Document:

Imprimis Pharmaceuticals, Inc.

 

8.00% Convertible Senior Secured Note

 

Note Purchase Agreement

 

This Note Purchase Agreement
(the “Agreement”), dated as of January 22, 2016, is being entered into between Imprimis Pharmaceuticals, Inc.,
a Delaware corporation (the “Company”), and IMMY Funding LLC, a Delaware limited liability company (the “Purchaser”),
with respect to the proposed issuance and sale, by the Company, of an 8.00% Convertible Senior Secured Note (the “Note”)
having a principal amount of three million dollars ($3,000,000), in the form set forth in Exhibit A hereto, to the Purchaser
on the terms set forth in this Agreement.

 

The Note will be (A) convertible
in accordance with its terms into shares of the common stock (the “Common Stock”) of the Company, $0.001 par
value per share (the “Shares”); and (B) secured by the Collateral (as defined in the Security Agreement referred
to below) to the extent and in the manner provided in that certain Second Amendment to Loan and Security Agreement, dated as of
the Closing Date (as defined below), among the Company, IMMY Funding LLC, as collateral agent, and the lenders party thereto, in
the form attached hereto as Exhibit B (the “LSA Second Amendment”), to that certain Loan and Security
Agreement, dated as of May 11, 2015, among the Company, as borrower, IMMY Funding LLC, as collateral agent, and the lenders party
thereto from time to time, as amended by that certain First Amendment to Loan and Security Agreement, dated as of October 20, 2015
(such Loan and Security Agreement, as so amended, the “Security Agreement”). The Note and the Shares will be
offered and sold without registration under the Securities Act of 1933, as amended (the “Securities Act”), in
accordance with Section 4(a)(2) of the Securities Act.

 

In connection with the
issuance and sale of the Note, the Company and the Purchaser will execute and deliver an amendment (the “Warrant Amendment”),
in the form attached hereto as Exhibit C, to that certain Warrant to Purchase Stock, dated as of May 11, 2015, between the
Company and the Purchaser (such Warrant to Purchase Stock, as amended by the Warrant Amendment, the “Amended Warrant Agreement,”
and, together with this Agreement, the Note and the Security Agreement, the “Transaction Documents”).

 

The Company and the Purchaser
agree as follows:

 

Section 1.
Sale and Purchase; Payment and Delivery.

 

(A) Sale and Purchase.
On the basis of the representations and warranties and subject to the other terms and conditions set forth in this Agreement, the
Company agrees to issue and sell to the Purchaser, and the Purchaser agrees to purchase from the Company, the Note at a cash purchase
price of one hundred percent (100%) of the principal amount thereof; provided, however, that, in lieu of interest
accruing on the Note from, and including, the Closing Date, interest thereon will instead begin to accrue from, and including,
February 1, 2016 and there will be deducted, from the cash purchase price for the Note payable hereunder by the Purchaser to the
Company on the Closing Date, an amount equal to the interest that would have accrued on the Note from, and including, the Closing
Date to, but excluding, February 1, 2016 had the Note provided for interest to begin to accrue thereon from, and including, the
Closing Date. As used herein, “Purchase Price” means one hundred percent (100%) of the principal amount of the
Note less such interest that is to be so deducted.

 

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(B) Payment and Delivery.
Payment of the Purchase Price for the Note will be made to the Company by Federal Funds wire transfer of same-day funds, against
delivery to the Purchaser of a certificate representing the Note. Such payment and delivery shall be made no later than 4:00 p.m.,
New York City time, on the date of this Agreement. As used herein, “Closing Date” means the date on which such
payment and delivery are made and “Closing Time” means the time when such payment and delivery are made.

 

Section 2.
Representations and Warranties of the Company.

 

The Company represents
and warrants to, and agrees with the Purchaser that, as of the date of this Agreement and as of the Closing Time, unless such representation,
warranty or agreement speaks as of a different time:

 

(A) Registration
of Common Stock; Stock Exchange Matters. The Common Stock is registered pursuant to Section 12(b) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) and is currently listed on the NASDAQ Capital Market (the “Exchange”)
under the trading symbol “IMMY.” The Company has taken no action designed to, or reasonably likely to have the effect
of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from the Exchange, nor
has the Company received any notification that the Securities and Exchange Commission (the “Commission”) or
the Exchange is contemplating terminating such registration or listing. To the Company’s knowledge, it is in compliance with
all applicable listing requirements of the Exchange.

 

(B) No Misstatement
or Omission. The reports and other documents that the Company has filed or will file with the Commission under Section 13(a),
14 or 15(d) of the Exchange Act from and including January 1, 2015 and prior to the Closing Time, together with the Company’s
registration statement on Form 8-A filed with the Commission on February 7, 2013, in each case including the information, if any,
incorporated by reference therein, (collectively, the “Exchange Act Reports,” and, individually, an “Exchange
Act Report”), did or will not, when they were or will be so filed, do not (if so filed before the execution and delivery
of this Agreement), and, as of the Closing Time, will not contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading.

 

(C) Conformity with
Securities Act and Exchange Act. Each Exchange Act Report, when it was filed with the Commission under the Exchange Act, conformed
in all material respects with the requirements of the Exchange Act.

 

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(D) Financial Information.
The consolidated financial statements of the Company included in the Exchange Act Reports, together with the related notes and
schedules, present fairly, in all material respects, the consolidated financial position of the Company and the Subsidiaries (as
defined below) as of the dates indicated and the consolidated results of operations, cash flows and changes in stockholders’
equity of the Company for the periods specified (subject to normal year-end audit adjustments for interim financial statements)
and have been prepared in compliance with the requirements of the Exchange Act and in conformity with generally accepted accounting
principles in the United States applied on a consistent basis during the periods involved; the other financial and statistical
data with respect to the Company and the Subsidiaries contained in the Exchange Act Reports, if any, are accurately and fairly
presented and prepared in all material respects on a basis consistent with the financial statements and books and records of the
Company; there are no financial statements (historical or pro forma) that are required to be included or incorporated by reference
in the Exchange Act Reports that are not included or incorporated by reference as required; the Company and the Subsidiaries do
not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not described
in the Exchange Act Reports; and all disclosures contained or incorporated by reference in the Exchange Act Reports, if any, regarding
“non-GAAP financial measures” (as such term is defined by the rules and regulations of the Commission) comply in all
material respects with Regulation G of the Exchange Act and Item 10 of Regulation S-K under the Exchange Act, to the extent applicable.

 

(E) Organization.
The Company and each of its Subsidiaries are duly organized, validly existing as a corporation and in good standing under the laws
of their respective jurisdictions of organization. The Company and each of its Subsidiaries are duly licensed or qualified as a
foreign corporation for transaction of business and in good standing under the laws of each other jurisdiction in which their respective
ownership or lease of property or the conduct of their respective businesses requires such license or qualification, and have all
corporate power and authority necessary to own or hold their respective properties and to conduct their respective businesses as
described in the Exchange Act Reports, except where the failure to be so qualified or in good standing or have such power or authority
would not, individually or in the aggregate, have a material adverse effect or would reasonably be expected to have a material
adverse effect on or affecting the assets, business, operations, earnings, properties, condition (financial or otherwise), prospects,
stockholders’ equity or results of operations of the Company and the Subsidiaries taken as a whole, or prevent or materially
interfere with consummation of the transactions contemplated by the Transaction Documents (a “Material Adverse Effect”).

 

(F) Subsidiaries.
The subsidiaries set forth on Exhibit 21.1 to the Company Annual Report on Form 10-K for the fiscal year ended December 31, 2014
(collectively, the “Subsidiaries”), are the Company’s only significant subsidiaries (as such term is defined
in Rule 1-02 of Regulation S-X promulgated by the Commission). Except as set forth in the Exchange Act Reports, the Company owns,
directly or indirectly, all of the equity interests of the Subsidiaries free and clear of any material lien, charge, security interest,
encumbrance, right of first refusal or other restriction, and all the equity interests of the Subsidiaries are validly issued and
are fully paid, non-assessable and free of preemptive and similar rights. No Subsidiary is currently prohibited, directly or indirectly,
from paying any dividends to the Company, from making any other distribution on such Subsidiary’s capital stock, from repaying
to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such Subsidiary’s property
or assets to the Company or any other Subsidiary of the Company.

 

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(G) No Violation
or Default. Neither the Company nor any of its Subsidiaries is (i) in violation of its charter or by-laws or similar organizational
documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default,
in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Company or any of its Subsidiaries is a party or by which the Company or
any of its Subsidiaries is bound or to which any of the property or assets of the Company or any of its Subsidiaries are subject;
or (iii) in violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental
or regulatory authority, except, in the case of each of clauses (ii) and (iii) above, for any such violation or default that would
not, individually or in the aggregate, have a Material Adverse Effect. To the Company’s knowledge, no other party under any
material contract or other agreement to which it or any of its Subsidiaries is a party is in default in any respect thereunder
where such default would, individually or in the aggregate, have a Material Adverse Effect.

