Document:

Exhibit
10.23

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

This EXECUTIVE EMPLOYMENT
AGREEMENT (the “Agreement”) is entered into effective September 13, 2022 (the “Effective Date”),
by and between Peter Wolfe (“Executive”) and ZyVersa Therapeutics Inc., a Florida corporation (the “Company”).
Each of the Company and Executive is a “Party” and, collectively, they are the “Parties.”

 

WHEREAS, Executive currently
serves as the Company’s Chief Financial Officer;

 

WHEREAS, the Company has entered
into a Business Combination Agreement, dated as of July 20, 2022 (the “Business Combination Agreement”), with Larkspur
Health Acquisition Corp., a blank check company incorporated as a Delaware corporation (“Larkspur”), pursuant to which
a wholly owned subsidiary of Larkspur will merge with and into the Company (the “Acquisition Merger”), with the Company
being the surviving entity in the Acquisition Merger;

 

WHEREAS, in contemplation
of the consummation of the transactions contemplated by such Business Combination Agreement, upon closing of the Acquisition Merger, the
Company desires to continue to retain Executive as its Chief Financial Officer; and

 

WHEREAS, the Company and Executive
desire to set forth the terms and conditions of Executive’s employment following the closing of the Acquisition Merger;

 

NOW, THEREFORE, in consideration
of the mutual promises and covenants contained herein, the Parties agree as follows:

 

1.
EMPLOYMENT BY THE COMPANY.

 

1.1
Effectiveness. This Agreement shall become effective at the effective time (the “Effective Time”) of
the Acquisition Merger. In the event that the Effective Time does not occur for any reason on or before December 31, 2022, this Agreement
shall be null and void ab initio and of no force and effect.

 

1.2
At-Will Employment. Executive shall be employed by the Company on an “at will” basis, meaning that either the
Company or Executive may terminate Executive’s employment at any time, with or without cause or advance notice; provided, however,
that Executive agrees to provide the Company with not less than thirty (30) days advance written notice of any resignation, although the
Company may waive such notice period in its discretion (except as otherwise set forth in Section 6.4 below). Any contrary representations
that may have been made to Executive shall be and are hereby superseded by this Agreement. This Agreement shall constitute the full and
complete agreement between Executive and the Company regarding the “at will” nature of Executive’s employment with the
Company, which may be changed only in an express written agreement signed by Executive and the Chief Executive Officer of the Company
(“CEO”) or the Chairman of the Company’s board of directors (the “Board”). Executive’s
rights to any compensation following a termination shall be only as set forth in Section 6. For purposes of the Agreement, references
to the Board shall include an applicable committee of the Board.

 

1.3
Position. Subject to the terms set forth herein, the Company agrees to employ Executive in the position of Chief Financial
Officer. Executive hereby accepts such employment. Executive will report to the CEO and the Board.

 

     

     

    

 

1.4
Duties. Executive shall faithfully perform all duties related to the position or positions held by Executive, including
but not limited to all duties set forth in this Agreement and/or in the bylaws, as applicable, of the Company related to the position
or positions held by Executive and all additional duties as may be prescribed or directed from time to time by the CEO or the Board. Executive
shall devote Executive’s full business time and attention to the performance of Executive’s duties and responsibilities on
behalf of the Company and in furtherance of its best interests. Executive shall make such business trips at the Company’s expense
to such places as may be necessary for or otherwise directed by the Company.

 

1.5
Company Policies. Executive shall comply with all policies, standards, rules, and regulations of the Company (a “Company
Policy” or collectively, the “Company Policies”) and all applicable government laws, rules, and regulations
that are now or hereafter in effect. Executive acknowledges receipt of copies of all written Company Policies that are in effect as of
the date of this Agreement. Notwithstanding the foregoing, in the event that 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
Salary. The Company shall pay Executive an annualized base salary of $395,000.00, payable subject to applicable tax withholding
requirements, in accordance with the Company’s standard payroll practices (“Base Salary”). The Board will from
time to time review Executive’s Base Salary and future increases in compensation, if any, will be made by the Board in its sole
and absolute discretion.

 

2.2
Bonus. During the period Executive is employed with the Company, Executive shall be eligible to receive an annual performance-based
cash bonus of up to 40% of Base Salary (“Target Amount”), subject to review and adjustment by the Board in its sole
discretion. After the completion of each performance period, the Board shall review the achievement of any performance goals by Executive
and determine the amount of the performance-based cash bonus earned by Executive based upon Executive’s achievement of such performance
goals. Executive shall be considered to have earned any such bonus only if Executive is employed on the last day of the performance period.
Any annual performance bonus will generally be paid by March 15th of the year following the year in which the applicable performance period
ends, provided that, except as set forth in Sections 6.1, 6.5 and 6.6, Executive must be employed by the Company at the time the annual
bonus is paid to receive such bonus; otherwise the bonus is forfeited.

 

2.3
Equity Awards. Subject to approval of the Board, Executive may be eligible for certain grants of equity awards of Common
Stock of the Company, subject to vesting and other terms and conditions of the Company equity plan to which the award is granted and an
award agreement to be provided by the Company and entered into with the Executive.

 

2.4
Benefits. Executive will be eligible to participate on the same basis as similarly situated employees of the Company in
the Company’s benefit plans in effect from time to time during Executive’s employment. All matters of eligibility for coverage
or benefits under any benefit plan shall be determined in accordance with the provisions of such plan. The Company reserves the right
to change, alter, or terminate any benefit plan in its sole discretion.

 

2.5
Expense Reimbursement. The Company shall reimburse Executive for all customary and appropriate business-related expenses
actually incurred and documented in accordance with Company Policy, as in effect from time to time. For the avoidance of doubt, to the
extent that any reimbursements payable to Executive are subject to the provisions of Section 409A of the Internal Revenue Code of 1986,
as amended (the “Code”): (a) any such reimbursements will be paid no later than December 31 of the year following the
year in which the expense was incurred, (b) the amount of expenses reimbursed in one year will not affect the amount eligible for reimbursement
in any subsequent year, and (c) the right to reimbursement under this Agreement will not be subject to liquidation or exchange for another
benefit. If under the terms of this Agreement or otherwise Executive is entitled to a tax gross-up payment, the gross-up payment will
be made by December 31 of the year following the year in which the Executive remits the related taxes.

 

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3.
PROPRIETARY INFORMATION, INVENTIONS, NON-COMPETITION AND NON-SOLICITATION OBLIGATIONS.

 

3.1
Proprietary Information & Restrictive Covenant Agreement. As a condition of employment and/or continued employment with
the Company, Executive agrees to execute and abide by the Proprietary Information & Restrictive Covenant Agreement (the “Proprietary
Information Agreement”), attached hereto as Exhibit A, simultaneously with the Executive’s execution of this Agreement.
The Proprietary Information Agreement may be amended by the Parties from time to time without regard to this Agreement. The Proprietary
Information Agreement contains provisions that are intended by the Parties to survive and do survive termination of this Agreement.

 

3.2
Permissible Communications. Notwithstanding anything to the contrary in the Proprietary Information Agreement, Executive
acknowledges that nothing in the Proprietary Information Agreement shall be construed to prohibit Executive from (a) filing a charge or
complaint with, or participating in any proceeding before, a government agency authorized to enforce and investigate suspected violations
of federal antidiscrimination laws, labor relations laws, occupational health and safety laws, wage and hour laws, and such similar state
or local laws; (b) reporting possible violations of federal securities laws to the appropriate government enforcing agency and making
such other disclosures that are expressly protected under such laws, or (c) responding truthfully to inquiries from, or otherwise cooperating
with, any governmental or regulatory investigation (the activities set forth in clauses (a) through (c) are collectively referred to as
the “Protected Activities”). Executive understands that in connection with such Protected Activities, Executive is
permitted to disclose documents or other information as permitted by law, and without giving notice to, or receiving authorization from,
the Company; provided, however, that Executive agrees to take all reasonable precautions to prevent any unauthorized use or disclosure
of any information that may constitute Proprietary Information under the Proprietary Information Agreement to any parties other than the
appropriate government agencies. Executive further understands that “Protected Activities” do not include the disclosure of
any Company attorney-client privileged communications, and that any such disclosure without the Board’s written consent shall constitute
a material breach of this Agreement.

 

3.3
Defend Trade Secrets Act. Pursuant to the Defend Trade Secrets Act of 2016, Executive acknowledges that Executive will not
have criminal or civil liability under any Federal or State trade secret law for the disclosure of a trade secret that (a) is made (i)
in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney and (ii) solely for
the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit
or other proceeding, if such filing is made under seal. In addition, if Executive files a lawsuit for retaliation by the Company for reporting
a suspected violation of law, Executive may disclose the trade secret to Executive’s attorney and may use the trade secret information
in the court proceeding, if Executive (x) files any document containing the trade secret under seal and (y) does not disclose the trade
secret, except pursuant to court order.

 

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4.
OUTSIDE ACTIVITIES DURING EMPLOYMENT. Except with the prior written consent of the Board, Executive will not, while
employed by the Company, undertake or engage in any other employment, occupation, or business enterprise that would interfere with Executive’s
responsibilities and the performance of Executive’s duties hereunder or otherwise create an actual, potential or apparent conflict
of interest with respect to Executive’s employment hereunder, except for (i) reasonable time devoted to volunteer services for or
on behalf of such religious, educational, non-profit, and/or other charitable organization, (ii) reasonable time devoted to activities
in the non-profit community, (iii) advisory or board of director roles set forth on Exhibit B or as otherwise approved by the Board
in advance in writing, and (v) such other activities as may be specifically approved by the Board in writing. This restriction shall not,
however, preclude Executive from owning less than five percent (5%) of the total outstanding shares of a publicly traded company, or employment
or service in any capacity with any entity within the Company.

 

5.
NO CONFLICT WITH EXISTING OBLIGATIONS. Executive represents that Executive’s performance of all the terms of
this Agreement and as an executive of the Company do not and will not breach or in any way conflict any agreement or obligation of any
kind made prior to Executive’s employment by the Company, including agreements or obligations Executive may have with prior employers
or entities for which Executive has provided services, and Executive further warrants and represents that Executive is not subject to
any agreement, covenant or other restriction that would prohibit, impede or otherwise limit Executive’s ability to perform his duties
and obligations hereunder, including without limitation any non-competition or non-solicitation obligations owing to a former employer.
Executive has not entered into, and Executive agrees that Executive will not enter into, any agreement or obligation, either written or
oral, in conflict herewith.

 

6.
TERMINATION OF EMPLOYMENT. The provisions in this Section govern the compensation, if any, to be provided to Executive
upon termination of employment and do not alter Executive’s status as an at-will employee.

 

 6.1 Termination by the Company Without Cause; Resignation by Executive for Good Reason.

 

(a)
The Company shall have the right to terminate Executive’s employment with the Company pursuant to this Section 6.1 at any
time without “Cause” (as defined in Section 6.2(b) below) by giving notice as described in Section 7.1 of this Agreement.
A termination pursuant to Sections 6.3, 6.5 and 6.6 below is not a termination without “Cause” for purposes of receiving the
benefits described in this Section 6.1.

 

(b)
If the Company terminates Executive’s employment at any time without Cause, or Executive resigns for Good Reason pursuant
to Section 6.4, provided that such termination constitutes a “separation from service” as defined under Treasury Regulation
Section 1 .409A-1(h) (a “Separation from Service”), then Executive shall be entitled to receive the Accrued Obligations
(defined below) and, subject to Executive’s compliance with the obligations in Section 6.1(c) below, then Executive shall also be
entitled to receive the following (collectively, the “Severance Benefits”):

 

(i)
an amount equal to Executive’s then current Base Salary for twelve (12) months (the “Severance Period”),
less all applicable withholdings and deductions, paid (subject to Section 6.7) in equal installments beginning, subject to Section 6.9,
on the Company’s first regularly scheduled payroll date following the Release Effective Date (as defined in Section 6.1(c) below),
with the remaining installments occurring on the Company’s regularly scheduled payroll dates thereafter;

 

(ii)
an amount equal to any bonus earned for the year preceding the year in which Executive’s Separation from Service occurs,
but unpaid as of Executive’s Separation from Service, such amount to be paid in a single lump sum payment within sixty (60) days
following Executive’s Separation from Service; and

 

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(iii)
if Executive elects continued group coverage pursuant to the applicable provisions of Title X of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”) under the Company’s group health plan (including without limitation dental
and vision coverage), the Company will waive the cost of such coverage (or reimburse Executive on a monthly basis with an appropriate
tax gross-up to the extent necessary to provide Executive with the same economics as a waiver of premiums) to the extent that such cost
exceeds the cost that the Company charges active employees for similar coverage, until the earlier of (A) the completion of twelve (12)
months of COBRA coverage, (B) the date that Executive becomes covered under a group health plan of another employer, or (C) the date that
Executive’s COBRA coverage otherwise terminates. The Company may modify its obligation to provide such benefit to the extent reasonably
necessary to avoid any penalty or excise taxes imposed on it under the Patient Protection and Affordable Care Act of 2010, as amended,
provided that it does so in a manner that to the extent possible, as determined by the Company in its reasonable discretion, preserves
the economic benefit and original intent of such benefit but does not cause such a penalty or excise tax

 

(c)
Executive will be paid all of the Accrued Obligations on the Company’s first payroll date after Executive’s date of
termination from employment or earlier if required by law. Executive shall receive the Severance Benefits pursuant to Section 6.1(b) of
this Agreement only if: (i) Executive signs and delivers to the Company an effective, general release of claims in a form acceptable to
the Company (the “Release”), by the 60th day following Executive’s Separation from Service or such earlier date
as set forth in the Release, which cannot be revoked in whole or part (if applicable) by such date or such earlier date as set forth in
the Release (the date that the Release can no longer be revoked is referred to as the “Release Effective Date”); (ii)
if Executive holds any other positions with the Company, Executive resigns such position(s) to be effective no later than the date of
Executive’s termination date (or such other date as requested by the Board); (iii) Executive returns all Company property in accordance
with the terms and conditions of the Proprietary Information Agreement; (iv) Executive complies and continues to comply with all post-termination
obligations under this Agreement and the Proprietary Information Agreement; and (v) Executive complies with the terms of the Release,
including without limitation any non-disparagement and confidentiality provisions contained in the Release. To the extent that any Severance
Benefits are deferred compensation under Section 409A of the Code, and are not otherwise exempt from the application of Section 409A,
then, if the period during which Executive may consider and sign the Release spans two calendar years, the payment of Severance Benefits
will not be made or begin until the later calendar year.

