Document:

Exhibit 10.1

 

Confidential Information has been omitted
from this Agreement and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested
with respect to this omitted information.

 

PRODUCT
PURCHASE AGREEMENT

 

THIS
PRODUCT PURCHASE AGREEMENT (this “Agreement”) is entered into as of November 30, 2018, by and between Aircom
Telecom LLC, a Taiwan limited liability company having its principal place of business at 1F., No. 13, Ln. 120, Sec. 1 Neihu
Rd., Taiwan (“Supplier”), and Republic Engineers Pte. Ltd., a Singapore private limited company having
its principal place of business at 63 Ubi Avenue 1, #06-01, Singapore, 408937 (“Buyer”), each a “Party”
or collectively, the “Parties”.

 

WHEREAS,
Buyer desires to engage Supplier to purchase certain Products; and

 

WHEREAS,
Supplier is in the business of selling the Products itemized in Exhibit A and desires to sell the Product to Buyer; and

 

WHEREAS,
Buyer wishes to purchase certain Products from Supplier;

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and agreements contained herein, the receipt and sufficiency
of which are acknowledged, the Parties hereto hereby agree as follows:

 

		1.	DEFINITIONS
                                         AND INTERPRETATION.

 

		1.1	Definitions.
                                         Capitalized terms have the meanings set forth or referred to in Exhibit D, unless
                                         otherwise defined herein. 

 

		1.2	Interpretation.
                                         Unless the context otherwise requires:

 

		(a)	Words
                                         importing the singular include the plural and vice versa;

 

		(b)	Words
                                         importing a gender include any gender; and

 

		(c)	Clause
                                         headings are for convenient reference only and have no effect in limiting or extending
                                         the language to which they refer in this Agreement or any Exhibit or Attachment.

 

		2.	AGREEMENT
                                         APPLICABILITY.

 

		2.1	Under
                                         the terms of this Agreement, Buyer retains Supplier to provide to Buyer any product set
                                         forth in Exhibit A (the “Product”). 

 

		2.2	The
                                         terms and conditions of any Exhibit are supplemented by the terms and conditions of this
                                         Agreement according to the “Order of Precedence” clause of this Agreement.

 

		2.3	All
                                         terms and conditions within this Agreement shall govern any Order submitted for Products
                                         and all Orders shall reference this Agreement.

 

		3.	PRICE
                                         AND PAYMENT.

 

		3.1	Price.
                                         Prices of the Product are listed on the attached Exhibit B Product and Pricing Sheet.
                                         Supplier may adjust prices from time to time by delivering to Buyer an amended Product
                                         and Pricing Sheet, provided, however, that price adjustments shall not affect the Purchase
                                         Orders that have been placed and accepted prior to the delivery of the amended Product
                                         and Pricing Sheet.

 

		3.2	Payment
                                         Terms. Supplier shall issue an invoice to Buyer on or any time after Supplier accepts
                                         a Purchase Order. Buyer shall pay invoiced amounts due to Supplier via wire transfer
                                         in accordance with the following payment schedule. All payments hereunder will be in
                                         US dollars unless otherwise agreed to in writing. In the event of a payment dispute,
                                         Buyer shall deliver a written statement to Supplier no later than ten (10) business days
                                         prior to the date payment is due on the disputed invoice, listing all disputed items
                                         and providing a reasonably detailed description of each disputed item. Amounts not so
                                         disputed are deemed accepted and must be paid, notwithstanding disputes on other items,
                                         within the period set forth in this Section 3. The Parties shall seek to resolve all
                                         such disputes expeditiously and in good faith.

 

     

     

    

 

Payment
Schedule:

 

**CONFIDENTIAL
INFORMATION - REDACTED**1

 

		3.3	Late
                                         Payments. Except for the invoiced payments that Buyer has successfully disputed,
                                         Buyer shall pay interest on all late payments calculated daily and computed monthly,
                                         at the lesser of the rate of five percent (5%) per month or the highest rate permissible
                                         under applicable Law.

 

		3.4	Taxes.
                                         All prices are exclusive of, and Buyer is solely responsible for, and shall pay all taxes,
                                         duties, deductions, charges or fees; provided, however, that Buyer shall not be responsible
                                         for any taxes imposed on Supplier’s income, revenues, gross receipts, personnel
                                         or real or personal property.

 

		4.	ORDER
                                         AND PRODUCT ADMINISTRATION.

 

		4.1	Purchase
                                         Orders. Buyer shall issue to Supplier Purchase Orders (containing applicable basic
                                         order terms that are consistent with the terms of this Agreement). By issuing a Purchase
                                         Order, Buyer makes an offer to purchase Products pursuant to the terms and conditions
                                         of this Agreement. Any variations made to the terms and conditions of this Agreement
                                         by Buyer in any Purchase Orders are void and have no effect. Buyer shall be obligated
                                         to purchase from Supplier quantities of Products specified in a Purchase Order. Each
                                         Order shall be deemed to be incorporated as part of this Agreement upon Buyer’s
                                         issuance thereof.

 

		4.2	Order
                                         Placement. Purchase Orders shall be placed by Buyer at least twenty-four (24) months
                                         prior to the expected delivery date. Purchase Order pricing shall be consistent with
                                         the Product pricing described in Exhibit B, as amended.

 

		4.3	Order
                                         Acceptance. Supplier accepts a Purchase Order by confirming the order in writing.
                                         Any additional or different terms proposed by Buyer are rejected unless expressly agreed
                                         to in writing.

 

		4.4	Order
                                         Rejection. Supplier shall have the right to reject an Order without liability or
                                         penalty, and without constituting a waiver of any of Supplier’s rights or remedies
                                         under this Agreement if the Order does not comply with the requirements of this Agreement.
                                         Should Supplier reject an order based upon the foregoing, Supplier will notify Buyer
                                         in writing of such rejection.

 

		4.5	Minimum
                                         Order Quantity. Buyer commits to place binding Orders with Supplier, upon Effective
                                         Date, for a Minimum Order Quantity (“MOQ”) of Product as follows. Buyer shall
                                         issue to Supplier Purchase Orders for the MOQ within thirty (30) days from the Effective
                                         Date.

 

	 	Description	 	MOQ
	 	Aerkomm
    K++ System	 	10
    Shipsets

 

		5.	DELIVERY
                                         AND INSPECTION.

 

		5.1	Delivery.
                                         Supplier shall deliver the Products to FCA Oakland, California (Incoterms 2010), using
                                         Supplier’s standard methods for packaging and shipping such Products. Unless otherwise
                                         directed, all Products shipped in one (1) day from and to a single location may be consolidated
                                         on one (1) bill of lading or air waybill, as appropriate.

 

 

 

 

		1	Confidential
Information has been omitted from this Agreement and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to this omitted information.

 

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		5.2	Title
                                         and Risk of Loss. Title to Products passes to Buyer upon full payment of the Products
                                         by Buyer. Risk of loss passes to Buyer upon shipment of Products to the carrier in accordance
                                         with Section 5.1.

 

		5.3	Inspection.
                                         

 

		(a)	Following
                                         each delivery of Products by the Supplier, Buyer may conduct inspection within thirty
                                         (30) days after delivery of the Product (“Inspection Period”) to determined
                                         whether the Product was delivered in conformance with the requirements of this Agreement.
                                         If Buyer does not notify Supplier in writing of any non-conformities within the Inspection
                                         Period, Buyer shall be deemed to have accepted the Product. Subject to written notification
                                         within the Inspection Period, Buyer may reject any Product that does not materially conform
                                         with the requirements identified in the applicable Order. If Supplier determines such
                                         rejected Products are nonconforming, Supplier shall, in its sole discretion, either (a)
                                         replace such nonconforming Products with conforming Products; or (b) refund to Buyer
                                         such amount paid by Buyer for the nonconforming Products returned to Supplier. Except
                                         as provided under this Section 5.3(a), Buyer has no right to return Products shipping
                                         to Buyer pursuant to this Agreement.

 

		(b)	THE
                                         REMEDIES SET FORTH IN THIS SECTION 5.3 ARE BUYER’S SOLE AND EXCLUSIVE REMEDY AND
                                         SUPPLIER’S ENTIRE LIABILITY AND OBLIGATION FOR ANY NON-CONFORMITIES COVERED BY
                                         THIS SECTION.

 

		5.4	Export
                                         License. The Products under this Agreement may be subject to the export laws and
                                         regulations of the United States and other jurisdictions. Supplier will comply with such
                                         laws and regulations and will not export, re-export or otherwise transfer any such Products
                                         without obtaining required governmental authorizations or licenses; provided, however,
                                         that Buyer shall provide Supplier with such information and assistance as may reasonably
                                         be required by Supplier in connection with securing such authorizations or licenses,
                                         and shall take timely action to obtain all required supporting documentation. 

 

		5.5	Country
                                         of Origin. All Products and/or their packaging and export documents, unless specifically
                                         exempted by the destination country’s governing authorities, must be marked with
                                         the country of origin (manufacture) of the Products in a conspicuous place as legibly,
                                         indelibly, and permanently as the nature of the article or container permits.

 

		5.6	Shipping
                                         Documents. After Supplier delivers the Products to the carrier, Supplier will send,
                                         upon request by Buyer, shipping documents including the commercial invoice, packing list,
                                         and air waybill or three original parts of the combined through bill of lading, clean
                                         without notation, necessary to release the Products to Buyer’s custody.

 

		5.7	Delivery
                                         Time. The Parties acknowledge that any time quoted for delivery is an estimate only.
                                         However, Supplier shall use commercially reasonable efforts to deliver all Products on
                                         or before the requested delivery date. No delay in the shipment or delivery of any Product
                                         relieves Buyer of its obligations under this Agreement, including accepting delivery
                                         of any remaining installment or other orders of Products.

 

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		6.	CONFIDENTIALITY.
                                         The terms of this Agreement are deemed to be Confidential Information under the Non-Disclosure
                                         Agreement between Supplier’s parent company, Aircom Pacific, Inc. and Republic
                                         Engineers Pte. Ltd., effective as of January 26, 2018 (the “NDA”). The NDA
                                         is incorporated herein and will continued to govern Confidential Information exchanged
                                         during the term of this Agreement. If there is any conflict between the provisions of
                                         the NDA and this Agreement, this Agreement will govern. Those provisions of the NDA that
                                         are stated to survive termination, will survive termination of this Agreement.

 

		7.	TERM;
                                         TERMINATION.

 

		7.1	Term.
                                         The term of this Agreement commences on the Effective Date and continues for a period
                                         of five (5) years, unless it is terminated earlier pursuant to the terms of this Agreement
                                         or applicable Law (“Term”).

