Document:

Exhibit 4.1

 

atossa
genetics inc. 

 

	Warrant Shares:                            	 	Issue Date:  April 3, 2017
	 	 	 
	Warrant Certificate No.:________	 	CUSIP: 04962H 308

 

THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on
or after the date hereof (the “Initial Exercise Date”) and on or prior to the close of business on the five
(5) year anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, to subscribe
for and purchase from Atossa Genetics Inc., a Delaware corporation (the “Company”), up to ______ shares (as
subject to adjustment hereunder, the “Warrant Shares”) of the Company’s common stock, par value $0.015
per share (the “Common Stock”). The purchase price of one share of Common Stock under this Warrant shall be
equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.

 

a)            Offering.
This warrant is one of a series of warrants (the “Warrants”) that are being issued by the Company pursuant to
a final prospectus filed with the Securities and Exchange Commission (“SEC”) pursuant to Rule 424(b) and dated
as of March 31, 2017.

 

b)            Definitions.
Capitalized terms used and not otherwise defined herein shall have the meaning set forth in that certain Warrant Agreement, dated
as of March 28, 2017 (the “Warrant Agreement”), between the Company and VStock Transfer, LLC (the “Warrant
Agent”). For purposes herein, “Transfer Agent” shall mean VStock Transfer, LLC in its capacity as
transfer agent of the Company.

 

Section 2.              Exercise.

 

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

 

     

     

    

 

b)            Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $0.9375, subject to adjustment hereunder
(the “Exercise Price”).

 

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

 

	 	(A) = 	as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;
	 	 	 
	 	(B) =	the
Exercise Price of this Warrant, as adjusted hereunder; and
	 	 	 
	 	(X) =	the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

    

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

 

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

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers, consultants or directors
of the Company pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of
the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose for services
rendered to the Company (provided, any issuances of Common Stock or options to consultants may not be registered and cannot have
registration rights), (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other
securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this
Agreement, provided that such securities have not been amended since the date of this Agreement to increase the number of such
securities or to decrease the exercise price, exchange price or conversion price of such securities (other than in connection with
stock splits or combinations) or to extend the term of such securities, and (c) securities issued pursuant to acquisitions or strategic
transactions approved by a majority of the disinterested directors of the Company, provided that any such issuance shall only be
to a Person (or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating company or an owner
of an asset in a business synergistic with the business of the Company and shall provide to the Company additional benefits in
addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for
the purpose of raising capital or to an entity whose primary business is investing in securities.

 

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“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the
New York Stock Exchange (or any successors to any of the foregoing).

 

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

 

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

 

d)           Mechanics
of Exercise.

 

i.            Delivery
of Warrant Shares Upon Exercise. The Company
shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account
of the Holder’s or its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal
at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective
registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder or (B) this Warrant
is being exercised via cashless exercise, and otherwise by physical delivery of a certificate, registered in the Company’s
share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant
to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earlier of (i) the earlier
of (A) three (3) Trading Days after the delivery to the Company of the Notice of Exercise and (B) one (1) Trading Day after delivery
of the aggregate Exercise Price to the Company and (ii) the number of Trading Days comprising the Standard Settlement Period after
the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”). Upon delivery
of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant
Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided
that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of
(i) three Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the
Notice of Exercise. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise
by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for
each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice
of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin
to accrue) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds
such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant
remains outstanding and exercisable and to pay any DTC fees for same-day delivery. As used herein, “Standard Settlement Period”
means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with
respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.

 

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

 

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

 

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

 

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v.           No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall (or shall direct the Warrant Agent to), at its election, either pay a cash adjustment in respect of such final fraction
in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

 

vi.         Charges,
Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the
Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder;
provided, however, that in the event Warrant Shares are to be issued in a name other than the name of the Holder,
this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder
and the Company or the Warrant Agent may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any
transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of
Exercise.

 

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

 

e)           Holder’s
Exercise Limitations. The Company shall not (or shall not direct the Warrant Agent to) effect any exercise of this Warrant,
and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent
that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together
with the Holder’s Affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s
Affiliates, such persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation
(as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the
Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of
this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which
would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or
any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any
other securities of the Company (including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the
Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence, for purposes of this
Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation
is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed
in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether
this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates or Attribution Parties)
and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice
of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other
securities owned by the Holder together with any Affiliates or Attribution Parties) and of which portion of this Warrant is exercisable,
in each case subject to the Beneficial Ownership Limitation, and neither the Company nor the Warrant Agent shall have any obligation
to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number
of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with
the SEC, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company
or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of
a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common
Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect
to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution
Parties since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership
Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to
the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61 days’ prior
notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that
the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions
of this Section 2(e) shall continue to apply. Any such increase or decrease will not be effective until the 61st day
after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which
may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a
successor holder of this Warrant.

 

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Section 3.              Certain
Adjustments.

 

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

 

b)            Subsequent Equity Sales.
If the Company or any subsidiary thereof, as applicable, at any time while this Warrant is outstanding, shall sell or grant any
option to purchase, or sell or grant any right to reprice, or otherwise dispose of or issue (or announce any offer, sale, grant
or any option to purchase or other disposition) any Common Stock or common stock equivalents, at an effective price per share less
than the Exercise Price then in effect (such lower price, the “Base Share Price” and such issuances collectively,
a “Dilutive Issuance”) (it being understood and agreed that if the holder of the Common Stock or common stock
equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion,
exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued in connection with such
issuance, be entitled to receive shares of Common Stock at an effective price per share that is less than the Exercise Price, such
issuance shall be deemed to have occurred for less than the Exercise Price on such date of the Dilutive Issuance at such effective
price), then simultaneously with the consummation of each Dilutive Issuance the Exercise Price shall be reduced and only reduced
to equal the Base Share Price, provided that the Base Share Price shall not be less than $0.234 (the “Floor Price”).
If the Dilutive Issuance constitutes the sale of more than one security, the new Base Share Price shall be the lesser of (x) the
Base Share Price as defined above or (y) the closing price of the Common Stock on the principal Trading Market on the Trading Day
after the public announcement of the Dilutive Issuance, but in no event less than 80% of the Base Share Price under (x), nor shall
the Exercise Price be adjusted below the Floor Price. Such adjustment shall be made whenever such Common Stock or Common Stock
Equivalents are issued. Notwithstanding the foregoing, no adjustments shall be made, paid or issued under this Section 3(b) in
respect of an Exempt Issuance. The Company shall notify the Holder, in writing, no later than the Trading Day following the issuance
or deemed issuance of any Common Stock or Common Stock Equivalents subject to this Section 3(b), indicating therein the applicable
issuance price, or applicable reset price, exchange price, conversion price and other pricing terms (such notice, the “Dilutive
Issuance Notice”). For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant
to this Section 3(b), upon the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number of Warrant Shares
based upon the Base Share Price regardless of whether the Holder accurately refers to the Base Share Price in the Notice of Exercise.
If the Company enters into a Variable Rate Transaction, as defined in and in breach of the prohibition thereon in the Underwriting
Agreement pursuant to which this Warrant was purchased, the Company shall be deemed to have issued Common Stock or common stock
equivalents at the lowest possible conversion or exercise price at which such securities may be converted or exercised.

