Document:

SUBSCRIPTION AGREEMENT

 

 

Matinas BioPharma Holdings, Inc.

 

Matinas BioPharma Inc.

915 Klosterman Road East

Tarpon Springs, FL 346894

 

Ladies and Gentlemen:

 

1.
Subscription. The undersigned (the “Purchaser”), intending to be legally bound, hereby irrevocably agrees
to purchase from Matinas BioPharma Holdings, Inc., a Delaware corporation (the “Company”), the number of units (the
“Units”) set forth on the signature page hereof at a purchase price of $250,000 per Unit. Each Unit consists of (i)
250,000 shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”) and (ii) 125,000
Series 1 warrants (each, a “Warrant” and collectively, the “Warrants”), each warrant to purchase one share
of Common Stock at an exercise price of $2.00 per share. The Units are being sold in the Offering (as defined below), the initial
closing of which will close contemporaneously with the merger of Matinas BioPharma, Inc. (“Matinas”) into a wholly-owned
subsidiary of the Company (the “Merger”) as more fully described in the Memorandum (as defined below).

 

2.
The Offering. This subscription is submitted to you in accordance with and subject to the terms and conditions described
in this Subscription Agreement and the Confidential Private Placement Memorandum of the Company dated July 11, 2013, as amended
or supplemented from time to time, including all attachments, schedules and exhibits thereto (the “Memorandum”), relating
to the offering (the “Offering”) by the Company of a minimum of 24 Units ($6,000,000) (“Minimum Offering Amount”),
and up to a maximum of 36 Units ($9,000,000) (“Maximum Offering Amount”). In the event the Maximum Offering Amount
is sold, the Placement Agent (as defined below) and the Company shall have the right to place an additional 24 Units ($6,000,000)
to cover over-allotments. Aegis Capital Corp. has been engaged as placement agent in connection with the Offering (the “Placement
Agent”). The terms of the Offering are more completely described in the Memorandum and such terms are incorporated herein
in their entirety.

 

3. Payment.  The Purchaser will immediately make a wire transfer payment to, “Signature Bank, Escrow Agent for Matinas BioPharma
Holdings, Inc.” in the full amount of the purchase price of the Units being subscribed for in the Offering. Wire transfer
instructions are set forth on page 12 hereof under the heading “To subscribe for Units in the private offering of Matinas
BioPharma Holdings, Inc.” Such funds will be held for the Purchaser's benefit, and will be returned promptly, without interest
or offset if this Subscription Agreement is not accepted by the Company and Matinas, the Offering is terminated pursuant to its
terms by the Company and Matinas prior to the First Closing (as hereinafter defined), or the Minimum Offering Amount is not sold.
Together with a wire transfer of the full purchase price, the Purchaser is delivering a completed and executed Omnibus Signature
Page to this Subscription Agreement and the Registration Rights Agreement, in the form of Exhibit C to the Memorandum (the
“Registration Rights Agreement”).

 

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4.
Deposit of Funds. All payments made as provided in Section 3 hereof shall be deposited by the Company, Matinas or
the Placement Agent as soon as practicable after receipt thereof with Signature Bank (the “Escrow Agent”), in a non-interest-bearing
escrow account (the “Escrow Account”) until the earliest to occur of (a) the closing of the sale of the Minimum Offering
Amount (the “First Closing”), (b) the rejection of such subscription, and (c) the termination of the Offering by the
Company, Matinas or the Placement Agent. The Company, Matinas and the Placement Agent may continue to offer and sell the Units
and conduct additional closings for the sale of additional Units after the First Closing and until the termination of the Offering.

 

5.
Acceptance of Subscription. The Purchaser understands and agrees that the Company and Matinas, in their sole discretion,
reserve the right to accept or reject this or any other subscription for Units, in whole or in part, notwithstanding prior receipt
by the Purchaser of notice of acceptance of this subscription. The Company shall have no obligation hereunder until the Company
shall execute and deliver to the Purchaser an executed copy of this Subscription Agreement. If this subscription is rejected in
whole, the Offering of Units is terminated or the Minimum Offering Amount is not raised, all funds received from the Purchaser
will be returned without interest or offset, and this Subscription Agreement shall thereafter be of no further force or effect.
If this subscription is rejected in part, the funds for the rejected portion of this subscription will be returned without interest
or offset, and this Subscription Agreement will continue in full force and effect to the extent this subscription was accepted.

 

6.
Representations and Warranties.

 

The Purchaser hereby
acknowledges, represents, warrants, and agrees as follows:

 

(a)
None of the shares of Common Stock or the shares of Common Stock issuable upon exercise of the Warrants (the “Warrant
Shares”) offered pursuant to the Memorandum are registered under the Securities Act of 1933, as amended (the “Securities
Act”), or any state securities laws. The Purchaser understands that the offering and sale of the Units is intended to be
exempt from registration under the Securities Act, by virtue of Section 4(2) thereof and the provisions of Regulation D (“Regulation
D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”)
thereunder, based, in part, upon the representations, warranties and agreements of the Purchaser contained in this Subscription
Agreement;

 

(b)
Prior to the execution of this Subscription Agreement, the Purchaser and the Purchaser's attorney, accountant, purchaser
representative and/or tax adviser, if any (collectively, the “Advisers”), have received the Memorandum and all other
documents requested by the Purchaser, have carefully reviewed them and understand the information contained therein;

 

(c)
Neither the SEC nor any state securities commission or other regulatory authority has approved the Units, the Common Stock,
the Warrants or the Warrant Shares, or passed upon or endorsed the merits of the offering of Units or confirmed the accuracy or
determined the adequacy of the Memorandum. The Memorandum has not been reviewed by any federal, state or other regulatory authority;

 

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(d)
All documents, records, and books pertaining to the investment in the Units (including, without limitation, the Memorandum)
have been made available for inspection by such Purchaser and its Advisers, if any;

 

(e)
The Purchaser and its Advisers, if any, have had a reasonable opportunity to ask questions of and receive answers from a
person or persons acting on behalf of the Company concerning the offering of the Units and the business, financial condition and
results of operations of the Company and Matinas, and all such questions have been answered to the full satisfaction of the Purchaser
and its Advisers, if any;

 

(f)
In evaluating the suitability of an investment in the Company, the Purchaser has not relied upon any representation or information
(oral or written) other than as stated in the Memorandum.

 

(g)
The Purchaser is unaware of, is in no way relying on, and did not become aware of the Offering of the Units through or as
a result of, any form of general solicitation or general advertising including, without limitation, any article, notice, advertisement
or other communication published in any newspaper, magazine or similar media or broadcast over television, radio or the Internet
(including, without limitation, internet “blogs,” bulletin boards, discussion groups and social networking sites) in
connection with the Offering and sale of the Units and is not subscribing for the Units and did not become aware of the Offering
of the Units through or as a result of any seminar or meeting to which the Purchaser was invited by, or any solicitation of a subscription
by, a person not previously known to the Purchaser in connection with investments in securities generally;

 

(h)
The Purchaser has taken no action that would give rise to any claim by any person for brokerage commissions, finders' fees
or the like relating to this Subscription Agreement or the transactions contemplated hereby (other than commissions to be paid
by the Company to the Placement Agent or as otherwise described in the Memorandum);

 

(i)
The Purchaser, together with its Advisers, if any, has such knowledge and experience in financial, tax, and business matters,
and, in particular, investments in securities, so as to enable it to utilize the information made available to it in connection
with the Offering to evaluate the merits and risks of an investment in the Units and the Company and to make an informed investment
decision with respect thereto;

 

(j)
The Purchaser is not relying on the Company, Matinas, the Placement Agent or any of their respective employees or agents
with respect to the legal, tax, economic and related considerations of an investment in the Units, and the Purchaser has relied
on the advice of, or has consulted with, only its own Advisers;

 

(k)
The Purchaser is acquiring the Units solely for such Purchaser's own account for investment purposes only and not with a
view to or intent of resale or distribution thereof, in whole or in part. The Purchaser has no agreement or arrangement, formal
or informal, with any person to sell or transfer all or any part of the Units, the shares of Common Stock, the Warrants or the
Warrant Shares, and the Purchaser has no plans to enter into any such agreement or arrangement.

 

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(l)
The Purchaser must bear the substantial economic risks of the investment in the Units indefinitely because none of
the securities included in the Units may be sold, hypothecated or otherwise disposed of unless subsequently registered under
the Securities Act and applicable state securities laws or an exemption from such registration is available. Legends shall be
placed on the securities included in the Units to the effect that they have not been registered under the Securities Act or
applicable state securities laws and appropriate notations thereof will be made in the Company's stock books. Stop transfer
instructions will be placed with the transfer agent of the Units. The Company has agreed that purchasers of the Units will
have, with respect to the shares of Common Stock and the Warrant Shares, the registration rights described in the
Registration Rights Agreement. Notwithstanding such registration rights, there can be no assurance that there will be any
market for resale of the Units, the Common Stock, the Warrants or the Warrant Shares, nor can there be any assurance that
such securities will be freely transferable at any time in the foreseeable future.

