Document:

Exhibit 4.3

 

SERIES C COMMON STOCK PURCHASE WARRANT

 

SORRENTO THERAPEUTICS, INC.

 

	Warrant Shares: _______	Issue Date: _______, 2019
	 	 
	 	Initial Exercise Date: _______, 2020

 

THIS SERIES C COMMON STOCK
PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after [six months of the Issue Date] (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York
City time) on _____1 (the “Termination
Date”) but not thereafter, to subscribe for and purchase from Sorrento Therapeutics, Inc., a Delaware corporation (the
“Company”), up to ______ shares of the Company’s Common Stock (as subject to adjustment hereunder, the
“Warrant Shares”); provided, however, the exercisability of this Series C Warrant shall vest ratably from time
to time in proportion to the Holder’s (or its permitted assigns) exercise in cash of the Series B Common Stock Purchase Warrant
as compared with all Series B Common Stock Purchase Warrants issued to the Holder on the Issue Date (“Vesting Schedule”).
By way of an example, if the Holder exercises in cash all of its Series B Common Stock Purchase Warrants, all Warrant Shares hereunder
may be exercised by the Holder, if the Holder exercises in cash half of the Series B Common Stock Purchase Warrant, only half of
the Warrant Shares hereunder may be exercised by the Holder until such time that the Holder exercises in cash additional Series
B Common Stock Purchase Warrants. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise
Price, as defined in Section 2(b).

 

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

 

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

 

 

1
Insert the date that is the ten (10) year anniversary of the Issue Date, provided that, if such date is not
a Trading Day, insert the immediately following Trading Day.

 

    	 	1	 

     

    

 

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

 

“Board
of Directors” means the board of directors of the Company.

 

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

 

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

 

“Common
Stock” means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

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

 

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

 

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

 

“Registration
Statement” means the Company’s registration statement on Form S-3 (File No. 333-221443).

 

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

 

“Subsidiary”
means the subsidiaries of the Company set forth on Exhibit 21.1 to the most recent Annual Report on Form 10-K of the Company and
shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof.

 

    	 	2	 

     

    

  

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

 

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

 

“Transfer
Agent” means Philadelphia Stock Transfer, Inc., the current transfer agent
of the Company, with a mailing address of 2320 Haverford Rd, Ardmore, PA 19003 and a facsimile number of (484) 416-3597, and any
successor transfer agent of the Company.

 

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

 

“Warrants”
means this Series C Warrant and other Series C Common Stock purchase warrants issued by the Company pursuant to the Registration
Statement.

 

    	 	3	 

     

    

 

Section 2.       Exercise.

 

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

 

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

 

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

 

(A) = as applicable:
(i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise
is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and
delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined
in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of
the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the
Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s
execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours”
on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular
trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of
Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant
to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;

 

    	 	4	 

     

    

  

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

 

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

 

If Warrant Shares
are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities
Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised. The Company agrees not to
take any position contrary to this Section 2(c).

 

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

 

d)            Mechanics
of Exercise.

 

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

 

    	 	5	 

     

    

  

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

 

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

 

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

 

    	 	6	 

     

    

  

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

 

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

 

    	 	7	 

     

    

  

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

 

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

 

    	 	8	 

     

    

 

Section 3.         Certain
Adjustments.

 

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

 

b)       Reserved.

 

    	 	9	 

     

    

 

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

 

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

 

    	 	10	 

     

    

 

