Document:

EXHIBIT 4.1

Final

 

PROMISSORY NOTE

 

	 $500,000.00	March 28, 2013

(“Effective Date”)

 

FOR
VALUE RECEIVED, the undersigned, HEALTHWAREHOUSE.COM, INC., a Delaware corporation,
 HWAREH.COM, INC., a Delaware corporation and HOCKS.COM, INC.,
an Ohio corporation,
jointly and severally, (collectively, “Borrower”), with
an address at 7107 Industrial Road, Florence, Kentucky 41042, hereby promise to pay to the order of MELROSE CAPITAL
ADVISORS, LLC, an Ohio limited liability company (together with its successors and assigns,
“Lender”), in lawful money of the United States of America in immediately
available funds with an address at c/o Statman, Harris & Eyrich, LLC, 441 Vine Street, 37th Floor, Cincinnati,
Ohio 45202, or at such other location as the Lender may designate from time to time, the principal sum of FIVE HUNDRED
THOUSAND AND 00/100 DOLLARS ($500,000.00) together with interest accruing from the date hereof
at the rate or rates and in the manner hereinafter provided on the principal balance hereof from time to time outstanding, as
provided below.

 

1.            Interest.       Interest
will be charged on the unpaid principal balance of this Note until the full amount of principal has been paid at a floating rate
equal to the Prime Rate plus 4.25% per annum. As used herein, “Prime Rate” means the rate publicly
announced by PNC Bank, N.A. from time to time as its prime rate. The Prime Rate is determined from time to time by PNC Bank, N.A.
as a means of pricing some loans to its borrowers. The Prime Rate is not tied to any external rate of interest or index, and does
not necessarily reflect the lowest rate of interest actually charged by PNC Bank, N.A. to any particular class or category of customers.
If and when the Prime Rate changes, the rate of interest on this Note will change automatically without notice to the Borrower,
effective on the date of any such change. In no event will the rate of interest hereunder exceed the maximum rate allowed by law.

 

2.            Payments.       Borrower
will make monthly payments of accrued interest on the first day of every month, beginning on May 1, 2013, and continuing on the
first day of each month thereafter.

On March 1, 2015 (“Maturity
Date”), the entire unpaid principal balance of this Note and all accrued and unpaid interest shall be due and payable in
full.

 

3.            Loan
Documents.       This Note is executed in connection with and is secured by any and all documents and instruments now or in
the future given to the Lender to evidence or secure the loans hereunder (collectively, the “Loan Documents”),
including but not limited to the following: Security Agreement from each Borrower covering all business assets, including but
not limited to accounts, inventory, equipment and general intangibles (the “Collateral”).

 

4.            Representations.       In
order to induce Lender to extend the credit accommodations provided in this Note, Borrower hereby represents and warrants to Lender
the following:

 

(a)       Each Borrower is duly incorporated,
validly existing and in good standing under the laws of the State of its incorporation and has the power and authority to own and
operate its assets and to conduct its business as now or proposed to be carried on, and is duly qualified, licensed and in good
standing to do business in all jurisdictions where its ownership of property or the nature of its business requires such qualification
or licensing and failure to be so qualified or licensed could reasonably be expected to materially adversely affect Borrower (on
a consolidated basis). Borrower is duly authorized to execute and deliver the Loan Documents, all necessary action to authorize
the execution and delivery of the Loan Documents has been properly taken, and the Loan Documents, when executed and delivered by
Borrower, will constitute the legal, valid and binding obligations of Borrower enforceable in accordance with their terms except
as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws
relating to or limiting creditors’ rights generally.

 

    	 

    	 

    

 

(b)       There are no
actions, suits, arbitrations, investigations, claims, inquiries, or proceedings pending or threatened against or affecting Borrower
or its property, and no proceedings before any governmental body are pending or threatened against Borrower or its property, except
as set forth on Schedule 4(b). None of such proceedings listed on Schedule 4(b) (if any) are reasonably expected to have a material
adverse effect on Borrower (on a consolidated basis).

 

(c)       Borrower is
in compliance with all material laws, regulations, rulings, orders, injunctions, decrees, conditions or other requirements applicable
to or imposed upon Borrower by any law or by any governmental authority, court or agency with jurisdiction over Borrower. Borrower
has filed all required tax returns and reports that are now required to be filed by it in connection with any federal, state and
local tax, duty or charge levied, assessed or imposed upon him or his assets, including unemployment, social security, and real
estate taxes. Borrower has paid all taxes which are now due and payable except those which currently are being contested in good
faith by appropriate proceedings and for which Borrower has set aside adequate reserves or made other adequate provision with respect
thereto. No taxing authority has asserted or assessed any additional tax liabilities against Borrower which are outstanding on
the Effective Date, and Borrower has not filed for any extension of time for the payment of any tax or the filing of any tax return
or report.

 

(d)       All financial
information relating to Borrower which has been or may hereafter be delivered by Borrower or on its behalf to Lender is true and
correct and Borrower’s financial statements have been prepared in accordance with generally acceptable accounting principles
consistently applied (except in the case of unaudited financial statements, for the lack of footnotes and being subject to year-end
audit adjustments). Borrower has no material obligations or liabilities of any kind not disclosed in that financial information,
and there has been no material adverse change in the financial condition of Borrower nor has Borrower suffered any damage, destruction
or loss which has adversely affected its business or assets since the submission of the most recent financial information to Lender.

