Document:

COMMON
STOCK AND WARRANT PURCHASE AGREEMENT

 

This
Common Stock and Warrant Purchase Agreement, dated as of [            
], 2016 (this “Agreement”), is entered into by and among RespireRx Pharmaceuticals Inc., (the “Company”),
a corporation incorporated in the state of Delaware, and the undersigned persons and entities listed on the schedule of investors
attached hereto as Schedule I (the “Investors”). This Agreement is expected to be one of several like
agreements, collectively the “Common Stock and Warrant Purchase Agreements.”

 

The
Company and each of the Investors hereby agree as follows:

 

1.
The Common Stock. 

 

(a)
Authorization of the Issuance of the Common Stock and Warrants. The Company has authorized the issuance and sale of up
to $3,000,000.00 of Common Stock and Warrants in units comprised of (i) one share of the Company’s Common Stock, par value
$0.001 (“Common Stock”), and (ii) one warrant to purchase one additional share of the Company’s Common
Stock (as amended, restated or otherwise modified from time to time pursuant to Section 7, “Warrant”), which
are being sold together. The Warrants shall be in substantially the form set out in Exhibit A hereto and represent the
right to purchase one share of Common Stock during the Warrant exercise period at the Warrant exercise price per share of Common
Stock. References to an “Exhibit” or “Schedule” are references to an Exhibit or Schedule attached to this
Agreement unless otherwise specified. References to a “Section” are references to a Section of this Agreement unless
otherwise specified.

 

(b)
Issuance of Common Stock and Warrants. At each Closing provided for in Section 1(c) in respect of a particular Investor,
on the terms and subject to the conditions hereof, the Company agrees to issue and sell to such Investor, and such Investor agrees
to purchase from the Company, shares of Common Stock and Warrants equal in number to the investment amount (“Investment
Amount”) set forth opposite the respective Investor’s name on Schedule I divided by the aggregate purchase
price for (i) one share of Common Stock and (ii) one Warrant to purchase one additional share of Common Stock (“Unit
Purchase Price”). The Unit Purchase Price shall be $[ ], which is 100 percent of the simple average of the four weekly
VWAPs (Volume Weighted Average Prices) as reported by OTC IQ for the Company’s Common Stock, par value $0.001, for the four
full trading weeks ending on Friday prior to the initial closing (adjusted as appropriate for the 1 for 325 reverse stock split
effective at the close of business on September 1, 2016 with a first trading day of September 2, 2016) and shall be the same Unit
Purchase Price for all Closings (as defined below). The Warrants shall have a cash and a cashless exercise provision and shall
be exercisable at 110% percent of the Unit Purchase Price which is $[ ] per share. The obligations of the Investors to purchase
the Common Stock and Warrants are several and not joint obligations and no Investor shall have any liability to any Person for
the performance or non-performance of any obligation by any other Investor hereunder. The aggregate Investment Amounts for the
purchase of Common Stock and Warrants hereunder shall not exceed $3,000,000.00.

 

(c)
Closings; Use of Proceeds. The sale and purchase of the Common Stock and Warrants to be purchased by the Investors shall
take place at one or more closings (each a “Closing” and collectively, the “Closings”) to
be held at such places and times as the Company and the applicable Investors may determine (each a “Closing Date”
and collectively “Closing Dates”). At each Closing, the Company will deliver to each of the applicable Investors
the Common Stock and the Warrants to be purchased by such Investor dated the date of the Closing and registered in such Investor’s
name, against receipt by the Company of such Investor’s Investment Amount from the escrow agent for the offering, for the
account of the Company by wire transfer of immediately available funds in accordance with the Company’s and the placement
agent’s (“Placement Agent”) instructions. The Company may conduct additional Closings at the Company’s
option in the Company’s and Placement Agent’s sole discretion to be held at such places and Closing Dates as the Company,
the Placement Agent and the Investors participating in such Closings may determine. The proceeds from the sale of the Common Stock
and Warrants shall be used for costs and expenses of the Company in connection with research and development, general and administrative
purposes, and working capital. The final Closing shall be no later than October 31, 2016 unless extended until December 31, 2016.

 

    	 

    	 

    

 

2.
Representations and Warranties of the Company. The Company represents and warrants to each Investor that, except
as set forth on Schedule II hereto:

 

(a)
Due Incorporation, Qualification. The Company (i) is a corporation duly organized, validly existing and in good standing
under the laws of its jurisdiction of organization; (ii) has the power and authority to own, lease and operate its properties
and carry on its business as now conducted; and (iii) is duly qualified, licensed to do business and in good standing as a foreign
corporation in each jurisdiction where such qualification or license is required by law, other than those jurisdictions as to
which the failure to be so qualified or in good standing could not reasonably be expected to have a material adverse effect on
the Company and its subsidiaries taken as a whole.

 

(b)
Authority; Enforceability. The execution, delivery and performance by the Company of this Agreement and each Warrant issued
hereunder (collectively, the “Transaction Documents”) and the consummation of the transactions contemplated
hereby and thereby (i) are within the corporate power of the Company and (ii) have been duly authorized by all necessary corporate
action on the part of the Company. Each Transaction Document executed by the Company has been duly executed and delivered by the
Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with
its terms, except as limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting
the enforcement of creditors’ rights generally and general principles of equity (regardless of whether such enforceability
is considered in a proceeding in equity or at law).

 

(c)
Non-Contravention. The execution and delivery by the Company of the Transaction Documents executed by the Company and the
performance and consummation of the transactions contemplated thereby do not (i) violate the Company’s Articles of Incorporation,
Certificate of Incorporation, Bylaws or other formation or charter documents, as applicable (as amended, the “Charter
Documents”), (ii) violate any material judgment, order, writ, decree, statute, rule or regulation applicable to the
Company; (iii) result in the breach of any material provision of or in the acceleration of, or entitle any other person to accelerate
(whether after the giving of notice or lapse of time or both), any material mortgage, indenture, agreement, instrument or contract
to which the Company is a party or by which it is bound; or (iv) result in the creation or imposition of any lien or encumbrance
upon any property, asset or revenue of the Company under any material agreement or instrument to which the Company is bound.

 

(d)
Litigation. As of the date of the initial Closing, no actions (including, without limitation, derivative actions), suits,
proceedings or investigations are pending or, to the knowledge of the Company, threatened in writing against the Company or the
Company’s subsidiaries, if any, at law or in equity in any court or before any other governmental authority.

 

(e)
Title. The Company and the Company’s subsidiaries, if any, own and have good and marketable title in fee simple absolute
to, or a valid leasehold interest in, all their respective real properties and good title to their other respective assets and
properties. Such assets and properties are subject to no liens or encumbrances.

 

    	 	2	 

    	 

    

 

(f)
Intellectual Property. The Company and the Company’s subsidiaries, if any, own or possess sufficient legal rights
to all patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information, processes and other
intellectual property rights necessary for its business as now conducted and as proposed to be conducted, without any conflict
with, or infringement of, the rights of others. Since March 22, 2013, each employee of the Company has executed, or will execute,
a confidential information and invention assignment agreement in favor of the Company. Since March 22, 2013, the Company has entered
into, or intends to enter into, an agreement containing appropriate confidentiality and invention assignment provisions in favor
of the Company with each consultant to the Company that has or will have access to the Company’s intellectual property.

 

(g)
Debt for Borrowed Money. As of the date of this Agreement, the Company does not have any outstanding debt for borrowed
money, other than as disclosed on Schedule II.

 

3.
Representations and Warranties of Investors. Each Investor, for that Investor alone, represents and warrants to
the Company upon the acquisition of Common Stock and Warrants as follows:

 

(a)
Binding Obligation. Such Investor has full legal capacity, power and authority to execute and deliver this Agreement and
to perform its obligations hereunder. This Agreement and the Transaction Documents constitute valid and binding obligations of
such Investor, enforceable in accordance with their terms, except as limited by bankruptcy, insolvency, reorganization, moratorium
or other similar laws relating to or affecting the enforcement of creditors’ rights generally and general principles of
equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

(b)
Securities Law Compliance. Such Investor has been advised that the Common Stock and the Warrants and the underlying securities
have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state
securities laws and, therefore, cannot be resold unless they are registered under the Securities Act and applicable state securities
laws or unless an exemption from such registration requirements is available. Such Investor has not been formed solely for the
purpose of making this investment and is purchasing the Common Stock and Warrants to be acquired by such Investor hereunder for
its own account for investment, not as a nominee or agent, and not with a view to, or for resale in connection with, the distribution
thereof. Investor has no present intention of selling, granting any participation in, or otherwise distributing the same and Investor
does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer, grant any participation in
or otherwise distribute all or any part of the Common Stock or Warrants. Such Investor has such knowledge and experience in financial
and business matters that such Investor is capable of evaluating the merits and risks of such investment, is able to incur a complete
loss of such investment without impairing such Investor’s financial condition and is able to bear the economic risk of such
investment for an indefinite period of time. Such Investor is an accredited investor as such term is defined in Rule 501 of Regulation
D under the Securities Act or such investor, while not an accredited investor, is able to make all other representations in this
Section 2(b). Each Investor further represents that such Investor has had the opportunity to (i)
evaluate the Company and its business prospects, (ii) review the Company’s filings with the Securities and Exchange Commission
(“SEC”) (iii) ask questions of management, (iv) consult with its respective legal and/or tax advisors, and (v) that
it has the financial ability to bear the risk of loss of its entire investment and any periods of illiquidity. If such Investor
is one of up to 35 non-accredited investors such non-accredited investor similarly represent that such non-accredited investor
has had the opportunity to: (i) evaluate the Company and its business prospects, (ii) review the Company’s filings with
the SEC, (iii) ask questions of management, (iv) consult with its respective legal and/or tax advisors, and (v) that such non-accredited
investor has the financial ability to bear the risk of loss of its entire investment and any periods of illiquidity.

 

    	 	3	 

    	 

    

 

(c)
Source of Funds. Each Investor severally represents that, as to each source of funds (each a “Source”)
to be used by such Investor to pay the purchase price of the Common Stock and Warrants to be purchased by such Investor hereunder,
the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of the Employee Retirement
Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time
in effect.

 

4.
Conditions to Closing of the Investors. Each Investor’s obligations at the applicable Closing with respect
to such Investor, are subject to the fulfillment, on or prior to the applicable Closing Date, of all of the following conditions:

 

(a)
Representations and Warranties. The representations and warranties made by the Company in Section 2 hereof, in each
case except as modified by Schedule II, shall have been true and correct when made, and shall be true and correct in all
material respects on the applicable Closing Date.

 

(b)
Governmental Approvals and Filings. Except for any notices required or permitted to be filed after the applicable Closing
Date with certain federal and state securities commissions, the Company shall have obtained all governmental approvals required
in connection with the lawful sale and issuance of the Common Stock and Warrants.

 

(c)
Legal Requirements. On the date of the applicable Closing, the sale and issuance by the Company, and the purchase by the
applicable Investors, of the Common Stock and Warrants shall be legally permitted by all laws and regulations to which such Investors
or the Company are subject.

 

(d)
Transaction Documents. The Company shall have duly executed and delivered to the Investors the following documents: (i)
this Agreement and (ii) the appropriate number of shares of Common Stock and Warrants issued hereunder on the date of the applicable
Closing.