 

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

 

d)           Fundamental
Transaction. In case of any reclassification, capital reorganization, exchange of shares, liquidation, recapitalization or
change of the Common Stock (other than as a result of a subdivision, combination, stock dividend or reclassification provided for
in Section 3(a) hereof), or in case of any consolidation or merger of the Company with or into another corporation or entity (other
than a merger with a subsidiary in which merger the Company is the continuing corporation and which does not result in any reclassification
or capital reorganization or change of the outstanding Common Stock) or in case of any sale, lease or conveyance to another corporation
or entity of all or substantially all of the assets of the Company (each, a “Fundamental Transaction”), then
the Company shall, as a condition precedent to such transaction, cause lawful and effective provisions to be made (and duly executed
documents evidencing the same from the Company or its successor shall be delivered to the Holder) so that the Holder shall have
the right thereafter upon exercise of this Warrant, to purchase the kind and amount of shares of stock and other securities and
property receivable upon such reclassification, capital reorganization, exchange of shares, liquidation, recapitalization, change,
consolidation, merger, sale or conveyance by a holder of the number of shares of Common Stock which might have been received upon
conversion of this Warrant immediately prior to such reclassification, capital reorganization, exchange of shares, liquidation,
recapitalization, change, consolidation, merger, sale or conveyance, and in any such event, such provision shall include provision
for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for herein. Notwithstanding
anything to the contrary, in the event of a Fundamental Transaction (other than a Fundamental Transaction not approved by the Company’s
Board of Directors), the Company or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable at
any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction, purchase this Warrant from
the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of this
Warrant on the date of the consummation of such Fundamental Transaction. “Black Scholes Value” means the value
of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV” function on Bloomberg, L.P.
(“Bloomberg”) determined as of the day of consummation of the applicable Fundamental Transaction for pricing
purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time between
the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility
equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg as of the Trading Day immediately
following the public announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation
shall be the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being
offered in such Fundamental Transaction, (D) a zero cost of borrow, and (E) a remaining option time equal to the time between the
date of the public announcement of the applicable Fundamental Transaction and the Termination Date. The payment of the Black Scholes
Value will be made by wire transfer of immediately available funds within five Business Days of the Holder’s election (or,
if later, on the effective date of the Fundamental Transaction).The Company shall not effect
any such consolidation, merger, sale, transfer or other disposition described above, unless prior to or simultaneously with the
consummation thereof the successor corporation (if other than the Company) resulting from such consolidation or merger or the corporation
purchasing or otherwise acquiring such assets shall assume, by written instrument executed and mailed or delivered to the Holder
of this Warrant at the last address of the Holder appearing on the books of the Company, the obligation to deliver to the Holder
such shares of stock, securities, cash or properties as, in accordance with the foregoing provisions, the Holder may be entitled
to acquire. The above provisions of this paragraph shall similarly apply to successive reorganizations, reclassifications, exchanges,
liquidations, recapitalizations, changes, consolidations, mergers, sales, transfers or other dispositions, if any.

 

    	 	7	 

     

    

 

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

 

f)            Notice
to Holder.

 

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

 

ii.              Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares
of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer
of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted
into other securities, cash or property or other Fundamental Transaction, or (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed
to the Holder at its last address as it shall appear upon the Warrant Register (as defined below), at least 20 calendar days prior
to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken
for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as
of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants
are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is
expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall
be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or
in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent
that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of the
Subsidiaries, the Company shall simultaneously file such notice with the SEC pursuant to a Current Report on Form 8-K. The Holder
shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of
the event triggering such notice except as may otherwise be expressly set forth herein.

 

    	 	8	 

     

    

 

g)            Voluntary
Adjustment by Company. The Company may at any time during the term of this Warrant reduce the then current Exercise Price to
any amount and for any period of time deemed appropriate by the Board of Directors of the Company.

 

Section 4.              Transfer
of Warrant.

 

a)            Transferability.
This Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in
part, upon surrender of this Warrant at the principal office of the Company or the Warrant Agent (or other designated agent), together
with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or
attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required,
such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable,
and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. The Warrant, if properly
assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant
issued.

 

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

 

c)            Warrant
Register. The Company shall (or cause the Warrant Agent to) register this Warrant, upon records to be maintained by the Company
or the Warrant Agent for that purpose (the “Warrant Register”), in the name of the record Holder hereof from
time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose
of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

    	 	9	 

     

    

 

d)            Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the Holder
is an affiliate (as defined in Rule 405 of the Securities Act) of the Company and the transfer of this Warrant shall not be registered
pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws,
the Company may require, as a condition of allowing such transfer (i) that the Holder or transferee of this Warrant, as the case
may be, furnish to the Company a written opinion of counsel (which opinion shall be in form, substance and scope customary for
opinions of counsel in comparable transactions) to the effect that such transfer may be made without registration under the Securities
Act and under applicable state securities or blue sky laws, (ii) that the holder or transferee execute and deliver to the Company
an investment letter in form and substance acceptable to the Company and (iii) that the transferee be an “accredited investor”
as defined in Rule 501(a) promulgated under the Securities Act or a “qualified institutional buyer” as defined in Rule
144A(a) under the Securities Act.

 

Section 5.              Miscellaneous.

 

a)            No
Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in
Section 3.

 

b)            Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company or the Warrant Agent of
evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating
to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which,
in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or
stock certificate, if mutilated, the Company will make and deliver (or cause the Warrant Agent to deliver) a new Warrant or stock
certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

c)            Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the next succeeding
Trading Day.

 

d)            Authorized
Shares.

 

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

 

    	 	10	 

     

    

 

Except and to the
extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its
certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale
of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the
generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor
upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant
and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory
body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

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

 

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

 

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

 

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

 

h)            Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Warrant Agreement.