 

(d)
For purposes of this Agreement, “Accrued Obligations” are (i) Executive’s accrued but unpaid salary through
the date of termination, (ii) unreimbursed business expenses incurred by Executive and payable in accordance with the Company’s
standard expense reimbursement policies, and (iii) benefits owed to Executive and/or any beneficiaries or dependents of Executive under
any qualified retirement plan or health and welfare benefit plans in which Executive was a participant in accordance with applicable law
and the provisions of such plan.

 

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(e)
The Severance Benefits provided to Executive pursuant to this Section 6.1 are in lieu of, and not in addition to, any benefits
to which Executive may otherwise be entitled under any Company severance plan, policy or program, and Executive acknowledges and agrees
that Executive shall have no rights or entitlements to any benefits or payments under any such plan, policy or program.

 

(f)
Any damages caused by the termination of Executive’s employment without Cause or Executive’s resignation for Good Reason
would be difficult to ascertain; therefore, the Severance Benefits for which Executive is eligible pursuant to Section 6.1(b) above in
exchange for the Release is agreed to by the Parties as liquidated damages, to serve as full compensation, and not a penalty.

 

6.2   Termination
by the Company for Cause.

 

(a)
Subject to Section 6.2(c) below, the Company shall have the right to terminate Executive’s employment with the Company at
any time for Cause by giving notice as described in Section 7.1 of this Agreement.

 

(b)
“Cause” shall mean (i) Executive’s failure, neglect, or refusal to perform Executive’s duties and
responsibilities under this Agreement (in each case, except where due to a Disability, sickness or illness); (ii) any act of Executive
that has, or could reasonably be expected to have, the effect of injuring the business or reputation of the Company; (iii) Executive’s
conviction of, or plea of guilty or no contest to: (x) a felony or (y) any other criminal charge that has, or could be reasonably expected
to have, an adverse impact on the performance of Executive’s duties to the Company or otherwise result in injury to the reputation
or business of the Company or any of its subsidiaries; (iv) Executive’s commission of an act of fraud, embezzlement or breach of
any fiduciary duty as against the Company; (v) any material violation by Executive of the policies of the Company, including but not limited
to those relating to sexual harassment or business conduct, and those otherwise set forth in the manuals or statements of policy of the
Company, as may be amended from time to time; (vi) Executive’s violation of federal or state securities laws; or (vii) Executive’s
material breach of this Agreement or breach of the Proprietary Information Agreement.

 

(c)
In the event Executive’s employment is terminated at any time for Cause, Executive will not receive Severance Benefits or
any other severance compensation or benefits, except that, pursuant to the Company’s standard payroll policies, the Company shall
pay to Executive the Accrued Obligations.

 

6.3   Resignation
by Executive Without Good Reason. Executive may resign from Executive’s employment with the Company at any time by giving notice
as described in Section 7.1, and subject to the advance notice requirement set forth in Section 1.1 above. In the event Executive resigns
from employment with the Company for any reason (other than a resignation for Good Reason as described in Section 6.4 below), Executive
will not receive Severance Benefits or any other severance compensation or benefits, except that the Company shall pay and provide the
Accrued Obligations.

 

 6.4 Resignation by Executive for Good Reason.

 

(a)
Provided Executive has not previously been notified of the Company’s intention to terminate Executive’s employment,
Executive may resign from employment with the Company for Good Reason (as defined in Section 6.4(b) below).

 

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(b)
“Good Reason” shall mean, without Executive’s written consent, (i) a material diminution in Executive’s
title, duties, or responsibilities as set forth in Section 3 hereof; (ii) any material breach of this Agreement by the Company (other
than a provision that is covered by clause (i)); or (iii) any relocation of Executive’s principal place of employment of more than
fifty (50) miles (unless Executive currently is working, or is provided the opportunity to work, remotely or otherwise not required to
relocate their principal place of employment, in which case this subpart (iii) shall not apply); provided, however, that Executive must
provide notice of Good Reason within thirty (30) days of the occurrence of the event giving rise to the purported Good Reason, after which
the Company shall have not less than thirty (30) days to cure the alleged Good Reason and, if such remains uncured, Executive must resign
from such employment within thirty (30) days of the expiration of the cure period. In the event that the Company reasonably believes that
Executive may have engaged in conduct constituting Cause, the Company may, in its sole and absolute discretion, suspend Executive’s
duties or employment which shall not constitute a basis for Good Reason hereunder or otherwise constitute a breach of this Agreement by
the Company; provided, that no such suspension shall alter the Company’s obligations under this Agreement during such period of
suspension.

 

(c)
In the event Executive resigns from Executive’s employment for Good Reason, and provided that such termination constitutes
a Separation from Service, then subject to Executive’s compliance with the obligations in Section 6.1(c) above, Executive shall
be eligible to receive the same Severance Benefits as described in Section 6.1 and on the same terms and conditions set forth in Section
6.1(c) and Section 6.1(e) as if Executive had been terminated by the Company without Cause.

 

(d)
Any damages caused by the termination of Executive’s employment for Good Reason would be difficult to ascertain; therefore,
the Severance Benefits for which Executive is eligible pursuant to Section 6.1(b) above in exchange for the Release is agreed to by the
Parties as liquidated damages, to serve as full compensation, and not a penalty.

 

6.5
 Termination by Virtue of Death of Executive. Executive’s employment shall automatically terminate in the event of
Executive’s death. In that event, the Company shall pay or provide Executive’s estate and/or Executive’s beneficiaries
and dependents, as applicable, the Accrued Obligations. In addition, the Company shall pay to Executive’s estate an amount equal
to any bonus earned for the year preceding the year in which Executive’s death occurs, but unpaid as of Executive’s death,
such amount to be paid in a single lump sum payment within sixty (60) days following Executive’s death.

 

6.6
Termination by Virtue of Disability of Executive. Subject to applicable state and federal law, the Company shall at all
times have the right, upon written notice to Executive, to terminate this Agreement based on Executive’s Disability. Termination
by the Company of Executive’s employment based on “Disability” shall mean termination because a qualified medical
doctor mutually acceptable to the Company and Executive or Executive’s personal representative has certified in writing that: (A)
Executive is unable, because of a medically determinable physical or mental disability, to perform the essential functions of Executive’s
job, with or without a reasonable accommodation, for more than one hundred and eighty (180) calendar days measured from the last full
day of work; or (B) by reason of mental or physical disability, it is unlikely that Executive will be able, within one hundred and eighty
(180) calendar days, to resume the essential functions of Executive’s job, with or without a reasonable accommodation, and to otherwise
discharge Executive’s duties under this Agreement. This definition shall be interpreted and applied consistent with the Americans
with Disabilities Act, the Family and Medical Leave Act, and other applicable law. In the event Executive’s employment is terminated
based on Executive’s Disability, Executive will not receive Severance Benefits or any other severance compensation or benefit, except
that, pursuant to the Company’s standard payroll policies, the Company shall pay and provide the Accrued Obligations. In addition,
the Company shall pay to Executive an amount equal to any bonus earned for the year preceding the year in which Executive’s Separation
from Service due to Disability occurs, but unpaid as of Executive’s Separation from Service, such amount to be paid in a single
lump sum payment within sixty (60) days following Executive’s Separation from Service.

 

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6.7
Change in Control Benefits. In the event the Company (or any surviving or acquiring corporation) terminates Executive’s
employment without Cause or Executive resigns for Good Reason within ninety (90) days before and twenty-four (24) months following the
effective date of a Change in Control (as defined in the Company’s current equity incentive plan), then Executive shall be entitled
to the Accrued Obligations and, provided that Executive complies with the obligations in Section 6.1(c) of this Agreement (including the
requirement to provide an effective Release), Executive shall be eligible to receive the same Severance Benefits as described in Section
6.1(b) and on the same conditions as if Executive had been terminated by the Company without Cause and each of the following, provided,
however, that if the Change in Control is a change in ownership of a corporation, a change in the effective control of a corporation,
or a change in ownership of a substantial portion of a corporation’s assets within the meaning of Treasury Regulation Section 1.409A-3(i)(5),
the cumulative amount of the severance payments payable (or remaining payable) under Section 6.1(a) shall be paid in a single lump sum
on or within thirty (30) days following such Change in Control:

 

(i)
Executive shall receive a bonus for the year in which Executive’s Separation from Service occurs equal to the Target Amount
payable as a single lump sum payment within sixty (60) days following Executive’s Separation from Service; and

 

(ii)
In the event that any equity awards issued by the Company to Executive that are outstanding as of the closing of such Change in
Control are assumed or continued (in accordance with their terms) by the surviving entity in such Change in Control, then 100% of the
unvested portion of such equity awards shall become vested as of Executive’s Separation from Service.

 

6.8
Cooperation with Company after Termination of Employment. Following termination of Executive’s employment for any
reason, Executive agrees to cooperate (a) with the Company in (i) the defense of any legal matter involving any matter that arose during
or otherwise related in any way to Executive’s employment with the Company, and (ii) all matters relating to the winding up of Executive’s
pending work and the orderly transfer of any such pending work to such other employees as may be designated by the Company; (b) with all
government authorities on matters pertaining to any investigation, litigation or administrative proceeding pertaining to the Company;
and (c) such other matters as the Company may reasonably request. Following termination of Executive’s employment for any reason,
and in the event of a failure by Executive (following reasonable efforts by the Company to secure his voluntary cooperation) to resign
from any position as officer or director of the Company, with such resignation to be effective no later than the date of Executive’s
termination date (or such other date as requested by the Board), the Company is hereby irrevocably authorized to appoint its then-current
Chief Executive Officer to act in Executive’s name and on his behalf to execute any documents and to do all things reasonably necessary
to effect such resignation. Further, Executive shall not, at any time after termination of Executive’s employment for any reason,
represent himself as being an agent or representative of the Company, unless expressly authorized in a written agreement executed by an
authorized officer of the Company.

 

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 6.9 Application of Section 409A.

 

(a)
It is intended that all of the severance payments payable under this Agreement satisfy, to the greatest extent possible, the exemptions
from the application of Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect
(collectively, “Section 409A”) provided under Treasury Regulations Sections 1.409A- 1 (b)(4) and 1.409A-1(b)(9), and
this Agreement will be construed in a manner that complies with Section 409A. If not so exempt, this Agreement (and any definitions hereunder)
will be construed in a manner that complies with Section 409A, and incorporates by reference all required definitions and payment terms.

 

(b)
The preceding provisions shall not be construed as a guarantee by the Company of any particular tax effect to Executive under this
Agreement. The Company shall not be liable to Executive for any payment made under this Agreement which is determined to result in an
additional tax, penalty or interest under Section 409A, nor for reporting in good faith any payment as an amount includible in gross income
under Section 409A.

 

(c)
No severance payments will be made under this Agreement unless Executive’s termination of employment constitutes a “separation
from service” (as defined under Treasury Regulation Section 1.409A-1(h)).

 

(d)
For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulations Section 1.409A-2(b)(2)(iii)),
Executive’s right to receive any installment payments under this Agreement (whether severance payments 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.

 

(e)
If the Company determines that the severance benefits provided under this Agreement constitutes “deferred compensation”
under Section 409A and if Executive is a “specified employee” of the Company, as such term is defined in Section 409A(a)(2)(B)(i)
of the Code at the time of Executive’s Separation from Service, then, solely to the extent necessary to avoid the incurrence of
the adverse personal tax consequences under Section 409A, the timing of the Severance Benefits will be delayed as follows: on the earlier
to occur of (i) the date that is six months and one day after Executive’s Separation from Service, and the date of Executive’s
death (such earlier date, the “Delayed Initial Payment Date”), the Company will (1) pay to Executive a lump sum amount
equal to the sum of the Severance Benefits that Executive would otherwise have received through the Delayed Initial Payment Date if the
commencement of the payment of the Severance Benefits had not been delayed pursuant to this Section 6.8, and (2) commence paying the balance
of the Severance Benefits in accordance with the applicable payment schedule set forth in Section 6.1. No interest shall be due on any
amounts deferred pursuant to this Section 6.8.

