Document:

Exhibit 10.2

 

NEITHER
THIS DEBENTURE NOR THE SECURITIES UNDERLYING THIS DEBENTURE, NOR ANY SECURITIES ISSUABLE UPON ITS CONVERSION, IF ANY, HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT’), OR QUALIFIED UNDER APPLICABLE STATE SECURITIES
LAWS AND MAY ONLY BE ACQUIRED FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION
THEREOF. THIS DEBENTURE AND THE SECURITIES UNDERLYING THIS DEBENTURE, OR THE SECURITIES ISSUABLE UPON ITS CONVERSION, IF ANY,
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES
UNDER THE ACT AND QUALIFICATION UNDER APPLICABLE STATE LAW WITHOUT AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION AND QUALIFICATION ARE NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO- ACTION LETTER FROM THE SECURITIES AND EXCHANGE
COMMISSION.

 

JERRICK
MEDIA HOLDINGS, INC.

 

SECURED
CONVERTIBLE PROMISSORY NOTE

 

Dated:
August    , 2017

(“Issuance
Date”)

 

 

FOR
VALUE RECEIVED JERRICK MEDIA HOLDINGS, INC., a company organized under the laws of Nevada (the “Company”),
hereby promises to pay to                        (the
“Payee”), or its registered assigns, the principal amount of                       
  ($            USD) together with interest thereon calculated
from the Issuance Date (“Interest Commencement Date”) in accordance with the provisions of this Secured Convertible
Promissory Note (as amended, modified and supplemented from time to time, this “Note” and together with any
other Notes issued in the Note Issuance (as defined below) or upon transfer or exchange, the “Notes”). Capitalized
terms not defined in this Note shall have the meaning ascribed to them in the Note Subscription Agreement.

 

Certain
capitalized terms are defined in Section 9 hereof.

 

1.            Payment
of Interest. Interest shall accrue at a rate equal to                        percent
( %) per annum (the “Interest Rate”) beginning on the Interest Commencement Date on the unpaid principal amount
of this Note and shall be payable upon the first anniversary of the Interest Commencement Date in cash and then quarterly in cash
thereafter; provided that so long as any Event of Default has occurred and is continuing, the interest rate shall increase
two percent (2%) above the current interest rate, and will continue to increase two percent (2%) above the then effective interest
rate after every 30-day period thereafter in which the Company remains in default of its obligation to pay principal and interest.
In no event shall any interest to be paid under the Notes exceed the maximum rate permitted by law. In any such event, the Note
shall automatically be deemed amended to permit interest charges at an amount equal to, but not greater than, the maximum rate
permitted by law. Interest shall be computed on the basis of the actual number of days elapsed and a 360-day year.

 

    	 	-1-	 

     

    

 

2.            Maturity
Date. The entire principal amount of this Note and all accrued but unpaid interest thereon shall be due and payable in full
in cash in immediately available funds twenty- four months from the date of issuance (such date, the “Maturity Date”)
upon the tender of such Note by Payee.

 

3.            Conversion.

 

(i)          The
Payee shall have the option to (i) convert this Note and any accrued but unpaid interest into shares of the Company’s common
stock at any time during the term of the Note or (ii) upon the Maturity Date, tender this Note to the Company for immediate repayment
of principal and accrued and unpaid interest. The number of shares that shall be issuable upon conversion of the Note shall
equal the number derived by dividing (x) the principal amount of the Note plus any accrued and unpaid interest thereon by (y)
US $0.20 (twenty cents US). No fractional shares shall be issued upon a conversion. In lieu of any fractional shares to which
Payee would otherwise be entitled, the Company shall pay cash equal to such fraction multiplied by the Pre-Money Valuation.

 

In
order to convert this Note in to Common Stock, the Holder must deliver a dated and signed notice of conversion (the “Notice
of Conversion”), a copy of which is attached to this Note as Exhibit A, stating its intention to convert the full principal
amount of this Note into Common Shares, Notices of Conversion shall be deemed delivered on the date sent, if personally delivered,
to the Company’s Chief Executive Officer at the Company’s principal place of business, or when actually received if
sent by another method. The Notice of Conversion shall be accompanied by the original Note.

 

(ii)         As
soon as possible after the conversion has been effected (but in any event within two (2) Business Days), the Company or acquirer
shall deliver to the converting holder a certificate or certificates representing the Common Shares issuable by reason of such
conversion in such name or names and such denomination or denominations as the converting holder has specified. In the event that
the Payee elects to tender this Note to the Company for immediate repayment, such payment shall be delivered to the Payee within
five (5) business days to the address provided by the Payee to the Company at the time of the surrender of this Note.

 

(iii)        The
issuance of Common Shares upon conversion of this Note shall be made without charge to the holder hereof in respect thereof or
other cost incurred by the Company or acquirer in connection with such conversion. Upon conversion of this Note, the Company shall
take all such actions as are necessary in order to ensure that the Company’s common stock issuable upon conversion of the
Note shall be validly issued, fully paid and nonassessable.

 

    	 	-2-	 

     

    

 

(iv)        Neither
the Company nor acquirer shall close its books against the transfer of this Note in any manner which interferes with the timely
conversion of this Note. The Company shall assist and cooperate with any holder of this Note required to make any governmental
filings or obtain any governmental approval prior to or in connection with the conversion of this Note (including, without limitation,
making any filings required to be made by the Company).

 

(v)         The
Company shall at all times reserve and keep available out of its authorized but unissued shares of common stock, solely for the
purpose of issuance upon conversion hereunder, such number of shares of common stock issuable upon conversion. All shares of such
capital stock which are so issuable shall, when issued, be duly and validly issued, fully paid and nonassessable and free from
all taxes, liens and charges. The Company shall take all such actions as may be necessary to assure that all such shares of capital
stock may be so issued without violation of any applicable law or governmental regulation or any requirements of any domestic
securities exchange upon which such shares of capital stock.