 

(m)
The Purchaser has adequate means of providing for such Purchaser's current financial needs and foreseeable contingencies
and has no need for liquidity from its investment in the Units for an indefinite period of time;

 

(n)
The Purchaser is aware that an investment in the Units is high risk, involving a number of very significant risks and has
carefully read and considered the matters set forth under the caption “Risk Factors” in the Memorandum, and, in particular,
acknowledges that Matinas has a limited operating history, significant operating losses since inception, limited revenues to date,
limited assets and is engaged in a highly competitive business;

 

(o)
The Purchaser meets the requirements of at least one of the suitability standards for an “accredited investor”
as that term is defined in Regulation D and as set forth on the Accredited Investor Certification contained herein;

 

(p)
The Purchaser (i) if a natural person, represents that the Purchaser has reached the age of 21 and has full power and authority
to execute and deliver this Subscription Agreement and all other related agreements or certificates and to carry out the provisions
hereof and thereof; (ii) if a corporation, partnership, or limited liability company or partnership, or association, joint stock
company, trust, unincorporated organization or other entity, represents that such entity was not formed for the specific purpose
of acquiring the Units, such entity is duly organized, validly existing and in good standing under the laws of the state of its
organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of
state law or its charter or other organizational documents, such entity has full power and authority to execute and deliver this
Subscription Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and
to purchase and hold the securities constituting the Units, the execution and delivery of this Subscription Agreement has been
duly authorized by all necessary action, this Subscription Agreement has been duly executed and delivered on behalf of such entity
and is a legal, valid and binding obligation of such entity; or (iii) if executing this Subscription Agreement in a representative
or fiduciary capacity, represents that it has full power and authority to execute and deliver this Subscription Agreement in such
capacity and on behalf of the subscribing individual, ward, partnership, trust, estate, corporation, or limited liability company
or partnership, or other entity for whom the Purchaser is executing this Subscription Agreement, and such individual, partnership,
ward, trust, estate, corporation, or limited liability company or partnership, or other entity has full right and power to perform
pursuant to this Subscription Agreement and make an investment in the Company, and represents that this Subscription Agreement
constitutes a legal, valid and binding obligation of such entity. The execution and delivery of this Subscription Agreement will
not violate or be in conflict with any order, judgment, injunction, agreement or controlling document to which the Purchaser is
a party or by which it is bound;

 

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(q)
The Purchaser and the Advisers, if any, have had the opportunity to obtain any additional information, to the extent the
Company and/or Matinas have such information in its possession or could acquire it without unreasonable effort or expense, necessary
to verify the accuracy of the information contained in the Memorandum and all documents received or reviewed in connection with
the purchase of the Units and have had the opportunity to have representatives of the Company and Matinas provide them with such
additional information regarding the terms and conditions of this particular investment and the financial condition, results of
operations, business of the Company and Matinas deemed relevant by the Purchaser or the Advisers, if any, and all such requested
information, to the extent the Company had such information in its possession or could acquire it without unreasonable effort or
expense, has been provided to the full satisfaction of the Purchaser and the Advisers, if any;

 

(r)
Any information which the Purchaser has heretofore furnished or is furnishing herewith to the Company, Matinas or the Placement
Agent is complete and accurate and may be relied upon by the Company, Matinas and the Placement Agent in determining the availability
of an exemption from registration under federal and state securities laws in connection with the offering of securities as described
in the Memorandum. The Purchaser further represents and warrants that it will notify and supply corrective information to the Company,
Matinas and the Placement Agent immediately upon the occurrence of any change therein occurring prior to the Company's issuance
of the securities contained in the Units;

 

(s)
The Purchaser has significant prior investment experience, including investment in non-listed and non-registered securities.
The Purchaser is knowledgeable about investment considerations in development-stage companies with limited operating histories.
The Purchaser has a sufficient net worth to sustain a loss of its entire investment in the Company in the event such a loss should
occur. The Purchaser's overall commitment to investments which are not readily marketable is not excessive in view of the Purchaser’s
net worth and financial circumstances and the purchase of the Units will not cause such commitment to become excessive. The investment
is a suitable one for the Purchaser;

 

(t)
The Purchaser is satisfied that the Purchaser has received adequate information with respect to all matters which it or
the Advisers, if any, consider material to its decision to make this investment;

 

(u)
The Purchaser acknowledges that any estimates or forward-looking statements or projections included in the Memorandum were
prepared by the Company and Matinas in good faith but that the attainment of any such projections, estimates or forward-looking
statements cannot be guaranteed by the Company or Matinas and should not be relied upon;

 

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(v)
No oral or written representations have been made, or oral or written information furnished, to the Purchaser or the Advisers,
if any, in connection with the Offering which are in any way inconsistent with the information contained in the Memorandum;

 

(w)
Within five (5) days after receipt of a request from the Company, Matinas or the Placement Agent, the Purchaser will provide
such information and deliver such documents as may reasonably be necessary to comply with any and all laws and ordinances to which
the Company, Matinas or the Placement Agent is subject;

 

(x)
The Purchaser's substantive relationship with the Placement Agent or subagent through which the Purchaser is subscribing
for Units predates the Placement Agent's or such subagent's contact with the Purchaser regarding an investment in the Units;

 

(y)
THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
LAWS AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. THE
SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER
SAID ACT AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. THE SECURITIES HAVE NOT BEEN RECOMMENDED, APPROVED OR DISAPPROVED
BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR ANY OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE
FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE MEMORANDUM OR THIS
SUBSCRIPTION AGREEMENT. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL;

 

(z)
In making an investment decision investors must rely on their own examination of the Company, Matinas and the terms of the
Offering, including the merits and risks involved. The Purchaser should be aware that it will be required to bear the financial
risks of this investment for an indefinite period of time;

 

(aa)
(For ERISA plans only) The fiduciary of the ERISA plan (the “Plan”) represents that such fiduciary has
been informed of and understands the Company’s investment objectives, policies and strategies, and that the decision to invest
“plan assets” (as such term is defined in ERISA) in the Company is consistent with the provisions of ERISA that require
diversification of plan assets and impose other fiduciary responsibilities. The Purchaser fiduciary or Plan (a) is responsible
for the decision to invest in the Company; (b) is independent of the Company or any of its affiliates; (c) is qualified to make
such investment decision; and (d) in making such decision, the Purchaser fiduciary or Plan has not relied primarily on any advice
or recommendation of the Company or any of its affiliates;

 

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(bb)
The Purchaser should check the Office of Foreign Assets Control (“OFAC”) website at <http://www.treas.gov/ofac>
before making the following representations. The Purchaser represents that the amounts invested by it in the Company in the
Offering were not and are not directly or indirectly derived from activities that contravene federal, state or international laws
and regulations, including anti-money laundering laws and regulations. Federal regulations and Executive Orders administered by
OFAC prohibit, among other things, the engagement in transactions with, and the provision of services to, certain foreign countries,
territories, entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found
on the OFAC website at <http://www.treas.gov/ofac>. In addition, the programs administered by OFAC (the “OFAC Programs”)
prohibit dealing with individuals1 or entities in certain countries regardless of whether such individuals or entities
appear on the OFAC lists;

 

(cc)
To the best of the Purchaser’s knowledge, none of: (1) the Purchaser; (2) any person controlling or controlled by
the Purchaser; (3) if the Purchaser is a privately-held entity, any person having a beneficial interest in the Purchaser; or (4)
any person for whom the Purchaser is acting as agent or nominee in connection with this investment is a country, territory, individual
or entity named on an OFAC list, or a person or entity prohibited under the OFAC Programs. Please be advised that the Company may
not accept any amounts from a prospective investor if such prospective investor cannot make the representation set forth in the
preceding paragraph. The Purchaser agrees to promptly notify the Company and the Placement Agent should the Purchaser become aware
of any change in the information set forth in these representations. The Purchaser understands and acknowledges that, by law, the
Company may be obligated to “freeze the account” of the Purchaser, either by prohibiting additional subscriptions from
the Purchaser, declining any redemption requests and/or segregating the assets in the account in compliance with governmental regulations,
and the Placement Agent may also be required to report such action and to disclose the Purchaser’s identity to OFAC. The
Purchaser further acknowledges that the Company may, by written notice to the Purchaser, suspend the redemption rights, if any,
of the Purchaser if the Company reasonably deems it necessary to do so to comply with anti-money laundering regulations applicable
to the Company and the Placement Agent or any of the Company’s other service providers. These individuals include specially
designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs;

 

(dd)
To the best of the Purchaser’s knowledge, none of: (1) the Purchaser; (2) any person controlling or controlled by
the Purchaser; (3) if the Purchaser is a privately-held entity, any person having a beneficial interest in the Purchaser; or (4)
any person for whom the Purchaser is acting as agent or nominee in connection with this investment is a senior foreign political
figure,2 or any immediate family3 member or close associate4 of a senior foreign political
figure, as such terms are defined in the footnotes below; and

 

 

 1
These individuals include specially designated nationals, specially designated narcotics
traffickers and other parties subject to OFAC sanctions and embargo programs.

 

2
A “senior foreign political figure” is defined as a senior official in
the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected or not), a
senior official of a major foreign political party, or a senior executive of a foreign government-owned corporation. In addition,
a “senior foreign political figure” includes any corporation, business or other entity that has been formed by, or
for the benefit of, a senior foreign political figure.

 

3
“Immediate family” of a senior foreign political figure typically includes the figure’s
parents, siblings, spouse, children and in-laws.

 

4
A “close associate” of a senior foreign political figure is a person who
is widely and publicly known to maintain an unusually close relationship with the senior foreign political figure, and includes
a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the senior
foreign political figure.

 

 

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(ee)
If the Purchaser is affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if the Purchaser receives
deposits from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Purchaser represents
and warrants to the Company that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country
in which the Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related
to its banking activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank
to conduct banking activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does not
have a physical presence in any country and that is not a regulated affiliate.