e)       Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, exclusive license, assignment, transfer, conveyance or other disposition of all or substantially all of
its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the
outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more
related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other
Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held
by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to,
such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then,
upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder
(without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the
successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the
“Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard
to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the
Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of
a Fundamental Transaction, the Company or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable
at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction (or, if later, the date
of the public announcement of the applicable Fundamental Transaction), purchase this Warrant from the Holder by paying to the Holder
an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of this Warrant that is then-exercisable
in accordance with the Vesting Schedule on the date of the consummation of such Fundamental Transaction; provided, however,
if the Fundamental Transaction is not within the Company's control, including not approved by the Company’s Board of Directors
or the consideration is not in all stock of the Successor Entity, Holder shall only be entitled to receive from the Company or
any Successor Entity, as of the date of consummation of such Fundamental Transaction, the same type or form of consideration (and
in the same proportion), at the Black Scholes Value (as defined below) of the unexercised portion of this Warrant that is then-exercisable
in accordance with the Vesting Schedule, that is being offered and paid to the holders of Common Stock of the Company in connection
with the Fundamental Transaction, whether that consideration be in the form of cash, stock or any combination thereof, or whether
the holders of Common Stock are given the choice to receive from among alternative forms of consideration in connection with the
Fundamental Transaction. Any cash payment will be made by wire transfer of immediately available funds within five (5) Business
Days of the Holder’s election (or, if later, on the effective date of the Fundamental Transaction). “Black Scholes
Value” means the value of this Warrant based on the Black Scholes Option Pricing Model obtained from the “OV”
function on Bloomberg, L.P. (“Bloomberg”) determined as of the day of consummation of the applicable Fundamental
Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period
equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date,
(B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg
as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction, (C) the underlying
price per share used in such calculation shall be the greater of (i) the sum of the price per share being offered in cash, if any,
plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction and (ii) the greater of (x)
the last VWAP immediately prior to the public announcement of such Fundamental Transaction and (y) the last VWAP immediately prior
to the consummation of such Fundamental Transaction and (D) a remaining option time equal to the time between the date of the public
announcement of the applicable Fundamental Transaction and the Termination Date. The payment of the Black Scholes Value will be
made by wire transfer of immediately available funds within five Business Days of the Holder’s election (or, if later, on
the effective date of the Fundamental Transaction). The Company shall cause any successor entity in a Fundamental Transaction in
which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of
the Company under this Warrant in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and
substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental
Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor
Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a
corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common
Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant)
prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of
capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction
and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose
of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which
is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor
Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions
of this Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right
and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such
Successor Entity had been named as the Company herein.

 

    	 	11	 

     

    

 

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

 

g)       Notice
to Holder.

 

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

 

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

 

    	 	12	 

     

    

 

Section 4.        Transfer
of Warrant.

 

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

 

b)       New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the
Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by
the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial
issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant
thereto.

 

    	 	13	 

     

    

 

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

 

Section 5.       Miscellaneous.

 

a)       No
Rights as Stockholder Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting rights,
dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except
as expressly set forth in Section 3. Without limiting the rights of a Holder to receive Warrant Shares on a “cashless exercise,”
and to receive the cash payments contemplated pursuant to Sections 2(d)(i) and 2(d)(iv), in no event will the Company be required
to net cash settle a Warrant exercise.

 

b)       Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of
the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

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

 

d)       Authorized
Shares.

 

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

 

    	 	14	 

     

    

 

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

 

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

 

e)       Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed
by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of
conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense
of the transactions contemplated by this Warrant (whether brought against a party hereto or their respective affiliates, directors,
officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts
sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or
with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained
herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either party shall
commence an action, suit or proceeding to enforce any provisions of this Warrant, the prevailing party in such action, suit or
proceeding shall be reimbursed by the other party for their reasonable attorneys’ fees and other costs and expenses incurred
with the investigation, preparation and prosecution of such action or proceeding.

 

    	 	15	 

     

    

 

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

 

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

 

h)       Notices.
Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation,
any Notice of Exercise, shall be in writing and delivered personally, by facsimile or e-mail, or sent by a nationally recognized
overnight courier service, addressed to the Company, at Sorrento Therapeutics, Inc., 4955 Directors Place, San Diego, CA 92121,
Attention: Chief Executive Officer and Attention: General Counsel, email address: hji@sorrentotherapeutics.com and dtelman@sorrentotherapeutics.com,
or such other facsimile number, email address or address as the Company may specify for such purposes by notice to the Holders.
Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered
personally, by facsimile or e-mail, or sent by a nationally recognized overnight courier service addressed to each Holder at the
facsimile number, e-mail address or address of such Holder appearing on the books of the Company. Any notice or other communication
or deliveries hereunder shall be deemed given and effective on the earliest of (i) the time of transmission, if such notice or
communication is delivered via facsimile at the facsimile number or via e-mail at the e-mail address set forth in this Section
prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading Day after the time of transmission, if such notice or
communication is delivered via facsimile at the facsimile number or via e-mail at the e-mail address set forth in this Section
on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day
following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (iv) upon actual receipt by
the party to whom such notice is required to be given. To the extent that any notice provided hereunder constitutes, or contains,
material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with
the Commission pursuant to a Current Report on Form 8-K.