 

5.
Conditions to Obligations of the Company. The Company’s obligation to issue and sell the Common Stock and
Warrants at the applicable Closing with respect to each Investor, is subject to the fulfillment, on or prior to the applicable
Closing Date, of all of the following conditions:

 

(a)
Representations and Warranties. The representations and warranties made by the applicable Investors in Section 3 hereof
shall be true and correct when made, and shall be true and correct on the applicable Closing Date.

 

(b)
Legal Requirements. On the date of the applicable Closing, the sale and issuance by the Company, and the purchase by the
applicable Investors, of the Common Stock and Warrants shall be legally permitted by all laws and regulations to which such Investors
or the Company are subject.

 

(c)
Transaction Documents. With respect to the obligation to sell and issue the Common Stock and Warrants to any Investor,
such Investor shall have duly executed and delivered to the Company (i) this Agreement and (ii) an acceptance by such Investor
of the applicable Common Stock and applicable Warrants issued hereunder to such Investor on the date of the applicable Closing.

 

    	 	4	 

    	 

    

 

6.
Disclosures.

 

(a)
Brokers and Finder’s Fees. At the Company’s sole discretion, the Company may pay (i) a cash placement agent
fee, brokerage commission, finder’s fee or similar payment of up to 10% of the aggregate of all Unit Purchase Prices to
any qualified referral source, which may be an affiliate of the Company, to which it can legally make such payment, in the form
of cash, as well as (ii) a warrant fee in the form of a warrant or warrants (“Placement Agent Warrants”), exercisable
into up to 10% of that number of shares of Common Stock issued (but not the Warrants or shares of Common Stock underlying the
Warrants). Such Placement Agent Warrants shall be exercisable at 110% of the Unit Purchase Price (which is the same exercise price
as the Warrants purchased by the Investors) for each share for which the Placement Agent Warrant is exercised and shall expire
on the same expiration date as the Warrants purchased by the Investors. The Placement Agent Warrants shall have a cashless exercise
provision. Placement Agent Warrants may be issued to designees of the qualified referral source upon request by the qualified
referral source, as may be agreed by the Company in its sole discretion, subject to applicable securities laws. Officers, directors,
managers, employees, affiliates and associated persons of the Company, and affiliates of any of the foregoing qualified referral
sources, are eligible to invest as Investors in the Common Stock and Warrants, and are eligible to, and may, receive fees, directly
or indirectly (including, without limitation, fees in respect of such person or persons’ investments in the Common Stock
and Warrants).

 

(b)
Conflict of Interest. Aurora Capital LLC shall be a qualified referral source pursuant to Section 6(a) above. Aurora Capital
LLC and certain of its members, managing members, officers directors, associated persons or employees either previously or by
virtue of becoming an Investor, or by virtue of receiving fees or allocation of fee described in Section 6(a) above in this or
prior offerings, may be or may become direct or indirect shareholders or note holders or option holders, or warrant owners of
the Company or may be officers or directors of the Company. Specifically, but not by way of limitation, both Arnold S. Lippa and
Jeff Eliot Margolis are indirect owners of member interests of Aurora Capital LLC, members of the Board of Directors of the Company,
officers of the Company and direct or indirect shareholders of the Company.

 

(c)
Arm’s Length Negotiation. The Company has not set the Unit Purchase Price through an arms-length negotiation with
any Investor or Investor representative. The Company believes the price at which the Common Stock and Warrants are being offered
appropriately reflects economic realities under the Company’s current circumstances. However, there can be no assurances
that the Common Stock and Warrants are not worth substantially less than the price at which they are being sold.

 

(d)
Legal Counsel. Each Investor hereby represents and warrants and that it has consulted with legal counsel of its choosing,
or has had sufficient opportunity to consult with legal counsel of its choosing, in respect of the terms and conditions of this
Agreement and the applicable Common Stock and Warrants.

 

    	 	5	 

    	 

    

 

7.
Miscellaneous.

 

(a)
Waivers; Amendments. Except as otherwise expressly provided in the Warrants (with respect to any Warrant only), any provision
of this Agreement and the Warrants may be amended, waived or modified only upon the written consent of the Company and Investors
holding more than 50% of the aggregate outstanding Investment Amount (a “Majority in Interest of Investors”);
provided however, that no such amendment, waiver or consent shall reduce the Investment Amount of an Investor, in each case without
such Investor’s written consent. Any amendment or waiver effected in accordance with this paragraph shall be binding upon
all of the parties hereto and all Warrant holders. Notwithstanding the foregoing, this Agreement may be amended to add a party
as an Investor hereunder in connection with any subsequent Closing without the consent of any other Investor.

 

(b)
Nature of Investment. For the avoidance of doubt, the parties hereto acknowledge and agree that the payment of the Investment
Amount to the Company by an Investor in respect of any Common Stock (but not in respect of any Warrant) will be deemed to be an
equity investment in the Common Stock of the Company.

 

(c)
Governing Law. This Agreement and all actions arising out of or in connection with this Agreement shall be governed by
and construed in accordance with the laws of the State of New York, without regard to the conflicts of law provisions of the State
of New York or of any other state.

 

(d)
Survival. The representations, warranties, covenants and agreements made herein shall survive the execution and delivery
of this Agreement.

 

(e)
Successors and Assigns. Subject to the restrictions on transfer described in Section 6(f) below, the rights and
obligations of the Company and the Investors shall be binding upon and benefit the successors, assigns, heirs, administrators
and transferees of the parties.

 

(f)
Assignment. The rights, interests or obligations hereunder and under the Warrants may not be assigned, by operation of
law or otherwise, in whole or in part, by the Company without the prior written consent of a Majority in Interest of Investors.
The rights, interests or obligations hereunder and under the Warrants may not be assigned by any Investor without the prior written
consent of the Company.

 

(g)
Entire Agreement. This Agreement together with the other Transaction Documents constitute and contain the entire agreement
among the Company and Investors and supersede any and all prior agreements, negotiations, correspondence, understandings and communications
among the parties, whether written or oral, respecting the subject matter hereof.

 

(h)
Notices. All notices, demands, consents, or other communications hereunder shall in writing and faxed, mailed or delivered
to each party as follows: (i) if to a Investor, at such Investor’s address or facsimile number set forth in the Schedule
of Investors attached as Schedule I, or at such other address as such Investor shall have furnished the Company in writing
in accordance with this paragraph, or (ii) if to the Company, at such address or fax number set forth on the signature pages hereto,
or at such other address or facsimile number as the Company shall have furnished to the Investors in writing in accordance with
this paragraph. All such communications will be deemed effectively given the earlier of (i) when received, (ii) when delivered
personally, (iii) one business day after being delivered by facsimile (with receipt of appropriate confirmation), (iv) one business
day after being deposited with an overnight courier service of recognized standing or (v) four days after being deposited in the
U.S. mail, first class with postage prepaid.

 

    	 	6	 

    	 

    

 

(i)
Expenses. Each of the Company and the Investors will bear their own respective expenses associated with the negotiation,
execution and delivery of this Agreement and the Common Stock and Warrants.

 

(j)
Only Company Liable. In no event shall any stockholder, officer, director or employee of the Company be liable for any
amounts due or payable pursuant to any Transaction Document.

 

(k)
Severability. If any provision of this Agreement shall be judicially determined to be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

(l)
Headings. Headings used in this Agreement have been included for convenience and ease of reference only, and will not in
any manner influence the construction or interpretation of any provision of this Agreement.

 

(m)
Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but
all of which together will constitute one and the same agreement. Facsimile copies of signed signature pages will be deemed binding
originals.

 

(Signature
Page Follows)

 

    	 	7	 

    	 

    

 

The
parties have caused this Agreement to be duly executed and delivered by their proper and duly authorized officers as of the date
and year first written above.

 

COMPANY:

 

RESPIRERX
PHARMACEUTICALS INC.

a
Delaware corporation

 

	By:
    	 	 
	Name:	Jeff
Eliot Margolis	 
	Title:
    	Vice
    President, Treasurer and Secretary	 

 

Address
for notices:

RespireRx
Pharmaceuticals Inc.

Attention: Jeff Eliot Margolis

Vice
President, Treasurer and Secretary

126
Valley Road, Suite C

Glen
Rock, NJ 07452

(phone):
917-834-7206

(fax):
415-887-7814

 

    	 

    	 

    

 

INVESTOR:

 

[INVESTOR
NAME (IF ENTITY)]

 

	By: 	 	(signature)	 

 

	Print Name: 	 	 	 
	 	 	 	 
	Print Title: 	 	 	 

  

    	 

    	 

    

 

SCHEDULE
I

SCHEDULE
OF INVESTOR(S)

 

	Investor Name, Contact Name, Address, Phone, Fax	 	Aggregate 
Investment 
Amount	 	 	Closing Date	 
		 	$		 	 	 	[_____], 2016	

 

    	 

    	 

    

 

SCHEDULE
II

EXCEPTIONS
TO REPRESENTATIONS AND WARRANTIES

 

Convertible
Notes

 

The
Company is obligated under Convertible Notes issued from November 5, 2014 through and including February 2, 2015, aggregating
principal amounts totaling $579,500 and bearing interest of 10% per annum and maturing on September 15, 2016. As of September
15, 2016 there was $276,000 of original principal plus accrued interest of 53,261 for a total of $329,261 due. As of September
30, 2016, outstanding notes and accrued interest became due and payable. In October 2016, as reported on Forms 8-K, certain noteholders
notified the Company that such noteholders’ notes were in default changing the interest rate from 10% to 12% on such defaulted
notes.

 

Notes

 

The
Company is obligated under two demand promissory notes of $25,000 each for a total of $50,000 to James S. Manuso, the Company’s
President and CEO and Vice Chairman and Arnold S. Lippa, the Company’s Chief Scientific Officer and Chairman. Each note
is payable on demand and bears interest at a rate equal to 10% per annum, with any accrued but unpaid interest added to principal
at the end of each year that the balance is outstanding. Each note grants a security interest in the assets of the Company, subject
to certain conditions as set forth therein. These demand promissory notes are substantially similar to the notes described in
the paragraph below and the Company anticipates filing a Current Report on Form 8-K with the Securities and Exchange Commission
on or about September 28, 2016 describing these notes.

 

The
Company is obligated under two demand promissory notes of $52,600 each for a total of $105,200 to James S. Manuso, the Company’s
President and CEO and Vice Chairman and Arnold S. Lippa, the Company’s Chief Scientific Officer and Chairman. Each note
is payable on demand and bears interest at a rate equal to 10% per annum, with any accrued but unpaid interest added to principal
at the end of each year that the balance is outstanding. Each note grants a security interest in the assets of the Company, subject
to certain conditions as set forth therein. These demand promissory notes are described in a Form 8-K filed with the Securities
and Exchange Commission on February 3, 2016.

 

Samyang
Documents

 

Permitted
liens include the liens granted to Samyang Optics Co., Ltd. (now known as SY Corporation, Co., Ltd.) (“Samyang”)
and its successors and assigns under that certain Securities Purchase Agreement, dated as of June 25, 2012, between the Company
and Samyang and any documents delivered in connection therewith (as amended, restated or otherwise modified from time to time,
collectively, the “Samyang Documents”). The indebtedness pursuant to the Samyang Documents and all transactions
contemplated in connection with the Samyang Documents are permitted hereunder. The Company is in default of certain of the Samyang
Documents, as more fully set forth in the Company’s filings with the U.S. Securities and Exchange Commission.

 

Other
Short Term Notes Payable

 

Other
short term notes payable at September 15, 2016 consisted of premium financing agreements with respect to various insurance policies.

