Document:

EXHIBIT 10.2

 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES
LAWS OF ANY STATE REPRESENTED THEREBY, AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED
UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS THE CORPORATION HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION
AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.

 

 

CAPSTONE THERAPEUTICS CORP.

 

WARRANT TO PURCHASE COMMON STOCK

 

	Warrant No. 1	 	January 30, 2018

 

Void after October 15, 2025.

 

 

THIS CERTIFIES THAT, for value received, the
receipt and sufficiency of which are hereby acknowledged, BP Peptides, LLC, a Delaware limited liability company, or its registered
assigns (as the case may be, the “Holder”), is entitled, subject to the terms and conditions set forth herein,
to purchase from Capstone Therapeutics Corp., a Delaware corporation (the “Company”), up to six million, three
hundred and twenty-one thousand, nine hundred and thirty (6,321,930) (the “Warrant Number”) duly authorized,
validly issued, fully-paid and non-assessable shares (the “Warrant Shares”) of the Company’s Common Stock,
par value $.0005 per share (the “Warrant Stock”), subject to adjustment as provided herein, at a purchase price
equal to $.075 per share (the “Exercise Price”), subject to adjustment as provided herein. The term “Warrant”
as used herein shall mean this warrant, and any warrants delivered in substitution or exchange therefor as provided herein.

 

The following is a statement of the rights of
the Holder and the conditions to which this Warrant is subject, and to which the Company and the Holder hereof, by the acceptance
of this Warrant, agrees:

 

1.                 
Term of Warrant.

 

(a)               
Subject to the terms and conditions set forth herein, this Warrant shall be exercisable as to those Warrant Shares that
have vested as set forth below (the "Vested Warrant Shares"), in whole or in part, commencing on the date hereof and
ending on October 15, 2025 (subject to extension as provided below, the “Exercise Period”); provided, however,
that in the event that the expiration date of this Warrant shall fall on a Saturday, Sunday or United States federally recognized
holiday, the expiration date for this Warrant shall be extended to the first business day following such Saturday, Sunday or recognized
holiday. The Warrant Shares shall vest quarterly in accordance with the schedule set forth on Schedule 1 hereto, with all such
Warrant Shares being fully vested on October 15, 2020. Notwithstanding the foregoing, in the event of a Deferred Interest Repayment
(as defined in Article 8 below), then all vesting shall immediately terminate and lapse as to any Warrant Shares that have not
yet vested, and none of such Warrant Shares shall become Vested Warrant Shares.

 

    

     

    

 

(b)              
Anything to the contrary notwithstanding, however, in no event may this Warrant be exercised if and to the extent that such
exercise would be inconsistent with or constitute a violation of the Company's Tax Benefit Preservation Plan, as amended or modified
from time to time.

 

2.                 
Exercise of Warrant.

 

(a)               
Manner of Exercise. This Warrant may be exercised by the Holder, in whole or in part, at any time and from
time to time during the Exercise Period as to the Vested Warrant Shares, by (i) the surrender of this Warrant to the Company, with
the Notice of Exercise attached hereto as Annex A duly completed and executed on behalf of the Holder, at the principal
office of the Company or such other office or agency of the Company as it may designate by notice in writing to the Holder (the
“Principal Office”), and (ii) the delivery of payment to the Company of the Exercise Price for the number of
Warrant Shares specified in the Notice of Exercise in any manner specified in this Section 2.

 

(b)              
Issuance of Warrant Shares. The Warrant Shares issuable upon any exercise of this Warrant shall be deemed
to be issued to the Holder as the record holder of such Warrant Shares as of the close of business on the date on which this Warrant
shall have been surrendered and payment made for such Warrant Shares as aforesaid. As promptly as practicable thereafter, but in
any event within twenty (20) days, the Company shall deliver to the Holder, at the Company’s expense, a stock certificate
or certificates for the Warrant Shares specified in the Notice of Exercise. If this Warrant shall have been exercised only in part,
the Company shall, at the time of delivery of the stock certificate or certificates, also deliver to the Holder, at the Company’s
expense, a new Warrant evidencing the right to purchase the remaining number of Warrant Shares, which new Warrant shall in all
other respects be identical to this Warrant.

 

(c)               
Payment of Exercise Price. The Exercise Price shall be payable in cash or its equivalent, payable by wire
transfer of immediately available funds to a bank account specified by the Company or by certified or bank cashiers’ check
in lawful money of the United States of America.

 

(d)              
Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. In lieu of any fractional share to which the Holder would otherwise be entitled, the Company shall make a cash
payment equal to the product of such fraction multiplied by the Fair Market Value of one Warrant Share as of the date of exercise.

 

3.                 
Exchange and Replacement.

 

(a)               
Manner of Exchange and Replacement. This Warrant is exchangeable, upon surrender of the Warrant by the Holder
to the Company at the Principal Office, for new Warrants of like tenor registered in the Holder’s name and representing in
the aggregate the right to purchase the same number of Warrant Shares purchasable hereunder, each of such new Warrants to represent
the right to purchase such number of Warrant Shares as shall be designated by the Holder at the time of surrender.

 

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(b)              
Issuance of New Warrant. Upon receipt by the Company of (i) evidence reasonably satisfactory to it of the
loss, theft, destruction or mutilation of this Warrant and (ii) (A) in the case of loss, theft or destruction, an indemnity agreement
reasonably satisfactory in form and substance to the Company or (B) in the case of mutilation, this Warrant, the Company, at its
expense, shall execute and deliver, in lieu of this Warrant, a new Warrant of like tenor and amount.

