Document:

Exhibit 10.19

 

REGISTRATION
RIGHTS AGREEMENT

 

This Registration Rights
Agreement (this “Agreement”) is made and entered into as of July 8, 2015 by and among Intec Pharma Ltd., an
Israeli corporation (the “Company”), Gabriel Capital Management (GP) Ltd (“Gabriel”) and
the other persons identified on Schedule A hereto (collectively, the “Investors” and, each individually, an
“Investor”).

 

WHEREAS, the Company
and the Investors are parties to that certain Subscription Agreement by and between the Company, Gabriel and the other parties
set forth on Schedule A thereto, dated as of August 6, 2013 and amended as of October 20, 2014 (the “Purchase Agreement”);
and

 

WHEREAS, in connection
with the consummation of the transactions contemplated by the Purchase Agreement, and pursuant to the terms of the Purchase Agreement,
the Investors were granted certain registration rights but desire to enter into this Agreement in order to redefine and more precisely
define such registration rights to the Investors as set forth below.

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual and dependent covenants hereinafter set forth, the parties hereto agree as follows:

 

1.                 
Defined Terms. Terms defined in the Purchase Agreement shall have the same meaning when used herein unless otherwise
specifically provided herein. As used in this Agreement, the following terms shall have the following meanings:

 

“Affiliate”
of a Person means any other Person that directly, or indirectly through one or more intermediaries, controls or is controlled by,
or is under common control with, such Person. The term “control” (including the terms “controlling”,
“controlled by” and “under common control with”) means the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting
securities, by contract, or otherwise.

 

“Agreement” has
the meaning set forth in the preamble.

 

“Board” means
the board of directors (or any successor governing body) of the Company.

 

“Commission” means
the Securities and Exchange Commission or any other federal agency administering the Securities Act and the Exchange Act at the
time.

 

“Company” has
the meaning set forth in the preamble and includes the Company’s successors by merger, acquisition, reorganization or otherwise.

 

“Demand Registration” has
the meaning set forth in Section 2(c).

 

“DTCDRS” has
the meaning set forth in Section 5(p).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

    	

    	 

    

  

“Governmental
Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency
or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory
authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority
have the force of law), or any arbitrator, court or tribunal of competent jurisdiction.

 

“Inspectors” has
the meaning set forth in Section 5(h).

 

“Investors” has
the meaning set forth in the preamble.

 

“IPO” means
an initial underwritten offering of the Ordinary Shares or any other common equity securities of the Company pursuant to an effective
Registration Statement filed under the Securities Act (other than a registration (i) pursuant to a Registration Statement on Form
S-8 (or other registration solely relating to an offering or sale to employees or directors of the Company pursuant to any employee
stock plan or other employee benefit arrangement), (ii) pursuant to a Registration Statement on Form F-4 (or similar form that
relates to a transaction subject to Rule 145 under the Securities Act or any successor rule thereto), or (iii) in connection with
any dividend or distribution reinvestment or similar plan).

 

“Long-Form
Registration” has the meaning set forth in Section 2(a).

 

“Ordinary
Shares” means the ordinary shares, no par value, of the Company and any other shares of stock issued or issuable
with respect thereto (whether by way of a stock dividend or stock split or in exchange for or upon conversion of such shares or
otherwise in connection with a combination of shares, distribution, recapitalization, merger, consolidation, other corporate reorganization
or other similar event with respect to the Ordinary Shares), including all Warrant Shares and Additional Warrant Shares (as defined
in the Purchase Agreement) issuable upon the exercise of Warrants and Additional Warrants. 

 

“Person” means
an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization,
trust, association or other entity.

 

“Piggyback
Registration” has the meaning set forth in Section 3(a).

 

“Piggyback
Registration Statement” has the meaning set forth in Section 3(a).

 

“Piggyback
Shelf Registration Statement” has the meaning set forth in Section 3(a).

 

“Piggyback
Shelf Takedown” has the meaning set forth in Section 3(a).

 

“Prospectus” means
the prospectus or prospectuses included in any Registration Statement (including, without limitation, a prospectus that
includes any information previously omitted from a prospectus filed as part of an effective Registration Statement in
reliance on Rule 430A under the Securities Act or any successor rule thereto), as amended or supplemented by any prospectus
supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by such
Registration Statement and by all other amendments and supplements to the prospectus, including post-effective amendments and
all material incorporated by reference in such prospectus or prospectuses.

 

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“Purchase
Agreement” has the meaning set forth in the recitals.

 

“Records” has
the meaning set forth in Section 5(h).

 

“Registrable
Securities” means (a) the Shares and (b) any Ordinary Shares issued or issuable with respect to any shares described
in subsection (a) above by way of a stock dividend or stock split or in exchange for or upon conversion of such shares or otherwise
in connection with a combination of shares, distribution, recapitalization, merger, consolidation, other reorganization or other
similar event with respect to the Ordinary Shares (it being understood that, for purposes of this Agreement, a Person shall be
deemed to be a holder of Registrable Securities whenever such Person has the right to then acquire or obtain from the Company any
Registrable Securities, whether or not such acquisition has actually been effected). As to any particular Registrable Securities,
such securities shall cease to be Registrable Securities when (i) the Commission has declared a Registration Statement covering
such securities effective and such securities have been disposed of pursuant to such effective Registration Statement, (ii) such
securities are sold under circumstances in which all of the applicable conditions of Rule 144 under the Securities Act are met,
(iii) such securities become eligible for sale pursuant to Rule 144 without volume or manner-of-sale restrictions and without the
requirement for the Company to be in compliance with the current public information requirement under Rule 144(c)(1), or (iv) such
securities are otherwise transferred or such securities have ceased to be outstanding.

 

“Registration
Date” means the date on which the Company becomes subject to Section 13(a) or Section 15(d) of the Exchange
Act.

 

“Registration
Statement” means any registration statement of the Company, including the Prospectus, amendments and supplements
to such registration statement, including post-effective amendments, all exhibits and all material incorporated by reference in
such registration statement.

 

“Rule 144” means
Rule 144 under the Securities Act or any successor rule thereto.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Selling Expenses” means
all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities, and
fees and disbursements of counsel for any holder of Registrable Securities, except for the reasonable fees and disbursements of
counsel for the holders of Registrable Securities required to be paid by the Company pursuant to Section 6.

 

“Shares” means
the Ordinary Shares issued or issuable to the Investors pursuant to the Purchase Agreement, including any Warrant Shares or Additional
Warrant Shares that may have been or may be issued or issuable.

 

“Shelf Registration” has
the meaning set forth in Section 2(d).

 

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“Shelf Registration
Statement” has the meaning set forth in Section 2(d).

 

“Shelf Takedown” has
the meaning set forth in Section 2(e).

 

“Short-Form
Registration” has the meaning set forth in Section 2(c).

 

2.                 
Termination of Rights in Purchase Agreement; Demand Registration.

 

      (a)               
All rights and provisions contained in Section 11 of the Purchase Agreement are of no further force and effect and are hereby
terminated.

 

      (b)              
 At any time after the earlier of 180 days after the IPO or the Registration Date, holders of a majority of the Registrable
Securities then outstanding may request registration under the Securities Act of all or any portion of their Registrable Securities
pursuant to a Registration Statement on Form F-1 or any successor form thereto (each, a “Long-Form Registration”).
Each request for a Long-Form Registration shall specify the number of Registrable Securities requested to be included in the Long-Form
Registration. Upon receipt of any such request, the Company shall promptly (but in no event later than ten (10) days following
receipt thereof) deliver notice of such request to all other holders of Registrable Securities who shall then have ten (10) days
from the date such notice is given to notify the Company in writing of their desire to be included in such registration. The Company
shall prepare and file with (or confidentially submit to) the Commission a Registration Statement on Form F-1 or any successor
form thereto covering all of the Registrable Securities that the holders thereof have requested to be included in such Long-Form
Registration within sixty (60) days after the date on which the initial request is given and shall use its commercially reasonable
efforts to cause such Registration Statement to be declared effective by the Commission as soon as practicable thereafter. The
Company shall not be required to effect a Long-Form Registration or any registration under Section 2(c) and Section 2(d)
more than (in each case) two (2) times in the aggregate for the holders of Registrable Securities as a group; provided,
that a Registration Statement shall not count as a Long-Form Registration or any such other registration requested under this Section 2(b)
unless and until it has become effective.

 

      (c)                After
an IPO or the Registration Date, the Company shall use its commercially reasonable efforts to qualify and remain qualified to
register the offer and sale of securities under the Securities Act pursuant to a Registration Statement on Form F-3 or any
successor form thereto. At such time as the Company shall have qualified for the use of a Registration Statement on Form F-3
or any successor form thereto, the holders of a majority of the Registrable Securities then outstanding shall have the
right to request a registration under the Securities Act of all or any portion of their Registrable Securities pursuant to a
Registration Statement on Form F-3 or any similar short-form Registration Statement (each, a “Short-Form
Registration” and, together with each Long-Form Registration and Shelf Registration (as defined below), each a
“Demand Registration”). Each request for a Short-Form Registration shall specify the number of Registrable
Securities requested to be included in the Short-Form Registration. Subject to the limitations in Section 2(b) hereof,
upon receipt of any such request, the Company shall promptly (but in no event later than ten (10) days following receipt
thereof) deliver notice of such request to all other holders of Registrable Securities who shall then have ten (10) days from
the date such notice is given to notify the Company in writing of their desire to be included in such registration. The
Company shall prepare and file with (or confidentially submit to) the Commission a Registration Statement on Form F-3 or any
successor form thereto covering all of the Registrable Securities that the holders thereof have requested to be included in
such Short-Form Registration within sixty (60) days after the date on which the initial request is given and shall use its
commercially reasonable efforts to cause such Registration Statement to be declared effective by the Commission as soon as
practicable thereafter.

 

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     (d)              
At such time as the Company shall have qualified for the use of a Registration Statement on Form F-3 or the then appropriate
form for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act or any successor
rule thereto (a “Shelf Registration Statement”), the holders of a majority of the Registrable Securities then
outstanding shall have the right to request registration under the Securities Act of all or any portion of their Registrable Securities
for an offering on a delayed or continuous basis pursuant to Rule 415 under the Securities Act or any successor rule thereto (a
“Shelf Registration”). Such request for a Shelf Registration shall specify the number of Registrable Securities
requested to be included in the Shelf Registration. Upon receipt of any such request, and subject to the limitations in Section 2(b)
hereof, the Company shall promptly (but in no event later than ten (10) days following receipt thereof) deliver notice of such
request to all other holders of Registrable Securities who shall then have ten (10) days from the date such notice is given to
notify the Company in writing of their desire to be included in such registration. The Company shall prepare and file with (or
confidentially submit to) the Commission a Shelf Registration Statement covering all of the Registrable Securities that the holders
thereof have requested to be included in such Shelf Registration within sixty (60) days after the date on which the initial request
is given and shall use its commercially reasonable efforts to cause such Shelf Registration Statement to be declared effective
by the Commission as soon as practicable thereafter.