 

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

 

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

 

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

 

    	 	11	 

     

    

 

l)             Modification.
The provisions of the Warrants may from time to time be amended, modified or waived, if such amendment, modification or waiver
is in writing and consented to by the Company and holders of at least a majority of the outstanding Warrants (based on the number
of Warrant Shares underlying the Warrants). Any such amendment, modification or wavier shall be binding upon the Holder of this
Warrant regardless of whether the Holder consented to such amendment, modification or wavier; provided that nothing shall prevent
the Company and the Holder from consenting to amendments, modifications or waivers to this Warrant that affect or are applicable
to the Holder only.

 

m)           Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

 

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

 

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

(Signature Page Follows)

 

 

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

 

	 	atossa genetics inc.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	VSTOCK TRANSFER, LLC
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	12	 

     

    

 

NOTICE OF EXERCISE

 

	 	To:	atossa genetics inc.

 

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

 

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

 

 ̈
in lawful money of the United States; or

 

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

 

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

 

_______________________________

 

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

_______________________________

 

_______________________________

 

_______________________________

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity:

Signature of Authorized Signatory of Investing Entity:

Name of Authorized Signatory:

Title of Authorized Signatory:

Date:

 

    	 	13	 

     

    

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

FOR VALUE RECEIVED, [all/_______]
shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

_______________________________________________ whose address is

_______________________________________________________________.

 

_______________________________________________________________

Dated: ______________, _______

 

	 	Holder’s Signature:	 
	 	Holder’s Address:    	 
	 	 	 
	 	 	 

 

    	 	14Exhibit 10.1

 

XENETIC BIOSCIENCES INC.

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(“Agreement”) is entered into as of this 23rd day of March 2017 by and between Xenetic Biosciences, Inc., a
Nevada corporation with a principal place of business in Lexington, Massachusetts (the “Company”), and James F.
Parslow, an individual (the “Executive”).

 

WHEREAS, the Company
and the Executive wish to set forth the terms and conditions for the employment of the Executive by the Company;

 

NOW THEREFORE, in
consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration the receipt of
which is hereby acknowledged, the parties mutually agree as follows:

 

Section
1. Term of Employment.

 

(a)              
General. The Company will employ Executive, and Executive will be employed by the Company, for the period set forth
in Section 1(b), in the positions set forth in Section 2, and upon the other terms and conditions herein provided commencing on
April 3, 2017 (the “Effective Date”).

 

(b)              
Term. The Agreement shall become effective on the Effective Date and shall continue unless earlier terminated as
provided in Section 7 (the “Term”). The Executive’s employment with the Company shall be “at will,”
meaning that the Executive’s employment may be terminated by the Company or the Executive at any time and for any reason
provided that Executive may not voluntarily terminate his employment upon less than ninety days prior written notice delivered
to the Company, or upon such shorter notices as Company and Executive agree.

 

(c)              
Location. During the Term, the Executive’s principal place of employment shall be in Lexington, MA. The Executive
acknowledges that Executive’s duties and responsibilities shall require the Executive to travel on business to the extent
reasonably necessary to fully perform Executive’s duties and responsibilities hereunder.

 

Section
2. Duties and Exclusivity.

 

(a)              
During the Term, the Executive (i) shall serve as Chief Financial Officer of the Company, with responsibilities, duties
and authority customary for such position, subject to direction by the Chief Executive Officer of the Company, (ii) shall report
directly to the Chief Executive Officer; (iii) shall devote all the Executive’s working time and efforts to the business
and affairs of the Company and its subsidiaries; and (iv) agrees to observe and comply with the Company’s rules and policies
as adopted by the Company from time to time. The Executive’s duties, responsibilities and authority may include services
for one or more subsidiaries of the Company.

 

(b)              
Notwithstanding anything to the contrary in Section 2(a) above, the Executive may (i) serve as a director, trustee or officer
or otherwise participate in not-for-profit educational, welfare, social, religious and civic organizations. During the Term, Executive
shall not accept any other employment or consultancy or serve on the board of directors or similar body of any entity unless such
position is approved by the Chief Executive Officer.

 

(c)              
Exclusivity. The Executive hereby represents to the Company that: (i) the execution and delivery of this Agreement
by the Executive and the Company and the performance by the Executive of the Executive’s duties hereunder do not and shall
not constitute a breach of, conflict with, or otherwise contravene or cause a default under, the terms of any other agreement or
policy to which the Executive is a party or otherwise bound or any judgment, order or decree to which the Executive is subject;
(ii) that the Executive has no information (including, without limitation, confidential information and trade secrets) relating
to any other Person which would prevent, or be violated by, the Executive entering into this Agreement or carrying out his duties
hereunder; (iii) the Executive is not bound by any agreement with any previous employer or other party to refrain from (A) competing
with the business of, or (B) soliciting the customers of, that employer or party, in each case, which would be violated by your
employment with the Company; and (iv) the Executive understands the Company will rely upon the accuracy and truth of the representations
and warranties of the Executive set forth herein and the Executive consents to such reliance.

 

 

 

 

    	 	1	 

     

    

 

(d)              
Deemed Resignation. Upon termination of Executive’s employment for any reason, Executive shall be deemed to
have resigned from all offices, if any, then held with the Company or any of its subsidiaries, and, at the Company’s request,
Executive shall execute such documents as are necessary or desirable to effectuate such resignations.

 

Section
3. Compensation.

 

(a)              
Salary. In consideration of all of the services rendered by the Executive under the terms of this Agreement, the
Company shall pay to the Executive a base salary at the annualized rate of Two Hundred Sixty-five Thousand Dollars United States
($265,000.00) per annum, less payroll deductions and all required withholdings. Executive’s Base Salary shall be subject
to annual review and upward adjustment only by the Board of Directors of the Company (the “Board”) or a committee thereof,
beginning in fiscal 2018. The Base Salary shall be paid in accordance with the customary payroll practices of the Company in effect
from time to time. The Executive’s salary, as adjusted from time to time under this Section 3(a), is referred to as (“Base
Salary”).

 

(b)              
Annual Bonus. With respect to each Company fiscal year that ends during the Term, commencing with fiscal year 2017,
the Executive shall be eligible to receive an annual performance-based cash bonus (the “Annual Bonus”) which shall
be payable based upon the attainment of individual and/or Company performance goals established by the Board or a committee thereof.
The target amount of such Annual Bonus shall equal 35% of Executive’s Base Salary in the year to which the Annual Bonus relates,
provided that the actual amount of the Annual Bonus may be greater or less than such target amount (the “Target Bonus”).
Each Annual Bonus, if any, for a fiscal year shall be payable, less payroll deductions and all required withholdings, not later
than the fifteenth day of the third month following the end of such year. Except as provided in Section 7, notwithstanding any
other provision of this Section 3(b), no bonus shall be payable with respect to a Company fiscal year unless the Executive remains
continuously employed with the Company until the last day of such year.

