Document:

Exhibit 10.7

 

 

 

APTOSE BIOSCIENCES INC.

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Executive Employment Agreement (the ''Agreement'"),
made between Aptose Biosciences Inc. (the "Company") and Rafael Bejar, M.D., Ph.D. ("Executive,"
and together with the Company, the "Parties"), is entered into as of December 4, 2019. In the event
Executive's employment with the Company does not commence on or prior to January 1, 2020, this Agreement shall be null and void.

 

WHEREAS, the Company desires for Executive
to commence employment with the Company on January 1, 2019, and wishes to provide Executive with certain compensation and benefits
in return for such employment; and

 

WHEREAS, Executive wishes to be employed
by the Company and to provide personal services to the Company in return for certain compensation and benefits;

 

Now,
THEREFORE, in consideration of the mutual promises and covenants contained herein and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:

 

		1.	Employment by the Company.

 

1.1              
Position. Executive shall serve as the Company's Chief Medical Officer. While employed by the Company, Executive will
devote Executive's best efforts and substantially all of Executive's business time and attention to the business of the Company,
except for approved vacation periods and reasonable periods of illness or other incapacities permitted by the Company's general
employment policies.

 

1.2              
Duties and Location. Executive shall perform such duties as are required by the Company's Chief Executive Officer, to
whom Executive will report. In the event of the Chief Executive Officer's incapacity or unavailability, Executive will report to
the Board of Directors of the Company (the "Board"). Executive's primary office location shall be the Company's
executive office located at 12270 High Bluff Drive, Suite 120, San Diego, California 92130. The Company reserves the right to reasonably
require Executive to perform Executive's duties at places other than Executive's primary office location from time to time, and
to require reasonable business travel. The Company may modify Executive's job title and duties as it deems necessary and appropriate
in light of the Company's needs and interests from time to time.

 

1.3              
Policies and Procedures. The employment relationship between the Parties shall be governed by the general employment
policies and practices of the Company, except that when the terms of this Agreement differ from or are in conflict with the Company's
general employment policies or practices, this Agreement shall control.

 

		2.	Compensation.

 

2.1              
Base Salary. For services to be rendered hereunder, Executive shall receive a base salary at the rate of U.S. $400,000
per year (the "Base Salary"). The Base Salary will be payable in accordance with the Company's regular
payroll schedule. Executive's Base Salary shall be subject to review annually by and at the sole discretion of the Board or its
designee.

 

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2.2              
Bonus. Commencing in 2020, Executive will be eligible for an annual discretionary bonus of up to forty percent (40%)
of Executive's then current Base Salary (the "Annual Bonus"). Whether Executive receives an Annual Bonus
for any given fiscal year, and the amount of any such Annual Bonus, will be determined in the good faith discretion of the Board
or its designee based upon the Company's and Executive's achievement of objectives and milestones to be determined on an annual
basis by the Board or its designee. Any such Annual Bonus will be paid prior to the fifteenth (15th) day of the third
(3rd) month following the close of the Company's fiscal year to which such Annual Bonus relates. Except as otherwise
provided in Section 6.2 herein, the Company’s payment, and the amount, of any such Annual Bonus shall be in the sole discretion
of the Company, and any such Annual Bonus will not be deemed earned unless Executive is an employee of the Company in good standing
on the dates the Annual Bonus is determined and paid.

 

3.                  
Standard Company Benefits. Executive shall, in accordance with Company policy and the terms and conditions of the applicable
Company benefit plan documents, be eligible to participate in the benefit and fringe benefit programs provided by the Company to
its U.S. based executive officers and other employees from time to time, including, without limitation, vacation. Executive shall
be entitled to four (4) weeks of vacation per year, which will accrue in accordance with Company policy.

 

4.                  
Expenses. The Company will reimburse Executive for reasonable travel, entertainment or other expenses incurred by Executive
in furtherance or in connection with the performance of Executive's duties hereunder, in accordance with the Company's expense
reimbursement policy as in effect from time to time. Any amounts payable under this Section 4 shall be made in accordance with
Treasury Regulation Section 1.409A-3(i)(1)(iv) and shall be paid on or before the last day of Executive's taxable year following
the taxable year in which Executive incurred the expenses. The amounts provided under this Section 4 during any taxable year
of Executive's will not affect such amounts provided in any other taxable year of Executive's, and Executive's right to reimbursement
for such amounts shall not be subject to liquidation or exchange for any other benefit.

 

5.                  
Equity. Subject to approval by the Board, and pursuant to the Company’s equity plan (the “Plan”),
the Company shall grant Executive an award of options to purchase 400,000 shares of the Company’s common stock, at an exercise
price equal to the stock’s fair market value per share on the date of grant (the “Option”). The
Option will be subject to the terms and conditions of the Plan, and the corresponding grant notice and stock option agreement,
and will be subject to the Company's standard four-year vesting schedule.

 

		6.	Termination of Employment; Severance.

 

6.1              
At-Will Employment. Executive's employment relationship is at-will. Either Executive or the Company may terminate the
employment relationship at any time, with or without Cause (as defined below) or advance notice. If Executive's employment terminates
for any reason, Executive shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided
in this Agreement. Upon any termination of Executive's employment, in addition to any severance benefits to which Executive may
be entitled under Section 6.2 below, the Company shall pay to Executive (a) his or her fully earned but unpaid base salary, through
the date of termination at the rate then in effect, plus (b) all accrued but unpaid vacation, plus (c) all other amounts to which
Executive is entitled under any compensation plan or practice of the Company at the time of termination in accordance with the
terms of such plans or practices, including, without limitation, any continuation of benefits required by COBRA or applicable law
(together, the "Accrued Obligations").

 

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		6.2	Termination Without Cause; Resignation for Good Reason.

 

(i)                   
The Company may terminate Executive's employment with the Company at any time without Cause (as defined in Section 10.1
below). Further, Executive may resign at any time for Good Reason (as defined in Section 10.2 below).

 

(ii)                
In the event Executive's employment with the Company is terminated by the Company without Cause (and other than as a result
of Executive's death or Permanent Disability (as defined in Section 6.3(i) below)), or Executive resigns for Good Reason, then
provided that Executive satisfies the Release Requirement in Section 7 herein, and remains in compliance with the terms of this
Agreement and the Confidentiality Agreement (as defined below), the Company shall provide Executive with the following "Severance
Benefits":

 

(a)               
A lump sum cash payment equal to Executive's annual Base Salary (i.e., a full payment of one year’s salary
at the Base Salary rate) at the time of employment termination (without giving effect to any reduction in Base Salary that would
give Executive the right to resign for Good Reason) to be paid by the Company on the first payroll date following the Effective
Date of the Release (as defined below), but in no event more than seventy-five (75) days following the date of Executive's termination
of employment.