 

     (e)                The
Company shall not be obligated to effect any Long-Form Registration within six (6) months after the effective date of a
previous Long-Form Registration or Shelf Takedown or a previous Piggyback Registration in which holders of Registrable
Securities were permitted to register the offer and sale under the Securities Act. The Company may postpone for up to one
hundred and twenty (120) days the filing or effectiveness of a Registration Statement for a Demand Registration or the filing
of a supplement for the purpose of effecting an offering pursuant to Rule 415 under the Securities Act or any successor rule
thereto (a “Shelf Takedown”) if the Board determines in its reasonable good faith judgment that such
Demand Registration or Shelf Takedown would (i) materially interfere with a significant acquisition, corporate organization,
financing, securities offering or other similar significant transaction involving the Company; (ii) require premature
disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (iii)
render the Company unable to comply with requirements under the Securities Act or Exchange Act; provided, that in such
event the holders of a majority of the Registrable Securities initiating such Demand Registration or Shelf Takedown shall be
entitled to withdraw such request and, if such request for a Demand Registration is withdrawn, such Demand Registration shall
not count as one of the permitted Demand Registrations hereunder and the Company shall pay all registration expenses in
connection with such registration. The Company may delay a Demand Registration or Shelf Takedown hereunder only twice in any
period of 12 consecutive months.

 

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      (f)               
If the holders of the Registrable Securities initially requesting a Demand Registration or Shelf Takedown elect to distribute
the Registrable Securities covered by their request in an underwritten offering, they shall so advise the Company as a part of
their request made pursuant to Section 2(b), Section 2(d) or Section 2(e), and the Company shall include
such information in its notice to the other holders of Registrable Securities. The holders of a majority of the Registrable Securities
initially requesting the Demand Registration or Shelf Takedown shall select the investment banking firm or firms to act as the
managing underwriter or underwriters in connection with such offering; provided, that such selection shall be subject to
the consent of the Company, which consent shall not be unreasonably withheld or delayed.

 

      (g)              
If a Demand Registration or Shelf Takedown involves an underwritten offering and the managing underwriter of the requested
Demand Registration or Shelf Takedown advises the Company and the holders of Registrable Securities in writing that in its reasonable
and good faith opinion the number of Ordinary Shares proposed to be included in the Demand Registration or Shelf Takedown, including
all Registrable Securities and all other Ordinary Shares proposed to be included in such underwritten offering, exceeds the number
of Ordinary Shares which can be sold in such underwritten offering and/or the number of Ordinary Shares proposed to be included
in such Demand Registration or Shelf Takedown would adversely affect the price per share of the Ordinary Shares proposed to be
sold in such underwritten offering, the Company shall include in such Demand Registration or Shelf Takedown (i) first, the Ordinary
Shares that the holders of Registrable Securities propose to sell, and (ii) second, the Ordinary Shares proposed to be included
therein by any other Persons (including Ordinary Shares to be sold for the account of the Company and/or other holders of Ordinary
Shares) allocated among such Persons in such manner as they may agree. If the managing underwriter determines that less than all
of the Registrable Securities proposed to be sold can be included in such offering (a "Cutback"), then the Registrable
Securities that are included in such offering shall be allocated pro rata among the respective holders thereof on the basis of
the number of Registrable Securities owned by each such holder.

 

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3.                 
Piggyback Registration.

 

      (a)               
Whenever the Company proposes to register the offer and sale of any shares of its Ordinary Shares under the Securities
Act (other than the IPO and a registration (i) pursuant to a Registration Statement on Form S-8 (or other registration solely
relating to an offering or sale to employees or directors of the Company pursuant to any employee stock plan or other employee
benefit arrangement), (ii) pursuant to a Registration Statement on Form F-4 (or similar form that relates to a transaction subject
to Rule 145 under the Securities Act or any successor rule thereto), or (iii) in connection with any dividend or distribution
reinvestment or similar plan), whether for its own account or for the account of one or more stockholders of the Company and the
form of Registration Statement (a “Piggyback Registration Statement”) to be used may be used for the registration
of Registrable Securities (a “Piggyback Registration”), the Company shall give prompt written notice (in any
event no later than thirty (30) days prior to the filing of such Registration Statement) to the holders of Registrable Securities
of its intention to effect such a registration and, subject to Section 3(b), shall include in such registration all Registrable
Securities with respect to which the Company has received written requests for inclusion from the holders of Registrable Securities
within ten (10) days after the Company’s notice has been given to each such holder. The Company may postpone or withdraw
the filing or the effectiveness of a Piggyback Registration at any time in its sole discretion. A Piggyback Registration shall
not be considered a Demand Registration for purposes of Section 2. If any Piggyback Registration Statement pursuant to
which holders of Registrable Securities have registered the offer and sale of Registrable Securities is a Registration Statement
on Form F-3 or the then appropriate form for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under
the Securities Act or any successor rule thereto (a “Piggyback Shelf Registration Statement”), such holder(s)
shall have the right, but not the obligation, to be notified of and to participate in any offering under such Piggyback Shelf
Registration Statement (a “Piggyback Shelf Takedown”). 

 

      (b)               If
a Piggyback Registration or Piggyback Shelf Takedown is initiated as a primary underwritten offering on behalf of the Company
and the managing underwriter advises the Company and the holders of Registrable Securities (if any holders of
Registrable Securities have elected to include Registrable Securities in such Piggyback Registration or Piggyback Shelf
Takedown) in writing that in its reasonable and good faith opinion the number of Ordinary Shares proposed to be included in
such registration or takedown, including all Registrable Securities and all other Ordinary Shares proposed to be included in
such underwritten offering, exceeds the number of Ordinary Shares which can be sold in such offering and/or that the number
of Ordinary Shares proposed to be included in any such registration or takedown would adversely affect the price per share of
the Ordinary Shares to be sold in such offering, the Company shall include in such registration or takedown (i) first, the
Ordinary Shares that the Company proposes to sell; (ii) second, the Shares requested to be included therein by holders of
Registrable Securities, allocated pro rata among all such holders on the basis of the number of Registrable Securities owned
by each such holder or in such manner as they may otherwise agree; and (iii) third, the Shares requested to be included
therein by holders of Ordinary Shares other than holders of Registrable Securities, allocated among such holders in such
manner as they may agree. If a Piggyback Registration or Piggyback Shelf Takedown is initiated as an underwritten offering on
behalf of a holder of Ordinary Shares other than Registrable Securities, and the managing underwriter advises the Company in
writing that in its reasonable and good faith opinion the number of Ordinary Shares proposed to be included in such
registration or takedown, including all Registrable Securities and all other Ordinary Shares proposed to be included in such
underwritten offering, exceeds the number of Ordinary Shares which can be sold in such offering and/or that the number
of Ordinary Shares proposed to be included in any such registration or takedown would adversely affect the price per Ordinary
Share to be sold in such offering, the Company shall include in such registration or takedown (i) first, the Ordinary Shares
requested to be included therein by the holder(s) of the Registrable Securities (on a fully diluted, as converted basis)
owned by all such holders or in such manner as they may otherwise agree; (ii) second, the Ordinary Shares requested to be
included therein by the holder(s) requesting such registration or takedown, allocated pro rata among all such holders on the
basis of the number of Ordinary Shares other than the Registrable Securities (on a fully diluted, as converted basis) owned
by all such holders or in such manner as they may otherwise agree; and (iii) third, the Ordinary Shares requested to be
included therein by other holders of Ordinary Shares allocated among such holders in such manner as they may agree.

 

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      (c)               
If any Piggyback Registration or Piggyback Shelf Takedown is initiated as a primary underwritten offering on behalf of the
Company, the Company shall select the investment banking firm or firms to act as the managing underwriter or underwriters in connection
with such offering.

 

4.                 
Intentionally deleted. 

 

5.                 
Registration Procedures. If and whenever the holders of Registrable Securities request that the offer and sale of
any Registrable Securities be registered under the Securities Act or any Registrable Securities be distributed in a Shelf Takedown
pursuant to the provisions of this Agreement, the Company shall use its commercially reasonable efforts to effect the registration
of the offer and sale of such Registrable Securities under the Securities Act in accordance with the intended method of disposition
thereof, and pursuant thereto the Company shall as soon as reasonably practicable and as applicable:

 

      (a)               
subject to Section 2(c), Section 2(d), 2(d) and 3(a), prepare and file with the Commission a
Registration Statement covering such Registrable Securities and use its commercially reasonable efforts to cause such Registration
Statement to be declared effective;

 

      (b)              
in the case of a Long-Form Registration or a Short-Form Registration, prepare and file with the Commission such amendments,
post-effective amendments and supplements to such Registration Statement and the Prospectus used in connection therewith as may
be necessary to keep such Registration Statement effective until all of such Registrable Securities have been disposed of or until
such Registrable Securities otherwise no longer qualify as Registrable Securities pursuant to this Agreement and to comply with
the provisions of the Securities Act with respect to the disposition of such Registrable Securities in accordance with the intended
methods of disposition set forth in such Registration Statement;

 

      (c)               
within a reasonable time before filing such Registration Statement, Prospectus or amendments or supplements thereto with
the Commission, furnish to one counsel selected by holders of a majority of such Registrable Securities copies of such documents
proposed to be filed, which documents shall be subject to the review, comment and reasonable approval of such counsel;

 

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     (d)              
notify each selling holder of Registrable Securities, promptly after the Company receives notice thereof, of the time when
such Registration Statement has been declared effective or a supplement to any Prospectus forming a part of such Registration Statement
has been filed with the Commission;

 

     (e)               
furnish to each selling holder of Registrable Securities such number of copies of the Prospectus included in such Registration
Statement (including each preliminary Prospectus) and any supplement thereto (in each case including all exhibits and documents
incorporated by reference therein), and such other documents as such seller may reasonably request in order to facilitate the disposition
of the Registrable Securities owned by such seller;

 

     (f)               
use its commercially reasonable efforts to register or qualify such Registrable Securities under such other securities or
“blue sky” laws of such jurisdictions as any selling holder reasonably requests and do any and all other acts and things
which may be reasonably necessary or advisable to enable such holders to consummate the disposition in such jurisdictions of the
Registrable Securities owned by such holders; provided, that the Company shall not be required to qualify generally to do
business, subject itself to general taxation or consent to general service of process in any jurisdiction where it would not otherwise
be required to do so but for this Section 5(f);

 

     (g)              
notify each selling holder of such Registrable Securities, at any time when a Prospectus relating thereto is required to
be delivered under the Securities Act, of the happening of any event that would cause the Prospectus included in such Registration
Statement to contain an untrue statement of a material fact or omit any fact necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading, and, at the request of any such holder, the Company shall
prepare a supplement or amendment to such Prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities,
such Prospectus shall not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading;

