Document:

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT
AGREEMENT (the “Agreement” or “Employment Agreement”) is made as of October 18, 2018 by and between AgeX
Therapeutics, Inc. (the “Company”), a Delaware corporation, and Michael David West (“Executive”).

 

In
consideration of the terms and conditions hereinafter set forth, the parties hereto agree as follows:

 

1.
Engagement; Position and Duties.

 

(a)
Position and Duties. The Company agrees to employ Executive in the position of Chief Executive Officer, and Executive accepts
such employment. Executive shall perform his duties as the Board of Directors of the Company (the “Board of Directors”)
may from time to time direct or require. Without limiting the generality of the immediately preceding sentence, Executive shall
manage the Company’s corporate strategy and development and implementation, manage research and product development, oversee
operations, and serve as the main contact for institutional investors and the Board of Directors. Executive shall report to the
Board of Directors. Executive shall devote his best efforts, skills and abilities, on a full-time basis, exclusively to the Company’s
business. Executive covenants and agrees that he will faithfully adhere to and fulfill such reasonable policies as are established
from time to time by the Board of Directors or the Company (“Policies”).

 

(b)
No Conflicting Obligations. Executive represents and warrants to Company that Executive is under no obligations or commitments,
whether contractual or otherwise, that are inconsistent with Executive’s obligations under this Agreement or that would
prohibit Executive, contractually or otherwise, from performing Executive’s duties as under this Agreement and the Policies.

 

(c)
Performance of Services for Related Companies. In addition to the performance of services for the Company, Executive shall,
to the extent so required by the Company, also perform services for one or more members of a consolidated group of which the Company
is a part (“Related Company”), provided that such services are consistent with the kind of services Executive performs
or may be required to perform for the Company under this Agreement. If Executive performs any services for any Related Company,
Executive shall not be entitled to receive any compensation or remuneration in addition to or in lieu of the compensation and
remuneration provided under this Agreement on account of such services for the Related Company. The Policies will govern Executive’s
employment by the Company and any Related Companies for which Executive is asked to provide Services. In addition, Executive covenants
and agrees that Executive will faithfully adhere to and fulfill such additional policies as may established from time to time
by the board of directors of any Related Company for which Executive performs services, to the extent that such policies and procedures
differ from or are in addition to the Policies adopted by the Company.

 

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(d)
No Unauthorized Use of Third Party Intellectual Property. Executive represents and warrants to Company that Executive will
not use or disclose, in connection with Executive’s employment by Company or any Related Company, any patents, trade secrets,
confidential information, or other proprietary information or intellectual property as to which any other person has any right,
title or interest, except to the extent that Company or a Related Company holds a valid license or other written permission for
such use from the owner(s) thereof. Executive represents and warrants to Company that Executive has returned all property and
confidential information belonging to any prior employer, other than his current consulting clients.

 

2.
Compensation

 

(a)
Salary. During the term of this Agreement, Company shall pay to the Executive a salary of $525,000 annually. Executive’s
salary shall be paid in equal semi-monthly installments, consistent with Company’s regular salary payment practices. Executive’s
salary may be increased from time-to-time by Company, in Company’s sole and absolute discretion, without affecting this
Agreement.

 

(b)
Annual Bonus. Executive shall be eligible to earn an annual cash incentive bonus award determined by the Board in respect
of each fiscal year during Executive’s employment (the “Annual Bonus”), with a target bonus equal to no less
than fifty percent (50%) of Base Salary (the “Target Bonus”) for achievement of the specified performance goals at
target levels for the applicable calendar year. The actual Annual Bonus payable shall be based upon the level of achievement of
objectively determinable Company and individual performance goals for the applicable calendar year, as determined by the Board
in consultation with Executive. Such performance goals shall be determined and memorialized in writing no later than January 31
of each calendar year. If the specialized performance goals for the applicable year are achieved at maximum levels, the actual
Annual Bonus payable may exceed the Target Bonus. The Annual Bonus shall be paid to Executive at the same time as annual bonuses
are generally payable to other senior executives of the Company, but not later than two and one-half (2 1⁄2) months after
the last day of the Company’s fiscal year in which the Annual Bonus was earned.

 

(c)
Expense Reimbursements. Company shall reimburse Executive for reasonable travel and other business expenses (but not expenses
of commuting to his primary workplace) incurred by Executive in the performance of Executive’s duties under this Agreement,
subject to the Company’s Policies and procedures in effect from time to time, and provided that Executive submits supporting
vouchers.

 

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(d)
Benefit Plans. Executive shall be eligible (to the extent Executive qualifies) to participate in certain retirement, pension,
life, health, accident and disability insurance, equity incentive plan or other similar employee benefit plans which may be adopted
by Company for its executive officers or other employees. Company has the right, at any time and without any amendment of this
Agreement, and without prior notice to or consent from Executive, to adopt, amend, change, or terminate any such benefit plans
that may now be in effect or that may be adopted in the future, in each case without any further financial obligation to Executive;
provided that such unilateral change does apply to Executive in a manner different than other Company executives or employees
of a comparable executive level, except for changes required by applicable federal, state, or local law, or implemented in response
to any change of federal, state or local law or regulation Any benefits to which Executive may be entitled under any benefit plan
shall be governed by the terms and conditions of the applicable benefit plan, and any related plan documents, as in effect from
time to time.

 

(e)
Stock Options. As soon as practicable on or after the Executive’s start date, the Company will grant Executive an option
to purchase 500,000 of the Company’s shares of common stock, par value $0.0001 per share, (the “Option”).

 

	 	(i)	The
    exercise price of the Option will be the fair market value of the Company’s common shares on the date of the grant, as determined
    by the Board of Directors.  The Option will be in addition to any existing stock options previously granted to the
    Executive. The Option will vest (and thereby become exercisable) as follows: one quarter of the options shall vest upon completion
    of 12 full months of continuous employment of the Executive by the Company measured from the effective date of grant, and
    the balance of the options shall vest in 36 equal monthly installments commencing on the first anniversary of the effective
    date of grant, based upon the completion of each month of continuous employment of the Executive by the Company.  The
    unvested portion of the Option shall not be exercisable.  The Option will not be transferable by the Executive during
    his lifetime, except as provided in the Stock Option Agreement consistent with the Company’s Equity Incentive Plan (the
    “Plan”).
	 	 	 
	 	(ii)	The
    vested portion of the Option shall expire on the earliest of (A) ten (10) years from the date of the grant, (B) three months
    after Executive ceases to provide continuous service to the Company as an employee or consultant for any reason other than
    Executive’s death or Disability (as defined below), or (C) one year after Executive ceases to be a service provider to the
    Company due to his death or Disability; provided that if Executive dies during the three month period described in clause
    (B) of this paragraph, the expiration date of the vested portion of the Option shall be one year after the date of his death.  
	 	 	 
	 	(iii)	The
    Option will be subjected to the terms and conditions of the Plan and a Stock Option Agreement consistent with the Plan.
	 	 	 
	 	(iv)	On
    an annual basis, the Board shall determine whether to grant Executive additional options under the Plan.  If granted,
    such additional options shall be subject to terms and conditions determined by the Board; provided, however, that additional
    options shall vest monthly over forty-eight months starting at the grant date.

 

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(f)
Vacation; Sick Leave. Executive shall be entitled to 20 paid time off days (accrued on a biweekly pay period basis and capped
at 1.5 times the yearly accrual), 24 hours of annual sick leave, without reduction in compensation, during each calendar year,
or as may be provided by the Policies. Executive’s vacation shall be taken at such time as is consistent with the needs
and Policies of Company. All vacation days and sick leave days shall accrue annually based upon days of service. Executive’s
right to leave from work due to illness is subject to the Policies and the provisions of this Agreement governing termination
due to disability, sickness or illness. The Policies governing the disposition of unused sick leave days remaining at the end
of Company’s fiscal year shall govern whether unused sick leave days will be paid, lost, or carried over into subsequent
fiscal years.

 

3.
Competitive Activities. During the term of Executive’s employment, and for twenty-four months thereafter, Executive
shall not, for Executive or any third party, directly or indirectly, solicit for employment or recommend for employment any person
employed by Company or any Related Company. During the term of Executive’s employment, Executive shall not, directly or
indirectly as an employee, contractor, officer, director, member, partner, agent, or equity owner, engage in any activity or business
that competes or could reasonably be expected to compete with the business of Company or any Related Company. Executive acknowledges
that there is a substantial likelihood that the activities described in this Section would (a) involve the unauthorized use or
disclosure of Company’s or a Related Company’s Confidential Information and that use or disclosure would be extremely
difficult to detect, and (b) result in substantial competitive harm to the business of Company or a Related Company. Executive
has accepted the limitations of this Section as a reasonably practicable and unrestrictive means of preventing such use or disclosure
of Confidential Information and preventing such competitive harm.