 

4.            Prepayment.
The principal amount of this Note may be prepaid, in whole or in part, after twelve (12) months from the date of issuance at the
option of the Company, together with Interest accrued to the date of prepayment. Any such prepayment shall be made pro rata based
on such Payee’s share of the aggregate principal amount then owed by the Company to all of the Payees under all the Notes.

 

In
the event of prepayment, in whole or in part, a prepayment penalty rate shall be assessed as follows:

 

(i)         10%
of principal value between months 12 and 18

(ii)        5%
of principal value between months 19 and 24

 

5.            Seniority.
This Note is secured indebtedness of the Company and shall be secured by a second priority lien on all the assets of the Company
and its subsidiaries, second only to the existing note payable to Arthur Rosen in an amount not to exceed $1,000,000; subject
to a carve out for a traditional revolving credit facility secured by receivables with a maximum borrowing capacity of $1,000,000,
whether now or hereinafter existing except as otherwise stated herein.

 

6.            Method
of Payments.

 

(i)          Payment.
So long as the Payee or any of its nominees shall be the holder of any Note, and notwithstanding anything contained elsewhere
in this Note to the contrary, the Company will pay all sums for principal, interest, or otherwise becoming due on this Note held
by the Payee or such nominee not later than 1:00 p.m. New York time, on the date such payment is due, in immediately available
funds, in accordance with the payment instructions that the Payee may designate in writing, without the presentation or surrender
of such Note or the making of any notation thereon. Any payment made after 1:00 p.m. New York time, on a Business Day will be
deemed made on the next following Business Day. If the due date of any payment in respect of this Note would otherwise fall on
a day that is not a Business Day, such due date shall be extended to the next succeeding Business Day, and interest shall be payable
on any principal so extended for the period of such extension. All amounts payable under this Note shall be paid free and clear
of, and without reduction by reason of, any deduction, set-off or counterclaim. The Company will afford the benefits of this Section
to the Payee and to each other Person holding this Note.

 

    	 	-3-	 

     

    

 

(ii)         Transfer
and Exchange. Upon surrender of any Note for registration of transfer or for exchange to the Company, in accordance with the
terms hereof, at its principal office, the Company at its sole expense will execute and deliver in exchange therefor a new Note
or Notes, as the case may be, as requested by the holder or transferee, which aggregate principal amount is equal the unpaid principal
amount of such Note, registered as such holder or transferee may request, dated so that there will be no loss of interest on the
Note and otherwise of like tenor; provided that this Note may not be transferred by Payee to any Person other than Payee’s
affiliates without the prior written consent of the Company (which consent shall not be unreasonably withheld or delayed). The
issuance of new Notes shall be made without charge to the holder(s) of the surrendered Note for any issuance tax in respect thereof
or other cost incurred by the Company in connection with such issuance, provided that each Noteholder shall pay any transfer taxes
associated therewith. The Company shall be entitled to regard the registered holder of this Note as the holder of the Note so
registered for all purposes until the Company or its agent, as applicable, is required to record a transfer of this Note on its
register.

 

(iii)        Replacement.
Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of any Note and,
in the case of any such loss, theft or destruction of any Note, upon receipt of an indemnity reasonably satisfactory to the Company
or, in the case of any such mutilation, upon the surrender and cancellation of such Note, the Company, at its expense, will execute
and deliver, in lieu thereof, a new Note of like tenor and dated the date of such lost, stolen, destroyed or mutilated Note.

 

7.            Covenants
of the Company. The Company covenants and agrees as follows:

 

(i)          Consolidation,
Merger and Sale. With the exception of a reverse merger transaction, the Company will not sell or otherwise dispose of (or
permit any subsidiary to sell or otherwise dispose of) a material portion of its property or assets in one or more transactions
for so long as any of the Notes remain outstanding.

 

(ii)         Use
of Proceeds. The Company shall use the proceeds of the Notes only for general working capital purposes and not to redeem
or make any payment on account of any securities of the Company other than as provided in Schedule 1 attached
hereto.

 

(iii)        Notes. All Notes shall be on the same terms and shall be in substantially the same form. All payments to the holder of
any Note shall be made to all holders of Notes, pro rata, based on the aggregate principal amount plus accrued but unpaid interest
outstanding on such Notes at such time.

 

(iv)        Restricted
Payments. Other than as set forth on Schedule 1.1 hereto, for as long as the Notes are outstanding, the Company
shall not (a) declare or pay any dividend or make any distribution on or in respect of its capital stock; (b) make any
principal payment on, redeem, repurchase, or retire any outstanding debt; or (c) increase the compensation (including bonuses
and incentive compensation) paid to any consultant or employee other than in the ordinary course of business consistent with
past practice.

 

    	 	-4-	 

     

    

 

8.            Events of Default. If any of the following events take place before or on the Maturity Date (each, an “Event of
Default”), Payee at its option may declare all principal and accrued and unpaid interest thereon and all other amounts
payable under this Note immediately due and payable; provided, however, that this Note shall automatically become
due and payable without any declaration in the case of an Event of Default specified in clause (iii) or (v), below:

 

		(i)	Company
                                         fails to make payment of the full amount due under this Note upon the tender of such
                                         Note following the Maturity Date; or

 

		(ii)	A
                                         receiver, liquidator or trustee of Company or any substantial part of Company’s
                                         assets or properties is appointed by a court order; or

 

		(iii)	Company
                                         is adjudicated bankrupt or insolvent; or

 

		(iv)	Any
                                         of Company’s property is sequestered by or in consequence of a court order and
                                         such order remains in effect for more than 30 days; or

 

		(v)	Company
                                         files a petition in voluntary bankruptcy or requests reorganization under any provision
                                         of any bankruptcy, reorganization or insolvency law or consents to the filing of any
                                         petition against it under such law, or

 

		(vi)	Proceedings
                                         for the appointment of a receiver, trustee or custodian of the Company or of all or a
                                         substantial part of the assets or property thereof, or an involuntary case or other proceedings
                                         seeking liquidation, reorganization or other relief with respect to the Company or the
                                         debts thereof under any bankruptcy, insolvency or other similar law now or hereafter
                                         in effect shall be commenced and an order for relief entered or such proceeding shall
                                         not be dismissed or discharged within sixty (60) days of commencement.

