Document:

Exhibit
4.1

 

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

 

FORM
OF COMMON STOCK PURCHASE WARRANT

 

AKERS
BIOSCIENCES, INC.

 

	Warrant
    Shares:__________	Initial
    Exercise Date:____________

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, ____________ or its assigns
(the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and on or prior to 5:00 p.m.
(New York City time) on ____________1 (the “Termination Date”) but not thereafter, to subscribe
for and purchase from Akers Biosciences, Inc., a New Jersey corporation (the “Company”), up to _______ shares
(as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price of one share
of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section
1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain
Securities Purchase Agreement (the “Purchase Agreement”), dated November 11, 2020, among the Company and the
purchasers signatory thereto.

 

 

1
The date that is the 5.5 year anniversary of the Initial Exercise Date, provided that, if such date is not a Trading Day,
insert the immediately following Trading Day.

 

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Section
2. Exercise.

 

a)
Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any
time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly
executed facsimile copy or PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto
(the “Notice of Exercise”). Within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days
comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid,
the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer
or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below
is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion
guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein
to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased
all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender
this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is
delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant
Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in
an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing
the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of
Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant,
acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant
Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount
stated on the face hereof.

 

b)
Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $1.85, subject to adjustment hereunder
(the “Exercise Price”).

 

c)
Cashless Exercise. If at any time following the six-month anniversary of the Closing Date, there is no effective registration
statement registering, or the prospectus contained therein is not available for the resale of the Warrant Shares by
the Holder, then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise”
in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B)
(X)] by (A), where:

 

(A)
= as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice
of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both
executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours”
(as defined in Rule 600(b)(68) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the
option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise
or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s
execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours”
on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular
trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice
of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered
pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;

 

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

 

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

 

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

 

“Bid
Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common
Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading
Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX
as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common
Stock are then reported on The Pink Open Market (or a similar organization or agency succeeding to its functions of reporting
prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value
of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in
interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be
paid by the Company.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading
Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX
as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common
Stock are then reported in The Pink Open Market (or a similar organization or agency succeeding to its functions of reporting
prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value
of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in
interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be
paid by the Company.

 

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Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise
pursuant to this Section 2(c).

 

d)
Mechanics of Exercise.

 

i.
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with
The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company
is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder
without volume or manner-of-sale limitations pursuant to Rule 144 (assuming cashless exercise of the Warrants), and otherwise
by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee,
for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder
in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the
Notice of Exercise and (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company (such date, the
“Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all
corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised,
irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than
in the case of a cashless exercise) is received within two (2) Trading Days following delivery of the Notice of Exercise. If the
Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share
Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant
Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10
per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for
each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise.
The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding
and exercisable.

 

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

 

iii.
Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant
to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

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

 

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

 

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

 

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

 

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e)
Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not
have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect
to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s
Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons,
“Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined
below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its
Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with
respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable
upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates
or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the
Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties.
Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged
by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of
the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent
that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation
to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant
is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be
the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together
with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the
Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.
In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d)
of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the
number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected
in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent
public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the
number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within one Trading
Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number
of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the
Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such number
of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of
the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock
issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership
Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the
number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon
exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the
Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company.
The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms
of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect
to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

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Section
3. Certain Adjustments.

 

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

 

b)
[RESERVED]

 

c)
Subsequent Rights Offering. If the Company, at any time while the Warrant is outstanding, shall issue rights, options or
warrants to all holders of Common Stock entitling them to subscribe for or purchase shares of Common Stock (the “Purchase
Rights”), then, upon any exercise of this Warrant, the Holder will be entitled to acquire, upon the terms applicable
to such Purchase Rights, the aggregate Purchase Rights that the Holder could have acquired if the Holder had held the number of
Warrant Shares issued upon such exercise of this Warrant immediately before the date on which a record is taken for the grant,
issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of
Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that
the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership
Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership
of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall
be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the
Beneficial Ownership Limitation). For the term of the Warrant, the Company shall hold such Purchase Rights for the benefit of
the Holder until the Holder exercises this Warrant or any portion thereof.

 

d)
Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders
of Common Stock evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe
for or purchase any security other than the Common Stock (a “Distribution”), then, upon any exercise of this
Warrant, 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 Warrant Shares issued upon such exercise of this Warrant immediately before the date
on which a record is taken for such Warrant, 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. For the term of the Warrant, the Company shall
hold such Distribution for the benefit of the Holder until the Holder exercises this Warrant or any portion thereof.

 

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

 

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

 

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g)
Notice to Holder.

 

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

 

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

 

    	10

     

    

 

h)
Voluntary Adjustment By Company. Subject to the rules and regulations of the Trading Market, the Company may at any time
during the term of this Warrant, subject to the prior written consent of the Holder, 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.

 

i)
Merger. For the avoidance of doubt, in no event shall the Merger be deemed a Fundamental Transaction or result in any adjustments
under this Section 3.

 

Section
4. Transfer of Warrant.

 

a)
Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d)
hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without
limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office
of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached
hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making
of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants
in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument
of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically
surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender
this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company
assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for
the purchase of Warrant Shares without having a new Warrant issued.

 

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

 

    	11

     

    

 

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

 

d)
Transfer Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant,
the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities
Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions
or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer,
that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section 5.7 of the Purchase Agreement.

 

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

 

Section
5. Miscellaneous.

 

a)
No Rights as Stockholder Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting
rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i),
except as expressly set forth in Section 3. Without limiting any rights of a Holder to receive Warrant Shares on a “cashless
exercise” pursuant to Section 2(c) or to receive cash payments pursuant to Section 2(d)(i) and Section 2(d)(iv) herein,
in no event shall the Company be required to net cash settle an exercise of this Warrant.

 

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.

 

    	12

     

    

 

d)
Authorized Shares.

 

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

 

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

 

    	13

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(Signature
Page Follows)

 

    	14

     

    

 

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

 

	 	AKERS
    BIOSCIENCES, inc.
	 	 	 
	 	By:	 
	 	Name:	Christopher C. Schreiber
	 	Title:	Executive Chairman of the Board of Directors,
    
	 	 	President and Director

 

    	 

     

    

 

NOTICE
OF EXERCISE

 

To:
AKERS BIOSCIENCES, inc.

 

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

 

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

 

[  ]
in lawful money of the United States; or

 

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

 

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

 

_______________________________

 

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

 

_______________________________

 

_______________________________

 

_______________________________

 

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

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity: ________________________________________________________________________

Signature
of Authorized Signatory of Investing Entity: _________________________________________________

Name
of Authorized Signatory: ___________________________________________________________________

Title
of Authorized Signatory: ____________________________________________________________________

Date:
________________________________________________________________________________________

 

    	 	1	 

    	 

    

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

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

 

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

 

	Name:	______________________________________
	 	(Please
    Print)
	Address:	______________________________________
	 

         

        Phone
        Number:

         

        Email
        Address:
	(Please
        Print)

         

        ______________________________________

         

        ______________________________________

	 	 
	Dated:
    _______________ __, ______	 
	 	 
	Holder’s
    Signature:___________________	 
	 	 
	Holder’s
    Address:___________________	 

 

    	 	2Exhibit
4.10

 

PACIFIC
ETHANOL, INC.

