Document:

Exhibit 10.3

 

FORM OF AMENDED AND RESTATED REGISTRATION
RIGHTS AGREEMENT

 

This Amended and Restated
Registration Rights Agreement (this “Agreement”) is made and entered into as of [●], 2021 by and among
Falcon Capital Acquisition Corp., a Delaware corporation (prior to the Effective Time (as defined in the Merger Agreement), “Acquiror”
and, at and after the Effective Time, the “Company”), and the parties listed on Schedule A hereto (each,
a “Holder” and collectively, the “Holders”). Any capitalized term used but not defined herein
will have the meaning ascribed to such term in the Merger Agreement (as defined below).

 

RECITALS

 

WHEREAS, the
Acquiror, FCAC Merger Sub Inc., a Delaware corporation (“Merger Sub”), and Sharecare, Inc., a Delaware
corporation (“Sharecare”), and Colin Daniel, as Stockholder Representative, are party to that certain Agreement
and Plan of Merger, dated as of February [·], 2021 (the “Merger
Agreement”), pursuant to which, on the Closing Date (as defined in the Merger Agreement), Merger Sub merged with
and into Sharecare (the “Merger”), with Sharecare surviving the Merger as a wholly owned subsidiary of the
Company;

 

WHEREAS,
Acquiror and Falcon Equity Investors LLC, a Delaware limited liability company (together with any Permitted Transferee (as defined
below), each an “Acquiror Holder” and, collectively, the “Acquiror Holders”), are parties
to that certain Registration Rights Agreement of the Acquiror, dated September 21, 2020 (the “Acquiror’s Registration
Rights Agreement”);

 

WHEREAS,
as inducement for Acquiror, Merger Sub and Sharecare to enter into the Merger Agreement, the Acquiror and the Acquiror Holders
will agree that, effective at the Effective Time, the Acquiror’s Registration Rights Agreement will terminate and be of no
further force and effect;

 

WHEREAS,
pursuant to the Merger Agreement, the Company is issuing shares of the Company’s common stock, par value $0.0001 per share
(the “Common Stock”), to the Holders designated on Schedule A hereto (other than the Acquiror Holders)
(each a “Company Holder” and, collectively, the “Company Holders”);

 

WHEREAS,
pursuant to the Merger Agreement, the Acquiror Holders and the Company Holders may in the future receive additional shares of Common
Stock (the “Earnout Shares”); and

 

WHEREAS,
the Company desires to set forth certain matters regarding the ownership of the Registrable Securities (as defined below) by the
Holders.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Article
I

DEFINITIONS

 

Section 1.1
Definitions. For purposes of this Agreement, the following terms and variations thereof have the meanings set forth below:

 

“Agreement”
shall have the meaning given in the Preamble.

 

“Acquiror”
shall have the meaning given in the Preamble.

 

“Acquiror Holders”
shall have the meaning given in the Recitals.

 

“Adverse Disclosure”
means any public disclosure of material non-public information, which disclosure, in the good faith judgment of the Chief Executive
Officer or Chief Financial Officer of the Company, after consultation with outside counsel to the Company, (i) would be required
to be made in any Registration Statement or Prospectus in order for the applicable Registration Statement or Prospectus not to
contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein
(in the case of any prospectus and any preliminary prospectus, in the light of the circumstances under which they were made) not
misleading, (ii) would not be required to be made at such time if the Registration Statement were not being filed, and (iii) the
Company has a bona fide business purpose for not making such information public.

 

     

     

    

 

“Board”
shall mean the Board of Directors of the Company.

 

“Business Day”
means a day other than Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required
by law to close.

 

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

 

“Common Stock”
shall have the meaning given in the Recitals.

 

“Company”
shall have the meaning given in the Preamble.

 

“Company Holders”
shall have the meaning given in the Recitals.

 

“Demand Registration”
has the meaning set forth in Section 2.1.1.

 

“Demanding Holder”
has the meaning set forth in Section 2.1.1.

 

“Earnout Shares”
has the meaning set forth in the Recitals.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder,
all as the same shall be in effect at the time.

 

“Form S-1”
has the meaning set forth in Section 2.1.1.

 

“Form S-3”
has the meaning set forth in Section 2.1.1.

 

“Holders”
shall have the meaning given in the Preamble.

 

“Lock-up Period”
means the earlier of (a) one (1) year after the Effective Time, and (b) subsequent to the Effective Time if the closing price of
the Company’s Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations,
recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the
Effective Time.

 

“Maximum Number
of Securities” shall have the meaning given in subsection 2.1.4.

 

“Merger”
shall have the meaning given in the Recitals.

 

“Merger Agreement”
shall have the meaning given in the Recitals.

 

“Merger Sub”
shall have the meaning given in the Recitals.

 

“Misstatement”
means an untrue statement of a material fact or an omission to state a material fact required to be stated in a Registration Statement
or Prospectus, or necessary to make the statements in a Registration Statement or Prospectus in the light of the circumstances
under which they were made not misleading.

 

“Piggyback
Registration” has the meaning set forth in Section 2.2.1.

 

    2

     

    

 

“Permitted Transferee”
means any person or entity to whom a Holder of Registrable Securities is permitted to transfer such Registrable Securities prior
to the expiration of the Lock-up Period.

 

“Prospectus”
means the prospectus included in any Registration Statement, as supplemented by any and all prospectus supplements and as amended
by any and all post-effective amendments and including all material incorporated by reference in such prospectus.

 

“Registrable
Securities” means (i) any equity securities (including the shares of Common Stock issued or issuable upon the exercise
or conversion of any such equity security) of the Company held by a Holder immediately following consummation of the Merger and
(ii) all of the Earnout Shares. Registrable Securities include any warrants, shares of capital stock or other securities of the
Company issued as a dividend or other distribution with respect to or in exchange for or in replacement of any of the securities
described in the foregoing clauses (i) - (ii). As to any particular Registrable Security, such security shall cease to be a Registrable
Security when: (a) a Registration Statement with respect to the sale of such security shall have become effective under the Securities
Act and such security shall have been sold, transferred, disposed of or exchanged in accordance with such Registration Statement;
(b) such security shall have been otherwise transferred, a new certificate for such security not bearing a legend restricting further
transfer shall have been delivered by the Company and subsequent public distribution of such security shall not require registration
under the Securities Act; (c) such security shall have ceased to be outstanding; (d) such security is freely saleable under Rule
144 without volume limitations or (e) such security has been sold to, or through, a broker, dealer or underwriter in a public distribution
or other public securities transaction.

 

“Registration”
means a registration effected by preparing and filing a registration statement or similar document in compliance with the requirements
of the Securities Act, and the applicable rules and regulations promulgated thereunder, and such registration statement becoming
effective.

 

“Registration
Expenses” means the out-of-pocket expenses of a Registration, including, without limitation, the following:

 

(A) all registration
and filing fees (including fees with respect to filings required to be made with the Financial Industry Regulatory Authority and
any securities exchange on which the Common Stock is then listed);

 

(B) fees and expenses
of compliance with securities or blue sky laws (including reasonable fees and disbursements of counsel for the Underwriters in
connection with blue sky qualifications of Registrable Securities);

 

(C) printing, messenger,
telephone and delivery expenses;

 

(D) reasonable fees
and disbursements of counsel for the Company;

 

(E) reasonable fees
and disbursements of all independent registered public accountants of the Company incurred specifically in connection with such
Registration; and

 

(F) reasonable fees
and expenses of one (1) legal counsel selected by the majority-in-interest of the Demanding Holders initiating a Demand Registration
to be registered for offer and sale in the applicable Registration.

 

“Registration
Statement” means a registration statement filed by the Company with the Commission in compliance with the Securities
Act and the rules and regulations promulgated thereunder for a public offering and sale of securities (other than a registration
statement on Form S-4 or Form S-8, or their successors, or any registration statement covering only securities proposed to be issued
in exchange for securities or assets of another entity).

 

“Requesting Holder”
has the meaning set forth in Section 2.1.1.

 

“Rule 144”
means Rule 144 promulgated under the Securities Act.

 

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“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder,
all as the same shall be in effect at the time.

 

“Sharecare”
shall have the meaning given in the Recitals hereto.

 

“Underwriter”
means a securities dealer who purchases any Registrable Securities as principal in an underwritten offering and not as part of
such dealer’s market-making activities.

 

“Underwritten
Registration” or “Underwritten Offering” means a Registration in which securities of the Company are
sold to an Underwriter in a firm commitment underwriting for distribution to the public.

 

Article
II

REGISTRATION

 

Section
2.1Demand Registration 

 

2.1.1       Request
for Registration. Subject to the provisions of Section 2.1.4 and Section 2.4 hereof, at any time on
or after the expiration of the Lock-up Period, (i) any Acquiror Holder or Acquiror Holders, in each case, holding at least a majority
in interest of the then-outstanding number of Registrable Securities held by all the Acquiror Holders or (ii) any Company Holder
or Company Holders, in each case, holding at least a majority in interest of the then-outstanding number of Registrable Securities
held by all Company Holders (such Acquiror Holders or Company Holders, as the case may be, the “Demanding Holders”),
may make a written demand for Registration under the Securities Act of all or part of their Registrable Securities on Form S-3
(“Form S-3”) (or, if Form S-3 is not available to be used by the Company at such time, on Form S-1 (“Form
S-1”) or another appropriate form permitting Registration of such Registrable Securities for resale by such Demanding
Holders), which written demand shall describe the amount and type of securities to be included in such Registration and the intended
method(s) of distribution thereof (such written demand a “Demand Registration”).  The Company shall,
within ten (10) calendar days of the Company’s receipt of the Demand Registration, notify, in writing, all other Holders
of Registrable Securities of such demand, and each Holder of Registrable Securities who thereafter wishes to include all or a portion
of such Holder’s Registrable Securities in the Demand Registration (each such Holder that includes all or a portion of such
Holder’s Registrable Securities in such Registration, a “Requesting Holder”) shall so notify the Company,
in writing, within five (5) calendar days after the receipt by the Holder of the notice from the Company.  Upon receipt
by the Company of any such written notification from a Requesting Holder(s) to the Company, such Requesting Holder(s) shall
be entitled to have their Registrable Securities included in a Registration pursuant to a Demand Registration and the Company shall
effect, as soon thereafter as practicable, but not more than forty-five (45) calendar days immediately after the Company’s
receipt of the Demand Registration, the Registration of all Registrable Securities requested by the Demanding Holders and Requesting
Holders pursuant to such Demand Registration.  Under no circumstances shall the Company be obligated to effect more than one
(1) Demand Registration during any six-month period, an aggregate of three (3) Registrations pursuant to a Demand Registration
under this Section 2.1.1 initiated by the Acquiror Holders, or an aggregate of three (3) Registrations pursuant to a Demand
Registration under this Section 2.1.1 initiated by the Company Holders.

 

2.1.2       Effective
Registration. Notwithstanding the provisions of Section 2.1.1 above or any other part of this Agreement, a Registration
pursuant to a Demand Registration shall not count as a Registration unless and until (i) the Registration Statement filed
with the Commission in connection with the Registration pursuant to a Demand Registration has been declared effective by the Commission
and (ii) the Company has complied with all of its obligations under this Agreement with respect thereto; provided,
that if, after such Registration Statement has been declared effective, the offering of Registrable Securities pursuant to a Demand
Registration is interfered with by any stop order or injunction of the Commission or any other governmental agency or court, the
Registration Statement with respect to such Demand Registration will be deemed not to have been declared effective, unless and
until, (i) such stop order or injunction is removed, rescinded or otherwise terminated, and (ii) a majority-in-interest
of the Demanding Holders initiating such Demand Registration thereafter affirmatively elect to continue with such Registration
and accordingly notify the Company in writing of such election, which notice shall be received by the Company not later than five
(5) calendar days after the removal of any such stop order or injunction; provided, further, that the Company
shall not be obligated to file a second Registration Statement until a Registration Statement that has been previously filed pursuant
to a Demand Registration becomes effective or is terminated.

 

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2.1.3       Underwritten
Offering. Subject to the provisions of subsection 2.1.4 and Section 2.4 hereof, if a majority-in-interest
of the Demanding Holders so advise the Company as part of their Demand Registration that the offering of Registrable Securities
pursuant thereto shall be in the form of an Underwritten Offering with an estimated market value of at least $50,000,000, then
the right of such Demanding Holder or Requesting Holder (if any) to include its Registrable Securities in such Registration shall
be conditioned upon such Holder’s participation in such Underwritten Offering and the inclusion of such Holder’s Registrable
Securities in such Underwritten Offering to the extent provided herein.  All such Holders proposing to distribute their Registrable
Securities through an Underwritten Offering under this Section 2.1.3 shall enter into an underwriting agreement in
customary form with the Underwriter(s) selected for such Underwritten Offering by the Company, which Underwriter(s) shall
be reasonably acceptable to a majority-in-interest of the Demanding Holders initiating the Demand Registration.

 

2.1.4       Reduction
of Underwritten Offering. If the managing Underwriter(s) for a Demand Registration that is to be an Underwritten Offering,
in good faith, advises the Company, the Demanding Holders and the Requesting Holders (if any) in writing that the dollar amount
or number of Registrable Securities which the Demanding Holders and the Requesting Holders (if any) desire to sell, taken together
with all other shares of Common Stock or other equity securities which the Company desires to sell and the shares of Common Stock,
if any, as to which a Registration has been requested pursuant to separate written contractual piggy-back registration rights held
by other stockholders of the Company who desire to sell, exceeds the maximum dollar amount or maximum number of equity securities
that can be sold in the Underwritten Offering without adversely affecting the proposed offering price, the timing, the distribution
method, or the probability of success of such Underwritten Offering (such maximum dollar amount or maximum number of securities,
as applicable, the “Maximum Number of Securities”), then the Company shall include in such Underwritten Offering,
as follows: (i) first, the Registrable Securities of the Demanding Holders and the Requesting Holders (if any) (pro rata based
on the respective number of Registrable Securities that each Demanding Holder and Requesting Holder (if any) has requested be included
in such Underwritten Registration and the aggregate number of Registrable Securities that the Demanding Holders and Requesting
Holders have requested be included in such Underwritten Registration (such proportion is referred to herein as “Pro Rata”,
provided, however, that such Pro Rata proportion shall not include any unvested Earnout Shares)) that can be sold without exceeding
the Maximum Number of Securities; (ii) second, to the extent that the Maximum Number of Securities has not been reached under the
foregoing clause (i), Common Stock or other equity securities that the Company desires to sell, which can be sold without exceeding
the Maximum Number of Securities; and (iii) third, to the extent that the Maximum Number of Securities has not been reached
under the foregoing clauses (i) and (ii), Common Stock or other equity securities of other persons or entities that the Company
is obligated to register in a Registration pursuant to separate written contractual arrangements with such persons and that can
be sold without exceeding the Maximum Number of Securities.

 

2.1.5       Demand
Registration Withdrawal. A majority-in-interest of the Demanding Holders initiating a Demand Registration pursuant to a Registration
under Section 2.1.1 shall have the right to withdraw from a Registration pursuant to such Demand Registration for any or
no reason whatsoever upon written notification to the Company and the Underwriter(s) (if any) of their intention to withdraw from
such Registration prior to the effectiveness of the Registration Statement filed with the Commission with respect to the Registration
of their Registrable Securities pursuant to such Demand Registration.  Notwithstanding anything to the contrary in this Agreement,
if with respect to a Demand Registration, a majority-in-interest of the Demanding Holders initiating a Demand Registration so withdraw
from a Registration pursuant to such Demand Registration, such Registration shall not count as a Demand Registration provided for
in Section 2.1.1 and the Company shall be responsible for the Registration Expenses incurred in connection with a Registration
pursuant to a Demand Registration prior to its withdrawal under this Section 2.1.5.

 

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Section
2.2Piggyback Registration. 