 

		(vii)	Company
                                         makes a formal or informal general assignment for the benefit of its creditors, or admits
                                         in writing its inability to pay debts generally when they become due, or consents to
                                         the appointment of a receiver or liquidator of Company or of all or any part of its property;
                                         or

 

		(viii)	An
                                         attachment or execution is levied against any substantial part of Company’s assets
                                         that is not released within 30 days; or

 

		(ix)	Company
                                         dissolves, liquidates or ceases business activity, or transfers any major portion of
                                         its assets other than in the ordinary course of business; provided that this paragraph
                                         (ix) shall not apply to any contemplated real estate transaction; or

 

    	 	-5-	 

     

    

 

		(x)	Company
                                         breaches any covenant or agreement on its part contained in this Note or the Subscription
                                         Agreement; or

 

		(xi)	Any
                                         material inaccuracy or untruthfulness of any representation or warranty of the Company
                                         set forth in this Note, the Subscription Agreement or the Offering Documents.

 

9.            Definitions.

 

“Business
Day” means a day (other than a Saturday or Sunday) on which banks generally are open in New York, New York for the conduct
of substantially all of their activities.

 

“Noteholder”
or “Payee” with respect to any Note, means at any time each Person then the record owner hereof and “Noteholders”
or “Payees” means all of such Noteholders or Payees, collectively.

 

“Note
Issuance” or “Offering” shall mean the Secured Convertible Promissory Notes issued by the Company
to the Payee and other Noteholders (each in substantially the form of this Note) in the original principal amount not to exceed
$6,000,000 in the aggregate.

 

“Person”
means any person or entity of any nature whatsoever, specifically including an individual, a firm, a company, a corporation, a
partnership, a limited liability company, a trust or other entity.

 

“Subscription
Agreement” means the Subscription Agreement, dated August 2017 between the Company and the Payee.

 

10.         Expenses
of Enforcement, etc. The Company agrees to pay all reasonable fees and expenses incurred by the Payee in connection with
any amendments, modifications, waivers, extensions, renewals, renegotiations or “workouts” of the provisions
hereof or incurred by the Payee in connection with the enforcement or protection of its rights in connection with this Note,
or in connection with any pending or threatened action, proceeding, or investigation relating to the foregoing, including but
not limited to the reasonable fees and disbursements of counsel for the Payee. The Company indemnifies the Payee and its
directors, managers, affiliates, partners, members, officers, employees and agents against, and agrees to hold the Payee and
each such person and/or entity harmless from, any and all losses, claims, damages, liabilities and related expenses,
including reasonable counsel fees and expenses, incurred by or asserted against the Payee or any such person and/or entity
arising out of, in any way connected with, or as a result of (i) the consummation of the loan evidenced by this Note and the
use of the proceeds thereof or (ii) any claim, litigation, investigation or proceedings relating to any of the foregoing,
whether or not the Payee or any such person and/or entity is a party thereto other than any loss, claim, damage, liability or
related expense incurred or asserted against the payee or any such person on account of the payee’s or such
person’s gross negligence or willful misconduct. Notwithstanding the foregoing, with respect to the indemnification
obligations of the Company hereunder, (i) the Company’s aggregate liability under this Note to the Payee shall not
exceed the aggregate principal amount of the Note and all accrued and unpaid interest thereon and (ii) indemnified
liabilities shall not include any liability of any indemnitee arising out of such indemnitee’s gross negligence. To the
extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the
maximum contribution to the payment and satisfaction of each of the indemnified liabilities which is permissible under
applicable law.

 

    	 	-6-	 

     

    

 

11.          Security Interest.

 

(i)          Creation of Security Interest. In order to secure the payment of the principal and interest and all other obligations of
the Company hereunder now or hereafter owed by the Company to Payee (the “Secured Obligations”), the Company
hereby grants to Payee (or its designee) (the “Secured Party”) a first priority security interest (the “Security
Interest”) in the property of the Company described below (the “Collateral”) on the terms and conditions
set forth in this Note second only to the existing note payable to Arthur Rosen in an amount not to exceed

$1,000,000:

 

(a)          all intellectual property of any kind or nature whatsoever, including without limitation patents, patent applications, copyrights,
copyright applications, trademarks and service marks and applications therefore, mask works, net lists and trade secrets;

 

(b)          all substitutes and replacements for, accessions, attachments, and other additions to, and all proceeds, products, and increases
of, any and all of the foregoing Collateral, in whatever form, whether cash or noncash; interest, premium, and principal payments,
redemption proceeds and subscription rights, and shares or other proceeds of conversions or splits of any securities in Collateral,
and returned or repossessed Collateral; and, to the extent not otherwise included, all (A) payments under insurance, or any indemnity,
warranty or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral, (B)
cash and (C) security for the payment of any of the Collateral, and all goods which gave or will give rise to any of the Collateral
or are evidenced, identified, or represented therein or thereby.

 

(ii)         Sale or Removal of Collateral Prohibited. Except for the sale of inventory in the ordinary course of the Company’s
business, the Company shall not sell, lease, encumber, pledge, mortgage, assign, grant a security interest in, or otherwise transfer
the Collateral without the written consent of Payee, which consent shall not be unreasonably withheld.

