Document:

EXHIBIT 4.1

 

HYRECAR INC

 

2018 EQUITY INCENTIVE PLAN 

 

Adopted by Board: May 23, 2018

 

Approved by Stockholders: June 21, 2018

 

Termination Date: June 21, 2028

 

I.
INTRODUCTION

 

1.1 Purposes. The
purposes of the Hyrecar Inc. 2018 Equity Incentive Plan, effective : June 21, 2018, as set forth herein (this “Plan”)
are (i) to align the interests of the Company’s stockholders and the recipients of awards under this Plan by increasing the
proprietary interest of such recipients in the Company’s growth and success, (ii) to advance the interests of the Company
by attracting and retaining directors, officers, employees and other service providers and (iii) to motivate such persons to act
in the long-term best interests of the Company and its stockholders.

 

1.2 Certain Definitions. 

 

“Agreement” shall
mean an electronic or written agreement evidencing an award hereunder between the Company and the recipient of such award.

 

“Assumed” means
that pursuant to a Change in Control, either (i) the award is expressly affirmed by the Company or (ii) the contractual obligations
represented by the award are expressly assumed (and not simply by operation of law) by the successor entity or its parent in connection
with the Change in Control with appropriate adjustments to the number and type of securities of the successor entity or its parent
subject to the award and the exercise or purchase price thereof which at least preserves the compensation element of the award
existing at the time of the Change in Control as determined in accordance with the instruments evidencing the agreement to assume
the award.

 

“Board” shall
mean the Board of Directors of the Company.

 

“Bonus Shares” shall
mean Shares which are not subject to a Restriction Period or Performance Measures.

 

“Bonus Share Award” shall
mean an award of Bonus Shares under this Plan.

 

“Cash-Based Award” shall
mean an award denominated in cash that may be settled in cash and/or Shares, which may be subject to restrictions, as established
by the Committee.

 

“Change in Control” shall
have the meaning set forth in Section 6.8(b).

 

“Code” shall
mean the Internal Revenue Code of 1986, as amended.

 

“Committee” shall
mean the Committee designated by the Board, or a subcommittee thereof, consisting of two or more members of the Board, each of
whom is intended to be (i) a “Non-Employee Director” within the meaning of Rule 16b-3 under the Exchange Act and (ii)
“independent” within the meaning of the rules of the Nasdaq Capital Market or any other stock exchange on which Shares
are then traded.

 

“Common Stock” shall
mean the common stock of the Company.

 

“Company” shall
mean HyreCar Inc., a Delaware corporation, or any successor thereto.

 

“Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended.

 

     

     

    

 

“Fair Market Value” shall
mean the closing transaction price of a Share as reported on the Nasdaq Capital Market on the date as of which such value is being
determined or, if Shares are not listed on the Nasdaq Capital Market, the closing transaction price of a Share on the
principal national stock exchange on which Shares are traded on the date as of which such value is being determined or, if there
shall be no reported transactions for such date, on the next preceding date for which transactions were reported; provided, however,
that if Shares are not listed on a national stock exchange or if Fair Market Value for any date cannot be so determined, Fair Market
Value shall be determined by the Committee by whatever means or method as the Committee, in the good faith exercise of its discretion,
shall at such time deem appropriate and in compliance with Section 409A of the Code.

 

“Free-Standing SAR” shall
mean an SAR which is not granted in tandem with, or by reference to, an option, which entitles the holder thereof to receive, upon
exercise, Shares (which may be Restricted Shares) or, to the extent provided in the applicable Agreement, cash or a combination
thereof, with an aggregate value equal to the excess of the Fair Market Value of one Share on the date of exercise over the base
price of such SAR, multiplied by the number of such SARs which are exercised.

 

“Incentive Stock Option” shall
mean an option to purchase Shares that meets the requirements of Section 422 of the Code, or any successor provision, which is
intended by the Committee to constitute an Incentive Stock Option.

 

“Incumbent Director” shall have
the meaning set forth in Section 6.8(b)(iii).

 

“Initial Public Offering” shall
mean the initial public offering of the Company registered on Form S-1 (or any successor form under the Securities Act of 1933,
as amended).

 

“Non-Employee Director” shall
mean any director of the Company who is not an officer or employee of the Company or any Subsidiary.

 

“Nonqualified Option” shall
mean an option to purchase Shares which is not an Incentive Stock Option.

 

“Performance Measures” shall
mean the criteria and objectives, established by the Committee in its sole discretion, which shall be satisfied or met (i) as a
condition to the grant or exercisability of all or a portion of an option or SAR or (ii) during the applicable Restriction Period
or Performance Period as a condition to the vesting of the holder’s interest, in the case of a Restricted Share Award, of
the Shares subject to such award, or, in the case of a Restricted Share Unit Award, Performance Unit Award or Cash-Based Award,
to the holder’s receipt of the Shares subject to such award or of payment with respect to such award. The performance goals
may consist of any objective or subjective corporate- wide or subsidiary, division, operating unit or individual measures, whether
or not listed herein. The applicable performance measures may be applied on a pre- or post-tax basis and may be adjusted as determined
by the Committee to include or exclude objectively determinable components of any performance measure, including, without limitation,
special charges such as restructuring or impairment charges, debt refinancing costs, extraordinary or noncash items, unusual, nonrecurring
or one-time events affecting the Company or its financial statements or changes in law or accounting principles (“Adjustment
Events”). In the sole discretion of the Committee, the Committee may amend or adjust the Performance Measures or other terms
and conditions of an outstanding award in recognition of any Adjustment Events. Performance goals shall be subject to such other
special rules and conditions as the Committee may establish at any time.

 

“Performance Period” shall
mean any period designated by the Committee during which (i) the Performance Measures applicable to an award shall be measured
and (ii) the conditions to vesting applicable to an award shall remain in effect.

 

“Performance Unit” shall
mean a right to receive, contingent upon the attainment of specified Performance Measures within a specified Performance Period,
a specified cash amount or, in lieu thereof and to the extent set forth in the applicable award Agreement, Shares having a Fair
Market Value equal to such cash amount.

 

“Performance Unit Award” shall
mean an award of Performance Units under this Plan.

 

“Replaced” means
that pursuant to a Change in Control the award is replaced with a comparable stock award or a cash incentive award or program of
the Company, the successor entity (if applicable) or parent of either of them which preserves the compensation element of such
award existing at the time of the Change in Control and provides for subsequent payout in accordance with the same (or, for the
participant, a more favorable) vesting schedule applicable to such award. The determination of award comparability shall be made
by the Committee and its determination shall be final, binding and conclusive.

 

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“Restricted Shares” shall
mean Shares which are subject to a Restriction Period and which may, in addition thereto, be subject to the attainment of specified
Performance Measures within a specified Performance Period.

 

“Restricted Share Award” shall
mean an award of Restricted Shares under this Plan.

 

“Restricted Share Unit” shall
mean a right to receive one Share or, in lieu thereof and to the extent set forth in the applicable award Agreement, the Fair Market
Value of such Share in cash, which shall be contingent upon the expiration of a specified Restriction Period and which may, in
addition thereto, be contingent upon the attainment of specified Performance Measures within a specified Performance Period.

 

“Restricted Share Unit Award” shall
mean an award of Restricted Share Units under this Plan.

 

“Restriction Period” shall
mean any period designated by the Committee during which (i) the Shares subject to a Restricted Share Award may not be sold, transferred,
assigned, pledged, hypothecated or otherwise encumbered or disposed of, except as provided in this Plan or the Agreement relating
to such award, or (ii) the conditions to vesting applicable to a Restricted Share Unit Award shall remain in effect.

 

“SAR” shall
mean a share appreciation right which may be a Free-Standing SAR or a Tandem SAR.

 

“Share” shall
mean a share of the Common Stock, $0.00001 par value per share, of the Company, and all rights appurtenant thereto.

 

“Share Award” shall
mean a Bonus Share Award, Restricted Share Award or Restricted Share Unit Award.

 

“Subsidiary” shall
mean any corporation, limited liability company, partnership, joint venture or similar entity in which the Company owns, directly
or indirectly, an equity interest possessing more than 50% of the combined voting power of the total outstanding equity interests
of such entity.

 

“Substitute Award” shall
mean an award granted under this Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted
by a company or other entity in connection with a corporate transaction, including a merger, combination, consolidation or acquisition
of property or stock; provided, however, that in no event shall the term “Substitute Award”
be construed to refer to an award made in connection with the cancellation and repricing of an option or SAR.

  

“Tandem SAR” shall
mean an SAR which is granted in tandem with, or by reference to, an option (including a Nonqualified Option granted prior to the
date of grant of the SAR), which entitles the holder thereof to receive, upon exercise of such SAR and surrender for cancellation
of all or a portion of such option, Shares (which may be Restricted Shares) or, to the extent provided in the applicable Agreement,
cash or a combination thereof, with an aggregate value equal to the excess of the Fair Market Value of one Share on the date of
exercise over the base price of such SAR, multiplied by the number of Shares subject to such option, or portion thereof, which
is surrendered.

 

“Tax Date” shall
have the meaning set forth in Section 6.5.

 

“Ten Percent Holder” shall
have the meaning set forth in Section 2.1(a).

 

1.3 Administration. This
Plan shall be administered by the Committee. Any one or a combination of the following awards may be made under this Plan to eligible
persons: (i) options to purchase Shares in the form of Incentive Stock Options or Nonqualified Options, (ii) SARs in the form of
Tandem SARs or Free-Standing SARs, (iii) Share Awards in the form of Bonus Shares, Restricted Shares or Restricted Share Units,
(iv) Performance Units and (v) Cash-Based Awards. The Committee shall, subject to the terms of this Plan, select eligible persons
for participation in this Plan and determine the form, amount and timing of each award to such persons and, if applicable, the
number of Shares, the number of SARs, the number of Restricted Share Units, the value of Cash-Based Awards and the number of Performance
Units subject to such an award, the exercise price or base price associated with the award, the time and conditions of exercise
or settlement of the award and all other terms and conditions of the award, including, without limitation, the form of the Agreement
evidencing the award. The Committee may, in its sole discretion and for any reason at any time, take action such that (i) any or
all outstanding options and SARs shall become exercisable in part or in full, (ii) all or a portion of the Restriction Period applicable
to any outstanding Restricted Shares or Restricted Share Units shall lapse, (iii) all or a portion of the Performance Period applicable
to any outstanding award shall lapse and (iv) the Performance Measures (if any) applicable to any outstanding award shall be deemed
to be satisfied at the target or any other level. The Committee shall, subject to the terms of this Plan, interpret this Plan and
the application thereof, establish rules and regulations it deems necessary or desirable for the administration of this Plan and
may impose, incidental to the grant of an award, conditions with respect to the award. All such interpretations, rules, regulations
and conditions shall be conclusive and binding on all parties.

 

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The Committee may delegate some or all
of its power and authority hereunder to the Board or, subject to applicable law, to the Chief Executive Officer and President or
such other executive officer as the Committee deems appropriate; provided, however, that (i) the Committee
may not delegate its power and authority to the Board or the President and Chief Executive Officer or other executive officer of
the Company with regard to the grant of an award to any person who is a Covered Employee or who, in the Committee’s judgment,
is likely to be a Covered Employee at any time during the period an award hereunder to such employee would be outstanding and (ii)
the Committee may not delegate its power and authority to the President and Chief Executive Officer or other executive officer
of the Company with regard to the selection for participation in this Plan of an officer, director or other person subject to Section
16 of the Exchange Act or decisions concerning the timing, pricing or amount of an award to such an officer, director or other
person.