 

(b)              
A lump sum cash payment in an amount equal to the average of the Annual Bonus payments Executive received from the Company
during the last three years of employment completed prior to the year of the employment termination (or such lesser number of years
of employment completed by Executive prior to the year of the employment termination if Executive has not yet been employed for
three full years prior to the year of the employment termination), pro-rated based on the number of days Executive worked during
the fiscal year of the employment termination, divided by 365, to be paid by the Company on the first payroll date following the
Effective Date of the Release, but in no event more than seventy-five (75) days following the date of Executive's termination of
employment.

 

(c)               
If the Company has previously established a group health plan in which Executive participates prior to Executive's termination
and Executive timely elects COBRA coverage following any such termination, the Company will pay Executive for the full amount of
such COBRA premiums for himself or herself and his or her covered dependents (on a monthly basis) for a period of up to twelve
(12) months following the date of termination; provided, that, if and to the extent that any benefit described in this Section
6.2(ii)(c) is not or cannot be paid or provided under any Company plan or program without penalties or adverse tax consequences
to the Company or for any other reason, as determined by the Company in its sole discretion, then the Company shall pay Executive
a fully taxable cash payment equal to the COBRA premium for each month that such benefits cannot be so paid or provided by the
Company for a period of up to twelve (12) months following the date of termination; provided, further, that the COBRA payments
or, if applicable, the taxable monthly payment discussed above, shall terminate on the earliest to occur of (A) the close of the
12-month period following the termination of Executive's employment; (B) the expiration of Executive's (or Executive's dependents')
eligibility for coverage under COBRA; and (C) the date when Executive becomes eligible for group health insurance coverage in connection
with new employment or self-employment. If Executive becomes eligible for coverage under another employer's group health plan or
otherwise ceases to be eligible for COBRA coverage during the period provided in this Section 6.2(ii)(c), Executive must immediately
provide written notice to the Company of such event, and the Company-provided COBRA payments, or if applicable, the monthly payments
under this Section 6.2(ii)(c) shall immediately cease.

 

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(iii)            
Furthermore, in the event Executive's employment with the Company is terminated by the Company pursuant to Section 6.2(ii),
in either case, within sixty (60) days immediately preceding or twelve (12) months immediately following the consummation of a
Change in Control (as defined below), then, in lieu of (and not additional to) the severance benefits described in Section 6.2(ii),
and provided that Executive satisfies the Release Requirement in Section 7 herein and remains in compliance with the terms of this
Agreement and the Confidentiality Agreement, the Company shall instead provide Executive with the following benefits (the "Change
in Control Severance Benefits"). For the avoidance of doubt: (A) in no event will Executive be entitled to severance
benefits under Section 6.2(ii) and this Section 6.2(iii), and (B) if the Company has commenced providing severance benefits to
Executive under Section 6.2(ii) prior to the date that Executive becomes eligible to receive Change in Control Severance Benefits
under this Section 6.2(iii), the benefits previously provided to Executive under Section 6.2(ii) of this Agreement shall reduce
the severance benefits provided under this Section 6.2(iii):

 

(a)               
A lump sum cash payment in an amount equal to eighteen (18) months of Executive's annual Base Salary (without giving effect
to any reduction in Base Salary that would give Executive the right to resign for Good Reason), to be paid in a single lump sum
during the first payroll date following the later of (i) the Effective Date of the Release or (ii) if Executive's termination of
employment occurs prior to a Change in Control, the date of such Change in Control, but in no event more than seventy-five (75)
days following the date of Executive's termination of employment.

 

(b)              
A lump sum cash payment in an amount equal to 150% of the average of the Annual Bonus payments Executive received from the
Company during the last three years of employment completed prior to the year of the employment termination (or such lesser number
of years of employment completed by Executive prior to the year of the employment termination if Executive has not yet been employed
for three full years prior to the year of the employment termination), pro-rated based on the number of days Executive worked during
the fiscal year of the employment termination, divided by three hundred sixty-five (365), to be paid by the Company on the first
payroll date following the later of (i) the Effective Date of the Release or (ii) if Executive's termination of employment occurs
prior to a Change in Control, the date of such Change in Control, but in no event more than seventy-five (75) days following the
date of Executive's termination of employment.

 

(c)               
If the Company has previously established a group health plan in which Executive participates prior to Executive's termination
and Executive timely elects COBRA coverage following any such termination, the Company will pay Executive for the full amount of
such COBRA premiums for himself or herself and his or her covered dependents (on a monthly basis) for a period of up to twelve
(12) months following the date of termination; provided, that, if and to the extent that any benefit described in
this Section 6.2(iii)(c) is not or cannot be paid or provided under any Company plan or program without penalties or adverse tax
consequences to the Company or for any other reason, as determined by the Company in its sole discretion, then the Company shall
pay Executive a fully taxable cash payment equal to the COBRA premium for each month that such benefits cannot be so paid or provided
by the Company for a period of up to twelve (12) months following the date of termination; provided, further, that the COBRA
payments or, if applicable, the monthly payment discussed above, shall terminate on the earliest to occur of (A) the close of the
12-month period following the termination of Executive's employment; (B) the expiration of Executive's (or Executive's covered
dependents) eligibility for coverage under COBRA; and (C) the date when Executive becomes eligible for group health insurance coverage
in connection with new employment or self-employment. If Executive becomes eligible for coverage under another employer's group
health plan or otherwise ceases to be eligible for COBRA coverage during the period provided in this Section 6.2(iii)(c), Executive
must immediately provide written notice to the Company of such event, and the Company-provided COBRA payments, or if applicable,
the monthly payments under this Section 6.2(iii)(c) shall immediately cease.

 

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(d)              
Notwithstanding anything to the contrary set forth in the Company's equity plan or form of award agreement, effective as
of Executive's employment termination date, the vesting and exercisability of all then outstanding unvested Stock Awards (as defined
below) then held by Executive shall accelerate such that all shares become immediately vested and exercisable, if applicable, by
Executive upon such termination and shall remain exercisable, if applicable, following Executive's termination as set forth in
the applicable equity award documents.

