Document:

EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

This Employment Agreement (“Agreement”) is made effective as of January
3rd, 2018 (“Effective Date”), by and between ChemoCentryx, Inc., a Delaware corporation (the “Company”), and Bill Fairey
(“Executive”). 
 WHEREAS, the Company desires to employ Executive and Executive desires to commence employment with
the Company on the terms and conditions set forth below. 
 The parties agree as follows: 

1.    Definitions. For purposes of this Agreement, the following terms shall have the following meanings: 

(a)    “Board” shall mean the Board of Directors of the Company. 

(b)    “California WARN Act” means California Labor Code Sections 1400 et seq. 

(c)    “Cause” shall mean that, in the reasonable determination of the Company, Executive: 

(i)    has committed an act of fraud, embezzlement or dishonesty in connection with Executive’s employment, or has
intentionally committed some other illegal act that has, or may be reasonably expected to have, a material adverse impact on the Company or any successor or parent or subsidiary thereof; 

(ii)    has been convicted of, or entered a plea of “guilty” or “no contest” to, a felony, or to any
crime involving moral turpitude, which causes or may reasonably be expected to cause substantial economic injury to or substantial injury to the reputation of the Company or any successor or parent or subsidiary thereof; 

(iii)    has made any unauthorized use or disclosure of confidential information or trade secrets of the Company or any
successor or parent or subsidiary thereof that has, or may reasonably be expected to have, a material adverse impact on any such entity; 

(iv)    has materially breached a Company policy, materially breached the provisions of this Agreement, or has committed
any other intentional misconduct that has, or may be reasonably expected to have, a material adverse impact on the Company or any successor or parent or subsidiary thereof, or 

(v)    has intentionally refused or intentionally failed to act in accordance with any lawful and proper direction
or order of the Board or the appropriate individual to whom Executive reports; provided such direction is not materially inconsistent with Executive’s customary duties and responsibilities. 

(d)    “Change in Control” shall mean and include each of the following: 

(i)    the acquisition, directly or indirectly, by any “person” or “group” (as those terms are
defined in Sections 3(a)(9), 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, and the rules thereunder) of “beneficial ownership” (as determined pursuant to Rule 13d-3 under
the Securities Exchange Act of 1934, as amended) of securities entitled to vote generally in the 

 
election of directors (“voting securities”) of the Company that represent fifty percent (50%) or more of the combined voting power of the Company’s then outstanding
voting securities, other than: 
 (A)    an acquisition by a trustee or other fiduciary holding securities under any
employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the
Company, 
 (B)    an acquisition of voting securities by the Company or a corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of the stock of the Company, 

(C)    an acquisition of voting securities pursuant to a transaction described in subsection (ii) below that would
not be a Change in Control under subsection (ii), or 
 (D)    an acquisition of voting securities pursuant to the
Company’s initial public offering of its common stock; 
 Notwithstanding the foregoing, the following event shall not constitute an
“acquisition” by any person or group for purposes of this Section: an acquisition of the Company’s securities by the Company that causes the Company’s voting securities beneficially owned by a person or group to represent fifty
percent (50%) or more of the combined voting power of the Company’s then outstanding voting securities; provided, however, that if a person or group shall become the beneficial owner of fifty percent (50%) or more of the combined voting
power of the Company’s then outstanding voting securities by reason of share acquisitions by the Company as described above and shall, after such share acquisitions by the Company, become the beneficial owner of any additional voting securities
of the Company, then such acquisition shall constitute a Change in Control; or 
 (ii)    The consummation by the
Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or
substantially all of the Company’s assets in any single transaction or series of related transactions or (z) the acquisition of assets or stock of another entity, in each case other than a transaction: 

(A)    Which results in the Company’s voting securities outstanding immediately before the transaction continuing to
represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or
substantially all of the Company’s assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly, at least a majority of the combined voting
power of the Successor Entity’s outstanding voting securities immediately after the transaction, and 

(B)    After which no person or group beneficially owns voting securities representing fifty percent (50%) or more of the
combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this Section 1(d)(iii)(B) as beneficially owning fifty percent (50%) or more of combined voting power of the
Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction; or 

(iii)    The Company’s stockholders approve a liquidation or dissolution of the Company 

For purposes of subsection (i) above, the calculation of voting power shall be made as if the date of the acquisition were a record date
for a vote of the Company’s stockholders, and for purposes of subsection (ii) above, the calculation of voting power shall be made as if the date of the consummation of the transaction were a record date for a vote of the Company’s
stockholders. 

  
 2 

 Notwithstanding the foregoing, a transaction shall not constitute a Change in Control if it is a
transaction effected primarily for the purpose of financing the Company with cash (as determined by the Board in its discretion and without regard to whether such transaction is effectuated by a merger, equity financing or otherwise). The Board
shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change in Control of the Company has occurred pursuant to the above definition, and the date of the occurrence of such Change in
Control and any incidental matters thereto. 
 (e)    ”Code” shall mean the Internal Revenue
Code of 1986, as amended. 
 (f)    “Good Reason” shall mean the occurrence of any of the
following events or conditions without Executive’s written consent: 
 (i)    a material diminution in
Executive’s authority, duties or responsibilities; 
 (ii)    a material diminution in the authority, duties or
responsibilities of the supervisor to whom Executive is required to report; 
 (iii)    a material diminution in
Executive’s base compensation, unless such a reduction is imposed across-the-board to senior management of the Company; 

(iv)    a material change in the geographic location at which Executive must perform his or her duties (and the Company
and Executive agree that any involuntary relocation of Executive’s principal place of business to a location more than forty (40) miles in any direction from the Company’s headquarters in Mountain View, California as of the Effective
Date would constitute a material change); or 
 (v)    any other action or inaction that constitutes a material breach
by the Company or any successor or affiliate of its obligations to Executive under this Agreement. 
 Executive must provide written notice
to the Company of the occurrence of any of the foregoing events or conditions without Executive’s written consent within ninety (90) days of the occurrence of such event. The Company or any successor or affiliate shall have a period of
thirty (30) days to cure such event or condition after receipt of written notice of such event from Executive. 

(g)    “Involuntary Termination” means (i) Executive’s Separation from Service by reason
of a termination of employment by the Company other than for Cause, death, or disability, or (ii) Executive’s Separation from Service by reason of resignation of employment with the Company for Good Reason.
Executive’s Separation from Service by reason of resignation from employment with the Company for Good Reason shall be an “Involuntary Termination” only if such Separation from Service also occurs within six (6) months
following the initial existence of the act or failure to act constituting Good Reason. 
 (h)    “Separation
from Service”, with respect to Executive means Executive’s “separation from service,” as defined in Treasury Regulation Section 1.409A-1(h). 

(i)    “Stock Awards” means all stock options, restricted stock and such other awards granted
pursuant to the Company’s stock option and equity incentive award plans or agreements and any shares of stock issued upon exercise thereof. 

(j)    “WARN Act” shall mean the Worker Adjustment and Retraining Notification Act, 29 U.S.C.
Sections 2101 et seq., and the Department of Labor regulations thereunder. 

  
 3 

 2.    Term. The term of this Agreement (the
“Term”) shall commence on the Effective Date and shall continue in effect until December 31, 2018 (the “Initial Termination Date”); provided, however, that this Agreement shall be
automatically extended for one (1) additional year on the Initial Termination Date and on each subsequent anniversary of the Initial Termination Date, unless the Company elects not to so extend the term of the Agreement by notifying Executive,
in writing, of such election not less than sixty (60) days prior to the last day of the Term as then in effect. 

3.    Services to Be Rendered. 

(a)    Duties and Responsibilities. Executive shall serve as Chief Operating Officer of the Company. In the
performance of such duties, Executive shall report directly to the President and Chief Executive Officer of the Company (“CEO”) and shall be subject to the direction of the Board and the CEO and to such limits upon
Executive’s authority as the Board and the CEO may from time to time impose. Any change in Executive’s role without his or her consent such that he or she no longer reports directly to the CEO shall constitute a material breach of
this Agreement by the Company. Executive hereby consents to serve as an officer and/or director of the Company or any subsidiary or affiliate thereof without any additional salary or compensation, if so requested by the CEO. Executive shall be
employed by the Company on a full time basis. Executive’s primary place of work shall be the Company’s facility in Mountain View, California, or such other location within Santa Clara County as may be designated by the CEO from time to
time. Executive shall also render services at such other places within or outside the United States as the CEO may direct from time to time. Executive shall be subject to and comply with the policies and procedures generally applicable to
senior executives of the Company to the extent the same are not inconsistent with any term of this Agreement. 

(b)    Exclusive Services. Executive shall at all times faithfully, industriously and to the best of his or her
ability, experience and talent perform to the satisfaction of the Board and the CEO all of the duties that may be assigned to Executive hereunder and shall devote substantially all of his or her productive time and efforts to the performance of such
duties. Subject to the terms of the Employee Proprietary Information and Inventions Agreement referred to in Section 6(b), this shall not preclude Executive from devoting time to personal and family investments or serving on community and civic
boards, or participating in industry associations, provided such activities do not interfere with his or her duties to the Company, as determined in good faith by the Board or the CEO. Executive agrees that he will not join any boards, other than
community and civic boards (which do not interfere with his or her duties to the Company), without the prior approval of the Board or the CEO.  

4.    Compensation and Benefits. The Company shall pay or provide, as the case may be, to Executive the
compensation and other benefits and rights set forth in this Section 4. 
 (a)    Base Salary. The Company
shall pay to Executive a base salary of $500,000 per year, payable in accordance with the Company’s usual pay practices (and in any event no less frequently than monthly). Executive’s base salary shall be subject to review annually by and
at the sole discretion of the Compensation Committee of the Board. 
 (b)    Bonus. Executive shall participate
in such incentive compensation plan as may be approved by the Compensation Committee of the Board from time to time for senior executives of the Company. Executive’s target bonus award under such plan shall be forty percent (40%) of
Executive’s base salary. Any material reduction of Executive’s target bonus shall be considered a material breach of this Agreement by the Company. 