 

2.2.1       Piggy-Back
Rights. If, at any time on or after the Effective Time, the Company proposes to file a Registration Statement under the Securities
Act with respect to an offering of equity securities, or securities or other obligations exercisable or exchangeable for, or convertible
into, equity securities, for its own account or for the account of stockholders of the Company (or by the Company and by stockholders
of the Company, including, without limitation, pursuant to Section 2.1), other than a Registration Statement (i) filed in
connection with any employee stock option or other benefit plan, (ii) for an exchange offer or offering of securities solely to
the Company’s existing stockholders, (iii) for an offering of debt that is convertible into equity securities of the Company,
or (iv) for a dividend reinvestment plan, then the Company shall (x) give written notice of such proposed filing to all of the
Holders of Registrable Securities as soon as practicable but in no event less than ten (10) calendar days before the anticipated
filing date of such Registration Statement, which notice shall describe the amount and type of securities to be included in such
offering, the intended method(s) of distribution, and the name of the proposed managing Underwriter(s), if any, of the offering,
and (y) offer to all of the Holders of Registrable Securities in such notice the opportunity to register the sale of such number
of shares of Registrable Securities as such Holders may request in writing within five (5) calendar days following receipt of such
notice (a “Piggyback Registration”). The Company shall, in good faith, cause such Registrable Securities
to be included in such Registration and shall use its reasonable best efforts to cause the managing Underwriter(s) of a proposed
Underwritten Offering to permit the Registrable Securities requested to be included in such Piggyback Registration on the same
terms and conditions as any similar securities of the Company and to permit the sale or other disposition of such Registrable Securities
in accordance with the intended method(s) of distribution thereof. All holders of Registrable Securities proposing to distribute
their Registrable Securities through a Piggyback Registration that involves an Underwriter(s) shall enter into an underwriting
agreement in customary form with the Underwriter(s) selected for such Piggyback Registration.

 

2.2.2       Reduction
of Piggyback Registration. If the managing Underwriter(s) for a Piggyback Registration that is to be an Underwritten Offering,
in good faith, advises the Company and the Holders of Registrable Securities participating in the Piggyback Registration in writing
that the dollar amount or number of securities which the Company desires to sell, taken together with (i) the Common Stock or other
equity securities, if any, as to which Registration has been demanded pursuant to separate written contractual arrangements with
persons or entities other than the Holders of Registrable Securities hereunder, (ii) the Registrable Securities as to which Registration
has been requested under this Section 2.2, and (iii) the Common Stock or other equity securities, if any, as to which Registration
has been requested pursuant to separate written contractual piggyback registration rights of other stockholders of the Company,
exceeds the Maximum Number of Securities, then:

 

(i)       If
the Registration is undertaken for the Company’s account, the Company shall include in any such Registration (A) first,
the Common Stock or other equity securities that the Company desires to sell, which can be sold without exceeding the Maximum Number
of Securities; (B) second, to the extent that the Maximum Number of Securities has not been reached under the foregoing clause
(A), the Registrable Securities of Holders exercising their rights to register their Registrable Securities pursuant to subsection 2.2.1
hereof, Pro Rata, which can be sold without exceeding the Maximum Number of Securities; and (C) third, to the extent that
the Maximum Number of Securities has not been reached under the foregoing clauses (A) and (B), the Common Stock, if any, as to
which Registration has been requested pursuant to written contractual piggy-back registration rights of other stockholders of the
Company not otherwise covered above, which can be sold without exceeding the Maximum Number of Securities; and

 

(ii)       If
the Registration is pursuant to a request by persons or entities other than the Holders of Registrable Securities, then the Company
shall include in any such Registration (A) first, the Common Stock or other equity securities, if any, of such requesting
persons or entities, other than the Holders of Registrable Securities, which can be sold without exceeding the Maximum Number of
Securities; (B) second, to the extent that the Maximum Number of Securities has not been reached under the foregoing clause
(A), the Registrable Securities of Holders exercising their rights to register their Registrable Securities pursuant to subsection 2.2.1,
Pro Rata based on the number of Registrable Securities that each Holder has requested be included in such Underwritten Registration
and the aggregate number of Registrable Securities that the Holders have requested to be included in such Underwritten Registration,
which can be sold without exceeding the Maximum Number of Securities; (C) third, to the extent that the Maximum Number of
Securities has not been reached under the foregoing clauses (A) and (B), the Common Stock or other equity securities that
the Company desires to sell, which can be sold without exceeding the Maximum Number of Securities; and (D) fourth, to the
extent that the Maximum Number of Securities has not been reached under the foregoing clauses (A), (B) and (C), the Common
Stock or other equity securities for the account of other persons or entities that the Company is obligated to register pursuant
to separate written contractual arrangements with such persons or entities, which can be sold without exceeding the Maximum Number
of Securities.

 

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2.2.3       Piggyback
Registration Withdrawal. Any Holder of Registrable Securities shall have the right to withdraw from a Piggyback Registration
for any or no reason whatsoever upon written notification to the Company and the Underwriter(s) of his, her or its intention to
withdraw from such Piggyback Registration prior to the effectiveness of the Registration Statement filed with the Commission with
respect to such Piggyback Registration.  The Company (whether on its own good faith determination or as the result of a request
for withdrawal by persons pursuant to separate written contractual obligations) may withdraw a Registration Statement filed with
the Commission in connection with a Piggyback Registration at any time prior to the effectiveness of such Registration Statement. 
Notwithstanding anything to the contrary in this Agreement, the Company shall be responsible for the Registration Expenses incurred
in connection with the Piggyback Registration prior to its withdrawal under this subsection 2.2.3. 

 

2.2.4       Unlimited
Piggyback Registration Rights. For purposes of clarity, any Registration effected pursuant to Section 2.2 hereof
shall not be counted as a Registration pursuant to a Demand Registration effected under Section 2.1 hereof.

 

2.2.5       Right
to Terminate Registration. The Company shall have the right to terminate or withdraw any registration initiated by it under
this Section 2.2 prior to the effectiveness of such registration whether or not any Holder of Registrable Securities has
elected to include securities in such registration.

 

Section
2.3Registration on Form S-3. The Holders of Registrable Securities may at any time, and from time to time,
request in writing that the Company, pursuant to Rule 415 under the Securities Act (or any successor rule promulgated thereafter
by the Commission), register the resale of any or all of their Registrable Securities on Form S-3; provided, that the Company
shall not be obligated to effect such request through an Underwritten Offering. Within five (5) calendar days of the Company’s
receipt of a written request from a Holder or Holders of Registrable Securities for a Registration on Form S-3, the Company shall
promptly give written notice of the proposed Registration on Form S-3 to all other Holders of Registrable Securities, and each
Holder of Registrable Securities who thereafter wishes to include all or a portion of such Holder’s Registrable Securities
in such Registration on Form S-3 shall so notify the Company, in writing, within ten (10) calendar days after the receipt by the
Holder of the notice from the Company. As soon as practicable thereafter, but not more than twenty (20) calendar days after the
Company’s initial receipt of such written request for a Registration on Form S-3, the Company shall register all or such
portion of such Holder’s Registrable Securities as are specified in such written request, together with all or such portion
of Registrable Securities of any other Holder or Holders joining in such request as are specified in the written notification given
by such Holder or Holders; provided, that the Company shall not be obligated to effect any such Registration pursuant to
Section 2.3 hereof if (i) a Form S-3 is not available for such offering; or (ii) the Holders of Registrable Securities,
together with the Holders of any other equity securities of the Company entitled to inclusion in such Registration, propose to
sell the Registrable Securities and such other equity securities (if any) at any aggregate price to the public of less than $5,000,000.
Registrations effected pursuant to this Section 2.3 shall not be counted as Demand Registrations effected pursuant to Section
2.1.

 

Section
2.4Restrictions on Registration Rights. If (A) during the period starting with the date sixty (60) calendar
days prior to the Company’s good faith estimate of the date of the filing of, and ending on a date one hundred and twenty
(120) calendar days after the effective date of, a Company initiated Registration and provided that the Company has delivered written
notice to the Holders prior to receipt of a Demand Registration pursuant to Section 2.1.1 and it continues to actively employ,
in good faith, all reasonable efforts to cause the applicable Registration Statement to become effective; (B) the Holders
have requested an Underwritten Registration and the Company and the Holders are unable to obtain the commitment of underwriters
to firmly underwrite the offer; or (C) in the good faith judgment of the Board such Registration would be materially detrimental
to the Company and the Board concludes as a result that it is essential to defer the filing of such Registration Statement at such
time, then in each case the Company shall furnish to such Holders a certificate signed by the Chairman of the Board stating that
in the good faith judgment of the Board it would be materially detrimental to the Company for such Registration Statement to be
filed in the near future and that it is therefore essential to defer the filing of such Registration Statement.  In such event,
the Company shall have the right to defer such filing for a period of not more than thirty (30) calendar days; provided,
that the Company may not defer its obligation in this manner more than once in any 12-month period.

 

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Article
III

REGISTRATION PROCEDURES

 

Section
3.1General Procedures. If at any time on or after the Effective Time the Company is required to effect the
registration of any Registrable Securities pursuant to Section 2, the Company shall use its reasonable best efforts to effect
the Registration to permit the sale of such Registrable Securities in accordance with the intended plan of distribution thereof,
and pursuant thereto the Company shall, as expeditiously as practicable and in connection with any such request:

 

3.1.1       prepare
and file with the Commission as soon as practicable a Registration Statement with respect to such Registrable Securities and use
its reasonable best efforts to cause such Registration Statement to become effective and remain effective until all Registrable
Securities covered by such Registration Statement have been sold;

 

3.1.2       prepare
and file with the Commission such amendments and post-effective amendments to the Registration Statement, and such supplements
to the Prospectus, as may be reasonably requested by the Holders or any Underwriter of Registrable Securities or as may be required
by the rules, regulations or instructions applicable to the registration form used by the Company or by the Securities Act or rules and
regulations thereunder to keep the Registration Statement effective until all Registrable Securities covered by such Registration
Statement are sold in accordance with the intended plan of distribution set forth in such Registration Statement or supplement
to the Prospectus;

 

3.1.3       prior
to filing a Registration Statement or Prospectus, or any amendment or supplement thereto, furnish without charge to the Underwriters,
if any, and the Holders of Registrable Securities included in such Registration, and such Holders’ legal counsel, copies
of such Registration Statement as proposed to be filed, each amendment and supplement to such Registration Statement (in each case
including all exhibits thereto and documents incorporated by reference therein), the Prospectus included in such Registration Statement
(including each preliminary Prospectus), and such other documents as the Underwriters and the Holders of Registrable Securities
included in such Registration or the legal counsel for any such Holders may request in order to facilitate the disposition of the
Registrable Securities owned by such Holders;

 

3.1.4       prior
to any public offering of Registrable Securities, use its reasonable best efforts to (i) register or qualify the Registrable
Securities covered by the Registration Statement under such securities or “blue sky” laws of such jurisdictions in
the United States as the Holders of Registrable Securities included in such Registration Statement (in light of their intended
plan of distribution) may request and (ii) take such action necessary to cause such Registrable Securities covered by the
Registration Statement to be registered with or approved by such other governmental authorities as may be necessary by virtue of
the business and operations of the Company and do any and all other acts and things that may be necessary or advisable to enable
the Holders of Registrable Securities included in such Registration Statement to consummate the disposition of such Registrable
Securities in such jurisdictions; provided, that the Company shall not be required to qualify generally to do business in
any jurisdiction where it would not otherwise be required to qualify or take any action to which it would be subject to general
service of process or taxation in any such jurisdiction where it is not then otherwise so subject;

 

3.1.5       cause
all such Registrable Securities to be listed on each securities exchange or automated quotation system on which similar securities
issued by the Company are then listed;

 

3.1.6       provide
a transfer agent or warrant agent, as applicable, and registrar for all such Registrable Securities no later than the effective
date of such Registration Statement;

 

3.1.7       advise
each seller of such 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 reasonable best efforts to prevent the issuance of any stop order or to
obtain its withdrawal if such stop order should be issued;

 

    8

     

    

 

3.1.8       advise
each Holder of Registrable Securities covered by such Registration Statement, 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;

 

3.1.9       at
least five (5) calendar days prior to the filing of any Registration Statement or Prospectus or any amendment or supplement
to such Registration Statement or Prospectus, furnish a copy thereof to each seller of such Registrable Securities or its counsel,
including, without limitation, providing copies promptly upon receipt of any comment letters received with respect to any such
Registration Statement or Prospectus;

 

3.1.10       notify
the Holders at any time when a Prospectus relating to such Registration Statement is required to be delivered under the Securities
Act, of the happening of any event as a result of which the Prospectus included in such Registration Statement, as then in effect,
includes a Misstatement, and then to correct such Misstatement as set forth in Section 3.4 hereof;

 

3.1.11       permit
a representative of the Holders (such representative to be selected by a majority-in-interest of the participating Holders), the
Underwriters, if any, and any attorney or accountant retained by such Holders or Underwriter to participate, at each such person’s
own expense, in the preparation of the Registration Statement, and cause the Company’s officers, directors and employees
to supply all information reasonably requested by any such representative, Underwriter, attorney or accountant in connection with
the Registration; provided, that such representatives or Underwriters enter into a confidentiality agreement, in form and
substance reasonably satisfactory to the Company, prior to the release or disclosure of any such information; and provided,
further, the Company may not include the name of any Holder or any information regarding any Holder in any Registration
Statement or Prospectus, any amendment or supplement to such Registration Statement or Prospectus, any document that is to be incorporated
by reference into such Registration Statement or Prospectus, or any response to any comment letter, without the prior written consent
of such Holder and providing each such Holder a reasonable amount of time to review and comment on such applicable document, which
comments the Company shall include unless contrary to applicable law (for the avoidance of doubt, once approved by such Holder,
the Company may publish the name and such information approved by the Holder in substantially the same form in subsequent documents
included or incorporated by reference into a Registration Statement or Prospectus as required by the SEC without such Holder’s
prior written consent);

 

3.1.12       obtain
a “comfort” letter from the Company’s independent registered public accountants in the event of an Underwritten
Registration, in customary form and covering such matters of the type customarily covered by “comfort” letters as the
managing Underwriter may reasonably request, and may be found reasonably satisfactory to a majority-in-interest of the participating
Holders and such managing Underwriter;

 

3.1.13       on
the date the Registrable Securities are delivered for sale pursuant to such Registration, obtain an opinion and negative assurance
letter, dated such date, of counsel representing the Company for the purposes of such Registration, addressed to the Holders, the
placement agent or sales agent, if any, and the Underwriters, if any, covering such legal matters with respect to the Registration
in respect of which such opinion is being given as the Holders, placement agent, sales agent, or Underwriter may reasonably request
and as are customarily included in such opinions and negative assurance letters, and may be found reasonably satisfactory to a
majority in interest of the participating Holders;

 

3.1.14       in
the event of any Underwritten Offering, enter into and perform its obligations under an underwriting agreement, in usual and customary
form, with the managing Underwriter of such offering;

 

3.1.15       make
available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve
(12) months beginning with the first day of the Company’s first full calendar quarter after the effective date of the Registration
Statement which satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any
successor rule promulgated thereafter by the Commission);

 

    9

     

    

 

3.1.16       if
the Registration involves the Registration of Registrable Securities involving gross proceeds in excess of $25,000,000, use its
reasonable efforts to make available senior executives of the Company to participate in customary “road show” presentations
that may be reasonably requested by the Underwriter in any Underwritten Offering; and

 

3.1.17       otherwise,
in good faith, cooperate reasonably with, and take such customary actions as may reasonably be requested by the Holders, in connection
with such Registration.

 

Section
3.2Registration Expenses. Except as otherwise provided herein, the Registration Expenses of all Registrations
shall be borne by the Company.  It is acknowledged by the Holders that the Holders shall bear all incremental selling expenses
relating to the sale of Registrable Securities, such as Underwriters’ commissions and discounts, brokerage fees, Underwriter
marketing costs and, other than as set forth in the definition of “Registration Expenses,” all reasonable fees
and expenses of any legal counsel representing the Holders.

 

Section
3.3Requirements for Participation in Underwritten Offerings.  No person or entity may participate in
any Underwritten Offering for equity securities of the Company pursuant to a Registration initiated by the Company hereunder unless
such person or entity (i) agrees to sell such person’s or entity’s securities on the basis provided in any underwriting
arrangements approved by the Company and (ii) completes and executes all customary questionnaires, powers of attorney, indemnities,
lock-up agreements, underwriting agreements and other customary documents as may be reasonably required under the terms of such
underwriting arrangements.

