Document:

Exhibit
10.12

  

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (i) NOT MATERIAL AND
(ii) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

FINAL
VERSION 2/8/15

 

CONFIDENTIAL

 

 

 

 

 

 

ADDENDUM
TO

 

TECHNOLOGY
LICENSE AGREEMENT

 

by
and between

 

AF
CHEMICALS LLC

 

and

 

LANTERN
PHARMA, INC.

 

 

 

 

 

     

     

    

 

FINAL
VERSION 2/8/15

 

CONFIDENTIAL

 

ADDENDUM
TO TECHNOLOGY LICENSE AGREEMENT

 

This
Addendum is attached to and forms part of the Technology License Agreement by and between Lantern Pharmaceuticals Inc., a Texas
corporation (hereinafter referred to as “LANTERN”) having principal offices at 4287 Beltline Rd., Suite #270, Addison,
TX 75001 and AF Chemicals, LLC, a Californian Limited Liability Company having principal offices at 5545 Coral Reef, La Jolla,
CA 92037 (hereinafter referred to as “AFC”) as of February 8, 2016 (the “EFFECTIVE DATE”) (hereinafter the
“LANTERN AFC ADDENDUM”). LANTERN and AFC are sometimes each individually referred to hereinafter as a “Party”
and collectively referred to hereinafter as the “Parties”. To the extent that any of the terms or conditions contained
in this LANTERN AFC ADDENDUM may contradict or conflict with any of the terms or conditions of the Technology License Agreement
dated January 15, 2015, it is expressly understood and agreed that the terms of this LANTERN AFC ADDENDUM shall take precedence
and supersede the Technology License Agreement.

 

Recitals

 

WHEREAS,
LANTERN has negotiated a license to the TARGETED COMPOUNDS, the COMPOUND and the PRODUCT;

 

Whereas
AFC has rights to the TARGETED COMPOUNDS, the COMPOUND and the PRODUCT;

 

WHEREAS,
LANTERN desires to acquire right, title and interest in and to the LICENSED TECHNOLOGY, the COMPOUND and the PRODUCT in the FIELD
OF USE;

 

LANTERN
and AFC have previously entered into the Technology License Agreement (effective January 15, 2015) (hereinafter the “AGREEMENT”),
attached hereto as Exhibit D.

 

LANTERN
and AFC now agree to this LANTERN AFC ADDENDUM to the AGREEMENT.

 

Now
Therefore, in consideration of the foregoing
premises and the mutual promises, covenants and conditions contained in this LANTERN AFC ADDENDUM, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1.
DEFINITIONS

 

In
this LANTERN AFC ADDENDUM, sections that are numbered using the same section number as employed in the AGREEMENT replace the corresponding
section in the AGREEMENT. Sections in the AGREEMENT in which no corresponding numbered section is present in the LANTERN AFC ADDENDUM
remain unchanged but shall be read in light of the LANTERN AFC ADDENDUM as a whole. Subsections in the AGREEMENT in which no corresponding
numbered section is present in the LANTERN AFC ADDENDUM remain unchanged but shall be read in light of the LANTERN AFC ADDENDUM
as a whole. As used in this LANTERN AFC ADDENDUM, capitalized terms, whether used in the singular or plural form, shall have the
meanings set forth in the AGREEMENT, except that the following initially capitalized terms, whether used in the singular or plural
form, shall have the meanings set forth in this ARTICLE 1.

  

     

     

    

 

1.3
“LICENSED TECHNOLOGY” shall mean any inventions disclosing the TARGETED COMPOUNDS excluding the COMPOUND and/or the
PRODUCT.

 

1.13
“COMPOUND” shall mean the IROFULVEN composition and/or any pharmaceutically-active formulations of IROFULVEN in one
or more patents listed in Exhibit A, (ii) together with rights in technical information recorded in the form of drawings, plans,
specification, diagrams, trade secrets as defined by the Uniform Trade Secrets Act and other data relating to the manufacture,
design and improvement of the IROFULVEN composition, but excluding IROFULVEN when bound directly or via a linker to all of the
foregoing conjugates: an antibody, antibody fragment, peptide, growth factor, receptor proteins, receptor binding entity, lipids,
liposomal particles, nanoparticles, PEG carriers, steroids, proteins, toxins, or another drug conjugate (hereinafter “Conjugates”).
For clarity COMPOUND does not include all of the foregoing: illudin bound directly or via a linker to a Conjugate or acylfulvene
bound directly or via a linker to a Conjugate, including an illudin analog bound directly or via a linker to a Conjugate, or acylfulvene
analog bound directly or via a linker to a Conjugate.

