Document:

BARFRESH
FOOD GROUP INC.

2014
EQUITY INCENTIVE PLAN

 

1.
PURPOSE. The Barfresh Food Group Inc. 2014 Equity Incentive Plan has two complementary purposes: (a) to attract and
retain outstanding individuals to serve as officers, employees, directors, consultants and advisors to the Company and its Affiliates,
and (b) to increase stockholder value. The Plan will provide participants with incentives to increase stockholder value by offering
the opportunity to acquire shares of the Company’s Common Stock or receive monetary payments based on the value of such
Common Stock, on the potentially favorable terms that this Plan provides.

 

2.
EFFECTIVE DATE. The Plan shall become effective upon its adoption by the Board of Directors of the Company, subject
to approval by the stockholders of the Company within twelve (12) months of the effective date. Any Awards granted under the Plan
prior to such stockholder approval shall be conditioned on such approval.

 

3.
DEFINITIONS. Capitalized terms used in this Plan have the following meanings:

 

(a)
“Affiliate” means any entity that, directly or through one or more intermediaries, is controlled by, controls, or
is under common control with, the Company within the meaning of Code Sections 414(b) or (c), provided that, in applying such provisions,
the phrase “at least fifty percent (50%)” shall be used in place of “at least eighty percent (80%)” each
place it appears therein.

 

(b)
“Award” means a grant of Options (as defined below), Stock Appreciation Rights (as defined in Section 3(w) hereof),
Performance Shares (as defined in Section 3(p) hereof), Restricted Stock (as defined in Section 3(s) hereof), or Restricted Stock
Units (as defined in Section 3(t) hereof).

 

(c)
“Bankruptcy” shall mean (i) the filing of a voluntary petition under any bankruptcy or insolvency law, or a petition
for the appointment of a receiver or the making of an assignment for the benefit of creditors, with respect to the Participant,
or (ii) the Participant being subjected involuntarily to such a petition or assignment or to an attachment or other legal or equitable
interest with respect to the Participant’s assets, which involuntary petition or assignment or attachment is not discharged
within 60 days after its date, and (iii) the Participant being subject to a transfer of its Issued Shares by operation of law
(including by divorce, even if not insolvent), except by reason of death.

 

(d)
“Board” means the Board of Directors of the Company.

 

(e)
“Change of Control” shall be deemed to have occurred as of the first day that any one or more of the following conditions
is satisfied, including, but not limited to, the signing of documents by all parties and approval by all regulatory agencies,
if required:

 

(i)
The stockholders approve a plan of complete liquidation or dissolution of the Company; or

 

(ii)
The consummation of (A) an agreement for the sale or disposition of all or substantially all of the Company’s assets (other
than to an Excluded Person (as defined below)), or (B) a merger, consolidation or reorganization of the Company with or involving
any other corporation, other than a merger, consolidation or reorganization that would result in the holders of voting securities
of the Company outstanding immediately prior thereto continuing to hold (either by remaining outstanding or by being converted
into voting securities of the surviving entity), at least fifty percent (50%) of the combined voting power of the voting securities
of the Company (or such other surviving entity) outstanding immediately after such merger, consolidation or reorganization.

 

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An
Excluded Person means: (i) the Company or any of its Affiliates, (ii) a trustee or other fiduciary holding securities under any
employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to
an offering of such securities or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially
the same proportions as their ownership of stock in the Company.

 

Notwithstanding
the foregoing, with respect to an Award that is considered deferred compensation subject to Code Section 409A, if the definition
of “Change of Control” results in the payment of such Award, then such definition shall be amended to the minimum
extent necessary, if at all, so that the definition satisfies the requirements of a change of control under Code Section 409A.

 

(f)
“Code” means the Internal Revenue Code of 1986, as amended. Any reference to a specific provision of the Code includes
any successor provision and the regulations promulgated under such provision.

 

(g)
“Committee” means the Compensation Committee of the Board (or a successor committee with similar authority) or if
no such committee is named by the Board, than it shall mean the Board.

 

(h)
“Common Stock” means the Common Stock of the Company, par value $0.001 per share.

 

(i)
“Company” means Barfresh Food Group Inc., a Delaware corporation, or any successor thereto.

 

(j)
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time. Any reference to a specific
provision of the Exchange Act shall be deemed to include any successor provision thereto.

 

(k)
“Fair Market Value” means, per Share on a particular date, the value as determined by the Committee using a reasonable
valuation method within the meaning of Code Section 409A, based on all information in the Company’s possession at such time,
or if applicable, the value as determined by an independent appraiser selected by the Board or Committee.

 

(l)
“Issued Shares” means, collectively, all outstanding Shares issued pursuant to an Award and all Option Shares.

 

(m)
“Option” means the right to purchase Shares at a stated price upon and during a specified time. “Options”
may either be “incentive stock options” which meet the requirements of Code Section 422, or “nonqualified stock
options” which do not meet the requirements of Code Section 422.

 

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(n)
“Option Shares” means outstanding Shares that were issued to a Participant upon the exercise of an Option.

 

(o)
“Participant” means an officer or other employee of the Company or its Affiliates, or an individual that the Company
or an Affiliate has engaged to become an officer or employee, or a consultant or advisor who provides services to the Company
or its Affiliates, including a non-employee director of the Board, whom the Committee designates to receive an Award.

 

(p)
“Performance Shares” means the right to receive Shares to the extent the Company, Subsidiary, Affiliate or other business
unit and/or Participant achieves certain goals that the Committee establishes over a period of time the Committee designates.

 

(q)
“Permitted Transferee” means, in connection with a transfer made for bona fide estate planning purposes, either during
a Participant’s lifetime or on death by will or intestacy, to his or her spouse, child (natural or adopted), or any other
direct lineal descendant of such Participant (or his or her spouse) (all of the foregoing collectively referred to as “family
members”), or any other relative approved unanimously by the Board of Directors of the Company, or any custodian or trustee
of any trust, partnership or limited liability company for the benefit of, or the ownership interests of which are owned wholly
by, such Participant or any such family members.