 

(H) No Material Adverse
Change. Subsequent to the respective dates as of which information is given in the Exchange Act Reports, there has not been
(i) any Material Adverse Effect or the occurrence of any development that the Company reasonably expects will result in a Material
Adverse Effect; (ii) any transaction that is material to the Company and the Subsidiaries taken as a whole other than as contemplated
by the Transaction Documents; (iii) any obligation or liability, direct or contingent (including any off-balance sheet obligations),
incurred by the Company or any Subsidiary, that is material to the Company and the Subsidiaries taken as a whole; (iv) any material
change in the capital stock or outstanding long-term indebtedness of the Company or any of its Subsidiaries (other than as a result
of the sale of the Note); or (v) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company
or any Subsidiary, other than in each case above in the ordinary course of business or as otherwise disclosed in the Exchange Act
Reports.

 

(I) Capitalization.
The issued and outstanding shares of capital stock of the Company have been validly issued, are fully paid and non-assessable and,
other than as disclosed in the Exchange Act Reports, are not subject to any preemptive rights, rights of first refusal or similar
rights. The Company has an authorized, issued and outstanding capitalization as set forth in the Exchange Act Reports as of the
dates referred to therein (other than the grant of additional options under the Company’s existing stock option or equity
incentive plans, or changes in the number of outstanding shares of Common Stock of the Company due to the issuance of shares upon
the exercise or conversion of securities exercisable for, or convertible into, Common Stock outstanding on the date hereof), and
such authorized capital stock conforms to the description thereof set forth in the Registration Statement and the Prospectus. The
description of the securities of the Company in the Exchange Act Reports is complete and accurate in all material respects. Except
as disclosed in or contemplated by the Exchange Act Reports, as of the date referred to therein, the Company does not have outstanding
any options to purchase, or any rights or warrants to subscribe for, or any securities or obligations convertible into, or exchangeable
for, or any contracts or commitments to issue or sell, any shares of capital stock or other securities.

 

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(J) Authorization;
Enforceability. The Company has full legal right, power and authority to execute, deliver and perform its obligations under
each Transaction Document and to perform the transactions contemplated thereby. This Agreement has been duly authorized, executed
and delivered by the Company and is the legal, valid and binding agreement of the Company enforceable in accordance with its terms,
except to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ rights generally and by general equitable principles. The Note has been duly authorized by the Company and, when
executed and delivered by the Company, will constitute the legal, valid and binding agreement of the Company enforceable in accordance
with its terms, except to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors’ rights generally and by general equitable principles. The Security Agreement has been duly
authorized by the Company and, when the LSA Second Amendment has been executed and delivered by the Company, will constitute the
legal, valid and binding agreement of the Company enforceable in accordance with its terms, except to the extent that enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally
and by general equitable principles. The Amended Warrant Agreement has been duly authorized by the Company and, when the Warrant
Amendment has been executed and delivered by the Company, will constitute the legal, valid and binding agreement of the Company
enforceable in accordance with its terms, except to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights generally and by general equitable principles.

 

(K) Authorization
of Shares. The Shares are duly authorized and, when issued and delivered upon conversion of the Note in accordance with its
terms, will be duly and validly issued and fully paid and nonassessable, free and clear of any pledge, lien, encumbrance, security
interest or other claim, including any statutory or contractual preemptive rights, resale rights, rights of first refusal or other
similar rights, and will be registered pursuant to Section 12 of the Exchange Act. The Shares, when issued, will conform to the
description thereof set forth in the Exchange Act Reports. The shares of Common Stock issuable upon exercise of the Amended Warrant
Agreement are duly authorized and, when issued and delivered upon exercise of the Amended Warrant Agreement in accordance with
its terms, will be duly and validly issued and fully paid and nonassessable, free and clear of any pledge, lien, encumbrance, security
interest or other claim, including any statutory or contractual preemptive rights, resale rights, rights of first refusal or other
similar rights, and will be registered pursuant to Section 12 of the Exchange Act.

 

(L) No Consents Required.
No consent, approval, authorization, order, registration or qualification of or with any court or arbitrator or governmental or
regulatory authority is required for the execution, delivery and performance by the Company of the Transaction Documents, including
the issuance and sale by the Company of the Note and the issuance of the Shares upon conversion of the Note, except for such consents,
approvals, authorizations, orders and registrations or qualifications as may be required under applicable state securities laws.

 

(M) No Preferential
Rights. Except as set forth in the Exchange Act Reports, (i) no person, as such term is defined in Rule 1-02 of Regulation
S-X promulgated under the Securities Act (each, a “Person”), has the right, contractual or otherwise, to cause
the Company to issue or sell to such Person any Common Stock or shares of any other capital stock or other securities of the Company
(other than upon exercise of outstanding options or warrants to purchase Common Stock or upon the exercise of options or vesting
restricted stock units or stock awards that may be granted from time to time under the Company’s stock option or equity incentive
plans); (ii) no Person has any preemptive rights, resale rights, rights of first refusal, rights of co-sale, or any other rights
(whether pursuant to a “poison pill” provision or otherwise) to purchase any Common Stock or shares of any other capital
stock or other securities of the Company; and (iii) no Person has the right, contractual or otherwise, to require the Company to
register under the Securities Act any Common Stock or shares of any other capital stock or other securities of the Company.

 

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(N) Independent Public
Accounting Firm. KMJ Corbin & Company LLP (the “Accountant”), whose report on the consolidated financial
statements of the Company is filed with the Commission as part of the Company’s most recent Annual Report on Form 10-K included
in the Exchange Act Reports, are and, during the periods covered by their report, were an independent registered public accounting
firm within the meaning of the Securities Act and the Public Company Accounting Oversight Board (United States). To the Company’s
knowledge, the Accountant is not in violation of the auditor independence requirements Rule 2-01 of Regulation S-X under the Exchange
Act with respect to the Company.

 

(O) Enforceability
of Agreements. All agreements between the Company and third parties expressly referenced in the Exchange Act Reports are legal,
valid and binding obligations of the Company enforceable in accordance with their respective terms, except to the extent that (i)
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’
rights generally and by general equitable principles; (ii) the indemnification provisions of certain agreements may be limited
by federal or state securities laws or public policy considerations in respect thereof; and (iii) any lack of enforceability would
not, individually or in the aggregate, have a Material Adverse Effect.

 

(P) No Litigation.
Except as set forth in the Exchange Act Reports, there are no pending legal, governmental or regulatory actions, suits, proceedings,
audits or investigations to which the Company or a Subsidiary is a party or to which any property of the Company or any of its
Subsidiaries is the subject that, individually or in the aggregate, if determined adversely to the Company or any of its Subsidiaries,
would have a Material Adverse Effect, and, to the Company’s knowledge, no such actions, suits, proceedings, audits or investigations
are threatened or contemplated by any legal, governmental or regulatory authority or threatened by others; and (i) there are no
current or pending legal, governmental or regulatory audits or investigations, actions, suits or proceedings that are required
under the Exchange Act to be described in any Exchange Act Report that are not so described; and (ii) there are no contracts or
other documents that are required under the Exchange Act to be filed as exhibits to any Exchange Act Report that are not so filed.

 

(Q) Consents and
Permits. Except as disclosed in the Exchange Act Reports, the Company and its Subsidiaries have made all filings, applications
and submissions required by, possesses and are operating in compliance with, all approvals, licenses, certificates, certifications,
clearances, consents, grants, exemptions, marks, notifications, orders, permits and other authorizations issued by, the appropriate
federal, state or foreign governmental or regulatory authorities (including, without limitation, the United States Food and Drug
Administration (the “FDA”)) necessary for the ownership or lease of their respective properties or to conduct
their respective businesses as described in the Exchange Act Documents (collectively, “Permits”), except for
such Permits the failure of which to possess, obtain or make the same would not, individually or in the aggregate, have a Material
Adverse Effect; the Company and its Subsidiaries are in compliance with the terms and conditions of all such Permits, except where
the failure to be in compliance would not, individually or in the aggregate, have a Material Adverse Effect; all of the Permits
are valid and in full force and effect, except where any invalidity would not, individually or in the aggregate, have a Material
Adverse Effect; and neither the Company nor any of its Subsidiaries has received any written notice relating to the limitation,
revocation, cancellation, suspension, modification or non-renewal of any such Permit which, individually or in the aggregate, if
the subject of an unfavorable decision, ruling or finding, would have a Material Adverse Effect, and neither has any reason to
believe that any such Permit will not be renewed in the ordinary course.

 

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(R) Regulatory Filings.
Except as disclosed in the Exchange Act Reports, neither the Company nor any of its Subsidiaries has failed to file with the applicable
regulatory authorities (including, without limitation, the FDA, or any foreign, federal, state, provincial or local governmental
or regulatory authority performing functions similar to those performed by the FDA) any required filing, declaration, listing,
registration, report or submission, except for such failures that would not, individually or in the aggregate, have a Material
Adverse Effect; except as disclosed in the Exchange Act Reports, all such filings, declarations, listings, registrations, reports
or submissions were in compliance with applicable laws when filed and no deficiencies have been asserted by any applicable regulatory
authority with respect to any such filings, declarations, listings, registrations, reports or submissions, except for any deficiencies
that would not, individually or in the aggregate, have a Material Adverse Effect.