 

1.14
“IROFULVEN” means (i) irofulven or 6-hydroxymethylacylfulvene (also known as HMAF or MGI-114 or IUPAC name,
(6’R)-6’-hydroxy-3’-(hydroxymethyl)-2’,4’,6’-trimethylspiro[cyclopropane-1,5’-inden]-7’(6’H)-one or
(5‘R)-5’-hydroxy-1’-(hydroxymethyl)-2’,5’,7’-trimethylspiro[cyclopropane-1,6’-indene]-4’-one) (CAS No. 158440-71-2 and/or
CAS 187277-46-9) (FDA UNII 6B799IH05A
http://fdasis.nlm.nih.gov/srs/ProxyServlet?mergeData=true&objectHandle=DBMaint&APPLICATION_NAME=fdasrs&actionHandle=default&nextPage=jsp/srs/ResultScreen.jsp&TXTSUPE RLISTID=6B799IH05A), an
alkylating DNA damage repair inhibitor, having molecular formula C15H18O3, and/or (ii) any
salt, free acid, free base, clathrate, solvate, hydrate, hemihydrate, anhydride, chelate, conformer, congener, crystal form,
crystal habit, polymorph, amorphous solid, homolog, isomer, stereoisomer, enantiomer, racemate, prodrug, isotopic or
radiolabeled equivalent, complex or mixture of any of the foregoing with respect to IROFULVEN that has the same mechanism of
action as IROFULVEN. For clarity, IROFULVEN includes the active pharmaceutical ingredient known as irofulven, together with
any salt, free acid, free base, clathrate, solvate, hydrate, hemihydrate, anhydride, chelate, conformer, congener, crystal
form, crystal habit, polymorph, amorphous solid, homolog, isomer, stereoisomer, enantiomer, racemate, prodrug, isotopic or
radiolabeled equivalent, complex or mixture thereof. For the purposes of the AGREEMENT and this LANTERN AFC ADDENDUM,
IROFULVEN does not include IROFULVEN analogs, illudin bound directly or via a linker to a Conjugate or acylfulvene
bound directly or via a linker to a Conjugate, including an illudin analog bound directly or via a linker to a Conjugate,
acylfulvene analog bound directly or via a linker to a Conjugate, IROFULVEN bound directly or via a linker to a Conjugate or
Irofulven analog bound directly or via a linker to a Conjugate.

 

1.15
“PRODUCT” means any and all pharmaceutical preparations in finished form that contains the COMPOUND, alone or in combination
with any other active pharmaceutical ingredient(s) or therapeutically or prophylactically active ingredient(s), in any formulation
and any dosage strength suitable for administration to humans.

  

    2

     

    

 

1.16
“ANNUAL LICENSING FEE’ is a fee due annually to be paid by LANTERN to AFC on January 15th as specified
in Exhibit B and Exhibit C.

 

1.17
“KNOW-HOW” means all tangible and intangible: (a) information, techniques, technology, practices, trade secrets, inventions
(whether patentable or not), methods, knowledge, skill, experience, data, results (including pharmacological, toxicological and
clinical test data and results, chemical structures, sequences, processes, formulae, techniques, research data, reports, standard
operating procedures and batch records), analytical and quality control data, analytical methods (including applicable reference
standards), full batch documentation, packaging records, release, stability, storage and shelf-life data, and manufacturing process
information, results or descriptions, software and algorithms; and/or (b) compositions of matter, cells, cell lines, assays, animal
models and any other physical, biological or chemical material, each to the extent owned or otherwise controlled (which, for purposes
of this LANTERN AFC ADDENDUM, includes the ability to license) by AFC and related to the COMPOUND, including physical embodiments
of the COMPOUND or PRODUCT. As used in this LANTERN AFC ADDENDUM, “clinical test data” shall include all information
related to clinical or non-clinical testing, including patient report forms, investigators’ reports, biostatistical, pharmaco-economic
and other related analyses, regulatory filings and communications, and the like.

