Document:

fncx_ex1019.htm

Exhibit 10.19

 

FORM OF LINE OF CREDIT GRID PROMISSORY NOTE

 

New York, New York

	April  __, 2012	 $___________________

 

1) FOR VALUE RECEIVED, on the Maturity Date, Function(x) Inc., a Delaware corporation (the "Borrower"), at its offices at _______________________, promises to pay to the order of [_______________________________] (the "Lender") at its offices at _________________________________, or at such other place as the Lender may designate in writing, the unpaid amount of all draws, plus accrued and unpaid interest due with respect to all outstanding draws, made by the Lender hereunder.

 

2) The Maturity Date shall be the first to occur of (a) twelve (12) months from the date of the first draw; or (b) upon funding of at least Forty Million Dollars ($40,000,000)1 from one or more debt, equity or other capital transactions of the Borrower or any of its wholly-owned subsidiaries.

 

3) Interest.  (a) Borrower will pay interest on the unpaid principal amount of all draws from time to time outstanding from the date of each draw until each such draw has been paid in full. Interest shall accrue at the simple interest rate equal to six percent (6%) per annum, simple, with respect to each draw. Interest shall be computed on the basis of a 365 day year for actual days elapsed, but in no event higher than the maximum rate permitted under applicable law.

 

     (b) Borrower will pay interest, calculated at the rate set forth above, upon the Maturity Date or such earlier date upon which any draw is paid. In addition, Borrower will pay a default rate equal to four percent (4%) per annum in excess of the rate set forth herein if an Event of Default has occurred and is continuing. Notwithstanding the foregoing however, in no event shall interest exceed the maximum legal rate permitted by law. All payments, including insufficient payments, shall be credited, regardless of their designation by Borrower, first to outstanding late charges, then to interest and the remainder, if any, to principal.

 

4) Requests for Loans; Disbursement of Proceeds. Borrower may borrow, and Lender agrees to make draws hereunder in amounts of no less than One Hundred Thousand Dollars ($100,000), upon notice of a proposed borrowing, and the requested amount thereof, to the Lender not later than 12:00 Noon (New York time) five (5) days prior to the date on which the proposed borrowing is requested to be made, subject to the satisfaction of all conditions precedent to such draw, including the delivery to the Lender of a funding memorandum.  Lender shall not be obligated to make draws more than once per month. Each notice of borrowing shall be delivered by hand or facsimile transmission. Each such notice shall be irrevocable by and binding on Borrower. Unless otherwise directed in writing by Borrower, the Lender shall promptly disburse the proceeds of such draw made hereunder by crediting the amount thereof as instructed in the applicable Disbursement Request.

1 If only $10 million is borrowed, then the $40,000,000 shall be replaced with $30,000,000

 

  

  

  

 

5) Payments and Prepayments; Use of Grid. The Lender is hereby authorized by Borrower to enter and record on the schedule attached hereto (i) the loan number, (ii) the date of each draw made under this Grid Note, (iii) the dollar amount of the draw, (iv) the applicable interest rate, (v) interest due on Maturity Date, (vi) each payment and prepayment of any draw thereon, and (vii) date of payment, without any further authorization on the part of Borrower or any endorser or guarantor of this Grid Note; provided, however, that the Lender shall promptly deliver to the Borrower a copy of this Grid Note following the entry of each draw hereunder. The entry of a draw on said schedule shall be prima facie and presumptive evidence of the entered draw and its conditions, absent manifest error. The Lender's failure to make an entry, however, shall not limit or otherwise affect the obligations of Borrower or any endorser or guarantor of this Grid Note. Borrower may make prepayments in whole or in part hereunder at any time, provided accrued, but unpaid interest is paid through the prepayment date. If any payment of principal or interest becomes due on a day on which the Lender is closed, such payment shall be made not later than the next succeeding Business Day (a “Business Day” shall be considered to be Monday through Friday from 9am to 5pm local time, excluding weekends and public holidays) and such extension shall be included in computing interest in connection with such payment. All payments by Borrower on account of principal, interest or fees hereunder shall be made in lawful money of the United States of America, in immediately available funds.

