Document:

MATINAS
BIOPHARMA HOLDINGS, INC.

 

_____________________________________________

 

Securities Purchase Agreement

 

_____________________________________________________

 

Warrants

 

____________________________________________________

 

June 10, 2013

 

CONFIDENTIAL

 

    	 

    	 

    

 

NOTICE TO
OFFEREES

 

THE SECURITIES OFFERED HEREBY HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER THE APPLICABLE SECURITIES LAWS OF
ANY STATE OR OTHER JURISDICTION. THIS SECURITIES PURCHASE AGREEMENT AND THE OTHER OFFERING DOCUMENTS DO NOT CONSTITUTE AN OFFER
TO SELL OR SOLICITATION OF AN OFFER TO BUY THE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.

 

THE SECURITIES ARE BEING SOLD FOR INVESTMENT
PURPOSES ONLY, WITHOUT A VIEW TO RESALE OR DISTRIBUTION THEREOF, AND MAY NOT BE TRANSFERRED, RESOLD OR OFFERED FOR RESALE IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND EFFECTIVE REGISTRATION OR QUALIFICATION UNDER THE APPLICABLE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, OR THE AVAILABILITY OF AN EXEMPTION THEREFROM. 

 

AN INVESTMENT MADE IN THE SECURITIES
OFFERED HEREBY IS SPECULATIVE AND SUITABLE ONLY FOR PERSONS WHO HAVE SUBSTANTIAL FINANCIAL RESOURCES, WHO HAVE NO NEED FOR LIQUIDITY
IN THIS INVESTMENT AND WHO UNDERSTAND OR HAVE BEEN ADVISED WITH RESPECT TO THE TAX CONSEQUENCES OF, AND RISK FACTORS ASSOCIATED
WITH, THIS INVESTMENT AND WHO ARE ABLE TO BEAR THE SUBSTANTIAL ECONOMIC RISK OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

NEITHER THE SECURITIES AND EXCHANGE COMMISSION
NOR THE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION HAS APPROVED OR DISAPPROVED OF THESE
SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS SECURITIES PURCHASE AGREEMENT OR ANY OF THE OTHER OFFERING DOCUMENTS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

 

THIS SECURITIES PURCHASE AGREEMENT DOES
NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY STATE OR OTHER JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS NOT AUTHORIZED.

 

CONFIDENTIAL
INFORMATION

 

THE
offeree acknowledges and agrees that: (i) the Offering IS BEING CONDUCTED ON A CONFIDENTIAL BASIS; AND (II) IT WILL BE LEGALLY
BOUND TO RETAIN ALL INFORMATION ABOUT THE COMPANY AND THIS OFFERING ON A CONFIDENTIAL BASIS.

 

    	 

    	 

    

 

CONFIDENTIAL

 

SECURITIES
PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE AGREEMENT (this
“Agreement”), dated as of June 10, 2013, by and between Matinas Biopharma Holdings, Inc., a Delaware corporation (the
“Company”), and the purchaser or purchasers identified on the signature page hereof (“Purchaser”).

RECITALS:

 

WHEREAS, Purchaser desires to purchase and
the Company desires to sell, warrants to acquire shares of common stock, on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the
premises hereof and the agreements set forth herein below, the parties hereto hereby agree as follows:

 

1.           The
Offering.

 

(a)           Private
Offering. The securities offered by this Agreement are being offered in the United States in a private offering (the “Offering”)
of warrants to acquire up to 250,000 shares of the Company’s common stock, $.0001 par value per share (the “Warrants’).
Up to 250,000 Warrants will be sold in the Offering on a “reasonable efforts” basis at a purchase price of $.04 per
Warrant (the “Purchase Price”) pursuant to Section 4(2) of the Securities Act of 1933, as amended (the “Securities
Act”), and Rule 506 of Regulation D thereunder. The Warrants are being offered solely to a limited number of “accredited
investors” as that term is defined in Rule 501(a) of the Securities Act during an offering period commencing June 10, 2013,
and terminating July 10, 2013, unless extended thereafter in the sole discretion of the Company. Each Warrant is initially exercisable
through June 30, 2018 into one (1) share of Common Stock at an exercise price of $2.00 per share, subject to adjustment and redemption.
The general terms of the Warrants are set forth in the Form of Warrant, attached hereto and made a part hereof as Exhibit A.
The Warrants and shares of Common Stock issuable upon exercise of the Warrants are hereinafter referred to collectively as the
“Securities.”

 

(b)           The
Business of the Company; Speculative Investment Activities. The Company has only been recently formed and, to date, its activities
have been limited to organizational efforts. The Company has been formed to make investments in, or to engage in a business combination
with, one or more early-stage businesses. Towards that end, the Company has engaged in preliminary discussions regarding a business
combination with a development stage biopharmaceutical company with a focus on identifying and developing novel pharmaceutical
products, however, there can be no assurances that any such combination will occur. The business of the Company is extremely speculative
and an investment in the Securities should only be made by Purchasers who can afford a total loss of their investment and who understand
the speculative nature of this investment. Purchase of the Securities is subject to other material risk factors identified in this
Agreement.

 

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(c)           Concurrent
Offering. Concurrently, the Company is offering for sale in a private placement transaction, 3,750,000 units; each units consisting
of two (2) shares of the Company’s common stock and one (1) warrant to purchase an additional share of the Company’s
common stock, at a purchase price of $.10 per Unit (the “Concurrent Offering”). Each warrant offered in the Concurrent
Offering (the “Concurrent Warrants”) is initially exercisable into one (1) share of Common Stock at an exercise price
of $2.00 per share, subject to adjustment and redemption. The terms of the Concurrent Warrants are identical to the terms of the
Form of Warrant, attached hereto and made a part hereof as Exhibit A. Participation in this Offering does not provide any
rights to participate in the Concurrent Offering.

 

(d)           Use
of Proceeds. Assuming all of the Securities in the Offering are sold, the net proceeds to the Company are estimated to be approximately
$10,000. The Company intends to use the net proceeds of the Offering to make investments in, or to contribute towards, a business
combination with one or more early-stage businesses, and for general working capital purposes. There can be no assurances, however,
that the net proceeds of this Offering will be sufficient to accomplish the business purpose of the Company. No placement fees
or other sales commissions will be payable in connection with the Offering.

 

2.           Sale
and Purchase of Securities.

 

(a)           Sale
and Purchase of the Securities. Subject to the terms and conditions hereof, the Company agrees to sell, and Purchaser agrees
to purchase, the number of Warrants specified on the signature page of this Agreement at a purchase price of $.04 per Warrant.
The aggregate Purchase Price for the number of Warrants subscribed for shall be as set forth on the signature page hereto and shall
be payable upon execution hereof by certified or bank check or wire transfer of immediately available funds. The Warrants are being
sold on a reasonable “best efforts” basis and there is no minimum sale amount of Warrants prior to release of funds
to the Company.

 

(b)           Subscription
Procedure. In order to purchase Warrants, Purchaser shall deliver to the Company, (i) one completed and duly executed copy
of this Agreement; and (ii) immediately available funds in an amount equal to the Purchase Price. Execution and delivery of this
Agreement shall constitute an irrevocable subscription for that number of Warrants set forth on the signature page hereto. Payment
for the Warrants may be made either by certified or bank check made payable to the Company, or by wire transfer to the Company
(with wire transfer instructions to be provided upon request). This Agreement may be rejected by the Company, in whole or in part,
in its sole discretion, in which event the Purchase Price will be returned (by mail) to Purchaser within five (5) business days
thereafter.

 

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(c)           Closing.
Upon the Company’s acceptance of a Purchaser’s subscription and upon the receipt of the Purchase Price, the Company
shall conduct one or more closings at such time and in such manner as the Company shall determine in its sole discretion (the “Closing”).
There is no minimum number of Warrants to be sold before one or more Closings can occur. Thus, at the time a Purchaser subscribes,
it will not be assured that all of the Warrants will be sold in the Offering. At each Closing, the Company shall countersign this
Agreement and confirm the issuance of the Warrants specified on the signature page of this Agreement in book form on the transfer
books and records of the Company, against payment of the Purchase Price specified on the signature page of this Agreement by wire
transfer or certified or bank check payable to the Company. Upon the Closing, the subscription evidenced hereby, if not previously
rejected by the Company, will, in reliance upon Purchaser’s representations and warranties contained herein, be accepted,
in whole or in part, by the Company. If Purchaser’s subscription is accepted only in part, this Agreement will be marked
to indicate such fact, and the Company will return to Purchaser the portion of the funds tendered by Purchaser representing the
unaccepted portion of Purchaser’s subscription, without interest or deduction of any kind.

 

3.           Representations
and Warranties of Purchaser. Purchaser represents and warrants to the Company as follows:

 

(a)           Organization
and Qualification.

 

(i)           If
Purchaser is an entity, Purchaser is duly organized, validly existing and in good standing under the laws of its jurisdiction of
organization, with the corporate or other entity power and authority to own and operate its business as presently conducted, except
where the failure to be or have any of the foregoing would not have a material adverse effect on Purchaser, and Purchaser is duly
qualified as a foreign corporation or other entity to do business and is in good standing in each jurisdiction where the character
of its properties owned or held under lease or the nature of their activities makes such qualification necessary, except for such
failures to be so qualified or in good standing as would not have a material adverse effect on it.

 

(ii)           If
Purchaser is an entity, the address of its principal place of business is as set forth on the signature page hereto, and if Purchaser
is an individual, the address of its principal residence is as set forth on the signature page hereto.

 

(b)           Authority;
Validity and Effect of Agreement.

 

(i)           If
Purchaser is an entity, Purchaser has the requisite corporate or other entity power and authority to execute and deliver this Agreement
and perform its obligations under this Agreement. The execution and delivery of this Agreement by Purchaser, the performance by
Purchaser of its obligations hereunder and all other necessary corporate or other entity action on the part of Purchaser have been
duly authorized by its Board of Directors or similar governing body, and no other corporate or other entity proceedings on the
part of Purchaser is necessary for Purchaser to execute and deliver this Agreement and perform its obligations hereunder.

 

(ii)           This
Agreement has been duly and validly authorized, executed and delivered by Purchaser and, assuming it has been duly and validly
executed and delivered by the Company, constitutes a legal, valid and binding obligation of Purchaser, in accordance with its terms.

 

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(c)           No
Conflict; Required Filings and Consents. Neither the execution and delivery of this Agreement by Purchaser nor the performance
by Purchaser of its obligations hereunder will: (i) if Purchaser is an entity, conflict with Purchaser’s Articles of Incorporation
or Bylaws, or other similar organizational documents; (ii) violate any statute, law, ordinance, rule or regulation, applicable
to Purchaser or any of the properties or assets of Purchaser; or (iii) violate, breach, be in conflict with or constitute a default
(or an event which, with notice or lapse of time or both, would constitute a default) under, or permit the termination of any provision
of, or result in the termination of, the acceleration of the maturity of, or the acceleration of the performance of any obligation
of Purchaser under, or result in the creation or imposition of any lien upon any properties, assets or business of Purchaser under,
any material contract or any order, judgment or decree to which Purchaser is a party or by which it or any of its assets or properties
is bound or encumbered except, in the case of clauses (ii) and (iii), for such violations, breaches, conflicts, defaults or other
occurrences which, individually or in the aggregate, would not have a material adverse effect on its obligation to perform its
covenants under this Agreement.

 

(d)           Accredited
Investor. Purchaser is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D under the
Securities Act. If Purchaser is an entity, Purchaser was not formed for the specific purpose of acquiring the Securities, and,
if it was, all of Purchaser’s equity owners are “accredited investors” as defined above.

 

(e)           No
Government Review. Purchaser understands that neither the United States Securities and Exchange Commission (“SEC”)
nor any securities commission or other governmental authority of any state, country or other jurisdiction has approved the issuance
of the Securities or passed upon or endorsed the merits of the Securities, or this Agreement or any of the other documents relating
to the proposed Offering (collectively, the “Offering Documents”), or confirmed the accuracy of, determined the adequacy
of, or reviewed this Agreement or the other Offering Documents.

 

(f)           Investment
Intent. The Securities are being acquired for the Purchaser’s own account for investment purposes only, not as a nominee
or agent and not with a view to the resale or distribution of any part thereof, and Purchaser has no present intention of selling,
granting any participation in or otherwise distributing the same. By executing this Agreement, Purchaser further represents that
Purchaser does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation
to such person or third person with respect to any of the Securities.

 

(g)           Restrictions
on Transfer. Purchaser understands that the Securities are “restricted securities” as such term is defined in Rule
144 under the Securities Act and have not been registered under the Securities Act or registered or qualified under any state securities
law, and may not be, directly or indirectly, sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of
without registration under the Securities Act and registration or qualification under applicable state securities laws or the availability
of an exemption therefrom. In any case where such an exemption is relied upon by Purchaser from the registration requirements of
the Securities Act and the registration or qualification requirements of such state securities laws, Purchaser shall furnish the
Company with an opinion of counsel stating that the proposed sale or other disposition of such securities may be effected without
registration under the Securities Act and will not result in any violation of any applicable state securities laws relating to
the registration or qualification of securities for sale, such counsel and opinion to be satisfactory to the Company. Purchaser
acknowledges that it is able to bear the economic risks of an investment in the Securities for an indefinite period of time, and
that its overall commitment to investments that are not readily marketable is not disproportionate to its net worth.

 

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(h)           Investment
Experience. Purchaser has such knowledge, sophistication and experience in financial, tax and business matters in general,
and investments in securities in particular, that it is capable of evaluating the merits and risks of this investment in the Securities,
and Purchaser has made such investigations in connection herewith as it deemed necessary or desirable so as to make an informed
investment decision without relying upon the Company for legal or tax advice related to this investment. Purchaser hereby confirms
its understanding that the Company’s business plan is entirely speculative in its nature, as the Company will be investing
in one or more early-stage businesses, or contributing towards a business combination with one or more early-stage or start-up
businesses, and that the Purchaser will be relying entirely on management’s judgment as to the type and nature of the business
opportunity pursued, and the Purchaser will have no opportunity to review, vote upon, or perform any due diligence upon any of
such business opportunities. Purchaser further represents and warrants that it is familiar with the risks inherent in making investments
in early-stage or start-up businesses, and that the Purchaser’s investment goals and strategy include making speculative
investments in start-up ventures. In making its decision to acquire the Securities, Purchaser has not relied upon any information
other than information provided to Purchaser by the Company or its representatives and contained herein and in the other Offering
Documents.

 

(i)           Access
to Information. Purchaser acknowledges and understands that it has reviewed such information as it has deemed necessary in
order to make an informed investment decision with respect to an investment in the Securities; that it has had the opportunity
to ask representatives of the Company certain questions and request certain additional information regarding the terms and conditions
of such investment and the finances, operations, business and prospects of the Company and has had any and all such questions and
requests answered to its satisfaction; and that it understands the risks and other considerations relating to such investment.

 

(j)           Reliance
on Representations. Purchaser understands that the Securities are being offered and sold to it in reliance on specific exemptions
from the registration requirements of the federal and state securities laws and that the Company is relying in part upon the truth
and accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments and understandings
of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of such Purchaser
to acquire the Securities. Purchaser represents and warrants to the Company that any information that Purchaser has heretofore
furnished or furnishes herewith to the Company is complete and accurate, and further represents and warrants that it will notify
and supply corrective information to the Company immediately upon the occurrence of any change therein occurring prior to the Company’s
issuance of the Securities. Within five (5) days after receipt of a request from the Company, Purchaser will provide such information
and deliver such documents as may reasonably be necessary to comply with any and all laws and regulations to which the Company
is subject.

 

(k)           No
General Solicitation. Purchaser is unaware of, and in deciding to participate in the Offering is in no way relying upon, and
did not become aware of the Offering through or as a result of, any form of general solicitation or general advertising including,
without limitation, any article, notice, advertisement or other communication published in any newspaper, magazine or similar media,
or broadcast over television or radio or the internet, in connection with the Offering.

 

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(l)           Placement
and Finder’s Fees. No agent, broker, investment banker, finder, financial advisor or other person acting on behalf of
Purchaser or under its authority is or will be entitled to any broker’s or finder’s fee or any other commission or
similar fee, directly or indirectly, in connection with the Offering, and no person is entitled to any fee or commission or like
payment in respect thereof based in any way on agreements, arrangements or understanding made by or on behalf of Purchaser.

 

(m)           High
Risk Investment; Material Offering Risks. While management is optimistic about the opportunities available to the Company,
an investment in the Securities involves a high degree of risk as the Company remains in the early stage of its development, having
only been recently formed, and having made no investments, to date. Accordingly, the Securities are a suitable investment only
for those investors who can afford a total loss of their investment and who recognize the material risks associated with investing
in an early-stage enterprise. Purchasing Securities in the Offering will subject the Purchaser to certain material risks, including,
but not limited to, each of the following: (i) the Company will, for the foreseeable future, be totally reliant on the efforts
of Stephen Harrington, its sole officer and director; (ii) while the Company has engaged in preliminary discussions regarding a
business combination with a development stage biopharmaceutical company with a focus on identifying and developing novel pharmaceutical
products, there can be no assurances that any such combination will occur; (iii) there can be no assurances that the proceeds of
this Offering will be sufficient to assure the Company accomplishes its business purpose; (iv) Purchasers will be making their
investment on a “blind” basis with no input on or ability to evaluate any potential investments of the Company, as
management will have virtually unrestricted discretion as to the investments made by the Company; (v) the Company may consummate
a business combination with a company in any industry management selects and is not limited to any particular industry or type
of business; (vi) in connection with a business combination, the Company will likely issue a substantial amount of securities;
thus, substantially diluting the percentage interests of the Purchasers of the Securities and leaving them with a small percentage
of the total outstanding securities of the combined enterprise; (vii) the Company may participate in a business combination with
a company that is affiliated with management or certain of the shareholders of the Company, or with whom certain shareholders have
or will have a business or equity interest; thus, presenting risks of conflicts of interest that the Purchasers will have no input
in evaluating; (viii) the Purchaser understands that there is no guarantee of any financial return on this investment and that
this investment is not liquid; (ix) the Offering is being undertaken on a “best efforts, no minimum” basis; accordingly,
investors will not know at the time of investment whether the Offering will be successful or the percentage of the Company owned
by them; (x) the Company is a start-up enterprise with minimal assets and no current earnings; (xi) the Company has offered to
register the Shares issuable upon exercise of the Warrants, however, any such registration rights are limited as they only apply
to the extent of registration rights granted to private placement investors in the future, and may be subordinated to the rights
of such private placement investors; and (xii) the offering price of the Securities offered hereby has been determined solely by
the Company and does not necessarily bear any relationship to the value of the Company’s assets, current or potential earnings
of the Company, or any other recognized criteria used for measuring value, and therefore, there can be no assurance that the offering
price of the Securities is representative of the actual value of the Securities.

