Document:

EX-10.2

 EXECUTION VERSION

THIS COMMON STOCK PURCHASE WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) NOR QUALIFIED UNDER
SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD OR OFFERED FOR SALE UNLESS A REGISTRATION
STATEMENT COVERING SUCH SHARES IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE LAW, OR SUCH
SALE IS PERMITTED UNDER RULE 144 OF THE ACT OR OTHERWISE EXEMPT FROM THE REGISTRATION AND
PROSPECTUS DELIVERY REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE LAW. THIS COMMON STOCK
PURCHASE WARRANT HAS BEEN ACQUIRED, AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF
WILL BE ACQUIRED, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO THE DISTRIBUTION THEREOF.

COMMON STOCK PURCHASE WARRANT

IMMUNE PHARMACEUTICALS INC.

Warrant Shares: 101,531 Issue Date: August 23, 2013

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received,
MidCap Financial, LLC, a Delaware limited liability company, 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 Issue Date and on or prior to the close of
business on August 23, 2018 (the “Termination Date”) but not thereafter, to subscribe for
and purchase from Immune Pharmaceuticals Inc., a Delaware corporation (the “Company”), up
to 101,531 shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common
Stock, par value $0.0001 per share, of the Company (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. Definitions. Capitalized terms used and not otherwise defined
herein shall have the meanings set forth in that certain Loan and Security Agreement (the “Loan
Agreement”), dated May 27, 2011, among the Company, MidCap Funding III, LLC, a Delaware limited
liability company, as the Agent thereunder, the Lenders and other parties thereto.

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 Issue Date and on or before the Termination
Date by delivery to the Company (or such other office or agency of the Company as it may
designate by notice in writing to the registered Holder at the address of the Holder
appearing on the books of the Company) of a duly executed facsimile or electronic (pdf) copy
of the Notice of Exercise Form annexed hereto (or by delivery of an original or copy of such
Notice of Exercise Form by any other method permitted for providing notices under the Loan
Agreement). Within three (3) Trading Days (as used herein, “Trading Day” means a day
on which the principal Trading Market is open for trading, and “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 AMEX, the Nasdaq Capital Market, the
Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, the
OTCQX or the OTC Bulletin Board (or any successors to any of the foregoing)) 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. Notwithstanding anything
herein to the contrary, the Holder shall not be required to physically surrender this
Warrant to the Company until the Holder has purchased all of the Warrant Shares available
hereunder and the Warrant has been exercised in full, in which case, the Holder shall
surrender this Warrant to the Company for cancellation within three (3) Trading Days of the
date the final Notice of Exercise is delivered to the Company. Partial exercises of this
Warrant resulting in purchases of a portion of the total number of Warrant Shares available
hereunder shall have the effect of reducing the outstanding number of Warrant Shares
purchasable hereunder by an amount equal to the applicable number of Warrant Shares
purchased. In the event of any dispute or discrepancy, the records of the Holder shall be
controlling and determinative in the absence of manifest error. The Company shall maintain
records showing the number of Warrant Shares purchased and the date of such purchases. 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 $3.50, subject to adjustment hereunder (the “Exercise Price”).

c) Cashless Exercise. At the option of the Holder, this Warrant may be
exercised, in whole or in part, at any time that this Warrant shall be exercisable and the
VWAP shall exceed the Exercise Price, by means of a “cashless exercise” in which the Holder
shall be entitled, without any obligation to pay the Exercise Price in cash, to receive a
certificate for the number of Warrant Shares equal to the quotient obtained by dividing
[(A-B) (X)] by (A), where:

	 	(A)	 	= the VWAP on the Trading Day immediately preceding the date
on which Holder elects to exercise this Warrant by means of a “cashless
exercise,” as set forth in the applicable Notice of Exercise;

	 	(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.