 

(r)
“Plan” means this Barfresh Food Group Inc. 2013 Equity Incentive Plan, as amended from time to time.

 

(s)
“Restricted Stock” means Shares that are subject to a risk of forfeiture and/or restrictions on transfer (including
but not limited to stock grants with the recipient having the right to make an election under Section 83(b) of the Code), which
may lapse upon the achievement or partial achievement of performance goals during a specified period and/or upon the completion
of a period of service or upon the occurrence of other events, as determined by the Committee.

 

(t)
“Restricted Stock Unit” means the right to receive a Share, or a cash payment, the amount of which is equal to the
Fair Market Value of a Share, which is subject to a risk of forfeiture which may lapse upon the achievement or partial achievement
of performance goals during a specified period and/or upon the completion of a period of service or upon the occurrence of other
events, as determined by the Committee.

 

(u)
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

 

(v)
“Share” means a share of Common Stock.

 

(w)
“Stock Appreciation Right” or “SAR” means the right of a Participant to receive cash, and/or Shares with
a Fair Market Value, equal to the excess of the Fair Market Value of a Share over the grant price.

 

(x)
“Subsidiary” means any corporation in an unbroken chain of corporations beginning with the Company if each of the
corporations (other than the last corporation in the chain) owns stock possessing more than fifty percent (50%) of the total combined
voting power of all classes of stock in one of the other corporations in the chain.

 

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(y)
“10% Owner-Employee” means an employee who, at the time an incentive stock option is granted, owns (directly or indirectly,
within the meaning of Code Section 424(d)) more than ten percent (10%) of the total combined voting power of all classes of stock
of the Company or of any Subsidiary.

 

4.
ADMINISTRATION.

 

(a)
Committee Administration. The Committee has full authority to administer this Plan, including the authority to (i) interpret
the provisions of this Plan, (ii) prescribe, amend and rescind rules and regulations relating to this Plan, (iii) correct any
defect, supply any omission, or reconcile any inconsistency in any Award or agreement covering an Award in the manner and to the
extent it deems desirable to carry this Plan into effect, and (iv) make all other determinations necessary or advisable for the
administration of this Plan. All actions or determinations of the Committee are made in its sole discretion and will be final
and binding on any person with an interest therein. If at any time the Committee is not in existence, the Board shall administer
the Plan and references to the Committee in the Plan shall mean the Board.

 

(b)
Delegation to Committees or Officers. To the extent applicable law permits, the Board may delegate to another committee
of the Board or to one or more officers of the Company, or the Committee may delegate to a sub-committee, any or all of the authority
and responsibility of the Committee. If the Board or Committee has made such a delegation, then all references to the Committee
in this Plan include such committee, sub-committee or one or more officers to the extent of such delegation.

 

(c)
No Liability. No member of the Committee, and no individual or officer to whom a delegation under subsection (b) has been
made, will be liable for any act done, or determination made, by the individual in good faith with respect to the Plan or any
Award. The Company will indemnify and hold harmless such individual to the maximum extent that the law and the Company’s
bylaws permit.

 

5.
DISCRETIONARY GRANTS OF AWARDS. Subject to the terms of this Plan, the Committee has full power and authority to: (a)
designate from time to time the Participants to receive Awards under this Plan; (b) determine the type or types of Awards to be
granted to each Participant; (c) determine the number of Shares with respect to which an Award relates; and (d) determine any
terms and conditions of any Award including but not limited to permitting the delivery to the Company of Shares or the relinquishment
of an appropriate number of vested Shares under an exercisable Option in satisfaction of part of all of the exercise price of,
or withholding taxes with respect to, an Award. Awards may be granted either alone or in addition to, in tandem with, or in substitution
for any other Award (or any other award granted under another plan of the Company or any Affiliate). The Committee’s designation
of a Participant in any year will not require the Committee to designate such person to receive an Award in any other year.

 

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6.
SHARES RESERVED UNDER THIS PLAN.

 

(a)
Plan Reserve. An aggregate of nine million (9,000,000) Shares are reserved for issuance under this Plan, all of which may
be issued as any form of Award.

 

(b)
Replenishment of Shares Under this Plan. If an Award lapses, expires, terminates or is cancelled without the issuance of
Shares or payment of cash under the Award, then the Shares subject to or reserved for in respect of such Award, or the Shares
to which such Award relates, may again be used for new Awards as determined under subsection (a), including issuance pursuant
to incentive stock options. If Shares are delivered to (or withheld by) the Company in payment of the exercise price or withholding
taxes of an Award, then such Shares may be used for new Awards under this Plan as determined under subsection (a), including issuance
pursuant to incentive stock options. If Shares are issued under any Award and the Company subsequently reacquires them pursuant
to rights reserved upon the issuance of the Shares, then such Shares may be used for new Awards under this Plan as determined
under subsection (a), but excluding issuance pursuant to incentive stock options.

 

7.
OPTIONS. Subject to the terms of this Plan, the Committee will determine all terms and conditions of each Option, including
but not limited to:

 

(a)
Whether the Option is an incentive stock option or a nonqualified stock option; provided that in the case of an incentive stock
option, if the aggregate Fair Market Value (determined at the time of grant) of the Shares with respect to which such option and
all other incentive stock options issued under this Plan (and under all other incentive stock option plans of the Company or any
Affiliate that is required to be included under Code Section 422) are first exercisable by the Participant during any calendar
year exceeds $100,000, such Option automatically shall be treated as a nonqualified stock option to the extent this limit is exceeded.
Only employees of the Company or a Subsidiary are eligible to be granted incentive stock options;

 

(b)
The number of Shares subject to the Option;

 

(c)
The exercise price per Share, which may not be less than the Fair Market Value of a Share as determined on the date of grant;
provided that an incentive stock option granted to a 10% Owner-Employee must have an exercise price that is at least one hundred
ten percent (110%) of the Fair Market Value of a Share on the date of grant;

 

(d)
The terms and conditions of exercise; and

 

(e)
The termination date, except that each Option must terminate no later than the tenth (10th) anniversary of the date of grant and
each incentive stock option granted to any 10% Owner-Employee must terminate no later than the fifth (5th) anniversary of the
date of grant.