 

(e)       There does not
exist any Event of Default under this Note or any default or violation by Borrower of or under any of the terms, conditions or
obligations of: (i) its organizational documents; (ii) any indenture, mortgage, deed of trust, franchise, permit, contract,
agreement, or other instrument to which it is a party or by which it is bound that is material to Borrower; or (iii) any law,
ordinance, regulation, ruling, order, injunction, decree, condition or other requirement applicable to or imposed upon it by any
law, the action of any court or any governmental authority or agency that could reasonably be expected to have a material adverse
effect on Borrower (on a consolidated basis); and the consummation of the transactions set forth herein will not result in any
such default or violation or Event of Default.

 

(f)       Borrower has
good and marketable title to the assets reflected on the most recent financial statements provided to Lender, free and clear of
all liens and encumbrances, except for the following (“Permitted Liens”): (i) current taxes and assessments not yet
due and payable, (ii) liens to HWH Lending LLC and Milfam I L.P. which will be paid off and released upon the closing of the loan
evidenced by this Note (the “Closing”), (iii) liens to Amerisourcebergen Drug Corporation which will be subordinated
to the liens to Lender pursuant to a lien subordination agreement reasonably satisfactory to Lender, (iv) liens to Wells Fargo
Bank, N.A. on specific equipment, and (v) liens to The Mission Bank on specific equipment.

 

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(g)       None of the
Loan Documents contains any untrue statement of material fact or omits a material fact necessary in order to make the statements
contained in this Note or the Loan Documents not misleading. There is no fact known to Borrower which materially adversely affects
or, so far as Borrower can now reasonably foresee, could reasonably be expected to materially adversely affect the business, assets,
operations, condition (financial or otherwise) or results of operation of Borrower (on a consolidated basis) and which has not
otherwise been fully set forth in this Note.

 

5.            Financial
Information.        Borrower shall maintain books and records in accordance with generally
accepted accounting principles consistently applied (“GAAP”), except in the case of unaudited financial statements,
for the lack of footnotes and being subject to year-end audit adjustments, and shall give representatives of the Lender access
thereto at all reasonable times, including permission to examine, copy and make abstracts from any of such books and records and
such other information as the Lender may from time to time reasonably request, and Borrower will make available to the Lender
for examination copies of any reports, statements and returns which Borrower may make to or file with any federal, state or local
governmental department, bureau or agency. Borrower shall deliver the following to Lender during the entire time during which
any amount is due under this Note:

 

(a)       As
soon as practicable after the end of each calendar month in each year, and in any event within forty-five (45) days thereafter,
an internally prepared balance sheet of Borrower as of the end of such month, and statements of cash flows, shareholders' equity
of Borrower for such month and income statements, certified as complete and correct by the principal financial officer of Borrower,
subject to changes resulting from year-end adjustments;

 

(b)       As
soon as practicable after the end of each calendar quarter beginning March 30, 2013, and in any event within forty-five (45) days
thereafter, a consolidated balance sheet of Borrower as of the end of such quarter, and consolidated statements of cash flows,
shareholders’ equity of Borrower for such quarter, certified as complete and correct by the principal financial officer of
Borrower, subject to changes resulting from year-end adjustments; provided, however, that Borrower may deliver its Form 10-Q filed
with the SEC at the time required herein to satisfy this requirement.

 

(c)       Within
forty-five (45) days after the end of each fiscal quarter, a statement signed by the President or Chief Operating Officer of Borrower
setting forth and certifying the calculation of the Financial Covenants (as hereinafter defined);

 

(d)       As
soon as practicable after the end of each fiscal year, and in any event within one hundred twenty (120) days thereafter, audited
financial statements of Borrower, including, a balance sheet of Borrower as of the end of such year, and statements of cash flows,
owners' equity of Borrower for such year, setting forth in each case in comparative form the figures for the previous fiscal year,
all in reasonable detail and accompanied by an audit report of independent certified public accountants, selected by Borrower and
reasonably satisfactory to Lender, which report and opinion shall be prepared in accordance with generally accepted auditing standards;
provided, however, that Borrower may deliver its Form 10-K filed with the SEC at the time required herein to satisfy this requirement.

 

(e)       With
reasonable promptness, such other data and information as from time to time may be reasonably requested by Lender.

 

5.  Affirmative Covenants.  Borrower
agrees that from the date of execution of this Agreement until this Note is repaid in full Borrower will:

 

(a)       Pay and discharge
when due all indebtedness and all taxes, assessments, charges, levies and other liabilities imposed upon Borrower, its income,
profits, property or business, except those which currently are being contested in good faith by appropriate proceedings and for
which Borrower shall have set aside adequate reserves or made other adequate provision with respect thereto acceptable to the Lender
in its reasonable discretion.

 

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(b)       Do all things
necessary to (i) maintain, renew and keep in full force and effect its organizational existence and all rights, permits and franchises
necessary to enable it to continue its business as currently conducted; (ii) continue in operation in substantially the same manner
as at present; (iii) keep its properties in good operating condition and repair (normal wear and tear excepted); and (iv) make
all necessary and proper repairs, renewals, replacements, additions and improvements thereto.

