Document:

Exhibit

	
		
	Exhibit 10.1

	 

	 

	Deferred Stock Unit Award Agreement

	with 13 Directors

	 

	 

	 

	Form of Deferred Stock Unit Award Agreements made with the following directors of Cullen/Frost Bankers, Inc.

	 
	 

	1.
	Carlos Alvarez

	2.
	Chris M. Avery

	3.
	Cynthia J. Comparin

	4.
	Samuel G. Dawson

	5.
	Crawford H. Edwards

	6.
	David J. Haemisegger

	7.
	Jarvis V. Hollingsworth

	8.
	Karen E. Jennings

	9.
	Richard M. Kleberg III

	10.
	Charles W. Matthews

	11.
	Ida Clement Steen

	12.
	Graham Weston

	13.
	Horace Wilkins, Jr.

	 

	All of the above agreements are substantially identical in all material respects, except as to the dates of the agreements and the parties thereto.

	 

Cullen/Frost Bankers, Inc. 
2015 OMNIBUS INCENTIVE PLAN (the "Plan") 
Deferred Stock Unit Award Agreement
This Award Agreement sets forth the terms and conditions of an Award of Deferred Stock Units (“DSUs”) granted to you under the 2015 OMNIBUS INCENTIVE PLAN (the "Plan") as of [•].
1.The Plan.  This Award is made pursuant to the Plan, the terms of which are incorporated in this Award Agreement.  Capitalized terms used in this Award Agreement that are not defined in this Award Agreement have the meanings as used or defined in the Plan. References in this Award Agreement to any specific Plan provision shall not be construed as limiting the applicability of any other Plan provision.  The Award is subject to all terms and provisions of the Plan as well as the terms and provisions of this Award Agreement.
2.Award.    Subject to the terms and provisions of this Agreement and the Plan, Cullen/Frost Bankers, Inc. ("Cullen/Frost") hereby awards you as of the date hereof [•] ([•]) Deferred Stock Units.  A DSU is an unfunded and unsecured promise of Cullen/Frost to deliver (or cause to be delivered) to you on the Delivery Date (as defined below), one Share for each DSU.  Until such delivery, you have only the rights of a general unsecured creditor and no rights as a shareholder of Cullen/Frost.  
3.Delivery.  
(a)In General.  Except as provided below in this Paragraph 3 and under Paragraph 9 hereof, the “Delivery Date” shall be the date when you experience a separation from service with Cullen/Frost.  For purposes of this Award Agreement, a “separation from service” shall have the same meaning as ascribed to such term under Section 409A and the applicable regulations thereunder, applying all default provisions thereunder. 
(b)Death.  If you die before the Delivery Date, the Shares underlying your then-outstanding DSUs shall be delivered to the representative of your estate as soon as practicable after the date of death and after such documentation as may be requested by the Committee is provided to the Committee.  
4.Dividend Equivalent Rights.  Before the delivery of Shares pursuant to this Award Agreement, at or as soon as practicable after the time of distribu-tion of any regular cash dividend paid by Cullen/Frost in respect of the Common Stock, you shall be entitled to receive an amount in cash or other property equal to such regular cash dividend payment as would have been made in respect of the Shares underlying this Award that have not yet been delivered, as if such Shares had been actually delivered. Each Dividend Equivalent Right shall be subject to the provisions of Article 18 of the Plan.
5.Non-transferability.  Except as may otherwise be provided in this paragraph or as otherwise may be provided by the Committee, the limitations set forth in Section 14.1 of the Plan shall apply to this Award.  Any purported transfer or assignment in violation of the provisions of this Paragraph or of Section 14.1 of the Plan shall be void.  The Committee may adopt procedures pursuant to which you may transfer some or all of your DSUs for no consideration to a person described in Section 14.2 of the Plan.
6.Successors and Assigns of Cullen/Frost.  The terms and conditions of this Award Agreement shall be binding upon and shall inure to the benefit of Cullen/Frost and its successors and assigns. 
7.Amendment.   The Committee reserves the right at any time to amend the terms and conditions set forth in this Award Agreement in any respect in accordance with Article 3 of the Plan, and the Board may amend the Plan in any respect in accordance with Article 21 of the Plan. Notwithstanding the foregoing and Sections 21.2 and 21.4 of the Plan, no such amendment shall materially adversely affect your rights and obligations under this Award Agreement without your consent (or the consent of your estate, if such consent is obtained after your death), except that the Committee reserves the right to accelerate the delivery of the Shares, provided such acceleration would not subject you to additional tax under Section 409A.  Any amendment of this Award Agreement shall be in writing signed by an authorized member of the Board or any other person or persons authorized by the Board.
8.Governing Law.  THIS AWARD SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