 

7.
Lockup. The Purchaser hereby agrees that (i) the Purchaser shall not sell, offer, pledge, contract to sell, grant
any option or contract to purchase, purchase any option or contract to sell, grant any right or warrant to purchase, lend or otherwise
transfer or encumber, directly or indirectly, any shares of Common Stock, the Warrant Shares or other securities of the Company
(“Transfer”), nor shall the Purchaser enter into any swap, hedging or other arrangement that transfers to another,
in whole or in part, any of the economic consequences of ownership of any shares of Common Stock, the Warrant Shares or other securities
of the Company until the Release Date (as defined below); provided that the Purchaser shall be permitted to Transfer up to one-third
of the Purchaser’s shares of Common Stock of the Company (including the Warrant Shares issuable upon exercise of the Warrants)
at any time from and after the effective date of the Company’s first registration statement filed with the SEC, and (ii)
following the Release Date, the Purchaser shall be entitled to Transfer the Purchaser’s remaining shares of Common Stock,
the Warrant Shares or other securities of the Company. The Purchaser hereby covenants and agrees that (x) it shall abide by the
restrictions set forth above and (y) the Company shall be entitled to place “stop transfer” instructions with the Company’s
transfer agent in compliance with the above restrictions. For purposes of this Section 7, the term “Release Date” shall
mean the earlier of (i) one year from the date of filing of the first registration statement of the Company with the SEC or (ii)
ninety (90) days following the closing of an underwritten public offering of the Company’s securities. Notwithstanding the
foregoing, in the event the Company delivers a notice of redemption to the holders of the Warrants (pursuant to the terms of the
Warrants) (the “Redemption Notice”), the restrictions set forth above shall terminate effective on the date of delivery
of the Redemption Notice.

 

8.
Indemnification. The Purchaser agrees to indemnify and hold harmless the Company, Matinas, the Placement Agent (including
its selected dealers, if any), and their respective officers, directors, employees, agents, control persons and affiliates from
and against all losses, liabilities, claims, damages, costs, fees and expenses whatsoever (including, but not limited to, any and
all expenses incurred in investigating, preparing or defending against any litigation commenced or threatened) based upon or arising
out of any actual or alleged false acknowledgment, representation or warranty, or misrepresentation or omission to state a material
fact, or breach by the Purchaser of any covenant or agreement made by the Purchaser herein or in any other document delivered in
connection with this Subscription Agreement.

 

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9.
Irrevocability; Binding Effect. The Purchaser hereby acknowledges and agrees that the subscription hereunder is irrevocable
by the Purchaser, except as required by applicable law, and that this Subscription Agreement shall survive the death or disability
of the Purchaser and shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators,
successors, legal representatives, and permitted assigns. If the Purchaser is more than one person, the obligations of the Purchaser
hereunder shall be joint and several and the agreements, representations, warranties, and acknowledgments herein shall be deemed
to be made by and be binding upon each such person and such person's heirs, executors, administrators, successors, legal representatives,
and permitted assigns.

 

10.
Modification. This Subscription Agreement shall not be modified or waived except by an instrument in writing signed
by the party against whom any such modification or waiver is sought.

 

11.
Immaterial Modifications to the Registration Rights Agreement. The Company may, at any time prior to the First Closing,
modify the Registration Rights Agreement if necessary to clarify any provision therein, without first providing notice or obtaining
prior consent of the Subscriber, if, and only if, such modification is not material in any respect.

 

12.
Notices. Any notice or other communication required or permitted to be given hereunder shall be in writing and shall
be mailed by certified mail, return receipt requested, or delivered against receipt to the party to whom it is to be given (a)
if to the Company or Matinas, at the address set forth above, or (b) if to the Purchaser, at the address set forth on the signature
page hereof (or, in either case, to such other address as the party shall have furnished in writing in accordance with the provisions
of this Section 12). Any notice or other communication given by certified mail shall be deemed given at the time of certification
thereof, except for a notice changing a party's address which shall be deemed given at the time of receipt thereof.

 

13.
Assignability. This Subscription Agreement and the rights, interests and obligations hereunder are not transferable
or assignable by the Purchaser and the transfer or assignment of the shares of Common Stock or the Warrants shall be made only
in accordance with all applicable laws.

 

14.
Applicable Law. This Subscription Agreement shall be governed by and construed in accordance with the laws of the
State of New York applicable to contracts to be wholly-performed within said State.

 

15.
Arbitration. The parties agree to submit all controversies to arbitration in accordance with the provisions set forth
below and understand that:

 

(a)
Arbitration is final and binding on the parties.

 

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(b)
The parties are waiving their right to seek remedies in court, including the right to a jury trial.

 

(c)
Pre-arbitration discovery is generally more limited and different from court proceedings.

 

(d)
The arbitrator's award is not required to include factual findings or legal reasoning and any party's right to appeal or
to seek modification of rulings by arbitrators is strictly limited.

 

(e)
The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities
industry.

 

(f)
All controversies which may arise between the parties concerning this Subscription Agreement shall be determined by arbitration
pursuant to the rules then pertaining to the Financial Industry Regulatory Authority, Inc. (“FINRA”) in New York City,
New York. Judgment on any award of any such arbitration may be entered in the Supreme Court of the State of New York or in any
other court having jurisdiction of the person or persons against whom such award is rendered. Any notice of such arbitration
or for the confirmation of any award in any arbitration shall be sufficient if given in accordance with the provisions of this
Agreement. The parties agree that the determination of the arbitrators shall be binding and conclusive upon them.

 

16.
Blue Sky Qualification. The purchase of Units under this Subscription Agreement is expressly conditioned upon the
exemption from qualification of the offer and sale of the Units from applicable federal and state securities laws. The Company
shall not be required to qualify this transaction under the securities laws of any jurisdiction and, should qualification be necessary,
the Company shall be released from any and all obligations to maintain its offer, and may rescind any sale contracted, in the jurisdiction.

 

17.
Use of Pronouns. All pronouns and any variations thereof used herein shall be deemed to refer to the masculine, feminine,
neuter, singular or plural as the identity of the person or persons referred to may require.

 

18.
Confidentiality. The Purchaser acknowledges and agrees that any information or data the Purchaser has acquired from
or about the Company or Matinas, not otherwise properly in the public domain, was received in confidence. The Purchaser agrees
not to divulge, communicate or disclose, except as may be required by law or for the performance of this Agreement, or use to the
detriment of the Company or Matinas or for the benefit of any other person or persons, or misuse in any way, any confidential information
of the Company or Matinas, including any scientific, technical, trade or business secrets of the Company or Matinas and any scientific,
technical, trade or business materials that are treated by the Company or Matinas as confidential or proprietary, including, but
not limited to, ideas, discoveries, inventions, developments and improvements belonging to the Company or Matinas and confidential
information obtained by or given to the Company or Matinas about or belonging to third parties.

 

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19.
Miscellaneous.

 

(a)
This Subscription Agreement, together with the Registration Rights Agreement, constitute the entire agreement between the
Purchaser and the Company with respect to the subject matter hereof and supersede all prior oral or written agreements and understandings,
if any, relating to the subject matter hereof. The terms and provisions of this Subscription Agreement may be waived, or consent
for the departure therefrom granted, only by a written document executed by the party entitled to the benefits of such terms or
provisions.

 

(b)
The representations and warranties of the Company and the Purchaser made in this Subscription Agreement shall survive the
execution and delivery hereof and delivery of the shares of Common Stock and Warrants contained in the Units.

 

(c)
Each of the parties hereto shall pay its own fees and expenses (including the fees of any attorneys, accountants, appraisers
or others engaged by such party) in connection with this Subscription Agreement and the transactions contemplated hereby whether
or not the transactions contemplated hereby are consummated.

 

(d)
This Subscription Agreement may be executed in one or more counterparts each of which shall be deemed an original, but all
of which shall together constitute one and the same instrument.

 

(e)
Each provision of this Subscription Agreement shall be considered separable and, if for any reason any provision or provisions
hereof are determined to be invalid or contrary to applicable law, such invalidity or illegality shall not impair the operation
of or affect the remaining portions of this Subscription Agreement.

 

(f)
Paragraph titles are for descriptive purposes only and shall not control or alter the meaning of this Subscription Agreement
as set forth in the text.

 

(g)
The Purchaser understands and acknowledges that there may be multiple closings for this Offering.

 

20.
Omnibus Signature Page. This Subscription Agreement is intended to be read and construed in conjunction with the
Registration Rights Agreement pertaining to the issuance by the Company of the shares of Common Stock and Warrants to subscribers
pursuant to the Memorandum. Accordingly, pursuant to the terms and conditions of this Subscription Agreement and such related agreements
it is hereby agreed that the execution by the Purchaser of this Subscription Agreement, in the place set forth herein, shall constitute
agreement to be bound by the terms and conditions hereof and the terms and conditions of the Registration Rights Agreement, with
the same effect as if each of such separate but related agreement were separately signed.

  

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

  

    	11

    	 

    

 

Matinas
biopharma holdings, inc.

OMNIBUS SIGNATURE PAGE TO THE

SUBSCRIPTION AGREEMENT

AND REGISTRATION RIGHTS
AGREEMENT

 

Subscriber
hereby elects to subscribe under the Subscription Agreement for a total of ______ Units at a price of $250,000 per Unit (NOTE:
to be completed by subscriber) and executes the Subscription Agreement and the Registration Rights Agreement.

