Document:

EX-10.1

 Exhibit 10.1 

AGREEMENT 
 This Agreement
dated as of January 19, 2016, by and between PACKAGING CORPORATION OF AMERICA, having its principal place of business at 1955 West Field Court, Lake Forest, Illinois 60045 (together with its consolidated subsidiaries, “PCA”), and
Richard B. West (“Mr. West”). 
 WHEREAS, Mr. West will retire as an employee of PCA effective January 29, 2016 (the
“Retirement Date”). 
 WHEREAS, PCA desires that Mr. West be available to provide certain project work upon his retirement
and agree to non-competition, non-solicitation and certain other covenants; 
 WHEREAS, Mr. West desires to perform project work and
abide by the covenants and agreements set forth herein; 
 NOW, THEREFORE, in consideration of the mutual promises herein contained, the
parties do hereby agree: 
 1.     Projects. Mr. West will perform specific projects and assignments as
determined by Mark W. Kowlzan, Chairman and CEO of PCA and agreed upon by Mr. West from time to time. Time spent by Mr. West on such projects and assignments will not exceed 20% of normal full time hours and Mr. West shall not be
subject to a minimum time commitment. Mr. West will devote best efforts in his performance hereunder and will act in the best interest of PCA in such performance. Mr. West shall cooperate as requested by PCA as to legal or other matters
involving PCA arising out of Mr. West’s previous employment with PCA. The parties acknowledge and agree that Mr. 

 
West shall perform this Agreement only as an independent contractor and not as an employee or agent of PCA, and that Mr. West shall determine the manner and method of provision of his
performance. PCA will provide reasonable administrative support, office space and information technology support as needed for such performance 

2.     Fees. Mr. West shall be paid a fee in cash equal to $30,000 per month, payable at regular intervals as
agreed upon by the parties, subject to any required tax withholding. Mr. West shall be entitled to reimbursement for reasonable expenses incurred in connection with his performance of the projects and assignments hereunder. 

3.     Termination. It is hereby understood that Mr. West’s termination of employment is a voluntary
retirement and, subject to Section 18, shall be determined to be a Retirement for purposes of the Amended and Restated Long-Term Equity Incentive Plan and other PCA health, welfare and retirement plans. 

4.     Restricted Stock, Performance Units. Subject to the execution, delivery and performance of this Agreement
and the accompanying release (the “Release”) by Mr. West, the Compensation Committee of PCA’s board of directors has agreed as follows: 
  

	 	a.	to vest on the Retirement Date 60,647 shares of restricted stock that were awarded to Mr. West in 2012, 2013 and 2014; and 

  

	 	b.	to vest and to be paid out at 100% on the Retirement Date, 12,000 performance units that were awarded to Mr. West in 2013 and 8,604 performance units that were awarded to Mr. West in 2014. 

5.     Other Benefits and Plans. Subject to Section 18 hereof: (i) Mr. West shall be paid out all
accrued vacation and receive all benefits accrued through the Retirement Date under PCA’s retirement, health and welfare plans, in accordance with the terms of such plans; and (ii) such benefits will be paid according to the terms of those
plans. 

  
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 6.     No Benefits. PCA and Mr. West agree that the remuneration
provided for above shall constitute the total compensation due for performance hereunder after the Retirement Date and that no employee benefits of any kind will be provided except as due Mr. West as a result of prior service as a PCA employee
under PCA’s plans in which Mr. West participated. Mr. West will not accrue additional benefits or service time as a result of the performance of this Agreement. 

7.     Term. The term of this Agreement shall commence on the Retirement Date and shall continue in full force and
effect until December 31, 2016. This agreement may be terminated earlier only (i) upon the mutual written agreement of the parties; or (ii) by Mr. West for convenience at any time by delivering at least 30 days’ prior
written notice to the other party. 
 8.     Confidential Information. Mr. West acknowledges that the
information, observations and data (including without limitation trade secrets, know-how, research plans, business, accounting, distribution and sales methods and systems, manufacturing methods and systems, sales and profit figures and margins and
other technical or business information, business, marketing and sales plans and strategies, cost and pricing structures, and manufacturing techniques of PCA disclosed or otherwise revealed to his or discovered or otherwise obtained by his or of
which he has become or becomes aware, directly or indirectly, while employed or otherwise acting for PCA, whether prior to the date of this Agreement as an employee, pursuant to this Agreement or otherwise) (all of the foregoing being collectively,
“Confidential Information”) are the 

  
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property of PCA, and Mr. West agrees that PCA has a protectable interest in such Confidential Information. Therefore, Mr. West agrees that he shall not disclose to any person or use for
his own purposes any Confidential Information without the prior written consent of PCA, unless and only to the extent that the aforementioned matters: (a) become or are generally known to and available for use by the public other than as a
result of Mr. West’s acts or omissions or (b) are required to be disclosed by judicial process or law (provided that Mr. West shall give advance written notice of such requirement to PCA as soon as practicable under the
circumstances to enable PCA to seek an appropriate protective order or confidential treatment). Mr. West shall deliver to PCA at any time that PCA may reasonably request all memoranda, notes, plans, records, reports, computer tapes, printouts
and software and other documents and data (and copies thereof) which constitute Confidential Information or Work Product (as defined below) which he may then possess or have under his control. This Section 8 shall survive the termination of
this Agreement. 
 9.     Work Product. 

(a)    Mr. West hereby assigns to PCA all right, title and interest in and to all inventions, developments, methods,
process, designs, analyses, reports and all similar or related information (in each case whether or not patentable), all copyrightable works, all trade secrets, confidential information and know-how, and all other intellectual property rights that
both (a) were conceived, reduced to practice, developed or made by Mr. West while employed by PCA or as a result of, and in the course of providing, the services provided hereunder and (b) either (i) relate to PCA’s business
or (ii) are conceived, reduced to practice, developed or made using any of the equipment, supplies, facilities, 

  
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assets or resources of PCA (including but not limited to, any intellectual property rights) (“Work Product”). All Work Product prepared by Mr. West shall be deemed to have
been prepared for PCA and shall be considered as works for hire and all rights and the copyrights therefor shall be owned by PCA. Mr. West hereby assigns to PCA all rights, titles and interests in and to said copyrights in the United States of
America and elsewhere, including registration and publication rights, rights to create derivative works and all other rights which are incident to copyright ownership. 

(b)    In the event any court holds such Work Product not to be works for hire, Mr. West shall assign such creative
works to PCA, at its request, in consideration of the fees paid to Mr. West hereunder. Mr. West shall promptly at PCA’s sole cost and expense perform all actions reasonably requested by PCA to establish and confirm PCA’s
ownership of the Work Product (including, without limitation, executing and delivering assignments, consents, powers of attorney, applications and other instruments). This Section 9(b) shall survive the termination of this Agreement. 

