Document:

Exhibit
4.2

 

NO
SALE, OFFER TO SELL OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS WARRANT OR ANY INTEREST THEREIN SHALL BE MADE UNLESS A REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, WITH RESPECT TO SUCH TRANSACTION IS THEN IN EFFECT, OR THE ISSUER HAS
RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO IT THAT SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER THAT ACT. 

 

This
Warrant will be void after 5:00 p.m. New York Time on October 9, 2021.

 

 

COMMON
STOCK PURCHASE WARRANT

 

WARRANT
NO. 2

 

To
Subscribe for and Purchase Shares of

FLEXSHOPPER,
INC

 

(Transferability
Restricted as Provided in Paragraphs 8 and 9 Below)

 

THIS
CERTIFIES THAT, for value received, PAULSON INVESTMENT COMPANY, INC., or registered assigns, is entitled to subscribe
for and purchase from FLEXSHOPPER, INC., a corporation incorporated under the laws of the State of Delaware (the “Company”),
671,915 fully paid and non-assessable shares of Common Stock of the Company at the Warrant Price during the period hereinafter
set forth, subject, however, to the provisions and upon the terms and conditions hereinafter set forth. This Warrant is one of
an issue of the Company’s Common Stock purchase warrants (herein called the “Warrants”), identical in all respects
except as to the number of Common Shares purchasable thereunder, and issued pursuant to the Placement Agent Agreement.

 

1.As
used herein:

 

(a)“Common
Stock” or “Common Shares” shall initially refer to the Company’s Common Stock, $.0001 par value per share,
as more fully set forth in Section 5 hereof.

 

(b)“Warrant
Price” shall be $.55 per share which is subject to adjustment pursuant to Section 4 hereof.

 

(c)“Placement
Agents” shall refer to FORDHAM FINANCIAL MANAGEMENT, INC., PAULSON INVESTMENT COMPANY, INC. and SPARTAN CAPITAL SECURITIES,
LLC.

 

(d)“Placement
Agent Agreement” shall refer to the Placement Agent Agreement dated April 17, 2014, as amended, between the Company and
the Placement Agents.

 

    	1

    	 

    

 

(e)“Warrants”
shall refer to Warrants to purchase Common Shares issued to the Placement Agent or its designees by the Company pursuant to the
Placement Agent Agreement, as such may be adjusted from time to time pursuant to the terms of Section 4 and including any
Warrants represented by any certificate issued from time to time in connection with the transfer, partial exercise, exchange of
any Warrants or in connection with a lost, stolen, mutilated or destroyed Warrant certificate, if any, or to reflect an adjusted
number of Common Shares.

 

(f)“Underlying
Securities” or “Warrant Shares” shall refer to and include the Common Stock issuable or issued upon exercise
of the Warrants.

 

(g)“Holders”
shall mean the registered holder of such Warrants or any issued Underlying Securities.

 

(h)“Memorandum”
shall mean the Company’s Confidential Private Placement Memorandum dated April 17, 2014, as supplemented, which is being
used (or was used) in connection with the private offering of Common Stock pursuant to the Placement Agent Agreement. 

 

(i)“Placement
Agent Securities” shall refer and mean the warrants and shares of Common Stock issued and/or issuable upon exercise of the
Warrants. 

 

(j)“Offering”
means the private offering of Common Stock in accordance with the Memorandum.

 

2.Exercise
and Payment. The purchase rights represented by this Warrant may be exercised by the holder hereof, in whole or in part at
any time, and from time to time, during the period commencing the date hereof (the “Commencement Date”) until October
9, 2021 (the “Warrant Exercise Term”), by the presentation of this Warrant, with the purchase form attached duly executed,
at the Company's office (or such office or agency of the Company as it may designate in writing to the Holder hereof by notice
pursuant to Section 14 hereof). The purchase price of the Common
Shares issuable pursuant to the Warrants shall be payable in by wire transfer, cash, certified bank check and/or in lieu of cash,
a warrant holder may exercise its Warrants through a cashless exercise. In this respect, at any time during the Warrant Exercise
Term, the Holder may, at its option, exchange the Warrants, in whole or in part (a “Warrant Exchange”), into the number
of fully paid and non-assessable Warrant Shares determined in accordance with this Section 2, by surrendering the placement agent
warrants which shall represent the right to subscribe for and acquire the number of Warrant Shares (rounded to the next highest
integer) equal to (A) the number of Warrant Shares specified by the Holder in its Notice of Exchange (the “Total Share Number”)
less (B) the number of Warrant Shares equal to the quotient obtained by dividing (i) the product of the Total Share Number and
the existing Exercise Price per Share by (ii) the Market Price (as hereafter defined) of a share of Common Stock. All documentation
and procedures to be followed in connection with such “cashless exercise” shall be approved in advance by the Company,
which approval shall be expeditiously provided and not unreasonably withheld.

 

The
Market Price of any shares of Common Stock to purchase shares so surrendered shall be based upon the value of the Common Stock
at the close of business on the day before exercise based upon the following: (i) if the shares of Common Stock are not listed
and traded upon a recognized securities exchange and there is no report of stock prices with respect to the shares of Common Stock
published by a recognized stock quotation service, by the Board of Directors of the Company in its reasonable discretion, it being
understood that the Market Price per share shall not be less than the most recent sale of Common Stock by the Company in an arms-length
transaction occurring no more than six (6) months prior to the exercise in question; or (ii) if the shares of Common Stock are
not then listed and traded upon a recognized securities exchange or quoted on the OTC Markets, and there are reports of stock
prices by a recognized quotation service, upon the basis of the last reported sale or transaction price of such stock as reported
by a recognized quotation service, or, if there is no last reported sale or transaction price on the day before exercise, then
upon the basis of the mean of the last reported closing bid and closing asked prices for such stock on the date nearest preceding
that day; or (iii) if the shares of Common Stock shall be then listed and traded upon a recognized securities exchange or quoted
on the OTC Markets, upon the basis of the last reported sale or transaction price at which shares of Common Stock were traded
on such recognized securities exchange or OTC Markets or, if the shares of Common Stock were not traded on the day before exercise,
upon the basis of the last reported sale or transaction price on the date nearest preceding that date. In the event the Company
is acquired for either stock, notes, securities, cash or any combination thereof, the holders of the Warrants shall have the option
to use the per share buyout price as the Market Price of the Common Stock. The Company agrees
that the Holder of the Warrants shall be deemed the record owner of such Common Shares as of the close of business on the date
on which the Warrants shall have been presented and payment made for such Common Shares as aforesaid. Certificates for the Common
Shares so purchased shall be delivered to the Holder of the Warrants within a reasonable time, not exceeding five (5) days, after
the rights represented by the Warrants shall have been so exercised. If the Warrants shall be exercised in part only, the Company
shall, upon surrender of the Warrants for cancellation, deliver a new Warrant evidencing the rights of the Holder hereof to purchase
the balance of the Common Shares which such Holder is entitled to purchase hereunder. Exercise in full of the rights represented
by the Warrants shall not extinguish the registration rights under Section 9 hereof and Section 9 of the Placement Agent Agreement.

 

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3.Subject
to the provisions of Section 8 hereof, (i) this Warrant is exchangeable at the option of the Holder at the aforesaid office of
the Company for other Warrants of different denominations entitling the Holder thereof to purchase in the aggregate the same number
of Common Shares as are purchasable hereunder; and (ii) this Warrant may, at the reasonable request of the Holder, be reasonably
divided or combined with other Warrants which carry the same rights, in either case, upon presentation hereof at the aforesaid
office of the Company together with a written notice, signed by the Holder hereof, specifying the names and denominations in which
new Warrants are to be issued, and the payment of any transfer tax due in connection therewith. 

