Document:

Exhibit 10.3

 

Second
Amendment to Employment Agreement

 

This Second Amendment
to Employment Agreement (this “Amendment”) effective July 26, 2017 (the “Second Amendment Effective Date”)
is an amendment to that certain Employment Agreement (the “Agreement”) dated as of September 28, 2015 and amended March
7, 2017, by and between Brainstorm Cell Therapeutics Ltd., a company incorporated under the laws of the State of Israel and maintaining
its principal place of business at 12 Bazel St. Petach Tikva, Israel (the “Subsidiary”), Brainstorm Cell Therapeutics
Inc. (the “Company”) and Chaim Lebovits (the “Employee”).

 

NOW, THEREFORE, in
consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

 

		1.	Subsection 3.1 to the Agreement is hereby deleted in its entirety and amended and restated as follows:

 

3.1 COMPENSATION APPROVED
ON SECOND AMENDMENT EFFECTIVE DATE:

 

(a) Salary.
From the Second Amendment Effective Date the Company shall pay Employee an annualized gross base salary of USD $500,000 (the “Salary”)
paid in accordance with the Company’s normal payroll practices.

 

(b) Bonus.
On and after the Second Amendment Effective Date, Employee shall be eligible to receive an annual cash bonus equal to fifty percent
(50%) of Employee’s Base Salary, subject to his satisfaction of pre-established performance goals to be mutually agreed upon
by the Board (or a committee thereof) and the Employee each year during the employment period. Performance shall be evaluated through
a performance management framework and a bonus range based on the target bonus.

 

(c) Equity
Grant. On the Second Amendment Effective Date and on each anniversary thereafter, the Employee shall receive a grant of
restricted stock under the Company’s 2014 Global Share Option Plan (or any successor or other equity plan then maintained
by the Company; the “Plan”) comprised of a number of shares of common stock of the Company with a fair market value
determined based on the price of the Company’s common stock at the end of normal trading hours on the business day immediately
preceding the date of grant according to Nasdaq, equal to 30% of the Employee’s Base Salary (each, an “Equity Grant”).
Each Equity Grant shall be contingent upon Employee’s execution of one or more restricted stock agreements in such form and
substance as may reasonably be determined by the Company. Each Equity Grant shall vest as to twenty-five percent (25%) of the award
on each of the first, second, third and fourth anniversary of the date of grant, provided the Employee remains continuously employed
by the Company from the date of grant through each applicable vesting date. Each Equity Grant shall be subject to accelerated vesting
upon a Change of Control of the Company and such other accelerated vesting as provided in this Agreement or the Plan (and any award
agreement evidencing such grant, to the extent such award agreement contains more preferential terms). In the event of the Employee’s
termination of employment, the Employee shall retain his right to any vested shares (after taking into account any accelerated
vesting) and any portion of the Equity Grant that is not yet vested (after taking into account such accelerated vesting) shall
automatically be immediately forfeited to the Company, without the payment of any consideration to the Employee. In addition, the
Employee shall be entitled to receive additional equity or equity-based awards, including stock options, as determined by the Board
(or the Compensation Committee of the Board) in its sole discretion.

 

(d) Option
Grant. On the Second Amendment Effective Date the Company shall grant the Employee an option to purchase stock of the Company
(the “Option”) on shares with a fair market value (as determined based on the closing price of the Company’s
common stock at the end of normal trading hours on the business day immediately preceding the Second Amendment Effective Date according
to Nasdaq) of Two Hundred Thousand U.S. Dollars ($200,000) on the Second Amendment Effective Date. The Option shall be fully vested
and exercisable as of the date of grant and shall remain exercisable until the 2nd anniversary of the date of grant, regardless
of whether the Employee remains employed by the Company. The exercise price per share shall be equal to the fair market value on
the date of grant (as determined based on the price of the Company’s common stock immediately preceding normal trading hours
on the date of grant according to Nasdaq). The grant of the Option is also contingent upon Employee’s execution of one or
more stock option agreements in such form and substance as may reasonably be determined by the Company.