10.     Noncompetition. Mr. West agrees that, for the period commencing on the date hereof and ending on
December 31, 2016 (the “Noncompete Period”), he shall not, directly or indirectly (whether for compensation or otherwise) own or hold any interest in, manage, operate, control, consult with, render services for, or in any
manner participate in the business of manufacturing, marketing, designing, distributing or selling containerboard (including, without limitation, linerboard and corrugating medium); corrugated containers, displays or products; uncoated freesheet
paper or coated release liners (collectively, and each individually, being the “Business”) or any business 

  
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competitive with the Business, whether as a general or limited partner, proprietor, common or preferred equity holder, officer, director, agent, employee, consultant, trustee, affiliate or
otherwise. Mr. West acknowledges that PCA plans to conduct the Business internationally and agrees that the provisions in this Section 10 shall operate throughout the world. Nothing in this Section 10 shall prohibit
Mr. West from being a passive owner of not more than 5% of the outstanding securities of any publicly traded company engaged in the Business, so long as Mr. West has no active participation in the business of such company. 

11.     Non-Solicitation. During the Noncompete Period, Mr. West shall not directly or indirectly through
another entity (i) induce or attempt to induce any employee of PCA, or any of their respective affiliates to leave the employ of PCA or any of its affiliates, or in any way interfere with the relationship between PCA or any of its affiliates
and any employee thereof, (ii) solicit to hire any person who, at any time during the Noncompete Period, was an employee of PCA or any of its affiliates or (iii) induce or attempt to induce any customer, developer, client, member,
supplier, licensee, licensor, broker, sales agent, franchisee or other business relation of PCA or any of its affiliates to cease doing business with PCA or any of its affiliates, or in any way interfere with the relationship between any such
customer, developer, client, member, supplier, licensee, licensor, broker, sales agent, franchisee or business relation and PCA or any of its affiliates (including, without limitation, making any negative statements or communications about PCA or
its affiliates). 

  
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 12.     Enforcement. If, at the time of enforcement of any of
Sections 8 through 11, a court of competent jurisdiction shall hold that the period, scope or area restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum period, scope
or area reasonable under such circumstances shall be substituted for the stated period, scope or area and that the court shall be allowed and directed to revise the restrictions contained herein to cover the maximum period, scope and area permitted
by applicable law. The parties hereto acknowledge and agree that Mr. West has had access to Confidential Information and Work Product, that the provisions of Sections 8 through 11 are necessary, reasonable and appropriate for the
business interests of the PCA, that irreparable injury will result to PCA if Mr. West breaches any of the provisions of Sections 8 through 11 and that money damages would not be an adequate remedy therefor and that PCA will not have any
adequate remedy at law for any such breach. Therefore, in the event of a breach or threatened breach of this Agreement, in addition to other rights and remedies existing in its favor, PCA shall be entitled to specific performance and/or immediate
injunctive or other equitable relief from any court of competent jurisdiction in order to enforce or prevent any violations of the provisions hereof (without the necessity of showing actual money damages, or posting a bond or other security).
Nothing contained herein shall be construed as prohibiting PCA or any of its successors or assigns from pursuing any other remedies available to it for such breach or threatened breach, including the recovery of damages. 

13. Mr. West’s Representations and Acknowledgements. Mr. West hereby represents and warrants to PCA that
(i) Mr. West is not a party to or bound by any 

  
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employment agreement, noncompete agreement, nonsolicitation agreement or confidentiality agreement with any person other than PCA, and (ii) this Agreement constitutes the valid and binding
obligation of Mr. West, enforceable against Mr. West in accordance with its terms. Mr. West hereby acknowledges and represents that he fully understands the terms and conditions contained herein and intends for such terms and
conditions to be binding on and enforceable against her. Mr. West expressly agrees and acknowledges that the restrictions contained in Sections 8 through 11 do not preclude Mr. West from earning a livelihood, nor do they
unreasonably impose limitations on Mr. West’s ability to earn a living. Mr. West acknowledges that he has carefully read this Agreement and has given careful consideration to the restraints imposed upon Mr. West by this
Agreement, and is in full accord as to the necessity of such restraints. Mr. West expressly acknowledges and agrees that each and every restraint imposed by this Agreement is reasonable with respect to subject matter, time period and
geographical area. 
 14.     Notices. All notices and other communications hereunder shall be in writing and
shall be deemed if delivered personally or by facsimile transmission, or mailed by registered or certified mail (return receipt requested), postage prepaid, to the parties at the following addresses (or at such other address for a party as shall be
specified by like notice; provided that notices of a change of address shall be effective only upon receipt thereof): 
  

	 	(i)	To PCA: 

 Packaging Corporation of America 

1955 West Field Court 

Lake Forest, IL 60045 

  
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 Attention: CEO 

with a copy to: General Counsel 

Facsimile No: 847-482-2194 
  

	 	(ii)	To Mr. West: 

 The address on file with PCA 

15.     Assignment. This Agreement and the rights and responsibilities hereunder shall not be assigned or delegated
by either party without the prior written consent of the other party; provided, however, that PCA shall have the right, without the prior written consent of Mr. West, to assign and transfer its rights under that Agreement to any of its
affiliates or any purchaser who acquires all or a substantial part of the assets of its business or capital stock. 

16.     Entire Agreement. This Agreement and the accompanying Release constitutes the complete and only Agreement
between the parties relating to the subject matter hereof and all prior agreements relating to the subject matter hereof are merged into this Agreement. No amendment or modification of the Agreement between the parties hereto shall be of effect or
enforceable unless stated in writing and signed by Mr. West and an officer of PCA. 
 17.     Governing Law;
Venue. This Agreement shall be governed by, and construed in accordance with, the substantive laws of Illinois without regard to conflict of laws. Jurisdiction and venue with regard to any suit in connection with this Agreement shall reside
solely and exclusively in the courts of Lake County, Illinois. 

  
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 18.     Section 409A Compliance. It is the intention that this
Agreement conform and be administered in all respects in a manner that complies with Section 409A of the Internal Revenue Code (together with all rules and regulations thereunder, “Section 409A”); provided, however, that PCA does not
make any representations or guarantees of the tax treatment of any amount paid or described under Section 409A or otherwise. 

Notwithstanding any provision contained in this Agreement to the contrary, if (i) any payment hereunder or otherwise described herein is
subject to Section 409A, (ii) such payment is to be paid on account of the Mr. West’s separation from service (within the meaning of Section 409A) and (iii) Mr. West is a “specified employee”
(within the meaning of Section 409A), then such payment shall be delayed, if necessary, until the first day of the seventh month following Mr. West’s separation from service (or, if later, the date on which such payment is otherwise
to be paid under this Agreement). With respect to any payments hereunder that are subject to Section 409A and that are payable on account of a separation from service, the determination of whether Mr. West has had a separation from service
shall be determined in accordance with Section 409A. 

