Document:

Exhibit 10.3

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(the “Agreement”) is made effective as of September 30, 2017, between SINO-GLOBAL SHIPPING AMERICA, LTD., a Virginia
corporation (the “Company”) and Mr. HUANG ZHI KANG (the “Executive”).

 

		1.	EMPLOYMENT

 

The Company hereby agrees to employ the
Executive, and the Executive hereby agrees to be employed by the Company, on the terms and conditions set forth herein.

 

		2.	TERM

 

The term (“Term”)
of this Agreement shall begin on September 30, 2017 and will terminate September 30, 2018 (the “Initial Term”), unless
sooner terminated as hereinafter provided. At the conclusion of the Initial Term, the Term shall automatically be extended for
one-year period in the absence of notice of non-renewal provided at least 60 days prior to the anniversary date of this Agreement.

 

		3.	POSITION AND DUTIES

 

3.1 Position.
The Executive hereby agrees to serve as Chief Operating Officer of the Company, reporting to the Company’s Chief Executive
Officer. At the Company’s request, the Executive may, at the Executive’s discretion, serve the Company and/or its respective
subsidiaries and affiliates in other offices and capacities in addition to the foregoing, but shall not be required to do so. In
the event that the Executive, during the term of this Agreement, serves in any one or more of the aforementioned capacities, the
Executive’s compensation shall not be increased beyond that specified in Section 4 of this Agreement unless otherwise agreed
by the parties. In addition, in the event the Company and the Executive mutually agree that the Executive shall terminate the Executive’s
service in any one or more of the aforementioned capacities, or the Executive’s service in one or more of the aforementioned
capacities is terminated, the Executive’s compensation, as specified in Section 4 of this Agreement, shall not be diminished
or reduced in any manner unless otherwise agreed by the parties.

 

3.2 Duties. The
Company agrees that the duties that may be assigned to the Executive shall be the usual and customary duties of the Chief Operating
Officer.

 

3.3 Devotion of Time
and Effort. Executive shall use Executive’s good faith best efforts and judgment in performing Executive’s duties
as required hereunder and to act in the best interests of the Company. Executive shall devote such time, attention and energies
to the business of the Company as are reasonably necessary to satisfy Executive’s required responsibilities and duties hereunder.

 

 

3.4 Other Activities
.. The Executive may engage in other activities for the Executive’s own account while employed hereunder, including without
limitation charitable, community and other business activities, provided that such other activities do not materially interfere
with the performance of the Executive’s duties hereunder.

 

     

     

    

 

		4.	COMPENSATION AND RELATED MATTERS

 

4.1 Compensation.
During the Initial Term, the Company shall pay the Executive (a) an annual salary of One Hundred Thousand Dollars (US $100,000.00),
paid monthly, bi-weekly or bi-monthly in equal installments at the beginning of each such period (the “Base Salary”).
In addition, the Executive will be eligible for an incentive-based bonus to be determined by the Company’s Board of Directors
in its sole and absolute discretion based on the performance of the Executive and the Company. The Executive’s performance
and salary shall be subject to review at any time, and an increase in salary, if one is so determined by the Board, shall be made,
on a basis consistent with the standard practices of the Company.

 

4.2 Benefits.
The Executive shall be entitled to participate in the Company’s employee benefit plans and programs on substantially the
same terms and conditions as other senior executives; provided, however, that the Executive shall, at a minimum, be provided healthcare
and medical insurance typically made available to Canada-based executives in similar companies. The Executive will be entitled
to (a) four weeks of paid annual leave, (b) reasonable medical leave (provided that he is not deemed as incapacitated under the
term of Disability) and (c) time off on federal public holidays in Canada.

 

 

4.3 Business Expenses.
The Company shall promptly, in accordance with Company policy, reimburse the Executive for all reasonable business expenses incurred
in accordance with and subject to the limits set forth in the Company’s written policies with respect to business expenses,
upon presentation to the Company of written receipts for such expenses.

 

		5.	TERMINATION

 

5.1 Termination for Cause. The Company
may terminate the Executive for Cause at any time, upon written notice to Executive. For purposes of this Agreement, “Cause”
shall mean:

 

(a)              The
Executive’s conviction for commission of a felony or a crime involving moral turpitude;

 

(b)              The
Executive’s willful commission of any act of theft, embezzlement or misappropriation against the Company; or

 

 (c)              The Executive’s material failure to perform his duties hereunder.

 

5.2 Termination Without
Cause. Either party may terminate this Agreement without Cause at any time, provided that such Party first delivers to the
other Party written notice of termination of this Agreement at least thirty (30) days prior to the effective date of termination.