 

4.Subject
and pursuant to the provisions of this Section 4, the Warrant Price and number of Common Shares subject to this Warrant shall
be subject to adjustment from time to time as set forth hereinafter in this Section 4.

 

(a)If
the Company shall at any time subdivide its outstanding Common Shares by recapitalization, reclassification or split-up thereof,
the number of Common Shares subject to this Warrant immediately prior to such subdivision shall be proportionately increased,
and if the Company shall at any time combine the outstanding Common Shares by recapitalization, reclassification or combination
thereof, the number of Common Shares subject to this Warrant immediately prior to such combination shall be proportionately decreased.
Any such adjustment to the Warrant Price pursuant to this Section shall become effective at the close of business on the record
date for such recapitalization, reclassification, subdivision or combination.

 

(b)If
the Company after the date hereof shall distribute to all of the holders of its Common Shares any securities or other assets (other
than a distribution of Common Shares or a cash distribution made as a dividend payable out of earnings or out of any earned surplus
legally available for dividends under the laws of the State of Delaware), the Board of Directors of the Company shall be required
to make such equitable adjustment in the Warrant Price in effect immediately prior to the record date of such distribution as
may be necessary to preserve to the Holder of this Warrant rights substantially proportionate to those enjoyed hereunder by such
Holder immediately prior to the happening of such distribution. Any such adjustment made in good faith by the Board of Directors
shall be final and binding upon the Holders and shall become effective as of the record date for such distribution.

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(c)No
adjustment in the number of Common Shares subject to this Warrant shall be required under this Section 4 hereof unless such adjustment
would require an increase or decrease in such number of shares of at least one percent of the then adjusted number of Common Shares
issuable upon exercise of this Warrant, provided, however, that any adjustments which by reason of the foregoing are not required
at the time to be made shall be carried forward and taken into account and included in determining the amount of any subsequent
adjustment; and provided further, however, that in case the Company shall at any time subdivide or combine the outstanding Common
Shares or issue any additional Common Shares as a dividend, said percentage shall forthwith be proportionately increased in the
case of a combination or decreased in the case of a subdivision or dividend of Common Shares so as to appropriately reflect the
same. If the Company shall make a record of the Holders of its Common Shares for the purpose of entitling them to receive any
dividend or distribution and legally abandon its plan to pay or deliver such dividend or distribution then no adjustment in the
number of Common Shares subject to the Warrant shall be required by reason of the making of such record.

 

(d)Whenever
the number of Common Shares purchasable upon the exercise of this Warrant is adjusted, as provided in Section 4, the Warrant Price
shall be adjusted (to the nearest one tenth of a cent by multiplying such Warrant Price immediately prior to such adjustment by
a fraction, the numerator of which shall be the number of Common Shares purchasable upon the exercise of this Warrant immediately
prior to such adjustment, and the denominator of which shall be the number of Common Shares so purchasable immediately thereafter.

 

(e)In
case of any reclassification of the outstanding Common Shares (other than a change covered by Section 4(a) hereof or which solely
affects the par value of such Common Shares) or in the case of any merger or consolidation of the Company with or into another
corporation (other than a consolidation or merger in which the Company is the continuing corporation and which does not result
in any reclassification or capital reorganization of the outstanding Common Shares), or in the case of any sale or conveyance
to another corporation of the property of the Company as an entirety or substantially as an entirety in connection with which
the Company is dissolved, the Holder of this Warrant shall have the right thereafter (until the expiration of the right of exercise
of this Warrant) to receive upon the exercise hereof, for the same aggregate Warrant Price payable hereunder immediately prior
to such event, the kind and amount of shares of stock or other securities or property receivable upon such reclassification, capital
reorganization, merger or consolidation, or upon the dissolution following any sale or other transfer, by a Holder of the number
of Common Shares of the Company obtainable upon the exercise of this Warrant immediately prior to such event; and if any reclassification
also results in a change in Common Shares covered by Section 4(a), the such adjustment shall be made pursuant to both this Section
4(e) and Section 4(a). The provisions of this Section 4(e) shall similarly apply to successive reclassifications, or capital reorganizations,
mergers or consolidations, sales or other transfers.

 

(f)(1)Upon
occurrence of each event requiring an adjustment of the Warrant Price and of the number of Common Shares obtainable upon exercise
of this Warrant in accordance with, and as required by, the terms of this Section 4, the Company shall forthwith employ a firm
of certified public accountants (who may be the regular accountants for the Company) who shall compute the adjusted Warrant Price
and the adjusted number of Common Shares purchasable at such adjusted Warrant Price by reason of such event in accordance with
the provisions of this Section 4. The Company shall mail forthwith to the Holder of this Warrant a copy of such computation which
shall be conclusive and shall be binding upon such Holder unless contested by such Holder by written notice to the Company within
thirty (30) days after receipt thereof by such Holder.

 

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(2)In
case the Company after the date hereof shall propose (i) to pay any dividend payable in stock to the Holders of its Common Shares
or to make any other distribution (other than cash dividends) to the Holders of its Common Shares, (ii) grant rights to subscribe
to or purchase any additional shares of any class or any other rights or options, or (iii) to effect any reclassification of Common
Shares (other than a reclassification involving merely the subdivision or combination of outstanding Common Shares) or (iv) any
capital reorganization or any consolidation or merger, or any sale, transfer or other disposition of its property, assets and
business substantially as an entirety, or the liquidation, dissolution or winding up of the Company, then in each such case, the
Company shall obtain the computation described in Section 4(f)(1) hereof and if an adjustment to the Warrant Price is required
under this Section 4, the Company shall notify the registered Holder of this Warrant of such proposed action, which shall specify
the record date for any such action or if no record date is established with respect thereto, the date on which such action shall
occur or commence, or the date of participation therein by the Holders of Common Shares if any such date is to be fixed, and shall
also set forth such facts with respect thereto as shall be reasonably necessary to indicate the effect of such action on the Warrant
Price and the number, or kind, or class of shares or other securities or property obtainable upon exercise of this Warrant after
giving effect to any adjustment which will be required as a result of such action. Such notice shall be given at least ten (10)
days prior to the record date for determining Holders of the Common Shares for purposes of any such action, and in the case of
any action for which a record date is not established then such notice shall be mailed at least ten (10) days prior to the taking
of such proposed action.

 

(3)Failure
to file any certificate or notice or to mail any notice, or any defect in any certificate or notice, or any defect in any certificate
or notice, pursuant to this Section 4(f), shall not affect the legality or validity of the adjustment in the Warrant Price or
in the number, or kind, or class or shares or other securities or property obtainable upon exercise of this Warrant or of any
transaction giving rise thereto.

 

(g)The
Company shall not be required to issue fractional Common Shares upon any exercise of this Warrant. As to any final fraction of
a Common Share which the Holder of this Warrant would otherwise be entitled to purchase upon such exercise, the Company shall
pay the Holder the cash equivalent of such fraction of a Common Share.

 

(h)Irrespective
of any adjustments pursuant to this Section 4 in the Warrant Price or in the number, or kind, or class of shares or other securities
or other property obtainable upon exercise of this Warrant, this Warrant may continue to express the Warrant Price and the number
of Common Shares obtainable upon exercise at the same price and number of Common Shares as are stated herein.