 

     (h)              
make available for inspection by any selling holder of Registrable Securities, any underwriter participating in any disposition
pursuant to such Registration Statement and any attorney, accountant or other agent retained by any such holder or underwriter
(collectively, the “Inspectors”), all financial and other records, pertinent corporate documents and properties
of the Company (collectively, the “Records”), and cause the Company’s officers, directors and employees
to supply all information reasonably requested by any such Inspector in connection with such Registration Statement;

 

     (i)                
provide a transfer agent and registrar (which may be the same entity) for all such Registrable Securities not later than
the effective date of such registration;

 

     (j)                
use its commercially reasonable efforts to cause such Registrable Securities to be listed on the securities exchange, if
any, on which the Ordinary Shares are then listed;

 

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     (k)              
otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission
and make available to its stockholders an earnings statement (in a form that satisfies the provisions of Section 11(a) of
the Securities Act and Rule 158 under the Securities Act or any successor rule thereto) no later than forty-five (45) days after
the end of the 12-month period beginning with the first day of the Company’s first full fiscal quarter after the effective
date of such Registration Statement, which earnings statement shall cover said 12-month period, and which requirement will be deemed
to be satisfied if the Company timely files complete and accurate information on Forms 20-F or 6-K under the Exchange Act, to the
extent required, and otherwise complies with Rule 158 under the Securities Act or any successor rule thereto; and

 

     (l)                
use commercially reasonable efforts to cause its outside counsel and its independent certified public accountants, as applicable,
to furnish to the managing underwriter, if any, (i) a written legal opinion of the Company’s outside counsel, dated the closing
date of the offering, in form and substance as is customarily given in opinions of the Company’s counsel to underwriters
in underwritten registered offerings; and (ii) on the date of the applicable Prospectus, on the effective date of any post-effective
amendment to the applicable Registration Statement and at the closing of the offering, dated the respective dates of delivery thereof,
a “comfort” letter signed by the Company’s independent certified public accountants in form and substance
as is customarily given in accountants’ letters to underwriters in underwritten registered offerings;

 

     (m)            
without limiting Section 5(f), use its commercially reasonable efforts to cause such Registrable Securities to be
registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business and
operations of the Company to enable the holders of such Registrable Securities to consummate the disposition of such Registrable
Securities in accordance with their intended method of distribution thereof;

 

     (n)              
notify the holders of Registrable Securities promptly of any request by the Commission for the amending or supplementing
of such Registration Statement or Prospectus or for additional information;

 

     (o)              
advise the holders of Registrable Securities, promptly after it shall receive notice or obtain knowledge thereof, of the
issuance of any stop order by the Commission suspending the effectiveness of such Registration Statement or the initiation or threatening
of any proceeding for such purpose and promptly use its commercially reasonable efforts to prevent the issuance of any stop order
or to obtain its withdrawal at the earliest possible moment if such stop order should be issued;

 

     (p)               cooperate
with the holders of the Registrable Securities to facilitate the timely preparation and delivery of certificates representing
the Registrable Securities to be sold pursuant to such Registration Statement or Rule 144 free of any restrictive legends and
representing such number of Ordinary Shares and registered in such names as the holders of the Registrable Securities may
reasonably request a reasonable period of time prior to sales of Registrable Securities pursuant to such Registration
Statement or Rule 144; provided, that the Company may satisfy its obligations hereunder without issuing physical stock
certificates through the use of The Depository Trust Company’s Direct Registration System (the
“DTCDRS”);

 

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      (q)              
not later than the effective date of such Registration Statement, provide a CUSIP number for all Registrable Securities
and provide the applicable transfer agent with printed certificates for the Registrable Securities which are in a form eligible
for deposit with The Depository Trust Company; provided, that the Company may satisfy its obligations hereunder without
issuing physical stock certificates through the use of the DTCDRS;

 

      (r)                
take no direct or indirect action prohibited by Regulation M under the Exchange Act; provided, that, to the extent
that any prohibition is applicable to the Company, the Company will take all reasonable action to make any such prohibition inapplicable;
and

 

      (s)               
otherwise use its commercially reasonable efforts to take all other steps necessary to effect the registration of such Registrable
Securities contemplated hereby.

 

6.                 
Expenses. All expenses (other than Selling Expenses) incurred by the Company in complying with its obligations pursuant
to this Agreement and in connection with the registration and disposition of Registrable Securities shall be paid by the Company,
including, without limitation, all (i) registration and filing fees (including, without limitation, any fees relating to filings
required to be made with, or the listing of any Registrable Securities on, any securities exchange or over-the-counter trading
market on which the Registrable Securities are listed or quoted); (ii) underwriting expenses (other than fees, commissions or discounts);
(iii) expenses of any audits incident to or required by any such registration; (iv) fees and expenses of complying with securities
and “blue sky” laws (including, without limitation, fees and disbursements of counsel for the Company in connection
with “blue sky” qualifications or exemptions of the Registrable Securities); (v) printing expenses; (vi) messenger,
telephone and delivery expenses; (vii) fees and expenses of the Company’s counsel and accountants; (viii) Financial Industry
Regulatory Authority, Inc. filing fees (if any); and (ix) reasonable fees and expenses of one counsel for the holders of Registrable
Securities participating in such registration as a group selected by the holders of a majority of the Registrable Securities initially
requesting such registration. In addition, the Company shall be responsible for all of its internal expenses incurred in connection
with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses
of its officers and employees performing legal or accounting duties) and the expense of any annual audits. All Selling Expenses
relating to the offer and sale of Registrable Securities registered under the Securities Act pursuant to this Agreement shall be
borne and paid by the holders of such Registrable Securities, in proportion to the number of Registrable Securities included in
such registration for each such holder.

 

    	11

    	 

    

  

7.                 
Indemnification.

 

      (a)                The
Company shall indemnify and hold harmless, to the fullest extent permitted by law, each holder of Registrable
Securities, such holder’s officers, directors, managers, members, partners, stockholders and Affiliates, each
underwriter, broker or any other Person acting on behalf of such holder of Registrable Securities and each other Controlling
Person, if any, who controls any of the foregoing Persons, against all losses, claims, actions, damages, liabilities and
expenses, joint or several, to which any of the foregoing Persons may become subject under the Securities Act or otherwise,
insofar as such losses, claims, actions, damages, liabilities or expenses arise out of or are based upon any untrue or
alleged untrue statement of a material fact contained in any Registration Statement, Prospectus, preliminary Prospectus, free
writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule thereto) or any amendment thereof
or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to
make the statements therein (in the case of a Prospectus, preliminary Prospectus or free writing prospectus, in light of the
circumstances under which they were made) not misleading, or any violation or alleged violation of any securities laws or
regulations by the Company in connection with any registration on behalf of the Investors by the Company hereunder; and shall
reimburse such Persons for any legal or other expenses reasonably incurred by any of them in connection with investigating or
defending any such loss, claim, action, damage or liability, except insofar as the same are caused by or contained in any
information furnished in writing to the Company by such holder expressly for use therein or by such holder’s failure to
deliver a copy of the Registration Statement, Prospectus, preliminary Prospectus, free writing prospectus (as defined in Rule
405 under the Securities Act or any successor rule thereto) or any amendments or supplements thereto (if the same was
required by applicable law to be so delivered) after the Company has furnished such holder with a sufficient number of copies
of the same prior to any written confirmation of the sale of Registrable Securities. This indemnity shall be in addition to
any liability the Company may otherwise have.

 

      (b)               In
connection with any registration in which a holder of Registrable Securities is participating, each such holder shall furnish
to the Company in writing such information as the Company reasonably requests for use in connection with any such
Registration Statement or Prospectus and, to the extent permitted by law, shall indemnify and hold harmless, the Company,
each director of the Company, each officer of the Company who shall sign such Registration Statement, each underwriter,
broker or other Person acting on behalf of the holders of Registrable Securities and each Controlling Person who controls any
of the foregoing Persons against any losses, claims, actions, damages, liabilities or expenses resulting from any untrue or
alleged untrue statement of material fact contained in the Registration Statement, Prospectus, preliminary Prospectus, free
writing prospectus (as defined in Rule 405 under the Securities Act or any successor rule thereto) or any amendment thereof
or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to
make the statements therein (in the case of a Prospectus, preliminary Prospectus or free writing prospectus, in light of the
circumstances under which they were made) not misleading, or any violation or alleged violation of any securities laws or
regulations by the Company in connection with any registration on behalf of the Investors by the Company hereunder, but only
to the extent that such untrue statement or omission is contained in any information so furnished in writing by such holder; provided,
that the obligation to indemnify shall be several, not joint and several, for each holder and shall not exceed an amount
equal to the net proceeds (after underwriting fees, commissions or discounts) actually received by such holder from the sale
of Registrable Securities pursuant to such Registration Statement. This indemnity shall be in addition to any liability the
selling holder may otherwise have.

 

    	12

    	 

    

 

      (c)               
Promptly after receipt by an indemnified party of notice of the commencement of any action involving a claim referred to
in this Section 7, such indemnified party shall, if a claim in respect thereof is made against an indemnifying party,
give written notice to the latter of the commencement of such action. The failure of any indemnified party to notify an indemnifying
party of any such action shall not (unless such failure shall have a material adverse effect on the indemnifying party) relieve
the indemnifying party from any liability in respect of such action that it may have to such indemnified party hereunder. In case
any such action is brought against an indemnified party, the indemnifying party shall be entitled to participate in and to assume
the defense of the claims in any such action that are subject or potentially subject to indemnification hereunder, jointly with
any other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such indemnified
party, and after written notice from the indemnifying party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party shall not be responsible for any legal or other expenses subsequently incurred by the indemnified
party in connection with the defense thereof; provided, that, if (i) any indemnified party shall have reasonably concluded
that there may be one or more legal or equitable defenses available to such indemnified party which are additional to or conflict
with those available to the indemnifying party, or that such claim or litigation involves or could have an effect upon matters
beyond the scope of the indemnity provided hereunder, or (ii) such action seeks an injunction or equitable relief against any indemnified
party or involves actual or alleged criminal activity, the indemnifying party shall not have the right to assume the defense of
such action on behalf of such indemnified party without such indemnified party’s prior written consent (but, without such
consent, shall have the right to participate therein with counsel of its choice) and such indemnifying party shall reimburse such
indemnified party and any controlling person of such indemnified party for that portion of the fees and expenses of any counsel
retained by the indemnified party which is reasonably related to the matters covered by the indemnity provided hereunder. If the
indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it shall not be obligated to pay the fees
and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless
in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other
of such indemnified parties with respect to such claim. In such instance, the conflicting indemnified parties shall have a right
to retain one separate counsel, chosen by the holders of a majority of the Registrable Securities included in the registration,
at the expense of the indemnifying party.