 

5.3 Termination for
Good Reason. The Executive may terminate his employment under this Agreement for Good Reason by providing notice to the Company
setting forth in reasonable detail the nature of such Good Reason; provided, however, that such notice must be provided within
thirty

 

(30) 
days from the Executive’s knowledge of the occurrence of a Good Reason event. For purposes of this Agreement, “Good
Reason” shall mean the occurrence of any of the following events without the Executive’s written consent: (i) a material
breach by the Company of this Agreement, including a failure to make such payments or provide such benefits as are provided herein;
or (ii) the Company requires Executive to locate his office to a location more than fifty (50) miles outside of the metropolitan
area of the Executive’s home city (Montreal). Executive’s resignation for Good Reason shall only be effective if the
Company has not cured or remedied the Good Reason event within thirty (30) days after its receipt of Executive’s written
notice.

 

    	 	2	 

     

    

 

		6.	COMPENSATION UPON TERMINATION

 

6.1 Effect of Termination
for Cause. In the event the Executive’s employment shall be terminated for Cause pursuant to Section 5.1 hereof, the
Company shall pay the Executive his salary through the date of termination.

 

6.2 Effect of Termination
upon Death or Disability . If the Executive’s employment is terminated by reason of his death or disability (which term
shall mean the legal determination that the Executive is unable to perform his duties without reasonable accommodation), he will
be entitled to receive a lump sum payment equal to two times of his Base Salary, and other benefits earned and accrued prior to
the date of termination.

 

6.3 Effect of Termination
During First Year of Initial Term. If the Executive’s employment is terminated (i) by the Company pursuant to Section
5.2 during the Initial Term of this Agreement or (ii) by the Executive pursuant to Section 5.3 during the Initial Term of this
Agreement, the Executive will be entitled to receive a severance payment equal to (1) if there has been no Change in Control, one
time the then applicable annual salary (no less than US $100,000), or (2) after a Change in Control, one-and-a-half time the then
applicable annual salary (no less than US $150,000). In the event of termination by the Executive pursuant to Section 5.2 in the
absence of a Change of Control, the Company shall pay the Executive one time of his Base Salary.

 

6.4 Change of
Control. For purposes of this Agreement, unless the Company’s Board of Directors determines otherwise, a Change of
Control of the Company shall be deemed to have occurred at such time as: (A) any person (as the term is used in Sections
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act)) is or becomes the beneficial owner (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of voting securities of the Company representing more
than 50% of the Company’s outstanding voting securities or rights to acquire such securities except for any voting
securities issued or purchased under any employee benefit plan of the Company or its subsidiaries; or (B) any sale, lease,
exchange or other transfer (in one transaction or a series of transactions) of all or substantially all of the assets of the
Company; or (C) a plan of liquidation of the Company or an agreement for the sale or liquidation of the Company is approved
and completed; or (D) the Board determines
in its sole discretion that a Change in Control has occurred, whether or not any event described above has occurred or is
contemplated.

 

		7.	CONFIDENTIALITY AND NON-SOLICITATION COVENANTS

 

7.1 Non-Competition.
The Executive agrees that during the Term of this Agreement prior to any termination of his employment hereunder and for a period
of one year following the date on which the Executive’s employment hereunder is terminated, he will not directly or indirectly,
without the prior written consent of the Company, manage, operate, join, control, participate in, or be connected as a stockholder
(other than as a holder of shares publicly traded on a stock exchange or the NASDAQ National Market System), partner, or other
equity holder with, or as an officer, director or employee of, any other company whose business strategy is competitive with that
of the Company.

 

7.2 Confidentiality.
The Executive hereby agrees that the Executive will not, during the Term or at any time thereafter directly or indirectly
disclose or make available to any person, firm, corporation, association or other entity for any reason or purpose
whatsoever, any Confidential Information (as defined below). The Executive agrees that, upon termination of his employment
with the Company, all Confidential Information in his possession that is in written or other tangible form (together with all
copies or duplicates thereof, including computer files) shall be returned to the Company and shall not be retained by the
Executive or furnished to any third party, in any form except as provided herein; provided, however, that the Executive shall
not be obligated to treat as confidential, or return to the Company copies of any Confidential Information that (i) was
publicly known at the time of disclosure to the Executive, (ii) becomes publicly known or available thereafter other than by
any means in violation of this Agreement or any other duty owed to the Company by the Executive, or (iii) is lawfully
disclosed to the Executive by a third party. As used in this Agreement the term “Confidential Information” means
information disclosed to the Executive or known by the Executive as a consequence of or through his relationship with the
Company, about the owners, employees, business methods, public relations methods, organization, procedures, property
acquisition and development, or finances, including, without limitation, information of or relating to the Company and its
affiliates.

 

    	 	3	 

     

    

 

7.3 Non-Disparagement.
During the Term of this Agreement and upon termination for any or no reason, the Executive agrees that he shall not make any disparaging
remarks of any sort or otherwise communicate any disparaging comments about the Company. During the Term of this Agreement and
upon termination for any or no reason, Company agrees that it shall not make any disparaging remarks about Executive to any other
person or entity. In accordance with Company’s usual practice, the Company will confirm Executive’s dates of employment
and Executive’s job description upon request. Notwithstanding the above, nothing in this provision shall prevent or prohibit
any Party from testifying in any legal proceeding, including at deposition, hearing or trial, from cooperating in good faith in
any governmental investigation or action, or from making any report required by law, including as may be required under applicable
securities laws.

