Document:

Exhibit 4.2

 

THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND MAY
NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND ANY APPLICABLE
STATE SECURITIES LAWS COVERING SUCH SECURITIES OR THE SALE IS MADE IN ACCORDANCE WITH AN EXEMPTION UNDER THE ACT AND ANY APPLICABLE
STATE SECURITIES LAWS, AND THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES REASONABLY SATISFACTORY
TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

Avenue Therapeutics, Inc.

 

COMMON STOCK WARRANT

 

This Warrant is issued as of this ____ day
of ______________ (the “Issue Date”) by [Avenue Therapeutics, Inc.], a Delaware corporation (the “Company”),
to _____________________________, or permitted assigns (the “Holder”).

 

1.          Issuance
of Warrant; Number and Type of Securities Subject to Warrant; Exercise Price. The Company hereby grants to the Holder the right
to purchase ______________ shares of the Company’s Common Stock (the “Common Stock”). The exercise
price of the warrant will be $_____.

 

2.          Term.
This Warrant shall only be exercisable in accordance with the terms of Section 6 hereof, and shall expire on the date that is ten
(10) years after the Issue Date.

 

3.          Adjustments
and Notices. This Warrant shall be subject to adjustment from time to time in accordance with the following provisions.

 

(a)        Stock
Splits, Subdivisions or Combinations. If at any time on or after the date hereof the Company shall split, subdivide or otherwise
change its outstanding shares of any securities receivable upon exercise of this Warrant into a greater number of securities, the
Warrant Price in effect immediately prior to such subdivision shall thereby be proportionately reduced and the number of Warrant
Shares shall thereby be proportionately increased; and, conversely, if at any time on or after the date hereof the outstanding
number of shares of any securities receivable upon exercise of this Warrant shall be combined into a smaller number of securities,
the Warrant Price in effect immediately prior to such combination shall thereby be proportionately increased and the number of
Warrant Shares shall thereby be proportionately decreased, all subject to further adjustment as provided in this Section 3.

 

(b)        Reclassification.
If the Company, by reclassification of securities, reorganization of the Company (or any other entity the securities of which are
at the time receivable upon the exercise of this Warrant) or otherwise (including by merger or consolidation), shall change any
of the securities as to which purchase rights under this Warrant exist into the same or a different number of securities of any
other class or classes, this Warrant shall thereafter represent the right to acquire such number and kind of securities as would
have been issuable as the result of such change with respect to the securities that were subject to the purchase rights under this
Warrant immediately prior to such reclassification or other change and the Warrant Price therefor shall be appropriately adjusted,
all subject to further adjustment as provided in this Section 3.

 

     

     

    

 

(c)        No
Impairment. The Company shall not, by amendment of its Certificate of Incorporation or Bylaws, each as amended to date, or
through a 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 to be observed or performed under this Warrant
by the Company, but shall at all times in good faith assist in carrying out the provisions of this Warrant and in taking all such
action as may be necessary or appropriate to protect the Holder’s rights under this Warrant against impairment.

 

(d)        Fractional
Shares. No fractional Warrant Shares shall be issuable upon exercise or conversion of the Warrant and the number of Warrant
Shares to be issued shall be rounded to the nearest whole Warrant Share. If a fractional Warrant Share arises upon any exercise
or conversion of the Warrant, the Company shall eliminate such fractional Warrant Share by paying the Holder an amount computed
by multiplying the fractional interest by the fair market value of a full Warrant Share.

 

4.           No
Voting or Dividend Rights. Nothing contained in this Warrant shall be construed as conferring upon the holder hereof the right
to vote or to consent to receive notice as a stockholder of the Company on any other matters or any rights whatsoever as a stockholder
of the Company. No dividends or interest shall be payable or accrued in respect of this Warrant or the interest represented hereby
or the shares purchasable hereunder until, and only to the extent that, this Warrant shall have been exercised.