 

1.18
“LICENSED INTELLECTUAL PROPERTY” means the Licensed Know-How and the Licensed Patents.

 

1.19
“LICENSED KNOW-HOW” means all Know-How controlled by AFC or its Affiliates as of the Effective Date or at any time
during the Term that is (a) necessary or useful for the research, Development, Manufacture and/or Commercialization of any COMPOUND
or PRODUCT, or (b) incorporated or otherwise used in (including in the Manufacture of) any COMPOUND or PRODUCT.

 

1.20
“LICENSED PATENTS” means all Patents controlled by AFC or its Affiliates as of the January 15, 2015 or thereafter
during the Term that claim the composition of matter of, or use, manufacture, distribution, sale or formulation of, any COMPOUND,
including the patents and patent applications listed on Exhibit A.

 

2.
LICENCE

 

2.3
Upon the terms and conditions set forth herein, AFC hereby grants to LANTERN an exclusive non-transferable and non-assignable
license, under the Licensed Intellectual Property, to make, use, sell, import, offer to sell and Commercialize the COMPOUND and/or
the PRODUCT solely in the FIELD OF USE in the LICENSED TERRITORY during the TERM, which grant shall include grants to make, use
and sub-license , (subject to Section 2.4) the COMPOUND and/or the PRODUCT solely in the FIELD OF USE in the LICENSED TERRITORY
during the TERM.

  

    3

     

    

 

2.4       The
REVENUE payable under either Exhibit B or Exhibit F to AFC will be increased
[***]       fold in the event of any challenge including an action in District Court or a
proceeding before the Patent Trial and Appeal Board or the United States Patent and Trademark Office by LANTERN and/or a
SUB-LICENSEE as to the validity of (i) any patent application or patent issuing from the COMPOUND and/or the PRODUCT, or (ii)
any patent application filed on or before the date of the challenge to the validity, relating to an AFC ADC INVENTION, or
(iii) any patent issuing on or before the date of the challenge to the validity, relating to an AFC ADC INVENTION.

 

2.5
Lantern expressly designates that OV shall make payments directly to AFC as provided in Exhibit F and Section 4.

 

2.6
AFC acknowledges that OV is a third party beneficiary of the AGREEMENT as per this LANTERN AFC ADDENDUM and as such that OV’s
rights and licenses to the COMPOUND and/or the PRODUCT shall not be restricted, impaired or diminished.

 

4.
REVENUE

 

4.1
LANTERN agrees to pay to AFC the REVENUE received for the LICENSED TECHNOLOGY during the TERM of the AGREEMENT including the ANNUAL
LICENSING FEE for the LICENSED TECHNOLOGY as prescribed in Exhibit C for the year 2016 and thereafter for the TERM of the
AGREEMENT.

 

4.2
LANTERN acknowledges that Oncology Venture APS (hereinafter “OV”), (Company Registration no. 34 62 35 62) a Danish
corporation having its principal offices at Venlighedesvej 1, 2970 Hørsholm, Denmark is a third party beneficiary of the
AGREEMENT as per this LANTERN AFC ADDENDUM and as such that OV’s rights and licenses to the COMPOUND and/or the PRODUCT
shall not be restricted, impaired or diminished by this Agreement.

 

4.3
As consideration for AFC entering into a Stand-by License Agreement with OV (hereinafter the “AFC OV Stand-by License Agreement”),
attached hereto as Exhibit E and for entering into this LANTERN AFC ADDENDUM, LANTERN agrees that OV shall make direct
payments to AFC for the COMPOUND and/or the PRODUCTS as outlined in Exhibit F during the TERM of the AGREEMENT.

 

4.4
LANTERN agrees to pay directly to AFC the ANNUAL LICENSING FEE for the LICENSED TECHNOLOGY and COMPOUND and PRODUCTS as prescribed
in Exhibit B and Exhibit C for the year 2017 and thereafter for the TERM of the AGREEMENT.