 

6) Use of Proceeds. The proceeds of each draw hereunder shall be used for general corporate and working capital purposes of Borrower. Borrower will not, directly or indirectly, use any proceeds of draws hereunder for the purpose of purchasing or carrying any margin stock within the meaning of Regulation X of the Board of Governors of the Federal Reserve System or to extend credit to any person for the purpose of purchasing or carrying any such margin stock, or for any purpose which violates, or is inconsistent with, Regulation X of such Board of Governors.

 

7) Event of Default.

 

(a) It is expressly agreed that the whole of the indebtedness evidenced by this Grid Note shall immediately become due and payable, at the option of the Lender, on the happening of any default or event constituting an event of default hereunder (each an "Event of Default").

 

(b) An Event of Default shall occur on:  (i) the non-payment of any of the amounts due hereunder within five (5) Business Days after the date such payment is due and payable; (ii) dissolution or liquidation, as applicable, of the Borrower; (iii) any petition in bankruptcy being filed by or against the Borrower or any proceedings in bankruptcy, or under any Acts of Congress relating to the relief of debtors, being commenced for the relief or readjustment of any indebtedness of the Borrower either through reorganization, composition, extension or otherwise; provided, however, that Borrower shall have a sixty (60) day grace period to obtain the dismissal or discharge of involuntary proceedings filed against it, it being understood that during such sixty (60) day grace period, the Lender shall not be obligated to make draws hereunder and the Lender may seek adequate protection in any bankruptcy proceeding; (iv) the making by the Borrower of an assignment for the benefit of creditors, calling a meeting of creditors for the purpose of effecting a composition or readjustment of its debts, or filing a petition seeking to take advance of any other law providing for the relief of debtors; (v) any seizure, vesting or intervention by or under authority of a government, by which the management of the Borrower, is displaced or its authority in the conduct of its business is curtailed; (vi) the appointment of any receiver of any material property of the Borrower; (vii) if any warranty, representation, statement, report or certificate made now or hereafter by Borrower to Lender pursuant hereto is untrue or incorrect in any material respect at the time made or delivered; or (viii) the Borrower shall contest, dispute or challenge in any manner, whether in a judicial proceeding or otherwise, the validity or enforceability of any material provision set forth herein or any transaction contemplated in this Grid Note. 

 

  

  

  

 

8) Governing Law. This Grid Note shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to its rules on conflicts of laws.

 

9) No Waiver. No failure or delay on the part of the Lender in exercising any right, power, or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power, or remedy preclude any other or further exercise thereof or the exercise of any other right, power, or remedy hereunder. The rights and remedies provided herein are cumulative, and are not exclusive of any other rights, powers, privileges, or remedies, now or hereafter existing, at law or in equity or otherwise.

 

10) Costs and Expenses. Borrower shall reimburse the Lender for all costs and expenses incurred by the Lender in connection with the enforcement of this Grid Note or any document, instrument or agreement relating thereto.

 

11) Amendments. No amendment, modification, or waiver of any provision of this Grid Note nor consent to any departure by Borrower therefrom shall be effective unless the same shall be in writing and signed by the Lender and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

12) Successors and Assigns. This Grid Note shall be binding upon Borrower and its heirs, legal representatives, successors and assigns and the terms hereof shall inure to the benefit of the Lender and its successors and assigns, including subsequent holders hereof.

 

13) Severability. The provisions of this Grid Note are severable, and if any provision shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall not in any manner affect such provision in any other jurisdiction or any other provision of this Grid Note in any jurisdiction.

 

14) Entire Agreement. This Grid Note sets forth the entire agreement of Borrower and the Lender with respect to this Grid Note and may be modified only by a written instrument executed by Borrower and the Lender.

 

15) Headings. The headings herein are for convenience only and shall not limit or define the meaning of the provisions of this Grid Note.

 

16) Jurisdiction; Service of Process. Borrower agrees that in any action or proceeding brought on or in connection with this Grid Note (i) the Supreme Court of the State of New York for the County of New York, or (in a case involving diversity of citizenship) the United States District Court in the Southern District of New York, shall have jurisdiction of any such action or proceeding, (ii) service of any summons and complaint or other process in any such action or proceeding may be made by the Lender upon Borrower by registered or certified mail directed to Borrower at its address referenced above, Borrower hereby waiving personal service thereof, and (iii) within thirty (30) days after such mailing Borrower shall appear or answer to any summons and complaint or other process, and should Borrower fail to appear to answer within said thirty day period, it shall be deemed in default and judgment may be entered by the Lender against Borrower for the amount as demanded in any summons or complaint or other process so served.