 

Date (NOTE: To be completed by subscriber):
__________________

 

If the Purchaser is an INDIVIDUAL, and
if purchased as JOINT TENANTS, as TENANTS IN COMMON, or as COMMUNITY PROPERTY:

 

	 	 	 
	Print Name(s)	 	Social Security Number(s)
	 	 	 
	 	 	 
	 	 	 
	Signature(s) of Subscriber(s)	 	Signature
	 	 	 
	 	 	 
	 	 	 
	Date	 	Address

  

If the Purchaser is a PARTNERSHIP, CORPORATION,
LIMITED LIABILITY COMPANY or TRUST:

 

	 	 	 
	Name of Partnership,	 	Federal Taxpayer
	Corporation, Limited	 	Identification Number
	Liability Company or Trust	 	 	                                    
	 	 	 	 	                                    
	By:	                                    	 	                                    
		Name:	 	State of Organization
		Title:	 	 	 
	 	 	 	 	 
	 	 	 
	Date	 	 	Address
	 	 	 	 	 
	Matinas BIOPHARMA HOLDINGS, inc.	 	AEGIS CAPITAL CORP.
	 	 	 	 	 
	By:  	                                     	 	By:  	                                                                        
	 	Authorized Officer	 	 	Authorized Officer
	 	 	 	 	 
	MATINAS BIOPHARMA, INC. 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:  	                                    	 		                                    
	 	Authorized Officer	 	 	 

 

    	12

    	 

    

 

MATINAS BIOPHARMA HOLDINGS, INC.

 

ACCREDITED INVESTOR CERTIFICATION

 

For Individual Investors Only

(all Individual Investors must INITIAL
where appropriate):

 

	Initial _______ 	I have an individual net worth, or joint net worth with my spouse, as of the date hereof in excess of $1 million.  For purposes of calculating net worth under this category, (i) the undersigned’s primary residence shall not be included as an asset, (ii) indebtedness that is secured by the undersigned’s primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability, (iii) to the extent that the indebtedness that is secured by the primary residence is in excess of the fair market value of the primary residence, the excess amount shall be included as a liability, and (iv) if the amount of outstanding indebtedness that is secured by the primary residence exceeds the amount outstanding 60 days prior to the execution of this Subscription Agreement, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability.
	 	 
	Initial _______	I have had an annual gross income for the past two years of at least $200,000 (or $300,000 jointly with my spouse) and expect my income (or joint income, as appropriate) to reach the same level in the current year.
	 	 
	Initial _______	I am a director or executive officer of Matinas BioPharma Holdings, Inc.

 

For Non-Individual
Investors

(all Non-Individual
Investors must INITIAL where appropriate):

 

	Initial _______	The investor certifies that it is a partnership, corporation, limited liability company or business trust that is 100% owned by persons who meet at least one of the criteria for Individual Investors set forth above.
	 	 
	Initial _______	The investor certifies that it is a partnership, corporation, limited liability company or any organization described in Section 501(c)(3) of the Internal Revenue Code, Massachusetts or similar business trust that has total assets of at least $5 million and was not formed for the purpose of investing the Company.
	 	 
	Initial _______	The investor certifies that it is an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, whose investment decision is made by a plan fiduciary (as defined in ERISA §3(21)) that is a bank, savings and loan association, insurance company or registered investment adviser.

 

    	13

    	 

    

 

	Initial _______	The investor certifies that it is an employee benefit plan whose total assets exceed $5,000,000 as of the date of this Agreement.
	 	 
	Initial _______	The undersigned certifies that it is a self-directed employee benefit plan whose investment decisions are made solely by persons who meet either of the criteria for Individual Investors.
	 	 
	Initial _______	The investor certifies that it is a U.S. bank, U.S. savings and loan association or other similar U.S. institution acting in its individual or fiduciary capacity.
	 	 
	Initial _______	The undersigned certifies that it is a broker-dealer registered pursuant to §15 of the Securities Exchange Act of 1934.
	 	 
	Initial _______	The investor certifies that it is an organization described in §501(c)(3) of the Internal Revenue Code with total assets exceeding $5,000,000 and not formed for the specific purpose of investing in the Company.
	 	 
	Initial _______	The investor certifies that it is a trust with total assets of at least $5,000,000, not formed for the specific purpose of investing in the Company, and whose purchase is directed by a person with such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment.
	 	 
	Initial _______	The investor certifies that it is a plan established and maintained by a state or its political subdivisions, or any agency or instrumentality thereof, for the benefit of its employees, and which has total assets in excess of $5,000,000.
	 	 
	Initial _______	The investor certifies that it is an insurance company as defined in §2(13) of the Securities Act, or a registered investment company.
	 	 
	Initial _______	An investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act.
	 	 
	Initial _______	A Small Business Investment Company licensed by the U.S.  Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958.
	 	 
	Initial _______	A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.

 

    	14

    	 

    

 

MATINAS BIOPHARMA HOLDINGS, INC.

Investor Profile

(Must be completed by Investor)

Section A - Personal
Investor Information

 

	Investor Name(s):  	 

	Individual executing Profile or Trustee:  	 

	Social Security Numbers / Federal I.D. Number:  	 

 

	Date of Birth:	 	 	Marital Status:	 
	Joint Party Date of Birth:  	 	 	Investment Experience (Years):  	 
	Annual Income:	 	 	Liquid Net Worth:	 

	Net Worth (excluding value of primary residence):  	 

Tax Bracket:      ______ 15% or below      _____ 25% - 27.5%      _____ Over
27.5%

	Investment Objectives (circle one or more):  	Preservation of Capital, Income, Capital Appreciation, Trading Profits, Speculation or Other (please specify) * See definitions on following page

 

	Home Street Address:   	 

	Home City, State & Zip Code:  	 

	Home Phone:  	 	 	Home Fax:  	 	 	Home Email:  	 

	Employer:  	 

	Employer Street Address:  	 

	Employer City, State & Zip Code:  	 

	Bus. Phone:	 	 	Bus. Fax:	 	 	Bus. Email:	 

	Type of Business:  	 

	Aegis Capital Account Executive / Outside Broker/Dealer:  	 

If you are a United States
citizen, please list the number and jurisdiction of issuance of any other government-issued document evidencing residence
and bearing a photograph or similar safeguard (such as a driver’s license or passport), and provide a photocopy
of each of the documents you have listed.

 

If you are NOT a
United States citizen, for each jurisdiction of which you are a citizen or in which you work or reside, please list
(i) your passport number and country of issuance or (ii) alien identification card number AND (iii) number and country of
issuance of any other government-issued document evidencing nationality or residence and bearing a photograph or similar safeguard,
and provide a photocopy of each of these documents you have listed. These photocopies must be certified by a lawyer as to authenticity.

 

 

Section B – Securities
Delivery Instructions

 

		____	Please deliver securities to the Employer Address listed
in Section A.

		____	Please deliver securities to the Home Address listed
in Section A.

		____	Please deliver securities to the following address:

________________________________________________________.

 

Section C –Wire Transfer Instructions

 

		____	I will wire funds from my outside account according to
the “Subscription Instructions” Page.

		____	I will wire funds from my Aegis Capital Account - See
“Wire Transfer Authorization” Page.

		____	The funds for this investment are rolled over, tax deferred
from __________ within the allowed 60 day window.

 

Please check if you are a FINRA member or
affiliate of a FINRA member firm: ________

 

	 	 	 
	Investor Signature	 	Date
	 	 	 
	 	 	 
	Investor Signature	 	Date

 

    	15

    	 

    

 

Investment Objectives: The typical
investment listed with each objective are only some examples of the kinds of investments that have historically been consistent
with the listed objectives. However, neither Matinas BioPharma Holdings, Inc., Matinas BioPharma, Inc. nor Aegis Capital Corp.
can assure that any investment will achieve your intended objective. You must make your own investment decisions and determine
for yourself if the investments you select are appropriate and consistent with your investment objectives.

 

Neither Matinas BioPharma Holdings, Inc.,
Matinas BioPharma, Inc. nor Aegis Capital Corp. assume responsibility to you for determining if the investments you selected are
suitable for you.

 

Preservation of Capital: An investment
objective of Preservation of Capital indicates you seek to maintain the principal value of your investments and are interested
in investments that have historically demonstrated a very low degree of risk of loss of principal value. Some examples of typical
investments might include money market funds and high quality, short-term fixed income products.

 

Income: An investment objective
of Income indicates you seek to generate income from investments and are interested in investments that have historically
demonstrated a low degree of risk of loss of principal value. Some examples of typical investments might include high quality,
short and medium-term fixed income products, short-term bond funds and covered call options.

 

Capital Appreciation: An investment
objective of Capital Appreciation indicates you seek to grow the principal value of your investments over time and are willing
to invest in securities that have historically demonstrated a moderate to above average degree of risk of loss of principal value
to pursue this objective. Some examples of typical investments might include common stocks, lower quality, medium-term fixed income
products, equity mutual funds and index funds.

 

Trading Profits: An investment objective
of Trading Profits indicates you seek to take advantage of short-term trading opportunities, which may involve establishing
and liquidating positions quickly. Some examples of typical investments might include short-term purchases and sales of volatile
or low priced common stocks, put or call options, spreads, straddles and/or combinations on equities or indexes. This is a high-risk
strategy.

 

Speculation: An investment objective
of Speculation indicates you seek a significant increase in the principal value of your investments and are willing to accept
a corresponding greater degree of risk by investing in securities that have historically demonstrated a high degree of risk of
loss of principal value to pursue this objective. Some examples of typical investments might include lower quality, long-term fixed
income products, initial public offerings, volatile or low priced common stocks, the purchase of sale of put or call options, spreads,
straddles and/or combinations on equities or indexes, and the use of short-term or day trading strategies.

 

Other: Please specify.

 

    	16

    	 

    

 

Selling Stockholder Questionnaire

 

    	17EMPLOYMENT
AGREEMENT

 

This EMPLOYMENT
AGREEMENT (this “Agreement”), dated as of September 3, 2013 and effective as of October 4, 2013 (the “Effective
Date”), is by and between MATINAS BIOPHARMA HOLDINGS, INC., a Delaware corporation (the “Company”)
and Jerome Jabbour (the “Executive”).