 

4.
Inventions/Intellectual Property/Confidential Information. Executive acknowledges the execution and delivery to Company of
an Executive Confidential Information and Inventions Assignment Agreement” (the “Confidentiality and IP Agreement”),
attached hereto as Exhibit A.

 

5.
Termination of Employment. Executive understands and agrees that Executive’s employment has no specific term. This Agreement,
and the employment relationship, are “at will” and may be terminated by Executive or by Company with or without Cause
(as defined below) at any time by notice given orally or in writing. Except as otherwise agreed in writing or as otherwise provided
in this Agreement, upon termination of Executive’s employment, Company shall have no further obligation to Executive, by
way of compensation or otherwise, as expressly provided in this Agreement or in any separate employment agreement that might then
exist between Executive and Company.

 

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(a)
Payments Due Upon Termination of Employment. Upon termination of Executive’s employment with Company at any time and
for any reason, in the event of the termination of Executive’s employment by Company for Cause, or termination of Executive’s
employment as a result of death, Disability, or resignation, Executive will be entitled to receive only the severance benefits
set forth below, but Executive will not be entitled to any other compensation, award, or damages with respect to Executive’s
employment or termination of employment.

 

(i)
Termination for Cause, Death, Disability, or Resignation Other than for Good Reason. In the event of the termination of Executive’s
employment by Company for Cause, or termination of Executive’s employment as a result of death, Disability, or resignation
other than for Good Reason (as defined below). Executive will be entitled to receive payment for all accrued but unpaid salary
actually earned prior to or as of the date of termination of Executive’s employment, and vacation or paid time off accrued
as of the date of termination of Executive’s employment. Executive will not be entitled to any cash severance benefits or
additional vesting of any stock options or other equity or cash awards.

 

(ii)
Termination Without Cause or By Executive for Good Reason. In the event of termination of Executive’s employment by
Company without Cause, Executive will be entitled to (A) the benefits set forth in paragraph (a)(i) of this Section; (B) payment
in an amount equal to twelve (12) months’ base salary, which may be paid in a lump sum or, at the election of Company, in
installments consistent with the payment of Executive’s salary while employed by Company; (C) payment in full of the Target
Bonus due for the year in which Executive was terminated without Cause or by Executive for Good Reason, subject to such payroll
deductions and withholdings as are required by law; (D) payment, for a period of six (6) months, of any health insurance benefits
that Executive was receiving at the time of termination of Executive’s employment under a Company employee health insurance
plan subject to COBRA, (E) all outstanding equity grants held by Executive shall automatically vest as to the number of unvested
shares that would otherwise have vested during the twelve months following termination; and (F) with respect to any outstanding
vested but unexercised stock option grants, the post-termination exercise period shall be extended to the earlier of the date
twelve (12) months after termination or the expiration date of the stock option.

 

(iii)
Change of Control. If Company (or any successor in interest to Company that has assumed Company’s obligation under this
Agreement) terminates Executive’s employment without Cause or Executive resigns for Good Reason within twelve (12) months
following a Change of Control, Executive will be entitled to (A) the benefits set forth in paragraph (a)(i) and (a)(ii) of this
Section, and (B) accelerated vesting of one hundred percent (100%) of any then unvested stock options and restricted stock units
as may have been granted to Executive by Company.

 

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(b)
Release. The Company’s obligation to make such payments under paragraphs (a)(ii) and (a)(iii) of this Section and provide
any other such benefits contemplated herein shall be contingent upon:

 

(i)
Executive’s execution of a release in a form reasonably acceptable to the Company (the “Release”), which Release
must be signed and any applicable revocation period with respect thereto must have expired by the 30th day following
Executive’s termination of employment. The Release will not waive any of Executive’s rights, or obligations of the
Company or its successor in interest and the Related Companies, regarding: (1) any right to indemnification and/or contribution,
advancement or payment of related expenses Executive may have pursuant to the Company’s Bylaws, Certificate of Incorporation,
under any written indemnification or other agreement between the parties, and/or under applicable law; (2) any rights that Executive
may have to insurance coverage under any directors and officers liability insurance, other insurance policies of the Company,
COBRA or any similar state law; (3) any claims for worker’s compensation, state disability or unemployment insurance benefits,
or any other claims that cannot be released as a matter of applicable law; (4) rights to any vested benefits under any stock,
compensation or other employee benefit plan of the Company; (5) any rights Executive may have as an existing shareholder of the
Company; and (6) any claims arising after the effective date of the Release. Nothing in the Release or any other agreement between
Executive and the Company will prohibit or prevent Executive from providing truthful testimony or otherwise responding accurately
and fully to any question, inquiry or request for information or documents when required by legal process, subpoena, notice, court
order or law (including, without limitation, in any criminal, civil, or regulatory proceeding or investigation), or as necessary
in any action for enforcement or claimed breach of this Agreement or any other legal dispute with the Company. If the Release
has been signed and any applicable revocation period has expired prior to the 30th day following Executive’s
termination of employment, then the severance payments above may be made on such earlier date; provided, however, that if the
30th day following Executive’s termination of employment occurs in the calendar year following the year of Executive’s
termination date, then the payments shall not be made earlier than January 1 of such subsequent calendar year; and

 

(ii)
Executive’s tendering a written resignation as a director, if serving as a director of the Company or any Related Company,
as provided in Section 7.

 

(c)
Section 280G of the Code.

 

(i)
Notwithstanding anything in this Agreement to the contrary, if any payment, distribution, or other benefit provided by the Company
to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement
or otherwise (collectively, the “Payments”), (x) constitute a “parachute payment” within the meaning of
Section 280G of the Code, and (y) but for this Section 5(c) would be subject to the excise tax imposed by Section 4999 of the
Code or any similar or successor provision thereto (the “Excise Tax”), then the Payments shall be either: (A) delivered
in full pursuant to the terms of this Agreement, or (B) delivered to such lesser extent as would result in no portion of the payment
being subject to the Excise Tax, as determined in accordance with Section 5(b).

 

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(ii)
The determination of whether Section 5(c)(i)(A) or Section 5(c)(i)(B) shall be given effect shall be made by the Company on the
basis of which of such clauses results in the receipt by Executive of the greater Net After-Tax Receipt (as defined herein) of
the aggregate Payments. The term “Net After-Tax Receipt” shall mean the present value (as determined in accordance
with Section 280G of the Code) of the payments net of all applicable federal, state and local income, employment, and other applicable
taxes and the Excise Tax.

 

(iii)
If Section 5(c)(i)(B) is given effect, the reduction shall be accomplished in accordance with Section 409A of the Code and the
following: first by reducing, on a pro rata basis, cash Payments that are exempt from Section 409A of the Code; second by reducing,
on a pro rata basis, other cash Payments; and third by forfeiting any equity-based awards that vest and become payable, starting
with the most recent equity-based awards that vest, to the extent necessary to accomplish such reduction.

 

(iv)
Unless the Company and Executive otherwise agree in writing, any determination required under this Section 5(c) shall be made
by the Company’s independent accountants or compensation consultants (the “Third Party”), and all such determinations
shall be conclusive, final and binding on the parties hereto. The Company and Executive shall furnish to the Third Party such
information and documents as the Third Party may reasonably request in order to make a determination under this Section 5(c).
The Company shall bear all fees and costs of the Third Party with respect to all determinations under or contemplated by this
Section 5(c).

 

(d)
Definitions. For purposes of this Section, the following definitions shall apply:

 

(i)
“Affiliated Group” means (A) a Person and one or more other Persons in control of, controlled by, or under common
control with such Person; and (B) two or more Persons who, by written agreement among them, act in conceit to acquire Voting Securities
entitling them to elect a majority of the directors of Company.

 

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(ii)
“Cause” shall mean a termination of Executive’s employment because Executive (a) has refused to perform the
explicitly stated or reasonably assigned lawful and material duties required by Executive’s position (other than by reason
of a disability or analogous condition); (b) has committed or engaged in a material act of theft, embezzlement, dishonesty or
fraud, a breach of confidentiality, an unauthorized disclosure or use of inside information, customer lists, trade secrets or
other confidential information; (c) has breached a material fiduciary duty, or willfully and materially violated any other duty,
law, rule, or regulation relating to the performance of Executive’s duties to the Company or material policy of the Company
or its successor; (d) has been convicted of, or pled guilty or nolo contendere to, misdemeanor involving moral turpitude or a
felony; (e) has willfully and materially breached any of the provisions of any agreement with the Company or its successor which
causes material injury to the Company; (f) has willfully engaged in unfair competition with, or otherwise acted intentionally
in a manner materially injurious to the reputation, business or assets of, the Company or its successor; or (g) has improperly
induced a vendor or customer to break or terminate any material contract with the Company or its successor or induced a principal
for whom the Company or its successor acts as agent to terminate such agency relationship.” Cause” shall only exist
if the Company first provides Executive with written notice of any claimed ground for Cause and an opportunity to cure such ground,
if curable, for thirty (30) days. For purposes of this Agreement, no act or failure to act on Executive’s part will be considered
“willful” unless it is done, or omitted to be done, by Executive intentionally, not in good faith and without reasonable
belief that the action or omission was in the best interest of the Company.