 

		7.2	Termination.

 

		(a)	Supplier
                                         may terminate this Agreement immediately upon notice to Buyer in the event Supplier provides
                                         written notice to Buyer that Buyer failed to pay an undisputed invoice in accordance
                                         with Section 3 and Buyer fails to pay the undisputed amounts due within thirty (30) days
                                         from receipt of such notice.

 

		(b)	Buyer
                                         may terminate this Agreement immediately upon notice to Supplier in the event Buyer provides
                                         written notice to Supplier that Supplier materially breaches any of its obligations under
                                         this Agreement and Supplier fails to cure such breach within ninety (90) days from receipt
                                         of such notice; provided, however that Buyer shall pay all amounts due to Supplier for
                                         Products delivered (or not yet delivered but committed under MOQ), and reimburse Supplier
                                         for all of its out-of-pocket costs and expenses incurred by Supplier prior to Supplier’s
                                         receipt of the termination notice.

 

		(c)	Either
                                         Party may terminate this agreement, immediately upon written notice to the other Party,
                                         in the event the other Party: (i) becomes insolvent; (ii) makes an assignment for the
                                         benefit of creditors; (iii) files a voluntary bankruptcy petition; (iv) acquiesces to
                                         an involuntary bankruptcy petition; (v) is adjudicated bankrupt; or (vi) after two (2)
                                         consecutive weeks following a Force Majeure Event that impacts the affected Party’s
                                         obligations under this Agreement.

 

		(d)	Termination
                                         of this Agreement will not be exclusive of any other remedy available under this Agreement
                                         or applicable law or equity.

 

		(e)	The
                                         Parties have considered the investment required to perform this Agreement and possible
                                         losses in the event of termination, and agree the rights of termination provided in this
                                         Agreement are absolute.

 

		7.3	Consequences
                                         of Termination. Upon the termination of this Agreement:

 

		(a)	Supplier
                                         will issue to Buyer a final invoice including all fees and charges for Products and expenses
                                         incurred prior to and including the effective date of termination, and Buyer shall pay
                                         such invoice in accordance with Section 3. 

 

		(b)	Upon
                                         Buyer’s compliance with its obligations pursuant to Section 7.2(b), Supplier shall
                                         deliver all ordered Products to Buyer.

 

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		8.	PRODUCT
                                         WARRANTIES. The Product warranty and out of
                                         warranty Product repairs are set forth in Exhibit C – Product Warranty and Support
                                         Terms.

 

		9.	INDEMNIFICATION.
                                         

 

		9.1	Mutual
                                         Indemnification. Subject to the terms and conditions of this Agreement, each Party
                                         (as “Indemnifying Party”) shall indemnify, defend and hold harmless the other
                                         Party and its respective officers, directors and employees (collectively, “Indemnified
                                         Party”) against any losses, damages, liabilities, claims, actions, judgments, settlements,
                                         interest, awards, penalties, fines, costs or expenses of whatever kind, including reasonable
                                         attorneys’ fees awarded against Indemnified Party in a final judgement (collectively,
                                         “Losses”), arising out of or resulting from any third-party Claim alleging:

 

		(a)	A
                                         breach of any representation, warranty or covenant set forth in this Agreement by Indemnifying
                                         Party or its personnel;

 

		(b)	Any
                                         grossly negligent or more culpable act or omission of Indemnifying Party or its personnel
                                         in connection with the performance of this Agreement;

 

		(c)	Any
                                         bodily injury, death of any person or damage to real or tangible personal property caused
                                         by gross negligence or willful misconduct of Indemnifying Party or its personnel; or
                                         

 

		(d)	Any
                                         Products infringe any Intellectual Property Rights of a third party.

 

Without
limiting the generality of the foregoing, if any of the Products or any portion thereof is held, or in Supplier’s reasonable
opinion is likely to be held, in any such suit to constitute an infringement, misappropriation or violation of the rights of a
third party, Supplier shall promptly, at its expense and option, either: (i) secure for Buyer the right to continue the use
of such Product; or (ii) modify or replace such Product with a substantially equivalent item that is not subject to any such
claim, or modify such Product so that it becomes no longer subject to any such claim; provided, however, that after any such replacement
or modification, the Product must continue to substantially conform to the specifications provided by Buyer, and further provided,
that any such modified or replaced Product shall be subject to all Supplier warranties contained herein. If Supplier is unable
to procure the right to continued use of such Product, or to modify or replace such Product, then Buyer shall return such Product
to Supplier, and Supplier shall refund to Buyer the amount paid to Supplier for such Products.

 

THIS
SECTION 10.1 SETS FORTH BUYER’S SOLE AND EXCLUSIVE REMEDY AND SUPPLIER’S ENTIRE LIABILITY AND OBLIGATION FOR ANY PRODUCTS
THAT ARE WITHDRAWN PURSUANT TO THIS SECTION.

 

		9.2	Exceptions
                                         to Indemnification. Notwithstanding anything to the contrary in this Agreement, an
                                         Indemnifying Party is not obligated to indemnify or defend (if applicable) an Indemnified
                                         Party against any Claim if such Claim or corresponding Losses arise out of or result
                                         from, in whole or in part:

 

		(a)	Indemnified
                                         Party’s negligence or more culpable act or omission (including recklessness or
                                         willful misconduct);

 

		(b)	Indemnified
                                         Party’s bad faith failure to comply with any of its obligations set forth in this
                                         Agreement;

 

		(c)	Indemnified
                                         Party’s use of the Products in any manner not otherwise authorized under this Agreement
                                         or that does not materially conform with any usage such as instructions, guidelines,
                                         or specifications provided by Supplier;

 

		(d)	Any
                                         modifications or changes made to the Products by or on behalf of any Person other than
                                         Supplier or its Authorized Representatives, if the infringement of Intellectual Property
                                         rights would have been avoided without such modification or change; or

 

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		(e)	Any
                                         products or assemblies manufactured or designed by Buyer.

 

		9.3	Indemnification
                                         Procedures. After receipt of a notice of any Claim or the commencement of any action,
                                         an Indemnified Party shall: (a) notify the Indemnifying Party in writing of any
                                         such Claim; (b) provide the Indemnifying Party with reasonable assistance to settle
                                         or defend such Claim, at the Indemnifying party’s own expense; and (c) grant
                                         to the Indemnifying Party the right to control the defense and/or settlement of such
                                         Claim, at the Indemnifying Party’s own expense; provided, however, that: (i) Indemnifying
                                         Party shall not, without the Indemnified Party’s consent (such consent not to be
                                         unreasonably withheld or delayed), agree to any settlement that makes any admission on
                                         behalf of the Indemnified Party; and (ii) the Indemnified Party shall have the right,
                                         at its own expense, to monitor any legal proceeding through legal counsel of its choosing.

 

		9.4	EXCLUSIVE
                                         REMEDY. THIS SECTION SETS FORTH THE ENTIRE LIABILITY AND OBLIGATION OF EACH INDEMNIFYING
                                         PARTY AND THE SOLE AND EXCLUSIVE REMEDY FOR EACH INDEMNIFIED PARTY FOR ANY LOSSES COVERED
                                         BY THIS SECTION 10.

 

		10.	LIMITATION
                                         OF LIABILITY.

 

		10.1	No
                                         liability for Consequential or Indirect Damages. IN NO EVENT SHALL EITHER PARTY OR
                                         ITS REPRESENTATIVES BE LIABLE FOR CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY,
                                         PUNITIVE OR ENHANCED DAMAGES, LOST PROFITS OR REVENUES OR DIMINUTION IN VALUE, ARISING
                                         OUT OF OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF (A) WHETHER SUCH DAMAGES
                                         WERE FORESEEABLE, (B) WHETHER OR NOT THE PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH
                                         DAMAGES AND/OR (C) ANY LEGAL OR EQUITABLE THEORY (CONTRACT, TORT OR OTHERWISE) UPON WHICH
                                         THE CLAIM IS BASED, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF
                                         ITS ESSENTIAL PURPOSE.

 

		10.2	Maximum
                                         Liability. IN NO EVENT SHALL EACH PARTY’S AGGREGATE LIABILITY ARISING OUT OF
                                         OR RELATED TO THIS AGREEMENT, WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT,
                                         TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EXCEED THE TOTAL AMOUNTS PAID AND AMOUNTS ACCRUED
                                         BUT NOT YET PAID TO SUPPLIER PURSUANT TO THIS AGREEMENT IN THE TWELVE (12) MONTH PERIOD
                                         PRECEDING THE EVENT GIVING RISE TO THE CLAIM.

 

		11.	INTELLECTUAL
                                         PROPERTY RIGHTS.

 

		11.1	Ownership.
                                         Buyer acknowledges and agrees that:

 

		(a)	Supplier
                                         or its licensors will retain all Intellectual Property Rights used to create, embodied
                                         in, used in and otherwise relating to the Product and any of the component parts;

 

		(b)	Any
                                         and all Supplier Intellectual Property Rights are the sole and exclusive property of
                                         Supplier or its licensors;

 

		(c)	Buyer
                                         shall not acquire any ownership interest in any of Supplier Intellectual Property Rights
                                         under this Agreement;

 

		(d)	Any
                                         goodwill derived from the use by Buyer of Supplier Intellectual Rights inures to the
                                         benefit of Supplier or its licensors, as the case may be;

 

		(e)	If
                                         Buyer acquires any Intellectual Property Rights in or relating to any Product purchased
                                         under this Agreement (including any rights in any trademarks, derivative works or patent
                                         improvements relating thereto), by operation of law, or otherwise, such rights are deemed
                                         and are hereby irrevocably assigned to Supplier or its licensors, as the case may be,
                                         without further action by either Party; and

 

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		(f)	Buyer
                                         shall use Supplier Intellectual Property Rights only in accordance with this Agreement
                                         and any instructions of Supplier.

 

		11.2	Prohibited
                                         Acts. Buyer shall not:

 

		(a)	Take
                                         any action that may interfere with any of Supplier’s (or its licensors’)
                                         rights in or to Supplier Intellectual Property Rights, including Supplier’s ownership
                                         or exercise thereof;

 

		(b)	Challenge
                                         any right, title or interest of Supplier or its licensors in or to Supplier Intellectual
                                         Property Rights;

 

		(c)	Make
                                         any claim or take any action adverse to Supplier’s or its licensors’ ownership
                                         of Supplier Intellectual Property Rights;

 

		(d)	Register
                                         or apply for registrations, anywhere in the world, for Supplier’s trademarks or
                                         any other trademark that is similar to Supplier’s trademarks or that incorporates
                                         Supplier’s trademarks;

 

		(e)	Misappropriate
                                         any of Supplier’s trademarks for use as a domain name without prior written consent
                                         from Supplier; or

 

		(f)	Alter,
                                         obscure or remove any of Supplier’s trademark or copyright notices or any other
                                         proprietary rights notices placed on the Products purchased under this Agreement, marketing
                                         materials or other materials that Supplier may provide

 

		11.3	Pre-Existing
                                         Intellectual Property. Unless as otherwise agreed to in writing by the Parties, each
                                         Party will retain its Intellectual Property Rights that pre-exist the Effective Date
                                         or were obtained outside of this Agreement.

