Document:

CERTIFICATE OF DESIGNATIONS,
PREFERENCES

AND RIGHTS OF SERIES B CONVERTIBLE PREFERRED STOCK

OF

EON COMMUNICATIONS CORPORATION

 

eOn Communications Corporation
(the "Company"), a corporation organized and existing under the General Corporation Law of the State of Delaware
(the "DGCL"), does hereby certify that, pursuant to authority conferred upon the Board of Directors of the Company
by the Certificate of Incorporation, as amended, of the Company, and pursuant to the provisions of the DGCL, the Board of Directors
of the Company adopted resolutions (i) designating a series of the Company's previously authorized preferred stock, par value $0.001
per share, and (ii) providing for the designations, preferences and relative, participating, optional or other rights, and the
qualifications, limitations or restrictions thereof, of two thousand seven hundred fifty (2,750) shares of Series B Convertible
Preferred Stock of the Company, as follows:

 

RESOLVED, that the Company
is authorized to issue two thousand seven hundred fifty (2,750) shares of Series B Convertible Preferred Stock, par value $0.001
per share (the "Preferred Shares"), which shall have the following powers, designations, preferences and other
special rights:

 

(1)   Dividends.
Subject to Section 14, the holders of the Preferred Shares (each, a "Holder" and collectively, the "Holders"),
as a class, shall not be entitled to receive dividends ("Dividends").

 

(2)   Conversion
of Preferred Shares. On or after the Initial Convertibility Date, Preferred Shares shall be convertible into shares of the
Company's Common Stock, par value $0.005 per share (the "Common Stock"), on the terms and conditions set forth
in this Section 2.

 

(a)   Holder's
Conversion Right. Subject to the provisions of Section 2(f), at any time or times on or after the Initial Convertibility Date,
any Holder shall be entitled to convert any whole number of Preferred Shares into fully paid and nonassessable shares of Common
Stock in accordance with Section 2(c) at the Conversion Rate (as defined below).

 

(b)   Conversion.
The number of shares of Common Stock issuable upon conversion of each Preferred Share pursuant to Section 2(a) shall be determined
according to the following formula (the "Conversion Rate"):

 

Conversion Amount

Conversion Price

 

No fractional shares of Common
Stock are to be issued upon the conversion of any Preferred Share, but rather the number of shares of Common Stock to be issued
in the aggregate upon any conversion shall be rounded up to the nearest whole number.

 

    	 

    	 

    

 

(c)   Mechanics
of Conversion. The conversion of Preferred Shares shall be conducted in the following manner:

 

(i)     Holder's
Delivery Requirements. To convert Preferred Shares into shares of Common Stock on any date (a "Conversion Date"),
the Holder shall (A) transmit by facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m., New York City Time, on
such date, a copy of a properly completed notice of conversion executed by the registered Holder of the Preferred Shares subject
to such conversion in the form attached hereto as Exhibit I (the "Conversion Notice") to the Company and
the Company's designated transfer agent (the "Transfer Agent") and (B) if required by Section 2(d)(viii), surrender
to a common carrier for delivery to the Company as soon as practicable following such date the original certificates representing
the Preferred Shares being converted (or compliance with the procedures set forth in Section 14) (the "Preferred Stock
Certificates").

 

(ii)    Company's
Response. Upon receipt by the Company of copy of a duly completed Conversion Notice, the Company shall (I) as soon as practicable,
but in any event within one (1) Trading Day, send, via facsimile, a notice of any dispute pursuant to Section 2(c)(iii) below or
a confirmation of receipt of such Conversion Notice to such Holder and the Transfer Agent, which confirmation shall constitute
an instruction to the Transfer Agent to process such Conversion Notice in accordance with the terms herein and (II) on or before
the third (3rd) Trading Day following the date of receipt by the Company of such Conversion Notice (the "Share
Delivery Date"), (1) provided the Transfer Agent is participating in The Depository Trust Company ("DTC")
Fast Automated Securities Transfer Program and the Conversion Shares are subject to an effective resale registration statement
in favor of the Holder or, if converted at a time when Rule 144 would be available for immediate resale of the Conversion Shares
by such Holder, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder's or
its designee's balance account with DTC through its Deposit/Withdrawal At Custodian system, or (2) if the Transfer Agent is not
participating in the DTC Fast Automated Securities Transfer Program or the Conversion Shares are not subject to an effective resale
registration statement in favor of such Holder and Rule 144 is not available for immediate resale of the Conversion Shares by such
Holder, issue and deliver to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder
or its designee, for the number of shares of Common Stock to which the Holder shall be entitled. If the number of Preferred Shares
represented by the Preferred Stock Certificate(s) submitted for conversion, as may be required pursuant to Section 2(c)(vii), is
greater than the number of Preferred Shares being converted, then the Company shall, as soon as practicable and in no event later
than three (3) Business Days after receipt of the Preferred Stock Certificate(s) (the "Preferred Stock Delivery Date")
and at its own expense, issue and deliver to the Holder a new Preferred Stock Certificate representing the number of Preferred
Shares not converted. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred
Shares shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

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(iii)     Dispute
Resolution. In the case of a dispute as to the determination of the Closing Sale Price, Closing Bid Price, Weighted Average
Price or the arithmetic calculation of the Conversion Rate, the Company shall instruct the Transfer Agent to issue to the Holder
the number of shares of Common Stock that is not disputed and shall transmit an explanation of the disputed determinations or arithmetic
calculations to the Holder via facsimile within one (1) Business Day of receipt of such Holder's Conversion Notice or other date
of determination. If such Holder and the Company are unable to agree upon the determination of the Closing Sale Price, Closing
Bid Price or Weighted Average Price or arithmetic calculation of the Conversion Rate within two (2) Business Days of such disputed
determination or arithmetic calculation being transmitted to the Holder, then the Company shall within one (1) Business Day after
approval of the investment bank or outside accountant by the Required Holders submit via facsimile the disputed determination of
the Closing Sale Price, Closing Bid Price or Weighted Average Price, as applicable, or the disputed arithmetic calculation of the
Conversion Rate to an independent, reputable investment bank selected by the Company and approved by the Required Holders or to
the Company's independent, outside accountant. The Company shall cause, at the Company's expense, the investment bank or the accountant,
as the case may be, to perform the determinations or calculations and notify the Company and the Holders of the results no later
than two (2) Business Days from the time it receives the disputed determinations or calculations. Such investment bank's or accountant's
determination or calculation, as the case may be, shall be binding upon all parties absent manifest error.

 

(iv)     Record
Holder. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred Shares
shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

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(v)     Company's
Failure to Timely Convert.

 

(A)     Cash
Damages. If (x) within three (3) Trading Days after the Company's receipt of the facsimile copy of a duly completed Conversion
Notice the Company shall fail to credit a Holder's balance account with DTC, if the Transfer Agent is participating in the DTC
Fast Automated Securities Transfer Program and the Conversion Shares are eligible for immediate resale by such Holder, or issue
and deliver a certificate to such Holder, if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer
Program, in each case for the number of shares of Common Stock to which such Holder is entitled upon such Holder's conversion of
Preferred Shares (subject to the resolution of any bona fide dispute pursuant to Section 2(c)(iii) above solely as to any disputed
shares) or (y) within three (3) Trading Days of the Company's receipt of a Preferred Stock Certificate the Company shall fail to
issue and deliver a new Preferred Stock Certificate representing the number of Preferred Shares to which such Holder is entitled
pursuant to Section 2(c)(ii), then in addition to all other available remedies which such holder may pursue hereunder and under
the Securities Purchase Agreement (including indemnification pursuant to Section 9(k) thereof), the Company shall pay additional
damages to such Holder for each day after the Share Delivery Date that such conversion is not timely effected in an amount equal
to one and one half percent (1.5%) of the product of (I) the sum of the number of shares of Common Stock not issued to the
Holder on or prior to the Share Delivery Date and to which such Holder is entitled as set forth in the applicable Conversion Notice
and the terms of this Certificate of Designations and (II) the Closing Sale Price of the Common Stock on the Share Delivery Date,
in the case of the failure to deliver Common Stock. If the Company fails to pay the additional damages set forth in this Section
2(c)(v)(A) within five (5) Trading Days of the date incurred, then the Holder entitled to such payments shall have the right at
any time, so long as the Company continues to fail to make such payments, to require the Company, upon written notice, to immediately
issue, in lieu of such cash damages, the number of shares of Common Stock equal to the quotient of (X) the aggregate amount of
the damages payments described herein divided by (Y) the Conversion Price in effect on such Conversion Date as specified by the
Holder in the Conversion Notice. In addition to the foregoing, if on the Share Delivery Date the Company shall fail to issue and
deliver a certificate to a Holder, if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program,
or credit such Holder's balance account with DTC, if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer
Program and the Conversion Shares are eligible for immediate resale by such Holder, in each case for the number of shares of Common
Stock to which such Holder is entitled upon such Holder's conversion or the Company's Conversion, as applicable, of Preferred Shares,
and if on or after such Trading Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to
deliver in satisfaction of a sale by the Holder of the shares of Common Stock issuable upon such conversion that the Holder anticipated
receiving from the Company (a "Buy-In"), then the Company shall, within three (3) Trading Days after the Holder's
request and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price
(including brokerage commissions and out-of-pocket expenses, if any) for the shares of Common Stock so purchased (the "Buy-In
Price"), at which point the Company's obligation to deliver such certificate (and to issue such Common Stock) shall terminate,
or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Common Stock and
pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares
of Common Stock, times (B) the Closing Sale Price on the Conversion Date. Nothing herein shall limit a Holder's right to pursue
any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief with respect to the Company's failure to timely deliver certificates representing shares of Common Stock
upon conversion of the Preferred Shares as required pursuant to the terms hereof.

 

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(B)    Void
Conversion Notice; Adjustment of Conversion Price. If for any reason a Holder has not received all of the shares of Common
Stock to which such Holder is entitled prior to the fifth (5th) Trading Day after the Share Delivery Date with respect
to a conversion of Preferred Shares, then the Holder, upon written notice to the Company, with a copy to the Transfer Agent, may
void its Conversion Notice with respect to, and retain or have returned, as the case may be, any Preferred Shares that have not
been converted pursuant to such Holder's Conversion Notice; provided that the voiding of a Holder's Conversion Notice shall not
affect the Company's obligations to make any payments which have accrued prior to the date of such notice pursuant to Section 2(c)(v)(A)
or otherwise.

 

(C)     Conversion
Failure. If for any reason a Holder has not received all of the shares of Common Stock to which such Holder is entitled prior
to the tenth (10th) Trading Day after the Share Delivery Date with respect to a conversion of Preferred Shares, subject
to the resolution of any bona fide dispute pursuant to Section 2(c)(iii) above, then the Holder, upon written notice to the Company,
may require that the Company redeem all Preferred Shares held by such Holder, including the Preferred Shares previously submitted
for conversion and with respect to which the Company has not delivered shares of Common Stock, in accordance with Section 3.

 

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(vi)     Pro
Rata Conversion; Disputes. In the event the Company receives a Conversion Notice from more than one Holder for the same Conversion
Date and the Company can convert some, but not all, of such Preferred Shares, the Company shall convert from each Holder electing
to have Preferred Shares converted at such time a pro rata amount of such Holder's Preferred Shares submitted for conversion based
on the number of Preferred Shares submitted for conversion on such date by such Holder relative to the number of Preferred Shares
submitted for conversion on such date. In the event of a dispute as to the number of shares of Common Stock issuable to a Holder
in connection with a conversion of Preferred Shares, the Company shall issue to such Holder the number of shares of Common Stock
not in dispute and resolve such dispute in accordance with Section 2(c)(iii).

 

(vii)    Book-Entry.
Notwithstanding anything to the contrary set forth herein, upon conversion of Preferred Shares in accordance with the terms hereof,
the Holder thereof shall not be required to physically surrender the certificate representing the Preferred Shares to the Company
unless (A) the full or remaining number of Preferred Shares represented by the certificate are being converted or (B) a Holder
has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance
of Preferred Shares upon physical surrender of any Preferred Shares. The Holder and the Company shall maintain records showing
the number of Preferred Shares so converted and the dates of such conversions or shall use such other method, reasonably satisfactory
to the Holder and the Company, so as not to require physical surrender of the certificate representing the Preferred Shares upon
each such conversion. In the event of any dispute or discrepancy, such records of the Company establishing the number of Preferred
Shares to which the record holder is entitled shall be controlling and determinative in the absence of manifest error. Notwithstanding
the foregoing, if Preferred Shares represented by a certificate are converted as aforesaid, a Holder may not transfer the certificate
representing the Preferred Shares unless such Holder first physically surrenders the certificate representing the Preferred Shares
to the Company, whereupon the Company will forthwith issue and deliver upon the order of such Holder a new certificate of like
tenor, registered as such Holder may request, representing in the aggregate the remaining number of Preferred Shares represented
by such certificate. A Holder and any assignee, by acceptance of a certificate,
acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of any Preferred Shares, the number
of Preferred Shares represented by such certificate may be less than the number of Preferred Shares stated on the face thereof.
Each certificate for Preferred Shares shall bear the following legend:

 

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ANY TRANSFEREE OF THIS CERTIFICATE
SHOULD CAREFULLY REVIEW THE TERMS OF THE COMPANY'S CERTIFICATE OF DESIGNATIONS RELATING TO THE PREFERRED SHARES REPRESENTED BY
THIS CERTIFICATE, INCLUDING SECTION 2(c)(vii) THEREOF. THE NUMBER OF PREFERRED SHARES REPRESENTED BY THIS CERTIFICATE MAY BE LESS
THAN THE NUMBER OF PREFERRED SHARES STATED ON THE FACE HEREOF PURSUANT TO SECTION 2(c)(vii) OF THE CERTIFICATE OF DESIGNATIONS
RELATING TO THE PREFERRED SHARES REPRESENTED BY THIS CERTIFICATE.

 

(d)    Adjustments
to Conversion Price. The Conversion Price will be subject to adjustment from time to time as provided in this Section 2(d).

 

(i)    Adjustment
of Conversion Price upon Issuance of Common Stock. If and whenever on or after the Subscription Date, the Company issues or
sells, or in accordance with this Section 2(d)(i) is deemed to have issued or sold, any shares of Common Stock (including the issuance
or sale of shares of Common Stock owned or held by or for the account of the Company, but excluding any Excluded Securities) for
a consideration per share (the "New Issuance Price") less than a price (the "Applicable Price")
equal to the Conversion Price in effect immediately prior to such issuance or sale (a "Dilutive Issuance"), then
immediately after such Dilutive Issuance, the Conversion Price then in effect shall be reduced to an amount equal to the New Issuance
Price. For purposes of determining the adjusted Conversion Price under this Section 2(d)(i), the following shall be applicable:

 

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(A)  Issuance
of Options. If the Company in any manner grants or sells any Options and the lowest price per share for which one share of
Common Stock is issuable upon the exercise of any such Option or upon conversion or exchange or exercise of any Convertible Securities
issuable upon exercise of such Option is less than the Applicable Price, then each such share of Common Stock underlying such Option
shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option
for such price per share. For purposes of this Section 2(d)(i)(A), the "lowest price per share for which one share of Common
Stock is issuable upon the exercise of any such Option or upon conversion or exchange or exercise of any Convertible Securities
issuable upon exercise of such Option" shall be equal to the sum of the lowest amounts of consideration (if any) received
or receivable by the Company with respect to any one share of Common Stock upon granting or sale of the Option, upon exercise of
the Option and upon conversion or exchange or exercise of any Convertible Security issuable upon exercise of such Option less any
consideration paid or payable by the Company to the Holder thereof with respect to such one share of Common Stock upon the granting
or sale of such Option, upon exercise of such Option and upon conversion exercise or exchange of any Convertible Security issuable
upon exercise of such Option. No further adjustment of the Conversion Price shall be made upon the actual issuance of such share
of Common Stock or of such Convertible Securities upon the exercise of such Options or upon the actual issuance of such Common
Stock upon conversion or exchange or exercise of such Convertible Securities.