 

Pending
or Threatened Litigation or Claims

 

In
the opinion of management of the Company, adequate provision has been made in the Company’s condensed consolidated financial
statements as of June 30, 2016 for the items listed below.

 

    	 

    	 

    

 

By
letter dated November 11, 2014, a former director of the Company, who joined the Company’s Board of Directors on August
10, 2012 in conjunction with the Pier transaction and who resigned from the Company’s Board of Directors on September 28,
2012, asserted a claim for unpaid consulting compensation of $24,000. The Company has not received any further communications
from the former director with respect to this matter.

 

By
letter dated February 5, 2016, the Company received a demand from a law firm representing a professional services vendor of the
Company alleging that approximately $146,000 is due and owing for unpaid services rendered and requesting arbitration of the claim.

 

By
e-mails dated July 21, 2016 and subsequently, the Company received demands from an investment banking consulting firm that represented
the Company in 2012 in conjunction with the Pier transaction alleging that $225,000 is due and owing for unpaid investment banking
services rendered.

 

Trade
Accounts

 

From
time to time, the Company has obligations in respect of trade accounts payable.

 

    	 

    	 

    

  

EXHIBIT
A

 

FORM
OF WARRANT

 

NEITHER
THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY APPLICABLE STATE SECURITIES LAW, AND NO INTEREST HEREIN OR THEREIN MAY BE SOLD, DISTRIBUTED, ASSIGNED, OFFERED, PLEDGED
OR OTHERWISE TRANSFERRED UNLESS (A) THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES
LAWS COVERING ANY SUCH TRANSACTION, (B) THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF SUCH SECURITIES (CONCURRED
IN BY COUNSEL FOR THE COMPANY) THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION, OR (C) THE COMPANY OTHERWISE SATISFIES ITSELF
THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION.

 

WARRANT
TO PURCHASE COMMON STOCK

 

RespireRx
Pharmaceuticals Inc.

 

	Warrant
    Number: [_______]	 	Initial
    Exercise Date: [      ], 2016

 

THIS
WARRANT TO PURCHASE COMMON STOCK (the “Warrant”) certifies that, for value received, [______________] or its/his/her
permitted assigns (the “Holder”) is entitled, upon the terms and conditions hereof, and subject to the limitations
on exercise hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and
on or prior to 5:00 p.m. New York time on December 31, 2021 (the “Termination Date”) but not thereafter, to
subscribe for and purchase from RespireRx Pharmaceuticals Inc., a Delaware corporation (the “Company”), [ ]
shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price of each
share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b), and may be exercised
on a cashless basis, as set forth in Section 2(c).

 

Section
1.Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that
certain Common Stock and Warrant Purchase Agreement, dated as of [_____], 2016 (the “Purchase Agreement”),
among the Company and the Investors. This is one of the “Warrants” referred to in the Purchase Agreement.

 

    	 	1	 

    	 

    

 

Section
2.Exercise and Call Provision.

 

a) Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or
times on any Business Day (as defined below) on or after the Initial Exercise Date and on or before the Termination Date by
delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the
registered Holder at the address of the Holder appearing on the books of the Company) of a duly completed and executed
facsimile or electronic mail copy of the Notice of Exercise form annexed hereto (the “Notice of
Exercise”). The Company shall use reasonable best efforts to not affect the exercise of any portion of this
Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, pursuant to the terms and
conditions of this Warrant and any such exercise shall be null and void and treated as if never made, to the extent that
after giving effect to such exercise, the Holder together with any parties with whom or with which the Holder’s
ownership interest must be aggregated (“Attribution Parties”), collectively would beneficially own in
excess of 4.99% (the “Maximum Percentage”) of the shares of Common Stock outstanding immediately after
giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock
beneficially owned by the Holder and the other Attribution Parties shall include the number of shares of Common Stock held by
the Holder and all other Attribution Parties plus the number of shares of Common Stock issuable upon exercise of this
Warrant with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock
which would be issuable upon (A) exercise of the remaining, unexercised portion of this Warrant beneficially owned by the
Holder or any of the other Attribution Parties and (B) exercise or conversion of the unexercised or unconverted portion of
any other securities of the Company (including, without limitation, any convertible notes or convertible preferred stock or
warrants) beneficially owned by the Holder or any other Attribution Party subject to a limitation on conversion or exercise
analogous to the limitation contained in this Section 2(a). For purposes of this Section 2(a), beneficial ownership shall be
calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934 (the “1934 Act”) and
the rules promulgated thereunder. For purposes of determining the number of outstanding shares of Common Stock the Holder may
acquire upon the exercise of this Warrant without exceeding the Maximum Percentage, the Holder may rely on the number of
outstanding shares of Common Stock as reflected in (x) the Company’s most recent Annual Report on Form 10-K, Quarterly
Report on Form 10-Q, Current Report on Form 8-K or other public filing with the SEC, as the case may be, (y) a more recent
public announcement by the Company or (z) any other more recent written notice by the Company or the Transfer Agent, if any,
setting forth the number of shares of Common Stock outstanding (the “Reported Outstanding Share Number”).
If the Company receives a Notice of Exercise from the Holder at a time when the actual number of outstanding shares of Common
Stock is less than the Reported Outstanding Share Number, the Company shall (i) notify the Holder in writing of the number of
shares of Common Stock then outstanding and, to the extent that such Notice of Exercise would otherwise cause the
Holder’s beneficial ownership, as determined pursuant to this Section 2(a), to exceed the Maximum Percentage, the
Holder must notify the Company of a reduced number of Warrant Shares to be acquired pursuant to such Notice of Exercise (the
number of shares by which such purchase is reduced, the “Reduction Shares”) and (ii) as soon as reasonably
practicable, the Company shall return to the Holder any exercise price paid by the Holder for the Reduction Shares. For any
reason at any time, upon the written or oral request of the Holder, the Company shall within one (1) Business Day confirm
orally and in writing or by electronic mail to the Holder the number of shares of Common Stock then outstanding. In any case,
the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of
securities of the Company, including this Warrant, by the Holder and any other Attribution Party since the date as of
which the Reported Outstanding Share Number was reported. In the event that the issuance of shares of Common Stock to the
Holder upon exercise of this Warrant results in the Holder and the other Attribution Parties being deemed to beneficially
own, in the aggregate, more than the Maximum Percentage of the number of outstanding shares of Common Stock (as determined
under Section 13(d) of the 1934 Act and the rules promulgated thereunder), the number of shares so issued by which the
Holder’s and the other Attribution Parties’ aggregate beneficial ownership exceeds the Maximum Percentage (the
“Excess Shares”) shall be deemed null and void and shall be cancelled ab initio, and the Holder shall not
have the power to vote or to transfer the Excess Shares. As soon as reasonably practicable after the issuance of the Excess
Shares has been deemed null and void, (i) the Company shall return to the Holder the exercise price paid by the Holder for
the Excess Shares, and (ii) the Holder shall provide any documentation reasonably requested by the Company to effect such
cancellation on the records of the Company and its transfer agent. Upon delivery of a written notice to the Company, the
Holder may from time to time increase or decrease the Maximum Percentage to any other percentage as specified in such notice;
provided that (i) any such increase in the Maximum Percentage will not be effective until the sixty-first (61st)
day after such notice is delivered to the Company, and (ii) any such increase or decrease will apply only to the Holder and
the other Attribution Parties and not to any other holder of Warrants issued in connection with the Purchase Agreement that
is not an Attribution Party of the Holder. For purposes of clarity, the shares of Common Stock issuable pursuant to the terms
of this Warrant in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any
purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the 1934 Act. No prior inability to exercise this
Warrant pursuant to this paragraph shall have any effect on the applicability of the provisions of this paragraph with
respect to any subsequent determination of exercisability. The provisions of this paragraph shall be construed and
implemented in a manner otherwise than in strict conformity with the terms of this Section 2(a) to the extent necessary to
correct this paragraph or any portion of this paragraph which may be defective or inconsistent with the intended beneficial
ownership limitation contained in this Section 2(a) or to make changes or supplements necessary or desirable to properly give
effect to such limitation. The limitation contained in this paragraph may not be waived and shall apply to a successor holder
of this Warrant. Within three (3) Business Days (as defined below) following the date of exercise as aforesaid, the Holder
shall deliver the aggregate Exercise Price (as defined below) for the shares specified in the applicable Notice of Exercise
by wire transfer in immediately available funds or cashier’s check drawn on a United States bank in immediately
available funds. A “Business Day” means any day other than a Saturday or Sunday or any day that national
commercial banks in New York City, New York are authorized or required to close or any day that the NADSAQ stock markets or
any other nationally recognized stock markets are closed. 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) Business Days of the date 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 Company, either directly or through its representative, shall
maintain, or cause to be maintained, records showing the number of Warrant Shares purchased and the date of such
purchases, which records shall be deemed to be accurate absent manifest error. The Company shall deliver any objection to any
Notice of Exercise within two (2) Business Days of actual 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.

 

    	 	2	 

    	 

    

 

b) Exercise
Price. The exercise price per share of the Common Stock under this Warrant initially shall be $[ ] per share (110% of
Unit Purchase Price as defined in the Purchase Agreement), subject to adjustment hereunder (including, without limitation,
under Sections 2 and 3 hereof) (as adjusted, the “Exercise Price”).

 

c) Cashless
Exercise. This Warrant may be exercised at any time permitted hereunder, subject to the Limitation set forth in Section
2(a), by means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the
number of Warrant Shares equal to the quotient obtained by the following formula:

 

	 	(A-B)*(X)	 
	 	(A)	 

 

Where:

 

(A)
= the Closing Price on the Trading Day immediately preceding the date of such election (“Trading Day” means any Business
Day, or, if the Common Stock of the Company is traded on an exchange, the OTC BB or other quotation system, then any Business
Day on which such exchange, the OTC Bulletin Board or quotation system is open for trading the Common Stock of the Company);

 

(B)
= the Exercise Price of this Warrant, as adjusted; and

 

(X)
= the number of Warrant Shares issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of
a cash exercise rather than a cashless exercise.

 

As
used herein, “Closing Price”, shall mean the first of the following clauses that applies: (1) if, at the time
of any such calculation, the Common Stock is listed or quoted on the American Stock Exchange, or the New York Stock Exchange,
or the NASDAQ Market, the NASDAQ Capital Market or the Archipelago Exchange, or OTC Markets QB or OTX Markets QX, the Closing
Price shall be the closing or last sale price reported for the last business day immediately preceding the date of any such calculation;
(2) if, at the time of any such calculation, the Common Stock is quoted on the OTC Bulletin Board or listed in the “Pink
Sheets” published by the National Quotation Bureau Inc. or a similar agency or organization succeeding to its function or
reporting prices, the Closing Price shall be the average of the closing prices reported for the last five (5) days during which
the Common Stock actually traded and for which a closing price is available immediately preceding the date of any such calculation,
or (3) in all other cases, the Closing Price of a share of Common Stock shall be the price determined by an independent
appraiser selected in good faith by the Holder and reasonably acceptable to the Company.

 

 d) Mechanics of Exercise.