“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 the National Association of Securities Dealers,
Inc. OTC Bulletin Board (the “OTC Bulletin Board”) is not a Trading Market, the
volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for
trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in
the “Pink Sheets” published by Pink OTC Markets, 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 Holder
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, to the extent not previously exercised, be automatically exercised via cashless
exercise pursuant to this Section 2(c).

d) Mechanics of Exercise.

i. Delivery of Certificates Upon Exercise. Certificates for
            shares purchased hereunder shall, subject to Section 4(d) below, be
transmitted by the Transfer Agent to the Holder by crediting the account of
the Holder’s prime broker 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 and
resale of the Warrant Shares by Holder (or the Warrant Shares may be resold
pursuant to SEC Rule 144) or (B) this Warrant is being exercised via
cashless exercise, and otherwise by physical delivery to the address
specified by the Holder in the Notice of Exercise by the date that is three
(3) Trading Days after the latest of (A) the delivery to the Company of the
Notice of Exercise and (B) payment of the aggregate Exercise Price as set
forth above (including by cashless exercise) (such date, the “Warrant
Share Delivery Date”). The Warrant Shares shall be deemed to have been
issued, and Holder or any other person so designated to be named therein
shall be deemed to have become a holder of record of such shares for all
purposes, as of the date the Warrant has been exercised, with payment to the
Company of the Exercise Price (or by cashless exercise) and all taxes
required to be paid by the Holder, if any, pursuant to Section 2(d)(vi)
prior to the issuance of such shares, having been paid. If the Company fails
for any reason to deliver to the Holder certificates evidencing 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), $2 per Trading Day (increasing to $4 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 certificates
are delivered or Holder rescinds such exercise.

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

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

iv. Compensation for Buy-In on Failure to Timely Deliver
Certificates Upon Exercise; Remedies Cumulative. In addition to any
other rights available to the Holder, if the Company fails to cause the
Transfer Agent to transmit to the Holder a certificate or the certificates
representing 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 (A) pay in cash to the Holder the amount, if any, by
which (x) the Holder’s total purchase price (including brokerage
commissions, if any) for the shares of Common Stock so purchased exceeds (y)
the amount obtained by multiplying (1) the number of Warrant Shares that the
Company was required to deliver to the Holder in connection with the
exercise at issue times (2) the price at which the sell order giving rise to
such purchase obligation was executed, and (B) at the option of the Holder,
either reinstate the portion of the Warrant and equivalent number of Warrant
Shares for which such exercise was not honored (in which case such exercise
shall be deemed rescinded) or deliver to the Holder the number of shares of
Common Stock that would have been issued had the Company timely complied
with its exercise and delivery obligations hereunder. The Holder shall
provide the Company written notice indicating the amounts payable to the
Holder in respect of the Buy-In and, upon request of the Company, evidence
of the amount payable by the Company to the Holder hereunder. No provision
of this Warrant, including without limitation any right of the Holder to any
payment or liquidated damages, rescission or any other remedy provided for
in this Warrant, shall limit a Holder’s right to pursue any other remedies
available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with
respect to the Company’s failure to timely deliver certificates representing
            shares of Common Stock upon exercise of the Warrant as required pursuant to
the terms hereof.

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

vi. Charges, Taxes and Expenses. Issuance of 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.

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.

Section 3. Certain Adjustments.

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

b) Subsequent Rights Offerings. In addition to any adjustments pursuant to
Section 3(a) above, if at any time the Company grants, issues or sells any Common Stock
Equivalents or rights to purchase stock, warrants, securities or other property pro rata to
the record holders of any class of shares of Common Stock (the “Purchase Rights”),
then the Holder will be entitled to acquire, upon the terms applicable to such Purchase
Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had
held the number of shares of Common Stock acquirable upon complete exercise of this Warrant
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.

c) Pro Rata Distributions. If the Company, at any time while this Warrant is
outstanding, shall distribute to all holders of Common Stock (and not to the Holder)
evidences of its indebtedness or assets (including cash and cash dividends) or rights or
warrants to subscribe for or purchase any security, then in each such case the Exercise
Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the
record date fixed for determination of stockholders entitled to receive such distribution by
a fraction of which the denominator shall be the VWAP determined as of the record date
mentioned above, and of which the numerator shall be such VWAP on such record date less the
then per share fair market value at such record date of the portion of such assets or
evidence of indebtedness so distributed applicable to one outstanding share of the Common
Stock as determined by the Board of Directors in good faith. In either case the adjustments
shall be described in a statement provided to the Holder of the portion of assets or
evidences of indebtedness so distributed or such subscription rights applicable to one share
of Common Stock. Such adjustment shall be made whenever any such distribution is made and
shall become effective immediately after the record date mentioned above.

