Document:

EGL Ex 10.5 15Q1

Exhibit 10.5

ENGILITY HOLDINGS, INC.
2012 LONG TERM PERFORMANCE PLAN
PERFORMANCE RETENTION AWARD AGREEMENT

This Performance Retention Award Agreement (this “Agreement”), effective as of the Grant Date (as defined below), is between Engility Holdings, Inc., a Delaware corporation (the “Corporation”), and the Participant (as defined below). Any term capitalized but not defined in this Agreement will have the meaning set forth in the Engility Holdings, Inc. 2012 Long Term Performance Plan (the “Plan”). The Plan provides for the grant of Performance-Based Awards to key employees of the Corporation or its Affiliates as approved by the Committee. In exercise of its discretion under the Plan, the Committee has determined that the Participant should receive a Performance-Based Award of Share Units subject to the terms and restrictions set forth herein under the Plan and, accordingly, the Corporation and the Participant hereby agree as follows:

1.    Definitions.  The following terms shall have the following meanings for purposes of this Agreement:
(a)“Cause” means the Participant’s: (i) intentional failure to perform reasonably assigned duties, which failure the Participant does not cure within fifteen days of the Corporation providing written notice of such failure; (ii) personal dishonesty or willful misconduct in the performance of duties; (iii) breach of fiduciary duties to the Corporation involving personal profit; (iv) willful violation of any law, rule or regulation in connection with the performance of duties (other than traffic violations or similar offenses); or (iv) any act by a Participant involving fraud, any breach by Participant of applicable regulations of competent authorities in relation to trading or dealing with stocks, securities, investments and the like or any willful or grossly negligent act by the Participant resulting in an investigation by the Securities and Exchange Commission, which, in the case of (iv) above, the Board reasonably determines materially adversely affects the Corporation or the Participant’s ability to perform his or her duties to the Corporation. For purposes of this definition, an act, or failure to act, on Participant’s part shall be deemed “willful” if done, or omitted to be done, by the Participant in bad faith and without reasonable belief that the action or omission was in the best interest of the Corporation. For purposes of this definition, “Corporation” includes any applicable Subsidiary, Successor and any Subsidiary of a Successor.

(b)“Good Reason” means any of the following actions, without the Participant’s express prior written approval: (i) any material reduction in base salary, annual cash incentive opportunity or long-term incentive opportunity, (ii) subject to the terms and conditions of the applicable plan(s), any failure by the Corporation to continue to provide employee benefits to the Participant that are substantially similar in the aggregate to those afforded to persons of comparable title and position of the Corporation or applicable Subsidiary (for this purpose employee benefits shall mean retirement, fringe and welfare benefits); (iii) any material adverse change in the Participant’s duties or responsibilities; (iv) any relocation of the Participant’s principal place of business of 50 miles or more, provided that such relocation also increases the Participant’s commute by at least 25 miles; or (v) any failure to pay amounts earned by the Participant within ten (10) days after the date such compensation is due. For purposes of this definition, “Corporation” includes any applicable Subsidiary, Successor and any Subsidiary of a Successor.

(c)“Grant Date” shall mean March 27, 2015.

(d)“Participant” shall mean [EMPLOYEE NAME].

(e)“Performance Units” shall mean the Performance-Based Award of Share Units subject to the terms and restrictions set forth herein, as further described on Exhibit A. 

(f)“Subsidiary” shall mean, as to any person, any corporation, association, partnership, joint venture or other business entity of which 50% or more of the voting stock or other equity interests (in the case of entities other than corporations), is owned or controlled (directly or indirectly) by that entity, or by one or more of the Subsidiaries of that entity, or by a combination thereof.

(g)“Successor” means the entity surviving a Change in Control transaction involving the Corporation or Engility Corporation, and includes any entity of which such survivor is a Subsidiary and any entity which acquires all or substantially all of the assets of the Corporation.

(h)“Target Award” shall mean the number of Performance Units set forth on Exhibit A hereof, which represents the target number of Performance Units that may be settled and released to the Participant pursuant to this Award. The actual number of Performance Units granted hereunder that will vest pursuant to this Award shall be determined in accordance with Exhibit A hereof.

2.    Grant. The Corporation hereby grants an Award of the Performance Units to the Participant as set forth on Exhibit A, each of which represents the right to receive one Share (or the Fair Market Value thereof) upon the expiration of the Restricted Period (as defined below) and otherwise subject to the terms, conditions and restrictions set forth in the Plan and this Agreement. The Corporation shall cause an account (the “Unit Account”) to be established and maintained on the books of the Corporation to record the number of Performance Units credited to the Participant under the terms of this Agreement. The Participant’s interest in the Unit Account shall be that of a general, unsecured creditor of the Corporation.

