Document:

Exhibit 4.1

 

THIS NOTE AND THE UNDERLYING SECURITIES
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THEY MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE
ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. 

 

10% CONVERTIBLE NOTE 

DUE JULY 2, 2014

 

	 EUR € 2,000,000	August 17, 2013
	 	(Issuance Date)

 

FOR
VALUE RECEIVED, Elephant Talk Communications Corp.,
a Delaware corporation (the “Company”), hereby unconditionally promises to pay to the order
of Bernard Moncarey (the “Holder”), or his assigns, the aggregate principal sum of Two Million Euro (€ 2,000,000),
together with interest on the unpaid principal balance of this Note (this “Note”) at a rate equal to
ten percent (10%) (computed on the basis of the actual number of days elapsed in a 365-day year) per annum (the “Interest
Rate”). Interest shall accrue from the date hereof and shall continue to accrue on the outstanding principal balance
of this Note until paid in full or converted. Except as expressly provided herein, all payments of principal and interest by the
Company under this Note shall be made in Euro in immediately available funds to an account specified by the Holder.

 

In no event shall any
interest charged, collected or reserved under this Note exceed the maximum rate then permitted by applicable law and if any such
payment is paid by the Company, then such excess sum shall be credited by the Holder as a payment of principal.

 

1.                 
Definitions. Unless the context otherwise requires, when used herein the following terms shall have
the meaning indicated:

 

“Affiliate”
means with respect to any person or entity, any person or entity, which directly or indirectly, controls, is controlled by, or
is under common control with such person or entity, as the case may be.

 

“Common Stock”
means the common stock of the Company, par value $0.00001 per share.

 

“Conversion
Price” means $0.887 (which amount shall be proportionately adjusted for any stock splits, stock dividends, combinations
or similar changes to the outstanding number of shares of Common Stock).

 

    	 

    	 

    

 

“Eligible
Market” means the Principal Market, The New York Stock Exchange, Inc., The NASDAQ Global Market, The NASDAQ Capital
Market, The NASDAQ Global Select Market or the OTC Bulletin Board.

 

“Maturity
Date” means July 2, 2014.

 

“Outstanding
Balance” means all outstanding principal under the Note and any accrued and unpaid interest due thereon.

 

“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.

 

“Principal
Market” means the NYSE MKT, LLC.

 

“SEC”
means the United States Securities and Exchange Commission.

 

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

 

2.                 
Transfer. This Note is transferable and assignable by the Holder only to any Person approved, in writing,
by the Company, provided, however, no approval shall be required in connection with any transfer or assignment of
this Note to an Affilate of the Holder in compliance with applicable securities laws. The Company agrees to issue from time to
time a replacement Note in the form hereof to facilitate such transfers and assignments. In addition, after delivery of an indemnity
in form and substance reasonably satisfactory to the Company, the Company also agrees to promptly issue a replacement Note if this
Note is lost, stolen, mutilated or destroyed.

 

3.                 
Payment of Principal and Interest; Prepayment.

 

(a)               
Payment of Principal and Interest. Interest on this Note shall accrue from the date hereof; and the Outstanding
Balance shall be payable, in arrears, on the Maturity Date, unless prepaid pursuant to Section 3(b) hereof or earlier converted
pursuant to Section 4 hereof.

 

(b)               Prepayment.
The Company may prepay all or any portion of the Outstanding Balance or accrued but unpaid interest on this Note without the
prior written consent of the Holder, provided that a Conversion Notice shall not have been duly delivered by the Holder with
respect to the portion of the Outstanding Balance then being prepaid.

 

    	-2-

    	 

    

 

4.                 
Conversion. This Outstanding Balance shall be convertible into shares of the Company’s common stock,
no par value per share (the “Common Stock”), on the terms and conditions set forth in this Section
4.

 

(a)               
Conversion Right. Subject to the provisions of Section 4(d), at any time or times on or after the date
set out on the face of this Note as the Issuance Date (the “Issuance Date”), the Holder shall be entitled
to convert any portion of the Principal and accrued Interest into fully paid and nonassessable shares of Common Stock in accordance
with Section 4(c), at the Conversion Rate (as defined below). The Company shall not issue any fraction of a share of Common
Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Holder shall
be entitled, at the Holder’s option, to receive either (x) a cash payment equal to the excess of the amount of the Outstanding
Balance to be converted for such fractional share or (y) a whole share if the Holder converts an additional portion of its
Outstanding Balance so as to acquire one whole share. The Company shall pay any and all transfer, stamp and similar taxes that
may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Outstanding Balance.

 

(b)              
Conversion Rate. The number of shares of Common Stock issuable upon conversion of the amount of Outstanding
Balance to be converted pursuant to Section 4(a) shall equal the quotient of (x) such Outstanding Balance, as converted
into U.S. dollars at the rate of exchange at which the Company is able, acting in good faith and using commercially reasonable
procedures in converting such Outstanding Balance into U.S. dollars, to purchase U.S. dollars with the such Outstanding Balance
on the date of conversion into shares of Common Stock, divided by (y) the Conversion Price (the “Conversion Rate”).