9.Compliance of Award Agreement and Plan With Section 409A.  
(a)     References in this Award Agreement to “Section 409A” refer to Section 409A of the Code, including any amendments or successor provisions to that Section and any regulations and other administrative guidance thereunder, in each case as they may be from time to time amended or interpreted through further administrative guidance.  This Award Agreement and the Plan provisions that apply to this Award are intended and shall be construed to comply with Section 409A (including, where applicable, the requirements applicable to and the conditions for exemption from treatment as a “deferral of compensation” or “deferred compensation” as those terms are defined in the regulations under Section 409A (“409A deferred compensation”), whether by reason of short-term deferral treatment or other exceptions or provisions).  The Committee shall have full authority to give effect to this intent. To the extent necessary to give effect to this intent, in the case of any conflict or potential inconsistency between the provisions of the Plan and this Award Agreement, the provisions of this Award Agreement shall govern, and in the case of any conflict or potential inconsistency between this Paragraph 9 and the other provisions of this Award Agreement, this Paragraph 9 shall govern.  
(b)     Except as provided below, delivery of Shares shall be made within 90 days after the Delivery Date.
Notwithstanding the foregoing, if you are determined to be a “specified employee” upon the Delivery Date, delivery of the Shares underlying your Award shall be made on the first day of the seventh month following the Delivery Date.
(c)     Notwithstanding any provisions of this Award Agreement or the Plan to the contrary, to the extent necessary to comply with Section 409A, any securities, other Awards or other property that Cullen/Frost may deliver in respect of your DSUs shall not have the effect of deferring delivery or payment, income inclusion, or a substantial risk of forfeiture, beyond the date on which such delivery, payment or inclusion would occur or such risk of forfeiture would lapse, with respect to the Shares that would otherwise have been deliverable (unless the Committee elects a later date for this purpose in a manner otherwise consistent with Section 409A, including, to the extent applicable, the subsequent election provisions of Section 409A(a)(4)(C) of the Code and Treasury Regulations section 1.409A-2(b)).
(d)     Notwithstanding the timing provisions of Paragraph 3(b), the delivery of Shares referred to therein shall be made within 90 days after the date of death.
(e)     Notwithstanding any provision of Paragraph 4 or Article 18 of the Plan to the contrary, the Dividend Equivalent Rights with respect to each of your outstanding DSUs shall be paid to you within the calendar year in which occurs the date of distribution of any regular cash dividends paid by Cullen/Frost in respect of a Share the record date for which occurs on or after the date of grant. The payment shall be in an amount (less applicable withholding) equal to such regular dividend payment as would have been made in respect of the Shares underlying such outstanding DSUs.
(f)    Delivery of Shares in respect of this Award may be made, if and to the extent elected by the Committee, later than the Delivery Date or other date or period specified hereinabove (but, in the case of any Award that constitutes 409A deferred compensation, only to the extent that the later date is permitted under Section 409A).
10.Headings.  The headings in this Award Agreement are for the purpose of convenience only and are not intended to define or limit the construction of the provisions hereof.

IN WITNESS WHEREOF, Cullen/Frost and you have caused this Award Agreement to be duly executed and delivered.
Date:                
CULLEN/FROST BANKERS, INC.

 ______________________________
 [•], Chairman    

 
Accepted and Agreed:

____________________________   
[•], DirectorNEITHER
THIS SECURITY NOR THE SHARES OF COMMON STOCK ISSUABLE UPON ITS CONVERSION HAVE BEEN REGISTERED UNDER EITHER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, OFFERED FOR SALE,
TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES
UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.