 

(B)  Issuance
of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities and the lowest price per
share for which one share of Common Stock is issuable upon such conversion or exchange or exercise thereof is less than the Applicable
Price, then each such share of Common Stock underlying such Convertible Securities shall be deemed to be outstanding and to have
been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price per share.
For the purposes of this Section 2(d)(i)(B), the "lowest price per share for which one share of Common Stock is issuable upon
such conversion or exchange or exercise" shall be equal to the sum of the lowest amounts of consideration (if any) received
or receivable by the Company with respect to any one share of Common Stock upon the issuance or sale of the Convertible Security
and upon the conversion or exchange or exercise of such Convertible Security less any consideration paid or payable by the Company
to the Holder thereof with respect to such one share of Common Stock upon the issuance or sale of such Convertible Security and
upon conversion, exercise or exchange of such Convertible Security. No further adjustment of the Conversion Price shall be made
upon the actual issuance of such share of Common Stock upon conversion or exchange or exercise of such Convertible Securities,
and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment of the Conversion
Price had been or are to be made pursuant to other provisions of this Section 2(d)(i), no further adjustment of the Conversion
Price shall be made by reason of such issue or sale.

 

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(C)    Change
in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any Options, the additional consideration,
if any, payable upon the issue, conversion, exchange or exercise of any Convertible Securities, or the rate at which any Convertible
Securities are convertible into or exchangeable or exercisable for Common Stock changes at any time, the Conversion Price in effect
at the time of such change shall be adjusted to the Conversion Price which would have been in effect at such time had such Options
or Convertible Securities provided for such changed purchase price, additional consideration or changed conversion rate, as the
case may be, at the time initially granted, issued or sold. For purposes of this Section 2(d)(i)(C), if the terms of any Option
or Convertible Security that was outstanding as of the Subscription Date are changed in the manner described in the immediately
preceding sentence, then such Option or Convertible Security and the Common Stock deemed issuable upon exercise, conversion or
exchange thereof shall be deemed to have been issued as of the date of such change. For clarity, adjustments to the purchase price
or exercise price of Options already provided for in the terms of such outstanding Options or adjustments to the rate at which
Convertible Securities are convertible into or exchangeable or exercisable for Common Stock already provided for in the terms of
such outstanding Convertible Securities (or assumed by the Company in the Reverse Merger) shall not result in the deemed issuance
of Common Stock as of the date of such adjustment, if any. No adjustment shall be made if such adjustment would result in an increase
of the Conversion Price then in effect.

 

(D)    Calculation
of Consideration Received. In case any Option is issued in connection with the issue or sale of other securities of the Company,
together comprising one integrated transaction, (x) the Options will be deemed to have been issued for the Option Value and (y)
the other securities issued or sold in such integrated transaction shall be deemed to have been issued for the difference of (I)
the aggregate consideration received by the Company less any consideration paid or payable by the Company pursuant to the terms
of such other securities of the Company, less (II) the Option Value. If any Common Stock, Options or Convertible Securities are
issued or sold or deemed to have been issued or sold for cash, the consideration received or receivable therefor will be deemed
to be the gross purchase price paid by the purchaser therefor. If any Common Stock, Options or Convertible Securities are issued
or sold for a consideration other than cash, the amount of such consideration received by the Company will be the fair value of
such consideration, except where such consideration consists of publicly traded securities, in which case the amount of consideration
received by the Company will be the Closing Sale Price of such securities on the date of receipt of such securities. The fair value
of any consideration other than cash or publicly traded securities will be determined jointly by the Company and the Required Holders.
If such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the "Valuation
Event"), the fair value of such consideration will be determined within five (5) Business Days after the tenth (10th)
day following the Valuation Event by an independent, reputable appraiser jointly selected by the Company and the Required Holders.
The determination of such appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses
of such appraiser shall be borne by the party whose calculation is farther from the determination or calculation of the appraiser.

 

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(E)    Record
Date. If the Company takes a record of the holders of Common Stock for the purpose of entitling them (I) to receive a dividend
or other distribution payable in Common Stock, Options or in Convertible Securities or (II) to subscribe for or purchase Common
Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issue or sale of the shares
of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution
or the date of the granting of such right of subscription or purchase, as the case may be.

 

(ii) Adjustment
of Conversion Price upon Subdivision or Combination of Common Stock. If the Company at any time after the Subscription Date
subdivides (by any stock split, stock dividend, recapitalization or otherwise) its outstanding shares of Common Stock into a greater
number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced. If the
Company at any time after the Subscription Date combines (by combination, reverse stock split, including, without limitation, the
Reverse Split, or otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect
immediately prior to such combination will be proportionately increased.

 

(iii) Other
Events. If any event occurs of the type contemplated by the provisions of this Section 2(d) but not expressly provided for
by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights
with equity features), then the Company's Board of Directors will make an appropriate adjustment in the Conversion Price so as
to protect the rights of the Holders; provided that no such adjustment will increase the Conversion Price as otherwise determined
pursuant to this Section 2(d).

 

(iv) Voluntary
Adjustment By Company. Subject to compliance with any applicable listing rules of the Principal Market, the Company may at
any time reduce the then current Conversion Price to any amount and for any period of time deemed appropriate by the Board of Directors
of the Company.

 

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(e)   Notices.

 

(i) Immediately
upon any adjustment of the Conversion Price pursuant to Section 2(d), the Company will give written notice thereof to each Holder,
setting forth in reasonable detail, and certifying, the calculation of such adjustment. In the case of a dispute as to the determination
of such adjustment, then such dispute shall be resolved in accordance with the procedures set forth in Section 2(c)(iii).

 

(ii) The
Company will give written notice to each Holder at least ten (10) Business Days prior to the date on which the Company closes its
books or takes a record (I) with respect to any dividend or distribution upon the Common Stock, (II) with respect to any pro rata
subscription offer to holders of Common Stock or (III) for determining rights to vote with respect to any Fundamental Transaction
or Liquidation Event, provided that such information shall be made known to the public prior to or in conjunction with such notice
being provided to such Holder.

 

(iii) The
Company will also give written notice to each Holder at least ten (10) Business Days prior to the date on which any Fundamental
Transaction or Liquidation Event will take place, provided that such information shall be made known to the public prior to or
in conjunction with such notice being provided to such Holder.

 

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(f)   Automatic
Conversion. On and after the Initial Convertibility Date, each share of Preferred Stock shall automatically be converted into
shares of Common Stock (an "Automatic Conversion"), based on the then-effective applicable Conversion Price (A)
five (5) Trading Days following the affirmative election of the Required Holders, or (B) provided that there is no Equity Conditions
Failure, five (5) Trading Days following (I) the closing of an underwritten public offering on a firm commitment basis with a nationally
recognized underwriter of Common Stock of the Company pursuant to an effective registration statement under the Securities Act,
with an anticipated aggregate offering price to the public of not less than $20,000,000 (before deduction of underwriters commissions,
fees and expenses) at a price per share that equals or exceeds $1.61 (as adjusted for any stock dividend, stock split, reverse
stock split, stock combination, reclassification or similar transaction after the Subscription Date), as determined on the applicable
date of determination, that results in the listing of Common Stock of the Company on a national securities exchange and (II) the
redemption in full of those certain senior secured notes issued by Inventergy, Inc., a Delaware corporation, on May 10, 2013. Upon
the occurrence of either of the events specified in this Section 2(f), all of the outstanding shares of Preferred Stock shall be
converted automatically without any further action by the holders of such shares and whether or not the certificates representing
such shares are surrendered to the Company or the Transfer Agent; provided, however, that to the extent that an Automatic
Conversion would result in a Holder and its other Attribution Parties exceeding the Maximum Percentage (as defined in Section 9(i)),
if applicable, then such Holder's Series B Preferred Stock shall not be automatically converted into Common Stock (and such Holder's
shares of Series B Preferred Stock shall remain outstanding and benefit from all preferences and rights set forth in this Certificate
of Designations (except that the provisions set forth in Sections 4 and 12 shall immediately terminate and be of no further force
and effect) to such extent (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such
Automatic Conversion (and beneficial ownership) to such extent) and the shares of Common Stock issuable upon the automatic conversion
of Series B Preferred Stock to such extent shall be held in abeyance for such Holder until such time or times as conversion of
such Series B Preferred Stock would not result in such Holder and its other Attribution Parties exceeding the Maximum Percentage,
at which time or times such Holder shall be issued such shares of Common Stock (and any shares of Common Stock granted or issued
with respect to the shares of Common Stock issuable upon conversion of Series B Preferred Stock to be held similarly in abeyance)
to the same extent as if there had been no such limitation; provided, further, that the Company shall not
be obligated to issue certificates evidencing the shares of Common Stock issuable upon such conversion unless the certificates
evidencing such shares of Preferred Stock are either delivered to the Company or the Transfer Agent as provided below, or the Holder
provides evidence that such certificates have been lost, stolen or destroyed in accordance with Section 16. Upon the occurrence
of such Automatic Conversion of the Preferred Stock, the holders of Preferred Stock shall surrender the certificates representing
such shares at the office of the Company or any Transfer Agent for the Preferred Stock. Thereupon, there shall be issued and delivered
to such holder promptly at such office and in its name as shown on such surrendered certificate or certificates, a certificate
or certificates for the number of shares of Common Stock into which the shares of Preferred Stock surrendered were convertible
on the date on which such Automatic Conversion occurred.

 

(3)   Redemption
at Option of Holders.

 

(a)   Holder
Optional Redemption. In addition to all other rights of the Holders contained herein, in the event (i) the Company has not
entered into definitive documentation on terms and conditions reasonably acceptable to the Required Holders providing for the consummation
of the Reverse Merger on or before the date that is two (2) months after the Issuance Date, (ii) the Company amends the definitive
documentation with respect to the Reverse Merger without the consent of the Required Holders, which consent shall not be unreasonably
withheld, (iii) the Reverse Merger has not been consummated in accordance with the definitive documentation with respect to the
Reverse Merger by the date that is six (6) months following the Issuance Date, (iv) the Reverse Split has not occurred by the date
that is five (5) months following the Issuance Date or (v) the Company has not obtained the approval of its stockholders as required
by the applicable rules of the Principal Market for issuances of Common Stock in excess of the Exchange Cap by the date that is
five (5) months following the Issuance Date, each Holder shall have the right, at such Holder's option (each, a "Holder
Optional Redemption Triggering Event"), to require the Company to redeem (a "Holder Optional Redemption")
all or a portion of such Holder's Preferred Shares at a price per Preferred Share equal to 100% of the Conversion Amount (the "Holder
Optional Redemption Triggering Event Redemption Price").

 

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(b)   Mechanics
of Redemption at Option of Buyer. Within two (2) Business Days after the occurrence of any Holder Optional Redemption Triggering
Event, the Company shall deliver written notice thereof via facsimile and overnight courier ("Notice of Holder Optional
Redemption Triggering Event") to each Holder. At any time after the earlier of a Holder's receipt of a Notice of Holder
Optional Redemption Triggering Event and such Holder becoming aware of a Holder Optional Redemption Triggering Event, but in no
event later than thirty (30) days after such Holder's receipt of a Notice of Holder Optional Redemption Triggering Event, any Holder
of Preferred Shares then outstanding may require the Company to redeem up to all of such Holder's Preferred Shares by delivering
written notice thereof via facsimile and overnight courier ("Notice of Redemption at Option of Holder") to the
Company, which Notice of Redemption at Option of Holder shall indicate the number of Preferred Shares that such Holder is electing
to redeem.

 

(c)   Payment
of Redemption Price. Upon the Company's receipt of a Notice(s) of Redemption at Option of Holder from any Holder, the Company
shall within one (1) Business Day of such receipt notify each other Holder by facsimile of the Company's receipt of such notice(s).
The Company shall deliver on the fifth (5th) Business Day after the Company's receipt of the first Notice of Redemption
at Option of Holder (the "Holder Optional Redemption Triggering Event Redemption Date") by wire transfer
of immediately available funds, an amount in cash equal to the applicable Holder Optional Redemption Triggering Event Redemption
Price to all Holders that deliver a Notice of Redemption at Option of Holder prior to the fifth (5th) Business Day after
the Company's receipt of the first Notice of Redemption at Option of Holder, to the extent not paid by means of the Holder drawing
on its Letter of Credit (as defined in the Securities Purchase Agreement). To the extent redemptions required by this Section 3
are deemed or determined by a court of competent jurisdiction to be prepayments of the Preferred Shares by the Company, such redemptions
shall be deemed to be voluntary prepayments. If the Company is unable to redeem all of the Preferred Shares submitted for redemption,
the Company shall redeem a pro rata amount from each Holder based on the number of Preferred Shares submitted for redemption by
such Holder relative to the total number of Preferred Shares submitted for redemption by all Holders. The Holders and Company agree
that in the event of the Company's redemption of any Preferred Shares under this Section 3, the Holders' damages would be uncertain
and difficult to estimate because of the parties' inability to predict future interest rates and the uncertainty of the availability
of a suitable substitute investment opportunity for the Holders. Accordingly, any redemption premium due under this Section 3 is
intended by the parties to be, and shall be deemed, a reasonable estimate of the Holders' actual loss of its investment opportunity
and not as a penalty.

 

    	- 13 -

    	 

    

 

(4)   Change
of Control. No sooner than thirty (30) days nor later than five (5) days prior to the consummation of a Change of Control or
a Non-Public Fundamental Transaction, but not prior to the public announcement of such Change of Control or Non-Public Fundamental
Transaction, as applicable, the Company shall deliver written notice thereof via facsimile and overnight courier to the Holders
(a "Change of Control Notice") setting forth a description of such transaction in reasonable detail and
the anticipated Change of Control Redemption Date if then known. At any time during the period (the "Change of Control
Period") beginning after a Holder's receipt of a Change of Control Notice and ending on the date that is twenty (20) Trading
Days after the consummation of such Change of Control or Non-Public Fundamental Transaction, as applicable, such Holder may require
the Company to redeem (a "Change of Control Redemption") all or any portion of such Holder's Preferred Shares
by delivering written notice thereof ("Change of Control Redemption Notice") to the Company, which Change of Control
Redemption Notice shall indicate the Conversion Amount the Holder is electing to redeem. Any Preferred Shares subject to redemption
pursuant to this Section 4 shall be redeemed by the Company in cash at a price equal to the greater of (i) 125% of the Conversion
Amount being redeemed and (ii) the product of (A) the Conversion Amount being redeemed and (B) the quotient determined by dividing
(1) the greatest Closing Sale Price of the Common Stock during the period commencing as of the Trading Day immediately prior to
the public announcement of such proposed Change of Control or Non-Public Fundamental Transaction, as applicable, and ending as
of the Trading Day immediately prior to the consummation of such Change of Control or Non-Public Fundamental Transaction, as applicable
, by (2) the Conversion Price (the "Change of Control Redemption Price"). The Company shall make payment of the
Change of Control Redemption Price concurrently with the consummation of such Change of Control or Non-Public Fundamental Transaction,
as applicable, if such a Change of Control Redemption Notice is received prior to the consummation of such Change of Control or
Non-Public Fundamental Transaction, as applicable, and within five (5) Trading Days after the Company's receipt of such notice
otherwise (the "Change of Control Redemption Date"), to the extent not paid by means of the Holder drawing on
its Letter of Credit. To the extent redemptions required by this Section 4 are deemed or determined by a court of competent jurisdiction
to be prepayments of the Preferred Shares by the Company, such redemptions shall be deemed to be voluntary prepayments. Notwithstanding
anything to the contrary in this Section 4, until the Change of Control Redemption Price (together with any interest thereon) is
paid in full, the Conversion Amount submitted for redemption under this Section 4 may be converted, in whole or in part, by the
Holder into shares of Common Stock, or in the event the Conversion Date is after the consummation of the Change of Control, shares
or equity interests of the Successor Entity substantially equivalent to the Company's Common Stock pursuant to Section 2(c). The
parties hereto agree that in the event of the Company's redemption of any portion of the Preferred Shares under this Section 4,
the Holder's damages would be uncertain and difficult to estimate because of the parties' inability to predict future interest
rates and the uncertainty of the availability of a suitable substitute investment opportunity for the Holder. Accordingly, any
redemption premium due under this Section 4 is intended by the parties to be, and shall be deemed, a reasonable estimate of the
Holder's actual loss of its investment opportunity and not as a penalty. In the event that the Company does not pay the Change
of Control Redemption Price on the Change of Control Redemption Date, then the Holder shall have the right to void the redemption
pursuant to Section 5(a).