 

Section
3.4Suspension of Sales; Adverse Disclosure.  Upon receipt of written notice from the Company that (i)
a Registration Statement or Prospectus contains a Misstatement or (ii) a Registration Statement is no longer effective (including
by reason of the fact that a post-effective amendment to such Registration Statement has been filed and has not yet been declared
effective), each of the Holders shall forthwith discontinue disposition of Registrable Securities until such Holder has received
copies of a supplemented or amended Registration Statement and Prospectus correcting the Misstatement or lack of effectiveness
(it being understood that the Company hereby covenants to prepare and file such supplemented or amended Prospectus as soon as practicable
after the time of such notice), or until he, she or it is advised in writing by the Company that the use of the Prospectus may
be resumed.  If the filing, initial effectiveness or continued use of a Registration Statement in respect of any Registration
at any time would require the Company to make an Adverse Disclosure or would require the inclusion in such Registration Statement
of financial statements that are unavailable to the Company for reasons beyond the Company’s control, the Company may, upon
giving prompt written notice of such action to the Holders, delay the filing or initial effectiveness of, or suspend use of, such
Registration Statement for the shortest period of time, but in no event more than thirty (30) calendar days, determined in good
faith by the Company to be necessary for such purpose.  In the event the Company exercises its rights under the preceding
sentence, the Holders agree to suspend, immediately upon their receipt of the notice referred to above, their use of the Prospectus
relating to any Registration in connection with any sale or offer to sell Registrable Securities.  The Company shall immediately
notify the Holders of the expiration of any period during which it exercised its rights under this Section 3.4, and
upon the expiration of such period the Holders shall be entitled to resume the use of any such Prospectus in connection with any
sale or offer to sell Registrable Securities, and upon the expiration of such period the Holders shall be entitled to resume the
use of any such Prospectus in connection with any sale or offer to sell Registrable Securities.

 

Section
3.5Reporting Obligations.  As long as any Holder shall own Registrable Securities, the Company, at all
times while it shall be a reporting company under the Exchange Act, covenants to file timely (or obtain extensions in respect thereof
and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to
Sections 13(a) or 15(d) of the Exchange Act and to promptly furnish the Holders with true and complete
copies of all such filings.  The Company further covenants that it shall take such further action as any Holder may reasonably
request, all to the extent required from time to time to enable such Holder to sell Registrable Securities held by such Holder
without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 promulgated under
the Securities Act (or any successor rule promulgated thereafter by the Commission), including providing any legal opinions. 
Upon the request of any Holder, the Company shall deliver to such Holder a written certification of a duly authorized officer as
to whether it has complied with such requirements.

 

    10

     

    

 

Article
IV

INDEMNIFICATION AND CONTRIBUTION

 

Section
4.1Indemnification by the Company. The Company agrees to indemnify, to the extent permitted by law, and hold
harmless each Holder of Registrable Securities, its officers and directors and each person who controls such Holder (within the
meaning of the Securities Act) from and against any losses, claims, damages, liabilities and expenses (including reasonable attorneys’
fees) caused by any untrue or alleged untrue statement of material fact contained in any Registration Statement, Prospectus or
preliminary Prospectus, or any amendment or supplement to any of them, or any omission or alleged omission of a material fact required
to be stated therein or necessary to make the statements therein not misleading, except insofar as the same is contained in any
information furnished in writing to the Company by the Holder expressly for use therein.  The Company also shall indemnify
any Underwriter of the Registrable Securities, their officers and directors and each person who controls such Underwriter (within
the meaning of the Securities Act) on substantially the same basis as that of the indemnification of the Holder provided in this
Section 4.1.

 

Section
4.2Indemnification by Holders of Registrable Securities. In connection with any Registration Statement in
which a Holder of Registrable Securities is participating, such Holder shall furnish to the Company in writing such information
and affidavits 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 the Company, its directors and officers and agents and each person who controls
the Company (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses (including
without limitation reasonable attorneys’ fees) resulting from any untrue statement of material fact contained in the Registration
Statement, Prospectus or preliminary Prospectus or any amendment thereof or supplement thereto or any omission of a material fact
required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue
statement or omission is contained in any information or affidavit so furnished in writing by such Holder expressly for use therein;
provided, that the obligation to indemnify shall be several, not joint and several, among such Holders of Registrable Securities,
and the liability of each such Holder of Registrable Securities shall be in proportion to and limited to the net proceeds received
by such Holder from the sale of Registrable Securities pursuant to such Registration Statement.  Each Holder shall indemnify
any Underwriter of Registrable Securities sold by such Holder, their officers, directors and each person who controls such Underwriters
(within the meaning of the Securities Act) to the same extent as provided in the foregoing with respect to indemnification of the
Company.

 

Section
4.3 Conduct of Indemnification Proceedings. Any person entitled to indemnification herein shall (i) give
prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that the
failure to give prompt notice shall not impair any person’s right to indemnification hereunder to the extent such failure
has not materially prejudiced the indemnifying party) and (ii) unless in such indemnified party’s reasonable judgment
a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying
party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party.  If such defense
is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without
its consent (but such consent shall not be unreasonably withheld, conditioned or delayed).  An indemnifying party who is not
entitled to, or elects not to, assume the defense of a claim 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.  No indemnifying party shall, without the consent of the indemnified party, consent to the entry
of any judgment or enter into any settlement which cannot be settled in all respects by the payment of money (and such money is
so paid by the indemnifying party pursuant to the terms of such settlement) or which settlement does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such
claim or litigation.

 

Section
4.4Survival. The indemnification provided for under this Agreement shall remain in full force and effect
regardless of any investigation made by or on behalf of the indemnified party or any officer, director or controlling person of
such indemnified party and shall survive the transfer of securities.  The Company and each Holder of Registrable Securities
participating in an offering also agrees to make such provisions as are reasonably requested by any indemnified party for contribution
to such party in the event the Company’s or such Holder’s indemnification is unavailable for any reason.

 

    11

     

    

 

Section
4.5Contribution. If the indemnification provided under Section 4.1 hereof from the indemnifying
party is unavailable or insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities
and expenses referred to herein, then the indemnifying party, in lieu of indemnifying the indemnified party, shall contribute to
the amount paid or payable by the indemnified party as a result of such losses, claims, damages, liabilities and expenses in such
proportion as is appropriate to reflect the relative fault of the indemnifying party and the indemnified party, as well as any
other relevant equitable considerations.  The relative fault of the indemnifying party and indemnified party shall be determined
by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact, was made by, or relates to information supplied by, such indemnifying
party or indemnified party, and the indemnifying party’s and indemnified party’s relative intent, knowledge, access
to information and opportunity to correct or prevent such action; provided, that the liability of any Holder under this
Section 4.5 shall be limited to the amount of the net proceeds received by such Holder in such offering giving rise to such
liability.  The amount paid or payable by a party as a result of the losses or other liabilities referred to above shall be
deemed to include, subject to the limitations set forth in Sections 4.1, 4.2 and 4.3 above, any legal or other
fees, charges or expenses reasonably incurred by such party in connection with any investigation or proceeding.  The parties
hereto agree that it would not be just and equitable if contribution pursuant to this Section 4.5 were determined by
pro rata allocation or by any other method of allocation, which does not take account of the equitable considerations referred
to in this Section 4.5.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution pursuant to this Section 4.5 from any person who was not guilty
of such fraudulent misrepresentation.

 

Article
V

GENERAL PROVISIONS

 

Section
5.1Entire Agreement. This Agreement (including Schedule A hereto) constitutes the entire understanding
and agreement between the parties as to the matters covered herein and supersedes and replaces any prior understanding, agreement
or statement of intent, in each case, written or oral, of any and every nature with respect thereto.

 

Section
5.2Notices. Any notice or other communication required or permitted to be delivered to any party under this
Agreement shall be in writing and shall be deemed properly delivered, given and received (a) upon receipt when delivered by
hand, (b) upon transmission, if sent by facsimile or electronic transmission (in each case with receipt verified by electronic
confirmation), or (c) one (1) Business Day after being sent by courier or express delivery service, specifying next
day delivery, with proof of receipt. The addresses, email addresses and facsimile numbers for such notices and communications are
those set forth on the signature pages hereof, or such other address, email address or facsimile numbers as may be designated
in writing hereafter, in the same manner, by any such person.

 

Section
5.3Assignment; No Third-Party Beneficiaries. This Agreement and the rights, duties and obligations of the
Company hereunder may not be assigned or delegated by the Company in whole or in part. No Holder may assign or delegate such Holder’s
rights, duties and obligations under this Agreement, in whole or in part, except in connection with a transfer of Registrable Securities
by such Holder to a Permitted Transferee. This Agreement and the provisions hereof shall be binding upon and shall inure to the
benefit of each of the parties and the permitted assigns of the applicable Holder, which shall include Permitted Transferees. This
Agreement is not intended to confer any rights or benefits on any persons that are not party hereto other than as expressly set
forth in Article 4 and this Section 5.3. No assignment by any party hereto of such party’s rights, duties and
obligations hereunder shall be binding upon or obligate the Company unless and until the Company shall have received (i) written
notice of such assignment and (ii) the written agreement of the assignee, in a form reasonably satisfactory to the Company,
to be bound by the terms and provisions of this Agreement (which may be accomplished by an addendum or certificate of joinder to
this Agreement).

 

    12

     

    

 

Section
5.4Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered
one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties and
delivered to the other parties, it being understood that all parties need not sign the same counterpart and such counterparts may
be delivered by the parties hereto via facsimile or electronic transmission.

 

Section
5.5Amendment; Waiver. This Agreement may be amended or modified, and any provision hereof may be waived,
in whole or in part, at any time pursuant to an agreement in writing executed by the Company and Holders holding a majority of
the Registrable Securities at such time; provided, however, that notwithstanding the foregoing, any amendment hereto
or waiver hereof that adversely affects one Holder, solely in his, her or its capacity as a holder of the shares of capital stock
of the Company, in a manner that is materially different from the other Holders (in such capacity) shall require the consent of
the Holder so affected. Any failure by any party at any time to enforce any of the provisions of this Agreement shall not be construed
a waiver of such provision or any other provisions hereof.

 

Section
5.6Severability. In the event that any provision of this Agreement or the application thereof becomes or
is declared by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement will continue
in full force and effect and the application of such provision to other persons or circumstances will be interpreted so as reasonably
to effect the intent of the parties hereto.

 

Section
5.7Governing Law; Venue. This Agreement shall be governed by, interpreted under, and construed in accordance
with the internal laws of the State of New York applicable to agreements made and to be performed within the State of New York,
without giving effect to any choice-of-law provisions thereof that would compel the application of the substantive laws of any
other jurisdiction.

 

Section
5.8Specific Performance. Each party acknowledges and agrees that the other parties hereto would be irreparably
harmed and would not have any adequate remedy at law in the event that any of the provisions of this Agreement were not performed
by such first party in accordance with their specific terms or were otherwise breached by such first party. Accordingly, each party
agrees that the other parties hereto shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and
to enforce specifically the terms and provisions of this Agreement, this being in addition to any other remedy to which such parties
are entitled at law or in equity.

 

[Signature Page Follows.]

 

    13

     

    

 

IN WITNESS WHEREOF,
each of the parties has executed this Agreement as of the date first written above.

 

	 	ACQUIROR:
	 	 
	 	FALCON CAPITAL ACQUISITION CORP.
	 	 
	 	By:	 
	 	Name: 	                                            
	 	Title:	 
	 	 
	 	Address for Notice:
	 	 
	 	Falcon Capital Acquisition Corp.
	 	660 Madison Avenue, 12th Floor
	 	New York, NY 10065
	 	Attn: Alan G. Mnuchin
	 	 
	 	SHARECARE:
	 	 
	 	SHARECARE, INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	Address for Notice:
	 	Sharecare, Inc.
	 	255 East Paces Ferry Road
	 	Atlanta, GA 30305
	 	Attn: General Counsel
	 	Email: henry.jay@sharecare.com

 

 

[Signature Page to Registration Rights
Agreement]

 

     

     

    

 

IN WITNESS WHEREOF,
each of the undersigned has executed this Agreement as of the date first written above.

 

	 	HOLDER:
	 	 
	 	[NAME]
	 	 
	 	By:	 
	 	Name: 	                          
	 	Title:	 
	 	 
	 	Address for Notice:
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

 

	 	Telephone No.: 	 
	 	 	 
	 	Facsimile No.: 	 
	 	 	 
	 	Email Address:  	 

 

[Signature Page to Registration Rights
Agreement]

 

     

     

    

 

Schedule A

 

Holders

 

	Name of Holder	 	Number of SharesExhibit
10.1

 

SECURITIES
PURCHASE AGREEMENT

 

This
Securities Purchase Agreement (this “Agreement”) is dated as of February 8, 2021, between Emmaus Life
Sciences, Inc., a Delaware corporation (the “Company”), and each purchaser identified on the signature
pages hereto (each, including its successors and assigns, a “Purchaser” and collectively, the
“Purchasers”).

 

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933,
as amended (the “Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell
to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company
as more fully described in this Agreement.

 

NOW,
THEREFORE, the Company and each Purchaser agree as follows:

 

ARTICLE
I.

DEFINITIONS

 

1.1 Definitions.
In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein have
the meanings given to such terms in the Notes (as defined herein) and (b) the following capitalized terms have the meanings set
forth in this Section 1.1:

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
on which banking institutions in the State of California are authorized or required by law or other governmental action to close.

 

“Closing”
means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing
Date” means the Business Day on which all of the Transaction Documents have been executed and delivered by the parties
thereto and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii) the Company’s
obligations to deliver the Notes, in each case, have been satisfied.

 

“Commission”
means the United States Securities and Exchange Commission.

 

     

     

    

 

“Common
Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive,
Common Stock.

 

“Conversion
Shares” means any shares of Common Stock issuable upon conversion of the Notes.

 

“Disclosure
Schedules” shall have the meaning ascribed to such term in Section 3.1. Unless otherwise specified, all references herein
to a “Schedule” mean a Schedule of the Disclosure Schedules.

 

“Effective
Date” means the earliest of the date that (a) all of the Conversion Shares have been sold pursuant to Rule 144 or may
be sold pursuant to Rule 144 without the requirement for the Company to be in compliance with the current public information required
under Rule 144 and without volume or manner-of-sale restrictions or (b) all of the Conversion Shares may be sold pursuant to an
exemption from registration under Section 4(a)(1) of the Securities Act without volume or manner-of-sale restrictions and Company
counsel has delivered to such holders a standing written opinion, in form and substance reasonably acceptable to such holders,
that resales of the Conversion Shares may be made by such holders pursuant to such exemption.

 

“Environmental
Laws” shall have the meaning ascribed to such terms in Section 3.1(m).

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(s).

 

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

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“FDA”
shall have the meaning ascribed to such term in Section 3.1(ff).

 

“FDCA”
shall have the meaning ascribed to such term in Section 3.1(ff).

 

“GAAP”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(z).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(p).

 

“Legend
Removal Date” shall have the meaning ascribed to such term in Section 4.1(c).

 

    2

     

    

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right, or other restriction.

 

“Material
Adverse Effect” shall have the meaning assigned to such term in Section 3.1(b).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(n).

 

“Notes”
means Convertible Promissory Notes of the Company, in the form of Exhibit A attached hereto, sold and issued to the Purchasers
hereunder.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Pharmaceutical
Product” shall have the meaning ascribed to such term in Section 3.1(ll).

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.10.

 

“Required
Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities”
means the Notes and the Conversion Shares.

 

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

 

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall
not be deemed to include locating and/or borrowing shares of Common Stock).

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid in United States dollars and in immediately available
funds for the Note purchased hereunder as specified below such Purchaser’s name on the signature page of this Agreement.

 

    3

     

    

 

“Subsidiary”
means any subsidiary of the Company as set forth on Schedule 3.1(a) and shall, where applicable, also include any direct
or indirect subsidiary of the Company formed or acquired after the date hereof.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
the New York Stock Exchange, the OTCQB, the OTCQX, the OTC Pink (or any successors to any of the foregoing).

 

“Transaction
Documents” means this Agreement, the Notes, all exhibits and schedules thereto and hereto and any other documents or
agreements executed in connection with the transactions contemplated hereunder.

 

“Transfer
Agent” means American Stock Transfer & Trust Company, the current transfer agent for the Common Stock, and any successor
transfer agent.

 

ARTICLE
II.

PURCHASE
AND SALE

 

2.1 Closing.
Concurrent with or as soon as practicable (and in any event within thirty (30) days) following the execution and delivery of
this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly, agree to
purchase, an aggregate of up to $17 million in principal amount of the Notes as provided in Section 2.2. The Closing
shall occur remotely or at such location as the parties shall mutually agree.

 

2.2 Deliveries.

 

(a) At
or before the Closing, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i) this
Agreement duly executed by such Purchaser; and

 

(ii) such
Purchaser’s Subscription Amount by wire transfer to the account specified in writing by the Company.

 

(b) At
or before the Closing, the Company shall deliver or cause to be delivered to each Purchaser, the following:

 

(i) this
Agreement duly executed by the Company; and

 

(ii)
a Note in principal amount equal to such Purchaser’s Subscription Amount and registered in such Purchaser’s name.

 

    4

     

    

 

ARTICLE
III.

