Document:

Exhibit 10.3

 

 

 

 

SECURITIES PURCHASE AGREEMENT

 

Between

 

ROCK CREEK
PHARMACEUTICALS, INC.,

 

as
Issuer,

 

And

 

FEEHAN PARTNERS,
LP,

 

as
Investor.

 

 

 

 

 

Dated: May 8, 2015

 

 

 

 

 

    	 

    	 

    

 

This SECURITIES PURCHASE
AGREEMENT (this “Agreement”) is entered into and effective as of May 8, 2015, between Rock Creek Pharmaceuticals,
Inc., a Delaware corporation (the “Company”), and Feehan Partners, LP (“Investor”).

 

WHEREAS, Investor has
previously entered into one or more securities purchase and registration rights agreements with the Company (each, a “Prior
Agreement” and collectively, the “Prior Agreements”), whereby the Company sold to Investor, and Investor
purchased from the Company, among other securities, one or more warrants (in each case, a “Prior Warrant” and
collectively, the “Prior Warrants”), to purchase shares (“Prior Warrant Shares”) of the Company’s
common stock, par value $0.0001 per share (“Common Stock”); and

 

WHEREAS, the Company
and Investor desire that, upon the terms and conditions set forth in this Agreement: (i) Investor will exercise the Prior Warrants
described in Column 1 of Schedule I, thereby purchasing the related Prior Warrant Shares, at an amended exercise price of
$3.00 per share (the “Amended Exercise Price”), and the Company will issue to Investor the number of Prior Warrant
Shares indicated in Column 2 of Schedule I; (ii) Investor will also purchase from the Company, and the Company will issue
and sell to Investor, the number of shares of the Company’s Common Stock set forth in Column 3 of Schedule I (the
“Shares”), for a purchase price equal to $3.00 per share (the “Purchase Price Per Share”);
and (iii) Investor will acquire from the Company, and the Company will grant and issue to Investor, a warrant, substantially in
the form attached hereto as Exhibit A (the “Warrant”), to purchase the number of shares of the Company’s
Common Stock set forth in Column 7 of Schedule I (the “Warrant Shares”), at an initial exercise price
of $3.00 per share.

 

NOW, THEREFORE, in
consideration of the foregoing premises and the covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.Agreement
to Sell and Purchase the Prior Warrant Shares, the Shares, and the Warrant. At the Closing (as defined below), the Company
will sell to Investor, and Investor will purchase from the Company, upon the terms and subject to the conditions hereinafter set
forth, the Prior Warrant Shares, the Shares, and the Warrant in the amounts set forth on Schedule I for the aggregate purchase
price set forth under the heading “Aggregate Purchase Price” on Schedule I. Effective as of the Closing Date
(as defined below), Investor and the Company hereby acknowledge and agree that the Prior Warrants described on Schedule I
shall be deemed exercised as of the Closing Date, the “Exercise Price” of the Prior Warrants shall be the Amended Exercise
Price, and this Agreement shall be in lieu of any “notice of exercise” or similar document as may be required with
respect to the exercise of the Prior Warrants.

 

2.Delivery
of the Prior Warrant Shares, the Shares, and the Warrant at Closing.

 

(a)The completion
of the purchase, sale and issuance of the Prior Warrant Shares, the Shares, and the Warrant (the “Closing”)
shall occur on the date of this Agreement or on such other date as the Company and Investor shall agree (the “Closing
Date”), at the offices of the Company’s counsel. At the Closing, the Company shall issue to Investor: (i) one or
more stock certificates, registered in Investor’s name and address as set forth on Schedule I attached hereto, representing
the Prior Warrant Shares and the Shares, and (ii) the Warrant issued in the name of Investor.

 

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The Company’s
obligation to issue the Prior Warrant Shares, the Shares, and the Warrant to Investor shall be subject to the following conditions,
any one or more of which may be waived by the Company: (i) receipt by the Company of a wire transfer of immediately available funds
to an account designated in writing by the Company, in the full amount of the total purchase price payable by Investor for the
Prior Warrant Shares, the Shares, and the Warrant that Investor is hereby agreeing to purchase, as set forth under the heading
“Aggregate Purchase Price” on Schedule I; and (ii) the accuracy, in all material respects, of the representations
and warranties made by Investor and the fulfillment, in all material respects, of those undertakings of Investor to be fulfilled
prior to the Closing.

 

Investor’s obligation
to purchase the Prior Warrant Shares, the Shares, and the Warrant shall be subject to the following conditions, any one or more
of which may be waived by Investor (provided that no such waiver shall be deemed given unless in writing and executed by Investor):
(i) receipt by Investor of a counter-signed copy of this Agreement executed by the Company; (ii) receipt by Investor of a copy
of the Warrant; (iii) receipt by Investor of evidence of irrevocable instructions issued by the Company to the Company’s
transfer agent instructing the transfer agent to issue to Investor a stock certificate representing Investor’s Prior Warrant
Shares and Shares (subject to full satisfaction of the conditions to Closing set forth in this Section 2); and (iv) the
accuracy, in all material respects, of the representations and warranties made by the Company and the fulfillment, in all material
respects, of those undertakings of the Company to be fulfilled prior to the Closing.