 

      (d)               If
the indemnification provided for hereunder is held by a court of competent jurisdiction to be unavailable to an
indemnified party with respect to any loss, claim, damage, liability or action referred to herein, then the indemnifying
party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amounts paid or payable by such
indemnified party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate to
reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection
with the statements or omissions which resulted in such loss, claim, damage, liability or action as well as any other
relevant equitable considerations; provided, that the maximum amount of liability in respect of such contribution
shall be limited, in the case of each holder of Registrable Securities, to an amount equal to the net proceeds (after
underwriting fees, commissions or discounts) actually received by such seller from the sale of Registrable Securities
effected pursuant to such registration. The relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the
indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The parties agree that it would not be just and equitable if contribution pursuant hereto
were determined by pro rata allocation or by any other method or allocation which does not take account of the
equitable considerations referred to herein. No Person guilty or liable of fraudulent misrepresentation within the meaning of
Section 11(f) of the Securities Act shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

 

    	13

    	 

    

 

8.                 
Participation in Underwritten Registrations. No Person may participate in any registration hereunder which is underwritten
unless such Person (a) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements approved
by the Person or Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers
of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements
which are not inconsistent with the terms hereof.

 

9.                 
Rule 144 Compliance. With a view to making available to the holders of Registrable Securities the benefits of Rule
144 and any other rule or regulation of the Commission that may at any time permit a holder to sell securities of the Company to
the public without registration, the Company shall:

 

      (a)               
make and keep public information available, as those terms are understood and defined in Rule 144, at all times after the
Registration Date;

 

      (b)              
use commercially reasonable efforts to file with the Commission in a timely manner all reports and other documents required
of the Company under the Securities Act and the Exchange Act, at any time after the Registration Date; and

 

      (c)               
furnish to any holder so long as the holder owns Registrable Securities, promptly upon request, a written statement by the
Company as to its compliance with the reporting requirements of Rule 144 and of the Securities Act and the Exchange Act, a copy
of the most recent annual or quarterly report of the Company, and such other reports and documents so filed or furnished by the
Company as such holder may reasonably request in connection with the sale of Registrable Securities without registration.

 

    	14

    	 

    

  

10.               
Preservation of Rights. The Company shall not (a) grant any registration rights to third parties which are more favorable
than or inconsistent with the rights granted hereunder, or (b) enter into any agreement, take any action, or permit any change
to occur, with respect to its securities that violates or subordinates the rights expressly granted to the holders of Registrable
Securities in this Agreement.

 

11.               
Termination. This Agreement shall terminate and be of no further force or effect when there shall no longer be any
Registrable Securities outstanding; provided, that the provisions of Section 6 and Section 7 shall survive any such
termination.

 

12.                 Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be
deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee
if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF
document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day
if sent after normal business hours of the recipient; or (d) on the [third] day after the date mailed, by certified or registered
mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the addresses indicated
below (or at such other address for a party as shall be specified in a notice given in accordance with this Section 12).

 

	If to the Company:	
        Intec Pharma Ltd.

        Facsimile: 972-2-586-9176

        E-mail: Oren@intecpharma.com

        Attention: Oren Mohar, Chief Financial Officer

	with a copy to:	
        Greenberg Traurig, P.A.

        Facsimile: 305-961-5756

        E-mail: 305-579-0756

        Attention: Robert L. Grossman

 

If to any Investor,
to such Investor’s address as set forth on Schedule A hereto.

 

13.               
Entire Agreement. This Agreement, together with the Purchase Agreement and any related exhibits and schedules thereto,
constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein,
and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject
matter. Notwithstanding the foregoing, in the event of any conflict between the terms and provisions of this Agreement and those
of the Purchase Agreement, the terms and conditions of this Agreement shall control

 

14.               
Successor and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto
and their respective successors and permitted assigns. The Company may assign this Agreement at any time in connection with a sale
or acquisition of the Company, whether by merger, consolidation, sale of all or substantially all of the Company’s assets,
or similar transaction, without the consent of the Investors; provided, that the successor or acquiring Person agrees in
writing to assume all of the Company’s rights and obligations under this Agreement.

 

    	15

    	 

    

  

15.               
No Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their respective successors
and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or
equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Agreement; provided, however, the parties
hereto hereby acknowledge that the Persons set forth in Section 7 are express third-party beneficiaries of the obligations
of the parties hereto set forth in Section 7.

 

16.               
Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

17.             
  Amendment, Modification and Waiver. The provisions of this Agreement may only be amended, modified, supplemented
or waived with the prior written consent of the Company and the holders of a majority of the Registrable Securities. No waiver
by any party or parties shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified
by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. Except
as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any right, remedy, power or privilege
arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege.

 

18.               
Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction,
such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or
render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision
is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated
hereby be consummated as originally contemplated to the greatest extent possible.

 

19.               
Remedies. Each holder of Registrable Securities, in addition to being entitled to exercise all rights granted by
law, including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. The Company acknowledges
that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of
this Agreement and the Company hereby agrees to waive the defense in any action for specific performance that a remedy at law would
be adequate.

 

20.             
  Governing Law; Submission to Jurisdiction. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of New York without giving effect to any choice or conflict of law provision
or rule (whether of the State of New York or any other jurisdiction). Any legal suit, action or proceeding arising out of or
based upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts of the United
States or the courts of the State of New York in each case located in the city of New York City and County of New York
and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding.
Service of process, summons, notice or other document by mail to such party’s address set forth herein shall be
effective service of process for any suit, action or other proceeding brought in any such court. The parties irrevocably and
unconditionally waive any objection to the laying of venue of any suit, action or any proceeding in such courts and
irrevocably waive and agree not to plead or claim in any such court that any such suit, action or proceeding brought in any
such court has been brought in an inconvenient forum.

 

    	16

    	 

    

 

21.             
  Waiver of Jury Trial. Each party acknowledges and agrees that any controversy which may arise under this Agreement
is likely to involve complicated and difficult issues and, therefore, each such party irrevocably and unconditionally waives any
right it may have to a trial by jury in respect of any legal action arising out of or relating to this Agreement or the transactions
contemplated hereby. Each party to this Agreement certifies and acknowledges that (a) no representative of any other party has
represented, expressly or otherwise, that such other party would not seek to enforce the foregoing waiver in the event of a legal
action, (b) such party has considered the implications of this waiver, (c) such party makes this waiver voluntarily, and (d) such
party has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this Section
21.

 

22.               
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but
all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile,
e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed
copy of this Agreement.

 

23.             
  Further Assurances. Each of the parties to this Agreement shall execute and deliver such additional documents, instruments,
conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and to
give effect to the transactions contemplated hereby.

 

[SIGNATURE PAGE FOLLOWS]

 

    	17

    	 

    

  

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement on the date first written above.

 

	 	
        Intec Pharma Ltd.

        By /s/ Oren Mohar__________

         

        Name: Oren Mohar

        Title: CFO

         

 

	 	
         

        Gabriel Capital Management (GP) Ltd.

        as general partner of

        Gabriel Capital Fund GP, LP

        for and on behalf of a limited partnership in formation in the
        State of Israel, to be known as “Gabriel Capital Fund (Israel), L.P.” or such other name designated by Gabriel Capital
        Management (GP) Ltd.

         

        By (sign name):  /s/ Gary Leibler               

         

        Print Name: Gary Leibler

         

        Title: Director

         

         

         

        Gabriel Capital Management (GP) Ltd.

        as general partner of

        Gabriel Capital Fund GP, LP

        for and on behalf of a limited partnership in formation in the
        State of Delaware, USA, to be known as “Gabriel Capital Fund (US), L.P.” or such other name designated by Gabriel Capital
        Management (GP) Ltd.

         

        By (sign name): /s/ Gary Leibler               

         

        Print Name: Gary Leibler

         

        Title: Director

         

         

         

        Gabriel Capital Management Ltd.

         

        By (sign name): /s/ Gary Leibler               

         

        Print Name: Gary Leibler

         

         

        Collace Services Ltd.

         

        By (sign name): /s/ J. Germain                   

         

        Print Name: J. Germain, Director

         

         

        By (sign name): /s/ D. Toudic                   

         

        Print Name: D. Toudic, Director

         

         

         

        Sterling Group International Inc.

         

        By (sign name): /s/ Gabriel Menaged      

         

        Print Name: Gabriel Menaged

         

         

 

    	

    	 

    

  

SCHEDULE A

 

INVESTORS AND CONTACT INFORMATION

 

 

	Name of Investor	Address
	
        Gabriel Capital Management (GP) Ltd.

        as general partner of Gabriel Capital Fund GP, LP for and on
        behalf of a limited partnership in formation in the State of Israel, to be known as “Gabriel Capital Fund (Israel), L.P.”
        or such other name designated by Gabriel Capital Management (GP) Ltd.
	c/o Shavit Capital, Jerusalem Technology Park, Building 1B, Box 70, Malha, Jerusalem 96951 Israel
	
        Gabriel Capital Management (GP) Ltd.

        as general partner of Gabriel Capital Fund GP, LP for and on
        behalf of a limited partnership in formation in the State of Delaware, USA, to be known as “Gabriel Capital Fund (US), L.P.”
        or such other name designated by Gabriel Capital Management (GP) Ltd.
	[as above]
	Gabriel Capital Management Ltd. 	 
	Collace Services Ltd.	 
	Sterling Group International Inc.Exhibit
10.2 

 

THE
ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS DEBENTURE HAVE NOT 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.

  

GROWLIFE,
INC. 

 

SENIOR
SECURED, CONVERTIBLE, REDEEMABLE DEBENTURE

 

	Dated as of: April 30, 2015	 	Principal Amount: $700,000.00
	Effective Date: July 9, 2015	 	 
	Maturity Date: October 9, 2016	 	 

  

This
SENIOR SECURED, CONVERTIBLE REDEEMABLE DEBENTURE (the “Debenture”) is issued, dated as of April 30, 2015 and
effective as of July 9, 2015 (the “Effective Date”), by GROWLIFE, INC., a corporation incorporated under the
laws of the State of Delaware (the “Company”), to TCA GLOBAL CREDIT MASTER FUND, LP, a limited partnership
organized and existing under the laws of the Cayman Islands (together with its permitted successors and assigns, the “Holder”)
pursuant to exemptions from registration under the Securities Act of 1933, as amended. This Debenture is issued in connection
with that certain Securities Purchase Agreement, dated as of the date hereof, by and between the Company and the Holder (the “Purchase
Agreement”). All capitalized terms used in this Debenture and not otherwise defined herein shall have the meanings assigned
to them in the Purchase Agreement.

