Document:

EXHIBIT 10.1

 

WARRANT
AGENT AGREEMENT

 

This Series
A Warrant Agent Agreement (this “Warrant Agreement”), dated as of January 4, 2022 (the
“Issuance Date”) between AppTech Payments Corp., a company incorporated under the laws of the State of
Delaware (the “Company”),
and Transfer Online, Inc.
(the “Warrant Agent”).

 

WHEREAS,
pursuant to the
terms of that
certain Underwriting Agreement
(“Underwriting Agreement”),
dated January 4, 2022, by
and among the
Company and EF Hutton, division
of Benchmark Investments, LLC, as representatives
of the underwriters set forth on
Schedule 1 thereto , the Company is engaged in a public offering (the “Offering”) of up to
3,614,458 Units, each Unit consisting of one share (the “Shares”) of common stock, par value $0.001 per
share (the “Common
Stock”) of the
Company and one warrant
(the “Waarrants”) to purchase one share of Common Stock (such
shares of Common Stock underlying the
Warrants, the “Warrant
Shares”);

 

WHEREAS,
the Company has
filed with the
Securities and Exchange
Commission (the “Commission”)
a Registration Statement
on Form S-1
(File No. 333-253160) (as
the same may
be amended from time to time, the
“Registration Statement”), for the registration under the Securities Act of 1933, as
amended (the “Securities Act”), of the Shares, the Warrants and Warrant Shares, and such
Registration Statement was
declared effective on January 4, 2022;

 

WHEREAS,
the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant
Agent is willing to so act, in accordance with the terms set forth in this Warrant Agreement in
connection with the
issuance, registration, transfer, exchange
and exercise of the Warrants;

 

WHEREAS,
the Company desires to provide for the provisions of the Warrants, the terms upon which
they shall be issued and exercised, and the respective rights, limitation of rights, and immunities of
the Company, the Warrant Agent,
and the holders of the Warrants;
and

 

WHEREAS,
all acts and things have been done and performed which are necessary to make the Warrants
the valid, binding and legal obligations of the Company, and to authorize the execution and
delivery of this
Warrant Agreement.

 

NOW,
THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto
agree as follows:

 

1.                     Appointment
of
Warrant
Agent.
The Company hereby
appoints the Warrant
Agent to act
as agent for
the Company with
respect to the
Warrants, and the
Warrant Agent hereby
accepts such appointment
and agrees to perform the same in accordance with the express terms and conditions
set forth in this Warrant Agreement (and
no implied terms
or conditions).

 

    	 

    	 

    

 

		2.	Warrants. 

 

		2.1.	Form of
Warrants.

 

(a)               
The
Warrants,
together
with the
form of election
to purchase Common
Stock (the “Exercise
Notice”) and the form of assignment to be printed on the reverse thereof shall be substantially in the form
of Annex A hereto. The Warrants shall be registered securities and shall be evidenced by a global
certificate (“Global Certificate”) in the form of Annex A to this Warrant Agreement, which shall
be deposited on behalf of the Company with a custodian for The Depository Trust Company
(“DTC”) and registered in the name of Cede & Co., a nominee of
DTC. If DTC subsequently ceases to make its book- entry settlement system available
for the Warrants, the Company may instruct the Warrant Agent regarding
making other arrangements for
book-entry settlement.

 

(b)        
In the event that any Warrants are not eligible for, or it is no longer necessary to have
the Warrants available in, book-entry form, then the Company may instruct the Warrant
Agent to provide written instructions to The Depository Trust Company (“DTC”) to deliver to the Warrant Agent for cancellation,
the Global Certificate, and the Company shall instruct the Warrant Agent to deliver to each “Holder” (as defined below),
separate certificates evidencing the Warrants (“Definitive Certificates,” and together with the Global Certificate, the
“Warrant Certificates”) in the form of Annex A to this Warrant Certificate. The Warrants represented by the Global
Certificate are referred to as “Global Warrants.”

 

		2.2.	Issuance and
Registration of Warrants.

 

2.2.1.         
Warrant Register.
The Warrant Agent
shall maintain books
(“Warrant Register”)
for the registration of
original issuance and
the registration of transfer of
the Warrants.

 

2.2.2.         
Issuance of
Warrants. Upon the
initial issuance of
the Warrants, the
Warrant Agent shall issue the Global Certificate and deliver the Warrants in the DTC book-entry
settlement system in
accordance with written
instructions delivered to
the Warrant Agent
by the Company.
Ownership of security entitlements in the Warrants shall be shown on, and the transfer of such
ownership shall be effected through, records maintained (i) by DTC and (ii) by institutions that have
accounts with DTC (each, a
“Participant”).

 

2.2.4.         
Beneficial Owner;
Holder. Prior to
due presentment for
registration of transfer
of any Warrant, the Company and the Warrant Agent may deem and treat the person
in whose name that Warrant shall be registered on the Warrant Register (the “Holder”)
as the absolute owner of such Warrant for purposes of any exercise thereof, and for
all other purposes, and neither the Company nor the Warrant Agent shall be affected
by any notice to the contrary. Notwithstanding the foregoing, nothing herein shall prevent
the Company, the Warrant Agent or any agent of the Company or the Warrant Agent from giving
effect to any
written certification, proxy
or other authorization
furnished by DTC
governing the exercise
of the rights of a holder of a beneficial interest in any Warrant. The rights
of beneficial owners in a Warrant evidenced by the Global Certificate shall be exercised
by the Holder or a Participant through the DTC system,
except to the
extent set forth herein or
in the Global Certificate.

 

2.2.5.         
Execution. The
Warrant Certificates shall
be executed on
behalf of the
Company by
any authorized
officer of
the Company (an
“Authorized Officer”),
which need not
be the same
authorized signatory for all of the Warrant Certificates, either manually
or by facsimile signature. The Warrant Certificates
shall be countersigned
by an authorized
signatory of the
Warrant Agent, which
need not be
the same signatory for
all of the
Warrant Certificates, and
no Warrant Certificate
shall be valid
for any purpose
unless so countersigned. In case any Authorized Officer of the Company that signed any of the Warrant
Certificates ceases to be an Authorized Officer of the Company before countersignature by the Warrant
Agent and issuance and delivery by the
Company, such Warrant Certificates, nevertheless, may
be countersigned by the Warrant Agent, issued and delivered with the same force
and effect as though the person who signed such Warrant Certificates had not ceased
to be such officer of the Company; and any Warrant Certificate may be signed on behalf
of the Company by any person who, at the actual date of the execution of such Warrant
Certificate, shall be an Authorized Officer of the Company authorized to sign such
Warrant Certificate, although at the date of the execution of this Warrant Agreement any such person
was not such an Authorized
Officer.

 

    	 

    	 

    

 

2.2.6.         
Registration of
Transfer. At any
time at or
prior to the
Expiration Date (as
defined below), a transfer of any Warrants may be registered and any Warrant
Certificate or Warrant Certificates may be
split up, combined
or exchanged for
another Warrant Certificate
or Warrant Certificates
evidencing the same number of Warrants as the Warrant Certificate or Warrant
Certificates surrendered. Any Holder desiring to register the transfer of Warrants
or to split up, combine or exchange any Warrant Certificate shall
make such request
in writing delivered
to the Warrant
Agent, and shall
surrender to the
Warrant Agent the Warrant Certificate
or Warrant Certificates evidencing the Warrants the transfer of which is to be registered
or that is
or are to
be split up,
combined or exchanged
and, in the
case of registration
of transfer, shall provide a signature
guarantee. Thereupon, the Warrant Agent shall countersign and deliver to the person
entitled thereto a Warrant Certificate or Warrant Certificates, as the case may be, as so requested.
The Warrant Agent
may require reasonable
and customary payment,
by the Holder
requesting a registration
of transfer of Warrants or a split-up, combination or exchange of a Warrant Certificate (but, for purposes
of clarity, not upon the exercise of the Warrants and issuance of Warrant Shares to the Holder), of a sum
sufficient to
cover any
tax or governmental
charge that may
be imposed in
connection with such
registration of transfer, split-up, combination or exchange, together with
reimbursement to the Warrant Agent of all reasonable
expenses incidental thereto.

 

2.2.7.         
Loss, Theft
and Mutilation of
Warrant Certificates. Upon
receipt by the
Company and the Warrant Agent of evidence reasonably satisfactory to them of
the loss, theft, destruction or mutilation of a Warrant Certificate, and, in case of
loss, theft or destruction, of indemnity or security in customary form and amount,
and reimbursement to the Company and the Warrant Agent of all reasonable expenses incidental
thereto, and upon surrender to the Warrant Agent and cancellation of the Warrant Certificate
if mutilated, the
Warrant Agent shall, on
behalf of the
Company, countersign and
deliver a new
Warrant Certificate of like tenor to the Holder in lieu of the Warrant Certificate so lost, stolen, destroyed
or mutilated. The
Warrant Agent may
charge the Holder
an administrative fee
for processing the
replacement of lost Warrant Certificates, which shall be charged only once in instances where a single
surety bond obtained covers multiple certificates. The Warrant Agent may receive compensation from the
surety companies or surety
agents for administrative services
provided to them.

 

2.2.8.         
Proxies. The Holder of a Warrant may grant proxies or otherwise authorize any
person, including the
Participants and beneficial
holders that may
own interests through
the Participants, to
take any action that a Holder is entitled to take under this Agreement or the Warrants; provided, however,
that at all times that the Warrants are evidenced by a Global Certificate, exercise of those Warrants shall be effected
on their behalf by Participants through DTC in accordance the procedures administered
by DTC.

 

2.2.9.         
Warrant Certificate Request. A Holder has the right to elect at any time or from time
to time a Warrant Exchange (as defined below) pursuant to a Warrant Certificate Request Notice (as defined below). Upon written
notice by a Holder to the Warrant Agent for the exchange of some or all of such Holder’s Global Warrants for a Definitive Certificate
evidencing the same number of Warrants, which request shall be in the form attached hereto as Annex E (a “Warrant
Certificate Request Notice” and the date of delivery of such Warrant Certificate Request Notice by the Holder, the “Warrant
Certificate Request Notice Date” and the deemed surrender upon delivery by the Holder of a number of Global Warrants for
the same number of Warrants evidenced by a Definitive Certificate, a “Warrant Exchange”), the Warrant Agent shall
promptly effect the Warrant Exchange and shall promptly issue and deliver to the Holder a Definitive Certificate for such number
of Warrants in the name set forth in the Warrant Certificate Request Notice. Such Definitive Certificate shall be dated the original
issue date of the Warrants, shall be manually executed by an authorized signatory of the Company, shall be in the form attached
hereto as Annex C, and shall be reasonably acceptable in all respects to such Holder. In connection with a Warrant Exchange,
the Company agrees to deliver, or to direct the Warrant Agent to deliver, the Definitive Certificate to the Holder within three
(3) Trading Days of the Warrant Certificate Request Notice pursuant to the delivery instructions in the Warrant Certificate Request
Notice (“Warrant Certificate Delivery Date”). If the Company fails for any reason to deliver to the Holder the
Definitive Certificate subject to the Warrant Certificate Request Notice by the Warrant Certificate Delivery Date, the Company
shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares evidenced by such
Definitive Certificate (based on the VWAP (as defined in the Warrants) of the Common Stock on the Warrant Certificate Request Notice
Date), $10 per Trading Day for each Trading Day after such Warrant Certificate Delivery Date until such Definitive Certificate
is delivered or, prior to delivery of such Warrant Certificate, the Holder rescinds such Warrant Exchange. The Company covenants
and agrees that, upon the date of delivery of the Warrant Certificate Request Notice, the Holder shall be deemed to be the holder
of the Definitive Certificate and, notwithstanding anything to the contrary set forth herein, the Definitive Certificate shall
be deemed for all purposes to contain all of the terms and conditions of the Warrants evidenced by such Warrant Certificate and
the terms of this Agreement, other than Sections 3(c) and 9 herein, shall not apply to the Warrants evidenced by the Definitive
Certificate. For purposes of clarity, if there is a conflict between the express terms of this Warrant Agreement and a Definitive
Certificate in for the form of Annex C hereto with respect to the terms of the Warrants, the terms of the Definitive Certificate
shall govern and control.