 

6.3              
Termination for Cause; Resignation Without Good Reason; Death or Permanent Disability.

 

(i)                
The Company may terminate Executive's employment with the Company for Cause. Further, Executive may resign at any time without
Good Reason. Executive's employment with the Company will also terminate automatically upon Executive's death. Executive's employment
may also be terminated following Executive's "Permanent Disability." For purposes of this Agreement, “Permanent
Disability” shall be deemed to have occurred if Executive shall become physically or mentally incapacitated or disabled
or otherwise unable fully to discharge his duties hereunder for a period of ninety (90) consecutive calendar days or for one hundred
twenty (120) calendar days in any one hundred eighty (180) calendar-day period. The existence of Executive's Permanent Disability
shall be determined by the Company on the advice of a duly licensed physician reasonably acceptable to the Company and Executive.

 

(ii)              
If Executive resigns without Good Reason, or the Company terminates Executive's employment for Cause, or upon Executive's
death or following Executive's Permanent Disability, then (a) Executive will no longer vest in his or her Stock Awards, (b) all
payments of compensation by the Company to Executive hereunder will terminate immediately (except as to amounts already earned
and the Accrued Obligations), and (c) Executive will not be entitled to any severance benefits, including (without limitation)
the Severance Benefits and Change in Control Benefits listed in Sections 6.2(ii) and 6.2(iii). In addition, Executive shall resign
from all positions and terminate any relationships as an employee, advisor, officer or director with the Company and any of its
affiliates, each effective on the date of termination. In the event of Executive's death or Permanent Disability, Executive, or
his estate or heirs, as the case may be, shall also be entitled to any life insurance or disability benefits provided under the
Company's benefit plans in which Executive participates, subject to the terms and conditions of such plans.

 

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7.                  
Conditions to Receipt of Severance Benefits and Change in Control Severance Benefits. Notwithstanding the foregoing,
to be eligible for any of the Severance Benefits or Change in Control Severance Benefits, on or within sixty (60) days following
the termination of employment, Executive must satisfy the requirement (the "Release Requirement") to return
to the Company a signed and dated general release of all known and unknown claims in a form acceptable to the Company (the "Release
and Waiver") and allow that Release and Waiver to become effective in accordance with its terms (such date, the "Effective
Date of the Release"). No Severance Benefits or Change in Control Severance Benefits will be paid hereunder prior
to the Effective Date of the Release. Accordingly, if Executive breaches the preceding sentence and/or refuses to sign and deliver
to the Company an executed Release and Waiver within the foregoing time period or signs and delivers to the Company the Release
and Waiver but exercises his or her right, if any, under applicable law to revoke the Release and Waiver (or any portion thereof),
then Executive will not be entitled to any severance, payment or benefit under this Agreement.

 

8.                  
Section 409A. It is intended that all of the severance benefits and other payments payable under this Agreement satisfy,
to the greatest extent possible, the exemptions from the application of Section 409A of the Internal Revenue Code of 1986, as amended
(the "Code") and the regulations and other guidance thereunder and any state law of similar effect (collectively
"Section 409A"), provided under Treasury Regulations l.409A-1(b)(4), 1.409A- l (b)(5) and 1.409A-l (b)(9),
and this Agreement will be construed to the greatest extent possible as consistent with those provisions, and to the extent not
so exempt, this Agreement (and any definitions hereunder) will be construed in a manner that complies with Section 409A. For purposes
of Code Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), Executive's
right to receive any installment payments under this Agreement (whether severance payments, reimbursements or otherwise) shall
be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all
times be considered a separate and distinct payment. Notwithstanding anything herein to the contrary, to the extent any payments
to Executive pursuant to this Agreement (including the Severance Benefits or Change in Control Severance Benefits) constitute “non-qualified
deferred compensation” subject to Section 409A of the Code, then, to the extent required by Section 409A of the Code (including,
without limitation, to secure an exemption from or to comply with Section 409A), no amount shall be payable pursuant to such sections
unless Executive's termination of employment constitutes a “separation from service” with the Company (as defined under
Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a "Separation from
Service"). Notwithstanding any provision to the contrary in this Agreement, if Executive is deemed by the Company
at the time of Executive's Separation from Service to be a "specified employee" for purposes of Code Section 409A(a)(2)(B)(i),
and if any of the payments upon Separation from Service set forth herein and/or under any other agreement with the Company are
deemed to be "deferred compensation", then to the extent delayed commencement of any portion of such payments is required
in order to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i) and the related adverse taxation under Section
409A, such payments shall not be provided to Executive prior to the earliest of (a) the expiration of the six-month and one day
period measured from the date of Executive's Separation from Service with the Company, (b) the date of Executive's death or (c)
such earlier date as permitted under Section 409A without the imposition of adverse taxation. Upon the first business day following
the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Paragraph shall
be paid in a lump sum to Executive, and any remaining payments due shall be paid as otherwise provided herein or in the applicable
agreement. No interest shall be due on any amounts so deferred. If any severance benefits provided under this Agreement constitute
"non-qualified deferred compensation" under Section 409A, any such severance benefits shall not be paid, or in the case
of installments shall not commence payment, until the sixtieth (60th) day following the Executive's Separation from
Service (the "Initial Payment Date"), regardless of when the Release actually becomes effective (and any
payments scheduled to be made prior to such Initial Payment Date shall instead accrue and be paid in a single lump sum on such
Initial Payment Date) and the remaining payments shall be made as provided in this Agreement.

 

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		9.	Section 280G; Limitations on Payment.

 

9.1              
If any payment or benefit Executive will or may receive from the Company or otherwise (a "280G Payment")
would (a) constitute a "parachute payment" within the meaning of Section 280G of the Code, and (b) but for this sentence,
be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then any such 280G
Payment provided pursuant to this Agreement (a "Payment") shall be equal to the Reduced Amount. The "Reduced
Amount" shall be either (x) the largest portion of the Payment that would result in no portion of the Payment (after
reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever
amount (i.e., the amount determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and
local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive's
receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be
subject to the Excise Tax. If a reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is
determined pursuant to clause (x) of the preceding sentence, the reduction shall occur in the manner (the "Reduction
Method") that results in the greatest economic benefit for Executive. If more than one method of reduction will result
in the same economic benefit, the items so reduced will be reduced pro rata (the "Pro Rata Reduction Method").