(c)    Benefits. Executive shall be entitled to participate in benefits under the Company’s benefit plans and
arrangements, including, without limitation, any employee benefit plan or arrangement made available in the future by the Company to its senior executives, subject to and on a basis consistent with the terms, conditions and overall administration of
such plans and arrangements. 

  
 4 

 
The Company shall have the right to amend or delete any such benefit plan or arrangement made available by the Company to its senior executives and not otherwise specifically provided for herein.
Any reduction of Executive’s benefits such that Executive’s benefits are, in the aggregate, materially less favorable to Executive than those benefits offered to Executive as of the Effective Date shall be considered a material breach of
this Agreement by the Company. 
 (d)    Expenses. The Company shall reimburse Executive for reasonable out-of-pocket business expenses incurred in connection with the performance of his or her duties hereunder, subject to (i) such policies as the Company may from time to
time establish, and (ii) Executive furnishing the Company with evidence in the form of receipts satisfactory to the Company substantiating the claimed expenditures. 

(e)    Paid Vacation. Executive shall be entitled to such periods of paid vacation each year as provided from time
to time under the Company’s vacation policy and as otherwise provided for senior executive officers; provided that Executive shall be entitled to earn at least three (3) weeks of paid vacation per year. 

(f)    Equity Awards. Executive shall be entitled to participate in any equity or other employee benefit plan that
is generally available to senior executive officers, as distinguished from general management, of the Company. Except as otherwise provided in this Agreement, Executive’s participation in and benefits under any such plan shall be on the terms
and subject to the conditions specified in the governing document of the particular plan. Subject to and following approval by the Board, the Company shall grant you an option to purchase 575,000 shares of the Company’s common stock at its fair
market value as determined by the Board as of the date of grant (the “Option”) pursuant to the Company’s 2012 equity incentive plan (the “Plan”). The Option will be governed in full by the terms
and conditions of the Plan and your individual grant agreement, including the vesting schedule and requirements set forth therein. 

5.    Termination and Severance. Executive shall be entitled to receive benefits upon termination of employment
only as set forth in this Section 5: 
 (a)    At-Will Employment;
Termination. The Company and Executive acknowledge that Executive’s employment is and shall continue to be at-will, as defined under applicable law, and that Executive’s employment with the
Company may be terminated by either party at any time for any or no reason, with or without notice. If Executive’s employment terminates for any reason, Executive shall not be entitled to any payments, benefits, damages, awards or compensation
other than as provided in this Agreement. Executive’s employment under this Agreement shall be terminated immediately on the death of Executive. 

(b)    Severance Upon Involuntary Termination Prior to a Change in Control or More than 12 Months Following a Change in
Control. If Executive’s employment is Involuntarily Terminated prior to a Change in Control or more than twelve (12) months following a Change in Control, Executive shall be entitled to receive, in lieu of any severance benefits to
which Executive may otherwise be entitled under any severance plan or program of the Company, the benefits provided below, which, with respect to clause (ii) below, will be payable in a lump sum within ten (10) days following the effective
date of Executive’s Release, but in no event later than two and one-half (2 1⁄2) months following the last
day of the calendar year in which the date of Executive’s Involuntary Termination occurs: 
 (i)    The Company
shall pay to Executive his or her fully earned but unpaid base salary, when due, through the date of Involuntary Termination at the rate then in effect, plus all other amounts to which Executive is entitled under any compensation plan or practice of
the Company at the time of termination; 

  
 5 

 (ii)    Subject to Section 5(f) and Executive’s continued
compliance with Section 6, Executive shall be entitled to receive severance pay in an amount equal to Executive’s monthly base salary as in effect immediately prior to the date of Involuntary Termination for the eighteen (18) month
period following the date of termination; plus 
 (iii)    Subject to Section 5(f) and Executive’s
continued compliance with Section 6, the vesting and/or exercisability of one hundred percent (100%) Executive’s Stock Awards shall be automatically accelerated on the effective date of Executive’s Release. This provision is hereby
deemed to be a part of each Stock Award and to supersede any less favorable provision in any agreement or plan regarding such Stock Award. 

(iv)    The payments and benefits provided for in this Section 5(b) shall only be payable in the event of
Executive’s Involuntary Termination prior to a Change of Control or more than twelve (12) months following a Change of Control. If Executive’s employment is Involuntarily Terminated within twelve (12) months following a Change of
Control, then Executive shall receive the payments and benefits described in Section 5(c) in lieu of the payments and benefits described in this Section 5(b). 

(c)    Severance Upon Involuntary Termination Within 12 Months Following a Change in Control. If Executive’s
employment is Involuntarily Terminated within twelve (12) months following a Change in Control, Executive shall be entitled to receive, in lieu of any severance benefits to which Executive may otherwise be entitled under any severance plan or
program of the Company, the benefits provided below, which, with respect to clause (ii) below, will be payable in a lump sum within ten (10) days following the effective date of Executive’s Release, but in no event later than two and one-half (2 1⁄2) months following the last day of the calendar year in which the date of Executive’s Involuntary
Termination occurs: 
 (i)    The Company shall pay to Executive his or her fully earned but unpaid base salary, when
due, through the date of Involuntary Termination at the rate then in effect, plus all other amounts to which Executive is entitled under any compensation plan or practice of the Company at the time of termination; 

(ii)    Subject to Section 5(f) and Executive’s continued compliance with Section 6, Executive shall be
entitled to receive severance pay in an amount equal to the sum of: 
 (A)    Executive’s monthly base salary as
in effect immediately prior to the date of Involuntary Termination for the eighteen (18) month period following the date of termination, plus 

(B)    One and one-half (1 1⁄2) times Executive’s target bonus for the fiscal year in which the date of Involuntary Termination occurs, with such bonus determined assuming that all of the performance objectives for such fiscal year
have been attained; 
 (iii)    Subject to Section 5(f) and Executive’s continued compliance with
Section 6, for the period beginning on the date of Involuntary Termination and ending on the date which is eighteen (18) full months following the date of Involuntary Termination (or, if earlier, (A) the date on which the
applicable continuation period under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) expires or (B) the date Executive becomes eligible to receive the equivalent or increased healthcare
coverage from a subsequent employer) (such period, the “COBRA Coverage Period”), if Executive and his or her eligible dependents who were covered under the Company’s health insurance plans as of the date of
Executive’s Involuntary Termination elect to have COBRA coverage and are eligible for such coverage, the Company shall reimburse Executive on a monthly basis for an amount equal to (1) the monthly premium Executive is required to pay for

  
 6 

 
continuation coverage pursuant to COBRA for Executive and his or her eligible dependents who were covered under the Company’s health plans as of the date of Executive’s Involuntary
Termination (calculated by reference to the premium as of the date of Executive’s Involuntary Termination) less (2) the amount Executive would have had to pay to receive group health coverage for Executive and his or her covered dependents
based on the cost sharing levels in effect on the date of Executive’s Involuntary Termination. If any of the Company’s health benefits are self-funded as of the date of Executive’s Involuntary Termination, or if the Company cannot
provide the foregoing benefits in a manner that is exempt from Section 409A (as defined below) or that is otherwise compliant with applicable law (including, without limitation, Section 2716 of the Public Health Service Act), instead of
providing the reimbursements as set forth above, the Company shall instead pay to Executive the foregoing monthly amount as a taxable monthly payment for the COBRA Coverage Period (or any remaining portion thereof). Executive shall be solely
responsible for all matters relating to continuation of coverage pursuant to COBRA, including, without limitation, the election of such coverage and the timely payment of premiums); and 

(iv)    Subject to Section 5(f) and Executive’s continued compliance with Section 6, the vesting and/or
exercisability of any outstanding unvested portions of Executive’s Stock Awards shall be automatically accelerated on the effective date of Executive’s Release. This provision is hereby deemed to be a part of each Stock Award and to
supersede any less favorable provision in any agreement or plan regarding such Stock Award. 
 (v)    The payments and
benefits provided for in this Section 5(c) shall only be payable in the event of Executive’s Involuntary Termination within twelve (12) months following a Change of Control. If Executive’s employment is Involuntarily Terminated
more than twelve (12) months following a Change of Control or prior to a Change of Control, then Executive shall receive the payments and benefits described in Section 5(b) and shall not be eligible to receive any of the payments and
benefits described in this Section 5(c). In addition, if an Executive is not a full-time employee at the time of his or her Involuntary Termination, then Executive shall receive the payments and benefits described in Section 5(b) and shall
not be eligible to receive any of the payments and benefits described in this Section 5(c) as a result of such Involuntary Termination. 

(d)    Other Terminations. If Executive experiences a Separation from Service by reason of his or her termination
of employment by the Company for Cause, by Executive without Good Reason, or as a result of Executive’s death or disability, the Company shall not have any other or further obligations to Executive under this Agreement (including any financial
obligations) except that Executive shall be entitled to receive (i) Executive’s fully earned but unpaid base salary, through the date of termination at the rate then in effect, (ii) all other amounts or benefits to which Executive is
entitled under any compensation, retirement or benefit plan or practice of the Company at the time of termination in accordance with the terms of such plans or practices, including, without limitation, any continuation of benefits required by COBRA
or applicable law, and (iii) in the event Executive’s employment is terminated as a result of Executive’s death or disability, Executive shall be entitled to receive a prorated portion of any bonus payment to which Executive was
entitled in the year in which such termination occurs, which bonus shall be paid within ten (10) days following the date of termination. In addition, all vesting of Executive’s unvested Stock Awards previously granted to him or her by the
Company shall cease and none of such unvested Stock Awards shall be exercisable following the date of such termination. The foregoing shall be in addition to, and not in lieu of, any and all other rights and remedies which may be available to the
Company under the circumstances, whether at law or in equity. 
 (e)    Delay of
Payments.    Notwithstanding anything to the contrary in this Section 5, if Executive is a “specified employee” (as defined in Section 409A of the Code), as determined by the Company in accordance with
Section 409A of the Code, on the date of Executive’s Separation from Service, to the extent that the payments or benefits under this Agreement are subject to Section 409A of the Code and the delayed payment or distribution of all or
any portion of such amounts to which 

  
 7 

 
Executive is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(b)(i) of the Code, then such portion deferred pursuant to this
Section 5(e) shall be paid or distributed to Executive in a lump sum on the earlier of (i) the date that is six (6)-months following Executive’s Separation from Service, (ii) the date of Executive’s death or (iii) the
earliest date as is permitted under Section 409A of the Code. Any remaining payments due under this Agreement shall be paid as otherwise provided herein. 