 

i. Delivery
of Certificates Upon Exercise. Certificates for shares issuable upon the exercise hereof shall be transmitted by the
transfer agent of the Company to the Holder by crediting the account of the Holder’s broker with the Depository Trust
Company through its Deposit Withdrawal Agent Commission (“DWAC”) system if the Company is a participant in
such system and such shares are eligible for legend removal, and otherwise by physical delivery to the address specified by
the Holder in the Notice of Exercise on the date that is no more than three (3) Business Days after the latest of (A) the
delivery to the Company of the Notice of Exercise, (B) surrender of this Warrant (if required), and (C) payment of the
aggregate Exercise Price as set forth above (such date, the “Warrant Share Delivery Date”). The Warrant
Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed
to have become a holder of record of such shares for all purposes, upon delivery of Notice of Exercise, irrespective of the
date such Warrant Shares are credited to the Holder’s DTC account or the date of delivery of the certificates
evidencing such Warrant Shares (as the case may be) in the case of a cashless exercise and, if a cash exercise, then subject
to payment to the Company of the Exercise Price in good funds by either certified check, wire transfer or other similar
payment method and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(v) prior to the issuance of
such shares, having been paid.

 

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, at the time of delivery of the certificate or certificates representing 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 transmit, or to cause the transfer agent of the Company to transmit, to the Holder a
certificate or the certificates representing 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. 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, at its election, either pay a cash adjustment in respect of such final fraction in an amount
equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

 

    	 	3	 

    	 

    

 

v. Charges,
Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue
or transfer 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 or in such name or names as may
be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be
issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the
Assignment Form attached hereto (the “Assignment Form”) duly executed by the Holder and the Company may
require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental
thereto.

 

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

 

vii. Acquisitions.
If at any time while this Warrant is outstanding there is an Acquisition (as defined below) in which the Company is not the
surviving entity, then the Holder shall receive from any surviving entity or successor to the Company, in exchange for this
Warrant, a new warrant in the surviving entity or successor to the Company substantially in the form of this Warrant and with
an exercise price adjusted to reflect the nearest equivalent exercise price of common stock (or other applicable equity
interest) of the surviving entity that would reflect the economic value of this Warrant, but in the surviving entity. An
“Acquisition” shall mean the closing of a merger, share exchange, consolidation, acquisition of all or
substantially all of the assets or stock, reorganization or liquidation of the Company that results in the stockholders of
the Company immediately prior to such transaction owning less than 50% of the voting capital stock of the Company (or its
successor or parent corporation) immediately after the transaction or, in the case of a sale of assets or liquidation, the
Company owning after the transaction less than substantially all of the assets owned by the Company prior to the transaction
(other than an issuance of equity securities for the primary purpose of raising capital) or any other event that constitutes
a “Capital Change” under the Company’s Second Restated Certificate of Incorporation, as it may be amended,
restated or otherwise modified from time to time. The Holder shall execute all documentation required to be executed by the
Company or the acquirer or successor of the Company in connection with the Acquisition, including, without limitation,
escrow, indemnification and other similar agreements. Subject to and to the extent permitted by applicable law, the Company
will endeavor to notify the Holder of any proposed Acquisition at least 30 days prior to the date of any Acquisition (or such
shorter period as reasonably practicable under the circumstances); provided that the failure to so notify the Holder
shall not in any way impair the Acquisition.

 

e.
Call Provision. If at any time prior to the expiration of, or the exercise by the Holder of this Warrant the closing price
of Company’s common stock is 200% or more than the Unit Purchase Price for five (5) consecutive trading days (the “Trading
Price Condition”), the Company shall have the right to call, redeem and cancel this Warrant on the tenth day after written
notice by the Company to the Holder and payment to the Holder in cash of $0.001 per Warrant Share. To effectively exercise this
call provision, such written notice of intent to exercise the call provision under this Section 2(e) must be provided by the Company
by the close of business on the second trading day following satisfaction of the Trading Price Condition. The Holder may exercise
this Warrant on a cash or cashless basis after written notice by the Company, but before the tenth day after such written notice,
which exercise shall nullify the Company’s right to call, redeem and cancel this Warrant. Failure by the Company to provide
timely notice shall preclude the Company from exercising this call provision with respect to the satisfaction of the Trading Price
Condition over that five (5) consecutive trading day period but shall not preclude the Company from exercising this call provision
with respect to satisfaction of the Trading Price Condition over any other subsequent five (5) consecutive trading days. The Company
may not call, redeem or cancel any portion of this Warrant that may not be exercised during the ten (10) day notification period
pursuant to the restrictions on exercise in Section 2(a).

 

    	 	4	 

    	 

    

 

Section
3.Certain Adjustments.

 

a) Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity
equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of
Common Stock issued by the Company upon exercise of this Warrant and which shall not include any dividends paid-in-kind in
respect to the Series G 1.5% Convertible Preferred Stock), (ii) subdivides outstanding shares of Common Stock into a larger
number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller
number of shares or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company,
then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares
of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator
shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable
upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall
remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date
for the determination of stockholders entitled to receive such dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision, combination or re-classification.

 

b) Calculations.
All calculations under this Section 3 shall be made to the nearest 1/100th of a cent or the nearest 1/100th of a
share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and
outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any)
issued and outstanding.

 

c) Notice
to Holder.

 

i. Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to this Section 3, the Company shall promptly mail
to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of
Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii. Notice
to Allow Exercise by Holder. If (A) the Company shall declare a special nonrecurring cash dividend on or a redemption of
the Common Stock, (B) 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, or (C) the Company shall authorize the
voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, any of the events in Section
3.(c)ii (A), (B) or (C) being an “Event”, 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 (as defined below) of the Company, at least ten (10)
calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) 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 shall be entitled to such dividend,
distributions, redemption, rights or warrants are to be determined or (y) the date on which such Event is expected to become
effective or close, as applicable, 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 Event;
provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity
of the corporate action required to be specified in such notice. The Holder 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.

 

    	 	5	 

    	 

    

 

Section
4.Transfer of Warrant.

 

a) Transferability.
Subject to compliance with any applicable securities laws, the conditions set forth in Section 4(d) hereof, and the
conditions of the Purchase Agreement (including, without limitation, the Company’s prior written consent in accordance
with the Purchase Agreement) pursuant to which this Warrant was purchased, this Warrant and all rights hereunder (including,
without limitation, any registration rights) 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 an Assignment Form 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. The 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 Initial Exercise Date and shall be identical with this Warrant except as to the number of Warrant Shares
issuable pursuant thereto.

 

c) Warrant
Register. The Company shall, either directly or through its representative, record or cause to be recorded, 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, which Warrant Register shall be deemed to be accurate absent manifest
error. The Company may deem and treat the registered 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) Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the
transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the
Securities Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or
manner-of-sale restrictions or current public information requirements pursuant to Rule 144, the Company may require, as a
condition of allowing such transfer, that the Holder or transferee of this Warrant satisfy any other reasonable conditions
established by the Company, including, without limitation, a legal opinion reasonably acceptable to the Company with respect
to such transfer.

 

e) Representation
by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon
any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to
or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable
state securities law, except pursuant to sales registered or exempted under the Securities Act. The Holder acknowledges that
the Warrant Shares will not be registered under the Securities Act of 1933, as amended, or any applicable statute or foreign
securities law, and will therefore not be freely transferable.

 

    	 	6	 

    	 

    

 

Section
5.Miscellaneous.

 

a) No
Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other
rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i).

 

b) 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.

 

c) 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.

 

d) 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 further covenants that its issuance of this Warrant shall constitute full authority to its officers
who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be
necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation,
or of any requirements of the trading market upon which the Common Stock may be listed. The Company covenants 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 and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued,
fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof
(other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

Except
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 reasonably appropriate to protect the rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will (i) 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, (ii) take all such action as may
be necessary or reasonably appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant
Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions
or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform
its obligations under this Warrant.

 

Before
taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or
in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be
necessary from any public regulatory body or bodies having jurisdiction thereof.

 

    	 	7	 

    	 

    

 

e) Jurisdiction.
This Warrant is a contract between the Company and the Holder and its terms shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to be performed in the State of New York, without
giving effect to any choice or conflict of law provision or rule of that or any other jurisdiction. The Company and each
Holder irrevocably consent to the jurisdiction of the United States federal courts and the state courts located in New York
City, in any suit or proceeding based on or arising under this Warrant and irrevocably agree that all claims in respect of
such suit or proceeding may be determined in such courts. The Company and each Holder irrevocably waives the defense of an
inconvenient forum to the maintenance of such suit or proceeding in such forum. The Company further agrees that service of
process upon the Company mailed by first class mail shall be deemed in every respect effective service of process upon the
Company in any such suit or proceeding. Nothing herein shall affect the right of any Holder to serve process in any other
manner permitted by law. The Company agrees that a final non-appealable judgment in any such suit or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on such judgment or in any other lawful manner.

 

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

 

g) Nonwaiver.
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, notwithstanding the fact that all rights
hereunder terminate on the Termination Date.

 

h) Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be
deemed delivered the day after the date sent if sent by overnight courier, the same day sent if sent by facsimile
transmission or email with confirmation of receipt by the Holder, or three (3) days after deposit with the US Postal Service
if sent via certified mail or first class mail if sent to the Holder at the address, facsimile number or email address
provided by the Holder as of the last date on which Holder communicated in writing such contact information to the
Company.

 

i) 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.

 

j) Successors
and Assigns. Subject to applicable securities laws, the provisions and limitations of the Purchase Agreement (including,
without limitation, the Company’s prior written consent in accordance with the Purchase Agreement) and 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. Such successors or permitted assigns of
the Holder shall be deemed to be the Holder for all purposes hereunder. 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. Nothing herein, express or implied, is intended to or shall confer upon any other person any legal or equitable
right, benefit or remedy of any nature whatsoever, under or by reason of this Warrant.

 

    	 	8	 

    	 

    

 

k) Entire
Agreement. This Warrant constitutes the sole and entire agreement of the parties to this Warrant with respect to the
subject matter contained herein, and supersedes all prior and contemporaneous understandings and agreements, both written and
oral, with respect to such subject matter.

 

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

 

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

 

o) Waiver
of Jury Trial. Each party acknowledges and agrees that any controversy which may arise under this Warrant is likely to
involve complicated and difficult issues and, therefore, each such party irrevocably and unconditionally waives any right it
may have to a trial by jury in respect of any legal action arising out of or relating to this Warrant or the transactions
contemplated hereby.

 

(Signature
Page Follows)

 

    	 	9	 

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the ___ day
of _____________, 2016.

 

	 	RespireRx Pharmaceuticals Inc.
	 	 	 
	 	By:	 
	 	Name:	Jeff
    Eliot Margolis
	 	Title:
    	Vice
    President, Treasurer and Secretary

  

    	 	 	 

    	 

    

 

	AGREED AND ACCEPTED:	 
	 	 	 
	[HOLDER]	 
	 	 	 
	Signature:	 	 
	 	 	 
	Name
    (print):	 	 
	 	 	 
	Address:
    	 	 
	 	 	 
	 	 	 
	 	 	 
	Email:
    	 	 
	 	 	 
	Facsimile
    Number: 	 	 

 

    	 	 	 

    	 

    

 

NOTICE
OF EXERCISE

 

To:RespireRx
Pharmaceuticals Inc.

 

(1)
The undersigned, pursuant to the provisions set forth in the attached Warrant No. ______, hereby irrevocably elects to
purchase (check applicable box):

 

[  ]
____________ shares of the Common Stock of RespireRx Pharmaceuticals Inc. covered by such Warrant.