 

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(n)           Legends.
The certificates and agreements evidencing the Securities shall have endorsed thereon the following legend (and appropriate notations
thereof will be made in the Company’s stock transfer books), and stop transfer instructions reflecting these restrictions
on transfer will be placed with the transfer agent of the Securites:

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS.
THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT
AND REGISTRATION OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN AVAILABLE EXEMPTION THEREFROM. NO TRANSFER
OF THE SECURITIES REPRESENTED HEREBY MAY BE MADE IN THE ABSENCE OF SUCH REGISTRATION OR QUALIFICATION UNLESS THERE SHALL HAVE BEEN
DELIVERED TO THE ISSUER A WRITTEN OPINION OF UNITED STATES COUNSEL OF RECOGNIZED STANDING, IN FORM AND SUBSTANCE SATISFACTORY TO
THE ISSUER, TO THE EFFECT THAT SUCH TRANSFER MAY BE MADE WITHOUT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND REGISTRATION
OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.

 

(o)           Involvement
in Certain Legal Proceedings. Annex I to the Signature Page hereof contains a true and correct questionnaire covering Purchaser’s
prior and pending involvement in certain legal proceedings.

 

4.           Representations
and Warranties of the Company. The Company represents and warrants to Purchaser as follows:

 

(a)           Organization
and Qualification. The Company is duly organized, validly existing and in good standing under the laws of its jurisdiction
of organization, with the corporate power and authority to own and operate its business as presently conducted, except where the
failure to be or have any of the foregoing would not have a material adverse effect on the Company. The Company is duly qualified
as a foreign corporation or other entity to do business and is in good standing in each jurisdiction where the character of its
properties owned or held under lease or the nature of their activities makes such qualification necessary, except for such failures
to be so qualified or in good standing as would not have a material adverse effect on the Company.

 

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(b)           Authority;
Validity and Effect of Agreement.

 

(i)           The
Company has the requisite corporate power and authority to execute and deliver this Agreement, perform its obligations under this
Agreement, and conduct the Offering. The execution and delivery of this Agreement by the Company, the performance by the Company
of its obligations hereunder, the Offering and all other necessary corporate action on the part of the Company have been duly authorized
by its Board of Directors, and no other corporate proceedings on the part of the Company is necessary to authorize this Agreement
or the Offering. This Agreement has been duly and validly executed and delivered by the Company and, assuming that it has been
duly authorized, executed and delivered by Purchaser, constitutes a legal, valid and binding obligation of the Company, in accordance
with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar
laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding
in equity or at law) and an implied covenant of good faith and fair dealing.

 

(ii)           The
Warrants have been duly authorized and, when issued and paid for in accordance with this Agreement, will be validly issued, fully
paid and non-assessable shares of Common Stock with no personal liability resulting solely from the ownership of such shares and
will be free and clear of all liens, charges, restrictions, claims and encumbrances imposed by or through the Company. The shares
of Common Stock issuable upon exercise of the Warrants when issued and paid for in accordance with the Warrants, will be duly authorized,
validly issued, fully paid and non-assessable shares of Common Stock with no personal liability resulting solely from the ownership
of such shares and will be free and clear of all liens, charges, restrictions, claims and in encumbrances imposed by or through
the Company.

 

(c)           No
Conflict. Neither the execution and delivery of this Agreement by the Company nor the performance by the Company of its obligations
hereunder will: (i) conflict with the Company’s Articles of Incorporation or Bylaws; (ii) violate any statute, law, ordinance,
rule or regulation, applicable to the Company or any of the properties or assets of the Company; or (iii) violate, breach, be in
conflict with or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under,
or permit the termination of any provision of, or result in the termination of, the acceleration of the maturity of, or the acceleration
of the performance of any obligation of the Company, or result in the creation or imposition of any lien upon any properties, assets
or business of the Company under, any material contract or any order, judgment or decree to which the Company is a party or by
which it or any of its assets or properties is bound or encumbered except, in the case of clauses (ii) and (iii), for such violations,
breaches, conflicts, defaults or other occurrences which, individually or in the aggregate, would not have a material adverse effect
on its obligation to perform its covenants under this Agreement;

 

(d)           Capitalization.
The Company is currently authorized to issue 150 million shares of Common Stock, $0.0001 par value per share and 10 million shares
of “blank check” Preferred Stock, $0.0001 par value per share. To date, the Company has issued 100 shares of its Common
Stock to its founder. No securities of the Company are entitled to preemptive or similar rights, and no entity or person has any
right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated
by this Agreement unless any such rights have been waived. The issue and sale of the Securities will not, immediately or with the
passage of time, obligate the Company to issue shares of Common Stock or other securities to any entity or person and will not
result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under such securities.

 

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(e)           Consents;
Required Filings. The Company is not required to obtain any consent, waiver, authorization, approval or order of, give any
notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or
other person or entity in connection with the execution, delivery and performance by the Company of this Agreement or the issuance,
sale or delivery of the Securities other than (i) any filings required by state securities laws, if any, and (ii) the filing of
a Notice of a Sale of Securities on Form D with the SEC under Regulation D of the Securities Act.

 

(f)           Litigation.
There is no pending or, to the best knowledge of the Company, threatened action, suit, proceeding or investigation before any court,
governmental agency or body, or arbitrator having jurisdiction over the Company, or any of its affiliates that would affect the
execution by the Company or the performance by the Company of its obligations under this Agreement, and the other Offering Documents.
There is no pending or, to the best knowledge of the Company, threatened action, suit, proceeding or investigation before any court,
governmental agency or body, or arbitrator having jurisdiction over the Company, or any of its affiliates which litigation if adversely
determined could result in a material adverse effect to the Company.

 

5.           Indemnification.

 

(a)           Purchaser
agrees to indemnify, defend and hold harmless the Company and its respective affiliates and agents, from and against any and all
demands, claims, actions or causes of action, judgments, assessments, losses, liabilities, damages or penalties and reasonable
attorneys’ fees and related disbursements incurred by the Company (collectively, “Losses”) which directly or
indirectly relate to, result from, or arise out of, a breach of any representations or warranties made by Purchaser herein, and
Purchaser agrees that in the event of any breach of any representations or warranties made by Purchaser herein, the Company may,
at its option, forthwith rescind the sale of the Securities to Purchaser.

 

(b)           The
party to be indemnified hereunder (the “Indemnified Party”) shall promptly notify the party providing indemnification
hereunder (the “Indemnifying Party”) of any claim, demand, action or proceeding for which indemnification may be sought
under Section 5(a) of this Agreement, and, if such claim, demand, action or proceeding is a third party claim, demand, action or
proceeding (collectively, an “Action”), the Indemnifying Party will have the right at its expense to assume the defense
thereof using counsel reasonably acceptable to the Indemnified Party; provided, however any failure or delay to so notify the Indemnifying
Party will not relieve it from its obligation to indemnify any Indemnified Party, unless and only to the extent that such failure
or delay results in the forfeiture by the Indemnifying Party of substantial rights and defenses or the Indemnifying Party is otherwise
materially prejudiced by such failure or delay. Any Indemnified Party shall have the right to employ separate counsel in any such
action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified
Party except to the extent that (i) the employment thereof has been specifically authorized by the Indemnifying Party in writing,
(ii) the Indemnifying Party has failed after a reasonable period of time to assume such defense and to employ counsel or (iii)
in such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of
the Indemnifying Party and the position of such Indemnified Party, in which case the Indemnifying Party shall be responsible for
the reasonable fees and expenses of no more than one such separate counsel for the Indemnified Party. In connection with any such
third party Action, Purchasers and the Company shall cooperate with each other and provide each other with access to relevant books
and records in their possession. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, which
shall not be unreasonably withheld, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened
Action in respect of which any Indemnified Party is or could have been a party and indemnity was or could have been sought hereunder
by such Indemnified Party, unless such settlement, compromise or consent includes an unconditional release of such Indemnified
Party from all liability on claims that are the subject matter of such Action. Further, no Indemnified Party seeking indemnification
hereunder will, without the prior written consent of the Indemnifying Party, which shall not be unreasonably withheld, settle,
compromise, consent to the entry of any judgment in or otherwise seek to terminate any Action. The Indemnifying Party shall not
be liable for settlement of any Action effected without its written consent.

 

    	9

    	 

    

 

6.           Registration
Rights.

 

(a)           Subject
to the terms of subsection (b) below, the Company has agreed to provide incidental “piggyback” registration rights
to the holders of the Warrants (the “Warrant Holders”), such that, concurrent with the filing of any registration statement
under the Securities Act for the purpose of registering the issuance of new or re-offer of existing securities of the Company,
excluding registration statements on SEC forms S-4 and S-8, or any similar or successor forms, it will agree to register the re-offer
of the Shares issuable upon exercise of the Warrants, if at all.

 

(b)           Notwithstanding
the foregoing, the terms of such registration shall be granted in a manner consistent with the terms of the first registration
rights agreement that may be issued by the Company within twelve (12) months of the date hereof, to investors in a private placement
offering (the “Investors”) undertaken in conjunction with a third-party (the “Operating Company”) business
combination involving the Company (the “Subsequent Registration Rights Agreement”); and will be subject to the holders
of the Warrants agreeing to enter into and become a party to such form of Subsequent Registration Rights Agreement. Thus, the grant
of registration rights under subsection (a) above, will be subject to limitations covering, among others, registration exclusions,
allocations, black-out periods, resale restrictions, underwriter cut-backs and cut-backs to accommodate SEC Rule 415 issues, in
a manner consistent with such Subsequent Registration Rights Agreement; with the understanding, however, that if any such allocations,
resale restrictions, cut-backs and exclusions (collectively, the “Cut-backs and Exclusions”) need to be allocated among
the Warrant Holders, warrant holders (“Operating Company Warrant Holders”) of the Operating Company and the Investors,
the Warrant Holders agree that they shall be subject to such Cut-backs and Exclusions prior to the Operating Company Warrant Holders
and the Investors.

 

    	10

    	 

    

 

7.           Confidentiality.
Purchaser acknowledges and agreements that:

 

(a)           This
Agreement and the other Offering Documents have been furnished to Purchaser by the Company for the sole purpose of enabling Purchaser
to consider and evaluate an investment in the Company, and will be kept confidential by Purchaser and not used for any other purpose.

 

(b)           The
information contained herein shall not, without the prior written consent of the Company, be disclosed by Purchaser to any person
or entity, other than Purchaser’s personal financial and legal advisors for the sole purpose of evaluating an investment
in the Company, and will not, directly or indirectly, disclose or permit Purchaser’s personal financial and legal advisors
to disclose, any of such information without the prior written consent of the Company.

 

(c)           Purchaser
shall make its representatives aware of the terms of this section and to be responsible for any breach of this Agreement by such
representatives.

 

(d)           Purchaser
shall not, without the prior written consent of the Company, directly or indirectly, make any statements, public announcements
or release to trade publications or the press with respect to the subject matter of this Agreement and the other Offering Documents.

 

(e)           If
Purchaser decides to not pursue further investigation of the Company or to not participate in the Offering, Purchaser will promptly
return this Agreement, the other Offering Documents and any accompanying documentation to the Company.

 

8.           Entire
Agreement. This Agreement contains the entire agreement between the parties and supercedes all prior agreements and understandings,
both written and oral, between the parties with respect to the subject matter hereto, and no party shall be liable or bound to
any other party in any manner by any warranties, representations, guarantees or covenants except as specifically set forth in this
Agreement. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

 

9.           Amendment
and Modification. This Agreement may not be amended, modified or supplemented except by an instrument or instruments in writing
signed by the party against whom enforcement of any such amendment, modification or supplement is sought.

 

10.           Extensions
and Waivers. At any time prior to the Closing, the parties hereto entitled to the benefits of a term or provision may (a) extend
the time for the performance of any of the obligations or other acts of the parties hereto, (b) waive any inaccuracies in the representations
and warranties contained herein or in any document, certificate or writing delivered pursuant hereto, or (c) waive compliance with
any obligation, covenant, agreement or condition contained herein. Any agreement on the part of a party to any such extension or
waiver shall be valid only if set forth in an instrument or instruments in writing signed by the party against whom enforcement
of any such extension or waiver is sought. No failure or delay on the part of any party hereto in the exercise of any right hereunder
shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant
or agreement.

 

    	11

    	 

    

 

11.           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns, provided, however, that no party hereto may assign its rights or delegate its obligations under this Agreement without
the express prior written consent of the other party hereto. Except as provided in Section 5, nothing in this Agreement is intended
to confer upon any person not a party hereto (and their successors and assigns) any rights, remedies, obligations or liabilities
under or by reason of this Agreement.

 

12.           Survival
of Representations, Warranties and Covenants. The representations and warranties contained herein shall survive the Closing
and shall thereupon terminate eighteen (18) months from the Closing, except that the representations contained in Sections 3(a),
3(b), 4(a), and 4(b) shall survive indefinitely. All covenants and agreements contained herein which by their terms contemplate
actions following the Closing shall survive the Closing and remain in full force and effect in accordance with their terms. All
other covenants and agreements contained herein shall not survive the Closing and shall thereupon terminate.

 

13.           Headings;
Definitions. The Section headings contained in this Agreement are inserted for convenience of reference only and will not affect
the meaning or interpretation of this Agreement. All references to Sections contained herein mean Sections of this Agreement unless
otherwise stated. All capitalized terms defined herein are equally applicable to both the singular and plural forms of such terms.

 

14.           Severability.
If any provision of this Agreement or the application thereof to any person or circumstance is held to be invalid or unenforceable
to any extent, the remainder of this Agreement shall remain in full force and effect and shall be reformed to render the Agreement
valid and enforceable while reflecting to the greatest extent permissible the intent of the parties.

 

15.           Notices.
All notices hereunder shall be sufficiently given for all purposes hereunder if in writing and delivered personally, sent by documented
overnight delivery service or, to the extent receipt is confirmed, telecopy, telefax or other electronic transmission service to
the appropriate address or number as set forth below:

 

If to the Company:

 

Matinas Biopharma Holdings, Inc.

600 W. Germantown Pike, Suite 400

Plymouth Meeting, PA 19462

Attention: Stephen P. Harrington, President

 

If to Purchaser:

 

To that address indicated on the signature page hereof.

 

16.           Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard
to the laws that might otherwise govern under applicable principles of conflicts of laws thereof.

 

    	12

    	 

    

 

17.           Arbitration.
If a dispute arises as to the interpretation of this Agreement, it shall be decided in an arbitration proceeding conforming to
the Rules of the American Arbitration Association applicable to commercial arbitration then in effect at the time of the dispute.
The arbitration shall take place in New York, New York. The decision of the arbitrators shall be conclusively binding upon the
parties and final, and such decision shall be enforceable as a judgment in any court of competent jurisdiction. The parties shall
share equally the costs of the arbitration.

 

18.           No
Separate Counsel for Investors. Fox Rothschild LLP has acted as counsel for the Company and not as counsel for the Purchaser.
Unless separately retained by the Purchaser (at its expense), no counsel as acted for the Purchaser.

 

19.           Counterparts.
This Agreement may be executed and delivered by facsimile in two or more counterparts, each of which shall be deemed to be an original,
but all of which together shall constitute one and the same agreement.           

 

[Remainder of page intentionally left blank]

 

    	13

    	 

    

 

IN WITNESS WHEREOF, intending to be legally bound, the parties
hereto have caused this Agreement to be executed as of the date set forth below.

 

	 	 	Individual Purchasers:
	 	 	 
	 	 	PURCHASER
	Date:		 	 
	 	 	Individual Purchasers:
	 	 	 
	 	 	 
	 	 	Name:
	 	 	 
	 	 	Entity Purchasers:
	 	 	 
	 	 	 
	 	 	Name of Company
	 	 	 
	 	 	By:	 
	 	 	 	Name:
	 	 	 	Title:
	 	 	 
	 	 	All Purchasers Complete:
	 	 	 	 	 

	 	 	Address:	 
	 	 	 
	 	 	 

	 	 	Email address:	 

	 	 	Social Security/Tax I.D. Number:
	 	 	 
	 	 	 
	 	 	Number of Warrants Purchased:  
	 	 	________________
	 	 	 
	 	 	Purchase Price
	 	 	@ $.04 per Warrant:

 

	 	 	 $	________________________

 

	 	 	MATINAS BIOPHARMA HOLDINGS, INC.
	 	 	 
	Date:	 	 	By:	 
	 	 	 	Stephen P. Harrington
	 	 	 	President

 

    	14

    	 

    

 

annex
I to Purchaser Signature Page

 

Purchaser makes the following representations
regarding its involvement in certain legal proceedings:

 

(i)           Have
any of the following events occurred during the past ten years? 

 

(1)           A
petition under the Federal bankruptcy laws or any state or foreign insolvency law was filed by or against you, your business or
your property, or a receiver, fiscal agent or similar officer was appointed by a court for your business or your property.

 

 ̈           Yes      
 ̈           No

 

(2)           A
petition under the Federal bankruptcy laws or any state or foreign insolvency law was filed by or against any partnership, corporation
or other business association in which you were a general partner or an “executive officer” within two years before
the time of such filing or a receiver, fiscal agent or similar officer was appointed by a court for any partnership, corporation
or other business association in which you were a general partner or an “executive officer” within two years before
the time of such appointment.

 

 ̈           Yes      
 ̈           No

 

(3)           You
were convicted in a criminal proceeding or are a named subject of a pending criminal proceeding (excluding traffic violations and
other minor offenses).

