Document:

Exhibit 10.1

 

 

 

 

LIPIMETIX DEVELOPMENT, INC.

SERIES B PREFERRED STOCK

AND WARRANT PURCHASE AGREEMENT

 

 

 

 

    

     

    

TABLE OF CONTENTS

	 	 	 	Page
	 	 	 
	1	Purchase and Sale of Preferred Stock and Warrants.	1
	 	1.1	Sale and Issuance of Series B Preferred Stock and Warrants.	1
	 	1.2	Closing; Delivery.	1
	 	 	 	 
	2	Representations and Warranties of the Company	4
	 	 	 	 
	4	Conditions to the Purchasers’ Obligations at Closing	11
	 	4.1	Representations and Warranties	11
	 	4.2	Performance	11
	 	4.3	Compliance Certificate	11
	 	4.4	Qualifications	11
	 	4.5	Registration Rights Agreement	11
	 	4.6	Amended and Restated Stockholders Agreement	12
	 	4.7	Amended and Restated Certificate	12
	 	4.8	Secretary’s Certificate	12
	 	4.9	Proceedings and Documents	12
	 	4.10	Preemptive Rights	12
	 	 	 	 
	5	Conditions of the Company’s Obligations at Closing	12
	 	5.1	Representations and Warranties	12
	 	5.2	Performance	12
	 	5.3	Qualifications	12
	 	5.4	Registration Rights Agreement	12
	 	5.5	Amended and Restated Stockholders Agreement	13
	 	 	 	 
	6	Miscellaneous.	13
	 	6.1	Survival of Warranties	13
	 	6.2	Successors and Assigns	13
	 	6.3	Governing Law	13
	 	6.4	Counterparts	13
	 	6.5	Titles and Subtitles	13
	 	6.6	Notices	13
	 	6.7	No Finder’s Fees	13
	 	6.8	Intentionally Omitted	14
	 	6.9	Attorneys’ Fees	14
	 	6.10	Amendments and Waivers	14
	 	6.11	Severability	14
	 	6.12	Delays or Omissions	14
	 	6.13	Entire Agreement	14
	 	6.14	Corporate Securities Law	15
	 	6.15	Dispute Resolution	15

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TABLE
OF CONTENTS

(continued)

 

 

Exhibit A -SCHEDULE
OF PURCHASERS

Exhibit B -FORM
OF WARRANT

Exhibit C -FORM
OF AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

Exhibit D -DISCLOSURE
SCHEDULE

Exhibit E -RISK
FACTORS

Exhibit F -FORM
OF REGISTRATION RIGHTS AGREEMENT

Exhibit G -FORM
OF AMENDED AND RESTATED STOCKHOLDERS AGREEMENT

 

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SERIES B PREFERRED STOCK PURCHASE
AGREEMENT

This
Series B Preferred Stock AND WARRANT Purchase Agreement (this “Agreement”)
is made and entered into as of August 25, 2016, by and among LipimetiX Development, Inc., a Delaware corporation (the “Company”),
and the investors set forth on Exhibit A attached to this Agreement (each, a “Purchaser” and collectively, the
“Purchasers”).

RECITALS

The Company
desires to sell to the Purchasers, and the Purchasers desire to purchase from the Company, shares of the Company’s Series
B-1 Preferred Stock, par value $0.00001 per share (the “Series B-1 Preferred Stock”) or Series B-2 Preferred
Stock, par value $0.00001 per share (the “Series B-2 Preferred Stock,” and collectively with the Series B-1
Preferred Stock, the “Series B Preferred Stock”), on the terms and subject to the conditions set forth in this
Agreement.

The Purchasers
who purchase shares of Series B-1 Preferred Stock shall also acquire, without additional consideration, warrants to purchase up
to an aggregate of 49,100 shares of Series B-1 Preferred Stock in the form of Exhibit B attached hereto (the “Warrants”).

AGREEMENT

The parties
hereby agree as follows:

1. 
Purchase and Sale of Preferred Stock and Warrants.

1.1     
Sale and Issuance of Series B Preferred Stock and Warrants.

(a)               
The Company shall adopt and file with the Secretary of State of the State of Delaware on or before the Initial Closing (as
defined below) the Amended and Restated Certificate of Incorporation in the form of Exhibit C attached to this Agreement
(the “Restated Certificate”).

(b)              
Subject to the terms and conditions of this Agreement, each Purchaser agrees to purchase at the Closing and the Company
agrees to sell and issue to each Purchaser at the Closing that number of shares of Series B-1 Preferred Stock and Warrants
or Series B-2 Preferred Stock set forth opposite each Purchaser’s name on Exhibit A, at the purchase price set forth
on Exhibit A. The shares of Series B-1 Preferred Stock and Series B-2 Preferred Stock issued to the Purchasers pursuant
to this Agreement (including any shares issued at the Initial Closing and any Additional Shares, as defined below) shall be referred
to in this Agreement as the “Shares.” The shares of Series B-1 Preferred Stock issuable upon exercise of the
Warrants shall be referred to in this Agreement as the “Warrant Shares.”

1.2     
Closing; Delivery.

(a)               
The initial purchase and sale of the Shares and Warrants shall take place remotely via the exchange of documents
and signatures, on August 25, 2016, or at such other time and place as the Company and the Purchasers mutually agree upon, orally
or in writing (which time and place are designated as the “Initial Closing”). In the event there is more than
one closing, the term “Closing” shall apply to each such closing unless otherwise specified.

    	 		 

     

    

(b)              
At each Closing, the Company shall deliver to each Purchaser a certificate representing the Shares being purchased by such
Purchaser at such Closing against payment of the purchase price therefor by check payable to the Company or by wire transfer to
a bank account designated by the Company. In addition, the Company will issue to each Purchaser of Series B-1 Preferred Stock a
Warrant to purchase the number of Warrant Shares set forth opposite such Purchaser’s name on Exhibit A.

1.3.   
Sale of Additional Shares of Preferred Stock. After the Initial Closing, the Company may sell, on similar terms and
conditions as those contained in this Agreement as determined by the Company, up to 45,640 additional shares of Series B-1 Preferred
Stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or similar recapitalization
affecting such shares) and additional Warrants to purchase up to 15,975 shares of Series B-1 Preferred Stock, and up to 1,200,000
shares of Series B-2 Preferred Stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination
or similar recapitalization affecting such shares) (the additional shares of Series B-1 Preferred Stock and Series B-2 Preferred
Stock are referred to herein collectively as the “Additional Shares”), to one or more purchasers (the “Additional
Purchasers”), provided that (i) such subsequent sale is consummated prior to December 31, 2016; and (ii) each Additional
Purchaser shall become a party to the Transaction Agreements (as defined below), by executing and delivering a counterpart signature
page to each of the Transaction Agreements. Exhibit A to this Agreement shall be updated to reflect the number of Additional
Shares, and Warrants if applicable, purchased at each such Closing, the parties purchasing such Additional Shares, and Warrants
if applicable, and the purchase price per share.

1.4.   
Use of Proceeds. In accordance with the directions of the Company’s Board of Directors, the Company will use
the proceeds from the sale of the Shares to provide working capital for the development and commercialization of AEM-28-14 and
analogs, for other general corporate purposes, and to repay a revolving line of credit to Capstone Therapeutics Corp.

1.5.   
Defined Terms Used in this Agreement. In addition to the terms defined above, the following terms used in this Agreement
shall be construed to have the meanings set forth or referenced below.

(a)               
“Accounting Services Agreement” means that certain Accounting Services Agreement, effective as of August
3, 2012, as amended from time to time, by and between the Company and Capstone Therapeutics Corp.

(b)              
“Affiliate” means, with respect to any specified Person, any other Person who, directly or indirectly,
controls, is controlled by, or is under common control with such Person, including, without limitation, any general partner, managing
member, officer or director of such Person or any venture capital fund now or hereafter existing that is controlled by one or
more general partners or managing members of, or shares the same management company with, such Person.

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(c)               
“Amended and Restated Stockholders Agreement” means that certain Amended and Restated Stockholders Agreement,
dated as of the date hereof, by and among the Company and the stockholders party thereto.

(d)              
“Code” means the Internal Revenue Code of 1986, as amended.

(e)               
“Company Covered Person” means, with respect to the Company as an “issuer” for purposes of
Rule 506 promulgated under the Securities Act, any Person listed in the first paragraph of Rule 506(d)(1).

(f)               
“Company Intellectual Property” means all patents, patent applications, trademarks, trademark applications,
service marks, service mark applications, tradenames, copyrights, trade secrets, domain names, mask works, information and proprietary
rights and processes, similar or other intellectual property rights, subject matter of any of the foregoing, tangible embodiments
of any of the foregoing, licenses in, to and under any of the foregoing, and any and all such cases that are owned or used by the
Company in the conduct of the Company’s business as now conducted and as presently proposed to be conducted.

(g)              
“Key Consultants” means any executive-level employee of Benu BioPharma, Inc., as well as any employee
or consultant of Benu BioPharma, Inc. who either alone or in concert with others develops, invents, programs or designs any Company
Intellectual Property pursuant to the Management Agreement.

(h)              
“Knowledge” including the phrase “to the Company’s knowledge” shall mean the
actual knowledge of the Company’s executive officers.

(i)           
    “Management Agreement” means that certain Management Agreement, dated as of
August 3, 2012, by and among the Company, Benu BioPharma, Inc. and certain affiliates of Benu BioPharma, Inc., as amended
from time to time.

(j)
              
“Material Adverse Effect” means a material adverse effect on the business, assets (including intangible
assets), liabilities, financial condition, property, or results of operations of the Company.

(k)              
“Person” means any individual, corporation, partnership, trust, limited liability company, association
or other entity.

(l)
              
“Purchaser” means each of the Purchasers who is initially a party to this Agreement and any Additional
Purchaser who becomes a party to this Agreement at a subsequent Closing under Subsection 1.2(b).