REPRESENTATIONS
AND WARRANTIES

 

3.1 Representations
and Warranties of the Company. Except as set forth in the disclosure schedules (the “Disclosure Schedules”),
which shall be deemed a part hereof and shall qualify any representation or warranty otherwise made herein to the extent of the
qualifications contained in the corresponding section of the Disclosure Schedules, the Company hereby represents and warrants
to each Purchaser as follows:

 

(a) Subsidiaries.
All of the direct and indirect subsidiaries of the Company are set forth on Schedule 3.1(a). The Company owns, directly
or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the
issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free
of preemptive and similar rights to subscribe for or purchase securities.

 

(b) Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power
and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company
nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation,
bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, would not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse
effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction
Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in
any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(c) Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder
and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the
consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the
part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders
in connection herewith or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction
Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

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(d) No
Conflicts. Except as set forth on Schedule 3.1(d), the execution, delivery and performance by the Company of this Agreement
and the other Transaction Documents to which it is a party, the issuance and sale of the Securities and the consummation by it
of the transactions contemplated hereby and thereby do not and will not: (i) conflict with or violate any provision of the Company’s
or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, (ii)
conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result
in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights
of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the
Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected,
or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject
(including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary
is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not have a Material Adverse Effect.

 

(e) Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or , except
as set forth on Schedule 3.1(e), other Person in connection with the execution, delivery and performance by the Company
of the Transaction Documents, other than: (i) the filings required pursuant to Section 4.6 of this Agreement, and (ii) the filing
of Form D with the Commission and such filings as are required to be made under applicable state securities laws (collectively,
the “Required Approvals”).

 

(f) Issuance
of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other
than restrictions on transfer provided for in the Transaction Documents. The Conversion Shares, when issued in accordance with
the terms of the Notes, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company
other than restrictions on transfer provided for in the Transaction Documents. The Conversion Shares have been duly reserved by
the Company for issuance upon conversion of the Notes.

 

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(g) Capitalization.
The capitalization of the Company as of the date hereof is as set forth on Schedule 3.1(g). Except as set forth on Schedule
3.1(g), (i) no Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate
in the transactions contemplated by the Transaction Documents, (ii) as a result of the purchase and sale of the Securities, there
are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to
subscribe for or acquire any shares of Common Stock or the capital stock of any Subsidiary, or contracts, commitments, understandings
or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common
Stock Equivalents or capital stock of any Subsidiary, (iii) the issuance and sale of the Securities will not obligate the Company
or any Subsidiary to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result
in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities,
and (iv) there are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar
provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is
or may become bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights
or “phantom stock” plans or agreements or any similar plan or agreement. All the outstanding shares of capital stock
of the Company are duly authorized, validly issued, fully paid and nonassessable, and none of such outstanding shares was issued
in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Except as set forth on Schedule
3.1(g), no further approval or authorization of any stockholder, the Board of Directors or other Person and there are no stockholders
agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company
is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

(h) SEC
Reports; Financial Statements. Except as set forth on Schedule 3.1(h), the Company has filed all reports, schedules,
forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including
pursuant to Section 13(a) or 15(d) thereof, for the one year preceding the date hereof (the foregoing materials, including the
exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”)
or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such
extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities
Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading. The financial statements of the Company included in
the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission
with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United
States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to year-end audit adjustments.

 

    7

     

    

 

(i) Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest unaudited financial statements included
in the SEC Reports, except as set forth on Schedule 3.1(i), (i) there has been no event, occurrence or development that
has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities
(contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent
with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP
or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, and (iv) the Company
has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or
made any agreements to purchase or redeem any shares of its capital stock. The Company does not have pending before the Commission
any request for confidential treatment of information.

 

(j) Litigation.
There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) would,
if there were an unfavorable decision, have a Material Adverse Effect. To the knowledge of the Company, there is not pending or
contemplated any investigation by the Commission involving the Company or any current director or officer of the Company.

 

(k) Labor
Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of
the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither
the Company nor any of its Subsidiaries is a party to a collective bargaining agreement. The Company and its Subsidiaries are
in compliance with all U.S. federal, state and local laws and regulations relating to employment and employment practices, terms
and conditions of employment and wages and hours, except where the failure to be in compliance would not, individually or in the
aggregate, have a Material Adverse Effect.

 

(l) Compliance.
Except as set forth on Schedule 3.1(l), neither the Company nor any Subsidiary (i) is in default under or in violation
of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by
the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under
or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party
or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation
of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation
of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal,
state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and
employment and labor matters, except in each case as would not have a Material Adverse Effect.

 

    8

     

    

 

(m) Environmental
Laws. The Company and its Subsidiaries (i) are in compliance with all federal, state, local and foreign laws relating to pollution
or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface
strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants,
or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials,
as well as all authorizations, codes, decrees, demands, or demand letters, injunctions, judgments, licenses, notices or notice
letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder (“Environmental Laws”),
(ii) have received all permits licenses or other approvals required of them under applicable Environmental Laws to conduct their
respective businesses, and (iii) are in compliance with all terms and conditions of any such permit, license or approval where
in each clause (i), (ii) and (iii), the failure to so comply would, individually or in the aggregate, have a Material Adverse
Effect.

 

(n) Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits would not have a Material Adverse Effect (“Material Permits”),
and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of
any Material Permit.

 

(o) Title
to Assets. Except as set forth on Schedule 3.1(o), the Company and the Subsidiaries have good title in all personal
property owned by them that is material to the business of the Company and the Subsidiaries, taken as a whole, in each case free
and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not materially interfere
with the use made and proposed to be made of such property by the Company and the Subsidiaries and (ii) Liens for the payment
of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP and, the payment
of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and
the Subsidiaries are held by them under valid leases with which the Company and the Subsidiaries are in compliance.

 

    9

     

    

 

(p) Intellectual
Property. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights necessary or required for use in connection with their respective businesses as described in the SEC Reports
and which the failure to have would have a Material Adverse Effect (collectively, the “Intellectual Property Rights”).
None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual
Property Rights has expired, terminated or been abandoned. Neither the Company nor any Subsidiary has received, since the date
of the latest audited financial statements included in the SEC Reports, a written notice of a claim or otherwise has any knowledge
that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as would not have a Material Adverse
Effect. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement
by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security
measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do
so would not, individually or in the aggregate, have a Material Adverse Effect.

 

(q) Insurance.
Except as set forth on Schedule 3.1(q), the Company and the Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company
and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage. Neither the Company
nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such
coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business.

 

(r) Transactions
with Affiliates and Employees. Except as set forth on Schedule 3.1(r), none of the officers or directors of the Company
or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a
party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from providing for the borrowing of money from or lending of money to, or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case
in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option
plan of the Company.

 

(s) Sarbanes-Oxley;
Internal Accounting Controls. The Company and the Subsidiaries are in compliance with any and all applicable requirements
of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated
by the Commission thereunder that are effective as of the date hereof. Except as disclosed in the SEC Reports, the Company maintain
a system of internal accounting controls designed to provide reasonable assurance that: (i) transactions are executed in accordance
with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation
of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only
in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company
has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company
and the Subsidiaries and designed such disclosure controls and procedures to provide reasonable assurance that information required
to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and
reported, within the time periods specified in the Commission’s rules and forms. The Company’s certifying officers
have evaluated the effectiveness of the disclosure controls and procedures of the Company and the Subsidiaries as of the end of
the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”).
The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers
about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Except
as set forth on Schedule 3.1(s), since the Evaluation Date, there have been no changes in the internal control over financial
reporting (as such term is defined in the Exchange Act) that have materially affected, or is reasonably likely to materially affect,
the internal control over financial reporting of the Company and its Subsidiaries.

 

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(t) Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiaries to any
broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the
transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect to any fees or with
respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due from
the Company in connection with the transactions contemplated by the Transaction Documents.

 

(u) Private
Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated
hereby.

 

(v) Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended. The Company shall conduct its business in a manner so that it will not become an “investment company” subject
to registration under the Investment Company Act of 1940, as amended.

 

(w) Registration
Rights. Except as set forth on Schedule 3.1(w), no Person has any right to cause the Company or any Subsidiary to effect
the registration under the Securities Act of any securities of the Company or any Subsidiaries.

 

(x) Registration
Requirements. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken
no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock
under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration.

 

(y) Disclosure.
The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to
the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

(z) Schedule
3.1(bb) sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary,
or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness”
means (i) any liabilities for borrowed money or amounts owed in excess of $500,000 (other than trade accounts payable incurred
in the ordinary course of business), (ii) all guaranties, endorsements and other contingent obligations in respect of indebtedness
of others, whether or not the same are or should be reflected in the Company’s consolidated balance sheet (or the notes
thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business and (iii) the present value of any lease payments in excess of $500,000 due under leases required
to be capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

(aa) Tax
Status. Except for matters that would not, individually or in the aggregate, have a Material Adverse Effect, the Company and
its Subsidiaries each (i) has made or filed all United States federal, state and local income and all foreign income and franchise
tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental
assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations and
(iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to
the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to
be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no basis for
any such claim.

 

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(bb) No
General Solicitation. Neither the Company nor any Person acting on behalf of the Company has offered or sold any of the Securities
by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchasers
and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

(cc) Foreign
Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent
or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful
contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any
unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns
from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person
acting on its behalf of which the Company is aware) which is in violation of law or (iv) violated in any material respect any
provision of FCPA.

 

(dd) Accountants.
The Company’s accounting firm is set forth on Schedule 3.1(dd). To the knowledge and belief of the Company, such
accounting firm (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall express its opinion
with respect to the financial statements to be included in the Company’s Annual Report for the fiscal year ending December
31, 2020.

 

(ee) Seniority.
Except as set forth on Schedule 3.1(ee), no Indebtedness or other claim against the Company is senior to the Notes in right
of payment, whether with respect to interest or upon liquidation or dissolution, or otherwise, other than indebtedness secured
by purchase money security interests (which is senior only as to underlying assets covered thereby) and capital lease obligations
(which is senior only as to the property covered thereby).

 

(ff) FDA.
As to each product subject to the jurisdiction of the U.S. Food and Drug Administration (“FDA”) under the Federal
Food, Drug and Cosmetic Act, as amended, and the regulations thereunder (“FDCA”) that is manufactured, packaged,
labeled, tested, distributed, sold, and/or marketed by the Company or any of its Subsidiaries (each such product, a “Pharmaceutical
Product”), such Pharmaceutical Product is being manufactured, packaged, labeled, tested, distributed, sold or marketed
by the Company in compliance with all applicable requirements under FDCA and similar laws, rules and regulations relating to registration,
investigational use, premarket clearance, licensure, or application approval, good manufacturing practices, good laboratory practices,
good clinical practices, product listing, quotas, labeling, advertising, record keeping and filing of reports, except where the
failure to be in compliance would not have a Material Adverse Effect. There is no pending, completed or, to the Company's knowledge,
threatened, action (including any lawsuit, arbitration, or legal or administrative or regulatory proceeding, charge, complaint,
or investigation) against the Company or any of its Subsidiaries, and none of the Company or any of its Subsidiaries has received
any notice, warning letter or other communication from the FDA or any other governmental entity, which (i) contests the premarket
clearance, licensure, registration, or approval of, the uses of, the distribution of, the manufacturing or packaging of, the testing
of, the sale of, or the labeling and promotion of any Pharmaceutical Product, (ii) withdraws its approval of, requests the recall,
suspension, or seizure of, or withdraws or orders the withdrawal of advertising or sales promotional materials relating to, any
Pharmaceutical Product, (iii) imposes a clinical hold on any clinical investigation by the Company or any of its Subsidiaries,
(iv) enjoins production at any facility of the Company or any of its Subsidiaries, (v) enters or proposes to enter into a consent
decree of permanent injunction with the Company or any of its Subsidiaries, or (vi) otherwise alleges any violation of any laws,
rules or regulations by the Company or any of its Subsidiaries, and which, either individually or in the aggregate, would have
a Material Adverse Effect. The properties, business and operations of the Company have been and are being conducted in all material
respects in accordance with all applicable laws, rules and regulations of the FDA.  The Company has not been informed by
the FDA that the FDA will prohibit the marketing, sale, license or use in the United States of any product proposed to be developed,
produced or marketed by the Company nor has the FDA expressed any concern as to approving or clearing for marketing any product
being developed or proposed to be developed by the Company.

 

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(gg) No
Disqualification Events. With respect to the Securities to be offered and sold hereunder in reliance on Rule 506 under the
Securities Act, none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer
of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company’s outstanding
voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under
the Securities Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”
and, together, “Issuer Covered Persons”) is subject to any of the "Bad Actor" disqualifications described
in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification
Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person
is subject to a Disqualification Event.

 

3.2 Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants to
the Company as follows:

 

(a) Organization;
Authority. Such Purchaser is an entity duly incorporated or formed, validly existing and in good standing under the laws of
the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar
power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to
carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by
such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate,
partnership, limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction Document
to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms
hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with
its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

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(b) Own
Account. Such Purchaser understands that the Securities have not been registered under the Securities Act or any applicable
state securities law and, as such, are “restricted securities,” and is acquiring the Securities as principal for its
own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities
Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the
Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other
persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state
securities law (this representation and warranty not limiting such Purchaser’s right to sell the Securities in compliance
with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course
of its business.

 

(c) Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date
on which it converts any Notes it will be an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3),
(a)(5), (a)(6), (a)(7) or (a)(8) under the Securities Act.

 

(d) Experience
of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e) General
Solicitation. Such Purchaser is not, to such Purchaser’s knowledge, purchasing the Securities as a result of any advertisement,
article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast
over television or radio or presented at any seminar or, to the knowledge of such Purchaser, any other general solicitation or
general advertisement.

 

(f) Access
to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including
all exhibits and schedules thereto) and the SEC Reports and has been afforded (i) the opportunity to ask such questions as it
has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the
offering of the Securities and the merits and risks of investing in the Securities, (ii) access to information about the Company
and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to
evaluate its investment and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire
without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.

 

(g) Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser has not,
nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed any
purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that
such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting
forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Other
than to other Persons party to this Agreement or to such Purchaser’s representatives, including, without limitation, its
officers, directors, partners, legal and other advisors, employees, agents and Affiliates, such Purchaser has maintained the confidentiality
of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).

 

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ARTICLE
IV.

OTHER
AGREEMENTS OF THE PARTIES

 

4.1 Transfer
Restrictions.

 

(a) The
Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a Purchaser or in
connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company
an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion
shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred
Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the
terms of this Agreement and shall have the rights and obligations of a Purchaser under this Agreement.

 

(b) The
Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities in the following
form:

 

NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND
THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN
SECURED BY SUCH SECURITIES.

 

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The
Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a
registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited
investor” as defined in Rule 501(a) under the Securities Act and, if required under the terms of such arrangement, such
Purchaser may transfer pledged or secured Securities to the pledgees or secured parties. Such a pledge or transfer would not be
subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required
in connection therewith. Further, no notice shall be required of such pledge. At the appropriate Purchaser’s expense, the
Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request
in connection with a pledge or transfer of the Securities.

 

(c) Certificates
evidencing the Conversion Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof): (i) while
a registration statement covering the resale of such security is effective under the Securities Act (it being understood that
the Company is under no obligation and has no intention to file such a registration statement), (ii) following any sale of such
Conversion Shares pursuant to Rule 144 issued upon a cashless conversion of the Notes, (iii) if such Conversion Shares are eligible
for sale under Rule 144 without the requirement for the Company to be in compliance with the current public information required
under Rule 144 as to such Conversion Shares and without volume or manner-of-sale restrictions assuming such Conversion Shares
were acquired upon a cashless conversion of the Notes or (iv) if such legend is not required under applicable requirements of
the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The Company
shall cause its counsel to issue a legal opinion to the Transfer Agent or the Purchaser promptly after the Effective Date if required
by the Transfer Agent to effect the removal of the legend hereunder, or if requested by a Purchaser, respectively. If all or any
portion of a Note is converted at a time when there is an effective registration statement to cover the resale of the Conversion
Shares (it being understood that the Company is under no obligation and has no intention to file such a registration statement),
or if such Conversion Shares may be sold under Rule 144 without the requirement for the Company to be in compliance with the current
public information required under Rule as to such Conversion Shares and without volume or manner-of-sale restrictions 144 assuming
such Conversion Shares were acquired upon a cashless conversion of the Notes, or if such legend is not otherwise required under
applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the
Commission) then such Conversion Shares shall be issued free of all legends. The Company agrees that following the Effective Date
or at such time as such legend is no longer required under this Section 4.1(c), it will, no later than three (3) Business Days
following the delivery by a Purchaser to the Company or the Transfer Agent of a certificate representing Warrant Shares, as applicable,
issued with a restrictive legend (such date, the “Legend Removal Date”), deliver or cause to be delivered to
such Purchaser a certificate representing such shares that is free from all restrictive and other legends. The Company may not
make any notation on its records or give instructions to the Transfer Agent that expand the restrictions on transfer set forth
in this Section 4.1(c).