 

5.           Shares
to be Fully Paid; Reservation of Shares. The Company covenants and agrees that all Warrant Shares will, upon issuance and payment
of the applicable Warrant Price, be duly authorized, validly issued, fully paid and nonassessable, and free of all preemptive rights,
liens and encumbrances, except for restrictions on transfer provided for herein. The Company shall at all times reserve and keep
available out of its authorized and unissued Common Stock, solely for the purpose of providing for the exercise of the rights to
purchase all Warrant Shares granted pursuant to this Warrant, such number of shares of Common Stock as shall, from time to time,
be sufficient therefor.

 

6.           Exercise
of Warrant. Subject to Section 4, this Warrant may be exercised in whole or in part, at any time, by the surrender of this
Warrant, together with the Notice of Exercise and Investment Representation Statement in substantially the forms attached hereto
as Attachment 1 and Attachment 2, respectively (subject to appropriate revision if this Warrant is adjusted pursuant
to Section 3 hereof), duly completed and executed at the principal office of the Company, and accompanied by payment in full of
the applicable aggregate Warrant Price in cash or by check with respect to the Warrant Shares being purchased. Prior to exercise
of the Warrant, the Holder shall notify the Company of its desire to exercise the Warrant. This Warrant shall be deemed to have
been exercised immediately prior to the close of business on the date of its surrender for exercise as provided above, and the
person or entity entitled to receive the Warrant Shares issuable upon such exercise shall be treated for all purposes as holder
of such shares of record as of the close of business on such date.

 

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7.           Notice
of Proposed Transfer. Prior to any proposed transfer of this Warrant or the Warrant Shares received on the exercise of this
Warrant (together, the “Securities”), unless there is in effect a registration statement under the Securities
Act of 1933, as amended (the “Act”) covering the proposed transfer, the Holder thereof shall give written
notice to the Company of such Holder’s intention to effect such transfer. Each such notice shall describe the manner and
circumstances of the proposed transfer in sufficient detail, and shall, if the Company so requests, be accompanied (except in transactions
in compliance with Rule 144) by either (i) an unqualified written opinion of legal counsel who shall be reasonably satisfactory
to the Company addressed to the Company and reasonably satisfactory in form and substance to the Company’s counsel, to the
effect that the proposed transfer of the Securities may be effected without registration under the Act, or (ii) a “no action”
letter from the Securities and Exchange Commission (the “Commission”) to the effect that the transfer
of such Securities without registration will not result in a recommendation by the staff of the Commission that action be taken
with respect thereto, whereupon the Holder of the Securities shall be entitled to transfer the Securities in accordance with the
terms of the notice delivered by the Holder to the Company; provided, however, no such registration statement or opinion
of counsel shall be necessary for a transfer by a Holder to any affiliate of such Holder. Each certificate evidencing the Securities
transferred as above provided shall bear the appropriate restrictive legend set forth above, except that such certificate shall
not bear such restrictive legend if in the opinion of counsel for the Company such legend is not required in order to establish
compliance with any provisions of the Act.

 

8.           Certificate
of Adjustment. Whenever the Warrant Price or number or type of Warrant Shares issuable upon exercise of this Warrant is adjusted,
as herein provided, the Company shall promptly deliver to the record holder of this Warrant a certificate of the Secretary of the
Company setting forth the nature of such adjustment and a brief statement of the facts requiring such adjustment.

 

9.           Replacement
of Warrants. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of the Warrant, and in the case of any such loss, theft or destruction of the Warrant, on delivery of an indemnity
agreement or security reasonably satisfactory in form and amount to the Company, and reimbursement to the Company of all reasonable
expenses incidental thereto, and upon surrender and cancellation of the Warrant if mutilated, the Company will execute and deliver,
in lieu thereof, a new Warrant of like tenor.