 

    	 

    	 

    

 

		3.	Terms and
Exercise of Warrants.

 

3.1.             
Exercise Price. Each Warrant shall entitle the Holder, subject to the provisions of
the applicable Warrant Certificate and of this Warrant Agreement, to purchase from
the Company the number of shares of Common Stock stated therein, at the price of $5.19
per whole share, subject to the subsequent adjustments provided in Section 4 hereof.
The term “Exercise Price” as used in this Warrant Agreement refers
to the price per share at which shares of Common Stock may be purchased at the time a Warrant is
exercised.

 

3.2.            
Duration of Warrants. Warrants may be exercised only during the period (“Exercise
Period”) commencing on January 4, 2022 and terminating at 5:00
P.M., Eastern Standard Time (the “close of business”)
on the fifth
(5th) anniversary of
the Issuance Date,
January 4, 2027 (“Expiration
Date”). Each Warrant
not exercised on
or before the
Expiration Date shall
become void, and
all rights thereunder
and all rights
in respect thereof under
this Warrant Agreement shall cease
at the close
of business on the
Expiration Date.

 

		3.3.	Exercise of
Warrants.

 

3.3.1.         
Exercise and Payment. (a) Subject to the provisions of this Warrant Agreement,
a Holder (or
a Participant or
a designee of
a Participant acting
on behalf of
a Holder) may
exercise Warrants by delivering
to the Warrant Agent, not later than 5:00 P.M., Eastern Standard Time, on any business day
during the Exercise Period an election to purchase the Warrant Shares underlying the Warrants to be
exercised (i) in the form included in Annex B to this Warrant Agreement or (ii) via an electronic warrant
exercise through the DTC system (each, an “Election to Purchase”). No later than one (1) Trading Day
following delivery of an Election to Purchase, the Holder (or a Participant acting on behalf of a Holder in
accordance with DTC procedures) shall: (i) (A) surrender the Warrant Certificate evidencing the Warrants
to the Warrant Agent at its office designated for such purpose or (B) deliver the Warrants to an account of
the Warrant Agent
at DTC designated
for such purpose
in writing by
the Warrant Agent
to DTC from
time to
time, and
(ii) unless
the cashless
exercise procedure specified
in Section 3.3.7(b)
or (c) below
is permitted and specified in the
applicable Notice of Exercise, deliver to the Company the Exercise Price for each Warrant
to be
exercised, in
lawful money of
the United States
of America by
certified or official
bank check payable
to the Company or bank wire
transfer in immediately available
funds to:

 

[WIRE/PAYMENT
INFORMATION FOR COMPANY]

 

Notwithstanding any other provision
in this Warrant Agreement, a holder whose interest in a Global Warrant is a beneficial
interest in a Global Warrant held in book-entry form through DTC (or another established
clearing corporation performing similar functions), shall effect exercises by delivering to DTC
(or such other
clearing corporation, as
applicable) the appropriate
instruction form for
exercise, complying with the procedures
to effect exercise that are required by DTC (or such other clearing corporation, as applicable).
The Company acknowledges that the bank accounts maintained by the Warrant Agent in connection
with the services
provided under this
Agreement will be
in its name
and that the
Warrant Agent may
receive investment earnings
in connection with
the investment at
Warrant Agent risk
and for its
benefit of funds
held in those
accounts from time
to time. Neither
the Company nor
the Holders will
receive interest on
any deposits or Exercise Price.

 

    	 

    	 

    

 

 No ink-original Election
to Purchase shall be required, nor shall any medallion guarantee (or other type of guarantee
or notarization) of any Election to Purchase form be required. Notwithstanding anything herein
to the contrary, the Holder shall not be required to physically surrender the Warrants to the Warrant Agent
until the Holder has purchased all of the Warrant Shares available thereunder and the Warrant has been
exercised in full,
in which case,
the Holder shall
surrender such Warrant
to the Warrant
Agent for cancellation within three (3) Trading Days of the date the final
Election to Purchase is delivered to the Warrant Agent. Partial exercises of a Warrant
resulting in purchases of a portion of the total number of Warrant Shares available
thereunder shall have the effect of lowering the outstanding number of Warrant Shares
purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.
The Holder
and the Warrant
Agent shall maintain
records showing the
number of Warrant
Shares purchased and
the date
of such
purchases. The Holder
and any assignee, by
acceptance of a
Warrant, acknowledge and agree
that, by reason of the provisions of this paragraph, following the purchase of a portion of
the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at
any given time may be less than
the amount stated on the face thereof.

 

Any
person so designated
by the Holder
(or a Participant
or designee of
a Participant on
behalf of a
Holder) to receive Warrant Shares shall be deemed to have become holder of
record of such Warrant Shares as of the time that an appropriately completed and duly
signed Election to Purchase has been delivered to the Warrant Agent, provided that
the Holder (or Participant on behalf of the Holder) makes delivery of the deliverables
referenced in the
immediately preceding sentence
by the date
that is one
(1) Trading Day
after the delivery
of the Election
to Purchase. If
the Holder (or
Participant on behalf
of the Holder)
fails to make
delivery of such
deliverables on or
prior to the
Trading Day following
delivery of the
Election to Purchase,
such Election to Purchase shall be
void ab initio.

 

(b) 
If any of (i) the Warrants, (ii) the Election to Purchase, or (iii) the Exercise Price therefor,
is received by the
Warrant Agent on
any date after
5:00 P.M., Eastern
Standard Time, or
on a date
that is not
a Trading Day,
the Warrants with
respect thereto will be
deemed to have
been received and
exercised on the
Trading Day next succeeding such date. “Business day” means
a day other than a Saturday or Sunday on which commercial Banks in New York City are
open for the general conduct of banking business. The “Exercise Date”
will be the date on which the materials in the foregoing sentence are received by the Warrant Agent
(if by 5:00 P.M., New York City time), or the following Trading Day (if after 5:00 P.M., New York City
time), regardless of any earlier date written on the materials. If the Warrants are received or deemed to be
received after the
Expiration Date, the
exercise thereof will
be null and
void and any
funds delivered to
the Company will be returned to the Holder or Participant, as the case may
be, as soon as practicable. In no event will interest accrue on any funds deposited
with the Company in respect of an exercise or attempted exercise
of Warrants.

 

(c) The Warrant Agent shall deposit all funds received by it in payment of the Exercise Price
for all Warrants in the account of the Company maintained with the Warrant Agent for
such purpose (or to such other account as directed by the Company in writing) and shall
advise the Company via telephone at the end of
each day on
which funds for
the exercise of any
Warrant are received
of the amount so
deposited to its
account. The Warrant Agent
shall promptly confirm such telephonic
advice to the
Company in writing.

 

(d) 
If less than all the Warrants evidenced by a surrendered Warrant Certificate are exercised,
the Warrant Agent shall split up the surrendered Warrant Certificate and return to
the Holder a Warrant Certificate evidencing the
Warrants that were not
exercised.

 

		3.3.2.	Issuance of
Warrant Shares.

 

(a) 
The Warrant Agent shall, no later than the Trading Day following the Exercise Date of any
Warrant, advise the Company in respect of (i) the number of Warrant Shares indicated
on the Election to Purchase as issuable upon such exercise with respect to such exercised
Warrants, (ii) the instructions of the Holder or
Participant, as the
case may be,
provided to the
Warrant Agent with
respect to the
delivery of the
Warrant Shares and the number of Warrants that remain outstanding after such
exercise, (iii) the amount of funds for which
the exercise of
such Warrant is
received, and (iv)
such other information
as the Company
shall reasonably request. The
Company shall deliver
any objection to
any Election to Purchase
within one (1) business day of
receipt of such notice.

 

    	 

    	 

    

 

(b)
The Warrant
Agent shall cause,
by no later
than 5:00 P.M.,
Eastern Standard Time,
on the third
Trading Day following the delivery of the Election to Purchase (provided the
payment of the Exercise Price has been submitted as required by Section 4.3.1) (such
date and time, the “Delivery Time”), to electronically transmit the
Warrant Shares issuable upon that exercise to DTC by crediting the account of DTC or of the
Participant, as the case may be, through its Deposit/Withdrawal at Custodian (DWAC) system. The
Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this
Warrant remains outstanding and exercisable.

 

3.3.3.         
Valid Issuance. All Warrant Shares issued by the Company upon the proper
exercise of a Warrant in conformity with this Warrant Agreement shall be validly issued, fully paid and
non-assessable.

 

3.3.4.         
No Fractional Exercise. No fractional Warrant Shares will be issued upon the
exercise of the Warrant. 

 

3.3.5.         
No Transfer Taxes. Issuance of Warrant Shares shall be made without charge to
the Holder
for any
issue or transfer
tax or other
incidental expense in
respect of the
issuance of such
Warrant Shares, all of which taxes and expenses shall be paid by the Company,
and such Warrant Shares shall be issued in
the name of
the Holder or
in such name
or names as
may be directed by
the Holder; provided, however, that in the event Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be accompanied by an assignment form
duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto. The Company shall not be required to issue
or deliver any certificate for shares of Common Stock upon the exercise of any Warrants until any such tax or governmental
charge shall have been paid (any such tax or governmental charge being payable by the Holder
of such
Warrant Certificate
at the time of
surrender) or until it
has been established
to the Company’s
reasonable satisfaction that no such tax or governmental charge is due. Additionally, the Company may
require payment from the Holder of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any split up, combination or exchange of Warrants. The Company shall pay all
Transfer Agent fees required for same-day processing of any Election to Purchase and all fees to the
Depository Trust Company (or another established clearing corporation performing similar functions)
required for same-day electronic
delivery of the Warrant Shares.

 

3.3.6.         
Date of Issuance. The Company will treat an exercising Holder as a beneficial
owner of the Warrant Shares as of the Exercise Date, except that, if the Exercise Date is a date when the
stock transfer books
of the Company
are closed, such
person shall be
deemed to have
become the holder
of such shares
at the open
of business on
the next succeeding
date on which
the stock transfer
books are open.

 

3.3.7.         
Restrictive Legend Events. (a) The Company shall use it reasonable best efforts
to maintain the
effectiveness of the
Registration Statement and
the current status
of the prospectus
included therein or to file and maintain the effectiveness of another registration
statement or to file a registration statement
and another current
prospectus covering the
Warrants and the
Warrant Shares at
any time that
the Warrants
are exercisable.
The Company shall
provide to the
Warrant Agent and
each Holder prompt
written notice of
any time that
the Company is
unable to deliver
the Warrant Shares
via DTC transfer
or otherwise without restrictive
legend because (i) the Commission has issued a stop order with respect to the Registration
Statement, (ii) the
Commission otherwise has suspended
or withdrawn the effectiveness
of the Registration Statement,
either temporarily or permanently, (iii) the Company has suspended or withdrawn the
effectiveness of the Registration Statement, either temporarily or permanently, (iv) the prospectus
contained in the
Registration Statement is
not available for
the issuance of
the Warrant Shares
to the Holder
or (v) otherwise (each a “Restrictive Legend Event”). To the extent that the Warrants cannot be exercised
as a result
of a Restrictive Legend
Event or a
Restrictive Legend Event
occurs after a
Holder has exercised
Warrants in accordance with the terms of the Warrants but prior to the delivery of the Warrant Shares, the
Company shall, at the election of the Holder, which shall be given within five (5) days of receipt of such
notice of the Restrictive Legend Event, either (A) rescind the previously submitted Election to Purchase
and the Company shall return all consideration paid by registered holder for such shares upon such
rescission, or (B) treat the attempted exercise as a cashless exercise as described in paragraph (b) below
and refund the cash portion of the exercise price to the Holder. Notwithstanding anything herein to the
contrary, the Company
shall not be
required to make
any cash payments
or net cash
settlement to the
Holder in lieu
of delivery of the Warrant
Shares.