 

	Principal
    Amount: $815,217.39	Issue
    Date: July 19, 2019
	Purchase
    Price: $750,000.00	 

 

SENIOR
CONVERTIBLE PROMISSORY NOTE

 

FOR
VALUE RECEIVED, Cardax, Inc., a Delaware corporation (the “Company”), hereby promises to pay to the order of
_______________, or its registered assigns (the “Holder”), or shall have paid pursuant to the terms
hereunder, the principal sum of $815,217.39 on June 30, 2020 (the “Maturity Date”), unless extended by mutual
written agreement of the parties, or such earlier date as required or permitted hereunder, and to pay interest to the Holder on
the outstanding principal amount in accordance with the provisions hereof. This senior convertible promissory note (the “Note”)
is issued pursuant to the terms of that certain Securities Purchase Agreement (the “Purchase Agreement”) by
and between the Company and the Holder, is senior to all indebtedness for borrowed funds of the Company, and may be prepaid or
converted into common stock of the Holder, par value $0.001 per share (the “Common Stock”) as set forth herein.
The Company acknowledges that the principal amount of this Note exceeds its purchase price and that such excess is an original
issue discount of eight percent (8%), which shall be fully earned and charged to the Company upon the execution of this Note,
and shall be paid to the Holder as part of the outstanding principal amount set forth in this Note. By acceptance of this Note,
each party agrees to be bound by the applicable terms of the Purchase Agreement. Capitalized terms not otherwise defined herein
shall have the meanings set forth in the Purchase Agreement.

 

The
following terms shall apply to this Note:

 

Article
I. MANNER OF PAYMENT

 

1.1
Method of Payment. All payments hereunder shall be made in lawful money of the United States of America no later than 5:00
PM on the date on which such payment is due by check, certified check payable to the Holder, or by wire transfer of immediately
available funds to the Holder’s account at a bank specified by the Holder in writing to the Company from time to time.

 

1.2
Business Day Convention. Whenever any amount expressed to be due by the terms of this Note is due on any day that is not
a business day, the same shall instead be due on the next succeeding business day. As used in this Note, the term “business
day” shall mean any day except any Saturday, any Sunday, any day that 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.

 

Article
II. INTEREST

 

2.1
Interest Rate. Except as otherwise provided herein, the outstanding principal amount of the Note shall bear interest at
a rate (the “Interest Rate”) of eight percent (8%) per annum from the date hereof and shall continue on the
outstanding principal amount of the Note until paid or converted in full in accordance with the provisions hereof.

 

    	 	 	 

    	 

    

 

2.2
Interest Payments. The Company shall pay interest in cash to the Holder (i) monthly in arrears, on or prior to the 10th
calendar day of each month, beginning on the first such date after the Issue Date, (ii) on each Conversion Date (as to that
principal amount then being converted, less any such interest amount then being converted), (iii) on each Repayment Date (as to
that principal amount then being paid), and (iv) on the Maturity Date (each such date, an “Interest Payment Date”).

 

2.3
Interest Calculations. Interest shall be calculated on the basis of a year of 365/366 days, as the case may be, and the
actual number of days elapsed. Interest shall accrue on the Issue Date but shall not accrue on any Conversion Date (as to that
principal amount then being converted), any Repayment Date (as to that principal amount then being redeemed), or on the Maturity
Date.

 

2.4
Default Interest. Upon an Event of Default (as defined in Section 6.1), the Interest Rate shall increase to twelve
percent (12%) per annum from the date thereof until cured or waived.

 

2.5
Interest Rate Limitation. If at any time and for any reason whatsoever, the interest rate payable on the Note shall exceed
the maximum rate of interest permitted to be charged by the Holder to the Company under applicable law, such interest rate shall
be reduced automatically to the maximum rate of interest permitted to be charged under applicable law. That portion of each sum
paid attributable to that portion of such interest rate that exceeds the maximum rate of interest permitted by applicable law
shall be deemed a voluntary prepayment of principal.

 

Article
III. CONVERSION

 

3.1
Method of Conversion. This Note may be converted into shares (the “Conversion Shares”) of Common Stock
as provided below.

 

(a)
Optional Conversion. At any time after the Issue Date until this Note is no longer outstanding, this Note shall be convertible,
in whole or in part, into shares of Common Stock at the Conversion Price (as defined below), at the option of the Holder, at any
time and from time to time. The Holder shall effect conversions by delivering to the Company a Notice of Conversion, the form
of which is attached hereto as Exhibit I (each, a “Notice of Conversion”), specifying therein
the outstanding principal amount of this Note, plus at the Holder’s option, any accrued and unpaid interest thereon, to
be converted and the date on which such conversion shall be effected (such date, a “Conversion Date”). If no
Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is
deemed delivered hereunder.

 

(b)
Mandatory Conversion. The entire outstanding principal amount of this Note, plus at the Holder’s option, any accrued
and unpaid interest thereon, shall be automatically convertible into shares of Common Stock at the Conversion Price (as defined
below), upon the closing of any equity financing (in one transaction or series of related transactions) of the Company with aggregate
gross proceeds of at least $5,000,000.00 (a “Qualified Financing”), wherein the date of such closing, in which
such aggregate gross proceeds have been received, shall be considered the “Conversion Date” under this Note.