 

17) WAIVER OF THE RIGHT TO TRIAL BY JURY. BORROWER AND, BY ITS ACCEPTANCE HEREOF, THE LENDER, HEREBY IRREVOCABLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM, OR COUNTERCLAIM, WHETHER IN CONTRACT OR TORT, AT LAW OR IN EQUITY, IN ANY MANNER CONNECTED WITH THIS GRID NOTE OR ANY TRANSACTIONS HEREUNDER. NO OFFICER OF THE LENDER HAS AUTHORITY TO WAIVE, CONDITION, OR MODIFY THIS PROVISION.

 

Signatures on following page

 

  

  

  

 

	 	Function(x) Inc.	 
	 	 	 	 
	
Date

	
By: 

	/s/ 	 
	 	 	Name: Janet Scardino  	 
	 	 	Title: Chief Executive Officer     	 
	 	 	 	 

 

  

  

  

 

SCHEDULE TO LINE OF CREDIT GRID PROMISSORY NOTE

 

Borrower:  Function(x) Inc.

 

Date of Note:  April __, 2012

 

	
Loan Number

	
Date of draw

	
Commitment Amount

	
draw

	
Maturity Date

	
Interest

Rate

	
Interest Due upon

Maturity Date

	
Amount Paid

	
Date Payment

	  	  	  	  	  	
6%

	  	  	  
	  	  	  	  	  	
6%

	  	  	  
	  	  	  	  	  	
6%

	  	  	  
	  	  	  	  	  	
6%

	  	  	  
	  	  	  	  	  	
6%

	  	  	  
	  	  	  	  	  	
6%

	  	  	  
	  	  	  	  	  	
6%

	  	  	  
	  	  	  	  	  	
6%

	  	  	  
	  	  	  	  	  	
6%

	  	  	  
	  	  	  	  	  	
6%

	  	  	  
	  	  	  	  	  	
6%

	  	  	  

  

  

  

 

FUNDING MEMORANDUM

 

_________ __, 2012

[_________________________]

[_________________________]

[_________________________]

Dear [_________________________]:

We hereby request that you make available in our account No. _____________ the amount of $______________, and which shall constitute a draw under the Line of Credit Grid Note made by Function(x) Inc. (“Borrower”) to the order of [_________________________] (the “Lender”) dated as of April __, 2012 (as amended from time to time, the “Grid Note”).

 

Under the Grid Note, the Lender is authorized to enter and record on the schedule attached thereto (i) the loan number, (ii) the date of each draw, (iii) the Commitment Amount, (iv) the dollar amount of the draw, (v) the Maturity Date of the draw, (vi) the interest rate, (vii) interest due on Maturity Date, (viii) each payment of any draw and (ix) date of payment, without any further authorization on the part of Borrower.

 

Borrower represents, warrants and certifies to Lender as follows:

 

(a) there does not exist any known deficiency in any of the documents identified in this Funding Memorandum, and Borrower agrees that any deficiencies subsequently discovered will be promptly reported to the Lender;

 

(b) both before and after funding the draw requested hereunder Borrower is not in default, no Event of Default exists, and no Event of Default shall result from the making of the draw requested hereunder;

 

(c) all of the representations and warranties of Borrower contained herein shall be true and correct in all material respects to the same extent as though made on and as of any making of the draw requested hereunder; and

 

(d) after giving effect to the amount of the requested draw, the aggregate amount of outstanding draws under the Facility shall not exceed $20,000,000.

 

 

	 	Very truly yours,	 
	 	 	 
	 	Function(x) Inc.	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	Name:	 	 
	 	Title:Adamis 8-K

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This Securities
Purchase Agreement (“Agreement”) is entered into as of April 2, 2012 by and between ADAMIS PHARMACEUTICALS CORPORATION,
a corporation organized under the laws of the State of Delaware (the “Company”), and GEMINI MASTER FUND, LTD.,
a Cayman Islands corporation (“Purchaser”).