 

7.4 Non-Solicitation.
For a period of one (1) year following the date on which the Executive’s employment hereunder is terminated, the Executive
shall not directly or indirectly (A) solicit or induce any of the Company’s employees, agents or independent contractors
to end their relationship with the Company, (B) recruit, hire or otherwise induce any such person to perform services for the Executive,
or any other person, firm or company, or (C) solicit or intentionally interfere with the customer or client relationships of the
Company.

 

7.5 Return of Property.
The Executive hereby acknowledges and agrees that all Personal Property and equipment furnished to or prepared by the Executive
in the course of or incident to his employment, belongs to the Company and shall be promptly returned to the Company upon termination
of the Employment Period. “Personal Property” includes, without limitation, all electronic devices of the Company used
by the Executive, including, without limitation, personal computers, facsimile machines, cellular telephones, pagers and tape recorders
and all books, manuals, records, reports, notes, contracts, lists, blueprints, maps and other documents, or materials, or copies
thereof (including computer files), and all other proprietary information relating to the business of the Company. Following termination,
the Executive will not retain any written or other tangible material containing any proprietary information of the Company.

 

7.6 Reasonableness
of Restrictions. Each of sections 7.1, 7.2, 7.3, 7.4 and 7.5 set out above is acknowledged by Executive to be reasonable in
duration, extent and application and is the minimum protection necessary for the Company in respect of its goodwill, Confidential
Information, trade connections and business. Each of the covenants and obligations on Executive’s part set out in sections
7.1, 7.2, 7.3, 7.4 and 7.5 is deemed to be separate and severable and enforceable by the Company accordingly. If any of the restrictions
set out above are held to be void but would be valid if part of the wording was deleted such restriction shall apply with such
deletion as may be necessary to make it valid and effective.

 

		8.	INDEMNIFICATION

 

8.1 Indemnification.
In the event that the Executive (a) was, is or may become a party to any proceeding, including a proceeding brought by a
shareholder in the right of the Company or brought by or on behalf of shareholders of the Company, by reason of the fact that
he is or was a director or officer of the Company, or (b) was or is serving at the request of the Company as a director,
trustee, partner or officer of another corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise, the Company agrees to hold harmless and indemnify the Executive from and against any and all repayment
obligations, losses, liabilities, damages, costs, expenses (including actual attorneys’ fees), judgments, fines and
amounts paid in settlement or otherwise reasonably incurred by the Executive in connection with any claim or cause of action
is threatened, asserted or brought against the Executive pursuant to or arising under this Agreement or performance of his
duties hereunder, whether in whole or in part (a “Claim”). The Company agrees to reimburse the Executive for such
reasonable out-of-pocket expenses actually incurred in connection with the defense of a Claim.

 

    	 	4	 

     

    

 

8.2 Procedure for
Indemnification. All requests for indemnification shall be addressed pursuant to Article VI of the Company’s Bylaws.

 

8.3 Inapplicability
of Indemnification. Indemnification under Section 8.1 shall be unavailable in the event the Executive has engaged in willful
misconduct or a knowing violation of criminal law. The Executive understands and agrees that insofar as indemnification for liabilities
arising under the Securities Act of 1933 may be permitted to our directors, officers or persons controlling us, in the opinion
of the SEC such indemnification is against public policy as expressed in the Securities Act of 1933 and is therefore unenforceable
as a matter of United States law.

 

		9.	GENERAL PROVISIONS

 

9.1 Injunctive Relief
and Enforcement. The Executive acknowledges that the remedies at law for any breach by him of the provisions of Section 7 hereof
may be inadequate and that, therefore, in the event of breach by the Executive of the terms of Section 7 hereof, the Company shall
be entitled to institute legal proceedings to enforce the specific performance of this Agreement by the Executive and to enjoin
the Executive from any further violation of Section 7 hereof and to exercise such remedies cumulatively or in conjunction with
all other rights and remedies provided by law and not otherwise limited by this Agreement.

 

9.2 Notice. For
the purposes of this Agreement, notices, demands and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when addressed as follows and (i) when personally delivered, (ii) when transmitted
by telecopy, electronic or digital transmission with receipt confirmed, (iii) one day after delivery to an overnight air courier
guaranteeing next day delivery, or (iv) upon receipt if sent by certified or registered mail. In each case notice shall be sent
to:

 

	 	If to Executive:	Mr. Huang
    Zhi Kang
	 	 	64 Rockland
    Dr.
	 	 	Jericho,
    NY 11753
	 	 	 
	 	If to the
    Company:	Sino-Global
    Shipping America, Ltd.
	 	 	1044 Northern
    Blvd, suite 305
	 	 	 Roslyn,
    New York 11576

 

or to such other address as any party may
have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only
upon receipt.