 

(b)The Company shall
not issue to Investor any Shares or Warrant Shares under this Agreement until such time when such shares proposed to be issued,
when aggregated with all other shares then owned beneficially (as calculated pursuant to (i) Section 13(d) of the Securities Exchange
Act of 1934 and Rule 13d-3 promulgated thereunder and (ii) the rules and regulations of the NASDAQ Stock Market) by Investor would
not result in the beneficial ownership by Investor of more than 9.99% of the then issued and outstanding shares of Common Stock
(the “Ownership Cap”), without the prior written consent of Investor. The Ownership Cap shall be appropriately
adjusted for any stock dividend, stock split, reverse stock split or similar transaction.

 

3.Representations,
Warranties and Covenants of the Company. The Company hereby represents and warrants to, and covenants with, Investor as follows
as of the date of this Agreement and as of the Closing Date:

 

3.1.Organization.
Each of the Company and its Subsidiaries (as defined in Rule 405 under the Securities Act of 1933, as amended (the “Securities
Act”)) is duly organized and validly existing in good standing under the laws of the jurisdiction of its organization.
Each of the Company and its Subsidiaries has full power and authority to own, operate and occupy its properties and to conduct
its business as presently conducted and is registered or qualified to do business and in good standing in each jurisdiction in
which it owns or leases property or transacts business and where the failure to be so qualified would have a material adverse effect
upon the financial condition or business, operations, assets or prospects of the Company and its Subsidiaries, taken as a whole
(a “Material Adverse Effect”).

 

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3.2.Due Authorization.
The Company has all requisite power and authority to execute, deliver and perform its obligations under this Agreement and the
Warrant, and has taken all necessary corporate action to enter into and perform this Agreement, to issue the Prior Warrant Shares
and the Shares in accordance with the terms of this Agreement, to enter into and perform the Warrant, and to issue the Warrant
Shares in accordance with the terms of the Warrant. This Agreement has been, and upon the Closing in accordance with the terms
of this Agreement, the Warrant will be, duly authorized, validly executed and delivered by the Company and constitute, or will
constitute, legal, valid and binding agreements of the Company enforceable against the Company in accordance with their terms,
except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles
of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). Upon their issuance in
accordance with the terms of this Agreement and the Prior Warrants (as applicable), the Shares and the Prior Warrant Shares will
be duly authorized, validly issued, fully paid and non-assessable, the Warrant will be duly authorized and validly issued, and
the Warrant Shares, upon exercise of the Warrant in accordance with its terms, will be duly authorized.

  

3.3.Non-Contravention.
Except as would not reasonably be expected to have a Material Adverse Effect, the execution and delivery of this Agreement, the
issuance and sale of the Prior Warrant Shares, the Shares, and the Warrant under this Agreement, the fulfillment of the terms of
this Agreement and the consummation of the transactions contemplated hereby will not (i) conflict with or constitute a violation
of, or default (with or without the giving of notice or the passage of time or both) under, (A) any material bond, debenture, note
or other evidence of indebtedness, or under any material lease, indenture, mortgage, deed of trust, loan agreement, joint venture
or other agreement or instrument to which the Company or any Subsidiary is a party or by which it or any of its Subsidiaries or
their respective properties are bound, (B) the charter, by-laws or other organizational documents of the Company or any Subsidiary,
or (C) any law, administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or authority
applicable to the Company or any Subsidiary or their respective properties, or (ii) result in the creation or imposition of any
lien, encumbrance, claim, security interest or restriction whatsoever upon any of the material properties or assets of the Company
or any Subsidiary or an acceleration of indebtedness pursuant to any obligation, agreement or condition contained in any material
bond, debenture, note or any other evidence of indebtedness or any material indenture, mortgage, deed of trust or any other agreement
or instrument to which the Company or any Subsidiary is a party or by which any of them is bound or to which any of the property
or assets of the Company or any Subsidiary is subject. No consent, approval, authorization or other order of, or registration,
qualification or filing with, any regulatory body, administrative agency, self-regulatory organization, stock exchange or market,
or other governmental body in the United States is required for the execution and delivery of this Agreement or the valid issuance
and sale of the Prior Warrant Shares, the Shares, and the Warrant pursuant to this Agreement, other than such as have been or will
be made or obtained, and except for any securities filings required to be made under federal or state securities laws.

 

3.4.SEC Filings.
Since January 1, 2014, the Company and its Subsidiaries have filed all reports, schedules, forms, statements and other documents
required to be filed by them with the Securities and Exchange Commission (the “Commission”) pursuant to the
reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (such reports,
including exhibits thereto and documents incorporated by reference therein, collectively, the “SEC Documents”).
To the best of the Company’s knowledge, as of their respective filing dates, none of the SEC Documents contained an untrue
statement of material fact or omitted to state a material fact required to be stated therein or necessary in order to make the
statements made therein, in the light and circumstances under which they were made, not misleading, except to the extent corrected
by subsequently filed or furnished SEC Documents.