 

(c)       Maintain, with
insurers reasonably satisfactory to Lender, insurance with respect to its property and business against such casualties and contingencies,
of such types and in such amounts, as is customary for established companies engaged in the same or similar business and similarly
situated.

 

(d)       Comply in all
material respects with all laws applicable to Borrower and to the operation of its business (including without limitation any statute,
ordinance, rule or regulation relating to employment practices, pension benefits or environmental, occupational and health standards
and controls).

 

6.  Negative Covenants.  Borrower
agrees that from the date of execution of this Agreement until this Note is repaid in full Borrower will not, without the Lender’s
prior written consent:

 

(a)       Create, incur,
assume or suffer to exist any indebtedness for borrowed money other than: (i) this Note; (ii) open account trade debt
incurred in the ordinary course of business and not past due; (iii) existing indebtedness secured by the Permitted Liens; and (iv)
indebtedness in respect of purchase money financings of equipment in an amount not in excess of $250,000.00 in the aggregate outstanding.

 

(b)       Create, assume,
incur or permit to exist any mortgage, pledge, encumbrance, security interest, lien or charge of any kind upon any of its property,
now owned or hereafter acquired, or acquire or agree to acquire any kind of property subject to any conditional sales or other
title retention agreement, except for Permitted Liens and liens securing purchase money indebtedness permitted pursuant to Section
6(a) above, with the liens limited to the equipment purchased.

 

(c)       Guarantee, endorse
or become contingently liable for the obligations of any person, firm, corporation or other entity, except in connection with the
endorsement and deposit of checks in the ordinary course of business for collection.

 

(d)       Purchase or
hold beneficially any stock, other securities or evidences of indebtedness of, or make or have outstanding, any loans or advances
to, or otherwise extend credit to, or make any investment or acquire any interest whatsoever in, any other person, firm, corporation
or other entity; provided, however, that Borrower may do so with regards to any Borrower.

 

(e)       Liquidate or
dissolve, or merge or consolidate with or into any person, firm, corporation or other entity, or sell, lease, transfer or otherwise
dispose of all or any substantial part of its property, assets, operations or business, whether now owned or hereafter acquired.

 

(f)       Make or permit
any change (i) in its form of organization and (ii) in the nature of its business as carried on as of the date hereof..

 

(g)       Declare or pay
any dividends on or make any distribution with respect to any class of its equity or ownership interest, or purchase, redeem, retire
or otherwise acquire any of its equity, provided, however, that if Borrower is a limited liability company with pass through taxation,
it may make distributions to its shareholders, partners or members, as the case may be, in an amount equal to the federal and state
income tax of such principals of Borrower attributable to the earnings of Borrower as long as no Event of Default exists.

 

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(h)       Make acquisitions
of all or substantially all of the property or assets of any person, firm, corporation or other entity.

 

7.           Financial Covenants. Borrower
agrees that from the date of execution of this Note until this Note is repaid in full, Borrower will comply with the following
financial covenants (“Financial Covenants”):

 

(a)         
Borrower will not permit its Adjusted EBITDA at the end of each fiscal quarter to be less than the following:

 

	Fiscal Quarter Ending	 	Minimum Adjusted EBITDA	 
	 	 	 	 
	March 31, 2013	 	$	(300,000	)
	June 30, 2013	 	$	(100,000	)
	September 30, 2013	 	$	140,000	 
	December 31, 2013 and thereafter	 	$	300,000	 

 

(b)         
Borrower will not permit its Adjusted EBITDA at the end of each fiscal year to be less than the following:

 

	Fiscal Year Ending	 	Minimum Adjusted EBITDA	 
	 	 	 	 
	December 31, 2013	 	$	400,000	 
	December 31, 2014	 	$	1,600,000	 

 

8.           Events
of Default.       The following events shall constitute events of default under this Note (each,
an “Event of Default”): 

 

(i)       Borrower
fails to make any payment of principal and/or interest when and as the same shall become due and payable and such amount remains
unpaid five (5) days thereafter;

 

(ii)      any
representation or warranty made by Borrower herein or in any of the other Loan Documents is incorrect in any material respect when
made or reaffirmed;

 

(iii)     the
filing by or against Borrower of any proceeding in bankruptcy, reorganization, debt adjustment or receivership, or any assignment
by Borrower for the benefit of creditors; provided, that any involuntary bankruptcy filed against Borrower shall not be an Event
of Default unless such involuntary bankruptcy case is not dismissed within 60 days.

 

(iv)     Borrower
fails to observe or perform any covenant, undertaking or agreement set forth herein or in any of the other Loan Documents and such
failure is not remedied within 10 days;

 

(v)      Borrower defaults under any other debt, liability or obligation to the Lender, or
fails to pay or to otherwise observe and perform any obligations imposed upon Borrower under any indebtedness in excess of $100,000.00
(“Material Indebtedness”), if such default shall continue for more than the period of grace, if any, specified therein;

 

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(vi)       if any other
Event of Default (said term being defined in this Note as it is defined in the Loan Documents) should occur and shall continue
for more than the period of grace, if any specified therein;

 

(vii)     any event
occurs which could reasonably be expected to have a material adverse effect on the Collateral or on Borrower's financial condition,
operations, assets or prospects;

 

(viii)     the
entry of any judgment or lien against Borrower by or in favor of any third person in excess of $100,000.00 which judgment or lien
is not satisfied, discharged or bonded off within thirty (30) days from the date of entry of said judgment or lien and which is
not otherwise stayed or the subject of an appeal filed by Borrower in connection with same; and

 

(ix)       Borrower shall transfer assets
to others (excluding any Borrower) for less than fair value or in other than the ordinary course of business, without Lender’s
prior written consent.