 

No member of the Board or Committee, and
neither the Chief Executive Officer and President or any other executive officer to whom the Committee delegates any of its power
and authority hereunder, shall be liable for any act, omission, interpretation, construction or determination made in connection
with this Plan in good faith, and the members of the Board and the Committee and the Chief Executive Officer and President and
any other executive officer shall be entitled to indemnification and reimbursement by the Company in respect of any claim, loss,
damage or expense (including attorneys’ fees) arising therefrom to the full extent permitted by law (except as otherwise
may be provided in the Company’s Certificate of Incorporation or By-Laws, each as may be amended from time to time) and under
any directors’ and officers’ liability insurance that may be in effect from time to time.

 

A majority of the Committee shall constitute
a quorum. The acts of the Committee shall be either (i) acts of a majority of the members of the Committee present at any meeting
at which a quorum is present or (ii) acts approved in writing by all of the members of the Committee without a meeting.

 

1.4 Eligibility. Participants
in this Plan shall consist of such officers, Non-Employee Directors, employees, consultants, agents and independent contractors,
and persons expected to become officers, Non-Employee Directors, employees, consultants, agents, and independent contractors of
the Company and its Subsidiaries as the Committee in its sole discretion may select from time to time. The Committee’s selection
of a person to participate in this Plan at any time shall not require the Committee to select such person to participate in this
Plan at any other time. For purposes of this Plan and except as otherwise provided for in an Agreement, references to employment
by the Company shall also mean employment by a Subsidiary, and references to employment shall include service as a Non-Employee
Director or independent contractor. The Committee shall determine, in its sole discretion, the extent to which a participant shall
be considered employed during any periods during which such participant is on an approved leave of absence.

 

1.5 Shares and Cash Available. Subject
to adjustment as provided in Section 6.7 and to all other limits set forth in this Section 1.5, 3,000,000 Shares shall be available
for awards under this Plan. The number of Shares that remain available for future grants under the Plan shall be reduced by the
sum of the aggregate number of Shares which become subject to outstanding options, outstanding Free-Standing SARs and outstanding
Share Awards and delivered upon the settlement of Performance Units. As of the first day of each calendar year beginning on or
after January 1, 2021, the number of Shares available for all awards under the Plan, other than Incentive Stock Options, shall
automatically increase by a number equal to the least of (x) 300,000 Shares, (y) 5% of the number of Shares that are issued and
outstanding as of such date, or (z) a lesser number of Shares determined by the Committee. To the extent that Shares subject to
an outstanding option, SAR, Share Award or other award granted under the Plan are not issued or delivered by reason of (i) the
expiration, termination, cancellation or forfeiture of such award (excluding Shares subject to an option cancelled upon settlement
in Shares of a related tandem SAR or Shares subject to a tandem SAR cancelled upon exercise of a related option) or (ii) the settlement
of such award in cash, then such Shares shall again be available under this Plan, other than for grants of Incentive Stock Options.
Notwithstanding the foregoing and, subject to adjustment as provided in Section 6.7, the maximum number of Shares that may be issued
upon the exercise of Incentive Stock Options will equal the aggregate Share number stated in Section 1.5, plus, to the extent allowable
under Section 422 of the Code and the Treasury Regulations promulgated thereunder, any Shares that become available for issuance
under the Plan pursuant this Section 1.5.

 

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To the extent not prohibited by the listing
requirements of the Nasdaq Capital Market or any other stock exchange on which Shares are then traded or applicable laws, any Shares
covered by an award which are surrendered (i) in payment of the award exercise or purchase price (including pursuant to the “net
exercise” of an option pursuant to Section 2.1(c), or the “net settlement” or “net exercise” of a
Share-settled SAR pursuant to Section 2.2(c)) or (ii) in satisfaction of tax withholding obligations incident to the grant, exercise,
vesting or settlement of an award shall be deemed not to have been issued for purposes of determining the maximum number of Shares
which may be issued pursuant to all awards under the Plan, unless otherwise determined by the Committee. Notwithstanding anything
in this Section 1.5 to the contrary, Shares subject to an award under this Plan may not be made available for issuance under this
Plan if such shares are shares repurchased on the open market with the proceeds of an option exercise.

 

The number of Shares for awards under this
Plan shall not be reduced by (i) the number of Shares subject to Substitute Awards or (ii) available shares under a stockholder
approved plan of a company or other entity which was a party to a corporate transaction with the Company (as appropriately adjusted
to reflect such corporate transaction) which become subject to awards granted under this Plan (subject to applicable stock exchange
requirements).

 

Shares to be delivered under this Plan
shall be made available from authorized and unissued Shares, or authorized and issued Shares reacquired and held as treasury shares
or otherwise or a combination thereof.

 

1.6 Per Person Limits The
aggregate grant date fair value of Shares that may be granted during any fiscal year of the Company to any Non-Employee Director
shall not exceed $150,000; provided, however, that (i) the limit set forth in this sentence shall be $150,000 in the year in which
a Non-Employee Director commences service on the Board and (ii) the limits set forth in this sentence shall not apply to awards
made pursuant to an election to receive the award in lieu of all or a portion of fees received for service on the Board or any
committee thereunder.

 

II.
OPTIONS AND SHARE APPRECIATION RIGHTS

 

2.1 Options. The
Committee may, in its discretion, grant options to purchase Shares to such eligible persons as may be selected by the Committee.
Each option, or portion thereof, that is not an Incentive Stock Option, shall be a Nonqualified Option. To the extent that the
aggregate Fair Market Value (determined as of the date of grant) of Shares with respect to which options designated as Incentive
Stock Options are exercisable for the first time by a participant during any calendar year (under this Plan or any other plan of
the Company, or any parent or Subsidiary) exceeds the amount (currently $100,000) established by the Code, such options shall constitute
Nonqualified Options.

 

Options shall be subject to the following
terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the
Committee shall deem advisable:

 

(a) Number of Shares and Purchase
Price. The number of Shares subject to an option and the purchase price per Share purchasable upon exercise of the option shall
be determined by the Committee; provided, however, that the purchase price per Share purchasable upon exercise
of an option shall not be less than 100% of the Fair Market Value of a Share on the date of grant of such option; provided
further, that if an Incentive Stock Option shall be granted to any person who, at the time such option is granted, owns capital
stock possessing more than 10 percent of the total combined voting power of all classes of capital stock of the Company (or of
any parent or Subsidiary) (a “Ten Percent Holder”), the purchase price per Share shall not be less than the
price (currently 110% of Fair Market Value) required by the Code in order to constitute an Incentive Stock Option.

 

Notwithstanding the foregoing, in the case
of an option that is a Substitute Award, the purchase price per Share of the Shares subject to such option may be less than 100%
of the Fair Market Value per Share on the date of grant, provided, that the excess of: (a) the aggregate Fair Market Value (as
of the date such Substitute Award is granted) of the shares subject to the Substitute Award, over (b) the aggregate purchase price
thereof does not exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the transaction
giving rise to the Substitute Award, such fair market value to be determined by the Committee) of the shares of the predecessor
company or other entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate purchase
price of such shares.

 

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(b) Option Period and Exercisability.
The period during which an option may be exercised shall be determined by the Committee; provided, however,
that no option shall be exercised later than ten years after its date of grant; provided further, that if an Incentive
Stock Option shall be granted to a Ten Percent Holder, such option shall not be exercised later than five years after its date
of grant. The Committee may, in its discretion, establish Performance Measures which shall be satisfied or met as a condition to
the grant of an option or to the exercisability of all or a portion of an option. The Committee shall determine whether an option
shall become exercisable in cumulative or non-cumulative installments and in part or in full at any time. An exercisable option,
or portion thereof, may be exercised only with respect to whole Shares. Prior to the exercise of an option, the holder of such
option shall have no rights as a stockholder of the Company with respect to the Shares subject to such option.

 

(c) Method of Exercise. An
option may be exercised (i) by giving written notice to the Company specifying the number of whole Shares to be purchased and accompanying
such notice with payment therefor in full (or arrangement made for such payment to the Company’s satisfaction) either (A)
in cash, (B) by delivery (either actual delivery or by attestation procedures established by the Company) of Shares having a Fair
Market Value, determined as of the date of exercise, equal to the aggregate purchase price payable by reason of such exercise,
(C) authorizing the Company to withhold whole Shares which would otherwise be delivered having an aggregate Fair Market Value,
determined as of the date of exercise, equal to the amount necessary to satisfy such obligation, (D) in cash by a broker-dealer
acceptable to the Company to whom the optionee has submitted an irrevocable notice of exercise or (E) a combination of (A), (B)
and (C), in each case to the extent set forth in the Agreement relating to the option, (ii) if applicable, by surrendering to the
Company any Tandem SARs which are cancelled by reason of the exercise of the option and (iii) by executing such documents as the
Company may reasonably request. Any fraction of a Share which would be required to pay such purchase price shall be disregarded
and the remaining amount due shall be paid in cash by the optionee. No Shares shall be issued and no certificate representing Shares
shall be delivered until the full purchase price therefor and any withholding taxes thereon, as described in Section 6.5, have
been paid (or arrangement made for such payment to the Company’s satisfaction).

 

2.2 Share Appreciation Rights. The
Committee may, in its discretion, grant SARs to such eligible persons as may be selected by the Committee. The Agreement relating
to an SAR shall specify whether the SAR is a Tandem SAR or a Free-Standing SAR.

 

SARs shall be subject to the following
terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the
Committee shall deem advisable:

 

(a) Number of SARs and Base Price.
The number of SARs subject to an award shall be determined by the Committee. Any Tandem SAR related to an Incentive Stock Option
shall be granted at the same time that such Incentive Stock Option is granted. The base price of a Tandem SAR shall be the purchase
price per Share of the related option. The base price of a Free-Standing SAR shall be determined by the Committee; provided, however,
that such base price shall not be less than 100% of the Fair Market Value of a Share on the date of grant of such SAR.

 

Notwithstanding the foregoing, in the case
of an SAR that is a Substitute Award, the base price per Share of the Shares subject to such SAR may be less than 100% of the Fair
Market Value per Share on the date of grant, provided, that the excess of: (a) the aggregate Fair Market Value (as of the date
such Substitute Award is granted) of the Shares subject to the Substitute Award, over (b) the aggregate base price thereof does
not exceed the excess of: (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise
to the Substitute Award, such fair market value to be determined by the Committee) of the shares of the predecessor company or
other entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate base price of such
shares.