 

 ̈           Yes      
 ̈           No

 

(4)           You
were the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining you from, or otherwise limiting, the following activities:

 

a.           acting
as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage
transaction merchant, any other person regulated by the Commodity Futures Trading Commission (“CFTC”), or an “associated”
person of any of the foregoing;

 

 ̈           Yes      
 ̈           No

 

b.           acting
as an investment adviser, underwriter, broker or dealer in securities, or as an “affiliated” person, director or employee
of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or
practice in connection with such activity;

 

 ̈           Yes      
 ̈           No

 

c.           engaging
in any type of business practice; or

 

    	15

    	 

    

 

 ̈           Yes      
 ̈           No

 

d.           engaging
in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal
or state securities laws or Federal commodities laws.

 

 ̈           Yes      
 ̈           No

 

(5)           You
were the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or state authority
barring, suspending or otherwise limiting for more than 60 days your right to engage in any activity described in paragraph 4(a)(iv)(A)
or 4(a)(iv) (B) above or your right to be “associated” with persons engaged in any such activity. 

 

 ̈           Yes      
 ̈           No

 

(6)           You
were found by a court of competent jurisdiction in a civil action or by the U.S. Securities and Exchange Commission (“SEC”)
to have violated any Federal or state securities law, and the judgment in such civil action or finding by the SEC has not been
subsequently reversed, suspended or vacated, or you are presently the subject of any investigation by the SEC that could result
in the finding of such a violation.

 

 ̈           Yes      
 ̈           No

 

(7)           You
were found by a court of competent jurisdiction in a civil action or by the CFTC to have violated any Federal commodities law,
and the judgment in such civil action or finding by the CFTC has not been subsequently reversed, suspended or vacated, or you are
presently the subject of any investigation by the CFTC that could result in the finding of such a violation.

 

 ̈           Yes      
 ̈           No

 

(8)           You
were the subject of, or a party to, any Federal or state judicial or administrative order, judgment, decree or finding, not subsequently
reversed, suspended or vacated, related to an alleged violation of:

 

a.           any
Federal or state securities or commodities law or regulation;

 

b.           any
law or regulation with respect to any financial institution or insurance company (including, but not limited to, a temporary or
permanent injunction, order of disgorgement or restitution, civil monetary penalty or temporary or permanent cease and desist order,
or removal or prohibition order); or

 

c.           any
law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity.

 

 ̈           Yes      
 ̈           No

 

    	16

    	 

    

 

(9)           You
were the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of the Financial Industry
Regulatory Authority, National Association of Securities Dealers, New York Stock Exchange, or any other self-regulatory organization,
any “registered entity” (as defined under the Commodities Exchange Act) or any equivalent exchange, association, entity
or organization that has disciplinary authority over its members or persons “associated” with its members.

 

 ̈           Yes      
 ̈           No

 

(ii)           If
the answer is “Yes” to any of the foregoing questions, please describe such event below. Please include in your explanation
any mitigating circumstances, if you believe it appropriate. Please use additional sheets to answer if necessary.

 

(iii)           Do
you know of any pending or contemplated legal proceedings, including administrative proceedings and investigations by governmental
authorities, to which either you or any other director, officer or “affiliate” of the Company or any owner of more
than 5% of the Company’s securities, or any “associate” of any such director, officer, “affiliate”
or 5% security holder, is or may be a party adverse to the Company or any of its “subsidiaries” or has an interest
adverse to the Company or any of its “subsidiaries”?

 

 ̈           Yes      
 ̈           No

 

(iv)           If
the answer is “yes,” please provide basic information about the proceedings below (we will contact you for specifics).

 

(v)           Are
you aware of any other pending, threatened or contemplated legal proceedings to which the Company or any of its “subsidiaries”
is a party or to which any of their property is the subject?

 

 ̈           Yes      
 ̈           No

 

(vi)           If
the answer is “yes,” please provide basic information about the proceedings below (we will contact you for specifics).

 

(vii)           Do
you know of any legal, regulatory or administrative proceeding brought or contemplated by any governmental authority (including
but not limited to antitrust, price-fixing, tax, environmental, copyright or patent litigation) to which the Company or any “subsidiary”
is or may be a party or of which the Company or any “subsidiary” is or may be subject?

 

 ̈           Yes      
 ̈           No

 

    	17

    	 

    

 

(1)           If
the answer is “yes,” please provide basic information about the proceedings below (we will contact you for specifics).

 

	 	ATTESTED TO:
	 	 
	 	PURCHASER
	 	 
	 	Individual Purchasers:
	 	 
	 	 
	 	Name:
	 	 
	 	Entity Purchasers:
	 	 
	 	 
	 	Name of Company

 

	 	By:	 
	 	Name:
	 	Title:

 

    	18

    	 

    

 

EXHIBIT A

FORM OF WARRANT

 

    	19

    	 

    

 

Warrant Certificate No. ___

 

NEITHER THE SECURITIES REPRESENTED BY THIS
CERTIFICATE NOR THE SECURITIES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED,
SOLD, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND
ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF
COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE
OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
ACT OR APPLICABLE STATE SECURITIES LAWS.

 

	Effective Date: [   ], 2013	Void After: June 30, 2018

 

MATINAS BIOPHARMA HOLDINGS, INC.

 

WARRANT TO PURCHASE COMMON STOCK

 

Matinas BioPharma
Holdings, Inc., a Delaware corporation (the “Company”), for value received on [        ], 2013 (the “Effective
Date”), hereby issues to [        ] (the “Holder” or “Warrant Holder”) this Warrant
(the “Warrant”) to purchase, [          ] shares (each such share as from time to time adjusted as hereinafter
provided being a “Warrant Share” and all such shares being the “Warrant Shares”) of the Company’s
Common Stock (as defined below), at the Exercise Price (as defined below), as adjusted from time to time as provided herein, on
or before June 30, 2018 (the “Expiration Date”), all subject to the following terms and conditions. This Warrant
is one of a series of warrants of like tenor that have been issued in connection with the Company’s private offering solely
to accredited investors of units in accordance with, and subject to, the terms and conditions described in the Securities Purchase
Agreement dated June 10, 2013, as the same may be amended and supplemented from time to time (the “Subscription Agreement”).
[Comment – all these warrants should expire on same day, even though may be more than one closing. I choose June 30]

 

As used in this Warrant,
(i) “Business Day” means any day other than Saturday, Sunday or any other day on which commercial banks in the
City of New York, New York, are authorized or required by law or executive order to close; (ii) “Common Stock”
means the common stock of the Company, par value $0.0001 per share, including any securities issued or issuable with respect thereto
or into which or for which such shares may be exchanged for, or converted into, pursuant to any stock dividend, stock split, stock
combination, recapitalization, reclassification, reorganization or other similar event; (iii) “Exercise Price”
means $2.00 per share of Common Stock, subject to adjustment as provided herein; (iv) “Trading
Day” means any day on which the Common Stock is traded (or available for trading) on its principal trading market;
(v) “Affiliate” means any person that, directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with, a person, as such terms are used and construed in Rule 144 promulgated under
the Securities Act of 1933, as amended (the “Securities Act”) and (vi) “Warrantholders” means
the holders of Warrants issued pursuant to the Subscription Agreement. 

 

    	20

    	 

    

 

		1.	DURATION AND EXERCISE OF WARRANTS

 

(a)           Exercise
Period. The Holder may exercise this Warrant in whole or in part on any Business Day on or before 5:00 P.M., Eastern Time,
on the Expiration Date, at which time this Warrant shall become void and of no value.

 

		(b)	Exercise Procedures.

 

(i)           While this Warrant
remains outstanding and exercisable in accordance with Section 1(a), in addition to the manner set forth in Section 1(b)(ii) below,
the Holder may exercise this Warrant in whole or in part at any time and from time to time by:

 

(A)           delivery to
the Company of a duly executed copy of the Notice of Exercise attached as Exhibit A;

 

(B)           surrender of
this Warrant to the Secretary of the Company at its principal offices or at such other office or agency as the Company may specify
in writing to the Holder; and

 

(C)           payment of the
then-applicable Exercise Price per share multiplied by the number of Warrant Shares being purchased upon exercise of the Warrant
(such amount, the “Aggregate Exercise Price”) made in the form of cash, or by certified check, bank draft or
money order payable in lawful money of the United States of America or in the form of a Cashless Exercise to the extent permitted
in Section 1(b)(ii) below.

 

(ii)           In addition to
the provisions of Section 1(b)(i) above, if any time commencing 300 days after the Effective Date a registration statement covering
the resale of the Warrant Shares by the Holder is not effective with the Securities and Exchange Commission (the “SEC”),
the Holder may, in its sole discretion, exercise all or any part of the Warrant in a “cashless” or “net-issue”
exercise (a “Cashless Exercise”) by delivering to the Company (1) the Notice of Exercise and (2) the original
Warrant, pursuant to which the Holder shall surrender the right to receive upon exercise of this Warrant, a number of Warrant Shares
having a value (as determined below) equal to the Aggregate Exercise Price, in which case, the number of Warrant Shares to be issued
to the Holder upon such exercise shall be calculated using the following formula:

 

    	21

    	 

    

 

	 	X      =      Y * (A - B)	 
	 	A	 

 

	with:	X = 	the number of Warrant Shares to be issued to the Holder
	 	 	 
	 	Y =	the number of Warrant Shares with respect to which the Warrant is being exercised
	 	 	 
	 	A =	the fair value per share of Common Stock on the date of exercise of this Warrant
	 	 	 
	 	B =	the then-current Exercise Price of the Warrant

 

Solely for the purposes
of this paragraph, “fair value” per share of Common Stock shall mean the average Closing Price (as defined below)
per share of Common Stock for the twenty (20) trading days immediately preceding the date on which the Notice of Exercise is deemed
to have been sent to the Company. “Closing Price” means, for any date, the price determined by the first of
the following clauses that applies:  (a) if the Common Stock is then listed or quoted on the New York Stock Exchange,
the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market or any other national securities
exchange, the closing price per share of the Common Stock for such date (or the nearest preceding date) on the primary eligible
market or exchange on which the Common Stock is then listed or quoted; (b) if prices for the Common Stock are then quoted on the
OTC Bulletin Board or any tier of the OTC Markets, the closing bid price per share of the Common Stock for such date (or the nearest
preceding date) so quoted; or (c) if prices for the Common Stock are then reported in the “Pink Sheets” published by
the National Quotation Bureau Incorporated (or a similar organization or agency succeeding to its functions of reporting prices),
the most recent closing bid price per share of the Common Stock so reported. If the Common Stock is not publicly traded as set
forth above, the “fair value” per share of Common Stock shall be reasonably and in good faith determined by the Board
of Directors of the Company as of the date which the Notice of Exercise is deemed to have been sent to the Company.

 

Notwithstanding the
foregoing, provided that a registration statement covering the resale of the Warrant Shares by the Holder has (x) been declared
effective by the SEC and (y) remained effective for a period of one year, any Cashless Exercise right hereunder shall thereupon
terminate.

 

For purposes of Rule
144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless
exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for such shares shall be deemed
to have commenced, on the date this Warrant was originally issued.

 

    	22

    	 

    

 

(iii)           Upon the exercise
of this Warrant in compliance with the provisions of this Section 1(b), and except as limited pursuant to the last paragraph of
Section 1(b)(ii), the Company shall promptly issue and cause to be delivered to the Holder a certificate for the Warrant Shares
purchased by the Holder. Each exercise of this Warrant shall be effective immediately prior to the close of business on the date
(the “Date of Exercise”) that the conditions set forth in Section 1(b) have been satisfied, as the case may
be. On the first Business Day following the date on which the Company has received each of the Notice of Exercise and the Aggregate
Exercise Price (or notice of a Cashless Exercise in accordance with Section 1(b)(ii)) (the “Exercise Delivery Documents”),
the Company shall transmit an acknowledgment of receipt of the Exercise Delivery Documents to the Company’s transfer agent
(the “Transfer Agent”). On or before the third Business Day following the date on which the Company has received
all of the Exercise Delivery Documents (the “Share Delivery Date”), the Company shall (X) provided that the
Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program,
upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled pursuant
to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal Agent Commission
system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and dispatch
by overnight courier to the address as specified in the Notice of Exercise, a certificate, registered in the Company’s share
register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant
to such exercise. Upon delivery of the Exercise Delivery Documents, the Holder shall be deemed for all corporate purposes to have
become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date
of delivery of the certificates evidencing such Warrant Shares.

 

(iv)           If the Company
shall fail for any reason or for no reason to issue to the Holder, within three (3) Business Days of receipt of the Exercise Delivery
Documents, a certificate for the number of shares of Common Stock to which the Holder is entitled and register such shares of Common
Stock on the Company’s share register or to credit the Holder’s balance account with DTC for such number of shares
of Common Stock to which the Holder is entitled upon the Holder’s exercise of this Warrant, and if on or after such Business
Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale
by the Holder of shares of Common Stock issuable upon such exercise that the Holder anticipated receiving from the Company (a “Buy-In”),
then the Company shall, (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price
(including brokerage commissions, if any) for the shares of Common Stock so purchased (the “Buy-In Amount”)
plus the amount paid by the Holder to the Company as the exercise price for the Warrant Shares exceeds (y) the amount obtained
by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise
at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option
of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was
not honored or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied
with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase
price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock, and paid the Company $5,000
as the exercise price, the Holder’s cash outlay would be a total of $16,000; and if the aggregate sales price of the shares
giving rise to such Buy-In obligation was $10,000, under clause (A) of the immediately preceding sentence the Company shall be
required to pay the Holder $6,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder
in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s
right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares
of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

    	23

    	 

    

 

(c)           Partial Exercise.
This Warrant shall be exercisable, either in its entirety or, from time to time, for part only of the number of Warrant Shares
referenced by this Warrant. If this Warrant is submitted in connection with any exercise pursuant to Section 1 and the number of
Warrant Shares represented by this Warrant submitted for exercise is greater than the actual number of Warrant Shares being acquired
upon such an exercise, then the Company shall as soon as practicable and in no event later than five (5) Business Days after
any exercise and at its own expense, issue a new Warrant of like tenor representing the right to purchase the number of Warrant
Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which
this Warrant is exercised.

 

(d)           Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance
with Section 16.

 

		2.	ISSUANCE OF WARRANT SHARES

 

(a)           The Company
covenants that all Warrant Shares will, upon issuance in accordance with the terms of this Warrant, be (i) duly authorized, fully
paid and non-assessable, and (ii) free from all liens, charges and security interests, with the exception of claims arising through
the acts or omissions of any Holder and except as arising from applicable Federal and state securities laws.

 

(b)           The Company
shall register this Warrant upon records to be maintained by the Company for that purpose in the name of the record holder of such
Warrant from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner thereof for
the purpose of any exercise thereof, any distribution to the Holder thereof and for all other purposes.

 

(c)           The Company
will not, by amendment of its certificate of incorporation, by-laws or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying
out of all the provisions of this Warrant and in the taking of all action necessary or appropriate in order to protect the rights
of the Holder to exercise this Warrant, or against impairment of such rights.

 

    	24

    	 

    

 

		3.	ADJUSTMENTS OF EXERCISE PRICE, NUMBER AND TYPE OF WARRANT SHARES

 

(a)           The Exercise
Price and the number of shares purchasable upon the exercise of this Warrant shall be subject to adjustment from time to time upon
the occurrence of certain events described in this Section 3; provided, that notwithstanding the provisions of this Section
3, the Company shall not be required to make any adjustment if and to the extent that such adjustment would require the Company
to issue a number of shares of Common Stock in excess of its authorized but unissued shares of Common Stock, less all amounts of
Common Stock that have been reserved for issue upon the conversion of all outstanding securities convertible into shares of Common
Stock and the exercise of all outstanding options, warrants and other rights exercisable for shares of Common Stock. If the Company
does not have the requisite number of authorized but unissued shares of Common Stock to make any adjustment, the Company shall
use its commercially best efforts to obtain the necessary stockholder consent to increase the authorized number of shares of Common
Stock to make such an adjustment pursuant to this Section 3.

 

(i)           Subdivision
or Combination of Stock. In case the Company shall at any time subdivide (whether by way of stock dividend, stock split or
otherwise) its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior
to such subdivision shall be proportionately reduced and the number of Warrant Shares shall be proportionately increased, and conversely,
in case the outstanding shares of Common Stock of the Company shall be combined (whether by way of stock combination, reverse stock
split or otherwise) into a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall be
proportionately increased and the number of Warrant Shares shall be proportionately decreased. The Exercise Price and the Warrant
Shares, as so adjusted, shall be readjusted in the same manner upon the happening of any successive event or events described in
this Section 3(a)(i).

 

(ii)           Dividends
in Stock, Property, Reclassification. If at any time, or from time to time, all of the holders of Common Stock (or any shares
of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received or become entitled to
receive, without payment therefore:

 

(A)           any shares of
stock or other securities that are at any time directly or indirectly convertible into or exchangeable for Common Stock, or any
rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other distribution,
or

 

(B)           additional stock
or other securities or property (including cash) by way of spin-off, split-up, reclassification, combination of shares or similar
corporate rearrangement (other than shares of Common Stock issued as a stock split or adjustments in respect of which shall be
covered by the terms of Section 3(a)(i) above),

 

    	25

    	 

    

 

then and in each such case, the Exercise
Price and the number of Warrant Shares to be obtained upon exercise of this Warrant shall be adjusted proportionately, and the
Holder hereof shall, upon the exercise of this Warrant, be entitled to receive, in addition to the number of shares of Common Stock
receivable thereupon, and without payment of any additional consideration therefor, the amount of stock and other securities and
property (including cash in the cases referred to above) that such Holder would hold on the date of such exercise had such Holder
been the holder of record of such Common Stock as of the date on which holders of Common Stock received or became entitled to receive
such shares or all other additional stock and other securities and property. The Exercise Price and the Warrant Shares, as so adjusted,
shall be readjusted in the same manner upon the happening of any successive event or events described in this Section 3(a)(ii).