 

     

     

    

 

(e) Change
of Control.“Change of Control” means the first to occur of any of the following: (i) The sale, transfer,
conveyance or other disposition by the Company, in one or a series of related transactions, whereby an independent third party(s)
becomes the beneficial owner of a majority of the voting securities of the Company; (ii) any merger, consolidation or similar transaction
involving the Company, other than a transaction in which the stockholders of the Company immediately prior to the transaction hold
immediately thereafter in the same proportion as immediately prior to the transaction not less than 50% of the combined voting
power of the then voting securities with respect to the election of the Board of Directors of the resulting entity; or (iii) any
sale of all or substantially all of the assets of the Company. Notwithstanding the foregoing, no change in ACCBT Corp., ACC International
Holdings Ltd. or their affiliates’ ownership of the Company shall be deemed a Change of Control under this Agreement, and
none of the following shall, either together or alone, constitute a Change of Control: (A) the subscription for, or issuance of
Company securities (whether or not constituting more than 50% of the Company’s issued and outstanding securities (unless
such subscription or issuance would result in a Change of Control under clause (i) above)); (B) the issuance or exercise of Board
appointment or nomination rights of any kind (whether or not relating to a majority of Board members); (C) preemptive rights to
purchase securities of the Company, or the exercise of such rights; (D) the right to consent to Company corporate actions; or (E)
the exercise of warrants or options.

 

		2.	Section 4 of the Agreement (“TERM OF AGREEMENT”) is hereby deleted in its entirety
and amended and restated as follows:

 

4. TERMINATION AND CONSEQUENCES.

 

4.1       The
Employee’s Rights to Terminate. Notwithstanding any other provision of this Agreement to the contrary, the Employee may
terminate this Agreement at any time, (i) for Good Reason (as defined in Section 5(g) below), or (ii) without Good Reason on (A)
thirty (30) days’ prior written notice to the Company through the first anniversary of the Effective Date; (B) sixty (60)
days’ prior written notice following the first anniversary of the Effective Date.

 

4.2       The
Company’s Right to Terminate. Notwithstanding any other provision of this Agreement to the contrary, the Company may
terminate this Agreement at any time during the term hereof, (i) immediately with Cause (as defined in Section 4.8 below), or (ii)
on (A) thirty (30) days’ prior written notice to the Employee through the first anniversary of the Effective Date; or (B)
sixty (60) days’ prior written notice following the first anniversary of the Effective Date, without Cause.

 

4.3       Consequences
of Termination without Cause or for Good Reason. If the Company terminates this Agreement or Employee’s employment hereunder
without Cause or if the Employee terminates this Agreement or his employment hereunder with Good Reason as defined in Section 4.7
hereof, the Company shall: (i) pay the Employee, as severance pay, an amount equal to six (6) months of his Base Salary (which
severance pay shall increase to an amount equal to nine (9) months of his then current Base Salary if such termination occurs after
the two-year anniversary of the Effective Date and to an amount equal to twelve (12) months of his then current Base Salary if
such termination occurs after the third anniversary of the Effective Date; provided Employee was actively employed by the Company
on such anniversary date) (assuming Employee is actively employed by the Company on such anniversary date (the “Payment Period”)
payable in a lump sum payment within ninety (90) days following the termination date; and (ii) pay the Employee within thirty (30)
days of the termination of his employment (or such revised payment period pursuant to Section 4.10 of this Agreement) any portion
of the bonus compensation that the Employee would otherwise be entitled to receive during the Payment Period (giving Employee credit
for those milestones and performance goals that Employee successfully completed through the effective termination date); (iii)
immediately vest in the number of equity or equity based awards that would have vested during the following six (6) months following
the effective date of termination of employment; and (iv) shall continue to provide to or pay the cost of continuation of Employee’s
and his eligible dependents’ health insurance benefits contemplated under Section 3.7 hereof during the Payment Period. Should
the Employee become eligible for health insurance benefits provided by a new employer during the duration of Payment Period, then
the Company’s obligation to pay for or reimburse the Employee for health insurance costs will terminate when the Employee’s
new health insurance benefit begins. Notwithstanding anything to the contrary, no compensation of any kind shall be payable to
the Employee pursuant to this Section 4.3 unless or until Employee executes and delivers a full and general waiver and release
to the Company (in favor of the Company, its successors, assigns, Board members, officers, employees, affiliates, subsidiaries,
parent companies and representatives), in a form reasonably acceptable to the Company and the Employee, such waiver and release
to be delivered by Employee within ten (10) days after the termination of his employment (unless applicable law requires a longer
time period, in which case this date will be extended to the minimum time required by applicable law).