 

(S) Intellectual
Property. Except as disclosed in the Exchange Act Reports, the Company and its Subsidiaries own, possess, have licensed or
have other rights to use all foreign and domestic patents, patent applications, trade and service marks, trade and service mark
registrations, trade names, copyrights, licenses, inventions, trade secrets, technology, Internet domain names, know-how and other
intellectual property (collectively, the “Intellectual Property”), necessary for the conduct of their respective
businesses as now conducted except to the extent that the failure to own, possess, have licensed or otherwise hold adequate rights
to use such Intellectual Property would not, individually or in the aggregate, have a Material Adverse Effect. Except as disclosed
in the Exchange Act Reports, (i) there are no rights of third parties to any such Intellectual Property of the Company and its
Subsidiaries; (ii) to the Company’s knowledge, there is no infringement by third parties of any such Intellectual Property;
(iii) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others challenging
the Company’s and its Subsidiaries’ rights in or to any such Intellectual Property, and the Company is unaware of any
facts which could form a reasonable basis for any such action, suit, proceeding or claim; (iv) there is no pending or, to the Company’s
knowledge, threatened action, suit, proceeding or claim by others challenging the validity or scope of any such Intellectual Property;
(v) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others that the Company
and its Subsidiaries infringe or otherwise violate any patent, trademark, copyright, trade secret or other proprietary rights of
others; (vi) to the Company’s knowledge, there is no third-party U.S. patent or published U.S. patent application that contains
claims for which an Interference Proceeding (as defined in 35 U.S.C. §135) has been commenced against any patent or patent
application described in any Exchange Act Report as being owned by or licensed to the Company or any Subsidiary; and (vii) the
Company and its Subsidiaries have complied with the terms of each agreement pursuant to which Intellectual Property has been licensed
to the Company or its Subsidiaries, and all such agreements are in full force and effect, except, in the case of any of clauses
(i) through(vii) above, for any such infringement by third parties or any such pending or threatened suit, action, proceeding or
claim as would not, individually or in the aggregate, result in a Material Adverse Effect.

 

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(T) No Material Defaults.
Neither the Company nor any of the Subsidiaries has defaulted on any installment on indebtedness for borrowed money or on any rental
on one or more long-term leases, which defaults would, individually or in the aggregate, have a Material Adverse Effect. The Company
has not filed a report pursuant to Section 13(a) or 15(d) of the Exchange Act since the filing of its last Annual Report on Form
10-K, indicating that it (i) has failed to pay any dividend or sinking fund installment on preferred stock; or (ii) has defaulted
on any installment on indebtedness for borrowed money or on any rental on one or more long-term leases, which defaults would, individually
or in the aggregate, have a Material Adverse Effect.

 

(U) Certain Market
Activities. Neither the Company nor any of the Subsidiaries, nor any of their respective directors, officers or controlling
persons, has taken, directly or indirectly, any action designed, or that has constituted or might reasonably be expected to cause
or result in, under the Exchange Act or otherwise, the stabilization or manipulation of the price of any security of the Company
to facilitate the sale or resale of the Note or the Shares.

 

(V) No Reliance.
The Company has not relied upon the Purchaser or legal counsel for the Purchaser for any legal, tax or accounting advice in connection
with the offering and sale of the Note or the Shares.

 

(W) Taxes. The
Company and each of its Subsidiaries have filed all federal, state, local and foreign tax returns which have been required to be
filed and paid all taxes shown thereon through the date hereof, to the extent that such taxes have become due and are not being
contested in good faith, except where the failure to so file or pay would not, individually or in the aggregate, have a Material
Adverse Effect. Except as otherwise disclosed in in or contemplated by the Exchange Act Reports, no tax deficiency has been determined
adversely to the Company or any of its Subsidiaries which has had, or would have, individually or in the aggregate, a Material
Adverse Effect. The Company has no knowledge of any federal, state or other governmental tax deficiency, penalty or assessment
which has been or might be asserted or threatened against it or any of its Subsidiaries that would, individually or in the aggregate,
have a Material Adverse Effect.

 

(X) Title to Real
and Personal Property. Neither the Company nor any of its Subsidiaries own any real property. Except as set forth in the Exchange
Act Reports, the Company and its Subsidiaries have good and valid title to all personal property described in the Exchange Act
Reports as being owned by them that are material to the businesses of the Company or such Subsidiary, in each case free and clear
of all liens, encumbrances and claims, except those matters that (i) do not materially interfere with the use made and proposed
to be made of such property by the Company and any of its Subsidiaries; or (ii) would not, individually or in the aggregate, have
a Material Adverse Effect. Any real or personal property described in the Exchange Act Reports as being leased by the Company or
its Subsidiaries is held by them under valid, existing and enforceable leases, except those that (x) do not materially interfere
with the use made or proposed to be made of such property by the Company or any of its Subsidiaries; or (y) would not, individually
or in the aggregate, result in a Material Adverse Effect.

 

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(Y) Environmental
Laws. Except as set forth in the Exchange Act Reports, the Company and its Subsidiaries (i) are in compliance with any and
all applicable federal, state, local and foreign laws, rules, regulations, decisions and orders relating to the protection of human
health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental
Laws”); (ii) have received and are in compliance with all permits, licenses or other approvals required of them under
applicable Environmental Laws to conduct their respective businesses as described in the Exchange Act Reports; and (iii) have not
received written notice of any actual or potential liability for the investigation or remediation of any disposal or release of
hazardous or toxic substances or wastes, pollutants or contaminants, except, in the case of any of clauses (i), (ii) or (iii) above,
for any such failure to comply or failure to receive required permits, licenses, other approvals or liability as would not, individually
or in the aggregate, have a Material Adverse Effect.

 

(Z) Disclosure Controls.
The Company and each of its Subsidiaries maintain systems of internal accounting controls designed to provide reasonable assurance
that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles
and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or
specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences. The Company’s internal control over financial reporting
is effective, and the Company is not aware of any material weaknesses in its internal control over financial reporting (other than
as set forth in the Exchange Act Reports). Since the date of the latest audited financial statements of the Company included in
the Exchange Act Reports, there has been no change in the Company’s internal control over financial reporting that has materially
affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting (other than
as set forth in the Exchange Act Reports). The Company has established disclosure controls and procedures (as defined in Rules
13a-15 and 15d-15 under the Exchange Act) for the Company and designed such disclosure controls and procedures to provide reasonable
assurance that material information relating to the Company and each of its Subsidiaries is made known to the certifying officers
by others within those entities, particularly during the period in which the Company’s Annual Report on Form 10-K or Quarterly
Report on Form 10-Q, as the case may be, is being prepared. The Company’s certifying officers have evaluated the effectiveness
of the Company’s disclosure controls and procedures as of September 30, 2015, and the Company has presented, in its latest
Quarterly Report on Form 10-Q included in the Exchange Act Report, the conclusions of the certifying officers about the effectiveness
of the disclosure controls and procedures based on such evaluation, and the disclosure controls and procedures are effective as
of September 30, 2015. Since September 30, 2015, there have been no significant changes in the Company’s internal controls
(as such term is used in Item 307(b) of Regulation S-K under the Securities Act) or, to the Company’s knowledge, in other
factors that could significantly affect the Company’s internal controls.

 

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(AA) Sarbanes-Oxley.
There is and has been no failure on the part of the Company or any of the Company’s directors or officers, in their capacities
as such, to comply in all material respects with any applicable provisions of the Sarbanes-Oxley Act of 2002, as amended (the “Sarbanes-Oxley
Act”), and the rules and regulations promulgated thereunder. Each of the principal executive officer and the principal
financial officer of the Company (or each former principal executive officer of the Company and each former principal financial
officer of the Company, as applicable) has made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act with
respect to all reports, schedules, forms, statements and other documents required to be filed by the Company or furnished by Company
to the Commission. For purposes of the preceding sentence, “principal executive officer” and “principal financial
officer” shall have the meanings given to such terms in the Sarbanes-Oxley Act.

 

(BB) Finder’s
Fees. Neither the Company nor any of the Subsidiaries has incurred any liability for any finder’s fees, brokerage commissions
or similar payments in connection with the transactions contemplated by this Agreement.

 

(CC) Investment Company
Act. Neither the Company nor any of the Subsidiaries is or, after giving effect to the offering and sale of the Note, will
be an “investment company” or an entity “controlled” by an “investment company,” as such terms
are defined in the Investment Company Act of 1940, as amended.

 

(DD) Operations.
The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial
record keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money
laundering statutes of all jurisdictions to which the Company or its Subsidiaries are subject, the rules and regulations thereunder
and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively,
the “Money Laundering Laws”); and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect to the Money Laundering Laws
is pending or, to the knowledge of the Company, threatened, and, to the Company’s knowledge no such action, suit or proceeding
involving any of officer, director or affiliate of the Company or any of its Subsidiaries is pending or threatened.

 

(EE) Off-Balance
Sheet Arrangements. There are no transactions, arrangements and other relationships between or among the Company, any of its
affiliates or any unconsolidated entity, including, but not limited to, any structural finance, special purpose or limited purpose
entity (each, an “Off-Balance Sheet Transaction”) that could reasonably be expected to materially affect the Company’s
liquidity or the availability of or requirements for its capital resources, including those Off-Balance Sheet Transactions described
in the Commission’s Statement about Management’s Discussion and Analysis of Financial Conditions and Results of Operations
(Release Nos. 33-8056; 34-45321; FR-61), and that are required to be described in the Exchange Act Reports but that have not been
described as required.