 

9.           Remedies. Upon the
occurrence of an Event of Default, in addition to any other action permitted to be taken by Lender hereunder or under any other
of the Loan Documents: (a) at the option of Lender for so long as any Event of Default shall continue to exist, the unpaid principal
balance of this Note shall, for the period beginning with the date of the occurrence of the Event of Default and continuing for
so long as any Event of Default exists, bear interest at a rate (the “Default Rate”) equal to five percent (5.0%) per
annum above the otherwise applicable interest rate; and (b) Lender may, at its option, and regardless of whether Lender shall have
exercised the option provided for in clause (a) of this paragraph, declare the entire unpaid principal balance of this Note and
all accrued but unpaid interest hereon any other sums then payable in accordance with this Note to be immediately due and payable,
whereupon all such sums shall be immediately due and payable and shall thereafter bear interest at the Default Rate and Lender
shall have the remedies of a secured party under the laws of the State of Ohio with respect to all property mortgaged or pledged
as security for this Note and all of the rights and remedies available under the Loan Documents. No delay or omission on the Lender’s
part to exercise any right or power arising hereunder will impair any such right or power or be considered a waiver of any such
right or power, nor will the Lender’s action or inaction impair any such right or power. All remedies provided for herein
upon any default by Borrower shall be cumulative and not exclusive.

 

Borrower hereby agrees that: (a) in addition
to any other right, after any Event of Default, Borrower will pay to Lender upon demand any and all reasonable costs, expenses
and fees, including without limitation reasonable attorneys’ fees incurred before or after suit is commenced in enforcing
payment hereof; (b) Borrower waives all setoffs and any and all applicable exemption rights; and (c) the acceptance by Lender of
any late payment or other performance which does not strictly comply with the terms of this Note or of any Loan Document shall
not be deemed to be a waiver of any rights of Lender arising as a result of such failure to comply.

 

10.         Waivers.       Borrower,
and any endorsers and guarantors hereof, and all others who may become liable for all or any part of the indebtedness evidenced
by this Note, severally waive diligence, presentment for payment, protests, notice of dishonor and of nonpayment and protest,
and do hereby consent to any number of forbearances, renewals or extensions of the time of payment hereof, releases or substitutions
of all or any part of the security for the payment hereof or release of any party liable for this obligation and waive all defenses
based upon suretyship or impairment of collateral. Any such extension or release may be made without notice to any of said parties
and without discharging their liability. Borrower hereby waives all relief from any and all appraisement or exemption laws now
in force or hereafter enacted.

 

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11.          General.

 

If any provision of this Note is found
to be invalid by a court, all the other provisions of this Note will remain in full force and effect. In no event shall the interest
rate charged on this Note exceed the maximum rate of interest permitted under applicable state and/or federal usury laws. Any payment
of interest that would be deemed unlawful under applicable laws for any reason shall be deemed received on account of, and will
automatically be applied to reduce, the principal sum outstanding and any other sums (other than interest) due and payable to Lender
under this Note, and the provisions hereof shall be deemed amended to provide for the highest rate of interest permitted under
applicable law.

 

Borrower agrees that there are no conditions
or understandings which are not expressed in this Note and the documents referred to herein. No modification, amendment or waiver
of, or consent to any departure by Borrower from, any provision of this Note will be effective unless made in a writing signed
by the Lender and Borrower and then such waiver or consent shall be effective only in the specific instance and for the purpose
for which given.

 

Any and all references in this Note to
any other document or documents shall be references to such other document or documents as the same may from time to time be modified,
amended, renewed, consolidated or extended.

 

The term “Borrower” as used
herein shall include the undersigned and its successors and assigns; provided, however, that Borrower may not assign its obligations
hereunder and Lender may assign this Note at any time (i) to a person or entity related to Lender; (ii) with the prior written
consent of Borrower, as long as no Event of Default exists and (iii) without the consent of Borrower if any Event of Default exists,
but with prior written notice to Borrower (unless Lender is prohibited by law from sending such notice). If there is more than
one Borrower hereunder, their obligations shall be joint and several.

 

12.          Jurisdiction.       This
Note shall be governed by Ohio law. Borrower hereby submits to personal jurisdiction in the federal and state courts in Hamilton
County, Ohio; waives any and all personal rights under the laws of any state or country to object to jurisdiction within the State
of Ohio for the purposes of litigation to enforce this Note, or any other Loan Document; and consents to be sued in the federal
and state courts in Hamilton County, Ohio. Nothing contained in this Note, however, shall prevent Lender from bringing any action
or exercising any rights under this Note within any other state or country. Borrower agrees that service of process may be made,
and personal jurisdiction over Borrower obtained, by serving a copy of the Summons and Complaint upon Borrower at its address set
forth in this Note in accordance with the applicable laws of the State of Ohio.

 

13.         WAIVER OF JURY TRIAL.       BORROWER
HEREBY WAIVES THE RIGHT TO TRIAL BY JURY OF ANY MATTERS ARISING OUT OF THIS NOTE.