 

WITNESSETH:

 

WHEREAS, the
Company desires to employ the Executive as its Executive Vice President, Chief Business Officer & General Counsel and the Executive
desires to accept such employment, on the terms and conditions set forth in this Agreement; and

 

WHEREAS, the
Company and the Executive have mutually agreed that, as of the Effective Date, this Agreement shall govern the terms of employment
between the Executive and the Company.

 

NOW, THEREFORE,
in consideration of the promises and the mutual covenants and agreements contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as
follows:

 

ARTICLE
1

Employment;TERM OF AGREEMENT

 

Section
1.1.          Employment and Acceptance.
During the Term (as defined in Section 1.2), the Company shall employ the
Executive, and the Executive shall accept such employment and serve the Company, in each case, subject to the terms and conditions
of this Agreement.

 

Section
1.2.          Term. The
employment relationship hereunder shall be for the period commencing on the Effective Date and, subject to earlier termination
as provided in ARTICLE 4, ending on the third anniversary of the Effective
Date (the “Term”). In the event that the Executive’s employment
with the Company terminates, the Company’s obligation to continue to pay, after the Termination Date (as defined in Section
4.2(b)), Base Salary (as defined in Section 3.1(a)),
Annual Bonus (as defined in Section 3.1(b)) and other unaccrued benefits
shall terminate, except as may be provided for in ARTICLE 4. 

 

ARTICLE
2

TITLE; DUTIES AND OBLIGATIONS; LOCATION

 

Section
2.1.          Title. The
Company shall employ the Executive to render exclusive and full-time services to the Company. The Executive shall serve in the
capacity of Executive Vice President, Chief Business Officer & General Counsel.

 

    	 

    	 

    

 

Section
2.2.          Duties.
The Executive shall report to the Company’s Chief Executive Officer and be subject to the lawful direction of the Company’s
Board of Directors (the “Board”). The Executive agrees to perform
to the best of his ability, experience and talent those acts and duties, consistent with the position of Executive Vice President,
Chief Business Officer and General Counsel as the Board (and/or the Chief Executive Officer) shall from time to time direct. During
the Term, the Executive also shall serve in such other executive-level positions or capacities as may, from time to time, be reasonably
requested by the Board and/or the CEO, including, without limitation (subject to election, appointment, re-election or re-appointment,
as applicable) as (a) a member of the Board and/or as a member of the board of directors or similar governing body of any of the
Company’s subsidiaries or other Affiliates (as defined below), (b) an officer of any of the Company’s subsidiaries
or other Affiliates, and/or (c) a member of any committee of the Company and/or any of its subsidiaries or other Affiliates, in
each case, for no additional compensation. As used in this Agreement, “Affiliate”
of any individual or entity means any other individual or entity that directly or individual controls, is controlled by, or is
under common control with, the individual or entity. For avoidance of doubt, any election of the Executive as a member of the Board
is independent from the employment of the Executive under this Agreement and subject to normal procedures, bylaws and agreements
regulating the election and/or removal of the members of the Board; provided, however, that, as set forth above, such service shall
be for no additional compensation.

 

Section
2.3.          Compliance with Policies, etc.
During the Term, the Executive shall be bound by, and comply fully with, all of the Company’s policies and procedures for
employees and officers in place from time to time, including, but not limited to, all terms and conditions set forth in the Company’s
employee handbook, compliance manual, codes of conduct and any other memoranda and communications applicable to the Executive pertaining
to the policies, procedures, rules and regulations, as currently in effect and as may be amended from time to time. These policies
and procedures include, among other things and without limitation, the Executive’s obligations to comply with the Company’s
rules regarding confidential and proprietary information and trade secrets.

 

Section
2.4.          Time Commitment.
During the Term, the Executive shall use his best efforts to promote the interests of the Company (including its subsidiaries and
other Affiliates) and shall devote all of his business time, ability and attention to the performance of his duties for the Company
and shall not, directly or indirectly, render any services to any other person or organization, whether for compensation or otherwise,
except with the Board’s prior written consent or as specified on Exhibit C of the Covenants Agreement (as defined in Section
5.1), provided that the foregoing shall not prevent the Executive from (i) participating
in charitable, civic, educational, professional, community or industry affairs, or (ii) managing the Executive’s passive
personal investments, so long as, in each case, such activities individually or in the aggregate do not materially interfere or
conflict with the Executive’s duties hereunder or create a potential business or fiduciary conflict (in each case, as determined
by the Board).

 

Section
2.5.          Location.
The Executive’s principal place of business for the performance of his duties under this Agreement shall be at the principal
executive office of the Company. Notwithstanding, the foregoing, the Executive shall be required to travel as necessary to perform
his duties hereunder.

 

    	-2-

    	 

    

 

 

ARTICLE
3

COMPENSATION AND BENEFITS; EXPENSES

 

Section
3.1.          Compensation and Benefits.
For all services rendered by the Executive in any capacity during the Term (including, without limitation, serving as an officer,
director or member of any committee of the Company or any of its subsidiaries or other Affiliates), the Executive shall be compensated
as follows (subject, in each case, to the provisions of Article
4 below):

 

(a)          Base
Salary. During the Term, the Company shall pay the Executive a base salary (the “Base
Salary”) at the annualized rate of 275,000, which shall be subject to customary
withholdings and authorized deductions and be payable in equal installments in accordance with the Company’s customary payroll
practices in place from time to time. The Executive’s Base salary shall be subject to periodic adjustments as the Board and/or
the Compensation Committee of the Board (the “Compensation Committee”)
shall in its/their discretion deem appropriate; provided, however, that upon the later to occur of (i) the closing of an additional
round of financing (including equity, debt or convertible debt financing, and whether in one transaction or a series of related
transactions)  with gross proceeds of at least $15 million following the current private placement offering (the initial
closing of which is occurring as of the Effective Date), and (ii) the initiation of the first Phase III trial of MAT9001, the annualized
rate of Base Salary shall increase by $50,000, and upon each one-year anniversary thereof during the term, shall be increased by
an additional $50,000. As used in this Agreement, the term “Base Salary”
shall refer to Base Salary as may be adjusted from time to time. 

 

(b)          Annual
Bonus. For each calendar year ending during the Term (beginning with the calendar year ending December 31, 2013), the Executive
shall be eligible to receive an annual bonus (the “Annual Bonus”) with a target amount equal to thirty percent
(30%) of the Base Salary earned by the Executive for such calendar year (the “Target Annual Bonus”). The actual
amount of each Annual Bonus will be based upon the level of achievement of the Company’s corporate objectives and the Executive’s
individual objectives, in each case, as established by the Board or the Compensation Committee (taking into account the input of
the Chief Executive Officer with respect to the establishment of the Executive’s individual objectives) for the calendar
year with respect to which such Annual Bonus relates. The determination of the level of achievement of the corporate objectives
and the Executive’s individual performance objectives for a year shall be made by the Board or the Compensation Committee
Committee (taking into account the input of the Chief Executive Officer with respect to the level of achievement of the Executive’s
individual objectives), in its reasonable discretion. Each Annual Bonus for a calendar year, to the extent earned, will be paid
in a lump sum in the following calendar year, within the first 75 days of such following year. The Annual Bonus shall not be deemed
earned until the date that it is paid. Accordingly, in order for the Executive to receive an Annual Bonus, the Executive must be
actively employed by the Company at the time of such payment.

 

(c)          Signing
Bonus. Within thirty (30) days following the Effective Date, the Company will pay to the Executive in a lump sum the amount
of $75,000 as a signing bonus.

 

    	-3-

    	 

    

 

(d)          Equity
Compensation. The Company will recommend to the Compensation Committee at its next regularly scheduled meeting following the
Effective Date a grant to the Executive of options to purchase up to 200,000 shares of the Company’s common stock pursuant
to the Company’s 2013 Equity Compensation Plan (the “2013 Plan”), on the terms and conditions determined
by the Compensation Committee, with such grant subject to stockholder approval of the Company’s 2013 Equity Compensation
Plan. During the Term, subject to the terms and conditions established within the 2013 Plan or any successor equity compensation
plan as may be in place from time to time and separate Award Agreements (as defined in the 2013 Plan), the Executive also shall
be eligible to receive from time to time additional Stock Options, Stock Unit Awards, Performance Shares, Performance Units, Incentive
Bonus Awards, Other Cash-Based Awards and/or Other Stock-Based Awards (as such capitalized terms are defined in the 2013 Plan),
in amounts, if any, to be approved by the Board or the Compensation Committee in its discretion.

 

(e)          Benefit
Plans. The Executive shall be entitled to participate in all employee benefit plans and programs (excluding severance plans,
if any) generally made available by the Company to senior executives of the Company, to the extent permissible under the general
terms and provisions of such plans or programs and in accordance with the provisions thereof. The Company may amend, modify or
rescind any employee benefit plan or program and/or change employee contribution amounts to benefit costs without notice in its
discretion. Prior to establishing such benefit plans, the Company may pay the expense of health and dental insurance maintained
by the Executive for his own benefit plus his immediate family at the Effective Date up to an amount of $2,500 per month.

 

(f)          Paid
Vacation. The Executive shall be entitled to paid vacation days in accordance with the Company’s vacation policies in
effect from time to time for its executive team; provided, however, that the Executive shall be entitled to no less than fifteen
(15) paid vacation days per calendar year during the Term.

 

Section
3.2.          Expense Reimbursement.
The Company shall reimburse the Executive during the Term, in accordance with the Company’s expense reimbursement policies
in place from time, for all reasonable out-of-pocket business expenses incurred by the Executive in the performance of his duties
hereunder. In order to receive such reimbursement, the Executive shall furnish to the Company documentary evidence of each such
expense in the form required to comply with the Company’s policies in place from time to time.