 

In
all other respects, the terms of any incentive stock option should comply with the provisions of Code Section 422 except to the
extent the Committee determines otherwise.

 

8.
STOCK APPRECIATION RIGHTS. Subject to the terms of this Plan, the Committee will determine all terms and conditions
of each SAR, including but not limited to:

 

(a)
The number of Shares to which the SAR relates;

 

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(b)
The grant price, provided that the grant price shall not be less than the Fair Market Value of the Shares subject to the SAR as
determined on the date of grant;

 

(c)
The terms and conditions of exercise or maturity;

 

(d)
The term, provided that an SAR must terminate no later than the tenth (10th) anniversary of the date of grant; and

 

(e)
Whether the SAR will be settled in cash, Shares or a combination thereof.

 

9.
PERFORMANCE SHARE AWARDS. Subject to the terms of this Plan, the Committee will determine all terms and conditions
of each Performance Share Award, including but not limited to:

 

(a)
The number of Shares to which the Performance Share Award relates;

 

(b)
The terms and conditions of each Award, including, without limitation, the selection of the performance goals that must be achieved
for the Participant to realize all or a portion of the benefit provided under the Award; and

 

(c)
Whether all or a portion of the Shares subject to the Award will be issued to the Participant, without regard to whether the performance
goals have been attained, in the event of the Participant’s death, disability, retirement or other circumstance.

 

10.
RESTRICTED STOCK AND RESTRICTED STOCK UNIT AWARDS. Subject to the terms of this Plan, the Committee will determine
all terms and conditions of each award of Restricted Stock or Restricted Stock Units, including but not limited to:

 

(a)
The number of Shares or Restricted Stock Units to which such Award relates;

 

(b)
The period of time over which, and/or the criteria or conditions that must be satisfied so that, the risk of forfeiture and/or
restrictions on transfer imposed on the Restricted Stock or Restricted Stock Units will lapse;

 

(c)
Whether all or a portion of the Restricted Shares or Restricted Stock Units will be released from a right of repurchase and/or
be paid to the Participant in the event of the Participant’s death, disability, retirement or other circumstance;

 

(d)
With respect to awards of Restricted Stock, the manner of registration of certificates for such Shares, and whether to hold such
Shares in escrow pending lapse of the risk of forfeiture, right of repurchase and/or restrictions on transfer or to issue such
Shares with an appropriate legend referring to such restrictions;

 

(e)
With respect to awards of Restricted Stock, whether dividends paid with respect to such Shares will be immediately paid or held
in escrow or otherwise deferred and whether such dividends shall be subject to the same terms and conditions as the Award to which
they relate; and

 

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(f)
With respect to awards of Restricted Stock Units, whether to credit dividend equivalent units equal to the amount of dividends
paid on a Share and whether such dividend equivalent units shall be subject to the same terms and conditions as the Award to which
they relate.

 

11.
TRANSFERABILITY. Except as set forth in Section 15 hereof, each award granted under this plan is not transferable other
than by will or the laws of descent and distribution, or to a revocable trust, or as permitted by Rule 701 of the Securities Act.

 

12.
TERMINATION AND AMENDMENT.

 

(a)
Term. Subject to the right of the Board or Committee to terminate the Plan earlier pursuant to Section 12(b), the Plan
shall terminate on, and no Awards may be granted after the tenth (10th) anniversary of the Plan’s effective date.

 

(b)
Termination and Amendment. The Board or Committee may amend, alter, suspend, discontinue or terminate this Plan at any
time, provided that:

 

(i)
the Board must approve any amendment of this Plan to the extent the Company determines such approval is required by: (a) action
of the Board, (b) applicable corporate law, or (c) any other applicable law or rule of a self-regulatory organization;

 

(ii)
stockholders must approve any of the following Plan amendments: (a) an amendment to materially increase any number of Shares specified
in Section 6(a) (except as permitted by Section 14(a)) or expand the class of individuals eligible to receive an Award to the
extent required by the Code, the Company’s bylaws or any other applicable law, (b) any other amendment if required by applicable
law or the rules of any self-regulatory organization, or (c) an amendment that would diminish the protections afforded by Section
12(e); provided, that such stockholder approval may be obtained within 12 months of the approval of such amendment by the Board
or Committee.

 

(c)
Amendment, Modification or Cancellation of Awards. Except as provided in subsection (e) and subject to the restrictions
of this Plan, the Committee may modify or amend an Award or waive any restrictions or conditions applicable to an Award (including
relating to the exercise, vesting or payment thereof), and the Committee may modify the terms and conditions applicable to any
Award (including the terms of the Plan), and the Committee may cancel any Award, provided that the Participant (or any other person
as may then have an interest in such Award as a result of the Participant’s death or the transfer of an Award) must consent
in writing if any such action would adversely affect the rights of the Participant (or other interested party) under such Award.
Notwithstanding the foregoing, the Committee need not obtain Participant (or other interested party) consent for the amendment,
modification or cancellation of an Award pursuant to the provisions of Section 14(a), or the amendment or modification of an Award
to the extent deemed necessary to comply with any applicable law, the listing requirements of any principal securities exchange
or market on which the Shares are then traded, or to preserve favorable accounting treatment of any Award for the Company.

 

(d)
Survival of Committee Authority and Awards. Notwithstanding the foregoing, the authority of the Committee to administer
this Plan and modify or amend an Award, and the authority of the Board or Committee to amend this Plan, shall extend beyond the
date of this Plan’s termination. In addition, termination of this Plan will not affect the rights of Participants with respect
to Awards previously granted to them, and all unexpired Awards will continue in full force and effect after termination of this
Plan except as they may lapse or be terminated by their own terms and conditions.