 

(iii)        Uniform
Commercial Code Security Agreement. This Section is intended to be a security agreement pursuant to the Uniform
Commercial Code for any of the items specified above as part of the Collateral which, under applicable law, may be subject to
a security interest pursuant to the Uniform Commercial Code, and the Company hereby grants Payee a security interest in said
items. The Company agrees that Payee may file any appropriate document in the appropriate index or filing office as a
financing statement for any of the items specified above as part of the Collateral and the Company shall reimburse Payee for
all fees and expenses associated with such filing. In addition, the Company agrees to execute and deliver to Payee, upon
Payee’s request, any financing statements, as well as extensions, renewals and amendments thereof, and reproductions of
this Agreement in such form as Payee may reasonably require to perfect a security interest with respect to said items. The
Company shall pay all costs of filing such financing statements and any extensions, renewals, amendments, and releases
thereof, and shall pay all reasonable costs and expenses of any record searches for financing statements Payee may reasonably
require. Without the prior written consent of Payee, the Company shall not create or suffer to be created pursuant to the
Uniform Commercial Code any other security interest in the Collateral, other than the Security Interests of Secured Party,
including replacements and additions thereto. Upon the occurrence of an Event of Default, each Secured Party shall have the
remedies of a Payee under the Uniform Commercial Code and, at Secured Party’s option, may also invoke the other
remedies provided in this Note as to such items. In exercising any of said remedies, Secured Party may proceed against the
items of real property and any items of personal property specified above as part of the Collateral separately or together
and in any order whatsoever, without in any way affecting the availability of Secured Party’s remedies under the
Uniform Commercial Code or of the other remedies provided in this Agreement.

 

    	 	-7-	 

     

    

 

(iv)        Rights of Secured Party. Upon an Event of Default, Secured Party may require the Company to assemble the Collateral and
make it available to Secured Party at the place to be designated by Secured Party which is reasonably convenient to the parties.
Secured Party may sell all or any part of the Collateral as a whole or in parcels either by public auction, private sale, or other
method of disposition. Secured Party may bid at any public sale on all or any portion of the Collateral. Unless the Collateral
is perishable or threatens to decline speedily in value or is of the type customarily sold on a recognized market, Secured Party
shall give the Company reasonable notice of the time and place of any public sale or of the time after which any private sale
or other disposition of the Collateral is to be made, and notice given at least 10 days before the time of the sale or other disposition
shall be conclusively presumed to be reasonable. A public sale in the following fashion shall be conclusively presumed to be reasonable:

 

(a)       Notice shall be given at least 10 days before the date of sale by publication once in a newspaper of general circulation published
in the county in which the sale is to be held;

 

(b)       The sale shall be held in a county in which the Collateral or any part is located or in a county in which the Company has a place
of business;

 

(c)       Payment shall be in cash or by certified check immediately following the close of the sale;

 

(d)       The sale shall be by auction, but it need not be by a professional auctioneer; and

 

(e)       The Collateral may be sold as is and without any preparation for sale.

 

(v)        Notwithstanding
any provision of this Agreement, Secured Party shall be under no obligation to offer to sell the Collateral. In the event
Secured Party offer to sell the Collateral, Secured Party will be under no obligation to consummate a sale of the Collateral
if, in their reasonable business judgment, none of the offers received by them reasonably approximates the fair value of the
Collateral.

 

    	 	-8-	 

     

    

 

(vi)        In the event Secured Party elects not to sell the Collateral, Secured Party may elect to follow the procedures set forth in the
Uniform Commercial Code for retaining the Collateral in satisfaction of the Company’s obligation, subject to the Company’s
rights under such procedures.

 

(vii)       In addition to the rights under this Agreement, in the Event of Default by the Company, Secured Party shall be entitled to the
appointment of a receiver for the Collateral as a matter of right whether or not the apparent value of the Collateral exceeds
the outstanding principal amount of the Notes and any receiver appointed may serve without bond. Employment by Secured Party shall
not disqualify a person from serving as receiver.

 

(viii)      Additional
Rights of Secured Party. The Company shall execute and deliver to Secured Party concurrently with the Company’s execution
and delivery of this Agreement and at any time thereafter at the reasonable request of Secured Party, all financing statements,
continuation financing statements, fixture filings, security agreements, mortgages, pledges, assignments, endorsements of certificates
of title, applications for title, affidavits, reports, notices, schedules of accounts, letters of authority, and all other documents
that Secured Party may reasonably request, in form reasonably satisfactory to Secured Party, to perfect and maintain perfected
Secured Party’s continuing security interests in the Collateral and in order to fully consummate all of the transactions
contemplated under the Offering Documents, the Company hereby authorizes Secured Party to file and/or record such financing statements
and other documents as Secured Party deems reasonably necessary to perfect and maintain Secured Party’s continuing security
interest in the Collateral, including, but not limited to, any and all filings recognized by the United States Patent and Trademark
Office for the purposes of perfecting a security interest in any Collateral that is considered intellectual property of the Company.
The Company agree any such financing statements may contain an “all asset” or “all property” description
of the Collateral.

 

(ix)        The
Security Interest shall terminate when all the Secured Obligations have been fully and indefeasibly paid in full, at which time
all Uniform Commercial Code termination statements and similar documents which the Company shall reasonably request to evidence
such termination shall be executed.

 

12.          Right of First Refusal. Note holders shall have the right in the event the Company proposes to offer equity or equity derivative
securities to any person (other than the shares issued for consideration other than cash pursuant to a merger, consolidation,
acquisition, or similar business combination approved by the Board) to purchase their pro rata portion of such shares. Any securities
not subscribed for by an eligible Investor may be reallocated among the other eligible Investors. Such right of first refusal
will terminate on upon the second anniversary of the date of issuance of the Notes. For purposes of this right of first refusal,
an Investor’s pro rata right shall be equal to the ratio of (a) the principal value of the Notes purchased in the Offering
by such Investor to (b) the total principal value of aggregate Notes sold by the Company in the Offering.