 

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3.5.Absence of
Certain Changes. Except as disclosed in the SEC Documents or otherwise publicly disclosed by the Company, since January 1,
2014, there has been no adverse change or adverse development in the business, properties, assets, operations, financial condition,
prospects, liabilities or results of operations of the Company or its Subsidiaries which, to the knowledge of the Company, would
reasonably be expected to have a Material Adverse Effect.

 

3.6.Capitalization.
As of May 7, 2015, the authorized capital stock of the Company consists of (i) 314,800,000 shares of Common Stock, of which 8,228,670
shares are issued and outstanding and 2,264,840 shares are issuable and reserved for issuance pursuant to the Company’s stock
option plans or securities exercisable or exchangeable for, or convertible into, shares of Common Stock, and (ii) 100,000 shares
of preferred stock, of which, as of the date hereof, no shares are issued. All of such outstanding shares have been, or upon issuance
will be, validly issued, fully paid and nonassessable. Except as disclosed in the SEC Documents, as of the date hereof, (i) no
shares of the Company’s capital stock are subject to preemptive rights or any other similar rights or any liens or encumbrances
suffered or permitted by the Company, (ii) other than the January 2015 Note and Warrant, there are no outstanding options, warrants,
scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible
into, any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements
by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company
or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, (iii)
there are no outstanding securities of the Company or any of its Subsidiaries which contain any redemption or similar provisions,
and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may
become bound to redeem a security of the Company or any of its Subsidiaries, and (iv) the Company does not have any stock appreciation
rights or “phantom stock” plans or agreements or any similar plan or agreement. The Company disclosed in its SEC Documents
or has furnished to Investor true and correct copies of the Company’s Tenth Amended and Restated Certificate of Incorporation,
as amended and as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s
By-laws, as amended and as in effect on the date hereof (the “By-laws”). For purposes hereof, the term “January
2015 Note and Warrant” means the (a) a Convertible Promissory Note of the Company issued or issuable in January 2015
payable to John J. McKeon in the original principal amount of $350,000, convertible into shares of common stock at a conversion
price of $1.00 per share (subject to adjustments for stock splits, reverse stock splits, and the like), plus (b) a Common Stock
Purchase Warrant of like date thereof granted to John J. McKeon and representing the right to purchase 350,000 shares of Common
Stock at an exercise price of $1.00 per share (subject to adjustments for stock splits, reverse stock splits, and the like).

 

3.7.Broker.
The Company has taken no action which would give rise to any claim by any person for brokerage commissions, finder’s fees
or similar payments by the Company or Investor relating to this Agreement or the transactions contemplated hereby.

 

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3.8.Certain Proceedings.
The Company is not the subject of a voluntary bankruptcy or solvency action, has not made a general assignment for the benefit
of creditors, and has not taken any corporate action to authorize any of the foregoing.

 

4.Representations,
Warranties and Covenants of Investor. Investor represents and warrants to, and covenants with, the Company as follows as of
the date of this Agreement and as of the Closing Date:

 

4.1.Due Authorization;
Organization. Investor has all requisite power, authority and capacity to execute, deliver and perform its obligations under
this Agreement, and has taken all necessary corporate, company, partnership or individual action, as the case may be, to enter
into and perform this Agreement. This Agreement has been duly authorized and validly executed and delivered by Investor and constitutes
a legal, valid and binding agreement of Investor enforceable against Investor in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and
contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law).

 

4.2.Non-Contravention.
The execution and delivery of this Agreement, the purchase of the Prior Warrant Shares, the Shares, and the Warrant under this
Agreement, the fulfillment of the terms of this Agreement and the consummation of the transactions contemplated hereby will not
(i) conflict with or constitute a violation of, or default (with or without the giving of notice or the passage of time or both)
under, (A) any material bond, debenture, note or other evidence of indebtedness, or under any material lease, indenture, mortgage,
deed of trust, loan agreement, joint venture or other agreement or instrument to which Investor is a party, (B) the charter, by-laws
or other organizational documents of Investor, as applicable, or (C) any law, administrative regulation, ordinance or order of
any court or governmental agency, arbitration panel or authority applicable to Investor or its property, or (ii) result in the
creation or imposition of any lien, encumbrance, claim, security interest or restriction whatsoever upon any of the material properties
or assets of Investor or an acceleration of indebtedness pursuant to any obligation, agreement or condition contained in any material
bond, debenture, note or any other evidence of indebtedness or any material indenture, mortgage, deed of trust or any other agreement
or instrument to which Investor is a party or by which Investor is bound or to which any of the property or assets of Investor
is subject. No consent, approval, authorization or other order of, or registration, qualification or filing with, any regulatory
body, administrative agency, self-regulatory organization, stock exchange or market, or other governmental body in the United States
is required for the execution and delivery of this Agreement and the purchase of the Prior Warrant Shares, the Shares, and the
Warrant by Investor, other than such as have been made or obtained.