 

(iii)
“Change of Control” means (A) the acquisition of Voting Securities of Company by a Person or an Affiliated Group entitling
the holder thereof to elect a majority of the directors of Company; provided, that an increase in the amount of Voting Securities
held by a Person or Affiliated Group who on the date of this Agreement beneficially owned (as defined in Section 13(d) of the
Securities Exchange Act of 1934, as amended, and the regulations thereunder) more than 10% of the Voting Securities shall not
constitute a Change of Control; and provided, further, that an acquisition of Voting Securities by one or more Persons acting
as an underwriter in connection with a sale or distribution of such Voting Securities shall not constitute a Change of Control
under this clause (A); (B) the sale of all or substantially all of the assets of Company; or (C) a merger or consolidation of
Company with or into another corporation or entity in which the stockholders of Company immediately before such merger or consolidation
do not own, in the aggregate, Voting Securities of the surviving corporation or entity (or the ultimate parent of the surviving
corporation or entity) entitling them, in the aggregate (and without regard to whether they constitute an Affiliated Group) to
elect a majority of the directors or persons holding similar powers of the surviving corporation or entity (or the ultimate parent
of the surviving corporation or entity); provided, however, that in no event shall any transaction described in clauses (A), (B)
or (C) be a Change of Control if all of the Persons acquiring Voting Securities or assets of Company or merging or consolidating
with Company are one or more Related Companies.

 

(iv)
“Disability” shall mean Executive’s inability to perform the essential functions of Executive’s job responsibilities
for a period of one hundred eighty (180) days in the aggregate in any twelve (12) month period.

 

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(v)
“Good Reason” shall mean the occurrence of any of the following events or circumstances without Executive’s
written consent: (i) a material diminution in Executive’s base compensation; (ii) a material diminution in Executive’s
authority, duties or responsibility; (iii) a material change in the principal geographic location at which Executive must perform
services; (iv) any requirement that Executive engage in any illegal conduct; or (v) a material breach by the Company of this Agreement
or any other material written agreement between Executive and the Company

 

(vi)
“Person” means any natural person or any corporation, partnership, limited liability company, trust, unincorporated
business association, or other entity.

 

(vii)
“Voting Securities” means shares of capital stock or other equity securities entitling the holder thereof to regularly
vote for the election of directors (or for person performing a similar function if the issuer is not a corporation), but does
not include the power to vote upon the happening of some condition or event which has not yet occurred.

 

6.
Turnover of Property and Documents on Termination. Executive agrees that on or before termination of Executive’s employment,
Executive will return to Company and all Related Companies all equipment and other property belonging to Company and the Related
Companies, and all originals and copies of confidential information (in any and all media and formats, and including any document
or other item containing confidential information) in Executive’s possession or control, and all of the following (in any
and all media and formats, and whether or not constituting or containing confidential information) in Executive’s possession
or control: (a) lists and sources of customers; (b) proposals or drafts of proposals for any research grant, research or development
project or program, marketing plan, licensing arrangement, or other arrangement with any third party; (c) reports, notations of
the Executive, laboratory notes, specifications, and drawings pertaining to the research, development, products, patents, and
technology of Company and any Related Companies; (d) any and all intellectual property developed by Executive during the course
of employment; and (e) the manual and memoranda related to the Policies. To the extent there is a conflict between this Section
6 and the Confidentiality and IP Agreement executed by the Executive, the Confidentiality and IP Agreement provision controls.

 

7.
Resignation as a Director on Termination of Employment. If Executive’s employment by Company is terminated for any reason
or for no reason, whether by way of resignation, Disability, or termination by Company with or without Cause, and if Executive
is then a member of the Board of Directors of Company or any Related Company, Executive shall within two business days after such
termination of employment resign from the Board of Directors of Company and from the board of directors of each and every Related
Company, by delivering to Company (and each Related Company, as applicable) a letter or other written communication addressed
to the Board of Directors of Company (and each Related Company, as applicable) stating that Executive is resigning from the Board
of Directors of Company (and each Related Company, as applicable) effective immediately. A business day shall be any day other
than a Saturday, Sunday, or federal holiday on which federal offices are closed.

 

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8.
Arbitration. Except for injunctive proceedings against unauthorized disclosure of confidential information, any and all claims
or controversies between Company or any Related Company and Executive, including but not limited to (a) those involving the construction
or application of any of the terms, provisions, or conditions of this Agreement or the Policies; (b) all contract or tort claims
of any kind; and ( c) any claim based on any federal, state, or local law, statute, regulation, or ordinance, including claims
for unlawful discrimination or harassment, shall be settled by arbitration in accordance with either (i) the then current Employment
Dispute Resolution Rules of the American Arbitration Association, or (ii) the then current Employment Arbitration Rules and Procedures
of the Judicial Arbitration and Mediation Service (JAMS) if the Company or Related Company and Executive agree to have the arbitration
proceeding conducted by JAMS. Judgment on the award rendered by the arbitrator(s) may be entered by any court having jurisdiction
over Company and Executive. The location of the arbitration shall be San Francisco, California. Unless Company or a Related Company
and Executive mutually agree otherwise, the arbitrator shall be a retired judge selected from a panel provided by the American
Arbitration Association, or by JAMS if the arbitration is conducted by JAMS. Company, or a Related Company, if the Related Company
is a party to the arbitration proceeding, shall pay the arbitrator’s fees and costs. Executive shall pay for Executive’s
own costs and attorneys’ fees, if any. Company and any Related Company that is a party to an arbitration proceeding shall
pay for its own costs and attorneys’ fees, if any. However, if any party prevails on a statutory claim which affords the
prevailing party attorneys’ fees, the arbitrator may award reasonable attorneys’ fees and costs to the prevailing
party.

 

EXECUTIVE
UNDERSTANDS AND AGREES THAT THIS AGREEMENT TO ARBITRATE CONSTITUTES A WAIVER OF EXECUTIVE’S RIGHT TO A TRIAL BY JURY OF
ANY MATTERS COVERED BY THIS AGREEMENT TO ARBITRATE.

 

9.
Severability. In the event that any of the provisions of this Agreement or the Policies shall be held to be invalid or unenforceable
in whole or in part, those provisions to the extent enforceable and all other provisions shall nevertheless continue to be valid
and enforceable as though the invalid or unenforceable parts had not been included in this Agreement or the Policies. In the event
that any provision relating to a time period of restriction shall be declared by a court of competent jurisdiction to exceed the
maximum time period such court deems reasonable and enforceable, then the time period of restriction deemed reasonable and enforceable
by the court shall become and shall thereafter be the maximum time period.

 

10.
Agreement Read and Understood. Executive acknowledges that Executive has carefully read the terms of this Agreement, that
Executive has had an opportunity to consult with an attorney or other representative of Executive’s own choosing regarding
this Agreement, that Executive understands the terms of this Agreement and that Executive is entering this Agreement of Executive’s
own free will.

 

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11.
Complete Agreement, Modification. This Agreement is the complete agreement between Executive and Company on the subjects contained
in this Agreement. This Agreement supersedes and replaces all previous correspondence, promises, representations, and agreements,
if any, either written or oral with respect to Executive’s employment by Company or any Related Company and any matter covered
by this Agreement. No provision of this Agreement may be modified, amended, or waived except by a written document signed both
by Company and Executive.

 

12.
Governing Law. This Agreement shall be construed and enforced according to the laws of the State of California.

 

13.
Assignability. This Agreement, and the rights and obligations of Executive and Company under this Agreement, may not be assigned
by Executive. Company may assign any of its rights and obligations under this Agreement to any successor or surviving corporation,
limited liability company, or other entity resulting from a merger, consolidation, sale of assets, sale of stock, sale of membership
interests, or other reorganization, upon condition that the assignee shall assume, either expressly or by operation of law, all
of Company’s obligations under this Agreement.

 

14.
Survival. This Section 14 and the covenants and agreements contained in Sections 4, 6, and 8 of this Agreement shall survive
termination of this Agreement and Executive’s employment.

 

15.
Notices. Any notices or other communication required or permitted to be given under this Agreement shall be in writing and
shall be mailed by certified mail, return receipt requested, or sent by next business day air courier service, or personally delivered
to the party to whom it is to be given at the address of such party set forth on the signature page of this Agreement (or to such
other address as the party shall have furnished in writing in accordance with the provisions of this Section 15).