 

    	 	16	 

     

    

 

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

 

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

 

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

 

l)       Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company, on the one hand,
and the Holder, on the other hand.

 

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

 

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

 

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

 

(Signature Page Follows)

 

    	 	17	 

     

    

 

 

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

 

	 	SORRENTO
    THERAPEUTICS, INC.
	 	 	 
	 	By:	 
	 	 	Name:
    Henry Ji, Ph.D.
	 	 	Title:
    President, Chief Executive Office and Chairman of the Board

 

    	 	18	 

     

    

 

NOTICE OF EXERCISE

 

To:     
SORRENTO THERAPEUTICS, INC.

 

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

 

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

 

☐ in lawful money
of the United States; or

 

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

 

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

 

_______________________________

  

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

 

_______________________________

 

_______________________________

 

_______________________________

 

[SIGNATURE
OF HOLDER]

 

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of Investing
Entity: _________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

     

     

    

  

ASSIGNMENT FORM

 

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

 

FOR VALUE RECEIVED, the
foregoing Warrant and all rights evidenced thereby are hereby assigned to 

	 

        Name:
	
	 	(Please
    Print)
	 	 
	Address:	
	 	(Please
    Print)
	 	 
	Phone
    Number:	 
	 	 
	Email
    Address:	 
	 	 
	Dated:
    _______________ __, ______	 
	 	 
	Holder’s
    Signature: _____________________________	 
	 	 
	Holder’s
    Address: _____________________________ctrc_Ex10_1

		
			Exhibit 10.1
		

		
			 
		

		
			
		

		
			 
		

		
			June 8, 2019
		

		
			 
		

		
			Andrew Tarshis
		

		
			 
		

		
			 
		

		
			 
		

		
			Re: Offer of Employment
		

		
			 
		

		
			Dear Andy,
		

		
			We would like to take this opportunity to offer you a position with Centric Brands Holdings LLC (the “Company” or “Centric Brands”).  I am delighted to confirm the terms of your employment offer with the Company as set forth in this letter (the “Employment Offer Letter”).
		

		
			 
		

		
			1.      Title.  Your title will be Executive Vice President, General Counsel.  In such capacity, you will be reporting directly to Jason Rabin, Chief Executive Officer of Centric Brands.
		

		
			2.      Employment Term.  The term of your employment hereunder shall commence on or about June 24, 2019 (such date, the “Start Date”) and continue for a term of three (3) years or until terminated in accordance with Paragraph 8 (the “Term”).
		

		
			3.      Exclusivity.  You will devote substantially all of your business time and necessary efforts and energy to the performance of your employment responsibilities; provided, however, that you will be permitted: (i) to engage in charitable and community activities, (ii) to manage your personal investments and affairs; provided, however, that none of the foregoing, either individually or in the aggregate, shall materially interfere with the performance of your duties for the Company.  You will at all times during your employment with the Company discharge all such duties and responsibilities conscientiously and in good faith, giving to the Company the full benefit of your knowledge, expertise, skill and judgment.
		

		
			4.      Responsibilities.  You will have such responsibilities and authority as is customary for your position and consistent with those of other executives of the Company. You will be based out of the Company’s offices in New York City.  In addition, you will be required to perform customary business travel consistent with your duties and responsibilities hereunder.
		

		
			5.      Compensation.
		

		
			(a)        Base Salary.
		

		
			Your annual base salary will be $600,000, less applicable payroll deductions, which will be paid semi-monthly, in accordance with the Company’s payroll practices.
		