(m)     
        “Registration Rights Agreement” means that
certain Registration Rights Agreement, dated as of the date hereof, by and among the Company and the stockholders party
thereto.

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(n)              
“Securities” means the Shares, the Warrants, the Warrant Shares, and the Common Stock issuable upon the
conversion of the Shares.

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

(p)              
“Shares” means the shares of Series B-1 Preferred Stock and Series B-2 Preferred Stock issued at the
Initial Closing and any Additional Shares issued at a subsequent Closing under Subsection 1.2(b).

(q)              
 “Transaction Agreements” means this Agreement, the Warrants, the Amended and Restated Stockholders Agreement,
and the Registration Rights Agreement.

2. 
Representations and Warranties of the Company. The Company hereby represents and warrants to each Purchaser that,
except as set forth on the Disclosure Schedule attached as Exhibit D to this Agreement, which exceptions shall be deemed
to be part of the representations and warranties made hereunder, the following representations are true and complete as of the
date of the Initial Closing, except as otherwise indicated. The Disclosure Schedule shall be arranged in sections corresponding
to the numbered and lettered sections and subsections contained in this Section 2, and the disclosures in any section or
subsection of the Disclosure Schedule shall qualify other sections and subsections in this Section 2 only to the extent
it is readily apparent from a reading of the disclosure that such disclosure is applicable to such other sections and subsections.

2.1.   
Organization, Good Standing, Corporate Power and Qualification. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry
on its business as presently conducted and as proposed to be conducted. The Company is duly qualified to transact business and
is in good standing in each jurisdiction in which the failure to so qualify would have a Material Adverse Effect.

2.2.   
Capitalization.

(a)               
The authorized capital of the Company consists, immediately prior to the Initial Closing, of:

(i)        
3,000,000 shares of Class A-1 and Class A-2 common stock, $.00001 par value per share (the “Common Stock”),
1,120,000 shares of which are issued and outstanding immediately prior to the Initial Closing. All of the outstanding shares of
Common Stock have been duly authorized, are fully paid and nonassessable and were issued in compliance with all applicable federal
and state securities laws.

(ii)      
5,000,000 shares of Series A Preferred Stock, $.00001 par value per share (the “Series A Preferred Stock”)
of which 3,500,000 shares are issued and outstanding immediately prior to the Initial Closing. The rights, privileges and preferences
of the Preferred Stock are as stated in the Restated Certificate and as provided by the Delaware General Corporation Law.

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(iii)    
350,000 shares of Series B-1 Preferred Stock, $.00001 par value per share, none of which are issued and outstanding immediately
prior to the Initial Closing, and 1,200,000 shares of Series B- 2 Preferred Stock, $.00001 par value per share, none of which are
issued and outstanding immediately prior to the Initial Closing. The rights, privileges and preferences of the Preferred Stock
are as stated in the Restated Certificate and as provided by the Delaware General Corporation Law.

(b)              
The Company has adopted an equity incentive plan (the “Stock Plan”) and has reserved 71,500 shares of
Class A-1 Common Stock, which represents six percent (6%) of the total outstanding shares of Common Stock on a fully diluted basis
(prior to issuance of the Series B Preferred Shares pursuant hereto), for issuance to officers, directors, employees and consultants
of the Company pursuant to the Stock Plan.

(c)               
Subsection 2.2(b) of the Disclosure Schedule sets forth the capitalization of the Company immediately following the
Initial Closing including the number of shares of the following: (i) issued and outstanding Class A-1 Common Stock and Class
A-2 Common Stock; (ii) granted stock options, including vesting schedule and exercise price; (iii) shares of Common Stock
reserved for future award grants under the Stock Plan; (iv) each series of Preferred Stock; and (v) warrants or stock
purchase rights, if any. Except for (A) the conversion privileges of the Shares to be issued under this Agreement, (B) the Warrants,
(C) the rights provided in the Stockholders Agreement, and (D) the securities and rights described in Subsection 2.2(a)(iii)
of this Agreement and Subsection 2.2(b) of the Disclosure Schedule, there are no outstanding options, warrants, rights (including
conversion or preemptive rights and rights of first refusal or similar rights) or agreements, orally or in writing, to purchase
or acquire from the Company any shares of Common Stock or Preferred Stock, or any securities convertible into or exchangeable for
shares of Common Stock or Preferred Stock.

2.3.   
Subsidiaries. The Company currently owns all of the outstanding equity of LipimetiX Australia Pty Ltd (“LipimetiX
Australia”). The Company formed LipimetiX Australia in order to allow the Company to perform clinical trials in Australia
and to participate in a program sponsored by the Australian government which may provide reimbursement to the Company of forty-five
percent (45%) of allowable expenses incurred by the Company in Australia to perform such clinical trials. Except for LipimetiX
Australia, the Company does not currently own or control, directly or indirectly, any interest in any other corporation, partnership,
trust, joint venture, limited liability company, association, or other business entity.

2.4.   
Authorization. All corporate action required to be taken by the Company’s Board of Directors and stockholders
in order to authorize the Company to enter into the Transaction Agreements, and to issue the Shares and Warrants, as applicable,
at the Closing, and to issue the Warrant Shares and the Common Stock issuable upon conversion of the Shares, has been taken or
will be taken prior to the Closing. All action on the part of the officers of the Company necessary for the execution and delivery
of the Transaction Agreements, the performance of all obligations of the Company under the Transaction Agreements to be performed
as of the Closing, and the issuance and delivery of the Shares and Warrants has been taken or will be taken prior to the Closing.
The Transaction Agreements, when executed and delivered by the Company, shall constitute valid and legally binding obligations
of the Company, enforceable against the Company in accordance with their respective terms except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or
affecting the enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies, or (iii) to the extent indemnification provisions contained
in the Transaction Agreements may be limited by applicable federal or state securities laws.

    	 	5	 

     

    

2.5.   
Valid Issuance of Shares.

(a)               
The Shares, when issued, sold and delivered in accordance with the terms and for the consideration set forth in this Agreement
will be validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under
the Transaction Agreements, applicable state and federal securities laws and liens or encumbrances created by or imposed by a Purchaser.
Assuming the accuracy of the representations of the Purchasers in Section 3 of this Agreement and subject to the filings
described in Subsection 2.5(b) below, the Shares will be issued in compliance with all applicable federal and state
securities laws. The Warrant Shares and the Common Stock issuable upon conversion of the Shares have been duly reserved for issuance,
and upon issuance in accordance with the terms of the Restated Certificate, will be validly issued, fully paid and nonassessable
and free of restrictions on transfer other than restrictions on transfer under the Transaction Agreements, applicable federal and
state securities laws and liens or encumbrances created by or imposed by a Purchaser.

(b)              
No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a “Disqualification
Event”) is applicable to the Company or, to the Company’s knowledge, any Company Covered Person, except for a Disqualification
Event as to which Rule 506(d)(2)(ii–iv) or (d)(3), is applicable.

2.6.   
Governmental Consents and Filings. Assuming the accuracy of the representations made by the Purchasers in Section
3 of this Agreement, no consent, approval, order or authorization of, or registration, qualification, designation, declaration
or filing with, any federal, state or local governmental authority is required on the part of the Company in connection with the
consummation of the transactions contemplated by this Agreement, except for (i) the filing of the Restated Certificate, which will
have been filed as of the Initial Closing, and (ii) filings pursuant to Regulation D of the Securities Act, and applicable
state securities laws, which have been made or will be made in a timely manner.

2.7.   
Litigation. There is no claim, action, suit, proceeding, arbitration, complaint, charge or investigation pending
or to the Company’s knowledge, currently threatened in writing (i) against the Company; or (ii) to the Company’s knowledge,
that questions the validity of the Transaction Agreements or the right of the Company to enter into them, or to consummate the
transactions contemplated by the Transaction Agreements; or (iii) to the Company’s knowledge, that would reasonably be expected
to have, either individually or in the aggregate, a Material Adverse Effect.

2.8.   
Intellectual Property. The Company possesses certain intellectual rights pursuant to the Exclusive License Agreement,
dated August 26, 2011, between The UAB Research Foundation and LipimetiX Development, LLC, as amended and assigned to the Company,
governing the license and exploitation of the Licensed Patents, as defined therein, relating to Apolipoprotein E mimetic peptides.
The Company has also filed one formulation patent application with the United States Patent and Trademark Office.

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2.9.   
Compliance with Other Instruments. The Company is not in violation or default (i) of any provisions of its Restated
Certificate or Bylaws, (ii) of any instrument, judgment, order, writ or decree, (iii) under any note, indenture or mortgage, or
(iv) under any lease, agreement, contract or purchase order to which it is a party or by which it is bound that is required to
be listed on the Disclosure Schedule, or (v) to its knowledge, of any provision of federal or state statute, rule or regulation
applicable to the Company, the violation of which would have a Material Adverse Effect. The execution, delivery and performance
of the Transaction Agreements and the consummation of the transactions contemplated by the Transaction Agreements will not result
in any such violation or be in conflict with or constitute, with or without the passage of time and giving of notice, either (i)
a default under any such provision, instrument, judgment, order, writ, decree, contract or agreement, or (ii) an event which results
in the creation of any lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, forfeiture, or
nonrenewal of any material permit or license applicable to the Company.

2.10.    Agreements; Actions.

(a)               
Except for the Transaction Agreements, the Exclusive License Agreement, the Management Agreement and the Accounting Services
Agreement, there are no agreements, understandings, instruments, contracts or proposed transactions to which the Company is a party
or by which it is bound that involve (i) obligations (contingent or otherwise) of, or payments to, the Company in excess of
$1,000,000, (ii) the license of any patent, copyright, trademark, trade secret or other proprietary right to or from the Company,
(iii) the grant of rights to manufacture, produce, assemble, license, market, or sell its products to any other Person that
limit the Company’s exclusive right to develop, manufacture, assemble, distribute, market or sell its products, or (iv) indemnification
by the Company with respect to infringements of proprietary rights.

