Document:

December 17, 2020 8-K Exhibit 4.1

Exhibit 4.1

NEITHER THIS NOTE NOR THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE 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 AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE MAY BE PLEDGED IN CONNECTION WITH A BONA
FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

SEELOS THERAPEUTICS, INC.

Form of 

                Convertible Promissory

             Note due December 11, 2022

	
Note No. CN-1

Dated: December 11, 2020 (the "Issuance Date")

	
$12,000,000.00  

      For value received, SEELOS THERAPEUTICS, INC., a Nevada corporation (the "Maker"
or the "Company"), hereby promises to pay to the order of Lind Global Asset Management II, LLC, a Delaware limited liability company (together with its
successors and representatives, the "Holder"), in accordance with the terms hereinafter provided, the principal amount of TWELVE MILLION DOLLARS
($12,000,000.00) (the "Principal Amount").

      All payments under or pursuant to this Convertible Promissory Note (this "Note") shall be made in United States Dollars in
immediately available funds to the Holder at the address of the Holder set forth in the Purchase Agreement (as
hereinafter defined) or at such other place as the Holder may designate from time to time in writing to the Maker or by wire transfer of funds to the Holder's account, instructions for
which are attached hereto as Exhibit A. The outstanding principal balance of this Note shall be due and payable on December 11, 2022 (the "Maturity
Date") or at such earlier time as provided herein. All calculations made pursuant to this Note shall be rounded down to three decimal places.

ARTICLE 1

      1.1    Purchase Agreement.  This Note has been executed and delivered pursuant to the Securities Purchase Agreement, dated as of December
11, 2020 (as the same may be amended from time to time, the "Purchase Agreement"), by and
between the Maker and the Holder. Capitalized terms used and not otherwise defined herein shall have the meanings set forth for such terms in the Purchase Agreement. 

      1.2    Interest Payments.  This Note shall not bear interest.

      1.3    Principal Installment Payments.     Commencing on the day that is one hundred eighty (180) days after the Issuance Date, the Maker shall pay
to the Holder the Outstanding Principal Amount hereunder in eighteen (18) monthly installments, on such date and each one (1) month anniversary thereof (each, a
"Payment Date" and collectively the "Monthly Payments"), an amount equal to the Outstanding Principal Amount on such Payment Date
divided by the number of Monthly Payments remaining, until the Outstanding Principal Amount has been paid in full prior to or on the Maturity Date or, if earlier, upon acceleration,
conversion or redemption of this Note in accordance with the terms herein.  The Monthly Payments shall be made in cash, in the amount of 102% of such Monthly Payment. 

      1.4    Prepayment. The Maker shall have the right to pre-pay this Note in the following ways: (i) at any time prior
to the six (6) month anniversary of the Issuance Date, the Maker may repay up to sixty-six and two thirds percent (662/3%) of the Outstanding Principal Amount upon
delivering at least ten (10) days' written notice of the Holder (a "Prepayment Notice"), provided, however, that any such prepayments under this clause (i)
may not in the aggregate exceed eight million dollars ($8,000,000); or (ii) at any time on or after the seven (7) month anniversary of the Issuance Date,  the Maker may repay up to
all of the Outstanding Principal Amount upon delivering a Prepayment Notice. If the Maker elects to prepay this Note on or after the seven (7) month anniversary of the Issuance
Date pursuant to clause (ii) above, the Holder shall have the right, upon written notice to the Maker (a "Prepayment Conversion Notice") within five (5) Business
Days of the Holder's receipt of a Prepayment Notice, to convert up to thirty three and one third percent (331/3%) of the amount the Company is pre-paying for any
such prepayment (the "Maximum Amount") at the Conversion Price (as defined below), in accordance with the provisions of Article 3, specifying the Principal
Amount (up to the Maximum Amount) that the Holder will convert. Upon delivery of a Prepayment Notice, the Maker irrevocably and unconditionally agrees to, within five (5) Business Days of receiving a Prepayment Conversion Notice, and if no Prepayment Conversion Notice is received, within ten (10)
Business Days of delivery of a Prepayment Notice: (i) repay the amount of the Outstanding Principal Amount the Company
is electing to prepay, as specified in the Prepayment Notice, minus the Principal Amount set forth in the Prepayment Conversion Notice and (ii) issue the applicable Conversion
Shares to the Holder in accordance with Article 3, as applicable.  The foregoing notwithstanding, the Maker may not deliver a Prepayment Notice with respect to any Outstanding
Principal Amount that is subject to a Conversion Notice delivered by the Holder in accordance with Article 3.

      1.5    Delisting from a Trading Market. If at any time the Common Stock ceases to be listed on a Trading Market, the Holder may deliver a
demand for payment to the Company and, if such a demand is delivered, the Company shall, within ten (10) Business Days following receipt of the demand for payment from the
Holder, pay all of the Outstanding Principal Amount.

      1.6    Payment on Non-Business Days.  Whenever any payment to be made shall be due on a day which is not a Business Day, such payment may be due on the next succeeding Business Day.

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      1.7    Transfer.  This Note may be transferred or sold, subject to the provisions of Section 5.8 of this Note, or pledged, hypothecated or otherwise
granted as security by the Holder.

      1.8    Replacement.  Upon receipt of a duly executed and notarized written statement from the Holder with respect to the loss, theft or destruction of
this Note (or any replacement hereof), or, in the case of a mutilation of this Note, upon surrender and cancellation of such Note, the Maker shall issue a new Note, of like tenor and
amount, in lieu of such lost, stolen, destroyed or mutilated Note.

      1.9    Use of Proceeds.  The Maker shall use the proceeds of this Note as set forth in the Purchase Agreement.

      1.10  Status of Note and Security Interest. The obligations of the Maker under this Note shall be senior to all other existing Indebtedness and equity
of the Company. Upon any Liquidation Event (as hereinafter
defined), the Holder will be entitled to receive, before any distribution or payment is made upon, or set apart with respect to, any Indebtedness of the Maker or any class of capital
stock of the Maker, an amount equal to the Outstanding Principal Amount. For purposes of this Note, "Liquidation Event" means a liquidation pursuant to a filing of a petition for bankruptcy under
applicable law or any other insolvency or debtor's relief, an assignment for the benefit of creditors, or a voluntary or involuntary liquidation, dissolution or winding up of the affairs of
the Maker.

      1.11  Secured Note.  The full amount of this Note is secured by the Collateral (as defined in the Security Agreement) identified and described as
security therefor in the Security Agreement. 

      1.12  Tax Treatment.  The Maker and the Holder agree that for U.S. federal income tax purposes, and applicable state, local and non-U.S. income
tax purposes, this Note is not intended to be, and shall not be, treated as indebtedness.  Neither the Maker nor the Holder shall take any contrary position on any tax return, or in any
audit, claim, investigation, inquiry or proceeding in respect of Taxes, unless otherwise required pursuant to a final determination within the meaning of Section 1313 of the Internal
Revenue Code of 1986, as amended (the "Code"), or any analogous provision of applicable state, local or non-U.S. law.

ARTICLE 2

      2.1    Events of Default.  An "Event of Default" under this Note shall mean the occurrence of any
of the events defined in the Purchase Agreement, and any of the additional events described below:

          (a)   any default in the payment of (i) the Principal Amount hereunder when due; or (ii) liquidated damages in respect of this Note as and when the
same shall become due and payable (whether on the Maturity Date or by acceleration or otherwise);

          (b)   the Maker shall fail to observe or perform any other covenant, condition or agreement contained in this Note or any Transaction Document;

                                            3

          (c)   the Maker's notice to the Holder, including by way of public announcement, at any time, of its inability to comply (including for any of the reasons
described in Section 3.6(a) hereof) or its intention not to comply with proper requests for conversion of this Note into shares of Common Stock;

          (d)   the Maker shall fail to (i) timely deliver the shares of Common Stock as and when required in
Section 3.2; or (ii) make the payment of any fees and/or liquidated damages under this Note, the Purchase Agreement or the other Transaction Documents;

          (e)   default shall be made in the performance or observance of any material covenant, condition or agreement contained in the Purchase Agreement or any
other Transaction Document that is not covered by any other provisions of this Section 2.1;

          (f)   at any time the Maker shall fail to have a sufficient number of shares of Common Stock authorized,
reserved and available for issuance to satisfy the potential conversion in full (disregarding for this purpose any and all limitations of any kind on such conversion) of this
Note;

          (g)   any representation or warranty made by the Maker or any of its Subsidiaries herein or in the Purchase Agreement, this Note or any other Transaction Document shall prove to have been false or
incorrect or breached in a material respect on the date as of which made;

          (h)   unless otherwise approved in writing in advance by the Holder, the Maker shall, or shall announce an intention to pursue or consummate a Change of
Control, or a Change of Control shall be consummated, or the Maker shall negotiate, propose or enter into any agreement, understanding or arrangement with respect to any
Change of Control; 

