Document:

THE
SECURITIES REPRESENTED HEREBY AND ISSUABLE UPON CONVERSION HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) OR QUALIFIED UNDER
APPLICABLE STATE SECURITIES LAWS (THE “LAWS”) AND MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE ACT OR QUALIFICATION UNDER
THE LAWS UNLESS SUCH REGISTRATION AND QUALIFICATION IS NOT THEN REQUIRED UNDER
THE CIRCUMSTANCES OF SUCH OFFER, SALE, TRANSFER, PLEDGE OR
HYPOTHECATION.

     

    THESE
SECURITIES ARE SUBJECT TO AND TRANSFERABLE ONLY UPON COMPLIANCE WITH THE TERMS
AND CONDITIONS SET FORTH HEREIN.

    

    CONVERTIBLE PROMISSORY
NOTE

    

    
      
        	
                $500,000.00

              	
                February
      12, 2008

              

      

    

    

    This
Convertible Promissory Note (this “Note”) is made and delivered
pursuant to the terms of that certain Agreement and Plan of Reorganization dated
the date hereof and entered into by and among Cellegy Pharmaceuticals, Inc., a
Delaware corporation (“Cellegy”), Adamis
Pharmaceuticals Corporation, a Delaware corporation (“Adamis”), and Cellegy
Holdings, Inc., a Delaware corporation and wholly-owned subsidiary of Cellegy
(the “Merger
Agreement”).

    

    1.           Obligation.  For
value received, Adamis promises to pay to Cellegy, at such address as Cellegy
may from time to time designate, the sum of Five Hundred Thousand Dollars
($500,000), together with interest on the outstanding principal amount for the
period commencing on the date of this Note until such principal is paid in full
at a rate per annum equal to ten percent (10.0%) (the “Interest Rate”), calculated
on the basis of a 365-day year and actual days elapsed (including the first day,
but excluding the last day) occurring in the period for which such interest is
payable.    All interest shall accrue hereunder and be
payable on the Maturity Date (as defined below).

    

    2.           Payment
Dates.  Unless converted prior thereto, Adamis shall make
payment in full of all unpaid principal, interest and other amounts owed under
this Note on the Maturity Date.  The “Maturity Date” means the first
to occur of (i) the date of the termination of the Merger Agreement (a) by
Adamis for any reason other than Cellegy’s failure to satisfy its closing
conditions or (b) by Cellegy due to Adamis’ failure to satisfy its closing
conditions, or (ii)  the later of (a) the sixteenth month anniversary
of the date of this Note or (b) the date that is two business days following the
first date on which all of the notes issued to Imperium Master Fund, Ltd. (“Imperium”) pursuant to the
Securities Purchase and Loan Agreement dated December 21, 2007 by and between
Adamis and Imperium (collectively, the “Imperium Notes”) have been
repaid in full, including any default interest thereon, and are no longer
outstanding. Each payment payable by Adamis hereunder shall be made without
set-off or counterclaim and shall be free and clear of any restrictions or
conditions of any nature.

    
      
         

      

      
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    3.           Prepayment.  Adamis
shall make all payments that may be due hereunder in lawful money of the United
States of America, and may prepay any and all principal and interest at any time
without penalty, upon prior notice to Cellegy.

    

    4.           Default.  The
occurrence of any of the following shall constitute an “Event of Default” under this
Note:

    

    a.           delivery
by Cellegy of a notice of default to Adamis following Adamis’ failure to pay any
amount when due under this Note, if such default is not cured within twenty (20)
business days after delivery of such notice;

    

    b.           a
material default in the due performance or observance of any of Adamis’ material
obligations under this Note, or a material breach of any material representation
or warranty of Adamis under this Note, in each case which is not cured within
twenty (20) business days after delivery of notice from Cellegy;

    

    c.           Adamis
shall (any of the foregoing referred to as an “Insolvency
Event”):

    

    
      	
               
      

            	
              (i)

            	
              apply
      for or consent to the appointment of a trustee, receiver, sequestrator or
      other custodian for Adamis or for any substantial part of its property, or
      make a general assignment for the benefit of its
  creditors;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              in
      the absence of such application or consent, acquiesce in, or permit or
      suffer to exist, the involuntary appointment of a trustee, receiver,
      sequestrator or other custodian for Adamis or for a substantial part of
      its property, and such trustee, receiver, sequestrator or other custodian
      shall not be discharged within forty-five (45)
  days;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              permit
      the involuntary commencement of, or voluntarily commence, any insolvency
      proceedings under any bankruptcy or insolvency laws of the United States
      or any State thereof, or other similar laws, rules or regulations of such
      jurisdictions, covering the protection of creditors’ rights or the relief
      of debtors. (“Insolvency
      Laws”), or permit the involuntary commencement of, or voluntarily
      commence, any dissolution, winding up or liquidation proceeding, in each
      case, by or against Adamis, provided that, if not commenced by Adamis,
      such proceeding shall be consented to or acquiesced in by Adamis, or shall
      result in the entry of an order for relief or shall remain undismissed for
      more than forty-five (45) days; or

            

    

     

    
      	
               
      

            	
              (iv)

            	
              take
      any corporate action authorizing any of the
  foregoing.

            

    

     

    Upon the
occurrence of an Event of Default, (1) if and only if the Imperium Notes have
been repaid in full, including any default interest, and are no longer
outstanding, then, with notice to Adamis, Cellegy may declare all sums hereunder
to be immediately due and payable, whereupon such principal and other
obligations shall become and be immediately due and payable, in each case,
without notice, demand, presentment or other action of any kind, all of which
are hereby expressly and irrevocably waived by Adamis, or (2) if the Imperium
Notes remain outstanding, Cellegy may convert the Obligations as contemplated by
Section 7.2 hereof.

    
      
         

      

      
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    5.           Interest on Overdue Amounts;
Limitation on Interest.  Adamis agrees that upon the occurrence
of an Event of Default, in lieu of the interest payable under Section 1 above,
the outstanding principal balance shall immediately begin to accrue interest at
a rate equal to the
Interest Rate plus five
percent (5%) per annum, commencing on the date of the Event of Default and
continuing until paid in full.  In no event, however, shall the
default interest rate exceed the maximum amount permitted by
law.  Nothing in this Note or any document securing payment hereof is
to be construed as requiring payment of interest at a rate in excess of the
maximum rate permitted to be charged under the laws of the State of
California.  Neither Adamis nor any other party who may hereafter
become liable or responsible for the payment of this Note shall be required to
pay interest on this Note at a rate which exceeds the maximum rate permitted by
California law.  If by the terms of this Note Adamis is at any time
required or obligated to pay interest on the principal amount of this Note at a
rate in excess of such maximum rate, the rate of interest under this Note shall
be deemed to be immediately reduced to such maximum rate and the interest
payable shall be computed at a maximum rate and all prior interest payments in
excess of such maximum rate shall be applied and shall be deemed to have been
payments in reduction of the principal balance of this Note.