		
			 
		

		
			
		

		
			

		 

		

		
			 
		

		
			(b)        Bonus.
		

		
			(i)         You will also be entitled to an annual bonus with a target of sixty  percent (60%) of your Base Salary, which will be based on Company-wide and individual performance, consistent with the metrics used for other similarly situated executives (the “Performance Bonus”).  The Company-wide and individual performance objectives shall be defined as soon as practicable after the commencement of your employment.  For the fiscal year 2019 (start date – December 31, 2019), you will receive a prorated bonus based on your Start Date with the Company.
		

		
			(ii)        When bonuses are typically paid to other senior executives of the Company in the following year, you must be an active employee in good standing of the Company on the date bonus payments are made to be eligible to receive such bonus, provided that if, (X) Prior to the end of the Company’s fiscal year, your employment is terminated under Paragraph 8(c) or 8(d), you will be entitled to receive the full bonus, prorated for the number of days in the Company’s fiscal year during which you were employed or (Y) If your employment is terminated under Paragraph 8(c) or 8 (d) following the Company’s fiscal year but prior to the date bonus payments are made, you will be entitled to receive the full bonus.  If you resign or leave the Company, without Good Reason, before the payment date, you will not be entitled to such bonus payments. Bonuses are subject to applicable payroll deductions.
		

		
			(c)        Stock Plan.
		

		
			(i)         You shall also receive a grant of a restricted stock unit award (the “Restricted Stock Unit Award” or “RSU,” as the case may be), which shall be substantially identical to the form of restricted stock unit agreement under the Company’s 2016 Stock Incentive Compensation Plan (the “2016 Plan”).  The grant shall be 250,000 shares of common stock, which shall vest according to the following schedule so long as you remain actively engaged as an employee of the Company through the applicable vesting dates (or as otherwise provided for herein):
		

		
			 
		

			
					
						First Anniversary of Start Date

					
					
						83,333 shares

				
	
					
						Second Anniversary of Start Date

					
					
						83,333 shares

				
	
					
						Third Anniversary of Start Date

					
					
						83,334 shares

				

		
			 
		

		
			Such award is subject to the approval of the Compensation Committee of the Board of Directors of the parent company, Centric Brands Inc., on your start date and shall be issued as soon as practicable.
		

		
			 
		

		
			Thereafter, we expect that you will be eligible for additional Restricted Stock Unit Award Agreement grants (or stock option or other equity incentive type grants) at the same time the Company awards grants to other similarly situated senior executives.
		

		
			 
		

		
			
		

		
			 
		

		
			(ii)        The Restricted Stock Unit Award shall be granted pursuant to Restricted Stock Unit Award agreements to be entered into between the Company and you on or after your Start Date, which agreement shall contain customary terms consistent with the terms of this Employment Offer Letter and similar to the 2016 Plan;  provided,  further, that to the extent there is any inconsistency between the Restricted Stock Unit Agreement and this Employment Offer Letter, this Employment Offer Letter shall control and govern, provided, however, that the Restricted Stock Unit Agreement shall govern with respect to the vesting of the RSUs upon a “change of control” (as defined therein).
		

		
			 
		

		
			6.      Benefits.
		

		
			(a)        As an employee of Centric Brands, you will be eligible to participate in the Company’s benefit programs, subject to the terms of such programs set forth in applicable Company policy and/or benefit plan documents.  The benefits include medical, dental, vision, basic life, and disability. Any benefits coverage for which you are eligible and in which you enroll will go into effect on the first day of the month following sixty (60) days of service.  The Company will reimburse you for the cost of obtaining COBRA coverage during the period prior to the enrollment start date. You will be eligible to participate in the Company’s 401(k) plan immediately, and after one (1) year of employment, you will be eligible to receive the Company’s 401(k) match. You will be reimbursed for all reasonable and appropriate travel, entertainment and other business expenses incurred in connection with the performance of your duties hereunder, all in accordance with Company policy for senior executives. In addition, you will receive a monthly travel allowance of $1,500.00.
		