 

(c)              
Reimbursement of Expenses. The Company will promptly reimburse Executive for all reasonable out-of-pocket business
expenses that are incurred by Executive in furtherance of the Company’s business in accordance with the Company’s policies
with respect thereto as in effect from time to time. The Executive shall be reimbursed by the Company for the reasonable attorneys’
fees and costs incurred by him in connection with the negotiation and preparation of this Agreement (and related equity award documentation),
up to a maximum of $3,000 provided that the Executive shall submit invoices to the Company within ninety (90) days of incurrence
of the expense, and the Company shall reimburse Executive within sixty (60) days thereafter.

 

(d)              
Fringe Benefits. In addition to any benefits provided by this Agreement, Executive shall be entitled to participate
generally in all employee benefit, welfare and other plans, practices, policies and programs and fringe benefits maintained by
the Company from time to time on a basis no less favorable than those provided to other similarly-situated executives of the Company.
The Executive understands that, except when prohibited by applicable law, the Company’s benefit plans and fringe benefits
may be amended, enlarged, diminished or terminated prospectively by the Company from time to time, in its sole discretion, and
that such shall not be deemed to be a breach of this Agreement.

 

(e)              
Vacation. Executive shall be entitled to accrue four (4) weeks of paid vacation days per year in accordance with
and subject to the terms of the Company’s vacation policy applicable to other executive officers of the Company, as it may
be amended prospectively from time to time.

 

 

 

 

    	 	2	 

     

    

 

Section
4. Insurance; Indemnification.

 

During Executive’s
employment with the Company, the Company shall maintain the insurance it currently has with respect to (i) directors’ and
officers’ liability, (ii) errors and omissions and (iii) general liability insurance providing coverage to Executive to the
same extent as other senior executives of the Company. Executive’s coverage under such insurance shall terminate upon Executive’s
leaving of the Company’s employ for any reason. The Executive will be entitled to indemnification with respect to Executive’s
services provided hereunder pursuant to Nevada law, the terms and conditions of Company’s articles of incorporation and/or
bylaws, Company’s directors and officers (“D&O”) liability insurance policy, and Company’s standard
indemnification agreement for directors and officers as executed by Company and Executive.

 

Section
5. Equity Awards.

 

(a)              
Initial Grant. As a material inducement to enter into and undertake employment pursuant to this Agreement, the Company
shall grant to Executive as of the Effective Date a non-qualified stock option to purchase 175,000 shares of common stock of the
Company (the “Option”) outside of the Company’s 2014 Equity Incentive Plan (the “2014 Plan”), at
an exercise price equal to the fair market value of the Company’s common stock on the grant date. The Option shall vest one-third
upon the first anniversary of the Effective Date, one-third upon the second anniversary of the Effective Date and one-third upon
the third anniversary of the Effective Date, provided the Executive remains employed with the Company on the applicable vesting
date and further provided that, in the event of a Change in Control, as defined in the option agreement with respect to the Option,
while the Executive is employed by the Company any unvested portion of the Option shall vest immediately upon the Change in Control.
The Option is intended as an inducement grant pursuant to the parameters set forth in Nasdaq Rule 5635(c)(4), which, in this case,
provides an exception to the stockholder approval requirements for the grant of non-qualified stock options outside the Company’s
stockholder approved equity plans. The Option shall be evidenced in writing by, and subject to the terms and conditions of a stock
option agreement outside of the 2014 Plan, which agreement shall expire ten (10) years from the date of grant except as otherwise
provided herein or in such stock option agreement.

 

(b)              
 Sale of Shares. Executive agrees that he will not loan or pledge any securities of the Company owned by him or which
he may accrue in the future through Options or other equity awards as collateral for any indebtedness.

 

Section
6. Compliance with Company Policy.

 

During the Term, the
Executive shall observe all Company rules, regulations, policies, procedures and practices in effect from time to time, including,
without limitation, such policies and procedures as are contained in the Company policy and procedures manual, as may be amended
or superseded from time to time.

 

Section
7. Termination of Employment.

 

Executive’s
employment with the Company may be terminated during Term of this Agreement for any of the following reasons:

 

(a)              
By The Company For Cause. At any time during the Term, the Company may terminate Executive’s employment hereunder
for Cause. For purposes of this Agreement, “Cause” shall mean the occurrence of any of the following events, as determined
by the Board or a committee designated by the Board, in its sole discretion: (i) conduct by Executive constituting a material act
of willful misconduct in connection with the performance of his duties, including, without limitation, misappropriation of funds
or property of the Company or any of its affiliates other than the occasional, customary and de minimis use of Company property
for personal purposes; (ii) the commission by Executive of a felony or any misdemeanor involving moral turpitude, deceit, dishonesty
or fraud, or conduct by Executive that would reasonably be expected to result in material injury to the Company if he were retained
in his position; (iii) continued, willful and deliberate non-performance by Executive of his duties hereunder (other than by reason
of Executive’s physical or mental illness, incapacity or disability) which has continued for more than thirty (30) days following
written notice of such non-performance from the Company; (iv) a material breach by Executive of any of the provisions contained
in Paragraph 7 of this Agreement; (v) a material violation by Executive of the Company’s employment policies which has continued
for more than thirty (30) days following written notice of such violation from the Company; or (vi) willful failure to cooperate
with a bona fide internal investigation or an investigation by regulatory or law enforcement authorities, after being instructed
by the Company to cooperate, or the willful destruction or failure to preserve documents or other materials known to be relevant
to such investigation or the willful inducement of others to fail to cooperate or to produce documents or other materials.

 

 

 

 

    	 	3	 

     

    

 

(b)              
By The Company Without Cause.

 

At any time during
the Term, the Company may terminate Executive’s employment hereunder without Cause.

 

(c)              
By The Executive.