 

    	- 10 - 

    	 

    

 

(FF) ERISA. To
the Company’s knowledge, each material employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), that is maintained, administered or contributed to by the
Company or any of its affiliates for employees or former employees of the Company and any of its Subsidiaries has been maintained
in material compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including,
but not limited to, ERISA and the Internal Revenue Code of 1986, as amended (the “Code”); no prohibited transaction,
within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred which would result in a material liability
to the Company or any of its Subsidiaries with respect to any such plan, excluding transactions effected pursuant to a statutory
or administrative exemption; and for each such plan that is subject to the funding rules of Section 412 of the Code or Section
302 of ERISA, no “accumulated funding deficiency” (as defined in Section 412 of the Code) has been incurred, whether
or not waived, and the fair market value of the assets of each such plan (excluding, for these purposes, accrued but unpaid contributions)
exceeds the present value of all benefits accrued under such plan determined using reasonable actuarial assumptions.

 

(GG) Forward-Looking
Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act or Section 21E of the Exchange
Act) (a “Forward-Looking Statement”) contained in the Exchange Act Reports has been made or reaffirmed without
a reasonable basis or has been disclosed other than in good faith.

 

(HH) Margin Rules.
Neither the issuance, sale and delivery of the Note or the Shares nor the application of the proceeds thereof by the Company will
violate Regulation T, U or X of the Board of Governors of the Federal Reserve System or any other regulation of such Board of Governors.

 

(II) Insurance.
The Company and each of its Subsidiaries carry, or are covered by, insurance in such amounts and covering such risks as the Company
and each of its Subsidiaries reasonably believe are adequate for the conduct of their respective businesses and as is customary
for companies engaged in similar businesses in similar industries.

 

(JJ) No Improper
Practices. (i) Neither the Company nor the Subsidiaries, nor, to the Company’s knowledge, any of their respective executive
officers, has, in the past five years, made any unlawful contributions to any candidate for any political office (or failed fully
to disclose any contribution in violation of law) or made any contribution or other payment to any official of, or candidate for,
any federal, state, municipal or foreign office or other person charged with similar public or quasi-public duty in violation of
any law or of the character required to be disclosed in any Exchange Act Report; (ii) no relationship, direct or indirect, exists
between or among the Company or any Subsidiary or any affiliate of any of them, on the one hand, and the directors, officers or
stockholders of the Company or any Subsidiary, on the other hand, that is required by the Exchange Act to be described in any Exchange
Act Report that is not so described; (iii) except as described in the Exchange Act Reports, there are no material outstanding loans
or advances or material guarantees of indebtedness by the Company or any Subsidiary to or for the benefit of any of their respective
officers or directors or any of the members of the families of any of them; (iv) the Company has not offered, or caused any placement
agent to offer, Common Stock to any person with the intent to influence unlawfully (x) a customer or supplier of the Company or
any Subsidiary to alter the customer’s or supplier’s level or type of business with the Company or any Subsidiary;
or (y) a trade journalist or publication to write or publish favorable information about the Company or any Subsidiary or any of
their respective products or services; and (v) neither the Company nor any Subsidiary, nor, to the Company’s knowledge, any
employee or agent of the Company or any Subsidiary, has made any payment of funds of the Company or any Subsidiary or received
or retained any funds in violation of any law, rule or regulation (including, without limitation, the Foreign Corrupt Practices
Act of 1977), which payment, receipt or retention of funds is of a character required to be disclosed in any Exchange Act Report.

 

    	- 11 - 

    	 

    

 

(KK) No Conflicts.
Neither the execution and delivery of the Transaction Documents, nor the issuance, offering or sale of the Note or the Shares,
nor the consummation of any of the transactions contemplated by the Transaction Documents, nor the compliance by the Company with
the terms and provisions thereof, will conflict with, or will result in a breach of, any of the terms and provisions of, or has
constituted or will constitute a default under, or has resulted in or will result in the creation or imposition of any lien, charge
or encumbrance upon any property or assets of the Company pursuant to the terms of any contract or other agreement to which the
Company or any of its Subsidiaries may be bound or to which any of their respective properties or assets are subject, except (i)
liens, charges or encumbrances pursuant to the Transaction Documents, (ii) such conflicts, breaches or defaults as have been waived;
and (iii) such conflicts, breaches and defaults that would not, individually or in the aggregate, have a Material Adverse Effect;
nor will any such action result in (x) any violation of the provisions of the organizational or governing documents of the Company
or any of its Subsidiaries; or (y) any violation of the provisions of any statute or any order, rule or regulation applicable to
the Company or any of its Subsidiaries, or of any court or of any federal, state or other regulatory authority or other government
body having jurisdiction over the Company or any of its Subsidiaries, other than, with respect to this clause (y), any violation
that would not, individually or in the aggregate, have a Material Adverse Effect.

 

(LL) Sanctions.

 

(i) Neither
the Company nor any of its Subsidiaries (collectively, the “Entity”), or any director, officer, employee, agent,
affiliate or representative of the Entity, is a government, individual or entity (in this paragraph (LL), a “Person”)
that is or is owned or controlled by a Person that is:

 

(1) the subject
of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control, the United
Nations Security Council, the European Union, Her Majesty’s Treasury or other relevant sanctions authority (collectively,
“Sanctions”); or

 

(2) located,
organized or resident in a country or territory that is the subject of Sanctions (including, without limitation, Burma/Myanmar,
Cuba, Iran, North Korea, Sudan and Syria).

 

(ii) The Entity
represents and covenants that it will not, directly or indirectly, use the proceeds of the offering of the Note and the Shares,
or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person:

 

(1) to fund
or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such funding
or facilitation, is the subject of Sanctions; or

 

    	- 12 - 

    	 

    

 

(2) in any other
manner that will result in a violation of Sanctions by any Person (including the Purchaser).

 

(iii) The
Entity represents and covenants that, except as detailed in the Exchange Act Reports, for the past five (5) years, it has not engaged
in, is not now engaging in, and will not engage in, any dealings or transactions with any Person, or in any country or territory,
that at the time of the dealing or transaction is or was the subject of Sanctions.

 

(MM) Stock Transfer
Taxes. On each Closing Date, all stock transfer or other taxes (other than income taxes) that are required to be paid in connection
with the sale and transfer of the Note or the Shares to be sold hereunder will be, or will have been, fully paid or provided for
by the Company and all laws imposing such taxes will be or will have been fully complied with.

 

(NN) Compliance with
Laws. Except as set forth in the Exchange Act Reports, each of the Company and its Subsidiaries: (i) is, and, at all times,
has been, in compliance with all statutes, rules, or regulations applicable to the ownership, testing, development, manufacture,
packaging, processing, use, distribution, marketing, labeling, promotion, sale, offer for sale, storage, import, export or disposal
of any product manufactured or distributed by the Company or its Subsidiaries (“Applicable Laws”), except as
would not, individually or in the aggregate, result in a Material Adverse Effect; (ii) has not received any FDA Form 483, notice
of adverse finding, warning letter, untitled letter or other correspondence or notice from the FDA or any other governmental authority
alleging or asserting noncompliance with any Applicable Laws or any licenses, certificates, approvals, clearances, authorizations,
permits and supplements or amendments thereto required by any such Applicable Laws (“Authorizations”), which,
after the Company’s remedial activity, would, individually or in the aggregate, have a Material Adverse Effect; (iii) possess
all material Authorizations, and such Authorizations are valid and in full force and effect, and none of the Company or any of
its Subsidiaries is in material violation of any term of any such Authorizations; (iv) has not received notice of any claim, action,
suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any governmental authority or third party
alleging that any product operation or activity is in violation of any Applicable Laws or Authorizations, and has no knowledge
that any such governmental authority or third party is considering any such claim, litigation, arbitration, action, suit, investigation
or proceeding; (v) has not received notice that any governmental authority has taken, is taking or intends to take action to limit,
suspend, modify or revoke any Authorization and has no knowledge that any such governmental authority is considering such action;
(vi) has filed, obtained, maintained or submitted all material reports, documents, forms, notices, applications, records, claims,
submissions and supplements or amendments as required by any Applicable Laws or Authorizations, and all such reports, documents,
forms, notices, applications, records, claims, submissions and supplements or amendments were complete and correct on the date
filed (or were corrected or supplemented by a subsequent submission); and (vii) has not, either voluntarily or involuntarily, initiated,
conducted, or issued or caused to be initiated, conducted or issued, any recall, market withdrawal or replacement, safety alert,
post sale warning, “dear healthcare provider” letter or other notice or action relating to the alleged lack of safety
or efficacy of any product or any alleged product defect or violation, and, to the Company’s knowledge, no third party has
initiated, conducted or intends to initiate any such notice or action.

 

    	- 13 - 

    	 

    

 

Any certificate signed
by an officer of the Company or any of its Subsidiaries and delivered to the Purchaser or to counsel for the Purchaser pursuant
to or in connection with this Agreement will be deemed to be a representation and warranty by the Company to the Purchaser as to
the matters set forth therein.

 

Section 3.
Representations of the Purchaser.

 

The Purchaser represents
and warrants to, and agrees with the Company that, as of the date of this Agreement and as of the Closing Time, unless such representation,
warranty or agreement speaks as of a different time:

 

(A) Investor Status.
The Purchaser is an institutional “accredited investor” within the meaning of Rule 501(a) of Regulation D promulgated
under the Securities Act.