 

    	 	2	 

    	 

    

 

3.2
Conversion Price. The conversion price (the “Conversion Price”) per share of Common Stock in effect
on any Conversion Date shall be equal to $0.12, subject to adjustment as provided below.

 

(a)
Adjustment Upon Stock Split. If at any time while this Note is outstanding, the Company: (i) subdivides outstanding shares
of Common Stock into a larger number of shares, (ii) combines (including by way of a reverse stock split) outstanding shares of
Common Stock into a smaller number of shares, or (iii) issues, in the event of a reclassification of shares of the Common Stock,
any shares of capital stock of the Company, then the Conversion Price shall be equitably adjusted. Any adjustment made pursuant
to this Section 3.2(a) shall become effective immediately after the effective date of the subdivision, combination, or
re-classification.

 

(b)
Adjustment Upon Qualified Financing. If at any time while this Note is outstanding, the Company closes a Qualified Financing,
then the Conversion Price shall be equal to the lower of the Conversion Price then in effect or a 25% discount to the price of
Common Stock sold in the Qualified Financing. Any adjustment made pursuant to this Section 3.2(b) shall become effective
upon the closing of the Qualified Financing.

 

(c)
Adjustment Upon Dilutive Issuance. If at any time while this Note is outstanding, the Company issues (i) Common Stock at
a price per share that is lower than the Conversion Price then in effect, or (ii) any securities convertible into Common Stock
at a price per share (after giving effect to consideration payable upon purchase and upon conversion) that is lower than the Conversion
Price then in effect (each of the foregoing, with the exception of any Excepted Issuances as defined in the Purchase Agreement,
a “Dilutive Issuance”), then the Conversion Price shall be adjusted to such lower price. Any adjustment made pursuant
to this Section 3.2(c) shall become effective upon such Dilutive Issuance.

 

(d)
Adjustment Upon Event of Default. If at any time while this Note is outstanding, an Event of Default exists (as defined
in Section 6.1), then the Conversion Price shall be equal to the lower of the Conversion Price then in effect or a 25%
discount to the volume-weighted average price of the Common Stock for the 20 trading days prior to the Conversion Date, wherein
“trading day” shall mean any day on which the Common Stock is tradable on the OTCQB or on the principal securities
exchange or other securities market on which the Common Stock is then being traded.

 

(e)
Warrant Exercise Price Parity. If the Conversion Price is adjusted as provided in this Section 3.2, then the exercise
price of the Warrant issued pursuant to the terms of the Purchase Agreement shall be adjusted to equal the adjusted Conversion
Price.

 

3.3
Mechanics of Conversion.

 

(a)
Conversion Shares Issuable Upon Conversion. The number of Conversion Shares issuable upon a conversion hereunder shall
be determined by the quotient obtained by dividing (x) the outstanding principal amount of this Note to be converted, plus at
the Holder’s option, any accrued and unpaid interest thereon to be converted, by (y) the Conversion Price.

 

(b)
No Fractional Shares Upon Conversion. No fractional shares shall be issued upon the conversion of this Note. As to any
fraction of a share that the Holder would otherwise be entitled to upon such conversion, the Company shall at its election, either
pay a cash adjustment in an amount equal to such fraction multiplied by the Conversion Price or round up to the next whole share.

 

(c)
Delivery of Certificate Upon Conversion. On the Conversion Date, or promptly thereafter, the Company shall issue and deliver
or cause to be issued and delivered a certificate or certificates representing the Conversion Shares.

 

    	 	3	 

    	 

    

 

(d)
Surrender of Note Upon Conversion. To effect conversions hereunder, the Holder shall not be required to physically surrender
this Note to the Company unless the entire outstanding principal amount of this Note, plus all accrued and unpaid interest thereon,
is to be converted. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Note and
accrued and unpaid interest thereon, in an amount equal to the applicable conversion, and all rights with respect to the portion
of this Note being so converted shall forthwith terminate except the right to receive the Conversion Shares, as provided herein.
The Holder and the Company shall maintain records showing the principal and interest amount(s) converted and the date of such
conversion(s). In the event of any dispute or discrepancy, the records of the Company shall be controlling and determinative in
the absence of manifest error. The Holder, and any assignee by acceptance of this Note, acknowledge and agree that, by reason
of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount
of this Note may be less than the amount stated on the face hereof.