  

ARTICLE
I 

 

Section
1.01    Principal and Interest. For value received, the Company hereby promises to pay to the order
of the Holder, by no later than October 9, 2016 (the “Maturity Date”), in immediately available and lawful
money of the United States of America, Seven Hundred Thousand and No/100 United States Dollars ($700,000.00), together with interest
on the outstanding principal amount under this Debenture, at the rate

 

1

of
eighteen percent (18%) per annum simple interest (the “Interest Rate”) from the Effective Date, until paid,
as more specifically provided below.

 

Section
1.02     Optional Redemption Prior to Maturity. The Company, at its option, shall have the right to
redeem this Debenture in full and for cash, at any time prior to the Maturity Date, with three (3) business days advance written
notice (the “Redemption Notice”) to the Holder. The amount required to redeem this Debenture in full pursuant
to this Section 1.02 shall be equal to: (i) the aggregate principal amount then outstanding under this Debenture; plus all accrued
and unpaid interest due under this Debenture as of the redemption date; plus (ii) all other costs, fees and charges due and payable
hereunder or under any other “Transaction Documents” (as hereinafter defined), including, but not limited to, any
prepayment penalties provided for in the Purchase Agreement (collectively, the “Redemption Amount”). The Company
shall deliver the Redemption Amount to the Holder on the third (3rd) business day after the date of the Redemption Notice.

 

Section
1.03     Mandatory Redemption at Maturity. On the Maturity Date, the Company shall redeem this Debenture
for the Redemption Amount, which Redemption Amount shall be due and payable to the Holder by no later than 2:00 P.M., EST, on
the Maturity Date.

 

Section
1.04     Payments.

  

(1)     
Monthly Payments. The Company shall make monthly payments of principal, interest and the corresponding amount of redemption
premium to the Holder, while this Debenture is outstanding, until the Maturity Date, based on the payment, amortization and redemption
premium schedule attached hereto as Schedule A. In the event such day is not a Business Day, then said payment shall be
due on the first Business Day thereafter occurring.

 

(2)     
Interest Calculations; Payment Application. Interest shall be calculated on the basis of a 360-day year, and shall accrue
daily on the outstanding principal amount outstanding from time to time for the actual number of days elapsed, commencing on the
Effective Date until payment in full of the outstanding principal, together with all accrued and unpaid interest and other amounts
which may become due hereunder or under any Transaction Documents, has been made. All payments received and actually collected
by Holder hereunder shall be applied first to any costs and expenses due or incurred hereunder or under any other Transaction
Documents, second to accrued and unpaid interest hereunder, and last to reduce the outstanding principal balance of this Debenture.

 

(3)     
Late Fee. If all or any portion of the payments of principal, interest or other charges due hereunder are not received
by the Holder within five (5) days of the date such payment is due, then the Company shall pay to the Holder a late charge (in
addition to any other remedies that Holder may have) equal to five percent (5%) of each such unpaid payment or sum. Any payments
returned to Holder for any reason must be covered by wire transfer of immediately available funds to an account designated by
Holder, plus a $100.00 administrative fee charge. Holder shall have no responsibility or liability for payments purportedly made
hereunder but not actually received by Holder; and the Company shall not

 

2

be
discharged from the obligation to make such payments due to loss of same in the mails or due to any other excuse or justification
ultimately involving facts where such payments were not actually received by Holder.

  

Section
1.05.    Manner of Payments. All sums payable to the order of Holder hereunder shall be payable by ACH transfer
of lawful dollars of the United States of America to the ACH instructions set forth below, or at such place as Holder, from time
to time, may designate in writing. ACH Instructions for all sums due and payable hereunder are as follows:

  

	Bank
    Name:  	 
	Bank
    Address:  	 
	Beneficiary
    Account Name:  	 
	Beneficiary
    Account Number: 	 
	ACH
    Transfer/Routing Number:  	 
	SWIFT:  	 

  

ARTICLE
II

 

Section
2.01    Secured Nature of Debenture. This Debenture is being issued in connection with the Purchase
Agreement. The indebtedness evidenced by this Debenture is also secured by all of the assets and property of the Company and various
other instruments and documents referred to in the Purchase Agreement as the “Transaction Documents”. All of
the agreements, conditions, covenants, provisions, representations, warranties and stipulations contained in any of the Transaction
Documents which are to be kept and performed by the Company are hereby made a part of this Debenture to the same extent and with
the same force and effect as if they were fully set forth herein, and the Company covenants and agrees to keep and perform them,
or cause them to be kept or performed, strictly in accordance with their terms.

 

ARTICLE
III 

 

Section
3.01     Events of Default. The occurrence of any of the following events shall constitute
an “Event of Default” hereunder: (i) the Company shall fail to pay any interest, principal or other charges
due under this Debenture or any other Transaction Documents on the date when any such payment shall be due and payable; (ii) the
Company makes an assignment for the benefit of creditors; (iii) any order or decree is rendered by a court which appoints or requires
the appointment of a receiver, liquidator or trustee for the Company, and the order or decree is not vacated within thirty (30)
days from the date of entry thereof; (iv) any order or decree is rendered by a court adjudicating the Company insolvent, and the
order or decree is not vacated within thirty (30) days from the date of entry thereof; (v) the Company files a petition in bankruptcy
under the provisions of any bankruptcy law or any insolvency act; (vi) the Company admits, in writing, its inability to pay its
debts as they become due; (vii) a proceeding or petition in bankruptcy is filed against the Company and such proceeding or petition
is not dismissed within thirty (30) days from the date it is filed; (viii) the Company files a petition or answer seeking reorganization
or arrangement under the bankruptcy laws or any law or statute of the United States or any other foreign country or state; (ix)
any written warranty, representation, certificate or statement of the Company and/or

 

3

Guarantors
in this Debenture, the Purchase Agreement or any other Transaction Document or any other agreement with Holder shall be false
or misleading in any material respect when made or deemed made; and (x) the Company shall fail to perform, comply with or abide
by any of the stipulations, agreements, conditions and/or covenants contained in this Debenture or any of the other Transaction
Documents on the part of the Company to be performed complied with or abided by (except as otherwise provided in the Transaction
Documents), and such failure continues or remains uncured for ten (10) days following written notice from the Holder to the Company.

 

Section
3.02    Remedies. Upon the occurrence of an Event of Default that is not timely cured within an
applicable cure period hereunder, the interest on this Debenture shall immediately accrue at an interest rate equal to twenty-two
percent (22%) per annum or the maximum interest rate allowable by law, and, in addition to all other rights or remedies the Holder
may have, at law or in equity, the Holder may, in its sole discretion, accelerate full repayment of all principal amounts outstanding
hereunder, together with accrued interest thereon, together with redemption premiums due thereon, together with all attorneys’
fees, paralegals’ fees and costs and expenses incurred by the Holder in collecting or enforcing payment hereof (whether
such fees, costs or expenses are incurred in negotiations, all trial and appellate levels, administrative proceedings, bankruptcy
proceedings or otherwise), and together with all other sums due by the Company hereunder and under the Transaction Documents,
all without any relief whatsoever from any valuation or appraisement laws, and payment thereof may be enforced and recovered in
whole or in part at any time by one or more of the remedies provided to the Holder at law, in equity, or under this Debenture
or any of the other Transaction Documents. In connection with the Holder’s rights hereunder upon an Event of Default, the
Holder need not provide, and the Company hereby waives, any presentment, demand, protest or other notice of any kind, and the
Holder may immediately enforce any and all of its rights and remedies hereunder and all other remedies available to it in equity
or under applicable law.

  

ARTICLE
IV 

 

Section
4.01     Usury Savings Clause. Notwithstanding any provision in this Debenture or the other Transaction
Documents to the contrary, the total liability for payments of interest and payments in the nature of interest, including, without
limitation, all charges, fees, exactions, or other sums which may at any time be deemed to be interest, shall not exceed the limit
imposed by the usury laws of the jurisdiction governing this Debenture or any other applicable law. In the event the total liability
of payments of interest and payments in the nature of interest, including, without limitation, all charges, fees, exactions or
other sums which may at any time be deemed to be interest, shall, for any reason whatsoever, result in an effective rate of interest,
which for any month or other interest payment period exceeds the limit imposed by the usury laws of the jurisdiction governing
this Debenture, all sums in excess of those lawfully collectible as interest for the period in question shall, without further
agreement or notice by, between, or to any party hereto, be applied to the reduction of the outstanding principal balance due
hereunder immediately upon receipt of such sums by the Holder hereof, with the same force and effect as though the Company had
specifically designated such excess

 

4

sums
to be so applied to the reduction of the principal balance then outstanding, and the Holder hereof had agreed to accept such sums
as a penalty-free payment of principal; provided, however, that the Holder may, at any time and from time to time, elect, by notice
in writing to the Company, to waive, reduce, or limit the collection of any sums in excess of those lawfully collectible as interest,
rather than accept such sums as a prepayment of the principal balance then outstanding. It is the intention of the parties that
the Company does not intend or expect to pay, nor does the Holder intend or expect to charge or collect any interest under this
Debenture greater than the highest non-usurious rate of interest which may be charged under applicable law.

  

ARTICLE
V

 

Section
5.01    No Exemption. The Company hereby waives and releases all benefit that might accrue to the
Company by virtue of any present or future laws exempting any property that may serve as security for this Debenture, or any other
property, real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy, or
sale under execution, exemption from civil process, or extension of time for payment; and the Company agrees that any property
that may be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of execution issued thereon, may be sold
upon any such writ in whole or in part in any order or manner desired by Holder.

 

Section
5.02    Exercise of Remedies. The remedies of the Holder as provided herein and in any of the other Transaction
Documents shall be cumulative and concurrent and may be pursued singly, successively or together, at the sole discretion of the
Holder, and may be exercised as often as occasion therefor shall occur; and the failure to exercise any such right or remedy shall
in no event be construed as a waiver or release thereof.

 

Section
5.03    Waivers. The Company and all others who are, or may become liable for the payment hereof: (i) severally
waive presentment for payment, demand, notice of nonpayment or dishonor, protest and notice of protest of this Debenture or any
other Transaction Documents, and all other notices in connection with the delivery, acceptance, performance, default, or enforcement
of the payment of this Debenture and the other Transaction Documents, except as specifically provided in this Debenture or any
other Transaction Document; (ii) expressly consent to all extensions of time, renewals or postponements of time of payment of
this Debenture and any other Transaction Documents from time to time prior to or after the maturity of this Debenture without
notice, consent or further consideration to any of the foregoing; (iii) expressly agree that the Holder shall not be required
first to institute any suit, or to exhaust its remedies against the Company or any other person or party to become liable hereunder
or against any collateral that may secure this Debenture in order to enforce the payment of this Debenture; and (iv) expressly
agree that, notwithstanding the occurrence of any of the foregoing (except the express written release by the Holder of any such
person), the undersigned shall be and remain, directly and primarily liable for all sums due under this Debenture.