          (i)   the Maker or any of its Subsidiaries shall
(A) default in any payment of any amount or amounts of principal of or interest (if any) on any Indebtedness (other than the Indebtedness hereunder), the aggregate principal amount
of which Indebtedness is in excess of $250,000 or (B) default in the observance or performance of any other agreement or condition relating to any such Indebtedness or contained
in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or condition is to
cause, or to permit the holder or holders or beneficiary or beneficiaries of such Indebtedness to cause with the giving of notice if required, such Indebtedness to become due prior to
its stated maturity;

          (j)   the Maker or any of its Subsidiaries shall: (i) apply for or consent to the
appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or of all or a substantial part of its property or assets; (ii) make a general
assignment for the benefit of its creditors; (iii) commence a voluntary case under the United States Bankruptcy Code (as now or hereafter in effect) or under the comparable laws of
any jurisdiction (foreign or domestic); (iv) file a petition seeking to take advantage of any bankruptcy, insolvency, moratorium, reorganization or other similar

                                            4

law affecting the enforcement of creditors' rights generally; (v) acquiesce in writing to any petition filed against it in an involuntary case under United States Bankruptcy Code (as now or hereafter in
effect) or under the comparable laws of any jurisdiction (foreign or domestic); (vi) issue a notice of bankruptcy or winding down of its operations or issue a press release regarding
same; or (vii) take any action under the laws of any jurisdiction (foreign or domestic) analogous to any of the foregoing;

          (k)   a proceeding or case shall be commenced in respect of the Maker or any of its Subsidiaries, without its application or consent, in any court of competent jurisdiction, seeking: (i) the liquidation, reorganization,
moratorium, dissolution, winding up, or composition or readjustment of its debts; (ii) the appointment of a trustee, receiver, custodian, liquidator or the like of it or of all or any
substantial part of its assets in connection with the liquidation or dissolution of the Maker or any of its Subsidiaries; or (iii) similar
relief in respect of it under any law providing for the relief of debtors, and such proceeding or case described in clause (i), (ii) or (iii) shall continue undismissed, or unstayed and in
effect, for a period of forty-five (45) days or any order for relief shall be entered in an involuntary case under United States Bankruptcy Code (as now or hereafter in effect) or under
the comparable laws of any jurisdiction (foreign or domestic) against the Maker or any of its Subsidiaries or action under the
laws of any jurisdiction (foreign or domestic) analogous to any of the foregoing shall be taken with respect to the Maker or any of its Subsidiaries and shall continue undismissed, or unstayed and in effect for a period of forty-five (45) days;

          (l)   one or more final judgments or orders for the payment of money aggregating in excess of $1,000,000 (or its equivalent in the relevant currency of
payment) are rendered against one or more of the Company and its Subsidiaries;

          (m)   the failure of the Maker to instruct its transfer agent to remove any legends from shares of Common
Stock and issue such unlegended certificates to the Holder within three (3) Trading Days of the Holder's request so long
as the Holder has provided reasonable assurances to the Maker that such shares of Common Stock can be sold pursuant to
Rule 144 or any other applicable exemption;

          (n)   the Maker's shares of Common Stock are no longer publicly traded or cease to be listed on the Trading Market or, after the six month anniversary of the
Issuance Date, any Investor Shares may not be immediately resold under Rule 144 without restriction on the number of shares to be sold or manner of sale, unless such Investor
Shares have been registered for resale under the 1933 Act and may be sold without restriction;

          (o)   the Maker consummates a "going private" transaction and as a result the Common
Stock is no longer registered under Sections 12(b) or 12(g) of the 1934 Act;

          (p)   there shall be any SEC or judicial stop trade order or trading suspension stop-order or any restriction in place with the transfer agent
for the Common Stock restricting the trading of such Common Stock; 

                                            5

          (q)   the Depository Trust Company places any restrictions on transactions in the Common Stock or the Common Stock is no longer tradeable through the
Depository Trust Company Fast Automated Securities Transfer program;

          (r)   the Company's Market Capitalization is below $20 million for fifteen (15) consecutive Trading Days; or

          (s)   the occurrence of a Material Adverse Effect in respect of the Maker, or the Maker and its
Subsidiaries taken as a whole.

For the avoidance of doubt, any default pursuant to clause (i) above shall not be subject to any cure periods pursuant to the instrument governing such
Indebtedness or this Note.

      2.2    Remedies Upon an Event of Default.

          (a)   Upon the occurrence of any Event of Default that has not been remedied within (i) two (2) Business Days for an Event of Default occurring by the
Company's failure to comply with Section 7.1(c) of the Purchase Agreement or Section 3.2 of this Note, or (ii) fifteen (15) Business Days for all other Events of
Default, provided, however, that there shall be no cure period for an Event of Default described in Section 2.1(i),  2.1(j) or 2.1(k), the Maker
shall be obligated to pay to the Holder the Mandatory Default Amount, which Mandatory Default Amount shall be earned by the Holder on the date the Event of Default giving rise
thereto occurs and shall be due and payable on the earlier to occur of the Maturity Date, upon conversion, redemption or prepayment of this Note or the date on which all amounts
owing hereunder have been accelerated in accordance with the terms hereof.

          (b)   Upon the occurrence of any Event of Default, the Maker shall, as promptly as possible but in any event within two (2) Business Days of a senior officer of the Maker obtaining actual knowledge of the occurrence of such Event of Default, notify the
Holder of the occurrence of such Event of Default, describing the event or factual situation giving rise to the Event of Default and specifying the relevant subsection or subsections of
Section 2.1 hereof under which such Event of Default has occurred.

          (c)   Upon the occurrence and during the continuance of an Event of Default, the Holder may at any time at its option declare the Mandatory Default Amount
due and payable, and thereupon, the same shall be accelerated and so due and payable, without presentment, demand, protest, or notice (other than the Holder's election to
declare such acceleration), all of which are hereby expressly unconditionally and irrevocably waived by the Maker; provided, however, that (x) upon the occurrence of an
Event of Default described above, the Holder, in its sole and absolute discretion, may: (a) from time-to-time demand that all or a portion of the Outstanding Principal Amount be
converted into shares of Common Stock at the then-current Conversion Price; or (b) exercise or otherwise enforce any one or
more of the Holder's rights, powers, privileges, remedies and interests under this Note, the Purchase Agreement, the other Transaction Documents or applicable law and (y) upon
the occurrence of an Event of Default described in Section 2.1(k) above, the Mandatory Default Amount shall become immediately due and payable without presentment, demand, protest or other notice of any

                                            6

kind, all of which are hereby waived by the Maker. No course of delay on the part of the Holder shall operate as a waiver thereof or otherwise
prejudice the rights of the Holder. No remedy conferred hereby shall be exclusive of any other remedy referred to herein or now or hereafter available at law, in equity, by statute or
otherwise. Upon the payment in full of all amounts owing hereunder, the Holder shall promptly surrender this Note to or as directed by the Maker.

ARTICLE 3

      3.1    Conversion.

          (a)   Conversion. At any time following the day that is six months from the Issuance Date, subject to Section
3.3, this Note shall be convertible (in whole or in part), at the option of the Holder, into such number of fully paid and non-assessable shares of Common Stock as is determined by dividing (x) that portion of the Outstanding Principal Amount that the Holder elects to convert
(the "Conversion Amount") by (y) the Conversion Price then in effect on the date on which the Holder delivers a notice of conversion, in substantially the form
attached hereto as Exhibit B (the "Conversion Notice"), in accordance with Section 5.1 to the Maker. The Holder shall deliver this Note to the
Maker at the address designated in the Purchase Agreement at such time that this Note is fully converted. With respect to partial conversions of this Note, the Maker shall keep
written records of the amount of this Note converted as of the date of such conversion (each, a "Conversion Date").

          (b)   Conversion Price. The "Conversion Price" means $1.60, and shall be subject to adjustment as provided herein.

      3.2    Delivery of Conversion Shares.  As soon as practicable after the occurrence of any
event requiring the issuance of shares of Common Stock issuable upon conversion of this Note ("Conversion Shares"), and in any event within two (2) Trading
Days thereafter (such date, the "Share Delivery Date"), the Maker shall, at its expense, cause to be issued in the name of and delivered to the Holder, or as the
Holder may direct, a certificate or certificates evidencing the number of fully paid and nonassessable shares of Common Stock to which the Holder shall be entitled, in such
denominations as may be requested by the Holder, which certificate or certificates shall be free of restrictive and trading legends, except for any such legends as may be required
under the Securities Act.  In lieu of delivering physical certificates for the shares of Common Stock issuable upon the occurrence of any event requiring the issuance of Conversion
Shares in accordance with this Note, provided the Company's transfer agent is participating in the Depository Trust Company ("DTC") Fast Automated
Securities Transfer program or a similar program, upon request of the Holder, the Company shall cause its transfer agent to electronically transmit such Conversion Shares so
issuable to the Holder (or its designee), by crediting the account of the Holder's (or such designee's) broker with DTC through its Deposit and Withdrawal At Custodian
("DWAC") system (provided that the same time periods herein as for stock certificates shall apply) as instructed by the Holder (or its designee); provided, that such
issuance shall only be made through DTC's DWAC system if such Conversion Shares will be issued free of restrictive legends. 

