Document:

EXHIBIT
4.1

 

THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”)
OR ANY APPLICABLE STATE SECURITIES LAW, AND MAY NOT BE OFFERED, ASSIGNED, TRANSFERRED, PLEDGED, HYPOTHECATED, OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, AND SUCH REGISTRATION OR QUALIFICATION AS MAY BE NECESSARY
UNDER THE SECURITIES LAWS OF ANY STATE, OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION OR QUALIFICATION
IS NOT REQUIRED.

 

PROLUNG,
INC.

 

 

 

WARRANT
TO PURCHASE COMMON STOCK

 

 

 

 

Issue
Date: ___________

 

1. Grant.
For value received, ProLung, Inc., a Delaware corporation (the “Corporation”), hereby grants to [______________,
a [_____________] (the “Holder”), the right to purchase up to a maximum of [___________] shares (the
“Warrant Shares”) of the Corporation’s Common Stock, $0.001 par value per share (the “Common
Stock”), subject to adjustment from time to time as set forth herein, at the exercise price per Warrant Share set forth
in Section 3 below.

 

2.
Exercise Period. The right to exercise this Warrant, in whole or in part, begins on the Issue Date. The right to exercise
this Warrant expires on the earlier to occur of (a) [1], and (b) the date provided
in Section 4(b) in connection with a Change of Control Transaction, as defined in Section 4(b), (such earlier date, the “Expiration
Date”).

 

3. Exercise
Price. The exercise price (“Exercise Price”) of this Warrant is $7.28 per Warrant Share, subject to
adjustment from time to time as set forth herein.

 

4.
Adjustments.

 

(a) Adjustment
for Split, Stock Dividend or Consolidation.

 

(i)
If the Corporation (A) pays a dividend or makes a distribution on its Common Stock in shares of its Common Stock, (B) subdivides
or reclassifies its outstanding shares of Common Stock into a greater number of shares, or (C) combines or reclassifies its outstanding
shares of Common Stock into a smaller number of shares (each, an “Adjustment Event”), the number of Warrant Shares
issuable hereunder immediately prior to such Adjustment Event shall be proportionately adjusted so that the Holder will receive,
upon exercise, the aggregate number and kind of shares of capital stock of the Corporation which it would have owned immediately
following such Adjustment Event if the Holder had exercised this Warrant immediately prior to such Adjustment Event. The Exercise
Price shall also be proportionately adjusted such that the aggregate Exercise Price for all the Warrant Shares issuable hereunder
remains unchanged following such Adjustment Event.

 

 

1
5 years from issue date. 

 

    	 

    	 

    

 

(ii)
The adjustment shall become effective immediately after the record date in the case of a dividend or distribution and immediately
after the effective date in the case of a subdivision, combination or reclassification.

 

(iii)
The adjustment shall be made successively whenever any Adjustment Event occurs.

 

(b) Change
of Control. If there is a Change of Control Transaction, the Corporation shall provide the Holder with not less than ten
(10) days advanced written notice of the expected closing of the Change of Control Transaction. The Holder may exercise this
Warrant at any time prior to the closing of such Change of Control Transaction, and may make any such exercise contingent
upon the actual occurrence of such Change of Control Transaction. The right to exercise this Warrant shall expire upon the
closing of such Change of Control Transaction. As used herein, “Change of Control Transaction” means one or more
transactions resulting in (i) the liquidation, dissolution or winding up of the Corporation; (ii) the sale, transfer or
exclusive license of all or substantially all of the assets of the Corporation; (iii) a merger or consolidation of the
Corporation with another entity where the owners of the capital stock of the Corporation prior to such merger or
consolidation do not own, directly or indirectly, more than 50% of the capital stock of the surviving corporation; or (iv)
any person or entity, or a group of persons or entities in a single or related series of transactions, becoming the owner of
more than 50% of the then outstanding capital stock of the Corporation.