 

5.For
the purposes of this Warrant, the terms “Common Shares” or “Common Stock” or “Warrant Shares”
shall mean (i) the class of stock designated as the common stock, $.0001 par value, of the Company on the date set forth on the
first page hereof or (ii) any other class of stock resulting from successive changes or reclassifications of such Common Stock
consisting solely of changes in par value, or from no par value to par value, or from par value to no par value. If at any time,
as a result of an adjustment made pursuant to Section 4, the securities or other property obtainable upon exercise of this Warrant
shall include shares or other securities of the Company other than Common Shares or securities of another corporation or other
property, thereafter, the number of such other shares or other securities or property so obtainable shall be subject to adjustment
from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Common Shares
contained in Section 4 and all other provisions of this Warrant with respect to Common Shares shall apply on like terms to any
such other shares or other securities or property. Subject to the foregoing, and unless the context requires otherwise, all references
herein to Common Shares shall, in the event of an adjustment pursuant to Section 4, be deemed to refer also to any other securities
or property then obtainable as a result of such adjustments.

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6.The
Company covenants and agrees that:

 

(a)
During the period within which the rights represented by the Warrant may be exercised, the Company shall, at all times, reserve
and keep available out of its authorized capital stock, solely for the purposes of issuance upon exercise of this Warrant, such
number of its Common Shares as shall be issuable upon the exercise of this Warrant; and if at any time the number of authorized
Common Shares shall not be sufficient to effect the exercise of this Warrant, the Company will take such corporate action as may
be necessary to increase its authorized but unissued Common Shares to such number of shares as shall be sufficient for such purpose;
the Company shall have analogous obligations with respect to any other securities or property issuable upon exercise of this Warrant;

 

(b)All
Common Shares which may be issued upon exercise of the rights represented by this Warrant will, upon issuance be validly issued,
fully paid, nonassessable and free from all taxes, liens and charges with respect to the issuance thereof; and

 

(c)All
original issue taxes payable in respect of the issuance of Common Shares upon the exercise of the rights represented by this Warrant
shall be borne by the Company but in no event shall the Company be responsible or liable for income taxes or transfer taxes upon
the transfer of any Warrants.

 

7.Until
exercised, this Warrant shall not entitle the Holder hereof to any voting rights or other rights as a stockholder of the Company.

 

8.In
no event shall this Warrant be sold, transferred, assigned or hypothecated except in conformity with the applicable provisions
of the Securities Act of 1933, as amended and as then in force (the “Act”), or any similar Federal statute then in
force, and all applicable “Blue Sky” laws. 

 

9.The
Holder of this Warrant, by acceptance hereof, agrees that, prior to the disposition of this Warrant or of any Common Shares theretofore
purchased upon the exercise hereof, under circumstances that might require registration of such securities under the Act, or any
similar Federal statute then in force, such Holder will give written notice to the Company expressing such Holder's intention
of effecting such disposition, and describing briefly such Holder's intention as to the disposition to be made of this Warrant
and/or the securities theretofore issued upon exercise hereof. Such notice shall be given at least ten (10) days prior to the
date of such disposition. Promptly upon receiving such notice, the Company shall present copies thereof to its counsel and the
provisions of the following subdivisions shall apply:

 

(a)If,
in the opinion of such counsel, the proposed disposition does not require registration under the Act or qualification pursuant
to Regulation A promulgated under the Act, or any similar Federal statute then in force, of this Warrant and/or the securities
issuable or issued upon the exercise of this Warrant, the Company shall, as promptly as practicable, notify the Holder hereof
of such opinion, whereupon such Holder shall be entitled to dispose of this Warrant and/or such Common Shares theretofore issued
upon the exercise hereof, all in accordance with the terms of the notice delivered by such Holder to the Company.

 

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(b)
If, in the opinion of such counsel, such proposed disposition requires such registration or qualification under the Act, or
similar Federal statute then in effect, of this Warrant and/or the Common Shares issuable or issued upon the exercise of this
Warrant, the Company shall promptly give written notice to the Holder of the Warrant, at the address thereof shown on the books
of the Company. 

 

10.
Incorporated by reference as if set forth herein in its entirety
is Section 9 of the Placement Agent Agreement, which describes certain registration rights that pertain to the resale of shares
of Common Stock issuable upon exercise of this Common Stock Purchase Warrant.

 

11.The
Company agrees to indemnify, defend and hold harmless the holder of this Warrant, or of Underlying Securities issuable or issued
upon the exercise hereof, from and against any claims and liabilities caused by any untrue statement of a material fact, or omission
to state a material fact required to be stated, in any such registration statement, prospectus, notification or offering circular
under Regulation A, except insofar as such claims or liabilities are caused by any such untrue statement or omission based on
information furnished in writing to the Company by such holder, or by any other such holder affiliated with the holder who seeks
indemnification, as to which the holder hereof, by acceptance hereof, agrees to indemnify, defend and hold harmless the Company.

 

12.
If this Warrant, or any of the Underlying Securities issuable pursuant hereto, require qualification or registration with, or
approval of, any governmental official or authority (other than registration under the Act, or any similar Federal statute at
the time in force), before such shares may be issued on the exercise hereof, the Company, at its expense, will take all requisite
action in connection with such qualification, and will use its best efforts to cause such securities to be duly registered or
approved, as may be required.

 

13.
This Warrant is exchangeable, upon its surrender by the registered holder at such office or agency of the Company as may be designated
by the Company, for new Warrants of like tenor, representing, in the aggregate, the right to subscribe for and purchase the number
of Common Shares that may be subscribed for and purchased hereunder, each of such new Warrants to represent the right to subscribe
for and purchase such number of Common Shares as shall be designated by the registered holder at the time of such surrender. Upon
receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, and, in the case
of any such loss, theft or destruction, upon delivery of a bond of indemnity satisfactory to the Company, or in the case of such
mutilation, upon surrender or cancellation of this Warrant, the Company will issue to the registered holder a new Warrant of like
tenor, in lieu of this Warrant, representing the right to subscribe for and purchase the number of Common Shares that may be subscribed
for and purchased hereunder. Nothing herein is intended to authorize the transfer of this Warrant except as permitted by applicable
law. 

 

14.Every
Holder hereof, by accepting the same, agrees with any subsequent Holder hereof and with the Company that this Warrant and all
rights hereunder are issued and shall be held subject to all of the terms, conditions, limitations and provisions set forth in
this Warrant, and further agrees that the Company and its transfer agent may deem and treat the registered Holder of this Warrant
as the absolute owner hereof for all purposes and shall not be affected by any notice to the contrary.

 

15.All
notices required hereunder shall be given by first-class mail, postage prepaid; if given by the holder hereof, addressed to the
Company at 10801 Johnston Road, Suite 210, Charlotte, North Carolina 28226, with a copy to Morse & Morse PLLC, 1400 Old Country
Road, Westbury, New York 11590, or such other address as the Company may designate in writing to the holder hereof; and if given
by the Company, addressed to the holder at the address of the holder shown on the books of the Company.

 

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16.The
Company will not merge or consolidate with or into any other corporation, or sell or otherwise transfer its property assets and
business substantially as an entirety to another corporation, unless the corporation resulting from such merger or consolidation
(if not the Company), or such transferee corporation, as the case may be, shall expressly assume, by supplemental agreement satisfactory
in form to the Placement Agent Holders, the due and punctual performance and observance of each and even covenant and condition
of this Warrant to be performed and observed by the Company.