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      3.3    Ownership Cap. Notwithstanding anything to the contrary contained herein, the Holder shall not be entitled to receive shares representing
Equity Interests upon conversion of this Note to the extent (but only to the extent) that such exercise or receipt would cause the Holder Group (as defined below) to become, directly
or indirectly, a "beneficial owner" (within the meaning of Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder) of a number of Equity
Interests of a class that is registered under the 1934 Act which exceeds the Maximum Percentage (as defined below) of the Equity Interests of such class that are outstanding at
such time.  Any purported delivery of Equity Interests in connection with the conversion of this Note prior to the termination of this restriction in accordance herewith shall be void and
have no effect to the extent (but only to the extent) that such delivery would result in the Holder Group becoming the beneficial owner of more than the Maximum Percentage of the
Equity Interests of a class that is registered under the 1934 Act that is outstanding at such time. If any delivery of Equity Interests owed to the Holder following conversion of this
Note is not made, in whole or in part, as a result of this limitation, the Company's obligation to make such delivery shall not be extinguished and the Company shall deliver such
Equity Interests as promptly as practicable after the Holder gives notice to the Company that such delivery would not result in such limitation being triggered or upon termination of
the restriction in accordance with the terms hereof.  To the extent limitations contained in this Section 3.3 apply, the determination of whether this Note is convertible and of
which portion of this Note is convertible shall be the sole responsibility and in the sole determination of the Holder, and the submission of a notice of conversion shall be deemed to
constitute the Holder's determination that the issuance of the full number of Conversion Shares requested in the notice of conversion is permitted hereunder, and the Company shall
be entitled to rely on the representations and other information set forth in any Conversion Notice and shall not have any obligation to verify or confirm the accuracy of such
determination.  For purposes of this Section 3.3, (i) the term "Maximum Percentage" shall mean 4.99%; provided, that if at any time after the
date hereof the Holder Group beneficially owns in excess of 4.99% of any class of Equity Interests in the Company that is registered under the 1934 Act, then the Maximum
Percentage shall automatically increase to 9.99% so long as the Holder Group owns in excess of 4.99% of such class of Equity Interests (and shall, for the avoidance of doubt,
automatically decrease to 4.99% upon the Holder Group ceasing to own in excess of 4.99% of such class of Equity Interests); and (ii) the term "Holder Group"
shall mean the Holder plus any other Person with which the Holder is considered to be part of a group under Section 13 of the 1934
Act or with which the Holder otherwise files reports under Sections 13 and/or 16 of
the 1934 Act.  In determining the number of Equity Interests of a particular class outstanding at any point in time, the Holder may rely on the number of outstanding Equity Interests
of such class as reflected in (x) the Company's most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, as
the case may be, (y) a more recent public announcement by the Company or (z) a more recent notice by the Company or its transfer agent to the Holder setting forth the number of
Equity Interests of such class then outstanding.  For any reason at any time, upon written or oral request of the Holder, the Company shall, within one (1) Business Day of such request, confirm orally and in writing to the Holder the number of Equity Interests of any class then
outstanding. The provisions of this Section 3.3 shall be

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construed, corrected and implemented in a manner so as to effectuate the intended beneficial ownership limitation herein contained.  

      3.4    Adjustment of Conversion Price.

          (a)   Until the Note has been paid in full or converted in full, the Conversion Price shall be subject to adjustment from
time to time as follows (but shall not be increased, other than pursuant to Section 3.4(a)(i) hereof):

              (i)  
Adjustments for Stock Splits and Combinations.  If the Maker shall at any time or from time to time after the Closing Date (but whether before or after the Issuance Date) effect a split of the outstanding Common Stock, the applicable Conversion Price in effect immediately prior to the stock split shall be proportionately decreased. If
the Maker shall at any time or from time to time after the Closing Date (but whether before or after the Issuance Date),
combine the outstanding shares of Common Stock, the applicable Conversion Price in effect immediately prior to the
combination shall be proportionately increased. Any adjustments under this Section 3.4(a)(i) shall be effective at the close of business on the date the stock split or
combination occurs.

              (ii)  
Adjustments for Certain Dividends and Distributions.  If the Maker shall at any time or from time to time after the Closing Date (but whether before or after the Issuance Date) make or issue or set a record date for the determination of holders
of Common Stock entitled to receive a dividend or other distribution payable in shares of Common Stock, then, and in each event, the applicable Conversion Price in effect immediately prior to such event shall be
decreased as of the time of such issuance or, in the event such record date shall have been fixed, as of the close of business on such record date, by multiplying the applicable
Conversion Price then in effect by a fraction:

                  (1)  
the numerator of which shall be the total number of shares of Common Stock issued and
outstanding immediately prior to the time of such issuance or the close of business on such record date; and

                  (2)  
the denominator of which shall be the total number of shares of Common Stock issued and
outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of
Common Stock issuable in payment of such dividend or distribution.

              (iii)  
Adjustment for Other Dividends and Distributions.  If the Maker shall at any time or from time to time after the Closing Date (but whether before or after the Issuance Date) make or issue or set a record date for the determination of holders
of Common Stock entitled to receive a dividend or other distribution payable in other than shares of Common Stock, then, and in each event, an appropriate revision to the applicable Conversion Price shall be made and provision
shall be made (by adjustments of the Conversion Price or otherwise) so that the Holder of this Note shall receive upon conversions thereof, in addition to the number of shares of Common Stock receivable thereon, the number of securities of the Maker or other issuer (as applicable) or other property that it
would have received had this Note been converted into Common Stock in

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full (without regard to any conversion limitations
herein) on the date of such event and had thereafter, during the period from the date of such event to and including the Conversion Date, retained such securities (together with any
distributions payable thereon during such period) or assets, giving application to all adjustments called for during such period under this Section 3.4(a)(iii) with respect to
the rights of the holders of this Note; provided, however, that if such record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully
made on the date fixed therefor, the Conversion Price shall be adjusted pursuant to this paragraph as of the time of actual payment of such dividends or distributions.

              (iv)  
Adjustments for Reclassification, Exchange or Substitution.  If the Common Stock at any
time or from time to time after the Closing Date (but whether before or after the Issuance Date) shall be changed to the same
or different number of shares or other securities of any class or classes of stock or other property, whether by reclassification, exchange, substitution or otherwise (other than by way
of a stock split or combination of shares or stock dividends provided for in Sections 3.4(a)(i), (ii) and (iii) hereof, or a reorganization, merger, consolidation, or sale of assets
provided for in Section 3.4(a)(vii) hereof), then, and in each event, an appropriate revision to the Conversion Price shall be made and provisions shall be made (by
adjustments of the Conversion Price or otherwise) so that the Holder shall have the right thereafter to convert this Note into the kind and amount of shares of stock or other securities
or other property receivable upon reclassification, exchange, substitution or other change, by holders of the number of shares of Common Stock into which such Note might have been converted immediately prior to such reclassification, exchange,
substitution or other change, all subject to further adjustment as provided herein.

              (v)   [Reserved.]

              (vi)   [Reserved.]

              (vii)  
Consideration for Stock.  In case any shares of Common Stock or any Common Stock
Equivalents shall be issued or sold:

                  (1)  
in connection with any merger or consolidation in which the Maker is the surviving corporation (other than any consolidation or merger in which the
previously outstanding shares of Common Stock of the Maker shall be changed to or exchanged for the stock or other
securities of another corporation), the amount of consideration therefor shall be deemed to be the fair value, as determined reasonably and in good faith by the Board of Directors of
the Maker and approved by the Holder (which shall not be unreasonably withheld by the Holder), of such portion of the assets and business of the nonsurviving corporation as such
Board of Directors may determine to be attributable to such shares of Common
Stock, Convertible Securities, rights or warrants or options, as the case may be; or

                  (2)  
in the event of any consolidation or merger of the Maker in which the Maker is not the surviving corporation or in which the previously outstanding shares
of Common Stock of the Maker shall be changed into or exchanged for the stock or

                                            10

other securities of another corporation or
other property, or in the event of any sale of all or substantially all of the assets of the Maker for stock or other securities or other property of any corporation, the Maker shall be
deemed to have issued shares of its Common Stock, at a price per share equal to the valuation of the Maker's Common Stock based on the actual exchange ratio on which the transaction was predicated, as applicable, and the fair market
value on the date of such transaction of all such stock or securities or other property of the other corporation. If any such calculation results in adjustment of the applicable
Conversion Price, or the number of shares of Common Stock issuable upon conversion of the Note, the determination of the
applicable Conversion Price or the number of shares of Common Stock issuable upon conversion of the Note immediately prior
to such merger, consolidation or sale, shall be made after giving effect to such adjustment of the number of shares of Common
Stock issuable upon conversion of the Note. In the event Common Stock is issued with other shares or securities or other
assets of the Maker for consideration which covers both, the consideration computed as provided in this Section 3.4(a)(vii) shall be allocated among such securities and
assets as determined in good faith by the Board of Directors of the Maker, and approved by the Holder.

              (viii)  
Record Date.  In case the Maker shall take record of the holders of its Common Stock for
the purpose of entitling them to subscribe for or purchase Common Stock or Convertible Securities, then the
date of the issue or sale of the shares of Common Stock shall be deemed to be such record date.