 

4.3.Private Placement.
Investor represents and warrants to, and covenants with, the Company that Investor is acquiring the Prior Warrant Shares, the Shares,
and the Warrant for its own account for investment only and with no present intention of distributing any of the Prior Warrant
Shares, the Shares, the Warrant, or the Warrant Shares in violation of the applicable securities laws, or pursuant to any arrangement
or understanding with any other persons regarding the distribution of the Prior Warrant Shares, the Shares, the Warrant, or the
Warrant Shares. Investor has been advised and understands that none of the Shares, the Warrant, or the Warrant Shares have been
registered under the Securities Act or under the “blue sky” or similar laws of any jurisdiction and that they may be
resold only if registered pursuant to the provisions of the Securities Act and such other laws, if applicable, or, subject to the
terms and conditions of this Agreement, if an exemption from registration is available. Investor has been advised and understands
that the Company, in issuing the Prior Warrant Shares, the Shares, and the Warrant, is relying upon, among other things, the representations
and warranties of Investor herein in concluding that such issuance is a “private offering” and is exempt from the registration
provisions of the Securities Act.

 

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4.4.Certain Trading
Activities. Neither Investor nor any of its affiliates has directly or indirectly, nor has any person acting on behalf of or
pursuant to any understanding with Investor, engaged in any purchase or sale of Common Stock (including, without limitation, any
Short Sales (as defined below) involving the Company’s securities) since the date that Investor first became aware of the
transactions contemplated hereby. For the purposes of this Section 4.4, “Short Sales” include, without
limitation, all “short sales” as defined in Rule 200 of Regulation SHO adopted under the Exchange Act and all types
of direct and indirect stock pledges, forward sales contracts, options, puts, calls, short sales and other transactions through
non-US broker-dealers or foreign regulated brokers having the effect of hedging the securities of the Company or the investment
contemplated under this Agreement. Investor covenants that neither it, nor any person acting on its behalf or pursuant to any understanding
with it, will engage in any transaction in the securities of the Company (including short sales) prior to the filing of a Current
Report on Form 8-K, Annual Report on Form 10-K, press release, or other applicable Exchange Act report reporting this transaction.

 

4.5.No Advice.
Investor understands that nothing in this Agreement or any other materials presented to Investor in connection with the purchase
and sale of the Prior Warrant Shares, the Shares, and the Warrant constitutes legal, tax or investment advice. Investor has consulted
such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its
purchase of the Prior Warrant Shares, the Shares, and the Warrant.

 

4.6.Accredited
Investor; Big Boy. Investor is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D
under the Securities Act and is able to bear the risk of its investment in the Prior Warrant Shares, the Shares, the Warrant, and
the Warrant Shares. Investor has such knowledge and experience in financial and business matters that it is capable of evaluating
the merits and risks of the purchase of the Prior Warrant Shares, the Shares, the Warrant, and the Warrant Shares. Investor acknowledges
that it does not have any material non-public information relating to the Company. Investor further acknowledges that the Company
and its agents, officers, directors and affiliates possess material non-public information not known to Investor regarding or relating
to the Company and/or the securities being offered hereby, including, but not limited to, information concerning the business,
financial condition, results of operations, legal matters associated with ongoing or past litigation matters, investigations, the
Company’s corporate transition matters (including transactions related to the corporate transition matters and amounts that
become payable by the Company), prospects and other plans of the Company. Investor acknowledges that any material non-public information
may be indicative of a value of the securities being offered hereby that is substantially less than the purchase price paid by
Investor, or may be otherwise adverse to Investor, and such material non-public information, if known to Investor, could be material
to Investor’s decision to acquire the securities being offered hereby. Accordingly, Investor understands and accepts that
there is an information disparity between Investor and the Company, confirms that the Company is not obligated to disclose, and
consistent with Investor’s instructions, has not disclosed, material non-public information to Investor, and acknowledges
and agrees that the Company has no liability arising from such non-disclosure. Investor acknowledges that neither the Company nor
any of its agents, officers, directors, or affiliates has delivered any information or made any representations to Investor, except
as expressly set forth herein.

 

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4.7.Limited Representations.
Investor and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of
the Company and its Subsidiaries and all materials relating to the offer and sale of the Prior Warrant Shares, the Shares, the
Warrant, and the Warrant Shares, in each case that have been requested by Investor. Investor and its advisors, if any, have been
afforded the opportunity to ask such questions of the Company as they deem appropriate for purposes of the investment contemplated
hereby. Investor acknowledges and agrees that the most recent disclosure of the Company’s results is for the year ended on,
and the most recent disclosure of the Company’s financial condition is at, December 31, 2014, as reported on the Company’s
Annual Report on Form 10-K, filed with the Commission on March 12, 2015, and that, except as disclosed in the SEC Documents, no
information more recent than such date has been provided to or requested by Investor as to the Company’s results, operations,
financial condition, business or prospects. Investor understands that its purchase of the Prior Warrant Shares, the Shares, the
Warrant, and, if applicable, the Warrant Shares involves a high degree of risk and that Investor may lose its entire investment
in the Prior Warrant Shares, the Shares, the Warrant, and, if applicable, the Warrant Shares, and Investor further acknowledges
and agrees that it can afford to do so without material adverse consequences to its financial condition. Investor is not relying
on, and does not have, any information provided by the Company and its Subsidiaries, except to the extent provided in Section
3 herein.