3.    Restricted Period.  Except as otherwise provided in paragraphs 6 and 7 hereof, the “Restricted Period” shall mean the period beginning on the Grant Date and expiring on the third anniversary of the Grant Date, or, if later, the date on which the Committee provides the certification set forth in (a) below, but only if (a) and to the extent the Corporation has achieved the performance targets set forth on Exhibit A (and the other terms and conditions set forth therein have been met) as certified by the Committee in accordance with the Plan, and (b) the Participant has remained in service with the Corporation or any of its Affiliates continuously until that date.

4.    Settlement. The Participant shall be entitled to settlement of the Performance Units covered by this Agreement at the time that the Restricted Period ends with respect to such Performance Units pursuant to Section 3 or Section 6 (any such date, the “Settlement Date”). Such settlement shall be made as promptly as practicable thereafter (but in no event after the thirtieth day following the Settlement Date) through, in the sole discretion of the Committee, either (a) the issuance to the Participant (or to the executors or administrators of Participant’s estate in the event of the Participant’s death) of a stock certificate (or evidence such Stock has been registered in book entry form in the name of the Participant with the relevant stock agent) for a number of shares of Stock equal to the number of such vested Performance Units, or (b) a payment of cash to the Participant (or to the executors or administrators of Participant’s estate in the event of the Participant’s death) equal to the Fair Market Value of the Stock that would otherwise have been issued pursuant to (a) above.

5.    Restrictions on Transfer. The Performance Units may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by Participant other than by will or the laws of descent and distribution. Any sale, assignment, transfer, pledge, hypothecation, loan or other disposition other than in accordance with this Section 5 shall be null and void.

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6.    Change in Control During Restricted Period.  Upon the occurrence of a Change in Control,

(a)In the event the entity surviving the Change in Control (the “Successor”) assumes the Award granted hereby, (i) the Performance Period shall end upon the date immediately preceding the Change in Control, (ii) the number of Performance Units that shall be eligible to vest shall be the Target Award, (iii) the Restricted Period will end on the third anniversary of the Grant Date, and (iv) notwithstanding Section 7 below, in the event the Participant’s employment with the Successor is terminated without Cause by the Successor, or for Good Reason by the Participant, prior to the expiration of the Restricted Period, the number of Performance Units otherwise eligible to vest pursuant to this paragraph shall immediately vest and be settled upon the Participant’s termination of employment in accordance with Section 4.

(b)In the event the Successor does not assume the Award granted hereby, the Restricted Period shall end with respect to a number of Performance Units equal to the Target Award as of immediately prior to the effective date of the Change in Control, and the appropriate number of Performance Units shall be settled in accordance with Section 4.
7.    Termination of Employment During Restricted Period. In the event that the Participant’s employment with the Corporation and its Subsidiaries is terminated prior to the expiration of the Restricted Period, the Participant shall forfeit the Performance Units and all of the Participant’s rights hereunder shall cease; provided, that subject to Section 6(a), in the event the employment of the Participant is terminated by the Corporation without Cause, or the Participant terminates his employment for Good Reason, fifty percent (50%) of the Target Award shall immediately vest and be settled upon the Participant’s termination of employment in accordance with Section 4; provided further, that the Committee shall have the discretion to provide for the vesting of all or a portion of the Performance Units and the release of unrestricted Stock upon or following the Participant’s termination of employment in circumstances such as Participant’s death, disability or retirement as the Committee shall determine in its sole discretion. The Participant’s rights to the Performance Units shall not be affected by any change in the nature of the Participant’s employment so long as the Participant continues to be an employee or other applicable service provider, within the discretion of the Committee, of the Corporation or any of its Subsidiaries.

8.    Dividends. If the Corporation pays a cash dividend on its common stock, the Participant shall accrue in his or her Dividend Account (as defined below) a cash dividend equivalent with respect to the maximum number of Performance Units issuable pursuant to this Agreement as of the record date for the dividend. The Corporation shall cause an account (the “Dividend Account”) to be established and maintained as part of the records of the Corporation to evidence the aggregate cash dividend equivalents accrued by the Participant from time to time under this Section. No interest shall accrue on any amounts reflected in the Dividend Account. The Participant’s interest in the amounts reflected in the Dividend Account shall be that of a general, unsecured creditor of the Corporation. Subject to, and as promptly as practicable following, the settlement of the Share Units pursuant to Section 4 hereunder, the Corporation shall pay an amount in cash (without interest and subject to applicable withholding taxes) to the Participant (or his or her permitted transferee(s) who are issued Stock or cash pursuant to Section 4 hereunder) equal to the aggregate cash dividend equivalents accrued in the Participant’s Dividend Account with respect to the vested Performance Units settled with the Participant and the Participant’s Dividend Account shall be eliminated at that time. In the event that the Participant forfeits his or her rights to all or any portion of the Performance Units (or such Performance Units are otherwise cancelled on account of the Company’s actual performance), the Participant also shall forfeit his or her rights to any cash dividend equivalents accrued in the Participant’s Dividend Account with respect to such forfeited shares and the Participant’s Dividend Account shall be eliminated at that time. For the avoidance of doubt, no dividend equivalent rights shall accrue under this Section 8 with respect to a dividend on the Corporation’s Stock in the event that any applicable adjustments pursuant to Section 11 hereof provide similar benefits.