(f)    Release. As a condition to Executive’s receipt of any post-termination benefits pursuant to
Section 5(b) or 5(c) above, Executive shall execute and not revoke a general release of all claims in favor of the Company (the “Release”) in the form attached hereto as Exhibit A. In the event Executive does not
sign the Release within the fifty (50) day period following the date of Executive’s termination of employment or revokes such Release in accordance with the terms thereof, Executive shall not be entitled to the aforesaid payments and
benefits. 
 (g)    Exclusive Remedy. Except as otherwise expressly required by law (e.g., COBRA) or as
specifically provided herein, all of Executive’s rights to salary, severance, benefits, bonuses and other amounts hereunder (if any) accruing after the termination of Executive’s employment shall cease upon such termination. In the event
of a termination of Executive’s employment with the Company, Executive’s sole remedy shall be to receive the payments and benefits described in this Section 5. Any payments made to Executive under this Section 5 shall be
inclusive of any amounts or benefits to which Executive may be entitled pursuant to the WARN Act or the California WARN Act. 

(h)    No Mitigation. Executive shall not be required to mitigate the amount of any payment provided for in this
Section 5 by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Section 5 be reduced by any compensation earned by Executive as the result of employment by another employer or
self-employment or by retirement benefits; provided, however, that loans, advances or other amounts owed by Executive to the Company may be offset by the Company against amounts payable to Executive under this Section 5. 

(i)    Return of the Company’s Property. If Executive’s employment is terminated for any reason, the
Company shall have the right, at its option, to require Executive to vacate his or her offices prior to or on the effective date of termination and to cease all activities on the Company’s behalf. Upon the termination of his or her employment
in any manner, as a condition to Executive’s receipt of any post-termination benefits described in this Agreement, Executive shall immediately surrender to the Company all lists, books and records of, or in connection with, the Company’s
business, and all other property belonging to the Company, it being distinctly understood that all such lists, books and records, and other documents, are the property of the Company. Executive shall deliver to the Company a signed statement
certifying compliance with this Section 5(i) prior to the receipt of any post-termination benefits described in this Agreement. 

6.    Certain Covenants. 

(a)    Noncompetition. Except as may otherwise be approved by the Board, during the term of Executive’s
employment, Executive shall not have any ownership interest (of record or beneficial) in, or have any interest as an employee, salesman, consultant, officer or director in, or otherwise aid or assist in any manner, any firm, corporation,
partnership, proprietorship or other business that engages in any county, city or part thereof in the United States and/or any foreign country in a business which competes directly or indirectly (as determined by the Board) with the Company’s
business in such county, city or part thereof, so long as the Company, or any successor in interest of the Company to the business and goodwill of the Company, remains engaged in such business in such county, city or part thereof or continues to
solicit customers or potential customers therein; provided, however, that Executive may own, directly or indirectly, solely as an investment, securities of any entity which are traded on any national securities exchange if Executive
(x) is not a controlling person of, or a member of a group which controls, such entity; or (y) does not, directly or indirectly, own one percent (1%) or more of any class of securities of any such entity. 

  
 8 

 (b)    Employee Proprietary Information and Inventions Agreement.
Executive and the Company have entered into the Company’s standard employee proprietary information and inventions agreement (the “Employee Proprietary Information and Inventions Agreement”), which agreement is attached
hereto as Exhibit B and incorporated herein by reference. Executive agrees to perform each and every obligation of Executive therein contained. 

(c)    Solicitation of Employees. Executive shall not during the term of Executive’s employment and for one
year following Executive’s termination of employment (the “Restricted Period”), directly or indirectly, solicit or encourage to leave the employment of the Company or any of its affiliates, any employee of the Company or
any of its affiliates. 
 (d)    Solicitation of Consultants. Executive shall not during the term of
Executive’s employment and for the Restricted Period, directly or indirectly, hire, solicit or encourage to cease work with the Company or any of its affiliates any consultant then under contract with the Company or any of its affiliates within
one year of the termination of such consultant’s engagement by the Company or any of its affiliates. 

(e)    Rights and Remedies Upon Breach. If Executive breaches or threatens to commit a breach of any of the
provisions of this Section 6 (the “Restrictive Covenants”), the Company shall have any rights and remedies available to the Company under law or in equity, including, without limitation, the right to cease all severance
payments and benefits payable pursuant to Section 5 above in the event of Executive’s breach of any of the Restrictive Covenants. 

(f)    Severability of Covenants/Blue Pencilling. If any court determines that any of the Restrictive Covenants, or
any part thereof, is invalid or unenforceable, the remainder of the Restrictive Covenants shall not thereby be affected and shall be given full effect, without regard to the invalid portions. If any court determines that any of the Restrictive
Covenants, or any part thereof, are unenforceable because of the duration of such provision or the area covered thereby, such court shall have the power to reduce the duration or area of such provision and, in its reduced form, such provision shall
then be enforceable and shall be enforced. Executive hereby waives any and all right to attack the validity of the Restrictive Covenants on the grounds of the breadth of their geographic scope or the length of their term. 

(g)    Enforceability in Jurisdictions. The Company and Executive intend to and do hereby confer jurisdiction to
enforce the Restrictive Covenants upon the courts of any jurisdiction within the geographical scope of such covenants. If the courts of any one or more of such jurisdictions hold the Restrictive Covenants wholly unenforceable by reason of the
breadth of such scope or otherwise, it is the intention of the Company and Executive that such determination not bar or in any way affect the right of the Company to the relief provided above in the courts of any other jurisdiction within the
geographical scope of such covenants, as to breaches of such covenants in such other respective jurisdictions, such covenants as they relate to each jurisdiction being, for this purpose, severable into diverse and independent covenants. 

(h)    Definitions. For purposes of this Section 6, the term “Company” means not only
ChemoCentryx, Inc., but also any company, partnership or entity which, directly or indirectly, controls, is controlled by or is under common control with ChemoCentryx, Inc. 

(i)    Whistleblower Provision. Nothing herein is intended to or shall prevent Executive from communicating
directly with, cooperating with, or providing information to, any federal, state or local government regulator, including, but not limited to, the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, or the U.S.
Department of Justice. 

  
 9 

 7.    Insurance; Indemnification. 

(a)    Insurance. The Company shall have the right to take out life, health, accident, “key-man” or other insurance covering Executive, in the name of the Company and at the Company’s expense in any amount deemed appropriate by the Company. Executive shall assist the Company in
obtaining such insurance, including, without limitation, submitting to any required examinations and providing information and data required by insurance companies. 

(b)    Indemnification. Executive will be provided with indemnification against third party claims related to his
or her work for the Company as required by Delaware law. The Company shall provide Executive with directors and officers liability insurance coverage at least as favorable as that which the Company may maintain from time to time for other members of
the Board and executive officers. 
 8.    Agreement to Arbitrate. Any dispute, claim or controversy based on,
arising out of or relating to Executive’s employment or this Agreement shall be settled by final and binding arbitration in Santa Clara County, California, before a single neutral arbitrator in accordance with the National Rules for the
Resolution of Employment Disputes (the “Rules”) of the American Arbitration Association (“AAA”), and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction.
The Rules may be found online at www.adr.org. Arbitration may be compelled pursuant to the California Arbitration Act (Code of Civil Procedure §§ 1280 et seq.). If the parties are unable to agree upon an arbitrator, one shall
be appointed by the AAA in accordance with its Rules. Each party shall pay the fees of its own attorneys, the expenses of its witnesses and all other expenses connected with presenting its case; provided, however, Executive and the Company
agree that, to the extent permitted by law, the arbitrator may, in his or her discretion, award reasonable attorneys’ fees to the prevailing party; provided, however, that the prevailing party shall be reimbursed for such fees,
costs and expenses within forty-five (45) days following any such award, but in no event later than the last day of Executive’s taxable year following the taxable year in which the fees were incurred; provided, further, that the
parties’ obligations pursuant to this sentence shall terminate on the tenth (10th) anniversary of the date of Executive’s termination of employment. Other costs of the arbitration,
including the cost of any record or transcripts of the arbitration, AAA’s administrative fees, the fee of the arbitrator, and all other fees and costs, shall be borne by the Company. This Section 8 is intended to be the exclusive method
for resolving any and all claims by the parties against each other for payment of damages under this Agreement or relating to Executive’s employment; provided, however, that Executive shall retain the right to file administrative
charges with or seek relief through any government agency of competent jurisdiction, and to participate in any government investigation, including but not limited to (a) claims for workers’ compensation, state disability insurance or
unemployment insurance; (b) claims for unpaid wages or waiting time penalties brought before the California Division of Labor Standards Enforcement; provided, however, that any appeal from an award or from denial of an award of wages and/or
waiting time penalties shall be arbitrated pursuant to the terms of this Agreement; and (c) claims for administrative relief from the United States Equal Employment Opportunity Commission and/or the California Department of Fair Employment and
Housing (or any similar agency in any applicable jurisdiction other than California); provided, further, that Executive shall not be entitled to obtain any monetary relief through such agencies other than workers’ compensation benefits or
unemployment insurance benefits. This Agreement shall not limit either party’s right to obtain any provisional remedy, including, without limitation, injunctive or similar relief, from any court of competent jurisdiction as may be necessary to
protect their rights and interests pending the outcome of arbitration, including without limitation injunctive relief, in any court of competent jurisdiction pursuant to California Code of Civil Procedure § 1281.8 or any similar statute of an
applicable jurisdiction. Seeking any such relief shall not be deemed to be a waiver of such party’s right to compel arbitration. Both Executive and the Company expressly waive their right to a jury trial. 