 

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(d) Each
Purchaser, severally and not jointly with the other Purchasers, agrees with the Company that such Purchaser will sell any Securities
pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements,
or an exemption therefrom, and that if Securities are sold pursuant to a registration statement, they will be sold in compliance
with the plan of distribution set forth therein, and acknowledges that the removal of the restrictive legend from certificates
representing Securities as set forth in this Section 4.1 is predicated upon the Company’s reliance upon this understanding.

 

4,2 Public
Information. Until the time that all of the Securities may be sold by the Purchasers without the requirement for the Company
to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144, the Company covenants
to maintain the registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain
extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after
the date hereof pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange
Act.

 

4.3 Exercise
Procedures. The form of Notice of Conversion included in the Notes sets forth the totality of the procedures required of the
Purchasers in order to convert the Warrants. Without limiting the preceding sentence, no ink-original Notice of Conversion shall
be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be
required in order to convert the Notes. No additional legal opinion, other information or instructions shall be required of the
Purchasers to convert their Notes. The Company shall honor conversions of the Notes and shall deliver the Conversion Shares in
accordance with the terms, conditions and time periods set forth in the Notes.

 

4.4 Securities
Laws Disclosure; Publicity. The Company shall issue a press release disclosing the material terms of the transactions contemplated
hereby and file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within
the time required by the Exchange Act. From and after the issuance of such press release, the Company represents to the Purchasers
that it shall have publicly disclosed all material, non-public information delivered to any of the Purchasers by the Company or
any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions
contemplated by the Transaction Documents. In addition, effective upon the issuance of such press release, the Company acknowledges
and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company,
any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates on the one hand, and any
of the Purchasers or any of their Affiliates on the other hand, shall terminate. The Company and the Purchasers shall consult
with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither the Company
nor any Purchaser shall issue any such press release nor otherwise make any such public statement without the prior consent of
the Company, with respect to any press release of any Purchaser, or without the prior consent of the Purchasers, with respect
to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is
required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement
or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include
the name of any Purchaser in any filing with the Commission or any regulatory agency, without the prior written consent of such
Purchaser, except (a) as required by federal securities law in connection with the filing of final Transaction Documents with
the Commission and (b) to the extent such disclosure is required by law, in which case the Company shall provide the Purchasers
with prior notice of such disclosure permitted under this clause (b).

 

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4.5 Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, which shall be disclosed pursuant to Section 4.4, the Company covenants and agrees that neither it, nor any other Person
acting on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes, or the Company
reasonably believes constitutes, material non-public information, unless prior thereto such Purchaser shall have consented to
the receipt of such information and agreed with the Company to keep such information confidential. The Company understands and
confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.
To the extent that the Company delivers any material, non-public information to a Purchaser without such Purchaser’s consent,
the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of
its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any
of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis
of, such material, non-public information, provided that the Purchaser shall remain subject to applicable law. To the extent that
any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding
the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting
transactions in securities of the Company.

 

4.6 Use
of Proceeds. Except as set forth on Schedule 4.6 attached hereto, the Company shall use the net proceeds from the sale
of the Securities hereunder for working capital purposes and general corporate purposes and shall not use such proceeds for the
repurchase or redemption of any Common Stock or Common Stock Equivalents.

 

4.7 Indemnification
of Purchasers. Subject to the provisions of this Section 4.7, the Company will indemnify and hold each Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of
a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all
judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such
Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants
or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against
the Purchaser Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is
not an Affiliate of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless
such action is solely based upon a material breach of such Purchaser Party’s representations, warranties or covenants under
the Transaction Documents or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations
by such Purchaser Party of state or federal securities laws or any conduct by such Purchaser Party which is finally judicially
determined to constitute fraud, gross negligence or willful misconduct). If any action shall be brought against any Purchaser
Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company
in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable
to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate
in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the
extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed
after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable
opinion of counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser
Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel.
The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected
without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent,
but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of
the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction
Documents. The indemnification required by this Section 4.7 shall be made by periodic payments of the amount thereof during the
course of the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained herein
shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any liabilities
the Company may be subject to pursuant to law.

 

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4.8 Reservation
and Listing of Securities.

 

(a) The
Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Notes in such amount
as may then be required to fulfill its obligations in full under the Notes.

 

(b) If,
on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock are less than the Conversion
Shares on such date, the Board of Directors shall use commercially reasonable efforts to amend the Company’s certificate
incorporation to increase the number of authorized but unissued shares of Common Stock to at least the number of Conversion Shares
at such time, as soon as possible and in any event not later than the 75th day after such date.

 

(c) In
the event that the Company’s Common Stock is listed or quoted on a Trading Market, the Company shall, if applicable: (i)
in the time and manner required by the principal Trading Market, prepare and file with such Trading Market an additional shares
listing application covering a number of shares of Common Stock at least equal to the Required Minimum on the date of such application,
(ii) take all steps necessary to cause such shares of Common Stock to be approved for listing or quotation on such Trading Market
as soon as possible thereafter, (iii) provide to the Purchasers evidence of such listing or quotation and (iv) maintain the listing
or quotation of such Common Stock on any date at least equal to the Conversion Shares on such date on such Trading Market or another
Trading Market. In the event that the Company’s Common Stock is listed or quoted on a Trading Market, the Company agrees
to use its commercially reasonable efforts to maintain the eligibility of the Common Stock for electronic transfer through the
Depository Trust Company or another established clearing corporation, including, without limitation, by timely payment of fees
to the Depository Trust Company or such other established clearing corporation in connection with such electronic transfer.

 

4.9 Equal
Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid
to any Person to amend or consent to a waiver or modification of any provision of the Transaction Documents unless the same consideration
is also offered to all of the parties to such Transaction Documents. Further, the Company shall not make any payment of principal
or interest on the Debentures in amounts which are disproportionate to the respective principal amounts outstanding on the Debentures
at any applicable time. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the
Company and negotiated separately by each Purchaser and is intended for the Company to treat the Purchasers as a class and shall
not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting
of Securities or otherwise.

 

4.10 Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither
it, nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including
Short Sales, of any of the Company’s securities during the period commencing with the execution of this Agreement and ending
at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release
as described in Section 4.4.  Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such
time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release
as described in Section 4.4, such Purchaser will maintain the confidentiality of the existence and terms of this transaction and
the information included in the Disclosure Schedules. Notwithstanding the foregoing, and notwithstanding anything contained in
this Agreement to the contrary, the Company expressly acknowledges and agrees that (i) no Purchaser makes any representation,
warranty or covenant hereby that it will not engage in effecting transactions in any securities of the Company after the time
that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described
in Section 4.4, (ii) no Purchaser shall be restricted or prohibited from effecting any transactions in any securities of the Company
in accordance with applicable securities laws from and after the time that the transactions contemplated by this Agreement are
first publicly announced pursuant to the initial press release as described in Section 4.4 and (iii) no Purchaser shall have any
duty of confidentiality or duty not to trade in the securities of the Company to the Company or its Subsidiaries after the issuance
of the initial press release as described in Section 4.4. 

 

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4.11 Form
D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation
D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall
reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers
at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide
evidence of such actions promptly upon request of any Purchaser.

 

ARTICLE
V.

MISCELLANEOUS

 

5.1 Termination. 
This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing
has not been consummated on or before the fifth (5th) Business Day following the date hereof, provided, however,
that no such termination will affect the right of any party to sue for any breach by any other party.

 

5.2 Fees
and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and
expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident
to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent
fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company
and any Conversion Notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery
of any Securities to the Purchasers.

 

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5.3 Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of
the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral
or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.4 Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto
at or prior to 5:30 p.m. (Los Angeles time) on a Business Day, (b) the next Business Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number or email attachment as set forth on the signature pages
attached hereto on a day that is not a Business Day or later than 5:30 p.m. (New York City time) on any Business Day, (c) the
third (3rd) Business Day following the date of mailing, if sent by internationally recognized overnight courier service or (d)
upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications
shall be as set forth on the signature pages attached hereto. To the extent that any notice provided pursuant to any Transaction
Document constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company
shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.

 

5.5 Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and Purchasers which purchased more than fifty percent (50%) in principal amount of
the Notes based on the initial Subscription Amounts hereunder or, in the case of a waiver, by the party against whom enforcement
of any such waived provision is sought, provided that if any amendment, modification or waiver disproportionately and adversely
impacts a Purchaser (or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers)
shall also be required. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall
be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition
or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise
of any such right. Any proposed amendment or waiver that disproportionately, materially and adversely affects the rights and obligations
of any Purchaser relative to the comparable rights and obligations of the other Purchasers shall require the prior written consent
of such adversely affected Purchaser. Any amendment effected in accordance with this Section 5.5 shall be binding upon each Purchaser
and holders of Securities and the Company.

 

5.6 Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

 

5.7 Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to
whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions of the Transaction Documents that apply to the Purchasers.

 

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5.8 No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as
otherwise set forth in Section 4.7 and this Section 5.8.

 

5.9 Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of California, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be
commenced exclusively in the state and federal courts Los Angeles, California. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts in Los Angeles, California for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of
the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Action or Proceeding, any claim that
it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding is improper or is an inconvenient
venue for such Proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any other manner permitted by law. If any party shall commence an Action or Proceeding to enforce
any provisions of the Transaction Documents, then, in addition to the obligations of the Company under Section 4.7, the prevailing
party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable attorneys’ fees and
other costs and expenses incurred with the investigation, preparation and prosecution of such Action or Proceeding.

 

5.10 Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

5.11 Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of
the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

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5.12 Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain
in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

5.13 Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser
may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand
or election in whole or in part without prejudice to its future actions and rights; provided, however, that, in
the case of a rescission of a conversion of a Note, the applicable Purchaser shall be required to return any shares of Common
Stock subject to any such rescinded conversion concurrently with the restoration of such Purchaser’s right to acquire such
shares pursuant to such Purchaser’s Note.

 

5.14 Replacement
of Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement
Securities.

 

5.15 Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the
Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

 

5.16 Payment
Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document
or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or
exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from,
disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person
under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

    23

     

    

 

5.17 Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any Proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in its review and negotiation of the Transaction Documents. The Company has elected to provide all Purchasers with
the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do
so by any of the Purchasers. It is expressly understood and agreed that each provision contained in this Agreement and in each
other Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively
and not between and among the Purchasers.

 

5.18 Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required
or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding
Business Day.

 

5.19 Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.

 

5.20 WAIVER
OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES
EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY
AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. 

 

(Signature
Pages Follow)

 

    24

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	EMMAUS LIFE SCIENCES, INC.	 	Address for Notice:
	 	 	 	21250 Hawthorne Boulevard
	By: 	/s/
    Yutaka Niihara	 	Suite 800
	 	Name:	Yutaka Niihara, M.D., M.P.H.	 	Torrance, California 90503 
	 	Title:	Chairman and Chief Executive Officer	 	 
	 	 	 	Email: 
	 	 	 	Fax: 310-214-0075
	 	 	 	 
	With a copy to (which shall not constitute notice):	 	 

 

Email:

Fax:
310-214-0075

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE
PAGE FOR PURCHASER FOLLOWS]

 

    25

     

    

 

PURCHASER
SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT

 

IN
WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	Name of Purchaser:	 

 

	Signature of Authorized
    Signatory of Purchaser:	 

 

	Name of Authorized Signatory:	 

 

	Title of Authorized Signatory:	 

 

	Email Address of Authorized
    Signatory:	 

 

	Facsimile Number of Authorized
    Signatory:	 

 

	Address for Notice to Purchaser:	 

 

Address
for Delivery of Securities to Purchaser (if not same as address for notice):

 

	Subscription
    Amount: $	 

 

	EIN
    Number: 	    

 

[SIGNATURE
PAGES CONTINUE]

 

 

    26

     

    

 

EXHIBIT A TO SECURITIES
PURCHASE AGREEMENT

 

NEITHER THIS CONVERTIBLE PROMISSORY NOTE
NOR THE SECURITIES ISSUABLE HEREUNDER HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

THIS NOTE IS REGISTERED WITH THE COMPANY AS
TO BOTH PRINCIPAL AND INTEREST AND, ACCORDINGLY, IS IN “REGISTERED FORM” WITHIN THE MEANING OF SECTIONS 871(H) AND
881(C) OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED.

 

Original Issue Date: February __, 2021
$___________

 

CONVERTIBLE
PROMISSORY Note 

 

THIS CONVERTIBLE PROMISSORY
NOTE is one of a duly authorized and validly issued Convertible Promissory Notes of Emmaus Life Sciences, Inc., a Delaware corporation
(the “Company”), having its principal place of business at 21250 Hawthorne Boulevard, Suite 800, Torrance, California
90503 (this Convertible Promissory Note, as amended, restated, supplemented or otherwise modified from time to time, together with
any replacement hereof this “Note” and collectively with the such other Convertible Promissory Notes, the “Notes”),
sold and issued pursuant to the Purchase Agreement (as defined below).

 

FOR VALUE RECEIVED, the Company promises
to pay in cash to ____________, or its registered assigns (the “Holder”), or shall have paid pursuant to the
terms herein, the principal sum of $_______ on February __, 2024 (the “Maturity Date”), or such earlier date
as this Note is required or permitted to be repaid as provided herein, and to pay interest to the Holder on the aggregate then
outstanding principal amount hereof in accordance with the provisions hereof.

 

    1

     

    

 

This Note is subject
to the following additional provisions:

 

Section 1. 
Definitions. For the purposes hereof, in addition to the terms defined elsewhere in this Note, (a) capitalized terms not
otherwise defined herein shall have the meanings set forth in the Purchase Agreement and (b) the following terms shall have the
following meanings:

 

“Affiliate”
shall have the meaning set forth in Rule 12b-2 under the Exchange Act.

 

“Applicable
Interest Rate” means an annual rate equal to two percent (2.0%); provided, however, following the occurrence and during
the continuance of an Event of Default, the “Applicable Interest Rate” shall automatically, without notice or
any other action required by Holder, mean an annual rate equal to ten percent (10.0%,) or highest rate permitted by applicable
law, whichever is lower.

 

“Average
VWAP” means, for any date, the average of (a) the VWAP over the one (1) month period prior to such date, (b) the VWAP
over the one (1) week period prior to such date and (c) the VWAP as of the most recent Trading Day.

 

“Bankruptcy
Event” means any of the following events: (a) the Company or any Subsidiary thereof commences a case or other proceeding
under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation
or similar law of any jurisdiction relating to the Company, (b) there is commenced against the Company or any Subsidiary thereof
any such case or proceeding that is not dismissed within sixty (60) days after commencement, (c) the Company or any Subsidiary
thereof suffers any appointment of any custodian or the like for it or any substantial part of its property that is not discharged
or stayed within sixty (60) calendar days after such appointment, (d) the Company or any Subsidiary thereof makes a general assignment
for the benefit of creditors, or (e) the Company or any Subsidiary thereof, by any act or failure to act, expressly indicates its
consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting
any of the foregoing.

 

“Bloomberg”
means Bloomberg, L.P.

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of California are authorized or required by law or other governmental action
to close; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain
closed due to “stay at home,” “shelter-in-place,” “non-essential employee” or any other similar
orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as
the electronic funds transfer systems (including for wire transfers) of commercial banks in the State of California generally are
open for use by customers on such day.

 

“California
Courts” shall have the meaning set forth in Section 8(d).

 

    2

     

    

 

“Catch-up
Interest Amount” means an amount equal interest on the outstanding principal amount of the Note from time to time calculated
from the Original Issue Date at the Applicable Interest Rate and compounded 2% annually, less all interest paid by the Company
to the Holder under this Note through the date of payment of the Catch-up Interest Amount.

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof
by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of
effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of
in excess of fifty percent (50%) of the voting power of the Company (other than by means of conversion or exercise of this Note),
(b) the Company merges into or consolidates with any other Person, or any Person merges into or consolidates with the Company and,
after giving effect to such transaction, the stockholders of the Company immediately prior to such transaction own less than fifty
percent (50%) of the aggregate voting power of the Company or the successor entity of such transaction, or (c) the Company, directly
or indirectly, Disposes of all or substantially all of its assets to another Person.