 

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(e)
Repricing Prohibited. Notwithstanding anything in this Plan to the contrary, neither the Committee nor any other person
may decrease the exercise price of any Option or the grant price of any SAR nor take any action that would result in a deemed
decrease of the exercise price or grant price of an Option or SAR under Code Section 409A, after the date of grant, except in
accordance with Section 1.409A-1(b)(5)(v)(D) of the Treasury Regulations (26 C.F.R.), or in connection with a transaction which
is considered the grant of a new Option or SAR for purposes of Section 409A of the Code, provided that the new exercise price
or grant price is not less than the Fair Market Value of a Share on the new grant date.

 

(f)
Foreign Participation. To assure the viability of Awards granted to Participants employed or residing in foreign countries,
the Committee may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local
law, tax policy or custom. Moreover, the Committee may approve such supplements to, or amendments, restatements or alternative
versions of this Plan as it determines is necessary or appropriate for such purposes. Any such amendment, restatement or alternative
versions that the Committee approves for purposes of using this Plan in a foreign country will not affect the terms of this Plan
for any other country.

 

13.
TAXES.

 

(a)
Withholding. In the event the Company or any Affiliate is required to withhold any foreign, Federal, state or local taxes
or other amounts in respect of any income recognized by a Participant as a result of the grant, vesting, payment or settlement
of an Award or disposition of any Shares acquired under an Award, the Company may deduct (or require an Affiliate to deduct) from
any payments of any kind otherwise due the Participant cash, or with the consent of the Committee, Shares otherwise deliverable
or vesting under an Award, to satisfy such tax obligations. Alternatively, the Company may require such Participant to pay to
the Company, in cash, promptly on demand, or make other arrangements satisfactory to the Company regarding the payment to the
Company of the aggregate amount of any such taxes and other amounts required to be withheld. If Shares are deliverable upon exercise
or payment of an Award, the Committee may permit a Participant to satisfy all or a portion of the foreign, Federal, state and
local withholding tax obligations arising in connection with such Award by electing to (a) have the Company withhold Shares otherwise
issuable under the Award, (b) tender back Shares received in connection with such Award, or (c) deliver other previously owned
Shares; provided that the amount to be withheld may not exceed the total minimum foreign, federal, state and local tax withholding
obligations associated with the transaction to the extent needed for the Company to avoid an accounting charge. If an election
is provided, the election must be made on or before the date as of which the amount of tax to be withheld is determined and otherwise
as the Company requires. In any case, the Company may defer making payment or delivery under any Award if any such tax may be
pending unless and until indemnified to its satisfaction.

 

(b)
No Guarantee of Tax Treatment. Notwithstanding any provisions of the Plan, the Company does not guarantee to any Participant
or any other person with an interest in an Award that any Award intended to be exempt from Code Section 409A shall be so exempt,
nor that any Award intended to comply with Code Section 409A shall so comply, nor that any Award designated as an incentive stock
option within the meaning of Code Section 422 qualifies as such, and neither the Company nor any Affiliate shall indemnify, defend
or hold harmless any individual with respect to the tax consequences of any such failure.

 

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14.
ADJUSTMENT PROVISIONS; CHANGE OF CONTROL.

 

(a)
Adjustment of Shares. If (i) the Company shall at any time be involved in a merger or other transaction in which the Shares
are changed or exchanged; (ii) the Company shall subdivide or combine the Shares or the Company shall declare a dividend payable
in Shares, other securities or other property; (iii) the Company shall effect a cash dividend the amount of which, on a per Share
basis, exceeds ten percent (10%) of the Fair Market Value of a Share at the time the dividend is declared, or the Company shall
effect any other dividend or other distribution on the Shares in the form of cash, or a repurchase of Shares, that the Committee
determines by resolution is special or extraordinary in nature or that is in connection with a transaction that is a recapitalization
or reorganization involving the Shares; or (iv) any other event shall occur, which, in the case of this subsection (iv), in the
judgment of the Committee necessitates an adjustment to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under this Plan, then, in each case, the Committee shall, in such manner as it may deem equitable,
adjust any or all of: (w) the number and type of Shares subject to this Plan (including the number and type of Shares that may
be issued pursuant to incentive stock options), (x) the number and type of Shares subject to outstanding Awards, (y) the grant,
purchase, or exercise price with respect to any Award, and (z) the performance goals established under any Award.

 

(i)
In any such case, the Committee may also make provision for a cash payment, in an amount determined by the Committee, to the holder
of an outstanding Award in exchange for the cancellation of all or a portion of the Award (without the consent of the holder of
an Award), effective at such time as the Committee specifies (which may be the time such transaction or event is effective); provided
that any such adjustment to an Award that is exempt from Code Section 409A shall be made in a manner that permits the Award to
continue to be so exempt, and any adjustment to an Award that is subject to Code Section 409A shall be made in a manner that complies
with the provisions thereof. However, with respect to Awards of incentive stock options, no such adjustment may be authorized
to the extent that such authority would cause this Plan to violate Code Section 422(b). Further, the number of Shares subject
to any Award payable or denominated in Shares must always be a whole number.

 

(ii)
Without limitation, in the event of any reorganization, merger, consolidation, combination or other similar corporate transaction
or event, whether or not constituting a Change of Control, other than any such transaction in which the Company is the continuing
corporation and in which the outstanding Common Stock is not being converted into or exchanged for different securities, cash
or other property, or any combination thereof, the Committee may provide that awards, without limitation, will be assumed by the
surviving corporation or its parent, will have the vesting accelerated or will be cancelled with or without consideration, in
all cases without the consent of the Participant.

 

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(iii)
Notwithstanding the foregoing, in the case of a stock dividend (other than a stock dividend declared in lieu of an ordinary cash
dividend) or subdivision or combination of the Shares (including a reverse stock split), adjustments contemplated by this subsection
that are proportionate shall nevertheless automatically be made as of the date of such stock dividend or subdivision or combination
of the Shares.

 

(b)
Issuance or Assumption. Notwithstanding any other provision of this Plan, and without affecting the number of Shares otherwise
reserved or available under this Plan, in connection with any merger, consolidation, acquisition of property or stock, or reorganization,
the Committee may authorize the cancellation, with or without consideration, issuance, assumption or acceleration of vesting of
awards upon such terms and conditions as it may deem appropriate, in all cases without the consent of the Participant.