  
 10 

 9.    General Provisions. 

(a)    Successors and Assigns. The rights of the Company under this Agreement may, without the consent of Executive,
be assigned by the Company, in its sole and unfettered discretion, to any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly, acquires all or substantially all of
the assets or business of the Company. The Company will require any successor (whether direct or indirect, by purchase, merger or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and to agree to
perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place; provided, however, that no such assumption shall relieve the Company of its
obligations hereunder. As used in this Agreement, the “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law or otherwise. Executive shall not be entitled to assign any of Executive’s rights or obligations under this Agreement. This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal
representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 

(b)    Severability. In the event any provision of this Agreement is found to be unenforceable by an arbitrator or
court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest
extent permitted by law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be
affected thereby. 
 (c)    Interpretation; Construction. The headings set forth in this Agreement are for
convenience only and shall not be used in interpreting this Agreement. This Agreement has been drafted by legal counsel representing the Company, but Executive has participated in the negotiation of its terms. Furthermore, Executive acknowledges
that Executive has had an opportunity to review and revise the Agreement and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of this Agreement. Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from
enforcing each and every other provision of this Agreement. 
 (d)    Governing Law and Venue. This Agreement
will be governed by and construed in accordance with the laws of the United States and the State of California applicable to contracts made and to be performed wholly within such State, and without regard to the conflicts of laws principles thereof.
Any suit brought hereon shall be brought in the state or federal courts sitting in Santa Clara County, California, the Parties hereby waiving any claim or defense that such forum is not convenient or proper. Each party hereby agrees that any such
court shall have in personam jurisdiction over it and consents to service of process in any manner authorized by California law. 

(e)    Notices. Any notice required or permitted by this Agreement shall be in writing and shall be delivered as
follows with notice deemed given as indicated: (i) by personal delivery when delivered personally; (ii) by overnight courier upon written verification of receipt; (iii) by telecopy or facsimile transmission upon acknowledgment of
receipt of electronic transmission; or (iv) by certified or registered mail, return receipt requested, upon verification of receipt. Notice shall be sent to Executive at the address listed on the Company’s personnel records and to the
Company at its principal place of business, or such other address as either party may specify in writing. 

  
 11 

 (f)    Survival. Sections 1 (“Definitions”), 5
(“Termination and Severance”), 6 (“Restrictive Covenants”), 7 (“Insurance and Indemnification”), 8 (“Agreement to Arbitrate”) and 9 (“General Provisions”) of this Agreement shall survive
termination of Executive’s employment by the Company. 
 (g)    Entire Agreement. This Agreement and the
Employee Proprietary Information and Inventions Agreement incorporated herein by reference together constitute the entire agreement between the parties in respect of the subject matter contained herein and therein and supersede all prior or
simultaneous representations, discussions, negotiations, and agreements, whether written or oral. This Agreement may be amended or modified only with the written consent of Executive and an authorized representative of the Company. No oral waiver,
amendment or modification will be effective under any circumstances whatsoever. 
 (h)    Code
Section 409A. 
 (i)    Certain payments and benefits payable under this Agreement are intended
to be exempt from the requirements of Section 409A of the Code. This Agreement shall be interpreted in accordance with the applicable exemptions from Section 409A of the Code. To the extent the payments and benefits under this Agreement
are subject to Section 409A of the Code, this Agreement shall be interpreted, construed and administered in a manner that satisfies the requirements of Sections 409A(a)(2), (3) and (4) of the Code and the Treasury Regulations thereunder.
For purposes of this Agreement, all references to Executive’s “termination of employment” shall mean Executive’s Separation from Service. 

(ii)    To the extent that any reimbursements under this Agreement are subject to Section 409A, any such
reimbursements payable to Executive shall be paid to Executive no later than December 31 of the calendar year following the calendar year in which the expense was incurred; provided that Executive submits Executive’s reimbursement request
promptly following the date the expense is incurred, the amount of expenses reimbursed in one calendar year shall not affect the amount eligible for reimbursement in any subsequent calendar year, and Executive’s right to reimbursement under
this Agreement will not be subject to liquidation or exchange for another benefit. 
 (iii)    Executive’s right
to receive any installment payments under this Agreement, including without limitation any continuation salary payments that are payable on Company payroll dates, shall be treated as a right to receive a series of separate payments and, accordingly,
each such installment payment shall at all times be considered a separate and distinct payment as permitted under Section 409A. Except as otherwise permitted under Section 409A, no payment hereunder shall be accelerated or deferred unless
such acceleration or deferral would not result in additional tax or interest pursuant to Section 409A. 

(iv)    In the event that the amounts payable under Section 5 are subject to Section 409A of the Code and the
timing of the delivery of Executive’s Release could cause such amounts to be paid in one or another taxable year, then notwithstanding the payment timing set forth in such sections, such amounts shall not be payable until the later of
(i) the payment date specified in such section or (ii) the first business day of the taxable year following Executive’s Separation from Service. 

(i)    Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument. 
 (Signature Page Follows) 

  
 12 

 THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND
EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW. 
  

							
		 		 	CHEMOCENTRYX, INC.
				
	Dated: January 3, 2018	 		 	By:	 	 /s/ Thomas J. Schall, Ph.D.

		 		 	Name:	 	Thomas J. Schall, Ph.D.
		 		 	Title:	 	President and CEO
			
		 		 	EXECUTIVE
			
	Dated: January 3, 2018	 		 	 /s/ Bill Fairey

		 		 	Bill Fairey

  
 13 

 EXHIBIT A 

GENERAL RELEASE OF CLAIMS 

[The language in this Release may change based on legal developments and evolving best practices; this form is provided as an example of
what will be included in the final Release document.] 
 This General Release of Claims (“Release”) is entered
into as of this      day of             ,         , between
                     (“Executive”), and ChemoCentryx, Inc., a Delaware corporation (the “Company”)
(collectively referred to herein as the “Parties”). 
 WHEREAS, Executive and the Company are parties to that
certain Employment Agreement dated as of January 3, 2018 (the “Agreement”); 
 WHEREAS, the Parties agree that
Executive is entitled to certain severance benefits under the Agreement, subject to Executive’s execution of this Release; and 

WHEREAS, the Company and Executive now wish to fully and finally to resolve all matters between them. 

NOW, THEREFORE, in consideration of, and subject to, the severance benefits payable to Executive pursuant to the Agreement, the adequacy of
which is hereby acknowledged by Executive, and which Executive acknowledges that he would not otherwise be entitled to receive, Executive and the Company hereby agree as follows: 

 

	1.	General Release of Claims by Executive. 

 (a)    Executive, on behalf
of himself or herself and his or her executors, heirs, administrators, representatives and assigns, hereby agrees to release and forever discharge the Company and all predecessors, successors and their respective parent corporations, affiliates,
related, and/or subsidiary entities, and all of their past and present investors, directors, shareholders, officers, general or limited partners, employees, attorneys, agents and representatives, and the employee benefit plans in which Executive is
or has been a participant by virtue of his or her employment with or service to the Company (collectively, the “Company Releasees”), from any and all claims, debts, demands, accounts, judgments, rights, causes of action,
equitable relief, damages, costs, charges, complaints, obligations, promises, agreements, controversies, suits, expenses, compensation, responsibility and liability of every kind and character whatsoever (including attorneys’ fees and costs),
whether in law or equity, known or unknown, asserted or unasserted, suspected or unsuspected (collectively, “Claims”), which Executive has or may have had against such entities based on any events or circumstances arising or
occurring on or prior to the date hereof or on or prior to the date hereof, arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever Executive’s employment by or service to the Company or the
termination thereof, including any and all claims arising under federal, state, or local laws relating to employment, including without limitation claims of wrongful discharge, breach of express or implied contract, fraud, misrepresentation,
defamation, or liability in tort, and claims of any kind that may be brought in any court or administrative agency including, without limitation, claims under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. Section 2000, et
seq.; the Americans with Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701 et seq.; the Civil Rights Act of 1866, and the Civil Rights Act of 1991; 42 U.S.C.
Section 1981, et seq.; the Age Discrimination in Employment Act, as amended, 29 U.S.C. Section 621, et seq. (the “ADEA”); the Equal Pay Act, as amended, 29 U.S.C. Section 206(d); regulations of the Office of
Federal Contract 

 
Compliance, 41 C.F.R. Section 60, et seq.; the Family and Medical Leave Act, as amended, 29 U.S.C. § 2601 et seq.; the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. §201
et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; and the California Fair Employment and Housing Act, California Government Code Section 12940, et seq. 

Notwithstanding the generality of the foregoing, Executive does not release the following claims: 

(i)    Claims for unemployment compensation or any state disability insurance benefits pursuant to the
terms of applicable state law; 
 (ii)    Claims for workers’ compensation insurance benefits under
the terms of any worker’s compensation insurance policy or fund of the Company; 
 (iii)    Claims
pursuant to the terms and conditions of the federal law known as COBRA; 
 (iv)    Claims for indemnity
under the bylaws of the Company, as provided for by California law or under any applicable insurance policy with respect to Executive’s liability as an employee, director or officer of the Company; 

(v)    Claims based on any right Executive may have to enforce the Company’s executory obligations
under the Agreement; 
 (vi)    Claims Executive may have to vested or earned compensation and benefits;

 (vii)    Executive’s right to report possible violations of federal law or regulation to any
governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or any other whistleblower protection
provisions of state or federal law or regulation; and 
 (viii)    Executive’s right to file a
charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the
Company, provided that Executive shall not be entitled to obtain any monetary relief through such agencies (with the understanding that Executive’s release of claims herein bars Executive from recovering such monetary relief from the Company or
any Company Releasee). 
 (b)    EXECUTIVE ACKNOWLEDGES THAT HE HAS BEEN ADVISED OF AND IS FAMILIAR WITH THE PROVISIONS
OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 

BEING AWARE OF SAID CODE SECTION, EXECUTIVE HEREBY EXPRESSLY WAIVES ANY RIGHTS HE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR
COMMON LAW PRINCIPLES OF SIMILAR EFFECT. 