 

		12.	REPRESENTATIONS
                                         AND WARRANTIES.

 

		12.1	Supplier’s
                                         Representations and Warranties. Supplier represents and warrants to Buyer that:

 

		(a)	It
                                         is in material compliance with all applicable Laws relating to this Agreement, the Product
                                         and the operation of its business;

 

		(b)	It
                                         has obtained all licenses, authorizations, approvals, consents or permits required to
                                         conduct its business generally and to perform its obligations under this Agreement; and

 

		(c)	The
                                         Products will materially comply with the specifications for such Products set forth in
                                         Exhibit A.

 

		12.2	Buyer’s
                                         Representations and Warranties. Buyer represents and warrants to Supplier that:

 

		(a)	It
                                         is in material compliance with all applicable Laws relating to this Agreement, the Product
                                         and the operation of its business;

 

		(b)	It
                                         has obtained all licenses, authorizations, approvals, consents or permits required to
                                         conduct its business generally and to perform its obligations under this Agreement;

 

		(c)	It
                                         has the full right, corporate power and authority to enter into this Agreement and to
                                         perform its obligations hereunder;

 

		(d)	All
                                         financial information that it has provided to Supplier is true and accurate and fairly
                                         represents Buyer’s financial condition; and the execution of this Agreement by
                                         its Authorized Representative, and the delivery of this Agreement by Buyer, have been
                                         duly authorized by all necessary corporate action on the part of the Buyer.

 

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EXCEPT
AS SET FORTH IN THIS SECTION, (A) NEITHER SUPPLIER NOR ANY PERSON ON SUPPLIER’S BEHALF HAS MADE OR MAKES ANY EXPRESS OR
IMPLIED REPRESENTATION OR WARRANTY WHATSOEVER, EITHER ORAL OR WRITTEN, INCLUDING ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR
A PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT OR PERFORMANCE OF GOODS OR PRODUCTS TO STANDARDS SPECIFIC TO THE COUNTRY OF IMPORT,
WHETHER ARISING BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE, ALL OF WHICH ARE EXPRESSLY DISCLAIMED,
AND (B) BUYER ACKNOWLEDGES THAT IT HAS NOT RELIED UPON ANY REPRESENTATION OR WARRANTY MADE BY SUPPLIER, OR ANY OTHER PERSON ON
SUPPLIER’S BEHALF, EXCEPT AS SPECIFICALLY PROVIDED IN THIS SECTION OF THE AGREEMENT.

 

		13.	GENERAL.

 

		13.1	Language.
                                         The Parties hereto have agreed that this Agreement be drafted in English only. All contractual
                                         documents and all correspondence, invoices, notices and other documents shall be submitted
                                         in English.

 

		13.2	No
                                         Assignment. Neither Party may assign or transfer its rights or obligations in this
                                         agreement (by operation of law or otherwise), in whole or in part, to any person or entity
                                         without the prior written consent of the other Party, which consent shall not be unreasonable
                                         withheld; provided, however, that either party may assign such rights or obligations
                                         to (a) a successor or surviving corporation resulting from a merger, consolidation, sale
                                         of assets or stock or other corporate reorganization, or (b) its parent or affiliate,
                                         upon condition that the assignee will assume all of the Party’s obligations hereunder.
                                         Any attempt to assign or delegate in violation of this clause will be void.

 

		13.3	Severability.
                                         If any provision of this Agreement is found to be invalid, illegal, or unenforceable
                                         in any respect, the remaining provisions of this Agreement will remain in full force
                                         and effect.

 

		13.4	Notices.
                                         Each Party must provide notices or other communications to the other Party in writing
                                         by: (a) certified mail, hand delivery or delivery by a courier service to the address
                                         below set forth (or such other address as may have been furnished by or on behalf of
                                         such party by like notice), (b) facsimile with receipt of a “transmission ok”
                                         acknowledgement, or (c) e-mail with a read receipt. Communications sent by facsimile
                                         or e-mail shall be deemed effectively served upon dispatch, if receipt is confirmed electronically.
                                         Communications sent by certified mail or courier service shall be deemed effectively
                                         served three (3) calendar days after deposit. All other general correspondence may be
                                         communicated by electronic means (e-mail).

 

	 	Buyer	Supplier
    
	 	Republic
    Engineers Pte. Ltd.	Aircom
    Telecom LLC
	 	63
    Ubi Avenue 1, #06-01	1F.,
    No. 13, Ln. 120, Sec. 1 Neihu Rd.
	 	Singapore,
                                         408937

        Attn:
        _________________
	Taiwan

        Attn:
        ______________________

 

		13.5	No
                                         Waiver. No waiver by either Party of a breach of any term, provision or condition
                                         of this Agreement by the other Party shall constitute a waiver of any prior, concurrent
                                         or subsequent breach of the same or any other provision, and no waiver will be binding
                                         unless made in an express writing signed by the waiving Party.

 

		13.6	Counterparts.
                                         This Agreement may be executed in counterparts, each of which shall be deemed an original,
                                         and all of such counterparts together shall constitute one and the same instrument binding
                                         on both parties. Facsimile or electronically authenticated signatures will be considered
                                         binding for all purposes.

 

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		13.7	Headings.
                                         The section and subsection headings used in this Agreement are intended for reference
                                         purposes only and shall not affect the interpretation or construction of any provision
                                         of this Agreement.

 

		13.8	Governing
                                         Law, Venue. This Agreement shall be governed by, and construed in accordance with,
                                         the laws of California, without regard to its conflicts of laws provisions. The Parties
                                         agree that the United Nations Convention on Contracts for the International Sale of Goods
                                         does not apply to this Agreement. Each Party irrevocably and unconditionally submits
                                         to the exclusive jurisdiction of such courts and agrees to bring any such action, litigation
                                         or proceeding arising in connection with this Agreement only in the courts of California.
                                         If for any reason venue is not accepted in California, the Parties irrevocably consent
                                         as provided in this Section to the exclusive jurisdiction of the courts of Taiwan. Each
                                         Party agrees that a final judgment in any such action, litigation or proceeding is conclusive
                                         and may be enforced in other jurisdictions by suit on the judgment or in any other manner
                                         provided by law.

 

		13.9	Relationship
                                         of the Parties. The Parties are independent contractors. Nothing in this Agreement
                                         shall be construed to create or imply partnership, joint venture, agency relationship
                                         or contract of employment. Neither Party has the right to incur any obligation on behalf
                                         of the other Party.

 

		13.10	Force
                                         Majeure. Supplier shall not be liable or responsible to Buyer, nor be deemed to have
                                         defaulted under or breached this Agreement, for any failure or delay in fulfilling or
                                         performing any term of this Agreement, if such failure or delay is caused by or results
                                         from acts beyond Supplier’s control, including: (a) acts of nature; (b) flood,
                                         fire, earthquake or explosion; (c) war, invasion, hostilities (whether war is declared
                                         or not), terrorist threats or acts, riot or other civil unrest; (d) requirements of law;
                                         (e) actions, embargoes or blockades in effect on or after the date of this Agreement;
                                         (f) action by any governmental authority (whether or not having the effect of law); (g)
                                         national or regional emergency; (h) strikes, labor stoppages or slowdowns or other industrial
                                         disturbances; (i) shortages of or delays in receiving raw materials; or (j) shortage
                                         of adequate power or transportation facilities (each, a “Force Majeure Event”).
                                         Supplier shall use its best efforts to notify Buyer within three (3) days after the occurrence
                                         of such Force Majeure event, and the cessation thereof.

 

		13.11	Press
                                         Releases. Neither party shall issue any press release concerning this Agreement without
                                         the other Party’s consent. Neither party may use the name, trade name, trademark,
                                         logo, acronym or other designation of the other in connection with any press release,
                                         advertising, publicity materials or otherwise without the prior written consent of the
                                         other Party.

 

		13.12	Order
                                         of Precedence. Any inconsistency in the provisions of this Agreement will be resolved
                                         by giving precedence in the following order: (1) The applicable Amendment that gives
                                         rise to the inconsistency in provisions, (2) this Agreement, (3) Exhibits, and (4) any
                                         other document incorporated by express reference as part of the Agreement; such that
                                         the provision in the higher ranked document, to the extent of the inconsistency, will
                                         prevail.

 

		13.13	Entire
                                         Agreement. This Agreement contains the entire agreement between the Parties with
                                         respect the supply of Products to Buyer and Product Support and supersedes any prior
                                         and contemporaneous representations or agreements, oral or written, and all other communications
                                         between the Parties relating to the supply of Products to Buyer and Product Support.
                                         This Agreement may not be altered or modified without the express written consent of
                                         all Parties.

 

		14.	PERSONAL
                                         GUARANTEE. Pursuant to a separate agreement
                                         executed as of the Effective Date, Chinniah Ahnandaraja has absolutely, unconditionally,
                                         and irrevocably guaranteed all obligations of the Buyer to Supplier pursuant to this
                                         Agreement, and Supplier shall have no obligations hereunder unless and until such Guaranty
                                         Agreement has been duly executed by Chinniah Ahnandaraja and delivered to Supplier.

 

[Signature
Page Follows]

 

    9

     

    

 

IN
WITNESS WHEREOF the Parties hereto, by their duly Authorized Representatives, have executed this Agreement as of the date first
set forth above.

 

	AIRCOM TELECOM LLC	 	REPUBLIC ENGINEERS PTE. LTD.
	 	 	 	 	 
	By:	 	 	By:	 
	Name:  	Robin Tseng	 	Name: 	Chinniah Ahnandaraja
	Title: 	CEO	 	Title:	Executive Director

 

    10

     

    

 

EXHIBIT
A

 

PRODUCT
DESCRIPTION

 

PRODUCT

 

The
Product is defined as the Aerkomm K++ System (“Product”), which is comprised of the following parts as well
as supporting documentation. Together in the quantities identified in the parts list below, they comprise one shipset (the “Shipset”).

 

Parts
List – Aerkomm K++ System

 

**CONFIDENTIAL
INFORMATION - REDACTED**2

 

 

 

 

 

 

		2	Confidential
Information has been omitted from this Agreement and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to this omitted information.

 

    11

     

    

 

EXHIBIT
B

 

PRODUCT
AND PRICING SHEET

 

PRICING

 

The
price listed below is a firm fixed price for the initial (5) years from the Effective Date of this Agreement and is valid for
Purchase Orders for the MOQ and an optional additional 30 Shipsets.