 

ARTICLE
4

TERMINATION OF EMPLOYMENT

 

Section
4.1.          Termination Without Cause or Resignation for Good Reason.

 

(a)          The
Company may terminate the Executive’s employment hereunder at any time without Cause (other than by reason of death or Disability)
upon sixty (60) days prior written notice to the Executive. Executive may terminate his employment hereunder for Good Reason upon
written notice to the Company in accordance with the provisions set forth in Section 4.1(c).

 

    	-4-

    	 

    

 

(b)          As
used in this Agreement, “Cause” means: (i) a material act, or act of fraud, committed by the Executive that
is intended to result in the Executive’s personal enrichment to the detriment or at the expense of the Company or any of
its Affiliates; (ii) the Executive is convicted of a felony; (iii) gross negligence or willful misconduct by the Executive, or
failure by the Executive to perform the duties or obligations reasonably assigned to the Executive by the Board or the CEO from
time to time, which is not cured upon ten (10) days prior written notice (unless such negligence, misconduct or failure is not
susceptible to cure, as determined in the reasonable discretion of the Board); or (iv) the Executive violates the Covenants Agreement
(as defined in Section 5.1 below).

 

(c)          As
used in this Agreement, “Good Reason” means the occurrence of any of the following: (1) a material breach by
the Company of the terms of this Agreement; (2) a material reduction in the Executive’s Base Salary; (3) a material diminution
in the Executive’s authority, duties or responsibilities; or (4) a material change in the geographic location at which the
Executive performs services for the Company; provided, however, that the Executive must notify the Company within ninety (90) days
of the occurrence of any of the foregoing conditions that he considers it to be a “Good Reason” condition and provide
the Company with at least thirty (30) days in which to cure the condition. If the Executive fails to provide this notice and cure
period prior to his resignation, or resigns more than six (6) months after the initial existence of the condition, his resignation
will not be deemed to be for “Good Reason.”

 

(d)          If
the Executive’s employment is terminated pursuant to Section 4.1(a) other than during the Post-Change in Control Period
(as defined in Section 4.1(e)), the Executive shall, in full discharge of all of the Company’s obligations to the
Executive, be entitled to receive, and the Company’s sole obligation to the Executive under this Agreement or otherwise shall
be to pay or provide to the Executive, the following:

 

(i)  the
Accrued Obligations (as defined in Section 4.2(b));

 

(ii)  six
(6) months accelerated vesting of all of the Executive’s outstanding stock options, restricted stock and other equity incentive
awards; and

 

(iii)subject
to Section 4.4 and Section 4.5:

 

(A) payments
equal to nine (9) months of the Executive’s Base Salary (at the rate in effect immediately prior to the Termination Date)
(less applicable withholdings and authorized deductions), to be paid in equal installments bimonthly in accordance with the Company’s
customary payroll practices, commencing sixty (60) days following the Termination Date (the “Pre-CIC Severance Payments”);
and

 

(B) if
the Executive then participates in the Company’s medical and/or dental plans and the Executive timely elects to continue
and maintain group health plan coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”),
the Company will pay monthly, on the Executive’s behalf, a portion of the cost of such coverage for the nine (9) months after
the Termination Date, which payments will be equal to the amount of the monthly premium for such coverage, less the amount that
the Executive would have been required to pay if the Executive had remained an active employee of the Company (the “Pre-CIC
COBRA Assistance”); provided, however, that if and to the extent that the Company may not provide such
Pre-CIC COBRA Assistance without incurring tax penalties or violating any requirement of the law, the Company shall use its commercially
reasonable best efforts to provide substantially similar assistance in an alternative manner provided that the cost of doing so
does not exceed the cost that the Company would have incurred had the Pre-CIC COBRA Assistance been provided in the manner described
above or cause a violation of Section 409A (as defined in Section 5.16).

 

    	-5-

    	 

    

 

(e)          If
the Executive’s employment is terminated pursuant to Section 4.1(a) during the twenty-four (24) months immediately
following a Change in Control (as defined below) (the “Post-Change in Control Period”), the Executive shall,
in full discharge of all of the Company’s obligations to the Executive (and in lieu of any payments and benefits set forth
in Section 4.1(d)), be entitled to receive, and the Company’s sole obligation to the Executive under this Agreement
or otherwise shall be to pay or provide to the Executive, the following:

 

(i)  the
Accrued Obligations;

 

(ii)  full
accelerated vesting of all of the Executive’s outstanding stock options, restricted stock and other equity incentive awards;
and

 

(iii)subject
to Section 4.4 and Section 4.5:

 

(A) payments
equal to eighteen (18) months of the Executive’s Base Salary (at the rate in effect immediately prior to the Termination
Date) (less applicable withholdings and authorized deductions), to be paid in equal installments bimonthly in accordance with the
Company’s customary payroll practices, commencing sixty (60) days following the Termination Date (the “Post-CIC
Severance Payments”);

 

(B) if
the Executive then participates in the Company’s medical and/or dental plans and the Executive timely elects to continue
and maintain group health plan coverage pursuant to COBRA, the Company will pay monthly, on the Executive’s behalf, a portion
of the cost of such coverage for the eighteen (18) months after the Termination Date, which payments will be equal to the amount
of the monthly premium for such coverage, less the amount that the Executive would have been required to pay if the Executive had
remained an active employee of the Company (the “Post-CIC COBRA Assistance”); provided, however,
that if and to the extent that the Company may not provide such Post-CIC COBRA Assistance without incurring tax penalties or violating
any requirement of the law, the Company shall use its commercially reasonable best efforts to provide substantially similar assistance
in an alternative manner provided that the cost of doing so does not exceed the cost that the Company would have incurred had the
Post-CIC COBRA Assistance been provided in the manner described above or cause a violation of Section 409A; and

 

(C) a
payment equal to the Executive’s Target Annual Bonus for the calendar year in which the Termination Date occurs, payable
in a lump sum on the 60th day following the Termination Date.

 

    	-6-

    	 

    

 

(f)          As
used in this Agreement, “Change in Control” means (x) a change in ownership of the Company under clause (i)
below or (y) a change in the ownership of a substantial portion of the assets of the Company under clause (ii) below:

 

(i)  Change
in the Ownership of the Company. A change in the ownership of the Company shall occur on the date that any one person, or more
than one person acting as a group (as defined in clause (iii) below), acquires ownership of capital stock of the Company that,
together with capital stock held by such person or group, constitutes more than 50 percent of the total fair market value or total
voting power of the capital stock of the Company. However, if any one person or more than one
person acting as a group, is considered to own more than 50 percent of the total fair market value or total voting power of the
capital stock of the Company, the acquisition of additional capital stock by the same person or persons shall not be considered
to be a change in the ownership of the Company. An increase in the percentage of capital stock owned by any one person, or persons
acting as a group, as a result of a transaction in which the Company acquires capital stock in the Company in exchange for property
will be treated as an acquisition of stock for purposes of this paragraph.

 

(ii)  Change in the Ownership of a Substantial Portion of the Company’s Assets. A change in the ownership of a substantial
portion of the Company’s assets shall occur on the date that any one person, or more than one person acting as a group (as
defined in clause (iii) below), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition
by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 80 percent of
the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions. For
this purpose, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of,
determined without regard to any liabilities associated with such assets. There is no Change in Control under this clause (ii)
when there is a transfer to an entity that is controlled by the shareholders of the Company immediately after the transfer, as
provided below in this clause (ii). A transfer of assets by the Company is not treated as a change in the ownership of such assets
if the assets are transferred to (a) a shareholder of the Company (immediately before the asset transfer) in exchange for or with
respect to its capital stock, (b) an entity, 50 percent or more of the total value or voting power of which is owned, directly
or indirectly, by the Company, (c) a person, or more than one person acting as a group, that owns, directly or indirectly, 50 percent
or more of the total value or voting power of all the outstanding capital stock of the Company, or (d) an entity, at least 50 percent
of the total value or voting power of which is owned, directly or indirectly, by a person described in clause (ii)(c) of this paragraph.
For purposes of this clause (ii), a person's status is determined immediately after the transfer of the assets.

 

    	-7-

    	 

    

 

(iii)  Persons Acting as a Group. For purposes of clauses (i) and (ii) above, persons will not be considered to be acting as a
group solely because they purchase or own capital stock or purchase assets of the Company at the same time. However, persons will
be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or
acquisition of assets or capital stock, or similar business transaction with the Company. If a person, including an entity, owns
stock in both corporations that enter into a merger, consolidation, purchase or acquisition of assets or capital stock, or similar
transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation only with respect
to the ownership in that corporation before the transaction giving rise to the change and not with respect to the ownership interest
in the other corporation. For purposes of this paragraph, the term “corporation” shall have the meaning assigned such
term under Treasury Regulation section 1.280G-1, Q&A-45.

 

(iv)  Each of clauses (i) through (iii) above shall be construed and interpreted consistent with the requirements of Section 409A and
any Treasury Regulations or other guidance issued thereunder.

 

Section
4.2.          Termination for Cause; Voluntary Termination; Expiration
of Term.

 

(a)          The
Company may terminate the Executive’s employment hereunder at any time for Cause upon written notice to the Executive. The
Executive may voluntarily terminate his employment hereunder at any time without Good Reason upon sixty (60) days prior written
notice to the Company; provided, however, the Company reserves the right, upon written notice to the Executive, to
accept the Executive’s notice of resignation and to accelerate such notice and make the Executive’s resignation effective
immediately, or on such other date prior to Executive’s intended last day of work as the Company deems appropriate. It is
understood and agreed that the Company’s election to accelerate Executive’s notice of resignation shall not be deemed
a termination by the Company without Cause for purposes of Section 4.1 of this Agreement or otherwise or constitute Good
Reason (as defined in Section 4.1) for purposes of Section 4.1 of this Agreement or otherwise. The Executive’s
employment shall automatically terminate upon the expiration of the Term in accordance with Section 1.2.