 

WHEREAS, subject
to the terms and conditions set forth in this Agreement, the Company desires to issue and sell to the Purchaser, and the Purchaser
desires to purchase from the Company, a Note and Shares of the Company in a PIPE Transaction as set forth herein;

 

NOW THEREFORE, in
consideration of the foregoing premises and the covenants contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the Purchaser agree as follows:

 

1.            
Incorporation by Reference; Definitions.

 

(a)          
Incorporation. This Agreement incorporates by reference, as if set forth herein in its entirety and including without
limitation all terms, conditions and provisions set forth therein, the PipeFund Services Organization Standard Transaction Document
labeled GTC 8-11 (General Terms and Conditions) available and accessible at www.pipefund.com (“PST Document GTC”);
provided, however, that to the extent any of the terms, conditions or provisions of PST Document GTC contradict or conflict
with the terms, conditions or provisions of this Agreement, this Agreement shall control.

 

(b)         
Defined Terms. Each initially capitalized term used but not defined in this Agreement (including PST Document GTC
as incorporated herein pursuant to the preceding Section), and each initially capitalized term used but not defined in any other
Transaction Document, shall have the meaning ascribed thereto in the PipeFund Services Organization Standard Transaction Document
labeled 8-11 DEF (Definitions) available and accessible at www.pipefund.com.

 

2.            
Securities. The Company agrees to issue and sell, and the Purchaser agrees to purchase,
in consideration for payment by the Purchaser of $1,000,000 (“Subscription Amount”),
upon the terms and conditions contained in this Securities Purchase Agreement, the following Securities:

 

(a)          
Note. A 10% Senior Convertible Note of the Company, in the form attached hereto as Exhibit A (“Note”),
with an aggregate original principal amount equal to such Purchaser’s Subscription Amount, which Note shall (i) bear interest
at 10% per annum, (ii) be convertible into shares of Common Stock at a Conversion Price of $0.25 per share, and (iii) mature on
the date which is nine (9) months following the Closing Date; and

 

(b)        
Common Stock. 1,000,000 shares of the Company’s Common Stock (“Shares”).  

 

3.            
Specific Terms.

 

(a)          
The Bulletin Board shall constitute an additional Eligible Market.

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(b)         
“Additional Financing” means (i) any issuance of any debt, equity or equity-linked securities, (ii) any credit
facility or credit arrangements, or (iii) any sale of profit participation or royalty streams, in each case by the Company or any
Subsidiary (whether or not a Subsidiary on any Closing Date) in a single financing transaction or two related financing transactions
in the aggregate amount equal to or greater than Ten Million Dollars ($10,000,000).

 

(c)          
“Exempt Issuance” shall also include any issuance of securities pursuant to acquisitions, in-licensing of the
Company’s Intellectual Property, products or services, or other strategic transactions, in each case approved by a majority
of the members of the Board of Directors, provided in each case any such issuance shall only be to a Person (or to the shareholders
or other equity owners of such Person) which is, itself or through its subsidiaries, an operating company engaged in significant
business activities synergistic with the business of the Company and in which the Company receives benefits in addition to the
investment of funds (if any), but shall not include a transaction in which the Company is issuing securities primarily for the
purpose of raising capital or to an entity whose primary business is investing in securities unless such transaction is an Additional
Financing.

 

4.            
Closing Procedure. There shall not be any Escrow Agreement or Documents Escrow Agreement.
On or prior to the Closing Date, the Company shall deliver the original executed copy of the Note to Company counsel with a copy
to Peter J. Weisman, P.C. Company’s counsel shall (a) hold such Note in trust on behalf of the Purchaser and the Company,
and (b) deliver such Note to the Purchaser promptly following the Company’s acknowledgment that it has received the Subscription
Amount from the Purchaser. A stock certificate or other reasonably acceptable evidence of ownership of the Shares being issued
to the Purchaser hereunder shall be delivered to the Purchaser, in the name of the Purchaser, within five (5) Trading Days following
the Closing Date.

 

5.            
Expenses. The Company shall pay a non-refundable, non-accountable sum equal to $15,000
as and for the Purchaser’s legal fees incurred in connection with the preparation of the Transaction Documents and consummation
of the Transactions, which amount has already been paid. 