 

USD
**CONFIDENTIAL INFORMATION - REDACTED**3
 per Shipset

 

 

 

 

 

 

 

		3	Confidential
Information has been omitted from this Agreement and filed separately with the Securities and Exchange Commission. Confidential
treatment has been requested with respect to this omitted information.

 

    12

     

    

 

EXHIBIT
C

 

PRODUCT
WARRANTY AND SUPPORT TERMS

 

		1)	WARRANTY.
                                         Supplier warrants to Buyer that:

 

		a)	at
                                         the time of Delivery, each Product will conform to the applicable product requirements
                                         and specifications; and perform and operate as intended and as set forth in the applicable
                                         requirements and specifications of Exhibit A;

 

		b)	at
                                         the time of Delivery, each Product will be free from defects in material, workmanship
                                         and design, including selection of materials and process of manufacture; 

 

		c)	at
                                         the time of Delivery, the Product will not contain or introduce viruses or other harmful
                                         elements designed to disrupt the orderly operation of, or impair the integrity of data
                                         files resident on, any of Buyer’s hardware, and that Supplier will use then-current
                                         and comprehensive virus detection/scanning programs, from a reputable vendor of anti-virus
                                         software, to protect the Product; and 

 

		d)	for
                                         airborne equipment, Supplier shall attach the necessary airworthiness Certification document(s)
                                         to permit installation of the Product on to an aircraft in accordance with the latest
                                         revision of the airworthiness regulations applicable for the importing country. The Certification
                                         document(s) shall show the configuration / modification status of each Product.

 

		2)	PRODUCT
                                         WARRANTY LIMITATION. The foregoing warranties
                                         do not apply to any Product that:

 

		a)	has
                                         been subjected to abuse, misuse, neglect, negligence, accident, improper testing, improper
                                         installation, improper storage, improper handling, abnormal physical stress, abnormal
                                         environmental conditions or use contrary to any instructions issued by Supplier;

 

		b)	has
                                         been reconstructed, repaired or altered by persons other than Supplier or its Authorized
                                         Representative; or 

 

		c)	has
                                         been used with any third-party Products, hardware or product that has not been previously
                                         approved in writing by Supplier.

 

		3)	WARRANTY
                                         PERIOD. Supplier will provide the remedies
                                         set forth in Section 4 below, if a Product fails to comply in any respect with the warranty
                                         set forth in Section 1 of this Exhibit C during the applicable Warranty Period.

 

		4)	REMEDIES.

 

		a)	Warranty
                                         on Repairs. The following warranties will apply to repairs:

 

		i)	As
                                         to a defect in material or workmanship or conformance to the Order, a repair will be
                                         free of such defects for the remainder of the initial Warranty Period set forth in the
                                         Agreement or for period of ninety (90) days from the date of return shipment of the repaired
                                         Product by Supplier to Buyer, whichever ends later.

 

		ii)	Buyer
                                         shall notify Supplier, in writing, of any alleged claim or defect within ten (10) business
                                         days from the date Buyer discovers, or upon reasonable inspection should have discovered,
                                         such alleged claim or defect (but in any event before the expiration of the initial Warranty
                                         Period).

 

		iii)	Buyer
                                         shall arrange for the return of such defective Product pursuant to the Return Material
                                         Authorization (“RMA”) number to be obtained by contacting Supplier, and ship
                                         at its expense and risk of loss, such Products to Supplier’s premises for inspection
                                         and testing by Supplier.

 

		iv)	if
                                         Supplier’s inspection and testing reveals that such Products are defective and
                                         any such defect has not been caused or contributed to by any of the factors described
                                         under Section 2 above, Supplier shall in its sole discretion and at its expense, repair
                                         or replace such defective Products. 

 

    13

     

    

 

		v)	if
                                         Supplier’s inspection and testing finds no such defect (“No Fault Found,
                                         or NFF”), the fees for the NFF shall be charged to Buyer at the rate of six-hundred
                                         US dollars (US$600) per Product unit or at Supplier’s then-current rate; and

 

		vi)	except
                                         for the NFF Products, Supplier shall ship to Buyer, at Supplier’s expense and risk
                                         of loss, the repaired or replaced Products to a location designated by Buyer.

 

In
no event shall Buyer or its Customers reconstruct, repair, alter or replace any Product, in whole or in part, either itself or
by or through any third party.

 

SUBJECT
TO SECTION 11.1 OF THE AGREEMENT AND SECTION 2 OF THIS EXHIBIT C, THIS SECTION 4 OF EXHIBIT C SETS FORTH BUYER’S SOLE REMEDY
AND SUPPLIER’S ENTIRE LIABILITY UNDER THE AGREEMENT OR THE PSA FOR ANY BREACH OF THE PRODUCT WARRANTY SET FORTH IN SECTION
1 ABOVE.

 

		b)	Turnaround
                                         Time. Turnaround Time (“TAT”) for above repairs begins on the date that Supplier
                                         receives the Product, and ends on the date the repaired Product is available for shipment.
                                         Supplier’s TAT will be on average thirty (30) business days.

 

    14

     

    

 

EXHIBIT
D

 

DEFINITIONS

 

Affiliate.
The term “Affiliate” means an entity, which directly or indirectly, owns or controls, is owned or is controlled by
or is under common ownership or control with, another entity. “Control” means the power to direct the management or
affairs of an entity, and “ownership” means the beneficial ownership of more than 50% of the voting equity securities
or other equivalent voting interests of the entity.

 

Amendment.
The term “Amendment” means any modification, addition to, or deletion of the terms and conditions of this Agreement,
or any Exhibit, that is executed by an Authorized Representative of each Party and incorporated by reference herein.

 

Authorized
Representative. The term “Authorized Representative” means an individual with authority to legally bind the Party.

 

Aviation
Authority. The term “Aviation Authority” means the FAA, European Aviation Safety Agency (“EASA”),
Australian Civil Aviation Safety Authority (“CASA”), or any other regional aviation authority exercising the same
or substantially the same jurisdiction or authority within their respective region.

 

Certification.
The term “Certification” means providing an FAA 8130-3 tag, CAAC, or EASA or equivalent documentation.

 

Change.
The term “Change” means any change, Amendment and/or modification to the Product which modifies the. form,
fit or function of the Product based on a change introduced by: (1) Buyer, requiring a change in the Product Design specified
in the Technical Requirements; (2) Supplier requesting a change in the Product Design in the · Technical Requirements;
and (3) a change in Law or Regulation or new interpretation of existing Law or Regulation (“Change in Regulation”)
issued by the Aviation Authority having jurisdiction over the Product and requiring mandatory changes to Product Design.

 

Claim.
The term “Claim” means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of
violation, proceeding, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal, administrative,
regulatory or other, whether at law, in equity or otherwise brought against a Person entitled to indemnification under Section
10.

 

Data.
The term “Data” means the information contained, conveyed or embodied in Materials such as manuals, instructions,
computer files (including Loadable Software), provisioning files, indexes, catalogs, drawings or service bulletins.

 

Exhibit.
The term “Exhibit” means any transaction document (whether or not identified as an Exhibit) in which each project
outline agreed to by Supplier and Buyer in accordance with the terms and conditions of this Agreement, and preferably in the form
attached hereto as Exhibit A. Both Exhibits and Statements of Work shall be executed by the parties and shall form a part of this
Agreement.

 

Governmental
Authority. The term “Governmental Authority” means any federal, state, local or foreign government or political
subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any arbitrator, court or
tribunal of competent jurisdiction.

 

Intellectual
Property Rights. The term “Intellectual Property Rights” means all industrial and other intellectual property
rights comprising or relating to: (a) patents; (b) trademarks; (c) internet domain names, whether or not trademarks, registered
by any authorized private registrar or Governmental Authority, web addresses, web pages, website and URLs; (d) works of authorship,
expressions, designs and design registrations, whether or not copyrightable, including copyrights and copyrightable works, software
and firmware, data, data files, and databases and other specifications and documentation; (e) trade secrets; and (f) all industrial
and other intellectual property rights, and all rights, interests and protections that are associated with, equivalent or similar
to, or required for the exercise of, any of the foregoing, however arising, in each case whether registered or unregistered and
including all registrations and applications for, and renewals or extensions of, such rights or forms of protection pursuant to
the Laws of any jurisdiction throughout in any part of the world.

 

Law.
The term “Law” means any statute, law, ordinance, regulation, rule, code, constitution, treaty, common law, governmental
order or other requirement or rule of law of any Governmental Authority.

 

Notice.
The term “Notice” means Buyer’s written notification to Supplier of an alleged defect in Supplier’s Product
to establish rights to warranty remedies for all affected, in-warranty Products, from the date such notice is received by Supplier
until the claimed defect is Corrected.

 

Order(s).
The term “Order(s)” means a Purchase Order and/or Repair Order.

 

    15

     

    

 

Person.
The term “Person” means any individual, partnership, corporation, trust, limited liability entity, unincorporated
organization, association, Governmental Authority or any other entity.

 

Purchase
Order. The term “Purchase Order” means Buyer’s purchase order issued to Supplier under the Agreement, including
all terms and conditions attached to, or incorporated into, such purchase order.

 

Repair.
The term “Repair” means to make a Product serviceable by replacing or modifying failed or damaged parts, according
to Supplier’s maintenance manual.

 

Services.
 The term “Services” means certain strategic project services, support services and other services that shall,
from time to time, be rendered by Supplier for Buyer pursuant to an Exhibit.

 

Spare
Part(s). The term “Spare Part(s)” means any Product intended to be used as a replacement Product for installation
in an aircraft or for the support of an aircraft.

 

Specification.
The term “Specification” means specifications for Services and Products to be provided in an Exhibit or Statement
of Work.

 

Supplier
Intellectual Property Rights. The term “Supplier Intellectual Property Rights” means Intellectual Property that
originated, is made, invented, developed, created, conceived, reduced to practice or purchased by Supplier at its own expense
prior to the Effective Date or during the Term of the Agreement and the Supplier has the necessary rights to use or sublicense
under this Agreement.

 

Warranty
Period. The term “Warranty Period” means that the Supplier warrants to Buyer that
all Products provided hereunder shall be under warranty for a period of three (3) years after shipment from Supplier.

 

    16Exhibit 4.03

 

WARRANT AGENT AGREEMENT

 

WARRANT AGENT AGREEMENT (this “Warrant
Agreement”) dated as of _________, 2018 (the “Issuance Date”) between Nexeon Medsystems Inc, a company
incorporated under the laws of the State of Nevada (the “Company”), and Equity Stock Transfer, LLC (the “Warrant
Agent”).