 

4.5
LANTERN agrees to pay to AFC any REVENUE for which OV was contracted to pay AFC for the COMPOUND and/or the PRODUCTS under Section
4.2 for the LICENSED TECHNOLOGY as outlined in Exhibit F during the TERM of this AGREEMENT, for which OV has for any reason
not paid AFC.

  

    4

     

    

 

4.6
LANTERN acknowledges and agrees that in the event that the payment of money, this AGREEMENT, or the grant of collateral should
for any reason subsequently be declared to be “fraudulent” or “preferential” within the meaning of any state,
federal, or foreign law relating to fraudulent transfers, fraudulent conveyances, preferences, or otherwise voidable or recoverable,
in whole or in part, for any reason, under the United States Bankruptcy Code or any other federal, foreign, or state law (collectively
referred to herein as “Voidable Transfer”), and AFC is required to pay or restore any such Voidable Transfer, or any
portion thereof, then as to that which is repaid or restored pursuant to any such Voidable Transfer (including all costs, expenses,
and attorneys’ fees of AFC related thereto, including, without limitation, relief from stay, objection to claims, or similar
proceedings, including, but not limited to, those arising under the United States Bankruptcy Code), the liability of LANTERN shall
automatically be revived, reinstated, and restored to the extent hereof, and shall exist as though such Voidable Transfer had
never been made to AFC,

 

4.7
Nothing set forth in this Agreement is an admission that such Voidable Transfer has occurred. LANTERN expressly acknowledges that
AFC may rely upon the advice of counsel, and if so advised by counsel, may, in the exercise of their sole opinion and judgment,
settle, without defending any action to void any alleged Voidable Transfer, and that upon such settlement, LANTERN shall again
be liable for any deficiency resulting from such settlement as provided in this AGREEMENT.

 

4.8
As between AFC and LANTERN, LANTERN agrees to compensate AFC in full for all costs of storage and digitization of data required
for AFC to fulfill the requirements of Section 2.3 relating to Licensed Intellectual Property. For clarity this includes the costs
of access and digitization of the LP Data Package.

 

4.9
AFC confirms that it has reviewed the terms of the LANTERN-OV ADDENDUM dated February 8, 2016 and that LANTERN is authorized by
AFC to grant the license to the LP Technology (as defined in the Lantern Pharma-OV License Agreement dated February 8, 2016) pursuant
to the terms set forth therein.

 

4.10
LANTERN authorizes OV to make direct payments to AFC as outlined in Exhibit F, solely to the extent that OV is responsible
to make the specified payments thereon to LANTERN under the Drug License and Development Agreement by and between LP and OV, dated
as of May 23, 2015, as amended from time to time. LANTERN acknowledges and agrees that such direct payments to AFC (or any designee)
shall reduce, dollar-for-dollar, the amounts which OV owes to LANTERN with respect to each such payment obligation specified in
Exhibit F:

 

1)
$[***] in connection with OV’s obligation to pay a signing fee ($[***]) to Lantern (based on the [***]% royalty).

 

2) $[***]in connection with Lantern’s
commitment of a $[***]license fee for Irofulven in 2016.

 

3) $[***]in connection with Lantern’s
commitment of a $[***]license

 

4)
$[***]in connection with Lantern’s ongoing commitment to pay the legal fees of AFC in negotiating (i) the AFC
OV Stand-by License Agreement; (ii) Proprietary Information Agreement; (iii) addendum to Lantern Pharma-OV License
Agreement; (iv) this AFC LANTERN ADDENDUM; and (v) Material Transfer Agreement.

   

    5

     

    

 

5)
$[***]in connection with Lantern’s ongoing commitment to pay the costs and fees of AFC supplying access to the LP
Data Package this amount is to cover the January 25-26 inspection of the LP Data Package.

 

5.
TERM AND TERMINATION

 

5.2
Failure of LANTERN to distribute REVENUE owed AFC within ninety (90) days of receipt of same or any failure to initiate or complete
payments as specified in either Section 8.2 or Section 8.3 shall be a material breach of this AGREEMENT.

 

5.7
Failure of OV to distribute REVENUE to AFC in an amount in excess of five thousand dollars ($5,000) within ninety (90) days of
said REVENUE being payable to LANTERN shall be a material breach of this AGREEMENT.