    

    6.           Representations and
Warranties of Adamis.  Adamis represents and warrants to
Cellegy as follows:  (a) Adamis has received from Cellegy on the date
hereof the cash proceeds of the Loan in the original principal amount stated
above, by wire transfer of such amount to an account designated in writing by
Adamis; and (b) this Note constitutes the legal, valid and binding obligation of
Adamis, enforceable against Adamis in accordance with its terms, except to the
extent that the enforceability thereof may be limited by or subject to
bankruptcy or Insolvency Laws or moratorium or other similar laws now or
hereafter in effect affecting creditors’ right generally.

    

    7.           Conversion.

     

    7.1           Mandatory
Conversion.  In the event the Effective Time of the Merger (as
defined in the Merger Agreement) precedes the Maturity Date, immediately prior
to the Effective Time all principal, interest and other amounts due Cellegy
hereunder (collectively, the “Obligations”) shall, without
any further action by Cellegy, automatically convert into a number of fully-paid
and nonassessable shares of Adamis common stock (the “Conversion Shares”) equal to
the amount of the Obligations divided by $0.50 (such price referred to as the
“Conversion
Price”).

     

    (a)           Optional Conversion
Following Event of Default.  Following the occurrence of an
Event of Default, if Adamis does not timely pay the Obligations, then at any
time thereafter Cellegy may, by notice to Adamis (a “Conversion Notice”), convert
the Obligations into the number of Conversion Shares equal to the total amount
of the Obligations, divided by the Conversion Price.

    
      
         

      

      
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    7.2           Conversion
Procedure.  In the event of an optional conversion pursuant to
Section 7.2 hereof, within five (5) business days of the delivery by Cellegy of
a Conversion Notice, Adamis shall deliver to Cellegy a notice specifying the
Conversion Price, describing in reasonable detail the manner in which the
Conversion Price was calculated, and shall provide such additional information
as Cellegy may reasonably request concerning the facts relating to the
determination of the Conversion Price.  Upon the conversion of this
Note pursuant to Section 7.2 hereof and return by Cellegy of this Note to Adamis
for cancellation, Adamis at its expense will issue and deliver to Cellegy a
certificate (bearing such legends as are required by applicable state and
federal securities laws in the opinion of counsel to Adamis) for the number of
full shares of Common Stock issuable upon such conversion.  Upon
conversion, this Note shall be canceled and discharged in full and no further
amounts shall be due hereunder.

     

    7.3           No Fractional
Shares.  No fractional Conversion Shares shall be issued upon
conversion of this Note.  In lieu of Adamis issuing any fractional
shares to Cellegy upon the conversion of this Note, Adamis shall pay to Cellegy
the amount of outstanding principal and interest hereunder that is not so
converted.

     

    7.4           Adjustments to
Shares.  If the capital stock issuable upon conversion of this
Note shall be changed into the same or a different number of shares of any other
class or classes of stock, whether by stock split, stock dividend, capital
reorganization, reclassification, merger or other corporate combination, or
other similar transaction, the conversion price of this Note then in effect
shall, concurrently with the effectiveness of such reorganization or
reclassification, be proportionately adjusted so that this Note shall be
convertible into, in lieu of the number of shares of capital stock which the
holders would otherwise have been entitled to receive, a number of shares of
such other class or classes of stock equivalent to the number of shares of
capital stock that would have been received by Cellegy immediately following
such change if Cellegy had converted this Note immediately prior to such
change.

     

    8.          Acknowledgment,
Representations and Warranties of Cellegy.  Cellegy understands
and acknowledges that neither this Note nor the Conversion Shares have been
registered under the Securities Act of 1933, as amended (the “Act”), or any state securities
laws.  Cellegy hereby represents and warrants to Adamis
that:

     

    8.1           This
Note and, if applicable, the Conversion Shares (collectively, the “Securities”) have been
acquired by Cellegy for investment and not with a view to the sale or other
distribution thereof within the meaning of the Act, and Cellegy has no present
intention of selling or otherwise disposing of all or any portion of the
Securities.

     

    8.2           Cellegy
has acquired the Securities for Cellegy’s own account only, and no other person
or entity has any beneficial ownership in the Securities.

     

    8.3           Cellegy
is capable of evaluating the merits and risks of any investment in the
Securities, is financially capable of bearing a total loss of this investment
and has either (i) a preexisting personal or business relationship with
Adamis or its principals or (ii) by reason of Cellegy’s business or
financial experience, has the capacity to protect its own interest in connection
with this investment.

    
      
         

      

      
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    8.4           Cellegy
has had access to all information regarding Adamis, its present and prospective
business, assets, liabilities and financial condition that Cellegy considers
important to making the decision to acquire the Securities and has had the
opportunity to ask questions of and receive answers from Adamis’ representatives
concerning an investment in the Securities and to obtain any and all documents
requested in order to supplement or verify any of the information
supplied.

     

    8.5           Cellegy
understands that the Securities are deemed restricted securities under the Act
and may not be resold unless they are registered under the Act and qualified
under any applicable state securities law, or unless sale, transfer or other
Disposition of the Securities is exempt from such registration and qualification
requirements, and Cellegy will not make any sale or other disposition of any of
the Securities unless such sale or disposition is so registered or
exempt.  Cellegy is familiar with Rule 144 promulgated under the Act
and understands that Rule 144 may prohibit or restrict subsequent resale,
transfer or disposition of the Conversion Shares.  Cellegy understands
that no public market now exists for any of the securities issued by Adamis and
that Adamis has made no assurances that a public market will ever exist for any
of Adamis’ securities.

     

    9.           Subordination.  The
indebtedness evidenced by this Note is subordinated in right of payment to the
prior payment in full of any indebtedness of Adamis outstanding as of the date
hereof and Senior Indebtedness.  “Senior Indebtedness” shall
mean, unless expressly subordinated to or made on a parity with the amounts due
under this Note, all amounts due in connection with (a) indebtedness of Adamis
to banks or other lending institutions regularly engaged in the business of
lending money, and (b) any such indebtedness or any debentures, notes or other
evidence of indebtedness issued in exchange for such Senior Indebtedness, or any
indebtedness arising from the satisfaction of such Senior Indebtedness by a
guarantor.