 

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4.4       Consequences
of Termination With Cause or Without Good Reason. If the Company terminates this Agreement or Employee’s employment hereunder
with Cause or the Employee terminates this Agreement or his employment hereunder without Good Reason, then (i) Employee’s
Base Salary shall be discontinued upon the termination of the Agreement or his employment hereunder, (ii) no bonus compensation,
accrued or otherwise, shall be payable for the year in which the termination with Cause or without Good Reason occurs, (iii) to
the extent permitted by applicable law, the Employee shall cease to be entitled to participate in any benefit plans or programs
maintained by the Company, and (iv) Employee shall forfeit all rights to any unvested Company stock options if terminated by the
Company for Cause and shall forfeit all rights with respect to any Company unvested restricted stock if terminated by the Company
for Cause or if terminated by the Employee without Good Reason. The Employee shall be entitled to receive payment for all accrued
Base Salary and benefits earned through and including the date of termination, including, but not limited to all bonus compensation
earned, but not yet paid, for the year preceding the year in which such termination occurs, payment for all accrued, unused vacation,
reimbursement of all business expenses incurred through the date of termination, and all vested benefits to which the employee
is entitled. In addition, the Employee and his eligible dependents shall be entitled to continue all group health benefits at his
or their expense, pursuant to applicable law.

 

4.5       Consequences
of Termination for Death or Disability. If the Employee dies or is unable to perform the Employee Duties and/or any other obligations
he may have hereunder because of a Disability (as defined herein) during the term of this Agreement, then the Agreement shall terminate,
except that the Company shall pay within thirty (30) days of such event (or such revised payment period pursuant to Section 4.10
of this Agreement) all accrued Base Salary and any bonus compensation that the Employee would otherwise have been entitled to receive
through the date that the Employee’s employment with the Company is terminated and for a period of three (3) months thereafter.
In the case of a Disability, the Employee shall also receive any applicable payments and benefits pursuant to any disability plan
or policy sponsored or maintained by the Company. The unvested Equity Grant shall remain outstanding in accordance with their existing
terms and conditions.

 

4.6       Fringe
Benefits. In the case of termination under Sections 4.1, 4.2, 4.3 or 4.4 above, inclusive, subject to applicable law, the Company
shall discontinue any other benefits and perquisites provided under Section 3.1 above that are not otherwise provided for effective
as of the date that the Company’s obligation to pay Base Salary terminates.

 

4.7       Definition
of Good Reason. “Good Reason” means (i) a material reduction of the Employee’s Base Salary and benefits from
the levels in effect immediately prior to the reduction, (ii) a material reduction of the Employee Duties and responsibilities
from those in effect immediately prior to the reduction, or (iii) material breach by the Company of any provision of this Agreement
after receipt of written notice thereof from the Employee and failure by the Company to cure the breach within thirty (30) days
thereafter. A termination by the Employee under Sections 4.7(i), 4.7(ii) and/or 4.7(iii) will not be considered a termination for
Good Reason unless within thirty (30) days of the later of the last event relied upon by the Employee to establish Good Reason
or Employee’s knowledge thereof, the Employee furnishes the Company with a written statement specifying the reason or reasons
why he believes he is entitled to terminate his employment for Good Reason and affords the Company at least thirty (30) days during
which to remedy the cause thereof. Such thirty (30)-day notice period may run concurrently with the thirty (30)-day notice specified
in Section 4.1 above. Any such termination shall not be deemed a breach of the Agreement. If the Company timely cures the condition
giving rise to Good Reason for the Employee’s resignation, the notice of termination shall become null and void. If the Company
does not timely cure the condition giving rise to Good Reason, the Employee’s termination of employment shall be effective
as of the end of such cure period.

 

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4.8       Definition
of Cause. “Cause” means a good faith finding by the Company of: (i) gross negligence or willful misconduct by Employee
in connection with the Employee Duties, (ii) Employee’s indictment for, conviction of, or entry of a plea of guilty or no
contest or similar plea with respect to any felony, acts of fraud, misrepresentation, embezzlement, theft, dishonesty or breach
of fiduciary duty of loyalty to the Company or any of its subsidiaries, or a material and intentional breach of Sections 5, 6,
7 or 8.2 hereof by Employee, (iii) willful or repeated failure to follow specific directives of the CEO and/or the Board (or its
committees or other designees), (iv) willful failure by Employee (except where due to Disability or where performance of the Employee’s
duties is prohibited by law) or refusal to perform the Employee Duties, which failure or refusal is not corrected by the Employee
within ten (10) business days following receipt by the Employee of written notice from the Company of such failure or refusal,
and the actions required to correct the same, to the satisfaction of the CEO, (v) misappropriation by Employee of the assets or
business opportunities of the Company or its affiliates, (vi) any intentionally wrongful act or omission by the Employee that has
a material adverse effect on the reputation or business of the Company or any of its subsidiaries or affiliates, (vii) a willful
and/or knowing breach by Employee of any representations or warranties included in this Agreement, or (viii) Employee knowingly
allowing any third party to commit any of the acts described in any of the preceding clause (v) against the Company.