(b)              
The Company has not (i) declared or paid any dividends, or authorized or made any distribution upon or with respect
to any class or series of its capital stock, (ii) incurred any indebtedness for money borrowed other than indebtedness in the aggregate
principal amount of approximately $1,500,000 owed to Capstone Therapeutics Corp., or indebtedness incurred in the ordinary course
of business, (iii) made any loans or advances to any Person, other than ordinary advances for travel expenses, or (iv) sold,
exchanged or otherwise disposed of any of its assets or rights, other than the sale of its inventory in the ordinary course of
business. For the purposes of (a) and (b) of this Subsection 2.9, all indebtedness, liabilities, agreements, understandings,
instruments, contracts and proposed transactions involving the same Person (including Persons the Company has reason to believe
are affiliated with each other) shall be aggregated for the purpose of meeting the individual minimum dollar amounts of such subsection.

(c)               
The Company is not a guarantor or indemnitor of any indebtedness of any other Person.

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2.11.               
Certain Transactions. The Company is not indebted, directly or indirectly, to any of its directors, officers or employees
or to their respective spouses or children or to any Affiliate of any of the foregoing, other than in connection with expenses
or advances of expenses incurred in the ordinary course of business or employee relocation expenses and for other customary employee
benefits made generally available to all employees. None of the Company’s directors, officers or employees, or any members
of their immediate families, or any Affiliate of the foregoing are, directly or indirectly, indebted to the Company.

2.12.               
Tax Returns and Payments. There are no federal, state, county, local or foreign taxes due and payable by the Company
which have not been timely paid. There are no accrued and unpaid federal, state, country, local or foreign taxes of the Company
which are due, whether or not assessed or disputed. There have been no examinations or audits of any tax returns or reports by
any applicable federal, state, local or foreign governmental agency. The Company has duly and timely filed all federal, state,
county, local and foreign tax returns required to have been filed by it and there are in effect no waivers of applicable statutes
of limitations with respect to taxes for any year.

2.13.               
Permits. The Company has all franchises, permits, licenses and any similar authority necessary for the conduct of
its business, the lack of which could reasonably be expected to have a Material Adverse Effect. The Company is not in default in
any material respect under any of such franchises, permits, licenses or other similar authority.

2.14.               
Disclosure. The Company has made available to the Purchasers all the information reasonably available to the Company
that the Purchasers have requested for deciding whether to acquire the Shares, including a PowerPoint presentation regarding proposed
pharmaceutical development operations (the “Operating Plan”). No representation or warranty of the Company contained
in this Agreement, as qualified by the Disclosure Schedule, and no certificate furnished or to be furnished to Purchasers at the
Closing contains any untrue statement of a material fact or, to the Company’s knowledge, omits to state a material fact necessary
in order to make the statements contained herein or therein not misleading in light of the circumstances under which they were
made. The Operating Plan was prepared in good faith; however, the Company does not warrant that it will achieve any results projected
in the Operating Plan. It is understood that this representation is qualified by the fact that the Company has not delivered to
the Purchasers, and has not been requested to deliver, a private placement or similar memorandum or any written disclosure of the
types of information customarily furnished to purchasers of securities.

3. 
Representations, Warranties and Covenants of the Purchasers. Each Purchaser hereby represents and warrants to the
Company, severally and not jointly, that:

3.1.   
Authorization. The Purchaser has full power and authority to enter into the Transaction Agreements. The Transaction
Agreements to which the Purchaser is a party, when executed and delivered by the Purchaser, will constitute valid and legally
binding obligations of the Purchaser, enforceable in accordance with their terms, except (a) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance and any other laws of general application affecting enforcement
of creditors’ rights generally, and as limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies, or (b) to the extent the indemnification provisions contained in the Transaction Agreements
may be limited by applicable federal or state securities laws.

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3.2.   
Purchase Entirely for Own Account. This Agreement is made with the Purchaser in reliance upon the Purchaser’s
representation to the Company, which by the Purchaser’s execution of this Agreement, the Purchaser hereby confirms, that
the Shares, Warrants, and Warrant Shares, as applicable, to be acquired by the Purchaser will be acquired for investment for the
Purchaser’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof,
and that the Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same.
By executing this Agreement, the Purchaser further represents that the Purchaser does not presently have any contract, undertaking,
agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person, with
respect to any of the Shares, Warrants or Warrant Shares. The Purchaser has not been formed for the specific purpose of acquiring
the Shares, Warrants or Warrant Shares.

3.3.   
Disclosure of Information. The Purchaser has had an opportunity to discuss the Company’s business, management,
financial affairs and the terms and conditions of the offering of the Shares with the Company’s management and has had an
opportunity to review the Company’s facilities. The foregoing, however, does not limit or modify the representations and
warranties of the Company in Section 2 of this Agreement or the right of the Purchasers to rely thereon.

3.4.   
Restricted Securities; No Public Market. The Purchaser understands that the Securities have not been, and will not
be, registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act
which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Purchaser’s
representations as expressed herein. The Purchaser understands that the Shares and Warrants are, and the Warrant Shares and Common
Stock issuable upon conversion of the Shares will be, “restricted securities” under applicable U.S. federal and state
securities laws and that, pursuant to these laws, the Purchaser must hold the Securities indefinitely unless they are registered
with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification
requirements is available. The Purchaser acknowledges that the Company has no obligation to register or qualify the Securities
for resale except as set forth in the Registration Rights Agreement. The Purchaser further acknowledges that if an exemption from
registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time
and manner of sale, the holding period for the Securities, and on requirements relating to the Company which are outside of the
Purchaser’s control, and which the Company is under no obligation and may not be able to satisfy. The Purchaser understands
that no public market now exists for the Securities, and that the Company has made no assurances that a public market will ever
exist for the Securities.

3.5.   
High Degree of Risk; Reliance on Own Advisors. The Purchaser acknowledges that an investment in the Securities involves
a high degree of risk and there can be no assurance regarding the current or future economic value of the Securities or the performance
of the Company or its business operations. The Purchaser has carefully read the Risk Factors attached to this Agreement as Exhibit
E and incorporated into this Agreement by this reference (“Risk Factors”), has had an opportunity to review the
Risk Factors with the officers of the Company and their representatives, and to ask questions and receive answers from them regarding
such matters. The Purchaser further acknowledges that the Purchaser has relied on his, her or its own analysis and evaluation of
the merits of acquiring the Shares and Warrants, as applicable, and has reviewed with his, her or its own tax advisors the U.S.
federal, state, local and any applicable foreign tax consequences of acquiring the Shares and Warrants, as applicable. With respect
to such matters, the Purchaser relies solely on such advisors and not on any statements or representations of the Company or any
of its officers or agents, written or oral.

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3.6.   
Legends. The Purchaser understands that the Shares and the Warrant Shares and any securities issued in respect of
or exchange for the Shares or the Warrant Shares, may be notated with one or all of the following legends:

“THE SHARES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO,
OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT
RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
SECURITIES ACT OF 1933.”

(a)               
Any legend set forth in, or required by, the other Transaction Agreements.

(b)              
Any legend required by the securities laws of any state to the extent such laws are applicable to the Shares or Warrant
Shares represented by the certificate, instrument, or book entry so legended.

3.7.   
Accredited Investor. The Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated
under the Securities Act.

3.8.   
Foreign Investors. If the Purchaser is not a United States person (as defined by Section 7701(a)(30) of the
Code), the Purchaser hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in
connection with any invitation to subscribe for the Shares or any use of this Agreement, including (i) the legal requirements
within its jurisdiction for the purchase of the Shares, (ii) any foreign exchange restrictions applicable to such purchase,
(iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences,
if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Shares. The Purchaser’s subscription
and payment for and continued beneficial ownership of the Shares will not violate any applicable securities or other laws of the
Purchaser’s jurisdiction.

3.9.   
No General Solicitation. Neither the Purchaser, nor any of its officers, directors, employees, agents, stockholders
or partners has either directly or indirectly, including, through a broker or finder (a) engaged in any general solicitation,
or (b) published any advertisement in connection with the offer and sale of the Shares or Warrants.

    	 	10	 

     

    

3.10.               
Exculpation Among Purchasers. The Purchaser acknowledges that it is not relying upon any Person, other than the Company
and its officers and directors, in making its investment or decision to invest in the Company.

3.11.               
Residence. If the Purchaser is an individual, then the Purchaser resides in the state or province identified in the
address of the Purchaser set forth on Exhibit A; if the Purchaser is a partnership, corporation, limited liability company
or other entity, then the office or offices of the Purchaser in which its principal place of business is identified in the address
or addresses of the Purchaser set forth on Exhibit A.

3.12.               
Acknowledgment Regarding Contracts and Plan. The Purchaser hereby acknowledges that (i) the Company is party to the
Management Agreement, pursuant to which Benu Biopharma, Inc., an Affiliate of certain of the stockholders of the Company, is contracted
to manage all aspects of AEM-28 and analogs development, which Management Agreement provides for a monthly fee to Benu Biopharma
for such services, as referenced in the Disclosure Schedule, and (ii) the Company is party to the Accounting Services Agreement,
pursuant to which Capstone Therapeutics Corp., on a monthly fee basis, provides all cash management, accounting and contract administration
to the Company, and management of LipimetiX Australia, as referenced in the Disclosure Schedule. The Purchaser also acknowledges
that the Company may increase the number of shares available under the Stock Plan, and does hereby consent to and approve any amendment
to increase such number of shares subject to the Stock Plan, and agrees to vote in favor thereof if presented to the stockholders
of the Company for approval.

4.  Conditions
to the Purchasers’ Obligations at Closing. The obligations of each Purchaser to purchase Shares and Warrants at the
Initial Closing or any subsequent Closing are subject to the fulfillment, on or before such Closing, of each of the following
conditions, unless otherwise waived:

4.1     
Representations and Warranties. The representations and warranties of the Company contained in Section 2 shall
be true and correct in all respects as of such Closing.