     

    9.1           Insolvency
Proceedings.  If there shall occur any receivership,
insolvency, assignment for the benefit of creditors, bankruptcy, reorganization,
or arrangements with creditors (whether or not pursuant to bankruptcy or other
insolvency laws), sale of all or substantially all of the assets, dissolution,
liquidation, or any other marshaling of the assets and liabilities of Adamis,
(a) no amount shall be paid by Adamis in respect of the principal of, interest
on or other amounts due with respect to this Note at the time outstanding,
unless and until the principal of and interest on the Senior Indebtedness then
outstanding shall be paid in full, and (b) no claim or proof of claim shall be
filed by or on behalf of Cellegy which shall assert any right to receive any
payments in respect of the principal of and interest on this Note except subject
to the payment in full of the principal of and interest on all of the Senior
Indebtedness then outstanding.

     

    9.2           Default on Senior
Indebtedness.  If there shall occur an event of default which
has been declared in writing with respect to any Senior Indebtedness, as defined
therein, or in the instrument under which it is outstanding, permitting the
holder to accelerate the maturity thereof and Cellegy shall have received
written notice thereof from the holder of such Senior Indebtedness, then, unless
and until such event of default shall have been cured or waived or shall have
ceased to exist, or all Senior Indebtedness shall have been paid in full, no
payment shall be made in respect of the principal of or interest on this Note
unless within one hundred eighty (180) days after the happening of such event of
default the maturity of such Senior Indebtedness shall not have been
accelerated.  Not more than one notice may be given to Cellegy
pursuant to the terms of this Section 9.2 during any 360 day
period.

    
      
         

      

      
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    9.3           Further
Assurances.  By acceptance of this Note Cellegy agrees to
execute and deliver customary forms of subordination agreement requested from
time to time by the holders of Senior Indebtedness and, as a condition to
Cellegy’s rights hereunder, Adamis may require that Cellegy execute such forms
of subordination agreement, provided that such forms shall not impose on Cellegy
terms less favorable than those provided herein.

     

    10.           Governing
Law.  This Note shall be governed by and construed under the
laws of the State of Delaware, excluding its conflicts of laws
rules.

     

    11.           Notice.  All
notices or other communications required or given hereunder shall be in writing
and shall be deemed effectively given when presented personally or on the date
of receipt (or refusal of delivery) if sent by courier service or U.S. Mail
(certified or registered, postage prepaid, return receipt requested) to the
parties at the addresses given below or such other addresses as the parties may
hereafter designate in writing.  The date shown on the courier’s
confirmation of delivery or return receipt shall be conclusive as to the date of
receipt.

     

    if to Cellegy:

    

    2085B
Quaker Point Road

    Quakertown,
PA 18951

    Attention:
Chief Executive Officer

    Telephone
No.:  (215) 529-6084

    Facsimile
No.:  (215) 529-6086

    

    with a
copy to:

    

    C. Kevin
Kelso

    Weintraub
Genshlea Chediak

    400
Capitol Mall, 11th
Floor

    Sacramento,
California 95814

    Telephone:
(916) 558-6000

    Fax:
(916) 446-1611

    Email:  kkelso@weintraub.com

    

    if to
Adamis:

    

    Adamis
Pharmaceuticals Corporation

    2658 Del
Mar Heights Road, #555

    Del Mar,
CA 92014

    Attention: President

    Telephone
No.: (858) 401-3984

    
      
         

      

      
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    with a
copy to:

    

    Cooley Godward Kronish LLP

    4401 Eastgate Mall

    San Diego, CA 92121

    Attention:  Patrick
Loofbourrow, Esq.

    Telephone
No.:  (858) 550-6000

    Facsimile No.:  (858)
550-6420

    

    12.           Severability.  If
any provision or any word, term, clause or part of any provision of this Note
shall be invalid or unenforceable for any reason, the same shall be ineffective,
but the remainder of this Note and of the provision shall not be affected and
shall remain in full force and effect.

     

    13.           Waivers.  The
holder of this Note may accept late or partial payments even though they are
marked "payment in full," without losing, prejudicing or waiving any rights
hereunder or otherwise available to holder at law or in equity.  The
granting without notice of any extension or extensions of time for payment of
any sum or sums due hereunder, or for the performance of any covenants or
agreements hereof, or the taking or release of other or additional security,
shall in no way release or discharge the liability of Adamis or any surety,
guarantor or endorser.  A waiver by the holder of this Note or failure
to enforce any covenant or condition of this Note, or to declare any default
hereunder, shall not operate as a waiver of any subsequent default or affect the
right of the holder of this Note to exercise any right or remedy not expressly
waived in writing.  Any of the terms or conditions of this Note may be
waived by Cellegy, but no such waiver shall affect or impair the rights of
Cellegy to require observance, performance, or satisfaction, either of that term
or condition as it applies on a subsequent occasion or of any other term or
condition of this Note.  Adamis hereby unconditionally and irrevocably
waives notice of acceptance, presentment, notice of nonpayment, protest, notice
of protest, suit and all other conditions precedent in connection with the
delivery, acceptance, collection and/or enforcement of this Note or any
collateral or security therefor or any guarantees hereof.

     

    14.           Dispute
Resolution.  The provisions of the Merger Agreement governing
resolution of disputes shall apply with respect to any dispute, claim or
proceeding arising under or relating to this Note, and such provisions are
hereby incorporated by reference.  In any action arising out of
relating to this Note, the prevailing party shall be entitled to recover from
each other party all of its attorneys fees and costs, in addition to costs and
expenses otherwise allowed by law, and Adamis agrees to pay all of Cellegy’s
reasonable costs and expenses, including reasonable attorneys’ fees, that may be
incurred in forcing or protecting Cellegy’s rights or interests
hereunder.

     

    15.           Cumulative
Remedies.  Upon any Event of Default under this Note, the
holder hereof, at its option, may exercise any right or remedy available to it
hereunder, and all available rights and remedies shall be cumulative, including
those available hereunder and available at law or in equity.

     

    16.           General
Provisions.  No amendment, modification, change, waiver or
discharge shall be effective unless evidenced by an instrument in writing and
signed by the party against whom enforcement of any waiver, amendment, change,
modification or discharge is sought.  The provisions of this Note
shall be binding upon and inure to the benefit of the heirs, personal
representatives, successors and assigns of the Adamis and
Cellegy.

    
      
         

      

      
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    17.           Commercial
Purpose.  The indebtedness evidenced by this Note is incurred
by Adamis solely for commercial purposes, and not for personal, family or
household purposes.