 

17.(a)Each
Placement Agent is an accredited investor as such term is defined in the Securities Act of 1933, as amended (the "Securities
Act"), or Regulation D promulgated by the Securities and Exchange Commission thereunder, and under applicable state securities
laws. Each Placement Agent is an accredited investor because it meets one or more of the following criteria: 

 

(1)It
is a bank as defined in Section 3(a)(2) of the Securities Act, whether acting in its individual or fiduciary capacity.

 

(2)It
is a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, whether acting
in its individual or fiduciary capacity.

 

(3)It
is a broker or dealer registered under Section 15 of the Securities Exchange Act of 1934, as amended.

 

(4)It
is an insurance company as defined in Section 2(13) of the Securities Act.

 

(5)It
is an investment company registered under the Investment Company Act of 1940, as amended, or a business development company as
defined in section 2(a)(48) of that Act.

 

(6)It
is a Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small
Business Investment Act of 1958.

 

(7)It
is a plan established by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions,
for the benefit of its employees, and that such plan has total assets in excess of $5,000,000.

 

(8)(i)
It is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, with the
investment decisions being made by a plan fiduciary, as defined in section 3(21) of such Act, and the plan fiduciary is either
a bank, insurance company, or registered investment adviser, or (ii) it is an employee benefit plan that has total assets in excess
of $5,000,000, or (iii) it is a self-directed employee benefit plan and the investment decisions are made solely by persons that
are accredited investors.

 

(9)It
is a private business development company as defined in section 202(a)(22) of the Investment Advisors Act of 1940, as amended.

 

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(10)It
is an organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business
trust, or partnership not formed for the specific purpose of acquiring the securities offered, with total assets in excess of
$5,000,000.

 

(11)It
is a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered,
whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D.

 

(12)It
is an entity in which all the equity owners are accredited investors.

 

(a)               
Each Placement Agent has no present intention to sell the Warrant that it received as compensation in the Offering, nor a present
arrangement (whether or not legally binding) or intention to effect any distribution of any part of the Warrant, or the Underlying
Securities, to or through any person or entity; provided, however, that by making the representations herein, the
Placement Agent does not agree to hold the Warrant or the Underlying Securities for any minimum or other specific term and reserves
the right to dispose of the Warrant or the Underlying Securities at any time in accordance with Federal and state securities laws
applicable to such disposition. Each Placement Agent acknowledges that it (i) has such knowledge and experience in financial and
business matters such that each Placement Agent is capable of evaluating the merits and risks of its investment in the Company,
(ii) is able to bear the financial risks associated with an investment in the Warrant and the Underlying Securities and (iii)
has been given full access to such records of the Company and to the officers of the Company and the Subsidiaries as it has deemed
necessary or appropriate to conduct its due diligence investigation.

(b)              
Each Placement Agent understands that the Warrants and the Underlying Securities must be held indefinitely unless such securities
are registered under the Act or an exemption from registration is available. The Placement Agent acknowledges that it is familiar
with Rule 144 under the Act ("Rule 144"), and that the Placement Agent has been advised that Rule 144 permits
resales only under certain circumstances. The Placement Agent understands that to the extent that Rule 144 is not available, the
Placement Agent will be unable to sell any Warrants or Underlying Securities without either registration under the Act or the
existence of another exemption from such registration requirement.

(c)               
Each Placement Agent understands that the Warrants and the Underlying Securities are being offered and sold in reliance on a transactional
exemption from the registration requirements of federal and state securities laws and the Company is relying upon the truth and
accuracy of the representations, warranties, agreements, acknowledgments and understandings of each Placement Agent set forth
herein in order to determine the applicability of such exemptions and the suitability of the Placement Agent to acquire the Warrants
and the Underlying Securities. Each Placement Agent understands that no United States federal or state agency or any government
or governmental agency has passed upon or made any recommendation or endorsement of the Warrants or the Underlying Securities.

(d)              
Each Placement Agent acknowledges that the Warrants and the Underlying Securities were not offered to each Placement Agent by
means of any form of general or public solicitation or general advertising, or publicly disseminated advertisements or sales literature,
including (i) any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media,
or broadcast over television or radio, or (ii) any seminar or meeting to which each Placement Agent was invited by any of the
foregoing means of communications. Each Placement Agent, in making the decision to purchase the Warrants and the Underlying Securities,
has relied upon independent investigation made by it and has not relied on any information or representations made by third parties.

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18.The
validity, construction and enforcement of this Warrant shall be governed by the laws of the State of Delaware and jurisdiction
is hereby vested in the Courts of said State in the event of the institution of any legal action under this Warrant.

 

IN
WITNESS WHEREOF, FLEXSHOPPER, INC has caused this Warrant to be signed by its duly authorized officers under its corporate
seal, on October 9, 2014. 

 

FLEXSHOPPER,
INC 

 

By:
/s/ Brad Bernstein                       

Brad
Bernstein, President

 

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PURCHASE
FORM

To
Be Executed

Upon
Exercise of Warrant, except for Cashless Exercise

 

The
undersigned hereby exercises the right to purchase _______ Common Shares evidenced by the within Warrant No. ___, according to
the terms and conditions thereof, and herewith makes payment of the purchase price in full. The undersigned requests that certificates
for such shares shall be issued in the name set forth below.

 

Dated:
, 20___

Signature

 

_________________________

Print
Name of Signatory 

Name
to whom certificates are to 

be
issued if different from above

 

Address:

__________________________

__________________________

__________________________

 

__________________________

Social
Security No. 

or
other identifying number 

 

If
said number of shares shall not be all the shares purchasable under the within Warrant, the undersigned requests that a new Warrant
for the unexercised portion shall be registered in the name of :

__________________________

(Please Print) 

 

Address:

__________________________

__________________________

__________________________

Social
Security No. 

or
other identifying number 

_________________________

Signature 

    	11

    	 

    

 

 

PURCHASE
FORM

To
Be Executed Upon

Cashless
Exercise of this Warrant

 

The
undersigned hereby exercises the right to purchase _______ Common Shares evidenced by the within Warrant No. __ according to the
terms and conditions thereof and the undersigned hereby submits warrants to purchase ________ Common Shares as evidenced by the
within Warrant No. ___ to be in full payment of the _______ Common Shares exercised and purchased herein. The undersigned represents
that certificates for such purchased shares shall be issued in the name set forth below: 

 

Dated:
 , 20___

Signature

_________________________

Print
Name of Signatory 

Name
to whom certificates are to 

be
issued if different from above

 

Address:

__________________________

__________________________

__________________________

 

__________________________

Social
Security No. 

or
other identifying number 

 

If
said number of shares shall not be all the shares purchasable under the within Warrant, the undersigned requests that a new Warrant
for the unexercised portion shall be registered in the name of :

__________________________

(Please Print) 

Address:

__________________________

__________________________

__________________________

Social
Security No. 

or
other identifying number 

_________________________

Signature 

    	12

    	 

    

 

FORM
OF ASSIGNMENT

 

 

FOR
VALUE RECEIVED , hereby

sells
assigns and transfers to , Soc. Sec. No.

[
] the within Warrant, together with all rights, title and interest therein, and does hereby irrevocably constitute and appoint
attorney to transfer such Warrant on the register of the within named Company, with full power of substitution.

_______________________

Signature 

 

Dated:
, 20___ 

 

Signature
Guaranteed:

 

_______________________

 

13Exhibit
4.3

 

NO
SALE, OFFER TO SELL OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS WARRANT OR ANY INTEREST THEREIN SHALL BE MADE UNLESS A REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, WITH RESPECT TO SUCH TRANSACTION IS THEN IN EFFECT, OR THE ISSUER HAS
RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO IT THAT SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER THAT ACT. 