 

(c)
Change of Control. Upon a Change of Control, the Committee may, in its discretion, determine that any or all outstanding
Awards held by Participants who are then in the employ or service of the Company or any Affiliate shall vest or be deemed to have
been earned in full, and:

 

(i)
If the successor or surviving corporation (or parent thereof) so agrees, all outstanding Awards shall be assumed, or replaced
with the same type of award with similar terms and conditions, by the successor or surviving corporation (or parent thereof) in
the Change of Control. If applicable, each Award which is assumed by the successor or surviving corporation (or parent thereof)
shall be appropriately adjusted, immediately after such Change of Control, to apply to the number and class of securities which
would have been issuable to the Participant upon the consummation of such Change of Control had the Award been exercised or vested
immediately prior to such Change of Control, and such other appropriate adjustments in the terms and conditions of the Award shall
be made.

 

(ii)
If the provisions of paragraph (i) do not apply, then all outstanding Awards shall be cancelled as of the date of the Change of
Control and, at the option of the Committee, may be exchanged for a payment in cash and/or Shares (which may include shares or
other securities of any surviving or successor entity or the purchasing entity or any parent thereof) equal to:

 

(1)
In the case of an Option or SAR, the excess of the Fair Market Value of the Shares on the date of the Change of Control covered
by the vested portion of the Option or SAR that has not been exercised over the exercise or grant price of such Shares under the
Award;

 

(2)
In the case of Restricted Stock Units, the Fair Market Value of a Share on the date of the Change of Control multiplied by the
number of vested units, unless otherwise provided in the Award agreement and subject to the repurchase right set forth in Section
15 hereof; and

 

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(3)
In the case of a Performance Share Award, the Fair Market Value of a Share on the date of the Change of Control multiplied by
the number of earned Shares.

 

(d)
Parachute Payment Limitation.

 

(i)
Except as may be set forth in a written agreement by and between the Company and the holder of an Award, in the event that the
Company’s auditors determine that any payment or transfer by the Company under the Plan to or for the benefit of a Participant
(a “Payment”) would be nondeductible by the Company for federal income tax purposes because of the provisions concerning
“excess parachute payments” in Code Section 280G, then the aggregate present value of all Payments shall be reduced
(but not below zero) to the Reduced Amount (defined herein). For purposes of this Section 14(d), the “Reduced Amount”
shall be the amount, expressed as a present value, which maximizes the aggregate present value of the Payments without causing
any Payment to be nondeductible by the Company because of Code Section 280G.

 

(ii)
If the Company’s auditors determine that any Payment would be nondeductible by the Company because of Code Section 280G,
then the Company shall promptly give the Participant notice to that effect and a copy of the detailed calculation thereof and
of the Reduced Amount, and the Participant may then elect, in his or her sole discretion, which and how much of the Payments shall
be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount)
and shall advise the Company in writing of his or her election within ten (10) days of receipt of notice. If no such election
is made by the Participant within such ten (10) day period, then the Company may elect which and how much of the Payments shall
be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount)
and shall notify the Participant promptly of such election. For purposes of this Section 14(d), present value shall be determined
in accordance with Code Section 280G(d)(4). All determinations made by the Company’s auditors under this Section 14(d) shall
be binding upon the Company and the Participant and shall be made within sixty (60) days of the date when a Payment becomes payable
or transferable. As promptly as practicable following such determination and the elections hereunder, the Company shall pay or
transfer to or for the benefit of the Participant such amounts as are then due to him or her under the Plan and shall promptly
pay or transfer to or for the benefit of the Participant in the future such amounts as become due to him or her under the Plan.

 

(iii)
Except to the extent such payment was made in connection with a Change of Control, as a result of uncertainty in the application
of Code Section 280G at the time of an initial determination by the Company’s auditors hereunder, it is possible that Payments
will have been made by the Company that should not have been made (an “Overpayment”) or that additional Payments that
will not have been made by the Company could have been made (an “Underpayment”), consistent in each case with the
calculation of the Reduced Amount hereunder. In the event that the Company’s auditors, based upon the assertion of a deficiency
by the Internal Revenue Service against the Company or the Participant that the auditors believe has a high probability of success,
determine that an Overpayment has been made, such Overpayment shall be treated for all purposes as a loan to the Participant which
he or she shall repay to the Company, together with interest at the applicable federal rate provided in Code Section 7872(f)(2);
provided, however, that no amount shall be payable by the Participant to the Company if and to the extent that such payment would
not reduce the amount subject to taxation under Code Section 4999. In the event that the auditors determine that an Underpayment
has occurred, such Underpayment shall promptly be paid or transferred by the Company to or for the benefit of the Participant,
together with interest at the applicable federal rate provided in Code Section 7872(f)(2).

 

    	11

    	 

    

 

(iv)
For purposes of this Section 14(d), the term “Company” shall include affiliated corporations to the extent determined
by the auditors in accordance with Code Section 280G(d)(5).

 

15.
STOCK TRANSFER RESTRICTIONS.

 

(a)
Restriction on Transfer of Options. No Option shall be transferable by the Participant otherwise than by will or by the
laws of descent and distribution and all Options shall be exercisable, during the Participant’s lifetime, only by the Participant,
or by the Participant’s legal representative or guardian in the event of the Participant’s incapacity. The Participant
may elect to designate a beneficiary by providing written notice of the name of such beneficiary to the Company, and may revoke
or change such designation at any time by filing written notice of revocation or change with the Company, and any such beneficiary
may exercise the Participant’s Option in the event of the Participant’s death to the extent provided herein. If the
Participant does not designate a beneficiary, or if the designated beneficiary predeceases the Participant, the legal representative
of the Participant may exercise the Option in the event of the Participant’s death to the extent provided herein. Notwithstanding
the foregoing, the Committee, in its sole discretion, may provide in the Award agreement regarding a given Option that the Participant
may transfer, without consideration for the transfer, his or her Options to members of his or her immediate family, to trusts
for the benefit of such family members, or to partnerships in which such family members are the only partners, provided that the
transferee agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and the applicable Option.