 

(iii)           Reorganization,
Reclassification, Consolidation, Merger or Sale. If any recapitalization, reclassification or reorganization of the capital
stock of the Company, or any consolidation or merger of the Company with another corporation, or the sale of all or substantially
all of its assets or other transaction shall be effected in such a way that holders of Common Stock shall be entitled to receive
stock, securities, or other assets or property (an “Organic Change”), then, as a condition of such Organic Change,
lawful and adequate provisions shall be made by the Company whereby the Holder hereof shall thereafter have the right to purchase
and receive (in lieu of the shares of the Common Stock of the Company immediately theretofore purchasable and receivable upon the
exercise of the rights represented by this Warrant) such shares of stock, securities or other assets or property as may be issued
or payable with respect to or in exchange for a number of outstanding shares of such Common Stock equal to the number of shares
of such stock immediately theretofore purchasable and receivable assuming the full exercise of the rights represented by this Warrant.
In the event of any Organic Change, appropriate provision shall be made by the Company with respect to the rights and interests
of the Holder of this Warrant to the end that the provisions hereof (including, without limitation, provisions for adjustments
of the Exercise Price and of the number of shares purchasable and receivable upon the exercise of this Warrant and registration
rights) shall thereafter be applicable, in relation to any shares of stock, securities or assets thereafter deliverable upon the
exercise hereof. The Company will not affect any such consolidation, merger or sale unless, prior to the consummation thereof,
the successor corporation (if other than the Company) resulting from such consolidation or merger or the corporation purchasing
such assets shall assume by written instrument reasonably satisfactory in form and substance to the Holder executed and mailed
or delivered to the registered Holder hereof at the last address of such Holder appearing on the books of the Company, the obligation
to deliver to such Holder such shares of stock, securities or assets as, in accordance with the foregoing provisions, such Holder
may be entitled to purchase. If there is an Organic Change, then the Company shall cause to be mailed to the Holder at its last
address as it shall appear on the books and records of the Company, at least 10 calendar days before the effective date of the
Organic Change, a notice stating the date on which such Organic Change is expected to become effective or close, and the date as
of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares for securities, cash,
or other property delivered upon such Organic Change; provided, that the failure to mail such notice or any defect therein or in
the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. The Holder is
entitled to exercise this Warrant during the 10-day period commencing on the date of such notice to the effective date of the event
triggering such notice. In any event, the successor corporation (if other than the Company) resulting from such consolidation or
merger or the corporation purchasing such assets shall be deemed to assume such obligation to deliver to such Holder such shares
of stock, securities or assets even in the absence of a written instrument assuming such obligation to the extent such assumption
occurs by operation of law. 

 

    	26

    	 

    

 

(b)           Certificate
as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to this Section 3, the Company at its expense
shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each Holder of this Warrant
a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment
is based. The Company shall promptly furnish or cause to be furnished to such Holder a like certificate setting forth: (i) such
adjustments and readjustments; and (ii) the number of shares and the amount, if any, of other property which at the time would
be received upon the exercise of the Warrant.

 

(c)           Certain Events.
If any event occurs as to which the other provisions of this Section 3 are not strictly applicable but the lack of any adjustment
would not fairly protect the purchase rights of the Holder under this Warrant in accordance with the basic intent and principles
of such provisions, or if strictly applicable would not fairly protect the purchase rights of the Holder under this Warrant in
accordance with the basic intent and principles of such provisions, then the Company's Board of Directors will, in good faith,
make an appropriate adjustment to protect the rights of the Holder; provided, that no such adjustment pursuant to this Section
3(c) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section
3.

 

4.           REDEMPTION OF WARRANTS

 

(a)           General.
Prior to the Expiration Date, the Company shall have the option, subject to the conditions set forth herein, to redeem all of the
Warrants then outstanding upon not less than thirty (30) days nor more than sixty (60) days prior written notice to the Warrant
Holders at any time provided that, at the time of delivery of such notice (i) there is an effective registration statement
covering the resale of the Warrant Shares, and (ii) the closing bid price of the Company’s Common
Stock for each of the twenty (20) consecutive Trading Days prior to the date of the notice of redemption is at least $5.00, as
proportionately adjusted to reflect any stock splits, stock dividends, combination of shares or like events. Notwithstanding the
foregoing, the Company shall not be entitled to redeem the Warrants pursuant to this Section 4 unless the Company also redeems
all other warrants then outstanding for which it has rights of redemption.

 

(b)           Notice.
Notice of redemption will be effective upon mailing in accordance with this Section and such date may be referred to below as the
“Notice Date.” Notice of redemption shall be mailed by first class mail, postage prepaid, by the Company not
less than 30 days prior to the date fixed for redemption to the Holders of the Warrants to be redeemed at their last addresses
as they shall appear on the registration books. Any notice mailed in the manner herein provided shall be conclusively presumed
to have been duly given whether or not the Holder received such notice.

 

    	27

    	 

    

 

(c)           Redemption
Date and Redemption Price. The notice of redemption shall state the date set for redemption, which date shall be not less than
thirty (30) days, or more than sixty (60) days, from the Notice Date (the “Redemption Date”). The Company shall
not mail the notice of redemption unless all funds necessary to pay for redemption of the Warrants to be redeemed shall have first
been set aside by the Company for the benefit of the Warrant Holders so as to be and continue to be available therefor. The redemption
price to be paid to the Warrant Holders will be $0.0001 for each share of Common Stock of the Company to which the Warrant Holder
would then be entitled upon exercise of the Warrant being redeemed, as adjusted from time to time as provided herein (the “Redemption
Price”).

 

(d)           Exercise.
Following the Notice Date, the Warrant Holders may exercise their Warrants in accordance with Section 1 of this Warrant between
the Notice Date and 5:00 p.m. Eastern Time on the Redemption Date and such exercise shall be timely if the form of election to
purchase duly executed and the Warrant Exercise Price for the shares of Common Stock to be purchased are actually received by the
Company at its principal offices prior to 5:00 p.m. Eastern Time on the Redemption Date.

 

(e)           Mailing.
If any Warrant Holder does not wish to exercise any Warrant being redeemed, he should mail such Warrant to the Company at its principal
offices after receiving the notice of redemption. On and after 5:00 p.m. Eastern Time on the Redemption Date, notwithstanding that
any Warrant subject to redemption shall not have been surrendered for redemption, the obligation evidenced by all Warrants not
surrendered for redemption or effectively exercised shall be deemed no longer outstanding, and all rights with respect thereto
shall forthwith cease and terminate, except only the right of the holder of each Warrant subject to redemption to receive the Redemption
Price for each share of Common Stock to which he would be entitled if he exercised the Warrant upon receiving notice of redemption
of the Warrant subject to redemption held by him.

 

		5.	TRANSFERS AND EXCHANGES OF WARRANT AND WARRANT SHARES

 

(a)           Registration
of Transfers and Exchanges. Subject to Section 5(c), upon the Holder’s surrender of this Warrant, with a duly executed
copy of the Form of Assignment attached as Exhibit B, to the Secretary of the Company at its principal offices or at such
other office or agency as the Company may specify in writing to the Holder, the Company shall register the transfer of all or any
portion of this Warrant. Upon such registration of transfer, the Company shall issue a new Warrant, in substantially the form of
this Warrant, evidencing the acquisition rights transferred to the transferee and a new Warrant, in similar form, evidencing the
remaining acquisition rights not transferred, to the Holder requesting the transfer.

 

(b)           Warrant Exchangeable
for Different Denominations. The Holder may exchange this Warrant for a new Warrant or Warrants, in substantially the form
of this Warrant, evidencing in the aggregate the right to purchase the number of Warrant Shares which may then be purchased hereunder,
each of such new Warrants to be dated the date of such exchange and to represent the right to purchase such number of Warrant Shares
as shall be designated by the Holder. The Holder shall surrender this Warrant with duly executed instructions regarding such re-certification
of this Warrant to the Secretary of the Company at its principal offices or at such other office or agency as the Company may specify
in writing to the Holder.

 

    	28

    	 

    

 

(c)           Restrictions
on Transfers. This Warrant may not be transferred at any time without (i) registration under the Securities Act or (ii) an
exemption from such registration and a written opinion of legal counsel addressed to the Company that the proposed transfer of
the Warrant may be effected without registration under the Securities Act, which opinion will be in form and from counsel reasonably
satisfactory to the Company.

 

(d)           Permitted
Transfers and Assignments. Notwithstanding any provision to the contrary in this Section 5, the Holder may transfer, with or
without consideration, this Warrant or any of the Warrant Shares (or a portion thereof) to the Holder’s Affiliates (as such
term is defined under Rule 144 of the Securities Act) without obtaining the opinion from counsel that may be required by Section
5(c)(ii), provided, that the Holder delivers to the Company and its counsel certification, documentation, and other assurances
reasonably required by the Company’s counsel to enable the Company’s counsel to render an opinion to the Company’s
Transfer Agent that such transfer does not violate applicable securities laws.

 

		6.	MUTILATED OR MISSING WARRANT CERTIFICATE

 

If this Warrant is
mutilated, lost, stolen or destroyed, upon request by the Holder, the Company will, at its expense, issue, in exchange for and
upon cancellation of the mutilated Warrant, or in substitution for the lost, stolen or destroyed Warrant, a new Warrant, in substantially
the form of this Warrant, representing the right to acquire the equivalent number of Warrant Shares; provided, that, as
a prerequisite to the issuance of a substitute Warrant, the Company may require satisfactory evidence of loss, theft or destruction
as well as an indemnity from the Holder of a lost, stolen or destroyed Warrant.

 

		7.	PAYMENT OF TAXES

 

The Company will pay
all transfer and stock issuance taxes attributable to the preparation, issuance and delivery of this Warrant and the Warrant Shares
(and replacement Warrants) including, without limitation, all documentary and stamp taxes; provided, however, that
the Company shall not be required to pay any tax in respect of the transfer of this Warrant, or the issuance or delivery of certificates
for Warrant Shares or other securities in respect of the Warrant Shares to any person or entity other than to the Holder.

 

8.           FRACTIONAL WARRANT SHARES

 

No fractional Warrant
Shares shall be issued upon exercise of this Warrant. The Company, in lieu of issuing any fractional Warrant Share, shall round
up the number of Warrant Shares issuable to nearest whole share.

 

		9.	NO STOCK RIGHTS AND LEGEND

 

No holder of this Warrant,
as such, shall be entitled to vote or be deemed the holder of any other securities of the Company that may at any time be issuable
on the exercise hereof, nor shall anything contained herein be construed to confer upon the holder of this Warrant, as such, the
rights of a stockholder of the Company or the right to vote for the election of directors or upon any matter submitted to stockholders
at any meeting thereof, or give or withhold consent to any corporate action or to receive notice of meetings or other actions affecting
stockholders (except as provided herein), or to receive dividends or subscription rights or otherwise (except as provide herein).

 

    	29

    	 

    

 

Each certificate for
Warrant Shares initially issued upon the exercise of this Warrant, and each certificate for Warrant Shares issued to any subsequent
transferee of any such certificate, shall be stamped or otherwise imprinted with a legend in substantially the following form:

 

“THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES
LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES,
WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED
OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES
LAWS.”

 

		10.	INTENTIONALLY DELETED

 

		11.	NOTICES

 

All
notices, consents, waivers, and other communications under this Warrant must be in writing and will be deemed given to a party
when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier service (costs prepaid); (b)
sent by facsimile or e-mail with confirmation of transmission by the transmitting equipment; (c) received or rejected by the addressee,
if sent by certified mail, return receipt requested, if to the registered Holder hereof; or (d) seven days after the placement
of the notice into the mails (first class postage prepaid), to the Holder at the address, facsimile number, or e-mail address furnished
by the registered Holder to the Company in accordance with the Subscription Agreement by and between the Company and the Holder,
or if to the Company, to it at 600 W. Germantown Pike, Suite 400, Plymouth Meeting, PA 19462, Attention:
Stephen P. Harrington, President (or to such other address, facsimile number, or e-mail address as the Holder or the Company as
a party may designate by notice the other party).

 

		12.	SEVERABILITY

 

If a court of competent
jurisdiction holds any provision of this Warrant invalid or unenforceable, the other provisions of this Warrant will remain in
full force and effect. Any provision of this Warrant held invalid or unenforceable only in part or degree will remain in full force
and effect to the extent not held invalid or unenforceable.

 

    	30

    	 

    

 

		13.	BINDING EFFECT

 

This Warrant shall
be binding upon and inure to the sole and exclusive benefit of the Company, its successors and assigns, the registered Holder or
Holders from time to time of this Warrant and the Warrant Shares.

 

		14.	SURVIVAL OF RIGHTS AND DUTIES

 

This Warrant shall
terminate and be of no further force and effect on the earlier of 5:00 P.M., Eastern Time, on the Expiration Date or the date on
which this Warrant has been exercised in full.

 

		15.	GOVERNING LAW

 

This Warrant will be
governed by and construed under the laws of the State of New York without regard to conflicts of laws principles that would require
the application of any other law.

 

		16.	DISPUTE RESOLUTION

 

In the case of a dispute
as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall submit the
disputed determinations or arithmetic calculations via facsimile within two Business Days of receipt of the Notice of Exercise
giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable to agree upon such determination
or calculation of the Exercise Price or the Warrant Shares within three Business Days of such disputed determination or arithmetic
calculation being submitted to the Holder, then the Company shall, within two Business Days, submit via facsimile (a) the disputed
determination of the Exercise Price to an independent, reputable investment bank selected by the Company and approved by the Holder
or (b) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent, outside accountant. The Company
shall cause at its expense the investment bank or the accountant, as the case may be, to perform the determinations or calculations
and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives the disputed
determinations or calculations. Such investment bank’s or accountant’s determination or calculation, as the case may
be, shall be binding upon all parties absent demonstrable error.

 

		17.	NOTICES OF RECORD DATE

 

Upon (a) any establishment
by the Company of a record date of the holders of any class of securities for the purpose of determining the holders thereof who
are entitled to receive any dividend or other distribution, or right or option to acquire securities of the Company, or any other
right, or (b) any capital reorganization, reclassification, recapitalization, merger or consolidation of the Company with or into
any other corporation, any transfer of all or substantially all the assets of the Company, or any voluntary or involuntary dissolution,
liquidation or winding up of the Company, or the sale, in a single transaction, of a majority of the Company’s voting stock
(whether newly issued, or from treasury, or previously issued and then outstanding, or any combination thereof), the Company shall
mail to the Holder at least ten (10) Business Days, or such longer period as may be required by law, prior to the record date specified
therein, a notice specifying (i) the date established as the record date for the purpose of such dividend, distribution, option
or right and a description of such dividend, option or right, (ii) the date on which any such reorganization, reclassification,
transfer, consolidation, merger, dissolution, liquidation or winding up, or sale is expected to become effective and (iii) the
date, if any, fixed as to when the holders of record of Common Stock shall be entitled to exchange their shares of Common Stock
for securities or other property deliverable upon such reorganization, reclassification, transfer, consolation, merger, dissolution,
liquidation or winding up.

 

    	31

    	 

    

 

		18.	RESERVATION OF SHARES

 

The Company shall reserve
and keep available out of its authorized but unissued shares of Common Stock for issuance upon the exercise of this Warrant, free
from pre-emptive rights, such number of shares of Common Stock for which this Warrant shall from time to time be exercisable. The
Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein
without violation of any applicable law or regulation. Without limiting the generality of the foregoing, the Company covenants
that it will use commercially reasonable efforts to take all such action as may be necessary or appropriate in order that the Company
may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents, including but not limited to consents from the Company’s
stockholders or Board of Directors or any public regulatory body, as may be necessary to enable the Company to perform its obligations
under this Warrant.

 

		19.	NO THIRD PARTY RIGHTS

 

This Warrant is not
intended, and will not be construed, to create any rights in any parties other than the Company and the Holder, and no person or
entity may assert any rights as third-party beneficiary hereunder.

 

[SIGNATURE PAGE FOLLOWS]

 

    	32

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be duly executed as of the date first set forth above.

 

	 	MATINAS BIOPHARMA HOLDINGS, INC.
	 	 
	 	By:	 
	 	 	Name: Stephen P. Harrington
	 	 	Title: President

 

    	33

    	 

    

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

(To be executed by the Holder of Warrant
if such Holder desires to exercise Warrant)

 

To Matinas
BioPharma Holdings,Inc.:

 

The
undersigned hereby irrevocably elects to exercise this Warrant and to purchase thereunder, ___________________ full shares of Matinas
BioPharma Holdings,Inc. common stock issuable upon exercise of the Warrant and delivery of:

 

(1)           $_________ (in
cash as provided for in the foregoing Warrant) and any applicable taxes payable by the undersigned pursuant to such Warrant; and

 

(2)           __________ shares
of Common Stock (pursuant to a Cashless Exercise in accordance with Section 1(b)(ii) of the Warrant) (check here if the undersigned
desires to deliver an unspecified number of shares equal the number sufficient to effect a Cashless Exercise [___]).

 

The undersigned
requests that certificates for such shares be issued in the name of:

 

_________________________________________

(Please print name, address and social security
or federal employer

identification number (if applicable))

 

_________________________________________

 

_________________________________________

 

If the shares issuable
upon this exercise of the Warrant are not all of the Warrant Shares which the Holder is entitled to acquire upon the exercise of
the Warrant, the undersigned requests that a new Warrant evidencing the rights not so exercised be issued in the name of and delivered
to:

 

_________________________________________

(Please print name, address and social security
or federal employer

identification number (if applicable))

 

_________________________________________

 

_________________________________________

 

	 	Name of Holder (print):	 

	 	(Signature):	 

	 	(By:)	 
	 	(Title:)	 
	 	Dated:	 

 

    	34

    	 

    

 

EXHIBIT B

 

FORM OF ASSIGNMENT

 

FOR VALUE RECEIVED,
___________________________________ hereby sells, assigns and transfers to each assignee set forth below all of the rights of the
undersigned under the Warrant (as defined in and evidenced by the attached Warrant) to acquire the number of Warrant Shares set
opposite the name of such assignee below and in and to the foregoing Warrant with respect to said acquisition rights and the shares
issuable upon exercise of the Warrant:

 

	Name of Assignee	 	Address	 	Number of Shares
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

If the total of the
Warrant Shares are not all of the Warrant Shares evidenced by the foregoing Warrant, the undersigned requests that a new Warrant
evidencing the right to acquire the Warrant Shares not so assigned be issued in the name of and delivered to the undersigned.

 

	 	Name of Holder (print):	 

	 	(Signature):	 

	 	(By:)	 
	 	(Title:)	 
	 	Dated:MATINAS
BIOPHARMA HOLDINGS, INC.