 

WHEREAS, pursuant to the terms of that
certain Underwriting Agreement (“Underwriting Agreement”), dated _________, 2018, by and among the Company and
ThinkEquity, a division of Fordham Financial Management, Inc., as representative of the underwriters set forth therein, the Company
is engaged in a public offering (the “Offering”) of up to _________ shares (the “Shares”)
of common stock, par value $0.001 per share (the “Common Stock”) of the Company and up to _________ warrants
(the “Warrants”) to purchase shares of Common Stock (the “Warrant Shares”), including Shares
and Warrants issuable pursuant to the underwriters’ over-allotment option;

  

WHEREAS, the Company has filed with the
Securities and Exchange Commission (the “Commission”) a Registration Statement, No. 333-224715, on Form S-1
(as the same may be amended from time to time, the “Registration Statement”), for the registration under the
Securities Act of 1933, as amended (the “Securities Act”), of the Shares, Warrants and Warrant Shares, and such
Registration Statement was declared effective on _______, 2018;

 

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

 

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

 

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

 

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

 

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

 

2. Warrants.

 

2.1 Form of Warrants. The Warrants
shall be registered securities and shall be initially evidenced by a global Warrant certificate (“Global Certificate”)
in the form of Annex A to this Warrant Agreement, which shall be deposited on behalf of the Company with a custodian
for The Depository Trust Company (“DTC”) and registered in the name of Cede & Co., a nominee of DTC. If
DTC subsequently ceases to make its settlement system available for the Warrants, the Company may instruct the Warrant Agent regarding
making arrangements for book-entry settlement. In the event that the Warrants are not eligible for, or it is no longer necessary
to have the Warrants available in, registration in the name of Cede & Co., a nominee of DTC, the Company may instruct the Warrant
Agent to provide written instructions to DTC to deliver to the Warrant Agent for cancellation the Global Certificate, and the Company
shall instruct the Warrant Agent to deliver to each Holder (as defined below) separate certificates evidencing Warrants (“Definitive
Certificates” and, together with the Global Certificate, “Warrant Certificates”), in the form of Annex
C to this Warrant Agreement. The Warrants represented by the Global Certificate are referred to as “Global Warrants”.

 

    -1-

     

    

 

2.2. Issuance and Registration
of Warrants.

 

2.2.1. Warrant Register. The
Warrant Agent shall maintain books (“Warrant Register”) for the registration of original issuance and the registration
of transfer of the Warrants. Any Person in whose name ownership of a beneficial interest in the Warrants evidenced by a Global
Certificate is recorded in the records maintained by DTC or its nominee shall be deemed the “beneficial owner” thereof,
provided that all such beneficial interests shall be held through a Participant (as defined below), which shall be the registered
holder of such Warrants.

 

2.2.2. Issuance of Warrants.
Upon the initial issuance of the Warrants, the Warrant Agent shall issue the Global Certificate and deliver the Warrants in the
DTC settlement system in accordance with written instructions delivered to the Warrant Agent by the Company. Ownership of beneficial
interests in the Warrants shall be shown on, and the transfer of such ownership shall be effected through, records maintained (i)
by DTC and (ii) by institutions that have accounts with DTC (each, a “Participant”), subject to a Holder’s
right to elect to receive a Definitive Certificate. Any Holder desiring to elect to receive a Warrant in certificated form shall
make such request in writing delivered to the Warrant Agent pursuant to Section 2.2.8, and shall surrender to the Warrant Agent
the interest of the Holder on the books of the Participant evidencing the Warrants which are to be represented by a Definitive
Certificate through the DTC settlement system. Thereupon, the Warrant Agent shall countersign and deliver to the person entitled
thereto a Definitive Certificate or Definitive Certificates, as the case may be, as so requested.

 

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

 

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

 

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

 

    -2-

     

    

 

2.2.6. Loss, Theft and Mutilation
of Warrant Certificates. Upon receipt by the Company and the Warrant Agent of evidence reasonably satisfactory to them of the
loss, theft, destruction or mutilation of a Warrant Certificate, and, in case of loss, theft or destruction, of indemnity or security
in customary form and amount, (which shall in no event include the posting of any bond), and reimbursement to the Company and the
Warrant Agent of all reasonable expenses incidental thereto, and upon surrender to the Warrant Agent and cancellation of the Warrant
Certificate if mutilated, the Warrant Agent shall, on behalf of the Company, countersign and deliver a new Warrant Certificate
of like tenor to the Holder in lieu of the Warrant Certificate so lost, stolen, destroyed or mutilated. The Warrant Agent may charge
the Holder an administrative fee for processing the replacement of lost Warrant Certificates, which shall be charged only once
in instances where a single surety bond obtained covers multiple certificates. The Warrant Agent may receive compensation from
the surety companies or surety bond agents for administrative services provided to them.

 

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

 

2.2.8. Warrant Certificate Request.
A Holder has the right to elect at any time or from time to time a Warrant Exchange (as defined below) pursuant to a Warrant Certificate
Request Notice (as defined below). Upon written notice by a Holder to the Warrant Agent for the exchange of some or all of such
Holder’s Global Warrants for a Definitive Certificate evidencing the same number of Warrants, which request shall be in the
form attached hereto as Annex E (a “Warrant Certificate Request Notice” and the date of delivery of such Warrant Certificate
Request Notice by the Holder, the “Warrant Certificate Request Notice Date” and the deemed surrender upon delivery
by the Holder of a number of Global Warrants for the same number of Warrants evidenced by a Definitive Certificate, a “Warrant
Exchange”), the Warrant Agent shall promptly effect the Warrant Exchange and shall promptly issue and deliver to the Holder
a Definitive Certificate for such number of Warrants in the name set forth in the Warrant Certificate Request Notice. Such Definitive
Certificate shall be dated the original issue date of the Warrants, shall be manually executed by an authorized signatory of the
Company, shall be in the form attached hereto as Annex C, and shall be reasonably acceptable in all respects to such Holder.
In connection with a Warrant Exchange, the Company agrees to deliver, or to direct the Warrant Agent to deliver, the Definitive
Certificate to the Holder within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard
Settlement Period (as defined herein) of the Warrant Certificate Request Notice pursuant to the delivery instructions in the Warrant
Certificate Request Notice (“Warrant Certificate Delivery Date”). If the Company fails for any reason to deliver to
the Holder the Definitive Certificate subject to the Warrant Certificate Request Notice by the Warrant Certificate Delivery Date,
the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares evidenced
by such Definitive Certificate (based on the VWAP (as defined herein) of the Common Stock on the Warrant Certificate Request Notice
Date), $10 per Business Day for each Business Day after such Warrant Certificate Delivery Date until such Definitive Certificate
is delivered or, prior to delivery of such Warrant Certificate, the Holder rescinds such Warrant Exchange. The Company covenants
and agrees that, upon the date of delivery of the Warrant Certificate Request Notice, the Holder shall be deemed to be the holder
of the Definitive Certificate and, notwithstanding anything to the contrary set forth herein, the Definitive Certificate shall
be deemed for all purposes to contain all of the terms and conditions of the Warrants evidenced by such Warrant Certificate and
the terms of this Agreement, other than Sections 3(c) and 9 herein, shall not apply to the Warrants evidenced by the Definitive
Certificate.

 

2.2.9. For purposes of clarity, if there
is a conflict between the express terms of this Warrant Agreement and the Definitive certificate in the form of Annex C
hereto with respect to terms of the Warrants, the terms of the Definitive Certificate shall govern and control.

 

3. Terms and Exercise of Warrants.

 

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

 

    -3-

     

    

 

3.2. Duration of Warrants.
Warrants may be exercised only during the period (“Exercise Period”) commencing on the Issuance Date and terminating
at 5:00 P.M., New York City time (the “close of business”) on ______, 20__ (“Expiration
Date”). Each Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder and
all rights in respect thereof under this Warrant Agreement shall cease at the close of business on the Expiration Date.

 

3.3. Exercise of Warrants.

 

3.3.1. Exercise and Payment.

 

(a)        Subject
to the provisions of this Warrant Agreement, a Holder, or the Participant on behalf of the Holder, upon the instruction of the
Holder, may exercise a Warrant by delivering, not later than 5:00 P.M., New York time, on any Business Day during the Exercise
Period (the “Exercise Date”) to the Warrant Agent at its office designated for such purpose (i) the Warrants
to be exercised shown on the records of the DTC (or in Definitive Certificate form, if such Warrants have been certificated and
are being exercised in full, to the Warrant Agent) to an account of the Warrant Agent at the DTC designated for such purpose in
writing by the Warrant Agent to the DTC from time to time, (ii) an election to purchase the Warrant Shares underlying the Warrants
to be exercised, in the form annexed as Annex B hereto (“Notice of Exercise”), properly delivered by
the Participant (or the Holder ,if the Warrants are certificated) in accordance with the DTC’s procedures, and (iii) the
Exercise Price for each Warrant to be exercised, and all applicable taxes and charges due in connection with the exercise of such
Warrants. In the event the Holder holds a Warrant in certificated form, the Exercise Price for each Warrant to be exercised, and
all applicable taxes and charges due in connection with the exercise of such Warrant shall be paid in lawful money of the United
States of America by certified or official bank check or by bank wire transfer in immediately available funds by the Holder directly
to the Company. In the event the Holder does not have a Warrant in certificated form, the Participant shall pay the Exercise Price
for each Warrant to be exercised, and all applicable taxes and charges due in connection with the exercise of such Warrant on behalf
of the Holder, subject to the availability of funds provided to the Participate by the Holder for such exercise.

 

If any of (A) the Warrants,
(B) the Notice of Exercise or (C) the Exercise Price therefor, and all applicable taxes and charges due in connection therewith,
is received by the Warrant Agent after 5:00 P.M., New York time, on any date, or on a date that is not a Business Day, the Warrants
with respect thereto will be deemed to have been received and exercised on the Business Day next succeeding such date. For the
avoidance of doubt, the “Exercise Date” will be the date the materials in the foregoing sentence are received by the
Warrant Agent (if by 5:00 P.M., New York time), or the following Business Day (if after 5:00 P.M., New York time), regardless of
any earlier date written on the materials. If the Notice of Exercise is received after the Expiration Date, the exercise thereof
will be null and void and any funds delivered to the Warrant Agent will be returned to the Holder or Participant, as the case may
be, as soon as practicable. In no event will interest accrue on any funds deposited with the Warrant Agent in respect of an exercise
or attempted exercise of Warrants.