 

    	 	-9-	 

     

    

 

13.          Amendment
and Waiver. The provisions of this Note may not be modified, amended or waived, and the Company may not take any action
herein prohibited, or omit to perform any act herein required to be performed by it, without the written consent of the
holders of a majority of the then outstanding principal amount of all similar convertible notes issued in the Company’s
offering of Notes; provided, however, that any amendment to this Note which (i) changes the Interest Rate in
Section 1 hereof, (ii) changes the Maturity Date in Section 2 hereof or (iii) adversely affects the Payee’s ability to
convert or to refrain from converting this Note in its sole discretion pursuant to Section 3 hereof, must be approved in
writing by the holders of 100% of the then outstanding principal amount of all similar convertible notes issued in the Note
Issuance (including this Note).

 

14.          Anti-Dilution Rights. For so long as the Notes are outstanding, if the Corporation issues shares of Common Stock or securities
convertible into or exchangeable or exercisable for Common Stock, except for Excepted Issuances (as defined below), for a consideration
at a price per share, or having a conversion, exchange or exercise price per share less than the Conversion Price of the Note
immediately in effect prior to such sale or issuance, then immediately prior to such sale or issuance the Conversion Price of
the Note shall be reduced to such other lower price. For purposes of this adjustment, the issuance of any security carrying the
right to convert such security directly or indirectly into shares of Common Stock or of any warrant, right or option to purchase
Common Stock shall result in an adjustment to the Conversion Price upon the issuance of the above described security and again
upon the issuance of shares of Common Stock upon exercise of such conversion or purchase rights if such issuance is at a price
lower than the then applicable Conversion Price. Excepted Issuances means: (i) Company's issuance of Common Stock in full or partial
consideration in connection with a strategic merger, acquisition, consolidation or purchase of substantially all of the securities
or assets of a corporation or other entity, so long as such issuances are not for the purpose of raising capital and which holders
of such securities or debt are not at any time granted registration rights, (ii) the Company's issuance of securities in connection
with strategic license agreements and other partnering arrangements, so long as such issuances are not for the purpose of raising
capital and which holders of such securities or debt are not at any time granted registration rights, (iii) the Company's issuance
of Common Stock or the issuances or grants of options to purchase Common Stock to employees, directors, and consultants, pursuant
to employee stock option plans, (iv) securities upon the exercise or exchange of or conversion of any securities exercisable or
exchangeable for or convertible into shares of Common Stock issued and outstanding as of the date hereof.

 

15.          Remedies Cumulative. No remedy herein conferred upon the Payee is intended to be exclusive of any other remedy and each
and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing
at law or in equity or by statute or otherwise.

 

16.          Remedies Not Waived. No course of dealing between the Company and the Payee or any delay on the part of the Payee in exercising
any rights hereunder shall operate as a waiver of any right of the Payee.

 

    	 	-10-	 

     

    

 

17.          Assignments. The Payee may assign, participate, transfer or otherwise convey this Note and any of its rights or obligations
hereunder or interest herein to any affiliate of Payee and to any other Person that the Company consents to (such consent not
to be unreasonably withheld or delayed), and this Note shall inure to the benefit of the Payee’s successors and assigns.
The Company shall not assign or delegate this Note or any of its liabilities or obligations hereunder.

 

18.          Headings. The headings of the sections and paragraphs of this Note are inserted for convenience only and do not constitute
a part of this Note.

 

19.          Severability. If any provision of this Note is held invalid or unenforceable by any court of competent jurisdiction, the
other provisions of this Note will remain in full force and effect. Any provision of this Note held invalid or unenforceable only
in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

20.          Cancellation. After all principal, premiums (if any) and accrued interest at any time owed on this Note have been paid
in full, or this Note has been converted this Note will be surrendered to the Company for cancellation and will not be reissued.

 

21.          Maximum Legal Rate. If at any time an interest rate applicable hereunder exceeds the maximum rate permitted by law, such
rate shall be reduced to the maximum rate so permitted by law.

 

22.          Place of Payment and Notices. Unless otherwise stated herein, payments of principal and interest are to be delivered to
the Noteholder of this Note at the address provided by the Payee in the Note Subscription Agreement, or at such other address
as such Noteholder has specified by prior written notice to the Company. No notice shall be deemed to have been delivered until
the first Business Day following actual receipt thereof at the foregoing address.

 

23.          Waiver of Jury Trial. The Payee and the Company each hereby waives any right it may have to a trial by jury in respect
of any litigation directly or indirectly arising out of, under or in connection with this Note and/or the transactions contemplated
hereunder.

 

24.          Submission
to Jurisdiction.

 

(i)          Any legal action or proceeding with respect to this Note may be brought in the courts of the State of New York or of the United
States of America sitting in New York County, and, by execution and delivery of this Note, the Company hereby accepts for itself
and in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts.

 

(ii)         The Company hereby irrevocably waives, in connection with any such action or proceeding, any objection, including, without limitation,
any objection to the laying of venue or based on the grounds of forum non conveniens, which they may now or hereafter have to
the bringing of any such action or proceeding in such respective jurisdictions.

 

(iii)        Nothing herein shall affect the right of the Payee to serve process in any other manner permitted by law or to commence legal
proceedings or otherwise proceed against the Company in any other jurisdiction.

 

25.          GOVERNING LAW. ALL ISSUES AND QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS SECURED
NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CHOICE
OF LAW OR CONFLICT OF LAW RULES OR PROVISIONS (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE
APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

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

 

    	 	-11-	 

     

    

 

IN
WITNESS WHEREOF, the Company has executed and delivered this Secured Convertible Promissory Note on the date first written above.