 

    	 

    	 

    

 

(b) 
If a Restrictive Legend Event has occurred, the Warrant shall only be exercisable on a cashless
basis. Upon a “cashless exercise”, the Holder shall be entitled to receive
the number of Warrant Shares equal to the quotient
obtained by dividing (A-B) (X)
by (A), where:

 

	 	(A) =       	the last VWAP immediately preceding the date of exercise giving rise to the applicable “cashlessexercise”, as set forth in the applicable Election to Purchase (to clarify, the “last VWAP” will be the last VWAP as calculated over an entire Trading Day such that, in the event that this Warrant is exercised at a time that the Trading Market is open, the prior Trading Day’s VWAP shall be used in this calculation);
	 	 	 
	 	(B) = 	the Exercise Price of the Warrant, as adjusted as set forth herein; and
	 	(X) =	the number of Warrant Shares that would be issuable upon exercise of the Warrant in accordancewith the terms of the Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

If the Warrant Shares are issued
in such a cashless exercise, the Company acknowledges and agrees that, in accordance
with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the registered
characteristics of the Warrants being exercised and the Company agrees not to take any position contrary
thereto. Upon receipt of an Election to Purchase for a cashless exercise, the Warrant Agent will promptly
deliver a
copy of
the Election to
Purchase to the
Company to confirm
the number of
Warrant Shares issuable
in connection with the cashless exercise. The Company shall calculate and transmit to the Warrant Agent
in a written
notice, and the
Warrant Agent shall
have no duty,
responsibility or obligation
under this Section
to calculate, the
number of Warrant Shares
issuable in connection
with any cashless
exercise. The Warrant
Agent shall be entitled to rely conclusively on any such written notice provided by the Company, and the
Warrant Agent shall not be liable for any action taken, suffered or omitted to be taken by it in accordance
with such written instructions
or pursuant to this
Warrant Agreement.

 

3.3.8.         
Disputes. In the case of a dispute as to the determination of the Exercise Price or
the arithmetic calculation of the number of Warrant Shares issuable in connection with any exercise, the
Company shall promptly
deliver to the Holder
the number of Warrant
Shares that are not disputed.

 

3.3.9.         
[Reserved.]

 

    	 

    	 

    

 

3.3.10.     
Beneficial Ownership Limitation. The Company shall not affect any exercise of a
Warrant, and a
Holder shall not have
the right to
exercise any portion
of a Warrant,
pursuant to this
Section 3 or otherwise,
to the extent
that after giving
effect to such
issuance after exercise
as set forth
on the applicable Election to Purchase, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons,
“Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as
defined below). For
purposes of the
foregoing sentence, the
number of shares
of Common Stock
beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of
shares of Common Stock issuable upon exercise of such 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 such Warrant beneficially
owned by the Holder or any of its Affiliates or Attribution Parties 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 or Attribution Parties. Except
as set forth
in the preceding
sentence, for purposes
of this Section
3.3.10, beneficial ownership
shall be calculated
in accordance with
Section 13(d) of the
Exchange Act and the
rules and regulations promulgated
thereunder, it being acknowledged by the Holder that the Company is not representing to the
Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is
solely responsible for any schedules required to be filed in accordance therewith. To the extent that the
limitation contained in this Section 3.3.10 applies, the determination of whether a Warrant is exercisable
(in relation to
other securities owned
by the Holder
together with any
Affiliates and Attribution
Parties) and of which portion of
a 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 a Warrant
is exercisable (in relation to other
securities owned by the Holder together
with any Affiliates and
Attribution Parties) and of which portion of a Warrant is exercisable, in each case subject to the
Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the
accuracy of such determination. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. For purposes of this Section 3.3.10, in determining the number of outstanding
shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as
reflected in (A)
the Company’s most
recent periodic or
annual report filed
with the Commission,
as the case
may be, (B)
a more recent
public announcement by the
Company or (C) a
more recent written notice by
the Company or the Transfer Agent setting forth the number of shares of Common
Stock outstanding. Upon the written or oral request of a Holder, the Company shall
within two Trading Days confirm orally and in writing to
the Holder the
number of shares of Common Stock then
outstanding. In any
case, the number
of outstanding shares of Common Stock shall be determined after giving effect
to the conversion or exercise of securities of the Company, including such Warrant,
by the Holder or its Affiliates or Attribution Parties since the date as of which such
number of outstanding shares of Common Stock was reported. The “Beneficial
Ownership Limitation” shall be 4.99% (or, upon election by a Holder prior to the issuance of
any Warrants, 9.99%) 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 a Warrant. The
Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation
provisions of this Section 3.3.10, provided that the Beneficial Ownership Limitation in no event exceeds
9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the
issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the
provisions of this Section 3.3.10 shall continue to apply. Any increase in the Beneficial Ownership
Limitation will not be effective until the 61st day after such notice is delivered to the Company. The
provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict
conformity with the terms of this Section 3.3.10 to correct this paragraph (or any portion hereof) which
may be defective or inconsistent
with the intended Beneficial
Ownership Limitation herein contained or
to make changes or supplements necessary or desirable to properly give effect to such limitation. The
limitations contained in this paragraph
shall apply to a successor
holder of this Warrant.

 

		4.	Adjustments.

 

4.1.             
Adjustment upon Subdivisions or Combinations. If the Company at any time after the
Issuance Date subdivides (by any stock split, stock dividend, recapitalization, reorganization, scheme,
arrangement or otherwise) its outstanding shares of Common Stock into a greater number of shares, the
Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the
number of Warrant
Shares will be
proportionately increased. If
the Company at
any time after
the Issuance Date combines (by
any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or
otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price
in effect immediately prior to such combination will be proportionately increased and the number of
Warrant Shares will be proportionately decreased. Any adjustment under this Section 4.1 shall become
effective at the close of business on the date the subdivision or combination becomes effective. The
Company shall promptly notify Warrant Agent of any such adjustment and give specific instructions to
Warrant Agent with respect to any
adjustments to the warrant
register.

 

    	 

    	 

    

 

4.2.              
Adjustment for Other Distributions. In the event the Company shall fix a record date
for the making of a dividend or distribution to all holders of Common Stock of any
evidences of indebtedness or assets or subscription rights, options or warrants (excluding
those referred to in Section 4.1 or other dividends paid out of retained earnings),
then in each such case the Holder will, upon the exercise of Warrants, be entitled
to receive, in addition to the number of Warrant Shares issuable thereupon, and without
payment of any additional consideration therefor, the amount of such dividend or distribution, as
applicable, which such Holder would have held on the date of such exercise had such Holder been the
holder of record
of such Warrant
Shares as of
the date on
which holders of
Common Stock became
entitled to receive such dividend or distribution. Such adjustment shall be
made whenever any such distribution is made and
shall become effective immediately
after the record date mentioned
above.

 

4.3.             
Reclassification, Consolidation, Purchase, Combination, Sale or Conveyance. If, at
any time while the Warrants are outstanding, (a) the Company, directly or indirectly,
in one or more related transactions effects any merger or consolidation of the Company
with or into another person, (b) the Company, directly or indirectly, effects any sale,
lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (c) any, direct or indirect,
purchase offer, tender offer or exchange offer (whether by the Company or another person) is
completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their
shares for other securities, cash or property and has been accepted by the holders of 50% or more of the
outstanding Common Stock (not including any Common Stock held by the other person or other persons
making or party to, or associated or affiliated with the other persons making, such purchase offer, tender
offer or exchange
offer), (d) the
Company, directly or
indirectly, in one
or more related
transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange
pursuant to which the Common Stock is effectively converted into or exchanged for other securities,
cash or property, or (e) the Company, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another person
whereby such other person acquires more than 50% of the outstanding shares of Common Stock (not
including any shares of Common Stock held by the other person or other persons making or party to, or
associated or affiliated with the other persons making or party to, such stock or share purchase agreement
or other business
combination) (each a
“Fundamental Transaction”), then,
upon any subsequent
exercise of a
Warrant, each
Holder shall
have the right
to receive, for
each Warrant Share
that would have
been issuable upon
such exercise immediately
prior to the
occurrence of such
Fundamental Transaction, the
same amount and kind
of securities, cash
or property, if
any, of the
successor or acquiring
corporation or of
the Company, if
it is the
surviving corporation, and
any additional consideration
(the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common
Stock for which each Warrant is exercisable immediately prior to such Fundamental Transaction. For
purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to
apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect
of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of
any different components
of the Alternate
Consideration. If holders
of Common Stock
are given any
choice as to the securities, cash or property to be received in a Fundamental
Transaction, then the Holder shall be given the same choice as to the Alternate Consideration
that such Holder receives upon any exercise of each Warrant following such Fundamental
Transaction. The Company shall cause any successor entity in a Fundamental Transaction
in which the Company is not the survivor (the “Successor Entity”) and for
which stockholders received any equity securities of the Successor Entity and for which stockholders
received any equity securities of the Successor Entity, to assume in writing all of the obligations of the
Company under this Warrant Agreement in accordance with the provisions of this Section 4.3 pursuant to
written agreements and shall, upon the written request of such Holder, deliver to such Holder in exchange
for the applicable
Warrants created by
this Warrant Agreement
a security of
the Successor Entity
evidenced by a written instrument substantially similar in form and substance
to the Warrants which are exercisable for a
corresponding number of
shares of capital stock of
such Successor Entity
(or its parent entity),
if any, plus
any Alternate Consideration,
receivable as a
result of such
Fundamental Transaction by
a holder of
the number of shares of Common Stock for which the Warrants are exercisable
immediately prior to such Fundamental Transaction, and with an exercise price which
applies the Exercise Price hereunder to such shares of capital stock, if any, plus
any Alternate Consideration (but taking into account the relative value of the shares
of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital
stock plus
Alternative consideration
after that Fundamental
Transaction for the purpose
of protecting the
economic value of
such Warrant immediately
prior to the
consummation of such
Fundamental Transaction).
Upon the occurrence
of any such
Fundamental Transaction the
Successor Entity shall
succeed to, and be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this
Warrant Agreement and
the Warrants referring
to the “Company”
shall refer instead
to the Successor
Entity), and may exercise every right and power of the Company and shall assume all of the obligations of
the Company under this Warrant Agreement and the Warrants with the same effect as if such Successor
Entity had been named
as the Company herein and therein.
The Company shall instruct
the Warrant Agent in
writing to mail
by first class
mail, postage prepaid,
to each Holder,
written notice of
the execution of
any such amendment, supplement or agreement with the Successor Entity. Any supplemented
or amended agreement entered
into by the
successor corporation or
transferee shall provide
for adjustments, which
shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Section 4.3. The Warrant Agent
shall have no duty,
responsibility or obligation to
determine the correctness of
any provisions contained in such agreement or such notice, including but not
limited to any provisions relating either to the kind or amount of securities or other
property receivable upon exercise of warrants or with respect to the method employed
and provided therein for any adjustments, and shall be entitled to rely conclusively
for all purposes upon the provisions contained in any such agreement. The provisions of this
Section 4.3 shall
similarly apply to
successive reclassifications, changes,
consolidations, mergers, sales
and conveyances of the kind described above.