     

    [SIGNATURE
PAGE DIRECTLY FOLLOWS THIS PAGE]

    
      
         

      

      
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    In Witness
Whereof, the parties below have executed this Note as of the date and
year first above written.

    

    
      
        
          
            
              
                	
                        ADAMIS
      PHARMACEUTICALS CORPORATION

                      
	 
      
	
                        By:

                      	
                        /s/
      Dennis J. Carlo

                      
	
                        Name:

                      	
                        Dennis
      J. Carlo

                      
	
                        Title:

                      	
                        President
      and Chief Executive
Officer

                      

              

            

          

        

      

    

    

    
      
        
          
            
              	
                      CELLEGY PHARMACEUTICALS, INC.

                    
	 
      
	
                      By:

                    	
                      /s/
      Richard C. Williams

                    
	
                      Name:

                    	
                      Richard
      C. Williams

                    
	
                      Title:

                    	
                      Interim
      Chief Executive
Officer

                    

            

          

        

      

    

    
      
         

      

      
        9Adamis
Pharmaceuticals Corporation

     

    STOCK
REPURCHASE AGREEMENT

     

    THIS STOCK REPURCHASE AGREEMENT
(this “Agreement”) is
made as of the 3rd day of
November 2008 by and between Adamis
Pharmaceuticals Corporation, a Delaware corporation (the “Company”),
and Richard Aloi (“Stockholder”).

     

    Whereas, the Stockholder owns two
million one hundred fifty seven thousand and fifty eight (2,157,058) shares of
the Common Stock of the Company (the “Stock”)
which he purchased at $0.001 per share (the “Per-Share
Purchase Price”); and

     

    Whereas, the Stockholder became
an employee of the Company on April 18, 2007 “the Vesting
Commencement Date”; and

    

    Whereas,
on or about October 28, 2008, the Company declined its right of first refusal
and approved the sale and transfer from Richard Frost to Purchaser an aggregate
four hundred eighty eight thousand and thirty nine (488,039) shares of the
Common Stock of the Company subject to the terms and conditions set forth in the
Stock Restriction Agreement dated April 17, 2007; and

    

    Whereas, the Stockholder agrees
to designate all the two million six hundred forty five thousand and ninety
seven (2,645,097) shares of the Common Stock as being "Repurchasable
Stock;" and

     

    Whereas, the Stockholder executed
a Stock
Restriction Agreement with the Company effective as of the 17th day of
April, 2007; and

    

    Whereas, the Company wishes to
replace the previous Stock
Restriction Agreement effective April 17, 2007 with this Stock
Repurchase Agreement;

     

    Now,
Therefore, It Is Agreed between the parties as follows:

     

    1.           Repurchase
Options. In addition to any restrictions imposed by the Bylaws of the
Company and indemnification and holdback provisions contained in the Stock
Purchase Agreement, the Company has two independent options to repurchase the
Repurchasable Stock: Performance; and Time-Based (collectively referred to
herein as the “Repurchase
Options”).  Each reference to Repurchasable Stock in this
Agreement shall mean the number of shares of Repurchasable Stock after giving
effect to any adjustment in the aggregate number of shares of Repurchasable
Stock as a result of the exercise of any of the preceding Repurchase Options.
The Repurchase Options may be triggered by one of the following Repurchase
Events (“Repurchase
Event”):

     

    (a)           Performance-Based Repurchase
Option. A Repurchase Option will occur on June 30, 2010. Notwithstanding
the provisions of Sections 1(b), all of Stockholder’s shares of Repurchasable
Stock shall be subject to a performance-based repurchase option in favor the
Company (the “Performance
Repurchase Option”). This Performance Repurchase
Option will lapse upon the earlier to occur of clause (i) or (ii)
below:

    
      
         

      

      
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    (i)           Adamis
Laboratories reports financial results in any fiscal quarter that meet two
criteria set forth below and more fully described in Annex
A hereto:

     

    (1)           net
revenue in excess of $3.5 million in any two sequential quarters,
and

     

    (2)           operating
profit before product development expenses of at least 15% of net revenue during
the same sequential quarters.

     

    For
purposes of this section 1.(a)(i), net revenue shall be determined in accordance
with Generally Accepted Accounting Principles and defined as gross product sales
reduced by returns, discounts, allowances and royalties. Operating profit shall
be determined in accordance with Generally Accepted Accounting Principles and
defined as net sales less cost of goods sold less sales, general and
administrative expenses, depreciation, and amortization. It specifically
excludes interest extraordinary expenses and product development
expenses.

    

    (ii)           
the volume weighted average price of the Company’s common stock is at an average
price in excess of $1.00 per share, as reported by the exchange on which the
Company’s common stock is then trading, during twenty (20) consecutive trading
days.

     

    If the
criteria have not been met in any of the first twelve quarters after the signing
of this Agreement, the Company shall be entitled to repurchase the fraction of
Stockholder’s aggregate shares of Repurchasable Stock determined by dividing (1)
the difference between (A) $3,500,000 and (B) the amount of net revenue (as
determined in accordance with Annex
A hereto) reported in the quarter ending June 30, 2010, by (2)
$3,500,000.

     

    
      For
purposes of illustrating the effect of the Performance Repurchase Option, assume
that an individual holds 1,000,000 shares of Repurchasable Stock and that for
the quarter ending on June 30, 2010 the reported net revenue of Adamis
Laboratories, Inc. is $3,000,000. The Company would have the right to repurchase
142,857 shares of Repurchasable Stock (i.e., $500,000/$3,500,000 X
1,000,000). Stockholder would then hold 857,143 shares of Repurchasable
Stock.

    

     

    (b)           Time-Based Repurchase Option.
A Repurchase Event will occur if the Stockholder’s relationship with the Company
or any of its Affiliates terminates for any reason (including death or
disability), or for no reason, with or without cause, such that after such
termination Stockholder is no longer an employee of, or consultant to, the
Company or any of its Affiliates (and regardless of whether or not Stockholder
is then serving as a director of the Company or any of its Affiliates). For
purposes of the preceding sentence, a party shall be deemed to control an entity
if such party directly or indirectly owns more than 50% of the voting interests
in such entity.