 

 6.10 Parachute Payments.

 

(a)
Notwithstanding any other provisions of this Agreement to the contrary, in the event that it shall be determined that any payment
or distribution to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise (a “Payment”) would be nondeductible by the Company for Federal income tax purposes because
of Section 280G of the Code, the Company shall reduce the aggregate present value of the Payments under this Agreement to the Reduced
Amount (as defined below) if, and only if, reducing the Payments under this Agreement will provide Executive with a greater net after-tax
amount than would be the case if no such reduction was made, taking into account the applicable federal, state, local and foreign income,
employment and other taxes, including the excise tax imposed by Section 4999 of the Code. If a reduction in the Payments is necessary,
such reduction shall occur in the following order: (1) reduction of cash payments; (2) cancellation of accelerated vesting of equity awards
other than stock options; (3) cancellation of accelerated vesting of stock options; and (4) reduction of other benefits paid to Executive.
Within any such category of payments and benefits (that is, clauses (1), (2), (3) or (4) of this Section 6.9(a)), a reduction shall occur
first with respect to amounts that are not “deferred compensation” within the meaning of Section 409A of the Code and then
with respect to amounts that are. The “Reduced Amount” shall be an amount expressed in present value that maximizes
the aggregate present value of Payments under this Agreement without causing any Payment to be nondeductible by the Company because of
Section 280G of the Code.

 

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(b)
All determinations to be made under this Section 6.9 shall be made at the Company’s expense by a firm of certified public
accountants of national standing selected by the Company (the “Accounting Firm”) which may be the firm regularly auditing
the financial statements of the Company. The Company and Executive shall furnish to the Accounting Firm such information and documents
as the Accounting Firm may reasonably require in order to make a determination under this Section. To the extent requested by Executive,
the Company shall cooperate with Executive in good faith in valuing, and the Accounting Firm shall value, services to be provided by Executive
(including refraining from performing services pursuant to a covenant not to compete) before, on or after the date of the transaction
which cause the application of Section 280G of the Code such that payments in respect of such services may be considered to be “reasonable
compensation” within the meaning of the regulations under Section 280G of the Code. In making its determinations hereunder, the
Accounting Firm shall apply reasonable, good faith interpretations regarding the applicability of Section 280G and Section 4999, along
with any other applicable portions of the Code or other tax laws. The Accounting Firm shall make all determinations required to be made
under this Section and shall provide detailed supporting calculations to the Company and Executive within 30 days after the Termination
Date or such earlier time as is requested by the Company, and provide an opinion to Executive that he or she has substantial authority
not to report any excise tax on his or her Federal income tax return with respect to any Payments. Any such determination by the Accounting
Firm shall be binding upon the Company and Executive. Subject to Sections 6.1(c) and 6.9, within five business days thereafter, the Company
shall pay to or distribute to or for the benefit of Executive such amounts as are then due to Executive under this Agreement.

 

(c)
As a result of the uncertainty in the application of Section 280G of the Code at the time of the initial determination by the Accounting
Firm or the Company hereunder, it is possible that Payments, as the case may be, will have been made by the Company which should not have
been made (“Overpayment”) or that additional Payments, as the case may be, which will not have been made by the Company
could have been made (“Underpayment”), in each case, consistent with the calculations required to be made hereunder.
In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against Executive which
the Accounting Firm believes has a high probability of success determines that an Overpayment has been made, promptly on notice and demand
Executive shall repay to the Company any such Overpayment paid or distributed by the Company to or for the benefit of Executive together
with interest at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code; provided, however, that no such amount
shall be payable by Executive to the Company if and to the extent such payment would not either reduce the amount on which Executive is
subject to tax under Section 1 and Section 4999 of the Code or generate a refund of such taxes. In the event that the Accounting Firm,
based upon controlling precedent or other substantial authority, determines that an Underpayment has occurred, any such Underpayment shall
be promptly paid by the Company to or for the benefit of Executive together with interest at the applicable federal rate provided for
in Section 7872(f)(2)(A) of the Code.

 

    10

     

    

 

 7. GENERAL PROVISIONS.

 

7.1
Notices. Any notices required hereunder to be in writing shall be deemed effectively given: (a) upon personal delivery to
the Party to be notified, (b) when sent by electronic mail or confirmed facsimile if sent during normal business hours of the recipient,
and if not, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested,
postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written
verification of receipt. All communications shall be sent to the Company at its primary office location and to Executive at Executive’s
address as listed on the Company payroll, or at such other address as the Company or Executive may designate by ten (10) days advance
written notice to the other.

 

7.2
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 as if such invalid, illegal
or unenforceable provisions had never been contained herein.

 

7.3
Survival. Provisions of this Agreement which by their terms must survive the termination of this Agreement in order to effectuate
the intent of the Parties will survive any such termination, whether by expiration of the term, termination of Executive’s employment,
or otherwise, for such period as may be appropriate under the circumstances.

 

7.4
Waiver. If either Party should waive any breach of any provisions of this Agreement, it shall not thereby be deemed to have
waived any preceding or succeeding breach of the same or any other provision of this Agreement.

 

7.5
Complete Agreement. This Agreement constitutes the entire agreement between Executive and the Company with regard to the
subject matter hereof. This Agreement is the complete, final, and exclusive embodiment of their agreement with regard to this subject
matter and supersedes any prior oral discussions or written communications and agreements. This Agreement is entered into without reliance
on any promise or representation other than those expressly contained herein, and it cannot be modified or amended except in writing signed
by Executive and an authorized officer of the Company. The Parties have entered into a separate Proprietary Information Agreement and
have entered or may enter into separate agreements related to equity. These separate agreements govern other aspects of the relationship
between the Parties, have or may have provisions that survive termination of Executive’s employment under this Agreement, may be
amended or superseded by the Parties without regard to this Agreement and are enforceable according to their terms without regard to the
enforcement provision of this Agreement.

 

7.6
Headings. The headings of the sections hereof are inserted for convenience only and shall not be deemed to constitute a
part hereof nor to affect the meaning thereof.

 

7.7
Successors and Assigns. The Company shall assign this Agreement and its rights and obligations hereunder in whole, but not
in part, to any company or other entity with or into which the Company may hereafter merge or consolidate or to which the Company may
transfer all or substantially all of its assets, if in any such case said Company or other entity shall by operation of law or expressly
in writing assume all obligations of the Company hereunder as fully as if it had been originally made a Party, but may not otherwise assign
this Agreement or its rights and obligations hereunder. Executive may not assign or transfer this Agreement or any rights or obligations
hereunder, other than to Executive’s estate upon death.

 

    11

     

    

 

7.8
Withholding. All amounts payable hereunder shall be subject to applicable tax withholding.

 

7.9
Governing Law. This Agreement shall be governed by the Federal Arbitration Act with respect to the arbitration provisions
and related matters in Sections 7.10 and 7.11, and for all other matters shall be governed by the laws of the State of Delaware, without
giving effect to any principles thereof relating to conflicts of law.

 

7.10
Dispute Resolution. To the fullest extent permitted by applicable law, any dispute or controversy between the Parties relating
to or arising out of this Agreement or any amendment or modification hereof, or any other claims between the Parties relating to or arising
out of Executive’s employment or affiliation with the Company or termination thereof (including but not limited to any claims for
harassment, discrimination, violation of wage and hour laws, whistleblowing, retaliation, leave rights, employee benefits, tort claims
and any claims under federal, state or local statutes, regulations or ordinances relating to employment matters) shall, except as expressly
set forth below, be exclusively determined by confidential individual arbitration in [•], Florida, or such other location as the
Parties may agree in writing, under the auspices of the American Arbitration Association (“AAA”) and pursuant to the Federal
Arbitration Act and the Employment Arbitration Rules of the AAA. These rules may be accessed at the American Arbitration Association website,
www.adr.org/employment, and a printed copy will be provided upon request. Notwithstanding the foregoing, claims for injunctive or other
equitable relief by the Company under Section 3 of this Agreement may be brought in a court of competent jurisdiction (as described below).
Likewise, this arbitration requirement shall not apply to any criminal matters, matters for which arbitration is prohibited by law, or
claims for unemployment or workers compensation, and shall not prevent Executive from filing a charge with the EEOC or any other government
agency; provided that, unless prohibited by applicable law, any subsequent legal action shall be subject to individual arbitration as
provided herein. For the avoidance of doubt, any disputes or controversies arising out of or relating to the interpretation or application
of this arbitration provision, including but not limited to any question regarding the scope, enforceability, revocability or validity
of the arbitration provision or any portion of the arbitration provision, the arbitrability of any claim or dispute, and the jurisdiction
of the arbitrator, including jurisdiction over non-signatories to this Agreement, shall be subject to arbitration pursuant to this arbitration
provision. The arbitration award shall be final and binding upon the parties and judgment may be entered thereon by any court of competent
jurisdiction. The parties hereby agree that any federal or state court sitting in the State of Delaware is a court of competent jurisdiction.
The service of any notice, process, motion or other document in connection with any arbitration under this Agreement, the enforcement
of any arbitration award hereunder, or an action for injunctive or other equitable relief as provided for in this Section may be effectuated
either by personal service upon a party or by certified mail duly addressed to her, him or it or her, his or its executors, administrators,
personal representatives, next of kin, successors or assigns, at the last known address or addresses of such party or parties. Each party
hereto submits to the jurisdiction and venue of the state and federal courts located in the State of Delaware, for any action to compel
or stay arbitration, or an action by the Company seeking injunctive or other equitable relief under Section 4 of this Agreement (jurisdictional,
venue and inconvenient forum objections to which are hereby waived by the Parties). Pursuant to Delaware Code Section 2708(a), the Parties
agree that they are subject to the jurisdiction of the courts located in the State of Delaware and may be served with legal process within
the State of Delaware or in any other manner provided by law. THE PARTIES ACKNOWLEDGE AND AGREE THAT THEY ARE WAIVING THEIR RIGHT TO A
TRIAL BY JURY IN CONNECTION WITH ANY DISPUTE ARISING OUT OF THIS AGREEMENT OR RELATED TO EXECUTIVE’S EMPLOYMENT OR THE TERMINATION
THEREOF.

 

    12

     

    

 

7.11
Class Action Waiver. EXCEPT AS EXPRESSLY PROVIDED OTHERWISE IN THIS SECTION 7.11, ANY ARBITRATION OR COURT ACTION HEREUNDER
SHALL PROCEED SOLELY ON AN INDIVIDUAL BASIS WITHOUT THE RIGHT FOR ANY CLAIMS TO BE ARBITRATED OR LITIGATED ON A CLASS OR COLLECTIVE ACTION
BASIS OR ON A BASIS INVOLVING CLAIMS BROUGHT IN A PURPORTED REPRESENTATIVE CAPACITY ON BEHALF OF OTHERS OR ANY GOVERNMENTAL BODY OR THE
PUBLIC. CLASS AND COLLECTIVE ACTIONS UNDER THIS DISPUTE RESOLUTION PROVISION ARE PROHIBITED, WHETHER IN COURT OR ARBITRATION, AND THE
ARBITRATOR OR COURT, AS APPLICABLE, SHALL HAVE NO AUTHORITY TO PROCEED ON SUCH BASIS. NO DISPUTE, CONTROVERSY, CLAIM OR ACTION BROUGHT
IN COURT OR ARBITRATION BY EXECUTIVE ARISING UNDER OR RELATING TO THIS AGREEMENT OR OTHERWISE ARISING IN CONNECTION WITH OR RELATING TO
EXECUTIVE’S EMPLOYMENT MAY BE JOINED WITH A DISPUTE, CONTROVERSY, CLAIM OR ACTION OF ANOTHER EXECUTIVE OR OTHER PERSON OR ENTITY,
ANY SUCH JOINT CLAIMS BEING WAIVED BY EXECUTIVE HEREUNDER, EXCEPT THAT THE COMPANY MAY BRING CLAIMS IN ARBITRATION OR COURT TO ENFORCE
THIS AGREEMENT AND RELATED TORT, STATUTORY AND OTHER CLAIMS AGAINST EXECUTIVE AND OTHERS WHO ARE ACTING IN CONCERT OR PARTICIPATION WITH
EXECUTIVE, AND IN ANY SUCH PROCEEDING EXECUTIVE MAY JOIN ANY CLAIMS OF SUCH OTHER PARTIES (BUT NO OTHERS). ANY DISPUTES REGARDING THE
VALIDITY AND ENFORCEABILITY OF THIS SECTION 7.11 AND THE WAIVER HEREIN SHALL BE RESOLVED EXCLUSIVELY BY THE DULY-APPOINTED ARBITRATOR,
AND NOT BY A COURT OR OTHER GOVERNMENTAL OR ADMINISTRATIVE BODY. IN ANY CASE IN WHICH (1) THE DISPUTE IS FILED AS A CLASS, COLLECTIVE,
REPRESENTATIVE OR JOINT ACTION AND (2) THE ARBITRATOR FINDS ALL OR PART OF THE CLASS ACTION WAIVER TO BE INVALID OR UNENFORCEABLE, THE
CLASS, COLLECTIVE, REPRESENTATIVE OR JOINT ACTION TO THAT EXTENT MUST BE LITIGATED IN A COURT WITH JURISDICTION AND VENUE AS PROVIDED
IN SECTION 7.10, AND NOT IN ARBITRATION, BUT THE PORTION OF THE CLASS ACTION WAIVER THAT IS ENFORCEABLE SHALL BE ENFORCED IN ARBITRATION,
AND CLAIMS FALLING THEREUNDER SHALL BE ADJUDICATED IN ARBITRATION.

 

7.12
Counterparts. This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more
than one Party, but all of which taken together will constitute one and the same Agreement. Facsimile signatures and signatures transmitted
by PDF shall be equivalent to original signatures.

 

[SIGNATURES TO FOLLOW ON NEXT
PAGE]

 

    13

     

    

 

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

 

	 	ZYVERSA THERAPEUTICS, INC.
	 	 	 