 

14.         CONFESSION
OF JUDGMENT. Borrower authorizes any attorney to appear in any court of record in or of the State of Ohio, after
this Note becomes due and payable, whether by its terms or upon default, to waive service of process
and enter judgment by confession against Borrower in favor of the Lender or any holder hereof for the outstanding principal of
and accrued but unpaid interest on this Note, plus all costs of collection, including, without limitation, court costs and reasonable
attorney’s fees, and thereby to waive and release all errors in the proceedings and judgment, and all rights of appeal from
such judgment and stay of execution. Stay of execution and all exemptions are hereby waived. Borrower also agrees that the
attorney acting for Borrower as set forth in this paragraph may be compensated by Lender for such services, and Borrower waives
any conflict of interest caused by such representation and compensation arrangement. If an obligation is referred to an attorney
for collection, and the payment is obtained without the entry of a judgment, the obligors will pay to Lender its attorneys' fees.

 

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WARNING
- BY SIGNING THIS PAPER, YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU DO NOT PAY ON TIME, A COURT JUDGMENT MAY BE TAKEN
AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU
MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT OR ANY
OTHER CAUSE.

 

	 	HEALTHWAREHOUSE.COM, INC.	 
	 	a Delaware corporation	 
	 	 	 
	 	By:	/s/ Lalit Dhadphale	 
	 	Print Name: 	 	 
	 	Title:	President and CEO	 

 

	 	HWAREH.COM, INC.,	 
	 	a Delaware corporation	 
	 	 	 
	 	By:	/s/ Lalit Dhadphale	 
	 	Print Name: 	 	 
	 	Title:	President and CEO	 
	 	 	 
	 	HOCKS.COM, INC., 	 
	 	an Ohio corporation	 
	 	 	 
	 	By:	/s/ Lalit Dhadphale	 
	 	Print Name: 	 	 
	 	Title:	President and CEO	 

 

    	8EXHIBIT 4.2

Final

 

 

NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

 

 

HealthWarehouse.com, Inc.

 

FORM OF COMMON STOCK PURCHASE WARRANT

 

	Number of shares:	750,000
	 	 
	Holder:	Melrose Capital Advisors, LLC
	 	 
	Grant Date:	March 28, 2013
	 	 
	Expiration Date:	March 28, 2018
	 	 
	Exercise Price Per Share:	$0.35 (Thirty-five cents per share)

 

HealthWarehouse.com, Inc., a corporation
organized and existing under the laws of the State of Delaware (the "Company"), hereby certifies that,
for value received, [NAME], or its registered assigns or permitted transferees (the "Warrant Holder"),
is entitled, subject to the terms set forth below, to purchase from the Company [AMOUNT] shares, as adjusted from time to time
as provided in Section 6 hereof, of common stock, $0.001 par value (the "Common Stock"), of the Company
(each such share, a "Warrant Share" and all such shares, the "Warrant Shares")
at a price of $0.35 (thirty-five cents) per Warrant Share (the "Exercise Price"), at any time and from
time to time from and after the date hereof and through and including 5:00 p.m. New York City time on March XX, 2018 (the "Expiration
Date"), and subject to the following terms and conditions. This Warrant is being issued to the Warrant Holder pursuant
to that certain Subscription Agreement, dated as of March XX, 2013, by and between the Company and the Warrant Holder (the “Subscription
Agreement”). All capitalized terms used but not otherwise defined herein have the meanings given to them in the Subscription
Agreement.

 

1.             Registration
of Warrant. The Company shall register this Warrant upon records to be maintained by the Company for that purpose (the "Warrant
Register"), in the name of the record Warrant Holder hereof from time to time. The Company may deem and treat the
registered Warrant Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution
to the Warrant Holder, and for all other purposes, and the Company shall not be affected by notice to the contrary.

 

2.             Investment
Representation. The Warrant Holder by accepting this Warrant represents that the Warrant Holder is acquiring this Warrant for
its own account or the account of an accredited investor affiliate for investment purposes and not with the view to any offering
or distribution and that the Warrant Holder will not sell or otherwise dispose of this Warrant or the underlying Warrant Shares
in violation of applicable securities laws. Subject to Section 10 hereof, the Warrant Holder acknowledges that the certificates
representing any Warrant Shares will bear a legend indicating that they have not been registered under the United States Securities
Act of 1933, as amended (the "1933 Act") and may not be sold by the Warrant Holder except pursuant to an
effective registration statement or pursuant to an exemption from registration requirements of the 1933 Act and in accordance with
federal and state securities laws.

 

3.             Validity
of Warrant and Issue of Shares. The Company represents and warrants that this Warrant has been duly authorized and validly
issued and warrants and agrees that all of Common Stock that may be issued upon the exercise of the rights represented by this
Warrant will, when issued upon such exercise, be duly authorized, validly issued, fully paid and nonassessable and free from all
taxes, liens and charges with respect to the issue thereof. The Company further warrants and agrees that during the period within
which the rights represented by this Warrant may be exercised, the Company will at all times have authorized and reserved a sufficient
number of Common Stock to provide for the exercise of the rights represented by this Warrant.