 

4.9       Definition
of Disability. “Disability” means the inability of the Employee to perform the Employee Duties pursuant to the
terms of this Agreement, because of physical or mental disability where such disability shall have existed for a period of more
than ninety (90) consecutive days in any two hundred and seventy (270) day period. The existence of a Disability means that the
Employee cannot perform the essential functions of his position with or without reasonable accommodation. The fact of whether or
not a Disability exists hereunder shall be determined by a professionally qualified medical expert reasonably chosen by the Company.

 

4.10       Special
Payment Provision. Notwithstanding any provision in the Agreement to the contrary:

 

(i)       This
Agreement is intended to comply with the requirements of Section 409A of the Code (“Section 409A”) and regulations
promulgated thereunder such that no payment provided hereunder shall be subject to an “additional tax” within the meaning
of Section 409A. To the extent that any provision in this Agreement is ambiguous as to its compliance with Section 409A, the provision
shall be read in such a manner so that all payments due under this Agreement shall not be subject to any additional tax. For purposes
of Section 409A, each payment made under this Agreement shall be treated as a separate payment. In no event may the Employee, directly
or indirectly, designate the calendar year of payment. All reimbursements provided under this Agreement shall be made or provided
in accordance with the requirements of section 409A, including, where applicable, the requirement that (i) any reimbursement is
for expenses incurred during the Employee’s lifetime (or during a shorter period of time specified in this Agreement), (ii)
the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement
in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar
year following the year in which the expense is incurred, and (iv) the right to reimbursement is not subject to liquidation or
exchange for another benefit.

 

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(ii)       If
payment or provision of any amount or other benefit that is a “deferral of compensation” subject to section 409A of
the Code at the time otherwise specified in this Agreement or elsewhere would subject such amount of benefit to additional tax
pursuant to section 409A(a)(1)(B) of the Code, and if payment or provision thereof at a later date would avoid any such additional
tax, then the payment or provision thereof shall be postponed to the earliest date on which such amount or benefit can be paid
or provided without incurring such additional tax. In the event this Section 11(o)(ii) requires a deferral of any payment, such
payment shall be accumulated and paid in a single lump sum on such earliest date together with interest for the period of delay,
compounded annually, equal to the prime rate (as published in The Wall Street Journal), and in effect as of the date of the payment
should otherwise have been provided.

 

(iii)       If
any payment or benefit permitted or required under this Agreement is reasonably determined by either party to be subject for any
reason to a material risk of additional tax pursuant to section 409A(a)(1)(B) of the Code, then the parties shall promptly agree
in good faith on appropriate provisions to avoid such risk without materially changing the economic value of this Agreement to
either party.

 

IN WITNESS WHEREOF, the parties hereto
have executed this Amendment effective as of the date set forth above.

 

	The Company:	 	 	 	 
	BRAINSTORM CELL THERAPEUTICS LTD.	 	The
Employee:	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	       	 	By:	       	 
	 	Name:	 	 	Chaim Lebovits	 
	 	Title:	 	 	    	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	The Parent:	 	 	 	 
	BRAINSTORM CELL THERAPEUTICS INC.	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	 	 	 	 	 
	 	Name:	 	 	 	 
	 	Title:	 	 	 	 

 

    	 	5NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION (“SEC”) OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR REASONABLY ACCEPTABLE TO THE COMPANY.

 

COMMON
STOCK PURCHASE WARRANT

 

To
Purchase 50,000 Shares of Common Stock of

 

Houston
American Energy Corp.

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) CERTIFIES that, pursuant to the terms of that certain Independent Contractor
Agreement (the “Services Agreement”) and for value received, Argus Energy Capital
Advisors, LLC (the “Holder”), is entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, to subscribe for and purchase from Houston American Energy
Corp., a corporation incorporated in the State of Delaware (the “Company”), up to 50,000 shares (the “Warrant
Shares”) of Common Stock, par value $0.001 per share, of the Company (the “Common Stock”). The purchase price
of one share of Common Stock (the “Exercise Price”) under this Warrant shall be $0.55 subject to adjustment hereunder.
The Exercise Price and the number of Warrant Shares for which the Warrant is exercisable shall be subject to adjustment as provided
herein.

 

1.
Title to Warrant. Prior to the Termination Date and subject to compliance with applicable laws and Section 7 of this Warrant,
this Warrant and all rights hereunder are transferable, in whole or in part, at the office or agency of the Company by the Holder
in person or by duly authorized attorney, upon surrender of this Warrant together with the Assignment Form annexed hereto properly
endorsed. The transferee shall sign an investment letter in form and substance reasonably satisfactory to the Company.