		
			7.      Paid Time Off (PTO) and Sick Time.  You will be entitled to twenty (20) PTO days on an annual basis, pro-rated for calendar year 2019. In addition, you will be entitled to eight (8) sick days annually, in accordance with the Company’s policy.
		

		
			8.      Termination of Employment.  Your employment may be terminated upon the following events:
		

		
			(a)        Death or Disability.  Your employment will terminate automatically upon your death, and the Company will have the right to terminate your employment upon thirty (30) days’ prior written notice in the event of your Permanent Disability.  For purposes of this Employment Offer Letter, “Permanent Disability” means your inability, because of a disability that cannot be reasonably accommodated, to substantially perform your principal functions and duties to the Company as determined by an independent physician acceptable to you and to the Board of Directors of the Company (the “Board”), because of accident, or physical or mental condition, disability or mental illness, which lasts for a period of one hundred and twenty (120) consecutive days or a total of one hundred and eighty (180) days in any consecutive twelve (12) month period.
		

		
			(b)        Termination for Cause.  As used herein, “Cause” means the occurrence of any one or more of the following events:
		

		
			(i)         fraud, embezzlement or misappropriation by you relating to the Company, its subsidiaries, any of their affiliates or any of their respective funds, properties or other assets;
		

		
			
		

		
			 
		

		
			(ii)        you are convicted of, or plead no contest to, a felony crime or a misdemeanor (other than vehicular related acts) involving moral turpitude;
		

		
			(iii)       repeated and willful failure by you to substantially perform your lawful and material employment duties that is not cured to the satisfaction of the CEO of the Company within ten (10) days following written notice of such repeated and willful breach stating, with specificity, the nature of such failure and the reasonably designated acts to be taken to cure such breach;
		

		
			(iv)       knowingly acting in an improper manner or making statements, which actions or statements the CEO and the Board of Centric Brands reasonably determine to be materially detrimental or damaging to the Company’s reputation, good will or relation with its customers, suppliers or employees;
		

		
			(v)        willful violation of a specific lawful written directive of your supervisor(s) (not inconsistent with the terms and conditions hereof) concerning one or more matters of a material nature for the Company and its operations, and such violation continues for more than ten (10) days following written notice thereof specifying such violation in reasonable detail; or
		

		
			(vi)       you breach any of your non-solicit covenants set forth in Paragraph 10 of this Employment Offer Letter or the Confidentiality Agreement referred to in Paragraph 12, and such breach continues for more than ten (10) days following written notice thereof specifying such breach.
		

		
			The Company has the right to terminate your employment immediately upon written notice to you with respect to Paragraphs 8(b)(i), (ii) and (iv), for Cause.  With respect to Paragraph 8(b)(iii), (v), or (vi), such termination shall be effective ten (10) days following notice of termination unless you have cured such breach to the satisfaction of the Company, as determined by the CEO of Centric Brands.
		

		
			 
		

		
			(c)        Termination without Cause.  The Company may terminate your employment without Cause upon thirty (30) days’ prior written notice.  In exchange, you agree to provide the Company with thirty (30) days’ prior written notice of any voluntary termination of your employment.
		

		
			(d)        Termination for Good Reason.  You may terminate your employment under this Employment Offer Letter for Good Reason after the occurrence of any of the Good Reason events set forth in the following sentence. For purposes of this Employment Offer Letter, “Good Reason” shall mean the occurrence of any of the following events without your prior written consent:
		

		
			(i)         a material diminution of your authorities, duties or responsibilities or a change such that the you do not report to the Chief Executive Officer;
		

		
			(ii)        a reduction in the Base Salary or the target annual bonus opportunity;
		

		
			(iii)       your involuntary re-location to an office within 50 miles of New York City;
		

		
			(iv)       a reduction of your title; or
		

		
			(v)        the failure by the Company to timely comply with its material obligations and agreements contained in this Employment Offer Letter, including granting the RSUs.
		