 

9.3 Severability.
The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, which shall remain in full force and effect. In addition, in the event any provision
in this Agreement shall be determined by any court of competent jurisdiction to be unenforceable by reason of extending for too
great a period of time or over too great a geographical area or by reason of being too extensive in any other respect, each such
agreement shall be interpreted to extend over the maximum period of time for which it may be enforceable and to the maximum extent
in all other respects as to which it may be enforceable, and enforced as so interpreted, all as determined by such court in such
action.

 

    	 	5	 

     

    

 

9.4 Assignment.
This Agreement may not be assigned by the Executive, but may be assigned by the Company to any successor to its business and will
inure to the benefit and be binding upon any such successor.

 

9.5 Counterparts.
This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together
will constitute one and the same instrument.

 

9.6 Headings.
The headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of
this Agreement.

 

9.7 Choice of Law;
Venue. This Agreement shall be construed, interpreted and enforced in accordance with the laws of the Commonwealth of Virginia
without giving effect to the principles of conflict of laws thereof. By execution and delivery of this Agreement, the parties agree
and accept that any legal action or proceeding brought with respect to this Agreement shall be brought in the court of appropriate
jurisdiction in and for the City of Richmond, Commonwealth of Virginia, and the parties expressly waive any objection to personal
jurisdiction, venue or forum non conveniens.

 

9.8 Entire Agreement.
This Agreement contains the entire agreement and understanding between the Company and the Executive with respect to the employment
of the Executive by the Company as contemplated hereby, and no representations, promises, agreements or understandings, written
or oral, not herein contained shall be of any force or effect. This Agreement shall not be changed unless in writing and signed
by both the Executive and the Board.

 

9.9 Amendments; Waivers.
This Agreement may be amended or modified, and any of the terms and covenants may be waived, only by a written instrument executed
by the parties hereto, or, in the case of a waiver, by the party waiving compliance. Any waiver by any party in any one or more
instances of any term or covenant contained in this Agreement shall neither be deemed to be nor construed as a further or continuing
waiver of any such term or covenant of this Agreement.

 

IN WITNESS WHEREOF, the parties have executed
this Employment Agreement as of the date and year first above written.

 

 

	 	Company
	 	 	 
	 	Sino-Global
    Shipping America, Ltd.,
	 	a
    Virginia stock corporation
	 	 	 
	 	By:	/s/
    Cao Lei
	 	 	Cao Lei
	 	 	Chief Executive
    Officer
	 	 	 
	 	Executive
	 	 	 
	 	By:	/s/
    Huang Zhi Kang
	 	 	Huang Zhi
    Kang

 

 

6Exhibit 4.1

 

THE REGISTERED HOLDER
OF THIS PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT
AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR
HYPOTHECATE THIS PURCHASE WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING MARCH 1, 2018 (THE “EFFECTIVE DATE”)
TO ANYONE OTHER THAN (I) DAWSON JAMES SECURITIES, INC. OR A PLACEMENT AGENT OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING
FOR WHICH THIS WARRANT WAS ISSUED TO THE PLACEMENT AGENT AS CONSIDERATION (“OFFERING”), OR (II) A BONA FIDE
OFFICER OR PARTNER OF DAWSON JAMES SECURITIES, INC. OR OF ANY SUCH PLACEMENT AGENT OR SELECTED DEALER.

 

THIS PURCHASE WARRANT
IS NOT EXERCISABLE PRIOR TO AUGUST 28, 2018. VOID AFTER 5:00 P.M., EASTERN TIME, MARCH 1, 2023.

 

 

COMMON STOCK PURCHASE WARRANT

 

 

For the Purchase of [●] Shares of
Common Stock

of

SONOMA PHARMACEUTICALS, INC.

 

1.       Purchase
Warrant. THIS CERTIFIES THAT, in consideration of funds duly paid by or on behalf of [●] (“Holder”),
as registered owner of this Purchase Warrant, to Sonoma Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
Holder is entitled, at any time or from time to time from August 28, 2018 (the “Commencement Date”), and at
or before 5:00 p.m., Eastern time, March 1, 2023 (the ”Expiration Date”), but not thereafter, to subscribe
for, purchase and receive, in whole or in part, up to [●] shares of common stock of the Company, par value $0.0001 per share
(the “Shares”), subject to adjustment as provided in Section 6 hereof. If the Expiration Date is a day on which
banking institutions are authorized by law to close, then this Purchase Warrant may be exercised on the next succeeding day which
is not such a day in accordance with the terms herein. During the period ending on the Expiration Date, the Company agrees not
to take any action that would terminate this Purchase Warrant. This Purchase Warrant is initially exercisable at $4.375
per Share; provided, however, that upon the occurrence of any of the events specified in Section 6 hereof, the rights
granted by this Purchase Warrant, including the exercise price per Share and the number of Shares to be received upon such exercise,
shall be adjusted as therein specified. The term “Exercise Price” shall mean the initial exercise price or the
adjusted exercise price, depending on the context.