 

The Warrant Agent shall
deposit all funds received by it in payment of the Exercise Price in the account of the Company maintained with the Warrant Agent
for such purpose and shall advise the Company via telephone at the end of each day on which funds for the exercise of the Warrants
are received of the amount so deposited to its account. The Warrant Agent shall promptly confirm such telephonic advice to the
Company in writing. The Warrant Agent shall, upon receipt of written instructions in a form and substance reasonably satisfactory
to the Warrant Agent from the Company, pay the funds received by it in accordance with such written instructions, such payment
or payments to be made by wire transfer within one (1) Business Day of receipt of such instructions.

 

No ink-original Notice
of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of
Exercise form be required. Notwithstanding anything herein to the contrary, if the Warrant is certificated, the Holder shall not
be required to physically surrender a Warrant Certificate to the Company until the Holder has purchased all of the Warrant Shares
available thereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender such Warrant to the
Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial
exercises of a Warrant resulting in purchases of a portion of the total number of Warrant Shares available thereunder shall have
the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number
of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and
the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day of receipt
of such notice. The Holder and any assignee, by acceptance of a Warrant, acknowledge and agree that, by reason of the provisions
of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available
for purchase hereunder at any given time may be less than the amount stated on the face thereof.  

 

    -4-

     

    

 

3.3.2. Issuance of Warrant Shares.
The Warrant Agent shall, by 11:00 a.m. New York time on the Business Day following the Exercise Date of any Warrant, advise the
Company or, if instructed in writing to do so by the Company, the transfer agent and registrar for the Company’s Common Stock,
in respect of (i) the number of Warrant Shares indicated on the Notice of Exercise as issuable upon such exercise with respect
to such exercised Warrants, (ii) the instructions of each Holder or Participant, as the case may be, provided to the Warrant Agent
with respect to the notation that shall be made to the records maintained by the DTC, its nominee for each Warrant, or a Participant,
as appropriate, evidencing the balance, if any, of the Warrants remaining after such exercise and (iii) such other information
as the Company shall reasonably request.

 

The Company shall, by 5:00 p.m., New York
time, on the second (2nd) Business Day next succeeding the Exercise Date (such date, the “Warrant Share Delivery
Date”) of any Warrant, and subject to the clearance of the funds in payment of the Exercise Price, use its reasonable
best efforts to cause its transfer agent to electronically transmit the Warrant Shares issuable upon exercise to the DTC by crediting
the account of the DTC or of the Participant through its Deposit Withdrawal Agent Commission system. The time periods for delivery
described in the immediately preceding paragraph shall apply to the electronic transmittals described herein.

 

Upon delivery of the Notice of Exercise,
the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to
which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the
aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) two (2) Trading
Days of and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the Notice of Exercise.
If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant
Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000
of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise),
$10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue)
for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise.
The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding
and exercisable. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a
number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date
of delivery of the Notice of Exercise.

 

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

 

3.3.4. No Fractional Exercise.
No fractional Warrant Shares will be issued upon the exercise of the Warrant. If, by reason of any adjustment made pursuant to
Section 4, a Holder would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a share, the Company
shall, upon such exercise, round up or down, as applicable, to the nearest whole number the number of Warrant Shares to be issued
to such Holder.

 

3.3.5 No Transfer Taxes. Issuance
of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect
of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall
be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however,
that in the event Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant, when surrendered for
exercise, shall be accompanied by the assignment form attached to the Warrant duly executed by the Holder and the Company may require,
as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall
pay all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the DTC (or another established
clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares.

 

    -5-

     

    

 

3.3.6 [RESERVED]

 

3.3.7 Restrictive Legend Events;
Cashless Exercise Under Certain Circumstances.

 

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

 

(ii) During any time in which a Restrictive
Legend Event is occurring (but not after any such Restrictive Legend Event has been cured or otherwise ceases to exist), the Warrant
may also be exercisable on a cashless basis. Notwithstanding anything herein to the contrary, the Company shall not be required
to make any cash payments or net cash settlement to the Holder in lieu of delivery of the Warrant Shares. Upon a “cashless
exercise”, the Holder shall be entitled to receive the number of Warrant Shares equal to the quotient obtained by dividing
(A-B) (X) by (A), where:

 

(A) = the
last VWAP immediately preceding the date of exercise giving rise to the applicable “cashless exercise”, as set forth
in the applicable Election to Purchase (to clarify, the “last VWAP” will be the last VWAP as calculated over an entire
Trading Day such that, in the event that this Warrant is exercised at a time that the Trading Market is open, the prior Trading
Day’s VWAP shall be used in this calculation);

 

(B) = the
Exercise Price of the Warrant, as adjusted as set forth herein; and

 

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

 

If the Warrant Shares are issued in such
a cashless exercise, the Company acknowledges and agrees that, in accordance with Section 3(a)(9) of the Securities Act, the Warrant
Shares shall take on the registered characteristics of the Warrants being exercised and the Company agrees not to take any position
contrary thereto. Upon receipt of an Election to Purchase for a cashless exercise, the Warrant Agent will promptly deliver a copy
of the Election to Purchase to the Company to confirm the number of Warrant Shares issuable in connection with the cashless exercise.
The Company shall calculate and transmit to the Warrant Agent in a written notice, and the Warrant Agent shall have no duty, responsibility
or obligation under this section to calculate, the number of Warrant Shares issuable in connection with any cashless exercise.
The Warrant Agent shall be entitled to rely conclusively on any such written notice provided by the Company, and the Warrant Agent
shall not be liable for any action taken, suffered or omitted to be taken by it in accordance with such written instructions or
pursuant to this Warrant Agreement. Notwithstanding anything herein to the contrary, on the Termination Date, this Warrant shall
be automatically exercised via cashless exercise pursuant to this Section 3.3.7.

 

    -6-

     

    

 

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

 

3.3.9 Compensation for Buy-In on
Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder, if the Company
fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 3.3.2(b)
above pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its
broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares
of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving
upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which
(x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased
exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the
Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation
was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant
Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder
the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery
obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In
with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation
of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The
Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon
request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other
remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant
as required pursuant to the terms hereof.

  

3.3.10 Beneficial Ownership Limitation.
The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of a Warrant,
pursuant to Section 3 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the
applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group
together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)), would beneficially
own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number
of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number
of shares of Common Stock issuable upon exercise of such Warrant with respect to which such determination is being made, but shall
exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, non-exercised portion
of such Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion
of the unexercised or non-converted portion of any other securities of the Company (including, without limitation, any other securities
of the Company which would entitle the holder thereof to acquire at any time shares of Common Stock, including, without limitation,
any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable
for, or otherwise entitles the holder thereof to receive, shares of Common Stock (“Common Stock Equivalents”)) subject
to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any
of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence, for purposes of this Section 3.3.10,
beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in
compliance with Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) and the Holder is
solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained
in this Section 3.3.10 applies, the determination of whether a Warrant is exercisable (in relation to other securities owned by
the Holder together with any Affiliates and Attribution Parties) and of which portion of a Warrant is exercisable shall be in the
sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination
of whether a Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution
Parties) and of which portion of a Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the
Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any
group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. For purposes of this Section 3.3.10, in determining the number of outstanding shares of Common Stock, a
Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic
or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more
recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. 
Upon the written or oral request of a Holder, the Company shall within two (2) Trading Days confirm orally and in writing to the
Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock
shall be determined after giving effect to the conversion or exercise of securities of the Company, including such Warrant, by
the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock
was reported. The “Beneficial Ownership Limitation” shall be 4.99% (or, upon election by a Holder prior to the
issuance of any Warrants, 9.99%) of the number of shares of the Common Stock outstanding immediately after giving effect to the
issuance of shares of Common Stock issuable upon exercise of a Warrant. The Holder, upon notice to the Company, may increase or
decrease the Beneficial Ownership Limitation provisions of this Section 3.3.10, provided that the Beneficial Ownership Limitation
in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance
of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 3.3.10 shall continue
to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice
is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in
strict conformity with the terms of this Section 3.3.10 to correct this paragraph (or any portion hereof) which may be defective
or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary
or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor
holder of this Warrant.

 

    -7-

     

    

 

4. Adjustments.

 

4.1 Adjustment upon Subdivisions
or Combinations. If the Company, at any time while the Warrants are outstanding: (i) pays a stock dividend or otherwise makes
a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares
of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise
of the Warrants), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including
by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification
of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event, and the number of shares issuable upon exercise of each Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of such Warrant shall remain unchanged. Any adjustment made pursuant to this Section 4.1 shall become
effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

4.2 Adjustment for Other Distributions. (a)
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 4.1 above, if at any time the Company grants,
issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the
record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled
to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of a Warrant (without regard to any
limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date
on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as
of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder
exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such
extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase
Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in
the Holder exceeding the Beneficial Ownership Limitation).

 

    -8-

     

    

 

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

 

4.3. Reclassification, Consolidation,
Purchase, Combination, Sale or Conveyance. If, at any time while the Warrants are outstanding, (i) the Company, directly or
indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person,
(ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition
of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer,
tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock
are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders
of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects
any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which
the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly
or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group
of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any
shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other
Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental
Transaction”), then, upon any subsequent exercise of a Warrant, the Holder shall have the right to receive, for each
Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction,
at the option of the Holder (without regard to any limitation in Section 3.3.10 on the exercise of a Warrant), the number of shares
of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional
consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder
of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction
(without regard to any limitation in Section 3.3.10 on the exercise of a Warrant). For purposes of any such exercise, the determination
of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate
Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion
the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components
of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the
obligations of the Company under the Warrants in accordance with the provisions of this Section 4.3 pursuant to written agreements
prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant
a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant
which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent
to the 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 with an exercise price which applies the exercise price hereunder
to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental
Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being
for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction).
Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that
from and after the date of such Fundamental Transaction, the provisions of the Warrants referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under the Warrants with the same effect as if such Successor Entity had been named as the Company therein.

 

    -9-

     

    

 

The Company shall instruct the Warrant
Agent in writing to mail by first class mail, postage prepaid, to each Holder, written notice of the execution of any such amendment,
supplement or agreement with the Successor Entity. Any supplemented or amended agreement entered into by the successor corporation
or transferee shall provide for adjustments, which shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Section 4.3. The Warrant Agent shall have no duty, responsibility or obligation to determine the correctness of any
provisions contained in such agreement or such notice, including, but not limited to, any provisions relating either to the kind
or amount of securities or other property receivable upon exercise of warrants or with respect to the method employed and provided
therein for any adjustments, and shall be entitled to rely conclusively for all purposes upon the provisions contained in any such
agreement. The provisions of this Section 4.3 shall similarly apply to successive reclassifications, changes, consolidations, mergers,
sales and conveyances of the kind described above.