 

(b) Exercise Period and Exercisability.
The period for the exercise of an SAR shall be determined by the Committee; provided, however, that no
Tandem SAR shall be exercised later than the expiration, cancellation, forfeiture or other termination of the related option and
no Free- Standing SAR shall be exercised later than ten years after its date of grant. The Committee may, in its discretion, establish
Performance Measures which shall be satisfied or met as a condition to the grant of an SAR or to the exercisability of all or a
portion of an SAR. The Committee shall determine whether an SAR may be exercised in cumulative or non-cumulative installments and
in part or in full at any time. An exercisable SAR, or portion thereof, may be exercised, in the case of a Tandem SAR, only with
respect to whole Shares and, in the case of a Free-Standing SAR, only with respect to a whole number of SARs. If an SAR is exercised
for shares of Restricted Shares, a certificate or certificates representing such Restricted Shares shall be issued in accordance
with Section 3.3(c), or such shares shall be transferred to the holder in book entry form with restrictions on the Shares duly
noted, and the holder of such Restricted Shares shall have such rights of a stockholder of the Company as determined pursuant to
Section 3.3(d). Prior to the exercise of an SAR, the holder of such SAR shall have no rights as a stockholder of the Company with
respect to the Shares subject to such SAR.

 

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(c) Method of Exercise. A Tandem
SAR may be exercised (i) by giving written notice to the Company specifying the number of whole SARs which are being exercised,
(ii) by surrendering to the Company any options which are cancelled by reason of the exercise of the Tandem SAR and (iii) by executing
such documents as the Company may reasonably request. A Free-Standing SAR may be exercised (A) by giving written notice to the
Company specifying the whole number of SARs which are being exercised and (B) by executing such documents as the Company may reasonably
request. No Shares shall be issued and no certificate representing Shares shall be delivered until any withholding taxes thereon,
as described in Section 6.5, have been paid (or arrangement made for such payment to the Company’s satisfaction).

 

2.3 Termination of Employment
or Service. All of the terms relating to the exercise, cancellation or other disposition of an option or SAR (i) upon
a termination of employment with or service to the Company of the holder of such option or SAR, as the case may be, whether by
reason of disability, retirement, death or any other reason, or (ii) during a paid or unpaid leave of absence, shall be determined
by the Committee and set forth in the applicable award Agreement.

 

2.4 Repricing of Options and
SARs. The Committee may reduce, in each case, in its sole discretion and without the approval of the stockholders
of the Company, the exercise price of any option awarded under the Plan and the base appreciation amount of any SAR awarded under
the Plan and to cancel, in each case, without stockholder approval, an option or SAR at a time when its exercise price or base
appreciation amount (as applicable) exceeds the Fair Market Value of the underlying Shares, in exchange for another option, SAR,
Restricted Shares, or other award or for cash.

 

III.
SHARE AWARDS

 

3.1 Share Awards. The
Committee may, in its discretion, grant Share Awards to such eligible persons as may be selected by the Committee. The Agreement
relating to a Share Award shall specify whether the Share Award is a Bonus Share Award, Restricted Share Award or Restricted Share
Unit Award.

 

3.2 Terms of Bonus Share Awards. The
number of Shares subject to a Bonus Share Award shall be determined by the Committee. Bonus Share Awards shall not be subject to
any Restriction Periods or Performance Measures. Upon the grant of a Bonus Share Award, subject to the Company’s right to
require payment of any taxes in accordance with Section 6.5, a certificate or certificates evidencing ownership of the requisite
number of Shares shall be delivered to the holder of such award.

 

3.3 Terms of Restricted Share
Awards. Restricted Share Awards shall be subject to the following terms and conditions and shall contain such additional
terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable.

 

(a) Number of Shares and Other
Terms. The number of Shares subject to a Restricted Share Award and the Restriction Period, Performance Period (if any) and
Performance Measures (if any) applicable to a Restricted Share Award shall be determined by the Committee.

 

(b) Vesting and Forfeiture.
The Agreement relating to a Restricted Share Award shall provide, in the manner determined by the Committee, in its discretion,
and subject to the provisions of this Plan, for the vesting of the Shares subject to such award (i) if the holder of such award
remains continuously in the employment or service of the Company during the specified Restriction Period and (ii) if specified
Performance Measures (if any) are satisfied or met during a specified Performance Period, and for the forfeiture of the Shares
subject to such award (x) if the holder of such award does not remain continuously in the employment or service of the Company
during the specified Restriction Period or (y) if specified Performance Measures (if any) are not satisfied or met during a specified
Performance Period.

 

(c) Share Issuance. During
the Restriction Period, the Restricted Shares shall be held by a custodian in book entry form with restrictions on such Shares
duly noted or, alternatively, a certificate or certificates representing a Restricted Share Award shall be registered in the holder’s
name and may bear a legend, in addition to any legend which may be required pursuant to Section 6.6, indicating that the ownership
of the Shares represented by such certificate is subject to the restrictions, terms and conditions of this Plan and the Agreement
relating to the Restricted Share Award. All such certificates shall be deposited with the Company, together with stock powers or
other instruments of assignment (including a power of attorney), each endorsed in blank with a guarantee of signature if deemed
necessary or appropriate, which would permit transfer to the Company of all or a portion of the Shares subject to the Restricted
Share Award in the event such award is forfeited in whole or in part. Upon termination of any applicable Restriction Period (and
the satisfaction or attainment of applicable Performance Measures), subject to the Company’s right to require payment of
any taxes in accordance with Section 6.5, the restrictions shall be removed from the requisite number of any Shares that are held
in book entry form, and all certificates evidencing ownership of the requisite number of Shares shall be delivered to the holder
of such award.

 

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(d) Rights with Respect to Restricted
Share Awards. Unless otherwise set forth in the Agreement relating to a Restricted Share Award, and subject to the terms and
conditions of a Restricted Share Award, the holder of such award shall have all rights as a stockholder of the Company, including,
but not limited to, voting rights, the right to receive dividends and the right to participate in any capital adjustment applicable
to all holders of Shares; provided, however, that (i) a distribution with respect to Shares, other than
a regular cash dividend, and (ii) a regular cash dividend with respect to Shares that are subject to performance-based vesting
conditions, in each case, shall be deposited with the Company and shall be subject to the same restrictions as the Shares with
respect to which such distribution was made.

 

3.4 Terms of Restricted Share
Unit Awards. Restricted Share Unit Awards shall be subject to the following terms and conditions and shall contain
such additional terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable.

 

(a) Number of Shares and Other
Terms. The number of Shares subject to a Restricted Share Unit Award and the Restriction Period, Performance Period (if any)
and Performance Measures (if any) applicable to a Restricted Share Unit Award shall be determined by the Committee.

 

(b) Vesting and Forfeiture.
The Agreement relating to a Restricted Share Unit Award shall provide, in the manner determined by the Committee, in its discretion,
and subject to the provisions of this Plan, for the vesting of such Restricted Share Unit Award (i) if the holder of such award
remains continuously in the employment or service of the Company during the specified Restriction Period and (ii) if specified
Performance Measures (if any) are satisfied or met during a specified Performance Period, and for the forfeiture of the Shares
subject to such award (x) if the holder of such award does not remain continuously in the employment or service of the Company
during the specified Restriction Period or (y) if specified Performance Measures (if any) are not satisfied or met during a specified
Performance Period.

 

(c) Settlement of Vested Restricted
Share Unit Awards. The Agreement relating to a Restricted Share Unit Award shall specify (i) whether such award may be settled
in Shares or cash or a combination thereof and (ii) whether the holder thereof shall be entitled to receive, on a current or deferred
basis, dividend equivalents, and, if determined by the Committee, interest on, or the deemed reinvestment of, any deferred dividend
equivalents, with respect to the number of Shares subject to such award. Any dividend equivalents with respect to Restricted Share
Units that are subject to performance-based vesting conditions shall be subject to the same restrictions as such Restricted Share
Units. Prior to the settlement of a Restricted Share Unit Award, the holder of such award shall have no rights as a stockholder
of the Company with respect to the Shares subject to such award.

 

3.5 Termination of Employment
or Service. All of the terms relating to the satisfaction of Performance Measures and the termination of the Restriction
Period or Performance Period relating to a Share Award, or any forfeiture and cancellation of such award (i) upon a termination
of employment or service with the Company of the holder of such award, whether by reason of disability, retirement, death or any
other reason, or (ii) during a paid or unpaid leave of absence, shall be determined by the Committee and set forth in the applicable
award Agreement.

 

IV.
PERFORMANCE UNIT AWARDS

 

4.1 Performance Unit Awards. The
Committee may, in its discretion, grant Performance Unit Awards to such eligible persons as may be selected by the Committee.

 

    8

     

    

 

4.2 Terms of Performance Unit
Awards. Performance Unit Awards shall be subject to the following terms and conditions and shall contain such additional
terms and conditions, not inconsistent with the terms of this Plan, as the Committee shall deem advisable.

 

(a) Number of Performance Units
and Performance Measures. The number of Performance Units subject to a Performance Unit Award and the Performance Measures
and Performance Period applicable to a Performance Unit Award shall be determined by the Committee.

 

(b) Vesting and Forfeiture.
The Agreement relating to a Performance Unit Award shall provide, in the manner determined by the Committee, in its discretion,
and subject to the provisions of this Plan, for the vesting of such Performance Unit Award if the specified Performance Measures
are satisfied or met during the specified Performance Period and for the forfeiture of such award if the specified Performance
Measures are not satisfied or met during the specified Performance Period.

 

(c) Settlement of Vested Performance
Unit Awards. The Agreement relating to a Performance Unit Award shall specify whether such award may be settled in Shares (including
shares of Restricted Shares) or cash or a combination thereof. If a Performance Unit Award is settled in Restricted Shares, such
Restricted Shares shall be issued to the holder in book entry form or a certificate or certificates representing such Restricted
Shares shall be issued in accordance with Section 3.3(c) and the holder of such Restricted Shares shall have such rights as a stockholder
of the Company as determined pursuant to Section 3.3(d). Any dividends or dividend equivalents with respect to a Performance Unit
Award shall be subject to the same restrictions as such Performance Unit Award. Prior to the settlement of a Performance Unit Award
in Shares, including Restricted Shares, the holder of such award shall have no rights as a stockholder of the Company.

 

4.3 Termination of Employment
or Service. All of the terms relating to the satisfaction of Performance Measures and the termination of the Performance
Period relating to a Performance Unit Award, or any forfeiture and cancellation of such award (i) upon a termination of employment
or service with the Company of the holder of such award, whether by reason of disability, retirement, death or any other reason,
or (ii) during a paid or unpaid leave of absence, shall be determined by the Committee and set forth in the applicable award Agreement.

 

V.
CASH-BASED AWARDS

 

5.1 Cash-Based Awards. The
Committee may, in its discretion, grant Cash-Based Awards to such eligible persons as may be selected by the Committee.

 

5.2 Terms of Cash-Based Awards. Cash-Based
Awards shall be subject to the terms and conditions, not inconsistent with the terms of this Plan, determined by the Committee
and set forth in the applicable award Agreement.

 

VI.
GENERAL

 

6.1 Effective Date and Term
of Plan. This Plan will become effective upon its adoption by the Board, provided that it must be approved by a majority
of the outstanding securities entitled to vote within twelve (12) months before or after the date of such adoption. Unless terminated
earlier by the Board, this Plan shall terminate on the tenth anniversary of the date it is adopted by the Board or approved by
the Company’s stockholders, whichever is earlier. Termination of this Plan shall not affect the terms or conditions of any
award granted prior to termination. Awards hereunder may be made at any time prior to the termination of this Plan, provided that
no award may be made later than ten (10) years after the effective date of this Plan.

 

6.2 Amendments. The
Board may amend this Plan as it shall deem advisable, subject to any requirement of stockholder approval required by applicable
law, rule or regulation, including any rule of the Nasdaq Capital Market or any other stock exchange on which Shares are then traded; provided, however,
that no amendment may materially impair the rights of a holder of an outstanding award without the consent of such holder.