 

2.       Exercise.

 

2.1       Exercise
Form. In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed and completed and
delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares being purchased
payable in cash by wire transfer of immediately available funds to an account designated by the Company or by
certified check or official bank check. If the subscription rights represented hereby shall not be exercised at or before 5:00
p.m., Eastern time, on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and
all rights represented hereby shall cease and expire. Any exercise of this Purchase Warrant shall be irrevocable.

 

2.2       Cashless
Exercise. In lieu of exercising this Purchase Warrant by payment of cash or check payable to the order of the Company
pursuant to Section 2.1 above, Holder may elect to receive the number of Shares equal to the value of this Purchase Warrant (or
the portion thereof being exercised), by surrender of this Purchase Warrant to the Company, together with the exercise form attached
hereto, in which event the Company will issue to Holder Shares in accordance with the following formula:

 

	X	=	Y(A-B)
	 	 	A

 

	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one Share; and
	 	B	=	The Exercise Price.

 

 

 

    	 	1	 

     

    

 

For purposes of this
Section 2.2, the fair market value of a Share is defined as follows:

 

		(i)	if the Company’s common stock is traded on a national securities exchange, the OTCQB or OTCQX,
the value shall be deemed to be the closing price on such exchange, the OTCQB or OTCQX, as the case may be, on the trading day
immediately prior to the exercise form being received in connection with the exercise of the Purchase Warrant; or
	 	 	 

		(ii)	if the Company’s common stock is not then traded on a securities exchange, the OTCQB or OTCQX
and if prices for the Company’s common stock are then reported on the “Pink Sheets” published by OTC Markets
Group, Inc., the value shall be deemed to be the closing bid prior to the exercise form being submitted in connection with the
exercise of the Purchase Warrant so reported; provided, however, if there is no active public market, the value shall be the fair
market value thereof, as determined in good faith by the Company’s Board of Directors.

 

2.3        Legend.
Each certificate for the securities purchased under this Purchase Warrant shall bear a legend as follows unless such securities
have been registered under the Securities Act of 1933, as amended (the “Act”):

 

“The securities
represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”),
or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred
except pursuant to an effective registration statement under the Act, or pursuant to an exemption from registration under the Act
and applicable state law which, in the opinion of counsel to the Company, is available.”

 

2.4       Resale
of Shares. Holder and the Company acknowledge that as of the date hereof the Staff of the Division of Corporation Finance of
the SEC has published Compliance & Disclosure Interpretation 528.04 in the Securities Act Rules section thereof, stating that
the holder of securities issued in connection with a public offering may not rely upon Rule 144 promulgated under the Act to establish
an exemption from registration requirements under Section 4(a)(1) under the Act, but may nonetheless apply Rule 144 constructively
for the resale of such shares in the following manner: (a) provided that six months has elapsed since the last sale under the registration
statement, an underwriter or finder may resell the securities in accordance with the provisions of Rule 144(c), (e), and (f), except
for the notice requirement; (b) a purchaser of the shares from an underwriter receives restricted securities unless the sale is
made with an appropriate, current prospectus, or unless the sale is made pursuant to the conditions contained in (a) above; (c)
a purchaser of the shares from an underwriter who receives restricted securities may include the underwriter’s holding period,
provided that the underwriter or finder is not an affiliate of the issuer; and (d) if an underwriter transfers the shares to its
employees, the employees may tack the firm’s holding period for purposes of Rule 144(d), but they must aggregate sales of
the distributed shares with those of other employees, as well as those of the underwriter or finder, for a six-month period from
the date of the transfer to the employees. Holder and the Company also acknowledge that the Staff of the Division of Corporation
Finance of the SEC has advised in various no-action letters that the holding period associated with securities issued without registration
to a service provider commences upon the completion of the services, which the Company agrees and acknowledges shall be the closing
of the Offering, and that Rule 144(d)(3)(ii) provides that securities acquired from the issuer solely in exchange for other securities
of the same issuer shall be deemed to have been acquired at the same time as the securities surrendered for conversion (which the
Company agrees is the date of the initial issuance of this Purchase Warrant). In the event that following a request by Holder to
transfer the Shares in accordance with Compliance & Disclosure Interpretation 528.04 counsel for the Company reasonably concludes
that Compliance & Disclosure Interpretation 528.04 no longer may be relied upon as a result of changes in applicable laws,
regulations, or interpretations of the SEC Division of Corporation Finance, or as a result of judicial interpretations not known
by the Company or its counsel on the date hereof (either, a “Registration Trigger Event”), then the Company shall promptly,
and in any event within five (5) business days following the request, provide written notice to Holder of such determination. As
a condition to giving such notice, the Company shall offer Holder a single demand registration right pursuant to an agreement in
form acceptable to the Holder; provided that notwithstanding anything to the contrary, the obligations of the Company pursuant
to this Section 2 shall terminate on the fifth anniversary of the Effective Date. In the absence of such conclusion by counsel
for the Company, the Company shall, upon request of Holder given no earlier than six months after the final closing of the Offering,
instruct its transfer agent to permit the transfer of such shares in accordance with Compliance & Disclosure Interpretation
528.04, provided that Holder has provided such documentation as shall be reasonably be requested by the Company to establish compliance
with the conditions of Compliance & Disclosure Interpretation 528.04.