  
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 IN WITNESS HEREOF, the parties have signed and delivered this Agreement on the date first above written. 

Packaging Corporation of America 
  

			
	/s/ Mark W. Kowlzan	  	/s/ Richard B. West

 Name: Mark W. Kowlzan 
 Title:
Chairman and CEO 

  
 11Exhibit 4.6

 

THE REGISTERED HOLDER OF THIS PURCHASE
OPTION BY ITS ACCEPTANCE HEREOF, AGREES THAT THIS PURCHASE OPTION SHALL NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED,
OR BE THE SUBJECT OF ANY HEDGING, SHORT SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD RESULT IN THE EFFECTIVE ECONOMIC
DISPOSITION OF THE SECURITIES FOR A PERIOD OF ONE HUNDRED EIGHTY (180) DAYS) IMMEDIATELY FOLLOWING THE EFFECTIVE DATE, AS HEREAFTER
DEFINED. THIS PURCHASE OPTION IS NOT EXERCISABLE AFTER FIVE YEARS FROM THE EFFECTIVE DATE.

 

UNIT PURCHASE OPTION

 

FOR THE PURCHASE OF

 

_____UNITS1

 

OF

 

PAVmed INC.

 

1.       Purchase Option.

 

THIS CERTIFIES THAT, in consideration of
$100 duly paid by or on behalf of ________________. (“Holder”), as registered owner of this Purchase
Option, to PAVmed Inc. (“Company”), Holder is entitled, at any time or from time to time from the Closing
Date (“Commencement Date”), and at or before 5:00 p.m., New York City local time, _________, 2021 (“Expiration
Date”)2, but not thereafter, to subscribe
for, purchase and receive, in whole or in part, up to ______________________(_____) units (“Units”) of
the Company, each Unit consisting of one share of the Company’s common stock, par value $0.001 per share (“Common
Stock”), and one warrant (“Warrant(s)”) expiring five years from the date that the
Company’s initial registration statement filed with the U.S. Securities and Exchange Commission, file number 333-203659,
is declared effective (“Effective Date”). Each Warrant is the same as the warrants included in the Units being
registered for sale to the public by way of the Company’s Registration Statement (“Public Warrants”).
If the Expiration Date is a day on which banking institutions are authorized by law to close, then this Purchase Option may be
exercised on the next succeeding day which is not such a day in accordance with the terms herein. During the period ending on the
Expiration Date, the Company agrees not to take any action that would terminate this Purchase Option. This Purchase Option is initially
exercisable at $_____ per Unit3 so purchased; provided,
however, that upon the occurrence of any of the events specified in Section 6 hereof, the rights granted by this Purchase Option,
including the exercise price per Unit and the number of Units (and Common Stock and Warrants) to be received upon such exercise,
shall be adjusted as therein specified. The term “Exercise Price” shall mean the initial exercise price or the adjusted
exercise price, depending on the context.

 

2.       Exercise.

 

2.1        Exercise
Form. In order to exercise this Purchase Option, the exercise form attached hereto must be duly executed and completed and
delivered to the Company, together with this Purchase

 

 

1
Total Units will equal 5 % of the Units sold in the PAVmed Inc. IPO.

2
Five years from the Effective Date

3
110% of the price that Units are sold in the Company’s IPO.

 

     

     

    

 

Option and payment of the Exercise Price
for the Units being purchased payable in cash or by certified check or official bank check. If the subscription rights represented
hereby shall not be exercised at or before 5:00 p.m., New York City local time, on the Expiration Date this Purchase Option shall
become and be void without further force or effect, and all rights represented hereby shall cease and expire.

 

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

 

“The securities represented
by this certificate have not been registered under the Securities Act of 1933, as amended (“Act”) or applicable state
law. The securities may not be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement
under the Act, or pursuant to an exemption from registration under the Act and applicable state law.”

 

2.3         Cashless
Exercise.

 

2.3.1         Determination
of Amount. In lieu of the payment of the Exercise Price multiplied by the number of Units for which this Purchase Option is
exercisable (and in lieu of being entitled to receive Common Stock and Warrants) in the manner required by Section 2.1, the Holder
shall have the right (but not the obligation) to convert any exercisable but unexercised portion of this Purchase Option into Units
(“Cashless Exercise Right”) as follows: upon exercise of the Cashless Exercise Right, the Company shall
deliver to the Holder (without payment by the Holder of any of the Exercise Price in cash) that number of Units (or that number
of shares of Common Stock and Warrants comprising that number of Units) equal to the quotient obtained by dividing (x) the “Value”
(as defined below) of the portion of the Purchase Option being converted by (y) the Current Market Value (as defined below). The
“Value” of the portion of the Purchase Option being converted shall equal the remainder derived from subtracting (a)
(i) the Exercise Price multiplied by (ii) the number of Units underlying the portion of this Purchase Option being converted from
(b) the Current Market Value of a Unit multiplied by the number of Units underlying the portion of the Purchase Option being converted.
As used herein, the term “Current Market Value” per Unit at any date means: (A) in the event that neither the Units
nor Public Warrants are still trading, the remainder derived from subtracting (x) the exercise price of the Warrants multiplied
by the number of shares of Common Stock issuable upon exercise of the Warrants underlying one Unit from (y) (i) the Current Market
Price of the Common Stock multiplied by (ii) the number of shares of Common Stock underlying one Unit, which shall include the
shares of Common Stock underlying the Warrants included in such Unit; (B) in the event that the Units, Common Stock and Public
Warrants are still trading, (i) if the Units are listed on a national securities exchange or quoted on the OTC Bulletin Board,
the last sale price of the Units in the principal trading market for the Units as reported by the exchange or upon the OTC Bulletin
Board, as the case may be, on the last trading day preceding the date in question; or (ii) if the Units are not listed on a national
securities exchange or quoted on the OTC Bulletin Board (or successor exchange), but are traded in the residual over-the-counter
market, the closing bid price for Units on the last trading day preceding the date in question for which such quotations are reported
by the publisher of such quotations; and (C) in the event that the Units are not still trading but the Common Stock and Public
Warrants underlying the Units are still trading, the Current Market Price of the Common Stock plus the product of (x) the Current
Market Price of the Public Warrants and (y) the number of Shares underlying the Warrants included in one Unit. The “Current
Market Price” shall mean (i) if the Common Stock (or Public Warrants, as the case may be) is listed on a national securities
exchange or quoted on the OTC Bulletin Board, the last sale price of the Common Stock (or Public Warrants) in the principal trading
market for the Common Stock as reported by the exchange or the OTC Bulletin Board, as the case may be, on the last trading day
preceding the date in question; (ii) if the Common Stock (or Public Warrants, as the case may be) is not listed on a national securities
exchange or quoted on the OTC

 

    	 	2	 

     

    

 

Bulletin Board but are traded in the residual
over-the-counter market, the closing bid price for the Common Stock (or Public Warrants) on the last trading day preceding the
date in question for which such quotations are reported by the OTC Market or similar publisher of such quotations; and (iii) if
the fair market value of the Common Stock cannot be determined pursuant to clause (i) or (ii) above, such price as the Board of
Directors of the Company shall determine, in good faith. In the event the Public Warrants have expired and are no longer exercisable,
no “Value” shall be attributed to the Warrants underlying this Purchase Option. Additionally, in the event that this
Purchase Option is exercised pursuant to this Section 2.3 and the Public Warrants are still trading, the “Value” shall
be reduced by the difference between the Warrant Exercise Price and the exercise price of the Public Warrants multiplied by the
number of Warrants underlying the Units included in the portion of this Purchase Option being converted.

