Document:

ex-4_8.htm

Exhibit 4.8

 

 

THIS CONVERTIBLE PROMISSORY NOTE AND THE SECURITIES INTO WHICH IT MAY BE CONVERTED HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). NO SALE OR DISPOSITION MAY BE AFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN APPLICABLE EXEMPTION THEREFROM.

EMMAUS HOLDINGS, INC.

 

Convertible Promissory Note

(Cash Interest)

(1 Year)

 

	
Principal Amount: $  360,000

 

	
Loan Date: June 29, 2011

 

FOR VALUE RECEIVED, Emmaus Holdings, Inc., a Delaware corporation, located at 20725 S. Western Ave., Suite 136, Torrance, CA 90501 (“Borrower”) agrees to pay to Yasushi Nagasaki (“Lender”), the sum of $360,000 U.S. Dollars (“Principal Amount”), together with accrued interest thereon at the rate of eight percent (8%) per annum, under the following terms and conditions of this Convertible Promissory Note (“Note”).

1.           Terms of Repayment (Balloon Payment):  From the Loan Date and continuing thereafter until the one (1) year anniversary of the Loan Date, the interest shall accrue at eight percent (8%) simple interest of the Loan amount, as set forth in Attachment 1 hereto. Lender shall have the right to convert the loan amount plus the accrued interest to common stocks at the stock price of $3.60 within 1 year.  The entire unpaid principal and any accrued interest shall become immediately due and payable upon 1 year of the Loan Date.

2.           Prepayment:  This Note may be prepaid in whole or in part at any time without premium or penalty. All prepayments shall be first be applied to interest, and then to outstanding principal payments in order of their maturity.

 

3.           Place of Payment:  All payments due under this note shall be sent to the Lender’s address, as noted in Attachment 1 hereto, or at such other place as the holder of this Note may designate in writing in the future.

 

4.           Conversion Option:  At any time during the one year term of this Note, Lender shall, by giving written Notice of Conversion to the Borrower in the form attached hereto as Exhibit A, have the right to convert the Principal Amount to shares of Common Stock of Borrower (the “Shares”) at the Conversion Price of $3.60 per share. Upon conversion of this Note, Lender shall be subject to all requirements and transfer restrictions that Borrower may then have in effect with respect to the Shares and purchasers of Shares.

5.           Warrant:  Lender is entitled to the warrant to purchase number of shares equivalent to 25% of convertible shares.  The warrant shall be exercisable within three (3) years of Loan Date.  The warrant share price shall be discounted 25% from the fair market trading value at the time of exercise.

6.          Default:  In the event of default, the Borrower agrees to pay all costs and expenses incurred by the Lender, including all reasonable attorney fees as permitted by law for the collection of this Note upon default.

7.           Acceleration of Debt:  If Borrower fails to make any payment due under the terms of this Note or seeks relief under the U.S. Bankruptcy Code, or suffers an involuntary petition in bankruptcy or receivership that is not vacated within thirty (30) days, the entire balance of this Note and any interest accrued thereon shall be immediately due and payable to the holder of this Note.

 

8.           Modification:  No modification or waiver of any of the terms of this Agreement shall be allowed unless by written agreement signed by the parties. No waiver of any breach or default hereunder shall be deemed a waiver of any subsequent breach or default of the same or similar nature.

 

9.           Transfer of the Note:  The Borrower hereby waives any notice of the transfer of this Note by the Lender or by any subsequent holder of this Note, agrees to remain bound by the terms of this Promissory Note subsequent to any transfer, and agrees that the terms of this Note may be fully enforced by any subsequent holder of the Note.

 

10.           Severability of Provisions:  If any portion of this Note is deemed unenforceable, all other provisions of this Note shall remain in full force and effect.

 

11.           Choice of Law:  All terms and conditions of this Note shall be interpreted under the laws of the State of California, U.S.A.

Signed Under Penalty of Perjury, this 29th day of June 2011.

 

Emmaus Holdings, Inc.

 

By:  /s/ Yutaka Niihara                                                                        

Yutaka Niihara, M.D., President and CEO

 

 

 

  

 

  

ATTACHMENT 1

 

	
Lender’s Name:

	  	
Yasushi Nagasaki

	  
	  	  	  	  
	
Lender’s Address

	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	
Loan Amount:

	  	
USD $360,000

	  
	  	  	  	  
	
Annual Interest at 8%

Per Annum on Loan Amount:                                              $28,800

	  
	  	  	  	  
	
Maturity Date:

	  	
June 28, 2012

	  

 

  

 

  

EXHIBIT A

 

NOTICE OF CONVERSION

 

(To be executed by Lender in order to convert the Note)

 

TO: Emmaus Holdings, Inc.