 

(b)
Issued Shares. No Issued Shares shall be sold, assigned, transferred, pledged, hypothecated, given away or in any other
manner disposed of or encumbered, whether voluntarily or by operation of law, unless such transfer is in compliance with the terms
of the applicable Award, all applicable securities laws (including, without limitation, the Securities Act and the Exchange Act),
and with the terms and conditions of this Section 15. In connection with any proposed transfer, the Committee may require the
transferor to provide at the transferor’s own expense an opinion of counsel to the transferor and the Company, satisfactory
to the Committee that such transfer is in compliance with all foreign, federal and state securities laws (including, without limitation,
the Securities Act). Any attempted disposition of Issued Shares not in accordance with the terms and conditions of this Section
15 shall be null and void, and the Company shall not reflect on its records any change in record ownership of any Issued Shares
as a result of any such disposition, shall otherwise refuse to recognize any such disposition and shall not in any way give effect
to any such disposition of Issued Shares.

 

    	12

    	 

    

 

(c)
Legends. The Company may cause a legend or legends to be put on any certificates for shares to make appropriate references
to any applicable legal restrictions on transfer.

 

(d)
Adjustments for Changes in Capital Structure. If, as a result of any reorganization, recapitalization, reclassification,
stock dividend, stock split, reverse stock split or other similar change in the outstanding Shares of the Company, the outstanding
Shares are increased or decreased or are exchanged for a different number or kind of shares of the Company’s stock, the
restrictions contained in this Section 15 shall apply with equal force to additional and/or substitute securities, if any, received
by Participant in exchange for, or by virtue of his or her ownership of, Issued Shares.

 

16.
MISCELLANEOUS.

 

(a)
Other Terms and Conditions. The grant of any Award under this Plan may also be subject to other provisions (whether or
not applicable to the Award awarded to any other Participant) as the Committee determines appropriate, subject to any limitations
imposed in the Plan.

 

(b)
Code Section 409A. The provisions of Code Section 409A are incorporated herein by reference to the extent necessary for
any Award that is subject to Code Section 409A to comply therewith.

 

(c)
Employment or Service. The issuance of an Award shall not confer upon a Participant any right with respect to continued
employment or service with the Company or any Affiliate, or the right to continue as a consultant or director. Unless determined
otherwise by the Committee, for purposes of the Plan and all Awards, the following rules shall apply:

 

(i)
a Participant who transfers employment between the Company and any Affiliate, or between Affiliates, will not be considered to
have terminated employment;

 

(ii)
a Participant who ceases to be a consultant, advisor or non-employee director because he or she becomes an employee of the Company
or an Affiliate shall not be considered to have ceased service with respect to any Award until such Participant’s termination
of employment with the Company and its Affiliates;

 

(iii)
a Participant who ceases to be employed by the Company or an Affiliate of the Company and immediately thereafter becomes a non-employee
director of the Company or any Affiliate, or a consultant to the Company or any Affiliate, shall not be considered to have terminated
employment until such Participant’s service as a director of, or consultant to, the Company and its Affiliates has ceased;
and

 

(iv)
a Participant employed by an Affiliate will be considered to have terminated employment when such entity ceases to be an Affiliate
of the Company.

 

    	13

    	 

    

 

Notwithstanding
the foregoing, with respect to an Award subject to Code Section 409A, a Participant shall be considered to have terminated employment
(where termination of employment triggers payment of the Award) upon the date of his separation from service within the meaning
of Code Section 409A.

 

(d)
No Fractional Shares. No fractional Shares or other securities may be issued or delivered pursuant to this Plan, and the
Committee may determine whether cash, other securities or other property will be paid or transferred in lieu of any fractional
Shares or other securities, or whether such fractional Shares or other securities or any rights to fractional Shares or other
securities will be canceled, terminated or otherwise eliminated.

 

(e)
Unfunded Plan. This Plan is unfunded and does not create, and should not be construed to create, a trust or separate fund
with respect to this Plan’s benefits. This Plan does not establish any fiduciary relationship between the Company and any
Participant. To the extent any person holds any rights by virtue of an Award granted under this Plan, such rights are no greater
than the rights of the Company’s general unsecured creditors.

 

(f)
Requirements of Law. The granting of Awards under this Plan and the issuance of Shares in connection with an Award are
subject to all applicable laws, rules and regulations and to such approvals by any governmental agencies or national securities
exchanges as may be required. Notwithstanding any other provision of this Plan or any award agreement, the Company has no liability
to deliver any Shares under this Plan or make any payment unless such delivery or payment would comply with all applicable laws
and the applicable requirements of any securities exchange or similar entity. In such event, the Company may substitute cash for
any Share(s) otherwise deliverable hereunder without the consent of the Participant or any other person.

 

(g)
Governing Law. This Plan, and all agreements under this Plan, shall be construed in accordance with and governed by the
laws of the State of New York, without reference to any conflict of law principles. Any legal action or proceeding with respect
to this Plan, any Award or any award agreement, or for recognition and enforcement of any judgment in respect of this Plan, any
Award or any award agreement, may only be brought and determined in a court sitting in the State of New York, New York County.

 

(h)
Limitations on Actions. Any legal action or proceeding with respect to this Plan, any Award or any Award agreement, must
be brought within one year (365 days) after the day the complaining party first knew or should have known of the events giving
rise to the complaint.

 

(i)
Construction. Whenever any words are used herein in the masculine, they shall be construed as though they were used in
the feminine in all cases where they would so apply; and wherever any words are used in the singular or plural, they shall be
construed as though they were used in the plural or singular, as the case may be, in all cases where they would so apply. Titles
of sections are for general information only, and the Plan is not to be construed with reference to such titles.

 

(j)
Severability. If any provision of this Plan or any award agreement or any Award (i) is or becomes or is deemed to be invalid,
illegal or unenforceable in any jurisdiction, or as to any person or Award, or (ii) would disqualify this Plan, any award agreement
or any Award, then such provision should be construed or deemed amended to conform to applicable laws, or if it cannot be so construed
or deemed amended without, in the determination of the Committee, materially altering the intent of this Plan, award agreement
or Award, then such provision should be stricken as to such jurisdiction, person or Award, and the remainder of this Plan, such
award agreement and such Award will remain in full force and effect.