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9.    No Right to Continued Employment.   Nothing in this Agreement or the Plan shall be interpreted or construed to confer upon the Participant any right to continue employment by the Corporation or any of its subsidiaries, nor shall this Agreement or the Plan interfere in any way with the right of the Corporation or any of its subsidiaries to terminate the Participant’s employment at any time for any reason whatsoever, whether or not with cause.

10.    No Rights as a Stockholder.  The Participant’s interest in the Performance Units shall not entitle the Participant to any rights as a stockholder of the Corporation. The Participant shall not be deemed to be the holder of, or have any of the rights and privileges of a stockholder of the Corporation in respect of, the shares of Stock unless and until such shares have been issued to the Participant in accordance with Section 4.

11.    Adjustments Upon Change in Capitalization.  In the event of any reorganization, merger, consolidation, recapitalization, reclassification, stock split, spin-offs, stock dividend or similar capital adjustment, as a result of which shares of any class shall be issued in respect of outstanding shares of the Corporation’s Stock or shares of Corporation’s Stock shall be changed into a different number of shares or into another class or classes or into other property or cash, the number of Performance Units shall be adjusted to reflect such event so as to preserve (without enlarging) the value of the award hereunder, with the manner of such adjustment to be determined by the Committee in its sole discretion.  This paragraph shall also apply with respect to any extraordinary dividend or other extraordinary distribution in respect of the Corporation’s Common Stock (whether in the form of cash or other property).

12.    Company Clawback Policy. Notwithstanding any provision of the Plan or this Agreement to the contrary, the Corporation may require the Participant to return shares of Stock (or the value of such Stock when originally released to Participant), cash paid to the Participant upon settlement of the Performance Units, cash paid from the Dividend Account and any other amount required by law to be returned, in the event that such repayment is required in order to comply with the Corporation’s clawback policy as then in effect or any laws or regulations relating to restatements of the Corporation’s publicly-reported financial results.

13.    General Restrictions.  Notwithstanding anything in this Agreement to the contrary, the Corporation shall have no obligation to issue the Stock as contemplated by this agreement unless and until such transfer shall comply with all relevant provisions of law and the requirements of any stock exchange on which the Corporation’s shares are listed for trading. 

14.    Tax Withholding. On or after the Settlement Date, the Participant shall remit to the Corporation the minimum amount necessary to satisfy Federal, state, local or foreign withholding tax requirements, if any (“Withholding Taxes”) as a condition to the Corporation’s issuance of any Stock (and any related dividend equivalent amounts) or cash as provided in Section 4.  The payment shall be in cash, unless otherwise provided by the Corporation to allow (i) the delivery of shares of Stock, (ii) a reduction in the number of shares of Stock otherwise deliverable or other amounts otherwise payable to the Participant pursuant to this Agreement, or (iii) a combination of (i) and/or (ii).  The value of any Stock delivered or withheld as payment in respect of withholding tax requirements shall be determined by reference to the Fair Market Value of such Stock as of the date of such withholding or delivery. In the event that Withholding Taxes are satisfied by withholding a portion of the Stock otherwise deliverable to the Participant pursuant to this Agreement, the Corporation shall not withhold any Stock in excess of the minimum number of shares of Stock necessary to satisfy the applicable Withholding Taxes.

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15.    Plan Governs.  The Participant hereby acknowledges receipt of a copy of the Plan and agrees to be bound by its terms, all of which are incorporated herein by reference.  The Plan shall govern in the event of any conflict between this Agreement and the Plan.

16.    Modification of Agreement.  This Agreement may be modified, amended, suspended or terminated, and any terms or conditions may be waived, but, subject to the terms and conditions of the Plan and this Agreement, only by a written instrument executed by the parties hereto.
 