		
			
		

		
			 
		

		
			provided, however, that, within ninety (90) days of any such events having occurred, you shall have provided the Company with written notice that such events have occurred and afforded the Company thirty (30) days to cure and if the Company does not cure such events to the your reasonable satisfaction then you may terminate your employment within thirty (30) days following the expiration of such cure period.
		

		
			9.      Effect of Termination.
		

		
			(a)        In the event your employment is terminated pursuant to Paragraph 8(a) (death or Permanent Disability) or Paragraph 8(b) (for Cause), or voluntarily by you, the Company will have no further obligation to you under this Employment Offer Letter (except as hereinafter provided) except to pay to you, your estate or your designated beneficiary, your base salary through the date of termination, any unpaid bonus for periods prior to termination, any PTO accrued through the date of termination, any reimbursable expenses incurred through the date of termination, and any benefits to which you may be entitled upon termination pursuant to the plans and programs in which you participate or as may be required by applicable law.  Any such amounts will be paid on your final day of employment.
		

		
			(b)        In the event the Company terminates your employment without Cause pursuant to Paragraph 8(c) or you terminate your employment for Good Reason pursuant to Paragraph 8(d) the Company shall pay to you (i) in consideration for the non-solicit provisions of Paragraph 10 (the “Non-Solicit Covenants”), an amount equal to twelve (12) months of your base salary if your employment is terminated on or after the day following your Start Date (the “Non-Solicit Payment”), (ii) any PTO accrued through the date of termination, and (iii) any reimbursable expenses incurred through the date of termination, and any benefits to which you may be entitled upon termination pursuant to the plans and programs in which you participate or as may be required by applicable law and (iv) an annual bonus for the calendar year in which the termination occurs.  In addition, the Company will reimburse you for the cost of COBRA for a period of twelve (12) months.
		

		
			(c)        In the event the Company terminates your employment without Cause pursuant to Paragraph 8(c),  you terminate your employment for Good Reason under 8(d),  or your employment is terminated under Paragraph 8(a), any unvested portion of the RSUs shall accelerate and become fully vested on the Date of Termination and the shares covered by the RSUs shall be distributed to you, your estate or your designated beneficiary on the date that is thirty (30) days following the Date of Termination (subject to any securities law restrictions).
		

		
			(d)        The amounts set forth in clause (b) shall be paid in in accordance with normal payroll practices at the time of termination less any applicable withholdings and subject to you executing and delivering the Company’s customary separation and release agreement.
		

		
			10.    Non-Solicitation.
		

		
			(a)        You and any person, firm, corporation or other entity that, directly or indirectly, is controlled by you or is under common control with you will not, without the prior written consent of the Company, directly or indirectly, or through any affiliate or subsidiary (other than in connection with the performance of your obligations under this Employment Offer Letter):
		

		
			(i)         hire or solicit the employment of any employee of the Company, its subsidiaries, its affiliates or encourage any such employee to leave
		

		
			
		

		
			 
		

		
			employment with the Company, its subsidiaries or any of its affiliates, or knowingly participate in any discussion with any employee of Company, its subsidiaries or any of its affiliates regarding the possibility of his or her employment by any person or entity other than the Company or its affiliates or subsidiaries;
		

		
			(ii)        approach or solicit any customer or supplier of the Company, potential customer or supplier of the Company, or maturing business opportunity of the Company, or service or deal with any such customer or supplier or maturing business opportunity in order to attempt to direct any such customer or supplier or maturing business opportunity away from the Company;
		

		
			(iii)       solicit or divert any business away from the Company;
		

		
			(iv)       induce or persuade any customer or supplier, potential customer or supplier, agent or other person under contract or otherwise associated with the Company to reduce or alter any such association or business relationship;
		

		
			(v)        otherwise interfere or attempt to interfere with any of the contractual, business or economic relationships of the Company; or
		

		
			(vi)       negotiate for or enter into any agreement (whether written or oral), or otherwise cause or authorize any individual or entity, to take any of the actions prohibited by clauses (i) through (v) above.
		