 

At any time during
the Term, Executive may terminate his employment hereunder for any reason, including but not limited to Good Reason. For purposes
of this Agreement, “Good Reason” shall mean that Executive has complied with the “Good Reason Process”
(hereinafter defined) following the occurrence of any of the following events: (i) a substantial diminution or other substantive
adverse change, not consented to by Executive, in the nature or scope of Executive’s responsibilities, authorities, powers,
functions or duties; (ii) a breach by the Company of any of its other material obligations under this Agreement, including but
not limited to failure of the Company to make any material payment or provide any material benefit under this Agreement, or (iii)
a change in the geographic location at which Executive must perform his services as provided under this Agreement to a location
more than fifty miles from the location set forth in this Agreement; provided that, a change in the employment of Executive to
another affiliate of Company does not in and of itself constitute “Good Reason.” “Good Reason Process”
shall mean that (A) Executive reasonably determines in good faith that a “Good Reason” event has occurred; (B) Executive
notifies the Company in writing of the occurrence of the Good Reason event within ninety (90) days of the occurrence of such event;
(C) Executive cooperates in good faith with the Company’s efforts, for a period not less than sixty (60) days following such
notice, to modify Executive’s employment situation in a manner acceptable to Executive and Company; (D) notwithstanding such
efforts, one or more of the Good Reason events continues to exist and has not been modified in a manner acceptable to Executive;
and (E) Executive terminates his employment no later than sixty (60) days after the end of the sixty (60) day cure period. If the
Company cures the Good Reason event in a manner acceptable to Executive during the sixty (60) day period, Good Reason shall be
deemed not to have occurred.

 

(d)              
Right to Severance.

 

In the event the Company
terminates Executive’s employment Without Cause or the Executive terminates employment for Good Reason as provided in Section
7(c) and if Executive executes and does not revoke during any applicable revocation period a general release of all claims against
the Company and its affiliates in a form acceptable to the Company (a “Release of Claims”) within a reasonable
period of time specified by the Company and in compliance with applicable law, following such termination, then in addition to
any accrued obligations payable under Section 7(e)(i) below, the Company shall:

 

(i)                
Beginning six months following the Effective Date pay to the Executive six months of Base Salary, with the severance increasing
to one year of Executive’s Base Salary on the first Anniversary of the Effective Date at which time the severance pay shall
be capped at one year of Executive’s Base Salary, less payroll deductions and all required withholdings, paid over time in
accordance with the Company’s payroll practices then in effect; and

 

(ii)             
The Company shall notify Executive of any right to continue group health plan coverage sponsored by the Company immediately
prior to Executive’s date of termination pursuant to the provisions of applicable law including, but not limited to, the
provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”). Beginning six
months following the Effective Date if Executive elects to receive such continued healthcare coverage, the Company shall directly
pay, or reimburse Executive for, the premium for Executive and Executive’ s covered dependents, less the amount of Executive’s
monthly premium contributions for such coverage prior to termination, for the period commencing on the first day of the first full
calendar month following the date the Release of Claims becomes effective and irrevocable through the earlier of (i) the last day
of the six or twelve (12) full calendar months (such period consistent with the severance payment period set forth in Section 7(d)(i)
above) following the date the Release of Claims becomes effective and irrevocable (ii) the date Executive and Executive’s
covered dependents, if any, become eligible for healthcare coverage under another employer’s plan(s). Executive shall notify
the Company immediately if Executive becomes covered by a group health plan of a subsequent employer. After the Company ceases
to pay premiums pursuant to this subsection, Executive may, if eligible, elect to continue healthcare coverage at Executive’s
expense in accordance the provisions of COBRA or other applicable law.

 

 

    	 	4	 

     

    

 

 

For purposes of this Section 7(d), Executive’s
termination of employment at the end of the Term following an earlier notice of nonrenewal by the Company shall be treated as a
termination of the Executive’s employment by the Company without Cause as of the last day of the Term.

 

(e)              
Upon a termination of the Executive’s employment for any reason, (i) the Executive shall be entitled to receive: (A)
any portion of the Executive’s Base Salary through the date of employment termination not theretofore paid, (B) any expenses
owed to the Executive under Section 3(c) above, (C) any accrued but unused vacation pay owed to the Executive pursuant to Section
3(e) above, and (D) any amount arising from the Executive’s participation in, or benefits under, any employee benefit plans,
programs or arrangements under Section 3(e), which amounts shall be payable in accordance with the terms and conditions of such
employee benefit plans, programs or arrangements.

 

(f)               
The payments and benefits described in this Section 7 shall be the only payments and benefits payable in the event of the
Executive’s termination of employment for any reason.

 

Section
8. Survival of Obligations.

 

The obligations of
the Executive as set forth in Section 4, Section 7 and Sections 9 through 17 below shall survive the term of this Agreement and
the termination of Executive’s employment hereunder regardless of the reason(s) therefor.

 

Section
9. Non-Competition and Conflicting Employment.

 

(a)              
During the Term, the Executive shall not, directly or indirectly, either as an Executive, employer, employee, consultant,
agent, principal, partner, officer, director, shareholder, member, investor or in any other individual or representative capacity,
engage or participate in any business or business related activity of any kind that is in competition in any manner whatever with
the business of the Company or any business activity related to the business in which the Company is now involved or becomes involved
during the Executive’s employment. For these purposes, the current business of the Company is described in the Company’s
prospectus dated November 1, 2016. The Executive also agrees that, during his employment with the Company, he will not engage in
any other activities that materially conflict with his obligations to the Company, it being understood that activities approved
by the Board under Section 2(b) or otherwise in writing shall not be considered to violate this Section 9(a).

 

(b)              
As a material inducement to the Company to continue the employment of the Executive, and in order to protect the Company’s
Confidential Information and good will, the Executive agrees that:

 

(i)                
For a period of twelve (12) months following termination of the Executive‘s employment with the Company or its affiliates
for any reason, Executive will not directly or indirectly solicit or divert or accept business relating in any manner to Competing
Products or to products, processes or services of the Company, from any of the customers or accounts of the Company with which
the Executive had any contact as a result of Executive’s employment with the Company; and

 

(c)              
For a period of twelve (12) months after termination of Executive’s employment with the Company or its affiliates
for any reason, Executive will not (A) render services directly or indirectly, as an Executive, consultant or otherwise, to any
Competing Organization in connection with research on or the acquisition, development, production, distribution, marketing or providing
of any Competing Product, or (B) own any interest in any Competing Organization except as an investor or stockholder of more than
2% of the equity securities of any entity:

 

(i)                
“Competing Products” means any product, process, or service of any person or organization other than the Company,
in existence or under development (a) which is identical to, substantially the same as, or an adequate substitute for any product,
process or service of the Company in existence or under development, based on any patent or patent application (provisional or
otherwise), or other intellectual property of the Company about which the Executive acquires Confidential Information, and (b)
which is (or could reasonably be anticipated to be) marketed or distributed in such a manner and in such a geographic area as to
actually compete with such product, process or service of the Company; and

 

(ii)             
“Competing Organization” means any person or organization, including the Executive, engaged in, or about to
become engaged in, research on or the acquisition, development, production, distribution, marketing or providing of a Competing
Product.