 

4.                 
Rights of Stockholders. The Holder shall not be entitled to vote
or receive dividends or be deemed the holder of the Warrant Shares or any other securities of the Company that may at any time
be issuable upon the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder,
as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any other
matter submitted to the stockholders of the Company at any meeting thereof, or to give or withhold consent to any corporate action
(whether upon any recapitalization, issuance or reclassification of capital stock, change of par value, or change of stock to no
par value, consolidation, merger, conveyance or otherwise) or to receive notice of meetings, or to receive dividends or subscription
rights or otherwise until the Warrant shall have been exercised as provided herein.

 

5.                 
ADJUSTMENTs. The Exercise Price and the Warrant Number shall be
subject to adjustment from time to time as provided in this Section 5.

 

(a)               
Reclassification, etc. If the Company, at any time while this Warrant, or any portion hereof, remains outstanding
and unexpired by reclassification of securities or otherwise, 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 Exercise Price therefor shall be appropriately adjusted, all subject to further adjustment as provided
in this Section 5.

 

(b)              
Split, Subdivision or Combination (Reverse Split) of Shares. If the Company at any time while this Warrant,
or any portion hereof, remains outstanding and unexpired shall split, subdivide or combine (in a reverse-split or otherwise) the
securities as to which purchase rights under this Warrant exist, into a different number of securities of the same class, then
(i) in the case of a split or subdivision, the Exercise Price for such securities shall be proportionately decreased and the Warrant
Number shall be proportionately increased, and (ii) in the case of a combination (in a reverse-split or otherwise), the Exercise
Price for such securities shall be proportionately increased and the Warrant Number shall be proportionately decreased.

 

(c)               
Mergers or Consolidations.  If at any time there shall be a merger or consolidation of the Company with or
into another corporation, provision shall be made so that the Warrant Holder shall thereafter be entitled to receive upon exercise
of this Warrant, during the period specified in this Warrant and upon payment of the Exercise Price, the number of Equity Securities
or other securities or property of the Company or the successor corporation resulting from such merger or consolidation to which
a holder of the Warrant Shares deliverable upon exercise of this Warrant would have been entitled under the provisions of the agreement
in such merger or consolidation if this Warrant had been exercised immediately before such merger or consolidation occurs. In any
such case, appropriate adjustment (as determined in good faith by the Board) shall be made in the application of the provisions
of this Warrant with respect to the rights and interests of the Warrant Holder after the merger or consolidation to the end that
the provisions of this Warrant (including adjustment of the Exercise Price then in effect and the Warrant Number) shall be applicable
after that event, as near as reasonably may be, in relation to any shares or other property deliverable after that event upon exercise
of this Warrant.

 

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(d)              
Certificate as to Adjustment.

 

(i)                
As promptly as reasonably practicable following any adjustment of the Exercise Price, but in any event not later than 20
business days thereafter, the Company shall furnish to the Holder a certificate of an executive officer setting forth in reasonable
detail such adjustment and the facts upon which it is based and certifying the calculation thereof.

 

(ii)              
As promptly as reasonably practicable following the receipt by the Company of a written request by the Holder, but in any
event not later than ten Business Days thereafter, the Company shall furnish to the Holder a certificate of an executive officer
certifying the Exercise Price then in effect and the number of Warrant Shares or the amount, if any, of other shares of stock,
securities or assets then issuable upon exercise of the Warrant.

 

6.                 
Transfer of Warrant.

 

(a)               
Non-Transferability. This Warrant may not be assigned or transferred without the prior written consent of
the Company. In the event that the Company agrees to such transfer, and subject to the further restrictions on transfer set forth
in subsection (b) of this Section 6, this Warrant may be transferred by the Holder by (i) surrender of this Warrant to the Company,
with the Assignment Form attached hereto as Annex B duly completed and executed on behalf of the Holder, at the Principal
Office, and (ii) delivery of funds sufficient to pay any transfer tax arising as a result of such transfer. As promptly as practicable
thereafter, but in any event within ten (10) days, the Company shall execute and deliver, at the Company’s expense, a new
Warrant registered in the name of the assignee, and for the number of Warrant Shares, specified in the Assignment Form, which new
Warrant shall in all other respects be identical to this Warrant. If this Warrant shall have been transferred only in part, the
Company shall, at the time of delivery of the new Warrant to the assignee, also deliver to the Holder, at the Company’s expense,
a new Warrant evidencing the right to purchase the remaining number of Warrant Shares, which new Warrant shall in all other respects
be identical to this Warrant.

 

(b)              
Compliance with Securities Laws.

 

(i)                
The Holder of this Warrant, by acceptance hereof, acknowledges that, in addition to the requirements set forth above, the
transfer of this Warrant and the Warrant Shares, and the exercise of this Warrant, is subject to the Holder’s compliance
with the provisions of the Securities Act and any applicable state securities laws in respect of any such transfer.

 

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(ii)              
The certificate or certificates representing any Warrant Shares acquired upon exercise of this Warrant, and any securities
issued in respect of such Warrant Shares upon the conversion thereof or any stock split, stock dividend, recapitalization, merger,
consolidation or similar event, shall be stamped or otherwise imprinted with the following legend (unless such a legend is no longer
required under the Securities Act):

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE REPRESENTED HEREBY, AND MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS THE CORPORATION
HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.