 

[Remainder
of page intentionally left blank]

 

    	14

    	 

    

 

C
E R T I F I C A T I O N

 

On
behalf of the Company, the undersigned hereby certifies that this Barfresh Food Group Inc. 2013 Equity Incentive Plan has been
approved by the Board of Directors and stockholders of the Company as of October __, 2013.

 

	 	BARFRESH FOOD GROUP INC.
	 	 	 
	 	By:	
	 	Name:	Riccardo Delle
    Coste
	 	Title:	Chief Executive
    Officer/Director

 

    	15Exhibit 4.01

 

 

 

  Exhibit 4.01 
 

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

 

 WARRANT
 

 TRANS-LUX CORPORATION
 Warrant Shares: 33,333 
         Initial Exercise Date: June 27, 2014
 THIS WARRANT (the “Warrant”) certifies that, for value received, Retop Industrial (Hong Kong) Limited (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, (A) at any time on or after the initial exercise date hereof (the “Initial Exercise Date”) , and (B) on or prior to the close of business on the two-year anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, to subscribe for and purchase from Trans-Lux Corporation, a Delaware corporation (the “Company”), up to 33,333 shares (as subject to adjustment hereunder, the “Warrant Shares”) of the Company’s common stock, par value $.001 per share (“Common Stock”) of the Company.  The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 1(b).
 Section 1.
 Exercise.
 a)
 Exercise of Warrant.  Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times after the Initial Exercise Date as specified above and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise form annexed hereto.  Within three (3) business days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank in the applicable Notice of Exercise.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) business days of the date the final Notice of Exercise is delivered to the Company.  Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding 
 

 1
 

 
 number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.  The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases.  The Company shall deliver any objection to any Notice of Exercise Form within one (1) business day of receipt of such notice.  The Holder, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.
 b)
 Exercise Price.  The exercise price per share of the Common Stock under this Warrant shall be $8.00 subject to adjustment hereunder (the “Exercise Price”).
 c)
 Mechanics of Exercise.
 i.
 Delivery of Certificates Upon Exercise.  Certificates for shares purchased hereunder shall be transmitted by the transfer agent to the Holder free of restrictive legends unless a registration statement covering the resale of the Warrant Shares and naming the Holder as a selling stockholder thereunder is not then effective, or the Warrant Shares are not freely transferable without volume restrictions pursuant to Rule 144 under the Securities Act, in each case by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is three (3) business days after the latest of (A) the delivery to the Company of the Notice of Exercise, (B) surrender of this Warrant (if required), and (C) payment of the aggregate Exercise Price as set forth above (such date, the “Warrant Share Delivery Date”).  The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price except for a Cashless Exercise as set forth in Section 2 (e), prior to the issuance of such shares, having been paid. 
 ii.
 Delivery of New Warrants Upon Exercise.  If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.
 iii.
 No Fractional Shares or Scrip.  No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant.  As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.
 iv.
 Charges, Taxes and Expenses.  Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the 
 

 2
 

 
 Holder, provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or Warrants in a name other than that of the Holder; and provided further, that the Holder shall be responsible for any legal fees associated with the preparation and delivery of any opinion of counsel that may be required to be delivered upon transfer of the Warrant or any portion thereof..
 v.
 Closing of Books.  The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.
 Section 2.
 Certain Adjustments.
 a)
 Stock Dividends and Splits.  If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged.  Any adjustment made pursuant to this Section 2(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.
 b)
 Reclassification, Exchange, Combinations or Substitution.  Upon any event whereby all of the outstanding shares of the Common Stock are reclassified, exchanged, combined, substituted, or replaced for, into, with or by Company securities of a different class and/or series, then from and after the consummation of such event, this Warrant will be exercisable for the number, class and series of Company securities that Holder would have received had the Warrant Shares been outstanding on and as of the consummation of such event, and subject to further adjustment thereafter from time to time in accordance with the provisions of this Warrant.  The provisions of this Section 2(b) shall similarly apply to successive reclassifications, exchanges, combinations substitutions, replacements or other similar events.
 
 (c)
 Fundamental Transactions.  If, at any time while this Warrant is outstanding, (i) the Company effects any merger or consolidation of the Company with or into another person, (ii) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (other than as a result of a subdivision or combination of shares of Common Stock covered by Section 2(b) above) (in any such case, a "Fundamental Transaction"), then the Holder shall have the right 
 

 3
 

 
 thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the Holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant (the "Alternate Consideration").  The aggregate Exercise Price for this Warrant will not be affected by any such Fundamental Transaction, but the Company shall apportion such aggregate Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.  If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction.  In the event of a Fundamental Transaction, the Company or the successor or purchasing person, as the case may be, shall execute with the Holder a written agreement providing that: 
 
 (x)
 this Warrant shall thereafter entitle the Holder to purchase the Alternate Consideration in accordance with this Section 2(c); 
 
 (y)
 in the case of any such successor or purchasing person, upon such consolidation, merger, statutory exchange, combination, sale or conveyance, such successor or purchasing person shall be jointly and severally liable with the Company for the performance of all of the Company's obligations under this Warrant and the Securities Purchase Agreement; and 
 
 (z)
 if registration or qualification is required under the Securities Act or applicable state law for the public resale by the Holder of shares of stock and other securities so issuable upon exercise of this Warrant, all rights applicable to registration of the Common Stock issuable upon exercise of this Warrant shall apply to the Alternate Consideration. 
 If, in the case of any Fundamental Transaction, the Alternate Consideration includes shares of stock, other securities, other property or assets of a person other than the Company or any such successor or purchasing person, as the case may be, in such Fundamental Transaction, then such written agreement shall also be executed by such other person and shall contain such additional provisions to protect the interests of the Holder as the Board of Directors of the Company shall reasonably consider necessary by reason of the foregoing.  At the Holder's request, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing the Holder's right to purchase the Alternate Consideration for the aggregate Exercise Price upon exercise thereof.  The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Subsection (d) and insuring that the Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.  If any Fundamental Transaction constitutes or results in a change of control, the Company (or any such successor or surviving entity) will purchase the Warrant from the Holder for a purchase price, payable in cash within five business days after such request (or, if later, on the effective date of the Fundamental Transaction), equal to the Black-Scholes value of the remaining unexercised portion of this Warrant on the date of such request.
 (d)
 Notice of Corporate Events.  If the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect of its Common Stock, including without limitation any granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any Subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or 
 