 

(c) Adjustment
for Reorganization. If the Corporation consolidates or merges with or into another person or entity (and such event is
not a Change of Control Transaction) or effects any recapitalization or reorganization (any such action, a
“Reorganization”), there shall thereafter be deliverable, upon exercise of this Warrant and payment of a
proportionately adjusted Exercise Price (in lieu of the number of Warrant Shares theretofore deliverable) the number of
shares of stock or other securities or property to which a holder of the number of shares of Common Stock that would
otherwise have been deliverable upon exercise of this Warrant would have been entitled upon such Reorganization if such
Warrant had been exercised in full immediately prior to such Reorganization.

 

5. Availability
of Shares. The Corporation will reserve and keep available for issuance and delivery upon the exercise of this Warrant
such number of its authorized but unissued shares of Common Stock or other securities of the Corporation as will be
sufficient to permit the exercise in full of this Warrant. Upon issuance, each of the Warrant Shares will be validly issued,
fully paid and nonassessable, free and clear of all liens, security interests, charges and other encumbrances or restrictions
on sale and free and clear of all preemptive rights.

 

6. Listing;
Stock Issuance. The Corporation shall secure and maintain the listing of the Warrant Shares upon each securities
exchange or over-the-counter market upon which securities of the same class or series issued by the Corporation are listed,
if any. Upon exercise of this Warrant, the Corporation will use its best efforts to cause stock certificates representing the
shares of Common Stock purchased pursuant to the exercise to be issued in the names of Holder or, subject to compliance with
the Act the Holder’s nominees or assignees, as appropriate at the time of such exercise.

 

7. No
Voting Rights; Limitations of Liability. Prior to exercise, this Warrant will not entitle the Holder to any voting
rights or other rights as a stockholder of the Corporation not granted herein. No provision of this Warrant, in the absence
of affirmative action by the Holder to exercise this Warrant, and no enumeration in this Warrant of the rights or privileges
of the Holder, will give rise to any liability of such Holder for the Exercise Price.

 

    	 

    	 

    

 

8. Exercise
Procedure.

 

8.1 Exercise
Form. In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed and completed
and delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares being
purchased payable in cash by wire transfer of immediately available funds to an account designated by the Company or by
certified check or official bank check. If the subscription rights represented hereby shall not be exercised at or before
5:00 p.m., Eastern time, on the Expiration Date, this Purchase Warrant shall become and be void without further force or
effect, and all rights represented hereby shall cease and expire.

 

8.2 Cashless
Exercise. In lieu of exercising this Purchase Warrant by payment of cash or check payable to the order of the Company
pursuant to Section 8.1 above, Holder may elect to receive the number of Shares equal to the value of this Purchase Warrant
(or the portion thereof being exercised), by surrender of this Purchase Warrant to the Company, together with the exercise
form attached hereto, in which event the Company will issue to Holder Shares in accordance with the following
formula:

 

	 	X	=	Y(A-B)	 
	 	 	 	A	 

 

	 	Where,	 	 	 
	 	 	X	=	The
    number of Shares to be issued to Holder;
	 	 	Y	=	The
    number of Shares for which the Purchase Warrant is being exercised;
	 	 	A	=	The
    fair market value of one Share; and
	 	 	B	=	The
    Exercise Price.

 

For
purposes of this Section 8.2, the fair market value of a Share is defined as follows:

 

	 	(i)	if
    the Shares are traded on a securities exchange, the value shall be deemed to be the closing price on such exchange on the
    trading day immediately prior to the exercise form being submitted in connection with the exercise of the Purchase Warrant;
    or
	 	 	 
	 	(ii)	if
    the Shares are actively traded over-the-counter, the value shall be deemed to be the closing bid on the trading day immediately
    prior to the exercise form being submitted in connection with the exercise of the Purchase Warrant; if there is no active
    public market in the United States, the value shall be the fair market value thereof, as determined in good faith by the Company’s
    Board of Directors.