17.    Section 409A. Notwithstanding anything herein to the contrary, to the maximum extent permitted by applicable law, the settlement of the Performance Units (including any dividend equivalent rights related thereto) to be made to the Participant pursuant to this Agreement is intended to qualify as a “short-term deferral” pursuant to Section 1.409A-1(b)(4) of the Regulations and this Agreement shall be interpreted consistently therewith. However, under certain circumstances, settlement of the Performance Units or any dividend equivalent rights may not so qualify, and in that case, the Committee shall administer the grant and settlement of such Performance Units and any dividend equivalent rights in strict compliance with Section 409A of the Code. Further, notwithstanding anything herein to the contrary, if at the time of a Participant’s termination of employment with the Corporation and its Subsidiaries, the Participant is a “specified employee” as defined in Section 409A of the Code, and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of service is necessary in order to prevent the imposition of any accelerated or additional tax under Section 409A of the Code, then the Corporation will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to the Participant) to the minimum extent necessary to satisfy Section 409A of the Code until the date that is six months and one day following the Participant’s termination of employment with the Corporation (or the earliest date as is permitted under Section 409A of the Code), if such payment or benefit is payable upon a termination of employment. For purposes of this Agreement, a “termination of employment” shall have the same meaning as “separation from service” under Section 409A of the Code and Grantee shall be deemed to have remained employed so long as Grantee has not “separated from service” with the Corporation or Successor. Each payment of Performance Units (and related dividend equivalent units) constitutes a “separate payment” for purposes of Section 409A of the Code.

18.    Severability.  Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be affected by such holding and shall continue in full force in accordance with their terms.

19.    Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Delaware without giving effect to the conflicts of laws principles thereof.  If the Participant has received a copy of this Agreement (or the Plan or any other document related hereto or thereto) translated into a language other than English, such translated copy is qualified in its entirety by reference to the English version thereof, and in the event of any conflict the English version will govern.

20.    Successors in Interest.      This Agreement shall inure to the benefit of and be binding upon any successor to the Corporation.  This Agreement shall inure to the benefit of the Participant or the Participant’s legal representatives.  All obligations imposed upon the Participant and all rights granted to the Corporation under this Agreement shall be final, binding and conclusive upon the Participant’s heirs, executors, administrators and successors.

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21.    Administration.  The Committee shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules.  All actions taken and all interpretations and determinations made by the Committee shall be final and binding upon the Participant, the Corporation and all other interested persons.  No member of the Committee shall be personally liable for any action determination or interpretation made in good faith with respect to the Plan or the Performance Units.  In its absolute discretion, the Board of Directors may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan and this Agreement.

22.    Resolution of Disputes.      Any dispute or disagreement which may arise under, or as a result of, or in any way related to, the interpretation, construction or application of this Agreement shall be determined by the Committee.  Any determination made hereunder shall be final, binding and conclusive on the Participant and Corporation for all purposes.

23.    Data Privacy Consent.  As a condition of the grant of the Performance Units, the Participant hereby consents to the collection, use and transfer of personal data as described in this paragraph. The Participant understands that the Corporation and its subsidiaries hold certain personal information about the Participant, including name, home address and telephone number, date of birth, social security number, salary, nationality, job title, ownership interests or directorships held in the Corporation or its subsidiaries, and details of all restricted units or other equity awards or other entitlements to shares of common stock awarded, cancelled, exercised, vested or unvested (“Data”). The Participant further understands that the Corporation and its subsidiaries will transfer Data among themselves as necessary for the purposes of implementation, administration and management of the Participant’s participation in the Plan, and that the Corporation and any of its subsidiaries may each further transfer Data to any third parties assisting the Corporation in the implementation, administration and management of the Plan. The Participant understands that these recipients may be located in the European Economic Area or elsewhere, such as the United States. The Participant hereby authorizes them to receive, possess, use, retain and transfer such Data as may be required for the administration of the Plan or the subsequent holding of shares of common stock on the Participant’s behalf, in electronic or other form, for the purposes of implementing, administering and managing the Participant’s participation in the Plan, including any requisite transfer to a broker or other third party with whom the Participant may elect to deposit any shares of common stock acquired under the Plan. The Participant may, at any time, view such Data or require any necessary amendments to it.

24.    Limitation on Rights; No Right to Future Grants; Extraordinary Item of Compensation.  By accepting this Agreement and the grant of the Performance Units contemplated hereunder, the Participant expressly acknowledges that (a) the Plan is discretionary in nature and may be suspended or terminated by the Corporation at any time; (b) the grant of Performance Units is a one-time benefit that does not create any contractual or other right to receive future grants of Performance Units, or benefits in lieu of Performance Units; (c) all determinations with respect to future grants of Performance Units, if any, including the grant date, the number of shares of Stock granted and the restricted period, will be at the sole discretion of the Corporation; (d) the Participant’s participation in the Plan is voluntary; (e) the value of the Performance Units is an extraordinary item of compensation that is outside the scope of the Participant’s employment contract, if any, and nothing can or must automatically be inferred from such employment contract or its consequences; (f) grants of Performance Units are not part of normal or expected compensation for any purpose and are not to be used for calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments, and the Participant waives any claim on such basis; and (g) the future value of the Stock is unknown and cannot be predicted with certainty. In addition, except for the rights and benefits expressly provided herein, the Participant understands, acknowledges and agrees that the Participant will have no rights to compensation 

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or damages related to the Performance Units in consequence of the termination of the Participant’s employment for any reason whatsoever and whether or not in breach of contract.