 

    	 

    	 

    

 

		4.4.	Other Events.
If any event
occurs of the
type contemplated by
the provisions of
Section

 

4.1 or 4.2 but not expressly
provided for by such provisions (including, without limitation, the granting of stock
appreciation rights, Adjustment Rights, phantom stock rights or other rights with equity features to
all holders of Common Stock for no consideration), then the Company’s Board of Directors will, at its
discretion and in good faith, make an adjustment in the Exercise Price and the number of Warrant Shares
or designate
such additional
consideration to be
deemed issuable upon
exercise of a
Warrant, so as
to protect the rights
of the registered
Holder. No adjustment
to the Exercise
Price will be
made pursuant to
more than one
sub-Section of this Section 4 in
connection with a single issuance.

 

4.5.             
Notices of Changes in Warrant. Upon every adjustment of the Exercise Price or the
number of Warrant Shares issuable upon exercise of a Warrant, the Company shall give prompt written
notice thereof to the Warrant Agent, which notice shall state the Exercise Price resulting from such
adjustment and the increase or decrease, if any, in the number of Warrant Shares purchasable at such price
upon the exercise of a Warrant, setting forth in reasonable detail the method of calculation and the facts
upon which such calculation is based. Upon the occurrence of any event specified in Sections 4.1 or 4.2,
then, in any such event, the Company shall give written notice to each Holder, at the last address set forth
for such holder in the Warrant Register, as of the record date or the effective date of the event. Failure to
give such notice, or any defect therein, shall not affect the legality or validity of such event. The Warrant
Agent shall be entitled to rely conclusively on, and shall be fully protected in relying on, any certificate,
notice or instructions
provided by the
Company with respect
to any adjustment
of the Exercise
Price or the
number of shares issuable upon exercise of a Warrant, or any related matter, and the Warrant Agent shall
not be liable for any action taken, suffered or omitted to be taken by it in accordance with any such
certificate, notice or instructions or pursuant to this Warrant Agreement. The Warrant Agent shall not be
deemed to have knowledge of any such adjustment unless and until it shall have received written notice
thereof from the Company.

 

5.                  
Restrictive Legends. In the event that a Warrant Certificate surrendered for
transfer bears a
restrictive legend, the
Warrant Agent shall
not register that
transfer until the
Warrant Agent has received an opinion
of counsel for the Company stating that such transfer may be made and indicating whether
the Warrants must
also bear a
restrictive legend upon
that transfer. The
Warrant Agent shall
not be required to effect any registration
of transfer or exchange which will result in the transfer of or delivery of a
Warrant Certificate for
a fraction of
a Warrant.

 

		6.	Other Provisions
Relating to Rights
of Holders of Warrants.

 

6.1.             
No Rights as Stockholder. Except as otherwise specifically provided herein, a Holder,
solely in its
capacity as a
holder of Warrants,
shall not be
entitled to vote
or receive dividends
or be deemed
the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant
Agreement be construed
to confer upon
a Holder, solely
in its capacity
as the registered
holder of Warrants,
any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any
corporate action (whether
any reorganization, issue
of stock, reclassification
of share capital,
consolidation, merger, conveyance or otherwise), receive notice of meetings,
receive dividends or subscription rights or rights
to participate in
new issues of
shares, or otherwise,
prior to the
issuance to the Holder
of the Warrant
Shares which it is then entitled
to receive upon the due
exercise of Warrants.

 

    	 

    	 

    

 

6.2.              
Reservation of Common Stock. The Company shall at all times reserve and keep
available a number
of its authorized
but unissued shares
of Common Stock
that will be
sufficient to permit
the exercise in full
of all outstanding Warrants issued pursuant
to this Warrant Agreement.

 

		7.	Concerning the
Warrant Agent and
Other Matters.

 

7.1.             
Any instructions given to the Warrant Agent orally, as permitted by any provision of
this Warrant Agreement,
shall be confirmed
in writing by
the Company as
soon as practicable.
The Warrant Agent shall not be
liable or responsible and shall be fully authorized and protected for acting, or failing to
act, in accordance with any oral instructions which do not conform with the written confirmation received
in accordance with this Section 7.1.

 

7.2.             
Whether or not any Warrants are exercised, for the Warrant Agent’s services as agent
for the Company hereunder, the Company shall pay to the Warrant Agent such fees as may be separately
agreed between the Company and Warrant Agent and the Warrant Agent’s reasonable out of pocket
expenses in connection
with this Warrant
Agreement, including, without
limitation, the reasonable
fees and expenses of the Warrant
Agent’s counsel. While the Warrant Agent endeavors to maintain out-of-pocket charges
(both internal and
external) at competitive
rates, these charges
may not reflect
actual out-of-pocket costs,
and may include
handling charges to
cover internal processing
and use of
the Warrant Agent’s
billing systems.

 

7.3.              
As agent for the Company hereunder the Warrant Agent: (a) shall have no duties or
obligations other than those specifically set forth herein or as may subsequently be agreed to in writing by
the Warrant Agent and the Company; (b) shall be regarded as making no representations and having no
responsibilities as to
the validity, sufficiency,
value, or genuineness
of the Warrants
or any Warrant
Shares; (c) shall not be obligated to take any legal action hereunder; (d) may rely on and shall be fully authorized
and protected in acting or failing to act upon any certificate, instrument, opinion, notice, letter, telegram,
telex, facsimile transmission
or other document
or security delivered
to the Warrant
Agent and believed
by it to
be genuine and
to have been
signed by the
proper party or
parties; (e) shall
not be liable
or responsible for
any recital or
statement contained in
the Registration Statement
or any other
documents relating thereto; (f)
shall not be liable or responsible for any failure on the part of the Company to comply with any of its
covenants and obligations
relating to the
Warrants, including without
limitation obligations under
applicable securities laws; (g)
may rely on
and shall be fully
authorized and protected
in acting or
failing to act in good faith
upon the written, telephonic
or oral instructions with respect
to any matter relating to
its duties as Warrant Agent covered by this Warrant Agreement (or supplementing or qualifying any such
actions) of officers of the Company, and is hereby authorized and directed to accept instructions with
respect to the performance of its duties hereunder from the Company or counsel to the Company, and may
apply to the Company, for advice or instructions in connection with the Warrant Agent’s duties hereunder,
and the Warrant Agent shall not be liable for any delay in acting while waiting for those instructions; any
applications by the Warrant Agent for written instructions from the Company may, at the option of the
Warrant Agent, set forth in writing any action proposed to be taken or omitted by the Warrant Agent under
this Warrant Agreement and the date on or after which such action shall be taken or such omission shall be
effective; the Warrant Agent shall not be liable for any action taken by, or omission of, the Warrant Agent
in accordance with
a proposal included
in such application on
or after the
date specified in
such application (which date shall
not be less than five business days after the date such application is sent to the Company,
unless the Company shall have consented in writing to any earlier date) unless prior to taking any such
action, the Warrant Agent shall
have received written instructions in response to such application specifying
the action to
be taken or
omitted; (h) may
consult with counsel
satisfactory to the
Warrant Agent, including
its in-house counsel, and the advice of such counsel shall be full and complete authorization and protection
in respect of any action taken, suffered, or omitted by it hereunder in good faith and in accordance with the
advice of such counsel; (i) may perform any of
its duties hereunder either directly or
by or through nominees, correspondents,
designees, or subagents, and it shall not be liable or responsible for any misconduct or negligence
on the part of any nominee, correspondent, designee, or subagent appointed with reasonable
care by it in connection with this Warrant Agreement, provided reasonable care was exercised in the
selection and continued appointment thereof; (j) is not authorized, and shall have no obligation, to pay any
brokers, dealers, or
soliciting fees to
any person; and
(k) shall not
be required hereunder
to comply with
the laws or regulations of any country other than the United States of America
or any political subdivision thereof.

 

    	 

    	 

    

 

7.4.              
(a) In the absence of gross negligence or willful or willful misconduct on its part, the
Warrant Agent shall
not be liable
for any action
taken, suffered, or
omitted by it
or for any
error of judgment
made by it in the performance of its duties under this Warrant Agreement. Anything in this Warrant
Agreement to the contrary notwithstanding,
in no event shall Warrant
Agent be liable for special, indirect, incidental, consequential or
punitive losses or damages of any kind whatsoever (including but not limited to
lost profits), even
if the Warrant
Agent has been
advised of the possibility
of such losses or
damages and regardless of the form
of action. Any liability of the Warrant Agent will be limited in the aggregate to the amount
of fees paid by the Company hereunder. The Warrant Agent shall not be liable for any failures,
delays or losses, arising
directly or indirectly out of conditions
beyond its reasonable
control including, but not limited
to, acts of government, exchange or market ruling, suspension of trading, work stoppages or
labor disputes, fires, civil disobedience,
riots, rebellions, storms, electrical or
mechanical failure, computer hardware
or software failure,
communications facilities failures
including telephone failure,
war, terrorism, insurrection, earthquakes,
floods, acts of God or similar occurrences.

 

(b) In
the event any question or dispute arises with respect to the proper interpretation of the
Warrants or the Warrant Agent’s duties under this Warrant Agreement or the rights of the Company or of
any Holder, the
Warrant Agent shall
not be required
to act and
shall not be
held liable or
responsible for its
refusal to act until the question or dispute has been judicially settled (and, if appropriate, it may file a suit
in interpleader or for a declaratory judgment for such purpose) by final judgment rendered by a court of
competent jurisdiction, binding on all persons interested in the matter which is no longer subject to review
or appeal, or settled by a written document in form and substance satisfactory to Warrant Agent and
executed by the Company and each such Holder. In addition, the Warrant Agent may require for such
purpose, but shall not be obligated to require, the execution of such written settlement by all the Holders
and all other
persons that may have an interest
in the settlement.

 

7.5.              
The Company
covenants to indemnify
the Warrant Agent
and hold it
harmless from and
against any loss, liability, claim or expense (“Loss”) arising out of or in connection with the Warrant
Agent’s duties under this Warrant Agreement, including the reasonable costs and expenses of defending
itself against any
Loss, unless such
Loss shall have
been determined by
a court of
competent jurisdiction to
be a result of
the Warrant Agent’s gross negligence,
bad faith or willful
misconduct.

 

		7.6.	Unless terminated
earlier by the
parties hereto, this
Agreement shall terminate
ninety

 

(90) days after the earlier
of the Expiration Date and the date on which no Warrants remain outstanding (the “Termination
Date”). On the business day following the Termination Date, the Agent shall deliver to
the Company any entitlements, if any, held by the Warrant Agent under this Warrant Agreement. The
Agent’s right to be reimbursed for fees, charges and out-of-pocket expenses as provided in this Section 7
shall survive the termination of
this Warrant Agreement.

 

7.7.             
If any provision
of this Warrant
Agreement shall be
held illegal, invalid,
or unenforceable by any court, this Warrant Agreement shall be construed and
enforced as if such provision had not been contained herein and shall be deemed an
Agreement among the parties to it to the full extent permitted
by applicable law.

 

7.8.             
The Company represents and warrants that: (a) it is duly incorporated and validly
existing under the laws of its jurisdiction of incorporation; (b) the offer and sale of the Warrants and the
execution, delivery and performance of all transactions contemplated thereby (including this Warrant
Agreement) have been duly authorized by all necessary corporate action and will not result in a breach of
or constitute a
default under the
articles of association,
bylaws or any
similar document of
the Company or
any indenture, agreement or instrument to which it is a party or is bound; (c) this Warrant Agreement has
been duly executed
and delivered by
the Company and
constitutes the legal,
valid, binding and
enforceable obligation of the Company; (d) the Warrants will comply in all
material respects with all applicable requirements of law; and (e) to the best of its
knowledge, there is no litigation pending or threatened as of the date
hereof in connection with
the offering of the
Warrants.

 

    	 

    	 

    

 

7.9.             
In the
event of inconsistency
between this Warrant
Agreement and the
descriptions in the
Registration Statement, as they may from time to time be amended, the terms of this Warrant Agreement
shall control.