 

2.
Authorization of Shares. 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, be duly authorized,
validly issued, fully paid and nonassessable and free from all taxes, liens and charges in respect of the issue thereof (other
than taxes in respect of any transfer occurring contemporaneously with such issue).

 

3.
Vesting and Term. This Warrant shall (a) be exercisable, provided that services are continuing to be provided under the
Services Agreement as of such date, as to 12,500 shares, on or after each of December 6, 2017, September 6, 2018, September 6,
2019 and September 6, 2020 (each, an “Initial Exercise Date”), and (b) terminate on the close of business on December
31, 2021 (the “Termination Date”).

 

    	 

     

    

 

4.
Exercise of Warrant.

 

(a)
Exercise of the purchase rights represented by this Warrant may be made at any time or times on or after the applicable Initial
Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy of the Notice
of Exercise Form annexed hereto (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 such Holder appearing on the books of the Company); provided, however, within 5 trading days
of the date said Notice of Exercise is delivered to the Company, the Holder shall have surrendered this Warrant to the Company
and the Company shall have received payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or
cashier’s check drawn on a United States bank. Certificates for shares purchased hereunder shall be delivered to the Holder
within 10 trading days from the delivery to the Company of the Notice of Exercise Form by facsimile copy, surrender of this Warrant
and payment of the aggregate Exercise Price as set forth above.

 

(b)
If this Warrant shall have been exercised in part, the Company shall, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of 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.

 

(c)
This Warrant shall not be exercisable with respect to Warrant Shares (the “Unvested Warrant Shares”) as to which the
applicable Initial Exercise Date has not yet occurred and, on and after termination of services under the Services Agreement,
the Warrant shall not be exercisable with respect to Unvested Warrant Shares.

 

5.
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 that Holder would otherwise be entitled to purchase upon such exercise, the Company
shall pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price.

 

6.
Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for
any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses
shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may
be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto
duly executed by the Holder; and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse
it for any transfer tax incidental thereto.

 

7.
Closing of Books. The Company will not close its stockholder books or records in any manner that prevents the timely exercise
of this Warrant, pursuant to the terms hereof.

 

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8.
Transfer, Division and Combination.

 

(a)
Subject to compliance with any applicable securities laws and the conditions set forth in Sections 1 and 7(e) hereof, this Warrant
and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the
Company, 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 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. A Warrant,
if properly assigned, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

(b)
This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together
with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its
agent or attorney. Subject to compliance with Section 8(a), as to any transfer which may be involved in such division or combination,
the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined
in accordance with such notice.

 

(c)
The Company shall prepare, issue and deliver at its own expense (other than transfer taxes) the new Warrant or Warrants under
this Section 8.

 

(d)
The Company agrees to maintain, at its aforesaid office, books for the registration and the registration of transfer of the Warrants.
The Holder may change its address as shown on the registration by written notice to the Company requesting such change.

 

(e)
If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant
shall not be 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 and reasonably acceptable to the Company) 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. Notwithstanding anything herein to the contrary, the Holder shall have the absolute and unconditional right
to assign this Warrant, in part or in whole, to is officer, directors and employees.

 

9.
Supplying Information. The Company shall cooperate with each Holder of a Warrant and each holder of restricted Common Stock
issued upon exercise thereof in supplying such information as may be reasonably necessary for such holder to complete and file
any information reporting forms presently or hereafter required by the SEC and other regulatory authorities as a condition to
the availability of an exemption from the Securities Act for the sale of any Warrant or Warrant Shares

 

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10.
Limitation of Liability. No provision hereof, in the absence of affirmative action by Holder to purchase shares of Common
Stock, and no enumeration herein of the rights or privileges of Holder hereof, shall give rise to any liability of such Holder
for the purchase price of any Common Stock or as a stockholder of Company, whether such liability is asserted by Company or by
creditors of Company.

 

11.
No Rights as Shareholder until Exercise. This Warrant does not entitle the Holder to any voting rights or other rights
as a shareholder of the Company prior to the exercise hereof. Upon the surrender of this Warrant and the payment of the aggregate
Exercise Price, the Warrant Shares so purchased shall be and be deemed to be issued to such Holder as the record owner of such
shares as of the close of business on the later of the date of such surrender or payment.