 

“Commission”
means the U.S. Securities Exchange Commission.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

 

“Conversion
Date” shall have the meaning set forth in Section 4(a)(i).

 

“Conversion
Price” shall have the meaning set forth in Section 4(a)(ii).

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of this Note pursuant to Section
4(a).

 

“Delivery
Date” shall have the meaning set forth in Section 4(a)(iii).

 

“Dispose”
and “Disposition” means the sale, transfer, license, lease or other disposition (including any sale and leaseback
transaction or by way of a merger) for value of assets or property of a Person (other than intra-Company transactions), in each
case, whether or not the consideration therefor consists of cash, securities or other assets owned by the acquiring Person, excluding
any sales of inventory in the ordinary course of business.

 

“Distribution”
shall have the meaning set forth in Section 5(d).

 

“DTC”
means the Depository Trust Company.

 

“EJ
Holdings” means EJ Holdings, Inc., a Japanese corporation, and its successors.

 

    3

     

    

 

“Equity
Interests” means, with respect to any Person, all of the shares of capital stock of such Person, all of the warrants,
options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit
interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership
or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares
(or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or
trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests
are outstanding on any date of determination.

 

“Event
of Default” shall have the meaning set forth in Section 7(a).

 

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

 

“Fundamental
Transaction” means (a) the Company, directly or indirectly, in one or more related transactions effects any merger or
consolidation of the Company with or into another Person (other than a merger with a parent or Subsidiary to effect a name change
or a change in domicile), (b) the Company, directly or indirectly, effects any sale, lease, exclusive license, assignment, transfer,
conveyance or other Disposition of all or substantially all of its assets in one or a series of related transactions, (c) any,
direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property
and has been accepted by the holders of fifty percent (50%) or more of the outstanding Common Stock, (d) the Company, directly
or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common
Stock (but, for the avoidance of doubt, excluding any transaction, event or occurrence covered by Section 5(a)) or any compulsory
share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property,
(e) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or
other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement)
with another Person whereby such other Person acquires more than fifty percent (50%) of the outstanding shares of Common Stock
(not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or Affiliated
with the other Persons making or party to, such stock or share purchase agreement or other business combination).

 

“Governmental
Authority” means any national, supranational, federal, state, county, provincial, local, municipal or other government
or political subdivision thereof (including any Regulatory Authority), whether domestic or foreign, and any agency, authority,
commission, ministry, instrumentality, regulatory body, court, tribunal, arbitrator, central bank or other Person exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to any such government.

 

    4

     

    

 

“Indebtedness”
shall include (a) all obligations for borrowed money or the deferred purchase price of property or services (excluding trade credit
entered into in the ordinary course of business), (b) all obligations evidenced by bonds, debentures, notes, or other similar instruments
and all reimbursement or other obligations in respect of letters of credit, surety bonds, bankers acceptances, current swap agreements,
interest rate hedging agreements, interest rate swaps or other financial products, (c) all capital or equipment lease obligations,
(d) all obligations or liabilities secured by a Lien on any asset of the Company or any Subsidiary, irrespective of whether such
obligation or liability is assumed by the Company or such Subsidiary, (e) any obligation arising with respect to any transaction
that is the functional equivalent of borrowing but which does not or would not constitute a liability on the balance sheet of the
Person incurring the same (such as, without limitation, a merchant cash advance); and (f) any obligation guaranteeing or intended
to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse) any of the foregoing
obligations of any other person or entity.

 

“Investments”
means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase
or other acquisition (including by merger) of Equity Interests of another Person, (b) a loan, advance or capital contribution to,
guarantee or assumption of debt of, or purchase or other acquisition of any other debt or interest in, another Person, or (c) the
purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute a business
unit or all or a substantial part of the business of, such Person.

 

“Lien”
means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance, levy, lien,
or charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, against any property, any conditional
sale or other title retention agreement, and any lease in the nature of a security interest.

 

“Material
Adverse Effect” means a material adverse effect upon: (a) the business, operations, properties, assets or financial condition
of the Company and its Subsidiaries taken as a whole; (b) the prospect of payment when due of any part of the Company’s obligations
under this Note; or (c) the ability of Holder to enforce any of its rights or remedies with respect to such obligations.

 

“Notice
of Conversion” shall have the meaning set forth in Section 4(a)(i).

 

“Note
Register” shall have the meaning set forth in Section 2(c).

 

“Original
Issue Date” means February __, 2021, regardless of any transfers of this Note or amendments to this Note and regardless
of the number of instruments which may be issued to evidence this Note.

 

    5

     

    

 

“Permitted
Dispositions” means (a) sales of inventory in the ordinary course of business, (b) transfers and assignment of account
receivable pursuant to the Purchase and Sale Agreement between Emmaus Medical, Inc. and Prestige Capital Finance, LLC, (c) licenses
and similar arrangements for the use of intellectual property (i) entered into in the ordinary course of business on an arm’s-length
basis and on commercially reasonable terms, (ii) that could not result in a legal transfer of title of the licensed intellectual
property and (iii) are exclusive only with respect to specific fields of use or discrete geographic territories (other than United
States or Europe, as a whole), (d) dispositions of worn-out, obsolete or surplus equipment at fair market value in the ordinary
course of business, (e) sales of marketable securities, provided that proceeds thereof are used in accordance with the Company’s
agreements, if any, with respect thereto or for other legitimate business uses, and (e) other transfers of assets having a fair
market value of not more than one million dollars ($1,000,000) in the aggregate in any fiscal year.

 

“Permitted
Indebtedness” means (a) the indebtedness evidenced by this Note, (b) Indebtedness outstanding on the Original Issue Date
and that is set forth on Schedule 1 attached hereto, including any renewals thereof or replacements therefor (c) lease obligations
and purchase money indebtedness of up to one million dollars ($1,000,000), in the aggregate, incurred in connection with the acquisition
of capital assets and lease obligations with respect to newly acquired or leased assets, and (d) other unsecured Indebtedness not
otherwise permitted pursuant to this defined term, in the aggregate amount not to exceed five hundred thousand dollars ($500,000).

 

“Permitted
Investment” means (a) (i) U.S. Treasury bills, notes, and bonds maturing within one (1) year from the date of acquisition
thereof and (ii) Commission-registered money market funds that have a minimum of one billion dollars ($1,000,000,000) in assets,
(b) Investments in place on the Original Issue Date and that are set forth on Schedule 2 attached hereto, (c) Investments
consisting of notes receivable of, or prepaid royalties and other credit extensions and advances, to customers, suppliers, contract
manufacturers, or licensors who are, in each case, not Affiliates, in the ordinary course of business, (d) Investments of cash
or other assets in Subsidiaries in the ordinary course of business, (e) provided that no Event of Default has occurred and
is continuing, Investments of cash in EJ Holdings, and (f) additional Investments that do not exceed one million dollars ($1,000,000)
in the aggregate.

 

“Permitted
Liens” means the individual and collective reference to the following: (a) Liens in place on the Original Issue Date
and that are set forth on Schedule 3 attached hereto, including any renewals thereof or replacements therefor (b) Liens
for taxes, assessments and other governmental charges or levies not yet due or Liens for taxes, assessments and other governmental
charges or levies being contested in good faith and by appropriate proceedings for which adequate reserves (in the good faith judgment
of the management of the Company) have been established in accordance with GAAP, (c) Liens imposed by law which were incurred in
the ordinary course of the Company’s business, such as carriers’, warehousemen’s and mechanics’ Liens,
statutory landlords’ Liens, and other similar Liens arising in the ordinary course of the Company’s business, and which
(x) do not individually or in the aggregate materially detract from the value of the property or assets subject to such Lien or
materially impair the use thereof in the operation of the business of the Company and its Subsidiaries or (y) are being contested
in good faith by appropriate proceedings, which proceedings have the effect of preventing for the foreseeable future the forfeiture
or sale of the property or asset subject to such Lien, and (d) Liens on equipment securing Indebtedness described under clause
(c) of the definition of Permitted Indebtedness.

 

    6

     

    

 

“Prepayment
Premium” means (a), with respect to any prepayment of this Note made pursuant to Section 2(d), a prepayment premium
equal to fifty percent (50%) of the principal balance of this Note being prepaid.

 

“Prepayment
Amount” shall have the meaning set forth in Section 2(d) or Section 2(e), as applicable.

 

“Prepayment
Date” shall have the meaning set forth in Section 2(d) or Section 2(e), as applicable.

 

“Prepayment
Limitation” means a cumulative, aggregate amount equal to 50% of the original principal amount of this Note.

 

“Prepayment
Notice” shall have the meaning set forth in Section 2(d) or Section 2(e), as applicable.

 

“Prepayment
Notice Date” shall have the meaning set forth in Section 2(d) or Section 2(e), as applicable.

 

“Prepayment
Period” shall have the meaning set forth in Section 2(d) or Section 2(e), as applicable.

 

“Principal
Market” means the OTCQX, OTCQB or OTC Pink tier of the OTC Markets Group, Inc. or such Trading Market on which the Common
Stock is then listed.

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of February 8, 2021, between the Company and the Purchasers,
including the original Holder, as amended, modified or supplemented from time to time in accordance with its terms.

 

“Purchase
Rights” shall have the meaning set forth in Section 5(c).

 

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

 

“Standard
Settlement Period” means the standard settlement period, expressed in Trading Days, on the Principal Market.

 

“Successor
Entity” shall have the meaning set forth in Section 5(e).

 

“Trading
Day” means a day on which the Principal Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the New York Stock Exchange; the NYSE American; the Nasdaq Global Market; and the Nasdaq Capital Market (or
any successor to any of the foregoing).

 

    7

     

    

 

“Voting
Agreement” means the Transfer Restriction and Voting Agreement, dated as of February 8, 2021, among the Company and the
Purchasers, including the original Holder, as amended, modified or supplemented from time to time in accordance with its terms.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg (based on a Trading Day
from 9:30 a.m. (local time in New York City, New York) to 4:00 p.m. (local time in New York City, New York)), (b) if the Common
Stock is not then listed or quoted for trading on a Trading Market and if prices for the Common Stock are then reported in the
OTCQX, OTCQB or OTC Pink tier of the OTC Markets Group, Inc., the daily volume weighted average price of the Common Stock so reported,
or (c) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected
in good faith by the Holder and reasonably acceptable to the Company, the reasonable fees and reasonable out-of-pocket expenses
of which shall be paid by the Company.

 

Section 2. 
Principal and Interest Payments; Prepayment.

 

a) 
Repayment. Subject to paragraphs (b) and (d) of this Section 2, any and all unpaid principal, accrued and unpaid interest
and other amounts payable in respect of this Note shall be due and payable in full on the Maturity Date in cash (by wire transfer
of immediately available funds to the account of the Holder). This Note shall be senior or higher priority in right of payment
upon Maturity to all other Indebtedness of the Company. This Note may be prepaid in accordance with Sections 2(d) and 2(e).

 

b) 
Payment of Interest in Cash. The Company shall pay interest to the Holder on the aggregate principal amount of this Note
outstanding from time to time at the Applicable Interest Rate, payable semi-annually in arrears as of the last Business Day of
each August and January and on the Maturity Date, in cash (by wire transfer of immediately available funds to the account of the
Holder). On the Maturity Date the Company also shall pay to the Holder the Catch-up Interest Amount.

 

c) 
Interest Calculations. Interest shall be calculated on the basis of a 360-day year and the actual number of days elapsed,
and shall accrue daily commencing on the Original Issue Date until payment in full of the outstanding principal (including, for
the avoidance of doubt, any original issue discount), together with all accrued and unpaid interest, liquidated damages and other
amounts which may become due hereunder, has been made. Interest hereunder will be paid to the Person in whose name this Note is
registered on the records of the Company regarding registration and transfers of this Note (the “Note Register”)
or such Person’s designee identified to the Company in writing.

 

    8

     

    

 

d) 
Prepayment at the Option of the Holder. In the event the Common Stock has not been approved for listing on a Trading Market
by February 28, 2022, subject to the provisions of this Section 2(d), at any time thereafter, the Holder in its discretion
may notify the Company (each such notice, a “Prepayment Notice” and the date such notice is deemed delivered
hereunder, the “Prepayment Notice Date”) of its irrevocable election that the Company prepay all or any portion
of the then outstanding principal amount of this Note, together with any accrued and unpaid interest hereunder on such prepaid
principal amount and the Catch-up Interest Amount (collectively, the “Prepayment Amount”), on the 20th
Trading Day following the Prepayment Notice Date (such date, the “Prepayment Date”, such 20-Trading Day period,
the “Prepayment Period”). The Prepayment Amount shall be due and payable in full in cash by wire transfer of
immediately available funds to the account of the Holder on the Prepayment Date. The Company covenants and agrees that it will
honor all Notices of Conversion tendered by the Holder at any time, and from the time, after the delivery of the Prepayment Notice
through the date all amounts owing thereon are due and paid in full. The Company will, within four Business Days following delivery
of the Prepayment Notice to the Holder, publicly announce its intention to prepay this Note by means of a press release and filing
of a Current Report on Form 8-K with the Commission. If any portion of Prepayment Amount shall not be paid by the Company by the
Prepayment Date, interest shall accrue thereon at an interest rate equal to the lesser of ten percent (10%) per annum or the maximum
rate permitted by applicable law until such amount is paid in full. Notwithstanding anything herein contained to the contrary,
if any portion of the Prepayment Amount remains unpaid after the Prepayment then the Holder may elect, by written notice to the
Company given at any time thereafter, to invalidate such prepayment, ab initio. For the avoidance of doubt, the Holder may elect
to convert the outstanding principal amount of the Note at any time and from time to time pursuant to Section 4 prior to
payment in cash of the Prepayment Amount under this Section 2(d) by the delivery of a Notice of Conversion to the Company.
The Prepayment shall be senior or higher priority in right of payment to all other Indebtedness of the Company.

 

e) 
Prepayment at the Option of the Company. Subject to the provisions of this Section 2(e), at any time after February
__, 2022 and before February __, 2023, the Company may deliver a notice to the Holder (a “Prepayment Notice”
and the date such notice is deemed delivered hereunder, the “Prepayment Notice Date”) of its irrevocable election
to prepay a portion of the then outstanding principal amount of this Note not to exceed the Prepayment Limitation for cash in an
amount equal to the outstanding principal balance of this Note being prepaid, all accrued and unpaid interest thereon, the Prepayment
Premium and the Catch-up Interest Amount calculated for this purpose only on the principal amount of this Note being prepaid (the
“Prepayment Amount”) on the 20th Trading Day following the Prepayment Notice Date (such date, the
“Prepayment Date”, such 20 Trading Day period, the “Prepayment Period”). For clarity, the
Company shall have no right to make any prepayment hereunder if the outstanding principal amount of this Note to be prepaid, when
added to the cumulative, aggregate principal amount of this Note previously prepaid hereunder, would exceed the Prepayment Limitation.
The Prepayment Amount shall be due and payable in full in cash (by wire transfer of immediately available funds to the account
of the Holder) on the Prepayment Date. The Company covenants and agrees that it will honor all Notices of Conversion tendered by
the Holder at any time, and from the time, after the delivery of the Prepayment Notice through the date all amounts owing thereon
are due and paid in full. The Company will, concurrently with the delivery of the Prepayment Notice to the Holder, publicly announce
its intention to prepay this Note by means of a press release and filing of a Current Report on Form 8-K with the Commission. If
any portion of Prepayment Amount shall not be paid by the Company by the Prepayment Date, interest shall accrue thereon at an interest
rate equal to the lesser of ten percent (10%) per annum or the maximum rate permitted by applicable law until such amount is paid
in full. Notwithstanding anything herein contained to the contrary, if any portion of the Prepayment Amount remains unpaid after
the Prepayment then the Holder may elect, by written notice to the Company given at any time thereafter, to invalidate such prepayment,
ab initio. For the avoidance of doubt, the Holder may elect to convert the outstanding principal amount of the Note, at any time,
and from time to time, pursuant to Section 4 prior to actual payment in cash of the Prepayment Amount under this Section
2(e) by the delivery of a Notice of Conversion to the Company.

  

    9

     

    

 

Section 3. 
Registration of Transfers and Exchanges.

 

a) 
Different Denominations. This Note is exchangeable for an equal aggregate principal amount of like Notes of different denominations
as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or exchange.

 

b) 
Investment Representations. This Note has been issued subject to certain investment representations of the original Holder
set forth in the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable
federal and state securities laws and regulations.

 

c) 
Reliance on Note Register. Prior to due presentment for transfer to the Company of this Note, the Company and any agent
of the Company may treat the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the
purpose of receiving payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither the
Company nor any such agent shall be affected by notice to the contrary.