2016
STOCK INCENTIVE PLAN

(Adopted
March 25, 2016, and ratified by Stockholders June 16, 2016;

Amended
March 29, 2018, and ratified by Stockholders June 14, 2018;

Amended
August 6, 2019, and ratified by Stockholders November 7, 2019;

Amended
September 2, 2020, and ratified by Stockholders November 18, 2020)

 

ARTICLE
ONE

GENERAL PROVISIONS

 

I.
Purpose of the Plan.

 

This
2016 Stock Incentive Plan is intended to promote the interests of Pacific Ethanol, Inc. by providing eligible persons in the Corporation’s
service with the opportunity to acquire a proprietary or economic interest, or otherwise increase their proprietary or economic
interest, in the Corporation as an incentive for them to remain in such service and render superior performance during such service.
Capitalized terms not otherwise defined herein shall have the meanings assigned to such terms in the attached Appendix.

 

II.
Structure of the Plan.

 

A. The
Plan is divided into two equity-based incentive programs:

 

		●	the
                                         Discretionary Grant Program, under which eligible persons may, at the discretion of the
                                         Plan Administrator, be granted options to purchase shares of common stock or stock appreciation
                                         rights tied to the value of such common stock; and

 

		●	the
                                         Stock Issuance Program, under which eligible persons may be issued shares of common stock
                                         pursuant to restricted stock or restricted stock unit awards or other stock-based awards,
                                         made by and at the discretion of the Plan Administrator, that vest upon the completion
                                         of a designated service period and/or the attainment of pre-established performance milestones,
                                         or under which shares of common stock may be issued through direct purchase or as a bonus
                                         for services rendered to the Corporation (or any Parent or Subsidiary).

 

B. The
provisions of Articles One and Four shall apply to all equity programs under the Plan and shall govern the interests of
all persons under the Plan.

 

III. Administration
of the Plan.

 

A. The
Compensation Committee shall have sole and exclusive authority to administer the Discretionary Grant and Stock Issuance Programs,
provided, however, that the Board may retain, reassume or exercise from time to time the power to administer those programs with
respect to all persons. However, any discretionary Awards to members of the Compensation Committee must be authorized and approved
by a disinterested majority of the Board.

 

B. The
Plan Administrator shall, within the scope of its administrative functions under the Plan, have full power and authority (subject
to the provisions of the Plan) to establish such rules and regulations as it may deem appropriate for proper administration of
the Discretionary Grant and Stock Issuance Programs and to make such determinations under, and issue such interpretations of,
the provisions of those programs and any outstanding Awards thereunder as it may deem necessary or advisable. Decisions of the
Plan Administrator within the scope of its administrative functions under the Plan shall be final and binding on all parties who
have an interest in the Discretionary Grant and Stock Issuance Programs under its jurisdiction or any Award thereunder.

 

     

     

    

 

C. Service
on the Compensation Committee shall constitute service as a Board member, and members of each such committee shall accordingly
be entitled to full indemnification and reimbursement as Board members for their service on such committee. No member of the Compensation
Committee shall be liable for any act or omission made in good faith with respect to the Plan or any Award under the Plan.

 

IV. Eligibility.

 

A. The
persons eligible to participate in the Discretionary Grant and Stock Issuance Programs are as follows:

 

(i)
Employees;

 

(ii)
non-employee members of the Board or the board of directors of any Parent or Subsidiary; and

 

(iii)
Consultants.

 

B. The
Plan Administrator shall, within the scope of its administrative jurisdiction under the Plan, have full authority to determine
(i) with respect to Awards made under the Discretionary Grant Program, which eligible persons are to receive such Awards, the
time or times when those Awards are to be made, the number of shares to be covered by each such Award, the status of any awarded
option as either an Incentive Option or a Non-Statutory Option, the exercise price per share in effect for each Award (subject
to the limitations set forth in Article Two), the time or times when each Award is to vest and become exercisable,
subject to a minimum initial vesting period of one (1) year, and the maximum term for which the Award is to remain outstanding,
and (ii) with respect to Awards under the Stock Issuance Program, which eligible persons are to receive such Awards, the time
or times when the Awards are to be made, the number of shares subject to each such Award, the vesting schedule (if any) applicable
to the shares subject to such Award, subject to a minimum initial vesting period of one (1) year, and the cash consideration (if
any) payable for such shares.

 

C. The
Plan Administrator shall have the absolute discretion to grant options or stock appreciation rights in accordance with the Discretionary
Grant Program and to effect stock issuances or other stock-based awards in accordance with the Stock Issuance Program.

 

V. Stock
Subject to the Plan.

 

A. The
stock issuable under the Plan shall be shares of authorized but unissued or reacquired common stock, including shares repurchased
by the Corporation on the open market. Subject to any additional shares authorized by the vote of the Board and approved by the
stockholders, the number of shares of common stock reserved for issuance over the term of the Plan shall not exceed 7,400,000
shares. Any or all of the shares of common stock reserved for issuance under the Plan shall be authorized for issuance pursuant
to Incentive Options or other Awards.

 

B. No
one person participating in the Plan may be granted Awards of common stock having a Fair Market Value on the applicable grant
date(s) of more than One Million Dollars ($1,000,000) in the aggregate per calendar year.

 

    2

     

    

 

C. Shares
of common stock subject to outstanding Awards under the Plan shall in no event become eligible for reissuance under the Plan,
whether as a result of expiration or termination of an Award, cancellation or repurchase of unvested shares, tender of shares
in connection with a net/cashless exercise program, withholding of shares to cover withholding taxes, or otherwise.

 

D. If
any change is made to the common stock by reason of any stock split, stock dividend, recapitalization, combination of shares,
exchange of shares or other change affecting the outstanding common stock as a class without the Corporation’s receipt of
consideration, appropriate adjustments shall be made by the Plan Administrator to (i) the maximum number and/or class of securities
issuable under the Plan, (ii) the maximum number and/or class of securities for which any one person may be granted Awards under
the Plan per calendar year, (iii) the number and/or class of securities and the exercise or base price per share (or any other
cash consideration payable per share) in effect under each outstanding Award under the Discretionary Grant Program, and (iv) the
number and/or class of securities subject to each outstanding Award under the Stock Issuance Program and the cash consideration
(if any) payable per share thereunder. To the extent such adjustments are to be made to outstanding Awards, those adjustments
shall be effected in a manner that shall preclude the enlargement or dilution of rights and benefits under those Awards. The adjustments
determined by the Plan Administrator shall be final, binding and conclusive.

 

VI. Clawback
Policy.

 

The
Plan Administrator shall, notwithstanding anything to the contrary contained in any Award document or in any employment or other
agreement, have full power and authority, and is required, to terminate any vested or unvested Award or require repayment to the
Corporation of the proceeds received by a participant arising from any Award, to apply the Corporation’s Policy for Recoupment
of Incentive Compensation dated March 29, 2018, as such policy may be amended by the Corporation from time to time, or any successor
“clawback” or similar policy adopted by the Corporation, including any such policy or policy changes mandated by or
implemented pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act or the applicable listing requirements or
rules and regulations of The NASDAQ Capital Market, if applicable, and any other stock exchange or other market on which common
stock is then quoted or listed for trading.

 

ARTICLE
TWO

DISCRETIONARY GRANT PROGRAM

 

I. Option
Terms.

 

Each
option shall be evidenced by one or more documents in the form approved by the Plan Administrator; provided, however, that each
such document shall comply with the terms specified below. Each document evidencing an Incentive Option shall, in addition, be
subject to the provisions of the Plan applicable to such options.

 

A. Exercise
Price.

 

1. The
exercise price per share shall be fixed by the Plan Administrator but shall not be less than 85% of the Fair Market Value per
share of common stock on the option grant date.