 

4.4. Notices to Holder. (a) Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 4, the Company shall promptly
deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment
to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

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

 

    -10-

     

    

 

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

 

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

 

5. Restrictive Legends; Fractional
Warrants.

 

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

 

 6. [RESERVED].

 

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

 

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

 

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

 

8. Concerning the Warrant Agent
and Other Matters.

 

8.1. Any instructions given to the Warrant
Agent orally, as permitted by any provision of this Warrant Agreement, shall be confirmed in writing by the Company as soon as
practicable. The Warrant Agent shall not be liable or responsible and shall be fully authorized and protected for acting, or failing
to act, in accordance with any oral instructions which do not conform with the written confirmation received in accordance with
this Section 8.1.

 

    -11-

     

    

 

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

 

(b) All amounts owed
by the Company to the Warrant Agent under this Warrant Agreement are due within 30 days of the Company’s receipt of an invoice.
Delinquent payments are subject to a late payment charge of one and one-half percent (1.5%) per month commencing 45 days from the
invoice date. The Company agrees to reimburse the Warrant Agent for any attorney’s fees and any other costs associated with
collecting delinquent payments.

 

(c) No provision of
this Warrant Agreement shall require Warrant Agent to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties under this Warrant Agreement or in the exercise of its rights.

 

8.3 As agent for the Company hereunder
the Warrant Agent:

 

(a) shall have no duties
or obligations other than those specifically set forth herein or as may subsequently be agreed to in writing by the Warrant Agent
and the Company;

 

(b) shall be regarded
as making no representations and having no responsibilities as to the validity, sufficiency, value, or genuineness of the Warrants
or any Warrant Shares;

 

(c) shall not be obligated
to take any legal action hereunder; if, however, the Warrant Agent determines to take any legal action hereunder, and where the
taking of such action might, in its judgment, subject or expose it to any expense or liability it shall not be required to act
unless it has been furnished with an indemnity reasonably satisfactory to it;

  

(d) may rely on and
shall be fully authorized and protected in acting or failing to act upon any certificate, instrument, opinion, notice, letter,
telegram, telex, facsimile transmission or other document or security delivered to the Warrant Agent and believed by it to be genuine
and to have been signed by the proper party or parties;

  

(e) shall not be liable
or responsible for any recital or statement contained in the Registration Statement or any other documents relating thereto;

 

(f) shall not be liable
or responsible for any failure on the part of the Company to comply with any of its covenants and obligations relating to the Warrants,
including, without limitation, obligations under applicable securities laws;

 

(g) may rely on and
shall be fully authorized and protected in acting or failing to act upon the written, telephonic or oral instructions with respect
to any matter relating to its duties as Warrant Agent covered by this Warrant Agreement (or supplementing or qualifying any such
actions) of officers of the Company, and is hereby authorized and directed to accept instructions with respect to the performance
of its duties hereunder from the Company or counsel to the Company, and may apply to the Company, for advice or instructions in
connection with the Warrant Agent’s duties hereunder, and the Warrant Agent shall not be liable for any delay in acting while
waiting for those instructions; any applications by the Warrant Agent for written instructions from the Company may, at the option
of the Warrant Agent, set forth in writing any action proposed to be taken or omitted by the Warrant Agent under this Warrant Agreement
and the date on or after which such action shall be taken or such omission shall be effective; the Warrant Agent shall not be liable
for any action taken by, or omission of, the Warrant Agent in accordance with a proposal included in such application on or after
the date specified in such application (which date shall not be less than five (5) Business Days after the date such application
is sent to the Company, unless the Company shall have consented in writing to any earlier date) unless prior to taking any such
action, the Warrant Agent shall have received written instructions in response to such application specifying the action to be
taken or omitted;

 

    -12-

     

    

 

(h) may consult with
counsel satisfactory to the Warrant Agent, including its in-house counsel, and the advice of such counsel shall be full and complete
authorization and protection in respect of any action taken, suffered, or omitted by it hereunder in good faith and in accordance
with the advice of such counsel;

 

(i) may perform any
of its duties hereunder either directly or by or through nominees, correspondents, designees, or subagents, and it shall not be
liable or responsible for any misconduct or negligence on the part of any nominee, correspondent, designee, or subagent appointed
with reasonable care by it in connection with this Warrant Agreement;

 

(j) is not authorized,
and shall have no obligation, to pay any brokers, dealers, or soliciting fees to any person; and

 

(k) shall not be required
hereunder to comply with the laws or regulations of any country other than the United States of America or any political subdivision
thereof.

 

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

 

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

 

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

 

8.6. Unless terminated earlier by the parties
hereto, this Agreement shall terminate ninety (90) days after the earlier of the Expiration Date and the date on which no Warrants
remain outstanding (the “Termination Date”). On the Business Day following the Termination Date, the Warrant
Agent shall deliver to the Company any entitlements, if any, held by the Warrant Agent under this Warrant Agreement. The Warrant
Agent’s right to be reimbursed for fees, charges and out-of-pocket expenses as provided in this Section 8 shall survive the
termination of this Warrant Agreement.

 

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

 

    -13-

     

    

 

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

 

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

 

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

 

8.11. Any notice, statement or demand authorized
by this Warrant Agreement to be given or made by the Warrant Agent or by the holder of any Warrant to or on the Company shall be
delivered by e-mail, hand or sent by registered or certified mail or overnight courier service, addressed (until another address
is filed in writing by the Company with the Warrant Agent) as set forth below and if to any holder any notice, statement or demand
shall be given to the last address set forth for such holder (if any) in the Warrant Register:

 

Nexeon Medsystems Inc.

1910 Pacific Avenue, Suite 20000

Dallas, Texas 75201

Attn: William Rosellini, CEO

Email: will@nexeonmed.com

 

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

 

Sichenzia Ross Ference LLP

1185 6th Avenue

New York, NY 10036

Attn: Gregory Sichenzia

Email: gischenzia@srf.law

 

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

 

Equity Stock Transfer, LLC

237 W 37th Street, Suite 602

New York, NY 10018

Attn: Nora Marckwordt

Email: nora@equitystock.com

 

8.12. (a) This Warrant Agreement shall
be governed by and construed in accordance with the laws of the State of New York. All actions and proceedings relating to or arising
from, directly or indirectly, this Warrant Agreement may be litigated in courts located within the Borough of Manhattan in the
City and State of New York. The Company hereby submits to the personal jurisdiction of such courts and consents that any service
of process may be made by certified or registered mail, return receipt requested, directed to the Company at its address last specified
for notices hereunder.

 

    -14-

     

    

 

(b) This Warrant Agreement
shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto. This Warrant Agreement may
not be assigned, or otherwise transferred, in whole or in part, by either party without the prior written consent of the other
party, which the other party will not unreasonably withhold, condition or delay; except that (i) consent is not required for an
assignment or delegation of duties by Warrant Agent to any affiliate of Warrant Agent and (ii) any reorganization, merger, consolidation,
sale of assets or other form of business combination by Warrant Agent or the Company shall not be deemed to constitute an assignment
of this Warrant Agreement.

 

(c) No provision of
this Warrant Agreement may be amended, modified or waived, except in a written document signed by both parties. The Company and
the Warrant Agent may amend or supplement this Warrant Agreement without the consent of any Holder for the purpose of curing any
ambiguity, or curing, correcting or supplementing any defective provision contained herein or adding or changing any other provisions
with respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties
determine, in good faith, shall not adversely affect the interest of the Holders.  All other amendments and supplements
shall require the vote or written consent of Holders of at least 50.1% of the then outstanding Warrants, provided that adjustments
may be made to the Warrant terms and rights in accordance with Section 4 without the consent of the Holders.

 

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

  

8.14 Resignation of Warrant Agent.

 

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

 

    -15-

     

    

 

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

 

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

 

9. Miscellaneous Provisions.

 

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

 

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

 

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

 

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

 

10. Certain Definitions.

 

As used herein, the following terms shall
have the following meanings:

 

(i) “Business Day” means
any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking
institutions in the State of New York are authorized or required by law or other governmental action to close.

 

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

 

(iii) “Trading Market”
means NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange,
the OTCQX or the OTCQB (or any successor market thereto).

 

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

 

[SIGNATURE PAGE FOLLOWS]

 

    -16-

     

    

 

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

 

	 	NEXEON MEDSYSTEMS INC
	 	 
	 	By: 	              
	 	Name:
	 	Title:
	 	 
	 	Address for notices:
	 	Attention: 
	 	Telephone: 
	 	Facsimile:
	 	E-mail:
	 	 
	 	EQUITY STOCK TRANSFER, LLC
	 	As Warrant Agent
	 	 
	 	By: 	 
	 	Name:
	 	Title: 

 

Annex A Form of Global Certificate

Annex B Election to Purchase

Annex C Form of Certificated Warrant

Annex D Authorized Representatives

Annex E Form of Warrant Certificate Request
Notice

 

    -17-

     

    

 

ANNEX A

 

[FORM
OF GLOBAL CERTIFICATE]

 

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

 

NEXEON MEDSYSTEMS INC

WARRANT CERTIFICATE

NOT EXERCISABLE AFTER ______, 20__

 

This certifies that
the person whose name and address appears below, or registered assigns, is the registered owner of the number of Warrants set forth
below. Each Warrant entitles its registered holder to purchase from Nexeon Medsystems Inc, a company incorporated under the laws
of the State of Nevada (the “Company”), at any time prior to 5:00 P.M. (New York City time) on ________, 20__,
one share of common stock, par value $0.001 per share, of the Company (each, a “Warrant Share” and collectively,
the “Warrant Shares”), at an exercise price of $___ per share, subject to possible adjustments as provided in
the Warrant Agreement (as defined below).

 

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

 

The terms and conditions
of the Warrants and the rights and obligations of the holder of this Warrant Certificate are set forth in the Warrant Agent Agreement
dated as of _______, 2018 (the “Warrant Agreement”) between the Company and Equity Stock Transfer, LLC (the
“Warrant Agent”). A copy of the Warrant Agreement is available for inspection during business hours at the office
of the Warrant Agent.

 

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

 

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

 

	 	 	NEXEON MEDSYSTEMS INC
	 	 	 
	 	 	By: 	           
	 	 	Name:
	 	 	Title:
	 	 	 
	Dated: ____________, 2018	 	 
	Countersigned:	 	 
	 	 	 
	EQUITY STOCK TRANSFER, LLC,	 	 
	As Warrant Agent	 	 

 

	By:	 	 
	Name:	 	 
	Title: 	 	 

 

    -18-

     

    

 

PLEASE DETACH HERE

 

 

 

Certificate No.:_________ Number of Warrants:__________

 

WARRANT CUSIP NO.: ___________

 

	 	 	NEXEON MEDSYSTEMS INC
	 	 	 
	[Name & Address of Holder]	 	Equity Stock Transfer, LLC, Warrant Agent
	 	 	 
	 	 	By Mail:
	 	 	 
	 	 	 
	 	 	 
	 	 	By hand or overnight courier:
	 	 	 
	 	 	 

 

    -19-

     

    

 

ANNEX B

 

NOTICE OF EXERCISE

 

	 	To:	NEXEON MEDSYSTEMS INC.