 

 

 

    	 	2	 

     

    

 

3.       Transfer.

 

3.1       General
Restrictions. The registered Holder of this Purchase Warrant agrees by his, her or its acceptance hereof, that such Holder
will not: (a) sell, transfer, assign, pledge or hypothecate this Purchase Warrant for a period of one hundred eighty (180) days
following the Effective Date to anyone other than: (i) Dawson James Securities, Inc. (“Dawson”) or a placement
agent, underwriter or a selected dealer participating in the Offering, or (ii) a bona fide officer or partner of Dawson or of any
such placement agent or selected dealer, in each case in accordance with FINRA Conduct Rule 5110(g)(1), or (b) cause this Purchase
Warrant or the securities issuable hereunder to be the subject of any hedging, short sale, derivative, put or call transaction
that would result in the effective economic disposition of this Purchase Warrant or the securities hereunder, except as provided
for in FINRA Rule 5110(g)(2). After 180 days after the Effective Date, transfers to others may be made subject to compliance with
or exemptions from applicable securities laws. In order to make any permitted assignment, the Holder must deliver to the Company
the assignment form attached hereto duly executed and completed, together with the Purchase Warrant and payment of all transfer
taxes, if any, payable in connection therewith. The Company shall within five (5) Business Days transfer this Purchase Warrant
on the books of the Company and shall execute and deliver a new Purchase Warrant or Purchase Warrants of like tenor to the appropriate
assignee(s) expressly evidencing the right to purchase the aggregate number of Shares purchasable hereunder or such portion of
such number as shall be contemplated by any such assignment.

 

3.2        Restrictions
Imposed by the Act. The securities evidenced by this Purchase Warrant shall not be transferred unless and until: (i) if required
by applicable law, the Company has received the opinion of counsel for the Company that the securities may be transferred pursuant
to an exemption from registration under the Act and applicable state securities laws, or (ii) a registration statement or a post-effective
amendment to the Registration Statement relating to the offer and sale of such securities has been filed by
the Company and declared effective by the U.S. Securities and Exchange Commission (the “Commission”) and
compliance with applicable state securities law has been established. The Company shall provide Holder with an opinion of counsel
for the Company at Company’s expense.

 

4.       New
Purchase Warrants to be Issued.

 

4.1       Partial
Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Warrant may be exercised or assigned in
whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Warrant for cancellation,
together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or transfer tax
if exercised pursuant to Section 2.1 hereto, the Company shall cause to be delivered to the Holder without charge a new Purchase
Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder to purchase the number
of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.

 

4.2        Lost
Certificate. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this
Purchase Warrant and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver
a new Purchase Warrant of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such loss, theft,
mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company.

 

5.       Adjustments.

 

5.1       Adjustments
to Exercise Price and Number of Securities. The Exercise Price and the number of Shares underlying the Purchase Warrant shall
be subject to adjustment from time to time as hereinafter set forth: 

 

5.1.1       Share
Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 5.3 below, the number of outstanding
Shares is increased by a stock dividend payable in Shares or by a split up of Shares or other similar event, then, on the effective
day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding Shares,
and the Exercise Price shall be proportionately decreased.

 

5.1.2        Aggregation
of Shares. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares
is decreased by a consolidation, combination or reclassification of Shares or other similar event, then, on the effective date
thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding Shares, and
the Exercise Price shall be proportionately increased.

 

 

 

    	 	3	 

     

    

 

5.1.3        Replacement
of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding Shares other than
a change covered by Section 5.1.1 or 5.1.2 hereof or that solely affects the par value of such Shares, or in the case of any share
reconstruction or amalgamation or consolidation or merger of the Company with or into another corporation (other than a consolidation
or share reconstruction or amalgamation or merger in which the Company is the continuing corporation and that does not result in
any reclassification or reorganization of the outstanding Shares), or in the case of any sale or conveyance to another corporation
or entity of the property of the Company as an entirety or substantially as an entirety in connection with which the Company is
dissolved, the Holder of this Purchase Warrant shall have the right thereafter (until the expiration of the right of exercise of
this Purchase Warrant) to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately
prior to such event, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such
reclassification, reorganization, share reconstruction or amalgamation, or consolidation, or upon a dissolution following any such
sale or transfer, by a Holder of the number of Shares of the Company obtainable upon exercise of this Purchase Warrant immediately
prior to such event; and if any reclassification also results in a change in Shares covered by Section 5.1.1 or 5.1.2, then such
adjustment shall be made pursuant to Sections 5.1.1, 5.1.2 and this Section 5.1.3. The provisions of this Section 5.1.3 shall similarly
apply to successive reclassifications, reorganizations, share reconstructions or amalgamations, or consolidations, sales or other
transfers.