 

    3

     

    

 

2. The
exercise price shall become immediately due upon exercise of the option and shall be payable in one or more of the following forms
that the Plan Administrator may deem appropriate in each individual instance:

 

(i)
cash or check made payable to the Corporation;

 

(ii)
shares of common stock valued at Fair Market Value on the Exercise Date and held for the period (if any) necessary to avoid any
additional charges to the Corporation’s earnings for financial reporting purposes; or

 

(iii)
to the extent the option is exercised for vested shares, through a special sale and remittance procedure pursuant to which the
Optionee shall concurrently provide irrevocable instructions to (a) a brokerage firm to effect the immediate sale of the purchased
shares and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the
aggregate exercise price payable for the purchased shares plus all applicable federal, state and local income and employment taxes
required to be withheld by the Corporation by reason of such exercise and (b) the Corporation to deliver the certificates for
the purchased shares directly to such brokerage firm to complete the sale.

 

Except
to the extent such sale and remittance procedure is utilized, payment of the exercise price for the purchased shares must be made
on the Exercise Date.

 

B. Exercise
and Term of Options. Each option shall be exercisable at such time or times, during such period and for such number of
shares as shall be determined by the Plan Administrator and set forth in the documents evidencing the option. However, no option
shall have a term in excess of ten years measured from the option grant date.

 

C. Effect
of Termination of Service.

 

1. The
following provisions shall govern the exercise of any options held by the Optionee at the time of cessation of Service or death:

 

(i)
Any option outstanding at the time of the Optionee’s cessation of Service for any reason shall remain exercisable for such
period of time thereafter as shall be determined by the Plan Administrator and set forth in the documents evidencing the option
or as otherwise specifically authorized by the Plan Administrator in its sole discretion pursuant to an express written agreement
with Optionee, but no such option shall be exercisable after the expiration of the option term.

 

(ii)
Any option held by the Optionee at the time of death and exercisable in whole or in part at that time may be subsequently exercised
by the personal representative of the Optionee’s estate or by the person or persons to whom the option is transferred pursuant
to the Optionee’s will or the laws of inheritance or by the Optionee’s designated beneficiary or beneficiaries of
that option.

 

(iii)
During the applicable post-Service exercise period, the option may not be exercised in the aggregate for more than the number
of vested shares for which that option is at the time exercisable. No additional shares shall vest under the option following
the Optionee’s cessation of Service, except to the extent (if any) specifically authorized by the Plan Administrator in
its sole discretion pursuant to an express written agreement with Optionee. Upon the expiration of the applicable exercise period
or (if earlier) upon the expiration of the option term, the option shall terminate and cease to be outstanding for any shares
for which the option has not been exercised.

 

    4

     

    

 

2. The
Plan Administrator shall have complete discretion, exercisable either at the time an option is granted or at any time while the
option remains outstanding, to:

 

(i)
extend the period of time for which the option is to remain exercisable following the Optionee’s cessation of Service from
the limited exercise period otherwise in effect for that option to such greater period of time as the Plan Administrator shall
deem appropriate, but in no event beyond the expiration of the option term, and/or

 

(ii)
permit the option to be exercised, during the applicable post-Service exercise period, not only with respect to the number of
vested shares of common stock for which such option is exercisable at the time of the Optionee’s cessation of Service but
also with respect to one or more additional installments in which the Optionee would have vested had the Optionee continued in
Service.

 

D. Stockholder
Rights. The holder of an option shall have no stockholder rights with respect to the shares subject to the option until
such person shall have exercised the option, paid the exercise price and become a holder of record of the purchased shares.

 

E. Repurchase
Rights. The Plan Administrator shall have the discretion to grant options that are exercisable for unvested shares of
common stock. Should the Optionee cease Service while holding such unvested shares, the Corporation shall have the right to repurchase,
at the exercise price paid per share, any or all of those unvested shares. The terms upon which such repurchase right shall be
exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares) shall
be established by the Plan Administrator and set forth in the document evidencing such repurchase right.

 

F. Transferability
of Options. The transferability of options granted under the Plan shall be governed by the following provisions:

 

(i)
Incentive Options. During the lifetime of the Optionee, Incentive Options shall be exercisable only by the Optionee
and shall not be assignable or transferable other than by will or the laws of inheritance following the Optionee’s death.

 

(ii)
Non-Statutory Options. Non-Statutory Options shall be subject to the same limitation on transfer as Incentive Options,
except that the Plan Administrator may structure one or more Non-Statutory Options so that the option may be assigned in whole
or in part during the Optionee’s lifetime to one or more Family Members of the Optionee or to a trust established exclusively
for the Optionee and/or one or more such Family Members, to the extent such assignment is in connection with the Optionee’s
estate plan or pursuant to a domestic relations order. The assigned portion may only be exercised by the person or persons who
acquire a proprietary interest in the option pursuant to the assignment. The terms applicable to the assigned portion shall be
the same as those in effect for the option immediately prior to such assignment and shall be set forth in such documents issued
to the assignee as the Plan Administrator may deem appropriate.

 

(iii)
Beneficiary Designations. Notwithstanding the foregoing, the Optionee may designate one or more persons as the beneficiary
or beneficiaries of his or her outstanding options under this Article Two (whether Incentive Options or Non-Statutory
Options), and those options shall, in accordance with such designation, automatically be transferred to such beneficiary or beneficiaries
upon the Optionee’s death while holding those options. Such beneficiary or beneficiaries shall take the transferred options
subject to all the terms and conditions of the applicable agreement evidencing each such transferred option, including (without
limitation) the limited time period during which the option may be exercised following the Optionee’s death.

 

    5

     

    

 

II. Incentive
Options.

 

The
terms specified below, together with any additions, deletions or changes thereto imposed from time to time pursuant to the provisions
of the Code governing Incentive Options, shall be applicable to all Incentive Options. Except as modified by the provisions of
this Section II, all the provisions of Articles One, Two and Four shall be applicable to Incentive Options.
Options that are specifically designated as Non-Statutory Options when issued under the Plan shall not be subject to the terms
of this Section II.

 

A. Eligibility.
Incentive Options may only be granted to Employees.

 

B. Exercise
Price. The exercise price per share shall not be less than 100% of the Fair Market Value per share of common stock on
the option grant date.

 

C. Dollar
Limitation. The aggregate Fair Market Value of the shares of common stock (determined as of the respective date or dates
of grant) for which one or more options granted to any Employee under the Plan (or any other option plan of the Corporation or
any Parent or Subsidiary) may for the first time become exercisable as Incentive Options during any one calendar year shall not
exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee holds two or more such options which become
exercisable for the first time in the same calendar year, then for purposes of the foregoing limitation on the exercisability
of those options as Incentive Options, such options shall be deemed to become first exercisable in that calendar year on the basis
of the chronological order in which they were granted, except to the extent otherwise provided under applicable law or regulation.

 

D. 10%
Stockholder. If any Employee to whom an Incentive Option is granted is a 10% Stockholder, then the exercise price per
share shall not be less than 110% of the Fair Market Value per share of common stock on the option grant date, and the option
term shall not exceed five years measured from the option grant date.

 

III. Stock
Appreciation Rights.

 

A. Authority.
The Plan Administrator shall have full power and authority, exercisable in its sole discretion, to grant stock appreciation rights
in accordance with this Section III to selected Optionees or other individuals eligible to receive option grants under
the Discretionary Grant Program.

 

B. Types.
Three types of stock appreciation rights shall be authorized for issuance under this Section III: (i) tandem stock
appreciation rights (“Tandem Rights”), (ii) standalone stock appreciation rights (“Standalone Rights”)
and (iii) limited stock appreciation rights (“Limited Rights”).

