SEC Contract Filing

Filing Date: 2015-05-15

Document Content:
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>v408175_ex10-4.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Exhibit 10.4</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2015 EQUITY INCENTIVE PLAN</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">THIS AGREEMENT, made
effective as of this <U> ____</U> day of ____________, 20__, by and between Nephros, Inc., a Delaware corporation (the &ldquo;Company&rdquo;),
and _________________ (&ldquo;Participant&rdquo;).</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>W I T N E S S E T H:</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, Participant
on the date hereof is an Employee, Director of, or Consultant to the Company or one of its Subsidiaries; and</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Company
wishes to grant a nonqualified stock option to Participant to purchase shares of the Company&rsquo;s Common Stock pursuant to the
Company&rsquo;s 2015 Equity Incentive Plan (the &ldquo;Plan&rdquo;); and</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Administrator
of the Plan has authorized the grant of a nonqualified stock option to Participant and has determined that, as of the effective
date of this Agreement, the fair market value of the Company&rsquo;s Common Stock is $<U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> per share;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, in
consideration of the premises and of the mutual covenants herein contained, the parties hereto agree as follows:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.&#9;<B><U>Grant of Option</U></B>.
The Company hereby grants to Participant on the date set forth above (the &ldquo;Date of Grant&rdquo;), the right and option (the
&ldquo;Option&rdquo;) to purchase all or portions of an aggregate of <U> </U> (<U>&nbsp;&nbsp;&nbsp;</U>) shares of Common Stock at a per share
price of $<U> </U> on the terms and conditions set forth herein, and subject to adjustment pursuant to Section 16 of the Plan.
This Option is a nonqualified stock option and will not be treated as an incentive stock option, as defined under Section 422,
or any successor provision, of the Internal Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;), and the regulations thereunder.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.&#9;<B><U>Duration and Exercisability</U></B>.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.75in">a.&#9;<B><U>General</U></B>. The term
during which this Option may be exercised shall terminate at the close of business on <U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 20__,<B> </B>except as otherwise
provided in Paragraphs 2(b) through 2(e) below. This Option shall become exercisable according to the following schedule:</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Once the Option becomes exercisable to
the extent of one hundred percent (100%) of the aggregate number of shares specified in Paragraph 1, Participant may continue to
exercise this Option under the terms and conditions of this Agreement until the termination of the Option as provided herein. If,
upon an exercise of this Option, Participant does not purchase the full number of shares which Participant is then entitled to
purchase, Participant may purchase upon any subsequent exercise prior to this Option&rsquo;s termination such previously unpurchased
shares in addition to t