	 	By:	                     
	 	Name: 	 
	 	Title:	 
	 	 	 
	 	EXECUTIVE:
	 	By:	 
	 	Name:	Peter Wolfe

 

    14

     

    

 

EXHIBIT A

 

PROPRIETARY INFORMATION & RESTRICTIVE COVENANT AGREEMENT

 

	Name:	 	(“Executive”)	 
	 	 	 
	Address:	 	 
	 	 	 
	Telephone:	 	 

 

	Employment Start Date:	                                              	 	 

 

		Employer:	ZyVersa Therapeutics, Inc., a Florida corporation, and any
of its affiliates, together with any of their respective successors or assigns (collectively, the “Company”).

 

In consideration
of my new or continued “Employment” (as defined below) and the compensation now and later paid to me for said Employment,
and other good and valuable consideration, the receipt and sufficiency of which I acknowledge, I agree to this Proprietary Information
& Restrictive Covenant Agreement (this “Agreement”), as follows:

 

This Agreement
sometimes refers to my “Employment.” I understand that my “Employment” means the entire period during which
I am employed by or otherwise providing services to the Company, including, all times during and after work hours, whether I am actively
employed or on any kind of leave of absence, and whether I am employed full-time or part-time, or providing services as a consultant or
director, regardless of whether such precedes or follows the date of this Agreement.

 

		1.	Company Confidential Information. All Confidential Information is the sole
property of the Company or its designee. I hereby assign to the Company all rights, title, and interest I may have or acquire in the Confidential
Information. At all times, both during and after my Employment, I agree to hold in the strictest confidence, not to use (except for the
benefit of the Company) and not to disclose to any person or entity (directly or indirectly), except as may be necessary in the ordinary
course of performing my duties as an employee of the Company or as expressly authorized by this Agreement, any Confidential Information
that I obtain or create during my Employment, unless the Company grants me written authorization to do otherwise.

 

I understand that “Confidential
Information” means all business, technical and other proprietary information belonging to the Company, as well as any Company
information not generally known by actual or potential competitors of the Company or by the public generally. Such information is Confidential
Information no matter how I learned of it -- whether disclosed to me, directly or indirectly, in writing, orally, by drawings or inspection
of documents or other tangible property or in any other manner or form, tangible or intangible. I understand specifically that Confidential
Information includes, but is not limited to, the following types of information:

 

		●	information belonging to others who have entrusted such information to the Company,
as further described in Section 3 below;

 

		●	information that would not have been known to competitors of the Company or the public
generally if I had not breached my obligations of confidentiality under this Agreement;

 

		●	information concerning research, inventions, discoveries, developments, techniques,
processes, formulae, technology, designs, drawings, engineering, specifications, algorithms, finances, sales or profit
figures, financial plans, customer lists, customers, prospective customers, potential investors, business plans, contracts, markets, investing
plans, product plans, marketing, distribution or sales methods or systems, products, services, production plans, system implementation
plans, business concepts, supplier or vendor information, business procedures or business operations related thereto;

 

     

     

    

 

		●	all computer software (in source, object or other code forms and including all
programs, modules, routines, interfaces and controls), data, databases, Internet designs and strategies, files and any documentation protocols
and/or specifications related to the foregoing;

 

		●	all know-how and/or trade secrets;

 

		●	all unpublished copyrightable material;

 

		●	any use, model, variation, application, reduction to practice, discussion and any
other communication or information in, regarding or relating to, or usable in or with any of the goods or services made, used or sold
by the Company; and

 

		●	all reproductions and copies of such things.

 

Notwithstanding the foregoing,
it is understood that, at all such times, I am free (a) to use information which was known to me prior to employment with the Company
or which is generally known in the trade or industry through no breach of this Agreement or other act or omission by me, or due to any
breach of any confidentiality obligation or improper act or omission by any third party, (b) to discuss the terms of my employment, wages
and working conditions to the extent expressly protected by applicable law, (c) to report possible violations of federal securities laws
to the appropriate government enforcing agency and make such other disclosures that are expressly protected under applicable law, and
(d) to respond to inquiries from, or otherwise cooperate with, any governmental or regulatory investigation (the activities set forth
in clauses (b) through (d) are, collectively, referred to as the “Protected Activities”). Prior to disclosure when
compelled by a court subpoena or order, I will provide prior written notice to the Chairman of the Board of Directors of the Company,
except that the Company in no way requires me to seek authorization from Company or inform Company about any Protected Activities.

 

Pursuant to the Defend Trade Secrets
Act of 2016, I acknowledge that I will not have criminal or civil liability under any Federal or State trade secret law for the disclosure
of a trade secret that (a) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly,
or to an attorney and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint
or other document filed in a lawsuit or other proceeding, if such filing is made under seal. In addition, if I file a lawsuit for retaliation
by Company for reporting a suspected violation of law, I may disclose the trade secret to my attorney and may use the trade secret information
in the court proceeding, if I (x) file any document containing the trade secret under seal and (y) do not disclose the trade secret, except
pursuant to court order.

 

		2.	Third Party Information Held by Executive. I recognize that I may have access
to confidential or proprietary information of former employers or other persons or entities with whom I have an agreement or duty to keep
such information confidential. I will not use any such information in my Employment, I will not disclose any such information to the Company
or any of its directors, officers, agents or other employees, or induce any of them to use any such information, and I will not bring
onto the premises of the Company any such information in any form, unless such person or entity has granted me written authorization to
do so. I further warrant that my performance of all the terms of this Agreement and my Employment does not and will not breach any agreement
to keep in confidence proprietary information, knowledge or data acquired by me prior to my employment with Company.

 

     

     

    

 

		3.	Third Party Information Held by the Company. I recognize that the Company
has received, and in the future shall receive, from other persons or entities information that is confidential or proprietary to such
person or entity; and, therefore, such persons or entities require the Company to maintain the confidentiality of such information and
to use it only for certain limited purposes. Consistent with the Company’s agreement with such persons or entities, I agree to treat
such information as Confidential Information pursuant to this Agreement.

 

		4.	Company Property; Return. I will not remove (either physically or electronically)
any property belonging to the Company from the Company’s premises, except as required in the ordinary course of my Employment, unless
the Company grants me written authorization to do so. Promptly upon the termination of my Employment, and earlier if the Company so requests
at any time, I shall deliver to the Company (and shall not keep copies in my possession or deliver to anyone else) all of the following
items:

 

		●	Documents, communications (including emails) and other materials containing or
comprising Confidential Information, including in particular, but not limited to, all software, records, data, notes, reports, proposals,
lists, correspondence, specifications, drawings, blueprints, sketches and laboratory notebooks, whether hard copies or soft copies (electronic
or digital, including as stored on any personal storage device or email or cloud account); and

 

		●	tangible property and equipment belonging to the Company (whether or not containing
or comprising Confidential Information), including in particular, but not limited to, laptop computers, devices, storage media, keys,
pass cards, identification cards, solutions, samples, models, marketing materials, brochures, purchase order forms and letterhead, and
all passwords needed for access to such things and all reproductions and copies of such things.

 

I further agree that should I discover
any Company property or Confidential Information in my possession after my termination and departure from the Company, I agree to return
it promptly to the Company without retaining copies or excerpts of any kind. To the extent that any such information is maintained in
any digital or non-tangible format, I agree that following my return of a copy of such information to the Company, I shall irrevocably
delete all such information such that it is no longer within my possession, custody or control (other than any such information existing
on any of the Company’s systems).

 

		5.	Assignment of Inventions; Disclosure and License of Prior Inventions; Work Product
Ownership.

 

I shall promptly make full written
disclosure to the Company, through my immediate supervisor or superior, of all Inventions. I understand that “Inventions”
means any and all inventions, original works of authorship (including designs, trademarks, service marks and drawings, whether manual
or electronic), findings, conclusions, data, discoveries, developments, concepts, designs, improvements, trade secrets, techniques, formulae,
processes and know- how, whether or not patentable or registrable under patent, copyright or similar laws, that I may solely or jointly
conceive, develop or reduce to practice, or cause to be conceived, developed or reduced to practice, during my Employment. I acknowledge
that Inventions do not include any innovations that I developed entirely on my own time without using the Company’s equipment, supplies,
facilities, or trade secrets, or Confidential Information, except to the extent such innovations either: (a) relate, at the time of conception,
reduction to practice, creation, derivation, development, or making of such innovation, to the Company’s business or actual or demonstrably
anticipated research or development; (b) result from or are connected with any work that I performed for the Company; or (c) apply to
any patent or invention covered by a contract between the Company and
the United States or any of its agencies requiring full title to such patent or invention to be in the United States. I shall hold all
Inventions in trust for the Company and I will treat all Inventions as Confidential Information.

 

     

     

    

 

I hereby do and will irrevocably
assign to the Company or its designee my entire right, title, and interest in and to any and all Inventions, which assignment operates
automatically upon the conception of the Invention. To the extent any of the rights, title and interest in and to the Inventions cannot
be assigned by me to Company, I hereby grant to Company an exclusive, royalty-free, transferable, irrevocable, worldwide, fully paid-up
license (with rights to sublicense through multiple tiers of sublicensees) to fully use, practice and exploit those non- assignable rights,
title and interest, including, but not limited to, the right to make, use, sell, offer for sale, import, have made, and have sold, the
Inventions. To the extent any of the rights, title and interest in and to the Inventions can neither be assigned nor licensed by me to
the Company, I hereby irrevocably waive and agree never to assert the non-assignable and non- licensable rights, title and interest against
the Company, any of the Company’s successors in interest, or any of the Company’s customers.

 

This Agreement does not apply
to any Inventions made by me prior to my Employment (the “Prior Inventions”), all of which are identified in Attachment
A hereto. If nothing is identified in Attachment A hereto, I represent that I have not created any Prior Inventions. I hereby
grant to the Company and the Company’s designees a royalty-free, transferable, irrevocable, worldwide, fully paid-up license (with
rights to sublicense through multiple tiers of sublicensees) to fully use, practice and exploit all patent, copyright, moral right, mask
work, trade secret and other intellectual property rights relating to any Prior Innovations that I incorporate, or permit to be incorporated,
in any Inventions. Notwithstanding the foregoing, I will not incorporate, or permit to be incorporated, any Prior Innovations in any Inventions
without the Company’s prior written consent.

 

I further recognize and agree
that all original works of authorship that are made by me (solely or jointly with others) during my Employment and which are protectable
by copyright (including, but not limited to, all original hard copy and electronic drawings and any manuals, instructions or other written
product) are “works made for hire,” as that term is defined in the United States Copyright Act. However, to the extent that
any such work may not, by operation of any law, be a work made for hire, I hereby, without additional payment or consideration, assign,
transfer and convey to the Company all of my worldwide right, title and interest in and to such work (a “Work”) and
all intellectual property rights relating to it.

 

		6.	Further Assurances. During and after my Employment, upon the request and
at the expense of the Company, I shall execute and deliver any and all documents and instruments, and do such other acts that may be necessary
or desirable to evidence the assignment and transfer described in Section 5. I shall do the same to enable the Company to secure its sole
and exclusive rights in the Inventions, Works and related intellectual property rights, or to apply for, prosecute and enforce intellectual
property rights with respect to any Inventions or Works, or to obtain any extension, validation, re-issue, continuance or renewal of any
such Intellectual Property Right, in each case in any and all jurisdictions. I agree to disclose to the Company all pertinent information
and data with respect to Inventions, Works and related intellectual property rights. In the event my Employment is terminated, I shall
do all the things described in this paragraph without charge to the Company other than a reasonable payment for my time involved.

 

If the Company is unable for any
other reason to secure my signature on any document described above, then I hereby irrevocably designate and appoint the Company and its
duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such
applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent or trademark, copyright
or other registrations thereon with the same legal force and effect as if executed by me. The foregoing is deemed a power coupled with
an interest and is irrevocable.

 

     

     

    

 

		7.	Non-Competition. During the Restricted Period (as defined below), to the extent permitted by the
laws of the State of Delaware or other applicable laws, I will not, in any capacity, directly or indirectly, with or without compensation,
own, manage, operate, join, control, advise or participate in, as a shareholder (other than as a shareholder with less than 1% of the
outstanding common stock of a public company), director, officer, manager, principal partner, employee, consultant, independent contractor,
technical or business advisor or otherwise (or any foreign equivalents of the foregoing), any person or entity that provides Competing
Services. I understand that “Competing Services” means any product, service, or process or the research or development
thereof, of any person or entity other than the Company that directly competes, in whole or part, with a product, service, or process,
including the research and development thereof, of the Company. “Restricted Period” means the period of Employment
and for a period of one (1) year after my Employment ends (regardless of the reason for such termination of Employment); provided, however,
that the Restricted Period shall not expire and shall be tolled during any period in which I am in violation of this Section 7 or Section
8, and therefore such Restricted Period shall be extended for a period equal to the duration of my violations thereof.

 

		8.	Non-Solicitation.

 

During the Restricted Period, I will
not, directly or indirectly, on my own behalf or on behalf of others, either:

 

		●	solicit, hire, recruit or attempt to persuade any person to terminate or materially
diminish such person’s employment with or engagement by the Company, regardless of whether or not such person is an employee or
contractor, whether such person is full-time or part-time, whether or not such employment is pursuant to a written agreement or is at-will,
and whether or not I initiated the discussion or sought out the contact; or

 

		●	solicit, contact or attempt to persuade any current or prospective customer of the
Company to terminate or materially alter such customer’s or prospective customer’s relationship with the Company; or

 

		●	solicit or assist in the solicitation of any current or prospective customer to
induce or attempt to induce any such customer or prospective customer to purchase or contract for any Competing Services. I understand
that “prospective customer” means any prospective customer of the Company with whom I had contact at any time during the twelve
(12) months preceding the termination of my Employment or who I was aware that the Company intended to purse as a prospective customer.