 

9.2              
Notwithstanding any provision of Section 9.1 to the contrary, if the Reduction Method or the Pro Rata Reduction Method
would result in any portion of the Payment being subject to taxes pursuant to Section 409A that would not otherwise be subject
to taxes pursuant to Section 409A, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be
modified so as to avoid the imposition of taxes pursuant to Section 409A as follows: (A) as a first priority, the modification
shall preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis;
(B) as a second priority, Payments that are contingent on future events (e.g., being terminated without Cause), shall be
reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are
"deferred compensation" within the meaning of Section 409A shall be reduced (or eliminated) before Payments that are
not deferred compensation within the meaning of Section 409A.

 

9.3                  
Unless Executive and the Company agree on an alternative accounting firm or law firm, the accounting firm engaged by
the Company for general tax compliance purposes as of the day prior to the effective date of the Change in Control transaction
shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor
for the individual, entity or group effecting the Change in Control transaction, the Company shall appoint a nationally recognized
accounting or law firm to make the determinations required by this Section 9. The Company shall bear all expenses with respect
to the determinations by such accounting or law firm required to be made hereunder. The Company shall use commercially reasonable
efforts to cause the accounting or law firm engaged to make the determinations hereunder to provide its calculations, together
with detailed supporting documentation, to Executive and the Company within fifteen (15) calendar days after the date on which
Executive's right to a 280G Payment becomes reasonably likely to occur (if requested at that time by Executive or the Company)
or such other time as requested by Executive or the Company.

 

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9.4              
If Executive receives a Payment for which the Reduced Amount was determined pursuant to clause (x) of Section 9.1 and
the Internal Revenue Service determines thereafter that some portion of the Payment is subject to the Excise Tax, Executive agrees
to promptly return to the Company a sufficient amount of the Payment (after reduction pursuant to clause (x) of Section 9.1) so
that no portion of the remaining Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined
pursuant to clause (y) of Section 9.1, Executive shall have no obligation to return any portion of the Payment pursuant to the
preceding sentence.

 

		10.	Definitions.

 

10.1           
Cause. For purposes of this Agreement, "Cause" for termination will mean: (a) Executive's commission
of any felony or commission of a crime involving dishonesty; (b) Executive's participation in any fraud against the Company;
(c) a material breach of Executive's duties to the Company; (d) Executive's persistent unsatisfactory performance of his job duties;
(e) Executive's intentional damage to any property of the Company; (f) Executive's misconduct, or other violation of Company policy
that causes harm to the Company; and (g) Executive's breach of any material provision of this Agreement or any other written agreement
between Executive and the Company; provided, however, that prior to the determination that “Cause” under
this Section 10.1 has occurred, the Company shall (i) provide to Executive a written notice providing, in reasonable detail, the
reasons for the determination that such “Cause” exists, (ii) other than with respect to clause (a) above, afford Executive
a reasonable opportunity to remedy any such event or breach (if deemed curable), (iii) provide Executive an opportunity to be heard
prior to the final decision to terminate Executive's employment hereunder for such “Cause” and (iv) make any decision
that such “Cause” exists in good faith.

 

10.2           
Good Reason. For purposes of this Agreement, Executive shall have "Good Reason" for resignation
from employment with the Company if any of the following actions are taken by the Company without Executive's prior written consent:
(a) a material reduction in Executive's Base Salary, other than in connection with an across-the-board decrease of base salaries
applicable to all senior executives of the Company; (b) a material reduction in Executive's duties (including responsibilities
and/or authorities), provided, however, that a change in job position (including a change in title) shall not be deemed
a "material reduction" in and of itself unless Executive's new duties are materially reduced from the prior duties; or
(c) relocation of Executive's principal place of employment to a place that increases Executive's one-way commute from the Executive’s
residence (after the relocation agreed by Executive and the Company in Section 1.2) by more than fifty (50) miles as compared to
Executive's then-current principal place of employment immediately prior to such relocation. In order for Executive to resign for
Good Reason, each of the following requirements must be met: (i) Executive must provide written notice to the Company's Chief Executive
Officer within 60 days after the first occurrence of the event giving rise to Good Reason setting forth the basis for Executive's
resignation, (ii) the Executive must allow the Company at least 30 days from receipt of such written notice to cure such event
(the "Cure Period"), (iii) such event is not reasonably cured by the Company within the Cure Period, and
(iv) Executive must resign from all positions Executive then holds with the Company not later than 30 days after the expiration
of the Cure Period.

 

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10.3               
Change in Control. For purposes of this Agreement, "Change in Control" shall mean the consummation
of any of the following: (a) the acquisition of the Company by another entity by means of any transaction or series of related
transactions to which the Company is party (including, without limitation, any stock acquisition, reorganization, merger or consolidation
but excluding any sale of stock for capital raising purposes) other than a transaction or series of transactions in which the holders
of the voting securities of the Company outstanding immediately prior to such transaction continue to retain (either by such voting
securities remaining outstanding or by such voting securities being converted into voting securities of the surviving entity),
following such transaction, at least fifty percent (50%) of the total voting power represented by the voting securities of the
surviving entity outstanding immediately after such transaction or series of transactions; (b) a sale, lease or other conveyance
of all or substantially all of the assets of the Company; or (c) any liquidation, dissolution or winding up of the Company, whether
voluntarily or involuntarily. Notwithstanding the foregoing, the Company and Executive agree that Change in Control does not include
any reorganization, sale or plan of arrangement undertaken to move the domicile of the Company to the U.S., pursuant to which the
Company will become a wholly-owned subsidiary of a Delaware corporation. Notwithstanding the foregoing, if a Change in Control
constitutes a payment event with respect to any payment hereunder that provides for the deferral of compensation that is subject
to Section 409A, to the extent required to avoid the imposition of additional taxes under Section 409A, the transaction or event
with respect to such payment shall only constitute a Change in Control for purposes of the payment timing of such payment if such
transaction also constitutes a “change in control event,” as defined in Treasury Regulation Section 1.409A-3(i)(5).

 

10.4               
"Stock Awards" means all stock options, restricted stock and such other awards granted pursuant
to the Company’s stock option and equity incentive award plans or agreements and any shares of stock issued upon exercise
thereof.

 

		11.	Confidential Information Obligations.

 

11.1           
Confidential Information Agreement. As a condition of employment, Executive shall execute and abide by the Company's
standard form of Employee Proprietary Information and Inventions Assignment Agreement (the "Confidentiality Agreement").