 

8.
ASSIGNMENTS

 

8.2
A transfer or assignment of the LICENSED TECHNOLOGY license as outlined in Section 2.1 to a third party (hereinafter the
‘Acquirer’) shall require that the Acquirer make a Transfer Payment to AFC. The Transfer Payment will
be [***] dollars ($ [***] ) where the Transfer Payment will be spread out over 5 years as follows: [***] dollars
($[***]) will be due within 30 days of the transfer or assignment of rights, with the residual due in four (4) equal
installments of [***] dollars ($[***]) at yearly intervals on the anniversary of the transfer or assignment of
rights. The Acquirer will be responsible for making the [***] dollars ($[***]) payment. The Acquirer remains
responsible for all other payments outlined in Exhibit C (milestone and royalty payments) from the date of the transfer or
assignment of rights.

 

8.3
Any event that results in a Change in Control of LANTERN to a third party irrespective of whether the third party is
a person, an entity, a group of persons or entities (hereinafter the ‘Purchaser’) shall require that the
Purchaser make a payment of [***] dollars ($[***]) to AFC as a result of the Change of Control. Payments will be spread out
over 5 years as follows: [***] dollars ($[***]) will be due within 30 days of the Change of Control, with the residual due in
four (4) equal installments (each up to [***] dollars ($[***]) at yearly intervals on the anniversary of the Change of
Control. The Purchaser will be responsible for making the [***] dollars ($[***]) payment. OV will continue to be
responsible for all other payments outlined in Exhibit B (milestone and royalty payments) after the date of the Change of
Control as outlined in Sections 2.5 and 4.6. The Purchaser remains responsible for the payments outlined in Exhibit C
(milestone and royalty payments) from the date of the change of control.

 

    6

     

    

 

9.
MISCELANEOUS

 

9.2
This AGREEMENT including the Exhibits thereto, and this LANTERN AFC ADDENDUM , including the Exhibits hereto set forth the entire
understanding and obligation of the Parties with respect to the subject matter of the AGREEMENT and supersedes any and all prior
or contemporaneous negotiations, representations, understandings and agreements, whether written or oral between the Parties.
No amendment or modification of this AGREEMENT shall be valid or binding unless made in writing and signed on behalf of each of
the Parties. Any amendment of the AGREEMENT and/or this LANTERN AFC ADDENDUM that restricts, impairs or diminishes OV’s
rights and licenses to the COMPOUND and/or the PRODUCT is expressly prohibited.

 

20.
INTELLECTUAL PROPERTY.

 

20.4
It is recognized and understood that AFC patents including the patents listed in Exhibit A relating to the COMPOUND and the PRODUCT
are the separate property of AFC and the ownership of the AFC patents is only affected as explicitly recited in this AGREEMENT.

 

20.5
AFC shall have exclusive ownership rights to all inventions, discoveries, improvements, and modifications, as well as all methods,
processes, Know-How and/or trade secrets arising from or conceived or reduced to practice during and as part of the research,
development, formulation, marketing and sale of the all of the following: illudin bound directly or via a linker to a Conjugate,
or acylfulvene bound directly or via a linker to a Conjugate, including an illudin analog bound directly or via a linker to a
Conjugate, acylfulvene analog bound directly or via a linker to a Conjugate, IROFULVEN bound directly or via a linker to a Conjugate
or Irofulven analog bound directly or via a linker to a Conjugate (“AFC ADC INVENTIONS”) and regardless of whether generated
by an AFC employee alone, a LANTERN employee alone, a SUB-LICENSEE employee alone, an AFC employee and a LANTERN employee jointly,
an AFC employee and a SUB-LICENSEE employee jointly, a LANTERN employee and a SUB-LICENSEE employee jointly or any of the above
combinations with others.

 

20.6
AFC shall be entitled to shop rights to any license or other technology acquired by LANTERN relevant to the COMPOUND and/or the
PRODUCT.

 

Signature
Page to Follow

 

    7

     

    

 

FINAL
VERSION 2/8/15

 

CONFIDENTIAL

 

In
Witness Whereof, the
Parties have executed this LANTERN AFC ADDENDUM in duplicate originals by the following signatures of their duly authorized officers
as of the Effective Date.

 

	AF
    Chemicals LLC	 	Lantern
    Pharma, Inc.
	 	 	 