     

    (i)           One
hundred percent (100%) of the Repurchasable Stock shall initially be subject to
the Time-Based Repurchase Option. On April 18, 2008, one-third (1/3) of the
Time-Based Repurchase Option shares, or such lesser amount as is determined
after giving effect to any exercise of any other Repurchase Option, of the
Repurchasable Stock shall lapse and be released from the Time-Based Repurchase
Option. Thereafter, an additional one-third (1/3) of the Repurchasable Stock
shall be released from the Time-Based Repurchase Option on April 18, 2009, and
an additional one-third (1/3) of the Repurchasable Stock shall be released from
the Time-Based Repurchase Option on April 18, 2010.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (ii)           In
the event of Stockholder’s death or Disability (as defined below) at any time
after Initial Employment, the Time-Based Repurchase Option shall lapse with
respect to all of Stockholder’s shares of Repurchasable Stock, but remain
subject to the Performance Repurchase Option.

     

    (iii)           In
the event of a Corporate Transaction (as defined below) Repurchase Options shall
lapse with respect to all of Stockholder’s shares of Repurchasable Stock. A
“Corporate Transaction”
shall mean either (a) an Acquisition; or (b) an Asset Transfer where: “Acquisition”
shall mean (A) any consolidation or merger of the Company with or into
any other corporation or other entity or person, or any other corporate
reorganization, in which the capital stock of the Company immediately prior to
such consolidation, merger or reorganization, represents less than 50% of the
voting power of the surviving entity (or, if the surviving entity is a wholly
owned subsidiary, its parent) immediately after such consolidation, merger or
reorganization; or (B) any transaction or series of related transactions to
which the Company is a party in which in excess of fifty percent (50%) of the
Company's voting power is transferred; provided that an Acquisition shall not
include (x) any consolidation or merger effected exclusively to change the
domicile of the Company, or (y) any transaction or series of transactions
principally for bona fide equity financing purposes in which cash is received by
the Company or any successor or indebtedness of the Company is cancelled or
converted or a combination thereof; and “Asset Transfer”
shall mean a sale, lease, exclusive license or other disposition of all
or substantially all of the assets of the Company.

     

    (iv)           For
purposes of the Time-Based Repurchase Option, “Cause”
shall mean misconduct, including:

     

    (1)           the
willful failure of Stockholder to follow the good faith directions of the
Company’s Board of Directors (the “Adamis
Board”), , or any other personnel to whom Stockholder reports after
written notice thereof and a ten (10) day opportunity to cure;

     

    (2)           any
act by Stockholder of fraud or dishonesty, misappropriation or embezzlement, or
willful misconduct or gross negligence in connection with the performance of any
of Stockholder’s duties to or for the Company, as reasonably and in good faith
determined by the Adamis Board;

     

    (3)           a
material breach by Stockholder of this Agreement or his employment agreement
with Adamis Laboratories, Inc. (the “Employment
Agreement”), the lawful written policies of the Company, any contractual
or legal duty to the Company or any of its Affiliates, or any guidelines or
procedures of the Company provided such policies, guidelines and procedures have
been provided to or otherwise made available to the Stockholder, after written
notice thereof from the Company and a ten (10) day opportunity to cure in the
event that such breach was not willful;

     

    (4)           the
conviction of Stockholder of a felony or a crime involving moral turpitude
(including pleading guilty or no contest to such crime), whether or not such
felony or crime was committed in connection with the business of the Company or
its Affiliates; or

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (5)           any
act of Stockholder which injures or could reasonably be expected to injure the
reputation, business or business relationships of the Company or its
Affiliates.

     

    (v)           For
purposes of the Time-Based Repurchase Option, “Good
Cause” shall mean:

     

    (1)           the
Company commits a material breach of its obligations under the Employment
Agreement and fails to cure such breach within twenty (20) business days
following receipt of notice of such breach; or

     

    (2)           Stockholder’s
principal office is relocated 100 or more miles from its present location,
except for required travel by Stockholder on the Company’s or any of its
Affiliates’ business.

     

    (vi)           For
purposes of the Time-Based Repurchase Option, “Disability”
shall mean the inability of a person, in the opinion of a qualified physician
acceptable to Adamis Laboratories, Inc., to perform the major duties of that
person’s position with the Company or any of its Affiliates because of the
sickness or injury of the person.

     

    (e) Escrow. All Repurchasable
Shares subject to Repurchase Options will be held in escrow by the Company. Once
all Repurchase
Options have lapsed, the fully released shares will be transferred to the
Stockholder.  Notwithstanding anything to the contrary herein, the
Repurchasable Shares shall remain in escrow pending the expiration of the
holdback period described in Section 1.4 of the Stock Purchase Agreement and
continue to be subject to the rights and obligations described
therein.

     

    2.           Exercise of
Repurchase Options.

     

    (a)           If
a Repurchase Event, as defined above, occurs, the Company shall have an
irrevocable option, for a period of ninety (90) days after said Repurchase Event
(or such longer period as may be agreed to by the Company and the Stockholder)
to repurchase from Stockholder (or Stockholder’s personal representative, as the
case may be) at $0.001 per share (“Option
Price”), up to but not exceeding the number of shares of Repurchasable
Stock subject to that Repurchase Option as of the date of such Repurchase Event.
Stockholder hereby acknowledges
that the Company has no obligation, either now or in the future, to repurchase
any of the shares of Stock, whether vested or unvested, at any
time.

     

    (b)           The
Repurchase Options shall be exercised by written notice signed by an officer of
the Company or by any assignee or assignees of the Company and delivered or
mailed as provided in Section 13(a). Such notice shall identify the number of
shares of Repurchasable Stock to be purchased and shall notify Stockholder of
the time, place and date for settlement of such purchase, which shall be
scheduled by the Company within the applicable term of the Repurchase Option set
forth in Section 1 above. The Company shall be entitled to pay for any shares of
Repurchasable Stock purchased pursuant to its Repurchase Option in cash or by
offset against any indebtedness owing to the Company by Stockholder, or by a
combination of both, as determined by the Company in its sole discretion. Upon
delivery of such notice and payment of the purchase price in any of the ways
described above, the Company shall become the legal and beneficial owner of the
Repurchasable Stock being repurchased and all rights and interest therein or
related thereto, and the Company shall have the right to transfer to its own
name the Repurchasable Stock being repurchased by the Company or take any other
action with respect to such Repurchasable Stock, without further action by
Stockholder.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    3.           Adjustments
to Repurchasable Stock. If, from time to time, during the term of the
Repurchase Options there is any change affecting the Company’s outstanding
Common Stock as a class that is effected without the receipt of consideration by
the Company (through merger, consolidation, reorganization, reincorporation,
stock dividend, dividend in property other than cash, stock split, liquidating
dividend, combination of shares, change in corporation structure or other
transaction not involving the receipt of consideration by the Company), then any
and all new, substituted or additional securities or other property to which
Stockholder is entitled by reason of Stockholder’s ownership of the
Repurchasable Stock shall be immediately subject to the Repurchase Options and
be included in the word “Repurchasable Stock” for all purposes of the Repurchase
Options with the same force and effect as the shares of the Repurchasable Stock
presently subject to the Repurchase Options, but only to the extent the
Repurchasable Stock is, at the time, covered by such Repurchase Options. While
the total Option Price shall remain the same after each such event, the Option
Price per share of Repurchasable Stock upon exercise of the Repurchase Options
shall be appropriately adjusted.