 

 

 

 

    	 	5	 

     

    

 

(d)              
The parties agree that the Company is entitled to protection of its interests in these areas. The parties further agree
that the limitations as to time, geographical area, and scope of activity to be restrained do not impose a greater restraint upon
Executive than is necessary to protect the goodwill or other business interest of the Company. The parties further agree that in
the event of a violation of this Covenant Not To Compete, that the Company shall be entitled to the recovery of damages from Executive
and injunctive relief against Executive for the breach or violation or continued breach or violation of this Covenant. The Executive
agrees that if a court of competent jurisdiction determines that the length of time or any other restriction, or portion thereof,
set forth in this Section 9 is overly restrictive and unenforceable, the court may reduce or modify such restrictions to those
which it deems reasonable and enforceable under the circumstances, and as so reduced or modified, the parties hereto agree that
the restrictions of this Section 9 shall remain in full force and effect. The Executive further agrees that if a court of competent
jurisdiction determines that any provision of this Section 9 is invalid or against public policy, the remaining provisions of this
Section 9 and the remainder of this Agreement shall not be affected thereby, and shall remain in full force and effect.

 

Section
10. Confidentiality.

 

(a)              
Executive recognizes and acknowledges that he will have access to certain information of members of the Company and that
such information is confidential and constitutes valuable, special and unique property of such members of the Company. The parties
agree that the Company has a legitimate interest in protecting the Confidential Information , as defined below. The parties agree
that the Company is entitled to protection of its interests in the Confidential Information. The Executive shall not at any time,
either during his employment and for seven (7) years after the termination of his employment with the Company for any reason, or
indefinitely to the extent the Confidential Information constitutes a trade secret under applicable law, disclose to others, use,
copy or permit to be copied, except in pursuance of his duties for and on behalf of the Company, its successors, assigns or nominees,
any Confidential Information of any member of the Company (regardless of whether developed by the Executive) without the prior
written consent of the Company. Executive acknowledges that the use or disclosure of the Confidential Information to anyone or
any third party could cause monetary loss and damages to the Company as well as irreparable harm. The parties further agree that
in the event of a violation of this covenant against non-use and non-disclosure of Confidential Information, that the Company shall
be entitled to a recovery of damages from Executive and/or to obtain an injunction against Executive for the breach or violation,
continued breach, threatened breach or violation of this covenant.

 

(b)              
As used herein, the term “Confidential Information” with respect to any person means any secret or confidential
information or know-how and shall include, but shall not be limited to, plans, financial and operating information, customers,
supplier arrangements, contracts, costs, prices, uses, and applications of products and services, results of investigations, studies
or experiments owned or used by such person, and all apparatus, products, processes, compositions, samples, formulas, computer
programs, computer hardware designs, computer firmware designs, and servicing, marketing or manufacturing methods and techniques
at any time used, developed, investigated, made or sold by such person, before or during the term of this Agreement, that are not
readily available to the public or that are maintained as confidential by such person. The Executive shall maintain in confidence
any Confidential Information of third parties received as a result of his employment with the Company in accordance with the Company’s
obligations to such third parties and the policies established by the Company.

 

(c)              
As used herein, “Confidential Information” with respect to the Company means any Company proprietary information,
technical data, trade secrets, know-how or other business information disclosed to the Executive by the Company either directly
or indirectly in writing, orally or by drawings or inspection or unintended view of parts, equipment, data, documents or the like,
including, without limitation:

 

(i)                
Medical and drug research and testing results and information, research and development techniques, processes, methods,
formulas, trade secrets, patents, patent applications, computer programs, software, electronic codes, mask works, inventions, machines,
improvements, data, formats, projects and research projects;

 

(ii)             
Information about costs, profits, markets, sales, pricing, contracts and lists of customers, distributors and/or vendors
and business, marketing and/or strategic plans;

 

(iii)           
Forecasts, unpublished financial information, budgets, projections, and customer identities, characteristics and agreements
as well as all business opportunities, conceived, designed, devised, developed, perfected or made by the Executive whether alone
or in conjunction with others, and related in any manner to the actual or anticipated business of the Company or to actual or anticipated
areas of research and development; and

 

(iv)            
Executive personnel files and compensation information.

  

 

    	 	6	 

     

    

 

(d)              
Notwithstanding the foregoing, Confidential Information as defined in Sections 10(b) and (c) does not include any of the
foregoing items which (i) has become publicly known or made generally available to the public through no wrongful act of Executive;
(ii) has been disclosed to Executive by a third party having no duty to keep Company matter confidential; (iii) has been developed
by Executive independently of employment with the company; (iv) has been disclosed by the Company to a third party without restriction
on disclosure; (v) has been disclosed with the Company’s written consent, or (vi) the Company’s investors, shareholders
and other capital sources.

 

(e)              
Executive hereby acknowledges and agrees that all Confidential Information shall at all times remain the property of the
Company.

 

(f)               
Executive agrees that Executive will not improperly use or disclose any Confidential Information, proprietary information
or trade secrets of any former employer or other person or entity or entity with which Executive has an agreement or duty to keep
in confidence information acquired by Executive and that Executive will not bring onto Company premises any unpublished document
or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer, person
or entity.

 

(g)              
Executive recognizes that the Company has received and in the future will receive from third parties their confidential
or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and
to use it only for certain limited purposes. Executive agrees to hold all such confidential or proprietary information in the strictest
of confidence and not to disclose it to any person, firm or entity or to use it except as necessary in carrying out Executive ‘s
work for the Company consistent with Company’s agreement with such third party.

 

(h)              
Executive represents and warrants that from the time of the Executive’s first contact with the Company, Executive
has held in strict confidence all Confidential Information and has not disclosed any Confidential Information directly or indirectly
to anyone outside the Company, or used, copied, published or summarized any Confidential Information, except to the extent otherwise
permitted under the terms of this Agreement.

 

(i)                
Executive will not disclose to the Company or use on its behalf any confidential information belonging to others and Executive
will not bring onto the premises of the Company any confidential information belonging to any such party unless consented to in
writing by such party.

 

Section
11. Inventions.

 

(a)              
Attached hereto as Exhibit A is a list describing all ideas, processes, trademarks, service marks, inventions, designs,
technologies, computer hardware or software, original works of authorship, formulas, discoveries, patents, copyrights, copyrightable
works, products, marketing and business ideas, and all improvements, know-how, data rights, and claims related to the foregoing,
whether or not patentable, registrable or copyrightable, which were conceived, developed or created by Executive prior to Executive’s
employment or first contact with Company (collectively referred to herein as “Prior Inventions”), (A) which belong
to Executive, (B) which relate to the Company’s current or contemplated business, products or research and development, and
(C) which are not assigned to the Company hereunder. If there is no Exhibit A or no items thereon, the Executive represents that
there are no such Prior Inventions. If in the course of Executive’s employment with the Company, the Executive incorporates
or embodies into a Company product, service or process a Prior Invention owned by the Executive or in which the Executive has an
interest, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, world-wide license
to make, have made, modify, use and sell such Prior Invention as part of or in connection with such product, service or process.