 

10.         Amendment,
Waiver, etc. Except as expressly provided herein, neither this Warrant nor any term hereof may be amended, waived, discharged
or terminated other than by a written instrument signed by the party against whom enforcement of any such amendment, waiver, discharge
or termination is sought; provided, however, that any provisions hereof may be amended, waived, discharged or terminated
upon the written consent of the Company and a Requisite Majority. For purposes hereof, “Requisite Majority”
shall mean Holders of at least a majority of the Warrant Shares then issuable upon exercise of then outstanding warrants of like
tenor to this Warrant issued by the Company (the “Offering Warrants”); provided, however,
that no such amendment or waiver may disproportionately and adversely affect the Holder relative to the holders of all other Offering
Warrants without the Holder’s consent. Any amendment effected in accordance with this Section shall be binding upon all holders
of the Offering Warrants, each future holder of the Offering Warrants, and the Company. By acceptance hereof, the Holder acknowledges
that in the event the required consent is obtained, any term of this Warrant may be amended or waived with or without the consent
of the Holder.

 

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11.         Successors
and Assigns. This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors
of the Company and the successors and assigns of the Holder. The provisions of this Warrant are intended to be for the benefit
of all Holders from time to time of this Warrant, and shall be enforceable by any such Holder.

 

12.         Severability.
In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will
attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor,
and upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

13.         Miscellaneous.
This Warrant shall be governed by the laws of the State of New York as such laws are applied to contracts to be entered into and
performed entirely in New York. The headings in this Warrant are for purposes of convenience and reference only, and shall not
be deemed to constitute a part hereof.

 

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ISSUED this ____ day of _____________.

 

	 	[Avenue Therapeutics, Inc.]
	 	 
	 	By:	 
	 	 	Lucy Lu, MD
	 	 	Interim President and CEO

 

     

     

    

 

Attachment 1

 

NOTICE OF EXERCISE

 

TO:        Avenue Therapeutics, Inc.

 

1.          The
undersigned hereby elects to purchase _____________ shares of __________ of Avenue Therapeutics, Inc. (the “Warrant Shares”)
pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price in full, together with all applicable
transfer taxes, if any.

 

2.          Please
issue a certificate or certificates representing said number of Warrant Shares in the name of the undersigned or in such other
name as is specified below:

 

	 	 	 
	 	(Name)	 
	 	 	 
	 	(Address)	 

 

	 	 	 
	 	 	 
	(Date)	 	(Name of Warrant Holder)
	 	 	 
	 	 	By: 	 
	 	 	 
	 	 	Title: 	 

 

     

     

    

  

Attachment 2

INVESTMENT REPRESENTATION STATEMENT

 

Shares of _________ of

Avenue Therapeutics, Inc.

 

In connection with the purchase of the shares
of __________ of Avenue Therapeutics, Inc., the undersigned hereby represents to Avenue Therapeutics, Inc. (the “Company”)
as follows:

 

(A)         The
undersigned is an accredited investor (as defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933,
as amended (the “Act”)). The undersigned acknowledges that an investment in the Company is highly speculative and represents
that it is able to fend for itself in the transactions contemplated by this Statement, has such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of its investments, and has the ability to bear the economic
risks (including the risk of a total loss) of its investment. The undersigned represents that it has had the opportunity to ask
questions of the Company concerning the Company’s business and assets and to obtain any additional information which it considered
necessary to verify the accuracy of or to amplify the Company’s disclosures, and has had all questions which have been asked
by it satisfactorily answered by the Company.

 

(B)         The
undersigned understands that no liquid public market now exists for the securities being issued by the Company and that the Company
has made no assurances that a public market will ever exist for the Company’s securities being obtained hereby.

 

(C)         The
undersigned understands that the securities issued upon exercise of the Warrant (the “Securities”), and any securities
issued in respect thereof or exchange therefor, may bear the following legend:

 

“THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY STATE SECURITIES
LAWS, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH
ACT AND ANY APPLICABLE STATE SECURITIES LAWS COVERING SUCH SECURITIES OR THE SALE IS MADE IN ACCORDANCE WITH AN EXEMPTION UNDER
THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS, AND THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES
REASONABLY SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAWS.”