		
			(b)        If you breach, or threaten to commit a breach of, any of the provisions of this Paragraph 10, the Company shall have the following rights and remedies, each of which rights and remedies shall be independent of the others and severally enforceable, and each of which is in addition to, and not in lieu of, any other rights and remedies available to the Company under law or in equity:
		

		
			(i)         the right and remedy to have such provision specifically enforced by any court having jurisdiction, it being acknowledged and agreed that any such breach or threatened breach may cause irreparable injury to the Company and that money damages may not provide an adequate remedy to the Company; and
		

		
			(ii)        the right and remedy to recover from you all direct monetary damages suffered by the Company as the result of any acts or omissions constituting a breach of this Paragraph 10.
		

		
			(c)        You acknowledge that the restrictions contained in this Paragraph 10 are reasonable and necessary to protect the legitimate interests of the Company and constitute a material inducement to the Company to execute this Employment Offer Letter for employment.  In the event that any covenant contained in this Paragraph 10 should ever be adjudicated to exceed the time, geographic, product or service or other limitations permitted by applicable law in any jurisdiction, then any court is expressly empowered to reform such covenant, and such covenant shall be deemed reformed, in such jurisdiction to the maximum time, geographic, product or service or other limitations permitted by applicable law.  The covenants contained in this Paragraph 10 and each provision hereof are severable and distinct covenants and provisions.  The invalidity or unenforceability of any such covenant or provision as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or
		

		
			
		

		
			 
		

		
			unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction.
		

		
			11.       Intellectual Property Ownership; Work-For-Hire.
		

		
			(a)        Work Product.  All work product conceived, created, produced or prepared by you, at the request or under the direction of the Company or through use of the Company’s resources, records, equipment or personnel, in connection with performance of your employment duties, shall be deemed works made for hire that are owned by Company (the “Works”). Works shall include without limitation, all designs, drawings, text, prototypes, patterns, images, photographs, font, stylizations, concepts, depictions and all copyrights and other intellectual property and proprietary rights therein and thereto, whether or not fixed in a tangible medium of expression.  For avoidance of doubt, you do not retain any ownership rights to any of the Works and are not permitted, at any time, whether it be during the Term or after termination, to utilize, rely upon, create derivative works from, license or exploit the Works, in whole or in part, on your own behalf or on behalf of others, as all rights in and thereto vest exclusively in the Company.
		

		
			(b)        Works Made for Hire; Assignment.  You agree that the Works made by you on behalf of the Company were or will be produced or prepared within the scope of your employment duties and are works-made-for-hire owned by the Company under the Copyright Act of 1976.  If any of the Works or any portion thereof are held not to be “works made for hire” (or if ownership of all rights therein did not or do not vest exclusively in the Company), you irrevocably assigns, releases and conveys to the Company in perpetuity all of your right, title and interest, as applicable, in and to the Works, as well as all intellectual property rights embodied therein or pertaining thereto and the complete right to exploit or otherwise use the Works and all auxiliary, subsidiary and moral rights in any form, medium, expression or technology now known or hereafter developed in all jurisdictions worldwide and all right to recover for past or future infringements thereof.
		

		
			(c)        Inventions.  To the extent that the materials include materials subject to patent, trade secret, or other proprietary right protection, you hereby assign to the Company, its successors and assigns, all right, title and interest in and to such materials.
		

		
			(d)        Further Assurances; Assignment. Upon the request of the Company, you  agree to perform such acts requested to transfer, perfect and defend the Company’s right, title and interest in and to the Works and materials, including by assisting the Company in every proper way (at the Company’s expense), to obtain for the Company’s own benefit protection for any or all of the Works, including copyright and patent rights in the United States and any and all foreign countries, and, if applicable, by executing and delivering to the Company any and all applications, assignments and other instruments deemed necessary by the Company in order to apply for and obtain letters patent or copyright registrations in the United States or foreign countries.
		

		
			(e)        Waiver of Moral Rights.  You hereby irrevocably waive in perpetuity all common law rights including any and all moral rights that you may possess or might in the future possess in and to the Works and shall perform such further acts or execute any requested documents as may be requested to evidence such waiver.
		