 4
 

 
 solicits stockholder approval for any Fundamental Transaction, or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then the Company shall deliver to the Holder a notice describing the material terms and conditions of such transaction, at least 20 calendar days prior to the applicable record or effective date on which a Person would need to hold Common Stock in order to participate in or vote with respect to such transaction, and the Company will take all steps reasonably necessary in order to insure that the Holder is given the practical opportunity to exercise this Warrant prior to such time so as to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of the corporate action required to be described in such notice.
 
 (e)
 Cashless Exercise.  Provided that the Company's Common Stock is listed on a Listed Stock Exchange, the Holder may satisfy its obligation to pay the Exercise Price through a "cashless exercise," in which event the Company shall issue to the Holder the number of Warrant Shares determined as follows: 
 X = Y [(A-B)/A] 
 where: 
 X = the number of Warrant Shares to be issued to the Holder. 
 

 Y = the number of Warrant Shares with respect to which this Warrant is being exercised. 
 

 A = the arithmetic average of the closing prices for the five trading days (as reflected on such Listed Stock Exchange) immediately prior to (but not including) the Exercise Date. 
 

 B = the Exercise Price. 
 

 For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction 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.
 (f)
 Calculations.  All calculations under this Section 2 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.  For purposes of this Section 2, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.
 (g)
 Notice to Holder.  
 i.
 Adjustment to Exercise Price.  Whenever the Exercise Price is adjusted pursuant to any provision of this Section 2, the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.
 ii.
 Notice to Allow Exercise by Holder.  If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or 
 

 5
 

 
 a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice.  To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K or issue a press release disclosing such material non-public information.  The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice  except as may otherwise be expressly set forth herein.
 (h)
 The Company's obligations to issue and deliver Warrant Shares in accordance with the terms 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, or any breach or alleged breach by the Holder or any other person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares.  Nothing herein 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 or injunctive relief with respect to the Company's failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof
 Section 3.
 Transfer of Warrant.
 a)
 Transferability.  This Warrant and all rights hereunder (including, without limitation, any registration rights) are not transferable by Holder at any time, either in whole or in 
 

 6
 

 
 part.  Notwithstanding the foregoing, the Warrant Shares issued upon the exercise of this Warrant may be transferred in accordance with all applicable securities laws.
 b)
 Warrant Register.  The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the Holder.  The Company may deem and treat the Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.
 c)
 Acknowledgement.   Holder acknowledges that, at any time this Warrant is exercised, unless the Warrant Shares are either (i) registered pursuant to an effective registration statement under the Securities Act and  under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or current public information requirements pursuant to Rule 144, the Holder will receive the applicable Warrant Shares in the form of restricted stock of the Company. 
 d)
 Representation by the Holder.  The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.
 Section 4.
 Miscellaneous.
 a)
 No Rights as Stockholder Until Exercise.  This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 1(c)(i).
 b)
 Loss, Theft, Destruction or Mutilation of Warrant.  The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.
 c)
 Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a business day, then, such action may be taken or such right may be exercised on the next succeeding business day.
 d)
 Authorized Shares.
 The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.  The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant.  The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or 
 

 7
 

 
 regulation, or of any requirements of the domestic securities exchange trading market upon which the Common Stock may be listed.  The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of such issue).
 Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.  Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.
 Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.
 e)
 Governing Law.  This Warrant shall be governed by and construed in accordance with the internal laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of New York.
 f)
 Restrictions.  The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities laws.
 g)
 Nonwaiver and Expenses.  No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding the fact that all rights hereunder terminate on the Termination Date.  If the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.
 h)
 Notices.  All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return 
 

 8
 

 
 receipt requested, postage prepaid.  Such communications must be sent to the respective parties at the addresses indicated below (or at such other address for a party as shall be specified in a notice given in accordance with this Section 4(d)(h).
 	 	
	 If to the Company:
	 TRANS-LUX CORPORATION
 950 Third Avenue, Suite 2804
 New York, NY 10022
 

 Facsimile:  203-229-0691
 E-mail: jmallain@trans-lux.com
 Attention: J.M. Allain, President and CEO 

	 If to the Holder:
	 Unit 27,13/F,Shing Yip Industrial Building
 19-21 Shing Yip Street, Kwun Tong, Kowloon, HongKong
 

 Facsimile:
 +86-755-26002666
 E-mail: 2375997478@qq.com
 Attention:
 Yaozhong Shi

 i)
 Limitation of Liability.  No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.
 j)
 Remedies.  The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant.  The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.
 k)
 Successors and Assigns.  Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company.  The provisions of this Warrant are intended to be solely for the benefit of the Holder of this Warrant and shall be enforceable by the Holder.
 l)
 Amendment.  This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.
 m)
 Severability.  Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.
 n)
 Headings.  The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.
 

 9
 

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

 	
	 TRANS-LUX CORPORATION
 

	 By:__________________________________________
      Name:  
      Title:  

 

 

 

 10
 

 
 

 NOTICE OF EXERCISE
 

 TO:
 TRANS-LUX CORPORATION
 

 (1)
 The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.
 (2)
 Payment shall take the form of [  ] cashier’s check or [  ] wire transfer in lawful money of the United States.
 (3)
 Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is specified below:
 _______________________________
 

 

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

 DWAC Account No.: _______________________________
 or
 

 Physical Address
 _______________________________
 

 _______________________________
 

 _______________________________
 

 

 

 Name of Holder:  ___________________________________________________
 

 Signature of Holder: _________________________________________________
 

 Date: ________________________________________________________________________________________

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