 

(2)
The undersigned herewith makes payment of the full purchase price for such shares at the price per share provided for in such
Warrant. Such payment takes the form of (check applicable box or boxes):

 

[  ]
$__________ in lawful money of the United States; and/or

 

[  ]
pursuant to Section 2(c) of the Warrant being exercised, the cancellation of such portion of such Warrant as is exercisable
for a total of _________ Warrant Shares (using a Closing Price of $_______ per share for purposes of this
calculation).

 

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

 

	 	 	 
	 	 	 
	 	(please
    print or type name and address)	 
	 	 	 
	 	(please
    insert social security or other identifying number)	 

 

The
Warrant Shares shall be delivered to the following:

 

	 	 	 
	 	 	 
	 	 	 
	 	(please
    print or type name and address)	 

 

and
if such number of shares of Common Stock shall not be all the shares evidenced by this Warrant Certificate, that a new Warrant
for the balance of such shares be registered in the name of, and delivered to, Holder.

 

	 		 

 

The
Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery of a certificate to:

 

	 		 
	 	 	 
	 	 	 

 

(4)
Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under
the Securities Act of 1933, as amended (“Reg D”), or is one of less than 35 non-accredited investors that participated
in the exempt private placement pursuant to Rule 506(b) of Reg D.

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity: _________________________________________________________________

 

Signature
of Authorized Signatory of Investing Entity: ___________________________________________

 

Name
of Authorized Signatory: _____________________________________________________________

 

Title
of Authorized Signatory: ______________________________________________________________

 

Date:
_________________________________________________________________________________

 

    	 	 	 

    	 

    

 

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

 

_______________________________________________________________.

 

_______________________________________________________________

 

	 	Dated:
    ______________, _______

 

	 	Holder’s
    Signature:	 	 
	 	 	 	 
	 	Holder’s
    Address:	 	 
	 	 	 	 
	 	 	 	 

 

	Assignee’s
    Signature: 	 	 
	 	 	 
	Company’s
    Signature:	 	 

 

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, and must be guaranteed by a bank or trust company. Officers of corporations and those
acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

 

    	 	 	 

    	 

    

 

SUPPLEMENT
TO COMMON STOCK AND WARRANT 

PURCHASE
AGREEMENT DATED [ ———]

 

This
supplement to the Common Stock and Warrant Purchase Agreement (“SPA”) dated [ ] supplements and amends such SPA and
is incorporated therein.

 

Section
1(b) is amended to read as follows:s

 

(b)
Issuance of Common Stock and Warrants. At each Closing provided for in Section 1(c) in
respect of a particular Investor, on the terms and subject to the conditions hereof, the Company agrees to issue and sell to such
Investor, and such Investor agrees to purchase from the Company, shares of Common Stock and Warrants equal in number to the investment
amount (“Investment Amount”) set forth opposite the respective Investor’s name on Schedule I divided
by the aggregate purchase price for (i) one share of Common Stock and (ii) one Warrant to purchase one additional share of Common
Stock (“Unit Purchase Price”). The Unit Purchase Price shall be $1.42 per unit, shall be the same Unit Purchase
Price for all Closings (as defined below). The Warrants shall have a cash and a cashless exercise provision and shall be exercisable
at 110% percent of the Unit Purchase Price which exercise price is $1.562 per share. The obligations of the Investors to purchase
the Common Stock and Warrants are several and not joint obligations and no Investor shall have any liability to any Person for
the performance or non-performance of any obligation by any other Investor hereunder. The aggregate Investment Amounts for the
purchase of Common Stock and Warrants hereunder shall not exceed $3,000,000.00.

 

In
addition, each Investor shall have an unlimited
number of exchange rights, which are options and not obligations, to exchange such Investor’s entire investment (and not
less than the entire investment) made pursuant to this SPA into subsequent offerings of the Company (“Subsequent Financings”)
until the earlier of: (i) the completion of any number of Subsequent Financings aggregating at least $15 million gross proceeds
to the Company, or (ii) December 30, 2017. At the time of a Subsequent Financing with respect to which the investors in this offering
have an exchange right, they would have the option of either (a) retaining the securities purchased in this offering (or,
if applicable, retaining the securities obtained in exchange therefor via a Subsequent Financing), or (b) exchanging the securities
purchased in this offering (or, if applicable, exchanging the securities obtained in exchange therefor via a Subsequent Financing),
into the next Subsequent Financing (assuming the next Subsequent Financing is one for which an exchange right is available). The
dollar amount (this may also be considered a ratio) used to determine the amount invested or exchanged into the Subsequent Financing
shall be 1.2 times the amount of the original investment as set forth next to such Investor’s name on Schedule I
to the SPA. For clarity, this is essentially 1.2 x the dollars invested this offering become dollars invested in the Subsequent
Financings if (b) above is elected. Such exchange is an option, not an obligatory exchange.

 

To
Section entitled Representations and Warranties of the Company, the following representation, warranty and covenant is added as
Section 2(h):

 

(h)
The Company and the Company’s subsidiaries hereby represent, warranty and covenant that, they have not, and so long as the
Investor continues to have the exchange right provided by Section 1(b) of the SPA, neither the Company, nor its subsidiaries shall
enter into a financing transaction pursuant to Sections 3(a)(9) or 3(a)(10) of the Securities Act of 1933, as amended, or enter
into any equity, debt, convertible or equity-linked securities financing arrangement having full-ratchet anti-dilution provisions
without a floor or that have an indeterminant number and potentially infinite number of shares issuable pursuant to such provisions.

 

    	 	 	 

    	 	 	 

    

 

COMPANY: 

 

RESPIRERX
PHARMACEUTICALS INC.

a
Delaware corporation

 

	By:	 	 
	Name:
    	Jeff
    Eliot Margolis	 
	Title:	Vice
    President, Treasurer and Secretary	 

 

Address
for notices:

RespireRx
Pharmaceuticals Inc.

Attention:
Jeff Eliot Margolis

Vice
President, Treasurer and Secretary

126
Valley Road, Suite C

Glen
Rock, NJ 07452

(phone):
917-834-7206

(fax):
415-887-7814

 

    	 

    	 

    

 

SUPPLEMENT
2 TO COMMON STOCK AND WARRANT 

PURCHASE
AGREEMENT DATED [ ———]

 

This
supplement 2 to the Common Stock and Warrant Purchase Agreement (“SPA”) dated [ ] further supplements and amends such
SPA and is incorporated therein.

 

To
Section entitled Representations and Warranties of the Company, the following representation, warranty and covenant is added as
a second paragraph in Section 2(h):

 

If
the Company violates the representation, warranty and covenant in the immediately preceding paragraph, the Company agrees that
the clause in Section 1(b) describing the dollar amount (that may also be considered a ratio) shall be amended to 1.4 rather than
1.2.

 

COMPANY: 

 

RESPIRERX
PHARMACEUTICALS INC.

a
Delaware corporation

 

	By:
    	 	 
	Name:
    	Jeff
    Eliot Margolis	 
	Title:
    	Vice
    President, Treasurer and Secretary	 

 

Address
for notices:

RespireRx
Pharmaceuticals Inc.

Attention:
Jeff Eliot Margolis

Vice
President, Treasurer and Secretary

126
Valley Road, Suite C

Glen
Rock, NJ 07452

(phone):
917-834-7206

(fax):
415-887-7814

 

    	 	 	 

    	 

    

 

SUPPLEMENT
3 TO COMMON STOCK AND WARRANT 

PURCHASE
AGREEMENT DATED [ --------- ]

 

This
supplement 3 to the Common Stock and Warrant Purchase Agreement (“SPA”) dated [  ] further supplements and amends such
SPA and is incorporated therein.

 

To
Section 1 of the SPA entitled Common Stock, the following new sub-section (d) is added.

 

(d)
Investors shall have unlimited piggy-back registration rights with respect to the Common Stock, and the Common Stock underlying
the Warrants, unless such Common Shares are eligible to be sold without volume limits under an exemption from registration under
any rule or regulation of the SEC that permits the holder to sell securities of the Company to the public without registration.

 

COMPANY:

 

RESPIRERX
PHARMACEUTICALS INC.

a
Delaware corporation

 

	By:
    	 	 
	Name:	Jeff
Eliot Margolis	 
	Title:
    	Vice
    President, Treasurer and Secretary	 

 

Address
for notices:

RespireRx
Pharmaceuticals Inc.

Attention:
Jeff Eliot Margolis

Vice
President, Treasurer and Secretary

126
Valley Road, Suite C

Glen
Rock, NJ 07452

(phone):
917-834-7206

(fax):
415-887-7814Exhibit 10.1

  

MAGNEGAS SYSTEMS PURCHASE AGREEMENT

 

THIS MAGNEGAS SYSTEMS
PURCHASE AGREEMENT (this “Agreement”) is made as of this 30th day of December, 2016 (the “Effective
Date”) by and between MAGNEGAS CORPORATION, a Delaware corporation (“MagneGas”) and TALON
VENTURES & CONSULTING GMBH, a company constituted under the laws of Germany (“TALON”). MagneGas and
TALON are each referred to herein individually as a “Party,” and jointly as the “Parties.”

 

RECITALS

 

A.       MagneGas
is engaged in the business of developing and manufacturing gasification and sterilization equipment that operate with MagneGas’
proprietary technology to generate a proprietary gaseous fuel from certain waste products (the “MagneGas Fuel”).

 

B.       TALON
is a company doing business in Germany with access to a distribution network in Germany for potential marketing of MagneGas Fuel.

 

C.       MagneGas
and TALON have entered into that certain Letter of Intent dated as of August 22, 2016 (the “LOI”), providing
for the sale of the MagneGas Systems (as defined below) to TALON, together with certain cylinders and MagneGas regulators, for
the manufacture and distribution of MagneGas Fuel within a limited Territory (as defined below) and subject to the terms and conditions
described in the Licensing and Distribution Agreement (the “Distribution Agreement”) to be entered into between
MagneGas and TALON.

 

D.       As
a condition to the Distribution Agreement, MagneGas shall sell and TALON shall purchase the MagneGas Systems consisting of a MagneGas
gasification system and a MagneGas sterilization system meeting the specifications described herein.

 

E.       The
purpose of this Agreement is to set forth the terms and conditions upon which MagneGas will sell to TALON and TALON will purchase
the MagneGas Systems from MagneGas, and the respective duties, obligations, and responsibilities of each of the Parties.

 

F.        MagneGas
agrees that all services, warranties and obligations that are owed to TALONwill fully apply to all customers of TALON (or a respective
subsidiary) who have purchased MagneGas equipment (gasification units, sterilization units, periphery). All respective claims shall
be handled directly by MagneGas as manufacturer of the equipment.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally
bound, hereby agree as follows:

 

     

     

    

 

OPERATIVE TERMS AND CONDITIONS

 

1.       DEFINITIONS

 

In addition to any
other term defined elsewhere in this Agreement, the following terms shall have the respective meanings set forth below.

 

1.1       “Affiliate”
means any legal entity that is owned by, owns, or is under common Ownership with a party. "Ownership" means more than
50% of the voting interests of a Party, whether attained through stock or equity ownership or through a contractual arrangement.

 

1.2       “Commissioning”
shall mean the process of deeming a MagneGas System to be operational and successful in producing MagneGas within the specifications
for such system as set forth in this Agreement.

 

1.3       “Confidential
Information” shall have the meaning set forth in Section 12.1.

 

1.4       “Construction
Completion Deadline” shall have the meaning set forth in Section 4.4.

 

1.5       “Distribution
Agreement” shall have the meaning ascribed to that term in the recitals to this Agreement.