 

(c)               
Optional Conversion. To convert any or all of the Outstanding Balance into shares of Common Stock on any date (a
“Conversion Date”), the Holder shall (A) transmit by facsimile (or otherwise deliver), for receipt on
or prior to 11:59 p.m., New York time, on such date, a copy of an executed notice of conversion in the form attached hereto as
Exhibit A (the “Conversion Notice”) to the Company and (B) surrender this Note to a common carrier
for delivery to the Company as soon as practicable on or following such date (or an indemnification undertaking with respect to
this Note in the case of its loss, theft or destruction). On or before the second (2nd) Trading Day following the date of receipt
of a Conversion Notice, the Company shall transmit by e-mail or facsimile a confirmation of receipt of such Conversion Notice to
the Holder and the Company’s transfer agent (the “Transfer Agent”). On or before the fourth (4th)
Trading Day following the date of receipt of a Conversion Notice (the “Share Delivery Date”),
the Company shall issue and deliver to the address as specified in the Conversion Notice, a certificate, registered in the name
of the Holder for the number of shares of Common Stock to which the Holder shall be entitled. If less than all of the Outstanding
Balance is being converted, then the Company shall as soon as practicable and in no event later than five (5) Trading Days after
receipt of this Note and at its own expense, issue and deliver to the holder a new Note of like tenor representing the Outstanding
Balance not converted. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of this
Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

    	-3-

    	 

    

 

(d)              
Limitations on Conversions.

 

(i)                
Market Regulation. In the event stockholder approval is required for any portion of conversion of this Note, until
such stockhold approval is obtained, the Company shall not be obligated to issue any shares of Common Stock upon conversion of
this Note if the issuance of such shares of Common Stock would exceed the aggregate number of shares of Common Stock which the
Company may issue upon conversion of the Notes without breaching the Company’s obligations under the rules or regulations
of the Principal Market or the SEC, as applicable. Unless and until such stockholder approval is obtained, if required, the Holder
shall not convert any portion of this Note.

 

(ii)              
June 2013 Financing. Notwithstanding anything in this Note to the contrary, nothing herein shall be interpeted or
operate to conflict with any provision of the financing completed by the Company in June 2013 described in the prospectus supplement
filed by the Company on June 11, 2013, with the U.S. Securities and Exchange Commission, or any of the documents executed and delivered
by the Company in connection therewith. To the extent of any conflict between the terms of this Note and the terms and conditions
of such financing or the documents executed and delivered by the Company in connection therewith, the latter shall control, and
the peformance of the former shall be suspended until such time, if any, as any such conflict has been irrevocably resolved in
accrodance with Section 16 hereof.

 

5.                 
Representations, Warranties and Covenants of the Company. The Company hereby represents, warrants and covenants
to the Holder, which representations and warranties are made as of the date of this Note, that:

 

(a)               
Organization, Good Standing and Qualification.  The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry
on its business as presently conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction
in which the failure to so qualify would have a material adverse effect on the business, assets (including intangible assets),
liabilities, financial condition, property or results of operations of the Company
(a “Material Adverse Effect”).

 

(b)              
Authorization. The Company has all requisite corporate power and authority to execute and deliver this
Note, to sell and issue this Note hereunder, and to carry out and perform its obligations hereunder and thereunder. All corporate
action on the part of the Company, its directors and stockholders necessary for the authorization, execution, delivery and performance
of this Note, except for the issuance of the Common Stock upon conversion of this Note, by the Company, has been taken. This Note,
when executed and delivered by the Company, will constitute the legal, valid and binding obligations of the Company, enforceable
against the Company in accordance with their respective terms, except as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance and other laws of general application affecting enforcement of creditors’ rights generally
and as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

(c)               
Valid Issuance of Common Stock. The Company shall, prior to the conversion of this Note, reserve from its
authorized but unissued shares of its capital for issuance and delivery upon the conversion of this Note, such number of shares
of Common Stock (and shares of its Common Stock for issuance upon conversion of such Common Stock). All such shares shall be duly
authorized, and when issued upon any such conversion, shall be validly issued, fully paid and non-assessable, free and clear of
all liens, security interests, charges and other encumbrances or restrictions on sale and free and clear of all preemptive rights,
except for encumbrances or restrictions arising under federal or state securities laws.

 

    	-4-

    	 

    

 

(d)              
Governmental Consents. No consent, approval, order or authorization of, or registration, qualification,
designation, declaration or filing with, any federal, state or local governmental authority on the part of the Company is required
in connection with the consummation of the transactions contemplated by this Note, except for filings pursuant to applicable securities
laws and Regulation D of the Securities Act.