 

(D)         By
executing this Statement, the undersigned further represents that it does not have any contract, undertaking, agreement or arrangement
with any person to sell, transfer or grant participation to such person or to any third person, with respect to any Securities
issuable upon exercise of the Warrant.

 

     

     

    

 

(E)         The
undersigned understands that the Securities issuable upon exercise of the Warrant at the time of issuance and exercise may not
be registered under the Act, and applicable state securities laws, on the ground that the issuance of such securities is exempt
pursuant to Section 4(2) of the Act and state law exemptions relating to offers and sales not by means of a public offering, and
that the Company’s reliance on such exemptions is predicated on the undersigned’s representations set forth herein.

 

(F)         The
undersigned agrees that in no event will it make a disposition of any Securities acquired upon the exercise of the Warrant unless
and until (i) it shall have notified the Company of the proposed disposition and shall have furnished the Company with a statement
of the circumstances surrounding the proposed disposition, and (ii) if reasonably required by the Company it shall have furnished
the Company with an opinion of counsel reasonably satisfactory to the Company and Company’s counsel to the effect that (A)
appropriate action necessary for compliance with the Act and any applicable state securities laws has been taken or an exemption
from the registration requirements of the Act and such laws is available, and (B) the proposed transfer will not violate any of
said laws.

 

(G)        The undersigned acknowledges that
the Securities issuable upon exercise of the Warrant must be held indefinitely unless subsequently registered under the Act or
an exemption from such registration is available. The undersigned is aware of the provisions of Rule 144 promulgated under the
Act which permit limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions, including,
among other things, the existence of a public market for the shares, the availability of certain current public information about
the Company, the resale occurring not less than one year after a party has purchased and paid for the security to be sold, the
sale being through a “broker’s transaction” or in transactions directly with a “market makers” (as
provided by Rule 144(f)) and the number of shares being sold during any three-month period not exceeding specified limitations.

 

[Signature
on Next Page]

 

     

     

    

  

	Dated:	 	 
	 	 
	 	 
	(Print Name of Holder)	 
	 	 
	By:	 	 
	 	(signature)	 
	 	 
	Name:	 	 
	 	(print name of person signing)	 
	 	 
	Title:Exhibit 10.2

 

FOUNDERS AGREEMENT

 

THIS FOUNDERS AGREEMENT
(this “Agreement”) is effective as of February 17, 2015 (the “Effective Date”) by and between Fortress
Biotech, Inc., a Delaware corporation (the “Founder”), and Avenue Therapeutics, Inc. (the “Company”).

 

WHEREAS, Founder formed
Company on February 9, 2015, for the purpose of acquiring, licensing, developing and commercializing specialty pharmaceutical products
(the “Business”);

 

WHEREAS, Founder has
identified or has acquired certain assets (the “Assets”) that will allow Company to carry out the Business and Founder
is willing to assign and contribute its interest in the Assets to Company under the terms and conditions of this Agreement;

 

NOW, THEREFORE, in
consideration of the mutual representations, warranties, covenants and agreements contained in this Agreement, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

		1.1	Assignment of Founders Rights in Assets. Founder has negotiated the right to acquire or
license the Assets and hereby agrees to assign all of its right, title and interest in the Assets, including without limitation,
the Founder contributing, assigning, transferring and delivering to Company on the Effective Date the Assets set forth on Schedule
A, free and clear of all liens.

 

		1.2	In exchange for the consideration contained in paragraphs 1.1:

 

		(a)	Founder shall receive 7,000,000 shares of Class A Common Stock of
the Company and 1,000,000 shares of Common Stock of the Company;

 

		(b)	Company shall assume all of Founder’s liabilities, obligations, rights, title and interest
in that certain indebtedness described on Schedule B (the “Indebtedness”);

 

		(c)	Founder shall receive an annual equity fee payable in shares of Common Stock, such that on an annual
basis on the anniversary of this Agreement, the Company shall issue the Founder shares of Common Stock of the Company equal to
two and a half percent (2.5%) of the fully-diluted outstanding equity of the Company at the time of issuance; and