 

9. Securities
Laws. Neither the sale of this Warrant nor the issuance of any of the Warrant Shares upon exercise of this Warrant have
been registered under the Act or under the securities laws of any state. The issuance of the Warrant Shares upon exercise of
this Warrant shall be subject to compliance with all applicable Federal and state securities laws. Until the Warrant Shares
have been registered under the Act and registered and qualified under the securities laws of any state in question, the
Corporation shall cause each certificate evidencing any Warrant Shares to bear the following legend and such other legends as
may be required by applicable law:

 

    	 

    	 

    

 

The
shares evidenced by this certificate have not been registered under the Securities Act of 1933, as amended (the “ACT”),
or under the securities laws of any state. The shares may not be offered, sold, assigned, transferred, pledged or hypothecated
or otherwise disposed of in the absence of an effective registration statement under the Act, and such registration or qualification
as may be necessary under the securities laws of any state, or an opinion of counsel satisfactory to the CORPORATION
that such registration or qualification is not required.

 

10. Transfer.
The Corporation will register this Warrant on its books and keep such books at its offices. Neither this Warrant nor any of
the Warrant Shares (when issued) may be sold, assigned, transferred, pledged or hypothecated or otherwise disposed of except
as permitted by (i) any effective registration statement under the Act and by the securities laws of any state in question,
or (ii) with an opinion of counsel reasonably satisfactory to the Corporation stating that such registration under the Act
and registration or qualification under the securities laws of any state is not required.

 

11. Replacement
of Warrant. If the Holder provides evidence that this Warrant or any certificate or certificates representing the
Warrant Shares have been lost, stolen, destroyed or mutilated, the Corporation (at the request and expense of the Holder)
will issue a replacement warrant upon reasonably satisfactory indemnification by the Holder.

 

12. Governing
Law. The internal laws of the State of Delaware (other than its conflicts of law rules) govern this Warrant.

 

IN
WITNESS WHEREOF, the Corporation has caused this Warrant to be duly executed and delivered on its behalf by the officer whose
signature appears below, as of the date first written above.

 

	 	PROLUNG,
    INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	           

 

    	 

    	 

    

 

Exhibit
A

 

IRREVOCABLE
SUBSCRIPTION

 

	To:	 	 

 

The
undersigned hereby elects to exercise its right under the attached Warrant by purchasing ____ shares of the Common Stock of ProLung,
Inc., a Delaware corporation, and hereby irrevocably subscribes to such issue. The certificates for such shares shall be issued
in the name of:

 

	 	 	 
	 	(Name)	 
	 	 	 
	 	(Address)	 
	 	 	 
	 	(Taxpayer
    Number)	 
	 	 	 
	 	and
    delivered to:	 
	 	 	 
	 	(Name)	 
	 	 	 
	 	(Address)	 

 

The
aggregate Exercise Price of $______ per share is enclosed.

 

	 	Date:	 	 
	 	 	 	 
	 	Signed:	 	 
	 	 	(Name
    of Holder, Please Print)	 
	 	 	 	 
	 	 		 
	 	 	(Address)	 
	 	 	 	 
	 	 		 
	 	 	(Signature)EXHIBIT
10.3

 

February
22, 2018

 

Neil
Berkley

5829
Gablewood Way

San
Diego, CA 92130

 

Via
Email to: nberkley@acadia-pharm.com

 

RE:
ProLung, Inc., BOARD OF DIRECTORS (“Board”)

 

Dear
Neil,

 

On
behalf of the Management and the Board of ProLung, Inc. (“Company”), effective 22 February 2018, I extend this offer
to you to serve as a Director and member of the Board of Directors of the Company. Both the Company and the Board believe that
your involvement will be beneficial and we anticipate that your service with us on the Board will be positive for the shareholders
of the Company, to management and to your colleagues on the Board.

 

The
Board of Directors sets high standards for the Company’s employees, officers and directors. Implicit in this philosophy
is the importance of sound corporate governance. It is the duty of the Board of Directors to serve as a prudent fiduciary for
shareholders and to oversee the management of the Company’s business.