 

    	- 14 -

    	 

    

 

(5)   Redemptions.

 

(a)   Void
Redemption. In the event that the Company does not pay a Redemption Price within the applicable time period and the applicable
Letter of Credit is not drawn, at any time thereafter and until the Company pays such unpaid applicable Redemption Price in full
(whether by payment by the Company or such Holder being paid by means of such Holder drawing on its Letter of Credit, or a combination
thereof) a Holder shall have the option to, in lieu of redemption, require the Company to promptly return to such Holder any or
all of the Preferred Shares that were submitted for redemption by such Holder and for which the applicable Redemption Price has
not been paid, by sending written notice thereof to the Company via facsimile (the "Void Optional Redemption Notice").
Upon the Company's receipt of such Void Optional Redemption Notice, (i) the Redemption Notice of Holder shall be null and void
with respect to those Preferred Shares subject to the Void Optional Redemption Notice and (ii) the Company shall immediately return
any Preferred Shares subject to the Void Optional Redemption Notice.

 

(b)   Disputes;
Miscellaneous. In the event of a dispute as to the determination of the arithmetic calculation of any Redemption Price, such
dispute shall be resolved pursuant to Section 2(c)(iii) above with the term "Redemption Price" being substituted for
the term "Conversion Rate". A Holder's delivery of a Void Optional Redemption Notice and exercise of its rights following
such notice shall not affect the Company's obligations to make any payments which have accrued prior to the date of such notice.
In the event of a redemption pursuant to this Certificate of Designations of less than all of the Preferred Shares represented
by a particular Preferred Stock Certificate, the Company shall promptly cause to be issued and delivered to the Holder of such
Preferred Shares a Preferred Stock Certificate representing the remaining Preferred Shares which have not been redeemed, if necessary.

 

(6)   Company
Optional Redemption. In the event of any Holder Optional Redemption Triggering Event and after thirty (30) days have elapsed
since such Holder Optional Redemption Triggering Event (the "Company Optional Redemption Date"), the Company may
redeem all, but not less than all, of the outstanding Preferred Shares (a "Company Optional Redemption") at any
time upon not less than ten (10) days prior written notice to each Holder (the "Company Optional Redemption Deadline").
Such Preferred Shares shall be redeemed by providing written notice via facsimile and overnight courier to the Holders (the "Notice
of Company Redemption") on or prior to the Company Optional Redemption Deadline and shall be redeemed at a redemption
price equal to the Stated Value of the Preferred Shares. The Company shall deliver to Holders owning outstanding Preferred Shares
to be redeemed by the Company by wire transfer of immediately available funds an amount in cash equal to the Stated Value of the
Preferred Shares being redeemed no later than five (5) days after providing the Notice of Company Redemption. If the Company elects
to cause a Company Optional Redemption pursuant to Section 6(a), then it must simultaneously take the same action in the same proportion
with respect to all the outstanding Preferred Shares.

 

    	- 15 -

    	 

    

 

(7)   Other
Rights of Holders.

 

(a)   Assumption.
The Company shall not enter into or be party to a Fundamental Transaction (other than the Reverse Merger) unless the Successor
Entity assumes in writing all of the obligations of the Company under this Certificate of Designations and the other Transaction
Documents (as defined in the Securities Purchase Agreement) in accordance with the provisions of this Section 7 pursuant to written
agreements in form and substance reasonably satisfactory to the Required Holders and approved by the Required Holders prior to
such Fundamental Transaction, including agreements to deliver to each Holder of Preferred Shares in exchange for such Preferred
Shares a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this
Certificate of Designations including, without limitation, having a stated value equal to the Stated Value of the Preferred Shares
held by such Holder and having similar ranking to the Preferred Shares, and reasonably satisfactory to the Required Holders. Upon
the occurrence of any 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 Certificate of Designations 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 Certificate of Designations with the same effect as if such Successor Entity had been named
as the Company herein. Upon consummation of the Fundamental Transaction with a Successor Entity whose stock is publicly traded,
such Successor Entity shall deliver to the Holder confirmation that there shall be issued upon conversion of the Preferred Shares
at any time after the consummation of the Fundamental Transaction, in lieu of the shares of Common Stock (or other securities,
cash, assets or other property) issuable upon the conversion of the Preferred Shares prior to such Fundamental Transaction (without
regard to any limitations on the conversion of the Preferred Shares, including without limitation, the Maximum Percentage), such
shares of publicly traded common stock (or their equivalent) of the Successor Entity, as adjusted in accordance with the provisions
of this Certificate of Designations, which the Holder would have been entitled to receive had such Holder converted the Preferred
Shares in full (without regard to any limitations on conversion, including without limitation, the Maximum Percentage) immediately
prior to such Fundamental Transaction (provided, however, to the extent that a Holder's right to receive any such
shares of publicly traded common stock (or their equivalent) of the Successor Entity would result in such Holder and its other
Attribution Parties exceeding the Maximum Percentage, if applicable, then such Holder shall not be entitled to receive such shares
to such extent (and shall not be entitled to beneficial ownership of such shares of publicly traded common stock (or their equivalent)
of the Successor Entity as a result of such consideration to such extent) and the portion of such shares shall be held in abeyance
for such Holder until such time or times, as its right thereto would not result in such Holder and its other Attribution Parties
exceeding the Maximum Percentage, at which time or times such Holder shall be delivered such shares to the extent as if there had
been no such limitation). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory
to the Required Holders. In addition to and not in substitution for any other rights hereunder, prior to the occurrence or consummation
of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities, cash, assets
or other property with respect to or in exchange for shares of Common Stock (a "Corporate Event"), the Company
shall make appropriate provision to ensure that, and any applicable Successor Entity or Successor Entities shall ensure that, and
it shall be a required condition to the occurrence or consummation of such Corporate Event that, if so elected by a Holder on or
prior to the occurrence or consummation of such Corporate Event, such Holder will have the right to receive upon surrender of such
Holder's Preferred Shares upon the occurrence or consummation of the Corporate Event, in lieu of the shares of Common Stock (or
other securities, cash, assets or other property) such Holder is entitled to receive upon the conversion of such Holder's Preferred
Shares prior to such Corporate Event (but not in lieu of such items still issuable under Sections 7(b) and 14, which shall continue
to be receivable on the Common Stock or on such shares of stock, securities, cash, assets or any other property otherwise receivable
with respect to or in exchange for shares of Common Stock), such shares of stock, securities, cash, assets or any other property
whatsoever (including warrants or other purchase or subscription rights and any shares of Common Stock) which the Holder would
have been entitled to receive upon the occurrence or consummation of such Corporate Event or the record, eligibility or other determination
date for the event resulting in such Corporate Event, had such Holder's Preferred Shares been converted immediately prior to such
Corporate Event or the record, eligibility or other determination date for the event resulting in such Corporate Event (without
regard to any limitations on conversion, including without limitation, the Maximum Percentage) (provided, however,
to the extent that a Holder's right to receive any such shares of publicly traded common stock (or their equivalent) of the Successor
Entity would result in such Holder and its other Attribution Parties exceeding the Maximum Percentage, if applicable, then such
Holder shall not be entitled to receive such shares to such extent (and shall not be entitled to beneficial ownership of such shares
of publicly traded common stock (or their equivalent) of the Successor Entity as a result of such consideration to such extent)
and the portion of such shares shall be held in abeyance for such Holder until such time or times, as its right thereto would not
result in such Holder and its other Attribution Parties exceeding the Maximum Percentage, at which time or times such Holder shall
be delivered such shares to the extent as if there had been no such limitation). Provision made pursuant to the preceding sentence
shall be in a form and substance reasonably satisfactory to the Required Holders. The provisions of this Section shall apply similarly
and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the conversion of
Preferred Shares.

 

    	- 16 -

    	 

    

 

(b)   Purchase
Rights. If at any time the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock,
warrants, securities or other property pro rata to the record holders of any class of Common Stock (the "Purchase Rights"),
then the Holders will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights
which such Holder could have acquired if such Holder had held the number of shares of Common Stock acquirable upon complete conversion
of the Preferred Shares (without taking into account any limitations or restrictions on the convertibility of the Preferred Shares)
immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such
record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such
Purchase Rights (provided, however, that to the extent that a Holder's right to participate in any such Purchase
Right would result in such Holder and its other Attribution Parties exceeding the Maximum Percentage, if applicable, then such
Holder shall not be entitled to participate in such Purchase Right to such extent (and shall not be entitled to beneficial ownership
of such shares of Common Stock as a result of such Purchase Right (and beneficial ownership) to such extent) and such Purchase
Right to such extent shall be held in abeyance for such Holder until such time or times as its right thereto would not result in
such Holder and its other Attribution Parties exceeding the Maximum Percentage, at which time or times such Holder shall be granted
such right (and any Purchase Right granted, issued or sold on such initial Purchase Right or on any subsequent Purchase Right to
be held similarly in abeyance) to the same extent as if there had been no such limitation).

 

(8)                Reservation
of Shares.

 

(a)          The
Company shall have sufficient authorized and unissued shares of Common Stock for each of the Preferred Shares equal to 130% of
the number of shares of Common Stock necessary to effect the conversion at the Conversion Rate (without regard to any limitations
or restrictions herein on any such conversion) with respect to the Conversion Amount of each such Preferred Share as of the Issuance
Date. The Company shall, so long as any of the Preferred Shares are outstanding, take all action necessary to reserve and keep
available out of its authorized and unissued Common Stock, solely for the purpose of effecting the conversions of the Preferred
Shares, such number of shares of Common Stock as shall from time to time be necessary to effect the conversion of all of the Preferred
Shares then outstanding; provided that at no time shall the number of shares of Common Stock so reserved be less than 130% of the
number of shares of Common Stock for which the Preferred Shares are at any time convertible (without regard to any limitations
or restrictions on conversions) (the "Required Reserve Amount"). The initial number of shares of Common Stock
reserved for conversions of the Preferred Shares and each increase in the number of shares so reserved shall be allocated pro rata
among the Holders based on the number of Preferred Shares held by each Holder at the time of issuance of the Preferred Shares or
increase in the number of reserved shares, as the case may be (the "Authorized Share Allocation"). In the event
a Holder shall sell or otherwise transfer any of such Holder's Preferred Shares, each transferee shall be allocated a pro rata
portion of the number of reserved shares of Common Stock reserved for such transferor. Any shares of Common Stock reserved and
allocated to any Person which ceases to hold any Preferred Shares (other than pursuant to a transfer of Preferred Shares in accordance
with the immediately preceding sentence) shall be allocated to the remaining Holders of Preferred Shares, pro rata based on the
number of Preferred Shares then held by such Holders.

 

    	- 17 -

    	 

    

 

(b)          Insufficient
Authorized Shares. If at any time while any of the Preferred Shares remain outstanding the Company does not have a sufficient
number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon conversion of
the Preferred Shares at least a number of shares of Common Stock equal to the Required Reserve Amount (an "Authorized Share
Failure"), then the Company shall immediately take all action necessary to increase the Company's authorized shares of
Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Preferred Shares then
outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence
of an Authorized Share Failure, but in no event later than seventy-five (75) days after the occurrence of such Authorized Share
Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares
of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use
its reasonable best efforts to solicit its stockholders' approval of such increase in authorized shares of Common Stock and to
cause its board of directors to recommend to the stockholders that they approve such proposal. Notwithstanding the foregoing, if
at such time of an Authorized Share Failure, the Company is able, consistent with its Certificate of Incorporation and Bylaws as
then in effect, to obtain the written consent of a majority of the shares of its issued and outstanding Common Stock to approve
the increase in the number of authorized shares of Common Stock, the Company may satisfy this obligation by obtaining such consent
and submitting for filing with the SEC an Information Statement on Schedule 14C.

 

    	- 18 -

    	 

    

 

(9)   Limitations
on Conversion.

 

(i) Beneficial
Ownership Limitation on Conversions. The Company shall not effect the conversion of any portion of the Preferred Shares, and
no Holder shall have the right to convert any portion of the Preferred Shares, to the extent that after giving effect to such conversion,
the beneficial owner of such shares (together with such Person's Affiliates) would have acquired, through conversion of Preferred
Shares or otherwise, beneficial ownership of a number of shares of Common Stock that exceeds 4.99% (the "Maximum Percentage")
of the shares of Common Stock outstanding immediately after giving effect to such conversion. For purposes of the foregoing sentences,
the aggregate number of shares of Common Stock beneficially owned by a Holder and the other Attribution Parties shall include the
number of shares of Common Stock held by such Holder and all of its other Attribution Parties plus the number of shares of Common
Stock issuable upon conversion of the Preferred Shares with respect to which the determination of such sentences is being made,
but shall exclude shares of Common Stock which would be issuable upon (A) conversion of the remaining, nonconverted Preferred Shares
beneficially owned by such Holder or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or
unconverted portion of any other securities of the Company (including, without limitation, any convertible notes or convertible
preferred stock or warrants, including the Preferred Shares) beneficially owned by such Holder or any of its other Attribution
Parties subject to a limitation on conversion or exercise analogous to the limitation contained in this Section. For purposes of
this Section 9(i), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act. For purposes
of determining the number of outstanding shares of Common Stock, a Holder may acquire upon the conversion of the Preferred Shares
without exceeding the Maximum Percentage, such Holder may rely on the number of outstanding shares of Common Stock as reflected
in (1) the Company's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other
public filing with the SEC, as the case may be, (2) a more recent public announcement by the Company, or (3) any other written
notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. For any reason at any
time, upon the written or oral request of any Holder, the Company shall within one (1) Business Day confirm orally and in writing
or by electronic mail to such 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
the Preferred Shares, by such Holder and any of its other Attribution Parties since the date as of which such number of outstanding
shares of Common Stock was reported. Upon delivery of a written notice to the Company, any Holder may from time to time increase
or decrease the Maximum Percentage to any other percentage not in excess of 9.99% as specified in such notice; provided that (i)
any such increase in the Maximum Percentage will not be effective until the sixty-first (61st) day after such notice is delivered
to the Company, and (ii) any such increase or decrease will apply only to such Holder and its other Attribution Parties and not
to any other holder of Preferred Shares that is not an Attribution Party. For purposes of clarity, the shares of Common Stock underlying
the Preferred Shares in excess of the Maximum Percentage 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 Exchange Act. Holder providing such written notice and not to
any other Holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity
with the terms of this Section 9(i) to the extent necessary to correct this paragraph or any portion of this paragraph which may
be defective or inconsistent with the intended beneficial ownership limitation contained in this Section 9(i) or to make changes
or supplements necessary or desirable to properly give effect to such limitation.