 

6.3 Agreement. Each
award under this Plan shall be evidenced by an Agreement setting forth the terms and conditions applicable to such award. No award
shall be valid until an Agreement is executed by the Company and, to the extent required by the Company, either executed by the
recipient or accepted by the recipient by electronic means approved by the Company within the time period specified by the Company.
Upon such execution or execution and electronic acceptance, and delivery of the Agreement to the Company, such award shall be effective
as of the effective date set forth in the Agreement.

 

    9

     

    

 

6.4 Non-Transferability. No
award shall be transferable other than by will, the laws of descent and distribution or pursuant to beneficiary designation procedures
approved by the Company or, to the extent expressly permitted in the Agreement relating to such award, to the holder’s family
members, a trust or entity established by the holder for estate planning purposes or a charitable organization designated by the
holder, in each case, without consideration. Except to the extent permitted by the foregoing sentence or the Agreement relating
to an award, each award may be exercised or settled during the holder’s lifetime only by the holder or the holder’s
legal representative or similar person. Except as permitted by the second preceding sentence, no award may be sold, transferred,
assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to
execution, attachment or similar process. Upon any attempt to so sell, transfer, assign, pledge, hypothecate, encumber or otherwise
dispose of any award, such award and all rights thereunder shall immediately become null and void.

 

6.5 Tax Withholding. The
Company shall have the right to require, prior to the issuance or delivery of any Shares or the payment of any cash pursuant to
an award made hereunder, payment by the holder of such award of any federal, state, local or other taxes which may be required
to be withheld or paid in connection with such award. An Agreement may provide that (i) the Company shall withhold whole Shares
which would otherwise be delivered to a holder, having an aggregate Fair Market Value determined as of the date the obligation
to withhold or pay taxes arises in connection with an award (the “Tax Date”), or withhold an amount of cash
which would otherwise be payable to a holder, in the amount necessary to satisfy any such obligation or (ii) the holder may satisfy
any such obligation by any of the following means: (A) a cash payment to the Company, (B) delivery (either actual delivery or by
attestation procedures established by the Company) to the Company of previously owned whole Shares having an aggregate Fair Market
Value, determined as of the Tax Date, equal to the amount necessary to satisfy any such obligation, (C) authorizing the Company
to withhold whole Shares which would otherwise be delivered having an aggregate Fair Market Value, determined as of the Tax Date,
or withhold an amount of cash which would otherwise be payable to a holder, equal to the amount necessary to satisfy any such obligation,
(D) in the case of the exercise of an option and except as may be prohibited by applicable law, a cash payment by a broker-dealer
acceptable to the Company to whom the optionee has submitted an irrevocable notice of exercise or (E) any combination of (A), (B)
and (C), in each case to the extent set forth in the Agreement relating to the award. Shares to be delivered or withheld may not
have an aggregate Fair Market Value in excess of the amount determined by the Committee not to have an adverse accounting impact
on the Company. Any fraction of a Share which would be required to satisfy such an obligation shall be disregarded and the remaining
amount due shall be paid in cash by the holder.

 

6.6 Restrictions on Shares. Each
award made hereunder shall be subject to the requirement that if at any time the Company determines that the listing, registration
or qualification of the Shares subject to such award upon any securities exchange or under any law, or the consent or approval
of any governmental body, or the taking of any other action is necessary or desirable as a condition of, or in connection with,
the delivery of shares thereunder, such shares shall not be delivered unless such listing, registration, qualification, consent,
approval or other action shall have been effected or obtained, free of any conditions not acceptable to the Company. The Company
may require that certificates evidencing Shares delivered pursuant to any award made hereunder bear a legend indicating that the
sale, transfer or other disposition thereof by the holder is prohibited except in compliance with the Securities Act of 1933, as
amended, and the rules and regulations thereunder.

 

6.7 Adjustment. In
the event of any equity restructuring (within the meaning of Financial Accounting Standards Board Accounting Standards Codification
Topic 718, Compensation—Stock Compensation) that causes the per Share value of Shares to change, such as a stock dividend,
stock split, spinoff, rights offering or recapitalization through an extraordinary dividend, the number and class of securities
available under this Plan, the terms of each outstanding option and SAR (including the number and class of securities subject to
each outstanding option or SAR and the purchase price or base price per share), the terms of each outstanding Restricted Stock
Award and Restricted Stock Unit Award (including the number and class of securities subject thereto), and the terms of each outstanding
Performance Unit Award shall be appropriately adjusted by the Committee, such adjustments to be made in the case of outstanding
options and SARs without an increase in the aggregate purchase price or base price and in accordance with Section 409A of the Code.
In the event of any other change in corporate capitalization, including a merger, consolidation, reorganization, or partial or
complete liquidation of the Company, such equitable adjustments described in the foregoing sentence may be made as determined to
be appropriate and equitable by the Committee to prevent dilution or enlargement of rights of participants. In either case, the
decision of the Committee regarding any such adjustment shall be final, binding and conclusive.

 

    10

     

    

 

6.8 Change in Control. 

 

(a) Subject to the terms of the applicable
award Agreement, in the event of a Change in Control, the Board (as constituted prior to such Change in Control) may, in its discretion:

  

(i)
provide that (A) some or all outstanding options and SARs shall become exercisable in full or in part, either immediately or upon
a subsequent termination of employment or service, (B) the Restriction Period applicable to some or all outstanding Restricted
Share Awards and Restricted Share Unit Awards shall lapse in full or in part, either immediately or upon a subsequent termination
of employment or service, (C) the Performance Period applicable to some or all outstanding awards shall lapse in full or in part,
and (D) the Performance Measures applicable to some or all outstanding awards shall be deemed to be satisfied at the target or
any other level;

 

(ii)
provide that some or all outstanding awards shall terminate without consideration as of the date of such Change in Control;

 

(iii)
require that shares of the corporation or other entity resulting from such Change in Control, or a parent thereof, be substituted
for some or all of the Shares subject to an outstanding award, with an appropriate and equitable adjustment to such award as shall
be determined by the Board in accordance with Section 6.7; and/or

 

(iv)
require outstanding awards, in whole or in part, to be surrendered to the Company by the holder, and to be immediately cancelled
by the Company, and to provide for the holder to receive (A) a cash payment in an amount equal to (i) in the case of an option
or an SAR, the number of Shares then subject to the portion of such option or SAR surrendered multiplied by the excess, if any,
of the Fair Market Value of a Share as of the date of the Change in Control, over the purchase price or base price per Share subject
to such option or SAR, (ii) in the case of a Share Award, the number of Shares then subject to the portion of such award surrendered
multiplied by the Fair Market Value of a Share as of the date of the Change in Control, and (iii) in the case of a Performance
Unit Award, the value of the Performance Units then subject to the portion of such award surrendered; (B) shares of the corporation
or other entity resulting from such Change in Control, or a parent thereof, having a fair market value not less than the amount
determined under clause (A) above; or (C) a combination of the payment of cash pursuant to clause (A) above and the issuance of
shares pursuant to clause (B) above.

 

(b) A “Change in Control”
of the Company shall be deemed to have occurred upon the occurrence of any of the following events:

 

(i) The acquisition, other than from the
Company, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either the then outstanding Shares
of the Company or the combined voting power of the then outstanding voting securities of the Company entitled to vote generally
in the election of directors, but excluding, for this purpose, any such acquisition by the Company or any of its Subsidiaries,
or any employee benefit plan (or related trust) of the Company or its Subsidiaries, or any corporation with respect to which, following
such acquisition, more than 50% of, respectively, the then outstanding Shares of such corporation and the combined voting power
of the then outstanding voting securities of such corporation entitled to vote generally in the election of all or substantially
all directors is then beneficially owned, directly or indirectly, by the individuals and entities who were the beneficial owners,
respectively, of Shares and voting securities of the Company immediately prior to such acquisition in substantially the same proportion
as their ownership, immediately prior to such acquisition, of the then outstanding Shares of the Company or the combined voting
power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors, as the
case may be;

 

(ii) The consummation of a reorganization,
merger or consolidation of the Company, in each case, with respect to which all or substantially all of the individuals and entities
who were the respective beneficial owners of Shares and voting securities of the Company immediately prior to such reorganization,
merger or consolidation do not, following such reorganization, merger or consolidation, beneficially own, directly or indirectly,
more than 50% of, respectively, the then outstanding Shares and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such reorganization,
merger or consolidation;

 

    11

     

    

 

(iii) During any twenty-four (24) month
period, individuals who, as of the beginning of such period, constitute the Board (the “Incumbent Directors”) cease
for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the beginning
of such period whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors
then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named
as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; provided, however, that
no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest
with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person
other than the Board shall be deemed to be an Incumbent Director; or

 

(iv) a complete liquidation or dissolution
of the Company or of the sale or other disposition of all or substantially all of the assets of the Company.

 

In no event shall a Change in Control include
the Initial Public Offering or any bona fide primary or secondary public offering following the occurrence of the Initial Public
Offering.

 

6.9 Deferrals. The
Committee may determine that the delivery of Shares or the payment of cash, or a combination thereof, upon the exercise or settlement
of all or a portion of any award (other than awards of Incentive Stock Options, Nonqualified Options and SARs) made hereunder shall
be deferred, or the Committee may, in its sole discretion, approve deferral elections made by holders of awards. Deferrals shall
be for such periods and upon such terms as the Committee may determine in its sole discretion, subject to the requirements of Section
409A of the Code.

  

6.10 No Right of Participation,
Employment or Service. Unless otherwise set forth in an employment agreement, no person shall have any right to participate
in this Plan. Neither this Plan nor any award made hereunder shall confer upon any person any right to continued employment by
or service with the Company, any Subsidiary or any affiliate of the Company or affect in any manner the right of the Company, any
Subsidiary or any affiliate of the Company to terminate the employment or service of any person at any time without liability hereunder.

 

6.11 Rights as Stockholder. No
person shall have any right as a stockholder of the Company with respect to any Shares or other equity security of the Company
which is subject to an award hereunder unless and until such person becomes a stockholder of record with respect to such Shares
or equity security.

 

6.12 Designation of Beneficiary. A
holder of an award may file with the Committee a written designation of one or more persons as such holder’s beneficiary
or beneficiaries (both primary and contingent) in the event of the holder’s death or incapacity. To the extent an outstanding
option or SAR granted hereunder is exercisable, such beneficiary or beneficiaries shall be entitled to exercise such option or
SAR pursuant to procedures prescribed by the Committee.

 

Each beneficiary designation shall become
effective only when filed in writing with the Committee during the holder’s lifetime on a form prescribed by the Committee.
The spouse of a married holder domiciled in a community property jurisdiction shall join in any designation of a beneficiary other
than such spouse. The filing with the Committee of a new beneficiary designation shall cancel all previously filed beneficiary
designations.

 

If a holder fails to designate a beneficiary,
or if all designated beneficiaries of a holder predecease the holder, then each outstanding option and SAR hereunder held by such
holder, to the extent exercisable, may be exercised by such holder’s executor, administrator, legal representative or similar
person.