 

    	 

    	 

    

 

EXHIBIT 4.2

Final

 

4.             Registration
of Transfers and Exchange of Warrants.

 

a. All or any
portion of this Warrant shall be assignable or transferable by Warrant Holder to a subsidiary, parent, general partner, limited
partner, retired partner, affiliate, member or retired member, or stockholder of a Holder that is a corporation, partnership or
limited liability company, subject to such terms and conditions with respect to such assignment or transfer as Warrant Holder shall
determine.

 

b. Subject
to compliance with the legend set forth on the face of this Warrant, the Company shall register the transfer of any portion of
this Warrant in the Warrant Register, upon surrender of this Warrant with the Form of Assignment attached hereto duly completed
and signed, to the Company at the office specified in or pursuant to Section 12. Upon any such registration or transfer, a new
warrant to purchase Common Stock, in substantially the form of this Warrant (any such new warrant, a "New Warrant"),
evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining
portion of this Warrant not so transferred, if any, shall be issued to the transferring Warrant Holder. The acceptance of the New
Warrant by the transferee thereof shall be deemed the acceptance of such transferee of all of the rights and obligations of a Warrant
Holder of a Warrant.

 

c. This Warrant
is exchangeable, upon the surrender hereof by the Warrant Holder to the office of the Company specified in or pursuant to Section
12 for one or more New Warrants, evidencing in the aggregate the right to purchase the number of Warrant Shares which may then
be purchased hereunder. Any such New Warrant will be dated the date of such exchange.

 

5.             Exercise
of Warrants.

 

a.   Upon surrender
of this Warrant with the Form of Election to Purchase attached hereto duly completed and signed to the Company, at its address
set forth in Section 12, and upon payment and delivery of the Exercise Price per Warrant Share multiplied by the number of Warrant
Shares that the Warrant Holder intends to purchase hereunder, in lawful money of the United States of America, in cash or by certified
or official bank check or checks, to the Company, all as specified by the Warrant Holder in the Form of Election to Purchase, the
Company shall promptly (but in no event later than 7 business days after the Date of Exercise (as defined herein)) issue and deliver
or cause to be issued and cause to be delivered to or upon the written order of the Warrant Holder and in such name or names as
the Warrant Holder may designate (subject to the restrictions on transfer described in the legend set forth on the face of this
Warrant), a stock certificate for the number of Warrant Shares issuable upon such exercise, with such restrictive legend as required
by the 1933 Act. Any person so designated by the Warrant Holder to receive Warrant Shares shall be deemed to have become holder
of record of such Warrant Shares as of the Date of Exercise. In connection with such exercise, the Warrant Holder, or such person
so designated by the Warrant Holder in accordance with this paragraph, shall be deemed a stockholder of record with respect to
the Warrant Shares purchaser pursuant to such exercise, with all rights of a stockholder, including voting rights and rights to
receive dividends.

 

b.   A "Date
of Exercise" means the date on which the Company shall have received (i) this Warrant (or any New Warrant, as applicable),
with the Form of Election to Purchase attached hereto (or attached to such New Warrant) appropriately completed and duly signed,
and (ii) payment of the Exercise Price for the number of Warrant Shares so indicated by the Warrant Holder to be purchased.

 

c.   This Warrant
shall be exercisable at any time and from time to time for such number of Warrant Shares as is indicated in the attached Form of
Election To Purchase. If less than all of the Warrant Shares which may be purchased under this Warrant are exercised at any time,
the Company shall issue or cause to be issued, at its expense, a New Warrant evidencing the right to purchase the remaining number
of Warrant Shares for which no exercise has been evidenced by this Warrant.

 

d.   Cashless
Exercise. The Warrant Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making
the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the aggregate Exercise Price,
elect instead to receive upon such exercise the "Net Number" of shares of Common Stock determined according to the following
formula (a "Cashless Exercise"):

 

Net Number = (A x B) —
(A x C)

  B

 

For purposes of the foregoing formula:

 

A = the total number of shares
with respect to which this Warrant is then being exercised.

 

B = the
closing sale price of the shares of Common Stock (as reported by Bloomberg) on the date immediately preceding the date of the Form
of Election to Purchase (the "Closing Price").

 

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

 

    	 

    	 

    

 

EXHIBIT 4.2

Final

 

e. Deemed
Exercise. If, at the Expiration Date for any Warrant Shares, this Warrant has not theretofore been exercised with respect to
such Warrant Shares, and the Closing Price on the business day immediately prior to the Expiration Date is greater than the Exercise
Price, then the Warrant Holder shall be deemed to have exercised this Warrant in whole with respect to such Warrant Shares immediately
prior to such Expiration Date and shall be deemed to have elected to pay the aggregate Exercise Price pursuant to paragraph d.
(Cashless Exercise) of this Section 5, and the Date of Exercise with respect to such deemed exercise shall be the date on which
such Expiration Date occurs.

 

6.             Adjustment
of the Number of Shares. The character of the shares of stock or other securities at the time issuable upon exercise of this
Warrant, are subject to adjustment upon the occurrence of the following events, and all such adjustments shall be cumulative:

 

a.              Adjustment
for Stock Splits, Stock Dividends, Recapitalizations, Etc. The Exercise Price and the number of shares of Common Stock or
other securities at the time issuable upon exercise of this Warrant shall be appropriately adjusted to reflect any stock dividend,
stock split, combination of shares, reclassification, recapitalization or other similar event affecting the number of outstanding
shares of stock or securities.