 

    	- 19 -

    	 

    

 

(ii) Principal
Market Regulation. The Company shall not be obligated to issue any shares of Common Stock upon conversion of Preferred Shares,
and the Holders of Preferred Shares shall not have the right to receive upon conversion of Preferred Shares (x) any shares of Common
Stock or (y) any compensatory payments solely in respect of the Company's failure to obtain Stockholder Approval (as defined in
the Securities Purchase Agreement), if the issuance of such shares of Common Stock would exceed the aggregate number of shares
of Common Stock which the Company may issue upon conversion of Preferred Shares or otherwise without breaching the Company's obligations
under the rules or regulations of the Principal Market, whether or not the Common Stock is listed on the Principal Market (the
"Exchange Cap"), except that such limitation shall not apply in the event that the Company obtains the approval
of its stockholders as required by the applicable rules of the Principal Market for issuances of Common Stock in excess of such
amount. Until such approval is obtained, no Holder of Preferred Shares shall be issued in the aggregate, upon conversion or payment,
as applicable, of Preferred Shares, shares of Common Stock in an amount greater than the product of the Exchange Cap multiplied
by a fraction, the numerator of which is the number of Preferred Shares issued to such Holder pursuant to the Securities Purchase
Agreement on the Closing Date (as defined in the Securities Purchase Agreement) and the denominator of which is the aggregate number
of all Preferred Shares issued to the Holders pursuant to the Securities Purchase Agreement on the Closing Date (with respect to
each such Holder, the "Exchange Cap Allocation"). In the event that any Holder shall sell or otherwise transfer
any of such Holder's Preferred Shares, the transferee shall be allocated a pro rata portion of such Holder's Exchange Cap Allocation,
and the restrictions of the prior sentence shall apply to such transferee with respect to the portion of the Exchange Cap Allocation
allocated to such transferee. In the event that any Holder shall convert all of such Holder's Preferred Shares into a number of
shares of Common Stock which, in the aggregate, is less than such holder's Exchange Cap Allocation, then the difference between
such holder's Exchange Cap Allocation and the number of shares of Common Stock actually issued to such holder shall be allocated
to the respective Exchange Cap Allocations of the remaining Holders of Preferred Shares on a pro rata basis in proportion to the
shares of Common Stock underlying the Preferred Shares then held by each such Holder.

 

    	- 20 -

    	 

    

 

(10)   Voting
Rights. Each Holder shall be entitled to the whole number of votes equal to the number of shares of Common Stock into which
such Holder's Preferred Shares would be convertible on the record date for the vote or consent of stockholders, but in lieu of
using the Conversion Price in effect as of the record date, such votes shall calculated based on the higher of (i) the initial
Conversion Price of $1.07 per share and (ii) the Closing Bid Price on the Closing Date (the "Number of Preferred Share
Votes"); provided that if the Company at any time after the Subscription Date subdivides (by any stock split, stock dividend,
recapitalization or otherwise) its outstanding shares of Common Stock into a greater number of shares, the Number of Preferred
Share Votes in effect immediately prior to such subdivision will be proportionately increased and if the Company at any time after
the Subscription Date combines (by combination, reverse stock split, including, without limitation, the Reverse Split, or otherwise)
its outstanding shares of Common Stock into a smaller number of shares, the Number of Preferred Share Votes in effect immediately
prior to such combination will be proportionately decreased. Each Holder shall otherwise have voting rights and powers equal to
the voting rights and powers of the Common Stock, subject to Section 9(ii) hereof and except that such Holder shall have no right
to vote the Preferred Shares to approve the issuance of shares of Common Stock in excess of the Exchange Cap. Each Holder shall
be entitled to receive the same prior notice of any stockholders' meeting as is provided to the holders of Common Stock in accordance
with the bylaws of the Company, as well as prior notice of all stockholder actions to be taken by legally available means in lieu
of a meeting, and shall vote as a class with the holders of Common Stock as if they were a single class of securities upon any
matter submitted to a vote of stockholders, except those matters required by law or by the terms hereof to be submitted to a class
vote of the Holders of Preferred Shares, in which case the Holders of Preferred Shares only shall vote as a separate class.

 

(11)   Liquidation.
In the event of a Liquidation Event, the Holders shall be entitled to receive in cash out of the assets of the Company, whether
from capital or from earnings available for distribution to its stockholders (the "Liquidation Funds"), before
any amount shall be paid to the holders of any of the Capital Stock of the Company of any class junior in rank to the Preferred
Shares in respect of the preferences as to distributions and payments on the liquidation, dissolution and winding up of the Company,
an amount per Preferred Share equal to the Conversion Amount; provided that, if the Liquidation Funds are insufficient to pay the
full amount due to the Holders and holders of shares of other classes or series of preferred stock of the Company that are of equal
rank with the Preferred Shares as to payments of Liquidation Funds (such stock being referred to hereinafter collectively as the
"Pari Passu Stock"), if any, then each Holder and each holder of any such Pari Passu Shares shall receive a percentage
of the Liquidation Funds equal to the full amount of Liquidation Funds payable to such Holder as a liquidation preference, in accordance
with their respective Certificate of Designations, Preferences and Rights, as a percentage of the full amount of Liquidation Funds
payable to all holders of Preferred Shares and Pari Passu Shares. After the foregoing distributions, the Holders shall be entitled,
on a pari passu basis with the holders of Common Stock and treating for the purpose thereof all of the Preferred Shares
as having been converted into Common Stock pursuant to Section 2, to participate in the distribution of any remaining assets of
the Company to the holders of the outstanding Common Stock. To the extent necessary, the Company shall cause such actions to be
taken by any of its Subsidiaries so as to enable, to the maximum extent permitted by law, the proceeds of a Liquidation Event to
be distributed to the Holders in accordance with this Section. All the preferential amounts to be paid to the Holders under this
Section shall be paid or set apart for payment before the payment or setting apart for payment of any amount for, or the distribution
of any Liquidation Funds of the Company to the holders of, shares of other classes or series of preferred stock of the Company
junior in rank to the Preferred Shares in connection with a Liquidation Event as to which this Section applies. The purchase or
redemption by the Company of stock of any class, in any manner permitted by law, shall not, for the purposes hereof, be regarded
as a Liquidation Event.

 

    	- 21 -

    	 

    

 

(12)       Covenants.

 

(a)   Prior
to the consummation or termination of the Reverse Merger and except as permitted under the terms of the definitive documentation
providing for the consummation of the Reverse Merger, the Company shall not, and shall not permit any of the Subsidiaries to, directly
or indirectly incur or guarantee, assume or suffer to exist any Indebtedness, other than trade payables incurred in the ordinary
course of business consistent with past practice.

 

(b)   Prior
to the consummation or termination of the Reverse Merger and except as permitted under the terms of the definitive documentation
providing for the consummation of the Reverse Merger, the Company shall not enter into, or be a party to, a Fundamental Transaction.

 

(c)   Prior
to the consummation or termination of the Reverse Merger and except as permitted under the terms of the definitive documentation
providing for the consummation of the Reverse Merger, the Company shall not (i) grant, issue or sell any Purchase Rights, (ii)
declare or make any Distribution (other than the Initial Dividend) or (iii) repay any outstanding Indebtedness of the Company or
any of its Subsidiaries (other than the repayment of the Outstanding Notes), and in cases of clause (ii) and (iii) only in compliance
with Section 12(e).

 

(d)   Prior
to the consummation of the Reverse Merger and except pursuant to definitive documentation on terms and conditions acceptable to
the Required Holders providing for the consummation of the Reverse Merger, the Company will not, directly or indirectly, offer,
sell, grant any option to purchase, or otherwise dispose of (or announce any offer, sale, grant or any option to purchase or other
disposition of) any of its or its Subsidiaries' equity or equity equivalent securities, including without limitation any debt,
preferred stock or other instrument or security that is, at any time during its life and under any circumstances, convertible into
or exchangeable or exercisable for Common Stock or Common Stock Equivalents or (ii) be party to any solicitations, negotiations
or discussions with regard to the foregoing.

 

(e)   The
aggregate amount of the Initial Dividend and any payments to the holders of the Outstanding Notes being paid with proceeds received
from the Holders in respect of the Company's issuance and sale of the Preferred Shares, shall not exceed $2,000,000.

 

(f)   The
Company shall distribute the Initial Dividend and make the payment to the holders of the Outstanding Notes, subject to the limitation
set forth in Section 12(e) above, contemporaneously with the consummation of the Reverse Merger.

 

    	- 22 -

    	 

    

 

(13)   Ranking.
All shares of Common Stock shall be of junior rank to all Preferred Shares with respect to the preferences as to dividends, distributions
and payments upon the liquidation, dissolution and winding up of the Company. The rights of the shares of Common Stock shall be
subject to the preferences and relative rights of the Preferred Shares. Without the prior express written consent of the Required
Holders, the Company shall not hereafter authorize or issue additional or other Capital Stock that is of senior or pari-passu rank
to the Preferred Shares in respect of the preferences as to distributions and payments upon a Liquidation Event. The Company shall
be permitted to issue preferred stock that is junior in rank to the Preferred Shares in respect of the preferences as to dividends
and other distributions, amortization and redemption payments and payments upon the liquidation, dissolution and winding up of
the Company. In the event of the merger or consolidation of the Company with or into another corporation, the Preferred Shares
shall maintain their relative powers, designations and preferences provided for herein and no merger shall result inconsistent
therewith.

 

(14)   Participation.
Except for the Initial Dividend as to which the Holders shall have no right, the Holders shall, as holders of Preferred Stock,
be entitled to such dividends paid and distributions made to the holders of Common Stock to the same extent as if such Holders
had converted the Preferred Shares into Common Stock (without regard to any limitations on conversion, including, without limitation,
the Maximum Percentage (as defined in Section 9(i), if applicable) and had held such shares of Common Stock on the record date
for such dividends and distributions. Payments under the preceding sentence shall be made concurrently with the dividend or distribution
to the holders of Common Stock. Following the occurrence of a Liquidation Event and the payment in full to a Holder of its applicable
liquidation preference, other than as set forth in Section 11, such Holder shall cease to have any rights hereunder to participate
in any future dividends or distributions made to the holders of Common Stock. Subject to any voting or consent rights contained
herein, except for the Initial Dividend, the Company shall not declare or pay any dividends on any other shares of Capital Stock
whether such Capital Stock is Pari Passu Stock or junior (such stock being referred to hereinafter collectively as "Junior
Stock") unless the holders of Preferred Shares then outstanding shall simultaneously receive a dividend on a pro rata
basis as if the Preferred Shares had been converted into shares of Common Stock pursuant to Section 2 immediately prior to the
record date for determining the stockholders eligible to receive such dividends. Notwithstanding the foregoing, to the extent that
a Holder's right to participate in any such dividend or distribution pursuant to this Section 14 would result in such Holder and
its other Attribution Parties exceeding the Maximum Percentage, if applicable, then such Holder shall not be entitled to participate
in such dividend or distribution to such extent (and shall not be entitled to beneficial ownership of such shares of Common Stock
as a result of such dividend or distribution (and beneficial ownership) to such extent) and the portion of such dividend or distribution
shall be held in abeyance for such Holder until such time or times as its right thereto would not result in such Holder and its
other Attribution Parties exceeding the Maximum Percentage, at which time or times such Holder shall be granted such rights (and
any rights under this Section 14 on such initial rights or on any subsequent such rights to be held similarly in abeyance) to the
same extent as if there had been no such limitation.

 

    	- 23 -

    	 

    

 

(15)   Vote
to Change the Terms of or Issue Preferred Shares. In addition to any other rights provided by law, except where the vote or
written consent of the holders of a greater number of shares is required by law or by another provision of the Certificate of Incorporation,
the affirmative vote at a meeting duly called for such purpose or the written consent without a meeting of the Required Holders,
voting together as a single class, shall be required before the Company may: (a) amend or repeal any provision of, or add any provision
to, the Certificate of Incorporation or bylaws, or file any articles of amendment, certificate of designations, preferences, limitations
and relative rights of any series of preferred stock, if such action would adversely alter or change the preferences, rights, privileges
or powers of, or restrictions provided for the benefit of the Preferred Shares, regardless of whether any such action shall be
by means of amendment to the Certificate of Incorporation or by merger, consolidation or otherwise other than with respect to the
Reverse Merger and the Reverse Split; (b) increase or decrease (other than by conversion) the authorized number of shares of Preferred
Shares; (c) create or authorize (by reclassification or otherwise) any new class or series of shares that has a preference over
or is on a parity with the Preferred Shares with respect to dividends or the distribution of assets on the liquidation, dissolution
or winding up of the Company; (d) purchase, repurchase or redeem any shares of Common Stock (other than pursuant to equity incentive
agreements with employees giving the Company the right to repurchase shares upon the termination of services at cost); (e) pay
dividends or make any other distribution on the Common Stock or other Junior Stock other than the Initial Dividend; (f) amend or
waive any provision of the Certificate of Designation with respect to the Preferred Shares; provided that any such amendment
or waiver that complies with the foregoing but that disproportionately, materially and adversely affects the rights and obligations
of any Holder relative to the comparable rights and obligations of the other Holders shall require the prior written consent of
such adversely affected Holder or (g) whether or not prohibited by the terms of the Preferred Shares, circumvent a right of the
Preferred Shares. Any Preferred Shares which are converted, repurchased or redeemed shall be automatically and immediately cancelled
and shall not be reissued, sold or transferred.

 

(16)   Lost
or Stolen Certificates. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of any Preferred Stock Certificates representing the Preferred Shares, and, in the case of loss, theft
or destruction, of an indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation,
upon surrender and cancellation of the Preferred Stock Certificate(s), the Company shall execute and deliver new preferred stock
certificate(s) of like tenor and date; provided, however, the Company shall not be obligated to re-issue preferred
stock certificates if the Holder contemporaneously requests the Company to convert such Preferred Shares into Common Stock.

 

(17)   Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Certificate of Designations
shall be cumulative and in addition to all other remedies available under this Certificate of Designations, at law or in equity
(including a decree of specific performance and/or other injunctive relief). No remedy contained herein shall be deemed a waiver
of compliance with the provisions giving rise to such remedy. Nothing herein shall limit a Holder's right to pursue actual damages
for any failure by the Company to comply with the terms of this Certificate of Designations. The Company covenants to each Holder
that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or
provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be
received by the Holder thereof and shall not, except as expressly provided herein, be subject to any other obligation of the Company
(or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable
harm to the Holders and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the
event of any such breach or threatened breach, the Holders shall be entitled, in addition to all other available remedies, to an
injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being
required.

 

    	- 24 -

    	 

    

 

(18)   Construction.
This Certificate of Designations shall be deemed to be jointly drafted by the Company and all Buyers (as defined in the Securities
Purchase Agreement) and shall not be construed against any person as the drafter hereof.

 

(19)   Failure
or Indulgence Not Waiver. No failure or delay on the part of a Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privilege.

 

(20)   Notice.
Whenever notice or other communication is required to be given under this Certificate of Designations, unless otherwise provided
herein, such notice shall be given in accordance with Section 9(f) of the Securities Purchase Agreement (provided that if the Preferred
Shares are not held by a Buyer then substituting the words "holder of securities" for the word "Buyer).

 

(21)   Transfer
of Preferred Shares. A Holder may assign some or all of the Preferred Shares and the accompanying rights hereunder held by
such Holder without the consent of the Company; provided that such assignment is in compliance with applicable securities
laws.

 

(22)   Preferred
Share Register. The Company shall maintain at its principal executive offices (or such other office or agency of the Company
as it may designate by notice to the Holders), a register for the Preferred Shares, in which the Company shall record the name
and address of the persons in whose name the Preferred Shares have been issued, as well as the name and address of each transferee.
The Company may treat the person in whose name any Preferred Share is registered on the register as the owner and holder thereof
for all purposes, notwithstanding any notice to the contrary, but in all events recognizing any properly made transfers.