 

(e)               
Compliance with Other Instruments. The Company is not in violation or default of any provisions of its certificate
of incorporation or bylaws or, to the extent that any such violation or default would have a Material Adverse Effect, of any instrument,
judgment, order, writ, decree or contract to which it is a party or by which it is bound or, to its knowledge, of any provision
of federal or state statute, rule or regulation applicable to the Company. The execution, delivery and performance of this Note,
and the consummation of the transactions contemplated hereby and thereby will not result in any such violation or be in conflict
with or constitute, with or without the passage of time and giving of notice, either a default under any such provision, instrument,
judgment, order, writ, decree or contract or an event which results in the creation of any lien, charge or encumbrance upon any
assets of the Company.

 

(f)               
Valid Offering. Assuming the accuracy of the representations, warranties and covenants of the Holder
contained in Section 6 hereof, the offer, sale and issuance of this Note will be exempt from the registration requirements
of the Securities Act. Neither the Company nor any agent on its behalf has solicited or will solicit any offers to sell or has
offered to sell or will offer to sell all or any part of the Note to any person or persons so as to bring the sale of such Note
by the Company within the registration provisions of the Securities Act or any state securities laws.

 

6.                 
Representations, Warranties and Covenants of the Holder. The Holder hereby represents, warrants and covenants
to the Company, which representations and warranties are made as of the date of this Note, that:

 

(a)               
Authorization. The Holder has full power and authority to enter into this Note. This Note, when executed
and delivered by the Holder, will constitute valid and legally binding obligations of the Holder, enforceable in accordance with
its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other
laws of general application affecting enforcement of creditors’ rights generally and as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable remedies

 

(b)              
Purchase Entirely for Own Account. This Note is made with the Holder in reliance upon the Holder’s representation
to the Company, which by the Holder’s execution of this Note, the Holder hereby confirms, that the Common Stock that may
to be acquired by the Holder will be acquired for investment for the Holder’s own account, not as a nominee or agent, and
not with a view to the resale or distribution of any part thereof, and that the Holder has no present intention of selling, granting
any participation in, or otherwise distributing the same. By executing this Note, the Holder further represents that the Holder
does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation
to such person or to any third person, with respect to any of Common Stock.

 

    	-5-

    	 

    

 

(c)               
Restricted Common Stock. The Holder understands that the Common Stock has not been, and will not be, registered
under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends
upon, among other things, the bona fide nature of the investment intent and the accuracy of the Holder’s representations
as expressed herein. The Holder understands that the shares of Common Stock are “restricted securities” under applicable
U.S. federal and state securities laws and that, pursuant to these laws, the Holder must hold the shares of Common Stock indefinitely
unless they are registered with the SEC Commission and qualified by state authorities, or an exemption from such registration and
qualification requirements is available. The Holder acknowledges that the Company has no obligation to register or qualify the
shares of common Stock for resale. The Holder further acknowledges that if an exemption from registration or qualification is available,
it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for
the shares of Common Stock, and on requirements relating to the Company which are outside of the Holder’s control, and which
the Company is under no obligation and may not be able to satisfy.

 

(d)              
Legends. The Holder understands that the shares of Common Stock, and any securities issued in respect thereof
or exchange therefor, may bear one or all of the following legends:

 

(i)               
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE
BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION
MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.”

 

(ii)               
Any legend required by the Blue Sky laws of any state to the extent such laws are applicable to the shares represented by
the certificate so legended.

 

(e)               
Accredited Investor.  The Holder is an accredited investor as defined in Rule 501(a) of Regulation D
promulgated under the Securities Act.

 

(f)               
Investment Experience. The Holder understands that the purchase of the shares of Common Stock involves
substantial risk. The Holder has a pre-existing personal or business relationship with the Company and certain of its officers,
directors or controlling persons of a nature and duration that enables the Holder to be aware of the character, business acumen
and financial circumstances of such persons.

 

    	-6-

    	 

    

 

(g)              
No General Solicitation.  Neither the Holder, nor any of its officers, employees, agents, directors,
stockholders or partners, has engaged the services of a broker, investment banker or finder to contact any potential investor.
Except for Quercus Management Group NV, the Holder and its officers, employees, agents, directors, stockholders or partners, have
not agreed to pay any commission, fee or other remuneration to any third party to solicit or contact any potential investor. The
Holder acknowledges that it is not acquiring the Common Stock pursuant to any general solicitation and that the Holder did not
(i) receive or review any advertisement, article, notice or other communication published in a newspaper or magazine or similar
media or broadcast over television or radio, whether closed circuit, or generally available, with respect to the Common Stock;
or (ii) attend any seminar, meeting or industry investor conference whose attendees were invited by any general solicitation
or general advertising regarding the Common Stock.

 

(h)              
Compliance with Listing Standards.  The Holder acknowledges and agrees that the Company has disclosed matters
relating to certain compliance issues with the NYSE MKT LLC, as described in the Company’s Current Report on Form 8-K filed
by the Company on June 17, 2013, with the U.S. Securities and Exchange Commission. The Holder further acknowledges and agrees that
the Company shall have no liability to the Holder with respect to such matters and such matters shall in no way be deemed to limit
or affect the rights and obligations of the parties under this Note.