 

[Signatures
to the Employment Agreement Are Found on the Following Page]

 

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IN
WITNESS WHEREOF, the parties hereto have executed this Amendment on the day and year first above written.

 

EXECUTIVE:

 

	 /s/ Michael
    David West 	 
	Michael
    David West	 

 

COMPANY:

 

AGEX
THERAPEUTICS, INC.

 

	By:
    	  /s/
    Russell Skibsted 	 
	 	Russell
    Skibsted	 
	 	Chief
    Financial Officer	 

 

[Signature
Page to the Employment Agreement]

 

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Exhibit
A

 

EMPLOYEE
CONFIDENTIAL INFORMATION AND INVENTIONS ASSIGNMENT AGREEMENT

 

In
consideration of my employment or continued employment by AgeX Therapeutics, Inc.,
its subsidiaries, parents, affiliates, successors and assigns (together “Company”), and the compensation
paid to me now and during my employment with Company, I, Michael David West, hereby enter into this Executive Confidential Information
and Invention Assignment Agreement (the “Agreement”) and agree as follows:

 

1.
Confidential
Information Protections.

 

1.1
Recognition of Company’s Rights; Nondisclosure. I understand and acknowledge that my employment by Company creates a
relationship of confidence and trust with respect to Company’s Confidential Information (as defined below) and that Company
has a protectable interest therein. At all times during and after my employment, I will hold in confidence and will not disclose,
use, lecture upon, or publish any of Company’s Confidential Information, except as such disclosure, use or publication may
be required in connection with my work for Company, or unless an officer of Company expressly authorizes such disclosure. I will
obtain Company’s written approval before publishing or submitting for publication any material (written, oral, or otherwise)
that discloses and/or incorporates any Confidential Information. I hereby assign to Company any rights I may have or acquire in
such Confidential Information and recognize that all Confidential Information shall be the sole and exclusive property of Company
and its assigns. I will take all reasonable precautions to prevent the inadvertent accidental disclosure of Confidential Information.
Notwithstanding the foregoing, pursuant to 18 U.S.C. Section 1833(b), I shall not be held criminally or civilly liable under any
Federal or State trade secret law for the disclosure of a trade secret that: (1) is made in confidence to a Federal, State, or
local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating
a suspected violation of law; or (2) is made in a complaint or other document filed in a lawsuit or other proceeding, if such
filing is made under seal.

 

1.2
Confidential Information. The term “Confidential Information” shall mean any and all confidential
knowledge, data or information of Company. By way of illustration but not limitation, “Confidential Information”
includes (a) trade secrets, inventions, mask works, ideas, processes, formulas, software in source or object code, data, programs,
other works of authorship, know-how, improvements, discoveries, developments, designs and techniques and any other proprietary
technology and all Intellectual Property Rights (as defined below) therein (collectively, “Inventions”);
(b) information regarding research, development, new products, marketing and selling, business plans, budgets and unpublished
financial statements, licenses, prices and costs, margins, discounts, credit terms, pricing and billing policies, quoting procedures,
methods of obtaining business, forecasts, future plans and potential strategies, financial projections and business strategies,
operational plans, financing and capital-raising plans, activities and agreements, internal services and operational manuals,
methods of conducting Company business, suppliers and supplier information, and purchasing; (c) information regarding customers
and potential customers of Company, including customer lists, names, representatives, their needs or desires with respect to the
types of products or services offered by Company, proposals, bids, contracts and their contents and parties, the type and quantity
of products and services provided or sought to be provided to customers and potential customers of Company and other non-public
information relating to customers and potential customers; (d) information regarding any of Company’s business partners
and their services, including names, representatives, proposals, bids, contracts and their contents and parties, the type and
quantity of products and services received by Company, and other non-public information relating to business partners; (e) information
regarding personnel, employee lists, compensation, and employee skills; and (f) any other non-public information which a competitor
of Company could use to the competitive disadvantage of Company. Notwithstanding the foregoing, it is understood that, at all
such times, I am free to use information which was known to me prior to my employment with Company or which is generally known
in the trade or industry through no breach of this Agreement or other act or omission by me, and I am free to discuss the terms
and conditions of my employment with others to the extent expressly permitted by Section 7 of the National Labor Relations Act.

 

1.3
Third Party Information. I understand, in addition, that Company has received and in the future will receive from third parties
their confidential and/or proprietary knowledge, data or information (“Third Party Information”) subject
to a duty on Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes.
During the term of my employment and thereafter, I will hold Third Party Information in confidence and will not disclose to anyone
(other than Company personnel who need to know such information in connection with their work for Company) or use, except in connection
with my work for Company, Third Party Information or unless expressly authorized by an officer of Company in writing.

 

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Michael David West
Page 1

    	 

    

 

1.4
Term of Nondisclosure Restrictions. I understand that Confidential Information and Third Party Information is never to be
used or disclosed by me, as provided in this Section 1. If a temporal limitation on my obligation not to use or disclose such
information is required under applicable law, and the Agreement or its restriction(s) cannot otherwise be enforced, I agree and
Company agrees that the two-year period after the date my employment ends will be the temporal limitation relevant to the contested
restriction; provided, however, that this sentence will not apply to trade secrets protected without temporal limitation
under applicable law.

 

1.5
No Improper Use of Information of Prior Employers and Others. During my employment by Company, I will not improperly use or
disclose confidential information or trade secrets, if any, of any former employer or any other person to whom I have an obligation
of confidentiality, and I will not bring onto the premises of Company any unpublished documents or any property belonging to any
former employer or any other person to whom I have an obligation of confidentiality unless consented to in writing by that former
employer or person.

 

2.
Assignments
of Inventions.

 

2.1
Definitions. As used in this Agreement, the term “Intellectual Property Rights” means all trade
secrets, Copyrights, trademarks, mask work rights, patents and other intellectual property rights recognized by the laws of any
jurisdiction or country; the term “Copyright” means the exclusive legal right to reproduce, perform,
display, distribute and make derivative works of a work of authorship (as a literary, musical, or artistic work) recognized by
the laws of any jurisdiction or country; and the term “Moral Rights” means all paternity, integrity,
disclosure, withdrawal, special and any other similar rights recognized by the laws of any jurisdiction or country.

 

2.2
Excluded Inventions and Other Inventions. Attached hereto as Exhibit A is a list describing all existing Inventions,
if any, (a) that are owned by me or in which I have an interest and were made or acquired by me prior to my date of first employment
by Company, (b) that may relate to Company’s business or actual or demonstrably anticipated research or development, and
(c) that are not to be assigned to Company (“Excluded Inventions”). If no such list is attached, I represent
and agree that it is because I have no Excluded Inventions. For purposes of this Agreement, “Other Inventions”
means Inventions in which I have or may have an interest, as of the commencement of my employment or thereafter, other than Company
Inventions (as defined below) and Excluded Inventions. I acknowledge and agree that if I use any Excluded Inventions or any Other
Inventions in the scope of my employment, or if I include any Excluded Inventions or Other Inventions in any product or service
of Company, or if my rights in any Excluded Inventions or Other Inventions may block or interfere with, or may otherwise be required
for, the exercise by Company of any rights assigned to Company under this Agreement, I will immediately so notify Company in writing.
Unless Company and I agree otherwise in writing as to particular Excluded Inventions or Other Inventions, I hereby grant to Company,
in such circumstances (whether or not I give Company notice as required above), a non-exclusive, perpetual, transferable, fully-paid
and royalty-free, irrevocable and worldwide license, with rights to sublicense through multiple levels of sublicensees, to reproduce,
make derivative works of, distribute, publicly perform, and publicly display in any form or medium, whether now known or later
developed, make, have made, use, sell, import, offer for sale, and exercise any and all present or future rights in, such Excluded
Inventions and Other Inventions. To the extent that any third parties have rights in any such Other Inventions, I hereby represent
and warrant that such third party or parties have validly and irrevocably granted to me the right to grant the license stated
above.

 

2.3
Assignment of Company Inventions. Inventions assigned to Company or to a third party as directed by Company pursuant to Section
2.6 are referred to in this Agreement as “Company Inventions.” Subject to Section 2.4 and except for
Excluded Inventions set forth in Exhibit A and Other Inventions, I hereby assign to Company all my right, title, and interest
in and to any and all Inventions (and all Intellectual Property Rights with respect thereto) made, conceived, reduced to practice,
or learned by me, either alone or with others, during the period of my employment by Company. To the extent required by applicable
Copyright laws, I agree to assign in the future (when any copyrightable Inventions are first fixed in a tangible medium of expression)
my Copyright rights in and to such Inventions. Any assignment of Company Inventions (and all Intellectual Property Rights with
respect thereto) hereunder includes an assignment of all Moral Rights. To the extent such Moral Rights cannot be assigned to Company
and to the extent the following is allowed by the laws in any country where Moral Rights exist, I hereby unconditionally and irrevocably
waive the enforcement of such Moral Rights, and all claims and causes of action of any kind against Company or related to Company’s
customers, with respect to such rights. I further acknowledge and agree that neither my successors-in-interest nor legal heirs
retain any Moral Rights in any Company Inventions (and any Intellectual Property Rights with respect thereto).