 (c)     Executive acknowledges that this Release was presented to him or her
on the date indicated above and that Executive is entitled to have twenty-one (21) days’ time in which to consider it. Executive further acknowledges that the Company has advised him or her that he
or she is waiving his or her rights under the ADEA, and that Executive should consult with an attorney of his or her choice before signing this Release, and Executive has had sufficient time to consider the terms of this Release. Executive
represents and acknowledges that if Executive executes this Release before twenty-one (21) days have elapsed, Executive does so knowingly, voluntarily, and upon the advice and with the approval of
Executive’s legal counsel (if any), and that Executive voluntarily waives any remaining consideration period. 
 (d)
    Executive understands that after executing this Release, Executive has the right to revoke it within seven (7) days after his or her execution of it. Executive understands that this Release will not become effective and
enforceable unless the seven (7) day revocation period passes and Executive does not revoke the Release in writing. Executive understands that this Release may not be revoked after the seven (7) day revocation period has passed. Executive
also understands that any revocation of this Release must be made in writing and delivered to the Company at its principal place of business within the seven (7) day period. 

(e)     Executive understands that this Release shall become effective, irrevocable, and binding upon Executive on the
eighth (8th) day after his or her execution of it, so long as Executive has not revoked it within the time period and in the manner specified in clause (d) above. Executive further understands that in the event Executive does not sign this
Release within the fifty (50) day period following the date of Executive’s termination of employment or revokes this Release in accordance with clause (d) above, Executive will not be given any severance benefits under the Agreement.

 2.    No Assignment. Executive represents and warrants to the Company Releasees that there has been no
assignment or other transfer of any interest in any Claim that Executive may have against the Company Releasees. Executive agrees to indemnify and hold harmless the Company Releasees from any liability, claims, demands, damages, costs, expenses and
attorneys’ fees incurred as a result of any such assignment or transfer from Executive. 

3.    Severability. In the event any provision of this Release is found to be unenforceable by an arbitrator or
court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest
extent permitted by law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be
affected thereby. 
 4.    Interpretation; Construction. The headings set forth in this Release are for
convenience only and shall not be used in interpreting this Agreement. This Release has been drafted by legal counsel representing the Company, but Executive has participated in the negotiation of its terms. Furthermore, Executive acknowledges that
Executive has had an opportunity to review and revise the Release and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party
shall not be employed in the interpretation of this Release. Either party’s failure to enforce any provision of this Release shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing
each and every other provision of this Release. 
 5.    Governing Law and Venue. This Release will be governed
by and construed in accordance with the laws of the United States of America and the State of California applicable to contracts made and to be performed wholly within such State, and without regard to the conflicts of laws

 
principles thereof. Any suit brought hereon shall be brought in the state or federal courts sitting in Santa Clara County, California, the Parties hereby waiving any claim or defense that such
forum is not convenient or proper. Each party hereby agrees that any such court shall have in personam jurisdiction over it and consents to service of process in any manner authorized by California law. 

6.    Entire Agreement. This Release and the Agreement constitute the entire agreement of the Parties in respect of
the subject matter contained herein and therein and supersede all prior or simultaneous representations, discussions, negotiations and agreements, whether written or oral. This Release may be amended or modified only with the written consent of
Executive and an authorized representative of the Company. No oral waiver, amendment or modification will be effective under any circumstances whatsoever. 

7.    Counterparts. This Release may be executed in multiple counterparts, each of which shall be deemed to be an
original but all of which together shall constitute one and the same instrument. 
 (Signature Page Follows) 

 IN WITNESS WHEREOF, and intending to be legally bound, the Parties have executed the foregoing
Release as of the date first written above. 
  

							
		  		 	CHEMOCENTRYX, INC.
				
	Dated:                                     
                                         
   	  	            	 	By:	 	
                     

		  		 	Name:	 	
                     

		  		 	Title:	 	
                     

			
		  		 	EXECUTIVE
			
	Dated:                                     
                                         
   	  		 	  

		  		 	Bill Fairey

									
					
		 		  		  	      Address:NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES
REPRESENTED BY THIS NOTE NOR THE SECURITIES INTO WHICH
THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, 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 OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED
BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM,
THAT REGISTRATION IS NOT REQUIRED UNDER SAID
ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.
NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY
BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR
FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

 

Amount:
$15,000

Date:
December 19, 2017

 

PROMISSORY
NOTE

 

HypGen
Inc., (hereinafter called the “Company”),
hereby promises to pay to the
order of GHS Investments, LLC, a Nevada Limited
Liability Company, or its registered assigns
(the “Holder”) the sum of $15,000 on August_19, 2018, (the "Maturity Date"). This Note relates
to the sum of $15,000 advanced by
Holder to the Company on or about
November 15, 2017.

 

This
Note may not be prepaid in whole or in part
except as otherwise explicitly set forth herein. Following any Event of Default,
all amounts owing pursuant to this Note shall bear interest at
the rate of ten percent
(10%) per annum from the due date thereof until the same
is paid (“Default Interest”).
Interest shall be computed on the basis
of a 365-day year and the actual number
of days elapsed. All payments
due hereunder (to the extent not converted
into common stock) shall be made
in lawful money of the United States
of America.

 

All payments
shall be made at such address as the Holder
shall hereafter give to the Company by
written notice made in accordance
with the provisions of this Note.
Whenever any amount expressed
to be due by the terms of this Note
is due on any day which is not a business
day, the same shall instead be due on
the next succeeding day which is a business
day and, in the case of any interest
payment date which is not the date on which this Note is paid in full,
the extension of the due date thereof
shall not be taken into account
for purposes of determining the amount
of interest due on such date. As
used in this Note, the term “business
day” shall mean any day
other than a Saturday, Sunday or a day
on which commercial banks in the city of New York, New York are authorized or
required by law or executive order to
remain closed. Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in the
supporting documents of same date (attached hereto).

 

    	 	1	 

    	 	 	 

    

 

This
Note is free from all taxes, liens, claims
and encumbrances with respect to the issue
thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the Company
and will not impose personal
liability upon the holder thereof.

 

The
following terms shall apply to this Note:

 

ARTICLE
I. CONVERSION
RIGHTS

 

1.1             
Conversion Right. The Holder shall have
the right and at any time following an Event of Default to convert
all or any part of the outstanding
and unpaid principal amount of this Note into fully paid
and non- assessable shares of Common Stock, as such Common Stock exists on
the Issue Date, or any shares
of capital stock or other securities
of the Company into which such Common Stock
shall hereafter be changed or reclassified
at the conversion price (the “Conversion Price”) determined as provided
herein (a “Conversion”); provided, however, that in no event
shall the Holder be entitled
to convert any portion
of this Note in excess of that portion
of this Note upon conversion of which
the sum of (1) the number of shares of Common Stock beneficially owned by
the Holder and its affiliates (other
than shares of Common Stock which may
be deemed beneficially owned through the ownership
of the unconverted portion of
the Notes or the unexercised or unconverted
portion of any other security of the Company subject to a limitation
on conversion or exercise analogous to the limitations
contained herein) and (2) the number of shares of
Common Stock issuable upon the conversion of the portion
of this Note with respect to which
the determination of this proviso is
being made, would result in beneficial
ownership by the Holder and its
affiliates of more than 4.99% of the
outstanding shares of Common Stock. For
purposes of the proviso to the immediately
preceding sentence, beneficial ownership shall
be determined in accordance with
Section 13(d) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), and Regulations 13D-G
thereunder. The number of shares of
Common Stock to be issued upon each conversion
of this Note shall be determined
by dividing the Conversion Amount (as
defined below) by the applicable Conversion Price then in effect
on the date specified in the notice
of conversion, (the “Notice of Conversion”),
delivered to the Company by the Holder
in accordance with the Sections below;
provided that the Notice of Conversion
is submitted by facsimile
or e-mail (or by other
means resulting in, or reasonably expected to result
in, notice) to the Company before
6:00 p.m., New York, New York time on such
conversion date (the “Conversion Date”). Notwithstanding the foregoing, the term "4.99%" above shall
be replaced with "9.99%" following any Event of Default if the Holder, in its sole discretion and in writing, elects
to demand the replacement. If the term "4.99%" is replaced with "9.99%” pursuant to the preceding sentence,
such increase to "9.99%" shall remain at 9.99% until decreased by the Holder in writing.

 

The
number of shares of Common Stock to
be issued upon each conversion of
this Note shall be determined by dividing
the Conversion Amount (as
defined below) by the applicable
Conversion Price then in effect on the date
specified in the notice of conversion,
(the “Notice of Conversion”), delivered to the Company by the Holder
in accordance with the Sections
below.

 

    	 	2	 

    	 	 	 

    

 

The
term “Conversion Amount” means,
with respect to any conversion
of this Note, the sum of (1)
the principal amount of this Note to be converted
in such conversion plus (2) at
the Company’s option, accrued and unpaid interest, if any,
on such principal amount at the
interest rates provided in this Note to
the Conversion Date, plus (3) at
the Company’s option, Default Interest, if any,
on the amounts referred to in the immediately preceding clauses
(1) and/or (2) plus (4) at
the Holder’s option, any amounts owed
to the Holder.

 

		1.2	Conversion
                                         Price.

 

(a)
Calculation of Conversion Price.
Following any Event of Default, Holder, at its discretion, shall have the right to convert this Note in its entirety or
in part(s) into common stock of the Company valued at a twenty percent (20%) discount off of the average closing bid price for
the Company’s common stock during the five (5) trading days immediately preceding a conversion date, as reported by Quotestream
Media. Notwithstanding anything to the contrary contained herein, there shall exist a floor price of $.00005 on any conversions
pursuanttothisNote("FloorPrice").