 

6.            
Company Address for Notices:

 

	
        Adamis Pharmaceuticals Corporation

        11455 El Camino Real, Suite 310

        San Diego, CA 92130

        Facsimile: 866.893.3622

        Email: adcarlo@aol.com

        Contact person: Dennis J. Carlo

         
	
        with a copy to:

        Weintraub Genshlea Chediak Tobin & Tobin

        400 Capitol Mall, 11th floor

        Sacramento, CA 95814

        Facsimile: (916) 446-1611

        Email: kkelso@weintraub.com

        Contact person: Kevin Kelso, Esq.

7.            
Modifications and Additional Terms.

 

(a)          
Additional Documents. In addition to the those items set forth in Section 2.3(a)(viii) of PST Document GTC, on the
Closing Date the Company shall deliver or cause to be delivered to the Purchaser a Guarantee, in substantially the form of Exhibit
B attached hereto, duly executed by each of the Company’s Subsidiaries (other than Biosyn).

 

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(b)         
Modifications to PST Documents GTC and DEF.

 

(i)            
No Registration Rights. Sections 6.1 through 6.3 of PST Document GTC are hereby deleted such that the Purchaser shall
not have any registration rights except for the piggyback registration rights set forth in Section 6.4 thereof. Notwithstanding
the definition of “Registrable Securities” contained in PST Document DEF, Registrable Securities shall not include
any Shares or Underlying Shares to the extent such securities may be sold pursuant to Rule 144 after six (6) months so long as
the Purchaser is not considered an affiliate of the Company for purposes of 144 and the Company remains subject to, and in compliance
with, the filing requirements under Section 13 or 15(d) of the Exchange Act. To the extent any Registrable Securities are registered
under the Securities Act pursuant to Section 6.4 of PST Document GTC, the Purchaser shall have the same rights and obligations
as the other selling stockholders in the Registration Statement except to the extent otherwise provided in PST Document GTC and
except that the Purchaser shall not be entitled to the liquidated damages, if any, granted to such other selling stockholders unless
otherwise agreed by the Company. Notwithstanding the registration obligations set forth in this Section
6.4 of PST Document GTC, in the event the SEC informs the Company that all of the Registrable Securities requested to be included
in the registration cannot, as a result of the application of Rule 415, be registered for resale on such registration statement,
the Company agrees to promptly inform Purchaser and use its commercially reasonable efforts to file amendments to the registration
statement as required by the SEC covering the maximum number of Registrable Securities that are permitted to be registered by the
SEC (in light of the other securities that are included in such registration), and the limitation on the number of Registrable
Securities included in a registration as a result of the application of Rule 415 shall not be deemed to be a breach of any provision
of this Agreement, provided that the allocation of securities under such Registration Statement shall be subject to the priority
piggyback registration rights of Eses Holdings (FZE), a limited liability company.  Without the prior written consent of the
Purchaser, the Company shall not file any registration statement under the Securities Act prior to, or grant to any Person the
right to have Company securities registered for resale under the Securities Act prior to, the date which is six (6) months following
the Closing Date (other than a registration statement pursuant to an Additional Financing and other than a registration statement
on Form S-8 in connection with securities issued to employees or directors pursuant to duly adopted equity incentive plans).

(ii)        GTC Sections. The following provisions of PST Document GTC are hereby amended as follows:

 

·       In Section 3.1(b) (Execution and Validity), in the first sentence, between “further” and “action”
insert “corporate, partnership or similar”.

·      In Section 3.4(g) (Public Filings), in the last full line add “, in light of the totality of the circumstances
and public disclosures made,” before the words “not misleading”.

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·      In Section 3.4(i) (Undisclosed Liabilities), the first sentence shall be replaced with “Since the date of the
most recent balance sheet contained in the Most Recent Fiscal Report, the Company and its Subsidiaries have not incurred any Liabilities
other than those Liabilities incurred in the ordinary course of the Company's or its Subsidiaries' respective businesses which
Liabilities, individually or in the aggregate, do not have, and could not reasonably be expected to result in, a Material Adverse
Effect.”

·      In Section 3.4(p) (Regulatory Permits), after the word “All” at the beginning of the second sentence
add “material” before the word “Permits”.