d) Fundamental Transaction. If, at any time while this Warrant is outstanding,
(i) the Company, directly or indirectly, in one or more related transactions effects any
merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance
or other disposition of all or substantially all of its assets in one or a series of related
transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer
(whether by the Company or another Person) is completed pursuant to which holders of Common
Stock are permitted to sell, tender or exchange their shares for other securities, cash or
property and has been accepted by the holders of 50% or more of the outstanding Common
Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects
any reclassification, reorganization or recapitalization of the Common Stock or any
compulsory share exchange pursuant to which the Common Stock is effectively converted into
or exchanged for other securities, cash or property, (v) the Company, directly or
indirectly, in one or more related transactions consummates a stock or share purchase
agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons
whereby such other Person or group acquires more than 50% of the outstanding shares of
Common Stock (not including any shares of Common Stock held by the other Person or other
Persons making or party to, or associated or affiliated with the other Persons making or
party to, such stock or share purchase agreement or other business combination) or (vi) any
“person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the
Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power
represented by issued and outstanding Common Shares (each a “Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have
the right to receive, for each Warrant Share that would have been issuable upon such
exercise immediately prior to the occurrence of such Fundamental Transaction, at the option
of the Holder, the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional
consideration (the “Alternate Consideration”) receivable as a result of such
Fundamental Transaction by a holder (assuming such holder sold, exchanged or otherwise
transferred such shares in connection with such Fundamental Transaction) of the number of
            shares of Common Stock for which this Warrant is exercisable immediately prior to such
Fundamental Transaction. For purposes of any such exercise, the Exercise Price shall be
appropriately apportioned to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental
Transaction, and the Company shall apportion the Exercise Price among the Alternate
Consideration in a reasonable manner reflecting the relative value of any different
components of the Alternate Consideration. If holders of Common Stock are given any choice
as to the securities, cash or property to be received in a Fundamental Transaction, then the
Holder shall be given the same choice as to the Alternate Consideration it receives upon any
exercise of this Warrant following such Fundamental Transaction. Notwithstanding anything
to the contrary, in the event of a Fundamental Transaction that is (1) an all cash
transaction, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act,
or (3) a Fundamental Transaction involving a person or entity not traded on a national
securities exchange, including, but not limited to, the Nasdaq Global Select Market, the
Nasdaq Global Market, or the Nasdaq Capital Market, 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 and (D) a remaining option time equal to the time
between the date of the public announcement of the applicable Fundamental Transaction and
the Termination Date. The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor or acquirer (the “Successor
Entity”) to assume in writing all of the obligations of the Company under this Warrant
in accordance with the provisions of this Section 3(c) pursuant to written agreements in
form and substance reasonably satisfactory to the Holder and approved by the Holder (without
unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the
Holder, deliver to the Holder in exchange for this Warrant a security of the Successor
Entity evidenced by a written instrument substantially similar in form and substance to this
Warrant which is exercisable for a corresponding number of shares of capital stock of such
Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable
and receivable upon exercise of this Warrant (without regard to any limitations on the
exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price
which applies the exercise price hereunder to such shares of capital stock (but taking into
account the relative value of the shares of Common Stock pursuant to such Fundamental
Transaction and the value of such shares of capital stock, such number of shares of capital
stock and such exercise price being for the purpose of protecting the economic value of this
Warrant immediately prior to the consummation of such Fundamental Transaction), and which is
reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such
Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so
that from and after the date of such Fundamental Transaction, the provisions of this Warrant
referring to the “Company” shall refer instead to the Successor Entity), and may exercise
every right and power of the Company and shall assume all of the obligations of the Company
under this Warrant with the same effect as if such Successor Entity had been named as the
Company herein.

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

f) Notice to Holder.

i. Adjustment to Exercise Price. Whenever the Exercise Price is
adjusted pursuant to any provision of this Section 3, the Company shall
promptly 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 (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 of the Company, at least 20 calendar days prior to the applicable
record or effective date hereinafter specified, a notice stating (x) the
date on which a record is to be taken for the purpose of such dividend,
distribution, redemption, rights or warrants, or if a record is not to be
taken, the date as of which the holders of the Common Stock of record to be
entitled to such dividend, distributions, redemption, rights or warrants are
to be determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected to
become effective or close, and the date as of which it is expected that
holders of the Common Stock of record shall be entitled to exchange their
            shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale,
transfer or share exchange; provided that the failure to 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
Commission pursuant to a Current Report on Form 8-K. The Holder shall
remain entitled to exercise this Warrant during the period commencing on the
date of such notice to the effective date of the event triggering such
notice, except as may otherwise be expressly set forth herein.