 

5.1.4        Changes
in Form of Purchase Warrant. This form of Purchase Warrant need not be changed because of any change pursuant to this Section
5.1, and Purchase Warrants issued after such change may state the same Exercise Price and the same number of Shares as are stated
in the Purchase Warrants initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance of new Purchase
Warrants reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the
Commencement Date or the computation thereof.

 

5.2        Substitute
Purchase Warrant. In case of any consolidation of the Company with, or share reconstruction or amalgamation or merger of the
Company with or into, another corporation (other than a consolidation or share reconstruction or amalgamation or merger which does
not result in any reclassification or change of the outstanding Shares), the corporation formed by such consolidation or share
reconstruction or amalgamation shall execute and deliver to the Holder a supplemental Purchase Warrant providing
that the holder of each Purchase Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated
expiration of such Purchase Warrant) to receive, upon exercise of such Purchase Warrant, the kind and amount of shares of stock
and other securities and property receivable upon such consolidation or share reconstruction or amalgamation, by a holder of the
number of Shares of the Company for which such Purchase Warrant might have been exercised immediately prior to such consolidation,
share reconstruction or amalgamation or merger, sale or transfer. Such supplemental Purchase Warrant shall provide for adjustments
which shall be identical to the adjustments provided for in this Section 6. The above provision of this Section shall similarly
apply to successive consolidations or share reconstructions or amalgamations or mergers.

 

5.3        Elimination
of Fractional Interests. The Company shall not be required to issue certificates representing fractions of Shares upon the
exercise of the Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being
the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may
be, to the nearest whole number of Shares or other securities, properties or rights.

 

6.        Reservation
and Listing. The Company shall at all times reserve and keep available out of its authorized Shares, solely for the purpose
of issuance upon exercise of the Purchase Warrants, such number of Shares or other securities, properties or rights as shall be
issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of the Purchase Warrants and payment of
the Exercise Price therefor (unless exercise via cashless exercise as provided herein), in accordance with the terms hereby, all
Shares and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not
subject to preemptive rights of any shareholder. As long as the Purchase Warrants shall be outstanding, the Company shall use its
commercially reasonable efforts to cause all Shares issuable upon exercise of the Purchase Warrants to be listed (subject to official
notice of issuance) on all national securities exchanges (or, if applicable, quoted on the OTC Bulletin Board or any successor
trading market) on which the Shares issued to the public in the Offering may then be listed and/or quoted.

 

7.       Certain
Notice Requirements.

 

7.1       Holder’s
Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right to vote or consent or to
receive notice as a shareholder for the election of directors or any other matter, or as having any rights whatsoever as a shareholder
of the Company. If, however, at any time prior to the expiration of the Purchase Warrants and their exercise, any of the events
described in Section 7.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event
at least ten (10) days prior to the date fixed as a record date or the date of closing the transfer books for the determination
of the shareholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled
to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of
the closing of the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver
to each Holder a copy of each notice given to the other shareholders of the Company at the same time and in the same manner that
such notice is given to the shareholders.

 

 

 

    	 	4	 

     

    

 

7.2        Events
Requiring Notice. The Company shall be required to give the notice described in this Section 7 upon one or more of the following
events: (i) if the Company shall take a record of the holders of its Shares for the purpose of entitling them to receive a dividend
or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings,
as indicated by the accounting treatment of such dividend or distribution on the books of the Company, (ii) the Company shall offer
to all the holders of its Shares any additional shares of capital stock of the Company or securities convertible into or exchangeable
for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor, or (iii) a dissolution, liquidation
or winding up of the Company (other than in connection with a consolidation or share reconstruction or amalgamation) or a sale
of all or substantially all of its property, assets and business shall be proposed.

 

7.3        Notice
of Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to
Section 5 hereof, send notice to the Holders of such event and change (“Price Notice”). The Price Notice shall
describe the event causing the change and the method of calculating same and shall be certified as being true and accurate by the
Company’s Chief Financial Officer.

 

7.4        Transmittal
of Notices. All notices, requests, consents and other communications under this Purchase Warrant shall be in writing and shall
be deemed to have been duly made when hand delivered, or mailed by express mail or private courier service: (i) if to the registered
Holder of the Purchase Warrant, to the address of such Holder as shown on the books of the Company, or (ii) if to the Company,
to following address or to such other address as the Company may designate by notice to the Holders:

 

If to the Holder:

 

Dawson James Securities, Inc.

1 North Federal Highway – 5th Floor

Boca Raton, FL 33432

Attention: Chief Executive Officer

with a copy (which shall
not constitute notice) to:

Schiff Hardin LLP

901 K Street, NW, Suite 700

Washington, DC 20001

Attn: Ralph V. De Martino, Esq.

Fax No.:  (202) 778-6460

 

If to the Company:

 

Sonoma Pharmaceuticals, Inc.