 

7.10.           
Set forth
in Annex D
hereto is a
list of the
names and specimen
signatures of the
persons authorized to act for the Company under this Warrant Agreement (the
“Authorized Representatives”). The Company
shall, from time to
time, certify to
you the names
and signatures of
any other persons
authorized to act
for the Company under this
Warrant Agreement.

 

7.11.            Any
notice, statement or demand authorized by this Warrant Agreement to be given or made by the Warrant Agent or by the holder of
any Warrant to or on the Company, including without limitation, any Notice of Exercise, shall be delivered by e-mail, hand or
sent by registered or certified mail or overnight courier service, addressed (until another address is filed in writing by the
Company with the Warrant Agent) as set forth below and if to any holder any notice, statement or demand shall be given to the
last address set forth for such holder (if any) in the Warrant Register:

 

	 	AppTech
Payments Corp.	 
	 	5876 Owens Avenue,
Suite 100	 
	 	Carlsbad, CA 92008	 
	 	Attention: Luke
D’Angelo, Chief Executive Officer	 
	 	Email: Ldangelo@apptechcorp.com	 

 

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

 

	 	Nelson Mullins
Riley & Scarborough LLP	 
	 	101 Constitution
Ave NW, Suite 900	 
	 	Washington, DC
20001

Attention: Andy Tucker, Esq.	 
	 	Fax No: 202-689-2860	 
	 	Email: andy.tucker@nelsonmullins.com	 

 

Any notice, statement or demand
authorized by this Warrant Agreement to be given or made by the holder of any Warrant or by the Company to or on the Warrant Agent
shall be delivered by facsimile, hand or sent by registered or certified mail or overnight courier service, addressed (until another
address is filed in writing by the Warrant Agent with the Company), as follows:

 

	 	Transfer
Online, Inc.	 
	 	512 SE Salmon St.	 
	 	Portland, OR 97214	 
	 	Attn: Carolyn Hall	 
	 	Email: carolyn@tranferonline.com	 

 

Any notice or other communication or
deliveries hereunder shall be deemed given and effective on the earliest of (i) the time of transmission, if such notice or communication
is delivered via facsimile at the facsimile number or email at the email address set forth in this Section prior to 5:30 p.m. (New
York City time) on any date, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number or email at the email address set forth in this Section on a day that is not a Trading Day
or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing, if
sent by U.S. nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required
to be given.

 

    	 

    	 

    

 

7.12.            (a) This Warrant Agreement shall be governed by and construed in accordance with the
laws of the
State Oregon. All
actions and proceedings
relating to or
arising from, directly
or indirectly, this
Warrant Agreement may
be litigated in
courts located within
the City of Portland and State of
Oregon. The Company hereby submits to the personal jurisdiction of such courts and consents
that any service of process may be made by certified or registered mail, return receipt requested, directed
to the Company
at its address
last specified for
notices hereunder. Each
of the parties
hereto hereby waives
the right to a trial by jury in
any action or proceeding arising out of or relating
to this Warrant Agreement.

 

(b)
This Warrant Agreement
shall inure to
the benefit of
and be binding
upon the successors
and assigns of
the parties hereto. This Warrant Agreement may not be assigned, or otherwise transferred, in whole or in
part, by either party without the prior written consent of the other party, which the other party will not
unreasonably withhold, condition or delay; except that (i) consent is not required for an assignment or
delegation of duties
by Warrant Agent
to any affiliate
of Warrant Agent
and (ii) any
reorganization, merger, consolidation,
sale of assets
or other form
of business combination
by Warrant Agent
or the Company
shall not be deemed to constitute an assignment of this Warrant Agreement.
(c) No provision of this Warrant Agreement may
be amended, modified
or waived, except
in a written
document signed by
both parties. The
Company and the Warrant Agent may amend or supplement this Warrant Agreement without the consent
of any Holder
for the purpose
of curing any
ambiguity, or curing,
correcting or supplementing
any defective provision contained
herein or adding or changing any other provisions with respect to matters or questions arising
under this Agreement
as the parties
may deem necessary
or desirable and
that the parties
determine, in good
faith, shall not
adversely affect the
interest of the
Holders. All other
amendments and supplements
shall require the vote or written consent of Holders of at least 50.1% of the then outstanding Warrants and
the holders of at least 50.1% of the voting power of the Company’s voting securities, provided that
adjustments may be made to the Warrant terms and rights in accordance with Section 4 without such
consent.

 

7.13.           
Payment of Taxes. The Company will from time to time promptly pay all taxes and
charges that may
be imposed upon
the Company or
the Warrant Agent
in respect of
the issuance or
delivery of Warrant Shares upon the exercise of Warrants, but the Company may
require the Holders to pay any transfer taxes in respect of the Warrants or such shares.
The Warrant Agent may refrain from registering any transfer of Warrants or any delivery
of any Warrant Shares unless or until the persons requesting the registration or issuance
shall have paid to the Warrant Agent for the account of the Company the amount of such
tax or charge, if any, or shall have established to the reasonable satisfaction of the Company and
the Warrant Agent
that such tax or charge, if any,
has been paid.

 

		7.14.	Resignation of
Warrant Agent.

 

    	 

    	 

    

 

7.14.1.    
Appointment of Successor Warrant Agent. The Warrant Agent, or any successor
to it hereafter appointed, may resign its duties and be discharged from all further duties and liabilities
hereunder after giving thirty (30) days’ notice in writing to the Company, or such shorter period of time
agreed to
by the Company.
The Company may
terminate the services
of the Warrant
Agent, or any
successor Warrant Agent, after giving thirty (30) days’ notice in writing to
the Warrant Agent or successor Warrant Agent, or such shorter period of time as agreed.
If the office of the Warrant Agent becomes vacant by resignation,
termination or incapacity
to act or
otherwise, the Company
shall appoint in
writing a successor
Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within
a period of 30 days after it has been notified in writing of such resignation or incapacity by the Warrant
Agent, then the
Holder may apply
to any court
of competent jurisdiction
for the appointment
of a successor
Warrant Agent. Pending appointment of a successor to such Warrant Agent, either by the Company or by
such a court, the duties of the Warrant Agent shall be carried out by the Company. Any successor Warrant Agent (but not
including the initial Warrant Agent), whether appointed by the Company or by such court, shall
be a person organized and existing under the laws of any state of the United States of America, in
good standing, and
authorized under such
laws to exercise
corporate trust powers
and subject to
supervision or examination by federal or state authority. After appointment,
any successor Warrant Agent shall be vested with
all the authority, powers,
rights, immunities, duties,
and obligations of its predecessor Warrant
Agent with like effect as if originally named as Warrant Agent hereunder, without any further act or deed,
and except for executing
and delivering documents as
provided in the
sentence that follows,
the predecessor Warrant Agent shall
have no further duties, obligations, responsibilities or liabilities hereunder, but shall
be entitled to all rights that survive the termination of this Warrant Agreement and the resignation or
removal of the Warrant Agent, including but not limited to its right to indemnity hereunder. If for any
reason it
becomes necessary
or appropriate or at
the request of
the Company, the predecessor
Warrant Agent shall execute and
deliver, at the expense of the Company, an instrument transferring to such successor Warrant
Agent all the
authority, powers, and
rights of such predecessor Warrant
Agent hereunder; and upon
request of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver any
and all instruments in writing for more fully and effectually vesting in and confirming to such successor
Warrant Agent all such authority, powers,
rights, immunities, duties, and obligations.

 

7.14.2. 
   Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall
be appointed, the Company shall give notice thereof to the predecessor Warrant Agent and the transfer
agent for the Common Stock not
later than the effective date of
any such appointment.

 

7.14.3.    
Merger or Consolidation of Warrant Agent. Any person into which the Warrant
Agent may be merged or converted or with which it may be consolidated or any person resulting from any
merger, conversion or consolidation to which the Warrant Agent shall be a party or any person succeeding
to the shareowner services business of the Warrant Agent or any successor Warrant Agent shall be the
successor Warrant Agent under this Warrant Agreement, without any further act or deed. For purposes of
this Warrant
Agreement, “person”
shall mean any
individual, firm, corporation,
partnership, limited liability
company, joint venture, association, trust or other entity, and shall include any successor (by merger or
otherwise) thereof or
thereto.

 

		8.	Miscellaneous Provisions.

 

8.1.              
Persons Having
Rights under this
Warrant Agreement. Nothing
in this Warrant
Agreement expressed and nothing that may be implied from any of the provisions hereof is intended, or
shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto and
the Holders any right, remedy, or claim under or by reason of this Warrant Agreement or of any covenant,
condition, stipulation, promise, or agreement
hereof.

 

    	 

    	 

    

 

8.2.               
Examination of the Warrant Agreement. A copy of this Warrant Agreement shall be
available at all reasonable times at the office of the Warrant Agent designated for such purpose for
inspection by any Holder. Prior to such inspection, the Warrant Agent may require any such holder to
provide reasonable evidence of its
interest in the Warrants.

 

8.3.             
Counterparts. This Warrant Agreement may be executed in any number of original,
facsimile or electronic
counterparts and each
of such counterparts
shall for all
purposes be deemed
to be an
original, and all such
counterparts shall together constitute
but one and
the same instrument.

 

8.4.              
Effect of
Headings. The Section
headings herein are
for convenience only
and are not
part of this Warrant
Agreement and shall not
affect the interpretation thereof.

 

		9.	Certain Definitions.
As used herein,
the following terms
shall have the
following meanings:

 

(a)
“Adjustment Right”
means any right
granted with respect
to any securities
issued in connection
with, or with respect to, any
issuance, sale or delivery (or deemed issuance, sale or delivery in accordance with Section
4) of Common Stock (other than rights of the type described in Section 4.2 and 4.3 hereof) that
could result in a decrease in the net consideration received by the Company in connection with, or with
respect to, such securities (including, without limitation, any cash settlement rights, cash adjustment or
other similar rights) but excluding anti-dilution and other similar rights (including pursuant to Section 4.4
of this Agreement).

 

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

 

(c)  “Trading Market” means NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global
Market, the Nasdaq Global
Select Market or the New
York Stock Exchange.

 

(d)
“VWAP” means,
for any date,
the price determined
by the first
of the following
clauses that applies:
(a) if the
Common Stock is
then listed or
quoted on a
Trading Market, the
daily volume weighted
average price of the Common Stock
for such date (or the nearest preceding date) on the Trading Market on which the Common
Stock is then
listed or quoted as reported
by Bloomberg L.P. (based on
a Trading Day from 9:30

 a.m.
(New York City
time) to 4:02
p.m. (New York
City time)), (b)
if OTCQB or
OTCQX is not
a Trading Market, the volume
weighted average price of the Common Stock for such date (or the nearest preceding date)
on OTCQB or
OTCQX as applicable,
(c) if the
Common Stock is
not then listed
or quoted for
trading on
OTCQB or
OTCQX and if
prices for the
Common Stock are
then reported in
the “Pink Sheets”
published by OTC Markets Group, Inc. (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price per share
of the Common Stock so reported, or (d) in all other cases, the fair
market value of a share of
Common Stock as
determined by an
independent appraiser selected in
good faith by the holders of a majority in interest of the Warrants then outstanding
and reasonably acceptable to the Company,
the fees and expenses of which
shall be paid by the Company

 

[Signature
Page to Follow]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, this Warrant Agent Agreement has been duly executed by the parties hereto
as of the day
and year first above written.

 

	 	APPTECH PAYMENTS CORP.
	 	 
	 	By:	/s/ Luke D’Angelo
	 	Name:	Luke D’Angelo
	 	Title:	Chief Executive Officer
	 	 	 
	 	TRANSFER ONLINE, INC.
	 	 