4.2     
Performance. The Company shall have performed and complied with all covenants, agreements, obligations and conditions
contained in this Agreement that are required to be performed or complied with by the Company on or before such Closing.

4.3     
Compliance Certificate. The President of the Company shall deliver to the Purchasers at such Closing a certificate
certifying that the conditions specified in Subsections 4.1 and 4.2 have been fulfilled.

4.4     
Qualifications. All authorizations, approvals or permits, if any, of any governmental authority or regulatory body
of the United States or of any state that are required in connection with the lawful issuance and sale of the Shares and the Warrants
pursuant to this Agreement shall be obtained and effective as of such Closing.

4.5     
Registration Rights Agreement. The Company and each Purchaser (other than the Purchaser relying upon this
condition to excuse such Purchaser’s performance hereunder) and the other stockholders of the Company named as parties thereto
shall have executed and delivered the Registration Rights Agreement, substantially in the form of Exhibit F hereto.

    	 	11	 

     

    

4.6     
Amended and Restated Stockholders Agreement. The Company, each Purchaser (other than the Purchaser relying upon
this condition to excuse such Purchaser’s performance hereunder), and the other stockholders of the Company named as parties
thereto shall have executed and delivered the Amended and Restated Stockholders Agreement, substantially in the form of Exhibit
G hereto.

4.7     
Amended and Restated Certificate. The Company shall have filed the Restated Certificate with the Secretary
of State of Delaware on or prior to the Closing, which shall continue to be in full force and effect as of the Closing.

4.8     
Secretary’s Certificate. The Secretary of the Company shall have delivered to the Purchasers at the Closing
a certificate certifying (i) the Bylaws of the Company, (ii) resolutions of the Board of Directors of the Company approving the
Transaction Agreements and the transactions contemplated under the Transaction Agreements, and (iii) resolutions of the stockholders
of the Company approving the Restated Certificate.

4.9     
Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated
at the Closing and all documents incident thereto shall be reasonably satisfactory in form and substance to each Purchaser, and
each Purchaser (or its counsel) shall have received all such counterpart original and certified or other copies of such documents
as reasonably requested. Such documents may include good standing certificates.

4.10 
Preemptive Rights. The Company shall have fully satisfied (including with respect to rights of timely notification)
or obtained enforceable waivers in respect of any preemptive or similar rights directly or indirectly affecting any of its securities.

5. 
Conditions of the Company’s Obligations at Closing. The obligations of the Company to sell Shares and Warrants
to the Purchasers at the Initial Closing or any subsequent Closing are subject to the fulfillment, on or before the Closing, of
each of the following conditions, unless otherwise waived:

5.1     
Representations and Warranties. The representations and warranties of each Purchaser contained in Section 3 shall
be true and correct in all respects as of such Closing.

5.2     
Performance. The Purchasers shall have performed and complied with all covenants, agreements, obligations and conditions
contained in this Agreement that are required to be performed or complied with by them on or before such Closing.

5.3     
Qualifications. All authorizations, approvals or permits, if any, of any governmental authority or regulatory body
of the United States or of any state that are required in connection with the lawful issuance and sale of the Shares and Warrants,
as applicable, pursuant to this Agreement shall be obtained and effective as of the Closing.

5.4     
Registration Rights Agreement. Each Purchaser shall have executed and delivered the Registration Rights Agreement,
substantially in the form of Exhibit E hereto.

    	 	12	 

     

    

5.5     
Amended and Restated Stockholders Agreement. Each Purchaser and the other stockholders of the Company named as parties
thereto shall have executed and delivered the Amended and Restated Stockholders Agreement, substantially in the form of Exhibit
F hereto. 

6. 
Miscellaneous. 

6.1     
Survival of Warranties. Unless otherwise set forth in this Agreement, the representations and warranties of the Company
and the Purchasers contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and
the Closing and shall in no way be affected by any investigation or knowledge of the subject matter thereof made by or on behalf
of the Purchasers or the Company.

6.2     
Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon
the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon
any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations or liabilities
under or by reason of this Agreement, except as expressly provided in this Agreement.

6.3     
Governing Law. This Agreement shall be governed by the internal law of the State of Delaware.

6.4     
Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic
mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com)
or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid
and effective for all purposes.

6.5     
Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to
be considered in construing or interpreting this Agreement.

6.6     
Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall
be deemed effectively given upon the earlier of actual receipt, or (a) personal delivery to the party to be notified, (b) when
sent, if sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business
hours, then on the recipient’s next business day, (c) five (5) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid, or (d) one (1) business day after deposit with a nationally recognized overnight courier,
freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent
to the respective parties at their address as set forth on the signature page or Exhibit A, or to such e-mail address, facsimile
number or address as subsequently modified by written notice given in accordance with this Subsection 6.6.

    	 	13	 

     

    

6.7     
No Finder’s Fees. Each party represents that it neither is nor will be obligated for any finder’s fee
or commission in connection with the Initial Closing of the sale of the Series B Preferred Stock to the initial Purchasers listed
on Exhibit A hereto. Each Purchaser agrees to indemnify and to hold harmless the Company from any liability for any commission
or compensation in the nature of a finder’s or broker’s fee arising out of this transaction (and the costs and
expenses of defending against such liability or asserted liability) for which each Purchaser or any of its officers, employees
or representatives is responsible. The Company agrees to indemnify and hold harmless each Purchaser from any liability for any
commission or compensation in the nature of a finder’s or broker’s fee arising out of this transaction (and the
costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers, employees
or representatives is responsible.

6.8     
Intentionally Omitted.

6.9     
Attorneys’ Fees. If any action at law or in equity (including, arbitration) is necessary to enforce or interpret
the terms of any of the Transaction Agreements or the Warrants, the prevailing party shall be entitled to reasonable attorneys’
fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

6.10 
Amendments and Waivers. Except as set forth in Subsection 1.2(b) of this Agreement, any term of this Agreement
may be amended, terminated or waived only with the written consent of the Company and the holders of at least fifty percent (50%)
of the outstanding shares of Common Stock (assuming conversion of all outstanding Series B Preferred Stock). Any amendment or waiver
effected in accordance with this Subsection 6.10 shall be binding upon the Purchasers and each transferee of the Securities,
each future holder of all such Securities, and the Company.

6.11 
Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability
of any other provision.

6.12 
Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this
Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of
such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of
any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any
party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically
set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative
and not alternative.

6.13 
Entire Agreement. This Agreement (including the Exhibits hereto), the Restated Certificate, the Warrants, and the
other Transaction Agreements constitute the full and entire understanding and agreement between the parties with respect to the
subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties
are expressly canceled.

    	 	14	 

     

    

6.14 
Corporate Securities Law. THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED
WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE SECURITIES OR THE PAYMENT OR RECEIPT OF
ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM THE
QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT
ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED UNLESS THE SALE IS SO EXEMPT.

6.15 
Dispute Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state
courts of Arizona and to the jurisdiction of the United States District Court for the District of Arizona for the purpose of any
suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other
proceeding arising out of or based upon this Agreement except in the state courts of Arizona or the United States District
Court for the District of Arizona, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise,
in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts,
that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient
forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not
be enforced in or by such court.

Waiver
of Jury Trial: EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE
OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE
SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH
OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO
AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH
PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

[Signature
Pages Follow.]

 

    	 	15	 

     

    

IN WITNESS
WHEREOF, the parties have executed this Series B Preferred Stock and Warrant Purchase Agreement as of the date first written
above.

 

	 	COMPANY:
	 	 
	 	 
	 	LIPIMETIX DEVELOPMENT, INC.
	 	 
	 	By: /s/: Dennis I. Goldberg
	 	 
	 	Name: Dennis I. Goldberg, Ph.D.
	 	 
	 	Title: President
	 	 	 
	 	Address:	5 Commonwealth Rd., Suite 2A
	 	 	Natick, Massachusetts 01760
	 	 	Attn: Dennis I. Goldberg, Ph.D.
	 	 	Email: dgoldberg@lipimetix.com
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Leslie M. Taeger
	 	 	Senior Vice President &
	 	 	Chief Financial Officer
	 	 	Capstone Therapeutics Corp.
	 	 	1275 W. Washington St., Suite 104
	 	 	Tempe, AZ 85281

 

 

 

[Signature
Page to Stock Purchase Agreement]

    	 		 

     

    

	 	PURCHASERS:	 
	 	 	 
	 	 	 
	 	(Name of Purchaser - See Exhibit A)	 
	 	 	 
	 	 	 
	 	By: (See Exhibit A)	 
	 	 	 
	 	Name: (See Exhibit A)	(print)

 

[Signature Page to Stock Purchase Agreement]

    	 		 

     

    

EXHIBIT A

SCHEDULE OF PURCHASERS

	INITIAL CLOSING
	Name and Address

of Purchaser	 	 	 
	The Purchasers are accredited investors as defined in Rule 501(a) of Regulation D promulgated under the Securities Act.	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

    	 		 

     

    

EXHIBIT B

FORM OF WARRANT

 

 

 

 

    	 		 

     

    

EXHIBIT C

FORM OF AMENDED AND RESTATED
CERTIFICATE OF INCORPORATION

 

 

 

 

    	 		 

     

    

EXHIBIT D

DISCLOSURE SCHEDULE

Capstone Revolving Line of Credit

At June 30, 2016, the outstanding balance of the Revolving
Line of Credit “(Line”) extended to LipimetiX Development, Inc. (“JV” or “LipimetiX”) by Capstone
Therapeutics Corp. was $1,553,000. The Line bears interest at 5% and is due December 31, 2016.