 

7.                 
Notices.

 

(a)               
Events Requiring Notice to Holder.  In the event of (i) any taking by the Company of a record of the holders
of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividends or other
distribution, or any right to subscribe for, purchase or otherwise acquire any Equity Securities or other property; (ii) any capital
reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company, or any other merger
or consolidation of the Company; or (iii) any voluntary or involuntary dissolution, liquidation, winding up or bankruptcy of the
Company (each, a “Record Event”), then and in each such Record Event, the Company shall give the Holder a notice
specifying (A) the date on which any such record is to be taken for the purpose of such dividend, distribution or right and a description
of such dividend, distribution or right; (B) the date on which any such reorganization, reclassification, recapitalization, merger,
consolidation, dissolution, liquidation, winding up or bankruptcy is expected to become effective; and (C) the time, if any, that
is to be fixed as to when the holders of record of Common Stock, Warrant Stock or other Equity Securities shall be entitled to
exchange their shares of Common Stock, Warrant Stock or other Equity Securities for cash, securities or other property deliverable
upon such reorganization, reclassification, recapitalization, merger, consolidation, dissolution, liquidation, winding up or bankruptcy.
In each such Record Event, the notice required by this Section 7(a) shall be delivered at least fifteen (15) days prior to the
date specified in such notice; provided, however, that neither the failure to give such notice nor any defect therein shall affect
the legality or validity of the proceedings described in clauses (i) through (iii) hereof.

 

(b)              
Manner of Notice. Whenever a notice is required to be given to the Holder pursuant to this Warrant (including,
without limitation, any notice required by Section 8(a) above), such notice shall be delivered to the Holder’s address of
record as shown on the books of the Company and shall be deemed effectively given upon the earlier of actual receipt or: (i) personal
delivery to Holder, (ii) when sent, if sent by electronic mail or facsimile during normal business hours of the Holder, and if
not sent during normal business hours, then on the Holder’s next business day, (iii) five (5) days after having been sent
by registered or certified mail, return receipt requested, postage prepaid, or (iv) one (1) business day after deposit with a nationally
recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt.

 

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8.                 
DEFINITIONS. The following definitions shall apply for all purposes of this Warrant:

 

(a)               
“Board” shall mean the Board of Directors of the Company.

 

(b)              
“Deferred Interest Repayment" shall mean the payment by the Company to the Buyer (as defined in the Loan
Agreement) of all accrued but unpaid interest on the Loan (as defined in the Loan Agreement) accrued through the date of such payment,
and the agreement in writing by the Company to make the remaining payments of interest quarterly in the manner specified in the
Original Loan Agreement.

 

(c)               
“Equity Securities” shall mean (i) any Common Stock or other capital stock of the Company, (ii) any security
convertible, with or without consideration, into any Common Stock or other capital stock of the Company (including any option,
warrant or other right to subscribe for or purchase such a security), (iii) any security carrying any option, warrant or other
right to subscribe for or purchase any Common Stock or other capital stock of the Company, or (iv) any such option, warrant or
other right.

 

(d)              
"Loan Agreement" shall mean the Original Loan Agreement, as amended by that certain First Amendment to
Securities Purchase, Loan and Security Agreement, dated as of January 30, 2018.

 

(e)               
"Original Loan Agreement" shall mean that certain Securities Purchase, Loan and Security Agreement, dated
as of July 14, 2017, by and between the Company and BP Peptides, LLC.

 

(f)               
“Person” shall mean any individual, corporation, partnership, trust, limited liability company, association
or other entity.

 

(g)              
“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder.

 

9.                 
Miscellaneous.

 

(a)               
Governing Law. This Warrant and any controversy arising out of or relating to this Warrant shall be governed
by and construed in accordance with the General Corporation Law of the State of Delaware as to matters within the scope thereof,
and as to all other matters shall be governed by and construed in accordance with the internal laws of the State of Delaware, without
regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

 

(b)              
Prevailing Party’s Costs and Expenses. If any action at law or in equity (including arbitration) is
necessary to enforce or interpret the terms of this Warrant, the prevailing party shall be entitled to recover from the non-prevailing
party all costs and expenses, reasonable attorneys’ fees, incurred in such action, in addition to any other relief to which
such party may be entitled.

 

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(c)               
Delays or Omissions. Except where a time period is specified, no delay on the part of any party in the exercise
of any right, power, privilege or remedy hereunder shall operate as a waiver thereof, nor shall any exercise or partial exercise
of any such right, power, privilege or remedy preclude any further exercise thereof or the exercise of any other right, power,
privilege or remedy.

 

(d)              
Amendment and Waiver. No provision of this Warrant may be amended, modified or waived except upon the written
consent of the party against whom such amendment, modification or waiver is to be enforced. The failure of any party to enforce
any of the provisions of this Warrant shall in no way be construed as a waiver of such provisions and shall not affect the right
of such party thereafter to enforce each and every provision of this Warrant in accordance with its terms.

 

(e)               
Binding Effect. This Warrant shall be binding upon and inure to the benefit of all of the parties and, to
the extent permitted by this Warrant, their successors, legal representatives and assigns.

 

(f)               
Severability. In the event one or more of the provisions of this Warrant should, for any reason, be held to
be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other
provisions of this Warrant, and this Warrant shall be construed as if such invalid, illegal or unenforceable provision had never
been contained herein.

 

(g)              
Construction. Whenever the context requires, the gender of any word used in this Warrant includes the masculine,
feminine or neuter, and the number of any word includes the singular or plural. Unless the context otherwise requires, all references
to articles and sections refer to articles and sections of this Warrant, and all references to schedules are to schedules attached
hereto, each of which is made a part hereof for all purposes.

 

(h)              
Headings. The headings and subheadings in this Warrant are included for convenience and identification only
and are in no way intended to describe, interpret, define or limit the scope, extent or intent of this Warrant or any provision
hereof.