 

6.13 Compliance With Section
409A of the Code. To the extent applicable, awards will be designed and operated in such a manner that they are either
exempt from the application of, or comply with, the requirements of Section 409A of the Code. The Plan and each award Agreement
are intended to meet the requirements of Section 409A of the Code and will be construed and interpreted in accordance with such
intent, except as otherwise determined in the Committee’s sole discretion. Notwithstanding the foregoing, the Company makes
no representation with respect to the tax compliance of the Plan or any Award Agreement, including compliance with Section 409A
of the Code.

 

6.14 Governing Law. This
Plan, each award hereunder and the related Agreement, and all determinations made and actions taken pursuant thereto, to the extent
not otherwise governed by the Code or the laws of the United States, shall be governed by the laws of the State of California and
construed in accordance therewith without giving effect to principles of conflicts of laws.

 

6.15 Non-U.S. Service Providers. Without
amending this Plan, the Committee may grant awards to eligible persons who are foreign nationals on such terms and conditions different
from those specified in this Plan as may in the judgment of the Committee be necessary or desirable to foster and promote achievement
of the purposes of this Plan and, in furtherance of such purposes the Committee may make such modifications, amendments, procedures,
subplans and the like as may be necessary or advisable to comply with provisions of laws in other countries or jurisdictions in
which the Company or its Subsidiaries operates or has employees or service providers.

 

6.16 Awards Subject to Clawback. The
awards granted under this Plan and any cash payment or Shares delivered pursuant to an award are subject to forfeiture, recovery
by the Company or other action pursuant to the applicable Agreement or any clawback or recoupment policy which the Company may
adopt from time to time, including without limitation any such policy which the Company may be required to adopt under the Dodd-Frank
Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

 

    12

     

    

 

HYRECAR INC

 

2018 EQUITY INCENTIVE PLAN

 

STOCK OPTION AGREEMENT

 

This Stock Option Agreement (this “Agreement”)
is made and entered into as of the date set forth on the signature page hereto by and between Hyrecar Inc, a Delaware corporation
(the “Company”), and the undersigned participant (“Participant”). Unless otherwise
defined herein, capitalized terms used herein shall have the same defined meanings as set forth in the Hyrecar Inc. 2018 Equity
Incentive Plan attached hereto as Exhibit A (the “Plan”).

 

I.
NOTICE OF STOCK OPTION GRANT

 

Participant has been granted an option
to purchase Common Stock, subject to the terms and conditions of the Plan and this Agreement, as follows:

 

Participant:

Address:

 

	Grant Number:	 	 	 	 	 	 
	Grant Date:	 	 	 	 	 	 
	Vesting Commencement Date:	 	 	 	 	 	 
	Exercise Price per Share:	 	 	 	 	 	 
	Number of Shares Subject to Option:	 	 	 	 	 	 
	Total Exercise Price:	 	 	 	 	 	 
	Type of Option:	 	ISO	 	NSO	 	Term/Expiration
	Date:	 	 	 	 	 	, or earlier as provided
	 	 	in the Plan or this Agreement	 	 

 

Vesting Schedule; Accelerated Vesting:

 

This Option shall become vested and exercisable,
in whole or in part, according to the following vesting schedule:   

 

Termination Period:

 

This Option shall be exercisable for three
months after Participant ceases to be a service provider, unless such termination is due to Participant’s death or disability,
in which case this Option shall be exercisable for 12 months after Participant ceases to be a service provider. Notwithstanding
the foregoing sentence, in no event may this Option be exercised after the Term/Expiration Date as provided above, and this Option
may be subject to earlier termination as provided in the Plan.

 

II.
AGREEMENT

 

1. Grant of Option.
In consideration of the services to be rendered by Participant to the Company or any Affiliate and subject to the terms and conditions
of the Plan and this Agreement, the Administrator hereby grants to Participant an option (this “Option”)
to purchase the number of Shares set forth in the Notice of Stock Option Grant in Part I of this Agreement, at the Exercise Price
per Share set forth in the Notice of Stock Option Grant in Part I of this Agreement (the “Exercise Price”).

 

If designated as an ISO in the Notice of
Stock Option Grant in Part I of this Agreement, this Option is intended to qualify as an Incentive Stock Option; provided, however,
that, to the extent that the aggregate Fair Market Value (determined at the time of grant) of the Shares with respect to which
Incentive Stock Options are exercisable for the first time by Participant during any calendar year (under all plans of the Company
and any Affiliate) exceeds $100,000, such Options or portions thereof that exceed such limit (according to the order in which they
were granted) shall be treated as Nonstatutory Stock Options. Further, if for any reason this Option (or portion thereof) shall
not qualify as an Incentive Stock Option, then, to the extent of such nonqualification, this Option (or portion thereof) shall
be regarded as a Nonstatutory Stock Option. In no event shall the Administrator, the Company or any Affiliate, or any of their
respective employees or directors, have any liability to Participant (or any other Person) due to the failure of this Option (or
portion thereof) to qualify for any reason as an Incentive Stock Option.

 

    13

     

    

 

2. Exercise of Option.

 

(a) Right to Exercise.
This Option shall be exercisable during its term in accordance with (i) the Vesting Schedule set out in the Notice of Stock Option
Grant in Part I of this Agreement and (ii) the applicable provisions of the Plan and this Agreement. This Option may not be exercised
for a fraction of a Share.

 

(b) Method of Exercise.
This Option shall be exercisable by delivery of an option exercise notice in the form attached hereto as Exhibit B (the
“Option Exercise Notice”) or in a manner and pursuant to such procedures as the Administrator may determine,
which shall state the election to exercise this Option, the whole number of Shares with respect to which this Option is being exercised,
and such other representations and agreements as may be required by the Company. If someone other than Participant exercises this
Option, as permitted by the Plan, then such Person must submit documentation reasonably acceptable to the Company verifying that
such Person has the legal right to exercise this Option. The Option Exercise Notice shall be accompanied by payment of the aggregate
Exercise Price as to all exercised Shares, together with any applicable tax withholding. This Option shall be deemed to be exercised
upon receipt by the Company of such fully executed Option Exercise Notice accompanied by the aggregate Exercise Price, together
with any applicable tax withholding.

 

3. Participant’s Representations.
If the Common Stock has not been registered under the Securities Act at the time this Option is exercised, Participant shall concurrently
with the exercise of all or any portion of this Option, if required by the Company, deliver to the Company Participant’s
Investment Representation Statement in the form attached hereto as Exhibit C.

 

4. Lock-Up Period. Participant
will not, during the period commencing on the date of the final prospectus relating to the registration by the Company for its
own behalf of shares of its Common Stock or any other equity securities under the Securities Act on a Form S-1 (excluding a registration
relating solely to employee benefit plans on Form S-1) or Form S-3 and ending on the date specified by the Company and the underwriter(s)
(such period not to exceed 180 days in the case of the Company’s IPO or 90 days in the case of any registration other than
the Company’s IPO, or such other period as may be requested by the Company or the underwriters to accommodate regulatory
restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions, including
the restrictions contained in NASD Rule 2711(f)(4) or NYSE Rule 472(f)(4) (or any successor provisions or amendments thereto),
as applicable), (A) sell, dispose of, make any short sale of, offer, hypothecate, pledge, contract to sell, grant any option or
contract to purchase, purchase any option or contract to sell, grant any right or warrant to purchase, lend or otherwise transfer
or encumber, directly or indirectly, any Shares or other securities convertible into or exercisable or exchangeable (directly or
indirectly) for shares of Common Stock (whether such Shares or other securities are then held by Participant or thereafter acquired)
(such Shares and other securities, the “Lock-Up Shares”) or (B) enter into any swap, hedging or other
arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any Lock-Up Shares.
The foregoing provisions of this Section II.4 shall not prevent the exercise of any repurchase option in favor of the Company or
apply to the sale of any Lock-Up Shares to an underwriter pursuant to an underwriting agreement or to the Transfer (as defined
in Section II.7) of any Lock-Up Shares by Participant to any trust for the direct or indirect benefit of Participant or an Immediate
Family Member (as defined in the Option Exercise Notice) of Participant (provided that the trustee of the trust agrees,
in writing, to be bound by the restrictions set forth herein and provided further that any such Transfer (as defined
in Section II.7) does not involve a disposition for value). Participant shall execute such documents as may be reasonably requested
by the Company or the underwriters in connection with any registered offering described in this Section II.4 and that are consistent
with this Section II.4 or necessary to give further effect thereto.

 

5. Method of Payment.
To the extent permitted by Applicable Laws, payment of the aggregate Exercise Price as to all exercised Shares shall be by any
of the following methods, or a combination thereof, at Participant’s election:

 

(a) cash;

 

(b) check;

 

(c) surrender of other Shares which (i)
shall be valued at their Fair Market Value on the date of exercise and (ii) must be owned by Participant free and clear of any
liens, claims, encumbrances or security interests, if accepting such Shares, in the Administrator’s sole discretion, will
not result in any adverse accounting consequences to the Company; or

 

    14

     

    

 

(d) consideration received by the Company
under a cashless exercise program (whether through a broker or otherwise) implemented by the Company in connection with the Plan.

 

Any fraction of a Share which would be
required to pay such aggregate Exercise Price shall be disregarded, and the remaining amount due shall be paid in cash by Participant.

 

6. Restrictions on Exercise.
This Option may not be exercised unless the issuance of Shares upon such exercise, or the method of payment of consideration for
such Shares, complies with Applicable Laws. Assuming such compliance, Shares shall be considered transferred to Participant, for
income tax purposes, on the date on which this Option is exercised with respect to such Shares.

 

7. Non-Transferability of Option.
This Option (or, prior to exercise, the Shares subject to this Option) may not be sold, pledged, assigned, hypothecated or otherwise
transferred in any manner, including by entering into any short position, any “put equivalent position”
or any “call equivalent position” (as defined in Rule 16a-1(h) and Rule 16a-1(b), respectively, of the
Exchange Act), whether by operation of law or otherwise (“Transfer”), other than by will or by the laws
of descent and distribution, and may be exercised, during the lifetime of Participant, only by Participant. The terms of the Plan
and this Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of Participant.

 

8. Term of Option. This
Option may be exercised only (i) within the term set out in the Notice of Stock Option Grant in Part I of this Agreement and (ii)
in accordance with the terms and conditions of the Plan and this Agreement.

 

9. Tax Obligations.

 

(a) Tax Withholding.
Participant agrees to make appropriate arrangements satisfactory to the Company to pay or provide for the satisfaction of all federal,
state, local, foreign and other taxes (including Participant’s FICA obligation) required to be withheld with respect to the
exercise of this Option. Participant acknowledges and agrees that the Company may refuse to honor the exercise of this Option,
and refuse to deliver the Shares, if such withholding amounts are not delivered by Participant at the time of exercise.

 

(b) Notice of Disqualifying
Disposition of ISO Shares. If this Option is an Incentive Stock Option, and if Participant makes a “disposition”
(as defined in Section 424 of the Code) of all or any portion of the Shares acquired upon exercise of this Option within two years
from the Grant Date set out in the Notice of Stock Option Grant in Part I of this Agreement or within one year after issuance of
the Shares acquired upon exercise of this Option, then Participant shall immediately notify the Company in writing as to the occurrence
of, and the price realized upon, such disposition. Participant agrees that Participant may be subject to income tax withholding
by the Company on the compensation income recognized by Participant.