     

    4.           [Reserved To
Retain Numbering]

     

    5.           Termination
of Repurchase Options. Sections 1, 2, and 3 of this Agreement shall
terminate upon the earlier to occur of the exercise in full or expiration of all
of the Repurchase Options.

     

    6.           Parachute
Payments.

     

    (a)           If
any payment or benefit Stockholder would receive pursuant to a Corporate
Transaction from the Company, its Affiliates or otherwise (“Payment”)
would (i) constitute a “parachute payment” within the meaning of Section 280G of
the Internal Revenue Code of 1986, as amended (the “Code”),
and (ii) but for this sentence, be subject to the excise tax imposed by Section
4999 of the Code (the “Excise
Tax”), then such Payment shall be reduced to the Reduced Amount. The
“Reduced
Amount” shall be either (x) the largest portion of the Payment that would
result in no portion of the Payment being subject to the Excise Tax or (y) the
largest portion, up to and including the total, of the Payment, whichever
amount, after taking into account all applicable federal, state and local
employment taxes, income taxes, and the Excise Tax (all computed at the highest
applicable marginal rate), results in Stockholder’s receipt, on an after-tax
basis, of the greater amount of the Payment notwithstanding that all or some
portion of the Payment may be subject to the Excise Tax. If a reduction in
payments or benefits constituting “parachute payments” is necessary so that the
Payment equals the Reduced Amount, reduction shall occur in the following order
unless Stockholder elects in writing a different order (provided, however, that such
election shall be subject to Company approval if made on or after the date on
which the event that triggers the Payment occurs): reduction of cash payments;
cancellation of accelerated vesting of stock awards; reduction of employee
benefits. In the event that acceleration of vesting of stock award compensation
is to be reduced, such acceleration of vesting shall be cancelled in the reverse
order of the date of grant of Stockholder’s stock awards unless Stockholder
elects in writing a different order for cancellation.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (b)           
The accounting firm engaged by the Company for general audit purposes as of the
day prior to the effective date of the Corporate Transaction shall perform the
foregoing calculations. If the accounting firm so engaged by the Company is
serving as accountant or auditor for the individual, entity or group effecting
the Corporate Transaction, the Company shall appoint a nationally recognized
accounting firm to make the determinations required hereunder. The Company shall
bear all expenses with respect to the determinations by such accounting firm
required to be made hereunder.

     

    (c)           The
accounting firm engaged to make the determinations hereunder shall provide its
calculations, together with detailed supporting documentation, to the Company
and Stockholder within fifteen (15) calendar days after the date on which
Stockholder’s right to a Payment is triggered (if requested at that time by the
Company or Stockholder) or such other time as requested by the Company or
Stockholder. If the accounting firm determines that no Excise Tax is payable
with respect to a Payment, it shall furnish the Company and Stockholder with an
opinion reasonably acceptable to Stockholder that no Excise Tax will be imposed
with respect to such Payment. Any good faith determinations of the accounting
firm made hereunder shall be final, binding and conclusive upon the Company and
Stockholder.

     

    7.           Rights of
Stockholder. Subject to the provisions of Sections 8, 10, and 11 herein,
Stockholder shall exercise all rights and privileges of a stockholder of the
Company with respect to the Repurchasable Stock released from escrow.
Stockholder shall be deemed to be the holder for purposes of receiving any
dividends that may be paid with respect to such shares of Repurchasable Stock
and for the purpose of exercising any voting rights relating to such shares of
Repurchasable Stock, even if some or all of such shares of Repurchasable Stock
have not yet been released from the Repurchase Option.

     

    8.           Limitations
on Transfer. Stockholder shall not assign, hypothecate, donate, encumber
or otherwise dispose of any interest in the Stock except for any encumbrance by
the Company arising under the Stock Purchase Agreement and except in compliance
with the provisions herein and applicable securities laws. Furthermore, the
Stock shall be subject to the right of first refusal in favor of the Company or
its assignees that is contained in the Company’s Bylaws. In the event the
Company elects not to exercise the right of first refusal the Company may have
on a proposed transfer of the Stock pursuant to the Company’s Bylaws, the
Stockholder acknowledges that the Company may, as permitted in the Company’s
Bylaws, assign its right of first refusal to other stockholders of the Company.
In the event of such assignment, each assignee of such right of first refusal
shall have a right to purchase its pro rata portion of the
capital stock proposed to be transferred. Each assignee’s pro rata portion shall
be equal to the product obtained by multiplying (i) the aggregate number of
shares proposed to be transferred by (ii) a fraction, the numerator of which is
the number of shares of Common Stock held by such assignee at the time of the
proposed transfer and the denominator of which is the total number of shares
owned by all assignees at the time of such proposed transfer. If not all
assignees of such right of first refusal elect to purchase their pro rata
portion of the Stock proposed to be transferred by the Stockholder, then the
Stockholder may transfer the remaining shares of Stock not purchased by such
assignees as provided in the Company’s Bylaws.

     

    9.           Restrictive
Legends. All certificates representing the Stock shall have endorsed
thereon legends in substantially the following forms (in addition to any other
legend which may be required by other agreements between the parties
hereto):

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (a)           “THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A RIGHT OF FIRST REFUSAL
OPTION IN FAVOR OF THE COMPANY AND/OR ITS ASSIGNEE(S), AS PROVIDED IN THE
COMPANY’S BYLAWS.”

     

    (b)           “THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS
TO THE SECURITIES UNDER SAID ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.”

     

    (c)           Any
additional legend required by the Company’s Bylaws, as such may be amended from
time to time.

     

    (d)           Any
legend required by appropriate blue sky officials.

     

    (e)           Any
legend required to enforce the provisions of Section 10 hereof.

     

    (f)           With
respect to the Repurchasable Stock only: “THE SHARES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO CERTAIN OPTIONS AND RESTRICTIONS SET FORTH IN AN
AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS PREDECESSOR IN
INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THIS
COMPANY.  ANY TRANSFER OR ATTEMPTED TRANSFER OF ANY SHARES SUBJECT TO
SUCH OPTION IS VOID WITHOUT THE PRIOR EXPRESS WRITTEN CONSENT OF THE ISSUER OF
THESE SHARES.”