          (b)   No Impairment.  The Maker shall not, by amendment of its Articles of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, 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 to be observed
or performed hereunder by the Maker, but will at all times in good faith assist in the carrying out of all the provisions of this Section 3.4 and in the taking of all such action as
may be necessary or appropriate in order to protect the conversion rights of the Holder against impairment. In the event the Holder shall elect to convert this Note as provided
herein, the Maker cannot refuse conversion based on any claim that the Holder or anyone associated or affiliated with the Holder has been engaged in any violation of law, violation
of an agreement to which the Holder is a party or for any reason whatsoever, unless, an injunction from a court, or notice, restraining and or adjoining conversion of this Note shall
have issued and the Maker posts a surety bond for the benefit of the Holder in an amount equal to one hundred fifty percent (150%) of the Principal Amount of the Note the Holder
has elected to convert, which bond shall remain in effect until the completion of arbitration/litigation of the dispute and the proceeds of which shall be payable to the Holder (as
liquidated damages) in the event it obtains judgment.

          (c)   Certificates as to Adjustments.  Upon occurrence of each adjustment or readjustment of the Conversion Price or number of shares of Common Stock issuable upon conversion of this Note pursuant to this Section 3.4, the Maker at its expense shall
promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Holder a certificate setting forth such adjustment and readjustment,
showing in detail the facts upon which such adjustment or readjustment is based. The Maker shall, upon written request of the Holder, at any time, furnish or cause to be

                                            11

furnished to the Holder a like certificate setting forth such adjustments and readjustments, the applicable Conversion Price in effect at the time, and the number of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received upon the conversion of
this Note. Notwithstanding the foregoing, the Maker shall not be obligated to deliver a certificate unless such certificate would reflect an increase or decrease of at least one percent
(1%) of such adjusted amount.

          (d)   Issue Taxes. The Maker shall pay any and all issue and other taxes, excluding federal, state or local income taxes, that may be payable in
respect of any issue or delivery of shares of Common Stock on conversion of this Note pursuant thereto; provided,
however, that the Maker shall not be obligated to pay any transfer taxes resulting from any transfer requested by the Holder in connection with any such conversion.

          (e)   Fractional Shares. No fractional shares of Common Stock shall be issued upon
conversion of this Note. In lieu of any fractional shares to which the Holder would otherwise be entitled, the Maker shall pay cash equal such fractional shares multiplied by the
Conversion Price then in effect.

          (f)   Reservation of Common Stock. The Maker shall at all times while this Note shall be outstanding, reserve and keep available out of its
authorized but unissued Common Stock, such number of shares of Common
Stock as shall from time to time be sufficient to effect the conversion of this Note (disregarding for this purpose any and all limitations of any kind on such conversion). The
Maker shall, from time to time, use all commercially reasonable efforts to increase the authorized number of shares of Common
Stock or take other effective action if at any time the unissued number of authorized shares shall not be sufficient to satisfy the Maker's obligations under this
Section 3.4(f).

          (g)   Regulatory Compliance.  If any shares of Common Stock to be reserved for the purpose
of conversion of this Note require registration or listing with or approval of any governmental authority, stock exchange or other regulatory body under any federal or state law or
regulation or otherwise before such shares may be validly issued or delivered upon conversion, the Maker shall, at its sole cost and expense, in good faith and as expeditiously as
possible, secure such registration, listing or approval, as the case may be.

          (h)   Effect of Events Prior to the Issuance Date.  If the Issuance Date of this Note is after the Closing Date, then, if the Conversion Price or any other right of the Holder of this Note would have been adjusted or modified by
operation of any provision of this Note had this Note been issued on the Closing Date, such adjustment or modification shall
be deemed to apply to this Note as of the Issuance Date as if this Note had been issued on the Closing
Date.

      3.5    Prepayment Following a Change of Control.

          (a)   Mechanics of Prepayment at Option of Holder in Connection with a Change of Control.  No sooner than fifteen (15) days
prior to entry into an agreement for a

                                            12

Change of Control nor later than ten (10) days prior to the consummation of a Change of Control, but not prior to the public announcement of such Change of
Control, the Maker shall deliver written notice ("Notice of Change of Control") to the Holder. At any time after receipt of a Notice of Change of Control (or, in the
event a Notice of Change of Control is not delivered at least ten (10) days prior to a Change of Control, at any time within ten (10) days prior to a Change of Control), the Holder may
require the Maker to prepay, effective immediately prior to the consummation of such Change of Control, an amount equal to 105% of the Outstanding Principal Amount(the
"COC Repayment Price"), by delivering written notice thereof ("Notice of Prepayment at Option of Holder Upon Change of Control") to the
Maker.

          (b)   Payment of COC Repayment Price.  Upon the Maker's receipt of a Notice(s) of Prepayment at Option of Holder Upon Change of Control from
the Holder, the Maker shall deliver the COC Repayment Price to the Holder immediately prior to the consummation of the Change of Control; provided that the Holder's original Note
shall have been so delivered to the Maker.

      3.6    Inability to Fully Convert.

          (a)   Holder's Option if Maker Cannot Fully Convert.  If, upon the Maker's receipt of a Conversion Notice or as otherwise required
under this Note, including with respect to repayment of principal in shares of Common Stock as permitted under this Note, the Maker cannot issue shares of Common Stock for any reason other than due to the fact that the issuance would result in the Holder holding in excess of the
Maximum Percentage of the Equity Interests of such class that are outstanding at such time, including, without limitation, because the Maker (x) does not have a sufficient number of
shares of Common Stock authorized and available or (y) is otherwise prohibited by applicable law or by the rules or
regulations of any stock exchange, interdealer quotation system or other self-regulatory organization with jurisdiction over the Maker or any of its securities from issuing all of the Common Stock which is to be issued to the Holder pursuant to this Note, then the Maker shall issue as many shares of Common Stock as it is able to issue and, with respect to the unconverted portion of this Note or with respect to any shares of
Common Stock not timely issued in accordance with this Note, the Holder, solely at Holder's option, can elect to:

              (i)  
require the Maker to prepay that portion of this Note for which the Maker is unable to issue Common Stock or for which shares of Common Stock were
not timely issued (the "Mandatory Prepayment") at a price equal to the number of shares of Common Stock that the Maker is unable to issue multiplied by the
VWAP on the date of the Conversion Notice (the "Mandatory Prepayment Price");

              (ii)  
void its Conversion Notice and retain or have returned, as the case may be, this Note that was to be converted pursuant to the Conversion Notice
(provided that the Holder's voiding its Conversion Notice shall not affect the Maker's obligations to make any payments which have accrued prior to the date of such notice);
or

                                            13

              (iii)  
defer issuance of the applicable Conversion Shares until such time as the Maker can legally issue such shares; provided, that the Principal Amount
underlying such Conversion Shares shall remain outstanding until the delivery of such Conversion Shares; provided, further, that if the Holder elects to defer the issuance of the
Conversion Shares, it may exercise its rights under either clause (i) or (ii) above at any time prior to the issuance of the Conversion Shares upon two (2) Business Days' notice to the
Maker. 

          (b)   Mechanics of Fulfilling Holder's Election.  The Maker shall immediately send to the Holder, upon receipt of a Conversion Notice from the
Holder, which cannot be fully satisfied as described in Section 3.6(a) above, a notice of the Maker's inability to fully satisfy the Conversion Notice (the "Inability to
Fully Convert Notice").  Such Inability to Fully Convert Notice shall indicate (i) the reason why the Maker is unable to fully satisfy the Holder's Conversion Notice; and (ii)
the amount of this Note which cannot be converted. The Holder shall notify the Maker of its election pursuant to Section 3.6(a) above by delivering written notice to the
Maker ("Notice in Response to Inability to Convert"). 

          (c)   Payment of Mandatory Prepayment Price.  If the Holder shall elect to have its Note prepaid pursuant to Section 3.6(a)(i) above, the
Maker shall pay the Mandatory Prepayment Price to the Holder within five (5) Business Days of the Maker's receipt of the Holder's Notice in Response to Inability to Convert;
provided that prior to the Maker's receipt of the Holder's Notice in Response to Inability to Convert the Maker has not delivered a notice to the Holder stating, to the satisfaction of the
Holder, that the event or condition resulting in the Mandatory Prepayment has been cured and all Conversion Shares issuable to the Holder can and will be delivered to the Holder in
accordance with the terms of this Note. If the Maker shall fail to pay the applicable Mandatory Prepayment Price to the Holder on the date that is one (1) Business Day following the Maker's receipt of the Holder's Notice in Response to Inability to Convert, in addition to any remedy
the Holder may have under this Note and the Purchase Agreement, such unpaid amount shall bear interest at the rate of two percent (2%) per month (prorated for partial months)
until paid in full. Until the full Mandatory Prepayment Price is paid in full to the Holder, the Holder may (i) void the Mandatory Prepayment with respect to that portion of the Note for
which the full Mandatory Prepayment Price has not been paid and (ii) receive back such Note.

          (d)   No Rights as Stockholder.  Nothing contained in this Note shall be construed as conferring upon the Holder, prior to the conversion of this Note,
the right to vote or to receive dividends or to consent or to receive notice as a stockholder in respect of any meeting of stockholders for the election of directors of the Maker or of
any other matter, or any other rights as a stockholder of the Maker.