 

1.6       First
Installment” shall have the meaning set forth in Section 4.3.

 

1.7       “Force
Majeure Event” shall have the meaning set forth in Section 13.1.

 

1.8       “Gasifier”
shall have the meaning set forth in Section 1.8.

 

1.9       
“Initial Deposit” shall have the meaning set forth in Section 4.2.

 

1.10       “LOI”
shall have the meaning ascribed to this term in the recitals to this Agreement.

 

1.11       “Losses”
shall mean any and all damages, settlement amounts, assessments, fines, dues, penalties and other costs and expenses (including,
without limitation, court costs, interest and reasonable fees of attorneys, accountants and other experts) required to be paid
to third parties with respect to the claim, suit, or action in question by reason of any judgment, order, decree, stipulation or
injunction, or any settlement entered into in accordance with the provisions of this Agreement, together with all documented
out-of-pocket costs and expenses incurred in complying with any judgments, orders, decrees, stipulations and injunctions that arise
from or relate to such claim, suit, or action.

 

1.12       “MagneGas
Fuel” shall mean the fuel manufactured by a MagneGas Gasifier or Sterilization Unit as defined in the Recitals to this
Agreement.

 

    2 

     

    

 

1.13       “MagneGas
Indemnified Party” shall have the meaning set forth in Section 11.2

 

1.14       “MagneGas
Regulators” shall mean the gauges used on the cylinders to regulate fuel flow.

 

1.15       “MagneGas
Systems” shall mean, jointly: (a) a 300KW stationary Gasification Unit manufactured by MagneGas based on technology which
gasifies liquid waste (the Vertical Gasification Gasifier) as specified on Exhibit A (the “Gasifier”),
and (b) a 100KW mobile sterilization Unit - as specified on Exhibit B (the “Sterilization Unit”).

 

1.16       “Mag2”
shall mean the MagneGas Fuel produced with a Gasifier from oil feedstock.

 

1.17       Notice
of Completion” shall have the meaning set forth in Section 4.4.

 

1.18       “Person”
or “person” shall mean any natural person, corporation, partnership, limited liability company, proprietorship,
association, trust, or other legal entity.

 

1.19       “Second
Installment” shall have the meaning set forth in Section 4.3.

 

1.20       “Sterilization
Unit” shall have the meaning set forth in Section 1.8.

 

1.21       “TALON
Indemnified Parties” shall have the meaning set forth in Section 11.1.

 

1.22       “Territory”
shall have the meaning ascribed to such term in the Distribution Agreement.”

 

1.23       Third
Installment” shall have the meaning set forth in Section 4.3.

 

2.       TERM.

 

2.1       Term.
The term of this Agreement will be effective from the date first set forth above and will remain in effect thereafter for one (1)
year from its effective date (the “Term”), provided that certain specified provisions of this Agreement shall
survive the termination of the Term, as indicated herein.

 

2.2       Renewal.
Any renewal terms of this Agreement that may be contemplated or necessary to allow additional time for a party’s performance
hereunder, if any, shall be negotiated by the Parties in their sole discretion.

 

3.       PURCHASE
AND SALE COMMITMENT

 

3.1       Sale
of MagneGas Systems. Subject to the terms and conditions herein, MagneGas will sell to TALON, and TALON will purchase from
MagneGas the following: (a) one Gasifier as identified on Exhibit A, (b) one Sterilization Unit as identified on
Exhibit B, (c) 250-150 cylinders full of Mag2 and (d) 50 MagneGas Regulators.

 

    3 

     

    

 

3.2       Purchase
Price. The purchase price is (a) One Million Seven Hundred Fifty Thousand and NO/100 ($1,750,0000) for the Gasifier, (b) Eight
Hundred Thousand and No/100 Dollars ($800,000.00) for the Sterilization Unit, (c) Ninety-Five Thousand and NO/100 Dollars for the
Mag2 cylinders and (d) Five Thousand and No/100 Dollars ($5,000.00) for the MagneGas Regulators, for a combined total price of
Two Million Six Hundred Fifty Thousand and NO/100 Dollars) (the “Purchase Price”). The Purchase Price is F.O.B. MagneGas’
facility at Company Headquarters in Clearwater, Florida. The Purchase Price does not include any taxes or tariffs that may be imposed
on the transaction and be a cost to TALON.

 

3.3       Delivery
Commitment. Delivery of each MagneGas System will be accepted by TALON at MagneGas’s headquarters in Florida. TALON will
be responsible for arranging and paying for shipment to TALON’s facility in Germany or such other location where TALON will
choose to have the MagneGas Systems installed.

 

4.       DEPOSIT,
PAYMENT AND DELIVERY

 

4.1       Manner
of Payment: Currency. All payments for the Purchase Price of the MagneGas Systems or otherwise in connection therewith shall
be calculated and paid in U.S. Dollars and shall be paid by cash wire transfer to the following account in the name of MagneGas,
to be confirmed by email wire:

 

PNC Bank

 

		FBO:	MagneGas Corporation

11885 44th Street North

Clearwater, FL 33762

 

4.2       Initial
Deposit. A non-refundable deposit of Twenty-Five Thousand and no/100 U.S. Dollars (U.S. $25,000.00) has been paid by TALON
prior to this date and is hereby acknowledged (the “Initial Deposit”).

 

4.3       Payments.
Payment of One Million Three Hundred Fifty Thousand and NO/100 Dollars ($1,350,000) representing the 50% of the combined Purchase
Price of the MagneGas Systems plus the full price of the cylinders and regulators, less the Initial Deposit, shall be due to MagneGas
at its indicated account within 90 days following the execution of this Agreement, (the “First Installment”).
An additional Six Hundred Thirty-Seven Thousand and Five Hundred and NO/100 Dollars ($637,500) shall be paid to MagneGas within
15 business days of TALON’s receipt of written notice from MagneGas certifying that construction of the MagneGas Systems
is 75% complete (approximately 4 to 5 months from receipt of the First Installment (the “Second Installment”).
A third installment of Three Hundred Eighty-Two Thousand and Five Hundred and NO/100 Dollars ($382,500.00) (the “Third
Installment”) shall be due upon final completion of the MagneGas Systems and TALON’s accepting delivery thereof
at the factory (prior to shipping to TALON’s headquarters). A final installment of Two Hundred Fifty-Five Thousand and NO/100
Dollasrs ($255,000.00) is due upon delivery and installation, but in no event later than 20 business days after delivery. Time
is of the essence for any payments under this Agreement and payments hereunder shall be due not later than fiveteen (15) business
days of the due date stated herein. If a payment is not received fiveteen (15) business days after the due date, and is not disputed
in good faith by TALON, MagneGas shall provide written notice to TALON of the payment default, and if not cured within five (5)
business days after receipt of the written notice from MagneGas, it shall be considered a “Payment Breach” and
MagneGas shall not be obligated to commence construction or perform any other duties hereunder until the Payment Breach is cured.
In the event of a Payment Breach, the provisions of Sections 4.4 and 4.5 below shall cease to apply to this Agreement
and MagneGas’s sole obligation will be to complete performance hereunder upon receipt of the delinquent payment. In the event
of such a Payment Breach, this agreement will be deemed terminated and both parties acknowledge no recourse to either party.

 

    4 

     

    

 

4.4       Completion
Deadline and Delivery. MagneGas shall have six (6) months from the payment of the First Installment (due as set forth in Section
3.3. above) to complete manufacture of the Gasifier (the “Construction Completion Deadline”). The MagneGas Systems
shall be deemed to have been completed when MagneGas notifies TALON that it has completed construction of each MagneGas Systems
and has tested it to produce MagneGas (a “Notice of Completion”).

 

4.5       Transfer
of Title/Shipment and Delivery. Title to the MagneGas Systems will transfer to TALON upon payment in full as required in Section
4.3 and upon MagneGas’s issuance of a Notice of Completion. Subject to the provisions of Section 4.6
below, freight, insurance, transportation and all other costs associated with shipment to Talon’s facility shall be borne
solely by TALON, and are not included in the Purchase Price, with MagneGas to be named as an additional insured party under any
insurance policy covering the MagneGas Systems while in transit. Title and risk of loss passes jointly to the Parties upon issuance
of the Notice of Completion and prior to shipment of the MagneGas Systems out of the MagneGas facilities.

 

4.6       Shipping
and Delivery Terms.

 

(i)       The
MagneGas Systems will be packed and shipped in a commercially reasonable manner mutually agreed by the parties, consistent with
industry standards, and in compliance with applicable law. MagneGas shall make all necessary arrangements for shipment of the MagneGas
Systems to the Talon facility, at Talon’s cost and expense, but MagneGas will not be held responsible for delays or costs
related to the shipment of the MagneGas Systems to Germany.

 

(ii)       TALON
will be responsible for bringing all utilities (water, electricity etc.) to the Talon facility where the MagneGas Systems will
be installed. TALON will be responsible for obtaining all required governmental permits and for preparing the site and surrounding
area in its entirety for the delivery and set up of the MagneGas Systems, including ensuring that the site meets the specifications
set forth on Exhibit B. MagneGas will be responsible for providing two technicians, at its sole expense, to assist with
the installation of the MagneGas Systems.

 

    5 

     

    

 

4.7       Future
MagneGas Systems Purchases. MagneGas will sell additional MagneGas Systems (having the same specifications as the MagneGas
Systems purchased and sold hereunder, but subject to the variations specified in this paragraph) to Talon for installation anywhere
within the Territory, at the same price and on the same terms and conditions as set forth in this Agreement, except for price increases
which may be implemented by MagneGas solely to reflect increased cost of labor or materials. The MagneGas Systems to be sold hereby
are subject to changes in configuration or specifications as may be required by applicable regulations or safety standards or requirements
of the gasification system.

 

5.       ADDITIONAL
OBLIGATIONS OF THE PARTIES

 

5.1       Training.
At its sole expense, TALON shall send two of its representatives to MagneGas’s operations in [Tampa, FL] to train with
MagneGas technicians on the proper installation, operation, and maintenance of the Gasifiers (a “Train the Trainer Approach”)
[for a period of up to two (2) continuous weeks]. The cost of such training (except for the travel and lodging costs of the TALON
personnel) is included in the Purchase Price.

 

5.2Installation.
At its sole expense, MagneGas shall provide one technician to travel to the site of installation to assist for up to two weeks
with set up, installation and commissioning of the MagneGas Systems. Upon completion of such period, MagneGas will certify the
MagneGas Systems as operational in accordance with such standards as the parties have accepted as set forth on Exhibit D (the “Commissioning
Date”).

 

5.3       Service
and Repair. MagneGas shall provide a service kit containing the items identified on Exhibits A and B
with each MagneGas Systems delivered to the Talon facility, to support one (1) year of component failures, at no additional cost.

 

5.4       Service
and Repair. MagneGas shall provide a service kit containing the items identified on Exhibit A and B
with the MagneGas Systems delivered to the Facility, to support one (1) year of component failures, at no additional cost.

 

5.5       Compliance
with Law; Licenses and Approvals. Each Party shall comply in all material aspects with all laws, rules, regulations, and other
governmental requirements applicable to such Party’s performance or obligations under this Agreement, and shall obtain and
maintain all material governmental permits, licenses, and consents required in connection therewith. For clarification purposes,
Talon shall be responsible for all permits, licenses, consents and any other compliance relative to the operation of the MagneGas
Systems or use of MagneGas Fuel in the facility and in the Territory.