 

7.                 
Event of Default. The occurrence of any of following events shall constitute an “Event of Default”
hereunder:

 

(a)                
The failure of the Company to pay any amounts due under this Note when due, provided that such failure continues for no
less than five (5) consecutive days after the Company’s receipt of written notice of such failure from the Holder;

 

(b)                
Unless waived by the Holder, the Company’s material breach of any representations or warranties of the Company under
this Note, which breach is not cured by the Company within sixty (60) days after the Company’s receipt of written notice
thereof from the Holder;

 

(c)                
Unless waived by the Holder, if the Company fails to observe or perform in any material respect any of its covenants contained
in this Note and such failure continues for more than sixty (60) days after the Company’s receipt of written notice thereof
from the Holder; and

 

(d)               
The filing of a petition in bankruptcy or under any similar insolvency law by the Company, the making of an assignment for
the benefit of creditors, or if any voluntary petition in bankruptcy or under any similar insolvency law is filed against the Company
and such petition is not dismissed within sixty (60) days after the filing thereof.

 

    	-7-

    	 

    

 

Upon the occurrence of any Event
of Default, the Holder may declare by written notice to the Company that the Outstanding Balance under this Note shall become immediately
due and payable. Upon the occurrence of any Event of Default, the Holder may, in addition to declaring all amounts due hereunder
to be immediately due and payable, pursue any available remedy, whether at law or in equity.

 

8.                 
Warrant Coverage. Upon receipt of the loan amount in the accounts of the Company, the Company shall issue
a warrant to the Holder to purchase 1,000,000 restricted shares of Common Stock in the form attached hereto as Exhibit B.

 

9.                 
No Waiver. No delay or omission on the part of the Holder in exercising any right under this Note shall operate
as a waiver of such right or of any other right of the Holder, nor shall any delay, omission or waiver on any one occasion be deemed
a bar to or waiver of the same or any other right on any future occasion.

 

10.             
Amendments in Writing. Any term of this Note may be amended, modified or waived upon the written consent of
the Company and the Holder. No such waiver or consent in any one instance shall be construed to be a continuing waiver or a waiver
in any other instance unless it expressly so provides.

 

11.             
No Rights as a Stockholder. This Note does not by itself entitle the Holder to any voting rights or other
rights as a stockholder of the Company. In the absence of conversion of this Note, no provisions of this Note, and no enumeration
herein of the rights or privileges of the Holder, shall cause the Holder to be a stockholder of the Company for any purpose.

 

12.             
Waivers. The Company hereby forever waives presentment, demand, presentment for payment, protest, notice of
protest, notice of dishonor of this Note and all other demands and notices in connection with the delivery, acceptance, performance
and enforcement of this Note.

 

13.             
Governing Law; Jurisdiction; Venue. This Note, and all matters arising directly and indirectly herefrom (the
“Covered Matters”), shall be governed in all respects by the laws of the State of New York as such laws
are applied to agreements between parties in New York. The Company irrevocably submits to the personal jurisdiction of the courts
of the State of New York and the United States District Court for the Southern District of New York for the purpose of any suit,
action, proceeding or judgment relating to or arising out of the Covered Matters. Service of process on the Company in connection
with any such suit, action or proceeding may be served on the Company anywhere in the world by the same methods as are specified
for the giving of notices under this Note. The Company irrevocably consents to the jurisdiction of any such court in any such suit,
action or proceeding and to the laying of venue in such court. The Company irrevocably waives any objection to the laying of venue
of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient forum.

 

14.             
Costs. In the event any party is required to engage the services of any attorneys for the purpose of enforcing
this Note, or any provision thereof, the prevailing party shall be entitled to recover its reasonable expenses and costs in enforcing
this Note, including attorneys’ fees.

 

    	-8-

    	 

    

 

15.             
Notices. All notices and other communications given or made pursuant to this Note shall be in writing and
shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic
mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day,
(c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one
day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.
All communications shall be sent to the Holder at the address set forth on the books and records of the Company or at such other
place as may be designated by the Holder in writing to the Company, and to the Company at 9705 N. Broadway Ext. Ste. 200, 2nd
Floor, Oklahoma City, OK 73114, or to such e-mail address, facsimile number or address as subsequently modified by written notice
given in accordance with this Section 15. If notice is given to the Company, a copy, which itself shall not constitute notice,
shall also be sent to Lowenstein Sandler LLP, 1251 Avenue of the Americas, 17th Floor, New York, NY 10020, Attention: Steven E.
Siesser, Esq.

 

16.             
Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity
or enforceability of any other provision. In the event that any provision hereof shall be interpreted to violate or conflict with
any provision of any other agreement to which the Company is party or or any rule or regulation to which the Company is subject,
the Company and the Holder shall cooperate in good faith to renegotiate such provision in order to make such changes as may be
reasonably required to reflect the mutual intent of the parties as memorialized in this Note, without such violation or conflict,
and whereby the economic terms will be comparable.