      3.7    Compensation for Buy-In on Failure to Timely Deliver Conversion Shares.  In addition to any other rights available to the Holder, if the
Company fails to cause its transfer agent to transmit to the Holder Conversion Shares pursuant to a conversion on or before the Share Delivery Date, and if after such date the
Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder's brokerage firm otherwise purchases,

                                            14

shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Conversion Shares which the Holder anticipated receiving upon such conversion (a "Buy-In"), then the Company shall
(a) pay in cash to the Holder the amount, if any, by which (x) the Holder's total purchase price (including brokerage commissions, if any) for the shares of Common Stock so
purchased exceeds (y) the amount obtained by multiplying (1) the number of Conversion Shares that the Company was required to deliver to the Holder in connection with the
conversion at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (b) at the option of the Holder, either reinstate the portion of
the Note and equivalent number of Conversion Shares for which such conversion was not honored (in which case such conversion shall be deemed rescinded) or deliver to the
Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its conversion and delivery obligations hereunder. For example,
if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted conversion of shares of Common Stock with an
aggregate sale price giving rise to such purchase obligation of $10,000, under clause (a) of the immediately preceding sentence the Company shall be required to pay the Holder
$1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and evidence of the amount of such loss. Nothing
herein shall limit a Holder's right to pursue a decree of specific performance and/or injunctive relief with respect to the Company's failure to timely deliver shares of Common Stock
upon conversion of the Note as required pursuant to the terms hereof.

ARTICLE 4

      4.1    Covenants.  For so long as any Note is outstanding, without the prior written consent of the Holder:

          (a)   Compliance with Transaction Documents.  The Maker shall, and shall cause its Subsidiaries to, comply with its obligations under this Note and the other Transaction Documents.

          (b)   Payment of Taxes, Etc.  The Maker shall, and shall cause each of its Subsidiaries to,
promptly pay and discharge, or cause to be paid and discharged, when due and payable, all lawful taxes, assessments and governmental charges or levies imposed upon the
income, profits, property or business of the Maker and the Subsidiaries, except for such failures to pay that, individually or
in the aggregate, have not had and would not reasonably be expected to have a Material Adverse Effect;
provided, however , that any such tax, assessment, charge or levy need not be paid if the validity thereof shall currently be contested in good faith by appropriate proceedings and if
the Maker or such Subsidiaries shall have set aside on its books reserves with respect thereto in accordance with generally
accepted accounting principles, and provided, further, that the Maker and such Subsidiaries will pay all such taxes,
assessments, charges or levies forthwith upon the commencement of proceedings to foreclose any lien which may have attached as security therefor.

          (c)   Corporate Existence.  The Maker shall, and shall cause each of its Subsidiaries to,
maintain in full force and effect its corporate existence, rights and franchises (other than the existence, rights and franchises of the Subsidiaries of the Maker

                                            15

that the board of directors of the Maker determine are no longer necessary or useful to the operation of the Maker's business) and all licenses and other rights to use property owned or possessed by
it and reasonably deemed to be necessary to the conduct of its business.

          (d)   Investment Company Act.  The Maker shall conduct its businesses in a manner so that it will not become subject to, or
required to be registered under, the Investment Company Act of 1940, as amended.

          (e)   Sale of Collateral; Liens.  From the date hereof until the full release of the security interest in the Collateral, (i) the Maker
shall not sell, lease, transfer or otherwise dispose of any of the Collateral, or attempt or contract to do so, other than (x) sales of inventory or (y) licenses of intellectual property entered into, in each
case, in the ordinary course of business consistent with past practices; and (ii) the Maker shall not, directly or indirectly, create, permit or suffer to exist, and shall defend the
Collateral against and take such other action as is necessary to remove, any lien, security interest or other encumbrance on the Collateral (except for the pledge, assignment and
security interest created under the Security Agreement and Permitted Liens (as defined in the Security Agreement)).

          (f)   Prohibited Transactions.  The Company hereby covenants and agrees not to enter into any Prohibited Transactions until
thirty (30) days after such time as this Note has been converted into Conversion Shares or repaid in full.

          (g)  Repayment of This Note.  If the Company issues any debt, including any subordinated debt or convertible
debt (other than this Note), or any Preferred Stock, unless otherwise agreed in writing by the Holder, the Company will immediately utilize the proceeds of such issuance to repay this Note, and if the Company issues
any Equity Interests other than Exempted Securities, unless otherwise agreed to in writing by the Holder, the Company will direct ten percent (10%) of the proceeds from such
issuance, excluding offering costs or other expenses, to repay this Note.

      4.2    Set-Off.  This Note shall be subject to the set-off provisions set forth in the Purchase Agreement.

ARTICLE 5

      5.1    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 email at the
email address specified in this Section prior to 5:00 p.m. (New York time) on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via email at the email address
specified in this Section on a day that is not a Business Day or later than 5:00 p.m. (New York time) on any date and
earlier than 11:59 p.m. (New York time) on such date, (c) the Business Day following the date of mailing, if sent by U.S.
nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The addresses for such notices and
communications shall be as set forth in the Purchase Agreement.

                                            16

      5.2    Governing Law.  This Agreement shall be governed by and construed in accordance with the Laws
of the State of New York, without reference to principles of conflict of laws or choice of laws. 

      5.3    Headings.  The headings 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.  The language used in this Note will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will
be applied against any party. This Note shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Note.

      5.4    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, at law or in equity (including, without limitation, a decree of specific performance and/or other injunctive relief), no remedy
contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy and nothing herein shall limit the Holder's right to pursue actual damages for
any failure by the Maker to comply with the terms of this Note. 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 thereof and shall not, except as expressly provided herein, be subject to any other obligation of the Maker (or the
performance thereof). The Maker acknowledges that a breach by it of its obligations hereunder will cause irreparable and material harm to the Holder and that the remedy at law for
any such breach would be inadequate. Therefore, the Maker agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other
available rights and remedies, at law or in equity, to equitable relief, including but not limited to an injunction restraining any such breach or threatened breach, without the necessity
of showing economic loss and without any bond or other security being required.

      5.5    Enforcement Expenses.  The Maker agrees to pay all costs and expenses of enforcement of this Note, including, without limitation, reasonable
attorneys' fees and expenses.

      5.6    Binding Effect.  The obligations of the Maker and the Holder set forth herein shall be binding upon the successors and assigns of each such
party, whether or not such successors or assigns are permitted by the terms herein.

      5.7    Amendments; Waivers.  No provision of this Note may be waived or amended except in a written instrument signed by the Company and the
Holder.  No waiver of any default with respect to any provision, condition or requirement of this Note 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 either party to exercise any right
hereunder in any manner impair the exercise of any such right.

                                            17

      5.8    Compliance with Securities Laws.  The Holder of this Note acknowledges that this Note is being acquired solely for the Holder's own account
and not as a nominee for any other party, and for investment, and that the Holder shall not offer, sell or otherwise dispose of this Note in violation of securities laws. This Note, the
Conversion Shares and any Note issued in substitution or replacement therefor shall be stamped or imprinted with a legend in substantially the following form:

"NEITHER THIS NOTE NOR THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE 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." 

      5.9    Jurisdiction; Venue.  Any action, proceeding or claim arising out of, or relating in any way to this Agreement shall be brought and enforced in
the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of
New York.  The Company and the Holder irrevocably submit to the jurisdiction of such courts, which jurisdiction shall be exclusive, and hereby waive any objection to such exclusive
jurisdiction or that such courts represent an inconvenient forum.  The prevailing party in any such action shall be entitled to recover its reasonable and
documented attorneys' fees and out-of-pocket expenses relating to such action or proceeding.

      5.10    Parties in Interest.  This Note shall be binding upon, inure to the benefit of and be enforceable by the Maker, the Holder and their respective
successors and permitted assigns.

      5.11    Failure or Indulgence Not Waiver.  No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or
privilege.

      5.12   Maker Waivers.  Except as otherwise specifically provided herein, the Maker and all others that may become liable for all or any part of the
obligations evidenced by this Note, hereby waive presentment, demand, notice of nonpayment, protest and all other

                                            18

demands' and notices in connection with the delivery, acceptance, performance and enforcement of this Note, and do hereby consent to any number of renewals of extensions of the time or payment hereof and agree that any such
renewals or extensions may be made without notice to any such persons and without affecting their liability herein and do further consent to the release of any person liable hereon,
all without affecting the liability of the other persons, firms or Maker liable for the payment of this Note, AND DO HEREBY WAIVE TRIAL BY JURY.

          (a)   No delay or omission on the part of the Holder in exercising its rights under this Note, or course of conduct relating hereto,
shall operate as a waiver of such rights or any other right of the Holder, nor shall any waiver by the Holder of any such right or rights on any one occasion be deemed a waiver of the same right or rights on any
future occasion.

          (b)   THE MAKER ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A COMMERCIAL TRANSACTION, AND TO THE
EXTENT ALLOWED BY APPLICABLE LAW, HEREBY WAIVES ITS RIGHT TO NOTICE AND HEARING WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE
HOLDER OR ITS SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.