Benu BioPharma Management Services Agreement

The JV entered into a Management Services Agreement
with Benu BioPharma, Inc. (“Benu”) to manage JV development activities. Benu is composed of Dennis I. Goldberg, Ph.D.,
Phillip M. Friden, Ph.D., and Eric M. Morrel, Ph.D.   The current monthly management fee is $80,000. However, no Management
fees are due or payable except to the extent funding is available, as unanimously approved by members of the JV Board of Directors
and as reflected in the approved operating budget in effect at that time.  Following the Series B-1 closing, Benu will be
paid $50,000 per month for six months as a stated use of Series B-1 proceeds.

Capstone Accounting Services Agreement

The JV entered into an Accounting Services Agreement
with Capstone Therapeutics Corp. to manage JV accounting and administrative functions. The current monthly accounting services
fee is $10,000. However, no Accounting Services fees are due or payable except to the extent funding is available, as unanimously
approved by members of the JV Board of Directors and as reflected in the approved operating budget in effect at that time. 
Following the Series B-1 closing, Capstone Therapeutics Corp. will be paid $10,000 per month for six months as a stated use of
Series B-1 proceeds.

LipimetiX Stock Plan

The LipimetiX Stock Plan was approved by the LipimetiX
board and a majority of shareholders on June 10, 2016 for the purpose of incentivizing key management, board and consultants who
contribute to the success of LipimetiX. On that date, the board authorized a pool of 71,500 common shares (6% of fully-diluted
shares outstanding prior to the Series B-1 financing) for potential grant.  At the same meeting, the board granted a total
of 67,026 options to Dr. Goldberg, Dr. Friden, Dr. Morell, Dr. Anantharamaiah, Dr. Steer, Dr. Garber, Mr. Taeger and Mr. Holliman,
recognizing past and future service to LipimetiX.  The options are priced at 10% of the price per share of the Series B-1
or $1.07 per share and are 50% vested as of grant with remaining vesting on a monthly linear basis over 24 months.

 

    	 		 

     

    

EXHIBIT E

RISK FACTORS

An investment
in the Shares should be considered highly speculative and involves a number of risks regarding our business, including without
limitation those described below, as well as risks regarding the terms of the investment as set forth in this Agreement, the Certificate
and the other Transaction Agreements. You should conduct your own due diligence prior to investing, and should also make such inquiries
of the Company as you deem appropriate. You should also consult with your own legal, tax and financial advisors. If any of the
following risks actually occur, the Company’s business, financial condition, results of operation, or even its continued
existence could be harmed. Additional risks and uncertainties not presently known to the Company, or that it currently thinks are
immaterial, may also impair the Company’s business operations. Among the risk components that you should consider and discuss
with your advisors are the following:

1. We are a biopharmaceutical
company with no revenue generating operations and high investment costs. Therefore, we will require additional funding to realize
revenue from any of our product candidates, and we may never realize any revenue if our product candidates cannot be commercialized.

Our current level of funds is not
sufficient to support continued research to develop our product candidates, and the proceeds of this offering will not be sufficient
to fund all the research expenses necessary to achieve commercialization of any of our product candidates. We will require substantial
additional capital, and/or a development partner, to complete the clinical trials and supporting research and production efforts
necessary to obtain FDA or comparable foreign agencies’ approval, if any, for our product candidates. We may not receive
any revenue from our product candidates until we receive regulatory approval and begin commercialization of our product candidates.
We cannot predict whether, or when, that might occur. We can give no assurances regarding how much further development of our product
candidates the proceeds will fund before more funding is necessary. There is no assurance that we can obtain needed funding from
third parties on terms acceptable to us, or at all. New sources of funds, including raising capital through the sales of our debt
or equity securities, joint venture or other forms of joint development arrangements, sales of development rights, or licensing
agreements, may not be available or may only be available on terms that would have a material adverse impact on our existing stockholders’
interests.

Our future cash expenditure levels
are difficult to forecast because the forecast is based on assumptions about the level of future operations, including the number
of research projects we pursue, the pace at which we pursue them, the quality of the data collected and the requests of the FDA
or comparable foreign agencies to expand, narrow or conduct additional clinical trials and analyze data. Changes in any of these
assumptions can change significantly our estimated cash expenditure levels.

2. Our business is subject
to stringent regulation, and if we do not obtain regulatory approval for our product candidates, we will not be able to generate
revenue.

Our research, development, pre-clinical
and clinical trial activities and the manufacture and marketing of any products that we may successfully develop are subject to
an extensive regulatory approval process by the FDA and other regulatory agencies in the United States and abroad. The process
of obtaining required regulatory approvals for pharmaceutical products is lengthy, expensive and uncertain, and any such regulatory
approvals may entail limitations on the indicated usage of a product, which may reduce the product’s market potential. None
of our product candidates has been approved for sale.

If we experience delays in our clinical
trials, we will incur additional costs and our opportunities to monetize product candidates will be deferred. Delays could occur
for many reasons, including the following:

		·	the FDA or other health regulatory authorities, or institutional review boards, do not approve a clinical study protocol or
place a clinical study on hold;

		·	suitable patients do not enroll in a clinical study in sufficient numbers or at the expected rate, or data is adversely affected
by trial conduct or patient drop out;

 

    	 		 

     

    

		·	patients experience serious adverse events, including adverse side effects of our product candidates;

		·	patients in the placebo or untreated control group exhibit greater than expected improvements or fewer than expected adverse
events;

		·	third-party clinical investigators do not perform the clinical studies on the anticipated schedule or consistent with the clinical
study protocol and good clinical practices, or other third-party organizations do not perform data collection and analysis in a
timely or accurate manner;

		·	service providers, collaborators or co-sponsors do not adequately perform their obligations in relation to the clinical study
or cause the study to be delayed or terminated;

		·	we experience difficulties in obtaining sufficient quantities of the particular product candidate or any other components needed
for pre-clinical testing or clinical trials;

		·	regulatory inspections of manufacturing facilities, which may, among other things, require us or a co-sponsor to undertake
corrective action or suspend the clinical studies;

		·	the interim results of the clinical study are inconclusive or negative;

		·	the clinical study, although approved and completed, generates data that is not considered by the FDA or others to be sufficient
to demonstrate safety and efficacy;

		·	changes in governmental regulations or administrative actions affect the conduct of the clinical trial or the interpretation
of its result;

		·	there is a change in the focus of our development efforts or a re-evaluation of our clinical development strategy; and

		·	we lack of sufficient funds to pay for development costs.

Consequently, we cannot assure that
we will make submissions to the FDA or comparable foreign agencies in the timeframe that we have planned, or at all, or that our
submissions will be approved by the FDA or comparable foreign agencies. Even if regulatory clearance is obtained, post-market evaluation
of our future products, if required, could result in restrictions on a product’s marketing or withdrawal of a product from
the market as well as possible civil and criminal sanctions.

3. If our product candidates
do not gain market acceptance or our competitors develop and market products that are more effective than our product candidates,
our commercial opportunities will be reduced or eliminated.

Even if we bring one or more products
to market, there is no assurance that we will be able to successfully manufacture or market the products or that potential customers
will buy them. Market acceptance will depend on our ability to demonstrate to physicians and patients the benefits of the future
products in terms of safety, efficacy, and convenience, ease of administration and cost effectiveness, as well as on our ability
to continue to develop product candidates to respond to competitive and technological changes. In addition, we believe that market
acceptance depends on the effectiveness of our marketing strategy, the pricing of our future products and the reimbursement policies
of government and third-party payors. Physicians may not prescribe our future products, and patients may determine, for any reason,
that our product is not useful to them. Insurance companies and other third party payors may determine not to reimburse for the
cost of the product.

Competition in the pharmaceutical
and biotechnology industries is intense and is expected to increase. Several biotechnology and pharmaceutical companies, as well
as academic laboratories, universities and other research institutions, are involved in research and/or product development for
indications targeted for use by our Apo E mimetic peptide molecule, AEM-28 (“AEM-28”), and its analogs. Most of our
competitors have significantly greater research and development capabilities, experience in obtaining regulatory approvals and
manufacturing, marketing, financial and managerial resources than we have.

Our competitors may succeed in developing
products that are more effective than the ones we have under development or that render our proposed products or technologies noncompetitive
or obsolete. In addition, certain of our competitors may achieve product commercialization before we do. If any of our competitors
develops a product that is more effective than one that we are developing or plans to develop, or is able to obtain FDA or comparable
foreign agencies’ approval for commercialization before we do, we may not be able to achieve significant market acceptance
for certain of our products, which would have a material adverse effect on our business.

    	 		 

     

    

4. If we cannot protect our
AEM-28 and other patents, or our intellectual property generally, our ability to develop and commercialize our future products
will be severely limited. 

Our success will depend in part
on our ability to maintain and enforce patent protection for AEM-28 and its analogs and each resulting product. Without patent
protection, other companies could offer substantially identical products for sale without incurring the sizable discovery, development
and licensing costs that we have incurred. Our ability to recover these expenditures and realize profits upon the sale of products
would then be diminished.

AEM-28 is patented and patent applications
for the AEM-28 analogs have be filed. There have been no successful challenges to the patents. However, if there were to be a challenge
to these patents or any of the patents for product candidates, a court may determine that the patents are invalid or unenforceable.
Even if the validity or enforceability of a patent is upheld by a court, a court may not prevent alleged infringement on the grounds
that such activity is not covered by the patent claims. Any litigation to enforce our rights to use our or our licensors’
patents will be costly, time consuming and may distract management from other important tasks.

As is commonplace in the biotechnology
and pharmaceutical industries, we employ, or engage as consultants, individuals who were previously employed at other biotechnology
or pharmaceutical companies, including our competitors or potential competitors. To the extent our employees are involved in research
areas which are similar to those areas in which they were involved at their former employers, we may be subject to claims that
such employees and/or we have inadvertently or otherwise used or disclosed the alleged trade secrets or other proprietary information
of the former employers. Litigation may be necessary to defend against such claims, which could result in substantial costs and
be a distraction to management and which may have a material adverse effect on us, even if we are successful in defending such
claims.