 

2.3.2         Mechanics
of Cashless Exercise. The Cashless Exercise Right may be exercised by the Holder on any business day on or after the Commencement
Date and not later than the Expiration Date by delivering the Purchase Option with the duly executed exercise form attached hereto
with the cashless exercise section completed to the Company, exercising the Cashless Exercise Right and specifying the total number
of Units the Holder will purchase pursuant to such Cashless Exercise Right.

 

2.4         No
Obligation to Net Cash Settle. Notwithstanding anything to the contrary contained in this Purchase Option, in no event will
the Company be required to net cash settle the exercise of the Purchase Option or the Warrants underlying the Purchase Option.
The holder of the Purchase Option and the Warrants underlying the Purchase Option will not be entitled to exercise the Purchase
Option or the Warrants underlying such Purchase Option unless a registration statement is effective, or an exemption from the registration
requirements is available at such time and, if the holder is not able to exercise the Purchase Option or underlying Warrants, the
Purchase Option and/or the underlying Warrants, as applicable, will expire worthless.

 

3.       Transfer.

 

3.1         General
Restrictions. The registered Holder of this Purchase Option, by its acceptance hereof, agrees that it will not sell, transfer,
assign, pledge or hypothecate this Purchase Option for a period of one hundred eighty (180) days from issuance pursuant to Rule
5110(g) of the Rules of Financial Industry Regulatory Authority following the Effective Date to anyone other than (i) a sales agent
or selected dealer in connection with the public offering (“Offering”), or (ii) a bona fide officer or
partner of such sales agent or selected dealer. Additionally, pursuant to Rule 5110(g), the Purchase Option (and the securities
underlying this Purchase Option) will not be the subject of any hedging, short sale, derivative, put or call transaction that would
result in the economic disposition of the securities by any person for a period of one hundred eighty (180) days immediately following
the Effective Date. On and after the one hundred eighty first (181) day anniversary of the Effective Date, transfers to others
may be made subject to compliance with or exemptions from applicable securities laws. In order to make any permitted assignment,
the Holder must deliver to the Company the assignment form attached hereto duly executed and completed, together with the Purchase
Option and payment of all transfer taxes, if any, payable in connection therewith. The Company shall within five business days
transfer this Purchase Option on the books of the Company and shall execute and deliver a new Purchase Option or Purchase Options
of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number of Units purchasable
hereunder or such portion of such number as shall be contemplated by any such assignment.

 

3.2         Restrictions
Imposed by the Act. The securities evidenced by this Purchase Option shall not be transferred unless and until (i) the Company
has received the opinion of counsel for the Holder that the securities may be transferred pursuant to an exemption from registration
under the Act and applicable state securities laws, the availability of which is established to the reasonable satisfaction of
the Company

 

    	 	3	 

     

    

 

(the Company hereby agreeing that the opinion
of Greenberg Traurig, LLP shall be deemed satisfactory evidence of the availability of an exemption), or (ii) a registration statement
or a post-effective amendment to the Registration Statement relating to such securities has been filed by the Company and declared
effective by the Securities and Exchange Commission (the “Commission”) and compliance with applicable
state securities law has been established.

 

4.       New
Purchase Options to be Issued.

 

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

 

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

 

5.       Registration
Rights.

 

5.1         Demand
Registration.

 

5.1.1         Grant
of Right. The Company, upon written demand (“Initial Demand Notice”) of the Holder(s) of at least
51% of the Units subject to Purchase Options and/or the underlying Units and/or the underlying securities (“Majority
Holders”), agrees to use its best efforts to register (the “Demand Registration”) under
the Act on one occasion, all or any portion of the Purchase Option requested by the Majority Holders in the Initial Demand Notice
and all of the securities underlying such Purchase Option, including the Units, the Common Stock, the Warrants and the Common Stock
underlying the Warrants (collectively, the “Registrable Securities”). On such occasion, the Company will
use its best efforts to file a registration statement or a post-effective amendment to the Registration Statement covering the
Registrable Securities within sixty (60) days after receipt of the Initial Demand Notice and use its best efforts to have such
registration statement or post-effective amendment declared effective as soon as possible thereafter. The demand for registration
may be made at any time during a period of five years beginning on the Effective Date. The Initial Demand Notice shall specify
the number of shares of Registrable Securities proposed to be sold and the intended method(s) of distribution thereof. The Company
will notify all holders of the Purchase Option and/or Registrable Securities of the demand within ten (10) days from the date of
the receipt of any such Initial Demand Notice. Each holder of Registrable Securities who wishes to include all or a portion of
such holder’s Registrable Securities in the Demand Registration (each such holder including shares of Registrable Securities
in such registration, a “Demanding Holder”) shall so notify the Company within fifteen (15) days after
the receipt by the holder of the notice from the Company. Upon any such request, the Demanding Holders shall be entitled to have
their Registrable Securities included in the Demand Registration, subject to Section 5.1.4.

 

5.1.2         Effective
Registration. A registration will not count as a Demand Registration until the registration statement filed with the Commission
with respect to such Demand Registration has been declared effective and the Company has complied with all of its obligations under
this Agreement with respect thereto; provided, however, that if, after such registration statement has been declared

 

    	 	4	 

     

    

 

effective, the offering of Registrable
Securities pursuant to a Demand Registration is interfered with by any stop order or injunction of the Commission or any other
governmental agency or court, the registration statement with respect to such Demand Registration will be deemed not to have been
declared effective, unless and until, (i) such stop order or injunction is removed, rescinded or otherwise terminated, and (ii)
a majority-in-interest of the Demanding Holders thereafter elect to continue the offering.

 

5.1.3         Underwritten
Offering. If the Majority Holders so elect and such holders so advise the Company as part of the Initial Demand Notice, the
offering of such Registrable Securities pursuant to such Demand Registration shall be in the form of an underwritten offering.
In such event, the right of any holder to include its Registrable Securities in such registration shall be conditioned upon such
holder’s participation in such underwriting and the inclusion of such holder’s Registrable Securities in the underwriting
to the extent provided herein. All Demanding Holders proposing to distribute their securities through such underwriting shall enter
into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by the Majority
Holders.