25.    Award Administrator.  The Corporation may from time to time to designate a third party (an “Award Administrator”) to assist the Corporation in the implementation, administration and management of the Plan and any Performance Units granted thereunder, including by sending Award Letters on behalf of the Corporation to Participants, and by facilitating through electronic means acceptance of Performance Share Agreements by Participants.

26.    Acceptance.  This Agreement shall not be enforceable until it has been executed by the Participant.  In the event the Corporation has designated an Award Administrator, the acceptance (including through electronic means) of the Performance Units Award contemplated by this Agreement in accordance with the procedures established from time to time by the Award Administrator shall be deemed to constitute the Participant’s acknowledgment and agreement to the terms and conditions of this Agreement and shall have the same legal effect in all respects of the Participant having executed this Agreement by hand.

[signature page to follow]

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By:    ENGILITY HOLDINGS, INC.

         ————————————————————
Anthony Smeraglinolo
President and Chief Executive Officer        
        

                     ————————————————————
Thomas O. Miiller
Senior Vice President, General Counsel and
Corporate Secretary

Acknowledged and Agreed
as of the date first written above:

______________________________
Participant Signature

[Signature page to Engility Holdings, Inc. 2012 Long Term Performance Plan
Performance Retention Award Agreement]

8Exhibit 4.2

 

THIS WARRANT AND THE SECURITIES REPRESENTED
BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, AND UPON DELIVERY
OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT THE PROPOSED TRANSFER IS EXEMPT FROM THE SECURITIES ACT OR THAT THE PROSPECTUS
DELIVERY REQUIREMENTS HAVE BEEN MET.

 

COMMON STOCK PURCHASE WARRANT

 

To purchase shares of common stock, $0.0001
par value, of

 

Rock Creek Pharmaceuticals, Inc.

 

THIS COMMON STOCK PURCHASE WARRANT (the
“Warrant”) certifies that, for value received, Feehan Partners, L.P. (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 May
8, 2019 (the “Initial Exercise Date”) and on or prior to the close of business on May 8, 2022 (the “Termination
Date”) but not thereafter (the “Exercise Period”), to subscribe for and purchase from Rock Creek Pharmaceuticals,
Inc., a Delaware corporation (the “Company”), up to 69,831 shares (the “Warrant Shares”)
of common stock, par value $0.0001 per share, of the Company (the “Common Stock”). The purchase price of one
share of Common Stock (the “Exercise Price”) under this Warrant shall be $3.00, subject to adjustment hereunder.
The Exercise Price and the number of Warrant Shares for which the Warrant is exercisable shall be subject to adjustment as provided
herein. The term “Holder” shall refer to the Holder identified above or any subsequent transferee of this Warrant.
Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Securities Purchase Agreement,
dated May 8, 2015, between the Company and the Holder (the “Purchase Agreement”).

 

1.             Authorization of Warrant Shares. The Company represents and warrants that all Warrant Shares which may be issued
upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by
this Warrant, be duly authorized, validly issued, fully paid and nonassessable.

 

		2.	Exercise of Warrant.

 

(a)  Except as provided
in Section 3 herein, exercise of the purchase rights represented by this Warrant may be made at any time or times on or
after the Initial Exercise Date and on or prior to the close of business on the Termination Date by (i) surrendering this Warrant,
with the Notice of Exercise Form attached hereto completed and duly executed, to the offices of the Company (or such other office
or agency (including the transfer agent, if applicable) of the Company as it may designate by notice in writing to the registered
Holder at the address of such Holder appearing on the books of the Company), and (ii) (A) delivering to the Company payment of
the Exercise Price of the shares thereby purchased by wire transfer of immediately available funds or cashier’s check drawn
on a United States bank, or (B) if the provisions of Section 2(c) are applicable, by notifying the Company that this Warrant
is being exercised pursuant to a Cashless Exercise (as defined in Section 2(c) below). The Holder exercising his, her or
its purchase rights in accordance with the preceding sentence shall be entitled to receive a certificate for the number of Warrant
Shares so purchased, which certificate will bear a legend substantially similar to the legend set forth on this Warrant. Certificates
for shares purchased hereunder shall be issued and delivered to the Holder within five (5) Trading Days (as defined below) after
the date on which this Warrant shall have been exercised as aforesaid. This Warrant shall be deemed to have been exercised and
such certificate or certificates shall be deemed to have been issued, and the Holder shall be deemed to no longer hold this Warrant
with respect to such shares and to have become a holder of record of such shares for all purposes, in each case (i) if the exercise
is not a Cashless Exercise, as of the date the Warrant has been exercised by payment to the Company of the Exercise Price for such
shares and all taxes required to be paid by the Holder, if any, pursuant to Section 4 prior to the issuance of such shares,
have been paid, or (ii) if the exercise is a Cashless Exercise, as of the date the Warrant has been exercised with respect to such
shares, the Company has been notified that the Warrant is being exercised pursuant to a Cashless Exercise, and all taxes required
to be paid by the Holder, if any, pursuant to Section 4 prior to the issuance of such shares, have been paid.