 

This
Warrant will be void after 5:00 p.m. New York Time on October 9, 2021.

 

 

COMMON
STOCK PURCHASE WARRANT

 

WARRANT
NO. 3

 

To
Subscribe for and Purchase Shares of

FLEXSHOPPER,
INC

 

(Transferability
Restricted as Provided in Paragraphs 8 and 9 Below)

 

 

THIS
CERTIFIES THAT, for value received, SPARTAN CAPITAL SECURITIES, LLC, or registered assigns, is entitled to subscribe
for and purchase from FLEXSHOPPER, INC., a corporation incorporated under the laws of the State of Delaware (the “Company”),
314,509 fully paid and non-assessable shares of Common Stock of the Company at the Warrant Price during the period hereinafter
set forth, subject, however, to the provisions and upon the terms and conditions hereinafter set forth. This Warrant is one of
an issue of the Company’s Common Stock purchase warrants (herein called the “Warrants”), identical in all respects
except as to the number of Common Shares purchasable thereunder, and issued pursuant to the Placement Agent Agreement.

 

1.As
used herein:

 

(a)“Common
Stock” or “Common Shares” shall initially refer to the Company’s Common Stock, $.0001 par value per share,
as more fully set forth in Section 5 hereof.

 

(b)“Warrant
Price” shall be $.55 per share which is subject to adjustment pursuant to Section 4 hereof.

 

(c)“Placement
Agents” shall refer to FORDHAM FINANCIAL MANAGEMENT, INC., PAULSON INVESTMENT COMPANY, INC. and SPARTAN CAPITAL SECURITIES,
LLC.

 

(d)“Placement
Agent Agreement” shall refer to the Placement Agent Agreement dated April 17, 2014, as amended, between the Company and
the Placement Agents.

 

    	1

    	 

    

 

(e)“Warrants”
shall refer to Warrants to purchase Common Shares issued to the Placement Agent or its designees by the Company pursuant to the
Placement Agent Agreement, as such may be adjusted from time to time pursuant to the terms of Section 4 and including any
Warrants represented by any certificate issued from time to time in connection with the transfer, partial exercise, exchange of
any Warrants or in connection with a lost, stolen, mutilated or destroyed Warrant certificate, if any, or to reflect an adjusted
number of Common Shares.

 

(f)“Underlying
Securities” or “Warrant Shares” shall refer to and include the Common Stock issuable or issued upon exercise
of the Warrants.

 

(g)“Holders”
shall mean the registered holder of such Warrants or any issued Underlying Securities.

 

(h)“Memorandum”
shall mean the Company’s Confidential Private Placement Memorandum dated April 17, 2014, as supplemented, which is being
used (or was used) in connection with the private offering of Common Stock pursuant to the Placement Agent Agreement. 

 

(i)“Placement
Agent Securities” shall refer and mean the warrants and shares of Common Stock issued and/or issuable upon exercise of the
Warrants. 

 

(j)“Offering”
means the private offering of Common Stock in accordance with the Memorandum.

 

2.Exercise
and Payment. The purchase rights represented by this Warrant may be exercised by the holder hereof, in whole or in part at
any time, and from time to time, during the period commencing the date hereof (the “Commencement Date”) until October
9, 2021 (the “Warrant Exercise Term”), by the presentation of this Warrant, with the purchase form attached duly executed,
at the Company's office (or such office or agency of the Company as it may designate in writing to the Holder hereof by notice
pursuant to Section 14 hereof). The purchase price of the Common
Shares issuable pursuant to the Warrants shall be payable in by wire transfer, cash, certified bank check and/or in lieu of cash,
a warrant holder may exercise its Warrants through a cashless exercise. In this respect, at any time during the Warrant Exercise
Term, the Holder may, at its option, exchange the Warrants, in whole or in part (a “Warrant Exchange”), into the number
of fully paid and non-assessable Warrant Shares determined in accordance with this Section 2, by surrendering the placement agent
warrants which shall represent the right to subscribe for and acquire the number of Warrant Shares (rounded to the next highest
integer) equal to (A) the number of Warrant Shares specified by the Holder in its Notice of Exchange (the “Total Share Number”)
less (B) the number of Warrant Shares equal to the quotient obtained by dividing (i) the product of the Total Share Number and
the existing Exercise Price per Share by (ii) the Market Price (as hereafter defined) of a share of Common Stock. All documentation
and procedures to be followed in connection with such “cashless exercise” shall be approved in advance by the Company,
which approval shall be expeditiously provided and not unreasonably withheld.

 

The
Market Price of any shares of Common Stock to purchase shares so surrendered shall be based upon the value of the Common Stock
at the close of business on the day before exercise based upon the following: (i) if the shares of Common Stock are not listed
and traded upon a recognized securities exchange and there is no report of stock prices with respect to the shares of Common Stock
published by a recognized stock quotation service, by the Board of Directors of the Company in its reasonable discretion, it being
understood that the Market Price per share shall not be less than the most recent sale of Common Stock by the Company in an arms-length
transaction occurring no more than six (6) months prior to the exercise in question; or (ii) if the shares of Common Stock are
not then listed and traded upon a recognized securities exchange or quoted on the OTC Markets, and there are reports of stock
prices by a recognized quotation service, upon the basis of the last reported sale or transaction price of such stock as reported
by a recognized quotation service, or, if there is no last reported sale or transaction price on the day before exercise, then
upon the basis of the mean of the last reported closing bid and closing asked prices for such stock on the date nearest preceding
that day; or (iii) if the shares of Common Stock shall be then listed and traded upon a recognized securities exchange or quoted
on the OTC Markets, upon the basis of the last reported sale or transaction price at which shares of Common Stock were traded
on such recognized securities exchange or OTC Markets or, if the shares of Common Stock were not traded on the day before exercise,
upon the basis of the last reported sale or transaction price on the date nearest preceding that date. In the event the Company
is acquired for either stock, notes, securities, cash or any combination thereof, the holders of the Warrants shall have the option
to use the per share buyout price as the Market Price of the Common Stock. The Company agrees
that the Holder of the Warrants shall be deemed the record owner of such Common Shares as of the close of business on the date
on which the Warrants shall have been presented and payment made for such Common Shares as aforesaid. Certificates for the Common
Shares so purchased shall be delivered to the Holder of the Warrants within a reasonable time, not exceeding five (5) days, after
the rights represented by the Warrants shall have been so exercised. If the Warrants shall be exercised in part only, the Company
shall, upon surrender of the Warrants for cancellation, deliver a new Warrant evidencing the rights of the Holder hereof to purchase
the balance of the Common Shares which such Holder is entitled to purchase hereunder. Exercise in full of the rights represented
by the Warrants shall not extinguish the registration rights under Section 9 hereof and Section 9 of the Placement Agent Agreement.

 

    	2

    	 

    

 

3.Subject
to the provisions of Section 8 hereof, (i) this Warrant is exchangeable at the option of the Holder at the aforesaid office of
the Company for other Warrants of different denominations entitling the Holder thereof to purchase in the aggregate the same number
of Common Shares as are purchasable hereunder; and (ii) this Warrant may, at the reasonable request of the Holder, be reasonably
divided or combined with other Warrants which carry the same rights, in either case, upon presentation hereof at the aforesaid
office of the Company together with a written notice, signed by the Holder hereof, specifying the names and denominations in which
new Warrants are to be issued, and the payment of any transfer tax due in connection therewith. 