 

(b)          If
the Executive’s employment is terminated pursuant to Section 4.2(a), the Executive shall, in full discharge of all
of the Company’s obligations to the Executive, be entitled to receive, and the Company’s sole obligation under this
Agreement or otherwise shall be to pay or provide to the Executive, the following (collectively, the “Accrued Obligations”):

 

(i)  the
Executive’s earned, but unpaid, Base Salary through the final date of the Executive’s employment by the Company (the
“Termination Date”), payable in accordance with the Company’s standard payroll practices;

 

(ii)  the
Executive’s accrued, but unused, vacation (in accordance with the Company’s policies);

 

(iii)  expenses reimbursable under Section 3.2 above incurred on or prior to the Termination Date but not yet reimbursed; and

 

(iv)  any amounts or benefits that are vested amounts or vested benefits or that the Executive is otherwise entitled to receive under
any plan, program, policy or practice (with the exception of those, if any, relating to severance) on the Termination Date, in
accordance with such plan, program, policy, or practice.

 

    	-8-

    	 

    

 

Section
4.3.          Termination Resulting from Death or Disability.

 

(c)          As
the result of any Disability suffered by the Executive, the Company may, upon five (5) days prior notice to the Executive, terminate
the Executive’s employment under this Agreement. The Executive’s employment shall automatically terminate upon his
death.

 

(d)          “Disability”
means a determination by the Company in accordance with applicable law that as a result of a physical or mental injury or illness,
the Executive is unable to perform the essential functions of his job with or without reasonable accommodation for a period of
(i) ninety (90) consecutive days; or (ii) one hundred twenty (120) days during any twelve (12) month period.

 

(e)          If
the Executive’s employment is terminated pursuant to Section 4.3(a), the Executive or the Executive’s estate,
as the case may be, shall be entitled to receive, and the Company’s sole obligation under this
Agreement or otherwise shall be to pay or provide to the Executive or the Executive’s estate, as the case may be,
the Accrued Obligations.

 

Section 4.4.          Release
Agreement. In order to receive the Pre-CIC Severance Payments or the Post-CIC Severance Payments (collectively referred to
herein as the “Severance Payments”) or the Pre-CIC COBRA Assistance or the Post-CIC COBRA Assistance (collectively
referred to herein as the “COBRA Assistance”) set forth in Section 4.1 (if eligible), the Executive must
timely execute (and not revoke) a separation agreement and general release (the “Release Agreement”) in a customary
form as is determined to be reasonably necessary by the Company in its good faith and reasonable discretion. If the Executive is
eligible for Severance Payments and COBRA Assistance pursuant to Section 4.1, the Company will deliver the Release Agreement
to the Executive within seven (7) calendar days following the Termination Date. The Severance Payments and COBRA Assistance are
subject to the Executive’s execution of such Release Agreement within 45 days of the Executive’s receipt of the Release
Agreement and the Executive’s non-revocation of such Release Agreement.

 

Section 4.5.          Post-Termination
Breach. Notwithstanding anything to the contrary contained in this Agreement, the Company’s obligations to provide the
Severance Payments and the COBRA Assistance will immediately cease if the Executive breaches any of the provisions of the Covenants
Agreement, the Release Agreement or any other agreement the Executive has with the Company.

 

Section
4.6.          Removal from any Boards and Position.
If the Executive’s employment is terminated for any reason under this Agreement, he shall be deemed (without further action,
deed or notice) to resign (i) if a member, from the Board or board of directors (or similar governing body) of any Affiliate of
the Company or any other board to which he has been appointed or nominated by or on behalf of the Company and (ii) from all other
positions with the Company or any subsidiary or other Affiliate of the Company, including, but not limited to, as an officer of
the Company and any of its subsidiaries or other Affiliates.

 

    	-9-

    	 

    

 

ARTICLE
5

GENERAL PROVISIONS

 

Section 5.1.          Company
Non-Disclosure and Invention Assignment Agreement. The Executive acknowledges and confirms that the Non-Disclosure and Invention
Assignment Agreement executed by the Executive in favor of the Company as of the Effective Date (“Covenants Agreement”),
the terms of which are incorporated herein by reference, remains in full force and effect and binding upon the Executive. The Covenants
Agreement shall survive the termination of this Agreement and the Executive’s employment by the Company for the applicable
period(s) set forth therein.

 

Section 5.2.          Expenses.
Each of the Company and the Executive shall bear its/his own costs, fees and expenses in connection with the negotiation, preparation
and execution of this Agreement.

 

Section
5.3.          Entire Agreement.
This Agreement and the Covenants Agreement contain the entire agreement of the parties hereto with respect to the terms and conditions
of the Executive’s employment during the Term and activities following termination of this Agreement and the Executive’s
employment with the Company and supersede any and all prior agreements and understandings, whether written or oral, between the
parties hereto with respect to the subject matter of this Agreement or the Covenants Agreement. Each party hereto acknowledges
that no representations, inducements, promises or agreements, whether oral or in writing, have been made by any party, or on behalf
of any party, which are not embodied herein or in the Covenants Agreement. The Executive acknowledges and agrees that the Company
has fully satisfied, and has no further, obligations to the Executive arising under, or relating to, any other employment or consulting
arrangement or understanding (including, without limitation, any claims for compensation or benefits of any kind) or otherwise.
No agreement, promise or statement not contained in this Agreement or the Covenants Agreement shall be valid and binding, unless
agreed to in writing and signed by the parties sought to be bound thereby. 

 

Section
5.4.          No Other Contracts.
The Executive represents and warrants to the Company that neither the execution and delivery of this Agreement by the Executive
nor the performance by the Executive of the Executive’s obligations hereunder, shall constitute a default under or a breach
of the terms of any other agreement, contract or other arrangement, whether written or oral, to which the Executive is a party
or by which the Executive is bound, nor shall the execution and delivery of this Agreement by the Executive nor the performance
by the Executive of his duties and obligations hereunder give rise to any claim or charge against either the Executive, the Company
or any Affiliate, based upon any other contract or other arrangement, whether written or oral, to which the Executive is a party
or by which the Executive is bound. The Executive further represents and warrants to the Company that he is not a party to or subject
to any restrictive covenants, legal restrictions or other agreement, contract or arrangement, whether written or oral, in favor
of any entity or person which would in any way preclude, inhibit, impair or limit the Executive’s ability to perform his
obligations under this Agreement, including, but not limited to, non-competition agreements, non-solicitation agreements or confidentiality
agreements. The Executive shall defend, indemnify and hold the Company harmless from and against all claims, actions, losses, liabilities,
damages, costs and expenses (including reasonable attorney’s fees and amounts paid in settlement in good faith) arising from
or relating to any breach of the representations and warranties made by the Executive in this Section 5.4.

 

    	-10-

    	 

    

 

Section
5.5.          Notices.
Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered personally or sent
by nationally recognized overnight courier service (with next business day delivery requested). Any such notice or communication
shall be deemed given and effective, in the case of personal delivery, upon receipt by the other party, and in the case of a courier
service, upon the next business day, after dispatch of the notice or communication. Any such notice or communication shall be addressed
as follows:

 

If to
the Company, to:

 

Matinas BioPharma Holdings, Inc.

915 Klosterman Road, East

Tarpon Springs, Florida 34689

 

Attn: Board of Directors

 

With
a copy to: 

 

Lowenstein
Sandler PC

1251 Avenue
of the Americas

New York,
New York 10020

Attn: Michael
J. Lerner, Esq.

 

If to
the Executive, to:

 

Jerome D.
Jabbour

___________________

___________________

 

With
a copy to: 

___________________

____________________

 

Any person named above
may designate another address or fax number by giving notice in accordance with this Section to the other persons named above.

 

Section
5.6.          Governing Law; Jurisdiction.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of New Jersey, without regard to principles
of conflicts of law. Any and all actions arising out of this Agreement or Employee’s employment by Company or termination
therefrom shall be brought and heard in the state and federal courts of the State of New Jersey and the parties hereto hereby irrevocably
submit to the exclusive jurisdiction of any such courts. The Company and the Executive
HEREBY WAIVE THEIR RESPECTIVE RIGHT TO TRIAL BY JURY IN ANY ACTION CONCERNING THIS AGREEMENT OR ANY AND ALL MATTERS ARISING DIRECTLY
OR INDIRECTLY HEREFROM AND REPRESENT THAT THEY HAVE CONSULTED WITH COUNSEL OF THEIR CHOICE OR HAVE CHOSEN VOLUNTARILY NOT TO DO
SO SPECIFICALLY WITH RESEPCT TO THIS WAIVER. 

 

    	-11-

    	 

    

 

Section
5.7.          Waiver.
Either party hereto may waive compliance by the other party with any provision of this Agreement. The failure of a party to insist
on strict adherence to any term of this Agreement on any occasion shall not be considered a waiver or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term of this Agreement. No waiver of any provision shall
be construed as a waiver of any other provision. Any waiver must be in writing.