 

This
offer is contingent upon your written acceptance of this letter, the related terms and your election at the next regularly scheduled
meeting of the Board. As presently constitute, the Board of Directors consists of the following:

 

As
Chairman & Director

Todd
M. Morgan (since 2014)

 

As
Directors

Steven
C. Eror (since 2006)

Robert
W. Raybould (since 2012)

John
C. Ruckdeschel, MD (since 2016)

Scott
Nixon, CPA (Since 2016)

Robin
L. Smith, MD (since 2017)

 

ProLung,
Inc. | 757 E. South Temple, Suite 150, Salt Lake City, UT 84102 | +1.801.736.0729 | www.prolunginc.com

 

    	 

    	 

    

 

 

 

The
above directors are currently serving, plan to serve (to the best of my knowledge) and your arrival does not displace any other
participants.

 

	Term.	You
    agree to serve for two-years, however you may resign at any time for any reason whatsoever. Should the company begin reporting
    as required by a public filing, the terms of this agreement may need to be modified in connection with regulatory requirements.
    During the term, you will need to keep the Company generally aware of how you may be contacted.
	 	 
	Meetings.	You
    agree to process the business of the Board (such as consents in lieu of meeting) on a timely basis, to attend meetings (typically
    held at the Company offices at 757 East South Temple, Salt Lake City, Utah 84102), participate in telephone meetings of the
    Board of Directors and to review briefing materials sent to you in preparation of Board discussion
	 	 
	 	Typically,
    the Board will be offered 14 days’ notices of a physical meeting. In the past, the Board has endeavored to meet in person
    at least once per quarter, however physical and telephone conference meetings are dictated by the business to be considered.
	 	 
	Interest.	At
    all times as a board member, you agree to act on behalf of all of the shareholders of the Company. On any issue for which
    you are uncomfortable (for whatever reason) or you have a conflict of interest you are invited to recuse yourself from voting
    and/or participation in the related briefing or discussion.
	 	 
	Assignment.	You
    have been assigned to the Science and Technology Committee. You may be given or accept assignments as a member of the Board
    from time-to-time in the capacity of a Board member.
	 	 
	Compensation.	For
    your service on the Board over the Term, you will receive quarterly payments of $12,000 with the first payment scheduled for
    March 31, 2018. In addition, you will be granted 1,250 stock options with 625 options to vest on March 31, 2018 and the remaining
    625 options vesting on June 30, 2018. These options have an exercise price of $8.00 per share.
	 	 
	 	Any
    consulting you do for the management of the Company would be between you and the Company and outside the scope of this Offer.
    Should you terminate before the end of your Term, you may be asked, and agree to prorate the shares on time served.

 

ProLung,
Inc. | 757 E. South Temple, Suite 150, Salt Lake City, UT 84102 | +1.801.736.0729 | www.prolunginc.com

 

    	 

    	 

    

 

 

 

	Expenses.	Ordinary
    out-of-pocket expenses will be reimbursed by the Company for travel to meetings of the Board, or other expenses incurred stemming
    from your involvement on the Board.
	 	 
	Biographical.	From
    time to time, the Company needs to make the composition of its Board known to investors, shareholders, employee and public.
    You agree to provide (and to allow the Company to use) a brief biographical paragraph for this purpose.

 

Neil,
I am pleased that you are interested to join with us. By signing below, I will organize your involvement in the next meeting of
the Board. Please accept this and email a scan back to me or send facsimile to 801.204-9633 (private fax).

 

	Sincerely,	 
	 	 
	/s/
    Steven C. Eror	 
	Steven
    C. Eror	 
	President,
    CEO & Director	 
	 	 
	Accepted
    by:	 
	 	 
	/s/
    Neil Berkley	 
	Neil
    Berkley	 
	Date:	 

 

ProLung,
Inc. | 757 E. South Temple, Suite 150, Salt Lake City, UT 84102 | +1.801.736.0729 | www.prolunginc.com

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