      5.13    Definitions. Capitalized terms used herein and not defined shall have the meanings set forth in the Purchase Agreement. For the purposes
hereof, the following terms shall have the following meanings:

          (a)   "Convertible Securities" means any securities convertible into or exercisable
or exchangeable for, directly or indirectly, Common Stock.

          (b)   "Common Stock Equivalents" means any rights or warrants or options to purchase any Common Stock or Convertible Securities,
other than rights or warrants or options to purchase any Common Stock or Convertible Securities granted or issued under any Equity Plan.

          (c)   "Indebtedness" means: (a) all obligations for borrowed money; (b) all obligations evidenced by bonds, debentures, notes, or other
similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, current swap agreements, interest rate hedging agreements,
interest rate swaps, or other financial products; (c) all capital lease obligations that exceed $150,000 in the aggregate in any fiscal year; (d) all obligations or liabilities secured by a
lien or encumbrance on any asset of the Maker, irrespective of whether such obligation or liability is assumed; (e) all obligations for the deferred purchase price of assets, together
with trade debt and other accounts payable that exceed $150,000 in the aggregate in any fiscal year; (f) all synthetic leases; (g) 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; (h) trade debt; and (i)
endorsements for collection or deposit.

                                            19

          (d)    "Mandatory Default Amount" means an amount equal to one hundred twenty percent
(120%) of the Outstanding Principal Amount of this Note on the date on which the first Event of Default has occurred hereunder.

          (e)   "Market Capitalization" means, as of any date of determination, the product of (a) the number of issued and outstanding shares of
Common Stock as of such date (exclusive of any shares of common stock issuable upon the exercise of options or warrants or conversion of any convertible securities), multiplied
by (b) the closing price of the Common Stock on the Trading Market on the date of determination.

          (f)   "Outstanding Principal Amount" means, at the time of determination, the Principal Amount outstanding after giving effect to any
adjustments, conversions or prepayments pursuant to the terms hereof.

          (g)    "Trading Day" means a day on which the Common Stock is traded on a Trading Market. 

          (h)   "VWAP" means, as of 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 one share of Common Stock trading in the ordinary course of business on the applicable
Trading Price for such date (or the nearest preceding date) on such Trading Market as reported by Bloomberg Financial L.P.; (b) if the Common Stock is not then listed on a Trading
Market and if the Common Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board, the volume weighted average price of one share of Common Stock
for such date (or the nearest preceding date) on the OTC Bulletin Board, as reported by Bloomberg Financial L.P.; (c) if the Common Stock is not then listed or quoted on the OTC
Bulletin Board and if prices for the Common Stock is then reported in the "Pink Sheets" published by the Pink OTC Markets Inc. (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price of one share of Common Stock so reported, as reported by Bloomberg Financial L.P.; or (d) in all other
cases, the fair market value of one share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the
Company.

[Signature Pages Follow]

   

                                            20

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

By:___________________________________________

     Name:  Raj Mehra, Ph.D.

   Title:    President and Chief Executive Officer

   

   

   

EXHIBIT B

FORM OF CONVERSION NOTICE

(To be Executed by the Registered Holder in
order to Convert the Note)

The undersigned hereby irrevocably elects to convert $ ________________ of the principal amount of the above Note No. ___ into shares of Common Stock of Seelos Therapeutics, Inc. (the "Maker") according to the conditions hereof, as of the date written below. 

Date of Conversion:

Conversion Price:

Number of shares of Common Stock beneficially owned or deemed beneficially owned by the Holder on the Conversion
Date:

 

[HOLDER]

 

 

 

By: _______________________________

    Name:

    Title:

Address:December 17, 2020 8-K Exhibit 10.1

Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

      This Securities Purchase Agreement (as amended, supplemented, restated and/or modified from time to time, this "Agreement") is entered
into as of December 11, 2020, by and between Seelos Therapeutics, Inc., a Nevada corporation (the "Company"), and Lind Global Asset Management II, LLC, a
Delaware limited liability company (the "Investor").

BACKGROUND

      A.The board of directors (the "Board of Directors") of the Company has authorized the issuance to
Investor of the Note (as defined below) and the Closing Shares (as defined below).

      B.The Investor desires to purchase the Note and the Closing Shares on the terms and conditions set forth in this Agreement.

      C.Concurrently with the execution of this Agreement, the Company and the Investor will enter into a Security Agreement, substantially in the form
attached hereto as Exhibit A (the "Security Agreement"), pursuant to which the Company will grant a first priority security interest in
substantially all of its assets to secure the Company's obligations hereunder.

      NOW THEREFORE, in consideration of the foregoing recitals and the covenants and agreements set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

      1.    DEFINITIONS.  As used in this Agreement, the following terms shall have the following meanings specified or indicated below, and such
meanings shall be equally applicable to the singular and plural forms of such defined terms:

      "1933 Act" means the Securities Act of 1933, as amended.

      "1934 Act" means the Securities Exchange Act of 1934, as amended.

       "Acquisition" means the acquisition by the Company or any direct or indirect Subsidiary of the Company of a majority of the Equity
Interests or substantially all of the assets and business of any Person, whether by direct purchase of Equity Interests, asset purchase, merger, consolidation or like combination.

      "Affiliate" means a Person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control
with, the Person specified.

      "Agreement" has the meaning set forth in the preamble.

       "Board of Directors" has the meaning set forth in the recitals.

      "Business Day" means any day other than a Saturday, Sunday or any other day on which banks are permitted or required to be closed in
New York City.

      "Capital Stock" means the Common Stock, the Preferred Stock and any other classes of capital stock of the Company.

      "Change of Control" means, with respect to the Company, on or after the date of this Agreement:

	
(a)

	
 

	
                                  a change in the composition of the Board of Directors of the Company at a single shareholder meeting where a majority of the individuals that were
directors of the Company immediately prior to the start of such shareholder meeting are no longer directors at the conclusion of such meeting, without prior written consent of the Investor;

	
(b)

	
 

	
                                  a change, without prior written consent of the Investor, in the composition of the Board of Directors of the Company prior to the termination of this
Agreement where a majority of the individuals that were directors as of the date of this Agreement cease to be directors of the Company prior to the termination of this Agreement;
provided that any individual who becomes a director of the Company after the date of this Agreement who is elected to fill a vacancy by a majority of the Board of Directors of the
Company shall be deemed a member of the Board of Directors of the Company as of the date of this Agreement;

	
(c)

	
 

	
                                  other than a shareholder that holds such a position at the date of this Agreement, if a Person comes to have beneficial ownership, control or direction
over more than fifty percent (50%) of the voting rights attached to any class of voting securities of the Company; or

	
(d)

	
 

	
           the sale or other disposition by the Company or any of its Subsidiaries in a single transaction, or in a series of transactions, of all or substantially all of their respective assets.

      "Closing" has the meaning set forth in Section 2.2.

      "Closing Date" has the meaning set forth in Section 2.2.

      "Closing Shares" has the meaning set forth in Section 2.1.

      "Code" has the meaning set forth in Section 2.1.

      "Commitment Fee" means an amount equal to Two Hundred Seventy Five Thousand Dollars ($275,000).

      "Common Stock" means the common stock of the Company, par value $0.001 per share.

      "Company" has the meaning set forth in the preamble.

      "Conversion Shares" means the shares of Common Stock issuable upon the full or any partial conversion of the Note.

                                            2

       "Equity Interests" means and includes capital stock, membership interests and other similar equity securities, and shall also include
warrants or options to purchase capital stock, membership interests or other equity interests.

      "Event" means any event, change, development, effect, condition, circumstance, matter, occurrence or state of facts.

      "Event of Default" has the meaning set forth in Section 7.1.

      "Exempted Securities" means (a) shares of Common Stock, rights, warrants or options to purchase Common Stock or any securities convertible into, or
exercisable or exchangeable for, Common Stock issued in connection with any merger, Acquisition, business combination or strategic investment (including any joint venture,
marketing, distribution, collaboration, license, strategic alliance or partnership), or pursuant to any consulting agreement, advisory agreement or independent contractor agreement,
(b) equity securities issued by reason of a dividend, stock split, split-up or other distribution on shares of Common Stock, (c) shares of Common Stock, rights, warrants or
options to purchase Common Stock issued or restricted stock awards or restricted stock units granted to employees or directors of, or consultants or advisors to, the Company or
any of its Subsidiaries pursuant to a plan, agreement or arrangement approved by the Board of Directors ("Equity Plans"), (d) shares of Common Stock issued
upon the exercise of options or warrants, the settlement or vesting of restricted stock units or restricted stock awards, or shares of Common Stock issued upon the conversion or
exchange of any securities convertible into Common Stock, in each case provided that such issuance is pursuant to the terms of the applicable option or convertible security,
(e) Common Stock, options or other rights to purchase Common Stock or Common Stock issuable upon the exercise of options or upon the lapse of forfeiture restrictions on awards
made pursuant to any employee or director stock incentive or benefits plan, stock ownership plan (including shares of Common Stock withheld by the Company for the purpose of
paying on behalf of the holder thereof the exercise price of stock options or for paying taxes due as a result of such exercise or lapse of forfeiture restrictions) or dividend
reinvestment plan (but not Common Stock subject to a waiver to exceed plan limits in its dividend reinvestment plan) of the Company whether now in effect or hereafter
implemented, (f) Common Stock, stock options or other rights to purchase Common Stock or Common Stock issuable upon the exercise of options or upon the lapse of forfeiture
restrictions on awards made pursuant to any stock option exchange program of the Company, whether now in effect or hereafter implemented, (g) shares of Common Stock related
to the filing by the Company of any registration statement on Form S-8 or a successor form thereto relating to shares of Common Stock granted under any equity compensation plan
or employee stock purchase plan, or (h) equity incentive awards approved by the Board of Directors of the Company or the compensation committee thereof or the issuance of
Common Stock upon exercise thereof.