 

2.4
Unassigned or Nonassignable Inventions. I recognize that this Agreement will not be deemed to require assignment of any Invention
that is covered under California Labor Code section 2870(a) (the “Specific Inventions Law”) except for
those Inventions that are covered by a contract between Company and the United States or any of its agencies that require full
title to such patent or Invention to be in the United States.

 

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Michael David West
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2.5
Obligation to Keep Company Informed. During the period of my employment, I will promptly and fully disclose to Company in
writing all Inventions authored, conceived, or reduced to practice by me, either alone or jointly with others. At the time of
each such disclosure, I will advise Company in writing of any Inventions that I believe fully qualify for protection under the
provisions of the Specific Inventions Law; and I will at that time provide to Company in writing all evidence necessary to substantiate
that belief. Company will keep in confidence and will not use for any purpose or disclose to third parties without my consent
any confidential information disclosed in writing to Company pursuant to this Agreement relating to Inventions that qualify fully
for protection under the Specific Inventions Law. I will preserve the confidentiality of any Invention that does not fully qualify
for protection under the Specific Inventions Law.

 

2.6
Government or Third Party. I agree that, as directed by Company, I will assign to a third party, including without limitation
the United States, all my right, title, and interest in and to any particular Company Invention.

 

2.7
Ownership of Work Product. I agree that Company will exclusively own all work product that is made by me (solely or jointly
with others) within the scope of my employment, and I hereby irrevocably and unconditionally assign to Company all right, title
and interest worldwide in and to such work product. I acknowledge that all original works of authorship which are made by me (solely
or jointly with others) within the scope of my employment and which are protectable by Copyright are “works made for hire,”
pursuant to United States Copyright Act (17 U.S.C., Section 101). I understand and agree that I have no right to publish on, submit
for publishing, or use for any publication any work product protected by this Section, except as necessary to perform services
for Company.

 

2.8
Enforcement of Intellectual Property Rights and Assistance. I will assist Company in every proper way to obtain, and from
time to time enforce, United States and foreign Intellectual Property Rights and Moral Rights relating to Company Inventions in
any and all countries. To that end I will execute, verify and deliver such documents and perform such other acts (including appearances
as a witness) as Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing
such Intellectual Property Rights and the assignment thereof. In addition, I will execute, verify and deliver assignments of such
Intellectual Property Rights to Company or its designee, including the United States or any third party designated by Company.
My obligation to assist Company with respect to Intellectual Property Rights relating to such Company Inventions in any and all
countries will continue beyond the termination of my employment, but Company will compensate me at a reasonable rate after my
termination for the time actually spent by me at Company’s request on such assistance. In the event Company is unable for
any reason, after reasonable effort, to secure my signature on any document needed in connection with the actions specified in
the preceding paragraph, I hereby irrevocably designate and appoint Company and its duly authorized officers and agents as my
agent and attorney in fact, which appointment is coupled with an interest, to act for and on my behalf to execute, verify and
file any such documents and to do all other lawfully permitted acts to further the purposes of the preceding paragraph with the
same legal force and effect as if executed by me. I hereby waive and quitclaim to Company any and all claims, of any nature whatsoever,
which I now or may hereafter have for infringement of any Intellectual Property Rights assigned under this Agreement to Company.

 

2.9
Incorporation of Software Code. I agree that I will not incorporate into any Company software or otherwise deliver to Company
any software code licensed under the GNU General Public License or Lesser General Public License or any other license that, by
its terms, requires or conditions the use or distribution of such code on the disclosure, licensing, or distribution of any source
code owned or licensed by Company except in strict compliance with Company’s policies regarding the use of such software.

 

3.
Records.
I agree to keep and maintain adequate and current
records (in the form of notes, sketches, drawings and in any other form that is required by Company) of all Confidential Information
developed by me and all Company Inventions made by me during the period of my employment at Company, which records will be available
to and remain the sole property of Company at all times.

 

4.
Duty of Loyalty
During Employment. I agree that during the
period of my employment by Company, I will not, without Company’s express written consent, directly or indirectly engage
in any employment or business activity which is directly or indirectly competitive with, or would otherwise conflict with, my
employment by Company.

 

5.
No Solicitation
of Executives, Consultants or Contractors.
I agree that during the period of my employment and for the one year period after the date my employment ends for any reason,
including but not limited to voluntary termination by me or involuntary termination by Company, I will not, as an officer, director,
employee, consultant, owner, partner, or in any other capacity, either directly or through others, except on behalf of Company,
solicit, induce, encourage, or participate in soliciting, inducing or encouraging any person known to me to be an employee, consultant,
or independent contractor of Company to terminate his or her relationship with Company, even if I did not initiate the discussion
or seek out the contact.

 

6.
Reasonableness
of Restrictions.

 

6.1
I agree that I have read this entire Agreement and understand it. I agree that this Agreement does not prevent me from earning
a living or pursuing my career. I agree that the restrictions contained in this Agreement are reasonable, proper, and necessitated
by Company’s legitimate business interests. I represent and agree that I am entering into this Agreement freely and with
knowledge of its contents with the intent to be bound by the Agreement and the restrictions contained in it.

 

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Michael David West
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6.2
In the event that a court finds this Agreement, or any of its restrictions, to be ambiguous, unenforceable, or invalid, I
and Company agree that the court will read the Agreement as a whole and interpret the restriction(s) at issue to be enforceable
and valid to the maximum extent allowed by law.

 

6.3
If the court declines to enforce this Agreement in the manner provided in subsection 6.2, Company and I agree that this Agreement
will be automatically modified to provide Company with the maximum protection of its business interests allowed by law and I agree
to be bound by this Agreement as modified.

 

7.
No Conflicting
Agreement or Obligation. I
represent that my performance of all the terms of this Agreement and as an employee of Company does not and will not breach any
agreement to keep in confidence information acquired by me in confidence or in trust prior to my employment by Company. I have
not entered into, and I agree I will not enter into, any agreement either written or oral in conflict with this Agreement.

 

8.
Return of Company
Property. When
I leave the employ of Company, I will deliver to Company any and all drawings, notes, memoranda, specifications, devices, formulas
and documents, together with all copies thereof, and any other material containing or disclosing any Company Inventions, Third
Party Information or Confidential Information of Company. I agree that I will not copy, delete, or alter any information contained
upon my Company computer or Company equipment before I return it to Company. In addition, if I have used any personal computer,
server, or e-mail system to receive, store, review, prepare or transmit any Company information, including but not limited to,
Confidential Information, I agree to provide Company with a computer-useable copy of all such Confidential Information and then
permanently delete and expunge such Confidential Information from those systems; and I agree to provide Company access to my system
as reasonably requested to verify that the necessary copying and/or deletion is completed. I further agree that any property situated
on Company’s premises and owned by Company, including disks and other storage media, filing cabinets or other work areas,
is subject to inspection by Company’s personnel at any time with or without notice. Prior to leaving, I will cooperate with
Company in attending an exit interview and completing and signing Company’s termination statement if required to do so by
Company.

 

9.
Legal and Equitable
Remedies.

 

9.1
I agree that it may be impossible to assess the damages caused by my violation of this Agreement or any of its terms. I agree
that any threatened or actual violation of this Agreement or any of its terms will constitute immediate and irreparable injury
to Company, and Company will have the right to enforce this Agreement and any of its provisions by injunction, specific performance
or other equitable relief, without bond and without prejudice to any other rights and remedies that Company may have for a breach
or threatened breach of this Agreement.

 

9.2
In the event Company enforces this Agreement through a court order, I agree that the restrictions of Section 5 will remain
in effect for a period of 12 months from the effective date of the Order enforcing the Agreement.

 

10.
Notices.
Any notices required or permitted under this
Agreement will be given to Company at its headquarters location at the time notice is given, labeled “Attention Chief Executive
Officer,” and to me at my address as listed on Company payroll, or at such other address as Company or I may designate by
written notice to the other. Notice will be effective upon receipt or refusal of delivery. If delivered by certified or registered
mail, notice will be considered to have been given five business days after it was mailed, as evidenced by the postmark. If delivered
by courier or express mail service, notice will be considered to have been given on the delivery date reflected by the courier
or express mail service receipt.