 

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

 

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

 

	 	 	 

 

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

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

[SIGNATURE
OF HOLDER]

 

	Name of Investing Entity: 	 

 

	Signature of Authorized Signatory of Investing Entity: 	 

 

	Name of Authorized Signatory: 	 

 

	Title of Authorized Signatory: 	 

 

	Date: 	 

 

 

 

 

    -20-

     

    

 

ANNEX C

 

[FORM
OF CERTIFICATED WARRANT]

 

COMMON
STOCK PURCHASE WARRANT

 

NEXEON
MEDSYSTEMS INC.

 

	Warrant
    Shares: _______	Initial
    Exercise Date: [●] ___, [●]
	 	Issue
    Date: [●] ___, 2018

 

	 	CUSIP:
    ______________
	 	 
	 	ISIN:
    _______________

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns
(the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after [●] ___, 2018 (the “Initial Exercise Date”) and on or prior to the
close of business on the five (5) year anniversary of the Initial Exercise Date (the “Termination Date”) but
not thereafter, to subscribe for and purchase from Nexeon MedSystems Inc, a Nevada corporation (the “Company”),
up to ______ shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase
price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). This Warrant
shall initially be issued and maintained in the form of a security held in book-entry form and the Depository Trust Company or
its nominee (“DTC”) shall initially be the sole registered holder of this Warrant, subject to a Holder’s
right to elect to receive a Warrant in certificated form pursuant to the terms of the Warrant Agent Agreement, in which case this
sentence shall not apply.

 

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

 

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

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

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

 

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

 

“Common
Stock Equivalents” means any securities of the Company or its subsidiaries which would entitle the holder thereof to
acquire, at any time, Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other
instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to
receive, Common Stock

 

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

 

“Liens”
means a lien, charge pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

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

 

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“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Registration
Statement” means the Company’s registration statement on Form S-1 (File No. 333-224715).

 

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

 

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

 

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

 

“Transfer
Agent” means Equity Stock Transfer, LLC, with a mailing address of 237 West 37th Street, Suite 602, New York,
NY 10018 and a facsimile number of (347) 584-3644, and any successor transfer agent of the Company.

 

“Warrant
Agent Agreement” means that certain Warrant Agent Agreement, dated as of the Initial Exercise Date, between the Company
and the Warrant Agent.

 

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

 

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

 

 Section
2. Exercise.

 

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

 

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

 

b) Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $_____, subject to adjustment hereunder
(the “Exercise Price”).

 

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

 

		(A) = 	the
last VWAP immediately preceding the time of delivery of the Notice of Exercise giving rise to the applicable “cashless exercise”,
as set forth in the applicable Notice of Exercise (to clarify, the “last VWAP” will be the last VWAP as calculated
over an entire Trading Day such that, in the event that this Warrant is exercised at a time that the Trading Market is open, the
prior Trading Day’s VWAP shall be used in this calculation);

 

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

 

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

 

Notwithstanding
anything herein to the contrary, the Company shall not be required to make any cash payments or net cash settlement to the Holder
in lieu of delivery of the Warrant Shares. If Warrant Shares are issued in such a cashless exercise, the parties acknowledge and
agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the registered characteristics
of the Warrants being exercised.  The Company agrees not to take any position contrary to this Section 2(c).

 

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

 

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

 

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d) Mechanics
of Exercise.

 

i.  Delivery
of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer
Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository
Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant
in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or
resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise by physical
delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the
number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the
Notice of Exercise by the date that is earlier of (i) two (2) Trading Days after the delivery to the Company of the Notice of
Exercise and (ii) the number of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the
Notice of Exercise (such date, the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise,
the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to
which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the
aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) two (2) Trading
Days and (ii) the number of Trading Days comprising the Standard Settlement Period following the delivery of the Notice of Exercise.
If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant
Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000
of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise),
$10 per Trading Day (increasing to $20 per Trading Day on the fifth (5th) Trading Day after such liquidated damages
begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder
rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this
Warrant remains outstanding and exercisable. As used herein, “Standard Settlement Period” means the standard settlement
period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock
as in effect on the date of delivery of the Notice of Exercise.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section
3. Certain Adjustments.

 

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

 

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

 

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

 

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 d) Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets
in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common
Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group
acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person
or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent
exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon
such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard
to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to
apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not
the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this
Warrant in accordance with the provisions of this Section 3(d) pursuant to written agreements prior to such Fundamental Transaction
and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity
evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding
number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the 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 with an exercise price which applies the exercise price hereunder to such shares of capital stock
(but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value
of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting
the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction). Upon the occurrence
of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Warrant referring to the “Company” shall refer instead
to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the
Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein.

 

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

 

f) Notice
to Holder.

 

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

 

    -28-

     

    

 

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

 

Section
4. Transfer of Warrant.

 

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

 

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

 

    -29-

     

    

 

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

 

Section
5. Miscellaneous.

 

a) No
Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in
Section 3.

 

b) Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which shall in no event
include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the
Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such
Warrant or stock certificate.

 

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

 

d) Authorized
Shares.

 

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

 

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

 

    -30-

     

    

 

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

 

e) Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles
of conflict of laws thereof. Each party agrees that all legal Proceedings concerning the interpretation, enforcement and defense
of this Warrant shall be commenced in the state and federal courts sitting in the City of New York, Borough of Manhattan (the
“New York Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York
Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or
discussed herein (including with respect to the enforcement of any provision hereunder), and hereby irrevocably waives, and agrees
not to assert in any suit, action or Proceeding, any claim that it is not personally subject to the jurisdiction of such New York
Courts, or such New York Courts are improper or inconvenient venue for such Proceeding. The Company hereby irrevocably waives,
to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal Proceeding arising out of or
relating to this Warrant. If any party shall commence an action or Proceeding to enforce any provisions of this Warrant, then
the prevailing party in such action or Proceeding shall be reimbursed by the other party for its attorneys’ fees and other
costs and expenses incurred in the investigation, preparation and prosecution of such action or Proceeding.

 

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

 

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

 

h) Notices.
Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation,
any Notice of Exercise, shall be in writing and delivered personally, by facsimile or by e-mail, or sent by a nationally recognized
overnight courier service, addressed to the Company, at 1910 Pacific Avenue, Suite 20000, Dallas, Texas 75201, Attention: Chief
Executive Officer, facsimile number: ([●]) [●]-[●], email address: will@nexeonmed.com, or such other facsimile
number, email address or address as the Company may specify for such purposes by notice to the Holders. Any and all notices or
other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile,
or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number or address of such
Holder appearing on the books of the Warrant Agent. Any notice or other communication or deliveries hereunder shall be deemed
given and effective on the earliest of (i) the time of transmission, if such notice or communication is delivered via facsimile
at the facsimile number or e-mail at the e-mail address set forth in this Section prior to 5:30 p.m. (New York City time) on any
date, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at
the facsimile number or e-mail at the e-mail address set forth in this Section on a day that is not a Trading Day or later than
5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S.
nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be
given. Notwithstanding any other provision of this Warrant, where this Warrant provides for notice of any event to the Holder,
if this Warrant is held in global form by DTC (or any successor depositary), such notice shall be sufficiently given if given
to DTC (or any successor depositary) pursuant to the procedures of DTC (or such successor depositary), subject to a Holder’s
right to elect to receive a Warrant in certificated form pursuant to the terms of the Warrant Agent Agreement, in which case this
sentence shall not apply.

 

    -31-

     

    

 

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

 

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

 

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

 

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

 

m) Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company, on the one hand
and the vote or written consent of the Holders of at least 50.1% of the then outstanding Warrants issued pursuant to the Warrant
Agent Agreement, on the other hand, provided that adjustments may be made to the Warrant terms and rights of this Warrant in accordance
with Section 3 of this Warrant without the consent of any Holder or beneficial owner of the Warrants..

 

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

 

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

  

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

 

(Signature
Page Follows)

 

    -32-

     

    

 

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

 

	 	NEXEON
    MEDSYSTEMS INC.
	 	 
	 	 
	 	By:	                            
	 	Name:
	 	Title:

 

    -33-

     

    

 

NOTICE
OF EXERCISE

 

 

TO:
nexeon medsystems inc.

 

_________________________

 

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

 

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

 

☐
in lawful money of the United States; or

 

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

 

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

 

	 	 	 

 

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

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

[SIGNATURE
OF HOLDER]

 

	Name
    of Investing Entity: 	 

 

	Signature
    of Authorized Signatory of Investing Entity: 	 

 

	Name
    of Authorized Signatory: 	 

 

	Title
    of Authorized Signatory:	 

 

	Date:	 

 

    -34-

     

    

 

ASSIGNMENT
FORM

 

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

 

FOR
VALUE RECEIVED, [____] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	Name:	 	 
	 	 	(Please
    Print)
	 	 	 
	Address:	 	 
	 	 	(Please
    Print)
	 	 	 
	Phone
    Number:	 	 
	 	 	 
	Email
    Address:	 	 
	 	 	 
	Dated:
    _____________________ __, ______	 	 
	 	 	 
	Holder’s
    Signature:	       	 	 
	 	 	 	 
	Holder’s
    Address:	 	 	 

 

    -35-

     

    

 

ANNEX D

 

AUTHORIZED REPRESENTATIVES

 

	Name	 	Title	 	Signature
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    -36-

     

    

 

Annex E: Form of Warrant Certificate
Request Notice

 

WARRANT CERTIFICATE REQUEST NOTICE

 

		To:	as
Warrant Agent for Nexeon Medsystems Inc (the “Company”)

 

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

 

		1	Name
of Holder of Warrants in form of Global Warrants:

 

		2)	Name
of Holder in Definitive Certificate (if different from name of Holder of Warrants in form of Global Warrants):

 

		3)	Number
of Warrants in name of Holder in form of Global Warrants:

 

		4)	Number
of Warrants for which Definitive Certificate shall be issued:

 

		5)	Number
of Warrants in name of Holder in form of Global Warrants after issuance of

 

Definitive Certificate, if any:

 

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

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

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

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity: _____________________________________

 

Signature of Authorized Signatory of Investing Entity: _____________________________

 

Name of Authorized Signatory: _____________________________________

 

Title of Authorized Signatory: _____________________________________

 

Date: ____________________________________

 

    -37-

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