 

Section 4. 
Voluntary Conversion; Delivery of Conversion Shares.

 

a) 
Voluntary Conversion.

 

i. 
Voluntary Conversion. Commencing on the first anniversary of the Original Issue Date, and thereafter from time to time until
this Note is no longer outstanding, the principal amount of and accrued and unpaid interest under this Note shall be convertible,
in whole or in part, into shares of Common Stock at the option of the Holder. The Holder shall effect conversions by delivering
to the Company a Notice of Conversion, the form of which is attached hereto as Annex A (each, a “Notice of Conversion”),
specifying therein the principal amount of this Note to be converted and the date on which such conversion shall be effected (such
date, the “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date
shall be the date that such Notice of Conversion is deemed delivered hereunder. No ink-original Notice of Conversion shall be required,
nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. To
effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Company unless the entire
principal amount of this Note, plus all accrued and unpaid interest thereon, has been so converted. Conversions of principal hereunder
shall have the effect of lowering the outstanding principal amount of this Note in an amount equal to the applicable principal
amount so converted. The Holder and the Company shall maintain records showing the principal amount converted and the date of each
such conversion. In the event of any dispute or discrepancy, the records of the Company shall be controlling and determinative
in the absence of manifest error. The Holder, and any assignee by acceptance of this Note, acknowledge and agree that, by reason
of the provisions of this paragraph, following conversion of a portion of the principal amount of this Note, the unpaid and unconverted
principal amount of this Note may be less than the amount stated on the face hereof.

 

    10

     

    

 

ii. 
Conversion Price. The initial conversion price shall be $1.48, which equals the Average VWAP as of February 8, 2021, the
“Effective Date” of the Purchase Agreement, and shall be adjusted as of the end of each three (3) month period following
the Original Issue Date, commencing May 31, 2021, to equal the Average VWAP as of the end of such three (3) month period but only
if such Average VWAP is less than the then-conversion price, in each case subject to further adjustment as provided in Section
5 (as so adjusted, the “Conversion Price”).

 

iii. 
Conversion Shares Issuable Upon Conversion of Principal Amount; Delivery Date. The number of Conversion Shares issuable
upon a conversion hereunder shall be determined by the quotient obtained by dividing (x) the outstanding principal amount of this
Note to be converted plus accrued and unpaid interest thereon by (y) the Conversion Price.

 

b) 
Delivery of Certificate for Conversion Shares. Not later than the earlier of (i) three (3) Trading Days and (ii) the number
of Trading Days comprising the Standard Settlement Period after each Conversion Date (the “Delivery Date”),
the Company shall deliver, or cause to be delivered, to the Holder the Conversion Shares which, on or after the earlier of (i)
the six (6) month anniversary of the Original Issue Date or (ii) the Effective Date, shall be free of restrictive legends and trading
restrictions representing the number of Conversion Shares being acquired upon the conversion of this Note. On or after the earlier
of (i) the six (6) month anniversary of the Original Issue Date or (ii) the Effective Date, the Company shall deliver any Conversion
Shares required to be delivered by the Company under this Section 4(b) electronically through DTC or another established clearing
corporation performing similar functions.

 

c) 
Obligation Absolute; Partial Liquidated Damages. The Company’s obligation to issue and deliver Conversion Shares in
accordance with the terms hereof is 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 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 of any obligation to the Company or any violation or alleged violation of law by the Holder or any other
Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in
connection with the issuance of 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. The Company may not refuse to issue any Conversion Shares required
to be issued hereunder 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, shall have been
sought and obtained, and the Company posts a surety bond for the benefit of the Holder in the amount of the outstanding principal
amount of this Note, which is subject to the injunction, which bond shall remain in effect until the completion of litigation of
the underlying dispute and the proceeds of which shall be payable to the Holder to the extent it obtains judgment. In the absence
of such injunction, the Company shall issue Conversion Shares required to be issued hereunder in accordance with the terms hereof.
If the Company fails for any reason to deliver to the Holder Conversion Shares required to be issued pursuant to any provision
of this Note by the second Trading Day following the applicable Delivery Date, the Company shall pay to the Holder, in cash, as
partial liquidated damages and not as a penalty, for each one thousand dollars ($1,000) of principal amount being redeemed or converted,
as applicable, five dollars ($5) per Trading Day for each Trading Day after the second Trading Day following such Delivery Date,
as applicable, until such certificates are delivered or Holder rescinds such redemption or conversion, as applicable. Nothing herein
shall limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section 7 hereof
for the Company’s failure to deliver Conversion Shares within the applicable period specified in this Note and the 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 injunctive relief. The exercise of any such rights shall not prohibit the Holder from seeking to enforce
damages pursuant to any other Section hereof or under applicable law.

 

    11

     

    

 

d) 
Fractional Shares. No fractional Conversion Share or scrip representing a fractional Conversion Share shall be issued under
this Note. As to any fraction of a Conversion Share to which the Holder would otherwise be entitled, the Company shall, at its
election, either pay a cash adjustment in respect of such fraction of a Conversion Share in an amount equal to such fraction multiplied
by the Conversion Price or round up to the next whole Conversion Share.

 

e) 
Transfer Taxes and Expenses. The issuance of Conversion Shares shall be made without charge to the Holder hereof for any
documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such Conversion Shares. The Company
shall pay all Transfer Agent fees required for processing of any issuance of Conversion Shares and all fees to DTC (or another
established clearing corporation performing similar functions) required for electronic delivery of Conversion Shares.

 

f) 
Beneficial Ownership Limitation. The Company shall not honor any conversion of this Note, and the Holder shall not have
the right to convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable
Notice of Conversion, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together
with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)) would beneficially
own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number
of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number
of shares of Common Stock issuable upon conversion of this Note with respect to which such determination is being made, but shall
exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted principal amount
of this Note beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of
the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise
analogous to the limitation contained herein (including, without limitation, any other Notes) beneficially owned by the Holder
or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence, for purposes of this Section
4(f), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder. To the extent that the limitation contained in this Section 4(f) applies, the determination of whether
this Note is convertible (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties)
and of which principal amount of this Note is convertible shall be in the sole discretion of the Holder, and the submission of
a Notice of Conversion shall be deemed to be the Holder’s determination of whether this Note may be converted (in relation
to other securities owned by the Holder together with any Affiliates or Attribution Parties) and which principal amount of this
Note is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the
Holder will be deemed to represent to the Company each time it delivers a Notice of Conversion that such Notice of Conversion has
not violated the restrictions set forth in this paragraph and the Company shall have no obligation to verify or confirm the accuracy
of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance
with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 4(f),
in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common
Stock as stated in the most recent of the following: (i) the Company’s most recent periodic or annual report filed with the
Commission, as the case may be; (ii) a more recent public announcement by the Company; or (iii) a more recent written notice by
the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the
written or oral request of a Holder, the Company shall within one Trading Day confirm orally and in writing to the Holder the number
of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined
after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder or its Affiliates
since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 4.9% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock issuable upon conversion of this Note held by the Holder. The Holder, upon notice to the Company, may increase
or decrease the Beneficial Ownership Limitation provisions of this Section 4(f), provided that the Beneficial Ownership Limitation
in no event exceeds 9.9% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance
of shares of Common Stock upon conversion of this Note held by the Holder and the Beneficial Ownership Limitation provisions of
this Section 4(f) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the
61st day after such notice is delivered to the Company. The Beneficial Ownership Limitation provisions of this paragraph
shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4(f) to correct
this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation
contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation.

 

    12

     

    

 

g) Legends.
The Conversion Shares are subject to the Voting Agreement. All certificates evidencing the Conversion Shares shall bear the following
legend in addition to any legend imposed under the Purchase Agreement:

 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
CERTAIN RESTRICTIONS UPON TRANSFER AND VOTING AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE PURCHASER (AS DEFINED THEREIN),
A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY.

  

 Section 5.  Certain Adjustments.

 

a) 
Stock Dividends and Stock Splits. If the Company, at any time while this Note is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock
Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon conversion
of this Note), (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 the Common Stock, any shares of capital stock of the Company, then the Conversion Price shall be
multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of
the Company) outstanding immediately before such event, and of which the denominator 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.

 

    13

     

    

 

b) 
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 5(a) above, if at any time the Company
grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be
entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have
acquired if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without
regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before
the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the
date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in
the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase
Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent)
and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto
would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

c) 
Pro Rata Distributions. During such time as this Note is outstanding, if the Company shall declare or make any dividend
or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of
capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by
way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a
"Distribution"), at any time after the issuance of this Note, then, in each such case, the Holder shall be entitled
to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the
number of shares of Common Stock acquirable upon complete exercise of this Note (without regard to any limitations on exercise
hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken
for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to
be determined for the participation in such Distribution (provided, however, to the extent that the Holder's right
to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder
shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common
Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit
of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership
Limitation).

 

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d) 
Fundamental Transaction. If, at any time while this Note is outstanding, the Company effects a Fundamental Transaction,
then, upon any subsequent conversion of this Note, 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 (without regard to
any limitation in Section 4(f) on the conversion of this Note), the number of shares of Common Stock of the successor or
acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common
Stock for which this Note is convertible immediately prior to such Fundamental Transaction (without regard to any limitation in
Section 4(f) on the conversion of this Note). For the 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 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 Note following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in
which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of
the Company under this Note and the other Transaction Documents (as defined in the Purchase Agreement) in accordance with the provisions
of this Section 5(d) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by
the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the holder of this Note,
deliver to the Holder in exchange for this Note a security of the Successor Entity evidenced by a written instrument substantially
similar in form and substance to this Note which is convertible for a corresponding number of shares of capital stock of such Successor
Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this Note (without
regard to any limitations on the conversion of this Note) prior to such Fundamental Transaction, and with a conversion price which
applies the conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares
of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of
capital stock and such conversion price being for the purpose of protecting the economic value of this Note immediately prior to
the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon
the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from
and after the date of such Fundamental Transaction, the provisions of this Note and the other Transaction Documents referring to
the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and
shall assume all of the obligations of the Company under this Note and the other Transaction Documents with the same effect as
if such Successor Entity had been named as the Company herein. For the avoidance of doubt, nothing in this Section 5(d)
shall be deemed implied consent to any Fundamental Transaction otherwise prohibited by the Transaction Documents.

 

e) 
Calculations. All calculations under this Section 5 shall be made to the nearest cent or the nearest 1/100th of a share,
as applicable. For purposes of this Section 5, the number of shares of Common Stock deemed to be issued and outstanding as of a
given date shall exclude any treasury shares of the Company.

 

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f) 
Notice to the Holder.

 

i. 
Adjustment to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 5,
the Company shall promptly deliver to the Holder a notice setting forth the Conversion Price after such adjustment and setting
forth a brief statement of the facts requiring such adjustment.

 

ii. 
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 Fundamental Transaction, Change of Control, 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, or 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 Note, and shall cause
to be delivered to the Holder at its last address as it shall appear upon the Note Register, at least twenty (20) 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, 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. To the extent that any notice
provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries,
the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K filed with the Commission.
The Holder shall remain entitled to convert this Note during the twenty (20) day period commencing on the date of such notice through
the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

Section 6. 
Covenants.

 

a) 
As long as any portion of this Note remains outstanding, and unless the Holder shall have otherwise given prior written consent,
the Company shall not, and shall not permit any of the Subsidiaries to, directly or indirectly:

 

i. 
other than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any Indebtedness;

 

    16

     

    

 

ii. 
other than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to any
of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

iii. 
other than Permitted Investments, make or hold any Investments;

 

iv. 
other than Permitted Dispositions, Dispose of any its assets;

 

v. 
amend its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that adversely
affects any rights of the Holder under the Transaction Documents;

 

vi. 
merge, dissolve, liquidate, consolidate with or into another Person (other than a merger of a Subsidiary into the Company), or
otherwise suffer or permit a Change of Control Transaction;

 

vii. 
repay, repurchase or offer to repay, repurchase or otherwise acquire any of its Equity Interests other than pursuant to prepayment
provisions of Equity Interests outstanding as of the Original Issue Date;

 

viii. 
repay, repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness other than (1) this Note, (2) prepayment,
in whole or in part, at any time or from time to time of the Second Amended and Restated 10% Senior Secured Convertible Debentures
Due April 21, 2021 of EMI Holding, Inc. outstanding on the date of the Purchase Agreement, and (3) regularly scheduled principal
and interest payments under the terms of any Permitted Indebtedness; provided; however, that any such payments contemplated by
the foregoing clauses (2) or (3) shall not be permitted if, at such time, or after giving effect to such payment, any Event of
Default exists or occurs; and provided, further, that the Company shall give the Holder at least ten (10) days’ prior notice
of any payment to be made under the foregoing clause (2);

 

ix. 
pay dividends or distributions on any of its Equity Securities, except that any Subsidiary may, directly or indirectly, pay any
dividend or distribution to the Company;

 

x. 
enter into any transaction with any Affiliate of the Company which would be required to be disclosed in any filing with the Commission,
unless such transaction is made on an arm’s-length basis and expressly approved by a majority of the disinterested directors
of the Company (even if less than a quorum otherwise required for board approval); or

 

xi. 
enter into any agreement with respect to any of the foregoing.

 

b) 
Non-Circumvention. The Company hereby covenants and agrees that the Company will not, by amendment of its certificate of
incorporation or bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution,
issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms of this Note, and will at all times in good faith carry out all of the provisions of this Note and take all action as may
be required to protect the rights of the Holder of this Note.

 

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c) 
Reservation of Authorized Shares.

 

i. 
So long as any of this Note is outstanding, the Company shall take all action necessary to reserve and keep available out of its
authorized and unissued Common Stock, solely for the purpose of effecting the conversion of this Note, the number of shares of
Common Stock as shall from time to time be necessary to effect the conversion of this Note as provided herein without regard to
any limitations on conversions (the "Required Reserve Amount").

 

ii. 
If at any time while this Note remain outstanding the Company does not have a sufficient number of authorized and unreserved shares
of Common Stock to satisfy its obligation to have reserved for issuance upon conversion of this Note at least a number of shares
of Common Stock equal to the Required Reserve Amount (an "Authorized Share Failure"), then the Company shall promptly
take all action necessary to increase the Company's authorized shares of Common Stock to an amount sufficient to allow the Company
to reserve the Required Reserve Amount for this Note then outstanding. Without limiting the generality of the foregoing sentence,
as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than seventy-five
(75) days after the occurrence of such Authorized Share Failure, the Company shall either (x) obtain the written consent of its
stockholders for the approval of an increase in the number of authorized shares of Common Stock and provide each stockholder with
an information statement with respect thereto or (y) file with the Commission a proxy statement for a meeting of its stockholders
at which meeting the Company will seek the approval of its stockholders for an increase in the number of authorized shares of Common
Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use commercially
reasonable efforts to solicit its stockholders' approval of such increase in authorized shares of Common Stock and to cause its
Board of Directors to recommend to the stockholders that they approve such proposal. Notwithstanding the foregoing, if during any
such time of an Authorized Share Failure, the Company is able to obtain the written consent of a majority of the shares of its
issued and outstanding Common Stock to approve the increase in the number of authorized shares of Common Stock, the Company may
satisfy this obligation by obtaining such consent and submitting for filing with the Commission an Information Statement on Schedule
14C.

 

d) 
Insurance. So long as any of this Note is outstanding, the Company will maintain (a) insurance with financially sound and
reputable insurance companies in at least the amounts (and with only those deductibles) customarily maintained, and against such
risks as are typically insured against, by Persons of comparable size engaged in the same or similar business as the Company, and
(b) all worker’s compensation, employer’s liability insurance or similar insurance as may be required under the laws
of any state or jurisdiction in which it may be engaged in business.

 

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Section 7. 
Events of Default.