 

(e)
Authorized Shares. The Company shall reserve from its authorized and unissued Common Stock a sufficient number of shares,
free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note. The Company represents
that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable.

 

Article
IV. PREPAYMENT

 

4.1
Prepayment. Notwithstanding anything to the contrary contained in this Note, the Company may prepay the amounts outstanding
hereunder pursuant to the following terms and conditions:

 

(a)
At any time while this Note is outstanding, the Company shall have the right, exercisable on not less than five (5) trading days
prior written notice (a “Prepayment Notice”) to the Holder, to prepay the Note (outstanding principal and accrued
interest), in whole or in part, without penalty.

 

(b)
Notwithstanding the Prepayment Notice, upon receipt of such notice and prior to the prepayment date specified by the Company in
the Prepayment Notice, the Holder may elect to convert any outstanding portion of the Note, including any accrued interest, by
submitting a Notice of Conversion to the Company as set forth in this Note, provided the Conversion Price is $0.12, subject to
adjustments for stock splits and similar events as provided in this Note.

 

Article
V. CERTAIN COVENANTS

 

5.1
Borrowings. So long as the Company shall have any obligation under this Note, the Company shall not, without the Holder’s
written consent, create, incur, assume guarantee, endorse, contingently agree to purchase, or otherwise become liable upon the
obligation of any person, firm, partnership, joint venture, or corporation, except by the endorsement of negotiable instruments
for deposit or collection, or suffer to exist any liability for borrowed money that is senior or pari passu to this Note,
except for borrowings, the proceeds of which shall be used to repay this Note.

 

5.2
Sale or Disposition of Assets. So long as the Company shall have any obligation under this Note, the Company shall not,
without the Holder’s written consent, sell, lease, or otherwise dispose of all or substantially all of its assets outside
the ordinary course of business unless the proceeds of any disposition of its assets shall be used to repay this Note.

 

5.3
Non-Circumvention. The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate or
Articles of Incorporation or Bylaws, or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement,
dissolution, issuance 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 Note, and will at all times in good faith carry out all the provisions of this Note and take all action
as may be required to protect the rights of the Holder.

 

    	 	4	 

    	 

    

 

Article
VI. EVENTS OF DEFAULT

 

6.1
Events of Default. The occurrence of any of the following events shall constitute an “Event of Default”:

 

(a)
Failure to Pay Principal or Interest. The Company fails to pay the principal hereof or interest thereon when due on this
Note and such non-payment continues for a period of fifteen (15) days.

 

(b)
Failure to Deliver Conversion Shares. The Company fails to issue and deliver or cause to issue and deliver the Conversion
Shares to the Holder for a period of fifteen (15) days from the Conversion Date, provided that, an Event of Default shall not
occur under this Section 6.1(b) if the Company shall have delivered proper issuance instructions for the Conversion Shares
to its stock transfer agent prior to such date.

 

(c)
Breach of Covenants. The Company breaches any material covenant or other material term or condition contained in this Note
or any other Transaction Documents and such breach continues for a period of fifteen (15) days.

 

(d)
Breach of Representations or Warranties. Any representation or warranty of the Company made in this Note or any other Transaction
Documents shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time
will have) a material adverse effect on the rights of the Holder with respect to this Note or any other Transaction Documents,
and such breach continues for a period of fifteen (15) days.

 

(e)
Bankruptcy. Bankruptcy, insolvency, reorganization, or liquidation proceedings, or other proceedings, voluntary or involuntary,
for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Company or any
subsidiary of the Company; or the Company admits in writing its inability to pay its debts generally as they mature, provided
that, any disclosure of the Company’s ability to continue as a “going concern” shall not be an admission that
the Company cannot pay its debts as they become due; or the Company or any subsidiary of the Company shall make an assignment
for the benefit of creditors or commence proceedings for its dissolution, or apply for or consent to the appointment of a receiver
or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed
for the Company or for a substantial part of its property or business without its consent and shall not be discharged within sixty
(60) days after such appointment; or any dissolution, liquidation, or winding up of Company or any substantial portion of its
business.