 

_____________________________________________

 

Securities Purchase Agreement

 

_____________________________________________________

 

Units consisting of Common Stock

and

Warrants

 

____________________________________________________

 

June 10, 2013

 

CONFIDENTIAL

 

    	 

    	 

    

 

NOTICE TO
OFFEREES

 

THE SECURITIES OFFERED HEREBY HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR QUALIFIED UNDER THE APPLICABLE SECURITIES LAWS OF
ANY STATE OR OTHER JURISDICTION. THIS SECURITIES PURCHASE AGREEMENT AND THE OTHER OFFERING DOCUMENTS DO NOT CONSTITUTE AN OFFER
TO SELL OR SOLICITATION OF AN OFFER TO BUY THE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.

 

THE SECURITIES ARE BEING SOLD FOR INVESTMENT
PURPOSES ONLY, WITHOUT A VIEW TO RESALE OR DISTRIBUTION THEREOF, AND MAY NOT BE TRANSFERRED, RESOLD OR OFFERED FOR RESALE IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND EFFECTIVE REGISTRATION OR QUALIFICATION UNDER THE APPLICABLE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, OR THE AVAILABILITY OF AN EXEMPTION THEREFROM. 

 

AN INVESTMENT MADE IN THE SECURITIES
OFFERED HEREBY IS SPECULATIVE AND SUITABLE ONLY FOR PERSONS WHO HAVE SUBSTANTIAL FINANCIAL RESOURCES, WHO HAVE NO NEED FOR LIQUIDITY
IN THIS INVESTMENT AND WHO UNDERSTAND OR HAVE BEEN ADVISED WITH RESPECT TO THE TAX CONSEQUENCES OF, AND RISK FACTORS ASSOCIATED
WITH, THIS INVESTMENT AND WHO ARE ABLE TO BEAR THE SUBSTANTIAL ECONOMIC RISK OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

NEITHER THE SECURITIES AND EXCHANGE COMMISSION
NOR THE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY OF ANY STATE OR OTHER JURISDICTION HAS APPROVED OR DISAPPROVED OF THESE
SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS SECURITIES PURCHASE AGREEMENT OR ANY OF THE OTHER OFFERING DOCUMENTS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

 

THIS SECURITIES PURCHASE AGREEMENT DOES
NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY STATE OR OTHER JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS NOT AUTHORIZED.

 

CONFIDENTIAL
INFORMATION

 

THE
offeree acknowledges and agrees that: (i) the Offering IS BEING CONDUCTED ON A CONFIDENTIAL BASIS; AND (II) IT WILL BE LEGALLY
BOUND TO RETAIN ALL INFORMATION ABOUT THE COMPANY AND THIS OFFERING ON A CONFIDENTIAL BASIS.

    	 

    	 

    

 

CONFIDENTIAL

 

SECURITIES
PURCHASE AGREEMENT

 

THIS SECURITIES PURCHASE AGREEMENT (this
“Agreement”), dated as of June 10, 2013, by and between Matinas Biopharma Holdings, Inc., a Delaware corporation (the
“Company”), and the purchaser or purchasers identified on the signature page hereof (“Purchaser”).

 

RECITALS:

 

WHEREAS, Purchaser desires to purchase and
the Company desires to sell, units comprised of shares of the Company’s common stock and warrants to acquire shares of common
stock, on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the
premises hereof and the agreements set forth herein below, the parties hereto hereby agree as follows:

 

1.           The
Offering.

 

(a)          Private
Offering. The securities offered by this Agreement are being offered in the United States in a private offering (the “Offering”)
of up to 7,500,000 shares of the Company’s common stock, $.0001 par value per share (the “Shares”), and warrants
to acquire 3,750,000 shares of the Company’s common stock (the “Warrants’). The Shares and Warrants will be sold
in units consisting of two (2) Shares and one (1) Warrant (the “Units”). Up to 3,750,000 Units will be sold in the
Offering on a “reasonable efforts” basis at a purchase price of $.10 per Unit (the “Purchase Price”) pursuant
to Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D thereunder.
The Units are being offered solely to a limited number of “accredited investors” as that term is defined in Rule 501(a)
of the Securities Act during an offering period commencing June 10, 2013, and terminating July 10, 2013, unless extended thereafter
in the sole discretion of the Company. Each Warrant is initially exercisable through June 30, 2018 into one (1) share of Common
Stock at an exercise price of $2.00 per share, subject to adjustment and redemption. The general terms of the Warrants are set
forth in the Form of Warrant, attached hereto and made a part hereof as Exhibit A. The Shares, Warrants and shares of Common
Stock issuable upon exercise of the Warrants are hereinafter referred to collectively as the “Securities.”

 

(b)          Concurrent
Offering. Concurrently, the Company is offering for sale in a private placement transaction, separate warrants to acquire 250,000
shares of the Company’s common stock at a purchase price of $.04 per warrant (the “Concurrent Offering”). Each
warrant offered in the Concurrent Offering (the “Concurrent Warrants”) is initially exercisable into one (1) share
of Common Stock at an exercise price of $2.00 per share, subject to adjustment and redemption. The terms of the Concurrent Warrants
are identical to the terms of the Form of Warrant, attached hereto and made a part hereof as Exhibit A. Participation in
this Offering does not provide any rights to participate in the Concurrent Offering.

 

    	1

    	 

    

 

(c)          The
Business of the Company; Speculative Investment Activities. The Company has only been recently formed and, to date, its activities
have been limited to organizational efforts. The Company has been formed to make investments in, or to engage in a business combination
with, one or more early-stage businesses. Towards that end, the Company has engaged in preliminary discussions regarding a business
combination with a development stage biopharmaceutical company with a focus on identifying and developing novel pharmaceutical
products, however, there can be no assurances that any such combination will occur. The business of the Company is extremely speculative
and an investment in the Securities should only be made by Purchasers who can afford a total loss of their investment and who understand
the speculative nature of this investment. Purchase of the Securities is subject to other material risk factors identified in this
Agreement.

 

(d)          Use
of Proceeds. Assuming all of the Securities in the Offering are sold, the net proceeds to the Company are estimated to be approximately
$355,000 (after deducting offering expenses and legal fees payable by the Company). The Company intends to use the net proceeds
of the Offering to make investments in, or to contribute towards, a business combination with one or more early-stage businesses,
and for general working capital purposes. There can be no assurances, however, that the net proceeds of this Offering will be sufficient
to accomplish the business purpose of the Company. No placement fees or other sales commissions will be payable in connection with
the Offering.

 

2.           Sale
and Purchase of Securities.

 

(a)          Sale
and Purchase of the Securities. Subject to the terms and conditions hereof, the Company agrees to sell, and Purchaser agrees
to purchase, the number of Units specified on the signature page of this Agreement at a purchase price of $.10 per Unit. The aggregate
Purchase Price for the number of Units subscribed for shall be as set forth on the signature page hereto and shall be payable upon
execution hereof by certified or bank check or wire transfer of immediately available funds. The Units are being sold on a reasonable
“best efforts” basis and there is no minimum sale amount of Units prior to release of funds to the Company.

 

(b)          Subscription
Procedure. In order to purchase Units, Purchaser shall deliver to the Company, (i) one completed and duly executed copy of
this Agreement; and (ii) immediately available funds in an amount equal to the Purchase Price. Execution and delivery of this Agreement
shall constitute an irrevocable subscription for that number of Units set forth on the signature page hereto. Payment for the Units
may be made either by certified or bank check made payable to the Company, or by wire transfer to the Company (with wire transfer
instructions to be provided upon request). This Agreement may be rejected by the Company, in whole or in part, in its sole discretion,
in which event the Purchase Price will be returned (by mail) to Purchaser within five (5) business days thereafter.

 

    	2

    	 

    

 

(c)          Closing.
Upon the Company’s acceptance of a Purchaser’s subscription and upon the receipt of the Purchase Price, the Company
shall conduct one or more closings at such time and in such manner as the Company shall determine in its sole discretion (the “Closing”).
There is no minimum number of Units to be sold before one or more Closings can occur. Thus, at the time a Purchaser subscribes,
it will not be assured that all of the Units will be sold in the Offering. At each Closing, the Company shall countersign this
Agreement and confirm the issuance of the Units specified on the signature page of this Agreement in book form on the transfer
books and records of the Company, against payment of the Purchase Price specified on the signature page of this Agreement by wire
transfer or certified or bank check payable to the Company. Upon the Closing, the subscription evidenced hereby, if not previously
rejected by the Company, will, in reliance upon Purchaser’s representations and warranties contained herein, be accepted,
in whole or in part, by the Company. If Purchaser’s subscription is accepted only in part, this Agreement will be marked
to indicate such fact, and the Company will return to Purchaser the portion of the funds tendered by Purchaser representing the
unaccepted portion of Purchaser’s subscription, without interest or deduction of any kind.

 

3.           Representations
and Warranties of Purchaser. Purchaser represents and warrants to the Company as follows:

 

(a)          Organization
and Qualification.

 

(i)          If
Purchaser is an entity, Purchaser is duly organized, validly existing and in good standing under the laws of its jurisdiction of
organization, with the corporate or other entity power and authority to own and operate its business as presently conducted, except
where the failure to be or have any of the foregoing would not have a material adverse effect on Purchaser, and Purchaser is duly
qualified as a foreign corporation or other entity to do business and is in good standing in each jurisdiction where the character
of its properties owned or held under lease or the nature of their activities makes such qualification necessary, except for such
failures to be so qualified or in good standing as would not have a material adverse effect on it.

 

(ii)         If
Purchaser is an entity, the address of its principal place of business is as set forth on the signature page hereto, and if Purchaser
is an individual, the address of its principal residence is as set forth on the signature page hereto.

 

(b)          Authority;
Validity and Effect of Agreement.

 

(i)          If
Purchaser is an entity, Purchaser has the requisite corporate or other entity power and authority to execute and deliver this Agreement
and perform its obligations under this Agreement. The execution and delivery of this Agreement by Purchaser, the performance by
Purchaser of its obligations hereunder and all other necessary corporate or other entity action on the part of Purchaser have been
duly authorized by its Board of Directors or similar governing body, and no other corporate or other entity proceedings on the
part of Purchaser is necessary for Purchaser to execute and deliver this Agreement and perform its obligations hereunder.

 

(ii)         This
Agreement has been duly and validly authorized, executed and delivered by Purchaser and, assuming it has been duly and validly
executed and delivered by the Company, constitutes a legal, valid and binding obligation of Purchaser, in accordance with its terms.

 

    	3

    	 

    

 

(c)          No
Conflict; Required Filings and Consents. Neither the execution and delivery of this Agreement by Purchaser nor the performance
by Purchaser of its obligations hereunder will: (i) if Purchaser is an entity, conflict with Purchaser’s Articles of Incorporation
or Bylaws, or other similar organizational documents; (ii) violate any statute, law, ordinance, rule or regulation, applicable
to Purchaser or any of the properties or assets of Purchaser; or (iii) violate, breach, be in conflict with or constitute a default
(or an event which, with notice or lapse of time or both, would constitute a default) under, or permit the termination of any provision
of, or result in the termination of, the acceleration of the maturity of, or the acceleration of the performance of any obligation
of Purchaser under, or result in the creation or imposition of any lien upon any properties, assets or business of Purchaser under,
any material contract or any order, judgment or decree to which Purchaser is a party or by which it or any of its assets or properties
is bound or encumbered except, in the case of clauses (ii) and (iii), for such violations, breaches, conflicts, defaults or other
occurrences which, individually or in the aggregate, would not have a material adverse effect on its obligation to perform its
covenants under this Agreement.

 

(d)          Accredited
Investor. Purchaser is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D under the
Securities Act. If Purchaser is an entity, Purchaser was not formed for the specific purpose of acquiring the Securities, and,
if it was, all of Purchaser’s equity owners are “accredited investors” as defined above.

 

(e)          No
Government Review. Purchaser understands that neither the United States Securities and Exchange Commission (“SEC”)
nor any securities commission or other governmental authority of any state, country or other jurisdiction has approved the issuance
of the Securities or passed upon or endorsed the merits of the Securities, or this Agreement or any of the other documents relating
to the proposed Offering (collectively, the “Offering Documents”), or confirmed the accuracy of, determined the adequacy
of, or reviewed this Agreement or the other Offering Documents.

 

(f)          Investment
Intent. The Securities are being acquired for the Purchaser’s own account for investment purposes only, not as a nominee
or agent and not with a view to the resale or distribution of any part thereof, and Purchaser has no present intention of selling,
granting any participation in or otherwise distributing the same. By executing this Agreement, Purchaser further represents that
Purchaser does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation
to such person or third person with respect to any of the Securities.

 

(g)          Restrictions
on Transfer. Purchaser understands that the Securities are “restricted securities” as such term is defined in Rule
144 under the Securities Act and have not been registered under the Securities Act or registered or qualified under any state securities
law, and may not be, directly or indirectly, sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of
without registration under the Securities Act and registration or qualification under applicable state securities laws or the availability
of an exemption therefrom. In any case where such an exemption is relied upon by Purchaser from the registration requirements of
the Securities Act and the registration or qualification requirements of such state securities laws, Purchaser shall furnish the
Company with an opinion of counsel stating that the proposed sale or other disposition of such securities may be effected without
registration under the Securities Act and will not result in any violation of any applicable state securities laws relating to
the registration or qualification of securities for sale, such counsel and opinion to be satisfactory to the Company. Purchaser
acknowledges that it is able to bear the economic risks of an investment in the Securities for an indefinite period of time, and
that its overall commitment to investments that are not readily marketable is not disproportionate to its net worth.

 

    	4

    	 

    

 

(h)          Investment
Experience. Purchaser has such knowledge, sophistication and experience in financial, tax and business matters in general,
and investments in securities in particular, that it is capable of evaluating the merits and risks of this investment in the Securities,
and Purchaser has made such investigations in connection herewith as it deemed necessary or desirable so as to make an informed
investment decision without relying upon the Company for legal or tax advice related to this investment. Purchaser hereby confirms
its understanding that the Company’s business plan is entirely speculative in its nature, as the Company will be investing
in one or more early-stage businesses, or contributing towards a business combination with one or more early-stage or start-up
businesses, and that the Purchaser will be relying entirely on management’s judgment as to the type and nature of the business
opportunity pursued, and the Purchaser will have no opportunity to review, vote upon, or perform any due diligence upon any of
such business opportunities. Purchaser further represents and warrants that it is familiar with the risks inherent in making investments
in early-stage or start-up businesses, and that the Purchaser’s investment goals and strategy include making speculative
investments in start-up ventures. In making its decision to acquire the Securities, Purchaser has not relied upon any information
other than information provided to Purchaser by the Company or its representatives and contained herein and in the other Offering
Documents.

 

(i)          Access
to Information. Purchaser acknowledges and understands that it has reviewed such information as it has deemed necessary in
order to make an informed investment decision with respect to an investment in the Securities; that it has had the opportunity
to ask representatives of the Company certain questions and request certain additional information regarding the terms and conditions
of such investment and the finances, operations, business and prospects of the Company and has had any and all such questions and
requests answered to its satisfaction; and that it understands the risks and other considerations relating to such investment.

 

(j)          Reliance
on Representations. Purchaser understands that the Securities are being offered and sold to it in reliance on specific exemptions
from the registration requirements of the federal and state securities laws and that the Company is relying in part upon the truth
and accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments and understandings
of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of such Purchaser
to acquire the Securities. Purchaser represents and warrants to the Company that any information that Purchaser has heretofore
furnished or furnishes herewith to the Company is complete and accurate, and further represents and warrants that it will notify
and supply corrective information to the Company immediately upon the occurrence of any change therein occurring prior to the Company’s
issuance of the Securities. Within five (5) days after receipt of a request from the Company, Purchaser will provide such information
and deliver such documents as may reasonably be necessary to comply with any and all laws and regulations to which the Company
is subject.

 

    	5

    	 

    

 

(k)          No
General Solicitation. Purchaser is unaware of, and in deciding to participate in the Offering is in no way relying upon, and
did not become aware of the Offering through or as a result of, any form of general solicitation or general advertising including,
without limitation, any article, notice, advertisement or other communication published in any newspaper, magazine or similar media,
or broadcast over television or radio or the internet, in connection with the Offering.

 

(l)          Placement
and Finder’s Fees. No agent, broker, investment banker, finder, financial advisor or other person acting on behalf of
Purchaser or under its authority is or will be entitled to any broker’s or finder’s fee or any other commission or
similar fee, directly or indirectly, in connection with the Offering, and no person is entitled to any fee or commission or like
payment in respect thereof based in any way on agreements, arrangements or understanding made by or on behalf of Purchaser.

 

(m)          High
Risk Investment; Material Offering Risks. While management is optimistic about the opportunities available to the Company,
an investment in the Securities involves a high degree of risk as the Company remains in the early stage of its development, having
only been recently formed, and having made no investments, to date. Accordingly, the Securities are a suitable investment only
for those investors who can afford a total loss of their investment and who recognize the material risks associated with investing
in an early-stage enterprise. Purchasing Securities in the Offering will subject the Purchaser to certain material risks, including,
but not limited to, each of the following: (i) the Company will, for the foreseeable future, be totally reliant on the efforts
of Stephen Harrington, its sole officer and director; (ii) while the Company has engaged in preliminary discussions regarding a
business combination with a development stage biopharmaceutical company with a focus on identifying and developing novel pharmaceutical
products, there can be no assurances that any such combination will occur; (iii) there can be no assurances that the proceeds of
this Offering will be sufficient to assure the Company accomplishes its business purpose; (iv) Purchasers will be making their
investment on a “blind” basis with no input on or ability to evaluate any potential investments of the Company, as
management will have virtually unrestricted discretion as to the investments made by the Company; (v) the Company may consummate
a business combination with a company in any industry management selects and is not limited to any particular industry or type
of business; (vi) in connection with a business combination, the Company will likely issue a substantial amount of securities;
thus, substantially diluting the percentage interests of the Purchasers of the Securities and leaving them with a small percentage
of the total outstanding securities of the combined enterprise; (vii) the Company may participate in a business combination with
a company that is affiliated with management or certain of the shareholders of the Company, or with whom certain shareholders have
or will have a business or equity interest; thus, presenting risks of conflicts of interest that the Purchasers will have no input
in evaluating; (viii) the Purchaser understands that there is no guarantee of any financial return on this investment and that
this investment is not liquid; (ix) the Offering is being undertaken on a “best efforts, no minimum” basis; accordingly,
investors will not know at the time of investment whether the Offering will be successful or the percentage of the Company owned
by them; (x) the Company is a start-up enterprise with minimal assets and no current earnings; (xi) the Company has offered to
register the Shares issuable upon exercise of the warrants, however, any such registration rights are limited as they only apply
to the extent of registration rights granted to private placement investors in the future, and may be subordinated to the rights
of such private placement investors; and (xii) the offering price of the Securities offered hereby has been determined solely by
the Company and does not necessarily bear any relationship to the value of the Company’s assets, current or potential earnings
of the Company, or any other recognized criteria used for measuring value, and therefore, there can be no assurance that the offering
price of the Securities is representative of the actual value of the Securities.