 

(c) Section 409A of the Code.
Under Section 409A of the Code, an Option that was granted with a per Share exercise price that is determined by the U.S. Internal
Revenue Service (the “IRS”) to be less than the Fair Market Value of a Share on the date of grant (a
“discount option”) may be considered “deferred compensation.” An Option that
is a “discount option” may result in (i) income recognition by Participant prior to the exercise of this
Option, (ii) an additional 20% federal income tax, (iii) potential penalty and interest charges, and (iv) additional state income,
penalty and interest tax to Participant (collectively, “409A Penalties”). Participant acknowledges that
the Company cannot guarantee, and has not guaranteed, that the IRS will agree, in a later examination, that the per Share exercise
price of this Option equals or exceeds the Fair Market Value of a Share on the date of grant. Participant agrees that, if the IRS
determines that this Option is a “discount option,” Participant shall be solely responsible for Participant’s
costs related to such a determination, including any 409A Penalties.

 

    15

     

    

 

10. General Provisions.

 

(a) Power and Authority.
Participant hereby represents to the Company that

  

(i) Participant has full power and authority
and legal capacity to enter into, execute and deliver this Agreement and to perform fully Participant’s obligations hereunder,
(ii) the execution, delivery and performance of this Agreement by Participant does not conflict with, constitute a breach of or
violate any arrangement, understanding or agreement to which Participant is a party or by which Participant is bound, and (iii)
this Agreement has been duly and validly executed and delivered by Participant and constitutes the legal, valid and binding obligation
of Participant, enforceable against Participant in accordance with its terms.

 

(b) Survival. The representations,
warranties, covenants and agreements made in or pursuant to this Agreement shall survive the execution and delivery hereof and
shall not be affected by any investigation made by or on behalf of any party hereto.

 

(c) Governing Law. This
Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to conflict-of-law
principles.

 

(d) Entire Agreement.
This Agreement, together with the attached Exhibits, sets forth the entire agreement and understanding between the parties hereto
relating to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, discussions, representations
and warranties, both written and oral, between the parties hereto, including any representations made during any interviews or
relocation negotiations, with respect to such subject matter. In the event of a conflict between the terms and conditions of the
Plan and this Agreement, the terms and conditions of the Plan shall prevail.

 

(e) Notices. All notices
or other communications required or permitted hereunder shall be in writing and shall be deemed given or delivered (i) when delivered
personally, (ii) one business day after being deposited with an overnight courier service (costs prepaid), (iii) when sent by facsimile
or e-mail if sent during normal business hours and on the next business day if sent after normal business hours, in each case with
confirmation of transmission by the transmitting equipment, or (iv) when received or rejected by the addressee, if sent by certified
mail, return receipt requested, postage prepaid, in each case to the addresses, facsimile numbers or e-mail addresses and marked
to the attention of the persons designated (by name or title) on the signature page hereto, as applicable, or to such other address,
facsimile number, e-mail address or person as such party may designate by a notice delivered to the other party hereto.

 

(f) Successors and Assigns;
Transfers. The Company may assign this Agreement, and its rights and obligations hereunder, in whole or in
part, to any successor or assign (whether direct or indirect, by purchase, merger, consolidation, sale of assets or stock or otherwise).
Except as set forth herein, (x) neither this Agreement nor any rights, duties and obligations hereunder shall be assigned, transferred,
delegated or sublicensed by Participant without the Company’s prior written consent and (y) any attempt by Participant to
assign, transfer, delegate or sublicense this Agreement or any rights, duties or obligations hereunder, without the Company’s
prior written consent, shall be void. Subject to any restrictions on transfer set forth herein, this Agreement shall be binding
upon, and enforceable against, (i) the Company and its successors and assigns and (ii) Participant and his or her heirs, executors,
successors, assigns, administrators and other legal representatives. Except as set forth herein, any transfer in violation of any
restriction upon transfer contained in any provision hereof shall be void, unless such restriction is waived in accordance with
the terms hereof.

 

(g) Modification and Waiver.
This Agreement may not be amended, modified or supplemented except by a written instrument signed by an authorized representative
of each party hereto. Any term or provision hereof may be waived, or the time for its performance may be extended, by the party
or parties entitled to the benefit thereof. Any such waiver or extension shall be validly and sufficiently authorized for the purposes
hereof if, as to any party, it is authorized in writing by an authorized representative of such party. The failure or delay of
any party to enforce at any time any provision hereof shall not be construed to be a waiver of such provision, nor in any way to
affect the validity of this Agreement or any part hereof or the right of any party thereafter to enforce each and every such provision.
No waiver of any breach hereof shall be held to constitute a waiver of any other or subsequent breach.

 

(h) Further Assurances.
Participant shall execute and deliver such additional documents, instruments, conveyances and assurances and take such further
actions as may reasonably be necessary or desirable in the view of the Company to carry out the purposes or intent hereof, including
the applicable Exhibits attached hereto.

 

(i) Severability. Should
any provision contained herein be held as invalid, illegal or unenforceable, such holding shall not affect the validity of the
remainder of this Agreement, the balance of which shall continue to be binding upon the parties with any such modification to become
a part hereof and treated as though originally set forth herein.

 

    16

     

    

 

(j) Interpretation.
For purposes of this Agreement, (i) the words “include,” “includes” and “including” shall be
deemed to be followed by the words “without limitation,” (ii) the word “or” is not exclusive, (iii) the
words “herein,” “hereof,” “hereby,” “hereto,” “hereunder” and words
of similar import refer to this Agreement as a whole, and (iv) with respect to the determination of any period of time, “from”
means “from and including” and “to” means “to but excluding.” Unless the context otherwise
requires, references herein: (A) to a Section or an Exhibit mean a Section or an Exhibit of, or attached to, this Agreement; (B)
to agreements, instruments and other documents shall be deemed to include all subsequent amendments, supplements and other modifications
thereto; (C) to statutes or regulations are to be construed as including all statutory and regulatory provisions consolidating,
amending or replacing the statute or regulation referred to; (D) to any Person includes such Person’s successors and assigns,
but, if applicable, only if such successors and assigns are not prohibited by this Agreement; and (E) to any gender includes each
other gender. The Exhibits attached hereto shall be construed with, and as an integral part of, this Agreement to the same extent
as if they were set forth verbatim herein. The titles, captions and headings herein are for convenience of reference only and shall
not affect the meaning or interpretation hereof. This Agreement shall be construed without regard to any presumption or rule requiring
construction or interpretation against the party drafting an instrument or causing any instrument to be drafted.

 

(k) Counterparts. This
Agreement may be executed in counterparts, each of which shall be considered an original, but all of which, when taken together,
shall be considered one and the same agreement, and shall become binding when one or more counterparts have been signed by each
party hereto and delivered to the other party hereto. Delivery of an executed counterpart of a signature page to this Agreement
shall be as effective as delivery of a manually executed counterpart of this Agreement. The exchange of copies of this Agreement
and of signature pages hereto by facsimile transmission or e-mail shall constitute effective execution and delivery of this Agreement
and may be used in lieu of the original Agreement for all purposes. Signatures transmitted by facsimile or e-mail shall be deemed
to be original signatures for all purposes.

 

(l) Service Relationship At
Will. Participant acknowledges and agrees that the vesting of this Option pursuant hereto is earned only by
his or her continuing service as a service provider at will (and not through the act of being hired, being granted this Option
or acquiring Shares hereunder). Participant further acknowledges and agrees that this Agreement, the transactions contemplated
hereby and the vesting schedule set forth herein do not constitute an express or implied promise of continued engagement as a service
provider for the vesting period, or for any period at all, and shall not interfere with the right of either the Company or Participant
to terminate Participant’s relationship as a service provider at any time, with or without cause or notice.

 

(m) Third Party Beneficiary
Rights. No provisions hereof are intended, nor shall be interpreted, to provide or create any third party beneficiary rights
or any other rights of any kind in any client, customer, affiliate, stockholder, partner or employee of any party hereto or any
other Person, unless specifically provided otherwise herein; provided, however, that Section II.4 is intended
to benefit the underwriters for any registered offering described in Section II.4, and such underwriters shall have the right,
power and authority to enforce the provisions of Section II.4 as though they were parties hereto.

 

(n) Adjustments. In
the event of any dividend or other distribution (whether in the form of cash, Shares, other securities or other property), recapitalization,
reincorporation, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, reclassification,
repurchase or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company
affecting the Shares, the Administrator will appropriately adjust the number, class and price of Shares subject to this Option,
with such adjustment to be made in accordance with Section 409A of the Code.

 

(o) No Impact on Other Benefits. The
value of this Option is not part of Participant’s normal or expected compensation for purposes of calculating any severance,
retirement, welfare, insurance or similar employee benefit.

 

(p) Acceptance. Participant
acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof and
hereby accepts this Option subject to all of the terms and provisions of the Plan and this Agreement (including all Exhibits attached
hereto). Participant has reviewed, and fully understands all provisions of, the Plan and this Agreement in their entirety (including
all Exhibits attached hereto) and has had an opportunity to obtain the advice of his or her own legal counsel, tax advisors and
other advisors prior to executing this Agreement. Any questions or disputes regarding the interpretation of the Plan or this Agreement
(including all Exhibits attached hereto), or arising hereunder or thereunder, shall be submitted by the Company or Participant
to the Administrator, and Participant hereby agrees to accept as final, binding and conclusive all decisions, determinations and
interpretations of the Administrator upon any such questions or disputes.

 

    17

     

    

 

(q) Equitable Relief. In
the event of a breach or threatened breach by Participant of any provision hereof, Participant hereby consents and agrees that
the Company may seek, in addition to other available remedies, injunctive or other equitable relief from any court of competent
jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and
without the necessity of posting any bond or other security. Participant understands that any breach or threatened breach of this
Agreement will cause irreparable injury and that money damages will not provide an adequate remedy therefor, and Participant hereby
consents to the issuance of an injunction or other equitable relief. The aforementioned equitable relief shall be in addition to,
and not in lieu of, legal remedies, monetary damages or other available forms of relief.

 

(signature page follows)

 

    18

     

    

 

IN WITNESS WHEREOF,
the undersigned have executed this Stock Option Agreement as of ________, 20__ .

 

	COMPANY	 
	 	 
	Hyrecar Inc	 

 

	By: 	 	 

	Name:
	Title: Chief Executive Officer
	Notice Address: 355 South Grand Avenue, Suite 1650
	Los Angeles, California 90071	 

 

Facsimile:

E-mail:

Attention:

 

PARTICIPANT

 

Notice Address:

 

Facsimile:

E-mail:

Attention:

 

Exhibits:

 

A – 2018 Equity Incentive Plan

B – Option Exercise Notice

 

[Signature Page to Stock Option Agreement]

 

    19

     

    

 

EXHIBIT A

 

HYRECAR INC

 

2018 EQUITY INCENTIVE PLAN

 

    A-1

     

    

 

EXHIBIT B

 

OPTION EXERCISE NOTICE

 

Hyrecar Inc.

355 South Grand Avenue, Suite 1650

Los Angeles, California 90071

Attention: Secretary

 

1. Exercise of Option.
Effective as of today,  , the undersigned (“Participant”) hereby elects to exercise
Participant’s option (the “Option”) to purchase shares (the “Exercised Shares”)
of the common stock of Hyrecar Inc, a Delaware corporation (the “Company”), under and pursuant to the
Company’s 2018 Equity Incentive Plan (the “Plan”) and that certain Stock Option Agreement made
and entered into as of ________, 20__ by and between the Company and Participant (the “Option Agreement”).