 

11.
Publication
of This Agreement to Subsequent Employer or Business Associates of Executive.

 

11.1
If I am offered employment or the opportunity to enter into any business venture as owner, partner, consultant or other capacity
while the restrictions described in Section 5 of this Agreement are in effect I agree to inform my potential employer, partner,
co-owner and/or others involved in managing the business with which I have an opportunity to be associated of my obligations under
this Agreement and also agree to provide such person or persons with a copy of this Agreement.

 

11.2
I agree to inform Company of all employment and business ventures which I enter into while the restrictions described in Section
5 of this Agreement are in effect and I also authorize Company to provide copies of this Agreement to my employer, partner, co-owner
and/or others involved in managing the business with which I am employed or associated and to make such persons aware of my obligations
under this Agreement.

 

12.
General Provisions.

 

12.1
Governing Law; Consent to Personal Jurisdiction. This Agreement will be governed by and construed according to the laws of
the State of California as such laws are applied to agreements entered into and to be performed entirely within California between
residents of California. I hereby expressly consent to the personal jurisdiction and venue of the state and federal courts located
in California for any lawsuit filed there against me by Company arising from or related to this Agreement.

 

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Michael David West
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12.2
Severability. In case any one or more of the provisions, subsections, or sentences contained in this Agreement will, for any
reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not
affect the other provisions of this Agreement, and this Agreement will be construed as if such invalid, illegal or unenforceable
provision had never been contained in this Agreement. If moreover, any one or more of the provisions contained in this Agreement
will for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it will be construed
by limiting and reducing it, so as to be enforceable to the extent compatible with the applicable law as it will then appear.

 

12.3
Successors and Assigns. This Agreement is for my benefit and the benefit of Company, its successors, assigns, parent corporations,
Related Companies, affiliates, and purchasers, and will be binding upon my heirs, executors, administrators and other legal representatives.

 

12.4
Survival. This Agreement shall survive the termination of my employment, regardless of the reason, and the assignment of this
Agreement by Company to any successor in interest or other assignee.

 

12.5
Employment At-Will. I agree and understand that nothing in this Agreement will change my at-will employment status or confer
any right with respect to continuation of employment by Company, nor will it interfere in any way with my right or Company’s
right to terminate my employment at any time, with or without cause or advance notice.

 

12.6
Waiver. No waiver by Company of any breach of this Agreement will be a waiver of any preceding or succeeding breach. No waiver
by Company of any right under this Agreement will be construed as a waiver of any other right. Company will not be required to
give notice to enforce strict adherence to all terms of this Agreement.

 

12.7
Export. I agree not to export, reexport, or transfer, directly or indirectly, any U.S. technical data acquired from Company
or any products utilizing such data, in violation of the United States export laws or regulations.

 

12.8
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all
of which shall be taken together and deemed to be one instrument. This Agreement may also be executed and delivered by facsimile
signature, PDF or any electronic signature complying with the U.S. federal ESIGN Act of 2000 (e.g., www.docusign.com).

 

12.9
Advice of Counsel. I ACKNOWLEDGE THAT, IN EXECUTING THIS AGREEMENT, I HAVE HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT
LEGAL COUNSEL, AND I HAVE READ AND UNDERSTOOD ALL OF THE TERMS AND PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT WILL NOT BE CONSTRUED
AGAINST ANY PARTY BY REASON OF THE DRAFTING OR PREPARATION OF THIS AGREEMENT.

 

    	Executive Confidential Information and Inventions Assignment Agreement
Michael David West
Page 5

    	 

    

 

This
Agreement shall be effective as of October 18, 2018 .

 

	 	EMPLOYEE:
	 	 
	 	I
    have read, understand, and Accept this agreement and have been given the opportunity to Review it with independent legal counsel.
	 	 
	 	 /s/ Michael
    David West 
	 	(Signature)
	 	 
	 	Michael
    David West
	 	Name
	 	 
	 	  October
    18, 2018 
	 	Date
	 	 
	 	Address:
	 	 

 

	 	COMPANY:
	 	 	 
	 	Accepted
    and agreed
	 	 	 
	 	AgeX
    Therapeutics, Inc.
	 	 	                         
	 	By:	 /s/
    Russell Skibsted 
	 	Name:	 Russell
    Skibsted 
	 	Title:	 Chief Financial Officer 

 

	 	Address:	1010
    Atlantic Avenue, Suite 102
	 	 	Alameda,
    CA 94501

 

    	Executive Confidential Information and Inventions Assignment Agreement
Michael David West
Page 6

    	 

    

 

Exhibit
A

to
the

Executive
Confidential Information And Inventions Assignment Agreement

 

Excluded
Inventions

 

	TO:	AgeX
    Therapeutics, Inc.	 
	FROM:	 	 
	DATE:	 	 

 

1.
Excluded Inventions Disclosure. Except as listed in Section 2 below, the following is a complete list of all Excluded Inventions:

 

	 	[  ]	No
    Excluded Inventions.
	 	 	 
	 	[  ]	See
    below:

 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

 

	 	[  ]	Additional
    sheets attached.

 

2.
Due to a prior confidentiality agreement, I cannot complete the disclosure under Section 1 above with respect to the Excluded
Inventions generally listed below, the intellectual property rights and duty of confidentiality with respect to which I owe to
the following party(ies):

 

	 	Excluded
    Invention	 	Party(ies)	 	Relationship
	1.
    	 	 	 	 	 
	2.
    	 	 	 	 	 
	3.
    	 	 	 	 	 

 

	 	[  ]	Additional
    sheets attached.

 

    	 	 	 

    	 

    

 

3.
Limited Exclusion Notification.

 

This
is to notify you in accordance with Section 2872 of the California Labor Code that the foregoing Agreement between you and Company
does not require you to assign or offer to assign to Company any Invention that you develop entirely on your own time without
using Company’s equipment, supplies, facilities or trade secret information, except for those Inventions that either:

 

a.
Relate at the time of conception or reduction to practice to Company’s business, or actual or demonstrably anticipated research
or development; or

 

b.
Result from any work performed by you for Company.

 

To
the extent a provision in the foregoing Agreement purports to require you to assign an Invention otherwise excluded from the preceding
paragraph, the provision is against the public policy of this state and is unenforceable.

 

This
limited exclusion does not apply to any patent or Invention covered by a contract between Company and the United States or any
of its agencies requiring full title to such patent or Invention to be in the United States.Exhibit 4.3

 

COMMON STOCK PURCHASE WARRANT

 

CREATIVE REALITIES, INC.

 

Warrant No.: _____________

 

	Number of Warrant Shares: _____________	Date of Issuance: [●], 2018 (“Issuance Date”)

 

This COMMON STOCK
PURCHASE WARRANT (the “Warrant”) certifies that, for value received, ____________________ or [his][her][its]
assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise
and the conditions hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”)
and on or prior to the Expiration Date (as defined in Section 2(b) below) but not thereafter, to subscribe for and purchase
from Creative Realities, Inc., a Minnesota corporation (the “Company”), up to ___________ shares (as subject
to adjustment hereunder, the “Warrant Shares”) of Common Stock.  The purchase price of one share of
Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(a).

 

Section 1. Definitions.
In addition to the terms defined elsewhere in this Warrant, the following terms have the meanings indicated in this Section 1:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to
close.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common Stock”
means the common stock, par value $0.01 per share of the Company.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Trading Day”
means a day on which the principal Trading Market is open for trading.

 

“Transfer
Agent” means American Computershare Trust Company, N.A., the current transfer agent of the Company, with a mailing address
of 462 South 4th Street, Suite 1600, Louisville, KY 40202, and any successor transfer agent of the Company.

  

Section 2. Terms
and Exercise of this Warrant.

 

(a) Exercise Price
and Duration.

 

(i) Exercise Price.
This Warrant shall entitle the Holder thereof, subject to the provisions herein, to purchase from the Company the number of shares
of Common Stock stated therein, at the price of $[●] per whole share, subject to the subsequent adjustments provided
in Section 3 hereof. The term “Exercise Price” as used in this Warrant refers to the price per share
at which Common Stock may be purchased at the time this Warrant is exercised.

 

     

     

    

 

(ii) Duration of
Warrant. This Warrant may be exercised only during the period (the “Exercise Period”) commencing on the
Initial Exercise Date and terminating at 5:00 P.M., New York City time (the “close of business”) on ________, 202[●]
[THE DATE [●] MONTHS FOLLOWING THE INITIAL EXERCISE DATE] (the “Expiration Date”). If this
Warrant is not exercised on or before the Expiration Date it shall become void, and all rights hereunder shall cease at the close
of business on the Expiration Date.

 

(b) Exercise of Warrant.