 

    	6

    	 

    

 

(n)          Legends.
The certificates and agreements evidencing the Securities shall have endorsed thereon the following legend (and appropriate notations
thereof will be made in the Company’s stock transfer books), and stop transfer instructions reflecting these restrictions
on transfer will be placed with the transfer agent of the Securities:

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES
MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT AND REGISTRATION
OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN AVAILABLE EXEMPTION THEREFROM. NO TRANSFER OF THE SECURITIES
REPRESENTED HEREBY MAY BE MADE IN THE ABSENCE OF SUCH REGISTRATION OR QUALIFICATION UNLESS THERE SHALL HAVE BEEN DELIVERED TO THE
ISSUER A WRITTEN OPINION OF UNITED STATES COUNSEL OF RECOGNIZED STANDING, IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER, TO
THE EFFECT THAT SUCH TRANSFER MAY BE MADE WITHOUT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND REGISTRATION OR
QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.

 

(o)          Involvement
in Certain Legal Proceedings. Annex I to the Signature Page hereof contains a true and correct questionnaire covering Purchaser’s
prior and pending involvement in certain legal proceedings.

 

4.           Representations
and Warranties of the Company. The Company represents and warrants to Purchaser as follows:

 

    	7

    	 

    

 

(a)          Organization
and Qualification. The Company is duly organized, validly existing and in good standing under the laws of its jurisdiction
of organization, with the corporate power and authority to own and operate its business as presently conducted, except where the
failure to be or have any of the foregoing would not have a material adverse effect on the Company. The Company is duly qualified
as a foreign corporation or other entity to do business and is in good standing in each jurisdiction where the character of its
properties owned or held under lease or the nature of their activities makes such qualification necessary, except for such failures
to be so qualified or in good standing as would not have a material adverse effect on the Company.

 

(b)          Authority;
Validity and Effect of Agreement.

 

(i)          The
Company has the requisite corporate power and authority to execute and deliver this Agreement, perform its obligations under this
Agreement, and conduct the Offering. The execution and delivery of this Agreement by the Company, the performance by the Company
of its obligations hereunder, the Offering and all other necessary corporate action on the part of the Company have been duly authorized
by its Board of Directors, and no other corporate proceedings on the part of the Company is necessary to authorize this Agreement
or the Offering. This Agreement has been duly and validly executed and delivered by the Company and, assuming that it has been
duly authorized, executed and delivered by Purchaser, constitutes a legal, valid and binding obligation of the Company, in accordance
with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar
laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding
in equity or at law) and an implied covenant of good faith and fair dealing.

 

(ii)         The
Shares have been duly authorized and, when issued and paid for in accordance with this Agreement, will be validly issued, fully
paid and non-assessable shares of Common Stock with no personal liability resulting solely from the ownership of such shares and
will be free and clear of all liens, charges, restrictions, claims and encumbrances imposed by or through the Company. The shares
of Common Stock issuable upon exercise of the Warrants when issued and paid for in accordance with the Warrants, will be duly authorized,
validly issued, fully paid and non-assessable shares of Common Stock with no personal liability resulting solely from the ownership
of such shares and will be free and clear of all liens, charges, restrictions, claims and in encumbrances imposed by or through
the Company.

 

(c)          No
Conflict. Neither the execution and delivery of this Agreement by the Company nor the performance by the Company of its obligations
hereunder will: (i) conflict with the Company’s Articles of Incorporation or Bylaws; (ii) violate any statute, law, ordinance,
rule or regulation, applicable to the Company or any of the properties or assets of the Company; or (iii) violate, breach, be in
conflict with or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under,
or permit the termination of any provision of, or result in the termination of, the acceleration of the maturity of, or the acceleration
of the performance of any obligation of the Company, or result in the creation or imposition of any lien upon any properties, assets
or business of the Company under, any material contract or any order, judgment or decree to which the Company is a party or by
which it or any of its assets or properties is bound or encumbered except, in the case of clauses (ii) and (iii), for such violations,
breaches, conflicts, defaults or other occurrences which, individually or in the aggregate, would not have a material adverse effect
on its obligation to perform its covenants under this Agreement;

 

    	8

    	 

    

 

(d)          Capitalization.
The Company is currently authorized to issue 150 million shares of Common Stock, $0.0001 par value per share and 10 million shares
of “blank check” Preferred Stock, $0.0001 par value per share. To date, the Company has issued 100 shares of its Common
Stock to its founder. No securities of the Company are entitled to preemptive or similar rights, and no entity or person has any
right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated
by this Agreement unless any such rights have been waived. The issue and sale of the Securities will not, immediately or with the
passage of time, obligate the Company to issue shares of Common Stock or other securities to any entity or person and will not
result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under such securities.

 

(e)          Consents;
Required Filings. The Company is not required to obtain any consent, waiver, authorization, approval or order of, give any
notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or
other person or entity in connection with the execution, delivery and performance by the Company of this Agreement or the issuance,
sale or delivery of the Securities other than (i) any filings required by state securities laws, if any, and (ii) the filing of
a Notice of a Sale of Securities on Form D with the SEC under Regulation D of the Securities Act.

 

(f)          Litigation.
There is no pending or, to the best knowledge of the Company, threatened action, suit, proceeding or investigation before any court,
governmental agency or body, or arbitrator having jurisdiction over the Company, or any of its affiliates that would affect the
execution by the Company or the performance by the Company of its obligations under this Agreement, and the other Offering Documents.
There is no pending or, to the best knowledge of the Company, threatened action, suit, proceeding or investigation before any court,
governmental agency or body, or arbitrator having jurisdiction over the Company, or any of its affiliates which litigation if adversely
determined could result in a material adverse effect to the Company.

 

5.           Indemnification.

 

(a)          Purchaser
agrees to indemnify, defend and hold harmless the Company and its respective affiliates and agents, from and against any and all
demands, claims, actions or causes of action, judgments, assessments, losses, liabilities, damages or penalties and reasonable
attorneys’ fees and related disbursements incurred by the Company (collectively, “Losses”) which directly or
indirectly relate to, result from, or arise out of, a breach of any representations or warranties made by Purchaser herein, and
Purchaser agrees that in the event of any breach of any representations or warranties made by Purchaser herein, the Company may,
at its option, forthwith rescind the sale of the Securities to Purchaser.

 

    	9

    	 

    

 

(b)          The
party to be indemnified hereunder (the “Indemnified Party”) shall promptly notify the party providing indemnification
hereunder (the “Indemnifying Party”) of any claim, demand, action or proceeding for which indemnification may be sought
under Section 5(a) of this Agreement, and, if such claim, demand, action or proceeding is a third party claim, demand, action or
proceeding (collectively, an “Action”), the Indemnifying Party will have the right at its expense to assume the defense
thereof using counsel reasonably acceptable to the Indemnified Party; provided, however any failure or delay to so notify the Indemnifying
Party will not relieve it from its obligation to indemnify any Indemnified Party, unless and only to the extent that such failure
or delay results in the forfeiture by the Indemnifying Party of substantial rights and defenses or the Indemnifying Party is otherwise
materially prejudiced by such failure or delay. Any Indemnified Party shall have the right to employ separate counsel in any such
action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified
Party except to the extent that (i) the employment thereof has been specifically authorized by the Indemnifying Party in writing,
(ii) the Indemnifying Party has failed after a reasonable period of time to assume such defense and to employ counsel or (iii)
in such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of
the Indemnifying Party and the position of such Indemnified Party, in which case the Indemnifying Party shall be responsible for
the reasonable fees and expenses of no more than one such separate counsel for the Indemnified Party. In connection with any such
third party Action, Purchasers and the Company shall cooperate with each other and provide each other with access to relevant books
and records in their possession. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, which
shall not be unreasonably withheld, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened
Action in respect of which any Indemnified Party is or could have been a party and indemnity was or could have been sought hereunder
by such Indemnified Party, unless such settlement, compromise or consent includes an unconditional release of such Indemnified
Party from all liability on claims that are the subject matter of such Action. Further, no Indemnified Party seeking indemnification
hereunder will, without the prior written consent of the Indemnifying Party, which shall not be unreasonably withheld, settle,
compromise, consent to the entry of any judgment in or otherwise seek to terminate any Action. The Indemnifying Party shall not
be liable for settlement of any Action effected without its written consent.

 

6.           Registration
Rights.

 

(a)          Subject
to the terms of subsection (b) below, the Company has agreed to provide incidental “piggyback” registration rights
to the holders of the Warrants (the “Warrant Holders”), such that, concurrent with the filing of any registration statement
under the Securities Act for the purpose of registering the issuance of new or re-offer of existing securities of the Company,
excluding registration statements on SEC forms S-4 and S-8, or any similar or successor forms, it will agree to register the re-offer
of the Shares issuable upon exercise of the Warrants, if at all.

 

(b)          Notwithstanding
the foregoing, the terms of such registration shall be granted in a manner consistent with the terms of the first registration
rights agreement that may be issued by the Company within twelve (12) months of the date hereof, to investors in a private placement
offering (the “Investors”) undertaken in conjunction with a third-party (the “Operating Company”) business
combination involving the Company (the “Subsequent Registration Rights Agreement”); and will be subject to the holders
of the Warrants agreeing to enter into and become a party to such form of Subsequent Registration Rights Agreement. Thus, the grant
of registration rights under subsection (a) above, will be subject to limitations covering, among others, registration exclusions,
allocations, black-out periods, resale restrictions, underwriter cut-backs and cut-backs to accommodate SEC Rule 415 issues, in
a manner consistent with such Subsequent Registration Rights Agreement; with the understanding, however, that if any such allocations,
resale restrictions, cut-backs and exclusions (collectively, the “Cut-backs and Exclusions”) need to be allocated among
the Warrant Holders, warrant holders (“Operating Company Warrant Holders”) of the Operating Company and the Investors,
the Warrant Holders agree that they shall be subject to such Cut-backs and Exclusions prior to the Operating Company Warrant Holders
and the Investors.

 

    	10

    	 

    

 

7.           Confidentiality.
Purchaser acknowledges and agreements that:

 

(a)          This
Agreement and the other Offering Documents have been furnished to Purchaser by the Company for the sole purpose of enabling Purchaser
to consider and evaluate an investment in the Company, and will be kept confidential by Purchaser and not used for any other purpose.

 

(b)          The
information contained herein shall not, without the prior written consent of the Company, be disclosed by Purchaser to any person
or entity, other than Purchaser’s personal financial and legal advisors for the sole purpose of evaluating an investment
in the Company, and will not, directly or indirectly, disclose or permit Purchaser’s personal financial and legal advisors
to disclose, any of such information without the prior written consent of the Company.

 

(c)          Purchaser
shall make its representatives aware of the terms of this section and to be responsible for any breach of this Agreement by such
representatives.

 

(d)          Purchaser
shall not, without the prior written consent of the Company, directly or indirectly, make any statements, public announcements
or release to trade publications or the press with respect to the subject matter of this Agreement and the other Offering Documents.

 

(e)          If
Purchaser decides to not pursue further investigation of the Company or to not participate in the Offering, Purchaser will promptly
return this Agreement, the other Offering Documents and any accompanying documentation to the Company.

 

8.           Entire
Agreement. This Agreement contains the entire agreement between the parties and supercedes all prior agreements and understandings,
both written and oral, between the parties with respect to the subject matter hereto, and no party shall be liable or bound to
any other party in any manner by any warranties, representations, guarantees or covenants except as specifically set forth in this
Agreement. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

 

9.           Amendment
and Modification. This Agreement may not be amended, modified or supplemented except by an instrument or instruments in writing
signed by the party against whom enforcement of any such amendment, modification or supplement is sought.

 

    	11

    	 

    

 

10.         Extensions
and Waivers. At any time prior to the Closing, the parties hereto entitled to the benefits of a term or provision may (a) extend
the time for the performance of any of the obligations or other acts of the parties hereto, (b) waive any inaccuracies in the representations
and warranties contained herein or in any document, certificate or writing delivered pursuant hereto, or (c) waive compliance with
any obligation, covenant, agreement or condition contained herein. Any agreement on the part of a party to any such extension or
waiver shall be valid only if set forth in an instrument or instruments in writing signed by the party against whom enforcement
of any such extension or waiver is sought. No failure or delay on the part of any party hereto in the exercise of any right hereunder
shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant
or agreement.

 

11.         Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns, provided, however, that no party hereto may assign its rights or delegate its obligations under this Agreement without
the express prior written consent of the other party hereto. Except as provided in Section 5, nothing in this Agreement is intended
to confer upon any person not a party hereto (and their successors and assigns) any rights, remedies, obligations or liabilities
under or by reason of this Agreement.

 

12.         Survival
of Representations, Warranties and Covenants. The representations and warranties contained herein shall survive the Closing
and shall thereupon terminate eighteen (18) months from the Closing, except that the representations contained in Sections 3(a),
3(b), 4(a), and 4(b) shall survive indefinitely. All covenants and agreements contained herein which by their terms contemplate
actions following the Closing shall survive the Closing and remain in full force and effect in accordance with their terms. All
other covenants and agreements contained herein shall not survive the Closing and shall thereupon terminate.

 

13.         Headings;
Definitions. The Section headings contained in this Agreement are inserted for convenience of reference only and will not affect
the meaning or interpretation of this Agreement. All references to Sections contained herein mean Sections of this Agreement unless
otherwise stated. All capitalized terms defined herein are equally applicable to both the singular and plural forms of such terms.

 

14.         Severability.
If any provision of this Agreement or the application thereof to any person or circumstance is held to be invalid or unenforceable
to any extent, the remainder of this Agreement shall remain in full force and effect and shall be reformed to render the Agreement
valid and enforceable while reflecting to the greatest extent permissible the intent of the parties.

 

15.         Notices.
All notices hereunder shall be sufficiently given for all purposes hereunder if in writing and delivered personally, sent by documented
overnight delivery service or, to the extent receipt is confirmed, telecopy, telefax or other electronic transmission service to
the appropriate address or number as set forth below:

 

If to the Company:

 

Matinas Biopharma Holdings, Inc.

600 W. Germantown Pike, Suite 400

Plymouth Meeting, PA 19462

Attention: Stephen P. Harrington, President

 

If to Purchaser:

 

    	12

    	 

    

 

To that address indicated on the signature page hereof.

 

16.         Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard
to the laws that might otherwise govern under applicable principles of conflicts of laws thereof.

 

17.         Arbitration.
If a dispute arises as to the interpretation of this Agreement, it shall be decided in an arbitration proceeding conforming to
the Rules of the American Arbitration Association applicable to commercial arbitration then in effect at the time of the dispute.
The arbitration shall take place in New York, New York. The decision of the arbitrators shall be conclusively binding upon the
parties and final, and such decision shall be enforceable as a judgment in any court of competent jurisdiction. The parties shall
share equally the costs of the arbitration.

 

18.         No
Separate Counsel for Investors. Fox Rothschild LLP has acted as counsel for the Company and not as counsel for the Purchaser.
Unless separately retained by the Purchaser (at its expense), no counsel as acted for the Purchaser.

 

19.         Counterparts.
This Agreement may be executed and delivered by facsimile in two or more counterparts, each of which shall be deemed to be an original,
but all of which together shall constitute one and the same agreement.         

 

[Remainder of page intentionally left blank]

 

    	13

    	 

    

 

IN WITNESS WHEREOF, intending to be legally bound, the parties
hereto have caused this Agreement to be executed as of the date set forth below.

 

	 	 	Individual Purchasers:
	 	 	 
	 	 	PURCHASER
	Date:	 	 	 
	 	 	Individual Purchasers:
	 	 	 
	 	 	 
	 	 	Name:
	 	 	 
	 	 	Entity Purchasers:
	 	 	 
	 	 	 
	 	 	Name of Company
	 	 	 
	 	 	By:	 
	 	 	 	Name:
	 	 	 	Title:
	 	 	 
	 	 	All Purchasers Complete:
	 	 	 
	 	 	Address: ______________________________
	 	 	 
	 	 	 
	 	 	Email address:  ______________________
	 	 	
        Social Security/Tax I.D. Number:

        ___________________________________

	 	 	 
	 	 	Number of Units Purchased:  ______________
	 	 	 
	 	 	Purchase Price
	 	 	@ $.10 per Unit: $______________________
	 	 	 
	 	 	MATINAS BIOPHARMA HOLDINGS, INC.
	 	 	 
	Date:	 	 	By:	 
	 	 	 	Stephen P. Harrington
	 	 	 	President

 

    	14

    	 

    

 

annex I
to Purchaser Signature Page

 

Purchaser makes the following representations
regarding its involvement in certain legal proceedings:

 

(i)          Have
any of the following events occurred during the past ten years?

 

(1)         A
petition under the Federal bankruptcy laws or any state or foreign insolvency law was filed by or against you, your business or
your property, or a receiver, fiscal agent or similar officer was appointed by a court for your business or your property.

 

 ̈       Yes        ̈       No

 

(2)         A
petition under the Federal bankruptcy laws or any state or foreign insolvency law was filed by or against any partnership, corporation
or other business association in which you were a general partner or an “executive officer” within two years before
the time of such filing or a receiver, fiscal agent or similar officer was appointed by a court for any partnership, corporation
or other business association in which you were a general partner or an “executive officer” within two years before
the time of such appointment.

 

 ̈       Yes        ̈       No

 

(3)         You
were convicted in a criminal proceeding or are a named subject of a pending criminal proceeding (excluding traffic violations and
other minor offenses).

 

 ̈       Yes        ̈       No

 

(4)         You
were the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining you from, or otherwise limiting, the following activities:

 

a.           acting
as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage
transaction merchant, any other person regulated by the Commodity Futures Trading Commission (“CFTC”), or an “associated”
person of any of the foregoing;

 

 ̈       Yes        ̈       No

 

b.           acting
as an investment adviser, underwriter, broker or dealer in securities, or as an “affiliated” person, director or employee
of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or
practice in connection with such activity;

 

 ̈       Yes        ̈       No

 

    	15

    	 

    

 

 

c.           engaging
in any type of business practice; or

 

 ̈       Yes        ̈       No

 

d.           engaging
in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal
or state securities laws or Federal commodities laws.