	 	By:	/s/ Lori Livingston
	 	 	Name: Lori Livingston
	 	Title:	President/CEO

 

Annex A - Form of Global Certificate

Annex B – Notice of Exercise

Annex C - Form of Certificated Warrant

Annex D - Authorized Representatives

Annex E - Form of Warrant Certificate
Request Notice

 

    	 

    	 

    

 

ANNEX
A

 

[FORM OF GLOBAL CERTIFICATE]

 

[UNLESS
THIS CERTIFICATE
IS PRESENTED
BY AN AUTHORIZED
REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY,
A NEW YORK
CORPORATION (“DTC”), TO
APPTECH PAYMENTS CORP. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE,
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME
AS IS REQUESTED
BY AN AUTHORIZED
REPRESENTATIVE OF DTC
(AND ANY
PAYMENT IS
MADE TO
CEDE & CO.
OR TO SUCH
OTHER ENTITY AS
IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE
OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

 

APPTECH PAYMENTS CORP.

WARRANT CERTIFICATE 

NOT
EXERCISABLE AFTER JANUARY 4,
2027

 

This certifies
that the person whose name and address appears below, or registered assigns, is the registered
owner of the number of Warrants set forth below. Each Warrant entitles its registered holder to
purchase from AppTech Payments Corp., a company incorporated under the laws of the State of Delaware (the
“Company”), at any
time prior to
5:00 P.M. (Eastern
Standard Time) on
January 4, 2027, one share
of common stock, par value $0.001
per share, of the Company (each, a “Warrant Share” and collectively, the
“Warrant Shares”), at
an exercise price
of $5.19 per
share, subject to
possible adjustments as
provided in the
Warrant Agreement (as
defined below).

 

This
Warrant Certificate, with
or without other
Warrant Certificates, upon
surrender at the
designated office of the Warrant Agent, may be exchanged for another Warrant Certificate or Warrant
Certificates evidencing the same number of Warrants as the Warrant Certificate or Warrant Certificates
surrendered. A transfer
of the Warrants
evidenced hereby may
be registered upon
surrender of this
Warrant Certificate at the designated office of the Warrant Agent by the registered
holder in person or by a duly authorized attorney, properly endorsed or accompanied
by proper instruments of transfer, a signature guarantee, and such other and further
documentation as the Warrant Agent may reasonably request and duly
stamped as may
be required by
the laws of
the State of
New York and
of the United
States of America.

 

The terms
and conditions of the Warrants and the rights and obligations of the holder of this Warrant
Certificate are set forth in the Warrant Agent Agreement dated as of January 4, 2022 (the “Warrant
Agreement”) between the Company and Transfer Online, Inc. (the “Warrant Agent”). A copy of the
Warrant Agreement is available
for inspection during
business hours at
the office of
the Warrant Agent.

 

This Warrant
Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned
by an authorized signatory of the
Warrant Agent.

 

WITNESS
the facsimile signature
of a proper officer of the
Company.

 

	 	 	 	APPTECH
PAYMENTS CORP.
	 	 	 	 
	 	 	By: 	 
	 	 	Name:	 Luke D’Angelo
	 	 	Title: 	Chief Executive Officer
	Dated:	 	 	 	 
	 	 	 	 
	Countersigned:	 	 	 

 

    	 

    	 

    

 

	TRANSFER ONLINE, INC.	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

	PLEASE	DETACH	HERE

 

Certificate No.:1 Number of Warrants: 3,614,458

 

WARRANT CUSIP NO.: 03834B127_______________

 

	[Name &
Address of Holder]	APPTECH PAYMENTS
CORP.
	 	 
	 	Transfer Online, Inc., Warrant
Agent
	 	 
	 	By mail:
	 	 
	 	 
	 	By hand or overnight courier:	 

 

    	 

    	 

    

 

ANNEX B

 

NOTICE OF EXERCISE

 

	TO:	APPTECH PAYMENTS CORP.

 

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

 

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

 

[ ] in lawful money of the United
States; or

 

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

 

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

 

 

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

 

 

 

 

[SIGNATURE OF HOLDER]

 

	Name of Investing Entity:	 
	Signature of Authorized Signatory of Investing Entity:	 
	Name of Authorized Signatory:	 
	Title of Authorized Signatory:	 
	Date:	 

 

    	 

    	 

    

 

ANNEX C

 

[FORM OF CERTIFICATED WARRANT]

 

COMMON STOCK PURCHASE WARRANT

 

APPTECH PAYMENTS CORP.

 

	Warrant Shares: [_______]	Initial Exercise Date: January 4, 2022

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”)
certifies that, for value received, _____________ or its assigns (the “Holder”) is entitled, upon the terms and
subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date hereof (the “Initial
Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on January 4, 2027 (the “Termination
Date”) but not thereafter, to subscribe for and purchase from AppTech Payments Corp., a Delaware corporation (the “Company”),
up to ______ shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price
of one Warrant Share under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). This Warrant shall initially
be issued and maintained in the form of a security held in book-entry form and the Depository Trust Company or its nominee (“DTC”)
shall initially be the sole registered holder of this Warrant, subject to a Holder’s right to elect to receive a Warrant in certificated
form pursuant to the terms of the Warrant Agency Agreement, in which case this sentence shall not apply.

 

Section 1. Definitions. In addition to
the terms defined elsewhere in this Warrant, the following terms have the meanings indicated in this Section 1:

 

“Affiliate” means
any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

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

 

“Board of Directors”
means the board of directors of the Company.

 

“Business Day” means
any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by
law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required by
law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential employee” or any other
similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so
long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally
are open for use by customers on such day.

 

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

 

“Common Stock” means
the common stock of the Company, par value $0.001 per share, and any other class of securities into which such securities may hereafter
be reclassified or changed.

 

    	 

    	 

    

 

“Common Stock Equivalents”
means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, right, option, warrant 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.

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exempt Issuance”
means the issuance of (i) shares of Common Stock or options to employees, officers or directors of the Company or consultants to
the Company pursuant to any stock or option plan or other written agreement duly adopted for such purpose, by a majority of the
non-employee members of the Board of Directors or a majority of the members of a committee of non-employee directors established
for such purpose for services rendered to the Company, provided, however, such issuance (A) shall be pursuant to a written plan
duly approved and adopted by the Board and the stockholders of the Company and (B) shall be at no less than fair market value (as
measured by the closing price of the Common Stock on the Trading Market on the date of issuance) ; (ii) securities upon the exercise
or exchange of or conversion of any securities exercisable or exchangeable for or convertible into Common Stock issued and outstanding
on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement to increase
the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities (other than
in connection with stock splits or combinations) or to extend the term of such securities; (iii) securities issued pursuant to
acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company or securities issued
in financing transactions, the primary purpose of which is to finance acquisitions or strategic transactions approved by a majority
of the disinterested directors of the Company, , and provided that any such issuance shall only be to a Person (or to the equity
holders of a Person) which is, or was, itself or through its subsidiaries, an operating company or an owner of an asset , but shall
not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to a person
or an entity whose primary business is investing in securities; (iv) shares of Common Stock, options or convertible securities
issued to banks, equipment lessors or other financial institutions, or to real property lessors, pursuant to a debt financing,
equipment leasing or real property leasing transaction approved by a majority of the disinterested directors of the Company but
shall not include a transaction in which the company is primarily issuing Common Stock or Common Stock Equivalents primarily for
the purpose of raising capital or to a person or an entity whose primary business is investing in securities; (v) shares of Common
Stock, options or convertible securities issued in connection with the provision of goods or services pursuant to transactions
approved by a majority of the disinterested directors of the Company but shall not include a transaction in which the company is
issuing Common Stock or Common Stock Equivalents primarily for the purpose of raising capital or to a person or an entity whose
primary business is investing in securities; and (vi) shares of Common Stock, options or convertible securities issued in connection
with sponsored research, collaboration, technology license, development, investor or public relations, marketing or other similar
agreements or strategic partnerships approved by a majority of the disinterested directors of the Company but shall not include
a transaction in which the Company is primarily issuing Common Stock or Common Stock Equivalents primarily for the purpose of raising
capital or to a person or an entity whose primary business is investing in securities.

 

“Person” means an
individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company,
joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Registration Statement”
means the Company’s registration statement on Form S-1, as amended (File No.333-253160).

 

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

 

“Subsidiary” means
any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company formed
or acquired after the date hereof.

 

“Trading Day” means
a day on which the Common Stock is traded on a Trading Market.

 

    	 

    	 

    

 

“Trading Market”
means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question:
the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange,
or OTCQB or OTCQX (or any successors to any of the foregoing).

 

“Transfer Agent”
means Transfer Online, Inc., the current transfer agent of the Company, with a mailing address of 512 SE Salmon St., Portland,
OR 97214 and a telephone number of (503) 227-2950 and facsimile number of (503) 227-6874, and any successor transfer agent of the
Company.

 

“Underwriting Agreement”
means the underwriting agreement, dated as of _________2021, among the Company and EF Hutton, division of Benchmark Investments,
LLC, as representative of the underwriters named therein, as amended, modified or supplemented from time to time in accordance
with its terms.

 

“Variable Rate Transaction”
means a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable
or exercisable for, or include the right to receive, additional shares of Common Stock either (A) at a conversion price, exercise
price or exchange rate or other price that is based upon, and/or varies with, the trading prices of or quotations for the Common
Stock at any time after the initial issuance of such debt or equity securities or (B) with a conversion, exercise or exchange price
that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence
of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock
or (ii) enters into, or effects a transaction under, any agreement, including, but not limited to, an equity line of credit, whereby
the Company may issue securities at a future determined price.

 

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

 

“Warrant Agency Agreement”
means that certain warrant agency agreement, dated on or about the Initial Exercise Date, between the Company and the Warrant Agent.

 

“Warrant Agent” means
the Transfer Agent and any successor warrant agent of the Company.

 

“Warrants” means
this Warrant and other Common Stock purchase warrants issued by the Company pursuant to the Registration Statement.

 

Section 2. Exercise.

 

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

 

    	 

    	 

    

 

Notwithstanding the foregoing in this Section
2(a), a holder whose interest in this Warrant is a beneficial interest in certificate(s) representing this Warrant held in book-entry
form through DTC (or another established clearing corporation performing similar functions), shall effect exercises made pursuant
to this Section 2(a) by delivering to DTC (or such other clearing corporation, as applicable) the appropriate instruction form
for exercise, complying with the procedures to effect exercise that are required by DTC (or such other clearing corporation, as
applicable), subject to a Holder’s right to elect to receive a Warrant in certificated form pursuant to the terms of the Warrant
Agency Agreement, in which case this sentence shall not apply.

 

(b)         
Exercise Price. The exercise price per Warrant Share under this Warrant shall be $[__],1 subject to
adjustment hereunder (the “Exercise Price”), provided that in no case shall the exercise price be less than the
par value of the Common Stock. The Holder shall not be entitled to the return or refund of all, or any portion, of such pre-paid
aggregate exercise price under any circumstance or for any reason whatsoever, including in the event this Warrant shall not have
been exercised prior to the Termination Date.

 

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

 

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

 

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

 

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

 

Notwithstanding anything herein to the contrary,
but without limiting the rights of a Holder to receive Warrant Shares on a “cashless exercise” pursuant to this Section
2(c) or to receive cash payments pursuant to Section 3(d)(i) and Section 3(d)(iv) herein, the Company shall not be required to
make any cash payments or net cash settlement to the Holder in lieu of delivery of the Warrant Shares. If Warrant Shares are issued
in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the
Warrant Shares shall take on the registered characteristics of the Warrants being exercised. The Company agrees not to take any
position contrary to this Section 2(c).

 

(1) 125% of the public offering price
per unit sold in this offering.

 

    	 

    	 

    

 

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

(d)          Mechanics of Exercise.