 

		9.	Non-Disparagement. At all times, both during and after my Employment, I agree
to refrain from taking any action, or making any statement (oral or written) that disparages or criticizes the Company or its officers,
directors, or employees, in any manner that causes, or is reasonably likely to cause, harm to the Company’s relationship with its
existing or potential suppliers, vendors, customers, investors, employees, contractors, or any other persons or entities with whom Company
engages in business. I understand that this provision does not apply to Protected Activities.

 

		10.	Duration; Nature. This Agreement is binding during my Employment and shall
survive any termination of my Employment. This Agreement does not bind the Company or me to any specific period of employment, and shall
not be construed in any manner as an employment agreement or to make my employment other than terminable at will at any time by the Company
in its sole discretion.

 

		11.	No Conflicts. I am not a party to any existing agreement that would prevent
me from entering into and performing this Agreement in accordance with its terms, including, without limitation, to an obligation to assign
my Inventions, Works or any related intellectual property rights to a third party or any agreement subjecting me to a non-compete, except
as identified in Attachment A hereto; and I will not enter into any other agreement that is in conflict with my obligations under
this Agreement.

 

     

     

    

 

		12.	Disclosure of Obligations. I consent to the Company’s notification
to any third party of the existence and content of this Agreement.

 

		13.	Equitable Relief. I agree that the provisions of this Agreement are reasonably
necessary to protect the Company’s legitimate business interests. I agree that it would be impossible or inadequate to measure and
calculate the Company’s damages from any breach of the covenants set forth in this Agreement, and that a breach of such covenants
could cause serious and irreparable injury to the Company. Accordingly, the Company shall have available, in addition to any other right
or remedy available to it, the right to seek an injunction from a court of competent jurisdiction restraining such a breach (or threatened
breach) and to specific performance of this Agreement. I further agree that no bond or other security shall be required in obtaining such
equitable relief and I hereby consent to the issuance of such injunction and to the ordering of specific performance.

 

		14.	No License. Nothing in this Agreement shall be deemed to constitute the
grant of any license or other right to me in respect of any Confidential Information, Invention, Work, related intellectual property right
or other data or intellectual property of the Company.

 

		15.	Amendment and Assignment. No modification to any provision of this Agreement
will be binding unless it is in writing and signed by both an authorized representative of the Company and me. No waiver of any rights
under this Agreement will be effective unless in writing signed by an authorized representative of the Company. I recognize and agree
that my obligations under this Agreement are of a personal nature and are not assignable or delegable in whole or in part by me. The Company
may assign this Agreement to any affiliate or to any successor- in-interest (whether by sale of assets, sale of stock, merger or other
business combination). All of the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable
by the respective heirs, executors, administrators, legal representatives, successors and permitted assigns of the Company and me.

 

		16.	Severability. If any provision of this Agreement or its application is adjudicated
to be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability (a) shall not affect any other provision or application
of this Agreement that can be given effect without the invalid or unenforceable provision or application and shall not invalidate or render
unenforceable such provision or application in any other jurisdiction and (b) shall be limited or excluded from this Agreement to the
minimum extent required so that this Agreement shall otherwise remain in full force and effect and enforceable in accordance with its
terms. For the avoidance of doubt, if this Agreement is or becomes subject to any state or federal law affecting the Company’s rights
with respect to any of my obligations under this Agreement, this Agreement shall be deemed amended to the extent necessary to comply with
such law.

 

		17.	Headings; Construction. The headings used in this Agreement have been inserted
for convenience of reference only and do not define or limit the provisions hereof. The Attachments to this Agreement are incorporated
herein by reference and shall be deemed a part of this Agreement.

 

		18.	Governing Law; Jurisdiction. This Agreement shall be governed by and interpreted
in accordance with laws of the of the State of Delaware without giving effect to any conflict of laws provisions, except matters of intellectual
property law which shall be determined in accordance with the intellectual property laws relevant to the intellectual property in question.
I consent to personal jurisdiction of the state and federal courts located in the State of Delaware for any lawsuit filed there against
me by the Company arising from or related to this Agreement, to the exclusion of all other courts, and I accept service of process by
registered or certified mail to the address set forth above (or to such other address that I provide to the Company) as if I were personally
served within the State of Delaware.

 

[Signature Page Follows]

 

     

     

    

 

I HAVE READ THIS AGREEMENT
CAREFULLY AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS THAT IT IMPOSES UPON ME WITHOUT RESERVATION, AND HEREBY ACKNOWLEDGE RECEIPT OF A
COPY OF SUCH AGREEMENT. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO SIGN THIS AGREEMENT. I SIGN THIS AGREEMENT
VOLUNTARILY AND FREELY AND INTENDING TO BE LEGALLY BOUND.

 

	Dated:	 	, 2022	 	Signature:	 
	 	 	Printed Name:	 

 

RECEIPT ACKNOWLEDGED

 AND ACCEPTED:

ZYVERSA THERAPEUTICS, INC.

 

	By:	 	 
	Name:	 	 
	Title:	 	 

 

     

     

    

 

ATTACHMENT A

 

Prior Inventions

 

	[  ]	None	 
	 	 	 
	List:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

     

     

    

 

EXHIBIT B

 

ADVISORY OR BOARD OF DIRECTOR
ROLESExhibit 10.1

 

QS ENERGY, INC.

TERM SHEET

NOTE PURCHASE AGREEMENT

September 6, 2022

 

	OFFERING	
	 	 
	INVESTMENT	Minimum
                                            Aggregate Investment of $150,000;

                                            Maximum Aggregate Investment of $300,000;

                                            Minimum Individual Investment of $5,000.
	 	 
	SECURITY	Convertible
                                            Promissory Note.
	 	 
	MATURITY DATE	Twelve
                                            Months from date of Closing.
	 	 
	CONVERTIBILITY	Conversion
                                            price of $0.03 per share.
	 	 
	PRINCIPAL	The
                                            principal amount of each Note will be 110% of the invested amount.
	 	 
	INTEREST	Implied
                                            annual interest rate of 10%, inasmuch as the Note will be issued and paid in an amount equal
                                            to 110% of the invested amount. If each Note is not paid in full on the Maturity Date, the
                                            unpaid balance will be increased by 10% and the new balance will bear interest at 10% per
                                            annum.
	 	 
	WARRANTS	The
                                            Warrants shall be issued at the same time each Note is issued to the Purchaser hereunder
                                            and shall be exercisable at $0.04 per share (the “Exercise Price”), for such
                                            number of shares equal to 100% of the result obtained by dividing (i) the face amount of
                                            the Notes issued simultaneously with the Warrant by (ii) the Conversion Price. The Warrants
                                            shall expire one (1) year from the date of issuance thereof.
	 	 
	 	Example: A $50,000
                              investment will receive a Note at a principal amount of $55,000, convertible to 1,833,333 shares of common
                              stock and a Warrant to purchase up to 1,833,333 shares at $0.04 per share.
	 	 
	CLOSING	The
                                            Closing Date of this Offering is on or before September 30, 2022. This Offering will close
                                            before September 30, 2022 if fully subscribed at the Maximum Aggregate Investment amount
                                            defined above.
	 	 
	REPAYMENT	Each
                                            Note can be repaid without penalty on or before the Maturity Date. If each Note is not paid
                                            in full on the Maturity Date, the unpaid balance will be increased by 10% and the new balance
                                            will bear interest at 10% per annum.
	 	 
	ELIGIBILITY	Accredited
                                            investors. Principals only.
	 	 
	RESTRICTIONS ON TRANSFER	The
                                            Notes, the Warrants and the shares of Common Stock issuable upon conversion of the Notes
                                            or exercise of the Warrants are not and will not be registered with or approved by the Securities
                                            and Exchange Commission (“SEC”) or any state securities agency, and when issued
                                            will be deemed restricted securities and bear appropriate legends.

 

The above summary
provides selected limited information regarding this offering and should be read in conjunction with, and is qualified in its entirety
by, the Securities Purchase Agreement, Form of Convertible Promissory Note and Form of Stock Warrant. There are substantial risks associated
with, and you must be prepared to bear the entire loss of, an investment in our Convertible Promissory Notes. We have agreed to make available,
prior to the consummation of the transaction contemplated herein, to each purchaser of our Convertible Promissory Notes, or his or her
or its representative(s) or both, the opportunity to ask questions of, and receive answers from, us or any person acting on our behalf
concerning the terms and conditions of this offering, and to obtain any additional information, to the extent that we possess such information
or can acquire it without unreasonable effort or expense, necessary to verify the accuracy of information about us and this offering.
We are a SEC reporting company, and, as such, make periodic filings with the SEC, which filings are available at www.sec.gov.
We urge you to review our filings, as well as the Securities Purchase Agreement, Form of Convertible Note and Form of Stock Purchase Warrant,
before deciding whether or not to invest in our Convertible Promissory Notes. In particular, we refer you to the Risk Factors section,
Management Discussion section and audited financials of our Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC
on March 31, 2022. Upon request, we will provide you with hard copies of the aforementioned SEC filing.

 

 

 

    	 	1	 

     

    

 

SECURITIES PURCHASE AGREEMENT

Convertible Promissory Notes
and

Stock Purchase Warrants

 

THIS SECURITIES
PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of _____________, 2022 by and between QS Energy, Inc., a
Nevada corporation (the “Issuer”) and those individuals and entities who sign and deliver an executed copy of this Agreement
to the Issuer (each, a “Purchaser” and collectively, the “Purchasers”), with reference to the following:

 

RECITALS

 

A.                 
Purchasers desire to purchase from Issuer and Issuer desires to sell to Purchaser certain of Issuer’s Convertible Notes,
in the aggregate face amount up to a maximum of Three Hundred Thousand Dollars ($300,000) in the form of Exhibit A attached hereto
(individually, a “Note” and collectively, the “Notes”), and certain of Issuer’s Stock Purchase Warrants
to purchase up to a certain number of shares of the common stock (the “Common Stock”) of the Issuer equal to 100% of the number
of shares initially issuable on conversion of the Notes, in the form of Exhibit B attached hereto (individually, the “Warrants”
and collectively with the Notes, the “Securities”). The face amount of the Note each Purchaser has committed to purchase,
and the amount of the purchase price thereof to be paid to the Issuer by the Purchaser (a “Commitment”) is listed on the signature
page such Purchaser executes and delivers to the Issuer. Minimum Commitment shall be no less than $5,000.

 

B.                 
Issuer’s sale of the Securities to the Purchasers may be made in reliance upon the provisions of Section 4(a)(2) under the
Securities Act of 1933, as amended (the "Securities Act") or Rule 506 of Regulation D promulgated by the Securities and Exchange
Commission (the ”SEC”) thereunder, or other applicable rules and regulations of the SEC or upon such other exemption from
the registration requirements of the Securities Act as may be available with respect to the transactions contemplated hereby.

 

C.                 
At any time when any amount of principal or interest of the Notes shall be outstanding, such unpaid amounts shall be convertible,
at the election of the Purchaser, into shares of the Issuer’s Common Stock at a price of $0.03 per share (the “Conversion
Price”).

 

D.                 
The Warrants shall be issued at the same time each Note is issued to the Purchaser hereunder and shall be exercisable at $0.04
per share (the “Exercise Price”), for such number of shares equal to 100% of the result obtained by dividing

(i) 
the face amount of the Notes issued simultaneously with the Warrant by (ii) the Conversion Price. The Warrants shall expire one
(1) year from the date of issuance thereof.

 

AGREEMENT

 

NOW THEREFORE,
in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, the covenants and agreements
set forth hereafter, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Purchasers
and the Issuer hereby agree as follows

 

1.  
Purchase of the Notes and Warrants. On the terms and subject to the conditions set forth in this Agreement and in the Notes
and Warrants, the Purchasers shall purchase from the Issuer and the Issuer shall sell to the Purchaser the Securities.

 

 

 

    	 	2	 

     

    

 

2. 
Purchaser’s Representations, Warranties and Covenants. In order to induce the Issuer to sell and issue the Securities
to the Purchaser under one or more exemptions from registration under the Securities Act, the Purchasers, severally and not jointly, represent
and warrant to the Issuer, and covenant with the Issuer, that:

 

(a)           
(i) Such Purchaser has the requisite power and authority to enter into and perform this Agreement, and each of the other agreements
entered into by the parties hereto in connection with the transactions contemplated by this Agreement (collectively, the "Transaction
Documents"), and to purchase the Securities in accordance with the terms hereof and thereof.

 

(ii)   
The execution and delivery of the Transaction Documents by the Purchaser and the consummation by it of the transactions contemplated
thereby have been duly and validly authorized by the Purchaser's organizational documents and no further consent or authorization is required
by the Purchaser.

 

(iii) 
The Transaction Documents have been duly and validly executed and delivered by the Purchaser.

 

(iv) 
The Transaction Documents, and each of them, constitutes the valid and binding obligation of the Purchaser enforceable against
the Purchaser in accordance with their respective terms, except as such enforceability may be limited by general principles of equity
or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the
enforcement of creditors' rights and remedies.

 

(b)           
The execution, delivery and performance of the Transaction Documents by the Purchaser and the consummation by the Purchaser of
the transactions contemplated thereby will not conflict with or constitute a default under any agreement or instrument to which the Purchaser
is a party or by which the Purchaser is bound.