 

17.             
Successors and Assigns. This Note shall be binding upon the successors or assigns of the Company and shall
inure to the benefit of the successors and assigns of the Holder.

 

[Signature Page Follows]

 

    	-9-

    	 

    

 

IN
WITNESS WHEREOF, the parties have caused this Note effective as of the date first above written.

 

	 	 	 
	ELEPHANT TALK COMMUNICATIONS CORP.	 
	 	 	 
	 	 	 
	By: 	 	 
	 	Name:
    Steven van der Velden	 
	 	Title:  President and Chief Executive Officer	 
	 	 	 

 

HOLDER:

 

_____________________________

Bernard Moncarey

  

		Address:	27 Val Saint Andre

L-1128 Luxembourg

Luxembourg

	 	 	 

 

	Email:	 	 
	Fax:	 	 
	 	 	 

 

 

[Signature Page to Elephant Talk Communications
Corp. Convertible Note]

  

 

    	 

    	 

    

 

Exhibit A

 

ELEPHANT TALK COMMUNICATIONS CORP.

CONVERSION NOTICE

 

Reference
is made to that certain Convertible Note (the “Note”) issued to the undersigned by Elephant Talk Communications
Corp. (the “Company”). In accordance with and pursuant to the Note, the undersigned hereby elects to convert
the Outstanding Balance (as defined in the Note) of the Note indicated below into shares of Common Stock no par value per
share (the “Common Stock”) of the Company, as of the date specified below.

 

	Date of Conversion:	 
	Aggregate amount of the Outstanding Balance to be converted:	 
	Please confirm the following information:
	Conversion Price:	 
	Number of shares of Common Stock to be issued:	 
	Please issue the Common Stock into which the Note is being converted in the following name and to the following address:
	Issue to:	 
	 	 
	 	 
	Facsimile Number:	 
	E-mail:	 
	By:	 
	Title:	 
	Dated:	 
	Account Number:	 
	  (if electronic book entry transfer)	 
	Transaction Code Number:	 
	  (if electronic book entry transfer)	 
	 	 	 	 	 	 	 	 	 	 	 	 

  

    	 

    	 

    

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Conversion Notice and hereby directs Continental Stock Transfer & Trust Company to issue the above indicated
number of shares of Common Stock.

 

 

ELEPHANT TALK COMMUNICATIONS CORP.

 

	By: 	 	 
	 	Name:
    Steven van der Velden	 
	 	Title:  President and Chief Executive Officer	 
	 	 	 

 

 

    	 

    	 

    

 

Exhibit B

 

FORM OF WARRANTExhibit 4.2

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
THE SECURITIES ACT, OR (B) 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 OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL
REASONABLY SATISFACTORY TO THE COMPANY. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA
FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

ELEPHANT TALK COMMUNICATIONS CORP.

 

WARRANT TO PURCHASE COMMON STOCK

 

	 	 	 
	Warrant No. Z1	 	Original Issue Date: August 17, 2013

 

Elephant Talk Communications Corp., a Delaware
corporation (the “Company”), hereby certifies that, for value received, Bernard Moncarey or his permitted registered
assigns (the “Holder”), is entitled to purchase from the Company up to a total of 1,000,000 shares of common
stock, $0.00001 par value per share (the “Common Stock”), of the Company (each such share, a “Warrant
Share” and all such shares, the “Warrant Shares”) at an exercise price per share equal to $0.887 per
share (as adjusted from time to time as provided in Section 9 herein, the “Exercise Price”), at any time
and from time to time on or after the date that is six months from the date hereof (the “Trigger Date”) and
through and including 5:30 P.M., New York City time, on August 17, 2018 (the “Expiration Date”), and subject
to the following terms and conditions:

 

This Warrant (this “Warrant”)
is issued pursuant to that certain Convertible Note, dated August 17, 2013 by and among the Company and the Holder (the “Convertible
Note”).”

 

1. Definitions. In addition
to the terms defined elsewhere in this Warrant, capitalized terms that are not otherwise defined herein have the meanings given
to such terms in the Convertible Note.

  

2.Registration of Warrant. 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 (which shall include the initial Holder or, as the case may be, any registered assignee to which
this Warrant is permissibly assigned hereunder) 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.

