Document:

Fuse Science Technology Provides Superior
Roll-On Alternative for $1.7 Billion Hormone Replacement Category

 

Miami Lakes, FL – June 27, 2013 –
Fuse Science, Inc. (OTCQB: DROP) (www.fusescience.com), a consumer products and delivery technology company that is developing
new, patent-pending technologies poised to redefine how consumers receive energy, medicines, vitamins and minerals announced today
additional information regarding the results of their latest research that has emerged from continued clinical analysis during
due diligence of the Company’s technology as part of the active M&A process. Fuse Science’s proprietary technology
has demonstrated the successful delivery of Estradiol in a roll-on application at therapeutic levels through the epidermis.

 

Millions of women in the United States
suffer from hormonal imbalance, whether it is early menopause, peri-menopause symptoms or premenstrual symptoms. The side effects
of these hormone imbalances include hot flashes, night sweats, trouble sleeping and weight gain. All of these side effects are
concerning to most aging women.

 

Hormone replacement therapies (“HRT”)
with Estradiol and Estrogen for post-menopausal women and other hormone treatments are most commonly delivered via oral administration
or a transdermal patch application. Now, Fuse Science has successfully demonstrated that its technology offers the ability to deliver
Estradiol through the epidermis in a simple roll-on application. We believe that this alternative affords a significant benefit
over the challenges of oral administration and limitations of patch delivery. Recent research data shows that Fuse Science’s
technology can deliver the required (and even higher) levels of Estradiol for a 24 hour period, without any optimization. Further,
the roll-on is applied to the smallest surface area required for delivery of a transdermal HRT, providing a huge benefit and convenience
for patients. Fuse Science recognizes that these research results are of particular interest in establishing new areas of growth
for this major pharmaceutical category and believes that its proprietary technology provides an enhanced delivery option, superior
ease of use, and the expansion of therapeutic possibilities in this $1.7 billion product category.

 

As a result, Fuse Science has expanded
strategic talks to the leading producers of Estrodial in the hormone replacement category, as part of the company’s structured
active M&A and licensing process.

 

The full
research report on the Estradiol hormone delivery results can be found by visiting this link: http://ir.stockpr.com/fusescience/clinical-research
and clicking on the May 31, 2013 study.

 

About Fuse Science, Inc.

Fuse Science, Inc. (OTCQB: DROP), is an
innovative consumer products and delivery technology company based in Miami Lakes, Florida. Fuse Science holds the rights to new,
patent-pending technologies poised to redefine how consumers receive energy, medicines, vitamins and minerals. The Company maintains
the rights to sublingual and transdermal delivery systems for bioactive agents that can now, for the first time, effectively encapsulate
and charge many varying molecules in order to produce complete product formulations which can bypass the gastrointestinal tract
and enter the blood stream directly - all in a concentrated "DROP" form that is simply applied under the tongue. The
Fuse Science technology is designed to accelerate conveyance of medicines or nutrients relative to traditional pills and liquids
and can enhance how consumers receive these products. Information about Fuse Science is available online at www.fusescience.com
and www.poweredbyfuse.com or by calling 305-503-FUSE (3873).

 

    	 

    	 

    

 

 

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happens, follow @FuseScience on Twitter and Like Us on Facebook!

 

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updates sent directly to you; sign up for Fuse News Alerts HERE.

 

	For more information: 	To schedule an interview:
	Fuse Science, Inc.	Gus DeQuesada
	Investor Relations	Michelsen Advertising
	Direct: (305) 503-3873, Ext. 2	C-305-733-1410 / 786-488-7138
	Email: ir@fusescience.com	prnews@michelsenadvertising.comFORM CONVERTIBLE NOTE 

 

$ _____

 

Maturity Date: 12 Months from Note closing
date

 

FOR VALUE RECEIVED, the undersigned CytoSorbents
Corporation (the “Company”), promises to pay in equity as set forth below on or before June 21, 2014, to_________________________
(“Creditor"), at New York, NY the principal sum of ____________ ($0.00) (the “Principal”),
together with interest accruing thereon at the rate of 8% per annum, payable on or before maturity of the Note. This Note together
with any Warrants issued hereunder shall be defined as the Securities (the “Securities”).