 

12.
Piggyback Registration Rights.

 

(a)
The Company covenants and agrees with any holder of the Warrants or Warrant Shares (the “Registrable Securities”)
that if, at any time within the period commencing on the date hereof and ending on the Termination Date, it proposes to file a
registration statement with respect to any class of equity or equity-related security (other than in connection with an offering
to the Company’s employees or in connection with an acquisition, merger or similar transaction) under the Securities Act
in a primary registration on behalf of the Company and/or in a secondary registration on behalf of holders of such securities
and the registration form to be used may be used for registration of the Registrable Securities, the Company will give prompt
written notice (which, in the case of a registration statement pursuant to the exercise of demand registration rights shall be
within ten (10) business days after the Company’s receipt of notice of such exercise and, in any event, shall be at least
30 days prior to such filing) to the holders of Registrable Securities at the addresses appearing on the records of the Company
of its intention to file a registration statement and will offer to include in such registration statement all, but not less than
20% of the Registrable Securities, subject to paragraphs (i) and (ii) of this Section 12(a), such number of Registrable Securities
with respect to which the Company has received written requests for inclusion therein within ten (10) days after the giving of
notice by the Company. All registrations requested pursuant to this Section 12(a) are referred to herein as “Piggyback Registrations”.
All Piggyback Registrations pursuant to this Section 12 will be made solely at the Company’s expense. This Section is not
applicable to a registration statement filed by the Company on Forms S-4 or S-8 or any successor forms.

 

(i)
Priority on Primary Registrations. If a Piggyback Registration includes an underwritten primary registration on behalf
of the Company and the underwriter(s) for such offering determines in good faith and advises the Company in writing that in its/their
opinion the number of Registrable Securities requested to be included in such registration exceeds the number that can be sold
in such offering without materially adversely affecting the distribution of such securities by the Company, the Company will include
in such registration (A) first, the securities that the Company proposes to sell and (B) second, the Registrable Securities requested
to be included in such registration, apportioned pro rata among the holders of the Registrable Securities and holders of other
securities requesting registration.

 

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(ii)
Priority on Secondary Registrations. If a Piggyback Registration consists only of an underwritten secondary registration
on behalf of holders of securities of the Company, and the underwriter(s) for such offering advises the Company in writing that
in its/their opinion the number of Registrable Securities requested to be included in such registration exceeds the number which
can be sold in such offering without materially adversely affecting the distribution of such securities, the Company will include
in such registration (A) first, the securities requested to be included therein by the holders requesting such registration, and
(B) second, the Registrable Securities requested to be included in such registration and securities of holder of other securities
requested to be included in such registration statement, pro rata among all such holders on the basis of the number of shares
requested to be included by each such holder, provided, however, the Company will use its best efforts to include not less than
20% of the Registrable Securities.

 

Notwithstanding
the foregoing, if any such underwriter shall determine in good faith and advise the Company in writing that the distribution of
the Registrable Securities requested to be included in the registration concurrently with the securities being registered by the
Company would materially adversely affect the distribution of such securities by the Company, then the holders of such Registrable
Securities shall delay their offering and sale for such period ending on the earliest of (1) 90 days following the effective date
of the Company’s registration statement, (2) the day upon which the underwriting syndicate, if any, for such offering shall
have been disbanded or, (3) such date as the Company, managing underwriter and holders of Registrable Securities shall otherwise
agree. In the event of such delay, the Company shall file such supplements, post-effective amendments and take any such other
steps as may be necessary to permit such holders to make their proposed offering and sale for a period of 120 days immediately
following the end of any such period of delay. If any party disapproves the terms of any such underwriting, it may elect to withdraw
therefrom by written notice to the Company, the underwriter, and the holder. Notwithstanding the foregoing, the Company shall
not be required to file a registration statement to include shares pursuant to this Section 12 if independent counsel, reasonably
satisfactory to the Company, renders an opinion to the Company that the Registrable Securities proposed to be disposed of may
be transferred pursuant to the provisions of Rule 144 under the Securities Act or otherwise without registration under the Securities
Act.

 

(b)
In connection with the registration of Registrable Securities hereunder, the Company agrees to (i) bear the expenses of any registration;
provided, however, that in no event shall the Company be obligated to pay (A) any fees and disbursements of special counsel for
holders of Registrable Securities, (B) any underwriters’ discount or commission in respect of such Registrable Securities,
and (C) any stock transfer taxes attributable to the sale of the Registrable Securities; (ii) use its best efforts to register
or qualify the Registrable Securities for offer or sale under state securities or Blue Sky laws of such jurisdictions in which
such holders shall reasonably request, provided, however, that no qualification shall be required in any jurisdiction where, as
a result thereof, the Company would be subject to service of general process or to taxation as a foreign corporation doing business
in such jurisdiction to which it is not then subject; and (iii) enter into a cross-indemnity agreement, in customary form, with
each underwriter, if any, and each holder of securities included in such registration statement.