 

    	 

    	 

    

 

(b)            
In the event that the Warrant is not exercised in full, the number of Warrant Shares shall be reduced by the number of such
Warrant Shares for which this Warrant is exercised and/or surrendered, and the Company, if requested by the Holder and at his,
her or its expense, shall within ten (10) Trading Days issue and deliver to the Holder a new Warrant of like tenor in the name
of the Holder or as the Holder (upon payment by the Holder of any applicable transfer taxes) may request, reflecting such adjusted
Warrant Shares.

 

(c)            
Notwithstanding anything herein to the contrary, if a registration statement covering the resale of the Warrant Shares that
are the subject of a completed and executed Notice of Exercise Form is not available for the resale of any or all Warrant Shares
(the “Unavailable Warrant Shares”), the Holder may, in his, her or its sole discretion, exercise this Warrant
in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise
in payment of the aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of
shares of Common Stock determined according to the following formula (a “Cashless Exercise”):

 

Net Number
= (A x B) - (A x C)

D

 

For purposes
of the foregoing formula:

 

		A=	the total number of shares with respect to which this
Warrant is then being exercised.

 

		B=	the arithmetic average of the VWAPs (as defined below)
of the Common Stock for the five (5) consecutive Trading Days (as defined below) ending on the date immediately preceding the
date of the Notice of Exercise Form.

 

		C=	the Exercise Price then in effect for the applicable
Warrant Shares at the time of such exercise.

 

		D=	the Closing Sale Price (as defined below) of the Common
Stock on the date of the Notice of Exercise Form.

 

For purposes of Rule 144(d) promulgated
under the Securities Act, as in effect on the date hereof, it is intended that the Warrant Shares issued in a Cashless Exercise
shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced,
on the date this Warrant was originally issued pursuant to the Purchase Agreement.

 

    	 

    	 

    

 

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

 

(e)            
For purposes of this Warrant, the following terms shall have the following meanings:

 

(i)“Closing
Sale Price” means, for any security as of any date, the last closing trade price for such security on the Principal Market
(as defined below), as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does
not designate the closing trade price, then the last trade price of such security prior to 4:00:00 p.m., New York time, as reported
by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last
trade price of such security on the principal securities exchange or trading market where such security is listed or traded as
reported by Bloomberg, or if the foregoing do not apply, the last trade price of such security in the over-the-counter market on
the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for such security
by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported
in the OTC Link or “pink sheets” by OTC Markets Group Inc. (formerly Pink OTC Markets Inc.). If the Closing Sale Price
cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security
on such date shall be the fair market value as mutually determined by the Company and the Holder. All such determinations shall
be appropriately adjusted for any stock dividend, stock split, stock combination, reclassification or other similar transaction
during the applicable calculation period.

 

(ii)“Trading
Day” shall mean a day on which there is trading on the Principal Market or such other market or exchange on which the
Common Stock is then principally traded.

 

(iii)“Principal
Market” means the Nasdaq Capital Market.

 

(iv)“VWAP”
means, for any security as of any date, the dollar volume-weighted average price for such security on the NASDAQ Stock Market (or,
if the NASDAQ Stock Market is not the principal trading market for such security, then on the principal securities exchange or
securities market on which such security is then traded) during the period beginning at 9:30:01 a.m., New York time, and ending
at 4:00:00 p.m., New York time, as reported by Bloomberg through its “Volume at Price” function. If VWAP cannot be
calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair
market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair
market value of such security, then such dispute shall be resolved in accordance with the procedures hereunder. All such determinations
shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such
period.

 

    	 

    	 

    

  

3.               
No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon
the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such
exercise, the Company shall pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied
by the Exercise Price.

 

4.               
Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder
for any issue tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall
be paid by the Company, and such certificates shall be issued in the name of the Holder; provided, however, that the Holder
shall pay any applicable transfer taxes.

5.               
Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely
exercise of this Warrant, pursuant to the terms hereof.

 

6.               
Division and Combination.

 

(a)            
This Warrant may be divided or combined with other Warrants upon presentation hereof (and thereof, as applicable) at the
aforesaid office of the Company, together with a written notice specifying the denominations in which new Warrants are to be issued,
signed by the Holder or his, her or its agent or attorney. 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.