 

(c)           
The Purchaser is acquiring the Securities for investment for its own account, and not with a view toward distribution thereof,
and with no present intention of dividing its interest with others or reselling or otherwise transferring or disposing of all or any portion
of either the Notes or Warrants. The undersigned has not offered or sold a participation in this purchase of either the Notes or Warrants,
and will not offer or sell any interest therein. The Purchaser further acknowledges that the Purchaser does not have in mind any sale
of either the Notes or Warrants currently or after the passage of a fixed or determinable period of time or upon the occurrence or non-occurrence
of any predetermined events or consequence; and that it has no present or contemplated agreement, undertaking, arrangement, obligation,
indebtedness or commitment providing for or which is likely to compel a disposition of either the Notes or Warrants and is not aware of
any circumstances presently in existence that are likely in the future to prompt a disposition thereof.

 

(d)          
The Purchaser acknowledges that the Securities have been offered to it in direct communication between itself and the Issuer and
not through any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or
similar media or on the Internet or broadcast over television or radio or presented in any seminar or any other general solicitation or
general advertisement.

 

(e)          
The Purchaser acknowledges that the Issuer has given it access to all information relating to the Issuer’s business that
it has requested. The Purchaser has reviewed all materials relating to the Issuer's business, finance and operations which it has requested
and the Purchaser has reviewed all of such materials as the Purchaser, in the Purchaser’s sole and absolute discretion shall have
deemed necessary or desirable. The Purchaser has had an opportunity ask questions of and to discuss the business, management and financial
affairs of the Issuer with the Issuer's management. Specifically but not by way of limitation, the Purchaser acknowledges the Issuer’s
publicly available filings made periodically with the SEC, which filings are available at www.sec.gov and which filings the Purchaser
acknowledges reviewing or having had the opportunity of reviewing.

 

 

 

    	 	3	 

     

    

 

(f) The Purchaser
acknowledges that it has, by reason of its business and financial experience, knowledge, sophistication and experience in financial and
business matters and in making investment decisions of this type that it is capable of (i) evaluating the merits and risks of an investment
in the Securities and making an informed investment decision in connection therewith; (ii) protecting its own interest; and (iii) bearing
the economic risk of such investment for an indefinite period of time for Securities which are not transferable or freely tradable. The
undersigned hereby agrees to indemnify the Issuer thereof and to hold each of such persons and entities, and the officers, directors and
employees thereof harmless against all liability, costs or expenses (including reasonable attorneys’ fees) arising by reason of
or in connection with any misrepresentation or any breach of warranties of the undersigned contained in this Agreement, or arising as
a result of the sale or distribution of the Securities or the Common Stock issuable upon conversion of the Notes or exercise of the Warrants,
by the undersigned in violation of the Securities Act, the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
or any other applicable law, either federal or state. This subscription and the representations and warranties contained herein shall
be binding upon the heirs, legal representatives, successors and assigns of the Purchaser.

 

(g)        
The Purchaser is familiar with the definition of an "accredited investor" as that term is defined in Rule 501(a) of
Regulation D of the Securities Act and represents and warrants to the Issuer that it is either (i) an accredited investor at such time
it was offered the Securities and will be on each date which it converts any of the Notes or exercises any of the Warrants as so defined
or (ii) a “qualified institutional buyer” as defined in Rule 144A under the Securities Act. Such Purchaser is not required
to be registered as a broker-dealer under Section 15 of the Exchange act. If the Purchaser is not a resident of the United States, the
Purchaser is not a “U.S. person[s]” as that term is defined in Rule 902 of Regulation S promulgated under the Securities
Act of 1933, as amended.

 

(h)          
During the term of this Agreement and the other Transaction Documents, the Purchaser will comply with the provisions of Section
9 of the Exchange Act, and the rules and regulations promulgated thereunder, with respect to transactions involving the Common Stock.
Commencing on the date on which the Purchaser received a term sheet from the Company or any representative or agent of the Company (written
or oral) setting forth the material terms of the transactions contemplated hereunder until the date hereof and during the term of this
Agreement and the other Transaction Documents, the Purchaser agrees not to sell the Issuer's Common Stock short or engage in any hedging
transactions in the Issuer’s Common Stock, either directly or indirectly, through its affiliates, principals, agents or advisors.

 

(i)           
The Purchaser is aware that the Notes and the Warrants, and the shares of Common Stock issuable upon conversion of the Notes or
exercise of the Warrants are restricted securities as defined under federal securities laws and are not freely tradeable and may only
be disposed of in compliance with state and federal securities laws. In connection with any transfer of the Notes and the Warrants, and
the shares of Common Stock issuable upon conversion of the Notes or exercise of the Warrants, other than pursuant to an effective registration
statement or Rule 144, the Issuer may require the transferor thereof to provide to the Issuer an opinion of counsel, the form and substance
of which opinion shall be reasonably satisfactory to the Issuer, to the effect that such transfer does not require registration of such
transferred Securities under the Securities Act. Further, the Purchaser understands and acknowledges that any certificates evidencing
the Notes, the Warrants or the shares of Common Stock issuable upon conversion of the Notes or exercise of the Warrants will be restricted
securities and not freely tradeable and will bear the legend in substantially the following form:

 

THE SECURITIES EVIDENCED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED FOR SALE UNDER ANY STATE SECURITIES
LAWS (COLLECTIVELY, “SECURITIES LAWS”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED UNLESS REGISTERED OR QUALIFIED
FOR SALE UNDER ALL APPLICABLE SECURITIES LAWS OR UNLESS, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER, IN FORM AND SUBSTANCE SATISFACTORY
TO THE ISSUER, ANY SUCH OFFER, SALE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION OR QUALIFICATION REQUIREMENTS OF SUCH SECURITIES
LAWS.

 

(j) The Purchaser
understands and acknowledges that following the purchase of the Notes, the Warrants and any shares of Common Stock issuable upon conversion
of the Notes or exercise of the Warrants, each may only be disposed of pursuant to either (i) an effective registration statement under
the Securities Act or (ii) an exemption from the registration requirements of the Securities Act.

 

 

 

    	 	4	 

     

    

 

(k)          
The Purchaser understands and acknowledges that the Issuer has neither filed a registration statement with the SEC or any state
authorities nor agreed to do so, nor contemplates doing so in the future for the transactions contemplated by this Agreement or the other
Transaction Documents, and in the absence of such a registration statement or exemption, the undersigned may have to hold the Notes, the
Warrants and any shares of Common Stock issuable upon conversion of the Notes or exercise of the Warrants, indefinitely and may be unable
to liquidate any of them in case of an emergency.

 

(l)   
The Purchaser is purchasing the Notes and Warrants, and will acquire any shares of Common Stock issuable upon conversion of the
Notes or exercise of the Warrants, for its own account for investment purposes and not with a view towards distribution and agrees to
resell or otherwise dispose of any of the Notes or the Warrants, or any shares of Common Stock issuable upon conversion of the Notes or
exercise of the Warrants, in accordance with the registration provisions of the Securities Act (or pursuant to an exemption from such
registration provisions).

 

(m)        
The Purchaser is not and will not be required to be registered as a "dealer" under the Exchange Act, either as a result
of its execution and performance of its obligations under this Agreement or otherwise.

 

(n)          
The Purchaser understands and acknowledges that proceeds raised in connection with this Agreement will be used by Issuer for general
working capital purposes, including without limitation, the payment of salaries and professional fees, overhead and general administrative
expenses.

 

(o)          
The Purchaser understands that it is liable for its own tax liabilities and has obtained no tax advice from the Issuer in connection
with the purchase of the Securities.

 

(p)          
The Purchaser will not pay or receive any finder’s fee or commission in respect of the consummation of the transactions contemplated
by this Agreement.

 

(q)          
Purchaser hereby agrees and acknowledges that it has been informed of the following: (i) there are factors relating to the subsequent
transfer of any of the Securities or shares of Common Stock underlying the Notes and Warrants that could make the resale of such Securities
or shares of Common Stock underlying the Notes and Warrants difficult; and (ii) there is no guarantee that the Purchaser will realize
any gain from the purchase of the Securities. The purchase of the Securities involves a high degree of risk and is subject to many uncertainties.
These risks and uncertainties may adversely affect the Company’s business, operating results and financial condition. In such an
event, the trading price for the Common Stock could decline substantially and Purchaser could lose all or part of its investment. Purchaser
is urged to review the risks identified under the Risk Factors section of Issuer’s Form 10-K for the year ended December 31, 2021,
as filed with the SEC on March 31, 2022.

 

(r)            
Purchaser understands and acknowledges that the Notes have an implied annual interest rate of 10%, inasmuch as the Notes will be
issued and paid in an amount equal to 110% of the Commitment, except that if a Note is not paid on the Maturity Date, which is twelve
(12) months from the date of issue of the Note, then the balance of the unpaid amount of the Note shall be increased by 10% and the Issuer
shall then commence paying interest thereon at the rate of 10% per annum until all sums due under the Note are paid.

 

 

 

    	 	5	 

     

    

 

		3.	Issuer’s Representations, Warranties and Covenants. The Issuer represents and warrants to the Purchaser that:

 

(a)           
The Issuer is a corporation duly organized and validly existing in good standing under the laws of the State of Nevada, and has
the requisite corporate power and authorization to own its properties and to carry on its business as now being conducted.

 

(b)           
(i)            The Issuer has the requisite corporate power and authority to enter into and perform this Agreement, and each of the other
agreements entered into by the parties hereto in connection with the transactions contemplated by the Transaction Documents, and to issue
the Notes and Warrants in accordance with the terms hereof and thereof.

 

(ii)           
the execution and delivery of the Transaction Documents by the Issuer and the consummation by it of the transactions contemplated
hereby and thereby, including without limitation the reservation for issuance and the issuance of the Notes and Warrants pursuant to this
Agreement, have been duly and validly authorized by the Issuer's Board of Directors and no further consent or authorization is required
by the Issuer, its Board of Directors, or its shareholders.

 

 (iii)           The Transaction Documents have been duly and validly executed and delivered by the Issuer.

 

(iv)         
The Transaction Documents, and each of them, constitutes the valid and binding obligation of the Issuer enforceable against the
Issuer in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of
creditors' rights and remedies.

 

(c)        
The execution, delivery and performance of the Transaction Documents by the Issuer and the consummation by the Issuer of the transactions
contemplated thereby will not conflict with or constitute a default under any agreement or instrument to which the Issuer is a party or
under any organizational documents of the Purchaser.

 

		4.	Closing and Deliverables.

 

(a)           
Subject to the provisions of Section 4(b) below, provided that the Issuer shall have received on or prior to September 30, 2022
copies of this Agreement executed by Purchaser, there shall be a closing or closings (each, a “Closing Date”) at which:

 

(i)            
Purchaser shall deliver to the Issuer immediately available funds, by check or by wire transfer (bank wiring instructions to be
provided by Issuer on request) in an amount equal to the amount of the Purchaser’s Commitment as set forth beside the name of the
Purchaser on the Purchaser’s signature page hereto. Funds paid to Issuer under this Agreement will be deposited in Issuer’s
operating account and used as working capital.

 

(ii)           
The Issuer shall deliver to the Purchaser (x) a Note, in the face amount equal to 110% of the Purchaser’s Commitment and
(y) a Warrant to purchase the exercisable amount of the Issuer’s Common Stock at the Exercise Price. The Note and Warrant will be
dated as of the Closing Date, as such date may be extended by us.

 

(b)           
The Issuer may continue to accept Commitments from Purchasers and issue and sell Securities to Purchasers at Closings on the terms
and subject to the conditions set forth in this Agreement until (i) the aggregate amount of the Commitments equals $300,000 or (ii) on
or before September 30, 2022, whichever shall first occur.

 

 

 

    	 	6	 

     

    

 

		5.	Miscellaneous.

 

(a).           Each party
shall pay the fees and expenses of its own advisers, counsel, accountants and other experts, if any, and all other expenses incurred by
such party incident to the negotiation, preparation, execution, delivery and performance of the Transactions Documents.

 

(b) 
         This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
signature or signature transmitted by e-mail shall be considered due execution and shall be binding upon the signatory thereto with the
same force and effect as if the signature were an original signature.

 

(c)           
The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and neutral shall include the masculine
and feminine.

 

(d) 
         If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of
any provision of this Agreement in any other jurisdiction.

 

(e) 
          This Agreement and the Notes and Warrants represent the final agreement between the Purchasers and the Issuer with respect to the
terms and conditions set forth herein, and, the terms of this Agreement and the Notes and Warrants may not be contradicted by evidence
of prior, contemporaneous, or subsequent oral agreements of the parties. No provision of this Agreement and the Notes and Warrants may
be amended other than by an instrument in writing signed by the Purchaser and the Issuer, and no provision hereof or thereof may be waived
other than by an instrument in writing signed by the party against whom enforcement is sought.

 

(f)           
Any notices or other communications required or permitted to be given under the terms of this Agreement must be in writing and
will be deemed to have been delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) day
after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same.
The addresses and facsimile numbers for such communications shall be:

 

If to the Issuer:

 

QS Energy, Inc.

3606 Challenger Way, Unit #1

Carson City, NV 89706

Telephone: (775) 300-7647

Fax: (775) 300-7593

 

 

 

    	 	7	 

     

    

 

If to a Purchaser:

 

To the address set forth on the Purchaser’s signature
page hereto.

 

Each party shall provide five (5) days prior written notice
to the other party of any change in address or facsimile number.

 

 (g)            This Agreement may not be assigned by Purchaser.

 

(h)           
This Agreement is intended for the benefit of the parties hereto and is not for the benefit of, nor may any provision hereof be
enforced by, any other person.