 

C. Tandem
Rights. The following terms and conditions shall govern the grant and exercise of Tandem Rights.

 

1. One
or more Optionees may be granted a Tandem Right, exercisable upon such terms and conditions as the Plan Administrator may establish,
to elect between the exercise of the underlying stock option for shares of common stock or the surrender of that option in exchange
for a distribution from the Corporation in an amount equal to the excess of (i) the Fair Market Value (on the option surrender
date) of the number of shares in which the Optionee is at the time vested under the surrendered option (or surrendered portion
thereof) over (ii) the aggregate exercise price payable for such vested shares.

 

    6

     

    

 

2. No
such option surrender shall be effective unless it is approved by the Plan Administrator, either at the time of the actual option
surrender or at any earlier time. If the surrender is so approved, then the distribution to which the Optionee shall accordingly
become entitled under this Section III may be made in shares of common stock valued at Fair Market Value on the option
surrender date, in cash, or partly in shares and partly in cash, as the Plan Administrator shall in its sole discretion deem appropriate.

 

3. If
the surrender of an option is not approved by the Plan Administrator, then the Optionee shall retain whatever rights the Optionee
had under the surrendered option (or surrendered portion thereof) on the option surrender date and may exercise such rights at
any time prior to the later of (i) five business days after the receipt of the rejection notice or (ii) the last day on which
the option is otherwise exercisable in accordance with the terms of the instrument evidencing such option, but in no event may
such rights be exercised more than ten years after the date of the option grant.

 

D. Standalone
Rights. The following terms and conditions shall govern the grant and exercise of Standalone Rights under this Article Two:

 

1. One
or more individuals eligible to participate in the Discretionary Grant Program may be granted a Standalone Right not tied to any
underlying option under this Discretionary Grant Program. The Standalone Right shall relate to a specified number of shares of
common stock and shall be exercisable upon such terms and conditions as the Plan Administrator may establish. In no event, however,
may the Standalone Right have a maximum term in excess of ten years measured from the grant date. Upon exercise of the Standalone
Right, the holder shall be entitled to receive a distribution from the Corporation in an amount equal to the excess of (i) the
aggregate Fair Market Value (on the exercise date) of the shares of common stock underlying the exercised right over (ii) the
aggregate base price in effect for those shares.

 

2. The
number of shares of common stock underlying each Standalone Right and the base price in effect for those shares shall be determined
by the Plan Administrator in its sole discretion at the time the Standalone Right is granted. In no event, however, may the base
price per share be less than the Fair Market Value per underlying share of common stock on the grant date.

 

3. Standalone
Rights shall be subject to the same transferability restrictions applicable to Non-Statutory Options and may not be transferred
during the holder’s lifetime, except to one or more Family Members of the holder or to a trust established exclusively for
the holder and/or such Family Members, to the extent such assignment is in connection with the holder’s estate plan or pursuant
to a domestic relations order covering the Standalone Right as marital property. In addition, one or more beneficiaries may be
designated for an outstanding Standalone Right in accordance with substantially the same terms and provisions as set forth in
Section I.F of this Article Two.

 

4. The
distribution with respect to an exercised Standalone Right may be made in shares of common stock valued at Fair Market Value on
the exercise date, in cash, or partly in shares and partly in cash, as the Plan Administrator shall in its sole discretion deem
appropriate.

 

    7

     

    

 

5. The
holder of a Standalone Right shall have no stockholder rights with respect to the shares subject to the Standalone Right unless
and until such person shall have exercised the Standalone Right and become a holder of record of shares of common stock issued
upon the exercise of such Standalone Right.

 

E. Limited
Rights. The following terms and conditions shall govern the grant and exercise of Limited Rights under this Article Two:

 

1. One
or more Section 16 Insiders may, in the Plan Administrator’s sole discretion, be granted Limited Rights with respect
to their outstanding options under this Article Two.

 

2. Upon
the occurrence of a Hostile Take-Over, the Section 16 Insider shall have the unconditional right (exercisable for a 30-day
period following such Hostile Take-Over) to surrender each option with such a Limited Right to the Corporation. The Section 16
Insider shall in return be entitled to a cash distribution from the Corporation in an amount equal to the excess of (i) the Take-Over
Price of the number of shares in which the Optionee is at the time vested under the surrendered option (or surrendered portion
thereof) over (ii) the aggregate exercise price payable for those vested shares. Such cash distribution shall be made within five
days following the option surrender date.

 

3. The
Plan Administrator shall pre-approve, at the time such Limited Right is granted, the subsequent exercise of that right in accordance
with the terms of the grant and the provisions of this Section III. No additional approval of the Plan Administrator
or the Board shall be required at the time of the actual option surrender and cash distribution. Any unsurrendered portion of
the option shall continue to remain outstanding and become exercisable in accordance with the terms of the instrument evidencing
such grant.

 

F. Post-Service
Exercise. The provisions governing the exercise of Tandem, Standalone and Limited Stock Appreciation Rights following
the cessation of the recipient’s Service or the recipient’s death shall be substantially the same as those set forth
in Section I.C of this Article Two for the options granted under the Discretionary Grant Program.

 

IV. Change
in Control/ Hostile Take-Over.

 

A. No
Award outstanding under the Discretionary Grant Program at the time of a Change in Control shall vest and become exercisable on
an accelerated basis if and to the extent that: (i) such Award is, in connection with the Change in Control, assumed by the successor
corporation (or parent thereof) or otherwise continued in full force and effect pursuant to the terms of the Change in Control
transaction, (ii) such Award is replaced with a cash retention program of the successor corporation that preserves the spread
existing at the time of the Change in Control on the shares of common stock as to which the Award is not otherwise at that time
vested and exercisable and provides for subsequent payout of that spread in accordance with the same exercise/vesting schedule
applicable to those shares, or (iii) the acceleration of such Award is subject to other limitations imposed by the Plan Administrator.
However, if none of the foregoing conditions are satisfied, each Award outstanding under the Discretionary Grant Program at the
time of the Change in Control but not otherwise vested and exercisable as to all the shares at the time subject to that Award
shall automatically accelerate so that each such Award shall, immediately prior to the effective date of the Change in Control,
vest and become exercisable as to all the shares of common stock at the time subject to that Award and may be exercised as to
any or all of those shares as fully vested shares of common stock.

 

    8

     

    

 

B. All
outstanding repurchase rights under the Discretionary Grant Program shall also terminate automatically, and the shares of common
stock subject to those terminated rights shall immediately vest in full, in the event of any Change in Control, except to the
extent: (i) those repurchase rights are assigned to the successor corporation (or parent thereof) or otherwise continue in full
force and effect pursuant to the terms of the Change in Control transaction or (ii) such accelerated vesting is precluded by other
limitations imposed by the Plan Administrator.

 

C. Immediately
following the consummation of the Change in Control, all outstanding Awards under the Discretionary Grant Program shall terminate
and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof) or otherwise expressly
continued in full force and effect pursuant to the terms of the Change in Control transaction.

 

D. Each
option that is assumed in connection with a Change in Control or otherwise continued in effect shall be appropriately adjusted,
immediately after such Change in Control, to apply to the number and class of securities that would have been issuable to the
Optionee in consummation of such Change in Control had the option been exercised immediately prior to such Change in Control.
In the event outstanding Standalone Rights are to be assumed in connection with a Change in Control transaction or otherwise continued
in effect, the shares of common stock underlying each such Standalone Right shall be adjusted immediately after such Change in
Control to apply to the number and class of securities into which those shares of common stock would have been converted in consummation
of such Change in Control had those shares actually been outstanding at that time. Appropriate adjustments to reflect such Change
in Control shall also be made to (i) the exercise price payable per share under each outstanding option, provided the aggregate
exercise price payable for such securities shall remain the same, (ii) the base price per share in effect under each outstanding
Standalone Right, provided the aggregate base price shall remain the same, (iii) the maximum number and/or class of securities
available for issuance over the remaining term of the Plan, and (iv) the maximum number and/or class of securities for which any
one person may be granted Awards under the Plan per calendar year. To the extent the actual holders of the Corporation’s
outstanding common stock receive cash consideration for their common stock in consummation of the Change in Control, the successor
corporation may, in connection with the assumption or continuation of the outstanding Awards under the Discretionary Grant Program,
substitute, for the securities underlying those assumed Awards, one or more shares of its own common stock with a fair market
value equivalent to the cash consideration paid per share of common stock in such Change in Control transaction.