 

The Note
will be subordinate to any future debt financing. There are no registration rights for the Common Stock underlying the Note, interest,
or Warrants.

 

Conversion
into New Financing: In the event that at any time during the term of the Note, the Company closes on any debt or equity financing
in an aggregate amount greater or equal to $750,000 including any equity financing or any financing which provides for a right
to convert into equity (such financing shall be referred to as the “New Financing”), and if any principal and interest
owed under this Note remains outstanding, the Securities may, at the sole option of the Creditor, be exchanged for the equivalent
dollar amount of securities sold in the New Financing. The Company shall notify the Creditor in writing within five (5) business
days of closing the New Financing and the Creditor shall have thirty (30) days to exercise this option from the receipt of the
notice from the Company of the New Financing.

 

In the event that
the Creditor chooses not to convert the outstanding principal and interest owed under the Note in accordance with the New Financing
and during the term of the Note, the Company closes on an additional New Financing, debt or equity, in an aggregate amount greater
or equal to $750,000 (such additional financing shall be referred to as the “Additional New Financing”), and if any
principal and interest remains outstanding under the Note then the Securities may, at the sole option of the Creditor, be exchanged
for the equivalent dollar amount of securities sold in the Additional New Financing. The Company shall notify the Creditor in writing
within five (5) business days of closing the Additional New Financing and the Creditor shall have thirty (30) days to exercise
this option from the receipt of the notice from the Company of the Additional New Financing. In the event the Creditor chooses
not to convert into such Additional New Financing his right shall be deemed waived, but solely for that particular transaction,
and shall remain in full effect for any subsequent Additional New Financings, during the term of the Note as long as the Creditor
continues to hold any Principal and interest outstanding under the Note.

 

Conversion in accordance with terms
of Note: Alternatively at any time during the term of the Note, at the sole option of the Creditor, the outstanding principal
and interest owed under the Note, in whole or in part, may be converted into Common Stock of the Company at a rate of $0.125 [based
on the 5-day volume weighted average closing price at the time of the closing of this convertible note] per share of Common. At
the maturity of the Note, any outstanding principal and interest will be converted into Common Stock of the Company at a rate of
$0.125 per share [based on the 5-day volume weighted average closing price at the time of the closing of this convertible note]of
Common. Based upon the above, this note will be repaid through the conversion into equity and the Company will have no obligation
to repay in cash.

 

	Warrants:	50% Warrant coverage as follows: The Company will issue the Creditor five-year warrants (the “Warrants”) to purchase that number of shares of Common Stock equal to the quotient obtained by dividing (x) 50% of the Principal, by (y) $0.125 [based on the 5-day volume weighted average closing price at the time of the closing of this convertible note], with the resulting number of shares having an exercise price equal to $0.15 per share [based on the 5-day volume weighted average closing price of the Common Stock at the time of the closing of this convertible note times 1.2] of Common Stock. The Warrants shall only begin to be exercisable at the earlier of either (i) the Maturity Date, or (ii) the date on which the total outstanding principal and interest has been converted into Common Stock of the Company at a rate of $0.15 [based on the 5-day volume weighted average closing price of the Common Stock at the time of the closing of this convertible note times 1.2] as defined above.