 

4.Subject
and pursuant to the provisions of this Section 4, the Warrant Price and number of Common Shares subject to this Warrant shall
be subject to adjustment from time to time as set forth hereinafter in this Section 4.

 

(a)If
the Company shall at any time subdivide its outstanding Common Shares by recapitalization, reclassification or split-up thereof,
the number of Common Shares subject to this Warrant immediately prior to such subdivision shall be proportionately increased,
and if the Company shall at any time combine the outstanding Common Shares by recapitalization, reclassification or combination
thereof, the number of Common Shares subject to this Warrant immediately prior to such combination shall be proportionately decreased.
Any such adjustment to the Warrant Price pursuant to this Section shall become effective at the close of business on the record
date for such recapitalization, reclassification, subdivision or combination.

 

(b)If
the Company after the date hereof shall distribute to all of the holders of its Common Shares any securities or other assets (other
than a distribution of Common Shares or a cash distribution made as a dividend payable out of earnings or out of any earned surplus
legally available for dividends under the laws of the State of Delaware), the Board of Directors of the Company shall be required
to make such equitable adjustment in the Warrant Price in effect immediately prior to the record date of such distribution as
may be necessary to preserve to the Holder of this Warrant rights substantially proportionate to those enjoyed hereunder by such
Holder immediately prior to the happening of such distribution. Any such adjustment made in good faith by the Board of Directors
shall be final and binding upon the Holders and shall become effective as of the record date for such distribution.

 

    	3

    	 

    

 

(c)No
adjustment in the number of Common Shares subject to this Warrant shall be required under this Section 4 hereof unless such adjustment
would require an increase or decrease in such number of shares of at least one percent of the then adjusted number of Common Shares
issuable upon exercise of this Warrant, provided, however, that any adjustments which by reason of the foregoing are not required
at the time to be made shall be carried forward and taken into account and included in determining the amount of any subsequent
adjustment; and provided further, however, that in case the Company shall at any time subdivide or combine the outstanding Common
Shares or issue any additional Common Shares as a dividend, said percentage shall forthwith be proportionately increased in the
case of a combination or decreased in the case of a subdivision or dividend of Common Shares so as to appropriately reflect the
same. If the Company shall make a record of the Holders of its Common Shares for the purpose of entitling them to receive any
dividend or distribution and legally abandon its plan to pay or deliver such dividend or distribution then no adjustment in the
number of Common Shares subject to the Warrant shall be required by reason of the making of such record.

 

(d)Whenever
the number of Common Shares purchasable upon the exercise of this Warrant is adjusted, as provided in Section 4, the Warrant Price
shall be adjusted (to the nearest one tenth of a cent by multiplying such Warrant Price immediately prior to such adjustment by
a fraction, the numerator of which shall be the number of Common Shares purchasable upon the exercise of this Warrant immediately
prior to such adjustment, and the denominator of which shall be the number of Common Shares so purchasable immediately thereafter.

 

(e)In
case of any reclassification of the outstanding Common Shares (other than a change covered by Section 4(a) hereof or which solely
affects the par value of such Common Shares) or in the case of any merger or consolidation of the Company with or into another
corporation (other than a consolidation or merger in which the Company is the continuing corporation and which does not result
in any reclassification or capital reorganization of the outstanding Common Shares), or in the case of any sale or conveyance
to another corporation of the property of the Company as an entirety or substantially as an entirety in connection with which
the Company is dissolved, the Holder of this Warrant shall have the right thereafter (until the expiration of the right of exercise
of this Warrant) to receive upon the exercise hereof, for the same aggregate Warrant Price payable hereunder immediately prior
to such event, the kind and amount of shares of stock or other securities or property receivable upon such reclassification, capital
reorganization, merger or consolidation, or upon the dissolution following any sale or other transfer, by a Holder of the number
of Common Shares of the Company obtainable upon the exercise of this Warrant immediately prior to such event; and if any reclassification
also results in a change in Common Shares covered by Section 4(a), the such adjustment shall be made pursuant to both this Section
4(e) and Section 4(a). The provisions of this Section 4(e) shall similarly apply to successive reclassifications, or capital reorganizations,
mergers or consolidations, sales or other transfers.

 

(f)(1)Upon
occurrence of each event requiring an adjustment of the Warrant Price and of the number of Common Shares obtainable upon exercise
of this Warrant in accordance with, and as required by, the terms of this Section 4, the Company shall forthwith employ a firm
of certified public accountants (who may be the regular accountants for the Company) who shall compute the adjusted Warrant Price
and the adjusted number of Common Shares purchasable at such adjusted Warrant Price by reason of such event in accordance with
the provisions of this Section 4. The Company shall mail forthwith to the Holder of this Warrant a copy of such computation which
shall be conclusive and shall be binding upon such Holder unless contested by such Holder by written notice to the Company within
thirty (30) days after receipt thereof by such Holder.

 

    	4

    	 

    

 

(2)In
case the Company after the date hereof shall propose (i) to pay any dividend payable in stock to the Holders of its Common Shares
or to make any other distribution (other than cash dividends) to the Holders of its Common Shares, (ii) grant rights to subscribe
to or purchase any additional shares of any class or any other rights or options, or (iii) to effect any reclassification of Common
Shares (other than a reclassification involving merely the subdivision or combination of outstanding Common Shares) or (iv) any
capital reorganization or any consolidation or merger, or any sale, transfer or other disposition of its property, assets and
business substantially as an entirety, or the liquidation, dissolution or winding up of the Company, then in each such case, the
Company shall obtain the computation described in Section 4(f)(1) hereof and if an adjustment to the Warrant Price is required
under this Section 4, the Company shall notify the registered Holder of this Warrant of such proposed action, which shall specify
the record date for any such action or if no record date is established with respect thereto, the date on which such action shall
occur or commence, or the date of participation therein by the Holders of Common Shares if any such date is to be fixed, and shall
also set forth such facts with respect thereto as shall be reasonably necessary to indicate the effect of such action on the Warrant
Price and the number, or kind, or class of shares or other securities or property obtainable upon exercise of this Warrant after
giving effect to any adjustment which will be required as a result of such action. Such notice shall be given at least ten (10)
days prior to the record date for determining Holders of the Common Shares for purposes of any such action, and in the case of
any action for which a record date is not established then such notice shall be mailed at least ten (10) days prior to the taking
of such proposed action.

 

(3)Failure
to file any certificate or notice or to mail any notice, or any defect in any certificate or notice, or any defect in any certificate
or notice, pursuant to this Section 4(f), shall not affect the legality or validity of the adjustment in the Warrant Price or
in the number, or kind, or class or shares or other securities or property obtainable upon exercise of this Warrant or of any
transaction giving rise thereto.

 

(g)The
Company shall not be required to issue fractional Common Shares upon any exercise of this Warrant. As to any final fraction of
a Common Share which the Holder of this Warrant would otherwise be entitled to purchase upon such exercise, the Company shall
pay the Holder the cash equivalent of such fraction of a Common Share.

 

(h)Irrespective
of any adjustments pursuant to this Section 4 in the Warrant Price or in the number, or kind, or class of shares or other securities
or other property obtainable upon exercise of this Warrant, this Warrant may continue to express the Warrant Price and the number
of Common Shares obtainable upon exercise at the same price and number of Common Shares as are stated herein.