 

11.2           
Third-Party Agreements and Information. Executive represents and wan-ants that Executive's employment by the Company
does not conflict with any prior employment or consulting agreement or other agreement with any third party, and that Executive
will perform Executive's duties to the Company without violating any such agreement. Executive represents and warrants that Executive
does not possess confidential information arising out of prior employment, consulting, or other third party relationships, that
would be used in connection with Executive's employment by the Company, except as expressly authorized by that third party. During
Executive's employment by the Company, Executive will use in the performance of Executive's duties only information which is generally
known and used by persons with training and experience comparable to Executive's own, common knowledge in the industry, otherwise
legally in the public domain, or obtained or developed by the Company or by Executive in the course of Executive's work for the
Company.

 

11.3           
Return of Company Property. If Executive's employment is terminated for any reason, the Company shall have the right,
at its option, to require Executive to vacate his or her offices prior to or on the effective date of termination and to cease
all activities on the Company’s behalf. Upon the termination of his or her employment in any manner, as a condition to the
Executive's receipt of any post-termination benefits described in this Agreement, Executive shall immediately surrender to the
Company all lists, books, records and documents of, or in connection with, the Company’s business, and all other property
belonging to the Company, it being distinctly understood that all such lists, books and records, and other documents and property,
are the property of the Company. Executive shall deliver to the Company a signed statement certifying compliance with this Section
11.3 prior to the receipt of any post-termination benefits described in this Agreement.

 

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11.4           
Rights and Remedies Upon Breach. If Executive breaches or threatens to commit a breach of any of the provisions of this
Section 11 or Section 12 below, the Company shall have all of the rights and remedies available to the Company under law or
in equity.

 

11.5           
Whistleblower Provision. Nothing herein shall be construed to prohibit Executive from communicating directly with, cooperating
with, or providing information to, any government regulator, including, but not limited to, the U.S. Securities and Exchange Commission,
the U.S. Commodity Futures Trading Commission, or the U.S. Department of Justice. Executive acknowledges that the Company has provided
Executive with the following notice of immunity rights in compliance with the requirements of the Defend Trade Secrets Act: (a)
Executive shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of proprietary
information of the Company that is made in confidence to a Federal, State, or local government official or to an attorney solely
for the purpose of reporting or investigating a suspected violation of law, (b) Executive shall not be held criminally or civilly
liable under any Federal or State trade secret law for the disclosure of proprietary information of the Company that is made in
a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal and (c) if Executive files
a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the proprietary information
to my attorney and use the proprietary information in the court proceeding, if Executive files any document containing the proprietary
information under seal, and does not disclose the proprietary information, except pursuant to court order.

 

		12.	Outside Activities During Employment; Non-Solicitation.

 

12.1           
Non-Company Business. Except with the prior written consent of the Board or the Chief Executive Officer of the Company,
Executive will not during the term of Executive's employment with the Company undertake or engage in any other employment, occupation
or business enterprise, other than ones in which Executive is a passive investor. Subject to the terms of the Confidentiality Agreement
and Section 12.2 below, Executive may engage in civic and not-for-profit activities so long as such activities do not materially
interfere with the performance of Executive's duties hereunder. Executive agrees that he or she will not join any boards, other
than civic and not-for-profit boards (which do not materially interfere with Executive's duties to the Company), without the prior
written approval of the Board, which approval shall not be unreasonably withheld.

 

12.2           
No Adverse Interests. During the term of Executive's employment, Executive agrees not to acquire, assume or participate
in, directly or indirectly, any position, investment or interest known to be adverse or antagonistic to the Company, its business
or prospects, financial or otherwise. In addition, and in furtherance of the provisions of this Section 12, except as may otherwise
be approved in writing by the Board or the Chief Executive Officer of the Company, during the period of Executive's employment,
Executive shall not have any ownership interest (of record or beneficial) in, or perform services as an employee, salesman, consultant,
independent contractor, officer or director of, or otherwise aid or assist in any manner, any firm, corporation, partnership, proprietorship
or other business that engages in any county, city or part thereof in the United States and/or any foreign country in a business
which competes directly or indirectly (as determined by the Board) with the Company’s business in such county, city or part
thereof, so long as the Company, or any successor in interest of the Company to the business and goodwill of the Company, remains
engaged in such business in such county, city or part thereof or continues to solicit customers or potential customers therein;
provided, however, that Executive may own, directly or indirectly, solely as an investment, securities of any entity
which are traded on any national securities exchange if Executive (a) is not a controlling person of, or a member of a group
which controls, such entity; or (b) does not, directly or indirectly, own one percent (1%) or more of any class of securities
of any such entity.

 

    10

    

    

12.3           
Solicitation of Employees. Executive shall not during the term of Executive’s employment and for a period of twelve
(12) months following Executive’s termination of employment, directly or indirectly, solicit or encourage to leave the employment
of the Company or any of its subsidiaries, any employee of the Company or any of its subsidiaries.

 

13.              
Insurance; Indemnification. The Company shall have the right to take out life, health, accident, “key-man”
or other insurance covering Executive, in the name of the Company and at the Company’s expense in any amount deemed appropriate
by the Company. Executive shall assist the Company in obtaining such insurance, including, without limitation, submitting to any
required examinations and providing information and data required by insurance companies. Executive will be provided with indemnification
against third party claims related to his or her work for the Company as required by applicable law, including advancement of attorneys’
fees and costs related to any such indemnification as provided by applicable law. The Company shall provide Executive with directors
and officers liability insurance coverage at least as favorable as that which the Company may maintain from time to time for the
directors of the Company or the other executive officers.

 

14.              
Dispute Resolution. 

 

14.1           
In the event of any dispute, claim, cause of action or disagreement (a “Dispute”) arising out of
or in connection to this Agreement, including, without limitation, the negotiation, execution, interpretation, performance or non-performance
of this Agreement, as well as Executive's employment with the Company or the termination thereof, the Parties shall attempt to
resolve the Dispute in non-binding mediation administered by JAMS, Inc. ("JAMS") or its successors. The
parties shall agree on a mediator or if they cannot agree, the dispute shall be submitted to the mediation process of JAMS. The
place of mediation shall be San Diego, California. If the Dispute is not resolved pursuant to the foregoing procedure within thirty
(30) days after the initial mediation meeting among the parties and the mediator, or if the mediation is otherwise terminated,
then either Party may submit the Dispute to arbitration pursuant to Section 14.2 below. Each Party shall pay the fees of its own
attorneys and all other expenses connected with presenting its case. Other costs of the mediation, including JAMS' administrative
fees, the fee of the mediator, and all other fees and costs, shall be borne by the Company.