		
			12.       Confidentiality.  Enclosed is a Confidentiality Agreement and a Notice and Acknowledgment of Pay Rate which we ask you to review and sign along with this letter. You
		

		
			
		

		
			 
		

		
			must sign the Confidentiality Agreement and Notice in order to commence employment with the Company.
		

		
			13.       Assignment.  This Employment Offer Letter is personal in nature and the rights set forth in it are personal to you and may not be in whole or in part assigned, transferred, conveyed, pledged or sublicensed, or otherwise inure to the benefits of any successor assignee.  Any assignment or purported assignment in contravention of this provision shall be null and void.  The Company may assign this Employment Offer Letter, in whole or in part, to its parent, subsidiary or affiliated company without your consent; provided, however, that such assignment will not release the Company of its obligations hereunder, all of which will remain in full force and effect.
		

		
			14.       Waiver; No Cross-Default.  No course of dealing and no delay in exercising any right, power or remedy under or relating to this Employment Offer Letter shall operate as a waiver thereof or otherwise prejudice our or your respective rights, powers and remedies.  The failure to object to any breach of this Employment Offer Letter, or to enforce at any time or for any period any provision of this Employment Offer Letter, shall not constitute a waiver of such provision of our or your respective rights or remedies, or a consent to the modification of this Employment Offer Letter.  No single or partial exercise of any rights, powers or remedies under or relating to this Employment Offer Letter shall preclude any other or further exercise thereof or the exercise of any other right, power or remedy.
		

		
			15.       Entire Agreement.  This Employment Offer Letter embodies the entire understanding and supersedes all other oral or written agreements or understandings, between us regarding your employment with the Company.  No amendment, change, alteration or modification hereof may be made except in writing signed by both you and the CEO of the Company.
		

		
			16.       Governing Law; Choice of Forum.  This Employment Offer Letter and the rights and obligations of the parties hereunder shall be governed by and construed in accordance with the internal laws of the State of New York.  Any claim or controversy between us arising out of or related to this Employment Offer Letter or to your employment shall be filed only in a court situated in New York County, City of New York, State of New York, and you and the Company each hereby consents to the jurisdiction of such courts for such purposes.
		

		
			17.       WAIVER OF JURY TRIAL.  EACH OF THE PARTIES TO THIS EMPLOYMENT OFFER LETTER HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, COUNTERCLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (A) ARISING UNDER THIS EMPLOYMENT OFFER LETTER OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS EMPLOYMENT OFFER LETTER OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE.  EACH OF THE PARTIES TO THIS EMPLOYMENT OFFER LETTER HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, COUNTERCLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS EMPLOYMENT OFFER LETTER MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS EMPLOYMENT OFFER LETTER WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.
		

		
			18.       Acknowledgement.  By signing this Employment Offer Letter below and accepting our offer of employment, you are representing that you acknowledge and are aware of no obligations, contractual or otherwise, relating to a prior employer or any other entity which would prevent or prohibit you from performing fully your job responsibilities at the Company now or in the future.  The Company will not be liable for any potential breaches of contract and other commitments arising from your previous employment. This job offer is contingent upon satisfactory review and completion of our customary candidate background,  credit and reference checks. You will be
		

		
			
		

		
			 
		

		
			required to sign  a separate authorization form granting us the right to conduct such background,  credit checks and reference checks.
		

		
			Sincerely,
		

		
			 
		

			
					
						Centric Brands Holdings LLC

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Karen Coe

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						Karen Coe

					
					
						 

				
	
					
						 

					
					
						Title: 

					
					
						Chief Human Resources Officer

					
					
						 

				

		
			 
		

		
			
		

		
			 
		

		
			I, Andrew Tarshis, reviewed and understand the contents of this Employment Offer Letter and accept and agree with the above offer of my employment as stated:
		

		
			 
		

		
			Andrew R. Tarshis
		

		
			Print Name
		

		
			 
		

		
			/s/ Andrew R. Tarshis
		

		
			Signature
		

		
			 
		

		
			June 10, 2019
		

		
			Date
		

		
			 
		

		
			[Signature Page to Employment Offer Letter]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}]]