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

b) New Warrants. This Warrant may be divided or combined with other Warrants
upon presentation hereof at the aforesaid office of the Company, together with a written
notice specifying the names and denominations in which new Warrants are to be issued, signed
by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any
transfer which may be involved in such division or combination, the Company shall execute
and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided
or combined in accordance with such notice. All Warrants issued on transfers or exchanges
shall be dated the initial 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 register this Warrant, upon records to
be maintained by the Company for that purpose (the “Warrant Register”), in the name
of the record Holder hereof from time to time. The Company may deem and treat the
registered Holder of this Warrant as the absolute owner hereof for the purpose of any
exercise hereof or any distribution to the Holder, and for all other purposes, absent actual
notice to the contrary.

d) Exchange Act Reports; Legend. 

(i) With a view to making available to the Holder the benefits of Securities and
Exchange Commission (“SEC”) Rule 144 and any other rule or regulation of the SEC
that may at any time permit the Holder to sell securities of the Company to the public
without registration or pursuant to a registration on Form S-3, the Company shall, so long
as it is subject to the reporting requirements of the Securities Act of 1933 (as amended,
and the rules and regulations promulgated thereunder, the “Securities Act”) and the
Securities Exchange Act of 1934 (as amended, and the rules and regulations promulgated
thereunder, the “Exchange Act”), (A) make and keep available adequate current public
information, as those terms are understood and defined in SEC Rule 144, at all times, (B)
use commercially reasonable efforts to file with the SEC in a timely manner all reports and
other documents required of the Company under the Securities Act and the Exchange Act; and
(C) furnish to the Holder, so long as the Holder owns the Warrant or Warrant Shares,
forthwith upon request (1) a written statement by the Company that it has complied with the
reporting requirements of SEC Rule 144, the Securities Act and the Exchange Act, or that it
qualifies as a registrant whose securities may be resold pursuant to Form S-3, and (2) such
other information as may be reasonably requested in availing the Holder of any rule or
regulation of the SEC that permits the sale of any securities without registration or
pursuant to Form S-3.

(ii) Neither this Warrant nor any certificate or instrument evidencing this Warrant or
the Warrant Shares shall bear (and the Company hereby agrees to remove or not to affix, as
applicable and provided herein) any restrictive or other legend, notice or provision
(including without limitation the legend included on the first page of this Warrant as of
the Issue Date or any similar legend) restricting the sale or transfer of this Warrant or
the Warrant Shares if (A) a transfer of this Warrant or the Warrant Shares is made or
proposed to be made pursuant to SEC Rule 144, (B) a transfer of this Warrant or the Warrant
Shares is made or proposed to be made for no consideration to an Affiliate of the Holder or
(C) such a legend, notice or provision is not required in order to establish compliance with
any provisions of the Securities Act. Within three (3) Trading Days of (X)any written
request by the Holder indicating its intention to make a transfer of this Warrant or all or
a portion of the Warrant Shares pursuant to SEC Rule 144 or (Y) satisfaction of the
registration and prospectus delivery requirements of the Act, the Company shall remove any
such legend, notice or provision and issue a new Warrant and/or Warrant Shares without any
such legend, notice or provision restricting the sale or transfer of this Warrant or the
Warrant Shares, as applicable. Notwithstanding the forgoing or anything to contrary
contained in this Warrant, no certificate or certificates for any shares purchased hereunder
shall bear any restrictive or other legend, notice or provision restricting the sale or
transfer of Warrant Shares if, as of the date of any exercise of this Warrant, the Warrant
Shares may be transferred pursuant to SEC Rule 144 and, if such sale or transfer cannot, as
of such exercise date, be made, the Company shall cause any such legend, notice or provision
to be removed from all or any such certificates within three (3) Trading Days of the first
date on which such a transfer pursuant to SEC Rule 144 can be made. For all purposes of
Section 2(d), the Company shall not be deemed to have delivered to the Holder Warrant Shares
unless and until the Company shall have fully complied with all of the terms and conditions
of this Section 4(d).

e) Warrant Put Right.