 

b.              Reserved

 

c.              Reserved

 

d.             Distributions
of Other Property. If, at any time while this Warrant remains outstanding and unexpired with respect to any Warrant Shares,
the Company shall distribute to all holders of Company Common Stock (including any such distribution made in connection with a
consolidation or merger in which the Company is the continuing corporation) evidences of its indebtedness or assets (excluding
ordinary cash dividends or distributions payable out of consolidated earnings or earned surplus and dividends or distributions
referred to in paragraph (a) of this Section 6), then, in lieu of an adjustment to the number of shares Company Common Stock purchasable
upon the exercise of this Warrant, the Warrant Holder, upon the exercise hereof at any time after such distribution shall be entitled
to receive from the Company the stock or other securities to which the Warrant Holder would have been entitled if the Warrant Holder
had exercised this Warrant immediately prior thereto, all subject to further adjustment as provided in this Section 6.

 

e.             Certificate
as to Adjustments. In case of any adjustment or readjustment in the number or kind of securities issuable on the exercise of
this Warrant, or the Exercise Price, the Company will promptly give written notice thereof (but in no event later than 5 business
days thereafter) to the holder of this Warrant in the form of a certificate, certified and confirmed by the Board of Directors
of the Company, setting forth such adjustment or readjustment and showing in reasonable detail the facts upon which such adjustment
or readjustment is based.

 

7.             Fractional Shares.
The Company shall not be required to issue or cause to be issued fractional Warrant Shares on the exercise of this Warrant.
The number of full Warrant Shares that shall be issuable upon the exercise of this Warrant shall be computed on the basis of the
aggregate number of Warrants Shares purchasable on exercise of this Warrant so presented. If any fraction of a Warrant Share would,
except for the provisions of this Section 7, be issuable on the exercise of this Warrant, the Company shall, at its option, (i)
pay an amount in cash equal to the Exercise Price multiplied by such fraction or (ii) round the number of Warrant Shares issuable,
up to the next whole number.

 

8.             Sale or Merger
the Company. The Company will give Warrant Holder 15-day written notice before the event of a sale of all or substantially
all of the assets of the Company or the merger or consolidation of the Company in a transaction in which the Company is not the
surviving entity (a "Fundamental Transaction"). The Company shall not enter into or be party to such Fundamental
Transaction unless the surviving entity assumes in writing all of the obligations of the Company under this Warrant pursuant to
written agreements in form and substance satisfactory to the Warrant Holder and approved by the Warrant Holder prior to such Fundamental
Transaction, including agreements to deliver to the Warrant Holder in exchange for this Warrant a security of the surviving entity
evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, an
adjusted exercise price equal to the value for the shares of Common Stock reflected by the terms of such Fundamental Transaction,
and exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock 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 satisfactory to the Warrant Holder.

 

9.             Issuance of
Substitute Warrant. In the event of a merger, consolidation, recapitalization or reorganization of the Company or a reclassification
of Company shares of stock, which results in an adjustment to the number of shares subject to this Warrant hereunder, the Company
agrees to issue to the Warrant Holder a substitute Warrant reflecting the adjusted number of shares upon the surrender of this
Warrant to the Company.

 

    	 

    	 

    

 

EXHIBIT 4.2

Final

 

10.             Listing of
Shares. The Company shall promptly secure the listing of all of the Warrant Shares issuable hereunder upon each national securities
exchange and automated quotation system, if any, upon which the Common Stock is then listed (subject to official notice of issuance)
and shall maintain, so long as any other shares of Common Stock shall be so listed, such listing of Warrant Shares.

 

11.             Noncircumvention.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, Bylaws or
through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities,
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will
at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights
of the Warrant Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any
shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all
such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable
shares of Common Stock upon the exercise of this Warrant, and (iii) shall take all action necessary to reserve and keep available
out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of the this Warrant,
100% of the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of this Warrant (without
regard to any limitations on exercise).

 

12.             Notice.
All notices and other communications hereunder shall be in writing and shall be deemed to have been given (i) on the date they
are delivered if delivered in person; (ii) on the date initially received if delivered by facsimile transmission followed by registered
or certified mail confirmation; (iii) on the date delivered by an overnight courier service; or (iv) on the third business day
after it is mailed by registered or certified mail, return receipt requested with postage and other fees prepaid as follows:

 

If to the Company:

HealthWarehouse.com, Inc.

7107 Industrial Road

Florence, KY 42042

Fax: (866) 821-3784

Attn: Chief Executive Officer

 

with a copy (for informational purposes
only) to:

 

Mark J. Zummo, Esq.

Kohnen & Patton LLP

800 PNC Center

201 E. Fifth Street

Cincinnati, OH 45202

Telephone: (513) 381-0656

Fax: (513) 381-5823

 

If to the Warrant Holder:

 

[HOLDER TO PROVIDE]

 

With a copy (for informational purposes
only) to:

 

[HOLDER’S COUNSEL,
if applicable]

 

13.             Loss of Warrant.
Upon receipt by the Company of satisfactory evidence of loss, theft, destruction or mutilation of this Warrant and of indemnity
satisfactory to the Company, and upon surrender and cancellation of this Warrant, if mutilated, the Company shall execute and deliver
a new Warrant of like tenor and date and any such lost, stolen or destroyed Warrant shall thereupon become void.