 

5.For
the purposes of this Warrant, the terms “Common Shares” or “Common Stock” or “Warrant Shares”
shall mean (i) the class of stock designated as the common stock, $.0001 par value, of the Company on the date set forth on the
first page hereof or (ii) any other class of stock resulting from successive changes or reclassifications of such Common Stock
consisting solely of changes in par value, or from no par value to par value, or from par value to no par value. If at any time,
as a result of an adjustment made pursuant to Section 4, the securities or other property obtainable upon exercise of this Warrant
shall include shares or other securities of the Company other than Common Shares or securities of another corporation or other
property, thereafter, the number of such other shares or other securities or property so obtainable shall be subject to adjustment
from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Common Shares
contained in Section 4 and all other provisions of this Warrant with respect to Common Shares shall apply on like terms to any
such other shares or other securities or property. Subject to the foregoing, and unless the context requires otherwise, all references
herein to Common Shares shall, in the event of an adjustment pursuant to Section 4, be deemed to refer also to any other securities
or property then obtainable as a result of such adjustments.

 

    	5

    	 

    

 

6.The
Company covenants and agrees that:

 

(a)
During the period within which the rights represented by the Warrant may be exercised, the Company shall, at all times, reserve
and keep available out of its authorized capital stock, solely for the purposes of issuance upon exercise of this Warrant, such
number of its Common Shares as shall be issuable upon the exercise of this Warrant; and if at any time the number of authorized
Common Shares shall not be sufficient to effect the exercise of this Warrant, the Company will take such corporate action as may
be necessary to increase its authorized but unissued Common Shares to such number of shares as shall be sufficient for such purpose;
the Company shall have analogous obligations with respect to any other securities or property issuable upon exercise of this Warrant;

 

(b)All
Common Shares which may be issued upon exercise of the rights represented by this Warrant will, upon issuance be validly issued,
fully paid, nonassessable and free from all taxes, liens and charges with respect to the issuance thereof; and

 

(c)All
original issue taxes payable in respect of the issuance of Common Shares upon the exercise of the rights represented by this Warrant
shall be borne by the Company but in no event shall the Company be responsible or liable for income taxes or transfer taxes upon
the transfer of any Warrants.

 

7.Until
exercised, this Warrant shall not entitle the Holder hereof to any voting rights or other rights as a stockholder of the Company.

 

8.In
no event shall this Warrant be sold, transferred, assigned or hypothecated except in conformity with the applicable provisions
of the Securities Act of 1933, as amended and as then in force (the “Act”), or any similar Federal statute then in
force, and all applicable “Blue Sky” laws. 

 

9.The
Holder of this Warrant, by acceptance hereof, agrees that, prior to the disposition of this Warrant or of any Common Shares theretofore
purchased upon the exercise hereof, under circumstances that might require registration of such securities under the Act, or any
similar Federal statute then in force, such Holder will give written notice to the Company expressing such Holder's intention
of effecting such disposition, and describing briefly such Holder's intention as to the disposition to be made of this Warrant
and/or the securities theretofore issued upon exercise hereof. Such notice shall be given at least ten (10) days prior to the
date of such disposition. Promptly upon receiving such notice, the Company shall present copies thereof to its counsel and the
provisions of the following subdivisions shall apply:

 

(a)If,
in the opinion of such counsel, the proposed disposition does not require registration under the Act or qualification pursuant
to Regulation A promulgated under the Act, or any similar Federal statute then in force, of this Warrant and/or the securities
issuable or issued upon the exercise of this Warrant, the Company shall, as promptly as practicable, notify the Holder hereof
of such opinion, whereupon such Holder shall be entitled to dispose of this Warrant and/or such Common Shares theretofore issued
upon the exercise hereof, all in accordance with the terms of the notice delivered by such Holder to the Company.

 

    	6

    	 

    

 

(b)
If, in the opinion of such counsel, such proposed disposition requires such registration or qualification under the Act, or
similar Federal statute then in effect, of this Warrant and/or the Common Shares issuable or issued upon the exercise of this
Warrant, the Company shall promptly give written notice to the Holder of the Warrant, at the address thereof shown on the books
of the Company. 

 

10.
Incorporated by reference as if set forth herein in its entirety
is Section 9 of the Placement Agent Agreement, which describes certain registration rights that pertain to the resale of shares
of Common Stock issuable upon exercise of this Common Stock Purchase Warrant.

 

11.The
Company agrees to indemnify, defend and hold harmless the holder of this Warrant, or of Underlying Securities issuable or issued
upon the exercise hereof, from and against any claims and liabilities caused by any untrue statement of a material fact, or omission
to state a material fact required to be stated, in any such registration statement, prospectus, notification or offering circular
under Regulation A, except insofar as such claims or liabilities are caused by any such untrue statement or omission based on
information furnished in writing to the Company by such holder, or by any other such holder affiliated with the holder who seeks
indemnification, as to which the holder hereof, by acceptance hereof, agrees to indemnify, defend and hold harmless the Company.

 

12.
If this Warrant, or any of the Underlying Securities issuable pursuant hereto, require qualification or registration with, or
approval of, any governmental official or authority (other than registration under the Act, or any similar Federal statute at
the time in force), before such shares may be issued on the exercise hereof, the Company, at its expense, will take all requisite
action in connection with such qualification, and will use its best efforts to cause such securities to be duly registered or
approved, as may be required.

 

13.
This Warrant is exchangeable, upon its surrender by the registered holder at such office or agency of the Company as may be designated
by the Company, for new Warrants of like tenor, representing, in the aggregate, the right to subscribe for and purchase the number
of Common Shares that may be subscribed for and purchased hereunder, each of such new Warrants to represent the right to subscribe
for and purchase such number of Common Shares as shall be designated by the registered holder at the time of such surrender. Upon
receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, and, in the case
of any such loss, theft or destruction, upon delivery of a bond of indemnity satisfactory to the Company, or in the case of such
mutilation, upon surrender or cancellation of this Warrant, the Company will issue to the registered holder a new Warrant of like
tenor, in lieu of this Warrant, representing the right to subscribe for and purchase the number of Common Shares that may be subscribed
for and purchased hereunder. Nothing herein is intended to authorize the transfer of this Warrant except as permitted by applicable
law. 

 

14.Every
Holder hereof, by accepting the same, agrees with any subsequent Holder hereof and with the Company that this Warrant and all
rights hereunder are issued and shall be held subject to all of the terms, conditions, limitations and provisions set forth in
this Warrant, and further agrees that the Company and its transfer agent may deem and treat the registered Holder of this Warrant
as the absolute owner hereof for all purposes and shall not be affected by any notice to the contrary.

 

15.All
notices required hereunder shall be given by first-class mail, postage prepaid; if given by the holder hereof, addressed to the
Company at 10801 Johnston Road, Suite 210, Charlotte, North Carolina 28226, with a copy to Morse & Morse PLLC, 1400 Old Country
Road, Westbury, New York 11590, or such other address as the Company may designate in writing to the holder hereof; and if given
by the Company, addressed to the holder at the address of the holder shown on the books of the Company.

 

    	7

    	 

    

 

16.The
Company will not merge or consolidate with or into any other corporation, or sell or otherwise transfer its property assets and
business substantially as an entirety to another corporation, unless the corporation resulting from such merger or consolidation
(if not the Company), or such transferee corporation, as the case may be, shall expressly assume, by supplemental agreement satisfactory
in form to the Placement Agent Holders, the due and punctual performance and observance of each and even covenant and condition
of this Warrant to be performed and observed by the Company.