      "Form 8-K" has the meaning set forth in Section 5.10.

      "Funding Amount" means an amount equal to Ten Million Dollars ($10,000,000).

      "HSR Act" has the meaning set forth in Section 5.14.

      "Investor" has the meaning set forth in the preamble.

                                            3

      "Investor Group" shall mean the Investor plus any other Person with which the Investor is considered to be part of a group under Section
13 of the 1934 Act or with which the Investor otherwise files reports under Sections 13 and/or 16 of the 1934 Act.

      "Investor Party" has the meaning set forth in Section 5.11(a).

      "Investor Shares" means the Conversion Shares, the Closing Shares and any other shares issued or issuable to the Investor pursuant to
this Agreement or the Note.

      "IP Rights" has the meaning set forth in Section 3.10.

      "Law" means any law, rule, regulation, order, judgment or decree, including, without limitation, any federal and state securities Laws.

      "Legend Removal Date" shall have the meaning set forth in Section 5.1(c).

      "Losses" has the meaning set forth in Section 5.11(a).

      "Material Adverse Effect" means any material adverse effect on (i) the businesses, properties, assets,
prospects, operations, results of operations or financial condition of the Company, or the Company and the Subsidiaries, taken as a whole, or (ii) the ability of the Company to
consummate the transactions contemplated by this Agreement or to perform its obligations hereunder or under the Note; provided, however, that none of the following shall
be deemed either alone or in combination to constitute, and none of the following shall be taken into account in determining whether there has been or would be, a Material Adverse
Effect: (a) any adverse effect resulting from or arising out of general economic conditions; (b) any adverse effect resulting from or arising out of general conditions in the
industries in which the Company and the Subsidiaries operate; (c) any adverse effect resulting from any changes to applicable Law; or (d) any adverse effect resulting from or
arising out of any natural disaster or any acts of terrorism, sabotage, military action or war or any escalation or worsening thereof; provided, further, that any event,
occurrence, fact, condition or change referred to in clauses (a) through (d) immediately above shall be taken into account in determining whether a Material Adverse Effect has
occurred or could reasonably be expected to occur to the extent that such event, occurrence, fact, condition or change has a disproportionate effect on the Company and/or the
Subsidiaries compared to other participants in the industries in which the Company and the Subsidiaries operate.  

      "Maximum Percentage" means 4.99%; provided, that if at any time after the date hereof the Investor Group beneficially owns in
excess of 4.99% of any class of Equity Interests in the Company that is registered under the 1934 Act, then the Maximum Percentage shall automatically increase to 9.99% so long
as the Investor Group owns in excess of 4.99% of such class of Equity Interests (and shall, for the avoidance of doubt, automatically decrease to 4.99% upon the Investor Group
ceasing to own in excess of 4.99% of such class of Equity Interests).

      "Money Laundering Laws" has the meaning set forth in Section 3.25.

      "New Securities" means, collectively, equity securities of the Company, whether or not currently authorized, as well as rights, options, or
warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable for such equity
securities.

                                            4

      "Note" has the meaning set forth in Section 2.1.

      "Notice Termination Time" has the meaning set forth in Section 9.2.

      "OFAC" has the meaning set forth in Section 3.23.

      "Offer Notice" has the meaning set forth in Section 9.1.

      "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.

      "Preferred Stock" means the preferred stock of the Company, par value $0.001 per share.

       "Press Release" has the meaning set forth in Section 5.10.

      "Principal Amount" has the meaning set forth in Section 2.1.

      "Proceedings" has the meaning set forth in Section 3.6.

      "Prohibited Transaction" means a transaction with a third party or third parties in which the Company issues or sells (or arranges or
agrees to issue or sell):

      (a)any debt, equity or equity-linked securities (including options or warrants) that are convertible into, exchangeable or exercisable for, or include the
right to receive shares of the Company's Capital Stock:

         
         (i)at a conversion, repayment, exercise or exchange rate or other price that is based on, and/or varies with, a discount to the future trading prices of, or quotations for, shares of Common Stock; or

         
                 (ii)at a conversion, repayment, exercise or exchange rate or other price that is subject to being reset at some future date after the initial issuance of such
debt, equity or equity-linked security or upon the occurrence of specified or contingent events (other than warrants that may be repriced by the Company); or

      (b)any securities in a capital or debt raising transaction or series of related transactions which grant to an investor the right to receive additional
securities based upon future transactions of the Company on terms more favorable than those granted to such investor in such first transaction or series of related transactions; and
are deemed to include transactions generally referred to as at-the-market transactions (ATMs) or equity lines of credit and stand-by equity distribution agreements, and convertible
securities and loans having a similar effect; provided, however, that an ATM, equity line of credit or stand-by-equity distribution agreement shall not be deemed to be a Prohibited
Transaction if the Company only issues or sells securities in any such transaction prior to the date that is the six (6) month anniversary of the Closing Date, provided that if the
Company raises in excess of five million dollars ($5,000,000) in the aggregate in any such transactions, the Company will direct ten percent (10%) of the proceeds from such
transactions, excluding offering costs or other expenses, to the repay the Note.  Notwithstanding the foregoing,

                                            5

and for the avoidance of doubt, rights issuances, shareholder
purchase plans, Equity Plans, convertible securities, or issuances of Equity Interests, based on the trading price of the Common Stock on the Trading Market but each at a fixed
price per share, shall not be deemed to be a Prohibited Transaction.  

      "register," "registered" and "registration" refer to a registration made by preparing and filing a
Registration Statement or similar document in compliance with the 1933 Act (as defined below), and the declaration or ordering of effectiveness of such Registration Statement or
document.

      "Registration Statement" means any registration statement of the Company filed under the 1933 Act that covers the resale of any of the
Investor Shares pursuant to the provisions of this Agreement, including the prospectus and amendments and supplements to such Registration Statement, and including post-
effective amendments, all exhibits and all material incorporated by reference in such Registration Statement.

       "SEC" means the United States Securities and Exchange Commission.

      "SEC Documents" has the meaning set forth in Section 3.5(a).

      "Securities" means the Note and the Investor Shares.

       "Securities Termination Event" means either of the following has occurred:

      (a)trading in securities generally in the United States has been suspended or limited for a consecutive period of greater than three (3) Business Days;
or

      (b)a banking moratorium has been declared by the United States or the New York State authorities and is continuing for a consecutive period of greater
than three (3) Business Days; provided, however, for clarification, commercial banks in New York shall not be deemed to be subject to a banking moratorium due to
"stay at home", "shelter-in-place", "non-essential employee" or any other similar law, executive order or restriction 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 City of New York are open for use by customers.

      "Security Agreement" has the meaning set forth in the recitals.

      "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) or any swaps or other derivative transactions that would be equivalent to any sales or short position.

       "Stockholder Approval" shall mean the approval of the holders of a majority of the outstanding shares of Company's voting Common
Stock: (a) if and to the extent legally required, to amend the Company's Amended and Restated Articles of Incorporation, as amended, to increase the number of authorized shares
of Common Stock by at least the number of shares of Common Stock equal to the number of Shares issuable hereunder, or (b) to ratify and approve all of the

                                            6

transactions contemplated by the Transaction Documents, including the issuance of all of Investor Shares (as such term is defined in each of such documents) issued and potentially issuable to
the Investor thereunder, all as may be required by the applicable rules and regulations of the Trading Market (or any successor entity).

      "Subsequent Financing" has the meaning set forth in Section 9.1.

      "Subsidiaries" and "Subsidiary" have the meaning set forth in Section 3.4(b).

      "Trading Day" means a day on which the Common Stock is traded on a Trading Market. 

      "Trading Market" means whichever of the New York Stock Exchange, NYSE American, or the Nasdaq Stock Market (including the
Nasdaq Capital Market), on which the Common Stock is listed or quoted for trading on the date in question.

       "Transaction Documents" means this Agreement, the Note, the Security Agreement and any other documents or agreements executed
or delivered in connection with the transactions contemplated hereunder.