 

2. Delivery of Payment.
Participant herewith delivers to the Company the full exercise price of the Exercised Shares, as set forth in the Option Agreement,
and any and all withholding taxes due in connection with the exercise of the Option.

 

3. Representations of Participant.
Participant acknowledges that Participant has received, read and understood the Plan and the Option Agreement and agrees to abide,
and be bound, by their terms and conditions.

 

4. Rights as Stockholder.
Until the issuance of the Exercised Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or other distributions or any other rights as a stockholder
shall exist with respect to the Exercised Shares, notwithstanding the exercise of the Option. The Exercised Shares shall be issued
to Participant as soon as practicable after the Option is exercised in accordance with the Option Agreement. No adjustment shall
be made for a dividend or distribution or other right for which the record date is prior to the date of issuance, except as provided
in Section 13 of the Plan.

 

5. Tax Consultation.
Participant understands that Participant may suffer adverse tax consequences as a result of Participant’s purchase or disposition
of the Exercised Shares. Participant represents that Participant has consulted with any tax consultants Participant deems advisable
in connection with the purchase or disposition of the Exercised Shares and that Participant is not relying on the Company for any
tax advice.

 

6. Restrictive Legends and Stop-Transfer
Orders.

 

(a) Legends. Participant
understands and agrees that the Company shall cause the legends set forth below, or substantially equivalent legends, to be placed
upon any certificate(s) evidencing ownership of the Exercised Shares, together with any other legends that may be required by the
Company or by applicable federal or state securities laws:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF AND HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS. THEY MAY NOT
BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES
LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION
OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE, TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT
AND ANY APPLICABLE STATE SECURITIES LAWS.

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER, A RIGHT OF FIRST REFUSAL AND A LOCK-UP PERIOD IN THE EVENT OF A PUBLIC OFFERING
AS SET FORTH IN AGREEMENTS BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SECURITIES, COPIES OF WHICH MAY BE OBTAINED AT THE
PRINCIPAL OFFICE OF THE ISSUER. SUCH RESTRICTIONS ON TRANSFER, RIGHT OF FIRST REFUSAL AND LOCK-UP PERIOD ARE BINDING ON TRANSFEREES
OF THESE SECURITIES.

 

    B-1

     

    

 

(b) Stop-Transfer Notices.
In order to ensure compliance with the restrictions referred to herein and in the Option Agreement, including the provisions of
Section II.4 of the Option Agreement, the Company may issue appropriate stop-transfer instructions to its transfer agent, if any,
and, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

 

(c) Refusal to Transfer.
The Company shall not be required to transfer on its books any Exercised Shares that have been Transferred in violation of any
provision hereof or to treat as owner of such Exercised Shares, or otherwise to accord voting or dividend rights to, any purchaser
or other transferee to whom such Exercised Shares shall have been so Transferred. Any attempt to Transfer Exercised Shares in violation
hereof shall be null and void and shall be disregarded by the Company.

 

7. Consent to Notices by Electronic
Transmission. Upon becoming a stockholder of the Company and without limiting the manner by which notice otherwise may
be given effectively to Participant, Participant hereby consents in accordance with Section 232 of the Delaware General Corporation
Law to stockholder notices given by the Company to Participant by any of the following forms of electronic transmission: (i) by
facsimile telecommunications to the facsimile number set forth on the signature page to the Option Agreement or to such other facsimile
number as Participant may designate by a written notice delivered to the Company; (ii) by electronic mail to the e-mail address
set forth on the signature page to the Option Agreement or to such other e-mail address as Participant may designate by a written
notice delivered to the Company; (iii) by a posting on an electronic network together with separate notice to Participant of such
specific posting; and (iv) by any other form of electronic transmission when directed to Participant.

 

8. Capitalized Terms.
Unless otherwise defined herein, capitalized terms used herein shall have the same defined meanings as set forth in the Plan or,
if not defined therein, in the Option Agreement.

 

9. Governing Law; Severability.
This Option Exercise Notice shall be governed by and construed in accordance with the laws of the State of California without regard
to conflict-of-law principles. Should any provision contained herein be held as invalid, illegal or unenforceable, such holding
shall not affect the validity of the remainder of this Option Exercise Notice, the balance of which shall continue to be binding
upon the parties with any such modification to become a part hereof and treated as though originally set forth herein.

 

	Submitted by:	 	Accepted by:
	 	 	 
	PARTICIPANT	 	COMPANY
	 	 	 
	 	 	 
	Signature	 	By:	 
	 	 	Name:	 
	 	 	Title:	Chief Executive Officer
	 	 	 
	 	 	Date Received:

 

    B-2povd_ex42.htm

EXHIBIT 4.2
  
 NEITHER THIS SECURITY NOR THE SECURITIES AS TO WHICH THIS SECURITY MAY BE EXERCISED HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.
  
 COMMON STOCK PURCHASE WARRANT
  
 POVERTY DIGNIFIED, INC.
  
 Warrant Shares: 32,000 
  
 Date of Issuance: November 15, 2017 (“Issuance Date”)
  
 This COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received (in connection with the funding of purchase price of $35,500.00, for the first tranche of $40,000.00 under the $120,000.00 convertible promissory note issued to the Holder (as defined below) on November 15, 2017) (the “Note”), Crown Bridge Partners, LLC (including any permitted and registered 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 of issuance hereof, to purchase from Poverty Dignified, Inc., a Nevada corporation (the “Company”‘), 32,000 shares of Common Stock (as defined below) (the “Warrant Shares”) at the Exercise Price per share then in effect (whereby such number may be adjusted from time to time pursuant to the terms and conditions of this Warrant).
  
 Capitalized terms used in this Warrant shall have the meanings set forth in the Purchase Agreement unless otherwise defined in the body of this Warrant or in Section 13 below. For purposes of this Warrant, the term “Exercise Price” shall mean $1.25 subject to adjustment as provided herein (including but not limited to cashless exercise), and the term “Exercise Period” shall mean the period commencing on the Issuance Date and ending on 5:00 p.m. eastern standard time on the five-year anniversary thereof.
  
  	 
	1
	 
 
	 

  
 1. EXERCISE OF WARRANT.
  
 (a) Mechanics of Exercise, Subject to the terms and conditions hereof, the rights represented by this Warrant may be exercised in whole or in part at any time or times during the Exercise Period by delivery of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election ta exercise this Warrant. The Holder shall not be required to deliver the original Warrant in order to effect an exercise hereunder. 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. On or before the third Trading Day (the “Warrant Share Delivery Date”) following the date on which the Company shall have received the Exercise Notice, and upon receipt by the Company of payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which all or a portion of this Warrant is being exercised (the “Aggregate Exercise Price” and together with the Exercise Notice, the “Exercise Delivery Documents”) in cash or by wire transfer of immediately available funds (or by cashless exercise, in which case there shall be no Aggregate Exercise Price provided), the Company shall (or direct its transfer agent to) issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Delivery Documents, 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 certificates evidencing such Warrant Shares. If this Warrant is submitted in connection with any exercise and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable and in no event later than three Business Days after any exercise and at its own expense, issue a new Warrant (in accordance with Section 6) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised.
  
 If the Company fails to cause its transfer agent to transmit to the Holder the respective shares of Common Stock by the respective Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise in Holder’s sole discretion, and such failure shall be deemed an event of default under the Note.
  
 If the Market Price of one share of Common Stock is greater than the Exercise Price, the Holder may elect to receive Warrant Shares pursuant to a cashless exercise, in lieu of a cash exercise, equal to the value of this Warrant determined in the manner described below (or of any portion thereof remaining unexercised) by surrender of this Warrant and a Notice of Exercise, in which event the Company shall issue to Holder a number of Common Stock computed using the following formula:
  
  	  
	 X - 
	 Y(A-B)
	  

	  
	  
	 A
	  

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

	  
	  
	  

	  
	  Y =    
	 the number of Warrant Shares that the Holder elects to purchase under this Warrant (at the date of such calculation).

	  
	  
	  

	  
	  A =    
	 the Market Price (at the date of suchcalculation).

	  
	  
	  

	  
	  B =    
	 Exercise Price (as adjusted to the date of such calculation).

  
 (b) No Fractional Shares. No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any adjustment pursuant hereto. All Warrant Shares (including fractions) issuable upon exercise of this Warrant may be aggregated for purposes of determining whether the exercise would result in the issuance of any fractional share. If, after aggregation, the exercise would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the then-current fair market value of a Warrant Share by such fraction.
  
  	 
	2
	 
 
	 

  
 (c) 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, to the extent that after giving effect to issuance of Warrant Shares upon 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), 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 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, non-exercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or non-converted 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. Except as set forth in the preceding sentence, for purposes of this paragraph (d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section |3(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 paragraph applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any affiliates) 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 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.
  
 For purposes of this paragraph, 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 its transfer agent setting forth the number of shares of Common Stock outstanding. Upon the request of a Holder, the Company shall within two Trading Days confirm 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 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. Upon no fewer than 61 days’ prior notice to the Company, a Holder may increase or decrease the Beneficial Ownership Limitation provisions of this paragraph, 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 paragraph shall continue to apply. Any such increase or decrease will nat be effective until the 6lst day after such notice is delivered to the Company and shall only apply to such Holder and no other Holder, The limitations contained in this paragraph shall apply to a successor Holder of this Warrant. The Company covenants that this Warrant is outstanding, the Company will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full exercise of this Warrant. The Company is required at all times to have authorized and reserved five times the number of shares that is actually issuable upon full exercise of the Warrant (based on the Exercise Price in effect at that time)(the “Reserved Amount’). The Reserved Amount shall be increased from time to time in accordance with the Company’s obligations hereunder.
  
  	 
	3
	 
 
	 

  
 2. ADJUSTMENTS. The Exercise Price and the number of Warrant Shares shall be adjusted from time to time as follows:
  
 (a) Distribution of Assets. the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including without limitation any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case:
  
 (i) any Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination of holders of shares of Common Stock entitled to receive the Distribution shall be reduced, effective as of the close of business on such record date, to a price determined by multiplying such Exercise Price by a fraction (i) the numerator of which shall be the Closing Sale Price of the shares of Common Stock on the Trading Day immediately preceding such record date minus the value of the Distribution (as determined in good faith by the Company’s Board of Directors) applicable to one share of Common Stock, and (ii) the denominator of which shall be the Closing Sale Price of the shares of Common Stock on the Trading Day immediately preceding such record date: and
  
 (ii) the number of Warrant Shares shall be increased to a number of shares equal to the number of shares of Common Stock obtainable immediately prior to the close of business on the record date fixed for the determination of holders of shares of Common Stock entitled to receive the Distribution multiplied by the reciprocal of the fraction set forth in the immediately preceding clause (i): provided, however, that in the event that the Distribution is of shares of common stock of a company (other than the Company) whose common stock is traded on a national securities exchange or a national automated quotation system (“Other Shares of Common Stock”), then the Holder may elect to receive a warrant to purchase Other Shares of Common Stock in lieu of an increase in the number of Warrant Shares, the terms of which shall be identical to those of this Warrant, except that such warrant shall be exercisable into the number of shares of Other Shares of Common Stock that would have been payable to the Holder pursuant to the Distribution had the Holder exercised this Warrant immediately prior to such record date and with an aggregate exercise price equal to the product of the amount by which the exercise price of this Warrant was decreased with respect to the Distribution pursuant to the terms of the immediately preceding clause (i) and the number of Warrant Shares calculated in accordance with the first part of this clause (ii).
  