 

1.3                 
Authorized Shares. The Company covenants
that during the period the conversion
right exists the Company will
reserve from its authorized and unissued
Common Stock a sufficient number of shares,
free from preemptive rights,
to provide for the issuance of Common
Stock upon the full conversion of this Note. The Company
is required at all times to have authorized and
reserved three times the number of shares
that is actually issuable upon full
conversion of the Note (based on the Conversion Price of the Notes
in effect from time to time) (the “Reserved
Amount”). The Reserved Amount shall
be increased from time to time in accordance
with the Company’s obligations. 

 

The
Company (i) acknowledges that
it will irrevocably instruct its transfer
agent to issue certificates for the Common Stock issuable
upon conversion of this Note, and (ii)
agrees that its issuance of this Note shall
constitute full authority to its officers and agents
who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates
for shares of Common Stock in accordance
with the terms and conditions of this Note.

 

If,
at any time
the Company does not maintain
the Reserved Amount it will be considered
an Event of Default as defined in this Note.

 

		1.4	Method
                                         of
                                         Conversion.

 

(a)                Mechanics of
Conversion. This Note may be converted by
the Holder, in whole or in part, at any
time following an Event of Default by submitting
to the Company a Notice of Conversion (by facsimile, e-mail or other reasonable
means of communication dispatched on the Conversion Date prior to
6:00 p.m., New York, New York time).

 

    	 	3	 

    	 	 	 

    

 

(b)              
Surrender of
Note Upon Conversion.
Notwithstanding anything to the contrary set forth herein, upon conversion
of this Note in accordance with
the terms hereof, the Holder shall not
be required to physically surrender this Note to the
Company unless the entire unpaid principal
amount of this Note is so converted. The Holder and the Company shall
maintain records showing the principal amount so converted
and the dates of such conversions
or shall use such other method, reasonably
satisfactory to the Holder and the Company, so as
not to require physical surrender of this Note upon each
such conversion. In the event of any
dispute or discrepancy, such records of the Holder shall,
prima facie, be controlling and
determinative in the absence of manifest
error. The Holder and any assignee,
by acceptance of this Note,
acknowledge and agree that, by reason of the provisions
of this paragraph, following conversion
of a portion of this Note,
the unpaid and unconverted principal amount of this Note represented
by this Note may be less
than the amount stated on the face hereof.

 

(c)               
Payment of
Taxes.
The Company shall not be
required to pay any tax
which may be payable in respect
of any transfer involved in the issue
and delivery of shares
of Common Stock or other securities or property on conversion
of this Note in a name other than that
of the Holder (or in street name), and
the Company shall not be required
to issue or deliver any such shares
or other securities or property
unless and until the person or persons (other
than the Holder or the custodian
in whose street name such shares are to be held
for the Holder’s account) requesting the issuance thereof
shall have paid to the Company the amount
of any such tax or shall have established
to the satisfaction of the Company
that such tax has been paid.

 

(d)              
Delivery of
Common Stock Upon Conversion. Upon
receipt by the Company
from the Holder of a facsimile
transmission or e-mail (or other reasonable means of communication)
of a Notice of Conversion meeting
the requirements for conversion as provided in this Section,
the Company shall issue and
deliver or cause to be issued and delivered to or upon the order
of the Holder certificates for the Common Stock issuable
upon such conversion within three (3)
business days after such receipt (the “Deadline”) (and, solely
in the case of conversion of the entire
unpaid principal amount hereof, surrender of this Note) in accordance
with the terms hereof and the Purchase Agreement.
The Company will pay any and all legal, deposit and transfer agent fees that may be incurred or charged in connection with
the issuance of shares of the Company's Common Stock to the Holder arising out of or relating to the conversions of this Note.
The Company will pay any and all legal, deposit and transfer agent fees that may be incurred or charged in connection with the
issuance of shares of the Company's Common Stock to the Holder arising out of or relating to the conversions of this Note.

 

    	 	4	 

    	 	 	 

    

 

(e)                Obligation of Company to Deliver Common
Stock. Upon receipt by the Company of
a Notice of Conversion, the Holder shall be deemed to be the holder
of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and
unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Company defaults on its obligations
under this Article I, all rights with respect to the portion of this Note being so converted shall forthwith terminate except
the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If
the Holder shall have given a Notice of Conversion as provided herein, the Company’s obligation to issue and deliver
the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the
Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against
any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Company
to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach
by the Holder of any obligation to the Company, and irrespective of any other circumstance which might otherwise limit such
obligation of the Company to the Holder in connection with such conversion. The Conversion Date specified in the Notice of
Conversion shall be the Conversion Date so long as the Notice of Conversion is received by the Company before 6:00 p.m., New
York, New York time, on such date.

 

(f)               
Delivery of
Common Stock by Electronic Transfer.In
lieu of delivering physical certificates
representing the Common Stock issuable upon conversion,
provided the Company is participating in the Depository Trust Company (“DTC”)
Fast Automated Securities Transfer (“FAST”) program, upon request
of the Holder and its compliance
with the provisions contained in Section 1.1 and
in this Section 1.4, the Company shall use its best
efforts to cause its transfer
agent to electronically transmit the Common
Stock issuable upon conversion to the Holder
by crediting the account of Holder’s
Broker with DTC through its Deposit
Withdrawal Agent Commission (“DWAC”) system.

 

(g)               Failure to
Deliver Common Stock Prior to Deadline. Without
in any way limiting the Holder’s right
to pursue other remedies, including actual damages and/or equitable relief, the
parties agree that if delivery of the Common Stock issuable upon conversion
of this Note is not delivered by the
Deadline the Company shall pay to the Holder $2,000 per day
in cash, for each day beyond the
Deadline that the Company fails to deliver
such Common Stock. Such cash amount shall be paid to Holder by
the fifth day of the month following
the month in which it has accrued or,
at the option of the Holder (by written
notice to the Company by the first
day of the month following the month in which
it has accrued), shall be added to the principal amount
of this Note, in which event
interest shall accrue thereon in accordance with
the terms of this Note and such additional
principal amount shall be convertible into Common Stock in accordance with
the terms of this Note. The Company agrees
that the right to convert is
a valuable right to the Holder. The damages
resulting from a failure, attempt to frustrate,
interference with such conversion right are difficult if not impossible
to qualify. Accordingly, the parties acknowledge that the
liquidated damages provision contained in this Section
are justified. Any delay or failure of performance by the Company hereunder shall be excused if and to the extent
caused by Force Majeure. For purposes of this agreement, Force Majeure shall mean a cause or event that is not reasonably
foreseeable and not caused by the Company, including acts of God, fires, floods, explosions, riots wars, hurricanes,
etc.

 

    	 	5	 

    	 	 	 

    

 

1.5             
Concerning the Shares. The shares of Common Stock issuable
upon conversion of this Note may not be sold or
transferred unless (i) such shares are sold pursuant to an
effective registration statement under the Act or (ii)
the Company or its transfer
agent shall have been furnished
with an opinion of counsel (which opinion
shall be in form, substance and scope
customary for opinions of counsel in
comparable transactions) to the effect that
the shares to be sold or transferred
may be sold or transferred pursuant to an
exemption from such registration or (iii)
such shares are sold or transferred pursuant
to Rule 144 under the Act (or
a successor rule) (“Rule 144”)
or (iv) such shares are transferred
to an “affiliate” (as defined in Rule 144) of the Company
who agrees to sell or otherwise
transfer the shares only in accordance with this Section
1.5 and who is an Accredited Investor.
Except as otherwise provided herein (and
subject to the removal provisions set forth below), until such time as
the shares of Common Stock issuable upon conversion
of this Note have been registered under
the Act or otherwise may
be sold pursuant to Rule 144 without any restriction as to the number
of securities as of a particular date
that can then be immediately sold,
each certificate for shares of Common
Stock issuable upon conversion of this Note that has
not been so included in an
effective registration statement or that
has not been sold pursuant to
an effective registration statement or an
exemption that permits removal of the legend,
shall bear a legend substantially in the following
form, as appropriate:

 

“NEITHERTHEISSUANCEANDSALEOFTHE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO
WHICHTHESESECURITIES ARE EXERCISABLEHAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, 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 OF 1933, AS AMENDED, OR (B) AN
OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THEHOLDER),INAGENERALLYACCEPTABLEFORM, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.
NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR
FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The legend
set forth above shall be removed
and the Company shall issue to the Holder a
new certificate therefore free of any transfer
legend if (i) the Company or its transfer
agent shall have received an opinion of counsel, in form,
substance and scope customary for opinions of counsel in comparable
transactions, to the effect that a public sale or transfer of such Common
Stock may be made without registration
under the Act, which opinion shall
be accepted by the Company so that the sale or transfer
is effected or (ii) in the case of
the Common Stock issuable upon conversion of
this Note, such security is registered for
sale by the Holder under an
effective registration statement filed under the Act or otherwise may
be sold pursuant to Rule 144 without any restriction as
to the number of securities as of a
particular date that can then be
immediately sold. In the event that
the Company does not accept the opinion of counsel
provided by the Buyer with respect to
the transfer of Securities
pursuant to an exemption from
registration, such as Rule 144 or Regulation S, at the Deadline,
it will be considered an Event of Default
pursuant to this note.

 

    	 	6	 

    	 	 	 

    

 

		1.6	Effect
                                         of
                                         Certain
                                         Events.

 

(a)               
Omit.