 

5.1.4         Reduction
of Offering. If the managing underwriter or underwriters for a Demand Registration that is to be an underwritten offering advises
the Company and the Demanding Holders in writing that the dollar amount or number of shares of Registrable Securities which the
Demanding Holders desire to sell, taken together with all other shares of Common Stock or other securities which the Company desires
to sell and the shares of Common Stock, if any, as to which registration has been requested pursuant to written contractual piggy-back
registration rights held by other stockholders of the Company who desire to sell, exceeds the maximum dollar amount or maximum
number of shares that can be sold in such offering without adversely affecting the proposed offering price, the timing, the distribution
method, or the probability of success of such offering (such maximum dollar amount or maximum number of shares, as applicable,
the “Maximum Number of Shares”), then the Company shall include in such registration: (i) first, the
Registrable Securities as to which Demand Registration has been requested by the Demanding Holders (pro rata in accordance with
the number of shares that each such Person has requested be included in such registration, regardless of the number of shares held
by each such Person (such proportion is referred to herein as “Pro Rata”)) that can be sold without exceeding
the Maximum Number of Shares; (ii) second, to the extent that the Maximum Number of Shares has not been reached under the foregoing
clause (i), the shares of Common Stock or other securities that the Company desires to sell that can be sold without exceeding
the Maximum Number of Shares; (iii) third, to the extent that the Maximum Number of Shares has not been reached under the foregoing
clauses (i) and (ii), the shares of Common Stock or other securities registrable pursuant to the terms of the Registration Rights
Agreement between the Company and the initial investors in the Company (the “Registration Rights Agreement”
and such registrable securities, the “Investor Securities”) as to which “piggy-back” registration
has been requested by the holders thereof, Pro Rata, that can be sold without exceeding the Maximum Number of Shares; and (iv)
fourth, to the extent that the Maximum Number of Shares have not been reached under the foregoing clauses (i), (ii), and (iii),
the shares of Common Stock or other securities for the account of other persons that the Company is obligated to register pursuant
to written contractual arrangements with such persons and that can be sold without exceeding the Maximum Number of Shares.

 

5.1.5         Withdrawal.
If a majority-in-interest of the Demanding Holders disapprove of the terms of any underwriting or are not entitled to include all
of their Registrable Securities in any offering, such majority-in-interest of the Demanding Holders may elect to withdraw from
such offering by giving written notice to the Company and the underwriter or underwriters of their request to withdraw prior to
the effectiveness of the registration statement filed with the Commission with respect to such Demand Registration. If the majority-in-interest
of the Demanding Holders withdraws from a proposed offering relating to a Demand Registration, then the Company does not have to
continue its obligations under Section 5.1 with respect to such proposed offering.

 

    	 	5	 

     

    

 

5.1.6         Terms.
The Company shall bear all fees and expenses attendant to registering the Registrable Securities, including the expenses of any
legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities, but the Holders
shall pay any and all underwriting commissions. The Company agrees to use its reasonable best efforts to qualify or register the
Registrable Securities in such states as are reasonably requested by the Majority Holder(s); provided, however, that
in no event shall the Company be required to register the Registrable Securities in a state in which such registration would cause
(i) the Company to be obligated to qualify to do business in such state, or would subject the Company to taxation as a foreign
corporation doing business in such jurisdiction or (ii) the principal stockholders of the Company to be obligated to escrow their
shares of capital stock of the Company. The Company shall use its best efforts to cause any registration statement or post-effective
amendment filed pursuant to the demand rights granted under Section 5.1.1 to remain effective for a period of nine consecutive
months from the Effective Date of such registration statement or post-effective amendment.

 

5.2         Piggy-Back
Registration.

 

5.2.1         Piggy-Back
Rights. If at any time during the seven year period commencing on the Effective Date the Company proposes to file a registration
statement under the Act with respect to an offering of equity securities, or securities or other obligations exercisable or exchangeable
for, or convertible into, equity securities, by the Company for its own account or for stockholders of the Company for their account
(or by the Company and by stockholders of the Company including, without limitation, pursuant to Section 5.1), other than a registration
statement (i) filed in connection with any employee stock option or other benefit plan, (ii) for an exchange offer or offering
of securities solely to the Company’s existing stockholders, (iii) for an offering of debt that is convertible into equity
securities of the Company or (iv) for a dividend reinvestment plan, then the Company shall (x) give written notice of such proposed
filing to the holders of Registrable Securities as soon as practicable but in no event less than ten (10) days before the anticipated
filing date, which notice shall describe the amount and type of securities to be included in such offering, the intended method(s)
of distribution, and the name of the proposed managing underwriter or underwriters, if any, of the offering, and (y) offer to the
holders of Registrable Securities in such notice the opportunity to register the sale of such number of shares of Registrable Securities
as such holders may request in writing within five (5) days following receipt of such notice (a “Piggy-Back Registration”).
The Company shall cause such Registrable Securities to be included in such registration and shall use its best efforts to cause
the managing underwriter or underwriters of a proposed underwritten offering to permit the Registrable Securities requested to
be included in a Piggy-Back Registration on the same terms and conditions as any similar securities of the Company and to permit
the sale or other disposition of such Registrable Securities in accordance with the intended method(s) of distribution thereof.
All holders of Registrable Securities proposing to distribute their securities through a Piggy-Back Registration that involves
an underwriter or underwriters shall enter into an underwriting agreement in customary form with the underwriter or underwriters
selected for such Piggy-Back Registration.

 

5.2.2         Reduction
of Offering. If the managing underwriter or underwriters for a Piggy-Back Registration that is to be an underwritten offering
advises the Company and the holders of Registrable Securities in writing that the dollar amount or number of shares of Common Stock
which the Company desires to sell, taken together with shares of Common Stock, if any, as to which registration has been demanded
pursuant to written contractual arrangements with persons other than the holders of Registrable Securities hereunder, the Registrable
Securities as to which registration has been requested under this Section 5.2, and the shares of Common Stock, if any, as to which
registration has been requested pursuant to the written contractual piggy-back registration rights of other stockholders of the

 

    	 	6	 

     

    

 

Company, exceeds the Maximum Number of
Shares, then the Company shall include in any such registration:

 

(a)         If the
registration is undertaken for the Company’s account: (A) first, the shares of Common Stock or other securities that the
Company desires to sell that can be sold without exceeding the Maximum Number of Shares; (B) second, to the extent that the Maximum
Number of Shares has not been reached under the foregoing clause (A), the shares of Common Stock or other securities, if any, comprised
of Registrable Securities and Investor Securities, as to which registration has been requested pursuant to the applicable written
contractual piggy-back registration rights of such security holders, Pro Rata, that can be sold without exceeding the Maximum Number
of Shares; and (C) third, to the extent that the Maximum Number of shares has not been reached under the foregoing clauses (A)
and (B), the shares of Common Stock or other securities for the account of other persons that the Company is obligated to register
pursuant to written contractual piggy-back registration rights with such persons and that can be sold without exceeding the Maximum
Number of Shares;