 

E. The
Plan Administrator shall have full power and authority to structure one or more outstanding Awards under the Discretionary Grant
Program so that those Awards shall immediately vest and become exercisable as to all of the shares at the time subject to those
Awards in the event the Optionee’s Service is subsequently terminated by reason of an Involuntary Termination within a designated
period (not to exceed 18 months) following the effective date of any Change in Control or a Hostile Take-Over in which those Awards
do not otherwise vest on an accelerated basis. Any Awards so accelerated shall remain exercisable as to fully vested shares until
the expiration or sooner termination of their term.

 

F. The
portion of any Incentive Option accelerated in connection with a Change in Control shall remain exercisable as an Incentive Option
only to the extent the applicable One Hundred Thousand Dollar ($100,000) limitation is not exceeded. To the extent such dollar
limitation is exceeded, the accelerated portion of such option shall be exercisable as a Non-Statutory Option under the federal
tax laws.

 

G. Awards
outstanding under the Discretionary Grant Program shall in no way affect the right of the Corporation to adjust, reclassify, reorganize
or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or
any part of its business or assets.

 

    9

     

    

 

ARTICLE
THREE

STOCK ISSUANCE PROGRAM

 

I. Stock
Issuance Terms.

 

A. Issuances.
Shares of common stock may be issued under the Stock Issuance Program through direct and immediate issuances without any intervening
option grants. Each such stock issuance shall be evidenced by a Stock Issuance Agreement that complies with the terms specified
below. Shares of common stock may also be issued under the Stock Issuance Program pursuant to restricted stock awards or restricted
stock units, awarded by and at the discretion of the Plan Administrator, that entitle the recipients to receive the shares underlying
those awards or units upon the attainment of designated performance goals and/or the satisfaction of specified Service requirements
or upon the expiration of a designated time period following the vesting, subject to a minimum initial vesting period of one (1)
year, of those awards or units.

 

B. Issue
Price.

 

1. The
price per share at which shares of common stock may be issued under the Stock Issuance Program shall be fixed by the Plan Administrator,
but shall not be less than 100% of the Fair Market Value per share of common stock on the issuance date.

 

2. Shares
of common stock may be issued under the Stock Issuance Program for any of the following items of consideration that the Plan Administrator
may deem appropriate in each individual instance:

 

(i) cash
or check made payable to the Corporation;

 

(ii) past
services rendered to the Corporation (or any Parent or Subsidiary); or

 

(iii) any
other valid form of consideration permissible under the Delaware Corporations Code at the time such shares are issued.

 

C. Vesting
Provisions.

 

1. Shares
of common stock issued under the Stock Issuance Program may, in the discretion of the Plan Administrator, vest in one or more
installments over the Participant’s period of Service, subject to a minimum initial vesting period of one (1) year, and/or
upon attainment of specified performance objectives. The elements of the vesting schedule applicable to any unvested shares of
common stock issued under the Stock Issuance Program shall be determined by the Plan Administrator and incorporated into the Stock
Issuance Agreement. Shares of common stock may also be issued under the Stock Issuance Program pursuant to restricted stock awards
or restricted stock units that entitle the recipients to receive the shares underlying those awards and/or units upon the attainment
of designated performance goals or the satisfaction of specified Service requirements or upon the expiration of a designated time
period, subject to a minimum initial vesting period of one (1) year, following the vesting of those awards or units, including
(without limitation) a deferred distribution date following the termination of the Participant’s Service.

 

    10

     

    

 

2. The
Plan Administrator shall also have the discretionary authority, consistent with Code Section 162(m), to structure one or
more Awards under the Stock Issuance Program so that the shares of common stock subject to those Awards shall vest (or vest and
become issuable) upon the achievement of certain pre-established corporate performance goals based on one or more of the following
criteria: (i) return on total stockholders’ equity; (ii) net income per share of common stock; (iii) net income or operating
income; (iv) earnings before interest, taxes, depreciation, amortization and stock-compensation costs, or operating income before
depreciation and amortization; (v) sales or revenue targets; (vi) return on assets, capital or investment; (vii) cash flow; (viii)
market share; (ix) cost reduction goals; (x) budget comparisons; (xi) implementation or completion of projects or processes strategic
or critical to the Corporation’s business operations; (xii) measures of customer satisfaction; (xiii) any combination of,
or a specified increase in, any of the foregoing; and (xiv) the formation of joint ventures, research and development collaborations,
marketing or customer service collaborations, or the completion of other corporate transactions intended to enhance the Corporation’s
revenue or profitability or expand its customer base; provided, however, that for purposes of items (ii), (iii) and (vii) above,
the Plan Administrator may, at the time the Awards are made, specify certain adjustments to such items as reported in accordance
with generally accepted accounting principles in the U.S. (“GAAP”), which will exclude from the calculation
of those performance goals one or more of the following: certain charges related to acquisitions, stock-based compensation, employer
payroll tax expense on certain stock option exercises, settlement costs, restructuring costs, gains or losses on strategic investments,
non-operating gains or losses, certain other non-cash charges, valuation allowance on deferred tax assets, and the related income
tax effects, purchases of property and equipment, and any extraordinary non-recurring items as described in Accounting Principles
Board Opinion No. 30 or its successor, provided that such adjustments are in conformity with those reported by the Corporation
on a non-GAAP basis. In addition, such performance goals may be based upon the attainment of specified levels of the Corporation’s
performance under one or more of the measures described above relative to the performance of other entities and may also be based
on the performance of any of the Corporation’s business groups or divisions thereof or any Parent or Subsidiary. Performance
goals may include a minimum threshold level of performance below which no award will be earned, levels of performance at which
specified portions of an award will be earned, and a maximum level of performance at which an award will be fully earned. The
Plan Administrator may provide that, if the actual level of attainment for any performance objective is between two specified
levels, the amount of the award attributable to that performance objective shall be interpolated on a straight-line basis.

 

3. Any
new, substituted or additional securities or other property (including money paid other than as a regular cash dividend) that
the Participant may have the right to receive with respect to the Participant’s unvested shares of common stock by reason
of any stock dividend, stock split, recapitalization, combination of shares, exchange of shares or other change affecting the
outstanding common stock as a class without the Corporation’s receipt of consideration shall be issued subject to (i) the
same vesting requirements applicable to the Participant’s unvested shares of common stock and (ii) such escrow arrangements
as the Plan Administrator shall deem appropriate.

 

4. The
Participant shall have full stockholder rights with respect to any shares of common stock issued to the Participant under the
Stock Issuance Program, whether or not the Participant’s interest in those shares is vested; provided, however, that the
Corporation shall withhold and retain any dividends on unvested shares until such time as the shares vest, if at all, and shall
thereafter promptly pay to the Participant any such dividends withheld and retained or, if the shares do not vest, return any
such dividends to the corporate treasury. Accordingly, the Participant shall have the right to vote all such shares but shall
not receive any cash dividends paid on any unvested shares unless and until the shares vest. The Participant shall not have any
stockholder rights with respect to the shares of common stock subject to a restricted stock unit award until that award vests
and the shares of common stock are actually issued thereunder. However, dividend-equivalent units may be paid or credited, either
in cash or in actual or phantom shares of common stock, on outstanding restricted stock unit or restricted stock awards, subject
to such terms and conditions as the Plan Administrator may deem appropriate and subject to the withholding and retention of dividends
with respect to any unvested awards on the same terms as set forth above.