 

14.2           
To ensure the rapid and economical resolution of Disputes, including any and all Disputes, in law or equity, including
but not limited to statutory claims, arising from or relating to the enforcement, breach, performance, or interpretation of this
Agreement, Executive's employment with the Company, or the termination of Executive's employment from the Company, shall be resolved
pursuant to the Federal Arbitration Act, 9 U.S.C. §1-16, and to the fullest extent permitted by law, by final, binding and
confidential arbitration conducted in San Diego, California by JAMS or its successors before a single arbitrator, under the JAMS
Employment Arbitration Rules & Procedures (which can be found at https://www.jamsadr.com/rules-employment-arbitration/, and
which will be provided to Executive on request); provided that the arbitrator shall issue a written arbitration decision including
the arbitrator’s essential findings and conclusions and a statement of the award. The judgment and award rendered by the
arbitrator may be entered in any court or tribunal of competent jurisdiction. This Section 14 is intended to be the exclusive method
for resolving any and all claims by the parties against each other for payment of damages under this Agreement or relating to Executive’s
employment; provided, however, that (i) Executive shall retain the right to file administrative charges with or seek
relief through any government agency of competent jurisdiction, and to participate in any government investigation, including but
not limited to (a) claims for workers’ compensation, state disability insurance or unemployment insurance; (b) claims for
unpaid wages or waiting time penalties brought before the California Division of Labor Standards Enforcement (or any similar agency
in any applicable jurisdiction other than California); provided, however, that any appeal from an award or from denial
of an award of wages and/or waiting time penalties shall be arbitrated pursuant to the terms of this Agreement; and (c) claims
for administrative relief from the United States Equal Employment Opportunity Commission and/or the California Department of Fair
Employment and Housing (or any similar agency in any applicable jurisdiction other than California). Executive and the Company
shall be entitled to all rights and remedies that either would be entitled to pursue in a court of law; provided, however,
that in no event shall the arbitrator be empowered to hear or determine any class or collective claim of any type. Nothing in this
Agreement is intended to prevent either Executive or the Company from obtaining injunctive relief (or
any other provisional remedy) in any court of competent jurisdiction pursuant to California Code of Civil Procedure Section 1281.8
(or similar statute of an applicable jurisdiction) to prevent irreparable harm (including, without limitation, pending the conclusion
of any arbitration), which, to the extent applicable, shall be brought in the state or federal courts of California, as applicable.
The Company shall pay all fees relating to the administration of the arbitration, including
the arbitrator’s fees, arbitration expenses and any other costs unique to the arbitration proceeding (recognizing that each
side shall bear its own deposition, witness, expert and attorney’s fees and other expenses to the same extent as if the matter
were being heard in court). In the event that a Party refuses to acknowledge his or its obligation to arbitrate a Dispute
or files an action in court that is subject to arbitration pursuant to this Section 14.2, and the Executive or the Company
seeks to compel arbitration pursuant to this Section 14.2,
or if either Party brings an action to enforce an arbitration award hereunder, the prevailing
party shall be entitled to attorneys' fees and
costs pursuant to applicable law. In addition, if a
Party to this Agreement hereafter pursues any dispute by any method other than as
set forth herein, the responding Party shall be entitled
to recover from the
initiating Party all damages, costs,
expenses and attorneys' fees incurred as a result of defending
such action. Both Executive and the Company
acknowledge that by agreeing to this arbitration procedure, each waiveS the right to resolve any such dispute through a trial by
jury or judge or administrative proceeding.

 

    11

    

    

		15.	General Provisions.

 

15.1           
Notices. Any notices provided must be in writing and will be deemed effective upon the earlier of personal delivery
(including delivery by email or facsimile transmission upon acknowledgment of receipt of electronic transmission) or the next day
after sending by overnight carrier, to the Company at its primary office location (with any email notice to the Chief Executive
Officer of the Company at his primary Company email address) and to Executive at the address (or email address) as listed on the
Company payroll.

 

15.2           
Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect
under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other
provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction to the extent
possible in keeping with the intent of the Parties.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    12

    

    

15.3           
Waiver. Any waiver of any breach of any provisions of this Agreement must be in writing to be effective, and it shall
not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement.

 

15.4              
Complete Agreement. This Agreement, together with the Confidentiality Agreement, constitutes the entire agreement between
Executive and the Company with regard to the subject matter hereof and is the complete, final, and exclusive embodiment of the
Company's and Executive's agreement with regard to this subject matter, and supersedes any prior agreements between Executive and
the Company, including, without limitation, the offer letter between Executive and the Company dated November 6, 2019. This Agreement
is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein,
and it supersedes any other such promises, warranties or representations. It cannot be modified or amended except in a writing
signed by Executive and a duly authorized officer of the Company.

 

15.5             
Counterparts. This Agreement may be executed in separate counterparts, any one of which need not contain signatures
of more than one Party, but both of which taken together will constitute one and the same Agreement.

 

15.6             
Headings. The headings of the paragraphs hereof are inserted for convenience only and shall not be deemed to constitute
a part hereof nor to affect the meaning thereof.

 

15.7             
Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive
and the Company, and their respective successors, assigns, heirs, executors and administrators, except that Executive may not assign
any of his or her duties hereunder and he or she may not assign any of his or her rights hereunder without the written consent
of the Company, which shall not be withheld unreasonably.

 

15.8           
Tax Withholding. All amounts payable to Executive will be subject to appropriate payroll deductions and withholdings.

 

15.9           
Governing Law; Consent to Personal Jurisdiction. This Agreement shall
be governed by and construed in accordance with the laws of the State of California without regard to the conflict of laws provisions
thereof. Executive hereby expressly consents to the personal jurisdiction of the state and federal courts located in San Diego
County, California for any lawsuit filed by Executive or by the Company arising from or related to this Agreement or Executive's
employment with the Company

 

15.10       
Survival. The covenants, agreements, representations and warranties contained in or made in Sections 6 through
15 of this Agreement shall survive any termination of this Agreement.

 

15.11       
Third-Party Beneficiaries. This Agreement does not create, and shall not be construed as creating, any rights enforceable
by any person not a Party to this Agreement.