 

(b)         If the
registration is a “demand” registration undertaken at the demand of holders of Investor Securities, (A) first, the
shares of Common Stock or other securities for the account of the demanding persons, Pro Rata, that can be sold without exceeding
the Maximum Number of Shares; (B) second, to the extent that the Maximum Number of Shares has not been reached under the foregoing
clause (A), the shares of Common Stock or other securities that the Company desires to sell that can be sold without exceeding
the Maximum Number of Shares; (C) third, to the extent that the Maximum Number of Shares has not been reached under the foregoing
clauses (A) and (B), the shares of Registrable Securities, Pro Rata, as to which registration has been requested pursuant to the
terms hereof, that can be sold without exceeding the Maximum Number of Shares; and (D) fourth, to the extent that the Maximum Number
of Shares has not been reached under the foregoing clauses (A), (B) and (C), the shares of Common Stock or other securities for
the account of other persons that the Company is obligated to register pursuant to written contractual arrangements with such persons,
that can be sold without exceeding the Maximum Number of Shares; and

 

(c)         If the
registration is a “demand” registration undertaken at the demand of persons other than either the holders of Registrable
Securities or of Investor Securities, (A) first, the shares of Common Stock or other securities for the account of the demanding
persons that can be sold without exceeding the Maximum Number of Shares; (B) second, to the extent that the Maximum Number of Shares
has not been reached under the foregoing clause (A), the shares of Common Stock or other securities that the Company desires to
sell that can be sold without exceeding the Maximum Number of Shares; (C) third, to the extent that the Maximum Number of Shares
has not been reached under the foregoing clauses (A) and (B), collectively the shares of Common Stock or other securities comprised
of Registrable Securities and Investor Securities, Pro Rata, as to which registration has been requested pursuant to the terms
hereof and of the Registration Rights Agreement, as applicable, that can be sold without exceeding the Maximum Number of Shares;
and (D) fourth, to the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (A), (B) and (C),
the shares of Common Stock or other securities for the account of other persons that the Company is obligated to register pursuant
to written contractual arrangements with such persons, that can be sold without exceeding the Maximum Number of Shares.

 

5.2.3       Withdrawal.
Any holder of Registrable Securities may elect to withdraw such holder’s request for inclusion of Registrable Securities
in any Piggy-Back Registration by giving written notice to the Company of such request to withdraw prior to the effectiveness of
the registration statement. The Company (whether on its own determination or as the result of a withdrawal by persons making a
demand pursuant to written contractual obligations) may withdraw a registration statement at any time prior to the effectiveness
of the registration statement. Notwithstanding any such withdrawal, the

 

    	 	7	 

     

    

 

Company shall pay all expenses incurred
by the holders of Registrable Securities in connection with such Piggy-Back Registration as provided in Section 5.2.4.

 

5.2.4         Terms.
The Company shall bear all fees and expenses attendant to registering the Registrable Securities, including the expenses of any
legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities but the Holders
shall pay any and all underwriting commissions related to the Registrable Securities. In the event of such a proposed registration,
the Company shall furnish the then Holders of outstanding Registrable Securities with not less than fifteen days written notice
prior to the proposed date of filing of such registration statement. Such notice to the Holders shall continue to be given for
each applicable registration statement filed (during the period in which the Purchase Option is exercisable) by the Company until
such time as all of the Registrable Securities have been registered and sold. The Holders of the Registrable Securities shall exercise
the “piggy-back” rights provided for herein by giving written notice, within ten days of the receipt of the Company’s
notice of its intention to file a registration statement. The Company shall use its best efforts to cause any registration statement
filed pursuant to the above “piggyback” rights to remain effective for at least nine months from the date that the
Holders of the Registrable Securities are first given the opportunity to sell all of such securities.

 

5.3         General
Terms.

 

5.3.1         Indemnification.
The Company shall indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement hereunder
and each person, if any, who controls such Holders within the meaning of Section 15 of the Act or Section 20(a) of the Securities
Exchange Act of 1934, as amended (“Exchange Act”), against all loss, claim, damage, expense or liability
(including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or defending
against litigation, commenced or threatened, or any claim whatsoever whether arising out of any action between the underwriter
and the Company or between the underwriter and any third party or otherwise) to which any of them may become subject under the
Act, the Exchange Act or otherwise, arising from such registration statement but only to the same extent and with the same effect
as the provisions pursuant to which the Company has agreed to indemnify The Benchmark Company (the “Selling Agent”)
contained in Section 7 of the Sales Agency Agreement between the Company and the Selling Agent dated ___________. The Holder(s)
of the Registrable Securities to be sold pursuant to such registration statement, and their successors and assigns, shall severally,
and not jointly, indemnify the Company, its officers and directors and each person, if any, who controls the Company within the
meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, against all loss, claim, damage, expense or liability (including
all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or defending against any
claim whatsoever) to which they may become subject under the Act, the Exchange Act or otherwise, arising from information furnished
by or on behalf of such Holders, or their successors or assigns, in writing, for specific inclusion in such registration statement
to the same extent and with the same effect as the provisions contained in Section 7 of the Sales Agency Agreement pursuant to
which the Selling Agent has agreed to indemnify the Company.

 

5.3.2         Exercise
of Purchase Options. Nothing contained in this Purchase Option shall be construed as requiring the Holder(s) to exercise their
Purchase Options or Warrants underlying such Purchase Options prior to or after the initial filing of any registration statement
or the effectiveness thereof.

 

5.3.3         Documents
Delivered to Holders. The Company shall furnish a signed counterpart, addressed to the participating Holders, of (i) an opinion
of counsel to the Company, dated the Effective Date of such registration statement (and, if such registration includes an underwritten
public offering, an opinion dated the date of the closing under any underwriting agreement related thereto), and

 

    	 	8	 

     

    

 

 

(ii) a “cold comfort” letter
dated the Effective Date of such registration statement (and, if such registration includes an underwritten public offering, a
letter dated the date of the closing under the underwriting agreement) signed by the independent public accountants who have issued
a report on the Company’s financial statements included in such registration statement, in each case covering substantially
the same matters with respect to such registration statement (and the prospectus included therein) and, in the case of such accountants’
letter, with respect to events subsequent to the date of such financial statements, as are customarily covered in opinions of issuer’s
counsel and in accountants’ letters delivered to underwriters in underwritten public offerings of securities. The Company
shall also deliver promptly to the Holders participating in the offering, the correspondence and memoranda described below and
copies of all correspondence between the Commission and the Company, its counsel or auditors and all memoranda relating to discussions
with the Commission or its staff with respect to the registration statement and permit the Holders, to do such investigation, upon
reasonable advance notice, with respect to information contained in or omitted from the registration statement as it deems reasonably
necessary to comply with applicable securities laws or rules of FINRA. Such investigation
shall include access to books, records and properties and opportunities to discuss the business of the Company with its officers
and independent auditors, all to such reasonable extent and at such reasonable times and as often as the Holders, shall reasonably
request. The Company shall not be required to disclose any confidential information or other records to the Holders, or to any
other person, until and unless such persons shall have entered into reasonable confidentiality agreements (in form and substance
reasonably satisfactory to the Company), with the Company with respect thereto.