 

4.8.No Recommendation.
Investor understands that no United States federal or state agency or any other government or governmental agency has passed on
or made any recommendation or endorsement of the Prior Warrant Shares, the Shares, the Warrant, or the Warrant Shares or the fairness
or suitability of an investment in the Prior Warrant Shares, the Shares, the Warrant, or the Warrant Shares nor have such authorities
passed upon or endorsed the merits thereof.

 

4.9.Restrictive
Legend. The Company shall issue the Warrant and certificates for the Prior Warrant Shares, the Shares and, if applicable, the
Warrant Shares to Investor with the legends described in Section 5 below.

 

4.10.Residence.
Investor is a resident of, or is organized under the laws of, the jurisdiction set forth on Schedule I attached hereto.

 

4.11.No
Market. Investor understands that the Prior Warrant Shares and the Shares are and, upon exercise of the Warrant, the Warrant
Shares will be restricted securities, that there is no public trading market for the Warrant and that none is expected to develop,
and that the Prior Warrant Shares, the Shares, the Warrant, and the Warrant Shares must be held indefinitely unless and until the
resale of such Prior Warrant Shares, Shares, Warrant, or Warrant Shares is registered under the Securities Act or subject to the
terms and conditions of this Agreement and the applicable securities laws, an exemption from registration is available. Investor
has been advised or is aware of the provisions of Rule 144 promulgated under the Securities Act.

 

4.12.No
Commissions. Investor has taken no action which would give rise to any claim by any person for brokerage commissions, finder’s
fees or similar payments by the Company or Investor relating to this Agreement or the transactions contemplated hereby.

 

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4.13.Transactional
Exemption. Investor understands that the Prior Warrant Shares, the Shares, the Warrant, and the Warrant Shares are being offered
and sold in reliance on a transactional exemption from the registration requirements of federal and state securities laws and that
the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings
of Investor set forth herein in order to determine the applicability of such exemptions and the suitability of Investor to acquire
the Prior Warrant Shares, the Shares, the Warrant, and the Warrant Shares.

 

4.14.Investor
Undertaking. Investor understands that (i) none of the Shares, the Warrant, or the Warrant Shares may be offered for sale,
sold, assigned or transferred unless (A) subsequently registered under the Securities Act, (B) Investor shall have delivered to
the Company (if requested by the Company) an opinion of counsel to Investor, in a form reasonably acceptable to the Company, to
the effect that such Shares, Warrant, or Warrant Shares, as applicable, to be sold, assigned or transferred may be sold, assigned
or transferred pursuant to an exemption from such registration, or (C) Investor provides the Company with reasonable assurance
that such Shares, Warrant, or Warrant Shares, as applicable, can be sold, assigned or transferred pursuant to Rule 144 or Rule
144A promulgated under the Securities Act (or a successor rule thereto) (collectively, “Rule 144”); and
(ii) any sale of the Shares, the Warrant, or the Warrant Shares, as applicable, made in reliance on Rule 144 may be made only in
accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of such Shares, Warrant, or Warrant
Shares, as applicable, under circumstances in which the seller (or the Person (as defined below) through whom the sale is made)
may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption
under the Securities Act or the rules and regulations of the Commission promulgated thereunder.

 

4.15.Disclosure
of Transactions. On or before 5:30 p.m., New York time, on the fourth (4th) business day following the date of this
Agreement, the Company shall file a Current Report on Form 8-K (or other form permitted under the federal securities law) disclosing
the material terms and conditions of the transactions contemplated by this Agreement and the Warrant, in compliance with the requirements
of Form 8-K (or such other form), unless such disclosure is first provided in the Company’s Quarterly Report on Form 10-Q.

 

5.Stock Legend.
Upon payment therefor as provided in this Agreement and/or the Warrant (as applicable), the Company will issue to Investor the
Prior Warrant Shares, the Shares, and the Warrant Shares purchased by Investor.

 

Any certificate representing
the Prior Warrant Shares or the Shares shall be stamped or otherwise imprinted with a legend in substantially the following form:

 

THESE SECURITIES
HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED, TRANSFERRED
OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, AND AFTER RECEIPT
BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES
ACT OR THAT THE PROSPECTUS DELIVERY REQUIREMENTS HAVE BEEN MET.

 

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Any certificate representing
the Warrant Shares issued by the Company shall also be stamped or otherwise imprinted with a legend in substantially the following
form:

 

THE SECURITIES
REPRESENTED HEREBY ARE SUBJECT TO THE RIGHTS AND OBLIGATIONS SET FORTH IN A SECURITIES PURCHASE AGREEMENT, DATED AS OF MAY 8, 2015,
BY AND BETWEEN ROCK CREEK PHARMACEUTICALS, INC. AND THE INVESTOR NAMED THEREIN, AS SUCH MAY BE AMENDED FROM TIME TO TIME.