 (b) Anti-Dihition Adjustments to Exercise Price. If the Company, at any time from and after the Issuance Date, shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose of, sell or issue (or announce any offer, sale, grant or any option to purchase or other disposition of) any Common Stock or Common Stock Equivalents entitling any person, firm, association or entity to acquire shares of Common Stock at an effective price per share less than the then-current Exercise Price (including but not limited to under the Note), as adjusted hereunder (any such issuance being referred to as a “Dilutive Issuance,” subject, however, to the proviso contained in the further definition of the term “Dilutive Issuance” contained in Section 13 below), then (a) the Exercise Price shall be adjusted to match the lowest price per share at which such Common Stock was issued or may be acquired pursuant to such Common Stock Equivalents in the Dilutive Issuance, and (b) the number of Warrant Shares issuable upon the exercise of this Warrant shall be increased to an amount equal to the number of Warrant Shares Holder could purchase hereunder for the aggregate Exercise Price, as reduced pursuant to this Section 2(b), equal to the aggregate Exercise Price payable immediately prior to such reduction in Exercise Price. Additionally, following the occurrence of a Dilutive Issuance, all references in this Warrant to “Warrant Shares” shall be a reference to the Warrant Shares as increased pursuant to this Section 2(b), and all references in this Warrant to “Exercise Price” shall be a reference to the Exercise Price as reduced pursuant to this Section 2(b), as the same may occur from time to time hereunder.
  
  	 
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 3. FUNDAMENTAL TRANSACTIONS. If, at any time while this Warrant is outstanding, (i) the Company effects any merger of the Company with or into another entity and the Company is not the surviving entity (such surviving entity, the “Successor Entity”), (ii) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or by another individual or entity, and approved by the Company) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares of Common Stock for other securities, cash or property and the holders of at least 50% of the Common Stock accept such offer, or (iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (other than as a result of a subdivision or combination of shares of Common Stock) (in any such case, a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive the number of shares of Common Stock of the Successor Entity or of the Company and any additional consideration (the “Alternate Consideration”) receivable upon or as a result of such reorganization, reclassification, merger. consolidation or disposition of assets by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such event (disregarding any limitation on exercise contained herein solely for the purpose of such determination). 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. [f 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, To the extent necessary to effectuate the foregoing provisions, any Successor Entity in such Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing the Holder’s right to exercise such warrant into Alternate Consideration.
  
 4. NON-CIRCUMVENTION. The Company covenants and agrees that it will not, by amendment of its certificate of incorporation, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon the exercise of this Warrant, and (iit) shall, for so long as this Warrant is outstanding, have authorized and reserved, free from preemptive rights, a sufficient number of shares of Common Stock to provide for the exercise of the rights represented by this Warrant (without regard to any limitations on exercise).
  
 5. WARRANT HOLDER NOT DEEMED A STOCKHOLDER, Except as otherwise specifically provided herein, this Warrant, in and of itself, shall not entitle the Holder to any voting rights or other rights as a stockholder of the Company. 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.
  
 6. REISSUANCE
  
 (a) Lost, Stolen or Mutilated Warrant. this Warrant is lost, stolen, mutilated or destroyed, the Company will, on such terms as to indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.
  
 (b) Issuance of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant shall be of like tenor with this Warrant, and shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date.
  
  	 
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 7. TRANSFER
  
 a) Notice of Transfer. The Holder agrees to give written notice to the Company before transferring this Warrant or transferring any Warrant Shares of such Holder’s intention to do so, describing briefly the manner of any proposed transfer. Promptly upon receiving such written notice, the Company shall present copies thereof to the Company’s counsel. If the proposed transfer may be effected without registration or qualification (under any federal or state securities laws), the Company, as promptly as practicable, shall notify the Holder thereof, whereupon the Holder shall be entitled to transfer this Warrant or to dispose of Warrant Shares received upon the previous exercise of this Warrant, all in accordance with the terms of the notice delivered by the Holder to the Company; provided, however, that an appropriate legend may be endorsed on this Warrant or the certificates for such Warrant Shares respecting restrictions upon transfer thereof necessary or advisable in the opinion of counsel and satisfactory to the Company to prevent further transfers which would be in violation of Section 5 of the Securities Act and applicable state securities laws; and provided further that the prospective transferee or purchaser shall execute the Assignment of Warrant attached hereto as Exhibit B and such other documents and make such representations, warranties, and agreements as may be required solely to comply with the exemptions relied upon by the Company for the transfer or disposition of the Warrant or Warrant Shares.
  
 b) If the proposed transfer or disposition of this Warrant or such Warrant Shares described in the written notice given pursuant to this Section 7 may not be effected without registration or qualification of this Warrant or such Warrant Shares, the Holder will limit its activities in respect to such transfer or disposition as are permitted by law.
  
 (c) Any transferee of all or a portion of this Warrant shall succeed to the rights and benefits of the initial Holder of this Warrant under Sections 4.1 and 4.3 (subject, however, to the limitations set forth in Section 4.2), 4.4 and 4.5 of the Purchase Agreement (registration rights, expenses, and indemnity).
  
 8. NOTICES. Whenever notice is required to be given under this Warrant. unless otherwise provided herein, such notice shall be given in accordance with the notice provisions contained in the Purchase Agreement. The Company shall provide the Holder with prompt written notice (i) immediately upon any adjustment of the Exercise Price, setting forth in reasonable detail, the calculation of such adjustment and (ii) at least 20 days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of Common Stock, (B) with respect to any grants, issuances or sales of any stock or other securities directly or indirectly convertible into or exercisable or exchangeable for shares of Common Stock or other property, pro rata to the holders of shares of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder.
  
 9. AMENDMENT AND WAIVER. The terms of this Warrant may be amended or waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the Holder.
  
 10. GOVERNING LAW. This Warrant and all rights, obligations and liabilities hereunder shall be governed by, and construed in accordance with, the internal laws of the State of Nevada, without giving effect to the conflicts-of-law principles thereof.
  
 11. ACCEPTANCE. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein, 
   	 
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 12. CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:
  
 (a) “Nasdaq” means www.Nasdaq.com.
  
 (b) “Closing Sale Price” means, for any security as of any date, (i) the last closing trade price for such security on the Principal Market, as reported by Nasdaq, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing trade price, then the last trade price of such security prior to 4:00 p.m., New York time, as reported by Nasdaq, or (ii) if the foregoing does not apply, the last trade price of such security in the over-the-counter market for such security as reported by Nasdaq, or (iii) if no last trade price is reported for such security by Nasdaq, the average of the bid and ask prices of any market makers for such security as reported by the OTC Markets. 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. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period.
  
 (c) “Common Stock” means the Company’s common stock, and any other class of securities into which such securities may hereafter be reclassified or changed,
  
 (d) “Common Stock Equivalents” means any securities of the Company that would entitle the holder thereof to acquire at any time Common Stock, including without limitation any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.
  
 (e) “Dilutive Issuance” is any issuance of Common Stock or Common Stock Equivalents described in Section 2(c) above; provided, however, that a Dilutive Issuance shall not include any Exempt Issuance.
  
 (f) “Exempt Issuance” means the issuance of (i) shares of Common Stock or options to officers or directors of the Company pursuant to any stock or option plan duly adopted by a majority of the non- employee members of the Board of Directors of the Company or a majority of the members of a committee of non-employee directors established for such purpose, (11) securities issued pursuant to acquisitions approved by a majority of the disinterested directors of the Company, (iii) shares of Common Stock issued in connection with regularly scheduled dividend payments on any preferred stock of the Company, and (iv) shares of Common Stock issued pursuant to any real property leasing arrangement or financing from a national bank approved by the Board of Directors of the Company.
  
 (g) “Principal Market” means the primary national securities exchange on which the Common Stock is then traded.
  
 (h) “Market Price” means the highest traded price of the Common Stock during the twenty (20) Trading Days prior to the date of the respective Exercise Notice.
  
 (i) “Trading Day” means (i) any day on which the Common Stock is listed or quoted and traded on its Principal Market, (ii) if the Common Stock is not then listed or quoted and traded on any national securities exchange, then a day on which trading occurs on any over-the-counter markets, or (iii) if trading does not occur on the over-the-counter markets, any Business Day.
  
  	 
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 * * * * * * *
  
 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of the Issuance Date set forth above.
  
  	 	POVERTY DIGNIFIED, INC.	
	 	 	 	 
		By:	/s/John K. Lowther	
	  
	 Name:
	John Lowther	 
	 	Title:	Chief Executive Officer	 

  
  	 
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 EXHIBIT A
  
 EXERCISE NOTICE
  
 (To be executed by the registered holder to exercise this Common Stock Purchase Warrant)
  
 THE UNDERSIGNED holder hereby exercises the right to purchase of the shares of Common Stock (“Warrant Shares”) of Poverty Dignified, Inc., a Nevada corporation (the “Company”), evidenced by the attached copy of the Common Stock Purchase Warrant (the “Warrant’). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.
  
  	1.	Form of Exercise Price. The Holder intends that payment of the Exercise Price shall be made as (check one):

  
  	  
	 ̈	cash exercise with respect to _______________________ Warrant Shares; or
	  
	  
	  

	  
	 ̈	by cashless exercise pursuant to the Warrant.

  
  	2.	Payment of Exercise Price. If cash exercise is selected above, the holder shall pay the applicable Aggregate Exercise Price in the sum of $____________________ to the Company in accordance with the terms of the Warrant.
	  
	  

	3.	Delivery of Warrant Shares. ‘lhe Company shal! deliver to the holder _____________________ Warrant Shares in accordance with the terms of the Warrant.

  
 Date: _______________________________
  
  	  
	 ___________________________________________
 (Print Name of Registered Holder)
  
 By: ________________________________________
 Name: ______________________________________
 Title: _______________________________________

  
  	 
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 EXHIBIT B
  
 ASSIGNMENT OF WARRANT
  
 (To be signed only upon authorized transfer of the Warrant)
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto_____________________ the right to purchase _________________ shares of common stock of Poverty Dignified, Inc., to which the within Common Stock Purchase Warrant relates and appoints ____________________, as attorney-in-fact, to transfer said right on the books of Poverty Dignified, Inc. with full power of substitution and re-substitution in the premises. By accepting such transfer, the transferee has agreed to be bound in all respects by the terms and conditions of the within Warrant.
  
 Dated: _____________________________
  
  	  
	 ____________________________________________________
 (Signature) *
  
 ____________________________________________________
 (Name)
  
 ____________________________________________________
 (Address)
  
 ____________________________________________________
 (Social Security or Tax Identification No.)

  
  	•	The signature on this Assignment of Warrant must correspond to the name as written upon the face of the Common Stock Purchase Warrant in every particular without alteration or enlargement or any change whatsoever. When signing on behalf of a corporation, partnership, trust or other entity, please indicate your position(s) and title(s) with such entity,

  
  
  	10

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