SEC Contract Filing

Filing Date: 2021-04-15

Document Content:
<DOCUMENT>
<TYPE>EX-10.40
<SEQUENCE>4
<FILENAME>f10k2020ex10-40_questpatent.htm
<DESCRIPTION>FORM OF OPTION AGREEMENT
<TEXT>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.40</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">INSTRUMENT OF GRANT OF NONQUALIFIED STOCK
OPTION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Instrument of Grant issued as of this 22<SUP>nd</SUP>
day of February, 2021, from Quest Patent Research Corporation, a Delaware corporation with offices at 411 Theodore Fremd Ave., Suite 206S,
Rye, NY 10580 (hereinafter referred to as &ldquo;Company&rdquo;), to ______________, an individual, with her residence at __________________________________________
(hereinafter referred to as the &ldquo;Option Holder&rdquo;).</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><U>W</U><FONT STYLE="text-decoration: none">&nbsp;</FONT><U>I</U><FONT STYLE="text-decoration: none">&nbsp;</FONT><U>T</U><FONT STYLE="text-decoration: none">&nbsp;
</FONT><U>N</U><FONT STYLE="text-decoration: none">&nbsp;</FONT><U>E</U><FONT STYLE="text-decoration: none">&nbsp;</FONT><U>S</U><FONT STYLE="text-decoration: none">&nbsp;</FONT><U>S</U><FONT STYLE="text-decoration: none">&nbsp;</FONT><U>E</U><FONT STYLE="text-decoration: none">&nbsp;</FONT><U>T</U><FONT STYLE="text-decoration: none">&nbsp;</FONT><U>H</U><FONT STYLE="text-decoration: none">:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREAS, the Company has, on the date of this Instrument
of Grant, granted Option Holder a nonqualified stock option (the &ldquo;Option&rdquo;) to purchase from the Company shares of the Company&rsquo;s
common stock, par value $0.00003 per share (&ldquo;Common Stock&rdquo;), pursuant to the Company&rsquo;s 2017 Equity Incentive Plan (the
&ldquo;Plan&rdquo;); and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREFORE, the Company does hereby grant to the
Option Holder the following Option:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">1. <U>Stock
Option</U>. Subject to the terms and conditions set forth in this Instrument of Grant, the Company hereby grants to the Option Holder
a non-qualified stock option (the &ldquo;Option&rdquo;) to purchase from the Company 30,000,000 shares (the &ldquo;Shares&rdquo;) of Common
Stock at an exercise price (the &ldquo;Exercise Price&rdquo;) set forth in Section 2 of this Instrument of Grant, being not less than
the fair value per share of Common Stock on the date of grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">2. <U>Exercise
Period and Exercise Price</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(a) Subject
to Section 2(b), the Option shall be exercisable will become exercisable cumulatively as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">(i) The Option shall become exercisable as to 10,000,000
Option Shares at an Exercise Price of $0.01 per share upon the commencement of trading of the Common Stock on the OTCQB;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">(ii) The Option shall become exercisable as to
10,000,000 Option Shares, at an Exercise Price of $0.03 per share, on first date on which the Company files with the SEC a Form 10-K or
Form 10-Q in which the Company reports stockholders&rsquo; equity of at least $5,000,000, and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">(iii) The Option shall become exercisable as to
10,000,000 Option Shares, at an Exercise Price of $0.05 per share, on the date the trading of the Common Stock commences on a market maintained
by the New York Stock Exchange or the Nasdaq Stock Market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(b) In the
event of the Option Holder&rsquo;s death or a termination of the Option Holder&rsquo;s consultancy relationship as a result of a disability,
as define