 

The undersigned hereby irrevocably elects to convert $ ________________________ of the principal amount of the Note issued to Lender by Emmaus Holdings, Inc. (the “Company”) into shares of Common Stock of the Company according to the conditions stated therein, as of the Conversion Date written below.

 

	
Conversion Date:

	  	  
	  	  	  
	
Applicable Conversion Price:

	  	  
	  	  	  
	
Signature:

	  	  
	  	  	  
	
Name:

	  	  
	  	  	  
	
Address:

	  	  
	  	  	  
	
Amount to be converted:

	
$

	  
	  	  	  
	
Amount of Note

	  	  
	
unconverted:

	
$

	  
	  	  	  
	
Number of shares of

	  	  
	
Common Stock to be issued:

	  	  
	  	  	  
	
Please issue the shares of Common Stock in the following name and to the following address:

	  	  
	  	  	  
	
Name:

	  	  
	  	  	  
	
Address:

	  	  
	  	  	  
	
Phone Number:ex-10_28.htm

Exhibit 10.28

 

 

EMMAUS MEDICAL, INC.

 

Promissory Note

(Cash Interest)

(On Demand)

 

	
Principal Amount: $  100,000

 

	
Loan Date: June 21, 2011

 

FOR VALUE RECEIVED, Emmaus Medical, Inc., a Delaware corporation, located at 20725 S. Western Ave., Suite 136, Torrance, CA 90501 (“Borrower”) agrees to pay to Yutaka Niihara (“Lender”), the sum of $100,000 U.S. Dollars (“Principal Amount”), together with accrued interest thereon at the rate of eight percent (8%) per annum, under the following terms and conditions of this Promissory Note (“Note”).

1.           Terms of Repayment (Balloon Payment):  Simple interest at the rate of eight percent (8%) per annum will accrue on the outstanding Principal Amount commencing on the date of this Note until called by Lender, and the Borrower shall make monthly payments of interest only as set forth in Attachment 1 hereto.  The entire unpaid Principal Amount and any accrued interest thereon shall become immediately due and payable upon Lender’s request.

2.           Prepayment:  This Note may be prepaid in whole or in part at any time without premium or penalty. All prepayments shall be in cash, and first be applied to accrued interest, and then to outstanding Principal Amount.

 

3.           Place of Payment:  All payments due under this Note shall be sent to the Lender’s address, set forth in Attachment 1 hereto, or at such other place as the holder of this Note may subsequently designate in writing to the Borrower.

3.           Acceleration of Debt:  If Borrower fails to make any payment due under the terms of this Note or seeks relief under the U.S. Bankruptcy Code, or suffers an involuntary petition in bankruptcy or receivership that is not vacated within thirty (30) days, the entire balance of this Note and any interest accrued thereon shall be immediately due and payable to the holder of this Note.

 4.           Modification:  No modification or waiver of any of the terms of this Agreement shall be allowed unless by written agreement signed by the parties. No waiver of any breach or default hereunder shall be deemed a waiver of any subsequent breach or default of the same or similar nature.

5.           Assignment:  Neither the Note, nor any of the rights, interests or obligations hereunder may be assigned by operation of law or otherwise, in whole or in part, by Borrower or by the Lender without prior written consent of the other party, except in connection with an assignment in whole to a successor corporation to Borrower, provided that such successor corporation acquires all or substantially all of Borrower’s property and assets and Lender’s rights hereunder are not impaired.   

6.           Complete Note. This Note is the complete and exclusive statement of the agreement of the parties with respect to matters in this Note.  This Note replaces and supersedes all prior written or oral agreements or statements by and among the parties with respect to the matters covered by it.  No representation, statement, condition or warranty not contained in this Note is binding on the parties.

7.           Severability of Provisions:  If any portion of this Note is deemed unenforceable, all other provisions of this Note shall remain in full force and effect.

 

8.           Choice of Law:  All terms and conditions of this Note shall be interpreted under the laws of the State of California, United States of America.

  

 

  

IN WITNESS WHEREOF, the Borrower has caused this PROMISSORY NOTE to be executed by a duly authorized officer as of the date first written above.

 

Emmaus Medical, Inc.

 

By:  /s/ Willis C. Lee                                                                      

        Willis C. Lee, COO

 

 

 

  

 

  

ATTACHMENT 1

 

	
Lender’s Name:

	  	
Yutaka Niihara

	  
	  	  	  	  
	
Lender’s Address

	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	
Principal Amount:

	  	
USD $100,000

	  
	  	  	  	  
	
Monthly Interest at 8%

Per Annum on Principal Amount:                                              $666.67

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