 

The Warrant shall be
imprinted with the legends set forth in the form of Warrant attached hereto as Exhibit A.

 

The Company agrees to
issue the Shares, the Prior Warrant Shares issued upon exercise of the Prior Warrants, and the Warrant Shares issued upon exercise
of the Warrant, as applicable, without the legends set forth above at such time as the Holder thereof is (i) permitted to transfer
such Shares, Prior Warrant Shares, or Warrant Shares, as applicable, without restriction pursuant to Rule 144 under the Securities
Act, and upon such transfer or (ii) at such time such securities have been registered for resale under the Securities Act, upon
such resale, and subject to the undertakings in Section 4.14 hereof by Investor.

 

6.Use of Proceeds.
The proceeds from the sale of Prior Warrant Shares, Shares, and Warrant Shares pursuant to this Agreement shall be used for general
corporate purposes.

 

7.Survival of
Representations, Warranties and Agreements. Notwithstanding any investigation made by any party to this Agreement, all covenants,
agreements, representations and warranties made by the Company and Investor herein shall survive the execution of this Agreement,
the delivery to Investor of the Prior Warrant Shares, the Shares, and the Warrant being purchased, and the payment therefor.

 

8.Notices.
All notices, requests, consents and other communications hereunder shall be in writing, shall be mailed (i) if within the domestic
United States, by first-class registered or certified mail, or nationally recognized overnight express courier, postage prepaid,
or by facsimile, or (ii) if delivered from outside the United States, by International Federal Express or facsimile, and shall
be deemed given (A) if delivered by first-class registered or certified mail domestic, three business days after so mailed, (B)
if delivered by nationally recognized overnight carrier, one business day after so mailed, (C) if delivered by International Federal
Express, two business days after so mailed, and (D) if delivered by facsimile, upon electric confirmation of receipt and shall
be delivered as addressed as follows:

 

(a)if to
the Company, to:

 

Rock Creek Pharmaceuticals, Inc.

2040 Whitfield Avenue, Suite 300

Sarasota, Florida 34243

Telephone: (844) 727-0727

Facsimile: __________________

Attention: Chief Financial Officer

 

with copies to:

 

Foley & Lardner LLP

Attn: Curt P. Creely, Esq.

100 N. Tampa Street, Suite 2700

Tampa, Florida 33602

Telephone: (813) 225-4122

Facsimile: (813) 221-4210

 

    	9

    	 

    

 

(b)if to
Investor, at its address set forth on Schedule I attached hereto, or at such other address or addresses as may have been
furnished to the Company in writing.

 

9.Changes.
This Agreement may not be modified or amended except pursuant to an instrument in writing signed by the Company and Investor.

 

10.Headings.
The headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed
to be part of this Agreement.

 

11.Severability.
In the event that any provision contained in this Agreement is found by a court of competent jurisdiction to be invalid, illegal
or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not
in any way be affected or impaired thereby.

 

12.Governing
Law. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of New York, without
giving effect to the principles of conflicts of law.

 

13.Entire Agreement.
This Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof, and any and
all other written or oral agreements relating to such subject matter are expressly cancelled.

 

14.Finders Fees.
Neither the Company nor Investor nor any affiliate thereof has incurred any obligation which will result in the obligation of another
party to pay any finder’s fee or commission in connection with this transaction.

 

    	10

    	 

    

 

15.Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute one instrument, and shall become effective when one or more counterparts have been signed by each
party hereto and delivered to the other parties.

 

16.Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company
and Investor. Investor shall not assign any rights or obligations under this Agreement other than, solely with respect to any Prior
Warrant Shares, Shares, Warrant, or Warrant Shares transferred in accordance with this Agreement, including the legends described
herein, to any permitted transferee of such Prior Warrant Shares, Shares, Warrant, or Warrant Shares, provided, however,
that no such assignment shall relieve Investor of its obligations under this Agreement.

 

17.Expenses.
Each of the Company and Investor shall bear its own expenses in connection with the preparation and negotiation of this Agreement.

 

18.Pronouns.
All pronouns or any variations thereof shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the
identity of the person, persons, entity or entities may require.

 

19.Press Release.
The Company shall not use Investor’s name in any press release issued by the Company related to this Agreement or the transactions
contemplated hereby without the consent of Investor.

 

[Signature pages follow]

 

  

    	11

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date first above written.

 

	 	ROCK CREEK PHARMACEUTICALS, INC.
	 	 	 
	 	By:	 /s/ Michael J. Mullan
	 	Name:	Michael J. Mullan
	 	Title:	Chairman and Chief Executive Officer

 

 

 

 

 

 

 

Signature Page to Securities Purchase
Agreement

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date first above written.

 

	 	FEEHAN PARTNERS, LP
	 	 	 
	 	By:	/s/ Robert W. Scannell
	 	Name:	Robert W. Scannell
	 	Title:	General Partner

 

 

 

 

 

 

Signature Page to Securities Purchase
Agreement

 

    	 

    	 

    

Schedule I

 

 

 

	 	1.	2.	3.	4.	5.	6.	7.	8.
	