 

    11

     

    

 

5. Should
the Participant cease to remain in Service while holding one or more unvested shares of common stock issued under the Stock Issuance
Program or should the performance objectives not be attained with respect to one or more such unvested shares of common stock,
then except as set forth in Section I.C.6 of this Article Three, those shares shall be immediately surrendered to
the Corporation for cancellation, and the Participant shall have no further stockholder rights with respect to those shares. To
the extent the surrendered shares were previously issued to the Participant for consideration paid in cash, cash equivalent or
otherwise, the Corporation shall repay to the Participant the same amount and form of consideration as the Participant paid for
the surrendered shares.

 

6. In
the event of the Participant’s retirement, the Plan Administrator may in its discretion waive the surrender and cancellation
of one or more unvested shares of common stock that would otherwise occur upon the cessation of the Participant’s Service.
Any such waiver shall result in the immediate vesting of the Participant’s interest in the shares of common stock as to
which the waiver applies. Such waiver may be effected at any time, whether before or after the Participant’s cessation of
Service as a result of the Participant’s retirement. No vesting requirements tied to the attainment of performance objectives
may be waived with respect to shares that were intended at the time of issuance to qualify as performance-based compensation under
Code Section 162(m), except in the event of the Participant’s Involuntary Termination or as otherwise provided in Section II.E
of this Article Three.

 

7. Outstanding
restricted stock awards or restricted stock units under the Stock Issuance Program shall automatically terminate, and no shares
of common stock shall actually be issued in satisfaction of those awards or units, if the performance goals or Service requirements
established for such awards or units are not attained or satisfied.

 

II. Change
in Control/ Hostile Take-Over.

 

A. All
of the Corporation’s outstanding repurchase rights under the Stock Issuance Program shall terminate automatically, and all
the shares of common stock subject to those terminated rights shall immediately vest in full, in the event of any Change in Control,
except to the extent (i) those repurchase rights are to be assigned to the successor corporation (or parent thereof) or otherwise
continued in full force and effect pursuant to the express terms of the Change in Control transaction or (ii) such accelerated
vesting is precluded by other limitations imposed in the Stock Issuance Agreement.

 

B. Each
outstanding Award under the Stock Issuance Program that is assumed in connection with a Change in Control or otherwise continued
in effect shall be adjusted immediately after the consummation of that Change in Control to apply to the number and class of securities
into which the shares of common stock subject to the Award immediately prior to the Change in Control would have been converted
in consummation of such Change in Control had those shares actually been outstanding at that time, and appropriate adjustments
shall also be made to the cash consideration (if any) payable per share thereunder, provided the aggregate amount of such consideration
shall remain the same. If any such Award is not so assumed or otherwise continued in effect or replaced with a cash retention
program which preserves the Fair Market Value of the shares underlying the Award at the time of the Change in Control and provides
for the subsequent payout of that value in accordance with the vesting schedule in effect for the Award at the time of such Change
in Control, such Award shall vest, and the shares of common stock subject to that Award shall be issued as fully-vested shares,
immediately prior to the consummation of the Change in Control.

 

    12

     

    

 

C. The
Plan Administrator shall have full power and authority to structure one or more outstanding Awards under the Stock Issuance Program
so that the shares of common stock subject to those Awards shall immediately vest (or vest and become issuable) as to all of the
shares at the time subject to those Awards in the event the Participant’s Service is subsequently terminated by reason of
an Involuntary Termination within a designated period (not to exceed 18 months) following the effective date of any Change in
Control or a Hostile Take-Over in which those Awards do not otherwise vest on an accelerated basis.

 

D. The
Plan Administrator’s authority under Paragraph C of this Section II shall also extend to any Award intended
to qualify as performance-based compensation under Code Section 162(m), even though the automatic vesting of those Awards
pursuant to Paragraph C of this Section II may result in their loss of performance-based status under Code Section 162(m).

 

E. Awards
outstanding under the Stock Issuance Program shall in no way affect the right of the Corporation to adjust, reclassify, reorganize
or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or
any part of its business or assets.

 

ARTICLE
FOUR

MISCELLANEOUS

 

I. Tax
Withholding.

 

A. The
Corporation’s obligation to deliver shares of common stock upon the issuance, exercise or vesting of Awards under the Plan
shall be subject to the satisfaction of all applicable federal, state and local income and employment tax withholding requirements.

 

B. Subject
to applicable laws, rules and regulations and policies of the Corporation, the Plan Administrator may, in its discretion, provide
any or all Optionees or Participants to whom Awards are made under the Plan with the right to utilize any or all of the following
methods to satisfy all or part of the Withholding Taxes to which those holders may become subject in connection with the issuance,
exercise or vesting of those Awards.

 

(i)
Stock Withholding: The election to have the Corporation withhold, from the shares of common stock otherwise issuable
upon the issuance, exercise or vesting of those Awards a portion of those shares with an aggregate Fair Market Value equal to
the percentage of the Withholding Taxes (not to exceed 100%) designated by the Optionee or Participant and make a cash payment
equal to such Fair Market Value directly to the appropriate taxing authorities on such individual’s behalf.

 

(ii)
Stock Delivery: The election to deliver to the Corporation, at the time the Award is issued, exercised or vests,
one or more shares of common stock previously acquired by such the Optionee or Participant (other than in connection with the
issuance, exercise or vesting triggering the Withholding Taxes) with an aggregate Fair Market Value equal to the percentage of
the Withholding Taxes (not to exceed 100%) designated by such holder. The shares of common stock so delivered shall not be added
to the shares of common stock authorized for issuance under the Plan.

 

    13

     

    

 

(iii)
Sale and Remittance: The election to deliver to the Corporation, to the extent the Award is issued or exercised
for vested shares, through a special sale and remittance procedure pursuant to which the Optionee or Participant shall concurrently
provide irrevocable instructions to a brokerage firm to effect the immediate sale of the purchased or issued shares and remit
to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the Withholding Taxes
required to be withheld by the Corporation by reason of such issuance, exercise or vesting.

 

II. Share
Escrow/Legends.

 

Unvested
shares issued under the Plan may, in the Plan Administrator’s discretion, be held in escrow by the Corporation until the
Participant’s interest in such shares vests or may be issued directly to the Participant with restrictive legends on the
certificates evidencing those unvested shares.

 

III. Effective
Date and Term of the Plan.

 

A. The
Plan was initially adopted by the Board on March 25, 2016 and ratified and approved by the Corporation’s stockholders on
June 16, 2016. The Plan was amended by the Board on March 29, 2018, which was ratified and approved by the Corporation’s
stockholders on June 14, 2018, to increase the number of shares authorized for issuance under the Plan from 1,150,000 shares to
3,650,000 shares and to implement other updates. The Plan was further amended by the Board on August 6, 2019, which was ratified
and approved by the Corporation’s stockholders on November 7, 2019, to increase the number of shares authorized for issuance
under the Plan from 3,650,000 shares to 5,650,000 shares and to implement other updates. The Plan was further amended by the Board
on September 2, 2020, which was ratified and approved by the Corporation’s stockholders on November 18, 2020, to increase
the number of shares authorized for issuance under the Plan from 5,650,000 shares to 7,400,000 shares.

 

B. The
Plan shall become effective on the Plan Effective Date. Awards may be granted under the Discretionary Grant Program and the Stock
Issuance Program at any time on or after the Plan Effective Date.