 

(c)
The Company’s obligations under this Section 12 shall be conditioned upon a timely receipt by the Company in writing of:
(i) information as to the terms of such public offering furnished by or on behalf of each holder of Registrable Securities intending
to make a public offering of his, her or its Registrable Securities, and (ii) such other information as the Company may reasonably
require from such holders, or any underwriter for any of them, for inclusion in such registration statement.

 

    	5

     

    

 

13.
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case
of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

14.
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall be a Saturday, Sunday or a legal holiday, then such action may be taken or such right may be
exercised on the next succeeding day not a Saturday, Sunday or legal holiday.

 

15.
Stock Splits. The number and kind of securities purchasable upon the exercise of this Warrant and the Exercise Price shall
be subject to adjustment from time to time upon the happening of any of the following. In case the Company shall (i) pay a dividend
in shares of Common Stock or make a distribution in shares of Common Stock to holders of its outstanding Common Stock, (ii) subdivide
its outstanding shares of Common Stock into a greater number of shares, (iii) combine its outstanding shares of Common Stock into
a smaller number of shares of Common Stock, or (iv) issue any shares of its capital stock in a reclassification of the Common
Stock, then the number of Warrant Shares purchasable upon exercise of this Warrant immediately prior thereto shall be adjusted
so that the Holder shall be entitled to receive the kind and number of Warrant Shares or other securities of the Company which
it would have owned or have been entitled to receive had such Warrant been exercised in advance thereof. Upon each such adjustment
of the kind and number of Warrant Shares or other securities of the Company which are purchasable hereunder, the Holder shall
thereafter be entitled to purchase the number of Warrant Shares or other securities resulting from such adjustment at an Exercise
Price per Warrant Share or other security obtained by multiplying the Exercise Price in effect immediately prior to such adjustment
by the number of Warrant Shares purchasable pursuant hereto immediately prior to such adjustment and dividing by the number of
Warrant Shares or other securities of the Company resulting from such adjustment. An adjustment made pursuant to this paragraph
shall become effective immediately after the effective date of such event retroactive to the record date, if any, for such event.

 

    	6

     

    

 

16.
Reorganization, Reclassification, Merger, Consolidation or Disposition of Assets. In case the Company shall reorganize
its capital, reclassify its capital stock, consolidate or merge with or into another corporation (where the Company is not the
surviving corporation or where there is a change in or distribution with respect to the Common Stock of the Company), or sell,
transfer or otherwise dispose of its property, assets or business to another corporation and, pursuant to the terms of such reorganization,
reclassification, merger, consolidation or disposition of assets, shares of common stock of the successor or acquiring corporation,
or any cash, shares of stock or other securities or property of any nature whatsoever (including warrants or other subscription
or purchase rights) in addition to or in lieu of common stock of the successor or acquiring corporation (“Other Property”),
are to be received by or distributed to the holders of Common Stock of the Company, then the Holder shall have the right thereafter
to receive upon exercise of this Warrant, the number of shares of Common Stock of the successor or acquiring corporation or of
the Company, if it is the surviving corporation, and Other Property receivable upon or as a result of such reorganization, reclassification,
merger, consolidation or disposition of assets by a Holder of the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event. In case of any such reorganization, reclassification, merger, consolidation or disposition of
assets, the successor or acquiring corporation (if other than the Company) shall expressly assume the due and punctual observance
and performance of each and every covenant and condition of this Warrant to be performed and observed by the Company and all the
obligations and liabilities hereunder, subject to such modifications as may be deemed appropriate (as determined in good faith
by resolution of the Board of Directors of the Company) in order to provide for adjustments of Warrant Shares for which this Warrant
is exercisable which shall be as nearly equivalent as practicable to the adjustments provided for in this Section 16. For purposes
of this Section 16, “common stock of the successor or acquiring corporation” shall include stock of such corporation
of any class which is not preferred as to dividends or assets over any other class of stock of such corporation and which is not
subject to redemption and shall also include any evidences of indebtedness, shares of stock or other securities which are convertible
into or exchangeable for any such stock, either immediately or upon the arrival of a specified date or the happening of a specified
event and any warrants or other rights to subscribe for or purchase any such stock. The foregoing provisions of this Section 16
shall similarly apply to successive reorganizations, reclassifications, mergers, consolidations or disposition of assets.