     

    (g)           With
respect to the shares of Closing Stock only: “THE SHARES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS SET FORTH IN AN AGREEMENT
BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS PREDECESSOR IN INTEREST, A
COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THIS COMPANY.  ANY
TRANSFER OR ATTEMPTED TRANSFER OF ANY SHARES SUBJECT TO SUCH OPTION IS VOID
WITHOUT THE PRIOR EXPRESS WRITTEN CONSENT OF THE ISSUER OF THESE
SHARES.”

     

    10.           Market
Stand-Off Agreement. Stockholder shall not sell, dispose of, transfer,
make any short sale of, grant any option for the purchase of, or enter into any
hedging or similar transaction with the same economic effect as a sale, any
Common Stock or other securities of the Company held by Stockholder, including
the Stock (the “Locked-Up
Securities”), during the 180-day period following the effective date of a
registration statement of the Company filed under the Act (the “Lock Up
Period”) (or such longer period, not to exceed 18 days after the
expiration of the 180-day period, as the underwriters or the Company shall
request in order to facilitate compliance with NASD Rule 2711), provided, however, that
nothing in this Section 10 shall prevent the exercise of the Repurchase Option
or Additional Repurchase Option during the Lock Up Period. Stockholder agrees to
execute and deliver such other agreements as may be reasonably requested by the
Company and/or the managing underwriter which are consistent with the foregoing
or which are necessary to give further effect thereto. In order to enforce the
foregoing covenant, the Company may impose stop-transfer instructions with
respect to Stockholder’s Locked-Up Securities until the end of the Lock Up
Period. The underwriters of the Company’s stock are intended third party
beneficiaries of this Section 10 and shall have the right, power and authority
to enforce the provisions hereof as though they were a party
hereto.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    11.           Refusal to
Transfer. The Company shall not be required (a) to transfer on its books
any shares of Stock of the Company which shall have been transferred in
violation of any of the provisions set forth in this Agreement or (b) to treat
as owner of such shares or to accord the right to vote as such owner or to pay
dividends to any transferee to whom such shares shall have been so
transferred.

     

    12.           No
Employment Rights. This Agreement is not an employment contract and
nothing in this Agreement shall affect in any manner whatsoever the right or
power of the Company (or any of the Company’s Affiliates) to terminate
Stockholder’s employment for any reason at any time, with or without cause and
with or without notice.

     

    13.           Miscellaneous.

     

    (a)           Notices. All notices required
or permitted hereunder shall be in writing and shall be deemed effectively
given: (i) upon personal delivery to the party to be notified, (ii) when sent by
confirmed telex or facsimile if sent during normal business hours of the
recipient, and if not during normal business hours of the recipient, then on the
next business day, (iii) five (5) calendar days after having been sent by
registered or certified mail, return receipt requested, postage prepaid, or (iv)
one (1) business day after deposit with a nationally recognized overnight
courier, specifying next day delivery, with written verification of receipt. All
communications shall be sent to the other party hereto at such party’s address
hereinafter set forth on the signature page hereof, or at such other address as
such party may designate by ten (10) days advance written notice to the other
party hereto.

     

    (b)           Successors and Assigns. This
Agreement shall inure to the benefit of the successors and assigns of the
Company and, subject to the restrictions on transfer herein set forth, be
binding upon Stockholder, Stockholder’s successors, and assigns. The Repurchase
Options of the Company hereunder shall be assignable by the Company at any time
or from time to time, in whole or in part.

     

    (c)           Attorneys’ Fees; Specific
Performance. In any action brought to enforce any provision of this
Agreement, the prevailing party shall be entitled to recover reasonable
attorneys’ fees and costs from the other party to the action or proceeding. For
purposes of this Agreement, the "prevailing party" shall be deemed to be that
party who obtains substantially the result sought, whether by settlement,
mediation, judgment or otherwise, and "attorneys’ fees" shall include, without
limitation, the actual attorneys’ fees incurred in retaining counsel for advice,
negotiations, suit, or other legal proceeding, including mediation and
arbitration.  It is the intention of the parties that the Company,
upon exercise of any of the Repurchase Options and payment therefore, pursuant
to the terms of this Agreement, shall be entitled to receive the Repurchasable
Stock, in specie, in order to have such Repurchasable Stock available for future
issuance without dilution of the holdings of other stockholders. Furthermore, it
is expressly agreed between the parties that money damages are inadequate to
compensate the Company for the Repurchasable Stock and that the Company shall,
upon proper exercise of any of the Repurchase Options, be entitled to specific
enforcement of its rights to purchase and receive said Repurchasable
Stock.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (d)           Governing Law; Venue. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware. The parties agree that any action brought by either party to
interpret or enforce any provision of this Agreement shall be brought in, and
each party agrees to, and does hereby, submit to the jurisdiction and venue of,
the appropriate state or federal court for the district encompassing the
Company’s principal place of business.

     

    (e)           Further Execution. The parties
agree to take all such further action (s) as may reasonably be necessary to
carry out and consummate this Agreement as soon as practicable, and to take
whatever steps may be necessary to obtain any governmental approval in
connection with or otherwise qualify the issuance of the securities that are the
subject of this Agreement.

     

    (f)           Independent Counsel.
Stockholder acknowledges that this Agreement has been prepared on behalf of the
Company by Greenberg Traurig, counsel to the Company and that Greenberg Traurig
does not represent, and is not acting on behalf of, Stockholder. Stockholder has
been provided with an opportunity to consult with Stockholder’s own counsel with
respect to this Agreement.

     

    (g)           Entire Agreement; Amendment.
This Agreement, the Stock Purchase Agreement and the Employment Agreement
constitute the entire agreement between the parties with respect to the subject
matter hereof and supersedes and merges all prior agreements or understandings
with respect to the subject matter hereof, whether written or oral. This
Agreement may not be amended, modified or revoked, in whole or in part, except
by an agreement in writing signed by each of the parties hereto.

     

    (h)           Severability. If one or more
provisions of this Agreement are held to be unenforceable under applicable law,
the parties agree to renegotiate such provision in good faith. In the event that
the parties cannot reach a mutually agreeable and enforceable replacement for
such provision, then (i) such provision shall be excluded from this Agreement,
(ii) the balance of the Agreement shall be interpreted as if such provision were
so excluded and (iii) the balance of the Agreement shall be enforceable in
accordance with its terms.