 

 

[remainder of page intentionally left blank]

 

 

 

 

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IN WITNESS WHEREOF, the Company has executed
this Warrant as of the date first above stated.

 

 

	 	 	CAPSTONE THERAPEUTICS CORP.
	 	 	 
	 	 	By: /s/ John M. Holliman, III
	 	 	Name: John M. Holliman, III
	 	 	Its: Executive Chairman

 

 

 

 

 

 

 

 

 

 

    

     

    

ANNEX A

 

NOTICE OF EXERCISE

 

To:          CAPSTONE THERAPEUTICS CORP. (the “Company”)

 

1.                 
The undersigned hereby elects to purchase _______________ Warrant Shares pursuant to the terms of the attached Warrant,
and tenders herewith payment of the purchase price for such shares in cash, together with all applicable transfer taxes, if any:

 

2.                 
In exercising this Warrant, the undersigned hereby confirms and acknowledges that the Warrant Shares to be issued upon exercise
are being acquired solely for the account of the undersigned and not as a nominee for any other party, or for investment, and that
the undersigned will not offer, sell or otherwise dispose of any such Warrant Shares except under circumstances that will not result
in a violation of the registration provisions of the Securities Act of 1933, as amended, or any applicable state securities laws.

 

 

	 	 	HOLDER: 	 
	 	 	 
	 	 	 
	Date:  	                        	 	By: 	 
	 	 	Name: 	 
	 	 	Title:	 

 

 

 

 

 

 

    

     

    

ANNEX B

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED, the undersigned registered
owner of this Warrant hereby sells, assigns and transfers unto the Assignee named below all of the rights of the undersigned under
the within Warrant, with respect to the number of Warrant Shares set forth below:

 

 

	Name of Assignee	Address	No of 

    Shares

 

 

 

 

 

 

and does hereby irrevocably constitute and appoint __________________
Attorney to make such transfer on the books of CAPSTONE THERAPEUTICS CORP., maintained for the purpose, with full power of substitution
in the premises.

 

The Assignee represents that, by its acceptance
hereof, the Assignee acknowledges that this Warrant and the Warrant Shares to be issued upon exercise hereof are being acquired
for investment and that the Assignee will not offer, sell or otherwise dispose of this Warrant or any Warrant Shares to be issued
upon exercise hereof except under circumstances that will not result in a violation of the registration provisions of the Securities
Act of 1933, as amended, or any applicable state securities laws.

 

	Dated: 	 	 	 
	 	 	 
	 	 	HOLDER: 	 
	 	 	 
	 	 	By: 	                                                     
	 	 	Name:	 
	 	 	Title:	 
	 	 	 
	 	 	ASSIGNEE:  	 
	 	 	 
	 	 	By: 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 

  

 

 

    

     

    

SCHEDULE 1

 

WARRANT COMMON SHARES AND WARRANT VESTING

 

 

	 	 	UNDERLYING	 
	 	 	WARRANT	WARRANT
	INTEREST 	INTEREST 	COMMON	VESTING
	DUE DATE	AMOUNT	SHARES	DATE
	 	 	 	 
	10/15/2017	 $      37,110.82	             494,811	1/30/2018
	1/15/2018	 $      36,711.78	             489,490	1/30/2018
	4/15/2018	 $      35,913.70	             478,850	4/15/2018
	7/15/2018	 $      36,312.74	             484,170	7/15/2018
	10/15/2018	 $      36,711.78	             489,490	10/15/2018
	1/15/2019	 $      36,711.78	             489,491	1/15/2019
	4/15/2019	 $      35,913.70	             478,849	4/15/2019
	7/15/2019	 $      36,312.74	             484,170	7/15/2019
	10/15/2019	 $      36,711.78	             489,490	10/15/2019
	1/15/2020	 $      36,695.43	             489,272	1/15/2020
	4/15/2020	 $      36,213.52	             482,847	4/15/2020
	7/15/2020	 $      36,213.52	             482,847	7/15/2020
	10/15/2020	 $      36,611.48	             488,153	10/15/2020
	 	 	 	 
	 	 $   474,144.77	         6,321,930	 

 

 

 

(Warrant Exercise Price at $.075 per common share. The Exercise Price and number of common
shares are subject to adjustment as described in Section 5 of the Warrant.)

 

 

2Exhibit 10.1

 

EXECUTION VERSION

 

EMPLOYMENT
SEPARATION AND GENERAL RELEASE AGREEMENT

 

This Employment Separation
and General Release Agreement (this “Agreement”) is entered into this 4th day of January, 2018 by
and between Akari Therapeutics, Plc. (the “Company”) and Robert Shaw (the “Executive”).

 

WHEREAS, the
Executive was employed as the General Counsel and Secretary of the Company pursuant to an employment agreement entered into between
the Executive and the Company, dated March 23, 2016, as amended on February 15, 2017 and August 2, 2017 (the “Employment
Agreement”); and

 

WHEREAS, the
Executive and the Company have decided to terminate Executive’s employment relationship with the Company.

 

NOW, THEREFORE,
in consideration of the covenants undertaken and the releases contained in this Agreement, the Executive and the Company, intending
to be legally bound, agree as follows:

 

1.       Termination.

 

1.1.
       The Executive’s employment with the Company and all position(s) as an officer,
employee, manager and in any other capacity with the Company and each of its affiliates (including, without limitation, his position
as General Counsel, Chief Legal Officer, Chief Compliance Officer and Secretary of the Company, as well as the head of governance,
intellectual property and information technology) terminated effective December 4, 2017, (the “Separation Date”),
and all benefits and perquisites of employment ceased as of the Separation Date (except as otherwise specifically provided herein).
Executive shall execute any documentation necessary to effectuate the termination of his positions as required by the Company.