 

(b)               
Adjustment Due to Merger,
Consolidation, Etc.
If, at any
time when this Note is issued and outstanding
and prior to conversion of all
of the Notes, there shall be any merger,
consolidation, exchange of shares, recapitalization, reorganization,
or other similar event, as a result
of which shares of Common Stock of the Company
shall be changed into the same or
a different number of shares
of another class or classes of
stock or securities of the Company
or another entity, or in case
of any sale or conveyance of all
or substantially all of the assets
of the Company other than in connection
with a plan of complete liquidation
of the Company, then the Holder of this
Note shall thereafter have the right
to receive upon conversion of this Note,
upon the basis and upon the terms
and conditions specified herein and in lieu
of the shares of
Common Stock immediately theretofore issuable upon conversion, such
stock, securities or assets which the Holder
would have been entitled to receive
in such transaction had this Note
been converted in full immediately prior
to such transaction (without regard
to any limitations on conversion
set forth herein), and in any such case appropriate
provisions shall be made with respect
to the rights and interests of the Holder
of this Note to the end that the
provisions hereof (including, without limitation,
provisions for adjustment of the Conversion Price and of the number of shares
issuable upon conversion of the Note)
shall thereafter be applicable, as nearly as
may be practicable in relation
to any securities or assets thereafter deliverable
upon the conversion hereof. The Company
shall not affect any transaction described
in this Section 1.6(b) unless (a) it first
gives, to the extent practicable,
thirty (30) days prior written notice (but in any
event at least fifteen (15) days
prior written notice) of the record
date of the special meeting of shareholders to approve, or if there is no such
record date, the consummation of, such merger,
consolidation, exchange of shares,
recapitalization, reorganization or other similar event
or sale of assets (during which
time the Holder shall be entitled to
convert this Note) and (b) the resulting
successor or acquiring entity (if not
the Company) assumes by written
instrument the obligations of this Section
1.6(b). The above provisions shall similarly apply to successive
consolidations, mergers, sales, transfers
or share exchanges. 

 

    	 	7	 

    	 	 	 

    

 

(c) Adjustment Due
to Distribution.
If the Company shall
declare or make any distribution of
its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by
way of return of capital or otherwise
(including any dividend or distribution
to the Company’s shareholders in
cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”),
then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders
entitled to such Distribution, to receive the amount of such
assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had
such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to
such Distribution.

 

(d) Omit.

 

(e) Omit.

 

(f)                Notice of
Adjustments.
Upon the occurrence of each
adjustment or readjustment of the Conversion Price
as a result of the events described in this Section
1.6, the Company, at its expense,
shall promptly compute such adjustment
or readjustment and prepare and furnish to the Holder
of a certificate setting forth such
adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment
is based. The Company shall,
upon the written request at any time of the Holder,
furnish to such Holder a like certificate
setting forth (i) such adjustment or readjustment, (ii) the Conversion
Price at the time in effect and

(iii)
the number
of shares of Common Stock and
the amount, if any, of other
securities or property which at the time would be received
upon conversion of the Note.

 

		1.7	Omit.

 

1.8             
Status as Shareholder. Upon submission
of a Notice of Conversion by a Holder,
(i) the shares covered thereby (other than the shares,
if any, which cannot be issued
because their issuance would exceed
such Holder’s allocated portion of the Reserved
Amount or Maximum Share Amount) shall
be deemed converted into shares
of Common Stock and (ii) the Holder’s
rights as a Holder of such
converted portion of this Note shall cease and terminate, excepting only the
right to receive certificates for such
shares of Common Stock and to any remedies
provided herein or otherwise available at law or in equity to such Holder
because of a failure by the Company
to comply with the terms of this Note.
Notwithstanding the foregoing, if a Holder has not received certificates
for all shares of Common Stock prior to the tenth
(10th) business day after the expiration
of the Deadline with respect to a conversion of any portion
of this Note for any reason, then (unless
the Holder otherwise elects to retain its status
as a holder of Common Stock by so notifying the Company)
the Holder shall regain the rights
of a Holder of this Note with respect
to such unconverted portions of this Note and the Company
shall, as soon as practicable, return such unconverted Note to the Holder or, if
the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted.
In all cases, the Holder shall retain all of
its rights and remedies (including, without limitation, (i) the right to receive Conversion Default Payments pursuant to Section
1.3 to the extent required thereby for such Conversion Default and any subsequent
Conversion Default and (ii) the right to have the Conversion Price with respect to subsequent conversions determined in accordance
with Section 1.3) for the Company’s failure
to convert this Note.

 

    	 	8	 

    	 	 	 

    

 

1.9 Prepayment. Maker may prepay this Note
at any time before the Maturity Date.

 

ARTICLE
II. Omit.

 

ARTICLE
III. EVENTS
OF DEFAULT

 

If
any of
the following events of default (each,
an “Event of Default”) shall
occur:

 

3.1             
Failure to Pay Principal or
Interest. The Company
fails to pay the principal
hereof or interest thereon when due on this Note,
whether at maturity, upon acceleration or otherwise.

 

3.2             
Conversion and the Shares.The
Company fails to issue shares of Common
Stock to the Holder (or announces or threatens
in writing that it will not honor its obligation to do so) upon exercise
by the Holder of the conversion
rights of the Holder in accordance with the terms of this Note,
fails to transfer or cause its
transfer agent to transfer (issue) (electronically
or in certificated form) any certificate for
shares of Common Stock issued to the Holder
upon conversion of or otherwise pursuant to this Note as
and when required by this Note, the Company
directs its transfer agent not
to transfer or delays, impairs, and/or hinders
its transfer agent in transferring (or
issuing) (electronically or in certificated form) any certificate
for shares of Common Stock to be issued to the Holder
upon conversion of or otherwise pursuant
to this Note as and when required
by this Note, or fails to remove (or
directs its transfer agent not to remove
or impairs, delays, and/or hinders its transfer
agent from removing) any restrictive legend (or to withdraw any stop transfer
instructions in respect thereof) on any certificate
for any shares of Common Stock issued
to the Holder upon conversion
of or otherwise pursuant to this Note as and when required by this Note (or
makes any written announcement, statement
or threat that it does not intend
to honor the obligations described in this paragraph) and
any such failure shall continue uncured (or
any written announcement, statement or threat
not to honor its obligations shall not be rescinded
in writing) for three (3) business days
after the Holder shall have delivered a Notice of Conversion.
It is an obligation of the Company
to remain current in its obligations
to its transfer agent. It shall
be an event of default of this Note,
if a conversion of this Note is delayed,
hindered or frustrated due to a balance
owed by the Company to its transfer agent. If
at the option of the Holder,
the Holder advances any funds to the
Company’s transfer agent in order
to process a conversion, such advanced funds
shall be paid by the Company to
the Holder within forty eight (48) hours
of a demand from the Holder.

 

3.3             
Breach of Covenants.
The Company breaches any covenant
or other term or
condition contained in this Note and
any collateral documents including
but not limited to the Purchase Agreement.

 

3.4              Breach of
Representations and Warranties.Any
representation or warranty of the Company made herein
or in any agreement, statement or certificate
given inwriting pursuant hereto or in connection herewith (including, without limitation, the Purchase
Agreement), shall be false or misleading in any material
respect when made and the breach of which
has (or with the passage of time will have) a material adverse effect on
the rights of the Holder with respect to
this Note or the Purchase Agreement.

 

    	 	9	 

    	 	 	 

    

 

3.5             
Receiver or Trustee.
The Company or any subsidiary of
the Company shall make an assignment for
the benefit of creditors, or apply for or consent to the appointment
of a receiver or trustee for it
or for a substantial part of its property
or business, or such a receiver or trustee
shall otherwise be appointed.

 

3.6             
Judgments. Any money judgment, writ
or similar process shall be entered or
filed against the Company or
any subsidiary of the Company or any
of its property or other assets for more than $50,000, and
shall remain unvacated, unbonded or unstayed for a period of twenty (20)
days unless otherwise consented to by
the Holder, which consent will not be unreasonably withheld.

 

3.7             
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation
proceedings or other proceedings,
voluntary or involuntary, for relief under
any bankruptcy law or any law for the
relief of debtors shall be instituted
by or against the Company or any
subsidiary of the Company.

 

3.8             
Delisting of Common Stock.
If the Company shall fail to maintain
in good standing the listing of the Common Stock on the OTC
Markets or an equivalent replacement exchange/market, the Nasdaq National
Market, the Nasdaq SmallCap Market or the New
York Stock Exchange or if the Company's shall lose the "bid" price
for its common stock on any given trading day.

 

3.9             
Failure to Comply with the Exchange
Act. If within thirty (30) calendar days from the issuance of this Note, the Company
shall fail to comply, in a timely manner, with the reporting
requirements of the Exchange Act; and/or the Company shall
cease to be subject to the reporting
requirements of the Exchange Act.

 

3.10         
Liquidation. Any dissolution, liquidation,
or winding up of Company or any substantial
portion of its business.

 

3.11         
Cessation of Operations. Any cessation of operations by
Company or Company admits it is
otherwise generally unable to pay its
debts as such debts become due, provided, however,
that any disclosure of the Company’s
ability to continue as a “going concern”
shall not be an admission that the Company
cannot pay its debts as they
become due.

 

3.12         
Maintenance of Assets.
The failure by Company
to maintain any material intellectual
property rights, personal, real property or other
assets which are necessary to conduct its business
(whether now or in the future).

 

3.13          Financial
Statement Restatement. The restatement of any financial
statements filed by the
Company with the SEC for any date or period from two years
prior to the Issue
Date of this Note and until
this Note is no longer
outstanding, if the result of such
restatement would,
by comparison to
the original financial
statement, have constituted a material
adverse effect on
the rights of the Holder with respect to
this Note or supporting documents.

 

    	 	10	 

    	 	 	 

    

 

		3.14	Omit.

  

3.15         
Replacement of Transfer Agent.
In the event that the
Company proposes to replace
its transfer agent, the Company
fails to provide, prior to the effective
date of such replacement, a fully executed
Irrevocable Transfer Agent Instructions in a form
as initially delivered pursuant to the Purchase
Agreement (including but not limited to the provision
to irrevocably reserve shares of Common Stock in the
Reserved Amount) signed by the successor
transfer agent to Company and the
Company.