 

14.             Miscellaneous.

 

a.             This Warrant
shall be binding on and inure to the benefit of the parties hereto and their respective successors and permitted assigns. This
Warrant may be amended only in writing and signed by the Company and the Warrant Holder.

 

b.             Nothing
in this Warrant shall be construed to give to any person or corporation other than the Company and the Warrant Holder any legal
or equitable right, remedy or cause of action under this Warrant; this Warrant shall be for the sole and exclusive benefit of the
Company and the Warrant Holder.

 

    	 

    	 

    

 

EXHIBIT 4.2

Final

 

c.             This Warrant
shall be governed by, construed and enforced in accordance with the internal laws of the State of Delaware without regard to the
principles of conflicts of law thereof. Each party irrevocably submits and consent to the exclusive jurisdictions of the United
States District Courts of the State of Delaware, or, if such court does not have jurisdiction or will not accept jurisdiction,
in any court of general jurisdiction in the State of Delaware, and hereby agrees that such courts shall be the exclusive proper
forum for the determination of any dispute arising hereunder.

 

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

 

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

 

f.             The Warrant
Holder shall not, by virtue hereof, be entitled to any voting or other rights of a shareholder of the Company, either at law or
equity, and the rights of the Warrant Holder are limited to those expressed in this Warrant.

 

g.             The remedies
provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant, at law or in
equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of
the Warrant Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. The Company
acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Warrant Holder and that the remedy
at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened
breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining
any breach, without the necessity of showing economic loss and without any bond or other security being required. If any action,
suit, or other proceedings is instituted concerning or arising out of this Warrant, the prevailing party shall recover all of
such party's costs and reasonable attorney's fees incurred in each such action, suit, or other proceeding, including any and all
appeals or petitions from any such action, suit or other proceeding.

 

h.             From and
after the date of this Warrant, upon the request of the Warrant Holder or the Company, the Company and the Warrant Holder shall
execute and deliver such instruments, documents or other writings as may be reasonably necessary or desirable to confirm and carry
out and to effectuate fully the intent and purposes of this Warrant.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 

    	 

    

 

EXHIBIT 4.2

Final

 

IN WITNESS WHEREOF, the Company has caused
this Warrant to be duly executed by the authorized officer as of the Grant Date first above stated.

 

	Healthwarehouse.com, Inc.	 
	 	 
	By:	/s/ Lalit Dhadphale	 	 
	Name: Lalit Dhadphale, President	 

 

    	 

    	 

    

 

EXHIBIT 4.2

Final

 

FORM OF ELECTION TO PURCHASE

 

(To be executed by the Warrant Holder to exercise the right
to purchase shares of Common Stock under the foregoing Warrant)

 

To: HealthWarehouse.com, Inc.

 

In accordance with the Warrant enclosed with this Form of Election
to Purchase, the undersigned hereby irrevocably elects to purchase _____________ shares of Common Stock ("Common Stock"),
$0.___ par value, of HealthWarehouse.com, Inc. and encloses one warrant and $             for
each Warrant Share being purchased or an aggregate of $           in cash
or certified or official bank check or checks, which sum represents the aggregate Exercise Price (as defined in the Warrant) together
with any applicable taxes payable by the undersigned pursuant to the Warrant. The undersigned requests that certificates for the
shares of Common Stock issuable upon this exercise be issued in the name of:

 

	 	 
	 	 
	 	 
	 	 
	 	 
	(Please print name and address)	 

 

(Please insert Social Security or Tax Identification

Number)

 

If the number of shares of Common Stock issuable upon this exercise
shall not be all of the shares of Common Stock which the undersigned is entitled to purchase in accordance with the enclosed Warrant,
the undersigned requests that a New Warrant (as defined in the Warrant) evidencing the right to purchase the shares of Common Stock
not issuable pursuant to the exercise evidenced hereby be issued in the name of and delivered to:

 

	 	 
	 	 
	 	 
	 	 
	 	 
	(Please print name and address)	 

 

Dated: __________________

 

	 	Name of Warrant Holder:
	 	 
	 	 	(Print)	 
	 	 	 	 
	 	 	(By:)	 
	 	 	 	 
	 	 	(Name:)	 
	 	 	 	 
	 	 	(Title:)	 
	 	 	 
	 	 	Signature must conform in all respects to name of Warrant
	 	 	Holder as specified on the face of the Warrant

 

    	 

    	 

    

 

EXHIBIT 4.2

Final

 

FORM OF ASSIGNMENT PURSUANT TO SECTION
4(a)

 

(To be executed by the registered holder if such holder desires
to transfer the Warrant Certificate.)

 

FOR VALUE RECEIVED hereby sells, assigns
and transfers unto

 

	 	 
	(Please print name and address of transferee)	 

 

this Warrant Certificate, together with
all right, title and interest therein, and hereby irrevocably constitutes and appoints

Attorney, to transfer
the within Warrant Certificate on the books of the within-named Company, with full power of substitution.

 

Dated: ______________

 

Signature: ________________________________

 

(Signature must confirm in all respects to
name of holder as specified on the face of the

Warrant Certificate.)

 

(Insert Social Security or Other
Identifying Number of Assignee).

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