 

1.2.
       The Employment Agreement shall terminate as of the Separation Date; provided, however,
that the parties acknowledge and agree that Sections 3(g), 5, 6, 7 and 8 of the Employment Agreement are hereby incorporated by
reference and shall continue to apply in accordance with their terms. 

 

1.3.
       Notwithstanding anything to the contrary contained herein, the Company shall compensate
the Executive with (a) biweekly payments equivalent in amount and subject to the same terms as if he had remained an employee
earning base salary during the period of time from December 4, 2017 through January 3, 2018; and (b) the employer portion of
health insurance as if he had remained employed through January 3, 2018. Executive acknowledges he received such payments
through January 3, 2018. 

 

1.4.
       The Executive acknowledges and agrees that, to the extent unpaid, he is entitled to receive any earned but unpaid base salary and
accrued but unused vacation time, and to be reimbursed for any incurred but unreimbursed business expenses (to the extent reimbursable
in accordance with Company policy), in each case, through the Separation Date payable in accordance with Company policy, and that
all other payments and all other benefits due to the Executive from the Company or any of its Affiliates (as defined in the Employment
Agreement) on or after the Separation Date shall be determined under this Agreement. The Executive acknowledges and agrees that,
except as stated in this Agreement, he is not entitled to any further payments or benefits from the Company or any of its Affiliates,
whether in connection with his employment or otherwise. The obligations assumed by the Company in Section 2 of this Agreement reflect
consideration provided to Executive over and above anything of value to which Executive already is entitled, and Executive acknowledges
and agrees that no other sums or amounts are or will be due or owing to him and expressly waives any rights or claims to additional
sums, amounts, privileges, or benefits not expressly provided for in this Agreement, whether written, oral, express or implied.

 

     

    EXECUTION VERSION

    

 

1.5.
       In accordance with the terms of the Akari Therapeutics, PLC Amended and Restated 2014
Equity Incentive Plan (the “Plan”) and the stock options granted to Executive thereunder (the “Options”),
(i) 2,925,000 Options were unvested as of the Separation Date and shall be forfeited immediately upon the Separation Date with
no compensation or other payment due to Executive and (ii) Executive shall have until three (3) months after the Separation Date
to exercise the remaining 675,000 Options that were vested as of the Separation Date, and if not exercised by such date, such Options
shall be immediately forfeited on such date with no compensation or other payment due to Executive. Other than as stated herein,
the Options shall be governed by the Plan and the grant documents thereunder.

 

1.6.
       Executive represents that as of the date of this Agreement, he has returned to the Company
all property of the Company or any of its affiliates and all other items containing confidential or proprietary information regarding
the Company or any of its affiliates in his possession or under his control and has not retained any copies of any of the foregoing.
Executive also represents and warrants that he has not retained copies of any Company documents, materials or information (whether
in hardcopy, on electronic media, in the “cloud,” or otherwise), and that Executive will disclose to the Company all
passwords necessary or desirable to enable the Company to access all Company information which Executive has password-protected
on any of its computer equipment or on its computer network or system. Unless instructed by the Company consistent with his obligations
to ensure a smooth transition of Executive’s roles, Executive will not attempt to access and will not access the Company’s
physical premises or any electronic system maintained by the Company or its affiliates (whether or not such system is owned or
employed by the Company pursuant to contract or otherwise).

 

2.       Separation
Benefits. Provided that the Executive executes this Agreement within sixty days subsequent
to the Separation Date and does not revoke this Agreement as provided herein, the Company shall (i) pay as severance pay to the
Executive, an amount equal to $445,200.00; (ii) pay an amount equal to $10,827.12 (an amount equal to the Company's share of the
premium paid for Executive while Executive was an active employee for medical insurance coverage under the Company's health care
plan for a period of twelve (12) months following the Separation Date) (in both cases less applicable tax withholdings and deductions);
and (iii) subject to the approval of the Administrator in accordance with its policies and procedures as provided in the 2014
Incentive Plan (the “Plan”), the Company shall modify the terms of the outstanding option agreements granted
to you on March 23, 2016, and September 1, 2017 (the “Option Agreements”) such that each tranche of unvested
options in the Option Agreements will continue to vest on the same schedule through September 23, 2018, notwithstanding any language
in the Option Agreements or the Plan to the contrary; provided, however, that any unvested options which are permitted to continue
to vest under this Section 2, (whether unvested or vested and unexercised) shall void and be of no further value in the event
you breach this Agreement or any other agreement between the parties. (the items in
clauses (i), (ii), and (iii), collectively, the “Severance Benefit”).
The Severance Benefit with respect to (i) and (ii) shall be paid in substantially equal installments in accordance with the Company’s
payroll practices (as in effect from time to time) during the one-year period immediately following the Separation Date commencing
on the first payroll date following the date on which the release of claims becomes effective. Executive specifically acknowledges
and agrees that but for signing this Agreement and the consideration thereunder, including without limitation Section 3, the Executive
would not be entitled to receive the Severance Benefit. The Executive further acknowledges and agrees that he has abided by the
Confidentiality, Intellectual Property, Non-Competition and Non-Solicitation Agreement with the Company, dated as of February
4, 2016 (the “Restrictive Covenant Agreement”), the terms of which are incorporated herein; provided, however, that
the Company hereby waives section 5.1.1 through 5.1.3 of the Restrictive Covenant Agreement as of the Effective Date of this Agreement.