 

C. The
Plan shall terminate upon the earliest to occur of (i) March 25, 2026, (ii) the date on which all shares available for issuance
under the Plan shall have been issued as fully-vested shares, (iii) the termination of all outstanding Awards in connection with
a Change in Control, or (iv) such other date as the Board in its sole discretion terminates the Plan. If the Plan terminates on
March 25, 2026 or on such other date as the Board terminates the Plan, then all Awards outstanding at that time shall continue
to have force and effect in accordance with the provisions of the documents evidencing such Awards.

 

IV. Amendment,
Suspension or Termination of the Plan.

 

The
Board may suspend or terminate the Plan at any time, without notice, and in its sole discretion. The Board shall have complete
and exclusive power and authority to amend or modify the Plan in any or all respects. However, no such amendment or modification
shall materially impair the rights and obligations with respect to Awards at the time outstanding under the Plan unless the Optionee
or the Participant consents to such amendment or modification. In addition, stockholder approval will be required for any amendment
to the Plan that (i) materially increases the number of shares of common stock available for issuance under the Plan, (ii) materially
expands the class of individuals eligible to receive option grants or other awards under the Plan, (iii) materially increases
the benefits accruing to the Optionees and Participants under the Plan or materially reduces the price at which shares of common
stock may be issued or purchased under the Plan, (iv) materially extends the term of the Plan, (v) expands the types of awards
available for issuance under the Plan, or (vi) is required under applicable laws, rules or regulations to be approved by stockholders.

 

    14

     

    

 

V. Use
of Proceeds.

 

Any
cash proceeds received by the Corporation from the sale of shares of common stock under the Plan shall be used for general corporate
purposes.

 

VI. Regulatory
Approvals.

 

A. The
implementation of the Plan, the grant of any Award and the issuance of shares of common stock in connection with the issuance,
exercise or vesting of any Award made under the Plan shall be subject to the Corporation’s procurement of all approvals
and permits required by regulatory authorities having jurisdiction over the Plan, the Awards made under the Plan and the shares
of common stock issuable pursuant to those Awards.

 

B. No
shares of common stock or other assets shall be issued or delivered under the Plan unless and until there shall have been compliance
with all applicable requirements of federal and state securities laws, including the filing and effectiveness of the Form S-8
registration statement for the shares of common stock issuable under the Plan, and all applicable listing requirements of The
NASDAQ Capital Market, if applicable, and any other stock exchange or other market on which common stock is then quoted or listed
for trading.

 

VII. No
Employment/Service Rights.

 

Nothing
in the Plan shall confer upon the Optionee or the Participant any right to continue in Service for any period of specific duration
or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining
such person) or of the Optionee or the Participant, which rights are hereby expressly reserved by each, to terminate such person’s
Service at any time for any reason, with or without cause.

 

VIII. Non-Exclusivity
of the Plan. 

 

Nothing
contained in the Plan is intended to amend, modify, or rescind any previously approved compensation plans, programs or options
entered into by the Corporation. This Plan shall be construed to be in addition to and independent of any and all other arrangements.
Neither the adoption of the Plan by the Board nor the submission of the Plan to the stockholders of the Corporation for approval
shall be construed as creating any limitations on the power or authority of the Board to adopt, with or without stockholder approval,
such additional or other compensation arrangements as the Board may from time to time deem desirable.

 

IX. Governing
Law. 

 

All
questions and obligations under the Plan and agreements issued pursuant to the Plan shall be construed and enforced in accordance
with the laws of the State of Delaware.

 

X. Information
to Optionees and Participants. 

 

Optionees
and Participants under the Plan who do not otherwise have access to financial statements of the Corporation will receive the Corporation’s
financial statements at least annually.

 

    15

     

    

 

APPENDIX

 

The
following definitions shall be in effect under the Plan:

 

A. “Award”
means any of the following stock or stock-based awards authorized for issuance or grant under the Plan: stock option, stock appreciation
right, direct stock issuance, restricted stock or restricted stock unit award or other stock-based award.

 

B. “Board”
means the Corporation’s board of directors.

 

C. “Change
in Control” shall be deemed to have occurred if, in a single transaction or series of related transactions:

 

(i)
any person (as such term is used in Section 13(d) and 14(d) of the 1934 Act, or persons acting as a group, other than a trustee
or fiduciary holding securities under an employment benefit program, is or becomes a “beneficial owner” (as defined
in Rule 13-3 under the 1934 Act), directly or indirectly of securities of the Corporation representing 51% or more of the combined
voting power of the Corporation, or

 

(ii)
there is a merger, consolidation, or other business combination transaction of the Corporation with or into another corporation,
entity or person, other than a transaction in which the holders of at least a majority of the shares of voting capital stock of
the Corporation outstanding immediately prior to such transaction continue to hold (either by such shares remaining outstanding
or by their being converted into shares of voting capital stock of the surviving entity) a majority of the total voting power
represented by the shares of voting capital stock of the Corporation (or surviving entity) outstanding immediately after such
transaction, or

 

(iii)
all or substantially all of the Corporation’s assets are sold.

 

D. “Code”
means the Internal Revenue Code of 1986, as amended.

 

E. “common
stock” means the Corporation’s common stock, $0.001 par value per share.

 

F. “Compensation
Committee” means a committee of the Board comprised solely of two or more Eligible Directors who are appointed by the
Board to administer the Discretionary Grant and Stock Issuance Programs, who are “outside directors” within the meaning
of Section 162(m) of the Code and who are “non-employee directors” within the meaning of Rule 16b-3(b)(3)(i).

 

G. “Consultant”
means a consultant or other independent advisor who is under written contract with the Corporation (or any Parent or Subsidiary)
to provide consulting or advisory services to the Corporation (or any Parent or Subsidiary) and whose securities issued pursuant
to the Plan could be registered on Form S-8.

 

H. “Corporation”
means Pacific Ethanol, Inc., a Delaware corporation, and any corporate successor to all or substantially all of the assets or
voting stock of Pacific Ethanol, Inc. that shall by appropriate action adopt the Plan.

 

I. “Discretionary
Grant Program” means the discretionary grant program in effect under Article Two of the Plan pursuant to
which stock options and stock appreciation rights may be granted to one or more eligible individuals.

 

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J. “Eligible
Director” means a Board member who is not, at the time of such determination, an employee of the Corporation (or any
Parent or Subsidiary).

 

K. “Employee”
means an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the control and direction
of the employer entity as to both the work to be performed and the manner and method of performance.

 

L. “Exercise
Date” means the date on which the Corporation shall have received written notice of the option exercise.

 

M. “Fair
Market Value” per share of common stock on any relevant date shall be determined in accordance with the following provisions:

 

(i)
If the common stock is at the time traded on The NASDAQ Capital Market, then the Fair Market Value shall be the closing selling
price per share of common stock at the close of regular hours trading (i.e., before after- hours trading begins) on The NASDAQ
Capital Market on the date in question, as such price is reported by the National Association of Securities Dealers. If there
is no closing selling price for the common stock on the date in question, then the Fair Market Value shall be the closing selling
price on the last preceding date for which such quotation exists.

 

(ii)
If the common stock is not traded on The NASDAQ Capital Market but is at the time listed or quoted on any other market or exchange,
then the Fair Market Value shall be the closing selling price per share of common stock at the close of regular hours trading
(i.e., before after-hours trading begins) on the date in question on the market or exchange determined by the Plan Administrator
to be the primary market for the common stock, as such price is officially quoted in the composite tape of transactions on such
exchange. If there is no closing selling price for the common stock on the date in question, then the Fair Market Value shall
be the closing selling price on the last preceding date for which such quotation exists.