     

    (i)           Release. As a condition of
receiving the benefits under Sections 1(d)(ii) and 1(d)(iv) of this Agreement to
which Stockholder would not otherwise be entitled, Stockholder shall execute a
release in the form attached hereto as Exhibit A (the “Release”).
Unless the Release is executed by Stockholder, delivered to the Company within
twenty-one (21) days after the termination of Stockholder’s employment with the
Company and deemed effective pursuant to its terms, Stockholder shall not
receive any of the accelerated vesting benefits provided for under this
Agreement.

     

    (j)           Counterparts. This Agreement
may be executed in two or more counterparts, each of which shall be deemed an
original and all of which together shall constitute one instrument.

     

    (k)           California Corporate Securities
Law. THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT
HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF
CALIFORNIA AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY
PART OF THE CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION OR IN THE ABSENCE
OF AN EXEMPTION FROM SUCH QUALIFICATION IS UNLAWFUL. PRIOR TO ACCEPTANCE OF SUCH
CONSIDERATION BY THE COMPANY, THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE
EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED OR AN EXEMPTION
FROM SUCH QUALIFICATION BEING AVAILABLE.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    In Witness
Whereof, the parties hereto have executed this Agreement as of the day
and year first above written.

     

    
      
        
          
            	 
      	
                     Adamis
      Pharmaceuticals Corporation 

                  
	  
      	  
      
	  
      	
                     By: 

                  	 /s/ Dennis
      J. Carlo 
	  
      	  
      
	  
      	
                     Title: 

                  	 CEO 
      
	  
      	  
      
	  
      	
                     Address:      
      2658 Del Mar Heights Road, #555 

                  
	  
      	
                                           Del
      Mar, CA 92014 

                  

          

        

      

    

    

    Stockholder
acknowledges and agrees that the vesting of Stock pursuant to Section 1 hereof
is earned only by continuing service as an employee or consultant at the will of
the Company or its Affiliates. Stockholder further acknowledges and agrees that
nothing in this agreement shall confer upon Stockholder any right with respect
to continuation of such employment or consulting relationship with the Company
or its Affiliates, nor shall it interfere in any way with Stockholder’s right or
the right of the Company or its Affiliates to terminate Stockholder’s employment
or consulting relationship at any time, with or without cause.

     

    Stockholder
acknowledges and agrees that Stockholder must bear the economic risk of this
investment indefinitely unless the Stock is registered pursuant to the
Securities Act or an exemption from registration is available, and that the
Company has no obligation to repurchase such Stock. Stockholder further
acknowledges that any risk related to the fluctuation in the value of the stock
from and after the date hereof, including any losses to Stockholder as a result
of Company’s exercise of any of its repurchase options pursuant to Section 1,
shall be borne by Stockholder.

     

    Stockholder
acknowledges that Stockholder has had an opportunity to consult Stockholder’s
own tax, legal and financial Advisors regarding the acquisition of common stock
under the Stock Purchase Agreement and the restrictions relating to such stock
under this Agreement.

     

    Stockholder
acknowledges and agrees that in making the decision to acquire the common stock
under the Stock Purchase Agreement Stockholder has not relied on any statement,
whether written or oral, regarding the subject matter hereof, except as
expressly provided in the Stock Purchase Agreement and herein and in the
attachments and exhibits thereto and hereto.

    

    
      
        
          	 
      	
                   Stockholder: 

                
	  
      	  
      
	  
      	 /s/
      Richard Aloi  
	  
      	
                   Richard
      Aloi 

                

        

      

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    Exhibit
A

     

    Release
Agreement

     

    I
understand that my position with Adamis
Pharmaceuticals, Inc.
(the “Subsidiary”)
terminated effective ___________, _____ (the “Separation
Date”). The Company has agreed that if I choose to sign this Release, the
Company will extend to me certain benefits (minus the standard withholdings and
deductions, if applicable) pursuant to the terms of the Stock Repurchase
Agreement (the
“Agreement”)
entered into as of November 3, 2008, between myself and the Company, and any
agreements incorporated therein by reference. I understand that I am not
entitled to such benefits unless I sign this Release. I understand that,
regardless of whether I sign this Release, the Subsidiary will pay me all of my
accrued salary and vacation through the Separation Date, to which I am entitled
by law.

     

    In
consideration for the benefits I am receiving under the Agreement, I hereby
release the Company and its officers, directors, agents, attorneys, employees,
stockholders, and Affiliates from any and all claims, liabilities, demands,
causes of action, attorneys’ fees, damages, or obligations of every kind and
nature, whether they are now known or unknown, arising at any time prior to the
date I sign this Release. This general release includes, but is not limited to:
all federal and state statutory and common law claims, claims related to my
employment or the termination of my employment or related to breach of contract,
tort, wrongful termination, discrimination, wages or benefits, or claims for any
form of equity or compensation. Notwithstanding the release in the preceding
sentence, I am not releasing any right of indemnification I may have for any
liabilities arising from my actions within the course and scope of my employment
with the Subsidiary.

     

    In
releasing claims unknown to me at present, I am waiving all rights and benefits
under Section 1542 of the California Civil Code, and any law or legal principle
of similar effect in any jurisdiction: “A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the
time of executing the release, which if known by him must have materially
affected his settlement with the debtor.”

     

    If I am
forty (40) years of age or older as of the Separation Date, I acknowledge that I
am knowingly and voluntarily waiving and releasing any rights I may have under
the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”). I
also acknowledge that the consideration given for the waiver in the above
paragraph is in addition to anything of value to which I was already entitled. I
have been advised by this writing, as required by the ADEA that: (a) my waiver
and release do not apply to any claims that may arise after my signing of this
Release; (b) I should consult with an attorney prior to executing this Release;
(c) I have twenty-one (21) days within which to consider this Release (although
I may choose to voluntarily execute this Release earlier); (d) I have seven (7)
days following the execution of this release to revoke the Release; and (e) this
Release will not be effective until the eighth day after this Release has been
signed both by me and by the Company (“Effective
Date”).

     

    
      
        
          
            
              
                	
                        Agreed:

                      	 
      
	 
      	 
      
	 
      	 
      	 
      
	
                        Date

                      	
                        Richard
      Aloi

                      

              

            

          

        

        

        
          
            
              
                
                  	 
      	
                          Adamis
      Pharmaceuticals Corp.

                        
	 
      	 
      
	 
      	
                          By:

                        	 
      
	 
      	 
      
	 
      	
                          Name:

                        	 
      
	 
      	 
      
	 
      	
                          Title:

                        	 
      

                

              

            

          

        

      

    

    
      
         

      

      
        11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00151-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00151-of-00352.parquet"}]]