 

(23)   Stockholder
Matters. Subject to any contrary provision in the Company's Certificate of Incorporation, as amended or Bylaws, as amended,
any stockholder action, approval or consent required, desired or otherwise sought by the Company pursuant to the rules and regulations
of the Principal Market, the DGCL, this Certificate of Designations or otherwise with respect to the issuance of the Preferred
Shares or the Common Stock issuable upon conversion thereof may be effected by written consent of the Company's stockholders or
at a duly called meeting of the Company's stockholders, all in accordance with the applicable rules and regulations of the Principal
Market and the DGCL. This provision is intended to comply with the applicable sections of the DGCL permitting stockholder action,
approval and consent affected by written consent in lieu of a meeting.

 

    	- 25 -

    	 

    

 

(24)   Disclosure.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Certificate of Designations, unless
the Company has in good faith determined that the matters relating to such notice do not constitute material, nonpublic information
relating to the Company or any of its Subsidiaries, the Company shall within one (1) Business Day after any such receipt or delivery
publicly disclose such material, nonpublic information on a Current Report on Form 8-K or otherwise. In the event that the Company
believes that a notice contains material, nonpublic information relating to the Company or its Subsidiaries, the Company shall
so indicate to the Holders contemporaneously with delivery of such notice, and in the absence of any such indication, the Holders
shall be allowed to presume that all matters relating to such notice do not constitute material, nonpublic information relating
to the Company or its Subsidiaries.

 

(25)   Certain
Definitions. For purposes of this Certificate of Designations, the following terms shall have the following meanings:

 

(a)        "Affiliate"
means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common
control with, such Person, it being understood for purposes of this definition that "control" of a Person means the power
directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the election of directors of such
Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 

(b)        "Approved
Stock Plan" means any employee benefit plan which has been approved by the Board of Directors of the Company, pursuant
to which the Company's securities may be issued to any employee, officer, director or consultant for services provided to the Company;
provided, that the aggregate number of shares of Common Stock (together with securities convertible, exercisable or exchangeable
into Common Stock) issued pursuant to an Approved Stock Plan does not exceed ten percent (10%) of the number of shares of Common
Stock issued and outstanding as of the Subscription Date; provided, further, that and securities issued pursuant
to an Approved Stock Plan shall be issued a price (or with a conversion price, exchange price or exercise price) equal to or greater
than the then prevailing market price of the Common Stock.

 

(c)        "Attribution
Parties" means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder
funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised by
the Holder's investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder or
any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any of
the foregoing and (iv) any other Persons whose beneficial ownership of the Company's Common Stock would or could be aggregated
with the Holder's and the other Attribution Parties for purposes of Section 13(d) of the Exchange Act. For clarity, the purpose
of the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

 

(d)        "Bloomberg"
means Bloomberg Financial Markets.

 

    	- 26 -

    	 

    

 

(e)        "Business
Day" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

(f)        "Capital
Stock" means: (A) in the case of a corporation, corporate stock; (B) in the case of an association or business entity,
any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; (C) in the
case of a partnership or limited liability company, partnership interests (whether general or limited) or membership or limited
liability company interests; and (D) any other interest or participation that confers on a Person the right to receive a share
of the profits and losses of, or distributions of assets of, the issuing Person.

 

(g)        "Certificate
of Designations" means this Certificate of Designations, Preferences and Rights of Series B Convertible Preferred Stock
of the Company.

 

(h)        "Change
of Control" means any Fundamental Transaction other than (A) any reorganization, recapitalization or reclassification
of the Common Stock in which holders of the Company's voting power immediately prior to such reorganization, recapitalization or
reclassification continue after such reorganization, recapitalization or reclassification to hold publicly traded securities and,
directly or indirectly, the voting power of the surviving entity or entities necessary to elect a majority of the members of the
board of directors (or their equivalent if other than a corporation) of such entity or entities, (B) pursuant to a migratory merger
effected solely for the purpose of changing the jurisdiction of incorporation of the Company, or (C) the Reverse Merger.

 

(i)        "Closing
Bid Price" and "Closing Sale Price" mean, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price, as
the case may be, then the last bid price or last trade price, respectively, of such security prior to 4:00:00 p.m., New York Time,
as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security
(by trading volume for the prior 365 consecutive calendar days), the last closing bid price or last trade price, respectively,
of such security on the principal securities exchange or trading market where such security is listed or traded as reported by
Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in
the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid
price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask
prices, respectively, of any market makers for such security as reported in the OTC Link or "pink sheets" by OTC Markets
Group Inc. (formerly Pink OTC Markets Inc.). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security
on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case may be, of such
security on such date shall be the fair market value as mutually determined by the Company and the Required Holders. If the Company
and the Required Holders are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant
to Section 2(c)(iii). All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination,
reclassification or similar transaction during the applicable calculation period.

 

    	- 27 -

    	 

    

 

(j)        "Common
Stock Equivalents" means, collectively, Options and Convertible Securities.

 

(k)        "Contingent
Obligation" means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect
to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring
such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will
be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will
be protected (in whole or in part) against loss with respect thereto.

 

(l)         "Conversion
Amount" means the Stated Value.

 

(m)        "Conversion
Price" means $1.07, subject to adjustment as provided herein.

 

(n)        "Convertible
Securities" means any stock or securities (other than Options) directly or indirectly convertible into or exchangeable
or exercisable for Common Stock.

 

(o)        "Eligible
Market" means the Principal Market, The New York Stock Exchange, Inc., the NYSE MKT LLC, The NASDAQ Global Select Market
or The NASDAQ Global Market.

 

(p)       "Equity
Conditions" means each of the following conditions: (i) either (a) a registration statement shall be effective and available
for the resale of all Registrable Securities pursuant to Rule 415 and there shall not have been any postponement or failure to
maintain the effectiveness of such registration statement and the Company shall have no knowledge of any fact that would cause
such registration statement not to be effective and available for the resale of all remaining Registrable Securities or (b) all
Registrable Securities shall be eligible for sale without restriction or limitation pursuant to Rule 144 and without the requirement
to be in compliance with Rule 144(c)(1) (or any successor thereto) promulgated under the Securities Act and without the need for
registration under any applicable federal or state securities laws and the Company shall have no knowledge of any fact that would
cause the Registrable Securities not to be eligible for sale without restriction pursuant to Rule 144 and without the requirement
to be in compliance with Rule 144(c)(1) (or any successor thereto) promulgated under the Securities Act and any applicable federal
or state securities laws; (ii) any applicable shares of Common Stock to be issued in connection with the event requiring determination
may be issued in full, subject to any shares that must be held in abeyance due to the provisions of Section 9 hereof, and without
violating the rules or regulations of the Principal Market or any other applicable Eligible Market; (iii) during the Equity Conditions
Measuring Period, the Company shall not have failed to timely make any payments within five (5) Business Days of when such payment
is due pursuant to any Transaction Document (as defined in the Securities Purchase Agreement); (vi) during the Equity Conditions
Measuring Period, there shall not have occurred the public announcement of a pending, proposed or intended Fundamental Transaction
which has not been abandoned, terminated or consummated; (v) during the Equity Conditions Measuring Period, the Company otherwise
shall have been in compliance with and shall not have breached any provision, covenant, representation or warranty of any Transaction
Document; and (vi) no Holder shall be in possession of any material, nonpublic information received from the Company, any Subsidiary
or its respective agent or affiliates.

 

    	- 28 -

    	 

    

 

(q)        "Equity
Conditions Failure" means that on the applicable date of determination, any of the Equity Conditions have not been satisfied
(or waived in writing by the Required Holders).

 

(r)        "Equity
Conditions Measuring Period" means the period beginning thirty (30) Trading Days prior to the applicable date of determination
and ending on and including the applicable date of determination.

 

(s)        "Exchange
Act" means the Securities Exchange Act of 1934, as amended.

 

(t)        "Excluded
Securities" means any Common Stock issued or issuable or deemed to be issued in accordance with Section 2(d) hereof by
the Company: (A) under any Approved Stock Plan; (B) in respect of a conversion or redemption of the Preferred Shares in accordance
herewith; (C) upon the exercise of the Warrants; provided that the Warrants are not amended, modified or changed on or after the
Subscription Date; (D) upon conversion, exercise or exchange of any Options or Convertible Securities which are outstanding on
the day immediately preceding the Subscription Date, provided that such issuance of Common Stock upon exercise of such Options
or Convertible Securities is made pursuant to the terms of such Options or Convertible Securities in effect on the date immediately
preceding the Subscription Date and such Options or Convertible Securities are not amended, modified or changed on or after the
Subscription Date; and (E) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested
directors of the Company, provided that any such issuance shall only be to a Person (or to the equityholders of a Person) which
is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business
of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but shall not include
a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary
business is investing in securities.

 

    	- 29 -

    	 

    

 

(u)        "Fundamental
Transaction" means (i) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise,
in one or more related transactions, (a) consolidate or merge with or into (whether or not the Company is the surviving corporation)
another Subject Entity, or (b) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties
or assets of the Company or any of its "significant subsidiaries" (as defined in Rule 1-02 of Regulation S-X) to one
or more Subject Entities, or (c) make, or allow one or more Subject Entities to make, or allow the Company to be subject to or
have its Common Stock be subject to or party to one or more Subject Entities making, a purchase, tender or exchange offer that
is accepted by the holders of at least either (1) 50% of the outstanding shares of Common Stock, (2) 50% of the outstanding shares
of Common Stock calculated as if any shares of Common Stock held by all Subject Entities making or party to, or Affiliated with
any Subject Entities making or party to, such purchase, tender or exchange offer were not outstanding; or (3) such number of shares
of Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such
purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the Exchange Act)
of at least 50% of the outstanding shares of Common Stock, or (d) consummate a stock purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more Subject
Entities whereby such Subject Entities, individually or in the aggregate, acquire, either (1) at least 50% of the outstanding shares
of Common Stock, (2) at least 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock held by
all the Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such stock purchase agreement
or other business combination were not outstanding; or (3) such number of shares of Common Stock such that the Subject Entities
become collectively the beneficial owners (as defined in Rule 13d-3 under the Exchange Act) of at least 50% of the outstanding
shares of Common Stock, or (e) reorganize, recapitalize or reclassify its Common Stock, (ii) that the Company shall, directly or
indirectly, including through subsidiaries, Affiliates or otherwise, in one or more related transactions, allow any Subject
Entity individually or the Subject Entities in the aggregate to be or become the "beneficial owner" (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, whether through acquisition, purchase, assignment, conveyance, tender, tender
offer, exchange, reduction in outstanding shares of Common Stock, merger, consolidation, business combination, reorganization,
recapitalization, spin-off, scheme of arrangement, reorganization, recapitalization or reclassification or otherwise in any manner
whatsoever, of either (a) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock,
(b) at least 50% of the aggregate ordinary voting power represented by issued and outstanding Common Stock not held by all such
Subject Entities as of the date of this Certificate of Designations calculated as if any shares of Common Stock held by all such
Subject Entities were not outstanding, or (c) a percentage of the aggregate ordinary voting power represented by issued and outstanding
shares of Common Stock or other equity securities of the Company sufficient to allow such Subject Entities to effect a statutory
short form merger or other transaction requiring other stockholders of the Company to surrender their shares of Common Stock without
approval of the stockholders of the Company or (iii) directly or indirectly, including through subsidiaries, Affiliates or otherwise,
in one or more related transactions, the issuance of or the entering into any other instrument or transaction structured in a manner
to circumvent, or that circumvents, the intent of this definition in which case this definition shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this definition to the extent necessary to correct this definition
or any portion of this definition which may be defective or inconsistent with the intended treatment of such instrument or transaction.

 

    	- 30 -

    	 

    

 

(v)        "GAAP"
means United States generally accepted accounting principles, consistently applied.

 

(w)        "Group"
means a "group" as that term is used in Section 13(d) of the Exchange Act and as defined in Rule 13d-5 thereunder.

 

(x)        "Indebtedness"
of any Person means, without duplication (i) all indebtedness for borrowed money, (ii) all obligations issued, undertaken or assumed
as the deferred purchase price of property or services, including (without limitation) "capital leases" in accordance
with GAAP (other than trade payables entered into in the ordinary course of business), (iii) all reimbursement or payment obligations
with respect to letters of credit, surety bonds and other similar instruments, (iv) all obligations evidenced by notes, bonds,
debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property,
assets or businesses, (v) all indebtedness created or arising under any conditional sale or other title retention agreement, or
incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even
though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or
sale of such property), (vi) all monetary obligations under any leasing or similar arrangement which, in connection with GAAP,
consistently applied for the periods covered thereby, is classified as a capital lease, (vii) all indebtedness referred to in clauses
(i) through (vi) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise,
to be secured by) any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets
(including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not
assumed or become liable for the payment of such indebtedness, and (viii) all Contingent Obligations in respect of indebtedness
or obligations of others of the kinds referred to in clauses (i) through (vii) above.

 

(y)        "Initial
Convertibility Date" means the date that is the earliest of (i) the date that one or more Registration Statement(s) (as
defined in the Registration Rights Agreement) has been declared effective, (ii) the date as of which Conversion Shares may be sold
pursuant to Rule 144 promulgated under the Securities Act and (iii) the date on which the Company obtained the approval of its
stockholders for the Reverse Merger, but in no event prior to the day after the record date for holders of Common Stock to receive
the Initial Dividend so long as such record date is not later than ten (10) days prior to the date of the Stockholder Meeting (as
defined in the Securities Purchase Agreement).

 

(z)        "Initial
Dividend" means that certain dividend to be distributed by the Company to its common stockholders contemporaneously with
the consummation of the Reverse Merger.

 

(aa)     "Issuance
Date" means December 17, 2013.

 

    	- 31 -

    	 

    

 

(bb)        "Liquidation
Event" means the voluntary or involuntary liquidation, dissolution or winding up of the Company or such Subsidiaries the
assets of which constitute all or substantially all of the assets of the business of the Company and its Subsidiaries taken as
a whole, in a single transaction or series of transactions, or adoption of any plan for the same.

 

(cc)        "Non-Public
Fundamental Transaction" means any Fundamental Transaction other than one in which the Successor Entity is a publicly
traded corporation whose Common Stock is quoted on or listed for trading on an Eligible Market assumes the Preferred Shares such
that the Preferred Shares shall be convertible for the publicly traded Common Stock of such Successor Entity.

 

(dd)       "Option
Value" means the value of an Option based on the Black and Scholes Option Pricing Model obtained from the "OV"
function on Bloomberg determined as of (A) the Trading Day prior to the public announcement of the issuance of the applicable Option,
if the issuance of such Option is publicly announced or (B) the Trading Day immediately following the issuance of the applicable
Option if the issuance of such Option is not publicly announced, for pricing purposes and reflecting (i) a risk-free interest rate
corresponding to the U.S. Treasury rate for a period equal to the remaining term of the applicable Option as of the applicable
date of determination, (ii) an expected volatility equal to the 100 day volatility obtained from the HVT function on Bloomberg,
(iii) the underlying price per share used in such calculation shall be the average of the Weighted Average Prices for each Trading
Day during the period beginning on the day prior to the execution of definitive documentation relating to the issuance of the applicable
Option and ending on (A) the Trading Day immediately following the public announcement of such issuance, if the issuance of such
Option is publicly announced or (B) the Trading Day immediately following the issuance of the applicable Option if the issuance
of such Option is not publicly announced, (iv) a zero cost of borrow, and (v) a 360 day annualization factor.

 

(ee)       "Options"
means any rights, warrants or options to subscribe for or purchase (i) Common Stock or (ii) Convertible Securities.

 

(ff)        "Outstanding
Notes" means that certain Contingent Note issued by the Company, dated April 1, 2009, in the original principal amount
of $11,000,00 in favor of former stockholders of Cortelco Systems Holding Corp.

 

(gg)      "Person"
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and a government or any department or agency thereof.

 

(hh)      "Principal
Market" means The NASDAQ Capital Market.

 

(ii)        "Redemption
Prices" means, collectively, the Holder Optional Redemption Triggering Event Redemption Price, the Change of Control Redemption
Price and any other redemption price set forth herein, each of the foregoing, individually, a Redemption Price.