 

3. Registration of Transfers.
Subject to compliance with all applicable securities laws, the Company shall register the transfer of all or any portion of this
Warrant in the Warrant Register, upon surrender of this Warrant, with the Form of Assignment attached as Schedule 2 hereto
duly completed and signed, to the Company’s transfer agent or to the Company at its address specified in the Convertible
Note and (x) delivery, at the request of the Company, of an opinion of counsel reasonably satisfactory to the Company to the effect
that the transfer of such portion of this Warrant may be made pursuant to an available exemption from the registration requirements
of the Securities Act and all applicable state securities or blue sky laws and (y) delivery by the transferee of a written statement
to the Company certifying that the transferee is an “accredited investor” as defined in Rule 501(a) under the Securities
Act and making such representations and warranties set forth in Section 6 of the Convertible Note, to the Company at its
address specified in the Convertible Note. Upon any such registration or transfer, a new warrant to purchase Common Stock in substantially
the form of this Warrant (any such new warrant, a “New Warrant”) evidencing the portion of this Warrant so transferred
shall be issued to the transferee, and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any,
shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance
by such transferee of all of the rights and obligations in respect of the New Warrant that the Holder has in respect of this Warrant.
The Company shall prepare, issue and deliver at its own expense any New Warrant under this Section 3.

 

    	 

    	 

    

 

4. Exercise and Duration of Warrant.

 

(a) All or any part of this Warrant
shall be exercisable by the registered Holder in any manner permitted by Section 10 of this Warrant at any time and from
time to time on or after the Trigger Date and through and including 5:30 P.M. New York City time, on the Expiration Date. At 5:30
P.M., New York City time, on the Expiration Date, the portion of this Warrant not exercised prior thereto shall be and become void
and of no value and this Warrant shall be terminated and no longer outstanding.

 

(b)The Holder may exercise this
Warrant by delivering to the Company (i) an exercise notice, in the form attached as Schedule 1 hereto (the “Exercise
Notice”), completed and duly signed, and (ii) payment of the Exercise Price for the number of Warrant Shares as to which
this Warrant is being exercised (which may take the form of a “cashless exercise” if so indicated in the Exercise Notice
and if a “cashless exercise” may occur at such time pursuant to Section 10 below), and the date such items are
delivered to the Company (as determined in accordance with the notice provisions hereof) is an “Exercise Date.”
The delivery by (or on behalf of) the Holder of the Exercise Notice and the applicable Exercise Price as provided above shall constitute
the Holder’s certification to the Company that its representations and warranties set forth in Section 6 of the Convertible
Note are true and correct as of the Exercise Date as if remade in their entirety (or, in the case of any transferee Holder that
is not a party to the Convertible Notes, such transferee Holder’s certification to the Company that such representations
are true and correct as to such assignee Holder as of the Exercise Date). The Holder shall not be required to deliver the original
Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice shall have the same effect as cancellation
of the original Warrant and issuance of a New Warrant evidencing the right to purchase the remaining number of Warrant Shares.

 

5. Delivery of Warrant Shares.
Upon exercise of this Warrant, the Company shall promptly (but in no event later than three Trading Days after the Exercise Date)
issue or cause to be issued and cause to be delivered to or upon the written order of the Holder, (i) a certificate for the Warrant
Shares issuable upon such exercise, free of restrictive legends, or (ii) an electronic delivery of the Warrant Shares to the Holder’s
account at the Depository Trust Company (“DTC”) or a similar organization, unless in the case of clause (i)
and (ii) a registration statement covering the resale of the Warrant Shares and naming the Holder as a selling stockholder thereunder
is not then effective or the Warrant Shares are not freely transferable without volume restrictions pursuant to Rule 144 under
the Securities Act, in which case such Holder shall receive a certificate for the Warrant Shares issuable upon such exercise with
appropriate restrictive legends. The Holder, or any Person permissibly so designated by the Holder to receive Warrant Shares, shall
be deemed to have become the holder of record of such Warrant Shares as of the Exercise Date. If the Warrant Shares are to be issued
free of all restrictive legends, the Company shall, upon the written request of the Holder, use its reasonable best efforts to
deliver, or cause to be delivered, Warrant Shares hereunder electronically through The Depository Trust Company or another established
clearing corporation performing similar functions, if available; provided, that, the Company may, but will not be required to,
change its transfer agent if its current transfer agent cannot deliver Warrant Shares electronically through such a clearing corporation.

 

    	2

    	 

    

 

6. Charges, Taxes and Expenses.
Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be made without charge to
the Holder for any issue or transfer tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such
certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not
be required to pay any tax that may be payable in respect of any transfer involved in the registration of any certificates for
Warrant Shares or the Warrant in a name other than that of the Holder or an Affiliate thereof. The Holder shall be responsible
for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon
exercise hereof.

 

7. Replacement of Warrant. If
this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution
for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction (in such case) and, in each case, a customary and reasonable
indemnity and surety bond, if requested by the Company. Applicants for a New Warrant under such circumstances shall also comply
with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe.
If a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant
to the Company as a condition precedent to the Company’s obligation to issue the New Warrant.

 

8. Reservation of Warrant Shares.
The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized but unissued
and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant
as herein provided, the number of Warrant Shares that are initially issuable and deliverable upon the exercise of this entire Warrant,
free from preemptive rights or any other contingent purchase rights of persons other than the Holder (taking into account the adjustments
and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon issuance
and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly authorized, issued and
fully paid and nonassessable. The Company will take all such action as may be reasonably necessary to assure that such shares of
Common Stock may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of
any securities exchange or automated quotation system upon which the Common Stock may be listed.