·      In Section 3.4(r) (Intellectual Property) (A) in the fourth sentence add “materially” before “interfered”
and add “material” before “Intellectual Property”, (B) at the end of the fifth sentence add “except
for instances that would not reasonably be expected to cause a Material Adverse Effect”, and (C) in the penultimate sentence
add “imminent” before “new products” and after “developed” add “and ready to be commercialized”.

·      In Section 3.4(s) (Insurance), in clause (ii) add “material” before “breach”.

·      In Section 3.4(t) (Tax Matters), in clause (ii) add “material” before “tax deficiency”.

·      In Section 3.4(x) (Sarbanes-Oxley), after “negative conclusions” add “required to be disclosed”
in each instance.

·      In Section 3.4(y) (Internal Accounting Controls), in clause (iii) after “authorizations” add “and
policies”.

·      In Section 3.4(z) (Corporate Records), replace the first sentence with “The minute books of the Company and
each Subsidiary contain all existing records of all meetings and actions of the Board of Directors (and its committees) and the
stockholders of the Company and such Subsidiary, respectively, and all such records are complete and accurate in all material respects”.

·      In Section 3.4(ii) (Disclosure), replace “Form S-1 or From F-1” with “Form S-3”.

·      In Section 4.13 (No Inconsistent Agreement), at the end add “in any material respect”.

·      For clarification, Section 4.15 (Stockholder Approval) is not applicable for this Transaction since the Common Stock
is traded on the Bulletin Board which does not have a 20% Rule.

·      In Section 5.1 (Transfer Restrictions), the second sentence shall be replaced with “In connection with any
transfer of Securities or Underlying Shares other than (a) pursuant to an effective Registration Statement or Rule 144(b)(1), (b)
to the Company or to an affiliate of a Purchaser (that does not constitute a change in beneficial ownership), or (c) in connection
with a pledge as contemplated in Section 5.3 below, the Company may require the transferor thereof to provide the Company with
a legal opinion, in form and substance reasonably acceptable to the Company from counsel reasonably acceptable to the Company,
or other evidence reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such
transferred securities under the Securities Act.”

·      
In Section 5.2(a) (Legends), “Rule 144” shall be replaced with “Rule 144(b)(1)”, and in Section
5.2(b) (Removal of Legends), legend removal is subject to the Holder not being an Affiliate, and any opinion of counsel
required before completion of the one year holding period under Rule 144 may require the Holder to represent to the Company in
writing that it will sell such shares only in compliance with Rule 144 or Section 4(1) of the Securities Act if such shares are
not registered for resale under the Securities Act.

·      For clarification, to the extent the terms of the Note are inconsistent with Section 5.2(d) (Failure to Deliver Shares),
the terms of the Note shall control.

·      In Section 5.4 (Rule 144 Information), in the first sentence after “As long as any Purchaser owns Securities
and/or Underlying Shares”, add “(but not more than three years after the Closing Date)”.

·      For clarification, in Section 5.5 (Reservation of Securities), monthly Liquidated Damages shall cease to accrue upon
the Company’s redemption of Underlying Shares pursuant to the last sentence thereof.

·      In Section 7.5 (Survival), at the end add “for four years following the Closing Date”.

·      In Section 7.12 (Notices), replace “6:00 p.m.” with “4:30 p.m.” in each instance.

 

(iii)     DEF Sections. The following definitions contained in PST Document DEF are hereby amended as follows:

·     
“Bankruptcy Event” is hereby amended to delete clause (f) therefrom.

·     
“Covenant Expiration Date” is hereby amended to replace clause (b) thereof with “the first anniversary
of the Closing Date”.

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·      “Dilutive Issuance” is hereby amended by adding at the end of the last sentence thereof “, provided
that if shares of Common Stock are issued together with Convertible Securities, then the determination of whether there has been
a Dilutive Issuance, and the calculation of any adjustment thereupon, shall be determined by taking the aggregate consideration
received by the Company for the issuance of such Convertible Securities and Common Stock, and the number of Common Stock deemed
issued and/or issuable as a result of the transaction shall be determined with reference to all securities issued in the transaction,
considered together rather than as separate transactions.”

