overnight courier service, addressed to the Company
at 590 Madison Avenue, 21st Floor, New York, NY 10022,
attention: Chief Financial Officer, e-mail address vhoward@1847holdings.com, or
such other facsimile number, e-mail address or address as the Company may specify for such purposes by notice to the holders delivered
in accordance with this Section 13(a). Any and all notices or other communications or deliveries to be provided by the Company hereunder
shall be in writing and delivered by facsimile, by electronic mail, or sent by a nationally recognized overnight courier service, addressed
to each holder of Series B Preferred Shares at the facsimile number, e-mail address or address of such holder appearing on the books
of the Company, or if no such facsimile number, email address or address appears on the books of the Company, at the principal place
of business of such holder. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest
of (i) the date of transmission, if such notice or communication is delivered via facsimile or electronic mail prior to 5:30 p.m. (New
York City time) on any date, (ii) the next Business Day after the date of transmission, if such notice or communication is delivered
via facsimile or electronic mail on a day that is not a Business Day or later than 5:30 p.m. (New York City time) on any Business Day,
(iii) the second Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (iv)
upon actual receipt by the party to whom such notice is required to be given.

 

    10

     

    

 

(b)
All questions concerning the construction,
validity, enforcement and interpretation of this Share Designation shall be governed by and construed and enforced in accordance with
the internal laws
of the State of Delaware, without regard to the principles of conflict of laws thereof. 

 

(c)
This Share Designation may be amended,
or any provision of this Share Designation may be waived by the Company solely with the affirmative vote at a duly held meeting or written
consent of the Requisite Holders. Any waiver by the Company or a holder of Series B Preferred Shares of a breach of any provision of
this Share Designation shall not operate as or be construed to be a waiver of any other breach
of such provision or of any breach of any other provision of this Share Designation or a waiver by any other holders, except that a waiver
by the Requisite Holders will constitute a waiver of all holders. The failure of the Company or a holder to insist upon strict adherence
to any term of this Share Designation on one or more occasions shall not be considered a waiver or deprive that party (or any other holder)
of the right thereafter to insist upon strict adherence to that term or any other term of this Share Designation on any other occasion.
Any waiver by the Company or a holder must be in writing. 

 

(d)
If any provision of this Share
Designation is invalid, illegal or unenforceable, the balance of this Share Designation shall remain in effect, and if any provision
is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances. If it
shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable
rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law.

 

(e)
The headings contained herein are
for convenience only, do not constitute a part of this Share Designation and shall
not be deemed to limit or affect any of the provisions hereof.

 

*
* * * * * *

 

IN
WITNESS WHEREOF, this Share Designation, which shall be made effective pursuant to Article III of the Operating Agreement, is executed
by the undersigned this 17th day of February, 2022.

 

1847 HOLDINGS LLC

 

	By:	/s/
                                            Ellery W. Roberts	 
	Name:	Ellery W. Roberts	 
	Title:	Chief Executive Officer	 

 

 

11

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