 

(B) Experience of
the Purchaser. The Purchaser is knowledgeable, sophisticated and experienced in financial and business matters, and in making
decisions with respect to investments in securities representing an investment decision, like that involved in the purchase of
the Note, including investments in securities issued by the Company and comparable entities, has the ability to bear the economic
risks of an investment in the Note, and has undertaken an independent analysis of the merits and the risks of an investment in
the Note, based on the Purchaser’s own financial circumstances. The Purchaser has had the opportunity to request, receive,
review and consider all information it deems relevant in making an informed decision to purchase the Note and to ask questions
of, and receive answers from, the Company concerning such information.

 

(C) No Public Sale
or Distribution. The Purchaser is acquiring the Note, and upon conversion of the Note will acquire the Shares issuable upon
conversion of the Note, in the ordinary course of its business and for its own account for investment only and with no present
intention of “distributing” the Note or the Shares, or participating in any arrangement or understanding with any other
persons regarding the “distribution” of the Note or the Shares, in each case within the meaning of the Securities Act.
The Purchaser will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to
buy, purchase or otherwise acquire or take a pledge of) the Note or any Shares, nor will the Purchaser engage in any short sale
that results in a disposition of the Note or any Shares by the Purchaser, except if (i) the transferee of the Note or the Shares,
as applicable, has agreed in writing for the benefit of the Company to be bound by this Section 3; (ii) such offer, sale,
pledge, transfer or other disposition is in compliance with the Securities Act and the rules and regulations of the Commission
thereunder and any applicable state securities or “blue sky” laws; and (iii) if such sale, pledge, transfer or other
disposition is not registered by an effective registration statement under the Securities Act and if reasonably requested by the
Company, the Purchaser shall have furnished the Company with such documents reasonably requested by the Company, including without
limitation an opinion of counsel reasonably satisfactory to the Company that such sale, pledge, transfer or other disposition will
not require registration under the Securities Act; provided, however, that (x) clause (i) above will not apply to, and,
except in unusual circumstances, the Company will not be entitled pursuant to clause (iii) above to request or require any documentation
other than a representation letter in customary form for, any sale, pledge, transfer or other disposition made pursuant to Rule
144 promulgated under the Securities Act (or any successor thereto); and (y) clause (i) above will not apply to, and the Company
will not be entitled to request or require such an opinion of counsel or any other documentation or information if such Note or
Shares, as applicable, do not bear a Restricted Note Legend (as defined in the Note) or any similar legend.

 

    	- 14 - 

    	 

    

 

(D) Information.
The Purchaser has, in connection with its decision to purchase the Note, relied solely upon the Exchange Act Reports, the representations
and warranties of the Company contained herein and the information referred to in Section 3(B).

 

(E) Reliance on Exemptions.
The Purchaser understands that the Note is being offered and sold to it in reliance upon specific exemptions from the registration
requirements of the Securities Act, the rules and regulations of the Commission thereunder and state securities or “blue
sky” laws and that the Company is relying upon the truth and accuracy of, and the Purchaser’s compliance with, the
representations, warranties and agreements of the Purchaser set forth herein in order to determine the availability of such exemptions
and the eligibility of the Purchaser to acquire the Note.

 

(F) Confidentiality.
The Purchaser shall not reproduce or distribute this Agreement or any other offering materials or other information provided by
the Company in connection with the Purchaser’s consideration of its investment in the Note or the Company, in whole or in
part, or divulge or discuss any of their contents, except to its financial, investment or legal advisors in connection with its
proposed investment in the Note. Further, the Purchaser understands that the existence and nature of all conversations and presentations,
if any, regarding the Company and this offering must be kept strictly confidential, and acknowledges and agrees that such information
has been submitted to the Purchaser solely for its confidential use and shall be used by the Purchaser for the sole purpose of
evaluating an investment in the Note and the Shares. The Purchaser understands that the federal securities laws impose restrictions
on trading based on information regarding this offering. In addition, the Purchaser hereby acknowledges that unauthorized disclosure
of information regarding this offering may result in a violation of U.S. federal securities laws. The foregoing obligations will
terminate upon the Company’s issuance of a press release or press releases or filing or furnishing of a Current Report on
Form 8-K disclosing the offering (including, without limitation, pursuant to Section 4(B)). The foregoing agreements shall
not apply to any information that is or becomes publicly available through no fault of the Purchaser, or that the Purchaser is
legally required to disclose; provided, however, that if the Purchaser is requested or ordered to disclose any such information
pursuant to any court or other government order or any other applicable legal or regulatory procedure, it shall provide the Company
with prompt notice of any such request or order.

 

(G) No Legal, Tax
and Investment Advice. The Purchaser understands that nothing in the Agreement or any other materials presented to the Purchaser
in connection with the purchase and sale of the Note constitutes legal, tax or investment advice. The Purchaser has consulted such
legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase
of the Note.

 

    	- 15 - 

    	 

    

 

(H) Risk of Loss.
The Purchaser understands that its investment in the Note involves a significant degree of risk, including a risk of total loss
of the Purchaser’s investment. The Purchaser understands that the market price of the shares of Common Stock has been volatile
and that no representation is being made as to the future value of the Shares.

 

(I) Legend. The
Purchaser understands that, until such time as the Note or the Shares may be sold pursuant to Rule 144 under the Securities Act
without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Note and
the Shares will bear a restrictive legend in substantially the following form:

 

“THE ISSUANCE AND SALE OF NEITHER
THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, OR (B) AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE
TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OR (II) UNLESS PURSUANT TO RULE 144 (OR ANY SUCCESSOR
THERETO) UNDER THE SECURITIES ACT.”

 

(J) Residency.
The Purchaser’s principal executive offices are in the jurisdiction set forth in Section 7(A) of this Agreement.

 

(K) Organization;
Validity; Enforcement. The Purchaser has full legal right, power and authority to execute, deliver and perform its obligations
under this Agreement and to perform the transactions contemplated by this Agreement. The execution, delivery and performance of
this Agreement by the Purchaser and the consummation of the transactions herein contemplated will not violate any provision of
the organizational documents of the Purchaser or conflict with, result in the breach or violation of, or constitute, either by
itself or upon notice or the passage of time or both, a default under any material agreement, mortgage, deed of trust, lease, franchise,
license, indenture, permit or other instrument to which the Purchaser is a party, or any statute or any judgment, decree, order,
rule or regulation of any court or any regulatory body or other governmental agency or body applicable to the Purchaser, except,
with respect to any such agreement, mortgage, deed of trust, lease, franchise, license, indenture, permit, other instrument, statute,
judgment, decree, order, rule or regulation, as would not, individually or in the aggregate, materially interfere with consummation
of the transactions contemplated hereby. No consent, approval, authorization or other order of any court, regulatory body or other
governmental body is required on the part of the Purchaser for the execution, delivery and performance of this Agreement by the
Purchaser, except in each case as would not, individually or in the aggregate, materially interfere with consummation of the transactions
contemplated hereby. Upon the execution and delivery of this Agreement by the parties hereto, this Agreement shall constitute the
legal, valid and binding agreement of the Purchaser enforceable against the Purchaser in accordance with its terms, except to the
extent that enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’
rights generally and by general equitable principles.

 

    	- 16 - 

    	 

    

 

(L) Short Sales.
Since the time the Purchaser was first contacted about the offering of the Note and the transactions contemplated hereby, the Purchaser
has not taken, and, prior to the Closing Time, the Purchaser shall not take, any action that has caused or will cause the Purchaser
to have, directly or indirectly, sold or agreed to sell any shares of Common Stock, effected any short sale, whether or not against
the box, established any “put equivalent position” (as defined in Rule 16a-1(h) under the Exchange Act) with respect
to shares of Common Stock, granted any other right (including, without limitation, any put or call option) with respect to shares
of Common Stock or with respect to any security that includes, relates to or derives any significant part of its value from shares
of Common Stock, in each case in violation of the Securities Act.

 

(M) Disclosure.
The Purchaser acknowledges and agrees that the Company does not make nor has made any representations or warranties with respect
to the transactions contemplated hereby or to its business, properties, operations and prospects, other than those specifically
set forth in Section 2 of this Agreement.

 

(N) Market Standoff.
The Purchaser agrees that, for so long as it “beneficially owns” (within the meaning of Rule 13d-3 under the Exchange
Act) more than five percent (5%) of the shares of Common Stock then outstanding, it, at the request of the applicable managing
underwriter, will not, directly or indirectly, without the prior written consent of such managing underwriter, during the period
commencing on the date of the final prospectus relating to an underwritten public offering of Common Stock, or of securities convertible
into or exercisable for Common Stock, and ending on the date specified by the managing underwriter of such offering (such period
not to exceed ninety (90) days) (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase
any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, any shares
of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock (whether such shares or any
such securities are then owned by the Purchaser or are thereafter acquired), or (ii) enter into any swap or other arrangement that
transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any such
transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or such other securities, in cash
or otherwise; provided, however, that (i) the foregoing provisions of this Section 3(N) (x) shall not apply
to the sale of any shares of Common Stock to an underwriter pursuant to an underwriting agreement, and (y) shall only be applicable
to the Purchaser if all officers and directors and each “beneficial owner” of more than five percent (5%) of the outstanding
Common Stock of the Company enter into similar agreements; and (ii) the restrictions imposed by this Section 3(N) will be
subject to customary exceptions and will be no more restrictive than any such similar agreements (and, for the avoidance of doubt,
any exceptions, waivers or other forbearances granted to any such officer, director or beneficial owner, whether pursuant to such
similar agreements or otherwise, will equally apply to the Purchaser). The underwriters in connection with any such underwritten
public offering of Common Stock are intended third party beneficiaries of this Section 3(N) and shall have the right, power
and authority to enforce the provisions of this Section 3(N) as though they were a party hereto. In order to enforce the
foregoing covenant, the Company may impose stop-transfer instructions with respect to the Note and the Shares until the end of
such period. Notwithstanding anything to the contrary in the foregoing, this Section 3(N) will cease to apply upon the earlier
of (x) May 11, 2021; and (y) the time the Purchaser no longer “beneficially owns” any Notes or Shares issued upon conversion
of the Notes.