 

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		(d)	Founder shall receive an equity fee payable in shares of Common
Stock equal to two and a half percent (2.5%) of the gross amount of any equity or debt
financing, payable within five (5) business days of the closing of any equity or debt financing
for the Company or any of its respective subsidiaries that occurs after the date hereof and ending on the date when Founder no
longer has majority voting control in Company’s voting equity. In calculating the number of shares payable hereunder, in
the case of an equity financing, the number of shares issuable will be based on the share price of the equity in such round; and
(ii) in the case of a debt financing, the number of shares issuable will be based on the closing price of the common shares of
the company on the day prior to the closing of the debt financing or if not publicly-traded, the price of the common shares in
the last equity financing.

 

		(e)	In the event of a Change in Control, Founder shall receive a one-time change in control fee equal
to five times the product of (i) monthly Net Sales (defined below) for the twelve (12) months immediately preceding the Change
in Control and (ii) 4.5%.

 

For purposes
of this Agreement, “Change of Control” shall mean the occurrence of any of the following events:

 

(i)during
any consecutive 12-month period, individuals who, at the beginning of such period, constitute the board of directors of the Company
(the “Incumbent Directors”) cease for any reason to constitute at least a majority of such Board, provided that any
person becoming a director after the beginning of such 12-month period and whose election or nomination for election was approved
by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent Director; provided,
however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened
election contest with respect to the election or removal of directors (“Election Contest”) or other actual or threatened
solicitation of proxies or consents by or on behalf of any “person” (as such term is defined in Section 3(a)(9) of
the Securities Exchange Act of 1934 (the “1934 Act”) and as used in Section 13(d)(3) and 14(d)(2) of the 1934 Act)
other than the Board (“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election
Contest or Proxy Contest, shall be deemed an Incumbent Director;

 

(ii)any
person becomes a “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of either
(A) 35% or more of the then-outstanding shares of common stock of the Company (“Company Common Stock”) or (B) securities
of the Company representing 35% or more of the combined voting power of the Company’s then-outstanding securities eligible
to vote for the election of directors (the “Company Voting Securities”); provided, however, that for
purposes of this subsection (ii), the following acquisitions of Company Common Stock or Company Voting Securities shall not constitute
a Change of Control: (i) an acquisition directly from the Company, (ii) an acquisition by the Company or any corporation, limited
liability company, partnership or other entity of which a majority of the outstanding voting stock or voting power is beneficially
owned directly or indirectly by the Company (a “Subsidiary”), (iii) an acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any Subsidiary, or (iv) an acquisition pursuant to a Non-Qualifying Transaction
(as defined in subsection (iii) below);

 

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(iii)
the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction
involving the Company or a subsidiary (a “Reorganization”), or the sale or other disposition of all or substantially
all of the Company’s assets (a “Sale”) or the acquisition of assets or stock of another corporation or other
entity (an “Acquisition”), unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially
all of the individuals and entities who were the beneficial owners, respectively, of the outstanding Company Common Stock and outstanding
Company Voting Securities immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly or indirectly,
more than 35% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such
Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result of such transaction owns the Company
or all or substantially all of the Company’s assets or stock either directly or through one or more subsidiaries, the “Surviving
Entity”) in substantially the same proportions as their ownership, immediately prior to such Reorganization, Sale or Acquisition,
of the outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and (B) no person (other
than (x) the Company or any Subsidiary, (y) the Surviving Entity or its ultimate parent entity, or (z) any employee benefit plan
(or related trust) sponsored or maintained by any of the foregoing) is the beneficial owner, directly or indirectly, of 35% or
more of the total common stock or 35% or more of the total voting power of the outstanding voting securities eligible to elect
directors of the Surviving Entity, and (C) at least a majority of the members of the board of directors of the Surviving Entity
were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such
Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the criteria specified in (A),
(B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or

 

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(iv) approval
by the stockholders of the Company of a complete liquidation or dissolution of the Company.