 

    13

    

    

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    14

    

    

IN WITNESS WHEREOF, the Parties have executed this
Agreement on the day and year first written above.

 

APTOSE BIOSCIENCES INC.

 

 

 

By: ___________________________________

Name: William G. Rice, Ph.D.

Title: Chairman, President & CEO

 

Date: __________________________________

 

EXECUTIVE

 

 

 _______________________________________

Print Name: Rafael Bejar, M.D., Ph.D.

 

 

Date: __________________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15Exhibit
4.1

 

NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND
THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN
SECURED BY SUCH SECURITIES.

 

PLACEMENT
AGENT COMMON STOCK PURCHASE WARRANT

 

SPHERIX
INCORPORATED

 

	Warrant
    Shares: _______	Issue
    Date: March 10, 2020
	 	 
	 	Initial
    Exercise Date: March 10, 2020

 

THIS
PLACEMENT AGENT COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _____________
or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after the date set forth above (the “Initial Exercise Date”)
and on or prior to 5:00 p.m. (New York City time) on March 9, 2025 (the “Termination Date”) but not thereafter,
to subscribe for and purchase from Spherix Incorporated, a Delaware corporation (the “Company”), up to ______
shares (as subject to adjustment hereunder, the “Warrant Shares”) of the Company’s Common Stock. The
purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).
This Warrant is being issued pursuant to that certain engagement letter, date as of January 24, 2020, as amended, by and between
the Company and H.C. Wainwright & Co., LLC.

 

Section
1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain
Securities Purchase Agreement (the “Purchase Agreement”), dated March 9, 2020, among the Company and the purchasers
signatory thereto.

 

    1

     

    

 

Section
2. Exercise.

 

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

 

b)
Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $3.4375, subject to adjustment
hereunder (the “Exercise Price”).

 

c)
Cashless Exercise. If at the time of exercise hereof there is no effective registration statement registering, or the prospectus
contained therein is not available for the issuance of the Warrant Shares to the Holder, then this Warrant may only be exercised,
in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive
a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

	 	(A)	=	as
    applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice
    of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both
    executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours”
    (as defined in Rule 600(b)(68) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii)
    at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice
    of Exercise or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the
    time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular
    trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after
    the close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the
    date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise
    is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such
    Trading Day;

 

    2

     

    

 

	 	(B)	=	the
    Exercise Price of this Warrant, as adjusted hereunder; and
	 	 	 	 
	 	(X)	=	the
    number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant
    if such exercise were by means of a cash exercise rather than a cashless exercise.

 

“Bid
Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common
Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading
Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX
as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common
Stock are then reported on The Pink Open Market (or a similar organization or agency succeeding to its functions of reporting
prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value
of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest
of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the
Company.

 

“VWAP”
means, for any date, the price determined by
the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily
volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which
the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City
time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of
the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not
then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on The Pink Open Market
(or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of
the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by
an independent appraiser selected in good faith by the Holders of a majority in interest of the Securities then outstanding and
reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

    3

     

    

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period
of the Warrant Shares being issued may be tacked on to the holding period of this Warrant. The Company agrees not to take any
position contrary to this Section 2(c).

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise
pursuant to this Section 2(c).

 

d)
Mechanics of Exercise.

 

i.
Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with
The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company
is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the
Warrant Shares to or resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder
without volume or manner-of-sale limitations pursuant to Rule 144 (assuming cashless exercise of the Warrants), and otherwise
by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee,
for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder
in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the
Notice of Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number
of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date,
the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for
all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised,
irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than
in the case of a cashless exercise) is received by the Warrant Share Delivery Date. If the Company fails for any reason to deliver
to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to
the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based
on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $10 per
Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share
Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer
agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein, “Standard
Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s
primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.

 

    4

     

    

 

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

 

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

 

iv.
Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available
to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with
the provisions of Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such
date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage
firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which
the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to
the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any)
for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that
the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell
order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion
of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall
be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company
timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having
a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate
sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company
shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall
limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver shares
of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

    5

     

    

 

v.
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.

 

vi.
Charges, Taxes and Expenses. Issuance of 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 Warrant Shares, all of which taxes and expenses shall be paid
by the Company, and such Warrant Shares 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 that 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 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. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice
of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions)
required for same-day electronic delivery of the Warrant Shares.

 

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

 

    6

     

    

 

e)
Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not
have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect
to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s
Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons,
“Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined
below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its
Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with
respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable
upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates
or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the
Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties.
Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged
by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of
the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent
that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation
to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant
is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be
the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together
with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the
Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.
In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d)
of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the
number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected
in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent
public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the
number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within one (1) Trading
Day confirm orally and in writing 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 or its Affiliates or Attribution Parties since the date as of which such number
of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of
the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock
issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership
Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the
number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon
exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the
Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company.
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(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect
to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

    7

     

    

 

Section
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), (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)
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company
grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will
be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could
have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without
regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before
the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the
date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights (provided, however, that to the extent that the Holder’s right to participate in any such Purchase
Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate
in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right
to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its
right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

c)
Pro Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend
(other than cash) or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock,
by way of return of capital or otherwise (including, without limitation, any distribution of stock or other securities, property
or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall
be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder
had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a
record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common
Stock are to be determined for the participation in such Distribution (provided, however, that to the extent that
the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation,
then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any
shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in
abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding
the Beneficial Ownership Limitation).