 

    	- 17 - 

    	 

    

 

Section 4.
Covenants of the Company.

 

(A) Listing of Shares.
The Company will use its reasonable best efforts to cause the Shares, when issued upon conversion of the Notes, to be listed on
the Exchange.

 

(B) Disclosure of
All Material Non-Public Information. At before to 5:00 p.m., New York City time, on the first business day after the date of
this Agreement, the Company issue a press release or file or furnish a Current Report on Form 8-K disclosing all material non-public
information, if any, with respect to the offer and sale of the Note and Shares or otherwise communicated by the Company or its
affiliates, or anyone acting on their behalf, to the Purchaser in connection with the transactions contemplated by this Agreement.

 

(C) Blue Sky and
Other Qualifications. The Company will use its commercially reasonable efforts to qualify the Note and the Shares for offering
and sale, or to obtain an exemption for the Note and the Shares to be offered and sold, under the applicable securities laws of
such states and other jurisdictions (domestic or foreign) may be necessary in order to issue and sell the Note to the Purchaser
pursuant to this Agreement and to issue the Shares upon conversion of the Note, and to maintain such qualifications and exemptions
in effect for so long as required for the distribution of the Note and the issuance of the Shares upon conversion thereof; provided,
however, that the Company will not be obligated to file any general consent to service of process or to qualify as a foreign
corporation or as a dealer in securities in any jurisdiction in which it has theretofore so filed or in which it is not so qualified,
as applicable, or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so
subject. In each jurisdiction in which the Note or the Shares have been so qualified or exempt, the Company will file such statements
and reports as may be required by the laws of such jurisdiction to continue such qualification or exemption, as the case may be,
in effect for so long as required for the distribution of the Note and the issuance of the Shares upon conversion thereof.

 

(D) Payment of Expenses.
The Company will pay all expenses incident to the performance of its obligations under this Agreement and the Note, including (i)
the preparation, issuance and delivery of the certificates, if any, for the Note and the Shares, including any stock or other transfer
taxes and any capital duties, stamp duties or other duties or taxes payable upon the sale, issuance or delivery of the Note to
the Purchaser or the issuance of the Shares upon conversion of the Note; (ii) the fees and disbursements of the counsel, accountants
and other advisors to the Company; (ii) the reasonable and documented fees and expenses of the Purchaser including, but not limited
to, the fees and expenses of counsel to the Purchaser, payable upon the execution of this Agreement or thereafter upon demand;
(iii) the qualification or exemption of the Note and the Shares under securities laws in accordance with Section 4(C), including
filing fees; (iv) the fees and expenses of the transfer agent and registrar for the Common Stock; and (v) the fees and expenses
incurred in connection with the listing of the Shares on the Exchange.

 

    	- 18 - 

    	 

    

 

Section 5.
Conditions to the Purchaser’s Obligations.

 

The obligations of the
Purchaser under this Agreement will be subject to the satisfaction (or waiver by the Purchaser in its sole discretion) of the following
conditions precedent:

 

(A) Accuracy of Representations.
The representations and warranties of the Company in this Agreement are accurate and correct as of, and as if made at, the Closing
Time.

 

(B) Performance of
Company’s Obligations. The Company shall have duly performed all of its obligations under this Agreement as are required
to be completed at or before the Closing Time.

 

(C) No Material Notices.
None of the following events shall have occurred and be continuing: (i) the receipt by the Company of any notification with respect
to the suspension of the qualification or exemption from qualification of any of the Note or Shares for sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose; or (ii) the occurrence of any event that causes any Exchange
Act Report to contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading.

 

(D) Material Changes.
Except as contemplated in the Exchange Act Reports, there shall not have been any material adverse change in the authorized capital
stock of the Company or any Material Adverse Effect or any development that would, individually or in the aggregate, reasonably
be expected to cause a Material Adverse Effect, or a downgrading in or withdrawal of the rating assigned to any of the Company’s
securities (other than asset-backed securities) by any rating organization or a public announcement by any rating organization
that it has under surveillance or review its rating of any of the Company’s securities (other than asset-backed securities).

 

(E) Legal Opinion.
The Agent shall have received the opinion of Morrison & Foerster LLP, counsel for Company, dated as of the Closing Date, in
form and substance satisfactory to Purchaser and its counsel.

 

(F) Other Materials.
The Company shall have furnished to the Purchaser such appropriate further information, certificates, letters and other documents
as the Purchaser may reasonably request. All such certificates, letters and other documents will be in compliance with the provisions
of this Agreement.

 

(G) Execution and
Delivery of LSA Second Amendment. The LSA Second Amendment shall have been executed and delivered by each party thereto, and
the Purchaser shall have received a copy of the executed LSA Second Amendment.

 

(H) Execution and
Delivery of Warrant Amendment. The Warrant Amendment shall have been executed and delivered by each party thereto, and the
Purchaser shall have received a copy of the executed Warrant Amendment.

 

(I) No Event of Default.
No “Default” or “Event of Default” (each, as defined in the Note) shall have occurred and be continuing.

 

    	- 19 - 

    	 

    

 

(J) Subsequent Commission
Reports. The Company shall not have filed with or furnished to the Commission any report or other document after the execution
and delivery of this Agreement and prior to the Closing Time containing information that, in the sole and absolute discretion of
the Purchaser, makes it inadvisable to proceed with its purchase of the Notes in on the terms and in the manner contemplated by
this Agreement.

 

Section 6.
Conditions to the Company’s Obligations.

 

The obligations of the
Company under this Agreement will be subject to the satisfaction (or waiver by the Company in its sole discretion) of the following
conditions precedent:

 

(A) Accuracy of Representations.
The representations and warranties of the Purchaser in this Agreement are accurate and correct as of, and as if made at, the Closing
Time.

 

(B) Receipt of Purchase
Price. The Company shall have received same-day funds in an amount equal to the Purchase Price for the Note being purchased
by the Purchaser.

 

Section 7.
Miscellaneous.

 

(A) Notices.
All notices or other communications required or permitted to be given by any party to any other party pursuant to the terms of
this Agreement will be in writing, unless otherwise specified, and if sent to the Company, shall be delivered to:

 

Imprimis Pharmaceuticals, Inc.

12264 El Camino Real

Suite 350

San Diego, CA 92130

Attention: Chief Financial Officer

Facsimile: 858-345-1745

Email: aboll@imprimispharma.com

 

With a copy (which shall
not constitute notice) to:

 

Morrison & Foerster LLP

12531 High Bluff Drive, Suite 100

San Diego, CA 92130

Attention: Steve Rowles

Facsimile: 858-720-5125

Email: srowles@mofo.com

 

    	- 20 - 

    	 

    

 

and if to the Purchaser,
shall be delivered to:

 

IMMY Funding LLC

c/o Life Sciences Alternative Funding
LLC

50 Main Street

Suite 1000

White Plains, NY 10606

Attention: Stephen J. DeNelsky

 

Each party to this Agreement
may change such address (or provide an additional address, including, without limitation, an email address) for notices by sending
to the parties to this Agreement written notice of a new address for such purpose. Each such notice or other communication shall
be deemed given (i) when delivered personally or by verifiable facsimile transmission (with an original to follow) on or before
4:30 p.m., New York City time, on a Business Day or, if such day is not a Business Day, on the next succeeding Business Day; (ii)
on the next Business Day after timely delivery to a nationally recognized overnight courier; and (iii) on the Business Day actually
received if deposited in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid). For purposes
of this Agreement, “Business Day” means any day on which the Exchange and commercial banks in the City of New
York are open for business.

 

An electronic communication
(“Electronic Notice”) will be deemed written notice for purposes of this Section 7(A) if sent to the
electronic mail address specified by the receiving party under separate cover. Electronic Notice will be deemed received at the
time the party sending Electronic Notice receives verification of receipt by the receiving party. Any party receiving Electronic
Notice may request and will be entitled to receive the notice on paper, in a non-electronic form (“Non-Electronic Notice”)
which will be sent to the requesting party within ten (10) days of receipt of the written request for Non-Electronic Notice.

 

(B) Successors.
This Agreement will inure to the benefit of and be binding upon the Company and the Purchaser and their respective successors.
References to any of the parties contained in this Agreement will be deemed to include the successors and permitted assigns of
such party. Nothing in this Agreement, express or implied, is intended to confer upon any party, other than the parties hereto
or their respective successors and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement. Neither party may assign its rights or obligations under this Agreement
without the prior written consent of the other party; provided, however, that the Purchaser may assign its rights
and obligations hereunder to an affiliate thereof without obtaining the Company’s consent.