 

9. Certain Adjustments. The
Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time
as set forth in this Section 9.

 

    	3

    	 

    

 

(a)Stock Dividends and Splits.
If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes
a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides its outstanding shares
of Common Stock into a larger number of shares, or (iii) combines its outstanding shares of Common Stock into a smaller number
of shares, then in each such case the Exercise Price shall be multiplied by a fraction, the numerator of which shall be the number
of shares of Common Stock outstanding immediately before such event and the denominator of which shall be the number of shares
of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become
effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution,
and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date
of such subdivision or combination.

 

(b) Pro Rata Distributions.
If the Company, at any time while this Warrant is outstanding, distributes to all holders of Common Stock for no consideration
(i) evidences of its indebtedness, (ii) any security (other than a distribution of Common Stock covered by the preceding paragraph)
or (iii) rights or warrants to subscribe for or purchase any security, or (iv) any other asset (in each case, “Distributed
Property”), then, upon any exercise of this Warrant that occurs after the record date fixed for determination of stockholders
entitled to receive such distribution, the Holder shall be entitled to receive, in addition to the Warrant Shares otherwise issuable
upon such exercise (if applicable), the Distributed Property that such Holder would have been entitled to receive in respect of
such number of Warrant Shares had the Holder been the record holder of such Warrant Shares immediately prior to such record date
without regard to any limitation on exercise contained therein.

 

 (c) Number of Warrant
Shares. Simultaneously with any adjustment to the Exercise Price pursuant to paragraph (a) of this Section 9, the number
of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that
after such adjustment the aggregate Exercise Price payable hereunder for the increased or decreased number of Warrant Shares shall
be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.

 

10. Payment of Exercise Price.
The Holder shall pay the Exercise Price in immediately available funds; provided, however, the Holder may, in its sole discretion,
satisfy its obligation to pay the Exercise Price through a “cashless exercise”, in which event the Company shall issue
to the Holder the number of Warrant Shares determined as follows:

 

X = Y [(A-B)/A]

 

where:

 

X = the number of Warrant Shares to be issued to
the Holder.

 

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

 

A = the average of the Closing Sale Prices of the shares
of Common Stock (as reported by Bloomberg Financial Markets) for the five (5) Trading Days ending on the date immediately preceding
the Exercise Date.

 

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

 

    	4

    	 

    

 

For purposes of this Warrant, “Closing
Sale Price” means, for any security as of any date, the last trade price for such security on the principal securities
exchange or trading market for such security, as reported by Bloomberg Financial Markets, or, if such exchange or trading market
begins to operate on an extended hours basis and does not designate the last trade price, then the last trade price of such security
prior to 4:00 P.M., New York City time, as reported by Bloomberg Financial Markets, or if the foregoing do not apply, the last
trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg
Financial Markets, or, if no last trade price is reported for such security by Bloomberg Financial Markets, the average of the
bid prices, or the ask prices, respectively, of any market makers for such security as reported in the “pink sheets”
by Pink Sheets LLC. If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing
bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company
and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then the Board of
Directors of the Company shall use its good faith judgment to determine the fair market value. The Board of Directors’ determination
shall be binding upon all parties absent demonstrable error. All such determinations shall be appropriately adjusted for any stock
dividend, stock split, stock combination or other similar transaction during the applicable calculation period.

 

For purposes of Rule 144 promulgated under
the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction
shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced,
on the date this Warrant was originally issued pursuant to the Convertible Note (provided that the Commission continues to take
the position that such treatment is proper at the time of such exercise).

 

11. No Fractional Shares. No
fractional Warrant Shares will be issued in connection with any exercise of this Warrant. In lieu of any fractional shares that
would, otherwise be issuable, the number of Warrant Shares to be issued shall be rounded down to the next whole number and the
Company shall pay the Holder in cash the fair market value (based on the Closing Sale Price) for any such fractional shares.

 

12. Notices. Any and all notices
or other communications or deliveries hereunder (including, without limitation, any Exercise Notice) shall be in writing and shall
be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in the Convertible Note prior to 5:30 P.M., New York City time, on a Trading Day,
(ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile
number specified in the Convertible Note on a day that is not a Trading Day or later than 5:30 P.M., New York City time, on any
Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service specifying
next business day delivery, or (iv) upon actual receipt by the party to whom such notice is required to be given, if by hand
delivery. The address and facsimile number of a party for such notices or communications shall be as set forth in the Convertible
Note unless changed by such party by two (2) Trading Days’ prior notice to the other party in accordance with this Section
12.

 

13. Warrant Agent. The Company
shall serve as warrant agent under this Warrant. Upon thirty (30) days’ notice to the Holder, the Company may appoint a new
warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting from
any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or any
new warrant agent transfers substantially all of its corporate trust or shareholders services business shall be a successor warrant
agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession
as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as shown
on the Warrant Register.