 

(b)              
Executive agrees that Executive will promptly make full, written disclosure to the Company and will hold in trust for the
sole right and benefit of the Company, and the Executive hereby assigns to the Company, or its designee, all of the Executive’s
right, title and interest in and to any and all ideas, process, trademarks, service marks, inventions, designs, technologies, computer
hardware or software, original works of authorship, formulas, discoveries, patents, copyrights, copyrightable works, products,
marketing and business ideas, and all improvements, know-how, data, rights and claims related to the foregoing, whether or not
patentable, registrable or copyrightable, which Executive may, on or after the Effective Date of this Agreement, solely or jointly
with others conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the
period of time the Executive is in the employ of the Company (collectively referred to herein as “Intellectual Property Items”);
and the Executive further agrees that the foregoing shall also apply to Intellectual Property Items which relate to the business
of the Company or to the Company’s anticipated business as of the end of the Executive’s employment and which are conceived,
developed or reduced to practice during a period of one year after the end of such employment. Without limiting the foregoing,
the Executive further acknowledges that all original works of authorship which are made by Executive (solely or jointly with others)
within the scope of Executive’ employment and which are protectable by copyright are works made for hire as that term is
defined in the United Stated Copyright Act.

 

 

 

 

    	 	7	 

     

    

 

(c)              
Executive agrees to keep and maintain adequate and current written records of all Intellectual Property Items made by Executive
(solely or jointly with others) during the term of Executive’s employment with the Company. The records will be in the form
of notes, sketches, drawings and any other format that may be specified by the Company. The records will be available to, and remain
the sole property of, the Company at all times.

 

Section
12. Return of Company Property.

 

Executive agrees that,
at any time upon request of the Company, and, in any event, at the time of leaving the Company’s employ, Executive will deliver
to the Company (and will not keep originals or copies in Executive’s possession or deliver them to anyone else) any and all
devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, material,
equipment or other documents or property, or reproduction of any of the aforementioned items, containing Confidential Information
or otherwise belonging to the Company, its successors or assigns, whether prepared by the Executive or supplied to the Executive
by the Company. Notwithstanding the foregoing, it is understood that names and contacts in the Executive’s address book acquired
both prior to and during employment, including shareholders of the Company, will remain property of the Executive who will not
be restricted from doing business with them subject to the limitations Sections 10 and 14 hereof and applicable law.

 

Section
13. Non-Solicitation.

 

Executive agrees that
Executive shall not, during Executive’s employment or other involvement with the Company and for a period of twelve (12)
months immediately following the termination of the Executive’s employment with the Company, for any reason, whether with
or without cause, (i) either directly or indirectly solicit or take away, or attempt to solicit or take away executives of the
Company, either for the Executive’s own business or for any other person or entity and/or (ii) either directly or indirectly
recruit, solicit or otherwise induce or influence any investor, lessor, supplier, customer, agent, representative or any other
person which has a business relationship with the Company to discontinue, reduce or modify such employment, agency or business
relationship with the Company.

 

Section
14. Publications.

 

Executive agrees that
Executive will, in advance of publication, provide the Company with copies of all writings and materials which Executive proposes
to publish during the term of Executive’s employment and for twenty-four (24) months thereafter. Executive also agrees that
Executive will, at the Company’s request and sole discretion, cause to be deleted from such writings and materials any information
the Company believes discloses or will disclose Confidential Information. The Company’s good faith judgment in these matters
will be final. The Executive will also, at the Company’ request and in its sole discretion, cause to be deleted any reference
whatsoever to the Company from such writings and materials.

 

Section
15. Equitable Remedies.

 

Executive agrees that
any damages awarded the Company for any breach of Sections 9 through 14 of this Agreement by Executive would be inadequate. Accordingly,
in addition to any damages and other rights or remedies available to the Company, the Company shall be entitled to obtain injunctive
relief from a court of competent jurisdiction temporarily, preliminarily and permanently restraining and enjoining any such breach
or threatened breach and to specific performance of any such provision of this Agreement. In the event that either party commences
litigation against the other under this Agreement the prevailing party in said litigation shall be entitled to recover from the
other all costs and expenses incurred to enforce the terms of this Agreement and/or recover damages for any breaches thereof, including
without limitation reasonable attorneys’ fees.

 

Section
16. Representations and Warranties.

 

(a)              
Executive represents and warrants as follows that: (i) Executive has no obligations, legal or otherwise, inconsistent with
the terms of this Agreement or with the Executive’s undertaking a relationship with the Company; and (ii) Executive has not
entered into, nor will Executive enter into, any agreement (whether oral or written) in conflict with this Agreement.

 

(b)              
The Company represents and warrants to the Executive that this Agreement and the Options grant have been duly authorized
by the Company’s Board of Directors and are the valid and binding obligations of the Company, enforceable in accordance with
their respective terms.

 

 

 

 

    	 	8	 

     

    

 

Section
17. Miscellaneous.

 

(a)              
Entire Agreement. This Agreement, the exhibits attached hereto, and the Options granted concurrently herewith under
Section 5(a) hereof, contain the entire understanding of the parties and supersede all previous contracts, arrangements or understandings,
express or implied, between the Executive and the Company with respect to the subject matter hereof or his engagement by the Company
as Chief Financial Officer. No agreements or representations, oral or otherwise, express or implied, with respect to the subject
matter hereof have been made by either party which are not expressly set forth in this Agreement or in the attached exhibits.

 

(b)              
Section Headings. The section headings herein are for the purpose of convenience only and are not intended to define
or limit the contents of any section.

 

(c)              
Severability. If any provision of this Agreement shall be declared to be invalid or unenforceable, in whole or in
part, the remainder of this Agreement shall be amended to provide the parties with the equivalent of the same rights and obligations
as provided in the original provisions of this Agreement.

 

(d)              
No Oral Modification; Waiver or Discharge. No provisions of this Agreement may be modified, waived or discharged
orally, but only by a waiver, modification or discharge in writing signed by the Executive and such officer as may be designated
by the Board of Directors of the Company to execute such a waiver, modification or discharge. No waiver by either party hereto
at any time of any breach by the other party hereto of, or failure to be in compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the
time or at any prior or subsequent time.