 

(i)            
The representations and warranties of the Purchaser and the Issuer contained herein shall survive each of the Closings and the
termination of this Agreement and the other Transaction Documents.

 

(j)            
The Purchaser and the Issuer shall consult with each other in issuing any press releases or otherwise making public statements
with respect to the transactions contemplated hereby, except that no consultation shall be required if such disclosure is required by
law or the rules and regulations of the SEC.

 

(k).           Each party
shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish
the purposes of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby.

 

(l)            
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and
no rules of strict construction will be applied against any party, as the parties mutually agree that each has had a full and fair opportunity
to review this Agreement and the other Transaction Documents and seek the advice of counsel on it and them.

 

(m)          
The Purchaser and the Issuer each shall have all rights and remedies set forth in this Agreement and all rights and remedies which
such holders have been granted at any time under any other agreement or contract and all of the rights which the Purchaser has by law.
Any person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting
a bond or other security), to recover damages by reason of any default or breach of any provision of this Agreement, including the recovery
of reasonable attorneys’ fees and costs, and to exercise all other rights granted by law.

 

(n)           
This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to contracts
made and to be performed wholly within such state.

 

 

 

 

 

 

[remainder of page intentionally left blank]

 

 

 

    	 	8	 

     

    

 

IN WITNESS WHEREOF the Purchasers
and the Issuer have executed this Agreement as of the date first above written.

 

THE ISSUER

 

QS ENERGY, INC.

 

 

By:__________________________

       Cecil
Bond Kyte

Its:  Chief Executive Officer

 

 

THE PURCHASER

 

 

	
    _______________________________

    Name (signature)
	 	
    _______________________________

    Amount of Commitment

    (U.S. Dollars)

	 	 	 
	
    _______________________________

    Print Name
	 	
    _______________________________

    Date

	 	 	 
	
    _______________________________

    Address
	 	 
	 	 	 
	
    _______________________________

    Address
	 	 
	 	 	 
	
    _______________________________

    Phone Number
	 	 
	 	 	 
	
    _______________________________

    Fax Number
	 	 
	 	 	 
	
    _______________________________

    Social Security Number
	 	 
	 	 	 
	
    _______________________________

    E-mail Address
	 	 

 

 

 

    	 	9	 

     

    

 

EXHIBIT A

 

CONVERTIBLE NOTE

  

THE SECURITIES EVIDENCED BY THIS NOTE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED FOR SALE UNDER ANY STATE SECURITIES LAWS (COLLECTIVELY,
“SECURITIES LAWS”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED UNLESS REGISTERED OR QUALIFIED FOR SALE UNDER ALL
APPLICABLE SECURITIES LAWS OR UNLESS, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER, IN FORM AND SUBSTANCE SATISFACTORY TO THE
ISSUER, ANY SUCH OFFER, SALE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION OR QUALIFICATION REQUIREMENTS OF SUCH SECURITIES LAWS.

 

	$__________	_____________, 2022 (“Issuance Date”)

 

FOR VALUE RECEIVED, QS
ENERGY, INC., a corporation organized under the laws of the State of Nevada (the “Company”), promises to pay to the order
of ____________________________ “Investor”, as that term is defined on the Acknowledgement and Acceptance page of this Convertible
Note (“Note”) (hereafter, together with any subsequent holder hereof, called “Holder”), at “Investor’s
Address,” as that term is set forth on such page or at such other place as Holder may direct, the amount noted above, payable in
full Twelve (12) Months from the Issuance Date (the “Maturity Date”).

 

If this Note is not paid in
full on or prior to the Maturity Date the remaining balance shall be increased by 10% and the Company shall pay interest thereon at the
rate of 10% per annum until all sums due hereunder are paid in full.

 

Payments of both principal
and interest will be made in immediately available funds in lawful money of the United States of America to the Holder at the Investor’s
Address.

 

This Note is subject to the
following additional provisions:

 

1. The Company shall be entitled
to withhold from all payments of principal and/or interest of this Note any amounts required to be withheld under the applicable provisions
of the U.S. Internal Revenue Code of 1986, as amended, or other applicable laws at the time of such payments.

 

2. This Note has been
issued subject to representations, warranties and covenants of the original Holder hereof as contained in that certain Securities Purchase
Agreement (“Agreement”) of even date herewith, and subject to all restrictions, terms, conditions and disclosures in the Agreement,
and may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended, and applicable state and other securities
laws. Prior to the due presentment for such transfer of this Note, the Company and any agent of the Company may treat the person in whose
name this Note is duly registered on the Company's Note register as the owner hereof for the purpose of receiving payment as herein provided
and all other purposes, whether or not this Note is overdue, and neither the Company nor any such agent shall be affected by notice to
the contrary. The transferee shall be bound, as the original Holder, by the same representations and terms described herein and under
the Agreement.

 

3. The Holder may, at
such Holder’s option, at any time while any sums are outstanding and unpaid hereunder, convert the then-outstanding principal amount
of this Note or any portion thereof, and any interest and any penalties accrued and unpaid thereon (the “Conversion Amount”),
into a number shares of fully paid and nonassessable Common Stock of the Company (the “Conversion Shares”) pursuant to the
following formula: the Conversion Amount divided by $0.03 (the “Conversion Price”). The Holder may exercise the right to convert
all or any portion of the Conversion Amount by delivering to the Company (i) an executed and completed notice of conversion in the form
attached to this Note (the "Notice of Conversion") to the Company and (ii) this Note. The business day on which a Notice of
Conversion and this Note are delivered to the Company in accordance with the provisions hereof shall be deemed a "Conversion Date.”
The Company will transmit the certificates representing Conversion Shares issuable upon such conversion of this Note within a reasonable
time after the Conversion Date to the Holder electronically through the Company’s transfer agent by means of a direct registration
system (“DRS”). Physical stock certificates will be issued upon written request subject to shipping cost paid by holder of
the Shares. No fractional shares shall be issued upon conversion of this Note. The amount of any of the Conversion Amount which is less
than a whole share of Common Stock shall be paid to the Holder in cash. Any delay due to such circumstance shall not be an event of default
under this Note.

  

 

 

    	 	10	 

     

    

 

4. The principal amount of
this Note, and any accrued interest thereon, shall be reduced as per that principal amount indicated on the Notice of Conversion upon
the proper receipt by the Holder of such Conversion Shares due upon such Notice of Conversion.

 

5. The number of Conversion
Shares shall be adjusted as follows:

 

a. If the Company shall
at any time after the Issuance Date subdivide its outstanding shares of Common Stock into a greater number of shares of Common Stock,
the number of Conversion Shares in effect immediately prior to such subdivision shall be proportionately increased, and conversely, in
case the outstanding shares of Common Stock shall be combined into a smaller number of shares of Common Stock, the Conversion Price in
effect immediately prior to such combination shall be proportionately reduced.

 

b.       If
the Company shall at any time or from time to time after the Issuance Date makes, or fixes a record date for the determination of holders
of Common Stock entitled to receive, a dividend or other distribution payable in additional shares of Common Stock, then and in each such
event the number of Conversion Shares issuable upon conversion of this Note shall be proportionately increased; provided, however, that
if such record date is fixed and such dividend is not fully paid, or if such distribution is not fully made on the date fixed therefor,
the number of Conversion Shares shall be recomputed to reflect that such dividend was not fully paid or that such distribution was not
fully made.

 

c.       If
Company at any time or from time to time after the Issuance Date makes, or fixes a record date for the determination of holders of Common
Stock entitled to receive, a dividend or other distribution payable in securities of Company other than shares of Common Stock, then and
in each such event provision shall be made so that Holder shall receive upon exercise of the conversion right of this Note, in addition
to the number of shares of Common Stock receivable thereupon, the amount of securities of Company which Holder would have received had
the Conversion Amount of this Note been exercised on the date of such event and had it thereafter, during the period from the date of
such event to and including the date of conversion or purchase, retained such securities receivable during such period.

 

d.       If
the Common Stock issuable upon the conversion of this Note or option to purchase is changed into the same or a different number of shares
of any class or classes of stock, whether by recapitalization, reclassification or otherwise (other than a transaction described elsewhere
in Section 5 of this Note), then, and in any such event, each Holder shall have the right thereafter, upon conversion of this Note or
purchase pursuant to option to receive the kind and amount of stock and other securities and property receivable upon such reorganization
or other change, in an amount equal to the amount that Holder would have been entitled to had it immediately prior to such reorganization,
reclassification or change converted this Note, but only to the extent this Note is actually converted, all subject to further adjustment
as provided herein.

 

6. No provision of this
Note shall alter or impair the obligation of the Company, which is absolute and unconditional, upon an Event of Default (as defined below),
to pay the principal of, and interest on this Note at the place, time, and rate, and in the coin or currency herein prescribed.

 

a. Events of Default. Each
of the following occurrences is hereby defined as an “Event of Default:”

 

Nonpayment.
The Company shall fail to make any payment of principal, interest, or other amounts payable hereunder when and as due; or

 

Dissolutions,
etc. The Company or any subsidiary shall fail to comply with any provision concerning its existence or any prohibition against dissolution,
liquidation, merger, consolidation or sale of assets; or

 

Noncompliance
with this Agreement. The Company shall fail to comply in any material respect with any provision hereof, which failure does not otherwise
constitute an Event of Default; or

 

Insolvency.
The institution of bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for relief under any bankruptcy
law or any law for the relief of debtors shall be instituted by or against Company, which proceedings shall not have been vacated by appropriate
court order within sixty (60) days of such institution.

 

 

 

    	 	11	 

     

    

 

If one or more "Events
of Default" shall occur, then, or at any time thereafter, and in each and every such case, unless such Event of Default shall have
been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) or cured as provided
herein, at the option of the Holder, and in the Holder's sole discretion, the Holder may elect to consider this Note (and all interest
through such date) immediately due and payable. In order to so elect, the Holder must deliver written notice of the election and the amount
due to the Company via certified mail, return receipt requested, at the Company’s address as set forth herein (or any other address
provided to the Holder), and thereafter the Company shall have thirty (30) business days upon receipt to cure the Event of Default or
pay this Note, or convert the amount due on the Note pursuant to the conversion formula set forth above.

 

7. In case any provision
of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision
shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability
of the remaining provisions of this Note will not in any way be affected or impaired thereby.

 

8. This Note does not entitle
the Holder hereof to any voting rights or other rights as a shareholder of the Company prior to the conversion into Common Stock thereof,
except as provided by applicable law. If, however, at the time of the surrender of this Note and conversion the Holder hereof shall be
entitled to convert this Note, the Conversion Shares so issued shall be and be deemed to be issued to such holder as the record owner
of such shares as of the close of business on the Conversion Date.

 

9. The Holder shall pay all
issue and transfer taxes and other incidental expenses in respect of the issuance of certificates for Conversion Shares upon the conversion
of this Note, and such certificates shall be issued in the name of the Holder of this Note.

 

10. This Note may be prepaid
in whole or in part at any time or from time to time without premium or penalty upon 10 days’ prior written notice from the Company
to the Holder.

 

11. Upon receipt by the Company
of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Note, and in case of loss, theft or destruction
of this Note, upon delivery of an indemnity agreement or security reasonably satisfactory in form and amount to the Company or, in the
case of any such mutilation, upon surrender and cancellation of such Note, and upon reimbursement to the Company of all reasonable expenses
incidental thereto, the Company will make and deliver to the Holder, in lieu thereof, a new Note in substantially identical form.

  

12. If
the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday or
a Sunday or shall be a legal holiday in the United States or the State of California, then such action may be taken or such right may
be exercised on the next succeeding business day.

 

13. (a)     This Note shall
be governed by and construed in accordance with the laws of the State of California applicable to contracts made and to be performed wholly
within such state.

 

(b)            Except as otherwise
provided herein, any notice or demand which, by the provisions hereof, is required or which may be given to or served upon the parties
hereto shall be in writing and, if by e-mail or facsimile transmission, shall be deemed to have been validly served, given or delivered
when sent, and if by personal delivery, shall be deemed to have been validly served, given or delivered upon actual delivery and, if mailed,
shall be deemed to have been validly served, given or delivered three (3) business days after deposit in the United States mails, as registered
or certified mail, with proper postage prepaid and addressed to the party or parties to be notified.

 

 

 

    	 	12	 

     

    

 

(c)            The
Holder acknowledges that the Conversion Shares acquired upon the exercise of this Note will have restrictions upon its resale imposed
by state and federal securities laws, together with other restrictions, terms, conditions and disclosures as fully set forth in the Agreement.

 

(d)            With
regard to any power, remedy or right provided herein or otherwise available to any party hereunder (i) no waiver or extension of time
shall be effective unless expressly contained in a writing signed by the waiving party; and (ii) no alteration, modification or impairment
shall be implied by reason of any previous waiver, extension of time, delay or omission in exercise, or other indulgence.

 

(e)            
This Note may not be amended, altered or modified except by a writing signed by the Company and the Holder. 

 

IN WITNESS WHEREOF, the Company has caused this
Convertible Note to be duly executed by an officer thereunto duly authorized.

 

QS ENERGY, INC.

3606 Challenger Way, Unit #1

Carson City, NV 89706

 

 

 

By ____________________________

Name: Cecil Bond Kyte

Title:   Chief Executive Officer

 

ACKNOWLEDGED AND ACCEPTED:

 

 

 

 

_______________________________

Investor Name (Signature)

 

 

_______________________________

Print Name

 

_______________________________

 

_______________________________

Investor Address

 

 

 

    	 	13	 

     

    

 

NOTICE OF EXERCISE OF CONVERSION RIGHT 

 

TO:          (Company Name)

 

(1)            The
undersigned hereby elects to convert $______________ of the attached Note into ______________ shares of Common Stock (the "Shares")
of QS Energy, Inc. (“Company”) pursuant to the terms of the attached Note.