 

(iii)
In the absence of an established market for the common stock, the Fair Market Value shall be determined in good faith by the Plan
Administrator.

 

In
addition, with respect to any Incentive Option, the Fair Market Value shall be determined in a manner consistent with any regulations
issued by the Secretary of the Treasury for the purpose of determining fair market value of securities subject to an Incentive
Option plan under the Code.

 

N. “Family
Member” means, with respect to a particular Optionee or Participant, any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law
or sister-in-law, including adoptive relationships.

 

O. “Hostile
Take-Over” means either of the following events effecting a change in control or ownership of the Corporation:

 

(i)
the acquisition, directly or indirectly, by any person or related group of persons (other than the Corporation or a person that
directly or indirectly controls, is controlled by, or is under common control with, the Corporation) of beneficial ownership (within
the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than 50% of the total combined voting power of the Corporation’s
outstanding securities pursuant to a tender or exchange offer made directly to the Corporation’s stockholders that the Board
does not recommend such stockholders to accept, or

 

    17

     

    

 

(ii)
a change in the composition of the Board over a period of 36 consecutive months or less such that a majority of the Board members
ceases, by reason of one or more contested elections for Board membership, to be composed of individuals who either (A) have been
Board members continuously since the beginning of such period or (B) have been elected or nominated for election as Board members
during such period by at least a majority of the Board members described in clause (A) who were still in office at the time the
Board approved such election or nomination.

 

P.
“Incentive Option” means an option that satisfies the requirements of Code Section 422.

 

Q. “Involuntary
Termination” means the termination of the Service of any individual that occurs by reason of:

 

(i)
if such individual is providing services to the Corporation pursuant to a written contract that defines “cause” or
“misconduct” or similar reasons such individual could be dismissed or discharged by the Corporation, then such individual’s
involuntary dismissal or discharge by the Corporation other than for any of such reasons and other than for Misconduct shall be
an Involuntary Termination;

 

(ii)
if such individual is not providing services to the Corporation pursuant to a written contract that defines “cause”
or “misconduct” or similar reasons such individual could be dismissed or discharged by the Corporation, then such
individual’s involuntary dismissal or discharge by the Corporation for reasons other than Misconduct shall be an Involuntary
Termination;

 

(iii)
if such individual is providing services to the Corporation pursuant to a written contract that defines “good reason”
or similar reasons such individual could voluntarily resign, then such individual’s voluntary resignation for any of such
reasons shall be an Involuntary Termination; or

 

(iv)
if such individual is providing services to the Corporation pursuant to a written contract that does not define “good reason”
or similar reasons such individual could voluntarily resign, then such individual’s voluntary resignation following (A)
a change in his or her position with the Corporation that materially reduces his or her duties and responsibilities or the level
of management to which he or she reports, (B) a reduction in his or her level of compensation (including base salary, fringe benefits
and target bonus under any corporate-performance based bonus or incentive programs) by more than 15% or (C) a relocation of such
individual’s place of employment by more than 50 miles, provided and only if such change, reduction or relocation is effected
by the Corporation without the individual’s consent, shall be an Involuntary Termination.

 

R. “Misconduct”
means the commission of: any act of fraud, embezzlement or dishonesty by the Optionee or Participant; any unauthorized use or
disclosure by such person of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary); any illegal
or improper conduct or intentional misconduct, gross negligence or recklessness by such person that has adversely affected or,
in the determination of the Plan Administrator, is likely to adversely affect, the business, reputation, goodwill or affairs of
the Corporation (or any Parent or Subsidiary) in a material manner; any conduct that provides a basis for the Corporation to terminate
for “cause,” “misconduct” or similar reasons the written contract pursuant to which the Optionee or Participant
is providing Services to the Corporation; resignation by the Optionee or Participant on fewer than 30 days’ prior written
notice and in violation of an agreement to remain in Service of the Corporation, in anticipation of a termination for “cause,”
“misconduct” or similar reasons under the agreement, or in lieu of a formal discharge for “cause,” “misconduct”
or similar reasons. The foregoing definition shall not in any way preclude or restrict the right of the Corporation (or any Parent
or Subsidiary) to discharge or dismiss any Optionee, Participant or other person in the Service of the Corporation (or any Parent
or Subsidiary) for any other acts or omissions, but such other acts or omissions shall not be deemed, for purposes of the Plan,
to constitute grounds for termination for Misconduct.

 

    18

     

    

 

S. “1934
Act” means the Securities Exchange Act of 1934, as amended.

 

T. “Non-Statutory
Option” means an option not intended to satisfy the requirements of Code Section 422.

 

U. “Optionee”
means any person to whom an option is granted under the Discretionary Grant Program.

 

V. “Parent”
means any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation, provided
each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing 50%
or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 

W. “Participant”
means any person who is issued shares of common stock or restricted stock units or other stock-based awards under the Stock Issuance
Program.

 

X. “Permanent
Disability” or “Permanently Disabled” means the inability of the Optionee or the Participant to engage
in any substantial gainful activity by reason of any medically determinable physical or mental impairment expected to result in
death or to be of continuous duration of twelve months or more.

 

Y. “Plan”
means the Corporation’s 2016 Stock Incentive Plan, as set forth in this document.

 

Z. “Plan
Administrator” means the particular entity, whether the Compensation Committee or the Board, which is authorized to
administer the Discretionary Grant and Stock Issuance Programs with respect to one or more classes of eligible persons, to the
extent such entity is carrying out its administrative functions under those programs with respect to the persons then subject
to its jurisdiction.

 

AA.
“Plan Effective Date” means the date that stockholder approval of the Plan is obtained in accordance with Section
III.A. of Article Four.

 

BB.
“Section 16 Insider” means an officer or director of the Corporation subject to the short-swing profit
liability provisions of Section 16 of the 1934 Act.

 

CC.
“Service” means the performance of services for the Corporation (or any Parent or Subsidiary) by a person in
the capacity of an Employee, an Eligible Director or a Consultant, except to the extent otherwise specifically provided in the
documents evidencing the Award made to such person. For purposes of the Plan, an Optionee or Participant shall be deemed to cease
Service immediately upon the occurrence of the either of the following events: (i) the Optionee or Participant no longer performs
services in any of the foregoing capacities for the Corporation or any Parent or Subsidiary or (ii) the entity for which the Optionee
or Participant is performing such services ceases to remain a Parent or Subsidiary of the Corporation, even though the Optionee
or Participant may subsequently continue to perform services for that entity.

 

    19

     

    

 

DD.
“Stock Issuance Agreement” means the agreement entered into by the Corporation and the Participant at the time
of issuance of shares of common stock under the Stock Issuance Program.

 

EE.
“Stock Issuance Program” means the stock issuance program in effect under Article Three of the
Plan.

 

FF.
“Subsidiary” means any corporation (other than the Corporation) in an unbroken chain of corporations beginning
with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the
determination, stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain.

 

GG.
“Take-Over Price” means the greater of (i) the Fair Market Value per share of common stock on the date the
option is surrendered to the Corporation in connection with a Hostile Take-Over or, if applicable, (ii) the highest reported price
per share of common stock paid by the tender offeror in effecting such Hostile Take-Over through the acquisition of such common
stock. However, if the surrendered option is an Incentive Option, the Take-Over Price shall not exceed the clause (i) price per
share.

 

HH.
“10% Stockholder” means the owner of stock (as determined under Code Section 424(d)) possessing more than
10% of the total combined voting power of all classes of stock of the Corporation (or any Parent or Subsidiary).

 

II. “Withholding
Taxes” means the federal, state and local income and employment taxes to which the Optionee or Participant may become
subject in connection with the issuance, exercise or vesting of the Award made to him or her under the Plan.

 

 

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