 

(b)            
The Company shall prepare, issue and deliver at its own expense (other than transfer taxes) the new Warrant or Warrants
under this Section 6.

 

7.               
No Rights as Stockholder until Exercise. This Warrant does not entitle the Holder to any voting rights or other rights
as a stockholder of the Company prior to the exercise hereof. Upon the surrender of this Warrant and, if the exercise is not a
Cashless Exercise, the payment of the aggregate Exercise Price, the Warrant Shares so purchased shall be and be deemed to be issued
to such Holder as the record owner of such shares as of the close of business on the later of the date of such surrender or payment,
and this Warrant shall no longer be issuable with respect to such Warrant Shares.

 

8.               
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 the case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it, 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.

 

9.               
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 be a Saturday, Sunday or legal holiday, then such action may be taken or such right
may be exercised on the next succeeding day not a Saturday, Sunday or legal holiday.

 

10.           
Adjustments and Termination of Rights. The purchase price per Warrant Share and the number of Warrant Shares purchasable
hereunder are subject to adjustment from time to time as follows:

 

    	 

    	 

    

  

(a)            
Reclassification, Recapitalization, etc. If the Company at any time shall, by reclassification of securities, recapitalization,
automatic conversion, or other similar event affecting the number or character of outstanding shares of Common Stock, or otherwise,
change any of the securities as to which purchase rights under this Warrant exist into the same or a different number of securities
of any other class or classes, this Warrant shall thereafter represent the right to acquire such number and kind of securities
as would have been issuable as the result of such change with respect to the securities that were subject to the purchase rights
under this Warrant immediately prior to such reclassification or other change.

 

(b)            
Split, Subdivision or Combination of Shares. If the Company at any time while this Warrant remains outstanding and
unexpired shall split, subdivide or combine the securities as to which purchase rights under this Warrant exist, the Exercise Price
shall be proportionately decreased in the case of a split or subdivision or proportionately increased in the case of a combination.

 

(c)            
Stock Dividends. If the Company at any time while this Warrant is outstanding and unexpired shall pay a dividend
with respect to Common Stock payable in shares of Common Stock, or make any other distribution with respect to Common Stock of
shares of Common Stock, then the Exercise Price shall be adjusted, from and after the date of determination of the shareholders
entitled to receive such dividend or distribution, to that price determined by multiplying the Exercise Price in effect immediately
prior to such date of determination by a fraction (i) the numerator of which shall be the total number of shares of Common
Stock outstanding immediately prior to such dividend or distribution, and (ii) the denominator of which shall be the total
number of shares of Common Stock outstanding immediately after such dividend or distribution.

 

(d)            
Adjustment of Number of Warrant Shares. Upon each adjustment in the Exercise Price pursuant to Sections 10(b)
or 10(c) hereof, the number of Warrant Shares purchasable hereunder shall be adjusted to the product obtained by multiplying
the number of Warrant Shares purchasable immediately prior to such adjustment in the Exercise Price by a fraction (i) the
numerator of which shall be the Exercise Price immediately prior to such adjustment, and (ii) the denominator of which shall
be the Exercise Price immediately after such adjustment.

 

(e)            
Other Action Affecting Shares. In case the Company shall take any action to which the provisions hereof are not strictly
applicable but are of the type contemplated by the provisions of this Section 10, then the Company’s board of directors
shall in good faith determine and implement an appropriate adjustment in the Exercise Price and the number of Warrant Shares (if
applicable) so as to protect the rights of the Holder.

 

11.             
Notice of Adjustments, Notices. If the Exercise Price or number or type of securities issuable hereunder shall be
adjusted pursuant to Section 10 hereof, the Company shall issue and provide to the Holder, as holder of this Warrant,
a certificate signed by an officer of the Company setting forth, in reasonable detail, the event requiring the adjustment, the
amount of the adjustment, the method by which such adjustment was calculated and the Exercise Price and number of Warrant Shares
purchasable hereunder after giving effect to such adjustment.

 

12.             
Authorized Shares. The Company covenants that, during the period the Warrant is outstanding, it will reserve from
its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the
exercise of any purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to ensure
that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation.

 

    	 

    	 

    

 

Except as and to the
extent waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate
of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will
at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary
or appropriate to protect the rights of the Holder as set forth in this Warrant against impairment. Without limiting the generality
of the foregoing, the Company will (a) not increase the par value of any Warrant Shares above the amount payable therefor upon
such exercise immediately prior to such increase in par value and (b) take all such action as may be necessary or appropriate in
order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant.