 

     

    EXECUTION VERSION

    

 

2.1       If
previously enrolled in the Company’s health and welfare plans, Executive and any eligible dependents will be eligible to
elect continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) for coverage effective on
the Separation Date. Details about specific plan coverages, electing COBRA coverage, premium rates, conversion and distribution
eligibility will be provided separately.

 

2.2       All
payments under this Agreement are intended to be exempt from (or in the alternative to comply with) Internal Revenue Code Section
409A (409A). This Agreement will be construed and interpreted to avoid taxes or penalties under 409A.

 

2.3       The
Company has, as of the date hereof, made payment to the Executive for any accrued but unused vacation days.

 

2.4       The
Company will also pay any remaining amounts owed to AT&T for the equipment Executive used for Company business, as well as
all bills from AT&T for usage of that equipment through the Separation Date.

 

2.5     The Company agrees to allow
Executive to retain the HP laptop computer that the Company purchased for Executive (the “Laptop”); provided,
however, that Executive must provide the Laptop to the Company as soon as practicable so that the Company can ensure that any Company
documents and/or information contained therein is preserved by the Company and thereafter removed from the Laptop.

 

Release. In exchange
for the Severance Benefit, Executive hereby releases and discharges the Company and any of its Affiliates (as defined in the Employment
Agreement) and (to the extent different), each of their partners, members, managers, officers, directors, each of their subsidiaries’,
and subsidiaries’ officers, directors, members, managers, partners, employees, representatives, agents, benefit plans and
parent companies (collectively, the “Released Parties”, and each a “Released Party”) from
any and all claims, demands or liabilities whatsoever, whether known or unknown or suspected to exist by Executive, which Executive
ever had or may now have against any Released Party, arising at any time in any jurisdiction from the beginning of time to the
date Executive signs this Agreement, including, without limitation, any claims, demands or liabilities in connection with Executive’s
employment with any Released Party or the termination thereof, including wrongful termination, constructive discharge, breach of
express or implied contract, tort, unpaid wages, benefits, attorney’s fees or pursuant to any federal, state, or local employment
laws, regulations, or executive orders prohibiting discrimination or retaliation or less favorable treatment on any grounds including,
inter alia, age, race, color, sex, national origin, religion, handicap, veteran status, disability or whistleblowing, including,
without limitation, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, Title VII of the Civil
Rights Act of 1964, as amended by the Civil Rights Act of 1991, the Civil Rights Act of 1866, the Employee Retirement Income Security
Act of 1974, the Genetic Information Nondiscrimination Act of 2008, the Uniformed Services Employment and Reemployment Rights Act,
Fair Labor Standards Act, Family Leave and Medical Act, Employee Retirement Income Security Act of 1974 (except for any vested
benefits under any qualified benefit plan), Immigration Reform and Control Act, Worker Adjustment and Retraining Notification Act,
Fair Credit Reporting Act, Equal Pay Act, the Americans with Disabilities Act of 1990, the New York State
Human Rights Law, the New York Labor Law (including but not limited to the Retaliatory Action by Employers Law, the New York
State Worker Adjustment and Retraining Notification Act, all provisions prohibiting discrimination and retaliation, and all provisions
regulating wage and hour law), the New York Civil Rights Law, Section 125 of the New York Workers' Compensation Law, the New York
Whistleblower Law, and the New York City Human Rights Law. This Agreement does not waive rights or claims that may
arise after the date Executive signs this Agreement. Executive fully understands that if any fact with respect to which this Agreement
is executed is found hereafter to be other than or different from the facts in that connection believed by Executive to be true,
Executive expressly accepts and assumes the risk of such possible difference in fact and agrees that the release set forth herein
shall be and remain effective notwithstanding such difference in fact. Executive acknowledges and agrees that no consideration
other than the Severance Benefit has been or will be paid or furnished by any Released Party. Notwithstanding any of the foregoing,
nothing in this Agreement shall be construed to waive, release, or impair Executive from (i) collecting any amounts due to Executive
under any 401(k) benefits plan, (ii) enforcing Executive’s rights under this Agreement; (iii) enforcing Executive’s
rights to indemnification or (iv) applying for statutory unemployment benefits, statutory disability benefits, or workers' compensation
(the “Excluded Claims”).

 

     

    EXECUTION VERSION

    

 