(i) Put Right. Notwithstanding any other provision of this Warrant, Holder may
elect by giving the Company written notice thereof (“Put Notice”), from time to time
and at any time that is on or before the Expiration Date and that is upon or after the
earlier of (a) twenty four (24) months from the Issue Date, (b) the repayment in full of or
an event of default under the Loan Agreement or any note, agreement or obligation entered
into in connection therewith, and (c) a Fundamental Transaction (any such event, transaction
or date, a “Put Event”), to require the Company to purchase, and to sell to the
Company, this Warrant and/or the Warrant Shares (collectively, the “Warrant
Securities”) or any portion thereof (“Put Right”) at a purchase price equal to
the Put Redemption Price, and the Company shall be required to purchase such Warrant
Securities or portion thereof in accordance with the terms of this Section 4(e).

(ii) Put Redemption Price. The “Put Redemption Price” of the Warrant
Securities or any portion thereof to be redeemed and purchased by the Company hereunder
shall be calculated as of the date the Put Notice is given by Holder and shall be equal to
(a) in the case of this Warrant, the product of (i) the difference of (A) the VWAP minus (B)
the Exercise Price then in effect multiplied by (ii) that portion of this Warrant (expressed
in Warrant Shares) to be redeemed and (b) in the case of any Warrant Shares, the product of
(i) the VWAP multiplied by (ii) the number of Warrant Shares to be redeemed.

(iii) Closing. On a date specified by Holder in the Put Notice which is not
less than twenty (20) days after the date the Put Notice is given by Holder, Holder shall
surrender the Warrant Securities to be redeemed to the Company at its principal office or
such other place as may be set forth in the Put Notice on tender by the Company of the Put
Redemption Price in cash or other immediately available funds. If this Warrant is redeemed
only in part, the Company shall issue a new Warrant for the portion of this Warrant that has
not been redeemed.

(iv) No Restrictions. The Company covenants and agrees that it shall not,
without the prior written consent of Holder, enter into or agree to become subject to any
term, condition, provision or agreement that would restrict in any way the performance of
the Company’s obligations under this Section 4(e). Upon receipt of a Put Notice, if the
Company believes that at the time of the closing of the purchase pursuant to the Put Right,
it does not have legally available funds sufficient to pay the Put Redemption Price, the
Company shall promptly use all reasonable efforts to cause such legally available funds to
become available in any manner permitted or contemplated by applicable law. If the Company
does not have legally available funds sufficient to pay the Put Redemption Price, Holder may
elect pursuant to written notice given by Holder to the Company: (a) that the Put Right
pursuant to the Put Notice shall remain exercised and the closing of the purchase pursuant
to the Put Right shall be deferred until the Company has legally available funds sufficient
to pay the Put Redemption Price or a portion thereof (and provided that, as and to the
extent that such funds become available, the Company shall promptly make partial payments of
the Put Redemption Price); (b) that the exercise of the Put Right shall be rescinded in
whole or in part; or (c) that, to the extent the Company does not have legally available
funds sufficient to pay the Put Redemption Price, the Put Redemption Price shall be paid by
delivery to Holder of a promissory note of the Company dated as of the closing date, having
a term of one (1) year from the date thereof, providing for a single payment of principal
and interest at the end of its term, bearing interest rate per annum equal to the maximum
rate allowed by the Small Business Administration.

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), subject to any express provision of
this Warrant to the contrary.

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

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

d) Authorized Shares.

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

Except and to the extent 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 Loan Agreement.

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

g) Nonwaiver and Expenses. No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of such right
or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other
provision of this Warrant or the Loan Agreement, 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 Loan 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 or holder of
Warrant Shares.

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

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

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

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

(Signature Page Follows)

1

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

Dated: August   , 2013

	 
	IMMUNE PHARMACEUTICALS INC.

	By:___________________________________________
Name: _____________________________________
Title:_______________________________________

NOTICE OF EXERCISE

TO: IMMUNE PHARMACEUTICALS 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

[ ] 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 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 by physical delivery of a certificate to:

      

      

      

[SIGNATURE OF HOLDER]

Name of Holder:      

Signature of Authorized Signatory of Holder:      

Name of Authorized Signatory:      

Title of Authorized Signatory:      

Date:       

2

ASSIGNMENT FORM

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

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

       whose address is

      .

      

Dated:       ,       

	 	 	 	 	 
	Holder’s Signature:
	 	 	—	 
	Holder’s Address:
	 	 	—	 

      

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.

3ASTI 10.5_2013_S-3/A Amend No. 2

Exhibit 10.5

[Note - the original Agreement is written in the Chinese language.  In accordance with Rule 403(c) under the Securities Act of 1933, the registrant is filing an English summary of the Agreement as set forth below.]