 

5.3.4         Underwriting
Agreement. The Company shall enter into an underwriting agreement with the managing underwriter(s), if any, selected by any
Holders whose Registrable Securities are being registered pursuant to this Section 5, which managing underwriter shall be reasonably
acceptable to the Company. Such agreement shall be reasonably satisfactory in form and substance to the Company, each Holder and
such managing underwriters, and shall contain such representations, warranties and covenants by the Company and such other terms
as are customarily contained in agreements of that type used by the managing underwriter. The Holders shall be parties to any underwriting
agreement relating to an underwritten sale of their Registrable Securities and may, at their option, require that any or all the
representations, warranties and covenants of the Company to or for the benefit of such underwriters shall also be made to and for
the benefit of such Holders. Such Holders shall not be required to make any representations or warranties to or agreements with
the Company or the underwriters except as they may relate to such Holders and their intended methods of distribution. Such Holders,
however, shall agree to such covenants and indemnification and contribution obligations for selling stockholders as are customarily
contained in agreements of that type used by the managing underwriter. Further, such Holders shall execute appropriate custody
agreements and otherwise cooperate fully in the preparation of the registration statement and other documents relating to any offering
in which they include securities pursuant to this Section 5. Each Holder shall also furnish to the Company such information regarding
itself, the Registrable Securities held by it, and the intended method of disposition of such securities as shall be reasonably
required to effect the registration of the Registrable Securities.

 

5.3.5         Rule
144 Sale. Notwithstanding anything contained in this Section 5 to the contrary, the Company shall have no obligation pursuant
to Sections 5.1 or 5.2 to use its best efforts to obtain the registration of Registrable Securities held by any Holder (i) where
such Holder would then be entitled to sell under Rule 144 within any three-month period (or such other period prescribed under
Rule 144 as may be provided by amendment thereof) all of the Registrable Securities then held by such Holder, and (ii) where the
number of Registrable Securities held by such Holder is within the volume limitations under paragraph (e) of Rule 144 (calculated
as if such Holder were an affiliate within the meaning of Rule 144).

 

    	 	9	 

     

    

 

5.3.6         Supplemental
Prospectus. Each Holder agrees, that upon receipt of any notice from the Company of the happening of any event as a result
of which the prospectus included in the registration statement, as then in effect, includes an untrue statement of a material fact
or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light
of the circumstances then existing, such Holder will immediately discontinue disposition of Registrable Securities pursuant to
the registration statement covering such Registrable Securities until such Holder’s receipt of the copies of a supplemental
or amended prospectus, and, if so desired by the Company, such Holder shall deliver to the Company (at the expense of the Company)
or destroy (and deliver to the Company a certificate of such destruction) all copies, other than permanent file copies then in
such Holder’s possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice.

 

5.3.7         Rule
144. The Company covenants that it shall file any reports required to be filed by it under the Act and the Exchange Act and
shall take such further action as the holders of Registrable Securities may reasonably request, all to the extent required from
time to time to enable such holders to sell Registrable Securities without registration under the Act within the limitations of
the exemptions provided by Rule 144, as such rule may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Securities and Exchange Commission.

 

6.       Adjustments.

 

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

 

6.1.1         Stock
Dividends - Split-Ups. If after the date hereof, and subject to the provisions of Section 6.2 below, the number of outstanding
shares of Common Stock is increased by a stock dividend payable in shares of Common Stock or by a split-up of shares of Common
Stock or other similar event, then, on the Closing Date thereof, the number of shares of Common Stock underlying each of the Units
purchasable hereunder shall be increased in proportion to such increase in outstanding shares. In such case, the number of shares
of Common Stock, and the exercise price applicable thereto, underlying the Warrants underlying each of the Units purchasable hereunder
shall be adjusted in accordance with the terms of the Warrants.

 

6.1.2         Aggregation
of Shares. If after the date hereof, and subject to the provisions of Section 6.2, the number of outstanding shares of Common
Stock is decreased by a consolidation, combination or reclassification of shares of Common Stock or other similar event, then,
on the Closing Date thereof, the number of shares of Common Stock underlying each of the Units purchasable hereunder shall be decreased
in proportion to such decrease in outstanding shares. In such case, the number of shares of Common Stock, and the exercise price
applicable thereto, underlying the Warrants underlying each of the Units purchasable hereunder shall be adjusted in accordance
with the terms of the Warrants.

 

6.1.3         Replacement
of Securities upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding shares of Common
Stock other than a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects the par value of such shares of Common
Stock, or in the case of any merger or consolidation of the Company with or into another corporation (other than a consolidation
or merger in which the Company is the continuing corporation and that does not result in any reclassification or reorganization
of the outstanding shares of Common Stock), or in the case of any sale or conveyance to another corporation or entity of the property
of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holder of
this Purchase Option shall have the right thereafter (until the expiration of the right of exercise of this

 

    	 	10	 

     

    

 

Purchase Option) to receive upon the exercise
hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the kind and amount of shares
of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation,
or upon a dissolution following any such sale or transfer, by a Holder of the number of shares of Common Stock of the Company obtainable
upon exercise of this Purchase Option and the underlying Warrants immediately prior to such event; and if any reclassification
also results in a change in shares of Common Stock covered by Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant
to Sections 6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications,
reorganizations, mergers or consolidations, sales or other transfers.

 

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

 

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

 

6.3         Elimination
of Fractional Interests. The Company shall not be required to issue certificates representing fractions of shares of Common
Stock or Warrants upon the exercise of the Purchase Option, nor shall it be required to issue scrip or pay cash in lieu of any
fractional interests, it being the intent of the parties that all fractional interests shall be eliminated by rounding any fraction
up to the nearest whole number of Warrants, shares of Common Stock or other securities, properties or rights.