1129 N. McDowell Blvd.

Petaluma, California 94954

Attention: Chief Executive Officer

with a copy (which shall not constitute notice) to:

 

Trombly Business Law, PC

1314 Main Street, Suite 102

Louisville, CO 80027

Fax No.: (617) 243-0066

 

 

 

    	 	5	 

     

    

 

8.       Miscellaneous.

 

8.1       Amendments.
The Company and Dawson may from time to time supplement or amend this Purchase Warrant without the approval of any of the Holders
in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with
any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the Company
and Dawson may deem necessary or desirable and that the Company and Dawson deem shall not adversely affect the interest of the
Holders. All other modifications or amendments shall require the written consent of and be signed by (i) the Company and (ii) the
Holder(s) of Purchase Warrants then-exercisable for at least a majority of the Shares then-exercisable pursuant to all then-outstanding
Purchase Warrants.

 

8.2        Headings.
The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of this Purchase Warrant.

 

8.3.        Entire
Agreement. This Purchase Warrant (together with the other agreements and documents being delivered pursuant to or in connection
with this Purchase Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and
supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.

 

8.4        Binding
Effect. This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and
their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed
to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions
herein contained.

 

 

8.5        Governing
Law; Submission to Jurisdiction; Trial by Jury. This Purchase Warrant shall be governed by and construed and enforced in accordance
with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees
that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought
and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any
objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served
upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage
prepaid, addressed to it at the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall
be legal and binding upon the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing
party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees
and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on
its behalf and, to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and the Holder hereby
irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby.

 

8.6        Waiver,
etc. The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Warrant shall not
be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase
Warrant or any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this
Purchase Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant
shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement
of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be
a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

 

8.7        Exchange
Agreement. As a condition of the Holder’s receipt and acceptance of this Purchase Warrant, Holder agrees that, at any
time prior to the complete exercise of this Purchase Warrant by Holder, if the Company and Dawson enter into an agreement (“Exchange
Agreement”) pursuant to which they agree that all outstanding Purchase Warrants will be exchanged for securities or cash
or a combination of both, then Holder shall agree to such exchange and become a party to the Exchange Agreement.

 

[Signature Page Follows]

 

 

    	 	6	 

     

    

 

IN WITNESS WHEREOF, the Company has caused
this Purchase Warrant to be signed by its duly authorized officer as of the 6th day of March, 2018.

 

 

Sonoma Pharmaceuticals,
Inc.

 

 

By:_______________________________________

       Name: Robert Miller

       Title: Chief Financial
Officer

 

 

[Form to be used to exercise Purchase
Warrant]

 

 

 

 

 

 

 

 

 

 

    	 	7	 

     

    

 

 

Date: __________, 20___

 

 

The undersigned hereby
elects irrevocably to exercise the Purchase Warrant for ______ shares of common stock, par value $0.0001 per share (the “Shares”),
of Sonoma Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and hereby makes payment of $____ (at
the rate of $____ per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares as to which this Purchase
Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the
number of Shares for which this Purchase Warrant has not been exercised.

 

or

 

The undersigned
hereby elects irrevocably to convert its right to purchase ___ Shares of the Company under the Purchase Warrant for ______ Shares,
as determined in accordance with the following formula:

 

	 	X	=	Y(A-B)	 
	A	 
	Where,	 	 	 
	 	X	=	The number of Shares to be issued to Holder;
	 	Y	=	The number of Shares for which the Purchase Warrant is being exercised;
	 	A	=	The fair market value of one Share which is equal to $_____; and
	 	B	=	The Exercise Price which is equal to $______ per share
	 	 	 	 	 	 	 

The undersigned
agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement with
respect to the calculation shall be resolved by the Company in its sole discretion.

 

Please issue
the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a
new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been converted.

 

 

Signature ____________________

 

 

 

Signature
Guaranteed ___________________

 

 

 

 

 

 

 

 

 

 

    	 	8	 

     

    

 

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

 

Name: ________________________________________

(Print in Block Letters)

 

Address: ______________________________________

  

                 ______________________________________ 

 

                ______________________________________ 

 

 

 

 

NOTICE: The signature
to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or enlargement or
any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership
on a registered national securities exchange.

 

 

 

 

 

 

 

 

 

    	 	9	 

     

    

 

[Form to be used to
assign Purchase Warrant]

 

 

ASSIGNMENT

 

(To be executed by the registered Holder
to effect a transfer of the within Purchase Warrant):

 

 

 

FOR VALUE RECEIVED,
__________________ does hereby sell, assign and transfer unto the right to purchase shares of Common Stock, par value $0.0001 per
share, of Sonoma Pharmaceuticals, Inc., a Delaware corporation (the “Company”), evidenced by the Purchase Warrant
and does hereby authorize the Company to transfer such right on the books of the Company.

 

 

 

Dated: __________, 20__

 

 

 

 

Signature _____________________________

 

 

 

Signature Guaranteed ____________________

 

 

 

 

NOTICE: The signature to this form must correspond with the
name as written upon the face of the within Purchase Warrant without alteration or enlargement or any change whatsoever, and must
be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national
securities exchange.

 

 

 

 

    	 	10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00280-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00280-of-00352.parquet"}]]