 

5.6       Independent
Contractors. Neither MagneGas nor TALON is, nor will be any of them be deemed to be, an agent, legal representative, joint
venturer, partner, or employee of the other for any purpose. For avoidance of doubt, neither MagneGas nor Talon will be entitled
to (a) enter into any contracts in the name of or on behalf of each other, (b) pledge the credit of any party other than itself
in any way or hold itself out as having authority to do so, or (c) make commitments or incur any charges or expenses for or in
the name of each other. As to each other, for purposes of this Agreement, MagneGas and TALON shall be independent contractors.

 

    6 

     

    

 

5.7 Transfer
of Rights. TALON will have the right to transfer all rights resulting from this agreement to a subsidiary that will physically
execute the business. This subsidiary must be fully owned by TA or its shareholders.

 

5.8
Customer Claims. MagneGas agrees that all services, warranties and obligations that are owed to TALON will fully apply to
all customers of TALON (or a respective subsidiary) who have purchased MagneGas equipment (gasification units, sterilization units,
periphery). All respective claims shall be handled directly by MagneGas as manufacturer of the equipment.

 

6.       NO
LICENSE GRANTED. The purchase of the MagneGas Systems does not comprise a grant of any license
to TALON to use the name “MagneGas” or to sell or distribute any MagneGas Fuel. Any rights to such a license exist
and are granted only pursuant to the terms of the Distribution Agreement.

 

7.       TERMINATION

 

7.1       Termination
Without Cause. Notwithstanding anything stated herein, this Agreement may be terminated without cause only on the following
terms:

 

(i)       By
either Party, if a court of competent jurisdiction or governmental authority, regulatory, or administrative agency or commission
shall have enacted any law, statute, rule, or regulation, or issued any final and non-appealable order or decree that permanently
restrains, enjoins, or otherwise prohibits either Party from substantially performing under this Agreement; or

 

(ii)       By
either party due to the failure of successful testing of the completed MagneGas Systems.

 

7.2       Termination
For Cause. This Agreement may be terminated for cause on the following terms:

 

(i)       by
either Party if the other Party breaches or fails to comply with any material term, condition, or obligation required to be performed
or complied with by such other Party under this Agreement, and such material breach or failure is not cured within forty-five (45)
days following written notice thereof by the terminating Party;

 

    7 

     

    

 

(ii)       
by either Party if the other Party (a) institutes any insolvency, receivership, or bankruptcy proceedings, or any other proceedings
for the settlement of its debts, (b) has any such proceedings instituted against it, which proceedings are not dismissed or otherwise
resolved in its favor within one hundred and twenty (120) days thereafter, (c) makes a general assignment for the benefit of its
creditors, or (d) is dissolved or permanently ceases to conduct business in the ordinary course; or

 

(iii)       By
MagneGas in the event of a Payment Breach by TALON.

 

7.3       Rights
and Obligations on Expiration or Termination.

 

(i)       In
the event of a Termination for Cause, the terminating Party may also be entitled to damages subject to the limitations of Article
10 and this Section 7.3. To the extent termination is in connection with a Payment Breach, MagneGas may,
at its option, make demand for the sums due and owing and shall retain the Initial Deposit as liquidated damages.

 

(ii)       In
the event of a Termination Without Cause under Section 7.1(i) due to MagneGas’s inability to perform, MagneGas shall promptly
refund all amounts paid it by TALON under this Agreement (subject to retention of the Initial Deposit which is non-refundable).

 

7.4       Survival.
All of the respective obligations, representations and disclaimers of the Parties set forth in this Agreement shall survive the
execution and delivery of this Agreement and the delivery of the MagneGas Systems to the Facility.

 

		8.	REPRESENTATIONS AND WARRANTIES; DISCLAIMER OF ADDITIONAL WARRANTIES; COVENANTS BY TALON

 

8.1       By
Both Parties. Each Party represents and warrants to the other Party that (a) it has the requisite corporate power and authority
to enter into and perform its obligations under this Agreement, (b) it is not a party to any agreement or understanding, and knows
of no law or regulation, that would prohibit it from entering into and performing its obligations under this Agreement, or that
would conflict with this Agreement, and (c) when executed and delivered by it, this Agreement will constitute a legal, valid and
binding obligation of it, enforceable against it in accordance with the terms hereof.

 

8.2       Additional
Warranties of MagneGas. MagneGas additionally represents and warrants to TALON that (a) it owns or has sufficient rights to
manufacture and sell the MagneGas Systems that will be supplied pursuant to this Agreement, (b) title to the MagneGas Systems will
be conveyed to TALON free and clear of any liens or encumbrances, (c) it has sufficient manufacturing capacity and access to sufficient
quantities of raw materials and component parts, materials and ingredients to produce and provide the MagneGas Systems to which
it has committed hereunder, (d) each such MagneGas System is protected by patents issued by the US Patent and Trademark Office
(the “USPTO”) or is otherwise covered by patents pending with the USPTO, and to the best knowledge of MagneGas does
not infringe on the intellectual property of any third party in the United States; (e) such MagneGas Systems, at the time of shipment,
and for a period of one year thereafter, will conform in all material respects with the agreed-upon specifications for such MagneGas
Systems as set forth on Exhibit A and Exhibit B, respectively, (f) such MagneGas Systems shall be fit
for their intended purpose, reasonably safe for use in accordance with the instructions provided to TALON in writing, and free
from any defects in design or manufacturing, and (g) that as of the date hereof the use of the MagneGas Systems to make MagneGas
Fuel complies with the applicable laws and regulations of the United States and Florida, and that MagneGas has provided or made
available to TALON all third party reports received by it certifying or relating to such compliance or to the content of emissions
from the MagneGas Systems during the processing or manufacturing of MagneGas Fuel. MagneGas makes no representation as to the MagneGas
Systems’ compliance with the laws and regulations of any country other than the United States of America, and has not undertaken
to determine whether use of the MagneGas Systems in the Territory is compliant with local laws and regulations. MagneGas also provides
the specific warranties contained in Exhibit D hereto.

 

    8 

     

    

 

8.4       Additional
Warranties of TALON. TALON additionally represents and warrants to MagneGas that neither TALON nor any of its representatives
will intentionally make any oral or written representations which vary materially from the specifications, warranties, or representations
by MagneGas with respect to the MagneGas Systems or the MagneGas Fuel as stated in packaging or written documentation provided
in writing by MagneGas to TALON relating to the MagneGas Systems or MagneGas Fuel. TALON acknowledges that TALON is solely responsible
for ensuring compliance with the laws of the Territory, including, but not limited to, all environmental laws and regulations and
all applicable laws and regulations at the federal, state and local levels in the Territory, during the initial installation of
the MagneGas Systems in Talon’s facility for the manufacture of the MagneGas Fuel. TALON further warrants and covenants that
it will not reverse engineer, grant access to the MagneGas Systems to third parties for the purpose of reverse engineering, or
otherwise misappropriate the MagneGas Systems technology. TALON acknowledges that the foregoing covenant is particularly important
to MagneGas and that MagneGas is relying on this covenant and on the confidentiality provisions of Section 12 hereof
in order to enter into this Agreement. TALON will further promptly notify MagneGas if and when it becomes aware of any apparent
infringement of the MagneGas technology in the Territory.

 

8.5       Disclaimer
of Additional Warranties. EXCEPT AS EXPRESSLY SET FORTH HEREIN, NEITHER. PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES TO THE
OTHER, AND ALL SUCH OTHER WARRANTIES, EXPRESS OR IMPLIED, ARE HEREBY DISCLAIMED.

 

8.6       Warranty
Remedies. IN THE EVENT OF ANY BREACH OF ANY OF THE MAGNEGAS SYSTEMS WARRANTIES CONTAINED HEREIN, TALON MAY REQUIRE THE REPAIR
OR REPLACEMENT OF THE DEFECTIVE MAGNEGAS SYSTEM OR PART, OR RETURN OF THE PRICE PAID BY TALON.

 

    9 

     

    

 

9.       LIMITED
PURCHASE OF GAS. MagneGas agrees for a period of 48 months after delivery and
commissioning of the MagneGas Systems, but no more than
30 days after delivery thereof, that if TALON wants to sell its gas to MagneGas while building the market for MagneGas in the Territory,
TALON will agree to do so at a delivered-to-Magnegas price of $0.36/cubic ft. Additionally, the gas will have to be delivered within
MagneGas’s specifications and in cylinders or containers that conform to US DOT standards and regulations. The parties may
agree to extend the buyback program upon mutually acceptable terms. This paragraph extends to TALON customers (or customers of
a designated Talon subsidiary) who buy MagneGas equipment from TALON.

 

10.       LIMITATIONS
OF LIABILITY

 

10.1       Limitation
on Certain Damages. IN NO EVENT SHALL A PARTY BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL, INDIRECT, PUNITIVE, OR.
CONSEQUENTIAL DAMAGES OF ANY KIND (INCLUDING, WITHOUT LIMITATION, LOST PROFITS, BUSINESS, OR GOODWILL) IN CONNECTION WITH THE MAGNEGAS
SYSTEMS, THE MAGNEGAS FUEL OR ANY OTHER MATTER COVERED BY THIS AGREEMENT, REGARDLESS OF WHETHER SUCH LIABILITY IS BASED ON BREACH
OF CONTRACT, TORT, STRICT LIABILITY, BREACH OF WARRANTY, OR ANY OTHER THEORY, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES. THE FOREGOING LIMITATION OF LIABILITY REFLECTS A DELIBERATE AND BARGAINED FOR ALLOCATION OP RISKS BETWEEN TALON
AND MAGNEGAS AND IS INTENDED TO BE INDEPENDENT OF ANY EXCLUSIVE REMEDIES AVAILABLE UNDER THIS AGREEMENT, INCLUDING ANY FAILURE
OF SUCH REMEDIES TO ACHIEVE THEIR ESSENTIAL PURPOSE.

 

10.2       THE
TOTAL LIABILITY OF MAGNEGAS FOR ANY AND ALL LOSSES AND DAMAGES ARISING OUT OF ANY CAUSE WHATSOEVER (WHETHER SUCH CAUSE BE BASED
IN CONTRACT, NEGLIGENCE, STRICT LIABILITY, OTHER TORT OR OTHERWISE) SHALL BE LIMITED TO ACTUAL OUT-OF-POCKET DAMAGES, INCLUDING
BUT NOT LIMITED TO GOVERNMENTAL FINES, AND IN NO EVENT EXCEED THE PURCHASE PRICE (INCLUDING ROYALTIES PAID, IF ANY) OF THE MAGNEGAS
SYSTEM IN RESPECT TO WHICH SUCH CAUSE ARISES. IN THE EVENT THAT THE LIABILITY FOR LOSS AND/OR DAMAGE ARISES IN CONNECTION WITH
THE MALFUNCTION OF A MAGNEGAS SYSTEMS OR PART THEREOF, AT MAGNEGAS’s OPTION, MAGNEGAS MAY INSTEAD REPAIR OR REPLACE SUCH
PRODUCTS, BUT IN NO EVENT SHALL MAGNEGAS BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES RESULTING FROM ANY PRODUCT
DEFECT.

 

10.3       
IN THE EVENT OF A TERMINATION OF THIS AGREEMENT BY MAGNEGAS DUE TO A FORCE MAJEURE EVENT AS SET OUT IN SECTION 13.1, MAGNEGAS’
SOLE OBLIGATION HEREUNDER AND TALON’S SOLE REMEDY SHALL BE THE RETURN OF THE PURCHASE PRICE.