 

    	5

    	 

    

 

14. Miscellaneous.

 

(a)               
No Rights as a Stockholder. The Holder, solely in such Person’s capacity
as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the
Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person’s
capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold
consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger,
amalgamation, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior
to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this
Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase
any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted
by the Company or by creditors of the Company.

 

(b)              
Successors and Assigns. Subject to compliance with applicable securities
laws, this Warrant may be assigned by the Holder. This Warrant may not be assigned by the Company without the written consent of
the Holder. This Warrant shall be binding on and inure to the benefit of the parties hereto and their respective successors and
assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company
and the Holder any legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be amended only in
writing signed by the Company and the Holder, or their successors and assigns.

 

(c)               
Amendment and Waiver. Except as otherwise provided herein, the provisions of
the Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to
be performed by it, only if the Company has obtained the written consent of the Holder of this Warrant.

 

(d)              
Acceptance. Receipt of this Warrant by the Holder shall constitute acceptance
of and agreement to all of the terms and conditions contained herein.

 

(e)               
Governing Law; Jurisdiction. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY,
ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE
JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY
DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT
TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION
OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT. EACH PARTY HEREBY IRREVOCABLY
WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY
THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT
FOR NOTICES TO IT UNDER THE CONVERTIBLE NOTE AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS
AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED
BY LAW. EACH PARTY HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY. 

 

    	6

    	 

    

 

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

 

(e) Severability. In case
any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby, and the parties will
attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor,
and upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,

SIGNATURE PAGE FOLLOWS]

 

    	7

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant No. Z1 to be duly executed by its authorized officer as of the date first indicated above.

 

	ELEPHANT TALK COMMUNICATIONS CORP.	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    

 

SCHEDULE 1

FORM OF EXERCISE NOTICE

 

(To be executed by the Holder to purchase
shares of

Common Stock under the foregoing Warrant)

 

Ladies and Gentlemen:

 

(1)The undersigned is the Holder of
Warrant No. __________ (the “Warrant”) issued by Elephant Talk Communications Corp., a Delaware corporation (the “Company”).
Capitalized terms used herein and not otherwise defined herein have the respective meanings set forth in the Warrant.

 

(2)The undersigned hereby exercises
its right to purchase __________ Warrant Shares pursuant to the Warrant.

  

(3)The Holder intends that payment
of the Exercise Price shall be made as (check one):

 

	 	o	Cash Exercise 	 
	 	 	 	 
	 	o	“Cashless Exercise” under Section 10	 

   

(4)If the Holder has elected a Cash
Exercise, the Holder shall pay the sum of $_______ in immediately available funds to the Company in accordance with the terms of
the Warrant.

 

(5)Pursuant to this Exercise Notice,
the Company shall deliver to the Holder Warrant Shares determined in accordance with the terms of the Warrant.

 

Dated:_______________, _____

Name of Holder: ___________________________

By:__________________________________

Name: _______________________________

Title: _______________________________

(Signature must conform in all respects
to name of Holder as specified on the face of the Warrant)

 

    	 

    	 

    

 

SCHEDULE 2

Elephant Talk Communications Corp.

 

FORM OF ASSIGNMENT

 

[To be completed and signed only upon transfer
of Warrant]

 

FOR VALUE RECEIVED, the undersigned hereby
sells, assigns and transfers unto                             
(the “Transferee”) the right represented by the within Warrant to purchase                 
shares of Common Stock of Elephant Talk Communications Corp. (the “Company”) to which the within Warrant relates and
appoints                             
attorney to transfer said right on the books of the Company with full power of substitution in the premises. In connection therewith,
the undersigned represents, warrants, covenants and agrees to and with the Company that:

 

		(a)	the offer and sale of the Warrant contemplated hereby is being made in compliance with Section
4(1) of the United States Securities Act of 1933, as amended (the “Securities Act”) or another valid exemption from
the registration requirements of Section 5 of the Securities Act and in compliance with all applicable securities laws of the states
of the United States;

 

		(b)	the undersigned has not offered to sell the Warrant by any form of general solicitation or general
advertising, including, but not limited to, any advertisement, article, notice or other communication published in any newspaper,
magazine or similar media or broadcast over television or radio, and any seminar or meeting whose attendees have been invited by
any general solicitation or general advertising;

 

		(c)	the undersigned has read the Transferee’s investment letter included herewith, and to its
actual knowledge, the statements made therein are true and correct; and

 

		(d)	the undersigned understands that the Company may condition the transfer of the Warrant contemplated
hereby upon the delivery to the Company by the undersigned or the Transferee, as the case may be, of a written opinion of counsel
(which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect
that such transfer may be made without registration under the Securities Act and under applicable securities laws of the states
of the United States.

 

	Dated:             ,     	 	
         

         

	 	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)
	 	 	
         

         

	 	 	Address of Transferee
	 	 	
         

         

	 	 	
         

         

	In the presence of:

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