 

3.16         
Cross-Default. Notwithstanding anything to the contrary contained
in this Note or the other related or companion
documents, a breach or default
by the Company of any covenant
or other term or condition contained
in any of the Other Agreements, after
the passage of all applicable notice and cure or grace
periods, shall, at the option of the Holder,
be considered a default under
this Note and the Other Agreements,
in which event the Holder shall be entitled
(but in no event required) to apply all rights
and remedies of the Holder under the terms of this Note and
the Other Agreements by reason of
a default under said Other Agreement
or hereunder. “Other Agreements” means, collectively, all agreements
and instruments between, among or by: (1)
the Company, and, or for the benefit
of, (2) the Holder and any affiliate
of the Holder, including, without limitation, promissory notes;
provided, however, the term “Other
Agreements” shall not include
the related or companion documents to
this Note. Each of the loan transactions
will be cross- defaulted with each other loan
transaction and with all other existing and
future debt of Company.

 

Upon
the occurrence and during the continuation of any Event
of Default specified in Section 3.1
(solely with respect to failure to
pay the principal hereof or interest
thereon when due at the Maturity Date),
the Note shall become immediately due and
payable and the Company shall pay to
the Holder, in full satisfaction of its obligations
hereunder, an amount equal to the Default
Sum (as defined herein). UPON THE
OCCURRENCE AND DURING THE CONTINUATION OF ANY
EVENT OF DEFAULT SPECIFIED IN SECTION 3.2,
THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE COMPANY
SHALL PAY TO THE HOLDER, IN FULL
SATISFACTION OF ITS OBLIGATIONS
HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE
DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED
BY (Z) TWO (2). Upon the occurrence and during the continuation of
any Event of Default specified in Sections 3.1
(solely with respect to failure to pay the principal
hereof or interest thereon when
due on this Note upon a Trading Market Prepayment Event pursuant to Section 1.7 or upon acceleration),
3.3, 3.4, 3.6, 3.8, 3.9, 3.11, 3.12, 3.13, 3.14, and/or 3. 15 exercisable
through the delivery of written notice to the Company by such
Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections
of Articles III (other than failure to pay the
principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately
due and payable and the Company shall
pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal 125% times the sum of (w)
the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount
of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any,
on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3
and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred
to in clauses (x), (y) and (z) shall collectively be known as the “Default Sum”).

 

    	 	11	 

    	 	 	 

    

 

If
the Company
fails to pay the Default Amount
within five (5) business days of written
notice that such amount is due and payable, then the Holder
shall have the right at any
time, so long as the Company
remains in default (and so long
and to the extent that there are sufficient
authorized shares), to require the Company,
upon written notice, to immediately issue,
in lieu of the Default Amount, the number
of shares of Common Stock of the
Company equal to the Default
Amount divided by the Conversion
Price then in effect.

 

ARTICLE
IV. MISCELLANEOUS

 

4.1             
Failure or Indulgence Not
Waiver. No failure or
delay on the part of the Holder
in the exercise of any power, right or
privilege hereunder shall operate as
a waiver thereof, nor shall any single
or partial exercise of any such
power, right or privilege preclude other or further
exercise thereof or of any other
right, power or privileges. All rights
and remedies existing hereunder are cumulative to, and
not exclusive of, any rights or remedies
otherwise available.

 

4.2             
Notices. All notices, demands, requests,
consents, approvals, and other communications
required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i)
personally served, (ii) deposited in the mail, registered
or certified, return receipt requested,
postage prepaid, (iii) delivered by
reputable air courier service with charges
prepaid, or (iv) transmitted by hand
delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such
party shall have specified most recently by
written notice. Any notice or
other communication required or permitted
to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by
facsimile, with accurate confirmation
generated by the transmitting facsimile machine, at the address
or number designated below (if delivered
on a business day during normal
business hours where such notice is
to be received), or the first business
day following such delivery (if delivered
other than on a business day
during

normal
business hours where such notice is to be received)
or (b) on the second business
day following the date
of mailing by express
courier service, fully prepaid, addressed to such
address, or upon actual receipt
of such mailing, whichever shall first occur.
The addresses for such communications shall be:

 

    	 	12	 

    	 	 	 

    

 

If
to the Company,
to:

 

HypGen
Inc.

312
N Mansfield Ave Los Angeles, CA 90036 Attn: Richard L. Chang

 

If
to the Holder:

 

GHS
Investments, LLC.

420
Jericho Turnpike Suite 207

Jericho,
NY 11753

 

4.3             
Amendments. This Note and any
provision hereof may only be amended
by an instrument in writing
signed by the Company and the Holder.
The term “Note” and all reference
thereto, as used throughout this
instrument, shall mean this instrument (and
the other Notes issued pursuant to the Purchase
Agreement) as originally executed, or if later
amended or supplemented, then as so amended
or supplemented.

 

4.4             
Assignability.This Note shall be
binding upon the Company and its successors
and assigns, and shall inure to be the benefit
of the Holder and its successors and
assigns. Notwithstanding anything in this Note to the contrary, this Note may be pledged
as collateral in connection with a bona fide
margin account or other lending
arrangement.

 

4.5             
Cost of Collection. If
default is made in the payment
of this Note, the Company
shall pay the Holder hereof costs
of collection, including reasonable attorneys’
fees.

 

4.6              Governing Law.This
Note shall be governed by and
construed in accordance with
the laws of the State of Nevada without regard to principles of conflicts
of laws. Any action brought by either
party against the other concerning
the transactions contemplated by this
Note shall be brought only in
the state or federal courts located in New York City, New York. The parties
to this Note hereby irrevocably waive any
objection to jurisdiction and venue of any action
instituted hereunder and shall not assert any defense
based on lack of jurisdiction or venue
or based upon forum non conveniens.
The Company and Holder waive
trial by jury. The prevailing
party shall be entitled to recover
from the other party its reasonable
attorney's fees and costs. In the event that
any provision of this Note or any other agreement
delivered in connection herewith is invalid or unenforceable
under any applicable statute
or rule of law, then such
provision shall be deemed inoperative to the extent that it
may conflict therewith and shall be deemed
modified to conform with such
statute or rule of law. Any
such provision which may prove
invalid or unenforceable under any law
shall not affect the validity or enforceability of any
other provision of any agreement.
Each party hereby irrevocably waives personal service of process
and consents to process being served in
any suit, action or proceeding in connection with
this Agreement or any other
Transaction Document by mailing a
copy thereof via registered or certified
mail or overnight delivery (with
evidence of delivery) to such
party at the address in effect
for notices to it under this Agreement
and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in
any way any right to serve
process in any other manner permitted by law. Wherever
possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement shall be prohibited by, unenforceable or invalid under any jurisdiction, such
provision shall as to such jurisdiction, be severable and be ineffective to the extent of such prohibition or invalidity,
without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision
in any other jurisdiction. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by, unenforceable or
invalid under any jurisdiction, such provision shall as to such jurisdiction, be severable and be ineffective to the extent
of such prohibition or invalidity, without invalidating the remaining provisions of this Agreement or affecting the validity
or enforceability of such provision in any other jurisdiction.

 

    	 	13	 

    	 	 	 

    

 

4.7            Certain Amounts.Whenever
pursuant to this Note the Company is required
to pay an amount in excess of
the outstanding principal amount (or the portion
thereof required to be paid at that time)
plus accrued and unpaid interest
plus Default Interest on such interest,
the Company and the Holder agree that
the actual damages to the Holder from
the receipt of cash payment on this
Note may be difficult to determine and
the amount to be so paid by the Company
represents stipulated damages and not a penalty and
is intended to compensate the Holder
in part for loss of the opportunity to convert this Note and
to earn a return from the sale of
shares of Common Stock acquired upon
conversion of this Note at a price
in excess of the price paid for such
shares pursuant to this Note.
The Company and the Holder hereby agree
that such amount of stipulated damages is not plainly disproportionate
to the possible loss to the Holder from the receipt
of a cash payment without the opportunity to convert
this Note into shares of Common Stock.

 

		4.8	Omit.

 

4.9              Notice
of Corporate Events. Except as
otherwise provided below, the Holder of this Note shall have
no rights as a Holder of Common Stock unless
and only to the extent that
it converts this Note into Common Stock. The Company shall provide the Holder with prior
notification of any meeting of the Company’s shareholders (and
copies of proxy materials and other information sent to shareholders). In
the event of any taking by the
Company of a record of its shareholders
for the purpose of determining shareholders who are
entitled to receive payment of any dividend
or other distribution, any right to subscribe
for, purchase or otherwise
acquire (including by way of merger, consolidation, reclassification or
recapitalization) any share of any class or any other securities
or property, or to receive any
other right, or for the purpose of determining
shareholders who are entitled to vote in connection with any
proposed sale, lease or conveyance
of all or substantially all of the assets of
the Company or any proposed
liquidation, dissolution or winding up of the Company, the Company shall
mail a notice to the Holder, at
least twenty (20) days prior to the record
date specified therein (or thirty (30) days prior to the consummation of
the transaction or event,
whichever is earlier), of the date on which any such
record is to be taken for the purpose of such dividend, distribution,
right or other event, and a brief
statement regarding the amount and character of such
dividend, distribution, right or other event to
the extent known at such time. The Company shall
make a public announcement of
any event requiring notification to the Holder
hereunder substantially simultaneously with the notification to the Holder in accordance
with the terms of this Section 4.9.

 

    	 	14	 

    	 	 	 

    

 

4.10         
Remedies.The Company acknowledges
that a breach by it of its obligations
hereunder will cause irreparable harm to the Holder,
by vitiating the intent
and purpose of the transaction contemplated hereby. Accordingly,
the Company acknowledges that the
remedy at law for a breach of its obligations
under this Note will be inadequate and
agrees, in the event of a breach
or threatened breach by the Company
of the provisions of this Note, that
the Holder shall be entitled,
in addition to all other available remedies
at law or in equity, and in addition
to the penalties assessable herein, to an
injunction or injunctions restraining, preventing or curing any
breach of this Note and to enforce
specifically the terms and provisions thereof, without the necessity of
showing economic loss and without any bond or other
security being required.

 

IN
WITNESS WHEREOF, Company
has caused this Note to be signed in its
name by its duly authorized
officer:

 

 

HypGen,
Inc.

  

By:
/s/ Richard L. Chang

 

Print:
Richard L. Chang

Title/Date:
Director 11/19/2017

    	 	15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}]]