	By:	 	 	By:	 
	 	Michael J. Kelner, M.D.	 	 	Arun Asaithambi
	 	Managing Member	 	 	Chief Executive Officer
	Date:	 	 	Date:	02-10-2016

  

     

     

    

 

EXHIBITS

 

Exhibit
DTECHNOLOGY LICENSE AGREEMENT signed January 15, 2015

 

Exhibit
AList of Licensed U.S. Patentsn

 

Exhibit
BTerm Sheet for Lantern Pharmaceuticals - Irofulven

 

Exhibit
CTerm Sheet for Lantern Pharmaceuticals - Analogs

 

Exhibit
EAFC OV Stand-by License Agreement signed February 8, 2016

 

Exhibit
FSchedule of Payments

  

     

     

    

 

Exhibit
D

Technology
License Agreement

 

By
and between LANTERN PHARMA, INC.

 

and

 

AF
CHEMICALS, LLC

January
15, 2015

 

[to
be appended pre-execution]

  

     

     

    

 

Exhibit
E

AFC
OV Stand-by License Agreement

 

By
and between AF CHEMICALS, LLC

 

and

 

ONCOLOGY
VENTURE, APS

 

Dated
February 8, 2016

 

[to
be appended pre-execution]

 

     

     

    

 

FINAL
VERSION 2/8/15

 

CONFIDENTIAL

 

Exhibit
F

 

SCHEDULE
OF PAYMENTS

 

The
following is a list of ONCOLOGY VENTURE, APS (OV) payments to be made directly and in preference to AF Chemicals LLC (AFC) on
behalf of Lantern Pharma, Inc. (LP) at the time of the applicable payment to LP under the relevant sections of the Drug License
and Development Agreement by and between LP and OV, dated as of May 23, 2015, as amended February 8, 2016 and as further amended
from time to time, as enumerated below:

 

1)$[***]
prior to any payment by OV to Lantern upon treatment of the first patient in a Phase 3 Clinical Trial of a Product under 6.2(a)
($[***]payment plus an additional $ [***] payment - portion of the $[***]).

 

2)$[***]prior
to any payment by OV to Lantern upon first Filing of Regulatory Approval in the U.S. of a Product under 6.2(c) ($[***]payment
plus an additional $ [***] payment - portion of the $[***]).

 

3)$[***]prior
to any payment by OV to Lantern upon Regulatory Approval in the U.S. of a Product under 6.2(e) ($[***]plus an additional
$ [***] payment to AFC - portion of the $[***]).

 

4)$[***]prior
to any payment by OV to Lantern for the first Filing of Regulatory Approval in the EU under 6.2(b) ( [***]payment plus an
additional $ [***] payment - portion of the $[***]).

 

5)
$[***]prior to any payment by OV to Lantern for Regulatory Approval in the EU of a Product under 6.2(d) ($ [***] (for Germany,
France, UK) plus[***]payment plus an additional payment of $ [***] - portion of the $[***]).

 

6)$[***]
prior to any payment by OV to Lantern for the conclusion of a First Program Acquirer Agreement under Section 6.2(g) ([***] %
of the $[***]payment).

 

Note
that LP remains responsible for the 2017 and subsequent yearly licensing payments for Irofulven and Irofulven AnalogsExhibit 4.1

 

NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND
THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN
SECURED BY SUCH SECURITIES.

 

COMMON
STOCK PURCHASE WARRANT

 

Pulmatrix,
Inc.

 

	Warrant Shares: _______	Issue
                           Date:______, 2020

	 	 
	 	Initial Exercise Date: _______, 2020

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns
(the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after the date set forth above (the “Initial Exercise Date”) and on or prior to
5:00 p.m. (New York City time) on ______________1 (the “Termination Date”) but not thereafter, to
subscribe for and purchase from Pulmatrix, Inc., a Delaware corporation (the “Company”), up to ______ shares
(as subject to adjustment hereunder, the “Warrant Shares”) of the Company’s Common Stock. The purchase
price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section
1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that
certain Securities Purchase Agreement (the “Purchase Agreement”), dated April 16, 2020, among the Company
and the purchasers signatory thereto.