 

Section
5.04     No Waiver. Holder shall not be deemed, by any act of omission or commission, to have waived any
of its rights or remedies hereunder unless such waiver is

 

5

in
writing and signed by Holder, and then only to the extent specifically set forth in the writing. A waiver on one event shall not
be construed as continuing or as a bar to or waiver of any right or remedy to a subsequent event.

 

ARTICLE
VI 

 

Section
6.01     Notice. Any notices, consents, waivers, or other communications required or permitted to be
given under the terms of this Debenture must be in writing and in each case properly addressed to the party to receive the same
in accordance with the information below, and will be deemed to have been delivered: (i) if mailed by certified mail, return receipt
requested, postage prepaid and properly addressed to the address below, then three (3) business days after deposit of same in
a regularly maintained U.S. Mail receptacle; or (ii) if mailed by Federal Express, UPS or other nationally recognized overnight
courier service, next business morning delivery, then one (1) business day after deposit of same in a regularly maintained receptacle
of such overnight courier; or (iii) if hand delivered, then upon hand delivery thereof to the address indicated on or prior to
5:00 p.m ., EST, on a business day. Any notice hand delivered after 5:00 p.m., EST, shall be deemed delivered on the following
business day. Notwithstanding the foregoing, notice, consents, waivers or other communications referred to in this Debenture may
be sent by facsimile, e-mail, or other method of delivery, but shall be deemed to have been delivered only when the sending party
has confirmed (by reply e-mail or some other form of written confirmation from the receiving party) that the notice has been received
by the other party. The addresses and facsimile numbers for such communications shall be as set forth below, unless such address
or information is changed by a notice conforming to the requirements hereof.

 

	 	If to the Company:	GrowLife, Inc.
	 	 	500 Union Street, Suite 810
	 	 	Seattle, WA 98101
	 	 	Attention:  Marco Hegyi
	 	 	E-Mail: mhegyi@growlifeinc.com
	 	 	 
	 	With a copy to:	Horwitz & Armstrong, LLP
	 	(which shall not constitute notice)	26475 Rancho Parkway South
	 	 	Lake Forest, CA 92630
	 	 	Attention: John Armstrong, Esq.
	 	 	E-Mail:  jarmstrong@horwitzarmstrong.com
    
	 	 	 
	 	If to the Holder:	TCA Global Credit Master Fund, LP
	 	 	3960 Howard Hughes Parkway, Suite 500
	 	 	Las Vegas, NV 89196
	 	 	Attn: Mr. Robert Press
	 	 	E-Mail:  bpress@tcaglobalfund.com
	 	 	 
	 	With a copy to:	Lucosky Brookman LLP
	 	(which shall not constitute notice)	101 Wood Avenue South, 5th Floor
	 	 	Woodbridge, NJ 08830
	 	 	Attn: Seth A. Brookman, Esq. 
	 	 	E-Mail:  sbrookman@lucbro.com

  

6

Section
6.02    Governing Law and Venue. The Company and Holder each irrevocably agrees that any dispute arising
under, relating to, or in connection with, directly or indirectly, this Debenture or related to any matter which is the subject
of or incidental to this Debenture (whether or not such claim is based upon breach of contract or tort) shall be subject to the
exclusive jurisdiction and venue of the state and/or federal courts located in Broward County, Florida. This provision is intended
to be a “mandatory” forum selection clause and governed by and interpreted consistent with Florida law. The Company
and Holder each hereby consents to the exclusive jurisdiction and venue of any state or federal court having its situs in said
county, and each waives any objection based on forum non conveniens. The Company hereby waives personal service of any and all
process and consent that all such service of process may be made by certified mail, return receipt requested, directed to the
Company, as set forth herein in the manner provided by applicable statute, law, rule of court or otherwise. Except for the foregoing
mandatory forum selection clause, all terms and provisions hereof and the rights and obligations of the Company and Holder hereunder
shall be governed, construed and interpreted in accordance with the laws of the State of Nevada, without reference to conflict
of laws principles. 

 

Section
6.03     Severability. In the event any one or more of the provisions of this Debenture shall for any
reason be held to be invalid, illegal, or unenforceable, in whole or in part, in any respect, or in the event that any one or
more of the provisions of this Debenture operates or would prospectively operate to invalidate this Debenture, then and in any
of those events, only such provision or provisions shall be deemed null and void and shall not affect any other provision of this
Debenture. The remaining provisions of this Debenture shall remain operative and in full force and effect and shall in no way
be affected, prejudiced, or disturbed thereby.

  

Section
6.04     Entire Agreement and Amendments. This Debenture, together with the other Transaction Documents
represents the entire agreement between the parties hereto with respect to the subject matter hereof and thereof, and there are
no representations, warranties or commitments, except as set forth herein and therein. This Debenture may be amended only by an
instrument in writing executed by the parties hereto.

  

Section
6.05     Binding Effect. This Debenture shall be binding upon the Company and the successors and assigns
of the Company and shall inure to the benefit of the Holder and the successors and assigns of the Holder.

  

Section
6.06     Assignment. The Holder may from time to time sell or assign, in whole or in part, or grant
participations in, this Debenture and/or the obligations evidenced hereby without the consent of the Company. The holder of any
such sale, assignment or participation, if the applicable agreement between Holder and such holder o provides, shall be: (i) entitled
to all of the rights obligations and benefits of Holder (to the extent of such holder’s interest or pa1ticipation); and
(ii) deemed to hold and may exercise the rights of setoff or banker’s lien with respect to any and all obligations of such
holder to the Company (to the extent of such holder s interest or participation), in each case as fully as though the Company
was directly indebted to

 

7

such
holder. Holder may in its discretion give notice to the Company of such sale, assignment or participation; however, the failure
to give such notice shall not affect any of Holder’s or such holder’s rights hereunder.

  

Section
6.07    Lost or Mutilated Debenture. If this Debenture shall be mutilated, lost, stolen or destroyed
the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Debenture or in lieu
of or in substitution for a lost, stolen or destroyed Debenture a new Debenture for the principal amount of this Debenture so
mutilated, lost stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such Debenture, and
of the ownership hereof, reasonably satisfactory to the Company.

  

Section
6.08     WAIVER OF JURY TRIAL. THE COMPANY HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY
WAIVES ALL RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION BASED ON THIS DEBENTURE, OR ARISING OUT OF, UNDER OR IN CONNECTION
WITH, THIS DEBENTURE OR ANY OTHER TRANSACTION DOCUMENTS, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL
OR WRITTEN) OR ACTIONS OF OR BETWEEN ANY PARTY HERETO, AND THE COMPANY AGREES AND CONSENTS TO THE GRANTING TO HOLDER OF RELIEF
FROM ANY STAY ORDER WHICH MIGHT BE ENTERED BY ANY COURT AGAINST HOLDER AND TO ASSIST HOLDER IN OBTAINING SUCH RELIEF. THIS PROVISION
IS A MATERIAL INDUCEMENT FOR HOLDER ACCEPTING THIS DEBENTURE FROM THE COMPANY. THE COMPANY’S REASONABLE RELIANCE UPON SUCH
INDUCEMENT I HEREBY ACKNOWLEDGED.

  

Section
6.09      NON-US STATUS. THE HOLDER IS A NON-US PERSON AS THAT TERM IS DEFINED IN THE UNITED STATES
INTERNAL REVENUE CODE. IT IS HEREBY AGREED AND UNDERSTOOD THAT THE OBLIGATIONS HEREUNDER MAY BE SOLD ONLY TO NON-U.S. PERSON.
THE INTEREST PAYABLE HEREUNDER IS PAYABLE ONLY OUTSIDE THE UNITED STATES. ANY U.S. PERSON WHO HOLDS THIS OBLIGATION WILL BE SUBJECT
TO LIMITATIONS UNDER THE UNITED STATES INCOME TAX LAW. BY ACCEPTING THIS OBLIGATION, THE HOLDER REPRESENTS AND WARRANT THAT IT
IS NOT A UNITED STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SEC 6049(8)(4) OF THE INTERNAL REVENUE CODE AND REGULATIONS
THEREUNDER) AND THAT IT IS NOT ACTING FOR OR ON BEHALF OF A UNITED STATE PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SEC.
6049(B)(4) OF THE INTERNAL REVENUE CODE AND THE REGULATIONS THEREUNDER).

 

ARTICLE
VII

 

Section
7.01     Conversion of Debenture. At any time and from time to time while this Debenture is outstanding
on or after the Closing Date, (i) if mutually agreed upon by the parties or (ii) upon the occurrence of an Event of Default at
the sole option of the Holder, this Debenture may be, convertible into shares of the Company’s common stock, $0.0001 par
value per share (the “Common Stock”) in accordance with the terms and conditions set

 

8

forth
in this Article VII.

  

(1)             Voluntary
Conversion. At any time while this Debenture is outstanding on or after the Closing Date, (i) if mutually agreed upon by the
parties or (ii) at the sole option of the Holder upon the occurrence of an Event of Default, the Holder may convert all or any
portion of the outstanding principal, accrued and unpaid interest redemption premium and any other sums due and payable hereunder
or under any of the other Transaction Documents (such total amount, the “Conversion Amount”) into shares of
Common Stock of the Company (the “Conversion Shares”) at a price equal to: (i) the Conversion Amount (the numerator);
divided by (ii) ninety percent (90%) of the lowest of the average daily volume weighted average price of the Company’s
Common Stock during the five (5) trading days immediately prior to the Conversion Date (as defined below), as indicated in the
conversion notice (in the form attached hereto as Exhibit “B” the “Conversion Notice”) (the denominator)
(the “Conversion Price”). The Holder shall submit a Conversion Notice indicating the amount of the Debenture
being converted and the number of Conversion Shares issuable upon such conversion, and where the Conversion Shares should be delivered.

 

(2)             The Holder’s Conversion Limitations. The Company shall not affect any conversion of this Debenture, and the
Holder shall not have the right to convert any portion of this Debenture, to the extent that after giving effect to the conversion
set forth on the Conversion Notice submitted by the Holder, the Holder (together with the Holder’s affiliates (as defined
herein) and any Persons acting as a group together with the Holder or any of the Holder’s affiliates) would beneficially
own in excess of the Beneficial Ownership Limitation (as defined herein). To ensure compliance with this restriction, prior to
delivery of any Conversion Notice, the Holder shall have the right to request that the Company provide to the Holder a written
statement of the percentage ownership of the Company’s Common Stock that would by beneficially owned by the Holder and its
affiliates in the Company if the Holder converted such portion of this Debenture then intended to be converted by Holder. The
Company shall, within two (2) business days of such request, provide Holder with the requested information in a written statement,
and the Holder shall be entitled to rely on such written statement from the Company in issuing its Conversion Notice and ensuring
that its ownership of the Company’s Common Stock is not in excess of the Beneficial Ownership Limitation. The restriction
described in this Section may be waived by Holder, in whole or in part, upon notice from the Holder to the Company. For purposes
of this Debenture, the “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of Common Stock
outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Debenture.
The limitations contained in this Section shall apply to any successor holder of this Debenture. For purposes of this Debenture,
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization or a government or any department or agency thereof.