 

(e)              
Invalid Provisions. Should any portion of this Agreement be adjudged or held to be invalid, unenforceable or void,
such holding shall not have the effect of invalidating or voiding the remainder of this Agreement and the parties hereby agree
that the portion so held invalid, unenforceable or void shall, if possible, be deemed amended or reduced in scope, or otherwise
be stricken from this Agreement to the extent required for the purposes of validity and enforcement

 

(f)               
Execution In Counterparts. The parties may sign this Agreement in counterparts, all of which shall be considered
one and the same instrument. Facsimile transmissions, or electronic transmissions in .pdf format, of any executed original document
and/or retransmission of any executed facsimile or .pdf transmission shall be deemed to be the same as the delivery of an executed
original of this Agreement.

 

(g)              
Governing Law And Performance. This Agreement shall be governed, construed, interpreted and enforced in accordance
with the substantive laws of the Commonwealth of Massachusetts, without giving effect to any choice of law or conflict of law provision
or rule (whether of the Commonwealth of Massachusetts or any other jurisdiction) that would cause the application of the law of
any jurisdiction other than the Commonwealth of Massachusetts. Any legal action or proceeding with respect to this Agreement shall
be brought in the courts of the Commonwealth of Massachusetts or of the United States of America for the District of Massachusetts.
By execution and delivery of this Agreement, each of the parties hereto accepts for itself and in respect of its property, generally
and unconditionally, the exclusive jurisdiction of the aforesaid courts. ANY ACTION, DEMAND, CLAIM, OR COUNTERCLAIM ARISING UNDER
OR RELATING TO THIS AGREEMENT SHALL BE RESOLVED BY A JUDGE ALONE AND EACH OF COMPANY AND EXECUTIVE WAIVES ANY RIGHT TO A JURY TRIAL
THEREOF.

 

(h)              
Successor and Assigns. This Agreement shall be binding on and inure to the benefit of the successors in interest
of the parties, including, in the case of the Executive, the Executive’s heirs, executors and estate. The Executive may not
assign Executive’s obligations under this Agreement. Any successor to the Company (whether direct or indirect and whether
by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or
assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in
the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession.
For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business
and/or assets which executes and delivers the assumption agreement described in this Section 17(h) or which becomes bound
by the terms of this Agreement by operation of law.

 

 

 

    	 	9	 

     

    

 

(i)                
Notices. Any notices or other communications provided for hereunder may be made by hand, by certified or registered
mail, postage prepaid, return receipt requested, or by nationally recognized express courier services provided that the same are
addressed to the party required to be notified at its address first written above, or such other address as may hereafter be established
by a party by written notice to the other party. Notice shall be considered accomplished on the date delivered, three days after
being mailed or one day after deposit with the express courier, as applicable.

 

Section
18. Section 409A.

 

(a)              
It is intended that any compensation or benefits under this Agreement satisfy, to the greatest extent possible, the exemptions
from the application of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) provided under
Treasury Regulations Sections 1.409A-1(b), and this Agreement will be construed to the greatest extent possible as consistent with
those provisions, and to the extent not so exempt, this Agreement (and any definitions hereunder) will be construed in a manner
that complies with Section 409A. For purposes of Section 409A, the Executive’s right to receive any installment payments
under this Agreement 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. Severance benefits under Section 7(d) shall not commence
until the Executive has a “separation from service” for purposes of Section 409A.

 

(b)              
To the extent that any reimbursement of expenses or in-kind benefits constitutes deferred compensation under Section 409A,
such reimbursement or benefit shall be provided no later than December 31 of the year following the year in which the expense was
incurred. The amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent
year. The amount of any in-kind benefits provided in one year shall not affect the amount of in-kind benefits provided in any other
year.

 

(c)              
If the Executive is deemed at the time of his separation from service to be a specified employee for purposes of Section
409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of the compensation and benefits to which the Executive
is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the
Code, such portion of the Executive’s termination benefits shall be provided to the Executive immediately after the earlier
of (A) the expiration of the six-month period measured from the date of the Executive’s separation from service with the
Company (as such term is defined in the Treasury Regulations issued under Section 409A of the Code) or (B) the date of the Executive’s
death in a lump sum, and any remaining payments due under the Agreement shall be paid as otherwise provided herein.

 

Section
19. Limitation of Payments upon Certain Events.

 

(a)              
Limitation on Payments. Notwithstanding anything in this Agreement to the contrary, if any payment or distribution
Executive would receive pursuant to this Agreement or otherwise (“Payment”) would (a) constitute a “parachute
payment” within the meaning of Section 280G of the Code), and (b) but for this sentence, be subject to the excise tax imposed
by Section 4999 of the Code (the “Excise Tax”), then the Company shall cause to be determined, before any amounts
of the Payment are paid to Executive, which of the following alternative forms of payment would maximize Executive’s after-tax
proceeds: (i) payment in full of the entire amount of the Payment (a “Full Payment”), or (ii) payment of only
a part of the Payment so that Executive receives that largest Payment possible without being subject to the Excise Tax (a “Reduced
Payment”), whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes
and the Excise Tax (all computed at the highest marginal rate, net of the maximum reduction in federal income taxes which could
be obtained from a deduction of such state and local taxes), results in Executive’s receipt, on an after-tax basis, of the
greater amount of the Payment, notwithstanding that all or some portion the Payment may be subject to the Excise Tax.

 

 

 

 

    	 	10	 

     

    

 

(b)              
The independent registered public accounting firm engaged by the Company for general audit purposes as of the day prior
to the date the first Payment is due shall make all determinations required to be made under this Section 19. If the independent
registered public accounting firm so engaged by the Company is serving as accountant or auditor for the individual, group or entity
effecting the transaction, the Company shall appoint a nationally recognized independent registered public accounting firm to make
the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such independent
registered public accounting firm required to be made hereunder.

 

(c)              
The independent registered public accounting firm engaged to make the determinations hereunder shall provide its calculations,
together with detailed supporting documentation, to the Company and Executive at such time as requested by the Company or Executive.
If the independent registered public accounting firm determines that no Excise Tax is payable with respect to a Payment, either
before or after the application of the Reduced Payment, it shall furnish the Company and Executive with an opinion reasonably acceptable
to Executive that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the accounting firm
made hereunder shall be final, binding and conclusive upon the Company and Executive.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Employment Agreement under seal as of the date and year first above written.

 

 

	Company:	 	Executive:
	 	 	 
	Xenetic Biosciences, Inc.	 	 
	 	 	 
	/s/ M. Scott Maguire	 	/s/ James F. Parslow
	By: M. Scott Maguire	 	By: James F. Parslow
	       Chief Executive Officer	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

 

 

 

    	 	11

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