 

 

1
Insert the date that is the two (2) year anniversary of the Initial Exercise Date, provided that, if such date is not a
Trading Day, insert the immediately following Trading Day.

 

    	1

    	 

    

 

Section
2. Exercise.

 

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

 

b)
 Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $1.55, subject
to adjustment hereunder (the “Exercise Price”).

 

    	2

    	 

    

 

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

 

(A)
= as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice
of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both
executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours”
(as defined in Rule 600(b)(68) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the
option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise
or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s
execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours”
on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular
trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice
of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered
pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;

 

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

 

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

 

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

 

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

 

    	3

    	 

    

 

 

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

 

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

 

d)                 
Mechanics of Exercise.

 

i.           
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with
The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company
is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder
without volume or manner-of-sale limitations pursuant to Rule 144 (assuming cashless exercise of the Warrants), and otherwise
by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee,
for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder
in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the
Notice of Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number
of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date,
the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for
all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised,
irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than
in the case of a cashless exercise) is received by the Warrant Share Delivery Date. If the Company fails for any reason to deliver
to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to
the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based
on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per
Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share
Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer
agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein, “Standard
Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s
primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.

 

    	4

    	 

    

 

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

 

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

 

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

 

    	5

    	 

    

 

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

 

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

 

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

 

    	6

    	 

    

 

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

 

    	7

    	 

    

 

Section
3. Certain Adjustments.

 

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

 

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

 

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

 

    	8

    	 

    

 

d) 
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in
one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company
(and all of its Subsidiaries, taken as a whole), directly or indirectly, effects any sale, lease, license, assignment, transfer,
conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any,
direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property
and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly,
in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any
compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities,
cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share
purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off,
merger or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than
50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons
making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement
or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this
Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately
prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section
2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to
apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not
the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this
Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements
in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such
Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security
of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is
exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to
the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise
of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder
to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental
Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being
for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction),
and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction,
the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction,
the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead
to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the
Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named
as the Company herein.

 

    	9

    	 

    

 

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

 

f)
 Notice to Holder.

 

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

 

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

 

    	10

    	 

    

 

Section
4. Transfer of Warrant.

 

a)
Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d)
hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without
limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office
of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached
hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making
of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants
in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument
of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically
surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender
this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company
assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for
the purchase of Warrant Shares without having a new Warrant issued.

 

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

 

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

 

    	11

    	 

    

 

d)
Transfer Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant,
the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities
Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions
or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer,
that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section 5.7 of the Purchase Agreement.

 

e)
Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant
and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a
view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable
state securities law, except pursuant to sales registered or exempted under the Securities Act.

 

Section
5. Miscellaneous.

 

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

 

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

 

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

 

    	12

    	 

    

 

d)
Authorized Shares.

 

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

 

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

 

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

 

e)
 Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant
shall be determined in accordance with the provisions of the Purchase Agreement.

 

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

 

    	13

    	 

    

 

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

 

h)
Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company
shall be delivered in accordance with the notice provisions of the Purchase Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(Signature
Page Follows)

 

    	14

    	 

    

 

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

 

	 	PULMATRIX, INC.
	 	 	                   
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	15

    	 

    

 

NOTICE
OF EXERCISE

 

To:
PULMATRIX, INC.

 

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

 

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

 

[  ]
in lawful money of the United States; or

 

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

 

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

 

_______________________________

 

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

 

_______________________________

 

_______________________________

 

_______________________________

 

(4)
Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under
the Securities Act of 1933, as amended.

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity: ________________________________________________________________________

Signature
of Authorized Signatory of Investing Entity: _________________________________________________

Name
of Authorized Signatory: ___________________________________________________________________

Title
of Authorized Signatory: ____________________________________________________________________

Date:
________________________________________________________________________________________

 

    	 

    	 

    

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

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

 

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

 

	Name:	 
	 	(Please
    Print)
	 	 
	Address:	 
	 

         

        Phone
        Number:

         

        Email
        Address:
	(Please
                                         Print)

         

        ______________________________________

         

        ______________________________________

	Dated:
    _______________ __, ______	 
	Holder’s
    Signature:	 
	Holder’s
    Address:

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