·      “Material Adverse Effect” is hereby amended to add at the end thereof “, other than to the extent
such effects are due to (A) any change in the stock price or trading volume of the Company Common Stock (it being understood that
the facts and circumstances giving rise to such change may be deemed to constitute, and may be taken into account in determining
whether there has been, a Material Adverse Effect), or (B) any act or threat of terrorism or war anywhere in the world, any armed
hostilities or terrorist activities anywhere in the world, any threat or escalation or armed hostilities or terrorist activities
anywhere in the world or any governmental or other response or reaction to any of the foregoing.”

·      “Organization Documents” is hereby amended to replace “conduct” with “internal governance”.

 

(c)         Additional Representations and Warranties.  The Company
hereby represents and warrants to each Purchaser that, except as disclosed in a Recent Report, as of the date hereof and as of
the Closing Date:

 

(i)         
FDA. As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”)
under the Federal Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured,
packaged, labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries (each such product, a “Pharmaceutical
Product”), such Pharmaceutical Product is being manufactured, packaged, labeled, tested, distributed, sold and/or marketed
by the Company in compliance with all applicable requirements under FDCA and similar laws, rules and regulations relating to registration,
investigational use, premarket clearance, licensure, or application approval, good manufacturing practices, good laboratory practices,
good clinical practices, product listing, quotas, labeling, advertising, record keeping and filing of reports, except where the
failure to be in compliance would not reasonably result in a Material Adverse Effect.

(ii)        Indebtedness. Set forth on Schedule 3.4(f) of the Disclosure Schedule is a list of all Indebtedness of the Company,
including the amounts outstanding with respect to each item of Indebtedness and each Person owed such Indebtedness. Upon the request
of the Purchaser, the Company shall furnish the Purchaser with any and all agreements and documents related to such Indebtedness.

(iii)       Biosyn. The value of each of Biosyn’s assets and Cellegy Holdings, Inc.’s (“Cellegy”)
assets are not material and are insignificant relative to the value of the Company as a whole. So long as the Note is outstanding,
the Company shall not transfer, or permit any Affiliate of the Company to transfer, any significant dollar amount of assets to
Biosyn or Cellegy, and the Company shall ensure that neither Biosyn nor Cellegy engages in any operations other than operations
that are immaterial relative to the value of the Company as a whole. So long as the Note is outstanding, in the event that at any
time the value of Biosyn’s or Cellegy’s assets becomes material or not insignificant relative to the value of the Company
as a whole, the Company shall promptly cause Biosyn and/or Cellegy, as the case may be, to execute and deliver to the Purchaser
a Guarantee in substantially the form of Exhibit B attached hereto.

 

[Signature Page Follows]

    	5

    	 

    
 

IN WITNESS WHEREOF, as
of the date first written above, the Parties hereto have duly executed, or caused their authorized officers to duly execute, this
Agreement.

 

COMPANY:

 

	ADAMIS PHARMACEUTICALS CORPORATION.	 
	 	 	 
	By:	
        /s/
        Dennis J. Carlo
	 
	Name:	Dennis J. Carlo	 
	Title:	CEO	 

 

PURCHASER:

 

	GEMINI MASTER FUND, LTD. 

By: GEMINI STRATEGIES LLC, INC., 

as investment manager     

By: /s/ Steven Winters 

Name:  Steven Winters 

Title:   Managing Member	 

 

 

	Address for Notices:	With a copy to, if any:
	
         

        c/o Gemini Strategies LLC, Inc.

        619 South Vulcan, Suite 203

        Encinitas, CA 92024

        Attn: Steven Winters

        Fax: (760) 697-1119

        Email: steve@geministrategies.com
	
         

        Peter J. Weisman, P.C.

        Two Rector Street, 3rd Floor

        New York, NY 10006

        Email:
        pweisman@pweisman.com

         

	
         

        Special Instructions Where Securities
        to Be Delivered: 

        Same as address for notices above

 

	
        Maximum
        Ownership Percentage:

        9.9%
        

    	6

    	 

    
	 

Exhibit A

 

FORM OF 10% SENIOR CONVERTIBLE
NOTE

 

 

(see tab #3)

 

 

    	7

    	 

    

 

Exhibit B

 

FORM OF GUARANTEE

 

 

 

(see tab #5)

 

    	8

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