 

(i)            Delivery of Warrant
Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent
to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository Trust Company through
its Deposit and Withdrawal at Custodian system (“DWAC”) if the Transfer Agent is then a participant in such system
and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant
Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise by physical delivery of a certificate,
registered in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which
the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that
is the earliest of (i) two (2) Trading Days after the delivery to the Company of the Notice of Exercise, (ii) one (1) Trading Day
after delivery of the aggregate Exercise Price to the Company and (iii) the number of Trading Days comprising the Standard Settlement
Period after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”).
Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record
of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant
Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within
the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period following
delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to
a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and
not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date
of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such
liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered
or Holder rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so
long as this Warrant remains outstanding and exercisable. As used herein, “Standard Settlement Period” means the standard
settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock
as in effect on the date of delivery of the Notice of Exercise. Notwithstanding the foregoing, with respect to any Notice(s) of
Exercise delivered on or prior to 12:00 p.m. (New York City time) on the Initial Exercise Date, which may be delivered at any time
after the time of execution of the Underwriting Agreement, the Company agrees to deliver the Warrant Shares subject to such notice(s)
by 4:00 p.m. (New York City time) on the Initial Exercise Date and the Initial Exercise Date shall be the Warrant Share Delivery
Date for purposes hereunder, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise)
is received by such Warrant Share Delivery Date.

 

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

 

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

 

    	 

    	 

    

 

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

 

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

  

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

 

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

 

    	 

    	 

    

 

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

 

Section 3. Certain Adjustments.

 

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

 

    	 

    	 

    

 

(b)          Subsequent Equity Sales. If the
Company or any Subsidiary thereof, as applicable, at any time while this Warrant is outstanding, shall sell, enter into an agreement
to sell, or grant any option to purchase, or sell, enter into an agreement to sell, or grant any right to reprice, or otherwise
dispose of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any Common Stock or Common
Stock Equivalents, at an effective price per share less than the Exercise Price then in effect (such lower price, the “Base
Share Price” and such issuances collectively, a “Dilutive Issuance”) (it being understood and agreed
that if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase
price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options
or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective
price per share that is less than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise
Price on such date of the Dilutive Issuance at such effective price), then simultaneously with the consummation (or, if earlier,
the announcement) of each Dilutive Issuance the Exercise Price shall be reduced and only reduced to equal the Base Share Price
provided that the Base Share Price shall not be less than $4.15 (subject to adjustment for reverse and forward stock splits, recapitalizations
and similar transactions following the Initial Issuance Date). Notwithstanding the foregoing, no adjustments shall be made, paid
or issued under this Section 3(b) in respect of an Exempt Issuance. The Company shall notify the Holder, in writing, no later than
three Trading Days following the issuance or deemed issuance of any shares of Common Stock or Common Stock Equivalents subject
to this Section 3(b), indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price
and other pricing terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether
or not the Company provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon the occurrence of any Dilutive Issuance,
the Holder is entitled to receive a number of Warrant Shares based upon the Base Share Price regardless of whether the Holder accurately
refers to the Base Share Price in the Notice of Exercise. If the Company enters into a Variable Rate Transaction, the Company shall
be deemed to have issued shares of Common Stock or Common Stock Equivalents at the lowest possible price, conversion price or exercise
price at which such securities may be issued, converted or exercised.

 

(c)          Subsequent Rights Offerings. In
addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Common Stock
Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of
Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to
such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares
of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including
without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant,
issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Common Stock
are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, that, to the extent that the Holder’s
right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then
the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of
Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance
for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership
Limitation).

 

(d)          Pro Rata Distributions. During
such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets
(or rights to acquire its assets) to holders 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, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance
of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that
the Holder would have participated therein if the Holder had held the number of Warrant Shares acquirable upon complete exercise
of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation)
immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which
the record holders of Common Stock are to be determined for the participation in such Distribution (provided, however, that, to
the extent that the Holder’s right to participate in any such Distribution would result in the Holder exceeding the Beneficial
Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial
ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall
be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder
exceeding the Beneficial Ownership Limitation). To the extent that this Warrant has not been partially or completely exercised
at the time of such Distribution, such portion of the Distribution shall be held in abeyance for the benefit of the Holder until
the Holder has exercised this Warrant.

 

    	 

    	 

    

 

(e)          Fundamental Transaction. If, at
any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects
any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale,
lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series
of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company
or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares
for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding shares of Common
Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off, merger or scheme of arrangement) with another Person or group of Persons whereby such other Person
or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the
other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock
or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any
subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable
upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard
to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of capital stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to
apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one Warrant Share in
such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable
manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are
given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given
the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction.
Notwithstanding anything to the contrary, in the event of a Fundamental Transaction, the Company or any Successor Entity (as defined
below) shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation of the
Fundamental Transaction (or, if later, the date of the public announcement of the applicable Fundamental Transaction), purchase
this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value (as defined below) of the
remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction; provided, however,
that, if the Fundamental Transaction is not within the Company’s control, including not approved by the Company’s Board of Directors,
Holder shall only be entitled to receive from the Company or any Successor Entity the same type or form of consideration (and in
the same proportion), at the Black Scholes Value of the unexercised portion of this Warrant, that is being offered and paid to
the holders of Common Stock of the Company in connection with the Fundamental Transaction, whether that consideration be in the
form of cash, stock or any combination thereof, or whether the holders of Common Stock are given the choice to receive from among
alternative forms of consideration in connection with the Fundamental Transaction; provided, further, that if holders of Common
Stock of the Company are not offered or paid any consideration in such Fundamental Transaction, such holders of Common Stock will
be deemed to have received Common Stock of the Successor Entity (which Entity may be the Company following such Fundamental Transaction)
in such Fundamental Transaction. “Black Scholes Value” means the value of this Warrant based on the Black-Scholes
Option Pricing Model obtained from the “OV” function on Bloomberg determined as of the day of consummation of
the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S.
Treasury rate for a period equal to the time between the date of the public announcement of the applicable Fundamental Transaction
and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the
HVT function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately following the
public announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall
be the greater of (i) the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration,
if any, being offered in such Fundamental Transaction and (ii) the highest VWAP during the period beginning on the Trading Day
immediately preceding the announcement of the applicable Fundamental Transaction (or the consummation of the applicable Fundamental
Transaction, if earlier) and ending on the Trading Day of the Holder’s request pursuant to this Section 3(e) and (D) a remaining
option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination
Date and (E) a zero cost of borrow. The payment of the Black Scholes Value will be made by wire transfer of immediately available
funds (or such other consideration) within the later of (i) five (5) Business Days of the Holder’s election and (ii) the date of
consummation of the Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which
the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company
under this Warrant in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance
reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction
and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced
by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number
of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the Warrant Shares acquirable and receivable
upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction,
and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account
the relative value of the Warrant Shares pursuant to such Fundamental Transaction and the value of such shares of capital stock,
such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant
immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance
to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted
for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein.

 

    	 

    	 

    

 

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

 

(g)          Notice to Holder.

 

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

 

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

 

    	 

    	 

    

 

 (h)         Voluntary Adjustment
by Company. Subject to the rules and regulations of the Trading Market, the Company may at any time during the term of this
Warrant, subject to the prior written consent of the Holder, reduce the then current Exercise Price to any amount and for any period
of time deemed appropriate by the board of directors of the Company.

 

Section 4. Transfer of Warrant.

 

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

 

(b)          New Warrants. If this Warrant is
not held in global form through DTC (or any successor depositary), this Warrant may be divided or combined with other Warrants
upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations
in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a),
as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or
Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued
on transfers or exchanges shall be dated the Initial Issuance Date of this Warrant and shall be identical with this Warrant except
as to the number of Warrant Shares issuable pursuant thereto.

 

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

  

Section 5. Miscellaneous.

 

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

 

(b)          Loss, Theft, Destruction or Mutilation
of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting
of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

(c)          Saturdays, Sundays, Holidays, etc.
If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be
a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

 

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

 

    	 

    	 

    

 

Except and to the extent as waived or consented
to by the Holder, the Company shall not by any action, including, without limitation, amending its articles of incorporation or
through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good
faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to
protect the rights of the Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing,
the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately
prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction
thereof, as may be necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking any action which would result
in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall
obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body
or bodies having jurisdiction thereof.

 

(e)          Governing Law. All questions concerning
the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees
that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Warrant
(whether brought against a party hereto or their respective affiliates, directors, officers, stockholders, partners, members, employees
or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein,
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for
such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good
and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to
serve process in any other manner permitted by law. If either party shall commence an action, suit or proceeding to enforce any
provisions of this Warrant, the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for
their reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such
action or proceeding.

 

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

 

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

 

    	 

    	 

    

 

(h)          Notices. Any and all
notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation, any Notice
of Exercise, shall be in writing and delivered personally, by facsimile or e-mail, or sent by a nationally recognized overnight
courier service, addressed to the Company, at 5876 Owens Avenue. Suite 100, Carlsbad, CA 92008, Attention: Luke D’Angelo, Chief
Executive Officer, facsimile number: _________, email address: ___________, or such other facsimile number, email address or address
as the Company may specify for such purposes by notice to the Holders. Any and all notices or other communications or deliveries
to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile or e-mail, or sent by a nationally
recognized overnight courier service addressed to each Holder at the facsimile number e-mail address or address of such Holder
appearing on the books of the Company. Any notice or other communication or deliveries hereunder shall be deemed given and effective
on the earliest of (i) the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number
or via e-mail at the e-mail address set forth in this Section prior to 5:30 p.m. (New York City time) on any date, (ii) the next
Trading Day after the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number
or via e-mail at the e-mail address set forth in this Section on a day that is not a Trading Day or later than 5:30 p.m. (New York
City time) on any Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given. Notwithstanding
any other provision of this Warrant, where this Warrant provides for notice of any event to the Holder, if this Warrant is held
in global form by DTC (or any successor Depositary), such notice shall be sufficiently given if given to DTC (or any successor
depositary) pursuant to the procedures of DTC (or such successor depositary), To the extent that any notice provided hereunder
constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously
file such notice with the Commission pursuant to a Current Report on Form 8-K, and such filing shall constitute notice to any Holder
who holds a certificated Warrant.

 

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

 

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

 

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

 

(l)           Amendment. This Warrant may be
modified or amended or the provisions hereof waived with the written consent of the Company, on the one hand, and the Holder or
the beneficial owner of this Warrant, on the other hand.

 

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

 

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

 

(o)          Warrant Agency Agreement. If this
Warrant is held in global form through DTC (or any successor depositary), this Warrant is issued subject to the Warrant Agency
Agreement. To the extent any provision of this Warrant conflicts with the express provisions of the Warrant Agency Agreement, the
provisions of this Warrant shall govern and be controlling.

 

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

 

(Signature Page
Follows)

 

    	 

    	 

    

 

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

 

	 	AppTech
Payments Corp.
	 	 	 
	 	By:	 
	 	Name: 	Luke D’Angelo
	 	Title:	Chief Executive
Officer, President

  

    	 

    	 

    

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

TO: APPTECH PAYMENTS CORP.