 

10.4       
Essential Part of the Bargain. The Parties acknowledge that the limitations of liability set forth in this Article
10 are an essential element of this Agreement between the Parties, and that the Parties would not have entered into this
Agreement but for such limitations of liability.

 

    10 

     

    

 

11.       INDEMNIFICATION

 

11.1       Indemnification
by MagneGas. MagneGas shall defend and/or settle any and all third party claims, suits, and actions asserted against TALON,
its Affiliates, or their respective employees, officers, directors, managers, shareholders, members, agents, Affiliates, successors,
and assigns (each, a “TALON Indemnified Party”), to the extent such claims, suits or actions arise from or are
based on (i) any breach by MagneGas of any of its representations, or warranties set forth in Article 8 or (ii) an
actual or alleged claim of infringement or misappropriation of a patent, copyright, trademark or trade secret of any third party
in connection with TALON’s use of the MagneGas Systems. All settlements under this Section 11.1 shall be subject
to discussion with TALON and shall require the prior written consent of both Parties. TALON (and the applicable TALON Indemnified
Parties) shall at all times have the option, at its own expense, to participate in the defense or settlement of the claim, suit,
or action (including, without limitation, through counsel of its own selection). In addition, MagneGas shall indemnify and hold
harmless the TALON Indemnified Parties from and against any and all Losses suffered or incurred by any of them in connection with
any such claims, suits, or actions.

 

11.2       Indemnification
by TALON. TALON shall defend and/or settle any and all third party claims, suits, and actions asserted against MagneGas, its
Affiliates, or their respective its employees, officers, directors, managers, shareholders, members, agents, Affiliates, successors,
and assigns (each, a “MagneGas Indemnified Party”), to the extent such claims, suits or actions arise from or
are based on any breach by TALON of any of its representations or warranties set forth in Article 8 or any material
modification of the MagneGas Systems not approved by MagneGas. All settlements under this Section 11.2 shall be subject
to discussion with MagneGas and shall require the prior written consent of both Parties. MagneGas (and the applicable MagneGas
Indemnified Parties) shall at all times have the option, at its own expense, to participate in the defense or settlement of the
claim, suit, or action (including, without limitation, through counsel of its own selection). In addition, TALON shall indemnify
and hold harmless the MagneGas Indemnified Parties from and against any and all Losses suffered or incurred by any of them in connection
with any such claims, suits, or actions.

 

12.       CONFIDENTIALITY

 

12.1       Confidential
Information. As used in this Agreement, “Confidential Information” means any material or information disclosed
by either Party to the other Party, in writing, orally or by inspection of tangible objects (including, without limitation, material
or information relating to such Party’s research, development, customers, prospective customers, markets, finances, or other
business interests or trade secrets), which is designated in writing as “Confidential,” “Proprietary”
or some similar designation.

 

    11 

     

    

 

12.2       Confidentiality
and Non-Use. Each Party shall treat as confidential all Confidential Information of the other Party, shall not use such Confidential
Information except to exercise its rights and perform its obligations under this Agreement, and shall not disclose such Confidential
Information to any third party, except to its attorneys and other advisors provided that such third party agrees in writing to
abide by restrictions on confidentiality and non-use that are substantially the same as those set forth herein. Without limiting
the foregoing, each Party shall use at least the same degree of care it uses to prevent the disclosure of its own confidential
information of like importance, which care shall be no less than reasonable care, to prevent the disclosure of Confidential Information
of the other Party. Each Party will promptly notify the other Party of any actual or suspected misuse or unauthorized disclosure
of the other Party’s Confidential Information.

 

12.3       Exceptions.
The provisions of this Article 12 shall not apply to material or information that: (a) was in the public domain at
the time it was disclosed or has become in the public domain through no fault of the receiving Party; (b) was known to the receiving
Party, without restriction, at the time of disclosure (other than through a disclosure to the receiving Party by the disclosing
Party prior to the Effective Date), as demonstrated by documentation in existence at the time of disclosure; (c) is disclosed with
the prior written approval of the disclosing Party; (d) was independently developed by the receiving Party without use of any Confidential
Information of the disclosing Party; (e) becomes known to the receiving Party, without restriction, from a third party not bound
by an obligation of confidentiality; or (f) is disclosed generally to third parties by the disclosing Party without restrictions
similar to those contained in this Article 12. In addition, the receiving Party may disclose the other Party’s
Confidential Information to the extent such disclosure is required by law or by order or requirement of a court, administrative
agency, or other governmental body, provided that the receiving Party provides prompt notice thereof to the disclosing Party so
as to afford the disclosing Party reasonable opportunity to seek a protective order or otherwise prevent or restrict such disclosure.

 

12.4       Confidentiality
of Agreement. The terms and conditions of this Agreement, but not its existence, shall be treated as Confidential Information
of each Party. Upon the advance written consent of both Parties, not to be unreasonably withheld, the Parties may elect to issue
press releases or other forms of publicity regarding the specific terms and conditions of this Agreement or regarding the business
relationship under this Agreement.

 

13.       GENERAL
PROVISIONS

 

13.1       Force
Majeure. Neither Party shall be considered in default of its performance of any obligation hereunder (other than an obligation
to make any payment due hereunder) to the extent that performance of such obligation is prevented or delayed by any act of God
or other cause beyond such Party’s reasonable control, including, without limitation, any act, failure to act, or delay in
acting on the part of any governmental authority (including the imposition of regulations which would prohibit the sale or manufacture
of the MagneGas Systems or of MagneGas Fuel or which would require additional research and development and with which a Party would
be unable to comply within a reasonable time); strikes or other labor difficulties; accidents or disruptions such as fire, explosion,
terrorism, flood, epidemics, unanticipated breakdown, failure, or delay of third party essential machinery or telecommunications
services, or civil disturbance (each, a “Force Majeure Event”). If any Force Majeure Event does arise, occur,
or result, the Party subject thereto shall use commercially reasonable efforts to minimize the consequences of such Force Majeure
Event and to overcome such Force Majeure Event as soon as reasonably possible. A Party desiring to rely upon any Force Majeure
Event as an excuse for failure, default, or delay in performance shall provide the other Party with a written description of the
facts giving rise to said event when it arises and statement claiming Force Majeure giving rise to suspension of the Parties’
obligation hereunder during the pendency of such conditions of Force Majeure. If such Party is not able to perform within ninety
(90) days after the event giving rise to the excuse of Force Majeure, the other Party may terminate this Agreement.

 

    12 

     

    

 

13.2       Assignment;
Binding Effect. TALON may assign its rights under this Agreement to a wholly owned subsidiary that will operate the business
of the sale and distribution of the MagneGas, as permitted under the Licensing and Distribution Agreement. Such entity must either
be wholly owned by TALON or by all of the current shareholders of TALON, or a combination thereof. Except as set forth in the preceding
sentence, neither Party may, assign, delegate, or otherwise transfer this Agreement, or any of its rights or obligations hereunder
without the prior written consent of the other Party, and any such assignment, delegation, or transfer shall be null and void.
Subject to the foregoing, all of the terms and conditions of this Agreement shall be binding upon and shall inure to the benefit
of the Parties and their respective successors and assigns.

 

13.3       No
Rights In Third Parties. Nothing in this Agreement will confer any rights upon any person other than the Parties and their
respective successors and assigns.

 

13.4       Choice
of Law: Jurisdiction. This Agreement and its subject matter shall be governed by and interpreted in accordance with the laws
of the State of Florida, without reference to any principles governing conflicts of law that might cause the laws of any other
jurisdiction to apply. Each party accepts the venue provisions of this Section 13.4 and waives its right to any other
forum to which it may otherwise be entitled by virtue of its nationality or place of residence.

 

13.5       Legal
Fees. If either Party brings an action against the other Party in order to enforce the terms and conditions of this Agreement,
the non-prevailing Party in such action shall pay all reasonable costs and expenses (including attorneys’ fees) incurred
by the prevailing party.

 

13.6       Notices.
All notices required under this Agreement shall be deemed effective upon receipt and shall be (a) delivered personally, (b) sent
via overnight delivery using a nationally recognized courier service (e.g., UPS or FedEx), to the Party to be notified, at the
address(es) for such Party set forth below, or at such address(es) of which such Party has provided notice in accordance with the
provisions hereof, as follows:

 

    13 

     

    

 

	To MagneGas:	MagneGas Corporation
	 	11885 44th St. North
	 	Clearwater, FL 33762
	 	Attn: Ermanno Santilli, CEO
	 	 
	with a copy to:	Shutts & Bowen LLP
	 	4301 W. Boy Scout Blvd., Suite 300
	 	Tampa, FL 33607
	 	Attn: Olga M. Pina, Esq.
	 	 
	To TALON:	Talon Ventures and Consulting GmbH
	 	Stadtweg 7
	 	D-30966 Hemmingen, Germany
	 	Attn: Matthias Mueller, CEO
	 	 
	with a copy to:	Wollmann & Partner
	 	Meinekestr. 22
	 	D-10719 Berlin
	 	Attn: Benjamin Bernhard

 

13.7       Entire
Agreement; Amendments. This Agreement, including any Exhibits and Schedules hereto, sets forth the entire agreement and understanding
of the Parties with respect to its subject matter. All prior and contemporaneous agreements and understandings between the Parties,
whether oral or written, are hereby superseded in their entirety by this Agreement. This Agreement may be amended, modified, or
supplemented only by a written instrument duly executed by each of the Parties.

 

13.8       No
Waivers. The failure of either Party to assert a right hereunder or to insist upon compliance with any term or condition herein
will not constitute a waiver of that right or excuse any subsequent nonperformance of any such term or condition, or of any other
term or condition, by the other Party.

 

13.9       Severability.
If any provision of this Agreement is held invalid, illegal, or unenforceable, such provision shall be modified to reflect the
fullest legal and enforceable expression of the intent of the Parties or, if not possible, severed, and the remainder of this Agreement
will not be affected thereby. Notwithstanding the foregoing, the limitations of liability in Article 11 and the indemnification
provisions in Article 12 are considered by the Parties to be integral to this Agreement and may not be modified or
severed from this Agreement.

 

13.10       Interpretation.
The Section, Article, and Exhibit headings contained in this Agreement are for reference purposes only, and shall not control or
affect the construction of this Agreement or the Interpretation thereof in any respect. Unless otherwise expressly indicated, all
references to Sections, Articles, and Exhibits are to the Sections, Articles, Exhibits and Schedules of this Agreement.

  

13.11       Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be binding as of the Effective Date, and all of
which shall constitute one and the same instrument. Each such copy shall be deemed an original, and it shall not be necessary in
making proof of his Agreement to produce or account for more than one such counterpart. Facsimile or electronically scanned copies
will be given the same force and effect as original documents.

 

[Signature Page Next]

    14 

     

    

 

IN WITNESS WHEREOF, the Parties, by their
duly appointed officers, have entered into this Agreement on the Effective Date.

 

	 	MAGNEGAS CORPORATION	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name:  	Ermanno Santilli	 
	 	Title:	President and CEO	 
	 	Date:	December 16th, 2016	 
	 	 	 	 
	 	 	 	 

 

	 	TALON VENTURES & CONSULTING GMBH	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name:  	Matthias Mueller	 
	 	Title:	Chief Executive Officer	 
	 	Date:	December 16th, 2016	 

 

    15

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