3.        Covenant
Not to Sue. Executive represents and agrees that Executive has not filed any claim, charge,
allegation, or complaint for monetary damages, whether formal, informal, or anonymous, with any governmental agency, department
or division, whether federal, state or local, relating to any Released Party in any manner, including without limitation, any Released
Party’s business or employment practices. Executive covenants and agrees never, individually or with any person or entity
or in any way, to commence, aid in any way, prosecute or cause or permit to be commenced or prosecuted against any Released Party
any action or other proceeding, including, without limitation, an arbitration or other alternative dispute resolution procedure,
based upon any claim, demand, cause of action, obligation, damage, or liability that is the subject of the general release of claims
contained in Section 3 of this Agreement (the “Release”) or is in connection with Executive’s employment
or service with any Released Party or the termination thereof, excluding the Excluded Claims. If Executive takes any action to
commence, aid in any way, prosecute or cause to permit to be commenced or prosecuted any action or proceeding against the Released
Party that is the subject of the Release or is in connection with Executive’s employment or service with any Released Party
or the termination thereof, excluding the Excluded Claims, or Executive materially breaches this Agreement and does not cure such
breach within 30 days of written notice from Company thereof, the Company’s obligation to provide the Severance Benefit shall
immediately cease and, promptly after the date of any such breach or action, Executive must repay to the Company any portion of
the Severance Benefit paid prior to such breach, save $1.00 (the “Repayment Amount”), which amount must be paid
within fourteen days of such breach. In the event he is obligated to make the Repayment Amount, Executive agrees that the remaining
provisions of this Agreement shall remain in full force and effect. Executive also agrees to pay the attorneys’ fees and
costs, or the proportions thereof, incurred by the applicable Released Party in defending against those claims. Notwithstanding
the foregoing, nothing in this Agreement precludes Executive from challenging the validity of the Release under the requirements
imposed by the Age Discrimination in Employment Act (“ADEA”), and Executive shall not be responsible for reimbursing
the attorneys’ fees and costs of any Released Party in connection with a challenge under the ADEA to the validity of the
Release. However, Executive acknowledges that the Release applies to all claims that he has under the ADEA, and that unless the
Release is held to be invalid, all such ADEA claims shall be extinguished. Neither the Release nor anything else in this Agreement
limits Executive’s rights to file a charge with any administrative agency (such as the U.S. Equal Employment Opportunity
Commission or a state fair employment practices agency), provide truthful information to an agency, or otherwise participate in
an agency investigation or other administrative proceeding. However, Executive gives up all rights to any money or other individual
relief based on any agency or judicial decision, including class or collective action rulings. Nothing in this Agreement prohibits
Executive from reporting, without any prior authorization from or notification to the Company, possible violations of federal or
state law or regulations to any governmental agency or self-regulatory organization, or making other disclosures that are protected
under whistleblower or other provisions of any applicable federal or state law or regulation, or receiving an award in connection
therewith. For the sake of clarity and notwithstanding anything in this Separation Agreement to the contrary, no provision of this
Separation Agreement shall be construed or enforced in a manner that would limit or restrict Executive from exercising any legally
protected whistleblower rights (including, without limitation, pursuant to Rule 21F under the Securities Exchange Act of 1934)

  

4. Cooperation.Executive
agrees that he will cooperate with the Company and/or any Released Party and its or their respective counsel in connection with
any investigation, administrative proceeding or litigation relating to any matter that occurred during Executive’s employment
in which he was involved or of which he has knowledge. Such cooperation includes, but not limited to, the execution of truthful
affidavits or documents, testifying truthfully, or providing truthful information requested by the Company. Executive shall, upon
the presentation of such evidence of costs incurred, be reimbursed any reasonable out of pocket travel, meal or lodging costs incurred
as a result of such cooperation. Should Executive believe a conflict of interest exists in connection with the aforementioned cooperation,
Executive shall notify the Company of same, and if agreed by the Company in writing, the Company may, in its discretion, allow
Executive to select alternative counsel and the Company shall, in such event, pay that counsel directly, in all cases provided
the Company’s then-current indemnification and D&O policy so permits such payment. Executive further agrees that in the
event he is subpoenaed by any person or entity (including, but not limited to, any government agency) to give testimony (in a deposition,
court proceeding or otherwise) which in any way relates to his employment by the Company and/or its affiliates, Executive will
give prompt notice of such request to the General Counsel of the Company (or his successor or designee) at 24 West 40th Street,
8th Floor, New York, New York, and will make no disclosure until the Company and/or such affiliates have had a reasonable opportunity
to contest the right of the requesting person or entity to such disclosure.

 

     

    EXECUTION VERSION

    

 

5. Non-Disparagement.Executive
agrees that he will not disparage or encourage or induce others to disparage any of the Released Parties. For the purposes of
this Agreement, the term “disparage” includes, without limitation, comments or statements to any third party inclusive
of the press and/or media, whether true or not, which would adversely affect in any manner (i) the conduct of the business of
any of the Released Parties, including, without limitation, any business plans or prospects) or (ii) the business reputation of
the Released Parties. The Company shall instruct its executive officers and board members as of the Separation Date not to disparage
the Executive. Nothing in this paragraph or this Agreement shall preclude Executive,
the Company, or any individual acting on behalf of the Company from responding truthfully to a valid subpoena, making any statement
or taking any action in the context of litigation, cooperating with a governmental agency in connection with any investigation
it is conducting, complying with any requirement or obligation imposed by governmental agency or regulatory authority, or taking
any action otherwise required or permitted by law. Executive Chairman Ray Prudo agrees to provide Executive with a signed reference
letter within thirty (30) days of the date that this Agreement is executed by Executive.

 

6. Defend Trade
Secret Act of 2016 Notice. Executive understands that under the Defend Trade
Secret Act, Executive will not be held criminally or civilly liable under any federal or state trade secret law (including the
Defend Trade Secrets Act of 2016) for the disclosure of a trade secret that is made in confidence to a federal, state, or local
government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law. Executive
also will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret
that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

 

7. Executive's
Personal Information. To the extent the Company discovers purely personal information belonging
to Executive on any Company equipment, the Company shall delete and not use any such information, provided such deletion and nonuse
is consistent with regulatory or applicable litigation obligations of the Company. 

 

8. Acknowledgments. Executive
acknowledges that Executive has carefully read and fully understands this Agreement. Executive acknowledges that Executive
has not relied on any statement, written or oral, which is not set forth in this Agreement. Executive is hereby
advised to consult with an attorney of his choice prior to executing this Agreement. Executive acknowledges that he has been
provided a period of at least twenty-one (21) days from the date he received this Agreement to consider whether to sign it,
and that he may revoke his execution of this Agreement for a period of seven (7) days after the date he signs it as provided
below. Changes to this Agreement, whether material or non-material, shall not restart the
aforementioned twenty-one (21)-day period. Executive acknowledges that Executive is not waiving or releasing any rights
or claims that may arise after the date of execution of this Agreement; that Executive is releasing claims under the Age
Discrimination in Employment Act and the Older Workers Benefit Protection Act; and that Executive executes this Agreement in
exchange for monies in addition to those to which Executive is already entitled. Executive enters into this Agreement
knowingly, willingly and voluntarily in exchange for the Severance Benefit, and has had an adequate opportunity to make
whatever investigation or inquiry Executive needed.