 

7.       Reservation
and Listing. The Company shall at all times reserve and keep available out of its authorized shares of Common Stock, solely
for the purpose of issuance upon exercise of this Purchase Option or the Warrants underlying this Purchase Option, such number
of shares of Common Stock or other securities, properties or rights as shall be issuable upon the exercise thereof. The Company
covenants and agrees that, upon exercise of this Purchase Options and payment of the Exercise Price therefor, all shares of Common
Stock and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not
subject to preemptive rights of any stockholder. The Company further covenants and agrees that upon exercise of the Warrants underlying
this Purchase Option and payment of the respective Warrant exercise price therefor, all shares of Common Stock and other securities
issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights
of any stockholder. As long as this Purchase Option shall be outstanding, the Company shall use its best efforts to cause all
(i) Units issuable upon exercise of this Purchase Option, (ii) shares of Common Stock included in the Units issuable upon exercise
of this Purchase Option, (iii) Warrants included in the Units issuable upon exercise of this Purchase Option and

 

    	 	11	 

     

    

 

(iv) shares of Common Stock issuable upon
exercise of the Warrants included in the Units issuable upon exercise of this Purchase Option to be listed (subject to official
notice of issuance) on all securities exchanges (or, if applicable on the OTC Bulletin Board or any successor trading market) on
which the Units, the Common Stock or the Public Warrants issued to the public in connection herewith may then be listed and/or
quoted.

 

8.       Certain
Notice Requirements.

 

8.1         Holder’s
Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holders the right to vote or consent as a
stockholder for the election of directors or any other matter, or as having any rights whatsoever as a stockholder of the Company.
If, however, at any time prior to the expiration of this Purchase Option and its exercise, any of the events described in Section
8.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event at least fifteen (15)
days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the stockholders
entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled to vote on such
proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of the closing of
the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder a copy of each
notice given to the other stockholders of the Company at the same time and in the same manner that such notice is given to the
stockholders.

 

8.2         Events
Requiring Notice. The Company shall be required to give the notice described in this Section 8 upon one or more of the following
events: (i) if the Company shall take a record of the holders of its shares of Common Stock for the purpose of entitling them to
receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out
of retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company, or
(ii) the Company shall offer to all the holders of its Common Stock any additional shares of capital stock of the Company or securities
convertible into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor,
(iii) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or merger) or a sale
of all or substantially all of its property, assets and business shall be proposed, (iv) if the Company shall deliver a notice
to holders of the warrants of a redemption pursuant to Section 6.2 of the Warrant Agreement or (v) if the Company shall deliver
a notice to the Holder pursuant to Section 5 of this Purchase Option.

 

8.3         Notice
of Change in Exercise Price. The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to
Section 6 hereof, send notice to the Holders of such event and change (“Price Notice”). The Price Notice
shall describe the event causing the change and the method of calculating same and shall be certified as being true and accurate
by the Company’s President and Chief Financial Officer.

 

8.4         Transmittal
of Notices. All notices, requests, consents and other communications under this Purchase Option shall be in writing and shall
be deemed to have been duly made when hand delivered, or mailed by express mail or private courier service:

 

(i) if to the registered
Holder of this Purchase Option, to the address of such Holder as shown on the books of the Company, with a copy to:  

 

    	 	12	 

     

    

 

Greenberg Traurig,
LLP

1750 Tysons Boulevard

Suite 1000

McLean, Virginia 22102

Attn: Mark J.
Wishner, Esq.

 

or (ii) if to the Company, to the following
address or to such other address as the Company may designate by notice to the Holders:

 

PAVmed Inc.

420 Lexington Avenue

Suite 300

New York, New York 10170

Attn: Lishan Aklog, M.D.

 

With a copy to:

 

Graubard Miller

The Chrysler Building

405 Lexington Avenue

New York, New York 10174

Attention David Alan Miller, Esq.

 

9.       Miscellaneous.

 

9.1         Amendments.
The Company and the Holder may from time to time supplement or amend this Purchase Option without the approval of any of the Holders
in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with
any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the Company
and the Holder may deem necessary or desirable and that the Company and the Holder deem shall not adversely affect the interest
of the Holders. All other modifications or amendments shall require the written consent of and be signed by the party against whom
enforcement of the modification or amendment is sought.

 

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

 

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

 

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

 

9.5         Governing
Law; Submission to Jurisdiction. This Purchase Option shall be governed by and construed and enforced in accordance with the
laws of the State of New York, without giving effect

 

    	 	13	 

     

    

 

to conflict of laws. The Company hereby
agrees that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Option shall be
brought and enforced in the courts of the State of New York or of the United States of America for the Southern District of New
York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection
to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served upon the
Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid,
addressed to it at the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall be legal
and binding upon the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing party(ies)
in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees and expenses
relating to such action or proceeding and/or incurred in connection with the preparation therefor.

 

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

 

9.7         Execution
in Counterparts. This Purchase Option may be executed in one or more counterparts, and by the different parties hereto in separate
counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same
agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered
to each of the other parties hereto.

 

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

 

    	 	14	 

     

    

 

IN WITNESS WHEREOF, the Company has caused
this Purchase Option to be signed by its duly authorized officer as of the ___ day of _________, 2016.

 

	 	PAVmed Inc. 
	 	 	 
	 	By:  	 
	 	 	Name: 
	 	 	Title:

 

    	 	15	 

     

    

 

Form to be used to exercise Purchase Option:

 

PAVmed Inc.

420 Lexington Avenue

Suite 300

New York, New York 10170

Attn: Lishan Aklog, M.D.

 

Date: _________, 201__

 

The undersigned hereby elects irrevocably
to exercise all or a portion of the within Purchase Option and to purchase _________ Units of PAVmed Inc. and hereby makes payment
of $ _________ (at the rate of $ _________ per Unit) in payment of the Exercise Price pursuant thereto. Please issue the Common
Stock and Warrants as to which this Purchase Option is exercised in accordance with the instructions given below.

 

or

 

The undersigned hereby elects irrevocably
to convert its right to purchase _________ Units purchasable under the within Purchase Option by surrender of the unexercised portion
of the attached Purchase Option (with a “Value” based of $_________ based on a “Market Price”
of $_________). Please issue the securities comprising the Units as to which this Purchase Option is exercised in accordance with
the instructions given below.

 

NOTICE: The signature to this assignment
must correspond with the name as written upon the face of the purchase option in every particular, without alteration or enlargement
or any change whatever.

 

Signature(s) Guaranteed:

 

THE SIGNATURE(S) SHOULD BE GUARANTEED BY
AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED
SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15).

 

    	 	16	 

     

    

 

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

 

Name

 

(Print in Block Letters)

 

Address

 

Form to be used to assign Purchase Option:

 

ASSIGNMENT

 

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

 

FOR VALUE RECEIVED, ________________________________
does hereby sell, assign and transfer unto ________________________________ the right to purchase ________ Units of PAVmed Inc.
(“Company”) evidenced by the within Purchase Option and does hereby authorize the Company to transfer
such right on the books of the Company.

 

Dated: _________, 201__

 

Signature

 

NOTICE: The signature to this assignment
must correspond with the name as written upon the face of the purchase option in every particular, without alteration or enlargement
or any change whatever.

 

Signature(s) Guaranteed:

 

THE SIGNATURE(S) SHOULD BE GUARANTEED BY
AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED
SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15).

 

    	 	17

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