 

    	- 32 -

    	 

    

 

(jj)       "Registration
Rights Agreement" means the registration rights agreement, dated as of the Subscription Date, by and among the Company
and the investors referred to therein, as such agreement further may be amended from time to time as provided in such agreement.

 

(kk)     "Required
Holders" means the Holders of Preferred Shares representing at least sixty percent (60%) of the aggregate Preferred Shares
then outstanding.

 

(ll)       "Reverse
Merger" means a merger by and among the Company, a Subsidiary of the Company and Inventergy, Inc., a Delaware corporation,
on terms acceptable to the Required Holders.

 

(mm)   "Reverse
Split" means a reverse split of the Company's shares of Common Stock in a ratio between one-for-three
and one-for-five effected by the Company on or before the consummation of the Reverse Merger.

 

(nn)    "SEC"
means the Securities and Exchange Commission.

 

(oo)    "Securities
Act" means the Securities Act of 1933, as amended.

 

(pp)    "Securities
Purchase Agreement" means the Securities Purchase Agreement, dated as of the Subscription Date, by and among the Company
and the investors referred to therein, as such agreement further may be amended from time to time as provided in such agreement.

 

(qq)    "Stated
Value" means $1,000.

 

(rr)      "Subject
Entity" means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group.

 

(ss)    "Subscription
Date" means December 16, 2013.

 

(tt)     "Subsidiaries"
means any joint venture or entity in which the Company, directly or indirectly, owns a majority of the Capital Stock or an equity
or similar interest or a majority of the voting power with respect thereto, including any subsidiaries, joint ventures or entities
formed or acquired after the Subscription Date.

 

(uu)   "Successor
Entity" means one or more Person or Persons formed by, resulting from or surviving any Fundamental Transaction or one
or more Person or Persons with which such Fundamental Transaction shall have been entered into.

 

(vv)   "Trading
Day" means any day on which shares of Common Stock are traded on the Principal Market, or, if the Principal Market is
not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which
the shares of Common Stock are then traded; provided that "Trading Day" shall not include any day on which the shares
of Common Stock are scheduled to trade on such exchange or market for less than 4.5 hours or any day that the shares of Common
Stock are suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does
not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New
York Time).

 

    	- 33 -

    	 

    

 

(ww)      "Transaction
Documents" means this Certificate of Designations, the Securities Purchase Agreement, the Registration Rights Agreement
and the Warrants.

 

(xx)        "Weighted
Average Price" means, for any security as of any date, the dollar volume-weighted average price for such security on the
Principal Market during the period beginning at 9:30:01 a.m., New York Time (or such other time as the Principal Market publicly
announces is the official open of trading), and ending at 4:00:00 p.m., New York Time (or such other time as the Principal Market
publicly announces is the official close of trading) as reported by Bloomberg through its "Volume at Price" functions,
or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on
the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York Time (or such other time
as such market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York Time (or such other time
as such market publicly announces is the official close of trading) as reported by Bloomberg, or, if no dollar volume-weighted
average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest
closing ask price of any of the market makers for such security as reported in the OTC Link or "pink sheets" by OTC Markets
Group Inc. (formerly Pink OTC Markets Inc.). If the Weighted Average Price cannot be calculated for a security on a particular
date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as
mutually determined by the Company and the Holder. If the Company and the Required Holders are unable to agree upon the fair market
value of such security, then such dispute shall be resolved pursuant to Section 2(c)(iii) with the term "Weighted Average
Price" being substituted for the term "Conversion Rate.". All such determinations to be appropriately adjusted for
any stock dividend, stock split, stock combination, reclassification or similar transaction during the applicable calculation period.

 

(yy)      "Warrants"
means the warrants to purchase Common Stock issued in connection with the Preferred Shares on the Issuance Date.

 

* * * * *

 

    	- 34 -

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Certificate of Designations to be signed by David S. Lee, its Chairman, as of the 17th day of December,
2013.

 

	 	EON COMMUNICATIONS CORPORATION
	 	 
	 	By:	/s/ David S. Lee
	 	 	Name:  David S. Lee
	 	 	Title:  Chairman

 

    	- 35 -

    	 

    

 

EXHIBIT I

 

EON COMMUNICATIONS CORPORATION

 

CONVERSION NOTICE

 

Reference is made to
the Certificate of Designations, Preferences and Rights of Series B Convertible Preferred Stock of eOn Communications Corporation
(the "Certificate of Designations"). In accordance with and pursuant to the Certificate of Designations, the undersigned
hereby elects to convert the number of shares of Series B Convertible Preferred Stock, par value $0.001 per share (the "Preferred
Shares"), of eOn Communications Corporation, a Delaware corporation (the "Company"), indicated below
into shares of Common Stock, par value $0.005 per share (the "Common Stock"), of the Company, as of the date specified
below. By affixing its signature hereto, the undersigned agrees that the information contained herein is accurate and complete
to the best of its knowledge on the date hereof. The undersigned agrees and undertakes to notify the Company until the Share Delivery
Date immediately of any development it become aware of that renders the information contained herein inaccurate or incomplete.

 

	Date of Conversion:	 

 

	Number of Preferred Shares to be converted:	 

 

	Stock certificate no(s). of Preferred Shares to be converted:	 

 

	Tax ID Number (If applicable): 	 

 

	Please confirm the following information:	 

 

	Conversion Price:	 

 

	Number of shares of Common Stock to be issued:	 

 

The undersigned represents and warrants that it is
not and has not been during the preceding three months, an “affiliate” of the Company, as such term is defined by Rule
144(a). (Circle one) YES NO

 

The undersigned represents and warrants that it has
beneficially owned the Preferred Shares and they have been paid for in full since ________________.

 

Please issue the Common
Stock into which the Preferred Shares are being converted in the following name and to the following address:

 

Issue to:                                                                                    

                                                                                                  

 

Address: _________________________________________

 

    	- 36 -

    	 

    

 

Telephone Number: ________________________________

 

Facsimile Number:                                                                       

 

Authorization:                                                                             

 

By:                                                                    

 

Title:                                                                 

 

Dated:

 

Account Number (if electronic book entry
transfer):                                                                         

 

Transaction Code Number (if electronic
book entry transfer):                                                         

 

[NOTE TO HOLDER — THIS FORM
MUST BE SENT CONCURRENTLY TO TRANSFER AGENT]

 

    	- 37 -

    	 

    

 

ACKNOWLEDGMENT

 

The Company hereby acknowledges this Conversion
Notice and hereby directs [NAME OF TRANSFER AGENT] to issue the above indicated number of shares of Common Stock in accordance
with the Irrevocable Transfer Agent Instructions dated December __, 2013 from the Company and acknowledged and agreed to by [NAME
OF TRANSFER AGENT].

 

	 	EON COMMUNICATIONS CORPORATION
	 	 
	 	By:	                           	 
	 	 	 	 
	 	Name:	 	 
	 	Title:[FORM OF WARRANT]

 

NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL SELECTED BY THE HOLDER, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING,
THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.

 

eOn
Communications Corporation

 

Warrant
To Purchase Common Stock

Warrant No.:              

Number of Shares of Common Stock:_____________ 

Date of Issuance: December 17, 2013 ("Issuance Date")

 

eOn Communications Corporation,
a Delaware corporation (the "Company"), hereby certifies that, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, [BUYER], the registered holder
hereof or its permitted assigns (the "Holder"), is entitled, subject to the terms set forth below, to purchase
from the Company, at the Exercise Price (as defined below) then in effect, at any time or times on or after the Initial Exercise
Date, but not after 11:59 p.m., New York time, on the Expiration Date, (as defined below), ______________ (_____________)[1]
fully paid nonassessable shares of Common Stock, subject to adjustment as provided herein (the "Warrant
Shares"). Except as otherwise defined herein, capitalized terms in this Warrant to Purchase Common Stock (including any
Warrants to Purchase Common Stock issued in exchange, transfer or replacement hereof, this "Warrant"), shall
have the meanings set forth in Section 17. This Warrant is one of the Warrants to purchase Common Stock (the "SPA Warrants")
issued pursuant to Section 1 of that certain Securities Purchase Agreement, dated as of December 17, 2013 (the "Subscription
Date"), by and among the Company and the investors (the "Buyers") referred to therein (the "Securities
Purchase Agreement"). Capitalized terms used herein and not otherwise defined shall have the definitions ascribed to
such terms in the Securities Purchase Agreement.

 

 

1 Insert
the Holder's pro rata share of 1,401,870 based on the Stated Value of Preferred Shares the Holder is purchasing pursuant to the
Securities Purchase Agreement based on the total Stated Value of Preferred Shares issued by the Company pursuant to the Securities
Purchase Agreement on the Issuance Date.

 

    	 

    	 

    

 

1.            EXERCISE OF WARRANT.

 

(a)  Mechanics
of Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section
1(f)), this Warrant may be exercised by the Holder at any time or times on or after the Initial Exercise Date, in whole or in part,
by (i) delivery of a written notice, in the form attached hereto as Exhibit A (the "Exercise Notice"),
of the Holder's election to exercise this Warrant and (ii) (A) payment to the Company of an amount equal to the applicable
Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the "Aggregate Exercise
Price") in cash or by wire transfer of immediately available funds or (B) if the provisions of Section 1(d) are applicable,
by notifying the Company that this Warrant is being exercised pursuant to a Cashless Exercise (as defined in Section 1(d)). The
Holder shall not be required to deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery of
the Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original
Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. On or before the
first (1st) Trading Day following the date on which the Company has received the Exercise Notice, the Company shall
transmit by facsimile an acknowledgment of confirmation of receipt of the Exercise Notice to the Holder and the Company's transfer
agent (the "Transfer Agent"). On or before the third (3rd) Trading Day following the date on which the Company
has received the Exercise Notice, so long as the Holder delivers the Aggregate Exercise Price (or notice of a Cashless Exercise)
on or prior to the second (2nd) Trading Day following the date on which the Company has received the Exercise Notice (the "Share
Delivery Date") (provided that if the Aggregate Exercise Price has not been delivered by such date, the Share Delivery
Date shall be one (1) Trading Day after the Aggregate Exercise Price (or notice of a Cashless Exercise) is delivered), the Company
shall (X) provided that the Transfer Agent is participating in The Depository Trust Company ("DTC") Fast Automated
Securities Transfer Program and the Warrant Shares are subject to an effective resale registration statement in favor of the Holder
or, if exercised via Cashless Exercise, at a time when Rule 144 would be available for immediate resale of the Warrant Shares by
the Holder, credit such aggregate number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the Holder's
or its designee's balance account with DTC through its Deposit / Withdrawal At Custodian system, or (Y) if the Transfer Agent is
not participating in the DTC Fast Automated Securities Transfer Program or the Warrant Shares are not subject to an effective resale
registration statement in favor of the Holder or, if exercised via Cashless Exercise, at a time when Rule 144 would not be available
for immediate resale of the Warrant Shares by the Holder, issue and dispatch by overnight courier to the address as specified in
the Exercise Notice, 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. The Company shall be responsible for all fees
and expenses of the Transfer Agent and all fees and expenses with respect to the issuance of Warrant Shares via DTC, if any. Upon
delivery of the Exercise Notice and payment of the Aggregate Exercise Price (whether in cash or pursuant to a Cashless Exercise,
as applicable), 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 such Warrant Shares are credited to the Holder's
DTC account or the date of delivery of the certificates evidencing such Warrant Shares, as the case may be. If this Warrant is
submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant
submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as
soon as practicable and in no event later than three (3) Trading Days after any exercise and at its own expense, issue a new Warrant
(in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares issuable immediately prior to
such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional
Warrant Shares are to be issued upon the exercise of this Warrant, but rather the number of Warrant Shares to be issued shall be
rounded up to the nearest whole number. The Company shall pay any and all taxes which may be payable with respect to the issuance
and delivery of Warrant Shares upon exercise of this Warrant. The Company's obligations to issue and deliver Warrant Shares in
accordance with the terms and subject to the conditions hereof are absolute and unconditional, irrespective of any action or inaction
by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against
any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination.

 

    	-2-

    	 

    

 

(b)  Exercise
Price. For purposes of this Warrant, "Exercise Price" means $1.33, subject to adjustment as provided herein.

 

(c)  Company's
Failure to Timely Deliver Securities. If the Company shall fail for any reason or for no reason to issue to the Holder on or
prior to the Share Delivery Date either (I) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer
Program or the Warrant Shares are not eligible for immediate resale by the Holder, a certificate for the number of shares of Common
Stock to which the Holder is entitled and register such shares of Common Stock on the Company's share register or if the Transfer
Agent is participating in the DTC Fast Automated Securities Transfer Program, to credit the Holder's balance account with DTC,
as applicable, for such number of shares of Common Stock to which the Holder is entitled upon the Holder's exercise of this Warrant
or (II) if the Registration Statement (as defined in the Registration Rights Agreement) covering the resale of the Warrant Shares
that are the subject of the Exercise Notice (the "Unavailable Warrant Shares") is not available for the resale
of such Unavailable Warrant Shares and the Company fails to promptly, but in no event later than as required pursuant to the Registration
Rights Agreement so notify the Holder (the event described in the immediately foregoing clause (II) is hereinafter referred as
a "Notice Failure" and together with the event described in clause (I) above, an "Exercise Failure"),
then, in addition to all other remedies available to the Holder, (X) the Company shall pay in cash to the Holder on each day after
the Share Delivery Date and during such Exercise Failure an amount equal to 1.5% of the product of (A) the sum of the number of
shares of Common Stock not issued to the Holder on or prior to the Share Delivery Date and to which the Holder is entitled, and
(B) the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the last possible date which the Company
could have issued such shares of Common Stock to the Holder without violating Section 1(a), and (Y) the Holder, upon written notice
to the Company, may void its Exercise Notice with respect to, and retain or have returned, as the case may be, any portion of this
Warrant that has not been exercised pursuant to such Exercise Notice; provided that the voiding of an Exercise Notice shall not
affect the Company's obligations to make any payments which have accrued prior to the date of such notice pursuant to this Section
1(c) or otherwise. In addition to the foregoing, if on or prior to the Share Delivery Date either (I) if the Transfer Agent is
not participating in the DTC Fast Automated Securities Transfer Program, the Company shall fail to issue and deliver a certificate
to the Holder and register such shares of Common Stock on the Company's share register or, if the Transfer Agent is participating
in the DTC Fast Automated Securities Transfer Program and the Warrant Shares are eligible for immediate resale by the Holder, credit
the Holder's balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder's
exercise hereunder or pursuant to the Company's obligation pursuant to clause (ii) below or (II) a Notice Failure occurs, and if
on or after such Trading Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver
in satisfaction of a sale by the Holder of shares of Common Stock issuable upon such exercise that the Holder anticipated receiving
from the Company (a "Buy-In"), then the Company shall, within three (3) Trading Days after the Holder's request
and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price (including
brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (the "Buy-In
Price"), at which point the Company's obligation to deliver such certificate (and to issue such shares of Common Stock)
or credit such Holder's balance account with DTC for such shares of Common Stock shall terminate, or (ii) promptly honor its obligation
to deliver to the Holder a certificate or certificates representing such shares of Common Stock or credit such Holder's balance
account with DTC and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A)
such number of shares of Common Stock, times (B) the Closing Bid Price on the date of exercise. Nothing shall limit the Holder's
right to pursue any other remedies available to it hereunder, at law or in equity, including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company's failure to timely deliver certificates representing shares of
Common Stock (or to electronically deliver such shares of Common Stock) upon the exercise of this Warrant as required pursuant
to the terms hereof.