Summary of

Suqian Economic and Technological Development Zone
Industrial Project Investment Agreement

Dated  July 2, 2013

The parties to the Agreement are Suqian Municipal Economic Development Company (“SMEDC”) and Ascent Solar Technologies, Inc. (“Ascent”).
The Agreement establishes a framework for the parties to jointly  establish a company with the proposed name of Ascent Solar (Jiangsu) Technology Co., Ltd.in Suqian, Jiangsu Province, People's Republic of China (“JV”).  The JV would be formed to own and operate manufacturing facilities in Suqian that will manufacture solar photovoltaic modules (and related products) based on Ascent's technology.
		
	A.
	The JV project would involve an aggregate investment total of $500 million over three phases:

		
	a.
	Phase I investment of $160 million.

		
	i.
	             SMEDC shall invest Renminbi (“RMB”)  200 million in cash.

		
	ii.
	             ASTI shall invest in kind in the form of manufacturing equipment valued at RMB 600 million and technology & intellectual property valued at RMB 200 million.

		
	iii.
	The initial registered capital of the JV shall be of $40 million.

		
	b.
	Phase II investment of $160 million.

		
	c.
	Phase III investment of $180 million.

		
	B.
	Target annual revenue of RMB 6 billion and tax revenue of RMB 500 million upon completion of all three phases within 6 years.

		
	C.
	Initial project location at the Eastern district of Taiwan Entrepreneurs and Innovative Technological Industrial Park of Suqian Economic and Technological Development Zone with expansion into Suqian Photon Electrical Industrial Park.

		
	D.
	SMEDC Commitments:

		
	a.
	A photovoltaic grade factory of 25,000 square meters, rent free for 5 years. 

		
	b.
	Additional 100,000 square meter factory for later development, as needed, and

provide Ascent the right to purchase the factory and land at SMEDC cost.
		
	c.
	Initial contribution to registered capital of approximately $4.9 million by SMEDC and $1.6 million by Ascent.

		
	d.
	Rent free accommodations for Ascent's senior management team and scientists for three years. 

		
	e.
	Provide Ascent an option to buy an additional 5 acres, at SMEDC cost, of commercially zoned land subsequent to qualification of the first production line.

		
	f.
	Assistance to Ascent to obtain all licensing and for employee recruitment.

		
	g.
	Preferential tax rates, including exemption from corporate income tax for the first five profitable years and at a 50% rate reduction the fifth to tenth years of profitability. 

		
	h.
	Exemption from valued added tax, through refunds of taxes paid, during years one and two and at a 50% rate during years three through five.

		
	i.
	Exemption from property taxes, through refunds of taxes paid, for first five years of operations.

		
	j.
	Exemption from administrative fees at the municipal government level during business startup and operational service charges at the lowest rates.

		
	k.
	Management bonus opportunity of 30% of post-tax operating profits for the JV managers and employees.

		
	l.
	Provide Ascent the option to purchase SMEDC JV shares at a price which provides SMEDC a modest annual return.

		
	E.
	Ascent Commitments:

		
	a.
	The project investment amounts shall not fall below certain RMB per acre amounts.

		
	b.
	Ascent's equipment and technology & intellectual properties investment is subject to evaluation and verification by qualified authorities.

		
	c.
	Ascent shall move equipment to the project location within 120 days.

		
	d.
	ASTI shall not invest in any alternative manufacturing location prior to completion of all three project phases.

		
	F.
	JV Management Structure

		
	a.
	The board composition shall be three members, in which SMEDC will appoint one and Ascent will appoint two members.

		
	b.
	The General Manager of the JV shall be appointed by Ascent.

		
	c.
	SMEDC shall appoint one internal auditor/inspector.

		
	d.
	The JV shall hold Board meetings twice a year, as called by the Chairman.

		
	G.
	Liability for Breach of Contract

		
	a.
	Losses shall be assumed by breaching party.

		
	b.
	SMEDC reserves the right to revoke the land-use right if Ascent does not timely pay contractually agreed upon fees.

		
	c.
	Upon project commencement, project delays caused by Ascent may allow SMEDC the right to collect 20% of certain fees. Delays caused by Ascent exceeding six months may allow SMEDC the right to recover certain fees and require Ascent to assume any losses.

		
	H.
	Ascent must obtain written consent from SMEDC to transfer the rights and obligations of the contract to a third party.

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