 

(i) Exercise and
Payment. Subject to the provisions of this Warrant, the Holder may exercise this Warrant by delivering, not later than 5:00
P.M., New York City time, on any Business Day during the Exercise Period (the “Exercise Date”) to the Company
at its office designated for such purpose (or such other office or agency of the Company as it may designate by notice in writing
to the Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile copy (or.pdf copy
via e-mail attachment) of the Notice of Exercise in the form annexed hereto as Exhibit A (the “Notice of Exercise”).
Within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as
defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the unpaid portion
of the aggregate Exercise Price for the Warrant Shares specified in the applicable Notice of Exercise by wire transfer or cashier’s
check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified
in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or
other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary,
the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the
Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant
to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to
the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available
hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to
the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant
Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1)
Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that,
by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number
of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

If any of (A) the Warrant,
(b) the executed Notice of Exercise or (C) the Exercise Price therefor, and all applicable taxes and charges due in connection
therewith, is received by the Company after 5:00 P.M., New York City time, on any date, or on a date that is not a Business Day,
the Warrant with respect thereto will be deemed to have been received and exercised on the Business Day next succeeding such date.
For the avoidance of doubt, the “Exercise Date” will be the date the materials in the foregoing sentence are received
by the Company (if by 5:00 P.M., New York City time), or the following Business Day (if after 5:00 P.M., New York City time),
regardless of any earlier date written on the materials. If the Warrant is received or deemed to be received after the Expiration
Date, the exercise thereof will be null and void and any funds delivered to the Company will be returned to the Holder, as the
case may be, as soon as practicable. In no event will interest accrue on any funds delivered to the Company in respect of an exercise
or attempted exercise of Warrants. The validity of any exercise of any Warrant will be determined by the Company in its sole discretion
and such determination will be final and binding upon the Holder. The Company shall not have any obligation to inform a Holder
of the invalidity of any exercise of Warrants.

 

(c) Cashless Exercise
Under Certain Circumstances.

 

(i) The Company shall
provide to the Holder of this Warrant prompt written notice at any time that the Company is unable to issue the Warrant Shares
via The Depository Trust Company (“DTC”) transfer or otherwise (without restrictive legend), because (A) the
Commission has issued a stop order with respect to any registration statement registering the Warrant Shares (the “Registration
Statement”), (B) the Commission otherwise has suspended or withdrawn the effectiveness of the Registration Statement,
either temporarily or permanently, (C) the Company has suspended or withdrawn the effectiveness of the Registration Statement,
either temporarily or permanently, or (D) otherwise (each a “Restrictive Legend Event”). To the extent that
a Restrictive Legend Event occurs after the Holder has exercised this Warrant in accordance with the terms of the Warrant but prior
to the delivery of the Warrant Shares, the Company shall, at the election of the Holder, which shall be given within five (5) days
of receipt of such notice of the Restrictive Legend Event, either (A) rescind the previously submitted Notice of Exercise and the
Company shall return all consideration paid by the Holder for such shares upon such rescission or (B) treat the attempted exercise
as a cashless exercise as described in the next paragraph and refund the cash portion of the exercise price to the Holder.

 

    	 	2	 

     

    

 

(ii) If a Restrictive
Legend Event has occurred and no exemption from the registration requirements is available, the Warrant shall only be exercisable
on a cashless basis. Notwithstanding anything herein to the contrary, the Company shall not be required to make any cash payments
or net cash settlement to the Holder in lieu of issuance of the Warrant Shares. Upon a “cashless exercise,” the Holder
shall be entitled to receive the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

	 	(A)	= the VWAP on the Business Day preceding the Exercise Date;

 

	 	(B)	= the Exercise Price of the Warrant; and

 

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

 

Upon receipt of a Notice
of Exercise for a cashless exercise, the Company will promptly confirm the number of Warrant Shares issuable in connection with
the cashless exercise. In addition, if Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree
that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the registered characteristics
of the Warrant being exercised.  The Company agrees not to take any position contrary to this Section 2(c).

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock
Exchange (each, a “Trading Market”), the daily volume weighted average price of the Common Stock for such date
(or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg
L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:00 p.m. (New York City time)), (b) the volume weighted average
price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, OTCQB or OTCQX (c) if the Common
Stock is not then listed or quoted for trading on the OTC Bulletin Board, OTCQB or OTCQX and if prices for the Common Stock are
then reported in the OTC Pink Market maintained by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its
functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases,
the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the holders
of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which
shall be paid by the Company.

  

(iii) 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.

 

(d) Mechanics of Exercise.

 

(i) Delivery of
Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer
Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with DTC through its
Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either
(A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares
by Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise by physical delivery of a certificate, registered
in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the
Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that
is the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period after
the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”). Upon delivery
of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant
Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided
that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of
(i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the
Notice of Exercise. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in
a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date
of delivery of the Notice of Exercise. Notwithstanding the foregoing, with respect to any Notice(s) of Exercise delivered by 12:00
p.m. (New York City time) on the Initial Exercise Date, the Company agrees to deliver the Warrant Shares subject to such notice(s)
by 4:00 p.m. (New York City time) on the Initial Exercise Date.

 

    	 	3	 

     

    

 

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

 

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

 

(iv) Valid Issuance.
All shares of Common Stock issued by the Company through the Transfer Agent upon the proper exercise of this Warrant in conformity
with this Warrant shall be validly issued, fully paid and non-assessable.

  

(v) No Fractional
Exercise. This Warrant may be exercised only in whole numbers of Warrant Shares. No fractional Warrant Shares are to be issued
upon the exercise of the Warrant, but rather the number of Warrant Shares to be issued shall be rounded up or down, as applicable,
to the nearest whole number. If fewer than all the Warrants evidenced by this Warrant are exercised, a notation shall be made to
the records maintained by the Company evidencing the balance of the Warrants remaining after such exercise.

 

(vi) No Transfer
Taxes. The Company shall not be required to pay any stamp or other tax or charge required to be paid in connection with any
transfer involved in the issue of the Warrant Shares upon the exercise of Warrants; and in the event that any such transfer is
involved, the Company shall not be required to issue or deliver any Warrant Shares until such tax or other charge shall have been
paid or it has been established to the Company’s satisfaction that no such tax or other charge is due.

 

(vii) Date of Issuance.
Each person in whose name any such shares of Common Stock is issued shall for all purposes be deemed to have become the Holder
of record of such shares on the date on which the Warrant was validly exercised and payment of the Exercise Price was made, irrespective
of the date of delivery of such Notice of Exercise, except that, if the date of such Notice of Exercise and payment is a date when
the stock transfer books of the Company are closed, such person shall be deemed to have become the Holder of such shares at the
close of business on the next succeeding date on which the stock transfer books are open.

 

Section 3. Adjustments.

 

(a) Adjustment upon
Subdivision or Combination of Common Stock. If the Company at any time after the Issuance Date subdivides (by any stock split,
stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding shares of Common Stock into
a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced
and the number of Warrant Shares will be proportionately increased. If the Company at any time after the Issuance Date combines
(by any stock split, stock dividend, recapitalization, reorganization, scheme, arrangement or otherwise) its outstanding shares
of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately
increased and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 3(a) shall
become effective at the close of business on the date the subdivision or combination becomes effective.

 

    	 	4	 

     

    

 

(b) Adjustment for
Other Distributions. In the event the Company shall fix a record date for the making of a dividend or distribution to all holders
of Common Stock of any evidences of indebtedness or assets or subscription rights or warrants (excluding those referred to in Section
3(a) or other dividends paid out of retained earnings), then in each such case the Holder will, upon the exercise of this Warrant,
be entitled to receive, in addition to the number of shares of Common Stock issuable thereupon, and without payment of any additional
consideration therefor, the amount of such dividend or distribution, as applicable, which 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 dividend or distribution. Such adjustment shall be made whenever any such distribution is made
and shall become effective immediately after the record date mentioned above.

 

(c) Reclassification,
Consolidation, Purchase, Combination, Sale or Conveyance. If, at any time while this Warrant is outstanding, (i) the Company,
directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another
person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition
of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer,
tender offer or exchange offer (whether by the Company or another person) is completed pursuant to which holders of Common Stock
are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders
of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects
any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which
the Common Stock is effectively converted into or exchanged for other securities, cash or property, (v) the Company, directly or
indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including,
without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another person whereby such other
person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other
person or other persons making or party to, or associated or affiliated with the other persons making or party to, such stock or
share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent
exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon
such exercise immediately prior to the occurrence of such Fundamental Transaction, the number of shares of Common Stock, if any,
of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration
(the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction. For purposes
of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration
based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction,
and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities,
cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any
successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”)
and for which shareholders received any equity securities of the Successor Entity, to assume in writing all of the obligations
of the Company under this Warrant Agreement in accordance with the provisions of this Section 4(c) pursuant to written agreements
and shall, upon the written request of the Holder of this Warrant, deliver to the Holder in exchange for this Warrant created by
this Warrant Agreement a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to the Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent
entity), if any, plus any Alternate Consideration, receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which the Warrant is exercisable immediately prior to such Fundamental Transaction, and with an exercise
price which applies the exercise price hereunder to such shares of capital stock, if any, plus any Alternate Consideration (but
taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of
such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting
the economic value of such Warrant immediately prior to the consummation of such Fundamental Transaction). Upon the occurrence
of any such Fundamental Transaction the Successor Entity shall succeed to, and be substituted for (so that from and after the date
of such Fundamental Transaction, the provisions of this Warrant Agreement and the Warrant referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant Agreement and the Warrant with the same effect as if such Successor Entity had been
named as the Company herein.