 

    	-3-

    	 

    

 

(d)  Cashless
Exercise.  Notwithstanding anything contained herein to the contrary, if the Registration Statement (as defined in the
Registration Rights Agreement) covering the resale of the Unavailable Warrant Shares is not available for the resale of such Unavailable
Warrant Shares, the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash
payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead
to receive upon such exercise the "Net Number" of shares of Common Stock determined according to the following formula
(a "Cashless Exercise"):

 

Net Number
= (A x B) - (A x C) 

D

 

For purposes
of the foregoing formula:

 

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

 

B= the
arithmetic average of the Closing Sale Prices of the Common Stock for the five (5) consecutive Trading Days ending on the date
immediately preceding the date of the Exercise Notice.

 

    	-4-

    	 

    

 

C= the
Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

 

D= the
Closing Sale Price of the Common Stock on the date of the Exercise Notice.

 

For purposes of Rule
144(d) promulgated under the 1933 Act, as in effect on the date hereof, it is intended that the Warrant Shares issued in a Cashless
Exercise shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to
have commenced, on the date this Warrant was originally issued pursuant to the Securities Purchase Agreement.

 

(e)Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance
with Section 12.

 

    	-5-

    	 

    

 

(f)  (i)
Limitation on Beneficial Ownership. Notwithstanding anything to the contrary contained herein, the Company shall not effect
the exercise of any portion of this Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, pursuant
to the terms and conditions of this Warrant and any such exercise shall be null and void and treated as if never made, to the extent
that after giving effect to such exercise, the Holder together with the other Attribution Parties collectively would beneficially
own in excess of 4.99% (the "Maximum Percentage") of the number of shares of Common Stock outstanding immediately
after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially
owned by the Holder and the other Attribution Parties shall include the number of shares of Common Stock held by the Holder and
all other Attribution Parties plus the number of shares of Common Stock issuable upon exercise of this Warrant with respect to
which the determination of such sentence is being made, but shall exclude the number of shares of Common Stock which would be issuable
upon (A) exercise of the remaining, unexercised portion of this Warrant beneficially owned by the Holder or any of the other Attribution
Parties and (B) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company (including,
without limitation, any convertible notes or convertible preferred stock or warrants, including the other SPA Warrants) beneficially
owned by the Holder or any other Attribution Party subject to a limitation on conversion or exercise analogous to the limitation
contained in this Section 1(f)(i). For purposes of this Section 1(f)(i), beneficial ownership shall be calculated in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as amended (the "1934 Act"). For purposes of this Warrant,
in determining the number of outstanding shares of Common Stock the Holder may acquire upon the exercise of this Warrant without
exceeding the Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the
Company's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other public filing
with the Securities and Exchange Commission (the "SEC"), as the case may be, (y) a more recent public announcement
by the Company or (3) any other written notice by the Company or the Transfer Agent setting forth the number of shares of Common
Stock outstanding (the "Reported Outstanding Share Number"). If the Company receives an Exercise Notice from the
Holder at a time when the actual number of outstanding shares of Common Stock is less than the Reported Outstanding Share Number,
the Company shall (i) notify the Holder in writing of the number of shares of Common Stock then outstanding and, to the extent
that such Exercise Notice would otherwise cause the Holder's beneficial ownership, as determined pursuant to this Section 1(f)(i),
to exceed the Maximum Percentage, the Holder must notify the Company of a reduced number of Warrant Shares to be purchased pursuant
to such Exercise Notice (the number of shares by which such purchase is reduced, the "Reduction Shares") and (ii)
as soon as reasonably practicable, the Company shall return to the Holder any exercise price paid by the Holder for the Reduction
Shares. For any reason at any time, upon the written or oral request of the Holder, the Company shall within one (1) Business Day
confirm orally and in writing or by electronic mail 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 and any other Attribution Party since the date as of which the
Reported Outstanding Share Number was reported. In the event that the issuance of shares of Common Stock to the Holder upon exercise
of this Warrant results in the Holder and the other Attribution Parties being deemed to beneficially own, in the aggregate, more
than the Maximum Percentage of the number of outstanding shares of Common Stock (as determined under Section 13(d) of the 1934
Act), the number of shares so issued by which the Holder's and the other Attribution Parties' aggregate beneficial ownership exceeds
the Maximum Percentage (the "Excess Shares") shall be deemed null and void and shall be cancelled ab initio, and
the Holder shall not have the power to vote or to transfer the Excess Shares. As soon as reasonably practicable after the issuance
of the Excess Shares has been deemed null and void, the Holder shall return such Excess Shares to the Company or the Transfer Agent
for cancellation and the Company shall return to the Holder the exercise price paid by the Holder for the Excess Shares. Upon delivery
of a written notice to the Company, the Holder may from time to time increase (with such increase not effective until the sixty-first
(61st) day after delivery of such notice) or decrease the Maximum Percentage to any other percentage not in excess of
9.99% as specified in such notice; provided that (i) any such increase in the Maximum Percentage will not be effective until the
sixty-first (61st) day after such notice is delivered to the Company and (ii) any such increase or decrease will apply
only to the Holder and the other Attribution Parties and not to any other holder of SPA Warrants that is not an Attribution Party
of the Holder. For purposes of clarity, the shares of Common Stock issuable pursuant to the terms of this Warrant in excess of
the Maximum Percentage 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 1(f)(i) to the extent necessary to correct this paragraph or any portion of this paragraph which may be defective
or inconsistent with the intended beneficial ownership limitation contained in this Section 1(f)(i) or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitation contained in this paragraph may not be waived
and shall apply to a successor holder of this Warrant.

 

    	-6-

    	 

    

 

(ii) Principal Market
Regulation. The Company shall not be obligated to issue any shares of Common Stock upon exercise of this Warrant and the Holder
shall not have the right to receive upon exercise of this Warrant (x) any shares of Common Stock or (y) any compensatory payments
solely in respect of the Company's failure to obtain Stockholder Approval (as defined in the Securities Purchase Agreement), if
the issuance of such shares of Common Stock would exceed that number of shares of Common Stock which the Company may issue upon
exercise of the SPA Warrants or otherwise without breaching the Company's obligations under any applicable rules or regulations
of any applicable Eligible Market (the "Exchange Cap"), except that such limitation shall not apply in the event
that the Company obtains the approval of its stockholders as required by the applicable rules of the Eligible Market for issuances
of shares of Common Stock in excess of such amount. Until such approval is obtained, no Holder shall be issued in the aggregate,
upon exercise of any SPA Warrants, shares of Common Stock in an amount greater than the product of the Exchange Cap multiplied
by a fraction, the numerator of which is the total number of shares of Common Stock underlying the SPA Warrants issued to such
Holder pursuant to the Securities Purchase Agreement on the Issuance Date and the denominator of which is the aggregate number
of shares of Common Stock underlying the SPA Warrants issued to the Buyers pursuant to the Securities Purchase Agreement on the
Issuance Date (with respect to each Holder, the "Exchange Cap Allocation"). In the event that any Holder shall
sell or otherwise transfer any of such Holder's SPA Warrants, the transferee shall be allocated a pro rata portion of such Holder's
Exchange Cap Allocation, and the restrictions of the prior sentence shall apply to such transferee with respect to the portion
of the Exchange Cap Allocation allocated to such transferee. In the event that any holder of SPA Warrants shall exercise all of
such holder's SPA Warrants into a number of shares of Common Stock which, in the aggregate, is less than such holder's Exchange
Cap Allocation, then the difference between such holder's Exchange Cap Allocation and the number of shares of Common Stock actually
issued to such holder shall be allocated to the respective Exchange Cap Allocations of the remaining holders of SPA Warrants on
a pro rata basis in proportion to the shares of Common Stock underlying the SPA Warrants then held by each such holder.

 

(g)  Insufficient
Authorized Shares. If at any time while this Warrant remains outstanding the Company does not have a sufficient number of authorized
and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of this Warrant at least
a number of shares of Common Stock equal to the number of shares of Common Stock as shall from time to time be necessary to effect
the exercise of all of this Warrant then outstanding (the "Required Reserve Amount" and the failure to have such
sufficient number of authorized and unreserved shares of Common Stock, an "Authorized Share Failure"), then the
Company shall immediately take all action necessary to increase the Company's authorized shares of Common Stock to an amount sufficient
to allow the Company to reserve the Required Reserve Amount for this Warrant then outstanding. Without limiting the generality
of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event
later than seventy-five (75) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its
shareholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting,
the Company shall provide each shareholder with a proxy statement and shall use its best efforts to solicit its shareholders' approval
of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the shareholders that
they approve such proposal. Notwithstanding the foregoing, if any such time of an Authorized Share Failure, the Company is able,
consistent with its Certificate of Incorporation and Bylaws as then in effect, to obtain the written consent of a majority of the
shares of its issued and outstanding Common Stock to approve the increase in the number of authorized shares of Common Stock, the
Company may satisfy this obligation by obtaining such consent and submitting for filing with the SEC an Information Statement on
Schedule 14C. In the event that upon any exercise of this Warrant, the Company does not have sufficient authorized shares to deliver
in satisfaction of such exercise, then unless the Holder elects to void such attempted exercise, the Holder may require the Company
to pay to the Holder within three (3) Trading Days of the applicable exercise, cash in an amount equal to the difference between
(i) the arithmetic average of the two (2) highest intra-day trading prices of the Common Stock (as reported by Bloomberg) on the
date of attempted exercise (or, if such date is not a Trading Day, the Trading Day immediately prior to such date) and (ii) the
Exercise Price, if positive, multiplied by the number of Warrant Shares specified in the Notice of Exercise.

 

    	-7-

    	 

    

 

2.             ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of Warrant Shares shall be adjusted from
time to time as follows:

 

(a)  Intentionally
omitted.

 

(b)  Voluntary
Adjustment By Company. Subject to compliance with any applicable listing rules of the Principal Market, the Company may at
any time during the term of this Warrant reduce the then current Exercise Price to any amount and for any period of time deemed
appropriate by the Board of Directors of the Company.

 

(c)  Adjustment
Upon Subdivision or Combination of Shares of Common Stock. If the Company at any time on or after the Subscription Date subdivides
(by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock
into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced
and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Subscription Date
combines (by combination, reverse stock split, including, without limitation, the Reverse Split, or otherwise) one or more classes
of its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such
combination will be proportionately increased and the number of Warrant Shares will be proportionately decreased. Any adjustment
under this Section 2(c) shall become effective at the close of business on the date the subdivision or combination becomes
effective.

 

(d)  Other
Events. If any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by
such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights
with equity features), then the Company's Board of Directors will make an appropriate adjustment in the Exercise Price and the
number of Warrant Shares, as mutually determined by the Company’s Board of Directors and the Required Holders, so as to protect
the rights of the Holder; provided that no such adjustment pursuant to this Section 2(d) will increase the Exercise Price
or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2.

 

    	-8-

    	 

    

 

3.             RIGHTS
UPON DISTRIBUTION OF ASSETS. If the Company shall declare or make any dividend (other than the Initial Dividend (as defined
in the Certificate of Designations)) 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, options, evidence of indebtedness or any other assets 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 or restrictions on exercise of this Warrant, including without limitation,
the Maximum Percentage) immediately before the date of which a record is taken for such Distribution, or, if no such record is
taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution
(provided, however, that to the extent that the Holder's right to participate in any such Distribution would result
in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate
in such Distribution to such extent (and shall not be entitled to beneficial ownership of such shares of Common Stock as a result
of such Distribution (and beneficial ownership) to such extent) and the portion of such Distribution shall be held in abeyance
for the benefit of the Holder until such time or times as its right thereto would not result in the Holder and the other Attribution
Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted such Distribution (and any Distributions
declared or made on such initial Distribution or on any subsequent Distribution held similarly in abeyance) to the same extent
as if there had been no such limitation). Notwithstanding the foregoing, in the event such Distribution is a cash dividend (a "Cash
Distribution"), the Holder shall only be entitled to receive the amount of any such Cash Distribution upon an exercise
of this Warrant, in whole or in part, to the same extent that the Holder would have received if the Holder had held, immediately
before the date on which a record is taken for such Cash 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 Cash Distribution, the number of shares
of Common Stock that the Holder is entitled to receive upon such exercise. From the time of any Cash Distribution until this Warrant
is exercised or expires, the Company shall hold such Cash Distribution for the benefit of the Holder.

 

4.             PURCHASE
RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a)      Purchase
Rights. In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders
of any class 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 or restrictions
on exercise of this Warrant, including without limitation, the Maximum Percentage) immediately before the date on which a record
is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record
holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however,
that to the extent that the Holder's right to participate in any such Purchase Right would result in the Holder and the other Attribution
Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Purchase Right to such extent
(and shall not be entitled to beneficial ownership of such shares of Common Stock as a result of such Purchase Right (and beneficial
ownership) to such extent) and such Purchase Right to such extent shall be held in abeyance for the benefit of the Holder until
such time or times as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum
Percentage, at which time or times the Holder shall be granted such right (and any Purchase Right granted, issued or sold on such
initial Purchase Right or on any subsequent Purchase Right held similarly in abeyance) to the same extent as if there had been
no such limitation).

 

    	-9-

    	 

    

 

 

(b)      Fundamental
Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes
in writing all of the obligations of the Company under this Warrant and the other Transaction Documents which remain applicable
at the effective time of such Fundamental Transaction in accordance with the provisions of this Section 4(b) pursuant to written
agreements in form and substance reasonably satisfactory to the holders of sixty percent (60%) of the Preferred Shares (as defined
in the Securities Purchase Agreement) then outstanding (the "Required Preferred Holders") and approved by the
Required Preferred Holders prior to such Fundamental Transaction, including agreements , if so requested by the Holder, to deliver
to each holder of the SPA Warrants in exchange for such SPA Warrants a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Warrant, including, without limitation, exercisable for a corresponding
number of shares of capital stock 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 reasonably satisfactory
to the Required Preferred Holders, 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 adjustments to the 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 occurrence or consummation of such Fundamental
Transaction. Any security issuable or potentially issuable to the Holder pursuant to the terms of this Warrant on the consummation
of a Fundamental Transaction shall be registered and freely tradable by the Holder without any restriction or limitation or the
requirement to be subject to any holding period pursuant to any applicable securities laws if any securities issued to any other
equityholder of the Company are registered on Form S-4 or any successor form. Upon the occurrence or consummation of any Fundamental
Transaction, and it shall be a required condition to the occurrence or consummation of any Fundamental Transaction that, the Company
and the Successor Entity or Successor Entities, jointly and severally, shall succeed to, and the Company shall cause any Successor
Entity or Successor Entities to jointly and severally succeed to, and be added to the term "Company" under this Warrant
(so that from and after the date of such Fundamental Transaction, each and every provision of this Warrant referring to the "Company"
shall refer instead to each of the Company and the Successor Entity or Successor Entities, jointly and severally), and the Company
and the Successor Entity or Successor Entities, jointly and severally, may exercise every right and power of the Company prior
thereto and shall assume all of the obligations of the Company prior thereto under this Warrant with the same effect as if the
Company and such Successor Entity or Successor Entities, jointly and severally, had been named as the Company in this Warrant.

 

    	-10-

    	 

    

 

(c)  Notwithstanding
the foregoing, in the event of a Non-Reverse Merger Fundamental Transaction other than one in which a Successor Entity that is
a publicly traded corporation whose stock is quoted or listed for trading on an Eligible Market assumes this Warrant such that
the Warrant shall be exercisable for the publicly traded Common Stock of such Successor Entity, at the request of the Holder delivered
before the ninetieth (90th) day after the occurrence or consummation of such Non-Reverse Merger Fundamental Transaction,
the Company (or the Successor Entity) shall purchase this Warrant from the Holder by paying to the Holder, within five (5) Business
Days after such request (or, if later, on the effective date of the Non-Reverse Merger Fundamental Transaction), cash in an amount
equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of such Non-Reverse Merger Fundamental
Transaction.