 

17.(a)Each
Placement Agent is an accredited investor as such term is defined in the Securities Act of 1933, as amended (the "Securities
Act"), or Regulation D promulgated by the Securities and Exchange Commission thereunder, and under applicable state securities
laws. Each Placement Agent is an accredited investor because it meets one or more of the following criteria: 

 

(1)It
is a bank as defined in Section 3(a)(2) of the Securities Act, whether acting in its individual or fiduciary capacity.

 

(2)It
is a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, whether acting
in its individual or fiduciary capacity.

 

(3)It
is a broker or dealer registered under Section 15 of the Securities Exchange Act of 1934, as amended.

 

(4)It
is an insurance company as defined in Section 2(13) of the Securities Act.

 

(5)It
is an investment company registered under the Investment Company Act of 1940, as amended, or a business development company as
defined in section 2(a)(48) of that Act.

 

(6)It
is a Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small
Business Investment Act of 1958.

 

(7)It
is a plan established by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions,
for the benefit of its employees, and that such plan has total assets in excess of $5,000,000.

 

(8)(i)
It is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, with the
investment decisions being made by a plan fiduciary, as defined in section 3(21) of such Act, and the plan fiduciary is either
a bank, insurance company, or registered investment adviser, or (ii) it is an employee benefit plan that has total assets in excess
of $5,000,000, or (iii) it is a self-directed employee benefit plan and the investment decisions are made solely by persons that
are accredited investors.

 

(9)It
is a private business development company as defined in section 202(a)(22) of the Investment Advisors Act of 1940, as amended.

 

    	8

    	 

    

 

(10)It
is an organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business
trust, or partnership not formed for the specific purpose of acquiring the securities offered, with total assets in excess of
$5,000,000.

 

(11)It
is a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered,
whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D.

 

(12)It
is an entity in which all the equity owners are accredited investors.

 

(a)               
Each Placement Agent has no present intention to sell the Warrant that it received as compensation in the Offering, nor a present
arrangement (whether or not legally binding) or intention to effect any distribution of any part of the Warrant, or the Underlying
Securities, to or through any person or entity; provided, however, that by making the representations herein, the
Placement Agent does not agree to hold the Warrant or the Underlying Securities for any minimum or other specific term and reserves
the right to dispose of the Warrant or the Underlying Securities at any time in accordance with Federal and state securities laws
applicable to such disposition. Each Placement Agent acknowledges that it (i) has such knowledge and experience in financial and
business matters such that each Placement Agent is capable of evaluating the merits and risks of its investment in the Company,
(ii) is able to bear the financial risks associated with an investment in the Warrant and the Underlying Securities and (iii)
has been given full access to such records of the Company and to the officers of the Company and the Subsidiaries as it has deemed
necessary or appropriate to conduct its due diligence investigation.

(b)              
Each Placement Agent understands that the Warrants and the Underlying Securities must be held indefinitely unless such securities
are registered under the Act or an exemption from registration is available. The Placement Agent acknowledges that it is familiar
with Rule 144 under the Act ("Rule 144"), and that the Placement Agent has been advised that Rule 144 permits
resales only under certain circumstances. The Placement Agent understands that to the extent that Rule 144 is not available, the
Placement Agent will be unable to sell any Warrants or Underlying Securities without either registration under the Act or the
existence of another exemption from such registration requirement.

(c)               
Each Placement Agent understands that the Warrants and the Underlying Securities are being offered and sold in reliance on a transactional
exemption from the registration requirements of federal and state securities laws and the Company is relying upon the truth and
accuracy of the representations, warranties, agreements, acknowledgments and understandings of each Placement Agent set forth
herein in order to determine the applicability of such exemptions and the suitability of the Placement Agent to acquire the Warrants
and the Underlying Securities. Each Placement Agent understands that no United States federal or state agency or any government
or governmental agency has passed upon or made any recommendation or endorsement of the Warrants or the Underlying Securities.

(d)              
Each Placement Agent acknowledges that the Warrants and the Underlying Securities were not offered to each Placement Agent by
means of any form of general or public solicitation or general advertising, or publicly disseminated advertisements or sales literature,
including (i) any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media,
or broadcast over television or radio, or (ii) any seminar or meeting to which each Placement Agent was invited by any of the
foregoing means of communications. Each Placement Agent, in making the decision to purchase the Warrants and the Underlying Securities,
has relied upon independent investigation made by it and has not relied on any information or representations made by third parties.

    	9

    	 

    

18.The
validity, construction and enforcement of this Warrant shall be governed by the laws of the State of Delaware and jurisdiction
is hereby vested in the Courts of said State in the event of the institution of any legal action under this Warrant.

 

IN
WITNESS WHEREOF, FLEXSHOPPER, INC has caused this Warrant to be signed by its duly authorized officers under its corporate
seal, on October 9, 2014. 

 

FLEXSHOPPER,
INC 

 

 

By:
/s/ Brad Bernstein                   

Brad
Bernstein, President

 

 

    	10

    	 

    

 

PURCHASE
FORM

To
Be Executed

Upon
Exercise of Warrant, except for Cashless Exercise

 

The
undersigned hereby exercises the right to purchase _______ Common Shares evidenced by the within Warrant No. ___, according to
the terms and conditions thereof, and herewith makes payment of the purchase price in full. The undersigned requests that certificates
for such shares shall be issued in the name set forth below.

 

Dated:
, 20___

Signature

 

_________________________

Print
Name of Signatory 

Name
to whom certificates are to 

be
issued if different from above

 

Address:

__________________________

__________________________

__________________________

 

__________________________

Social
Security No. 

or
other identifying number 

 

If
said number of shares shall not be all the shares purchasable under the within Warrant, the undersigned requests that a new Warrant
for the unexercised portion shall be registered in the name of :

__________________________

(Please Print) 

 

Address:

__________________________

__________________________

__________________________

Social
Security No. 

or
other identifying number 

_________________________

Signature 

    	11

    	 

    

 

 

PURCHASE
FORM

To
Be Executed Upon

Cashless
Exercise of this Warrant

 

The
undersigned hereby exercises the right to purchase _______ Common Shares evidenced by the within Warrant No. __ according to the
terms and conditions thereof and the undersigned hereby submits warrants to purchase ________ Common Shares as evidenced by the
within Warrant No. ___ to be in full payment of the _______ Common Shares exercised and purchased herein. The undersigned represents
that certificates for such purchased shares shall be issued in the name set forth below: 

 

Dated:
 , 20___

Signature

_________________________

Print
Name of Signatory 

Name
to whom certificates are to 

be
issued if different from above

 

Address:

__________________________

__________________________

__________________________

 

__________________________

Social
Security No. 

or
other identifying number 

 

If
said number of shares shall not be all the shares purchasable under the within Warrant, the undersigned requests that a new Warrant
for the unexercised portion shall be registered in the name of :

___________________________

(Please Print) 

Address:

__________________________

__________________________

__________________________

Social
Security No. 

or
other identifying number 

__________________________

Signature 

    	12

    	 

    

 

FORM
OF ASSIGNMENT

 

 

FOR
VALUE RECEIVED , hereby

sells
assigns and transfers to , Soc. Sec. No.

[
] the within Warrant, together with all rights, title and interest therein, and does hereby irrevocably constitute and appoint
attorney to transfer such Warrant on the register of the within named Company, with full power of substitution.

_______________________

Signature 

 

Dated:
, 20___ 

 

Signature
Guaranteed:

 

_______________________

 

 

              

 

13

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