 

     

    EXECUTION VERSION

    

 

9. Revocation.
Executive may revoke this Agreement if he does so within seven (7) days following his signing
this Agreement. Notice of revocation must be provided in writing to the Company no later than the seventh day following the execution
of this Agreement. This Agreement becomes effective on the day immediately following the expiration of the seven (7) day revocation
period, if Executive does not revoke his approval of this Agreement. In the event that Executive does not accept this Agreement
in the required time frames, if the Executive revokes this Agreement as provided in this Section 9, this Agreement, including but
not limited to the obligation of the Company to provide the payment(s) and benefits, shall be deemed automatically null and void.

 

10. Complete
Agreement; Inconsistencies. This Agreement constitutes the complete and entire agreement
and understanding of the parties with respect to the subject matter hereof, and supersedes in its entirety any and all prior understandings,
commitments, obligations and/or agreements, whether written or oral, with respect thereto; it being understood and agreed that
this Agreement and including the mutual covenants, agreements, acknowledgments and affirmations contained herein, is intended
to constitute a complete settlement and resolution of all matters set forth herein. For the avoidance of doubt, this Agreement
shall not supersede or modify the terms of the Restrictive Covenant Agreement, which shall remain in full force and effect following
the execution of this Agreement.

 

11. No Strict
Construction; Interpretation. The language used in this Agreement will be deemed to be the
language mutually chosen by the parties to reflect their mutual intent, and no doctrine of strict construction will be applied
against any party. Any use of the term “including” or “include” in this Agreement shall be interpreted
to mean “including, without limitation,” or “include, without limitation,” as the case may be.

 

12. No Admission
of Liability. Nothing herein will be deemed or construed to represent an admission by the
Company or the other Released Parties of any violation of law or other wrongdoing of any kind whatsoever.

 

13. Third Party
Beneficiaries. The Released Parties are intended third-party beneficiaries of this Agreement,
and this Agreement may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such
Released Parties and Released Parties hereunder. Except and to the extent set forth in the preceding sentence, this Agreement
is not intended for the benefit of any person other than the Parties, and no such other person will be deemed to be a third party
beneficiary hereof.

 

14. Governing
Law; Venue. New York law shall govern the interpretation of this Agreement. Any
suit arising out of or relating to this Agreement, Executive’s employment with any Employer Affiliate or the
termination thereof must be filed in New York, New York which the parties agree is the sole county of proper venue for such
suits; the parties each consent to personal jurisdiction in New York, New York. The appropriate state or federal courts
located in New York, New York shall also be the sole courts to have subject-matter and personal jurisdiction over all matters
arising under or relating to this Agreement, Executive’s employment with any Employer Affiliate or the termination
thereof, and shall be the proper forums in which to adjudicate such matters. Executive further acknowledges that Section 6.1
of the Restrictive Covenant Agreement (as to injunctive relief) shall be applicable to Sections 5 and 6 of this Agreement. In
the event of a dispute regarding breach or enforcement of this Agreement resolved by a final judgment, the prevailing party
(whether plaintiff or defendant in the dispute) shall be entitled to recover its reasonable legal fees and costs of
suit.

 

     

    EXECUTION VERSION

    

 

15. Jury
Waiver. ANY, ACTION, DEMAND, CLAIM, OR COUNTERCLAIM ARISING UNDER OR RELATING TO THIS AGREEMENT,
EXECUTIVE’S EMPLOYMENT WITH THE COMPANY OR THE TERMINATION THEREOF SHALL BE RESOLVED BY A JUDGE ALONE AND EACH OF COMPANY
AND EXECUTIVE WAIVE ANY RIGHT TO A JURY TRIAL THEREOF.

 

16. Severability.
The invalidity or unenforceability of any provision of this Agreement will not affect the validity
or enforceability of any other provision of this Agreement, which will otherwise remain in full force and effect.

 

17. Counterparts.
This Agreement may be executed in separate counterparts, each of which will be deemed to be
an original and all of which taken together will constitute one and the same agreement. Facsimile or electronic transmission of
the executed version of this Agreement or any counterpart hereof shall have the same force and effect as the original.

 

18. Successors
and Assigns. The parties’ obligations hereunder will be binding upon their successors
and assigns. The parties’ rights and the rights of the other Released Parties will inure to the benefit of, and be enforceable
by, any of the parties’ and Released Parties’ respective successors and permitted assigns. The Company may assign
all rights and obligations of this Agreement to any successor in interest to the assets of the Company. The Executive may not
assign any of his rights or obligations under this Agreement. 

 

19. Amendments
and Waivers. No amendment to or waiver of this Agreement or any of its terms will be binding
upon any party unless consented to in writing by such Party.

 

20. Headings.
The headings of the sections and subsections of this Agreement are for purposes of convenience
only, and will not be deemed to amend, modify, expand, limit or in any way affect the meaning of any of the provisions hereof.

 

     

    EXECUTION VERSION

    

 

	/s/ Robert Shaw                                         	26
                                         January 2018      	 
	Robert Shaw	Date	 

 

AKARI THERAPEUTICS PLC

 

/s/ David Solomon                                    

David Solomon

Chief Executive Officer

 

Address:

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