 

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

 

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

 

☐
in lawful money of the United States; or

 

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

 

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

 

 

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

 

 

 

 

[SIGNATURE OF HOLDER]

 

	Name of Investing Entity:	 

 

	Signature of Authorized Signatory of Investing Entity:	 

 

	Name of Authorized Signatory:	 

 

	Title of Authorized Signatory:	 

 

	Date:	 	 

 

 

    	 

    	 

    

 

EXHIBIT B

 

ASSIGNMENT FORM

 

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

 

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

 

	Transferee’s
Name:	 	 
	 	 	(Please Print)
	 	 	 
	Transferee’s Address:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Phone Number	 	 
	Email Address	 	 
	 	 	 
	Dated: ______________ ___,
_______	 	 
	Transferor’s Name:	 	 
	Transferor’s Signature:	 	 
	Transferor’s Address:	 	 
	 	 	 
	 	 	 
	 	 	 

 

    	 

    	 

    

 

ANNEX
D

 

AUTHORIZED
REPRESENTATIVES

 

	Name	Title	Signature
	Luke D’Angelo	Chief
Executive Officer	 

 

    	 

    	 

    

 

ANNEX E

 

Form of Warrant Certificate Request Notice

 

WARRANT CERTIFICATE REQUEST NOTICE

 

To: Transfer Online, Inc., as Warrant
Agent for AppTech Payments Corp. (the “Company”)

 

The undersigned Holder of Common
Stock Purchase Warrants (“Warrants”) in the form of Global Warrants issued by the Company hereby elects to receive a
Definitive Certificate evidencing the Warrants held by the Holder as specified below:

 

	 	1.	Name of Holder of Warrants in form of Global Warrants: ____________________________________    
	 	2.	Name of Holder in Definitive Certificate (if different from name of Holder of Warrants in form of Global Warrants):   __________________________________________________________________________________    
	 	3.	Number of Warrants in name of Holder in form of Global Warrants: ___________________________    
	 	4.	Number of Warrants for which Definitive Certificate shall be issued: __________________________    
	 	5.	Number of Warrants in name of Holder in form of Global Warrants after issuance of Definitive   Certificate, if any: ___________________________________________________________________

 

	 	6.	Definitive Certificate shall be delivered to the following address:

 

	 	 	 

 

	 	 	 

 

	 	 	 

 

	 	 	 

 

The undersigned hereby acknowledges
and agrees that, in connection with this Warrant Exchange and the issuance of the Definitive Certificate, the Holder is deemed
to have surrendered the number of Warrants in form of Global Warrants in the name of the Holder equal to the number of Warrants
evidenced by the Definitive Certificate.

 

[SIGNATURE OF HOLDER]

 

	Name
of Investing Entity:
	 
	Signature
of Authorized Signatory of Investing Entity:
	 
	Name of Authorized
Signatory:
	 
	Title of Authorized
Signatory:
	 
	Date:Exhibit 10.1

 

Waiver
and Second Amendment to Credit Agreement and Guaranty

 

This Waiver and Second Amendment
to Credit Agreement and Guaranty (herein, this “Agreement”) is entered into as of January 7, 2022 (the “Second
Amendment Effective Date”), by and among Agile Therapeutics, Inc., a Delaware corporation (the “Borrower”),
the Lenders party hereto (each a “Lender” and collectively, the “Lenders”) and Perceptive Credit
Holdings III, LP, a Delaware limited partnership, as a lender and as administrative agent for the Lenders (in such capacity, together
with its successors and assigns, the “Administrative Agent”).

 

R e c i t a l s:

 

A.           The
Lenders have extended credit to the Borrower on the terms and conditions set forth in that certain Credit Agreement and Guaranty, dated
as of February 10, 2020 (as amended by that certain Waiver and First Amendment to Credit Agreement and Guaranty dated as of February 26,
2021, the “Existing Credit Agreement”; the Existing Credit Agreement as amended by this Agreement, the “Credit
Agreement”).

 

B.           Pursuant
to Section 8.01(b) of the Credit Agreement, the Borrower is required to deliver annual financial statements that are not subject
to any “‘going concern’ or like qualification or exception” (the “Going Concern Requirement”).

 

C.         The
Borrower has advised the Administrative Agent that it will not be able to deliver financial statements for the year-ending December 31,
2021 that satisfy the Going Concern Requirement (the “Specified Obligation”).

 

D.           The
Borrower has requested that the Administrative Agent and the Lenders agree to waive the Specified Obligation.

 

E.           The
Administrative Agent and the Lenders are willing to grant such waiver in accordance with and subject to the terms and conditions of this
Agreement.

 

F.           The
Borrower has requested that the Administrative Agent and the Lenders agree to amend certain provisions of the Existing Credit Agreement.

 

G.           The
parties hereto agree to amend the Existing Credit Agreement pursuant to the terms of this Agreement.

 

Now,
Therefore, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

 

1.            Incorporation
of Recitals; Defined Terms. The parties hereto acknowledge that the Recitals set forth above are true and correct in all material
respects. The defined terms in the Recitals set forth above are hereby incorporated into this Agreement by reference. All other capitalized
terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

 

     

     

    

 

2.            Limited
Waiver. Upon satisfaction of the conditions set forth in Section 6 hereof, pursuant to Section 13.04 of the Credit Agreement
and subject to the terms and conditions hereof, the Administrative Agent and the Lenders hereby waive the Specified Obligation. For the
avoidance of doubt, this waiver is effective solely as a waiver of the Specified Obligation and does not constitute a waiver of any other
Default or Event of Default.

 

3.            Second
Amendment to Existing Credit Agreement. Upon satisfaction of the conditions set forth in Section 6 hereof, the Borrower, the
Lenders and the Administrative Agent hereby agree that the Existing Credit Agreement is hereby amended by incorporating the changes shown
on the marked copy of the Existing Credit Agreement attached hereto as Annex A. Deletions of text in the Existing Credit Agreement as
amended hereby are indicated by struck-through red text, and insertions of text as amended hereby are indicated by underlined blue text.
Attached hereto as Annex B is a clean copy of the Credit Agreement conformed through the Second Amendment.

 

4.            Acknowledgement
of Liens. The Borrower hereby acknowledges and agrees that the Obligations owing to the Administrative Agent and the Lenders arising
out of or in any manner relating to the Loan Documents shall continue to be secured by the Liens granted as security therefor in the Loan
Documents, to the extent provided for in the Loan Documents heretofore executed and delivered by the Borrower; and nothing herein contained
shall in any manner affect or impair the priority of the Liens created and provided for thereby as to the indebtedness, obligations, and
liabilities which would be secured thereby prior to giving effect to this Agreement.

 

5.            Representations
And Warranties. In order to induce the Administrative Agent and the Lenders to enter into this Agreement, the Borrower hereby represents
and warrants to the Administrative Agent and the Lenders as follows:

 

(A)            After
giving effect to this Agreement, the representations and warranties of the Borrower contained in Article 7 of the Credit Agreement
and in each other Loan Document shall be true and correct in all material respects on and as of the date hereof; provided that to the
extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material
respects as of such earlier date; provided further that any representation and warranty that is qualified as to “materiality”,
 “Material Adverse Effect” or similar language shall be true and correct (after giving effect to any qualification therein)
in all respects on such respective dates.

 

(B)            The
execution, delivery and performance of this Agreement has been duly authorized by all necessary corporate action on the part of, and duly
executed and delivered by, the Borrower.

 

(C)            No
Default or Event of Default has occurred and is continuing or shall occur and be continuing immediately after giving effect to this Agreement.

 

    -2-

     

    

 

6.            Conditions
Precedent. The effectiveness of this Agreement is subject to the satisfaction of the following conditions precedent:

 

(A)           The
Agent and the Lenders shall have received executed counterparts of this Agreement duly executed and delivered by the Borrower.

 

(B)           The
Borrower shall have prepaid at least $5,000,000 of the outstanding principal amount of the Term Loans (the “Second Amendment
Prepayment”), in accordance with Section 3.03 of the Credit Agreement; provided that no Prepayment Premium shall
be due with respect to the Second Amendment Prepayment.

 

(C)           The
Administrative Agent and the Lenders shall have been reimbursed by the Borrower for all fees
and expenses (including attorneys’ fees and expenses) incurred by the Agent and its counsel outstanding as of the date hereof.

 

(D)           The
Administrative Agent and the Lenders shall have received (i) certified copies of the Organizational Documents of the Borrower and
of resolutions of the board of directors (or similar governing body or committee of the board of directors, as applicable) of the Borrower
approving and authorizing the execution, delivery and performance of this Agreement, certified as of the Second Amendment Effective Date
by its secretary or assistant secretary as being in full force and effect without modification or amendment and (ii) a good standing
certificate and/or compliance certificate from the applicable Governmental Authority of the Borrower’s jurisdiction of incorporation,
dated a recent date prior to the Second Amendment Effective Date.

 

7.            Reference
to and Effect on the Loan Documents; No Novation.

 

(A)           This
Agreement constitutes a Loan Document. On and after the date hereof, words of like import referring to the Credit Agreement, and each
reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words
of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement after giving effect to this Agreement.

 

 (B)            Except as specifically set forth in this Agreement, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed.

 

(C)            Except
as expressly set forth in this Agreement, the Loan Documents and all of the obligations of the Loan Parties thereunder and the rights
and benefits of the Administrative Agent and the Lenders thereunder remain in full force and effect. This Agreement is not a novation
nor is it to be construed as a release, waiver or modification of any of the terms, conditions, representations, warranties, covenants,
rights or remedies set forth in the Loan Documents, except as specifically set forth herein. Without limiting the foregoing, the Loan
Parties agree to comply with all of the terms, conditions, and provisions of the Loan Documents except to the extent such compliance is
irreconcilably inconsistent with the express provisions of this Agreement. This Agreement may not be amended, supplemented, or otherwise
modified except by a written agreement entered into in accordance with Section 13.04 of the Credit Agreement. THIS AGREEMENT REPRESENTS
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

    -3-

     

    

 

8.            Headings.
The headings in this Agreement are included for convenience of reference only and will not affect in any way the meaning or interpretation
of this Agreement.

 

9.            Governing
Law. This Agreement, and all questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York.

 

10.           Incorporation
of Sections 13.10 and 13.11 of the Credit Agreement. The provisions set forth in Sections 13.10 (Jurisdiction, Service of Process
and Venue) and 13.11 (Waiver of Jury Trial) of the Credit Agreement shall apply to this Agreement in all respects.

 

11.           Counterparts.
This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed
and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement.
Delivery of an executed counterpart of this Agreement by facsimile, DocuSign or a scanned copy by electronic mail shall be equally as
effective as delivery of an original executed counterpart of this Agreement.

 

12.          Severability.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law, or public
policy, all other conditions and provisions of this Agreement will nevertheless remain in full force and effect so long as the economic
or legal substance of the transactions contemplated hereby is not affected in any manner adverse to any party. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto will negotiate in good faith to
modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that
the transactions contemplated hereby are fulfilled to the extent possible.

 

13.          Binding
Effect. This Agreement will be binding upon and inure to the benefit of and is enforceable by the respective successors and permitted
assigns of the parties hereto.

 

[Signature
Pages to Follow]

 

    -4-

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed and delivered by their respective officers thereunto duly authorized as of the date
first written above.

 

	 	AGILE
THERAPEUTICS, INC., as Borrower
	 	 
	 	By:	/s/ Alfred Altomari
	 	 	Name: Alfred Altomari
	 	 	Title: Chairman and Chief Executive Officer

 

[Signature
Page to Waiver and Second Amendment to Credit Agreement and Guaranty]

 

    

     

    

 

	 	PERCEPTIVE
CREDIT HOLDINGS III, LP,
	 	as Agent and Lender
	 	 
	 	By: Perceptive Credit Opportunities
GP, LLC, its general partner
	 	 
	 	By:	/s/ Sandeep Dixit
	 	 	Name: Sandeep Dixit
	 	 	Title: Chief Credit Officer
	 	 
	 	By:	/s/ Sam Chawla
	 	 	Name: Sam Chawla
	 	 	Title: Portfolio Manager

 

[Signature
Page to Waiver and Second Amendment to Credit Agreement and Guaranty]

 

    

     

    

 

ANNEX
A

 

Marked Credit Agreement

 

    

     

    

 

ANNEX B

 

Conformed Credit Agreement

 

(Second Amendment)

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