        Name and Address

         

         

         
	Date and Number of Prior Warrants Being Exercised	Number of Shares Being Purchased Through Exercise of Prior Warrants	Number of Shares Being Purchased (other than Prior Warrant Shares)	Total Number of Shares Being Purchased	Number of New Warrants Being Issued Through Exercise of Prior Warrants	Number of Warrants Issued (other than through Exercise of Prior Warrants)	Total Number of Warrants Issuable	Aggregate

Purchase

Price
	Feehan Partners, LP

3 Harbor Drive, Suite 213

Sausalito, CA  94964	7,000 – 8/8/2014

33,333 – 11/8/2010

21,739 –3/14/2011	62,072 shares	15,518 shares	77,590 shares	62,072	7,759	69,831	$232,770

 

 

    	 

    	 

    

Exhibit A

 

Form of Common Stock
Purchase WarrantEX-10.1

 Exhibit 10.1 

Plan Document 
 PAR
Petroleum (and subsidiaries) Incentive Compensation Plan 
 Table of Contents 

 

					
	I.		 Plan Objectives
		
	II.		 Definitions
		
	III.		 Plan Cycle
		
	IV.		 Eligibility
		
	V.		 Business Unit Performance Goals
		
	VI.		 Determination of Individual Bonus Awards
		
	VII.		 Bonus Formula
		
	VIII.		 Plan Administration
		

 I. Objectives 
 The
management of PAR Petroleum has proposed an Incentive Compensation Plan to provide rewards for the accomplishment of specific goals which have been designed to align individual and business group efforts with the company’s objectives. 

Specifically, the plan is intended to: 
  

	 	•	 	Create and sustain employee ownership in the success of PAR Petroleum. 

  

	 	•	 	Create alignment with the critical success factors and core values of Safety and Environmental accountability. 

  

	 	•	 	Recognize the importance operational reliability is to the financial success of the company. 

  

	 	•	 	Provide financial incentives for PAR Petroleum employees to participate in the success of the company. 

 II.
Definitions 
 Bonus Target. The amount earned if individual, group and corporate performance is attained at target levels. The targets are pay
grade dependent. The company will communicate bonus targets to employees. 
 Senior management/human resources will make initial pay grade determinations
which will be benchmarked against similar positions in the appropriate industry/location. Pay grade recommendations will be subject to review and possible revision by the President/CEO. 

  
 1 

 Metric. The five specific key performance indicators selected to measure performance. These include
safety, environmental, group performance, individual performance and adjusted EBITDA. For each metric, actual performance determined at the end of the plan year will be compared to the goals for such metric and an award payout will be determined.
Goals for these key metrics are set by management. PAR Petroleum adjusted EBITDA will be applied to base performance as a multiplier (50% to 150%), 

Safety. The KPI’s that will make up safety metrics will be created by the management of the specific group (refining, marketing and logistics
etc.) and will be approved by executive management. All safety terms shall be construed as defined in the OSHA record keeping regulations. It is recognized that the company maintains a responsibility in the coordination and management of all safety
practices, including contractor activities – contractor safety records will be considered and reviewed for an adjustment to the overall safety metric under management discretion in the event of poor or exemplary contractor safety performance.

 Environmental. The KPI’s that will make up the environmental metric will be created by the management of the specific group (refining,
marketing and logistics etc.) and will be approved by executive management. 
 Group Performance. Group performance will consist of metrics to
measure the financial performance of each segment of the company. In the event a significant reliability event occurs, spanning more than one month, and the monthly operating plan is adjusted to account for this event, senior management may alter
the targeted plan to a more optimum business plan for purposes of calculating the group performance metric for the months so impacted by a suboptimal operating plan. 

Adjusted EBITDA. Earnings Before Interest, Tax, Depreciation and Amortization and non-cash gains or losses (such as inventory gains or losses), as
calculated by the company and as reported in PAR’s annual audited financial statements. The adjusted EBITDA will calculate to a percentage ranging between 50% and 150%. 

Individual Performance Modifier. A percentage used in the calculation of each eligible employee’s bonus award related to his/her performance
rating for the plan year. See below for specifics regarding individual performance. 
 Proration Factor. The company reserves the right to prorate
the bonus payout to any eligible employee if he/she has been employed for less than the full plan year or has been absent for more than 30 consecutive days (excluding vacation time used) or for any other circumstance determined to be relevant. 

  
 2 

 III. Plan Cycle 

The plan is based on the performance goals achieved for the 12 month period from January 1 through December 31, 2015. 