 

(3)             Mechanics of Conversion.The conversion of this Debenture shall be conducted in the following manner:

  

(a)               
Holder’s Delivery Requirements. To convert this Debenture into shares of Common Stock on any date set forth in the
Conversion Notice by the Holder 

 

9

(the
“Conversion Date”), the Holder shall transmit by facsimile or electronic mail (or otherwise deliver) a copy
of the fully executed Conversion Notice to the Company (or, under certain circumstances as set forth below, by delivery of the
Conversion Notice to the Company’s transfer agent).

(b)              
Company’s Response. Upon receipt by the Company of a copy of a Conversion Notice, the Company shall as soon as practicable,
but in no event later than two (2) Business Days after receipt of such Conversion Notice, send, via facsimile or electronic mail
(or otherwise deliver) a confirmation of receipt of such Conversion Notice (the “Conversion Confirmation”)
to the Holder indicating that the Company will process such Conversion Notice in accordance with the terms herein. In the event
the Company fails to issue its Conversion Confirmation within said two (2) Business Day time period, the Holder shall have the
absolute and irrevocable right and authority to deliver the fully executed Conversion Notice to the Company’s transfer agent,
and pursuant to the terms of the Purchase Agreement, the Company’s transfer agent shall issue the applicable Conversion
Shares to Holder as hereby provided. Within five (5) Business Days after the date of the Conversion Confirmation (or the date
of the Conversion Notice, if the Company fails to issue the Conversion Confirmation), provided that the Company’s transfer
agent is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”)
program, the Company shall cause the transfer agent to (or, if for any reason the Company fails to instruct or cause its transfer
agent to so act, then pursuant to the Purchase Agreement, the Holder may request and require the Company’s transfer agent
to) electronically transmit the applicable Conversion Shares to which the Holder shall be entitled by crediting the account of
the Holder’s prime broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system, and
provide proof satisfactory to the Holder of such delivery. In the event that the Company’s transfer agent is not participating
in the DTC FAST program and is not otherwise DWAC eligible (or in the event the Holder otherwise requests), within five (5) Business
Days after the date of the Conversion Confirmation (or the date of the Conversion Notice, if the Company fails to issue the Conversion
Confirmation), the Company shall instruct and cause its transfer agent to (or, if for any reason the Company fails to instruct
or cause its transfer agent to so act, then pursuant to the Purchase Agreement, the Holder may request and require the Company’s
transfer agent to) issue and surrender to a nationally recognized overnight courier for delivery to the address specified in the
Conversion Notice, a certificate, registered in the name of the Holder or its nominee, for the number of Conversion Shares to
which the Holder shall be entitled. To effect conversions hereunder, the Holder shall not be required to physically surrender
this Debenture to the Company unless the entire principal amount of this Debenture, plus all accrued and unpaid interest thereon
and other sums due hereunder, has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal
amount of this Debenture in an amount equal to the applicable Conversion Amount. The Holder and the Company shall maintain records
showing the principal amount(s) converted and the date of such conversion(s). The Holder, and any assignee by acceptance of this
Debenture, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this
Debenture, the unpaid and unconverted principal amount of this Debenture may be less than the amount stated on the face hereof. 

(c)               
Record Holder. The Person(s) entitled to receive the shares of

 

10

Common
Stock issuable upon a conversion of this Debenture shall be treated for all purposes as the record holder(s) of such shares of
Common Stock as of the Conversion Date.

  

(d)                 
Failure to Deliver Certificates. If in the case of any Conversion Notice, the certificate or certificates are not
delivered to or as directed by the Holder by the date required hereby, the Holder shall be entitled to elect by written notice
to the Company at any time on or before its receipt of such certificate or certificates, to rescind such Conversion Notice, in
which event the Company shall promptly return to the Holder any original Debenture delivered to the Company and the Holder shall
promptly return to the Company the Common Stock certificates representing the principal amount of this Debenture unsuccessfully
tendered for conversion to the Company.

 

(e)               
Obligation Absolute; Partial Liquidated Damages. The Company’s obligations to issue and deliver the Conversion Shares
upon conversion of this Debenture in accordance with the terms hereof are absolute and unconditional, irrespective of any action
or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any
judgment against any person or entity or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or
termination, or any breach or alleged breach by the Holder or any other person or entity of any obligation to the Company or any
violation or alleged violation of law by the Holder or any other person or entity, and irrespective of any other circumstance
which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of such Conversion Shares;
provided, however, that such delivery shall not operate as a waiver by the Company of any such action the Company may have against
the Holder . In the event the Holder of this Debenture shall elect to convert any or all of the outstanding principal amount hereof
and accrued but unpaid interest thereon in accordance with the terms of this Debenture, the Company may not refuse conversion
based on any claim that the Holder or anyone associated or affiliated with the Holder has been engaged in any violation of law,
agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining and or enjoining conversion
of all or part of this Debenture shall have been sought and obtained, and the Company posts a surety bond for the benefit of the
Holder in the amount of 150% of the outstanding principal amount of this Debenture being converted, which is subject to the injunction,
which bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of
which shall be payable to such Holder to the extent it obtains judgment. In the absence of such injunction, the Company shall
issue Conversion Shares upon a properly noticed conversion. If the Company fails for any reason to deliver to the Holder such
certificate or certificates representing Conversion Shares pursuant to timing and delivery requirements of this Debenture, the
Company shall pay to such Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of principal amount being
converted, $1.00 per day for each day after the date by which such certificates should have been delivered until such certificates
are delivered. Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant
to this Debenture or any agreement securing the indebtedness under this Debenture for the Company’s failure to deliver Conversion
Shares within the period specified herein and such Holder shall have the right to pursue all remedies available to it hereunder,
at law or in equity, including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of
any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any 

11

other
Section hereof or under applicable law. Nothing herein shall prevent the Holder from having the Conversion Shares issued directly
by the Company’s transfer agent in accordance with the Purchase Agreement, in the event for any reason the Company fails
to issue or deliver, or cause its transfer agent to issue and deliver, the Conversion Shares to the Holder upon exercise of Holder’s
conversion rights hereunder.

 

(f)          
      Transfer Taxes. The issuance of certificates for shares of the Common Stock on conversion
of this Debenture shall be made without charge to the Holder hereof for any documentary stamp or similar taxes, or any other issuance
or transfer fees of any nature or kind that may be payable in respect of the issue or delivery of such certificates, any such
taxes or fees, if payable, to be paid by the Company.

 

(4)             Reservation of Common Stock. The Company shall take all action necessary to at all times have authorized, and reserved
for the purpose of issuance, three (3) times such number of shares of Common Stock as shall be necessary to effect the full conversion
of the Debenture in accordance with its terms (the “Share Reserve”).  If upon receipt of a conversion
notice from the Holder, the Share Reserve is insufficient to effect the full conversion of the Debenture then outstanding, the
Company shall increase the Share Reserve accordingly.  If the Company does not have sufficient authorized and unissued shares
of Common Stock available to increase the Share Reserve, the Company shall cause its authorized and unissued shares to be increased
within forty-five (45) days to an amount of shares equal to three (3) times the Conversion Shares. The Company’s management
shall recommend to the shareholders to vote in favor of increasing the number of shares of Common Stock authorized.

  

(5)             Make-Whole Rights. Upon liquidation by the Holder of Conversion Shares issued pursuant to a Conversion Notice, provided
that the Holder realizes a net amount from such liquidation equal to less than the Conversion Amount specified in the relevant
Conversion Notice (such net realized amount, the “Realized Amount”), the Company shall issue to the Holder
additional shares of the Company’s Common Stock equal to: (i) the Conversion Amount specified in the relevant Conversion
Notice; minus (ii) the Realized Amount, as evidenced by a reconciliation statement from the Holder (a “Sale Reconciliation”)
showing the Realized Amount from the sale of the Conversion Shares; divided by (iii) the average volume weighted average
price of the Company’s Common Stock during the five (5) Business Days immediately prior to the date upon which the Holder
delivers notice (the “Make-Whole Notice”) to the Company that such additional shares are requested by the Holder
(the “Make-Whole Stock Price”) (such number of additional shares to be issued, the “Make-Whole Shares”).
Upon receiving the Make-Whole Notice and Sale Reconciliation evidencing the number of Make-Whole Shares requested, the Company
shall instruct its transfer agent to issue certificates representing the Make-Whole Shares, which Make-Whole Shares shall be issued
and delivered in the same manner and within the same time frames as set forth herein. The Make-Whole Shares, when issued, shall
be deemed to be validly issued, fully paid, and non-assessable shares of the Company’s Common Stock. Following the sale
of the Make-Whole Shares by the Holder: (i) in the event that the Holder receives net proceeds from such sale which, when added
to the Realized Amount from the prior relevant Conversion Notice, is less than the Conversion Amount specified in the relevant
Conversion Notice, the Holder shall deliver an additional

 

12

Make-Whole
Notice to the Company following the procedures provided previously in this paragraph, and such procedures and the delivery of
Make-Whole Notices and issuance of Make-Whole Shares shall continue until the Conversion Amount has been fully satisfied; and
(ii) in the event that the Holder received net proceeds from the sale of Make-Whole Shares in excess of the Conversion Amount
specified in the relevant Conversion Notice, such excess amount shall be applied to satisfy any and all amounts owed hereunder
in excess of the Conversion Amount specified in the relevant Conversion Notice.

 

(6)             Adjustments to Conversion Price.

  

(a)               
Stock Dividends and Stock Splits. If the Company, at any time while this Debenture is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions payable in shares of Common Stock on outstanding shares of Common Stock, (ii)
subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of a reverse stock
split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues, in the event of a reclassification
of shares of Common Stock, any shares of capital stock of the Company, then the Conversion Price shall be multiplied by a fraction,
the numerator of which shall be the number of shares of Common Stock (excluding any treasury shares of the Company) outstanding
immediately before such event, and the denominator of which shall be the number of shares of Common Stock outstanding immediately
after such event. Any adjustment made pursuant to this Section shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination, or re-classification. 