 

 ̈       Yes        ̈       No

 

(5)         You
were the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or state authority
barring, suspending or otherwise limiting for more than 60 days your right to engage in any activity described in paragraph 4(a)(iv)(A)
or 4(a)(iv) (B) above or your right to be “associated” with persons engaged in any such activity.

 

 ̈       Yes        ̈       No

 

(6)         You
were found by a court of competent jurisdiction in a civil action or by the U.S. Securities and Exchange Commission (“SEC”)
to have violated any Federal or state securities law, and the judgment in such civil action or finding by the SEC has not been
subsequently reversed, suspended or vacated, or you are presently the subject of any investigation by the SEC that could result
in the finding of such a violation.

 

 ̈       Yes        ̈       No

 

(7)         You
were found by a court of competent jurisdiction in a civil action or by the CFTC to have violated any Federal commodities law,
and the judgment in such civil action or finding by the CFTC has not been subsequently reversed, suspended or vacated, or you are
presently the subject of any investigation by the CFTC that could result in the finding of such a violation.

 

 ̈       Yes        ̈       No

 

(8)         You
were the subject of, or a party to, any Federal or state judicial or administrative order, judgment, decree or finding, not subsequently
reversed, suspended or vacated, related to an alleged violation of:

 

a.           any
Federal or state securities or commodities law or regulation;

 

b.           any
law or regulation with respect to any financial institution or insurance company (including, but not limited to, a temporary or
permanent injunction, order of disgorgement or restitution, civil monetary penalty or temporary or permanent cease and desist order,
or removal or prohibition order); or

 

c.           any
law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity.

 

    	16

    	 

    

 

 ̈       Yes        ̈       No

 

(9)         You
were the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of the Financial Industry
Regulatory Authority, National Association of Securities Dealers, New York Stock Exchange, or any other self-regulatory organization,
any “registered entity” (as defined under the Commodities Exchange Act) or any equivalent exchange, association, entity
or organization that has disciplinary authority over its members or persons “associated” with its members.

 

 ̈       Yes        ̈       No

 

(ii)         If
the answer is “Yes” to any of the foregoing questions, please describe such event below. Please include in your explanation
any mitigating circumstances, if you believe it appropriate. Please use additional sheets to answer if necessary.

 

(iii)        Do
you know of any pending or contemplated legal proceedings, including administrative proceedings and investigations by governmental
authorities, to which either you or any other director, officer or “affiliate” of the Company or any owner of more
than 5% of the Company’s securities, or any “associate” of any such director, officer, “affiliate”
or 5% security holder, is or may be a party adverse to the Company or any of its “subsidiaries” or has an interest
adverse to the Company or any of its “subsidiaries”?

 

 ̈       Yes        ̈       No

 

(iv)         If
the answer is “yes,” please provide basic information about the proceedings below (we will contact you for specifics).

 

(v)          Are
you aware of any other pending, threatened or contemplated legal proceedings to which the Company or any of its “subsidiaries”
is a party or to which any of their property is the subject?

 

 ̈       Yes        ̈       No

 

(vi)         If
the answer is “yes,” please provide basic information about the proceedings below (we will contact you for specifics).

 

(vii)        Do
you know of any legal, regulatory or administrative proceeding brought or contemplated by any governmental authority (including
but not limited to antitrust, price-fixing, tax, environmental, copyright or patent litigation) to which the Company or any “subsidiary”
is or may be a party or of which the Company or any “subsidiary” is or may be subject?

 

 ̈       Yes        ̈       No

 

    	17

    	 

    

 

(1)         If
the answer is “yes,” please provide basic information about the proceedings below (we will contact you for specifics).

 

	 	ATTESTED TO:
	 	 
	 	PURCHASER
	 	 
	 	Individual Purchasers:
	 	 
	 	 
	 	Name:
	 	 
	 	Entity Purchasers:
	 	 
	 	 
	 	Name of Company
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

 

    	18

    	 

    

 

EXHIBIT A

FORM OF WARRANT

 

    	19

    	 

    

 

Warrant Certificate No. ___

 

NEITHER THE SECURITIES REPRESENTED BY THIS
CERTIFICATE NOR THE SECURITIES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED,
SOLD, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND
ANY APPLICABLE STATE SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF
COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE
OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
ACT OR APPLICABLE STATE SECURITIES LAWS.

 

	Effective Date: [   ], 2013	Void After: June 30, 2018

 

MATINAS BIOPHARMA HOLDINGS, INC.

 

WARRANT TO PURCHASE COMMON STOCK

 

Matinas BioPharma
Holdings, Inc., a Delaware corporation (the “Company”), for value received on [ ], 2013 (the “Effective
Date”), hereby issues to [ ] (the “Holder” or “Warrant Holder”) this Warrant
(the “Warrant”) to purchase, [ ] shares (each such share as from time to time adjusted as hereinafter
provided being a “Warrant Share” and all such shares being the “Warrant Shares”) of the Company’s
Common Stock (as defined below), at the Exercise Price (as defined below), as adjusted from time to time as provided herein, on
or before June 30, 2018 (the “Expiration Date”), all subject to the following terms and conditions. This Warrant
is one of a series of warrants of like tenor that have been issued in connection with the Company’s private offering solely
to accredited investors of units in accordance with, and subject to, the terms and conditions described in the Securities Purchase
Agreement dated June 10, 2013, as the same may be amended and supplemented from time to time (the “Subscription Agreement”).

 

As used in this Warrant,
(i) “Business Day” means any day other than Saturday, Sunday or any other day on which commercial banks in the
City of New York, New York, are authorized or required by law or executive order to close; (ii) “Common Stock”
means the common stock of the Company, par value $0.0001 per share, including any securities issued or issuable with respect thereto
or into which or for which such shares may be exchanged for, or converted into, pursuant to any stock dividend, stock split, stock
combination, recapitalization, reclassification, reorganization or other similar event; (iii) “Exercise Price”
means $2.00 per share of Common Stock, subject to adjustment as provided herein; (iv) “Trading
Day” means any day on which the Common Stock is traded (or available for trading) on its principal trading market;
(v) “Affiliate” means any person that, directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with, a person, as such terms are used and construed in Rule 144 promulgated under
the Securities Act of 1933, as amended (the “Securities Act”) and (vi) “Warrantholders” means
the holders of Warrants issued pursuant to the Subscription Agreement. 

 

    	20

    	 

    

 

1.           DURATION
AND EXERCISE OF WARRANTS

 

(a)          Exercise
Period. The Holder may exercise this Warrant in whole or in part on any Business Day on or before 5:00 P.M., Eastern Time,
on the Expiration Date, at which time this Warrant shall become void and of no value.

 

(b)          Exercise
Procedures.

 

(i)          While
this Warrant remains outstanding and exercisable in accordance with Section 1(a), in addition to the manner set forth in Section
1(b)(ii) below, the Holder may exercise this Warrant in whole or in part at any time and from time to time by:

 

(A)         delivery
to the Company of a duly executed copy of the Notice of Exercise attached as Exhibit A;

 

(B)         surrender
of this Warrant to the Secretary of the Company at its principal offices or at such other office or agency as the Company may specify
in writing to the Holder; and

 

(C)         payment
of the then-applicable Exercise Price per share multiplied by the number of Warrant Shares being purchased upon exercise of the
Warrant (such amount, the “Aggregate Exercise Price”) made in the form of cash, or by certified check, bank
draft or money order payable in lawful money of the United States of America or in the form of a Cashless Exercise to the extent
permitted in Section 1(b)(ii) below.

 

(ii)         In
addition to the provisions of Section 1(b)(i) above, if any time commencing 300 days after the Effective Date a registration statement
covering the resale of the Warrant Shares by the Holder is not effective with the Securities and Exchange Commission (the “SEC”),
the Holder may, in its sole discretion, exercise all or any part of the Warrant in a “cashless” or “net-issue”
exercise (a “Cashless Exercise”) by delivering to the Company (1) the Notice of Exercise and (2) the original
Warrant, pursuant to which the Holder shall surrender the right to receive upon exercise of this Warrant, a number of Warrant Shares
having a value (as determined below) equal to the Aggregate Exercise Price, in which case, the number of Warrant Shares to be issued
to the Holder upon such exercise shall be calculated using the following formula:

    	21

    	 

    

 

	 	 	 	X 	=	Y * (A - B)
	 	 	 	 	 	       A
	 	 	 	 	 	 
	 	with:	X = 	the number of Warrant Shares to be issued to the Holder
	 	 	 	 
	 	 	Y =	the number of Warrant Shares with respect to which the Warrant is being exercised
	 	 	 	 
	 	 	A =	the fair value per share of Common Stock on the date of exercise of this Warrant
	 	 	 	 
	 	 	B =	the then-current Exercise Price of the Warrant

 

Solely for the purposes
of this paragraph, “fair value” per share of Common Stock shall mean the average Closing Price (as defined below)
per share of Common Stock for the twenty (20) trading days immediately preceding the date on which the Notice of Exercise is deemed
to have been sent to the Company. “Closing Price” means, for any date, the price determined by the first of
the following clauses that applies:  (a) if the Common Stock is then listed or quoted on the New York Stock Exchange,
the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market or any other national securities
exchange, the closing price per share of the Common Stock for such date (or the nearest preceding date) on the primary eligible
market or exchange on which the Common Stock is then listed or quoted; (b) if prices for the Common Stock are then quoted on the
OTC Bulletin Board or any tier of the OTC Markets, the closing bid price per share of the Common Stock for such date (or the nearest
preceding date) so quoted; or (c) if prices for the Common Stock are then reported in the “Pink Sheets” published by
the National Quotation Bureau Incorporated (or a similar organization or agency succeeding to its functions of reporting prices),
the most recent closing bid price per share of the Common Stock so reported. If the Common Stock is not publicly traded as set
forth above, the “fair value” per share of Common Stock shall be reasonably and in good faith determined by the Board
of Directors of the Company as of the date which the Notice of Exercise is deemed to have been sent to the Company.

 

Notwithstanding the
foregoing, provided that a registration statement covering the resale of the Warrant Shares by the Holder has (x) been declared
effective by the SEC and (y) remained effective for a period of one year, any Cashless Exercise right hereunder shall thereupon
terminate.

 

For purposes of Rule
144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless
exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for such shares shall be deemed
to have commenced, on the date this Warrant was originally issued.

 

    	22

    	 

    

 

(iii)        Upon
the exercise of this Warrant in compliance with the provisions of this Section 1(b), and except as limited pursuant to the last
paragraph of Section 1(b)(ii), the Company shall promptly issue and cause to be delivered to the Holder a certificate for the Warrant
Shares purchased by the Holder. Each exercise of this Warrant shall be effective immediately prior to the close of business on
the date (the “Date of Exercise”) that the conditions set forth in Section 1(b) have been satisfied, as the
case may be. On the first Business Day following the date on which the Company has received each of the Notice of Exercise and
the Aggregate Exercise Price (or notice of a Cashless Exercise in accordance with Section 1(b)(ii)) (the “Exercise Delivery
Documents”), the Company shall transmit an acknowledgment of receipt of the Exercise Delivery Documents to the Company’s
transfer agent (the “Transfer Agent”). On or before the third Business Day following the date on which the Company
has received all of the Exercise Delivery Documents (the “Share Delivery Date”), the Company shall (X) provided
that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer
Program, upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled
pursuant to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal
Agent Commission system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program,
issue and dispatch by overnight courier to the address as specified in the Notice of Exercise, a certificate, registered in the
Company’s share register in the name of the Holder or its designee, for the number of shares of Common Stock to which the
Holder is entitled pursuant to such exercise. Upon delivery of the Exercise Delivery Documents, the Holder shall be deemed for
all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised,
irrespective of the date of delivery of the certificates evidencing such Warrant Shares.

 

(iv)         If
the Company shall fail for any reason or for no reason to issue to the Holder, within three (3) Business Days of receipt of the
Exercise Delivery Documents, a certificate for the number of shares of Common Stock to which the Holder is entitled and register
such shares of Common Stock on the Company’s share register or to credit the Holder’s balance account with DTC for
such number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise of this Warrant, and if
on or after such Business Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver
in satisfaction of a sale by the Holder of shares of Common Stock issuable upon such exercise that the Holder anticipated receiving
from the Company (a “Buy-In”), then the Company shall, (A) pay in cash to the Holder the amount, if any, by
which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased
(the “Buy-In Amount”) plus the amount paid by the Holder to the Company as the exercise price for the Warrant
Shares exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver
to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase
obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number
of Warrant Shares for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock that would
have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder
purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares
of Common Stock, and paid the Company $5,000 as the exercise price, the Holder’s cash outlay would be a total of $16,000;
and if the aggregate sales price of the shares giving rise to such Buy-In obligation was $10,000, under clause (A) of the immediately
preceding sentence the Company shall be required to pay the Holder $6,000. The Holder shall provide the Company written notice
indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount
of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law
or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s
failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to
the terms hereof.

 

    	23

    	 

    

 

(c)          Partial
Exercise. This Warrant shall be exercisable, either in its entirety or, from time to time, for part only of the number of Warrant
Shares referenced by this Warrant. If this Warrant is submitted in connection with any exercise pursuant to Section 1 and the number
of Warrant Shares represented by this Warrant submitted for exercise is greater than the actual number of Warrant Shares being
acquired upon such an exercise, then the Company shall as soon as practicable and in no event later than five (5) Business
Days after any exercise and at its own expense, issue a new Warrant of like tenor representing the right to purchase the number
of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect
to which this Warrant is exercised.

 

(d)          Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance
with Section 16.

 

2.           ISSUANCE
OF WARRANT SHARES

 

(a)          The
Company covenants that all Warrant Shares will, upon issuance in accordance with the terms of this Warrant, be (i) duly authorized,
fully paid and non-assessable, and (ii) free from all liens, charges and security interests, with the exception of claims arising
through the acts or omissions of any Holder and except as arising from applicable Federal and state securities laws.

 

(b)          The
Company shall register this Warrant upon records to be maintained by the Company for that purpose in the name of the record holder
of such Warrant from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner thereof
for the purpose of any exercise thereof, any distribution to the Holder thereof and for all other purposes.

 

(c)          The
Company will not, by amendment of its certificate of incorporation, by-laws or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist
in the carrying out of all the provisions of this Warrant and in the taking of all action necessary or appropriate in order to
protect the rights of the Holder to exercise this Warrant, or against impairment of such rights.

 

    	24

    	 

    

 

3.           ADJUSTMENTS
OF EXERCISE PRICE, NUMBER AND TYPE OF WARRANT SHARES

 

(a)          The
Exercise Price and the number of shares purchasable upon the exercise of this Warrant shall be subject to adjustment from time
to time upon the occurrence of certain events described in this Section 3; provided, that notwithstanding the provisions
of this Section 3, the Company shall not be required to make any adjustment if and to the extent that such adjustment would require
the Company to issue a number of shares of Common Stock in excess of its authorized but unissued shares of Common Stock, less all
amounts of Common Stock that have been reserved for issue upon the conversion of all outstanding securities convertible into shares
of Common Stock and the exercise of all outstanding options, warrants and other rights exercisable for shares of Common Stock.
If the Company does not have the requisite number of authorized but unissued shares of Common Stock to make any adjustment, the
Company shall use its commercially best efforts to obtain the necessary stockholder consent to increase the authorized number of
shares of Common Stock to make such an adjustment pursuant to this Section 3.

 

(i)          Subdivision
or Combination of Stock. In case the Company shall at any time subdivide (whether by way of stock dividend, stock split or
otherwise) its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior
to such subdivision shall be proportionately reduced and the number of Warrant Shares shall be proportionately increased, and conversely,
in case the outstanding shares of Common Stock of the Company shall be combined (whether by way of stock combination, reverse stock
split or otherwise) into a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall be
proportionately increased and the number of Warrant Shares shall be proportionately decreased. The Exercise Price and the Warrant
Shares, as so adjusted, shall be readjusted in the same manner upon the happening of any successive event or events described in
this Section 3(a)(i).

 

(ii)         Dividends
in Stock, Property, Reclassification. If at any time, or from time to time, all of the holders of Common Stock (or any shares
of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received or become entitled to
receive, without payment therefore:

 

(A)         any
shares of stock or other securities that are at any time directly or indirectly convertible into or exchangeable for Common Stock,
or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other distribution,
or

 

(B)         additional
stock or other securities or property (including cash) by way of spin-off, split-up, reclassification, combination of shares or
similar corporate rearrangement (other than shares of Common Stock issued as a stock split or adjustments in respect of which shall
be covered by the terms of Section 3(a)(i) above),

 

    	25

    	 

    

 

then and in each such case, the Exercise
Price and the number of Warrant Shares to be obtained upon exercise of this Warrant shall be adjusted proportionately, and the
Holder hereof shall, upon the exercise of this Warrant, be entitled to receive, in addition to the number of shares of Common Stock
receivable thereupon, and without payment of any additional consideration therefor, the amount of stock and other securities and
property (including cash in the cases referred to above) that such Holder would hold on the date of such exercise had such Holder
been the holder of record of such Common Stock as of the date on which holders of Common Stock received or became entitled to receive
such shares or all other additional stock and other securities and property. The Exercise Price and the Warrant Shares, as so adjusted,
shall be readjusted in the same manner upon the happening of any successive event or events described in this Section 3(a)(ii).