 

		(f)	Founder shall receive a cash fee equal to four percent (4.5%) of annual Net Sales, payable on an
annual basis, within 90 days of the end of each calendar year. For purposes of this Agreement, “Net Sales” shall mean
the gross amount invoiced or otherwise charged by Company, its Affiliates and Licensees (“Selling Party”)
to third parties in arm’s length transactions for sales of any Product during a calendar year, less:

 

(i)           Normal
and customary trade, quantity, cash and discounts and credits allowed and taken;

 

(ii)          Discounts,
refunds, rebates, chargebacks, retroactive price adjustments, and any other allowances given and taken which effectively reduce
the net selling price (other than such which have already diminished the gross amount invoiced such as those outlined in Section
1.2(e)(i) above), including, without limitation, Medicaid rebates, institutional rebates or volume discounts;

 

(iii)         Product
returns and allowances granted to such third party;

 

(iv)         Administrative
fees paid to group purchasing organizations (e.g., Medicare) and government-mandated rebates;

 

(v)          Shipping,
handling, freight, postage, insurance and transportation charges, but all only to the extent included as a separate line item in
the gross amount invoiced;

 

(vi)         Any
tax, tariff or duties imposed on the production, sale, delivery or use of the Product, including, without limitation, sales, use,
excise or value added taxes and customs and duties, but all only to the extent included as a separate line item (e.g., “taxes”)
in the gross amount invoiced; and

 

(vii)        Bad
debt actually written off during the accounting period, as reported by the Selling Party in accordance with GAAP, applied on a
consistent basis (provided, that any bad debt write-off so taken which is later reversed shall be added back to Net Sales in the
accounting period in which the reversal occurs.)

 

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Products are considered “sold”
when billed out or invoiced or, in the event such Products are not billed out or invoiced, when the consideration for sale of the
Products is received. If a sale, transfer or other disposition with respect to Products involves consideration other than cash
or is not at arm’s length, then the Net Sales from such sale, transfer or other disposition shall be calculated from the
average selling price for such Product during the calendar quarter in the country where such sale, transfer or disposition took
place. Notwithstanding the foregoing, Net Sales shall not include, and shall be deemed zero with respect to, (i) Products used
by Company, its Affiliates, or Licensees for their internal use, (ii) the distribution of promotional samples of Products provided
free of charge, (iii) Products provided for clinical trials or research, development, or evaluation purposes, or (iv) sales of
Products among Company and its Licensees and their respective Affiliates for resale.

 

“Product”
means any product, (i) owned by Company or (ii) exclusively licensed to Company. “License” means granting a third party
or Affiliate a right to make, have made, use, offer for sale, sell or import a Product.

 

“Licensee”
means a person or entity granted a License.

 

Reports;
Audits:

 

(A)          Within
ninety (90) days following the last day of each calendar year, Company shall provide to Founder a written statement (i) stating
(as applicable) the aggregate Net Sales, by country, of each Product sold during the relevant calendar year by Company, its Affiliates
and Licensees, and (ii) detailing the calculation of amounts due pursuant to Section 1.2(e) for such calendar year.

 

(B)          Company
shall keep or cause to be kept such records as are reasonably required to determine the amounts due under this Agreement; such
records must be kept for a minimum of three (3) years following the calendar year to which such records pertain. At the request
(and expense) of Founder, Company shall permit Founder to engage an independent certified public accounting firm reasonably acceptable
to Company, at reasonable times not more than once a year and upon reasonable notice, to examine only those records as may be necessary
to determine, with respect to any calendar year ending not more than three (3) years prior to Founder’s request, the correctness
or completeness of any payment made under this Agreement. Founder shall promptly provide a copy of the results of any such audit
or examination to Company. Founder shall bear the full cost of the performance of any such audit or examination, unless such audit
or examination discloses an underpayment exceeding ten percent (10%) of the amount actually due hereunder with respect to any particular
calendar year, in which case Company shall bear the reasonable, documented cost of the performance of such audit or examination.
Company shall promptly pay to Founder the amount of any underpayment of royalties revealed by such an examination and review. Any
overpayment by Company revealed by an examination and review shall be refunded to Company within thirty (30) calendar days of its
request.