IV. Eligibility 
 Full-time, salaried, exempt employees on
the active employee company payroll as of December 31 of the plan year and at the time the bonus is paid are eligible to be considered for a bonus payout. Some payments may be prorated. Employees not on the active payroll at the
time the bonus is paid will not be eligible to receive the bonus, even if present throughout the metric period. The company will exercise independent discretion in the event an employee is promoted or demoted during the plan year and the employee
has a change in pay grade/bonus target. 
 V. Business Unit Performance Goals 

The PAR president and CEO, in conjunction with the company management team, shall designate and approve the metrics and associated performance goals for each
plan year. 
 VI. Determination of Individual Performance Multiplier 

A bonus target is established for each eligible employee based on the pay grade to which the employee is assigned. Such targets will be prorated to reflect any
changes in pay grade assignment during the term of the plan. 
 Individual performance will be factored into the calculation of each individual’s bonus
award based on the employee’s performance rating as shown below. 
  

							
	 Performance Rating
	  	Number	 	  	Individual Performance Modifier
	 Outstanding
	  	 	5	  	  	115 - 130%
	 Strong
	  	 	4	  	  	105 - 115%
	 Meets expectations
	  	 	3	  	  	95 - 105%
	 Needs Improvement
	  	 	2	  	  	40 - 50%
	 Unsatisfactory
	  	 	1	  	  	0%

  
 3 

 Performance Evaluation System. 

This system is based on the assumption that performance ranking (5-1) and the resultant rating distribution of individual employees will fall roughly into a
bell curve pattern, with very few persons achieving the superior category and similarly very few rated as Needs Improvement, with Unacceptable being reserved only for those whose performance must either change in the near future or their employment
will be terminated. If such a bell curve is not achieved, the president/CEO reserves the right to adjust performance ratings for purposes of bonus calculations. 

VII. Bonus Formula 
 Plan payout will equal an
individual’s Annual Base Salary at end of Year times the Employee Bonus Target (Position Dependent) times the Individual Performance factor times the Business Unit Performance Metric times the adjusted EBITDA Factor.

 Functional Elements of the Incentive Plan 
 Incentive
compensation will be earned based on five key performance metrics which are set by management for the group and approved by executive management. Goals will be set and announced annually. Awards will be rounded to the nearest dollar. 

 

	 	•	 	Adjusted EBITDA factor 

  

	 	•	 	Safety performance 

  

	 	•	 	Environmental performance 

  

	 	•	 	Group performance 

  

	 	•	 	Individual performance factor. 

 Adjusted EBITDA factor will be calculated as set forth herein. The company
will set three adjusted EBIDTA targets: minimum, goal, and maximum. 
  

	 	•	 	Minimum: If adjusted EBITDA is equal to the minimum, the adjusted EBITDA factor will be 50%. If it is below the minimum, the plan is terminated and ay bonus awards are discretionary. 

 

	 	•	 	Goal: If adjusted EBITDA is equal to the goal, the adjusted EBITDA factor will be 100%. 

  

	 	•	 	Maximum: If adjusted EBITDA equals or exceeds the maximum, the adjusted EBITDA factor will be capped at 150%. 

  

	 	•	 	Percentage determined using linear interpolation for in between %. 

  
 4 

 EXAMPLE A: for calculating an individual’s bonus award follows. Assume the employee is at 15%
bonus target, a business unit performance accomplishment of 90%, an adjusted EBITDA factor of 100%, and the employee is a strong (4) performer. 

72,000 Annual Base Salary at end of Plan Year 

X Bonus Target (based on pay grade) 15% 

X Individual Performance factor 115% 

X Business Unit Performance Metric 90% 

X adjusted EBITDA factor 100% 

= Individual Bonus Amount (in whole dollars) 

$72,000 x 15% x 115% x 90% x 100% = $11,178 

Effective bonus is 15.5% 
 EXAMPLE
B: for calculating an individual’s bonus award follows. Assume the employee is at 15% bonus target, a business unit performance accomplishment of 100%, an EBITDA factor of 150%, and the employee is an outstanding (5) performer.

 72,000 Annual Base Salary at end of Plan Year 

X Bonus Target (based on pay grade) 15% 

X Individual Performance factor 130% 

X Business Unit Performance Metric 100% 

X adjusted EBITDA factor 150% 

= Individual Bonus Amount (in whole dollars) 

$72,000 x 15% x 130% x 100% x 150% = $ 21,060.00 

Effective bonus is 29.25% 
 VII. Bonus Plan
Administration 
 Incentive plan payments, if any, will be made once a year, following the release of year-end financials. Payment will be made by direct
deposit to the employee’s designated checking or savings account within three weeks of the release or as soon as administratively possible. 

Discretionary Adjustments to the Plan. PAR may at any time amend, modify or terminate the plan. PAR retains the right to impose a safety, environmental
and/or general performance adjustment at company management discretion. For example, the bonus plan might be “turned off” for a significant safety, environmental or general performance incident at the refinery or for the corporation as a
whole. 

  
 5 

 Non-assignability of Benefits. The benefits payable under this plan or the right to receive future
benefits under the plan may not be anticipated, alienated, pledged, encumbered or subjected to any charge or legal process. 
 Non-guarantee of
Employment. Nothing contained in this plan shall be construed as a contract of employment between the company and any participant, or as right of any participant to be continued in employment of the company or as a limitation of the company to
discharge any of its employees with or without cause. 

  
 6

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