 

    	 	5	 

     

    

 

Any supplemented or amended
agreement entered into by the successor corporation or transferee shall provide for adjustments, which shall be as nearly equivalent
as may be practicable to the adjustments provided for in Section 3. The provisions of this Section 3(c) shall similarly
apply to successive reclassifications, changes, consolidations, mergers, sales and conveyances of the kind described above.

 

(d) Other Events.
If any event occurs of the type contemplated by the provisions of Section 3(a), 3(b) or 3(c) but not expressly
provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights
or other rights with equity features to all holders of Common Stock for no consideration), then the Company’s Board of Directors
will, at its discretion and in good faith, make an adjustment in the Exercise Price and the number of Warrant Shares or designate
such additional consideration to be deemed issuable upon exercise of this Warrant, so as to protect the rights of the Holder. 

 

(e) Notices of Changes
in Warrant. Upon every adjustment of the Warrant Price or the number of shares issuable upon exercise of this Warrant, the
Company shall give written notice thereof to the Holder, at the last address set forth for such holder in the Warrant Register,
of the record date or the effective date of the event. Failure to give such notice, or any defect therein, shall not affect the
legality or validity of such event.

 

(f) Notice to Allow
Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common
Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company
shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any
reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all
or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into
other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or
winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address
as it shall appear upon the Warrant Register of the Company, at least 10 calendar days prior to the applicable record or effective
date hereinafter specified, a notice stating (i) the date on which a record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record
to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (ii) the date on which such
reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date
as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common
Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share
exchange; provided that the failure to 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. To the extent that any notice provided hereunder constitutes,
or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously
file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this
Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except
as may otherwise be expressly set forth herein.

 

    	 	6	 

     

    

 

Section 4.  Transfer
of Warrant.

 

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

 

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

 

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

 

(d) Fractional Warrants.
The Company shall not be required to effect any registration of transfer or exchange that will result in the issuance of a Warrant
for a fraction of this Warrant.

 

Section 5. Limitations
on Exercise. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any
portion of this Warrant, to the extent that after giving effect to the issuance of shares of Common Stock after exercise as set
forth on the applicable Notice of Exercise, the Holder (together with such Holder’s Affiliates (as defined in Rule 405 under
the Securities Act of 1933), and any other persons acting as a group together with the Holder or any of the Holder’s Affiliates),
would beneficially own in excess of 4.99% of the Company’s Common Stock. For purposes of the foregoing sentence, the number
of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock
issuable upon exercise of the Warrant with respect to which such determination is being made, but shall exclude the number of shares
of Common Stock which would be issuable upon exercise of the remaining, non-exercised portion of any Warrant beneficially owned
by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 5, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder,
it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with
Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith.
To the extent that the limitation contained in this Section 5 applies, the determination of whether this Warrant is exercisable
(in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable
shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s
determination of whether such Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates)
and of which portion of this Warrant is exercisable, and the Company shall not have any obligation to verify or confirm the accuracy
of such determination and neither of them shall have any liability for any error made by the Holder. In addition, a determination
as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules
and regulations promulgated thereunder. For purposes of this Section 5, in determining the number of outstanding shares
of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s
most recent periodic or annual report filed with the Securities and Exchange Commission, as the case may be, (B) a more recent
public announcement by the Company or (C) a more recent written notice by the Company or the Company’s transfer agent setting
forth the number of shares of Common Stock outstanding. The provisions of this Section 5 shall be construed and implemented
in a manner otherwise than in strict conformity with the terms of this Section 5 to correct this subsection (or any portion
hereof) which may be defective or inconsistent with the intended beneficial ownership limitation herein contained or to make changes
or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall
apply to a successor holder of this Warrant.

 

    	 	7	 

     

    

 

Section 6.  Miscellaneous.

 

(a) No Rights as Stockholder.
Except as otherwise specifically provided herein, a Holder, solely in its capacity as a holder of this Warrant, shall not be entitled
to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained
in this Warrant be construed to confer upon a registered holder, solely in its capacity as the Holder of this Warrant, any of the
rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization,
issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive
dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares that it is then entitled
to receive upon the due exercise of this Warrant. This Warrant does not entitle the registered holder thereof to any of the rights
of a stockholder.

 

(b) Reservation of
Common Stock. The Company shall at all times reserve and keep available a number of its authorized but unissued shares of Common
Stock that will be sufficient to permit the exercise in full of this Warrant.

 

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

 

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

  

(e) Jurisdiction.
All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed
and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law
thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by this Warrant (whether brought against a party hereto or their respective affiliates, directors, officers, stockholders,
partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New
York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of
New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper
or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any other manner permitted by law. If either party shall commence an action,
suit or proceeding to enforce any provisions of this Warrant, the prevailing party in such action, suit or proceeding shall be
reimbursed by the other party for their reasonable attorneys’ fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding.

 

    	 	8	 

     

    

 

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

 

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

 

(h) Notices. Any
notices, consents, waivers or other document or communications required or permitted to be given or delivered under the terms of
this Warrant must be in writing and will be deemed to have been delivered: (i) upon receipt, if delivered personally; (ii) when
sent, if sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file
by the sending party); (iii) if sent by overnight courier service, one (1) Trading Day after deposit with an overnight courier
service with next day delivery specified, and (iv) if sent by certified mail or private courier service within five (5) days after
deposit of such notice, in each case, properly addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

 

If to the Company:

 

Creative Realities, Inc.

13100 Magisterial Drive, Suite 100

Louisville, Kentucky 40223

Attention: Mr. Richard Mills, Chief Executive Officer

Fax No: (502) 791-8797

 

with a copy (which shall not constitute notice) to:

 

Maslon LLP

3300 Wells Fargo Center

90 South Seventh Street

Minneapolis, MN 55402

Attention: Bradley Pederson, Esq

Fax No: (612) 672-8341

 

If to a Holder, to its address, facsimile
number or e-mail address set forth herein or on the books and records of the Company.

 

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

 

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

 

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

 

    	 	9	 

     

    

 

(l) Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.
In addition, other modifications or amendments, including any amendment to increase the Warrant Price or shorten the Exercise Period,
shall require the written consent of A.G.P./Alliance Global Partners (“A.G.P.”) and the registered holders of
a majority of the then outstanding Warrants issued by the Company pursuant to that certain Underwriting Agreement, dated [●],
2018 with A.G.P.

 

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

 

(n) Effect of Headings.
The Section headings herein are for convenience only and are not part of this Warrant and shall not affect the interpretation thereof.

 

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

 

(Signature Page Follows)

 

    	 	10	 

     

    

 

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

 

	CREATIVE REALITIES, INC.	 
	 	 	 
	By:	 	 
	Name:	Richard Mills	 
	Title:	Chief Executive Officer	 

 

    	 	11	 

     

    

 

Exhibit A

 

NOTICE OF EXERCISE

 

TO: CREATIVE REALITIES, INC.

 

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

 

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

 

	 	☐	in lawful money of the United States by wire transfer or cashier’s check drawn on a United States bank; or

 

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

 

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

 

_________________________________

 

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

 

_________________________________

 

_________________________________

 

_________________________________

[SIGNATURE OF HOLDER]

 

Name of Investing Entity:

 

__________________________________________________________________

 

Signature of Authorized Signatory of Investing Entity:

 

__________________________________________________________________

 

Name of Authorized Signatory:

 

__________________________________________________________________

 

 

Title of Authorized Signatory:

 

__________________________________________________________________

 

Date: ______________________________

 

 

    	 	12	 

     

    

 

Exhibit B

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

FOR VALUE RECEIVED, [____] all of or [_______]
shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

_______________________________________________, whose address
is

 

_______________________________________________________________

 

_______________________________________________________________

 

	 	 	Date:  ______________, _______	 
	 	 	 	 
	Holder’s Signature: 	 	_____________________________	 
	 	 	 	 
	Holder’s Address:  	 	_____________________________	 
	 	 	_____________________________	 

 

NOTE:  The signature to this
Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever.  Officers of corporations and those acting in a fiduciary or other representative capacity should
file proper evidence of authority to assign the foregoing Warrant.

 

 

13

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