 

(C) Severability.
If any provision of this Agreement is invalid, illegal or unenforceable, then the validity, legality and enforceability of the
remaining provisions of this Agreement will not in any way be affected or impaired thereby.

 

(D) Headings, Etc.
The headings of the Articles and Sections of this Agreement have been inserted for convenience of reference only, are not to be
considered a part of this Agreement and will in no way modify or restrict any of the terms or provisions of this Agreement.

 

    	- 21 - 

    	 

    

 

(E) Governing Law;
Waiver of Jury Trial. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS AGREEMENT. EACH OF
THE COMPANY AND THE PURCHASER IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL
BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE.

 

(F) Waiver and Amendment.
None of the provisions of this Agreement will be modified, changed, discharged or terminated except by an instrument in writing
signed by the party against whom such modification, change, discharge or termination is sought.

 

(G) Submission to
Jurisdiction. Each of the Company and the Purchaser (i) agrees that any suit, action or proceeding against it arising out of
or relating to this Agreement may be instituted in any U.S. federal court with applicable subject matter jurisdiction sitting in
The City of New York; (ii) waives, to the fullest extent permitted by applicable law, (x) any objection that it may now or hereafter
have to the laying of venue of any such suit, action or proceeding; and (y) any claim that it may now or hereafter have that any
such suit, action or proceeding in such a court has been brought in an inconvenient forum; and (iii) submits to the nonexclusive
jurisdiction of such courts in any such suit, action or proceeding.

 

(H) Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Delivery of an executed Agreement by one party to the other may be made by facsimile
or electronic transmission.

 

[Remainder of Page Intentionally Left
Blank; Signature Page Follows]

 

    	- 22 - 

    	 

    

 

The parties hereto have
executed this Agreement as of the date first written above.

 

	 	Imprimis Pharmaceuticals,
    Inc.
	 	 	 
	 	By:	/s/ Mark L. Baum
	 	Name:	Mark L. Baum
	 	Title:	Chief Executive Officer
	 	 	 
	 	IMMY Funding LLC
	 	 	 
	 	By: 	/s/ Stephen J. DeNelsky
	 	Name:	Stephen J. DeNelsky
	 	Title:	President

 

[Signature Page to Note Purchase Agreement]

 

    	 

    	 

    

 

EXHIBIT A

 

FORM OF NOTE

(See Attached)

 

    	 

    	 

    

 

EXHIBIT B

 

FORM OF SECOND AMENDMENT TO LOAN AND SECURITY
AGREEMENT 

(See Attached)

 

    	 

    	 

    

 

EXHIBIT C

 

FORM OF WARRANT AMENDMENT 

(See Attached)SECOND
AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

THIS
SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of January 22, 2016 (the
“Amendment Effective Date”), is made among Imprimis Pharmaceuticals,
Inc., a Delaware corporation (the “Borrower”), the undersigned Subsidiaries of the Borrower, in their
capacities as Guarantors, IMMY Funding LLC, a Delaware limited liability company
(“IMMY Funding LLC”), in its capacity as collateral agent (in such capacity, “Collateral Agent”)
and the Lenders listed on Schedule 1.1 (as amended herein) of the Loan and Security Agreement (as defined below) or otherwise
a party hereto from time to time including IMMY Funding LLC in its capacity as a Lender (each a “Lender” and
collectively, the “Lenders”).

 

The
Borrower, the Lenders and the Collateral Agent are parties to a Loan and Security Agreement dated as of May 11, 2015 (as amended
by that certain First Amendment to Loan and Security Agreement dated as of October 20, 2015, and as may be further amended, restated
or modified, the “Loan and Security Agreement”). The Borrower has requested that the Lenders agree to certain
amendments to the Loan and Security Agreement. The Lenders have agreed to such request, subject to the terms and conditions hereof.

 

Accordingly,
the parties hereto agree as follows:

 

SECTION
1Definitions; Interpretation.

 

(a)Terms
Defined in Loan and Security Agreement. All capitalized terms used in this Amendment (including in the recitals hereof) and
not otherwise defined herein shall have the meanings assigned to them in the Loan and Security Agreement.

 

(b)Interpretation.
The rules of interpretation set forth in Section 1.1 of the Loan and Security Agreement shall be applicable to this Amendment
and are incorporated herein by this reference.

 

SECTION
2Amendments to the Loan and Security Agreement.

 

(a)The
Loan and Security Agreement shall be amended as follows effective as of the Amendment Effective Date:

 

(i)Definitions
Chart. The chart of definitions in Section 1.3 is amended as follows: (A) the Section references for “Term A Loan”
and “Term Loan” are changed to Section 2.2(a), and (B) the line for “Term B Loan” is deleted.

 

(ii)New
Definitions. The following definitions are added to Section 1.3 in their proper alphabetical order:

 

“Note”
means the 8.00% Convertible Senior Secured Note in a principal amount of Three Million Dollars ($3,000,000) issued by Borrower
in favor of IMMY Funding LLC, a Delaware limited liability company, pursuant to the Note Purchase Agreement.

 

“Note
Purchase Agreement” means that certain Note Purchase Agreement by and between the Borrower and IMMY Funding LLC, a Delaware
limited liability company, dated as of January 22, 2016.

 

(iii)Amended
and Restated Definitions. The following definition is hereby amended and restated as follows:

 

“Loan
Documents” are, collectively, this Agreement, the Pledge Agreement, the IP Security Agreement, the Secured Guaranty,
the Warrants, the Note, the Note Purchase Agreement, the Perfection Certificates, each Control Agreement, each Compliance Certificate,
each Loan Payment Request Form, any subordination agreements, any note, or notes or guaranties executed by Borrower or any other
Person, and any other present or future agreement entered into by Borrower, any Guarantor or any other Person for the benefit
of the Lenders and Collateral Agent in connection with this Agreement; all as amended, restated, or otherwise modified or supplemented
from time to time.

 

    	 	1	 

     

    

 

(iv)Amended
Definitions. The following definition is hereby amended as follows:

 

“Permitted
Indebtedness”. The definition of “Permitted Indebtedness” is hereby amended by (i) removing “and”
at the end of clause (m), (ii) replacing “.” at the end of clause (n) with “; and”, and (iii) inserting
a new clause (o) as follows:

 

(o)
Indebtedness under the Note and the Note Purchase Agreement.

 

(v)Deleted
Definitions. The following definitions are hereby deleted in their entirety: (A) Milestone Date, and (B) Second Draw Period.

 

(vi)Section
2.2(a). Section 2.2(a) is hereby amended and restated as follows:

 

(a)Availability.
Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, to make term loans to Borrower
on the Effective Date in an aggregate principal amount of Ten Million Dollars ($10,000,000.00) according to each Lender’s
Term A Loan Commitment as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to singly as a “Term
A Loan” or “Term Loan”, and collectively as the “Term A Loans” or “Term Loans”). After
repayment, no Term A Loan may be reborrowed.

 

(vii)Section
4.1. The second paragraph of Section 4.1 is hereby amended and restated as follows:

 

If
this Agreement is terminated, Collateral Agent’s Lien in the Collateral shall continue until the Obligations (other than
inchoate contingent obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations (other than inchoate
contingent obligations) and at such time as the Lenders’ obligation to extend Term Loans has terminated, Collateral Agent
shall, at the sole cost and expense of Borrower, release its Liens in the Collateral and all rights therein shall revert to Borrower.
If the Obligations other than those under the Note and Note Purchase Agreement have been repaid in full in cash (other than inchoate
contingent obligations) then Collateral Agent agrees to enter into a subordination agreement in customary form and substance subordinating
such remaining obligations to Borrower’s obligations under any senior debt facility providing loans to Borrower.

 

(viii)Section
8.13. A new Section 8.13 is hereby inserted as follows:

 

8.13Note;
Note Purchase Agreement. There is an “Event of Default” under the Note (as defined therein).

 

(ix)Lenders
and Commitments. Schedule 1.1 of the Loan and Security Agreement, the Schedules of Lenders and Commitments, is hereby amended
and restated in its entirety with Annex A hereto.

 

    	 	2	 

     

    

 

(b)References
Within Loan and Security Agreement. Each reference in the Loan and Security Agreement to “this Agreement” and
the words “hereof,” “herein,” “hereunder,” or words of like import, shall mean and be a reference
to the Loan and Security Agreement as amended by this Amendment.

 

SECTION
3Conditions of Effectiveness. The effectiveness of Section 2 of this Amendment shall be subject to the satisfaction
of each of the following conditions precedent:

 

(a)Fees
and Expenses. The Borrower shall have paid (i) all invoiced costs and expenses then due in accordance with Section 5(e),
and (ii) all other fees, costs and expenses, if any, due and payable as of the Amendment Effective Date under the Loan and Security
Agreement.

 

(b)This
Amendment; the Note; the Note Purchase Agreement; the Amendment to Warrant to Purchase Stock. The Collateral Agent shall have
received (i) this Amendment, executed by the Collateral Agent, the Lenders, the Borrower and the Guarantors, (ii) the Note, executed
by the Borrower, (iii) the Note Purchase Agreement, executed by IMMY Funding LLC and the Borrower and (iv) that certain Amendment
to Warrant to Purchase Stock, dated as of the date hereof, executed by IMMY Funding LLC and the Borrower.