 

(b)              
Fundamental Transaction. If, at any time while this Debenture is outstanding: (i) the Company effects any merger or consolidation
of the Company with or into another Person, (ii) the Company effects any sale of all or substantially all of its assets in one
transaction or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another Person)
is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities,
cash or property, or (iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case,
a “Fundamental Transaction”), then upon any subsequent conversion of this Debenture, the Holder shall
have the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately prior to the
occurrence of such Fundamental Transaction, the same kind and amount of securities, cash or property as it would have been entitled
to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction,
the holder of one (1) share of Common Stock (the “Alternate Consideration”). For purposes of any such conversion,
the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one (1) share of Common Stock in such Fundamental Transaction, and the
Company shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration. If 

 

13

holders
of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Debenture
following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Company
or surviving entity in such Fundamental Transaction shall issue to the Holder a new note consistent with the foregoing provisions
and evidencing the Holder’s right to convert such note into Alternate Consideration. The terms of any agreement pursuant
to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply
with the provisions of this Section and insuring that this Debenture (or any such replacement security) will be similarly adjusted
upon any subsequent transaction analogous to a Fundamental Transaction.

  

(c)               
Adjustment to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Debenture,
the Company shall promptly deliver to Holder a notice setting forth the Conversion Price after such adjustment and setting forth
a brief statement of the facts requiring such adjustment.

  

(d)              
 Notice to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for
or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall
be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a
party, any sale or transfer of all or substantially all of the assets of the Company, of any compulsory share exchange whereby
the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed
at each office or agency maintained for the purpose of conversion of this Debenture, and shall cause to be delivered to the Holder
at its last address as it shall appear upon the Company’s records, at least twenty (20) calendar days prior to the applicable
record or effective date hereinafter specified, a notice stating: (x) the date on which a record is to be taken for the purpose
of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders
of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined,
or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become
effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange
their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that
holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided that the failure
to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action
required to be specified in such notice. The Holder is entitled to convert this Debenture during the 10-day period commencing
on the date of such 

 

14

notice
through the effective date of the event triggering such notice.

 

[signature
page follows]

 

15

IN
WITNESS WHEREOF with the intent to be legally bound hereby, the Company as executed this Senior Secured, Convertible, Redeemable
Debenture as of the date first written above.

 

GROWLIFE,
INC. 

 

	By:	  /s/ Marco
    Hegyi	 
	Name: Marco Hegyi 	 
	Title: President 	 
	 	 
	STATE OF ________________	)
	 	) SS.
	COUNTY OF ______________	)

   

The
undersigned, a Notary Public in and for the said County, in the State aforesaid, DO HEREBY CERTIFY that Marco Hegyi, the President
of Growlife, Inc., a Delaware corporation, who is personally known to me to be the same person whose name is subscribed to the
foregoing instrument, appeared before me this day in person and acknowledged that he/she signed and delivered the said instrument
as his/her own free and voluntary act and as the free and voluntary act of said corporation, for the uses and purposes therein
set forth.

 

GIVEN
under my hand and notarial seal this _____ day of ________________, 20____. 

	 	 	 
	 	Notary Public	 
	 	 	 
	 	My Commission Expires:	 
	 	 	 

 

16

CONSENT
AND AGREEMENT

  

The
undersigned is a Guarantor, as that term is defined in that certain securities purchase agreement by and between the Company and
the Holder and, as such, the undersigned hereby consents and agrees to the payment of the amounts contemplated in the senior secured,
convertible, redeemable debenture, documents contemplated thereby and to the provisions contained therein relating to conditions
to be fulfilled and obligations to be performed by the Company pursuant to or in connection with said senior secured, convertible,
redeemable debenture secured redeemable debenture to the same extent as if the undersigned were a party to said senior secured,
convertible, redeemable debenture. 

 

GUARANTOR:

 

EVERGREEN
GARDEN CENTERS LLC  

 

	By:	  /s/ Marco
    Hegyi	 
	Name: Marco Hegyi 	 
	Title: Manager	 

	 	 
	STATE OF ________________	)
	 	) SS.
	COUNTY OF ______________	)

  

The
undersigned, a Notary Public in and for the said County, in the State aforesaid, DO HEREBY CERTIFY that Marco Hegyi, the Manager
of Evergreen Garden Centers LLC, a Delaware limited liability company, who is personally known to me to be the same person whose
name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that he/she signed and
delivered the said instrument as his/her own free and voluntary act and as the free and voluntary act of said corporation, for
the uses and purposes therein set forth. 

 

GIVEN
under my hand and notarial seal this _____ day of ________________, 20____. 

	 	 	 
	 	Notary Public	 
	 	 	 
	 	My Commission Expires:	 
	 	 	 

 

17

CONSENT
AND AGREEMENT

  

The
undersigned is a Guarantor, as that term is defined in that certain securities purchase agreement by and between the Company and
the Holder and, as such, the undersigned hereby consents and agrees to the payment of the amounts contemplated in the senior secured,
convertible, redeemable debenture, documents contemplated thereby and to the provisions contained therein relating to conditions
to be fulfilled and obligations to be performed by the Company pursuant to or in connection with said senior secured, convertible,
redeemable debenture secured redeemable debenture to the same extent as if the undersigned were a party to said senior secured,
convertible, redeemable debenture.

  

GUARANTOR: 

 

GROWLIFE
HYDROPONICS, INC. 

 

	By:	  /s/ Marco
    Hegyi	 
	Name: Marco Hegyi 	 
	Title: Chief Executive Officer	 

	 	 
	STATE OF ________________	)
	 	) SS.
	COUNTY OF ______________	)

  

The
undersigned, a Notary Public in and for the said County, in the State aforesaid, DO HEREBY CERTIFY that Marco Hegyi, the Chief
Executive Officer of Growlife Hydroponics, Inc., a Delaware corporation, who is personally known to me to be the same person whose
name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that he/she signed and
delivered the said instrument as his/her own free and voluntary act and as the free and voluntary act of said corporation, for
the uses and purposes therein set forth.

  

GIVEN
under my hand and notarial seal this _____ day of ________________, 20____. 

	 	 	 
	 	Notary Public	 
	 	 	 
	 	My Commission Expires:	 
	 	 	 

 

18

CONSENT
AND AGREEMENT

 

The
undersigned is a Guarantor, as that term is defined in that certain securities purchase agreement by and between the Company and
the Holder and, as such, the undersigned hereby consents and agrees to the payment of the amounts contemplated in the senior secured,
convertible, redeemable debenture, documents contemplated thereby and to the provisions contained therein relating to conditions
to be fulfilled and obligations to be performed by the Company pursuant to or in connection with said senior secured, convertible,
redeemable debenture secured redeemable debenture to the same extent as if the undersigned were a party to said senior secured,
convertible, redeemable debenture.

  

GUARANTOR:

  

ROCKY MOUNTAIN
HYDROPONICS

 

	By:	  /s/ Marco
    Hegyi	 
	Name: Marco Hegyi 	 
	Title: Manager	 

	 	 
	STATE OF ________________	)
	 	) SS.
	COUNTY OF ______________	)

 

The
undersigned, a Notary Public in and for the said County, in the State aforesaid, DO HEREBY CERTIFY that Marco Hegyi, the Manager
of Rocky Mountain Hydroponics, a Colorado limited liability company, who is personally known to me to be the same person whose
name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that he/she signed and
delivered the said instrument as his/her own free and voluntary act and as the free and voluntary act of said corporation, for
the uses and purposes therein set forth.

 

GIVEN
under my hand and notarial seal this _____ day of ________________, 20____.

	 	 	 
	 	Notary Public	 
	 	 	 
	 	My Commission Expires:	 
	 	 	 

 

19

SCHEDULE
A

 

PAYMENT
SCHEDULE

  

	 	 	Period	 	 	 	Principal
    Balance	 	interest
    pmt	 	principal
    

    pmt	 	Total
    Int	 	Total

    payment
	7/25/2015	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	7/25/2015	 	1	 	 	 	                    -   	 	 10,500.00	 	                 -   	 	    10,500.00	 	   10,500.00
	8/25/2015	 	2	 	 	 	                    -   	 	10,500.00	 	                 -   	 	    21,000.00	 	   21,000.00
	9/25/2015	 	3	 	 	 	                    -   	 	10,500.00	 	                 -   	 	    31,500.00	 	   31,500.00
	10/25/2015	 	4	 	1	 	   700,000.00	 	10,500.00	 	 53,676.00	 	    42,000.00	 	   95,676.00
	11/25/2015	 	5	 	2	 	   646,324.00	 	9,694.86	 	 54,481.13	 	    51,694.86	 	 159,851.99
	12/25/2015	 	6	 	3	 	   591,842.87	 	8,877.64	 	 55,298.35	 	    60,572.50	 	 224,027.99
	1/25/2016	 	7	 	4	 	   536,544.52	 	8,048.17	 	 56,127.83	 	    68,620.67	 	 288,203.98
	2/25/2016	 	8	 	5	 	   480,416.69	 	7,206.25	 	 56,969.74	 	    75,826.92	 	 352,379.98
	3/25/2016	 	9	 	6	 	   423,446.95	 	6,351.70	 	 57,824.29	 	    82,178.63	 	 416,555.97
	4/25/2016	 	10	 	7	 	   365,622.66	 	5,484.34	 	 58,691.66	 	    87,662.97	 	 480,731.97
	5/25/2016	 	11	 	8	 	   306,931.00	 	4,603.97	 	 59,572.03	 	    92,266.93	 	 544,907.96
	6/25/2016	 	12	 	9	 	   247,358.97	 	3,710.38	 	 60,465.61	 	    95,977.31	 	 609,083.96
	7/25/2016	 	13	 	10	 	   186,893.36	 	2,803.40	 	 61,372.59	 	    98,780.72	 	 673,259.95
	8/25/2016	 	14	 	11	 	   125,520.76	 	1,882.81	 	 62,293.18	 	 100,663.53	 	 737,435.95
	9/25/2016	 	15	 	12	 	     63,227.58	 	948.41	 	 63,227.58	 	 101,611.94	 	 801,611.94

 

20

EXHIBIT
B

 

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert principal and/or interest under the Senior Secured, Convertible, Redeemable Debenture (the
“Debenture”) issued by GrowLife, Inc., a corporation incorporated under the laws of the State of Delaware
(the “Company”), into shares of common stock, par value $0.0001 per share (the “Common Shares”),
of the Company in accordance with the conditions of the Debenture, as of the date written below. 

 

Based
solely on information provided by the Company to Holder, the undersigned represents and warrants to the Company that its ownership
of the Common Shares does not exceed the Beneficial Ownership Limitation as specified under the Note. 

 

	Conversion Calculations 

    Effective Date of 

    Conversion:	 	 
	Principal Amount and/or Interest to be Converted:	 	 
	Number of Common Shares to be Issued:	 	 

  

	 	 	 	 	 	 	 
	 	[HOLDER]	 
	 	 	 
	 	By:	 	 
	 	 	 	 	 	 	 
	 	Name:	 	 
	 	 	 	 	 	 	 
	 	Title:	 	 
	 	 	 	 
	 	Address:	 	 
	 	 	 

 

21

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