 

Section
5.8.          Severability.
If any one or more of the terms, provisions, covenants and restrictions of this Agreement shall be determined by a court of competent
jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated and the parties will attempt to
agree upon a valid and enforceable provision which shall be a reasonable substitute for such invalid and unenforceable provision
in light of the tenor of this Agreement, and, upon so agreeing, shall incorporate such substitute provision in this Agreement.
In addition, if any one or more of the provisions contained in this Agreement shall for any reason be determined by a court of
competent jurisdiction to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed,
by limiting or reducing it, so as to be enforceable to the extent compatible with then applicable law.

 

Section
5.9.          Counterparts.
This Agreement may be executed in any number of counterparts and each such duplicate counterpart shall constitute an original,
any one of which may be introduced in evidence or used for any other purpose without the production of its duplicate counterpart.
Moreover, notwithstanding that any of the parties did not execute the same counterpart, each counterpart shall be deemed for all
purposes to be an original, and all such counterparts shall constitute one and the same instrument, binding on all of the parties
hereto.

 

Section 5.10.         Advice
of Counsel. This Agreement was prepared by Lowenstein Sandler LLP in its capacity as legal counsel to the Company. Both parties
hereto acknowledge that they have had the opportunity to seek and obtain the advice of counsel before entering into this Agreement
and have done so to the extent desired, and have fully read the Agreement and understand the meaning and import of all the terms
hereof.

 

Section
5.11.         Assignment. This
Agreement shall inure to the benefit of the Company and its successors and assigns (including, without limitation, the purchaser
of all or substantially all of its assets) and shall be binding upon the Company and its successors and assigns. This Agreement
is personal to the Executive, and the Executive shall not assign or delegate his rights or duties under this Agreement, and any
such assignment or delegation shall be null and void.

 

    	-12-

    	 

    

 

Section
5.12.         Agreement to Take Actions.
Each party to this Agreement shall execute and deliver such documents, certificates, agreements and other instruments, and shall
take all other actions, as may be reasonably necessary or desirable in order to perform his or its obligations under this Agreement.

 

Section
5.13.         No Attachment.
Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation,
sale, assignment, encumbrance, charge, pledge, or hypothecation or to execution, attachment, levy or similar process or assignment
by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect;
provided, however, that nothing in this Section 5.13 shall
preclude the assumption of such rights by executors, administrators or other legal representatives of the Executive or the Executive’s
estate and their assigning any rights hereunder to the person or persons entitled thereto.

 

Section
5.14.         Source of Payment.
Except as otherwise provided under the terms of any applicable employee benefit plan, all payments provided for under this Agreement
shall be paid in cash from the general funds of Company. The Company shall not be required to establish a special or separate fund
or other segregation of assets to assure such payments, and, if the Company shall make any investments to aid it in meeting its
obligations hereunder, the Executive shall have no right, title or interest whatever in or to any such investments except as may
otherwise be expressly provided in a separate written instrument relating to such investments. Nothing contained in this Agreement,
and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship,
between Company and the Executive or any other person. To the extent that any person acquires a right to receive payments from
Company hereunder, such right, without prejudice to rights which employees may have, shall be no greater than the right of an unsecured
creditor of Company. The Executive shall not look to the owners of the Company for the satisfaction of any obligations of the Company
under this Agreement.

 

Section
5.15.         Tax Withholding.
The Company or other payor is authorized to withhold from any benefit provided or payment due hereunder, the amount of withholding
taxes due any federal, state or local authority in respect of such benefit or payment and to take such other action as may be necessary
in the opinion of the Board to satisfy all obligations for the payment of such withholding taxes. The Executive will be solely
responsible for all taxes assessed against him with respect to the compensation and benefits described in this Agreement, other
than typical employer-paid taxes such as FICA, and the Company makes no representations as to the tax treatment of such compensation
and benefits. 

 

    	-13-

    	 

    

 

Section
5.16.         409A Compliance.
All payments under this Agreement are intended to comply with or be exempt from the requirements of Section 409A of the Code and
regulations promulgated thereunder (“Section 409A”). As used
in this Agreement, the “Code” means the Internal Revenue Code
of 1986, as amended. To the extent permitted under applicable regulations and/or other guidance of general applicability issued
pursuant to Section 409A, the Company reserves the right to modify this Agreement to conform with any or all relevant provisions
regarding compensation and/or benefits so that such compensation and benefits are exempt from the provisions of 409A and/or otherwise
comply with such provisions so as to avoid the tax consequences set forth in Section 409A and to assure that no payment or benefit
shall be subject to an “additional tax” under Section 409A. To the extent that any provision in this Agreement is ambiguous
as to its compliance with Section 409A, or to the extent any provision in this Agreement must be modified to comply with Section
409A, such provision shall be read in such a manner so that no payment due to the Executive shall be subject to an “additional
tax” within the meaning of Section 409A(a)(1)(B) of the Code. If necessary to comply with the restriction in Section 409A(a)(2)(B)
of the Code concerning payments to “specified employees,” any payment on account of the Executive’s separation
from service that would otherwise be due hereunder within six (6) months after such separation shall be delayed until the first
business day of the seventh month following the Termination Date and the first such payment shall include the cumulative amount
of any payments (without interest) that would have been paid prior to such date if not for such restriction. Each payment in a
series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A. In no event may the Executive,
directly or indirectly, designate the calendar year of payment. All reimbursements provided under this Agreement shall be made
or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement that (i) any reimbursement
is for expenses incurred during the Executive’s lifetime (or during a shorter period of time specified in this Agreement),
(ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement
in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar
year following the year in which the expense is incurred, and (iv) the right to reimbursement is not subject to liquidation or
exchange for another benefit. Notwithstanding anything contained herein to the contrary, the Executive shall not be considered
to have terminated employment with the Company for purposes of Section 4.1
unless the Executive would be considered to have incurred a “termination of employment” from the Company within the
meaning of Treasury Regulation §1.409A-1(h)(1)(ii). In no event whatsoever shall the Company be liable for any additional
tax, interest or penalty that may be imposed on the Executive by Section 409A or damages for failing to comply with Section 409A.

 

    	-14-

    	 

    

 

Section
5.17.         280G Modified Cutback.

 

(a)          If
any payment, benefit or distribution of any type to or for the benefit of the Executive, whether paid or payable, provided or to
be provided, or distributed or distributable pursuant to the terms of this Agreement or otherwise (collectively, the “Parachute
Payments”) would subject the Executive to the excise tax imposed under Section
4999 of the Code (the “Excise Tax”), the Parachute Payments
shall be reduced so that the maximum amount of the Parachute Payments (after reduction) shall be one dollar ($1.00) less than the
amount which would cause the Parachute Payments to be subject to the Excise Tax; provided that the Parachute Payments shall only
be reduced to the extent the after-tax value of amounts received by the Executive after application of the above reduction would
exceed the after-tax value of the amounts received without application of such reduction. For this purpose, the after-tax value
of an amount shall be determined taking into account all federal, state, and local income, employment and excise taxes applicable
to such amount. Unless the Executive shall have given prior written notice to the Company to effectuate a reduction in the Parachute
Payments if such a reduction is required, which notice shall be consistent with the requirements of Section 409A to avoid the imputation
of any tax, penalty or interest thereunder, then the Company shall reduce or eliminate the Parachute Payments by first reducing
or eliminating accelerated vesting of stock options or similar awards, then reducing or eliminating any cash payments (with the
payments to be made furthest in the future being reduced first), then by reducing or eliminating any other remaining Parachute
Payments; provided, that no such reduction or elimination shall apply to any non-qualified deferred compensation amounts (within
the meaning of Section 409A) to the extent such reduction or elimination would accelerate or defer the timing of such payment in
manner that does not comply with Section 409A.

 

(b)          An
initial determination as to whether (x) any of the Parachute Payments received by the Executive in connection with the occurrence
of a change in the ownership or control of the Company or in the ownership of a substantial portion of the assets of the Company
shall be subject to the Excise Tax, and (y) the amount of any reduction, if any, that may be required pursuant to the previous
paragraph, shall be made by an independent accounting firm selected by the Company (the “Accounting Firm”)
prior to the consummation of such change in the ownership or effective control of the Company or in the ownership of a substantial
portion of the assets of the Company. The Executive shall be furnished with notice of all determinations made as to the Excise
Tax payable with respect to the Executive’s Parachute Payments, together with the related calculations of the Accounting
Firm, promptly after such determinations and calculations have been received by the Company.

 

(c)          For
purposes of this Section 5.17, (i) no portion of the Parachute Payments
the receipt or enjoyment of which the Executive shall have effectively waived in writing prior to the date of payment of the Parachute
Payments shall be taken into account; (ii) no portion of the Parachute Payments shall be taken into account which in the opinion
of the Accounting Firm does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code;
(iii) the Parachute Payments shall be reduced only to the extent necessary so that the Parachute Payments (other than those referred
to in the immediately preceding clause (i) or (ii)) in their entirety constitute reasonable compensation for services actually
rendered within the meaning of Section 280G(b)(4) of the Code or are otherwise not subject to disallowance as deductions, in the
opinion of the auditor or tax counsel referred to in such clause (ii); and (iv) the value of any non-cash benefit or any deferred
payment or benefit included in the Parachute Payments shall be determined by the Company’s independent auditors based on
Sections 280G and 4999 of the Code and the regulations for applying those sections of the Code, or on substantial authority within
the meaning of Section 6662 of the Code.

 

[Signature Page Follows]

 

    	-15-

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day and year first above written.

 

	 	COMPANY
	 	 
	 	Matinas BioPharma Holdings, Inc.
	 	 
	 	By:	/s/ Roelof Rongen
	 	Name: Roelof Rongen
	 	Title:  Chief Executive Officer
	 	 
	 	EXECUTIVE
	 	 
	 	/s/ Jerome Jabbour
	 	Jerome Jabbour

 

[Signature
Page to Employment Agreement]

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