We also rely on trade secrets, know-how
and other proprietary information. We seek to protect this information, in part, through the use of confidentiality agreements
with employees, consultants, advisors and others. Nonetheless, we cannot assure that those agreements will provide adequate protection
for our trade secrets, know-how or other proprietary information and prevent their unauthorized use or disclosure. The risk that
other parties may breach confidentiality agreements or that our trade secrets become known or independently discovered by competitors,
could adversely affect us by enabling our competitors, who may have greater experience and financial resources, to copy or use
our trade secrets and other proprietary information in the advancement of their products, methods or technologies.

5.  Our success also depends
on our ability to operate and commercialize products without infringing on the patents or proprietary rights of others.

Third parties may claim that we
or our licensors or suppliers are infringing their patents or are misappropriating their proprietary information. In the event
of a successful claim against us or our licensors or suppliers for infringement of the patents or proprietary rights of others,
we may be required to, among other things:

·        
pay substantial damages;

·        
stop using our technologies;

·        
stop certain research and development efforts;

·        
develop non-infringing products or methods; and

·        
obtain one or more licenses from third parties.

A license required under any such patents or proprietary
rights may not be available to us, or may not be available on acceptable terms. If we or our licensors or suppliers are sued for
infringement, we could encounter substantial delays in, or be prohibited from, developing, manufacturing and commercializing our
product candidates.

6. Our reliance on third party
clinical research organizations and other consultants could have a material effect on our ability to conduct clinical trials and
perform research and development. Product development costs to us and our potential collaborators will increase, and our business
may be negatively impacted, if we experience delays in testing or approvals or if we need to perform more or larger clinical trials
than planned.

    	 		 

     

    

To obtain regulatory approvals for
new products, we must, among other things, initiate and successfully complete multiple clinical trials demonstrating to the satisfaction
of the FDA or other regulatory authority that our product candidates are sufficiently safe and effective for a particular indication.
We currently rely on third party clinical research organizations and other consultants to assist us in designing, administering
and assessing the results of those trials and to perform research and development with respect to product candidates. In relying
on those third parties, we are dependent upon them to timely and accurately perform their services. If third party organizations
do not accurately collect and assess the trial data, we may discontinue development of viable product candidates or continue allocating
resources to the development and marketing of product candidates that are not efficacious. ither outcome could result in significant
financial harm to us.

7. The loss of key management
and scientific personnel may hinder our ability to execute our business plan.

As a small company our success depends
on the continuing contributions of our management team and scientific consultants, and maintaining relationships with the network
of medical and academic centers in the United States and centers that conduct our clinical trials. If we are not successful in
retaining the services of these individuals, it could materially adversely affect our business prospects, including our ability
to explore partnering or development activities.

We are managed under contract by
Benu BioPharma Inc., which is comprised of three individuals (Dennis I. Goldberg, Ph.D., Phillip M. Friden, Ph.D., and Eric M.
Morrel, Ph.D.) who are our minority stockholders. Although there is a services contract with Benu BioPharma Inc., there is no direct
agreement with these individuals for continued services, and they are under no legal obligation to remain with Benu BioPharma Inc.
We can give no assurance that all or any of these individuals will continue to provide services to us. Should any of these individuals
not continue to provide services to us, it could have a material adverse effect on our ability or cost to develop AEM-28 and its
analogs.

8. Possible side effects of
our product candidates may be serious and life threatening. If one of our product candidates reveals safety or fundamental efficacy
issues in clinical trials, it could adversely impact the development path for our other current product candidates for that peptide.
We face an inherent risk of liability in the event that the use or misuse of our future products results in personal injury or
death.

The occurrence of any unacceptable
side effects during or after pre-clinical and clinical testing of our product candidates, or the perception or possibility that
our product candidates cause or could cause such side effects, could delay or prevent approval of our products and negatively
impact our business. The use of our product candidates in clinical trials may expose us to product liability claims,
which could result in financial losses. Our clinical liability insurance coverage may not be sufficient to cover claims
that may be made against us. In addition, we may not be able to maintain insurance coverage at a reasonable cost or in sufficient
amounts or scope to protect us against losses. Any claims against us, regardless of their merit, could severely harm our financial
condition, strain our management and other resources and adversely impact or eliminate the prospects for commercialization of
the product which is the subject of any such claim.

    	 		 

     

    

EXHIBIT F

FORM OF REGISTRATION RIGHTS
AGREEMENT

 

 

 

 

 

    	 		 

     

    

 

EXHIBIT G

FORM OF AMENDED AND RESTATED

STOCKHOLDERS AGREEMENTExhibit 10.2

 

Exhibit 10.2 - Series B Preferred Stock and Warrant Purchase Agreement
- Exhibit B – Form of Warrants

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF
ANY STATE REPRESENTED THEREBY, AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS
AND UNTIL REGISTERED UNDER THE ACT OR UNLESS THE CORPORATION HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION
AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.

 

 

LIPIMETIX DEVELOPMENT, INC.

 

WARRANT TO PURCHASE SERIES B-1 PREFERRED STOCK

 

	Warrant No. B-____	August 25, 2016

 

Void after August 24, 2026.

 

 

 

THIS CERTIFIES THAT, for value received, the receipt
and sufficiency of which are hereby acknowledged, ______________________, a _______________ ______________, or its registered assigns
(as the case may be, the “Holder”), is entitled, subject to the terms and conditions set forth herein, to purchase
from LipimetiX Development, Inc., a Delaware corporation (the “Company”), up to __________________ (_________)
(the “Warrant Number”) duly authorized, validly issued, fully-paid and non-assessable shares (the “Warrant
Shares”) of the Company’s Series B-1 Preferred Stock, par value $.00001 per share (the “Warrant Stock”),
subject to adjustment as provided herein, at a purchase price equal to $10.70 per share (the “Exercise Price”),
subject to adjustment as provided herein. This Warrant is issued pursuant to that certain Series B Preferred Stock and Warrant
Purchase Agreement, dated as of the date hereof, by and among the Company and the Investors party thereto (the “Purchase
Agreement”). The term “Warrant” as used herein shall mean this warrant, and any warrants delivered
in substitution or exchange therefor as provided herein. All capitalized terms used but not otherwise defined herein, including
in Section 8 hereof, shall have the meaning set forth in the Purchase Agreement.

 

The following is a statement of the rights of the
Holder and the conditions to which this Warrant is subject, and to which the Company and the Holder hereof, by the acceptance of
this Warrant, agrees:

 

1.                 
Term of Warrant. Subject to the terms and conditions set forth
herein, this Warrant shall be exercisable, in whole or in part, during the term commencing on August 25, 2016 and ending on August
24, 2026 (subject to extension as provided below, the “Exercise Period”); provided, however, that in the event
that the expiration date of this Warrant shall fall on a Saturday, Sunday or United States federally recognized holiday, the expiration
date for this Warrant shall be extended to the first business day following such Saturday, Sunday or recognized holiday.

    	 		 

     

    

2.                 
Exercise of Warrant.

(a)               
Manner of Exercise. This Warrant may be exercised by the Holder, in whole or in part, at any time and from
time to time during the Exercise Period, by (i) the surrender of this Warrant to the Company, with the Notice of Exercise attached
hereto as Annex A duly completed and executed on behalf of the Holder, at the principal office of the Company or such other
office or agency of the Company as it may designate by notice in writing to the Holder (the “Principal Office”),
and (ii) the delivery of payment to the Company of the Exercise Price for the number of Warrant Shares specified in the Notice
of Exercise in any manner specified in subsection (c) or (d) of this Section 2. Notwithstanding the foregoing, this Warrant shall
automatically be deemed to have been exercised immediately prior to, and conditioned upon, the closing of a Qualified Public Offering
or a Corporate Liquidity Transaction, on a Net Issue Exercise basis as set forth in Section 2(d) below, provided that the initial
public offering price or the Fair Market Value per Warrant Share (after giving effect to such Corporate Liquidity Transaction),
as the case may be, is greater than the Exercise Price.

(b)              
Issuance of Warrant Shares. The Warrant Shares issuable upon any exercise of this Warrant shall be deemed
to be issued to the Holder as the record holder of such Warrant Shares as of the close of business on the date on which this Warrant
shall have been surrendered and payment made for such Warrant Shares as aforesaid. As promptly as practicable thereafter, but in
any event within ten (10) days, the Company shall deliver to the Holder, at the Company’s expense, a stock certificate or
certificates for the Warrant Shares specified in the Notice of Exercise. If this Warrant shall have been exercised only in part,
the Company shall, at the time of delivery of the stock certificate or certificates, also deliver to the Holder, at the Company’s
expense, a new Warrant evidencing the right to purchase the remaining number of Warrant Shares, which new Warrant shall in all
other respects be identical to this Warrant.

(c)               
Payment of Exercise Price. Unless the Holder is exercising this Warrant pursuant to a Net Issue Exercise as
set forth in Section 2(d) below, the Exercise Price shall be payable in cash or its equivalent, payable by wire transfer of immediately
available funds to a bank account specified by the Company or by certified or bank cashiers’ check in lawful money of the
United States of America.