 

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

 

	 	
    _______________________________________________

    (Print Name)

     

    Address:

    _______________________________________________

    _______________________________________________

    _______________________________________________
	 

  

(3)            The Company shall issue the Shares electronically
through its transfer agent by means of a direct registration system (“DRS”)[1].
Physical stock certificates will be issued upon written request subject to shipping cost paid by holder of the Shares.

 

(4)            The undersigned confirms that the Shares are
being acquired for the account of the undersigned for investment only and not with a view to, or for resale in connection with, the distribution
thereof and that the undersigned has no present intention of distributing or selling the Shares.

 

(5)            The undersigned accepts such shares subject
to the restrictions on transfer and other terms, conditions and disclosures set forth in the attached Note and set forth in that certain
Securities Purchase Agreement between the Company and the undersigned dated as of the date of the attached Note.

 

 

 

	
    __________________________

    (Date)
	
    __________________________

    (Signature)

	 	 
	 	
    __________________________

    (Print Name)

 

______________________________________

 

1
The Company’s transfer agent, Nevada Agency and Transfer Company (“NATCO”) is a participant in the Depository
Trust Company’s FAST program. The FAST program allows NATCO to provide DWAC (deposit/withdrawal at custodian) and DRS (direct registration
system) services to the Company and its shareholders. This eliminates the risk of lost certificates and courier fees by providing electronic
transfers.

 

 

 

    	 	14	 

     

    

 

EXHIBIT B

 

STOCK PURCHASE WARRANT

 

THIS WARRANT AND ANY SHARES ISSUED UPON
ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND HAVE BEEN ACQUIRED
FOR INVESTMENT AND NOT WITH VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION OF ANY SHARES
ISSUED UPON EXERCISE HEREOF MAY BE AFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL SATISFACTORY
IN FORM AND SUBSTANCE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT. THE TRANSFER OF THIS WARRANT IS RESTRICTED
AS SET FORTH HEREIN.

 

	No. ______	______________, 2022

 

 

QS ENERGY, INC.

WARRANT TO PURCHASE COMMON STOCK

 

VOID AFTER 5:00 P.M. (Pacific Time) ON ______________,
2023

 

THIS CERTIFIES that, for
the value received, the holder identified on the last page of this Warrant __________________________ (the "Holder") is entitled,
upon the terms and subject to the conditions hereinafter set forth, at any time on or after the date of this Warrant and on or prior to
5:00 p.m. P.S.T. on the first anniversary of the date of this Warrant (the "Expiration Time"), but not thereafter, to subscribe
for and purchase, from QS ENERGY, INC., a Nevada corporation (the "Company"), up to ________________ (#) shares of the Company's
Common Stock (the "Shares") at a purchase price per share equal to $0.04 (the "Exercise Price").

 

1.             Exercise
of Warrant.

 

The purchase rights represented
by this Warrant are exercisable by the Holder, in whole or in part, at any time after the date of this Warrant and before the Expiration
Time by the surrender of this Warrant and the Notice of Exercise annexed hereto duly executed at the office of the Company, in Carson
City, Nevada (or such other office or agency of the Company as it may designate by notice in writing to the Holder at the address of the
Holder appearing on the books of the Company), and upon payment of an amount equal to the aggregate Exercise Price for the number of Shares
thereby purchased (by cash or by check or certified bank check payable to the order of the Company in an amount equal to the purchase
price of the shares thereby purchased); whereupon the Holder shall be entitled to receive a stock certificate representing the number
of Shares so purchased. The Company agrees that if at the time of the surrender of this Warrant and purchase of the Shares, and the Holder
shall be entitled to exercise this Warrant, the Shares so purchased shall be and be deemed to be issued to such holder as the record owner
of such Shares as of the close of business on the date on which this Warrant shall have been exercised as aforesaid.

 

Upon partial exercise of this
Warrant, the Holder shall be entitled to receive from the Company a new Warrant in substantially identical form for the purchase of that
number of Shares as to which this Warrant shall not have been exercised. Certificates for Shares purchased hereunder shall be delivered
to the Holder within a reasonable time after the date on which this Warrant shall have been exercised as aforesaid.

 

 

 

    	 	15	 

     

    

  

2.             No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this
Warrant. With respect to any fraction of a share called for upon the exercise of this Warrant, an amount equal to such fraction multiplied
by the Exercise Price shall be paid in cash to the Holder.

 

3.              Charges, Taxes and
Expenses. The Holder shall pay all issue and transfer taxes and other incidental expenses in respect of the issuance of certificates
for Shares upon the exercise of this Warrant, and such certificates shall be issued in the name of the Holder of this Warrant.

 

4.              No Rights as a Stockholder.
This Warrant does not entitle the Holder to any voting rights or other rights as a stockholder of the Company prior to the exercise hereof.

 

5.             Loss, Theft, Destruction
or Mutilation of Warrant. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant, and in case of loss, theft or destruction of this Warrant, upon delivery of an indemnity agreement or security
reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, upon surrender and cancellation of such
Warrant, and upon reimbursement to the Company of all reasonable expenses incidental thereto, the Company will make and deliver to the
Holder, in lieu thereof, a new Warrant in substantially identical form and dated as of such cancellation.

 

6.             Saturdays, Sundays,
Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein
shall be a Saturday or a Sunday or shall be a legal holiday in the United States or the State of California, then such action may be taken
or such right may be exercised on the next succeeding business.

 

7.              Merger, Reclassification,
etc.

 

(a) Merger, etc. If at
any time the Company proposes (A) the acquisition of the Company by another entity by means of any transaction or series of related transactions
(including, without limitation, any reorganization, merger, consolidation or stock issuance) that results in the transfer of fifty percent
(50%) or more of the then outstanding voting power of the Company; or (B) a sale of all or substantially all of the assets of the Company,
then the Company shall give the Holder ten (10) days notice of the proposed effective date of the transaction. If, in the case of such
acquisition of the Company, and the Warrant has not been exercised by the effective date of the transaction, this Warrant shall be exercisable
into the kind and number of shares of stock or other securities or property of the Company or of the entity resulting from such merger
or acquisition to which such Holder would have been entitled if immediately prior to such acquisition or merger, it had exercised this
Warrant. The provisions of this Section 7(a) shall similarly apply to successive consolidations, mergers, sales or conveyances.

  

(b) Reclassification, etc.
If the Company at any time shall, by subdivision, combination or reclassification of securities or otherwise, change any of the securities
to which purchase rights under this Warrant exist into the same or a different number of securities of any class or classes, this Warrant
shall thereafter be to acquire such number and kind of securities as would have been issuable as the result of such change with respect
to the securities which were subject to the purchase rights under this Warrant immediately prior to such subdivision, combination, reclassification
or other change. If the Shares are subdivided or combined into a greater or smaller number of Shares, the Exercise Price under this Warrant
shall be proportionately reduced in case of subdivision of shares or proportionately increased in the case of combination of shares, in
both cases by the ratio which the total number of Shares to be outstanding immediately after such event bears to the total number of Shares
outstanding immediately prior to such event.

 

(c) Cash Distributions.
No adjustment on account of cash dividends or interest on the Shares or other securities purchasable hereunder will be made to the Exercise
Price under this Warrant.

 

 

 

 

    	 	16	 

     

    

 

8.             Restrictions on Transfer.

 

(a) Restrictions on Transfer
of Shares. In no event will the Holder make a disposition of this Warrant or the Shares unless and until, if requested by the Company,
it shall have furnished the Company with an opinion of counsel satisfactory to the Company and its counsel to the effect that appropriate
action necessary for compliance with the Securities Act of 1933, as amended (the "Act") relating to sale of an unregistered
security has been taken. Notwithstanding the foregoing, the restrictions imposed upon the transferability of the Shares shall terminate
as to any particular Share when (i) such security shall have been sold without registration in compliance with Rule 144 under the Act,
or (ii) a letter shall have been issued to the Holder at its request by the staff of the Securities and Exchange Commission or a ruling
shall have been issued to the Holder at its request by such Commission stating that no action shall be recommended by such staff or taken
by such Commission, as the case may be, if such security is transferred without registration under the Act in accordance with the conditions
set forth in such letter or ruling and such letter or ruling specifies that no subsequent restrictions on transfer are required, or (iii)
such security shall have been registered under the Act and sold by the Holder thereof in accordance with such registration.

 

(b) Subject to the provisions
of Section 8(a) hereof, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of the Warrant with
a properly executed assignment at the principal office of the Company.

 

(c) Restrictive Legends.
The stock certificates representing the Shares and any securities of the Company issued with respect thereto shall be imprinted with legends
restricting transfer except in compliance with the terms hereof and with applicable federal and state securities laws substantially as
follows:

 

“THE SHARES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 OR AN OPINION OF COUNSEL SATISFACTORY TO THE
ISSUER OF THIS CERTIFICATE THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT”.

 

9.              Miscellaneous.

 

(a) Governing Law. This
Warrant shall be governed by and construed in accordance with the laws of the State of California applicable to contracts made and to
be performed wholly within such state.

 

(b) Restrictions. The
Holder acknowledges that the Shares acquired upon the exercise of this Warrant will have restrictions upon its resale imposed by state
and federal securities laws.

 

(c) Waivers Strictly Construed.
With regard to any power, remedy or right provided herein or otherwise available to any party hereunder (i) no waiver or extension of
time shall be effective unless expressly contained in a writing signed by the waiving party; and (ii) no alteration, modification or impairment
shall be implied by reason of any previous waiver, extension of time, delay or omission in exercise, or other indulgence.

 

(d) Modifications. This
Warrant may not be amended, altered or modified except by a writing signed by the Company and the Holder of this Warrant.

 

 

 

    	 	17	 

     

    

 

IN WITNESS WHEREOF, QS ENERGY,
INC. has caused this Warrant to be executed by its duly authorized representative dated as of the date first set forth above.

 

	
     

     

    Holder:

     

     

     

    _____________________

     
	
     

    QS ENERGY, INC.

    3606 Challenger Way, Unit #1

    Carson City, NV 89706

     

     

    By: __________________________

    Name:Cecil Bond Kyte

    Title:Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	18	 

     

    

 

NOTICE OF EXERCISE

 

TO:          QS ENERGY, INC., a Nevada corporation

 

(1)            The
undersigned hereby elects to purchase ______________ shares of Common Stock (the "Shares") of QS Energy, Inc. (“Issuer”)
pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price in full, together with all applicable
transfer taxes, if any.

 

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

 

	
    Name:

    ________________________________

    (Print Name)

     
	
    Address:

     ______________________________

     ______________________________

     ______________________________

 

(3)            The Company shall issue the Shares electronically
through its transfer agent by means of a direct registration system (“DRS”)[1].
Physical stock certificates will be issued upon written request subject to shipping cost paid by holder of the Shares.

 

(4)             The undersigned confirms
that he is an “accredited investor” as defined by Rule 501(a) under the Securities Act of 1933, as amended, at the time of
execution of this Notice.

 

(5)            The
undersigned confirms that the Shares are being acquired for the account of the undersigned for investment only and not with a view to,
or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or selling
the Shares.

 

(6)            The
undersigned accepts such Shares subject to the restrictions on transfer set forth in the attached Warrant.

 

(7)            The
undersigned acknowledges that the Issuer has given it access to all information relating to the Issuer’s business that the undersigned
has requested. The undersigned has reviewed all materials relating to the Issuer’s business, financial condition and operations
which it has requested and the undersigned has reviewed all of such materials as the undersigned, in the undersigned’s sole and
absolute discretion has deemed necessary or desirable. The undersigned has had an opportunity to ask questions of and discuss the business,
management and financial affairs of the Issuer with the Issuer’s management. Specifically but not by way of limitation, the undersigned
acknowledges the Issuer’s publicly available filings made periodically with the SEC, which filings are available at www.sec.gov,
and which filings the undersigned acknowledges reviewing or having had the opportunity of reviewing.

 

(8)            The
undersigned acknowledges that it has, by reason of its business and financial experience, such knowledge, sophistication and experience
in financial and business matters and in making investment decisions of this type that it is capable of (i) evaluating the merits and
risks of an investment in the Shares and making an informed investment decision in connection therewith; (ii) protecting its own interest;
and (iii) bearing the economic risk of such investment for an indefinite period of time for shares which are not transferable or freely
tradable. The undersigned hereby agrees to indemnify the Issuer and the officers, directors and employees thereof harmless against all
liability, costs or expenses (including reasonable attorneys’ fees) arising by reason of or in connection with any misrepresentation
or any breach of warranties or representations of the undersigned contained in this Notice, or arising as a result of the sale or
distribution of the Shares issuable upon exercise of the Warrants. The representations and warranties contained herein shall be binding
upon the heirs, legal representatives, successors and assigns of the undersigned.

 

	
    ________________________

    (Date)
	
    ___________________________________

    (Signature)

    ___________________________________

    (Print Name)

 

_______________________________________

 

1
The Company’s transfer agent, Nevada Agency and Transfer Company (“NATCO”) is a participant in the Depository Trust
Company’s FAST program. The FAST program allows NATCO to provide DWAC (deposit/withdrawal at custodian) and DRS (direct registration
system) services to the Company and its shareholders. This eliminates the risk of lost certificates and courier fees by providing electronic
transfers.

 

 

 

    	 	19

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