 

	 	COMPANY:
	 	 
	 	JERRICK
    MEDIA HOLDINGS, INC.
	 	 	 
	 	By:	 
	 	 	Jeremy
    Frommer
	 	 	Chief
    Executive Officer

 

    	 	-12-	 

     

    

 

EXHIBIT
A

 

NOTICE
OF CONVERSION

 

(To
Be Signed Only Upon Conversion of the Secured Convertible Promissory Note)

 

The
undersigned, the holder of the foregoing Secured Convertible Promissory Note, hereby surrenders such Note for conversion into
shares of Common Stock of Jerrick Media Holdings, Inc. to the extent of $                               
unpaid principal amount and any accrued and unpaid interest of such Note, and requests that the certificates for such shares
be issued in the name of, and delivered to:

 

	 	Name:	 	 
	 	 	 	 
	 	Address	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

Dated:
              /               / 20     

 

	 	 
	 	(Signature
    must conform in all respects to name of holder as specified on the face of the Debenture)
	 	 
	 	 
	 	 
	 	(Address)

 

 

-13-Exhibit

PTC Services Agreement        

PTC CONSULTING SERVICES AGREEMENT

 

This Consulting Services Agreement (together with all attachments hereto, this “Agreement”), effective as of September 18, 2017 (the “Effective Date”), is made by and between PTC Therapeutics, Inc. (“PTC” or the “Company”) and Geoffrey McDonough, M.D. (the “Consultant”). 

WHEREAS, the Consultant has served as a member of the Board of Directors of PTC (the “Board”), and in such capacity has participated in the oversight of PTC and its activities, until his resignation from the Board effective as of the Effective Date;

WHEREAS, the purpose of this Agreement is to set forth the terms and conditions governing (i) Consultant’s rendering consulting services to PTC in an advisory and/or oversight capacity, in exchange for the consideration as further described in this Agreement, and (ii) various related matters, including without limitation Consultant’s obligations to protect information and property which is confidential and proprietary to PTC and its affiliated entities. 

NOW THEREFORE, PTC and Consultant agree as follows:
 
SERVICES AND NATURE OF ENGAGMENT
Services. Consultant shall perform advisory and/or oversight services for PTC, its management and/or the Board, as reasonably requested from time to time (the “Services”).  Consultant shall also provide such other Services as the parties may mutually agree.  Consultant represents that he is capable of properly performing the Services. 
Independent Contractor Status. The Consultant understands and agrees that he is engaged herein as an independent contractor, and not an employee of the Company.  The Consultant shall retain control over the manner and method by which he provides the Services and shall not be subject to the control or direction of the Company, except that the Company may specify the general services that the Company engages Consultant to perform. Consultant specifically acknowledges and agrees that he has the requisite knowledge, expertise, experience, training and, if applicable, license(s) and/or certification(s), to perform the Services, and that the Company will not provide Consultant with any training concerning the manner or methods of performance of the Services.
No Employment Relationship. Nothing in this Agreement shall create any contract or relationship of employment between the Consultant and the Company or render the Consultant an employee of the Company. The Consultant shall be deemed an independent contractor and not an employee of the Company for all purposes, including all federal/national, state/regional and local laws pertaining to income taxes, withholding taxes, social security, unemployment compensation, workers compensation/employers’ liability or any other rights, benefits, or obligations relating to employment. The Consultant specifically understands and agrees that he: (i) shall not receive a salary or any health, welfare, or other benefits provided by the Company to its employees; (ii) is not entitled to submit any claim for injury or illness either directly to the Company or under any workers’ compensation/employers’ liability coverage maintained by the Company; and (iii) shall, in relation to the Services rendered pursuant to this Agreement, receive an IRS Form 1099 (or equivalent) from the Company with respect to his compensation for the Services, and it shall be the Consultant’s sole responsibility to report and to pay all applicable income taxes on all payments made to the Consultant by the Company under this Agreement, and the Company shall not withhold any taxes except to the extent required by applicable law.  The Consultant shall not, at any time, represent to others that he is, nor will he hold himself out to be, an employee of the Company.  The Consultant is not authorized to bind the Company or to incur any obligation or liability on behalf of the Company. 
COMPENSATION
As Consultant’s total cash compensation for Consultant’s Services hereunder, PTC shall pay Consultant $292 (TWO HUNDRED NINETY TWO UNITED STATED DOLLARS) per hour spent performing the Services.  Consultant shall send all invoices for Services via email to accountspayable@ptcbio.com, sguzman@ptcbio.com and mboulding@ptcbio.com.  Such invoices shall contain a general description of the Services performed and the dates and hours of performance.   
In addition, the outstanding options to purchase common stock of PTC issued/granted to Consultant prior to the Effective Date based on his prior services as a member of the Board shall be treated as set forth on Schedule A hereto (the “Equity Awards”).    
In addition to the foregoing amount, PTC shall pay Consultant for (i) all reasonable and necessary travel expenses (other than ordinary commuting expenses) incurred by Consultant at the prior request of PTC in providing the Services, and (ii) other expenses pre-approved in writing by an authorized PTC representative that are necessary to performance of the Services. 