 

(f)
Change of Control. The occurrence after the date hereof of any of (a) an acquisition by an individual or legal entity or
“group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether through
legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of 50% of the voting securities
of the Company, other than in connection with an underwritten public offering, (b) the Company consummates a merger or similar
transaction, after giving effect to such transaction, the stockholders of the Company immediately prior to such transaction own
less than 50% of the aggregate voting power of the Company or the successor entity of such transaction, or (c) the Company sells
or transfers all or substantially all of its assets and the stockholders of the Company immediately prior to such transaction
own less than 50% of the aggregate voting power of the acquiring entity immediately after the transaction, (d) a replacement at
one time or within a two year period of more than half of the members of the Board of Directors, if not approved by a majority
of the Board of Directors, (e) David G. Watumull and David M. Watumull shall both have been terminated by the Company as Chief
Executive Officer and Chief Operating Officer other than for cause, or (f) the execution by the Company of an agreement to which
the Company is a party or by which it is bound, providing for any of the events set forth in clauses (a) through (e) above

 

    	 	5	 

    	 

    

 

(g)
Judgments. Any money judgment, writ, or similar process shall be entered or filed against the Company or any subsidiary
of the Company or any of its property or other assets for more than $500,000, and shall remain unvacated, unbonded, or unstayed
for a period of one-hundred eighty (180) days unless otherwise consented to by the Holder, which consent will not be unreasonably
withheld.

 

(h)
Delisting of Common Stock. The Company shall fail to maintain the listing of the Common Stock on the OTCQB or on the principal
securities exchange or other securities market on which the Common Stock is then being traded, and such delisting continues for
a period of fifteen (15) days.

 

6.2
Remedies Upon Event of Default. Upon an Event of Default, interest on this Note shall accrue pursuant to Section 2.4,
and the outstanding principal amount of this Note, plus accrued and unpaid interest, shall become, at the Holder’s election,
immediately due and payable in cash. In lieu of cash payment, the Holder may elect to receive from time to time all or part of
the outstanding principal amount of this Note, plus accrued and unpaid interest, in Conversion Shares pursuant to Section 3.2(d).
Such acceleration may be rescinded and annulled by the Holder at any time prior to payment hereunder and the Holder shall have
all rights as a holder of the Note until such time, if any, as the Holder receives full payment pursuant to this Section 6.2.
No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

[signature
page follows]

 

    	 	6	 

    	 

    

 

IN
WITNESS WHEREOF, Company has caused this Note to be signed in its name by its duly authorized officer as of the date first above
written.

 

	 	CARDAX, INC.
	 	 	 
	 	By:
    	 
	 	Name:
    	 
	 	Title:
    	                     

 

    	 	7	 

    	 

    

 

EXHIBIT
I

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert $_________________ principal amount of the Note (defined below) together with $________________
of accrued and unpaid interest thereto, totaling $_____________ into that number of shares
of Common Stock of Cardax, Inc., a Delaware corporation (the “Company”), to
be issued pursuant to the conversion of the Note as set forth below, according to the conditions of the convertible promissory
note of the Company dated as of July 19, 2019 (the “Note”), as of the date written below. No fee will be charged
to the Holder for any conversion, except for transfer taxes, if any. This Notice of Conversion is irrevocable unless otherwise
agreed by the Company.

 

Delivery
instructions:

 

	 	[  ]
    	The
    Company shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the
    undersigned or its nominee with DTC through its Deposit Withdrawal At Custodian system (“DWAC Transfer”), provided
    that such shares are eligible for deposit.
	 	 	 
	 	 	Name
    of DTC Prime Broker:__________________________________________________
	 	 	DTC
    Participant Number:____________________________________________________
	 	 	Account
    Number:_________________________________________________________

 

	 	[  ]
    	The
    undersigned hereby requests that the Company issue the number of shares of Common Stock set forth below (which numbers are
    based on the Holder’s calculation attached hereto) in the name(s) and form specified immediately below or, if additional
    space is necessary, on an attachment hereto:
	 	 	 
	 	 	Name:___________________________________________________________________
	 	 	Address:_________________________________________________________________
	 	 	Form:
    [  ] Physical Certificate [  ] Book Entry

 

	Date
    of Conversion:	_____________
	 	 
	Applicable
    Conversion Price:	$____________
	 	 
	Number
    of Shares of Common Stock to be Issued	 
	Pursuant
    to Conversion of the Note:	_____________
	 	 
	Amount
    of Principal Balance Due Remaining	 
	Under
    the Note after this Conversion:	$____________
	 	 
	Accrued
    and Unpaid Interest Remaining:	$____________

 

	 	 
	[Name
    of Holder]	 
	 	 	 
	By:	          	 
	Name:
    	 	 
	Title:
    	 	 
	Date:

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