 

a) 
“Event of Default” means, wherever used herein, any of the following events (whatever the reason for such event
and whether such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or
order of any court, or any order, rule or regulation of any administrative or governmental body):

 

i. 
any default in the payment of principal, interest or other amounts owing to the Holder under this Note, as and when the same shall
become due and payable;

 

ii. 
the Company shall fail to observe or perform any other covenant or agreement contained in this Note (other than a breach by the
Company of (x) its obligations to pay principal, interest or other amounts owing to the Holder under this Note, which breach is
addressed in clause (i) above or (y) deliver Conversion Shares to the Holder pursuant to the terms of this Note, which breach is
addressed in clause (viii) below), which failure is not cured, if possible to cure, within the earlier to occur of ten (10) days
after notice of such failure sent by the Holder to the Company; provided, that any failure to observe or perform any provision
of Section 6 shall be an immediate Event of Default hereunder without any grace period;

 

iii. 
a default or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument)
or any material breach shall occur under any of the Transaction Documents, which failure is not cured, if possible to cure, within
ten (10) days following notice of failure sent by the Holder to the Company;

 

iv. 
any representation or warranty made in this Note or any other Transaction Documents, any written statement pursuant hereto or thereto
or any other report, financial statement or certificate made or delivered to the Holder or any other Holder pursuant to the Transaction
Documents shall be untrue or incorrect in any material respect as of the date when made or deemed made;

 

v. 
the Company shall be subject to a Bankruptcy Event;

 

vi. 
the Company or any Subsidiary shall default on any of its obligations under any Indebtedness that (a) involves an obligation greater
than five hundred thousand dollars ($500,000), whether such Indebtedness now exists or shall hereafter be created, and (b) that
could result in such Indebtedness becoming or being declared due and payable prior to the date on which it would otherwise become
due and payable;

 

vii. 
(a) the Common Stock shall not be eligible for listing or quotation for trading on the Principal Market and shall not be eligible
to resume listing or quotation for trading thereon within five (5) Trading Days, (b) the shares of Common Stock are suspended from
trading or otherwise not listed or quoted for trading on the Principal Market for five (5) Trading Days (which need not be consecutive)
during any twelve (12) month period, or (c) the shares of Common Stock are suspended from trading or otherwise not listed or quoted
for trading on the Principal Market for three (3) consecutive Trading Days;

 

    19

     

    

 

viii. 
the Company shall fail for any reason to deliver any Conversion Shares to a Holder on the Delivery Date;

 

ix. 
the electronic transfer by the Company of shares of Common Stock through DTC or another established clearing corporation is no
longer available or is subject to a suspension that lasts for more than three (3) Trading Days;

 

x. 
a judgment in excess of five hundred thousand dollars ($500,000) is entered against the Company and, within sixty (60) days after
entry thereof, such judgment is not discharged or satisfied or execution thereof stayed pending appeal, or within sixty (60) days
after the expiration of any such stay, such judgment is not discharged or satisfied;

 

xi. 
the Company, any Subsidiary or any of their respective executive officers of the Company or any Subsidiary shall be indicted, convicted
or have a judgment entered against it for any intentional or willful violation of state or federal laws applicable to the business
of the Company and its Subsidiaries or any anti-fraud provisions of state or federal securities laws;

 

xii. 
if any of the following occurs, (i) the U.S. Food and Drug Administration or any other Governmental Authority initiates an enforcement
action against the Company or any of its Subsidiaries that causes the Company or any such Subsidiary to recall, withdraw, remove
or discontinue marketing any of its products and such recall, withdraw, removal or discontinuation would have a Material Adverse
Effect; (ii) the U.S. Food and Drug Administration or any other Governmental Authority issues a warning letter to the Company or
any of its Subsidiaries with respect to any regulatory matter which would , in the aggregate when considered with all other existing
and effective warning letters, to have a Material Adverse Effect; (iii) the Company or any of its Subsidiaries conducts a mandated
or voluntary recall which could reasonably be expected to result in aggregate liability and expense to the Company and its Subsidiaries
that reasonably would have a Material Adverse Effect; or (iv) the Company or any of its Subsidiaries enters into a settlement agreement
with the U.S. Food and Drug Administration or any other Governmental Authority that results in aggregate payments in respect of
or related to any single or related series of transactions, incidents or conditions, in excess of $1,000,000, or that would have
a Material Adverse Effect;

 

xiii. 
Any other circumstance has occurred that would have a Material Adverse Effect.

 

b) 
Remedies Upon Event of Default. If any Event of Default occurs, the outstanding principal amount of this Note, plus accrued
but unpaid interest and other amounts owing in respect thereof through the date of acceleration, shall become, at the Holder’s
election, immediately due and payable in cash; provided, that such acceleration shall be automatic, without any notice or other
action of the Holder required, in respect of an Event of Default occurring pursuant to clause (v) of Section  7(a).
In connection with such acceleration described herein, the Holder need not provide, and the Company hereby waives, any notice,
presentment, demand, protest or other notice of any kind, and the Holder may immediately and without expiration of any grace period
enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration
may be rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder
of the Note until such time, if any, as the Holder receives full payment pursuant to this Section 7(b). No such rescission
or annulment shall affect any Event of Default or impair any right consequent thereon.

 

    20

     

    

 

Section 8. 
Miscellaneous.

 

a) 
Notices. Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without
limitation, any Prepayment Notice, shall be in writing and delivered personally, by facsimile, by email attachment, or sent by
a nationally recognized overnight courier service, addressed to the Company, at the address set forth above, or such other facsimile
number, email address, or address as the Company may specify for such purposes by notice to the Holder delivered in accordance
with this Section 8(a).  Any and all notices or other communications or deliveries to be provided by the Company hereunder
shall be in writing and delivered personally, by facsimile, by email attachment, or sent by a U.S. nationally or internationally
recognized overnight courier service addressed to the Holder at the facsimile number or email address or address of the Holder
appearing on the books of the Company, or if no such facsimile number or email attachment or address appears on the books of the
Company, at the address for notice to the under the Purchase Agreement.  Any notice or other communication or deliveries hereunder
shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number or email attachment to the email address set forth on the signature pages attached hereto
prior to 5:30 p.m. (local time in Los Angeles, California) (or such later time expressly specified elsewhere in this Note) on any
date, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile number or email attachment to the email address set forth on the signature pages attached hereto on a day that is not
a Trading Day or later than 5:30 p.m. (local time in Los Angeles, California) (or such later time expressly specified elsewhere
in this Note) on any Trading Day, (iii) the third Trading Day following the date of mailing, if sent by U.S. nationally or internationally
recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

b) 
Absolute Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay the principal of and accrued interest on this Note at the time, place,
and rate, and in the currency herein prescribed. This Note is a direct debt obligation of the Company. All payments by the Company
hereunder shall be made without setoff, deduction or counterclaim.

 

c) 
Lost or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver,
in exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen
or destroyed Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt
of evidence of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company.
The applicant for a new Note under such circumstances shall also pay or provide for any reasonable third-party costs (including
a customary indemnity) associated with the issuance of such replacement Note.

 

    21

     

    

 

d) 
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be
governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles
of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense
of the transactions contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective
Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts in Los Angeles,
California (the “Los Angeles Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction
of the Los Angeles Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
of the Los Angeles Courts, or such Los Angeles Courts are improper or inconvenient venue for such proceeding. Each party hereby
irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing
a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address
in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner
permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any
and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated
hereby.

 

e) 
Amendments; Waivers. Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate
as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The
failure of the Company or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not
be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other
term of this Note on any other occasion. Any waiver by the Company or the Holder must be in writing. Any provision of this Note
may be waived or amended as provided in the Purchase Agreement, which waiver or amendment shall be binding on all of the Holders
of the Notes and their successors and assigns.

 

    22

     

    

 

f) 
Severability. If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain
in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other
Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable
law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of
interest permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that it shall not at
any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury
law or other law which would prohibit or forgive the Company from paying all or any portion of the principal of or interest on
this Note as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or
the performance of this Note, and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage
of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power
herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

 

g) 
Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief.  The remedies provided in this Note
shall be cumulative and in addition to all other remedies available under this Note and any of the other Transaction Documents
at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit
the Holder’s right to pursue actual and consequential damages for any failure by the Company to comply with the terms of
this Note.  The Company covenants to the Holder that there shall be no characterization concerning this instrument other than
as expressly provided herein. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the
computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject
to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company
therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other
available remedies, to an injunction restraining any such breach or any such threatened breach, without the necessity of showing
economic loss and without any bond or other security being required. The Company shall provide all information and documentation
to the Holder that is requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and
conditions of this Note.

 

h) 
Next Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day.

 

i) 
Headings. The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be
deemed to limit or affect any of the provisions hereof.

 

j) 
Limitation of Liability. Neither Holder, the Company nor any Affiliate, officer, director, employee, attorney, or agent
of Holder or the Company shall have any liability with respect to, and the Company and the Holder hereby waives, releases, and
agrees not to sue any of them upon, any claim for any punitive, special, indirect, incidental, or consequential damages suffered
or incurred in connection with, arising out of, or in any way related to, this Note or any of the other Transaction Documents,
or any of the transactions contemplated by this Note or any of the other Transaction Documents.

 

    23

     

    

 

k) 
Costs of Enforcement. The Company hereby covenants and agrees to indemnify, defend and hold the Holder harmless from and
against all costs and expenses, including reasonable attorneys’ fees and their reasonable costs, together with interest thereon
at the Applicable Rate, incurred by the Holder in enforcing its rights under this Note; or if the Holder is made a party as a defendant
in any action or proceeding arising out of or in connection with its status as a lender, or if the Holder is requested to respond
to any subpoena or other legal process issued in connection with this Note; or reasonable disbursements arising out of any costs
and expenses, including reasonable attorneys’ fees and their costs incurred in any bankruptcy case; or for any legal or appraisal
reviews, advice or counsel performed for the Holder following a request by the Company for waiver, modification or amendment of
this Note.

 

l) 
Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other
party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page was an original thereof.

 

*********************

 

(Signature Pages Follow)

 

    24

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed by its duly authorized officer as of the date first indicated above.

 

	EMMAUS LIFE SCIENCES, INC.	 	Address for Notice:
	 	 	 	
        21250 Hawthorne Boulevard

        Suite 800

        Torrance, California 90503

	 	 	 	 
	By:		 	Email: 
	 	Name: 	 	Fax: 310-214-0075
	 	
        Title: 

         
	
         

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

 

Email:

Fax: 310-214-0075

 

[HOLDER SIGNATURE PAGE FOLLOWS]

  

     

     

    

 

holder
SIGNATURE PAGE TO CONVERTIBLE PROMISSORY NOTE

 

IN WITNESS WHEREOF,
the undersigned has caused this Note to be duly executed by a duly authorized officer as of the date first indicated above.

 

	Name of Purchaser:	 

 

	Signature of Authorized Signatory of Purchaser:	 

 

	Name of Authorized Signatory:	 

 

	Title of Authorized Signatory:	 

 

	Email Address of Authorized Signatory:	 

 

	Facsimile Number of Authorized Signatory:	 

 

	Address for Notice to Purchaser:	 

  

     

     

    

 

ANNEX A

 

NOTICE OF CONVERSION

 

The undersigned hereby
elects to convert principal and interest under the Convertible Promissory (the “Note”) of Emmaus Life Sciences,
Inc., a Delaware corporation (the “Company”), in accordance with Section 4(a) of the Note.

 

By the delivery
of this Notice of Conversion the undersigned represents and warrants to the Company that its ownership of the shares of Common
Stock does not exceed the amounts specified under Section 4(g) of the Note.

 

Conversion Date:

 

Conversion Price:

 

Principal amount to be converted:

 

Accrued and unpaid interest thereon:

 

Number of shares to be issued:

 

Signature:

 

Name:

 

Address for Delivery of Conversion Shares:

  

OR

 

DWAC Instructions:

 

Broker No:                                                   

 

Account No:                                                

 

     

     

    

 

EXHIBIT B TO SECURITIES PURCHASE AGREEMENT

 

TRANSFER RESTRICTION AND VOTING AGREEMENT

 

 

 

This TRANSFER RESTRICTION
AND VOTING Agreement (this “Agreement”) is made and entered into as of February __, 2021 by and among
between Emmaus Life Sciences, Inc., a Delaware corporation (the “Company”), and each purchaser identified on
the purchaser signature pages hereto (each, including its successors and permitted assigns, the “Purchaser”).

 

WHEREAS, pursuant to
a Securities Purchase Agreement of even date herewith among the Company and the Purchasers (the “SPA”), the
Company proposes to issue and sell to the Purchasers, and the Purchasers, severally and not jointly, proposes to purchase from
the Company, Convertible Promissory Notes of the Company as more fully described therein (the “Convertible Notes”),
conditioned upon, among other things, the Company and the Purchasers entering into this Agreement;

 

NOW, THEREFORE, the
Company and the Purchaser agree as follows:

 

SECTION
1. TRANSFER RESTRICTIONS

 

(a) Unless otherwise defined herein, “Conversion
Shares” and other capitalized terms used herein have the respective meanings set forth in the Convertible Notes.

 

(b) In addition to any other limitations on
the transfer of Conversion Shares under applicable securities laws or otherwise as set forth in the SPA, the Convertible Notes
or this Agreement, the Purchaser shall not be entitled to sell, transfer, assign or otherwise dispose of (“Transfer”
or “Transferred”) Conversion Shares, or any interest therein, except to a “Permitted Transferee”
as defined below.

 

(c) As used in this Agreement, a “Permitted
Transferee” means a (1) a purchaser of Conversion Shares other than an Affiliate of the Purchaser in a transaction executed
on a Trading Market or other Principal Market (a “Market Transaction”) or (2) an Affiliate of the Purchaser,
or a transferee of Conversion Shares in one or more privately negotiated transactions, provided, in each case, that the
Permitted Transferee described in this clause (2) executes a valid undertaking, in form and content satisfactory to the Company,
to the effect that the Conversion Shares so Transferred shall remain subject to all of the provisions of this Agreement as though
the Permitted Transferee were a party to this Agreement, bound in every respect in the same way as the Purchaser.

 

(d) Any Transfer or purported Transfer of
Conversion Shares in violation of this Section 1 shall be null and void ab initio.

 

    B-1

     

    

 

SECTION
2. LEGENDS; STOP TRANSFER

 

(a) All certificates evidencing Conversion
Shares shall bear substantially the following legend in addition to any legend imposed under the SPA or the Convertible Notes:

 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
CERTAIN RESTRICTIONS UPON TRANSFER AND VOTING AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE PURCHASER (AS DEFINED THEREIN),
A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY.

 

SECTION
3. VOTING AGREEMENT

 

The Purchaser agrees that, with respect
to any matter presented to the stockholders of the Company for their vote, consent or approval, the Purchaser shall vote the Conversion
Shares, or grant or withhold the Purchaser’s consent or approval with respect thereto, and shall take all other necessary
or desirable actions within his control (whether in his capacity as a stockholder of the Company or otherwise, and including, without
limitation, attending meetings in person or by proxy for purposes of obtaining a quorum and executing written consents in lieu
of meetings), so that the Conversion Shares are voted, or the Purchaser’s consent or approval with respect thereto is granted
or withheld, as the case may be, strictly in accordance with the written direction of the Board of Directors of the Company provided
to the Purchaser for this purpose. In such written direction shall not have been previously received by the Purchaser with respect
to any such matter, the Purchaser shall abstain from voting the Conversion Shares, and refrain from granting the Purchaser’s
consent or approval with respect thereto, as to such matter.

 

SECTION
4. MISCELLANEOUS

 

4.1 Termination. This Agreement shall
terminate and be of no further force or effect with respect to Conversion Shares sold in a bona fide Market Transaction.

 

4.1
Assignment. Subject to Sections 1(b) and 4.1, this Agreement
shall be binding upon and inure to the benefit of the respective heirs, successors and assigns of the parties hereto.

 

4.2
Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State
of Delaware without regard to conflict of law principals.

 

4.3
Amendment. Any modification, amendment, or waiver of this Agreement or any provision hereof, either retroactively
or prospectively, shall be in writing and executed by the Company and the Purchaser.

 

4.4
Counterparts. This Agreement may be executed in counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party, it being understood that the parties need not sign the same counterpart. In the event any signature is delivered by facsimile
transmission or by e-mail delivery of a “pdf” data file, such signature shall create a valid and binding obligation
of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

4.5
Attorneys’ Fees. If any action at law or equity, including an action for declaratory relief, is brought to
enforce or interpret any provision of this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys’
fees and expenses from the other party, which fees and expenses shall be in addition to any other relief which may be awarded.

 

[SIGNATURE PAGE FOLLOWS]

 

    B-2

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed by their respective authorized signatories as of the date first
indicated above.

 

	EMMAUS LIFE SCIENCES, INC.	 
	 	 	 
	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES FOR PURCHASER FOLLOWS]

 

    B-3

     

    

 

PURCHASER
SIGNATURE PAGES TO TRANSFER RESTRICTION AND VOTING AGREEMENT

 

IN WITNESS WHEREOF,
the undersigned has caused this Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above.

 

	Name of Purchaser:	 

 

	Signature of Authorized Signatory of Purchaser:	 

 

	Name of Authorized Signatory:	 

 

	Title of Authorized Signatory:	 

 

[SIGNATURE PAGES CONTINUE]

 

 

B-4

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