(d)              
Net Issue Exercise. In lieu of payment of the Exercise Price pursuant to Section 2(c), and exclusively in
connection with a Corporate Liquidity Transaction, this Warrant may be exercised by the Holder by the surrender of this Warrant
to the Company, with a duly executed Notice of Exercise marked to reflect Net Issue Exercise and specifying the number of Warrant
Shares to be purchased, during normal business hours on any business day during the Exercise Period. The Company agrees that such
Warrant Shares shall be deemed to be issued to the Holder as the record Holder of such Warrant Shares as of the close of business
on the date on which this Warrant shall have been surrendered as aforesaid (or the date of the Corporate Liquidity Transaction,
as applicable). Upon such exercise, the Holder shall be entitled to receive shares equal to the value of this Warrant (or the
portion thereof being canceled) by surrender of this Warrant to the Company together with notice of such election in which event
the Company shall issue to Holder a number of Warrant Shares computed as of the date of surrender of this Warrant to the Company
(or the date of the Corporate Liquidity Transaction, as applicable) using the following formula:

    	 	2	 

     

    

	X = 	Y(A-B)
	    A

Where X = the number of Warrant Shares to be issued to Holder
under this Section 2(d);

Y =the number of Warrant Shares
purchasable under this Warrant (as adjusted to the date of such calculation);

A =the Fair Market Value of one Warrant Share at the
date of such calculation;

B =the Exercise Price (as adjusted
to the date of such calculation).

(e)               
Joinder to Investment Agreements. Upon exercise of this Warrant, in whole or in part, the Holder shall become
a party to each of the Investment Agreements as an “Investor” thereunder (or any successor term used therein to describe
the Investors (as defined therein as of the date hereof)), and, if requested by the Company, shall execute counterpart signature
pages to such Investment Agreements, in each case if and to the extent the Holder is not already a party thereto in such capacity.

(f)               
Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. In lieu of any fractional share to which the Holder would otherwise be entitled, the Company shall make a cash
payment equal to the product of such fraction multiplied by the Fair Market Value of one Warrant Share as of the date of exercise.

3.                 
Exchange and Replacement.

(a)               
Manner of Exchange and Replacement. This Warrant is exchangeable, upon surrender of the Warrant by the Holder
to the Company at the Principal Office, for new Warrants of like tenor registered in the Holder’s name and representing in
the aggregate the right to purchase the same number of Warrant Shares purchasable hereunder, each of such new Warrants to represent
the right to purchase such number of Warrant Shares as shall be designated by the Holder at the time of surrender.

(b)              
Issuance of New Warrant. Upon receipt by the Company of (i) evidence reasonably satisfactory to it of the
loss, theft, destruction or mutilation of this Warrant and (ii) (A) in the case of loss, theft or destruction, an indemnity agreement
reasonably satisfactory in form and substance to the Company or (B) in the case of mutilation, this Warrant, the Company, at its
expense, shall execute and deliver, in lieu of this Warrant, a new Warrant of like tenor and amount.

    	 	3	 

     

    

4.                 
Rights of Stockholders. The Holder shall not be entitled to vote
or receive dividends or be deemed the holder of the Warrant Shares or any other securities of the Company that may at any time
be issuable upon the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder,
as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any other
matter submitted to the stockholders of the Company at any meeting thereof, or to give or withhold consent to any corporate action
(whether upon any recapitalization, issuance or reclassification of capital stock, change of par value, or change of stock to no
par value, consolidation, merger, conveyance or otherwise) or to receive notice of meetings, or to receive dividends or subscription
rights or otherwise until the Warrant shall have been exercised as provided herein.

5.                 
ADJUSTMENTs. The Exercise Price and the Warrant Number shall be
subject to adjustment from time to time as provided in this Section 5.

(a)               
Reclassification, etc. If the Company, at any time while this Warrant, or any portion hereof, remains outstanding
and unexpired by reclassification of securities or otherwise, shall change any of the securities as to which purchase rights under
this Warrant exist into the same or a different number of securities of any other class or classes, this Warrant shall thereafter
represent the right to acquire such number and kind of securities as would have been issuable as the result of such change with
respect to the securities that were subject to the purchase rights under this Warrant immediately prior to such reclassification
or other change and the Exercise Price therefor shall be appropriately adjusted, all subject to further adjustment as provided
in this Section 5.

(b)              
Split, Subdivision or Combination of Shares. If the Company at any time while this Warrant, or any portion
hereof, remains outstanding and unexpired shall split, subdivide or combine the securities as to which purchase rights under this
Warrant exist, into a different number of securities of the same class, then (i) in the case of a split or subdivision, the Exercise
Price for such securities shall be proportionately decreased and the Warrant Number shall be proportionately increased, and (ii)
in the case of a combination, the Exercise Price for such securities shall be proportionately increased and the Warrant Number
shall be proportionately decreased.

(c)               
Mergers or Consolidations.  If at any time there shall be a merger or consolidation of the Company with or
into another corporation, other than a Corporate Liquidity Transaction, provision shall be made so that the Warrant Holder shall
thereafter be entitled to receive upon exercise of this Warrant, during the period specified in this Warrant and upon payment of
the Exercise Price, the number of Equity Securities or other securities or property of the Company or the successor corporation
resulting from such merger or consolidation to which a holder of the Warrant Shares deliverable upon exercise of this Warrant would
have been entitled under the provisions of the agreement in such merger or consolidation if this Warrant had been exercised immediately
before such merger or consolidation occurs. In any such case, appropriate adjustment (as determined in good faith by the Board)
shall be made in the application of the provisions of this Warrant with respect to the rights and interests of the Warrant Holder
after the merger or consolidation to the end that the provisions of this Warrant (including adjustment of the Exercise Price then
in effect and the Warrant Number) shall be applicable after that event, as near as reasonably may be, in relation to any shares
or other property deliverable after that event upon exercise of this Warrant.

    	 	4	 

     

    

(d)              
Adjustment to Purchase Price and Warrant Number Upon Certain Series B Issuances. If the Company shall, at
any time or from time to time after the date hereof, issue or sell any shares of Series B-2 Preferred Stock for consideration per
share (the “Dilutive Issuance Price”) less than the Exercise Price in effect immediately prior to such issuance
or sale (the “Dilutive Issuance Price”), then immediately upon such issuance or sale the Exercise Price in effect
immediately prior to such issuance or sale shall be reduced (and in no event increased) to the Dilutive Issuance Price and the
Warrant Number shall be proportionately increased to that number determined by dividing the product of the original Warrant Number
and the original Exercise Price by the new Dilutive Issuance Price. In addition, for purposes of clarity, it is agreed that the
Warrant Shares issuable upon conversion hereof shall be entitled to the benefit of any conversion price adjustments applicable
to such Series B-1 Shares under the Restated Certificate, as amended or restated from time to time, as though such Warrant Shares
were outstanding as of the date hereof.

(e)               
Certificate as to Adjustment.

(i)                
As promptly as reasonably practicable following any adjustment of the Exercise Price, but in any event not later than 20
business days thereafter, the Company shall furnish to the Holder a certificate of an executive officer setting forth in reasonable
detail such adjustment and the facts upon which it is based and certifying the calculation thereof.

(ii)              
As promptly as reasonably practicable following the receipt by the Company of a written request by the Holder, but in any
event not later than ten Business Days thereafter, the Company shall furnish to the Holder a certificate of an executive officer
certifying the Exercise Price then in effect and the number of Warrant Shares or the amount, if any, of other shares of stock,
securities or assets then issuable upon exercise of the Warrant.

6.                 
Transfer of Warrant.

(a)               
Non-Transferability. This Warrant may not be assigned or transferred without the prior written consent of
the Company. In the event that the Company agrees to such transfer, and subject to the further restrictions on transfer set forth
in subsection (b) of this Section 6, this Warrant may be transferred by the Holder by (i) surrender of this Warrant to the Company,
with the Assignment Form attached hereto as Annex B duly completed and executed on behalf of the Holder, at the Principal
Office, and (ii) delivery of funds sufficient to pay any transfer tax arising as a result of such transfer. As promptly as practicable
thereafter, but in any event within ten (10) days, the Company shall execute and deliver, at the Company’s expense, a new
Warrant registered in the name of the assignee, and for the number of Warrant Shares, specified in the Assignment Form, which new
Warrant shall in all other respects be identical to this Warrant. If this Warrant shall have been transferred only in part, the
Company shall, at the time of delivery of the new Warrant to the assignee, also deliver to the Holder, at the Company’s expense,
a new Warrant evidencing the right to purchase the remaining number of Warrant Shares, which new Warrant shall in all other respects
be identical to this Warrant.

    	 	5	 

     

    

(b)              
Compliance with Securities Laws.

(i)                
The Holder of this Warrant, by acceptance hereof, acknowledges that, in addition to the requirements set forth above, the
transfer of this Warrant and the Warrant Shares is subject to the Holder’s compliance with the provisions of the Securities
Act and any applicable state securities laws in respect of any such transfer.

(ii)              
The certificate or certificates representing any Warrant Shares acquired upon exercise of this Warrant, and any securities
issued in respect of such Warrant Shares upon the conversion thereof or any stock split, stock dividend, recapitalization, merger,
consolidation or similar event, shall be stamped or otherwise imprinted with the following legend (unless such a legend is no longer
required under the Securities Act):

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE REPRESENTED HEREBY, AND MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS THE CORPORATION
HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.

 

7.                 
Notices.

(a)               
Events Requiring Notice to Holder.  In the event of (i) any taking by the Company of a record of the holders
of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividends or other
distribution, or any right to subscribe for, purchase or otherwise acquire any Equity Securities or other property; (ii) any capital
reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company, any Corporate Transaction
or any other merger or consolidation of the Company; or (iii) any voluntary or involuntary dissolution, liquidation, winding up
or bankruptcy of the Company (each, a “Record Event”), then and in each such Record Event, the Company shall
give the Holder a notice specifying (A) the date on which any such record is to be taken for the purpose of such dividend, distribution
or right and a description of such dividend, distribution or right; (B) the date on which any such reorganization, reclassification,
recapitalization, Corporate Transaction, merger, consolidation, dissolution, liquidation, winding up or bankruptcy is expected
to become effective; and (C) the time, if any, that is to be fixed as to when the holders of record of Common Stock, Warrant Stock
or other Equity Securities shall be entitled to exchange their shares of Common Stock, Warrant Stock or other Equity Securities
for cash, securities or other property deliverable upon such reorganization, reclassification, recapitalization, Corporate Transaction,
merger, consolidation, dissolution, liquidation, winding up or bankruptcy. In each such Record Event, the notice required by this
Section 7(a) shall be delivered at least fifteen (15) days prior to the date specified in such notice; provided, however, that
neither the failure to give such notice nor any defect therein shall affect the legality or validity of the proceedings described
in clauses (i) through (iii) hereof.