- 1 -

PTC Consulting Services Agreement        

Payment for such expenses shall be made to Consultant within 45 calendar days of receipt by PTC of invoices and receipts substantiating such expenses and detailing the services to which they relate, and PTC shall then have no further obligation to Consultant for such expenses.   
Consultant shall keep or cause to be kept full, timely and accurate records in reasonable form and detail and to which PTC and its designated employees, agents or representatives shall have access at any reasonable time for auditing purposes. When requested by PTC, Consultant shall be required to report on the status of its work on the Services in a manner satisfactory to PTC.
NO CONFLICTS
Throughout the term of this Agreement the parties hereto agree that the type of services to be rendered hereunder by Consultant are not exclusive to PTC.  Consultant, during the term of this Agreement, may accept from others, concurrent consulting work provided that such consulting work does not in any way interfere with the Services Consultant is required to perform under this Agreement and is not a breach of any of Consultant’s obligations under this Agreement. Notwithstanding the foregoing, Consultant represents that (i) he has not, and will not during the term of this Agreement, enter into any agreement or relationship that would interfere with or prevent his performance under this Agreement, (ii) by entering into and performing this Agreement, he is not and will not be violating any agreement or arrangement with any third parties, and (iii) that during the term of this Agreement he will not solicit or divert business, customers or employees of PTC on behalf of Consultant, himself or any other business.
CONFIDENTIALITY
(a) In providing consulting services to PTC pursuant to this Agreement, Consultant may have continued access to or acquire PTC’s confidential or proprietary information, including without limitation information that pertains to PTC’s employees, products, sales/marketing/distribution activities, processes, equipment, programs, development efforts, therapeutic targets, compounds, assays, know-how, or plans (“Proprietary Information”). Consultant agrees not to disclose any Proprietary Information to third parties or to use any Proprietary Information for any purpose other than performance of the Services.
(b) Proprietary Information subject to the foregoing paragraph does not include information Consultant can demonstrate: (i) is or later becomes available to the public through no breach of this Agreement by Consultant; (ii) is obtained by Consultant from a third party who Consultant had a commercially reasonable basis to believe had the legal right to disclose the information to Consultant; (iii) is already in the possession of Consultant on the Effective Date; or (iv) is required to be disclosed by law, government regulation, or court order; provided, however, that Consultant shall use his best efforts to provide PTC with notice and an opportunity to oppose or limit such disclosure.
(c) Consultant shall not disclose to PTC any confidential information of other parties without the prior written consent of PTC.
(d) Consultant agrees to promptly return, upon termination of this Agreement or at any other time, upon request by PTC, all Proprietary Information and all other materials in Consultant’s possession that were either (i) supplied by PTC or its representatives in conjunction with the Services or (ii) generated by Consultant in the performance of the Services and contain or reference Proprietary Information.  This obligation of return of materials is in addition to, and shall not be construed to limit, any deliverables with respect to the Services.
INTELLECTUAL PROPERTY
(a) Consultant hereby assigns to PTC any right, title, and interest Consultant may have in any know-how, invention, discovery, improvement, or other intellectual property which Consultant develops during the course of and as a direct result of performing the Services.  Any intellectual property assignable to PTC pursuant to the preceding sentence is hereinafter referred to as “PTC Intellectual Property”. Upon the request of PTC, Consultant shall (i) provide such documentation relating to any PTC Intellectual Property, and (ii) execute such further assignments, documents, and other instruments, as may be necessary to assign PTC Intellectual Property to PTC and to assist PTC in applying for, obtaining and enforcing patents or other rights in the United States and in any foreign country with respect to any PTC Intellectual Property.  PTC will bear the cost of preparation of all patent or other applications and assignments, and the cost of obtaining and enforcing all patents and other rights to PTC Intellectual Property. Consultant hereby designates PTC as agent, and grants to PTC a power of attorney with full power of substitution, for the purpose of effecting the foregoing assignments. Consultant agrees not to publish any PTC Intellectual Property without the prior written consent of PTC.
TERM AND TERMINATION
(a) Unless terminated earlier pursuant to the following paragraphs, this Agreement shall terminate on the date which is exactly six months after the Effective Date (the Effective Date through such termination date being the “Term”) or such lesser period as PTC and the Consultant may mutually agree.  The parties may extend the Term by mutual written agreement.
(b) Either party may terminate this Agreement at any time on thirty days’ written notice.
(c) Termination of this Agreement under this section shall not affect (i) PTC’s obligation to pay for services previously performed by Consultant or expenses reasonably incurred by Consultant for which Consultant is entitled to reimbursement under this Agreement, (ii) Consultant’s rights relating to the Equity Awards which survive termination per their express terms and the 

- - 2 - -

PTC Consulting Services Agreement        

express terms of this Agreement or (iii) Consultant’s continuing obligations to PTC under the Confidentiality, Intellectual Property, Term and Termination, and Miscellaneous sections of this Agreement. However, except as specifically set forth in this paragraph, Consultant shall not be entitled to any form of continuing compensation or other remuneration of any nature following the termination of this Agreement.
MISCELLANEOUS
(a) Failure of any party to insist, in one or more instances, on performance by the other in strict accordance with the terms and conditions of this Agreement shall not be deemed a waiver or relinquishment of any right granted hereunder or of the future performance of any such term or condition or of any other term or condition of this Agreement, unless such waiver is contained in a writing signed by or on behalf of the waiving party.
(b) This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New Jersey, U.S.A., without application of the conflicts of law provisions thereof.
(c) PTC may assign its rights and obligations hereunder (i) to any person or entity who succeeds to all or substantially all of PTC’s business or that aspect of PTC’s business in which Consultant is principally involved, or (ii) to any affiliate wholly-owned by or under common control with PTC.  Consultant’s rights and obligations under this Agreement are of a personal nature and therefore may not be assigned without the prior written consent of PTC.
(d) This Agreement shall inure to the benefit of and be binding upon the respective heirs, executors, successors, representatives, and authorized assigns of the parties, as the case may be.
(e) The relationship created by this Agreement shall be that of third party contractor, and, as such, the Consultant shall be responsible for the payment of all taxes including, but not limited to, social security and income tax relating to the rendering of the Services and compensation paid to the Consultant pursuant to the terms of this Agreement. Consultant shall not be entitled to any rights, benefits, or privileges of PTC employees, nor shall Consultant have any authority to bind or act as agent for PTC or its employees for any purpose.  
(f) Consultant acknowledges that any breach or threatened breach of the terms or conditions of this Agreement will result in substantial, continuing and irreparable injury to PTC.  Therefore, Consultant agrees that, in addition to any other remedy that may be available to PTC, PTC shall be entitled to injunctive or other equitable relief by a court of appropriate jurisdiction in the event of any breach or threatened breach of this Agreement, and Consultant waives any requirements relating to the posting of bond or other surety in connection with such injunctive or equitable relief.
(g) Notice or payments given by one party to the other hereunder shall be in writing and deemed to have been properly given or paid if deposited with the United States Postal Service, registered or certified mail, addressed as follows: 