 

13.             
Call Right. At any time and from time to time, the Company shall have the right, upon 10 Trading Days’ prior
written notice to the Holder (a “Call Notice”), to call (require Holder to exercise) all or any portion of this
Warrant at the Exercise Price provided that (i) the Warrant Shares are registered for resale pursuant to the Securities Act and
have been for at least the 10-Trading Day period preceding the Call Notice, (ii) the Prospectus has not been suspended at any time
during the 10-Trading Day period preceding the Call Notice, (iii) the Common Stock is currently listed (and is not suspended from
trading) on the Principal Market as of the date the Call Notice is delivered to the Holder through the effective date of such call,
(iv) the Company is not in default (or taken any action or failure to act which through the passage of time would result in a default)
under the Purchase Agreement, (v) exercise of the Warrant under the Call Notice will not cause the Holder to exceed the limitations
set forth in Section 3(d) hereof, (vi) the VWAP of the Common Stock on the Principal Market is equal to or greater than
$18.00 (subject to adjustment to reflect forward or reverse stock splits, stock dividends, recapitalizations and the like) (the
“Threshold Price”) for at least 10 consecutive Trading Days, and (vii) the Call Notice is delivered within 3
Trading Days’ of the most recent day in the previous clause and that the Common Stock reached the Threshold Price. At any
time prior to the effective date of such call, the Holder shall have the right to exercise this Warrant in accordance with its
terms.

 

14.             
Miscellaneous.

 

(a)            
Jurisdiction. This Warrant shall constitute a contract under the laws of the State of New York, without regard to
its conflict of law, principles or rules.

 

(b)            
Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant will have
restrictions upon resale imposed by state and federal securities laws and/or as set forth in the Purchase Agreement.

 

(c)            
Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part
of the Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies, provided,
however, that all rights hereunder terminate on the Termination Date. 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 his, her or its rights, powers or remedies hereunder.

 

    	 

    	 

    

  

(d)            
Notices. All notices, requests, consents and other communications provided for herein shall be in writing and shall
be effective upon delivery in person or five business days after being mailed by certified or registered mail, return receipt requested,
postage pre-paid, addressed as follows:

 

		(i)	If to the Holder:

 

Feehan Partners, L.P.

3 Harbor Drive, Suite 213

Sausalito, CA 94965

Attn: Robert Scannell

Phone: ______________________

or to the address of the Holder as shown on the books of the
Company; or

 

		(ii)	If to the Company:

 

Rock Creek Pharmaceuticals, Inc.

2040 Whitfield Avenue, Suite 300

Sarasota, Florida 34243

Telephone: (844) 727-0727

Attention: Chief Financial Officer

 

with a copy to:

 

Foley & Lardner LLP

Attn: Curt P. Creely, Esq.

100 N. Tampa Street, Suite 2700

Tampa, Florida 33602

Telephone: (813) 225-4122

 

or at such other address as the
Holder or the Company, as applicable, may hereafter provide to the other in accordance with the provisions of this paragraph.

 

(e)            
Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise
this Warrant or 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.

 

(f)             
Successors and Assigns; No Assignment. This Warrant and the rights and obligations evidenced hereby shall inure to
the benefit of and be binding upon the successors of the Company, provided that neither the Company (except in connection with
a sale of the Company or substantially all of the assets of the Company or a merger involving the Company) nor the Holder may assign
this Warrant without the prior written consent of the other party.

 

(g)            
Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the
Company and the Holder.

 

    	 

    	 

    

  

(h)            
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.

 

(i)              
Headings. The headings used in this Warrant are for convenience of reference only and shall not, for any purpose,
be deemed a part of this Warrant.

 

[Signature page follows.]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be executed by its officer thereunto duly authorized.

 

Dated: May 8, 2015

 

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

 

    	 

    	 

    

 

NOTICE OF EXERCISE

 

To:Rock Creek Pharmaceuticals, Inc.

 

(1)The undersigned
hereby elects to purchase ______________ Warrant Shares of Rock Creek Pharmaceuticals, Inc. pursuant to the terms of the attached
Warrant. Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the attached Warrant.

 

(2) The undersigned
intends that payment of the Exercise Price shall be made as:

 

		£	a “Cash Exercise” with respect to ______________ Warrant Shares; and/or

		£	a “Cashless Exercise” pursuant to Section 2(c) of the Warrant with respect to
______________ Warrant Shares (only if permitted pursuant to Section 2(c)).

 

(3) In the event
that the undersigned has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto,
the undersigned tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any. Payment
shall take the form of lawful money of the United States.

 

(4)Please issue a
certificate or certificates representing said Warrant Shares in the name of the undersigned. The Warrant Shares shall be delivered
to the following:

_______________________________

_______________________________

_______________________________

 

(5)Accredited Investor/Qualified
Institutional Buyer. The undersigned is an “accredited investor” as defined in Regulation D under the Securities Act
of 1933, as amended.

 

	 	PURCHASER
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	Dated:

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