 

2.            Representations
and Warranties of the Parties. Each of the parties
hereto hereby represents and warrants to the other as follows:

 

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2.1           Each
party may execute, deliver, and perform this Agreement without the necessity of obtaining any consent, approval, authorization,
registration, filing, or waiver or giving any notice, other than those already obtained;

 

2.2           This
Agreement has been duly authorized by all necessary actions of the party
and constitutes the legal, valid, and binding obligation of such party; and

 

2.3           Each
party has the full right, power, and authority to enter
into this Agreement and to consummate the transactions contemplated hereby.

 

3.            Notices.
All notices hereunder must be in writing and will be deemed to have been duly given upon receipt of hand delivery, upon electronic
transmission with confirmation of receipt, or upon receipt of registered mail, return receipt requested, addressed to the address
set forth for each party, respectively, on the signature page of this Agreement or to such other address as may be designated
by written notice.

 

4.            Entire
Agreement. This Agreement constitutes the entire agreement of the parties with respect to the transactions contemplated
herein. All prior agreements among the parties concerning the subject matter hereof, whether written or oral, are merged herein
and shall be of no force or effect. This Agreement cannot be altered, modified, or discharged orally but only by an agreement in
writing.

 

5.            Benefit.
This Agreement shall be binding upon and shall inure to the benefit of the parties, their legal representatives, and assigns.

 

6.            Severability.
If any provision contained in this Agreement is or becomes invalid, illegal, or unenforceable in any respect, the validity, legality,
and enforceability of the remaining provisions contained herein will not in any way be affected or impaired thereby.

 

7.            Further
Assurances. The parties hereby agree to execute and deliver such further instruments and do such further acts as may be
required to carry out the intent and purposes of this Agreement.

 

8.            Counterparts.
This Agreement may be executed separately by each party in multiple originals, and each original of this Agreement separately
executed by one party, when assembled with one or more copies of this Agreement separately executed by the other parties, shall
be and constitute a fully executed original of this Agreement.

 

9.            Survival.
All representations and warranties made herein by the parties will survive the execution of this Agreement.

 

10.          Governing
Law. This Agreement shall be governed by and construed in accordance with the substantive laws of the state of New York,
without giving effect to any choice of law or conflict of law provision or rule that would cause the application of the laws of
any jurisdiction other than the state of New York.

 

    	 	6	 

     

    

  

IN WITNESS WHEREOF,
this Agreement has been duly executed by the parties effective for all purposes as of the date first written above.

  

	FORTRESS BIOTECH, INC.	 
	 	 
	By:	/s/ Lindsay A. Rosenwald	 
	Name:	Lindsay A. Rosenwald	 
	Title:	Chief Executive Officer	 

  

	Address for Notice:	 
	 	 	 
	 	 	 

 

	AVENUE THERAPEUTICS, INC.	 
	 	 
	By:	/s/ Lucy Lu	 
	Name:	Lucy Lu	 
	Title:	Interim CEO	 

 

	Address for Notice:	 
	 	 	 
	 	 	 

 

    	 	7	 

     

    

  

SCHEDULE A

 

As used herein, “Assets” shall
mean the following assets, properties, rights and claims of Founder used or held for use in the Business, or relating to or arising
from the conduct of the Business.

 

		1.	License Agreement, dated as of February 17, 2015, by and between Fortress Biotech, Inc. and Revogenex
Ireland Ltd.

 

    	 	Schedule A-1	 

     

    

  

SCHEDULE B

 

Indebtedness

 

		1.	Promissory Note, with an issuance date of February, 17, 2015, issued by Avenue Therapeutics, Inc. to the order of NSC Biotech
Venture Fund I, LLC.

 

    	 	Schedule B-1

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