 

5.             NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation or Bylaws,
or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of
securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant,
and will at all times in good faith carry out all of the provisions of this Warrant and take all action as may be required to protect
the rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value
of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall
take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and
nonassessable shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as any of the SPA Warrants are
outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock,
solely for the purpose of effecting the exercise of the SPA Warrants, the number of shares of Common Stock as shall from time to
time be necessary to effect the exercise of the SPA Warrants then outstanding (without regard to any limitations on exercise).

 

6.             WARRANT
HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person's capacity
as a holder of this Warrant, 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 be construed to confer upon the Holder, solely in such Person's
capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold
consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger,
conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance
to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant. In addition,
nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon
exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company
or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices
and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

 

    	-11-

    	 

    

 

7.             REISSUANCE
OF WARRANTS.

 

(a)      Transfer
of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company
will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the
Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less
than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section
7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

(b) Lost, Stolen
or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder
to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall
execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant
Shares then underlying this Warrant.

 

(c) Exchangeable
for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the
Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the
number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion
of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, that no SPA
Warrants for fractional Warrant Shares or any amounts with an aggregate Exercise Price of less than $1,000 (other than any final
remainder) shall be given.

 

(d) Issuance
of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to
purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a)
or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying
the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this
Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date,
and (iv) shall have the same rights and conditions as this Warrant.

 

8.             NOTICES.
Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance
with Section 9(f) of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all
actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor. Without
limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment
of the Exercise Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least
fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or
distribution upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities
or rights to purchase stock, warrants, securities or other property to holders of shares of Common Stock or (C) for determining
rights to vote with respect to any Fundamental Transaction, dissolution or liquidation; provided in each case that such
information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder.

 

    	-12-

    	 

    

 

9.             AMENDMENT
AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant may be amended or waived and the Company may
take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained
the written consent of the Holder.

 

10.           GOVERNING
LAW; JURISDICTION; JURY TRIAL. This Warrant shall be governed by and construed and enforced in accordance with, and all questions
concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of
the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of
New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of
New York. The Company 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 brought
in an inconvenient forum or that the venue of such suit, action or proceeding is improper. The Company 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
to the Company at the address set forth in Section 9(f) of the Securities Purchase Agreement 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 manner permitted by law. Nothing contained herein shall be deemed or operate to preclude
the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company's
obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or
other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST,
A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

11.           CONSTRUCTION;
HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and all the Buyers and shall not be construed against
any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or
affect the interpretation of, this Warrant.

 

    	-13-

    	 

    

 

12.           DISPUTE
RESOLUTION. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares, the Company shall submit the disputed determinations or arithmetic calculations via facsimile within two (2) Business Days
of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company
are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within three (3) Business
Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two
(2) Business Days submit via facsimile the disputed determination of the Exercise Price or number of Warrant Shares (a) to an independent,
reputable investment bank selected by the Company and approved by the Holder or (b) to the Company's independent, outside accountant.
The Company shall cause at its expense the investment bank or the accountant, as the case may be, to perform the determinations
or calculations and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives
the disputed determinations or calculations. Such investment bank's or accountant's determination or calculation, as the case may
be, shall be binding upon all parties absent demonstrable error.

 

13.           REMEDIES,
OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be cumulative and in addition
to all other remedies available under this Warrant and the other Transaction Documents, at law or in equity (including a decree
of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual
damages for any failure by the Company to comply with the terms of this Warrant. The Company acknowledges that a breach by it of
its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate.
The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled,
in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic
loss and without any bond or other security being required.

 

14.           TRANSFER.  This
Warrant and the Warrant Shares may be offered for sale, sold, transferred, pledged or assigned without the consent of the Company,
except as may otherwise be required by Section 2(f) of the Securities Purchase Agreement.

 

15.           SEVERABILITY.      If
any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material
change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability
of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties
or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good
faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which
comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

    	-14-

    	 

    

 

16. DISCLOSURE.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Warrant, unless the Company has in good
faith determined that the matters relating to such notice do not constitute material, nonpublic information relating to the Company
or its Subsidiaries (as defined in the Securities Purchase Agreement), the Company shall within one (1) Business Day after any
such receipt or delivery publicly disclose such material, nonpublic information on a Current Report on Form 8-K or otherwise. In
the event that the Company believes that a notice contains material, nonpublic information relating to the Company or its Subsidiaries,
the Company so shall indicate to such Holder contemporaneously with delivery of such notice, and in the absence of any such indication,
the Holder shall be allowed to presume that all matters relating to such notice do not constitute material, nonpublic information
relating to the Company or its Subsidiaries.

 

17.           CERTAIN
DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a) "1933
Act" means the Securities Act of 1933, as amended.

 

(b) "Affiliate"
means, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common
control with, such Person, it being understood for purposes of this definition that "control" of a Person means the power
directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the election of directors of such
Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 

(a) "Attribution
Parties" means, collectively, the following Persons and entities: (i) any investment vehicle, including, any funds, feeder
funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised by
the Holder's investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder or
any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any of
the foregoing and (iv) any other Persons whose beneficial ownership of the Company's Common Stock would or could be aggregated
with the Holder's and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose of
the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

 

(b) "Black
Scholes Value" means the value of this Warrant based on the Black-Scholes Option Pricing Model obtained from the "OV"
function on Bloomberg determined as of the day immediately following the public announcement of the applicable Fundamental Transaction,
or, if the Fundamental Transaction is not publicly announced, the date the Fundamental Transaction is consummated, for pricing
purposes and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining
term of this Warrant as of such date of request, (ii) an expected volatility equal to the 100 day volatility obtained from the
HVT function on Bloomberg as of the day immediately following the public announcement of the applicable Fundamental Transaction,
or, if the Fundamental Transaction is not publicly announced, the date the Fundamental Transaction is consummated, (iii) the underlying
price per share used in such calculation shall be 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 the Fundamental Transaction, (iv) a zero cost of borrow and (v) a 360 day
annualization factor.

 

(c) "Bloomberg"
means Bloomberg Financial Markets.

 

    	-15-

    	 

    

 

(d) "Business
Day" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

(e) "Closing
Bid Price" and "Closing Sale Price" mean, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price, as
the case may be, then the last bid price or the last trade price, respectively, of such security prior to 4:00:00 p.m., New York
time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such
security (by trading volume for the prior 365 consecutive calendar days), the last closing bid price or last trade price, respectively,
of such security on the principal securities exchange or trading market where such security is listed or traded as reported by
Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in
the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid
price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask
prices, respectively, of any market makers for such security as reported in the OTC Link or "pink sheets" by OTC Markets
Group Inc. (formerly Pink OTC Markets Inc.). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security
on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case may be, of such
security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the
Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant to Section
12. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination, reclassification
or other similar transaction during the applicable calculation period.

 

(f) "Common
Stock" means (i) the Company's shares of Common Stock, par value $0.005 per share, and (ii) any share capital
into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock.

 

(g) "Convertible
Securities" means any stock or securities (other than Options) directly or indirectly convertible into or exercisable
or exchangeable for shares of Common Stock.

 

(h) "Eligible
Market" means the Principal Market, the NYSE MKT LLC, The NASDAQ Global Market, The NASDAQ Global Select Market or The
New York Stock Exchange, Inc.

 

(i) "Expiration
Date" means the earlier of (i) the date twenty-four (24) months after the Initial Exercise Date or, if such date falls
on a day other than a Business Day or on which trading does not take place on the Principal Market (a "Holiday"),
the next day that is not a Holiday and (ii) the date the Reverse Merger is terminated in writing by the parties thereto or is deemed
terminated by lapse of time as provided therein.

 

    	-16-

    	 

    

 

(j)  "Fundamental
Transaction" means (A) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates or otherwise,
in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation)
another Subject Entity, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties
or assets of the Company or any of its "significant subsidiaries" (as defined in Rule 1-02 of Regulation S-X) to one
or more Subject Entities, or (iii) make, or allow one or more Subject Entities to make, or allow the Company to be subject to or
have its Common Stock be subject to or party to one or more Subject Entities making, a purchase, tender or exchange offer that
is accepted by the holders of at least either (x) 50% of the outstanding shares of Common Stock, (y) 50% of the outstanding shares
of Common Stock calculated as if any shares of Common Stock held by all Subject Entities making or party to, or Affiliated with
any Subject Entities making or party to, such purchase, tender or exchange offer were not outstanding; or (z) such number of shares
of Common Stock such that all Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such
purchase, tender or exchange offer, become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of
at least 50% of the outstanding shares of Common Stock, or (iv) consummate a stock purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more Subject
Entities whereby all such Subject Entities, individually or in the aggregate, acquire, either (x) at least 50% of the outstanding
shares of Common Stock, (y) at least 50% of the outstanding shares of Common Stock calculated as if any shares of Common Stock
held by all the Subject Entities making or party to, or Affiliated with any Subject Entity making or party to, such stock purchase
agreement or other business combination were not outstanding; or (z) such number of shares of Common Stock such that the Subject
Entities become collectively the beneficial owners (as defined in Rule 13d-3 under the 1934 Act) of at least 50% of the outstanding
shares of Common Stock, or (v) reorganize, recapitalize or reclassify its Common Stock, such that such modified Common Stock no
longer has the residual right to dividends or distributions from the Company or the residual right to vote on matters given to
common stockholders under Delaware law, (B) that the Company shall, directly or indirectly, including through subsidiaries, Affiliates
or otherwise, in one or more related transactions, allow any Subject Entity individually or the Subject Entities in the aggregate
to be or become the "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, whether
through acquisition, purchase, assignment, conveyance, tender, tender offer, exchange, reduction in outstanding shares of Common
Stock, merger, consolidation, business combination, reorganization, recapitalization, spin-off, scheme of arrangement, reorganization,
recapitalization or reclassification or otherwise in any manner whatsoever, of either (x) at least 50% of the aggregate ordinary
voting power represented by issued and outstanding Common Stock, (y) at least 50% of the aggregate ordinary voting power represented
by issued and outstanding Common Stock not held by all such Subject Entities as of the date of this Warrant calculated as if any
shares of Common Stock held by all such Subject Entities were not outstanding, or (z) a percentage of the aggregate ordinary voting
power represented by issued and outstanding shares of Common Stock or other equity securities of the Company sufficient to allow
such Subject Entities to effect a statutory short form merger or other transaction requiring other stockholders of the Company
to surrender their shares of Common Stock without approval of the stockholders of the Company or (C) directly or indirectly, including
through subsidiaries, Affiliates or otherwise, in one or more related transactions, the issuance of or the entering into any other
instrument or transaction structured in a manner to circumvent, or that circumvents, the intent of this definition in which case
this definition shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this definition
to the extent necessary to correct this definition or any portion of this definition which may be defective or inconsistent with
the intended treatment of such instrument or transaction.

 

    	-17-

    	 

    

 

(k)  "Group"
means a "group" as that term is used in Section 13(d) of the 1934 Act and as defined in Rule 13d-5 thereunder.

 

(l)  "Initial
Exercise Date" means the Business Day following the date the Holder has issued instructions to the Letter of Credit Bank
(as defined in the Securities Purchase Agreement) pursuant to Section 4(p) of the Securities Purchase Agreement to distribute the
entire Letter of Credit Amount, to the Company, but in no event prior to the day after the record date for holders of Common Stock
to receive the Initial Dividend so long as such record date is not later than ten (10) days prior to the date of the Stockholder
Meeting (as defined in the Securities Purchase Agreement).

 

(m) "Non-Reverse Merger
Fundamental Transaction" means any Fundamental Transaction other than the Reverse Merger.

 

(n) "Options"
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

(o) "Person"
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and a government or any department or agency thereof.

 

(p) "Principal
Market" means The NASDAQ Capital Market.

 

(q) "Registration Rights Agreement"
means that certain Registration Rights Agreement dated as of the Subscription Date by and among the Company and the Buyers.

 

(r) "Required
Holders" means the holders of the SPA Warrants representing at least sixty percent (60%) of the shares of Common Stock
underlying the SPA Warrants then outstanding.

 

(s) "Reverse
Merger" means a merger by and among the Company, a Subsidiary of the Company and Inventergy, Inc., a Delaware corporation,
on terms acceptable to the Required Holders.

 

(t)  "Reverse
Split" means a one-for-three reverse split with respect to all of the Company's shares of Common Stock to be effected
by the Company on or before the consummation of the Reverse Merger.

 

(u) "Subject
Entity" means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons or Group.

 

    	-18-

    	 

    

 

(v) "Successor
Entity" means one or more Person or Persons which may be the entity formed by, resulting from or surviving any Fundamental
Transaction or one or more Person or Persons with which such Fundamental Transaction shall have been entered into.

 

(w) "Trading
Day" means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded; provided that "Trading Day" shall not include any day on which the Common Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the
final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time
of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

(x) "Weighted
Average Price" means, for any security as of any date, the dollar volume-weighted average price for such security on the
Principal Market during the period beginning at 9:30:01 a.m., New York time (or such other time as the Principal Market publicly
announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time as the Principal Market
publicly announces is the official close of trading), as reported by Bloomberg through its "Volume at Price" function
or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on
the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time (or such other time
as such market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time
as such market publicly announces is the official close of trading), as reported by Bloomberg, or, if no dollar volume-weighted
average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest
closing ask price of any of the market makers for such security as reported in the OTC Link or "pink sheets" by OTC Markets
Group Inc. (formerly Pink OTC Markets Inc.). If the Weighted Average Price cannot be calculated for a security on a particular
date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as
mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value
of such security, then such dispute shall be resolved pursuant to Section 12 with the term "Weighted Average Price" being
substituted for the term "Exercise Price." All such determinations shall be appropriately adjusted for any stock dividend,
stock split, stock combination, reclassification or other similar transaction during the applicable calculation period.

 

[Signature Page Follows]

 

    	-19-

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

 

	 	EON COMMUNICATIONS CORPORATION
	 	 	 
	 	By:	 
	 	Name:	David S. Lee
	 	Title:	Chairman

 

    	 

    	 

    

 

EXHIBIT A

 

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER
TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

eOn
communications corporation

 

The
undersigned holder hereby exercises the right to purchase _________________ of the shares of Common Stock ("Warrant Shares")
of eOn Communications Corporation, a Delaware corporation (the "Company"),
evidenced by the attached Warrant to Purchase Common Stock (the "Warrant"). Capitalized terms used herein and
not otherwise defined shall have the respective meanings set forth in the Warrant. By affixing its signature hereto, the undersigned
agrees that the information contained herein is accurate and complete to the best of its knowledge on the date hereof. The undersigned
agrees and undertakes to notify the Company until the Share Delivery Date immediately of any
development it become aware of that renders the information contained herein inaccurate or incomplete.

 

1. Form of Exercise
Price. The Holder intends that payment of the Exercise Price shall be made as:

 

____________ a
"Cash Exercise" with respect to _________________ Warrant Shares; and/or

 

____________ a
"Cashless Exercise" with respect to _______________ Warrant Shares.

 

2. Payment of Exercise
Price. In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued
pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance
with the terms of the Warrant.

 

3. Delivery of Warrant
Shares. The Company shall deliver to the holder __________ Warrant Shares in accordance with the terms of the Warrant.

 

4. Confirmation.

a.        The
undersigned represents and warrants that it is not and has not been during the preceding three months, an “affiliate”
of the Company, as such term is defined by Rule 144(a). (Circle one) YES NO

 

b.
        The undersigned represents and warrants that it has
beneficially owned the Warrant and it has been paid for in full since ________________.

 

Date: _______________ __, ______

  

	Name of Registered Holder	 
	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Exercise Notice and hereby directs [NAME OF TRANSFER AGENT] to issue the above indicated number of shares of
Common Stock in accordance with the Transfer Agent Instructions dated December 17, 2013 from the Company and acknowledged and agreed
to by [NAME OF TRANSFER AGENT].

 

	 	EON COMMUNICATIONS CORPORATION
	 	 
	 	By: 	 
	 	Name:
	 	Title:

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