If to PTC: 
 
PTC Therapeutics 
Attention: Legal Department 
100 Corporate Court 
Middlesex Business Center 
South Plainfield NJ 07080 
 
with an email copy to: legal@ptcbio.com 
 
If to Consultant: 
 
Geoffrey McDonough, M.D.
303 Franklin St.
Newton, MA 02458

(h) Consultant represents and warrants that he has never been: (i) excluded, barred from participation in, or sanctioned by any state or federal health care program, including Medicare or Medicaid in the United States, or any similar programs in any other country; (ii) the recipient of a criminal conviction related to any such health care program; or (iii) Debarred (as defined below) or under investigation by any regulatory authority for Debarment action.  Consultant will not knowingly use the services of any person who has been Debarred, in any capacity, in connection with the Services.  Consultant shall notify PTC in the event that he shall become subject to any of the conditions set forth in this subparagraph (h) during or after the term of this Agreement, and provide PTC upon request with a list of the full names of all persons who have or will supervise, administer or perform any Services.  The foregoing obligation shall survive the termination or expiration of this Agreement.  “Debarred” or “Debarment” in relation to a person or an entity means, as applicable, a person or entity subject to limitations or any form of endorsement (x) 

- - 3 - -

PTC Consulting Services Agreement        

under the Generic Drug Enforcement Act or by the FDA (including persons or entities required to be listed under Section 306(k)(2) of the U.S. Food, Drug and Cosmetic Act), or (y) under any competent regulatory authority or other recognized national, multi-national or industry body.

(i) Except as expressly set forth herein (and except for the Separation Agreement), this Agreement replaces all previous agreements and the discussions relating to the subject matters hereof and constitutes the entire agreement between PTC and Consultant with respect to the subject matters of this Agreement; provided, however, that the Equity Awards shall be governed exclusively by the terms of a separate stock option or equity certificate/agreement and the applicable PTC equity plan documents, as amended or otherwise modified by this Agreement.  This Agreement may not be modified in any respect by any verbal statement, representation, or agreement made by any employee, officer, or representative of PTC, or by any written documents unless it is signed by an officer of PTC and by Consultant. 
(j) If any term or provision of this Agreement is deemed invalid, contrary to, or prohibited under applicable laws or regulations of any jurisdiction, the remainder of this Agreement shall remain in effect, and the relevant term or provision shall be limited to the maximum permissible extent.
JURY TRIAL WAIVER 
The parties agree to waive any right to a trial by jury regarding any dispute, claim or cause of action arising out of, concerning, or related to, this Agreement or the Services.

IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Effective Date.

CONSULTANT:

/s/ Geoffery McDonough_________
Geoffrey McDonough, M.D. 
Date: September 18, 2017

PTC THERAPEUTICS, INC. 
 

/s/ Mark E. Boulding_____________
Name: Mark E. Boulding  
Title:  EVP & CLO 
Date: September 18, 2017

- - 4 - -

Schedule A
STOCK OPTIONS

    
Complete List of Stock Options (the “Stock Options”)

(i)    stock options to purchase 12,000 shares granted on January 3, 2017 with an exercise price of $11.23 per share, comprised of:

(x) 8,000 which have vested but remained unexercised; and

(y) 4,000 which remain unvested;

(ii)    stock options to purchase 12,000 shares granted on January 4, 2016 with an exercise price of $30.86 per share, all of which have vested but remained unexercised;

(iii)    stock options to purchase 12,000 shares granted on January 2, 2015 with an exercise price of $51.00 per share, all of which have vested but remained unexercised;

(iv)    stock options to purchase 10,000 shares granted on January 28, 2014, with an exercise price of $27.05 per share, all of which have vested but remained unexercised; and

(v)    stock options to purchase 30,000 shares granted on May 15, 2013, with an exercise price of $10.85 per share, all of which have vested but remained unexercised.

Vesting and Exercisability of Stock Options; Withholding Obligations:

(i) vesting:

The Stock Options shall continue to vest per the regular schedule set forth in the applicable stock option agreement/certificate and related documentation, from the Effective Date through and including the date this Agreement is terminated in accordance with its terms, based on Consultant’s continuity of services under this Agreement.

 (ii) exercise period:

During the Term, consistent with and subject to the terms of the applicable stock option agreement/certificate and related documentation, Consultant shall have the right to exercise the vested portion of the Stock Options; provided, however, that in no event may Consultant exercise any such options beyond the date that is ten (10) years from the initial grant date of any such options as set forth in the applicable option agreement or certificate. Following the Term, Consultant’s right to exercise the vested portion of the Stock Options shall be as set forth in the applicable stock option agreement/certificate and related documentation, 

(iii) withholding obligations:

When and if Consultant exercises any Stock Options, PTC shall require him to satisfy any applicable income and tax withholding obligations prior to PTC’s issuance of any shares with respect to such options. 

- 5 -

Certification of Insider Trading Policy:

Consultant will read and execute PTC’s current “Consultant Certification Regarding Insider Trading Policy”.

- - 6 - -

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