 

17.
Notice of Adjustment. Whenever the number of Warrant Shares or number or kind of securities or other property purchasable
upon the exercise of this Warrant or the Exercise Price is adjusted, as herein provided, the Company shall give notice thereof
to the Holder, which notice shall state the number of Warrant Shares (and other securities or property) purchasable upon the exercise
of this Warrant and the Exercise Price of such Warrant Shares (and other securities or property) after such adjustment, setting
forth a brief statement of the facts requiring such adjustment and setting forth the computation by which such adjustment was
made.

 

18.
Authorized Shares. The Company covenants that during the period the Warrant is outstanding, it will reserve from its authorized
and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full
authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates
for the Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable
action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable
law or regulation, or of any requirements of the trading market upon which the Common Stock may be listed.

 

19.
Miscellaneous.

 

(a)
Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall
be determined in accordance with the substantive laws of the State of Texas without giving effect to any choice or conflict of
law provision or rule. Any legal action or proceeding with respect to this Warrant may be brought in the courts of the State of
Texas and the United States of America located in the City of Houston, Texas, U.S.A. and, by execution and/or acceptance of this
Warrant, the parties hereto accept the jurisdiction of the aforesaid courts and irrevocably waive any objection, including, without
limitation, any objection to the venue or based on the grounds of forum non conveniens, which it may now or hereafter have to
the bringing of any such action or proceeding in such respective jurisdictions.

 

    	7

     

    

 

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

 

(c)
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 Holder’s rights, powers or remedies, notwithstanding all
rights hereunder terminate on the Termination Date. 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 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 Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights,
powers or remedies hereunder.

 

(d)
Notices. All notices, demands and requests of any kind to be delivered to any party in connection with this Warrant shall
be in writing and shall be deemed to have been duly given if personally delivered or if sent by internationally-recognized overnight
courier or by registered or certified mail, return receipt requested and postage prepaid, addressed as follows:

 

	 	if
    to the Company, to:	Houston
    American Energy Corp.
	 	 	801
    Travis, Suite 1425
	 	 	Houston,
    Texas 77002
	 	 	Attn:
    President

 

	 	if
    to the Holder, to:	the
    address of the Holder(s) appearing in the Company’s records from time to time

 

or
to such other address as the party to whom notice is to be given may have furnished to the other parties to this Warrant in writing
in accordance with the provisions of this Section 19(d). Any such notice or communication shall be deemed to have been received
(i) in the case of personal delivery, on the date of such delivery, (ii) in the case of internationally-recognized overnight courier,
on the next business day after the date when sent, and (iii) in the case of mailing, on the third business day following that
on which the piece of mail containing such communication is posted.

 

(e)
Limitation of Liability. No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant
or purchase Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability
of 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.

 

    	8

     

    

 

(f)
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 the defense in any action for specific performance that a remedy at law would be adequate.

 

(g)
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 of the Company and the successors and permitted assigns of Holder.
The provisions of this Warrant are intended to be for the benefit of all Holders from time to time of this Warrant and shall be
enforceable by any such Holder or holder of Warrant Shares.

 

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

 

(i)
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.

 

(j)
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.

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized.

 

Dated:
September ___, 2017

 

	 	Houston American Energy Corp.
	 	 	 
	 	By:	
	 	Name:	John
    P. Boylan
	 	Title:	President

 

    	9

     

    

 

NOTICE
OF EXERCISE

 

	To:	Houston
    American Energy Corp.

 

(1)
The undersigned hereby elects to purchase ________ Warrant Shares of Houston American Energy Corp. 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):

 

	 	[  ]	cashier’s
    check (enclosed herewith); or
	 	 	 
	 	[  ]	wire
    transfer.

 

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

 

_________________________________________________

 

The
Warrant Shares shall be delivered to the following:

 

	 	_________________________________________________	 
	 	 	 
	 	_________________________________________________	 
	 	 	 
	 	_________________________________________________	 

 

(4)
Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the
Securities Act of 1933, as amended.

 

	 	[PURCHASER]
	 	 	 
	 	By:	               
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Dated:	             

 

    	10

     

    

 

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, the foregoing Warrant and all rights evidenced thereby are hereby assigned to _____________________________________
whose address is ____________________________________________.

 

Dated:
______________, _______

 

 

	 	Holder’s
    Signature: 	 	 _______________________________
	 	 	 	 
	 	Holder’s
    Address: 	 	 _______________________________
	 	 	 	 
	 	 	 	 _______________________________

 

Signature
Guaranteed: ___________________________________________

 

NOTE:
The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration
or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those
acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

 

    	11

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