 

Cashless Exercise of Warrants: If the current market
value of the Company’s Common Stock (as defined below) is greater than the warrant exercise price, in lieu of delivering
the exercise price in cash or check the Creditor may elect to exchange the warrants, in whole or in part, to receive in exchange
that number of shares of Common Stock equal to the value of these Warrants or portion thereof being exercised (the "Net Issue
Exercise"). If the Creditor wishes to elect the Net Issue Exercise, the Creditor shall notify the Company of his election
in writing at the time the Creditor delivers to the Company the notice of exercise in the form attached hereto along with the surrender
of the warrant at the principal office of the Company. In the event the Creditor shall elect the Net Issue Exercise, the Creditor
shall receive upon exercise of the Warrants that number of shares of Common Stock equal to (A) the product of (i) the number of
shares purchasable under this warrant by means of a cash exercise, or portion thereof being exercised, and (ii) the excess of the
current market value (as defined below) per share over the warrant exercise price per share, divided by (B) the current market
value, as defined below, of each share. Current market value of the Common Stock shall be determined as follows:

 

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(i)If the shares are listed on a national
securities exchange, listed for trading on the Nasdaq Stock Market, listed for trading over the counter, bulletin board or pink
sheets, the current market value shall be the volume weighted average of the reported closing sale prices of the shares on such
exchange or system for five (5) consecutive business trading days ending on the last business trading day prior to the date of
exercise of this warrant; or

 

(ii)If the shares are no longer listed
as in (i) above, the current market value shall be the volume weighted average of the reported closing sale prices of the shares
for the last fifteen (15) reported consecutive business trading days on such exchange or system immediately preceding 180 business
trading days from the delisting of the shares, within the term of the Note; or

 

(iii) If there were no such sales
during the term of the Note, the most significant recent sale, as determined in a reasonable manner by the Directors of the Company.

 

Cancellation of Warrants following Conversion
into a New Financing: Upon conversion of principal and interest of this Note into a New Financing, the Warrants of this Note
would be cancelled and exchanged for new warrants, if any, of the New Financing.

 

Compliance with Securities Laws:
(i)   The Creditor, by acceptance hereof, acknowledges that this Note and the shares of Common Stock to be issued upon conversion
hereof are being acquired solely for the Creditor’s own account and not as a nominee for any other party, and for investment,
and that the Creditor will not offer, sell or otherwise dispose of this Note or any shares of Common Stock to be issued upon conversion
hereof except pursuant to an effective registration statement, or an exemption from registration, under the Securities Act and
any applicable state securities laws. (ii)   Except as provided in paragraph (iii) below, this Note and all certificates representing
shares of Common Stock issued upon conversion hereof shall be stamped or imprinted with a legend in substantially the following
form:

 

THIS NOTE AND THE SHARES OF COMMON
STOCK ISSUABLE UPON CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY
TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
LAWS IS NOT REQUIRED.

 

 (iii)  
The Company agrees to reissue the certificates representing any of the Common Stock, without the legend set forth above if at such
time, prior to making any transfer of any such securities, the Creditor shall give written notice to the Company describing the
manner and terms of such transfer. Such proposed transfer will not be effected until: (a) either (i) the Company has received an
opinion of counsel reasonably satisfactory to the Company, to the effect that the registration of such securities under the Securities
Act is not required in connection with such proposed transfer, (ii) a registration statement under the Securities Act covering
such proposed disposition has been filed by the Company with the United States Securities and Exchange Commission and has become
effective under the Securities Act, or (iii) the Company has received other evidence reasonably satisfactory to the Company that
such registration and qualification under the Securities Act and state securities laws are not required.

 

This Note and any of its terms may be changed,
waived, or terminated only by a written instrument signed by the party against which enforcement of that change, waiver, or termination
is sought.

 

If any action is instituted to collect this
Note or enforce any terms hereof, the Company promises to pay all legal fees and other expenses reasonably incurred by the Creditor
in connection therewith.

 

The Company hereby waives notice of presentment
or demand for payment, protest or notice of nonpayment or dishonor and all other notices or demands relative to this instrument.

 

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This Note is made in, governed by, and shall
be construed in accordance with the laws of the State of New Jersey.

 

	CYTOSORBENTS CORPORATION	 	CLOSING DATE
	 	 	 	 
	By		 	June 21, 2013
	Name:  	Phillip Chan	 	 
	Title:  	Chief Executive Officer	 	 

 

 

	CREDITOR
	 
	 
	By	 
	Name:	XXXXX
	Date:	June XX, 2013

 

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