 

(iii)        Reorganization,
Reclassification, Consolidation, Merger or Sale. If any recapitalization, reclassification or reorganization of the capital
stock of the Company, or any consolidation or merger of the Company with another corporation, or the sale of all or substantially
all of its assets or other transaction shall be effected in such a way that holders of Common Stock shall be entitled to receive
stock, securities, or other assets or property (an “Organic Change”), then, as a condition of such Organic Change,
lawful and adequate provisions shall be made by the Company whereby the Holder hereof shall thereafter have the right to purchase
and receive (in lieu of the shares of the Common Stock of the Company immediately theretofore purchasable and receivable upon the
exercise of the rights represented by this Warrant) such shares of stock, securities or other assets or property as may be issued
or payable with respect to or in exchange for a number of outstanding shares of such Common Stock equal to the number of shares
of such stock immediately theretofore purchasable and receivable assuming the full exercise of the rights represented by this Warrant.
In the event of any Organic Change, appropriate provision shall be made by the Company with respect to the rights and interests
of the Holder of this Warrant to the end that the provisions hereof (including, without limitation, provisions for adjustments
of the Exercise Price and of the number of shares purchasable and receivable upon the exercise of this Warrant and registration
rights) shall thereafter be applicable, in relation to any shares of stock, securities or assets thereafter deliverable upon the
exercise hereof. The Company will not affect any such consolidation, merger or sale unless, prior to the consummation thereof,
the successor corporation (if other than the Company) resulting from such consolidation or merger or the corporation purchasing
such assets shall assume by written instrument reasonably satisfactory in form and substance to the Holder executed and mailed
or delivered to the registered Holder hereof at the last address of such Holder appearing on the books of the Company, the obligation
to deliver to such Holder such shares of stock, securities or assets as, in accordance with the foregoing provisions, such Holder
may be entitled to purchase. If there is an Organic Change, then the Company shall cause to be mailed to the Holder at its last
address as it shall appear on the books and records of the Company, at least 10 calendar days before the effective date of the
Organic Change, a notice stating the date on which such Organic Change is expected to become effective or close, and the date as
of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares for securities, cash,
or other property delivered upon such Organic Change; provided, that the failure to mail such notice or any defect therein or in
the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. The Holder is
entitled to exercise this Warrant during the 10-day period commencing on the date of such notice to the effective date of the event
triggering such notice. In any event, the successor corporation (if other than the Company) resulting from such consolidation or
merger or the corporation purchasing such assets shall be deemed to assume such obligation to deliver to such Holder such shares
of stock, securities or assets even in the absence of a written instrument assuming such obligation to the extent such assumption
occurs by operation of law. 

 

    	26

    	 

    

  

(b)          Certificate
as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to this Section 3, the Company at its expense
shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each Holder of this Warrant
a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment
is based. The Company shall promptly furnish or cause to be furnished to such Holder a like certificate setting forth: (i) such
adjustments and readjustments; and (ii) the number of shares and the amount, if any, of other property which at the time would
be received upon the exercise of the Warrant.

 

(c)          Certain
Events. If any event occurs as to which the other provisions of this Section 3 are not strictly applicable but the lack of
any adjustment would not fairly protect the purchase rights of the Holder under this Warrant in accordance with the basic intent
and principles of such provisions, or if strictly applicable would not fairly protect the purchase rights of the Holder under this
Warrant in accordance with the basic intent and principles of such provisions, then the Company's Board of Directors will, in good
faith, make an appropriate adjustment to protect the rights of the Holder; provided, that no such adjustment pursuant to
this Section 3(c) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to
this Section 3.

 

4.           REDEMPTION
OF WARRANTS

 

(a)          General.
Prior to the Expiration Date, the Company shall have the option, subject to the conditions set forth herein, to redeem all of the
Warrants then outstanding upon not less than thirty (30) days nor more than sixty (60) days prior written notice to the Warrant
Holders at any time provided that, at the time of delivery of such notice (i) there is an effective registration statement
covering the resale of the Warrant Shares, and (ii) the closing bid price of the Company’s Common
Stock for each of the twenty (20) consecutive Trading Days prior to the date of the notice of redemption is at least $5.00, as
proportionately adjusted to reflect any stock splits, stock dividends, combination of shares or like events. Notwithstanding the
foregoing, the Company shall not be entitled to redeem the Warrants pursuant to this Section 4 unless the Company also redeems
all other warrants then outstanding for which it has rights of redemption.

 

(b)          Notice.
Notice of redemption will be effective upon mailing in accordance with this Section and such date may be referred to below as the
“Notice Date.” Notice of redemption shall be mailed by first class mail, postage prepaid, by the Company not
less than 30 days prior to the date fixed for redemption to the Holders of the Warrants to be redeemed at their last addresses
as they shall appear on the registration books. Any notice mailed in the manner herein provided shall be conclusively presumed
to have been duly given whether or not the Holder received such notice.

 

    	27

    	 

    

 

(c)          Redemption
Date and Redemption Price. The notice of redemption shall state the date set for redemption, which date shall be not less than
thirty (30) days, or more than sixty (60) days, from the Notice Date (the “Redemption Date”). The Company shall
not mail the notice of redemption unless all funds necessary to pay for redemption of the Warrants to be redeemed shall have first
been set aside by the Company for the benefit of the Warrant Holders so as to be and continue to be available therefor. The redemption
price to be paid to the Warrant Holders will be $0.0001 for each share of Common Stock of the Company to which the Warrant Holder
would then be entitled upon exercise of the Warrant being redeemed, as adjusted from time to time as provided herein (the “Redemption
Price”).

 

(d)          Exercise.
Following the Notice Date, the Warrant Holders may exercise their Warrants in accordance with Section 1 of this Warrant between
the Notice Date and 5:00 p.m. Eastern Time on the Redemption Date and such exercise shall be timely if the form of election to
purchase duly executed and the Warrant Exercise Price for the shares of Common Stock to be purchased are actually received by the
Company at its principal offices prior to 5:00 p.m. Eastern Time on the Redemption Date.

 

(e)          Mailing.
If any Warrant Holder does not wish to exercise any Warrant being redeemed, he should mail such Warrant to the Company at its principal
offices after receiving the notice of redemption. On and after 5:00 p.m. Eastern Time on the Redemption Date, notwithstanding that
any Warrant subject to redemption shall not have been surrendered for redemption, the obligation evidenced by all Warrants not
surrendered for redemption or effectively exercised shall be deemed no longer outstanding, and all rights with respect thereto
shall forthwith cease and terminate, except only the right of the holder of each Warrant subject to redemption to receive the Redemption
Price for each share of Common Stock to which he would be entitled if he exercised the Warrant upon receiving notice of redemption
of the Warrant subject to redemption held by him.

 

5.           TRANSFERS
AND EXCHANGES OF WARRANT AND WARRANT SHARES

 

(a)          Registration
of Transfers and Exchanges. Subject to Section 5(c), upon the Holder’s surrender of this Warrant, with a duly executed
copy of the Form of Assignment attached as Exhibit B, to the Secretary of the Company at its principal offices or at such
other office or agency as the Company may specify in writing to the Holder, the Company shall register the transfer of all or any
portion of this Warrant. Upon such registration of transfer, the Company shall issue a new Warrant, in substantially the form of
this Warrant, evidencing the acquisition rights transferred to the transferee and a new Warrant, in similar form, evidencing the
remaining acquisition rights not transferred, to the Holder requesting the transfer.

 

(b)          Warrant
Exchangeable for Different Denominations. The Holder may exchange this Warrant for a new Warrant or Warrants, in substantially
the form of this Warrant, evidencing in the aggregate the right to purchase the number of Warrant Shares which may then be purchased
hereunder, each of such new Warrants to be dated the date of such exchange and to represent the right to purchase such number of
Warrant Shares as shall be designated by the Holder. The Holder shall surrender this Warrant with duly executed instructions regarding
such re-certification of this Warrant to the Secretary of the Company at its principal offices or at such other office or agency
as the Company may specify in writing to the Holder.

 

    	28

    	 

    

 

(c)          Restrictions
on Transfers. This Warrant may not be transferred at any time without (i) registration under the Securities Act or (ii) an
exemption from such registration and a written opinion of legal counsel addressed to the Company that the proposed transfer of
the Warrant may be effected without registration under the Securities Act, which opinion will be in form and from counsel reasonably
satisfactory to the Company.

 

(d)          Permitted
Transfers and Assignments. Notwithstanding any provision to the contrary in this Section 5, the Holder may transfer, with or
without consideration, this Warrant or any of the Warrant Shares (or a portion thereof) to the Holder’s Affiliates (as such
term is defined under Rule 144 of the Securities Act) without obtaining the opinion from counsel that may be required by Section
5(c)(ii), provided, that the Holder delivers to the Company and its counsel certification, documentation, and other assurances
reasonably required by the Company’s counsel to enable the Company’s counsel to render an opinion to the Company’s
Transfer Agent that such transfer does not violate applicable securities laws.

 

6.           MUTILATED
OR MISSING WARRANT CERTIFICATE

 

If this Warrant is
mutilated, lost, stolen or destroyed, upon request by the Holder, the Company will, at its expense, issue, in exchange for and
upon cancellation of the mutilated Warrant, or in substitution for the lost, stolen or destroyed Warrant, a new Warrant, in substantially
the form of this Warrant, representing the right to acquire the equivalent number of Warrant Shares; provided, that, as
a prerequisite to the issuance of a substitute Warrant, the Company may require satisfactory evidence of loss, theft or destruction
as well as an indemnity from the Holder of a lost, stolen or destroyed Warrant.

 

7.           PAYMENT
OF TAXES

 

The Company will pay
all transfer and stock issuance taxes attributable to the preparation, issuance and delivery of this Warrant and the Warrant Shares
(and replacement Warrants) including, without limitation, all documentary and stamp taxes; provided, however, that
the Company shall not be required to pay any tax in respect of the transfer of this Warrant, or the issuance or delivery of certificates
for Warrant Shares or other securities in respect of the Warrant Shares to any person or entity other than to the Holder.

 

8.           FRACTIONAL
WARRANT SHARES

 

No fractional Warrant
Shares shall be issued upon exercise of this Warrant. The Company, in lieu of issuing any fractional Warrant Share, shall round
up the number of Warrant Shares issuable to nearest whole share.

 

9.           NO
STOCK RIGHTS AND LEGEND

 

No holder of this Warrant,
as such, shall be entitled to vote or be deemed the holder of any other securities of the Company that may at any time be issuable
on the exercise hereof, nor shall anything contained herein be construed to confer upon the holder of this Warrant, as such, the
rights of a stockholder of the Company or the right to vote for the election of directors or upon any matter submitted to stockholders
at any meeting thereof, or give or withhold consent to any corporate action or to receive notice of meetings or other actions affecting
stockholders (except as provided herein), or to receive dividends or subscription rights or otherwise (except as provide herein).

 

    	29

    	 

    

 

Each certificate for
Warrant Shares initially issued upon the exercise of this Warrant, and each certificate for Warrant Shares issued to any subsequent
transferee of any such certificate, shall be stamped or otherwise imprinted with a legend in substantially the following form:

 

“THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY STATE SECURITIES LAWS, AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES
LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES,
WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED
OR TRANSFERRED IN THE MANNER CONTEMPLATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES
LAWS.”

 

10.          INTENTIONALLY
DELETED

 

11.          NOTICES

 

All
notices, consents, waivers, and other communications under this Warrant must be in writing and will be deemed given to a party
when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier service (costs prepaid); (b)
sent by facsimile or e-mail with confirmation of transmission by the transmitting equipment; (c) received or rejected by the addressee,
if sent by certified mail, return receipt requested, if to the registered Holder hereof; or (d) seven days after the placement
of the notice into the mails (first class postage prepaid), to the Holder at the address, facsimile number, or e-mail address furnished
by the registered Holder to the Company in accordance with the Subscription Agreement by and between the Company and the Holder,
or if to the Company, to it at 600 W. Germantown Pike, Suite 400, Plymouth Meeting, PA 19462, Attention:
Stephen P. Harrington, President (or to such other address, facsimile number, or e-mail address as the Holder or the Company as
a party may designate by notice the other party).

 

12.          SEVERABILITY

 

If a court of competent
jurisdiction holds any provision of this Warrant invalid or unenforceable, the other provisions of this Warrant will remain in
full force and effect. Any provision of this Warrant held invalid or unenforceable only in part or degree will remain in full force
and effect to the extent not held invalid or unenforceable.

 

    	30

    	 

    

 

13.          BINDING
EFFECT

 

This Warrant shall
be binding upon and inure to the sole and exclusive benefit of the Company, its successors and assigns, the registered Holder or
Holders from time to time of this Warrant and the Warrant Shares.

 

14.          SURVIVAL
OF RIGHTS AND DUTIES

 

This Warrant shall
terminate and be of no further force and effect on the earlier of 5:00 P.M., Eastern Time, on the Expiration Date or the date on
which this Warrant has been exercised in full.

 

15.          GOVERNING
LAW

 

This Warrant will be
governed by and construed under the laws of the State of New York without regard to conflicts of laws principles that would require
the application of any other law.

 

16.          DISPUTE
RESOLUTION

 

In the case of a dispute
as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall submit the
disputed determinations or arithmetic calculations via facsimile within two Business Days of receipt of the Notice of Exercise
giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable to agree upon such determination
or calculation of the Exercise Price or the Warrant Shares within three Business Days of such disputed determination or arithmetic
calculation being submitted to the Holder, then the Company shall, within two Business Days, submit via facsimile (a) the disputed
determination of the Exercise Price to an independent, reputable investment bank selected by the Company and approved by the Holder
or (b) the disputed arithmetic calculation of the Warrant Shares to the Company’s independent, outside accountant. The Company
shall cause at its expense the investment bank or the accountant, as the case may be, to perform the determinations or calculations
and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives the disputed
determinations or calculations. Such investment bank’s or accountant’s determination or calculation, as the case may
be, shall be binding upon all parties absent demonstrable error.

 

    	31

    	 

    

 

17.          NOTICES
OF RECORD DATE

 

Upon (a) any establishment
by the Company of a record date of the holders of any class of securities for the purpose of determining the holders thereof who
are entitled to receive any dividend or other distribution, or right or option to acquire securities of the Company, or any other
right, or (b) any capital reorganization, reclassification, recapitalization, merger or consolidation of the Company with or into
any other corporation, any transfer of all or substantially all the assets of the Company, or any voluntary or involuntary dissolution,
liquidation or winding up of the Company, or the sale, in a single transaction, of a majority of the Company’s voting stock
(whether newly issued, or from treasury, or previously issued and then outstanding, or any combination thereof), the Company shall
mail to the Holder at least ten (10) Business Days, or such longer period as may be required by law, prior to the record date specified
therein, a notice specifying (i) the date established as the record date for the purpose of such dividend, distribution, option
or right and a description of such dividend, option or right, (ii) the date on which any such reorganization, reclassification,
transfer, consolidation, merger, dissolution, liquidation or winding up, or sale is expected to become effective and (iii) the
date, if any, fixed as to when the holders of record of Common Stock shall be entitled to exchange their shares of Common Stock
for securities or other property deliverable upon such reorganization, reclassification, transfer, consolation, merger, dissolution,
liquidation or winding up.

 

18.          RESERVATION
OF SHARES

 

The Company shall reserve
and keep available out of its authorized but unissued shares of Common Stock for issuance upon the exercise of this Warrant, free
from pre-emptive rights, such number of shares of Common Stock for which this Warrant shall from time to time be exercisable. The
Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein
without violation of any applicable law or regulation. Without limiting the generality of the foregoing, the Company covenants
that it will use commercially reasonable efforts to take all such action as may be necessary or appropriate in order that the Company
may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents, including but not limited to consents from the Company’s
stockholders or Board of Directors or any public regulatory body, as may be necessary to enable the Company to perform its obligations
under this Warrant.

 

19.          NO
THIRD PARTY RIGHTS

 

This Warrant is not
intended, and will not be construed, to create any rights in any parties other than the Company and the Holder, and no person or
entity may assert any rights as third-party beneficiary hereunder.

  

[SIGNATURE PAGE FOLLOWS]

 

    	32

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of the date first set forth above.

 

	 	MATINAS BIOPHARMA HOLDINGS, INC.
	 	 	 	 
	 	By: 	 	 
	 	 	Name:	Stephen P. Harrington
	 	 	Title:	President

 

    	33

    	 

    

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

(To be executed by the Holder of Warrant
if such Holder desires to exercise Warrant)

 

To Matinas
BioPharma Holdings,Inc.:

 

The
undersigned hereby irrevocably elects to exercise this Warrant and to purchase thereunder, ___________________ full shares of Matinas
BioPharma Holdings,Inc. common stock issuable upon exercise of the Warrant and delivery of:

 

(1)         $_________
(in cash as provided for in the foregoing Warrant) and any applicable taxes payable by the undersigned pursuant to such Warrant;
and

 

(2)         __________
shares of Common Stock (pursuant to a Cashless Exercise in accordance with Section 1(b)(ii) of the Warrant) (check here if the
undersigned desires to deliver an unspecified number of shares equal the number sufficient to effect a Cashless Exercise [___]).

 

The undersigned
requests that certificates for such shares be issued in the name of:

 

 

(Please print name, address and social
security or federal employer

identification number (if applicable))

 

 

 

 

 

If the shares issuable
upon this exercise of the Warrant are not all of the Warrant Shares which the Holder is entitled to acquire upon the exercise of
the Warrant, the undersigned requests that a new Warrant evidencing the rights not so exercised be issued in the name of and delivered
to:

 

 

(Please print name, address and social
security or federal employer

identification number (if applicable))

 

 

 

 

 

	 	Name of Holder (print):       ________________________
	 	(Signature):   ___________________________________
	 	(By:)  _________________________________________
	 	(Title:) ________________________________________
	 	Dated:   ________________________________________

 

    	34

    	 

    

 

EXHIBIT B

 

FORM OF ASSIGNMENT

 

FOR VALUE RECEIVED,
___________________________________ hereby sells, assigns and transfers to each assignee set forth below all of the rights of the
undersigned under the Warrant (as defined in and evidenced by the attached Warrant) to acquire the number of Warrant Shares set
opposite the name of such assignee below and in and to the foregoing Warrant with respect to said acquisition rights and the shares
issuable upon exercise of the Warrant:

 

	Name of Assignee	 	Address	 	Number of Shares
	
         

         
	 	 	 	 
	
         

         
	 	 	 	 
	
         

         
	 	 	 	 
	
         

         
	 	 	 	 

 

If the total of the
Warrant Shares are not all of the Warrant Shares evidenced by the foregoing Warrant, the undersigned requests that a new Warrant
evidencing the right to acquire the Warrant Shares not so assigned be issued in the name of and delivered to the undersigned.

 

	 	Name of Holder (print):       ________________________
	 	(Signature):   ___________________________________
	 	(By:)  _________________________________________
	 	(Title:) ________________________________________
	 	Dated:   ________________________________________

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