 

(c)Perfection
Certificate. The Collateral Agent shall have received an updated Perfection Certificate executed by the Borrower.

 

(d)Representations
and Warranties; No Default. On the Amendment Effective Date, after giving effect to the amendment of the Loan and Security
Agreement contemplated hereby:

 

(i)The
representations and warranties contained in Section 4 shall be true and correct on and as of the Amendment Effective Date
as though made on and as of such date; and

 

(ii)There
exist no Events of Default or events that with the passage of time would result in an Event of Default.

 

SECTION
4Representations and Warranties. To induce the Lenders to enter into this Amendment, the Borrower hereby confirms, as
of the date hereof, (a) that the representations and warranties made by it or the Guarantors in Section 5 of the Loan and Security
Agreement and in the other Loan Documents are true and correct in all material respects; provided, however, that
such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified
by materiality in the text thereof. For the purposes of this Section 4, (i) each reference in Section 5 of the Loan and
Security Agreement to “this Agreement,” and the words “hereof,” “herein,” “hereunder,”
or words of like import in such Section, shall mean and be a reference to the Loan and Security Agreement as amended by this Amendment,
and (ii) any representations and warranties which relate solely to an earlier date shall not be deemed confirmed and restated
as of the date hereof (provided that such representations and warranties shall be true, correct and complete as of such earlier
date); (b) that there has not been and there does not exist a Material Adverse Change; (c) that the information included in the
Perfection Certificate delivered to Collateral Agent on the Amendment Effective Date is true and correct; and (d) that the Borrower
and/or Pharmacy Creations, LLC, a New Jersey corporation (“Pharmacy Creations”), has completed in all respects
remediating those observations identified in that certain FDA Form 483 issued September 30, 2015 relating to the FDA’s inspection
of Pharmacy Creation’s facility during the period of August 27, 2015 through September 30, 2015, and that such remediation
was completed in a manner consistent with that certain response letter issued by Pharmacy Creations to the FDA on October 13,
2015, a copy of which has been provided to the Collateral Agent, and that the FDA has approved such remediation in writing.

 

SECTION
5Miscellaneous.

 

(a)Loan
Documents Otherwise Not Affected; Reaffirmation. Except as expressly amended pursuant hereto or referenced herein, the Loan
and Security Agreement and the other Loan Documents shall remain unchanged and in full force and effect and are hereby ratified
and confirmed in all respects. The Lenders’ and the Collateral Agent’s execution and delivery of, or acceptance of,
this Amendment shall not be deemed to create a course of dealing or otherwise create any express or implied duty by any of them
to provide any other or further amendments, consents or waivers in the future. The Borrower hereby (i) grants Collateral Agent,
for the ratable benefit of the Lenders and the Holder (as defined in the Note) of the Note, to secure the payment and performance
in full of all of the Obligations (including all obligations under the Note and Note Purchase Agreement), a continuing security
interest in, and pledges to Collateral Agent, for the ratable benefit of the Lenders and the Holder (as defined in the Note) of
the Note, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products
thereof; and (ii) reaffirms the grant of security under Section 4.1 of the Loan and Security Agreement, affirms that such grant
of security in the Collateral secures all Obligations under the Note and Note Purchase Agreement and reaffirms that such grant
of security in the Collateral secures all Obligations under the Loan and Security Agreement, as of the date hereof.

 

    	 	3	 

     

    

 

(b)Reaffirmation
by the Guarantors. The undersigned Guarantors hereby (i) grant Collateral Agent, for the ratable benefit of the Lenders and
the Holder (as defined in the Note) of the Note, to secure the payment and performance in full of all of the Guarantor Obligations
(as defined in the Secured Guaranty) (including all obligations under the Note and Note Purchase Agreement), a continuing security
interest in, and pledge to Collateral Agent, for the ratable benefit of the Lenders and the Holder (as defined in the Note) of
the Note, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products
thereof; and (ii) reaffirm the grant of security under Section 2.1 of the Secured Guaranty, affirm that such grant of security
in the Collateral secures all Guarantor Obligations under the Note and Note Purchase Agreement and reaffirm that such grant of
security in the Collateral secures all Guarantor Obligations under the Secured Guaranty, as of the date hereof. For the purpose
of this Section SECTION 5(b), “Collateral” has the meaning given to it in the Secured Guaranty.

 

(c)Conditions.
For purposes of determining compliance with the conditions specified in Section 3, each Lender that has signed this Amendment
shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder
to be consented to or approved by or acceptable or satisfactory to a Lender unless the Collateral Agent shall have received notice
from such Lender prior to the Amendment Effective Date specifying its objection thereto.

 

(d)No
Reliance. The Borrower and the Guarantors hereby acknowledge and confirm to the Collateral Agent and the Lenders that the
Borrower and the Guarantors are executing this Amendment on the basis of their own investigation and for their own reasons without
reliance upon any agreement, representation, understanding or communication by or on behalf of any other Person.

 

(e)Costs
and Expenses. The Borrower agrees to pay to the Collateral Agent within ten (10) days of its receipt of an invoice (or on
the Amendment Effective Date to the extent invoiced on or prior to the Amendment Effective Date), the out-of-pocket costs and
expenses of the Collateral Agent and the Lenders party hereto, and the fees and disbursements of counsel to the Collateral Agent
and the Lenders party hereto (including allocated costs of internal counsel), in connection with the negotiation, preparation,
execution and delivery of this Amendment and any other documents to be delivered in connection herewith on the Amendment Effective
Date or after such date.

 

(f)Binding
Effect. This Amendment binds and is for the benefit of the successors and permitted assigns of each party.

 

(g)Governing
Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES
that would result in the application of any laws other than the laws OF the State of New York), INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, REGARDLESS OF THE LOCATION OF THE COLLATERAL.

 

(h)Complete
Agreement; Amendments. This Amendment and the Loan Documents represent the entire agreement about this subject matter and
supersede prior negotiations or agreements with respect to such subject matter. All prior agreements, understandings, representations,
warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into
this Amendment and the Loan Documents.

 

    	 	4	 

     

    

 

(i)Severability
of Provisions. Each provision of this Amendment is severable from every other provision in determining the enforceability
of any provision.

 

(j)Counterparts.
This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, is an original, and all taken together, constitute one Amendment. Delivery of an executed counterpart
of a signature page of this Amendment by facsimile, portable document format (.pdf) or other electronic transmission will be as
effective as delivery of a manually executed counterpart hereof.

 

(k)Loan
Documents. This Amendment, the Note, the Note Purchase Agreement and the documents related thereto shall constitute Loan Documents.

 

[Balance
of Page Intentionally Left Blank; Signature Pages Follow]

 

    	 	5	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Amendment, as of the date first above written.

 

	 	BORROWER:
	 	 
	 	IMPRIMIS PHARMACEUTICALS, INC., 

as Borrower

	 	 	 
	 	By:	/s/
    Mark L. Baum
	 	Name:	Mark
    L. Baum
	 	Title:	Chief
    Executive Officer
	 	 
	 	COLLATERAL
    AGENT AND LENDERS:
	 	 
	 	IMMY
    FUNDING LLC,
	 	as
    Collateral Agent and a Lender
	 	 
	 	By:	/s/
    Stephen J. DeNelsky
	 	Name:	Stephen
    J. DeNelsky
	 	Title:	President

 

[Signature
Page to Second Amendment to Loan and Security Agreement]

 

    	 	 	 

     

    

 

	 	GUARANTOR:
	 	 
	 	SOUTH
    COAST SPECIALTY COMPOUNDING, INC., a

 California corporation, as Guarantor
	 	 
	 	By:	/s/
    Mark L. Baum
	 	Name:	Mark
    L. Baum
	 	Title:	President
	 	 	 
	 	PHARMACY
    CREATIONS, L.L.C., a New Jersey limited

 liability company, as Guarantor
	 	 
	 	By:	/s/
    Mark L. Baum
	 	Name:	Mark
    L. Baum
	 	Title:	President
	 	 	 
	 	IMPRIMISRX
    TX, INC., a Texas corporation, as Guarantor
	 	 
	 	By:	/s/
    Mark L. Baum
	 	Name:	Mark
    L. Baum
	 	Title:	President
	 	 	 
	 	IMPRIMISRX
    PA, INC., a Delaware corporation, as Guarantor
	 	 
	 	By:	/s/
    Mark L. Baum
	 	Name:	Mark
    L. Baum
	 	Title:	President

 

[Signature
Page to Second Amendment to Loan and Security Agreement]

 

    	 	 	 

     

    

 

Annex
A

 

SCHEDULE
1.1

 

Lenders
and Commitments

 

Term
A Loans

 

	Lender	 	Term Loan Commitment	 	 	Commitment Percentage	 
	IMMY Funding LLC	 	$	10,000,000.00	 	 		100.00	%
	TOTAL	 	$	10,000,000.00	 	 		100.00	%

 

Aggregate
(all Term Loans)

 

	Lender	 	Term Loan Commitment	 	 	Commitment Percentage	 
	IMMY Funding LLC	 	$	10,000,000.00	 	 		100.00	%
	TOTAL	 	$	10,000,000.00	 	 		100.00	%

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