 

    8

     

    

 

d)
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in
one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company
(and all of its Subsidiaries, taken as a whole), directly or indirectly, effects any sale, lease, license, assignment, transfer,
conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any,
direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property
and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly,
in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any
compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities,
cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share
purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off,
merger or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than
50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons
making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement
or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant,
the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately
prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section
2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable
as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant).
For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate
Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental
Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting
the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice
as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice
as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. Notwithstanding
anything to the contrary, in the event of a Fundamental Transaction, the Company or any Successor Entity (as defined below) shall,
at the Holder's option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental
Transaction (or, if later, the date of the public announcement of the applicable Fundamental Transaction), purchase this Warrant
from the Holder by paying the same type or form of consideration (and in the same proportion), at the Black Scholes Value (as
defined below) of the unexercised portion of this Warrant, that is being offered and paid to the holders of Common Stock of the
Company in connection with the Fundamental Transaction, whether that consideration be in the form of cash, stock or any combination
thereof, or whether the holders of Common Stock are given the choice to receive from among alternative forms of consideration
in connection with the Fundamental Transaction. “Black Scholes Value” means the value of this Warrant based
on the Black-Scholes Option Pricing Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”)
determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free
interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement
of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the 100 day volatility
obtained from the HVT function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading Day immediately
following the public announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation
shall be the greater of (i) the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration,
if any, being offered in such Fundamental Transaction and (ii) the greater of (x) the last VWAP immediately prior to the public
announcement of such Fundamental Transaction and (y) the last VWAP immediately prior to the consummation of such Fundamental Transaction
and (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction
and the Termination Date and (E) a zero cost of borrow. The payment of the Black Scholes Value will be made by wire transfer of
immediately available funds within the later of (i) five Business Days of the Holder’s election and (ii) the date of consummation
of the Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company
is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under
this Warrant in accordance with the provisions of this Section 3(d) pursuant to written agreements in form and substance reasonably
satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall,
at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by
a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number
of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable
and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such
Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock
(but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value
of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting
the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably
satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity
shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this
Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such
Successor Entity had been named as the Company herein.

 

    9

     

    

 

e)
Calculations. All calculations under this Section 3 shall be made to the nearest 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.

 

f)
Notice to Holder.

 

i.
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the
Company shall promptly deliver to the Holder by facsimile or email 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 dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or
purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall
be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company (and
all of its Subsidiaries, taken as a whole) is a party, any sale or transfer of all or substantially all of the assets of the Company,
or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company
shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each
case, the Company shall cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address
as it shall appear upon the Warrant Register of the Company, at least 20 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
to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such
reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date
as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common
Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect
the validity of the corporate action required to be specified in such notice. To the extent that any notice provided in this Warrant
constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled
to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering
such notice except as may otherwise be expressly set forth herein.

 

g)
Voluntary Adjustment By Company. Subject to the rules and regulations of the Trading Market, the Company may at any time
during the term of this Warrant, subject to the prior written consent of the Holder, reduce the then current Exercise Price to
any amount and for any period of time deemed appropriate by the board of directors of the Company.

 

    10

     

    

 

Section
4. Transfer of Warrant.

 

a)
Transferability. Pursuant to FINRA Rule 5110(g)(1), neither this Warrant nor any Warrant Shares issued upon exercise of
this Warrant shall be sold, transferred, assigned, pledged or hypothecated , or be the subject of any hedging, short sale, derivative,
put or call transaction that would result in the effective economic disposition of the securities by any person for a period of
180 days immediately following the date of effectiveness or commencement of sales of the offering pursuant to which this Warrant
is being issued, except the transfer of any security:

 

		i.	by
operation of law or by reason of reorganization of the Company;

 

		ii.	to
any FINRA member firm participating in the offering and the officers and partners thereof, if all securities so transferred remain
subject to the lock-up restriction in this Section 4(a) for the remainder of the time period;

 

		iii.	if
the aggregate amount of the securities of the Company held by the placement agent or related persons do not exceed 1% of the securities
being offered;

 

		iv.	that
is beneficially owned on a pro-rata basis by all equity owners of an investment fund, provided that no participating member manages
or otherwise directs investments by the fund, and participating members in the aggregate do not own more than 10% of the equity
in the fund; or

 

		v.	the
exercise or conversion of any security, if all securities received remain subject to the lock-up restriction in this Section 4(a)
for the remainder of the time period.

 

Subject
to the foregoing restriction and subject to compliance with any applicable securities laws and the conditions set forth in Section
4(d) hereof and to the provisions of Section 4.1 of the Purchase Agreement, 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 a written assignment of this Warrant substantially in the form attached
hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making
of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants
in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument
of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically
surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender
this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company
assigning this Warrant in full. 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.

 

    11

     

    

 

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

 

c)
Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose
(the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and
treat the 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, as the case may be, comply with the provisions of Section 5.7 of the Purchase Agreement.

 

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.

 

Section
5. Miscellaneous.

 

a)
No Rights as Stockholder Until Exercise; No Settlement in Cash. 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),
except as expressly set forth in Section 3. Without limiting any rights of a Holder to receive Warrant Shares on a “cashless
exercise” pursuant to Section 2(c) or to receive cash payments pursuant to Section 2(d)(i) and Section 2(d)(iv) herein,
in no event shall the Company be required to net cash settle an exercise of this Warrant.

 

    12

     

    

 

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 Trading Day, then, such action may be taken or such right may be exercised on the next
succeeding Trading 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 issuing the necessary 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 as waived or consented to by the Holder, the Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate to protect the rights of 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 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.

 

    13

     

    

 

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.

 

e)
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall
be determined in accordance with the provisions of the Purchase Agreement.

 

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

 

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

 

h)
Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company
shall be delivered to the address for the Holder that appears in the Company’s Warrant Register.

 

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

 

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

 

    14

     

    

 

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

 

l)
Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company,
on the one hand, and the Holder of this Warrant, on the other hand.

 

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.

 

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

 

(Signature
Page Follows)

 

    15

     

    

 

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

 

	 	SPHERIX
    INCORPORATED
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

 

    16

     

    

 

NOTICE
OF EXERCISE

 

	To:	SPHERIX INCORPORATED

 

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

 

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

 

☐ in lawful money of the United States; or

 

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

 

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

_______________________________

 

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

 

_______________________________

 

_______________________________

 

_______________________________

 

(4)
The time of day this Notice of Exercise is being executed is:

 

_______________________________

 

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

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity: ________________________________________________________________________

Signature
of Authorized Signatory of Investing Entity: _________________________________________________

Name
of Authorized Signatory: ___________________________________________________________________

Title
of Authorized Signatory: ____________________________________________________________________

Date:
________________________________________________________________________________________

  

     

     

    

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

(To
assign the foregoing Warrant, execute this form and supply required information. Do not use this form to exercise the Warrant
to purchase shares.)

 

FOR
VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	Name:	 	
	 	 	(Please
    Print)
	 	 	 
	Address:	 	
	 	 	 
	Phone
    Number:	 	 
	 	 	 
	Email
    Address:	 	 
	 	 	 
	Dated:
    _______________ __, ______	 	 
	 	 	 
	Holder’s
    Signature: _____________________	 	 
	 	 	 
	Holder’s
    Address: ______________________

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