    	 	6	 

     

    

(b)              
Manner of Notice. Whenever a notice is required to be given to the Holder pursuant to this Warrant (including,
without limitation, any notice required by Section 8(a) above), such notice shall be delivered to the Holder’s address of
record as shown on the books of the Company and shall be deemed effectively given upon the earlier of actual receipt or: (i) personal
delivery to Holder, (ii) when sent, if sent by electronic mail or facsimile during normal business hours of the Holder, and if
not sent during normal business hours, then on the Holder’s next business day, (iii) five (5) days after having been sent
by registered or certified mail, return receipt requested, postage prepaid, or (iv) one (1) business day after deposit with a nationally
recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt.

8.                 
DEFINITIONS. The following definitions shall apply for all purposes of this Warrant:

(a)               
“Board” shall mean the Board of Directors of the Company.

(b)              
“Capstone Entity” means Capstone Therapeutics Corp. or any Affiliate of Capstone Therapeutics Corp.

(c)               
“Corporate Liquidity Transaction” shall mean any consolidation or merger of the Company with or into
any other corporation or other Person, other than a Capstone Entity (including any merger or consolidation in which a subsidiary
of the Company is a constituent party and the Company issues shares of its capital stock pursuant to such merger or consolidation
other than a transaction involving a Capstone Entity), other than any such consolidation or merger in which the stockholders of
the Company immediately prior to such consolidation or merger, continue to hold at least a majority of the voting power of the
surviving entity in substantially the same proportions and with substantially the same rights, preference and privileges (or, if
the surviving entity is a wholly owned subsidiary, its parent) immediately after such consolidation or merger.

(d)              
 “Equity Securities” shall mean (i) any Common Stock or other capital stock of the Company, (ii) any
security convertible, with or without consideration, into any Common Stock or other capital stock of the Company (including any
option, warrant or other right to subscribe for or purchase such a security), (iii) any security carrying any option, warrant or
other right to subscribe for or purchase any Common Stock or other capital stock of the Company, or (iv) any such option, warrant
or other right.

(e)               
“Fair Market Value” shall mean (i) if the Warrant Stock or the Common Stock or other Equity Securities
into which the Warrant Stock is convertible is traded on a securities exchange, the average of the closing prices of such securities
on such exchange over the thirty (30) day period ending one day before the exercise date; (ii) if the Warrant Stock or the Common
Stock or other Equity Securities into which the Warrant Stock is convertible is actively traded over-the-counter, the average of
the closing bid or sales prices (whichever is applicable) of such securities over the thirty (30) day period ending one day before
the exercise date; (iii) if the Warrant is being exercised in connection with a Corporate Liquidity Transaction, the consideration
to be paid for the Warrant Stock or the Common Stock or other Equity Securities into which the Warrant Stock is convertible in
connection with such Corporate Transaction (for purposes of clarification, in any case in which the price or value of the Common
Stock or other Equity Securities into which the Warrant Stock is convertible is determined pursuant to any of the foregoing clauses
(i) through (iii), such price or value shall be adjusted, and the Fair Market Value of the Warrant Stock shall be based upon, the
number of shares of Common Stock or such other Equity Securities into which one share of Warrant Stock is then convertible); and
(iv) in all other cases, as determined in good faith by the Board.

    	 	7	 

     

    

(f)               
“Investment Agreements” shall mean (i) the Amended and Restated Stockholders Agreement, dated as of August
25, 2016, by and among the Company and the Stockholders (as defined therein), as heretofore or hereafter amended, restated, supplemented
or otherwise modified from time to time; (ii) the Registration Rights Agreement, dated as of August 25, 2016, by and among the
Company and the Investors and Common Holders (as defined therein), as heretofore or hereafter amended, restated, supplemented or
otherwise modified from time to time; and (iii) the Purchase Agreement, as heretofore or hereafter amended, restated, supplemented
or otherwise modified from time to time.

(g)              
“Person” shall mean any individual, corporation, partnership, trust, limited liability company, association
or other entity.

(h)              
“Qualified Public Offering” shall mean any public offering of the Company’s securities which would
result in a mandatory conversion of the Series B-1 Shares under the Restated Certificate, as amended or restated from time to time.

(i)                
“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder.

9.                 
Miscellaneous.

(a)               
Governing Law. This Warrant and any controversy arising out of or relating to this Warrant shall be governed
by and construed in accordance with the General Corporation Law of the State of Delaware as to matters within the scope thereof,
and as to all other matters shall be governed by and construed in accordance with the internal laws of the State of Delaware, without
regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

(b)              
Prevailing Party’s Costs and Expenses. If any action at law or in equity (including arbitration) is
necessary to enforce or interpret the terms of this Warrant, the prevailing party shall be entitled to recover from the non-prevailing
party all costs and expenses, reasonable attorneys’ fees, incurred in such action, in addition to any other relief to which
such party may be entitled.

(c)               
Delays or Omissions. Except where a time period is specified, no delay on the part of any party in the exercise
of any right, power, privilege or remedy hereunder shall operate as a waiver thereof, nor shall any exercise or partial exercise
of any such right, power, privilege or remedy preclude any further exercise thereof or the exercise of any other right, power,
privilege or remedy.

    	 	8	 

     

    

(d)              
Amendment and Waiver. No provision of this Warrant may be amended, modified or waived except upon the written
consent of the party against whom such amendment, modification or waiver is to be enforced. The failure of any party to enforce
any of the provisions of this Warrant shall in no way be construed as a waiver of such provisions and shall not affect the right
of such party thereafter to enforce each and every provision of this Warrant in accordance with its terms.

(e)               
Binding Effect. This Warrant shall be binding upon and inure to the benefit of all of the parties and, to
the extent permitted by this Warrant, their successors, legal representatives and assigns.

(f)               
Severability. In the event one or more of the provisions of this Warrant should, for any reason, be held to
be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other
provisions of this Warrant, and this Warrant shall be construed as if such invalid, illegal or unenforceable provision had never
been contained herein.

(g)              
Construction. Whenever the context requires, the gender of any word used in this Warrant includes the masculine,
feminine or neuter, and the number of any word includes the singular or plural. Unless the context otherwise requires, all references
to articles and sections refer to articles and sections of this Warrant, and all references to schedules are to schedules attached
hereto, each of which is made a part hereof for all purposes.

(h)              
Headings. The headings and subheadings in this Warrant are included for convenience and identification only
and are in no way intended to describe, interpret, define or limit the scope, extent or intent of this Warrant or any provision
hereof.

 

[remainder of page intentionally left blank]

 

 

 

 

    	 	9	 

     

    

 

 

IN WITNESS WHEREOF, the Company has executed this
Warrant as of the date first above stated.

 

 

	 	LIPIMETIX DEVELOPMENT, INC.
	 	 
	 	 
	 	By: ____________________________
	 	Name:
	 	Title:

 

 

 

 

 

    	 		 

     

    

 

ANNEX A

 

NOTICE OF EXERCISE

 

To: LIPIMETIX DEVELOPMENT, INC. (the “Company”)

 

1.  The
undersigned hereby elects to purchase _______________ Warrant Shares pursuant to the terms of the attached Warrant, and tenders
herewith payment of the purchase price for such shares in full in the following manner:

 

		___	The undersigned elects to exercise the attached Warrant by means of a cash payment, and tenders
herewith payment in full for the purchase price of the shares being purchased, together with all applicable transfer taxes, if
any.

 

		___	The undersigned elects to exercise the attached Warrant by means of the surrender of the right
to purchase a number of Warrant Shares in accordance with the provisions of Section 2(d) of the Warrant, and also tenders
herewith a cash payment in the amount of all applicable transfer taxes, if any.

 

 

2.  In
exercising this Warrant, the undersigned hereby confirms and acknowledges that the Warrant Shares to be issued upon exercise are
being acquired solely for the account of the undersigned and not as a nominee for any other party, or for investment, and that
the undersigned will not offer, sell or otherwise dispose of any such Warrant Shares except under circumstances that will not result
in a violation of the registration provisions of the Securities Act of 1933, as amended, or any applicable state securities laws.

 

 

	 	HOLDER: _____________________________
	 	 
	 	 
	Date:_______________ 	By: __________________________________
	 	Name:
	 	Title:

 

    	 		 

     

    

ANNEX B

 

ASSIGNMENT FORM

 

 

FOR VALUE RECEIVED, the undersigned registered owner
of this Warrant hereby sells, assigns and transfers unto the Assignee named below all of the rights of the undersigned under the
within Warrant, with respect to the number of Warrant Shares set forth below:

 

 

	 	 	No of
	Name of Assignee	Address	Shares 

 

 

 

 

and does hereby irrevocably constitute and appoint Attorney __________________ to
make such transfer on the books of LIPIMETIX DEVELOPMENT, INC., maintained for the purpose, with full power of substitution in
the premises.

 

The Assignee represents that, by its acceptance hereof,
the Assignee acknowledges that this Warrant and the Warrant Shares to be issued upon exercise hereof are being acquired for investment
and that the Assignee will not offer, sell or otherwise dispose of this Warrant or any Warrant Shares to be issued upon exercise
hereof except under circumstances that will not result in a violation of the registration provisions of the Securities Act of 1933,
as amended, or any applicable state securities laws.

 

	Dated: _____________________________	 
	 	 
	 	HOLDER: _____________________
	 	 
	 	 
	 	By: __________________________
	 	Name:
	 	Title:
	 	 
	 	ASSIGNEE: ____________________
	 	 
	 	 
	 	By: __________________________
	 	Name:
	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00261-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00261-of-00352.parquet"}]]