      "VWAP" means, as of 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 one share of Common Stock trading in the ordinary course of business on the applicable Trading
Price for such date (or the nearest preceding date) on such Trading Market as reported by Bloomberg Financial L.P.; (b) if the Common Stock is not then listed on a Trading Market
and if the Common Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board, the volume weighted average price of one share of Common Stock for
such date (or the nearest preceding date) on the OTC Bulletin Board, as reported by Bloomberg Financial L.P.; (c) if the Common Stock is not then listed or quoted on the OTC
Bulletin Board and if prices for the Common Stock is then reported in the "Pink Sheets" published by the Pink OTC Markets Inc. (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price of one share of Common Stock so reported, as reported by Bloomberg Financial L.P.; or (d) in all other
cases, the fair market value of one share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the
Company.

      2.    PURCHASE AND SALE OF THE NOTE AND THE CLOSING SHARES.

          2.1    Purchase and Sale of the Note and the Closing Shares.  Subject to the terms and conditions
set forth herein, at the Closing, the Company shall issue and sell to the Investor, and the Investor shall purchase from the Company, for the Funding Amount (a) a convertible promissory note, in the form
attached hereto as Exhibit B (the "Note"), in the principal amount of Twelve Million Dollars ($12,000,000) (the "Principal
Amount") and (b) 975,000 shares of Common Stock in payment of a due diligence fee (the "Closing Shares").  The Investor and the Company agree
that for U.S. federal income tax purposes and applicable state, local and non-U.S. tax purposes, the Funding Amount shall be allocable between the Note and the Closing Shares
based on the relative fair market values thereof. Neither the Investor nor the Company shall take any contrary position on any tax return, or in any audit, claim, investigation, inquiry
or proceeding in respect of taxes, unless otherwise required pursuant to a final determination within the meaning of Section 1313 of the Internal Revenue Code of 1986, as
amended (the "Code"), or any analogous provision of applicable state, local or non-U.S. law.

                                            7

          2.2    Closing.  The closing hereunder, including payment for and delivery of the Note and the
Closing Shares, shall take place remotely via the exchange of documents and signatures, no later than one (1) Business Day following the execution and delivery of this Agreement, subject to satisfaction or
waiver of the conditions set forth in Section 6, or at such other time and place as the Company and the Investor agree upon, orally or in writing (the
"Closing," and the date the Closing is completed being the "Closing Date").

          2.3    Commitment Fee.  At the Closing, the Company shall pay
to the Investor the Commitment Fee, in United States dollars and in immediately available funds. The Commitment Fee shall be paid by being offset against the Funding Amount payable by the
Investor at Closing.

          2.4    Prepayment Right.  As set forth in the
Note, in its sole discretion and upon giving the prior written notice set forth in the Note, the Company will have the right to pre-pay the Note in the following ways: (i) prior to the six (6) month
anniversary of the Issuance Date, the Company will have the right to pre-pay up to sixty-six and two thirds percent (662/3%) of the then-outstanding principal amount
of the Note at any time with no penalty or premium of any kind, or (ii) on or after the seven (7) month anniversary of the Issuance Date, the Company will have the right to pre-pay up
to the entire then-outstanding principal amount of the Note at any time with no penalty or premium of any kind, provided, that in the event that the Company elects to exercise
a prepayment right on or after the seven (7) month anniversary of the Issuance Date, the Investor will have the option to convert up to thirty-three and one third percent
(331/3%) of the amount the Company is pre-paying for any such prepayment, at a price per share equal to the Conversion Price (as such term is defined in the
Note).

          2.5    Senior Obligation.  As an inducement for the Investor to enter into this Agreement and to purchase the Note,
all obligations of the Company pursuant to this Agreement and the Note shall be secured by a first priority security interest in and lien upon substantially all of the assets of the Company, other than as
described in the Security Agreement.

      3.    REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  The Company represents and warrants to
the Investor and covenants with the Investor that, except as is set forth in the Disclosure Letter being delivered to the Investor as of the date hereof and as of the Closing Date, the
following representations and warranties are true and correct:

          3.1    Organization and Qualification.  The Company is a corporation duly organized and validly existing in good standing
under the Laws of the State of Nevada and has the requisite corporate power and authority to own its properties and to carry on its business as now being conducted.  The Company is duly qualified to do
business and is in good standing (if a good standing concept exists in such jurisdiction) in every jurisdiction in which the ownership of its property or the nature of the business
conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect.

                                            8

          3.2    Authorization; Enforcement; Compliance with Other Instruments. The Company has the requisite corporate power and
authority to execute the Transaction Documents, to issue and sell the Note pursuant hereto, and to perform its obligations under the Transaction Documents, including issuing the Investor Shares on the
terms set forth in this Agreement and the Note.  The execution and delivery of the Transaction Documents by the Company and the issuance and sale of the Securities pursuant
hereto, including without limitation the reservation of the Conversion Shares for future insuance, have been duly and validly authorized by the Company's Board of Directors and no
further consent or authorization is required by the Company, its Board of Directors, its stockholders or any other Person in connection therewith.  The Transaction Documents have
been duly and validly executed and delivered by the Company and constitute valid and binding obligations of the Company, enforceable against the Company in accordance with
their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar Laws relating to, or affecting generally, the enforcement of creditors' rights and remedies.

          3.3    No Conflicts.  The execution, delivery and performance of the Transaction Documents by the Company and the
issuance and sale of the Note and the issuance of the Closing Shares hereunder will not (a) conflict with or result in a violation of the Company's Amended and Restated Articles of Incorporation, as amended, or
Amended and Restated Bylaws, (b) conflict with, or constitute a material default (or an event which, with notice or lapse of time or both, would become a material default)
under, or give to others any right of termination, amendment, acceleration or cancellation of, any material agreement to which the Company or any of the Subsidiaries is a party, or
(c) subject to the making of the filings referred to in Section 5, violate in any material respect any Law or any rule or regulation of
the Trading Market applicable to the Company or any of the Subsidiaries or by which any of their properties or assets are bound or affected.  Assuming the accuracy of the Investor's
representations in Section 4 and subject to the making of the filings referred to in Section 5, (i) no approval or authorization will be required from any
governmental authority or agency, regulatory or self-regulatory agency or other third party (including the Trading Market) in connection with the issuance of the Note and the Closing
Shares and the other transactions contemplated by this Agreement (including the issuance of the Conversion Shares upon conversion of the Note) and (ii) the issuance of the
Note and the Closing Shares, and the issuance of the Conversion Shares upon the conversion of the Note will be exempt from the registration and qualification requirements under
the 1933 Act and all applicable state securities Laws.

          3.4    Capitalization and Subsidiaries.

              (a)   The authorized Capital Stock of the Company consists of: (i) 120,000,000 shares of
Common Stock and (ii) 10,000,000 shares of Preferred Stock. As of the close of business on September 30, 2020: (A) 53,270,044 shares of Common Stock were issued and outstanding and (B) no shares
of Preferred Stock were issued and outstanding; and since September 30, 2020, and through the date of this Agreement, the Company has issued 153,628 additional shares of
Common Stock and no additional shares of Preferred Stock. As of November 23, 2020, (i) an aggregate of 3,000 shares of Common Stock are issuable upon exercise of options
granted under the NexMed, Inc. 2006 Stock Incentive Plan, of which 3,000 shares were exercisable as of September 30, 2020 and no additional shares are reserved for future
issuance thereunder, (ii) an aggregate of 8,038,582 shares of Common Stock are issuable upon exercise of options granted

                                            9

under the Company's Amended and Restated 2012
Stock Long Term Incentive Plan, of which 249,971 shares were exercisable as of September 30, 2020, and 7,788,611 additional shares are reserved for future issuance thereunder,
(iii) an aggregate of 30,816 shares of Common Stock are issuable upon exercise of options granted under the Company's 2016 Equity Incentive Plan, of which 30,816 shares were
exercisable as of September 30, 2020 and no additional shares are reserved for future issuance thereunder, (iv) an aggregate of 167,285 shares of Common Stock are issuable
upon exercise of options granted under the Company's 2019 Inducement Plan, of which 28,375 shares were exercisable as of September 30, 2020, and 832,715 additional shares
are reserved for future issuance thereunder, (v) 10,219,821 shares of Common Stock are reserved for issuance upon exercise of outstanding warrants with exercise prices ranging
from $0.2957 to $492.00 per share, and (vi) 1,000,000 shares of Common Stock are available for future issuance under the Company's 2020 Employee Stock Purchase Plan. The
Closing Shares, when issued pursuant to Section 2.1 of this Agreement will be been validly issued, fully paid
non-assessable and free from all taxes, liens and charges with respect to the issuance thereof. The Company has duly reserved up to 8,000,000 shares of Common Stock for
issuance upon conversion of the Note. The Conversion Shares, when issued upon conversion of the Note in accordance with its terms will be validly issued, fully paid and
non-assessable and free from all taxes, liens and charges with respect to the issuance thereof. No shares of the Company's Capital Stock are subject to preemptive rights or any other
similar rights or any liens or encumbrances suffered or permitted by the Company. The Company's Amended and Restated Articles of Incorporation, as amended, and Amended and Restated Bylaws on file on the SEC's EDGAR website are true and correct copies of the Company's Amended and
Restated Articles of Incorporation, as amended, and Amended and Restated Bylaws as in effect as of the date hereof.  The Company is not in violation of any provision of its
Amended and Restated Articles of Incorporation, as amended, or Amended and Restated Bylaws.

              (b)   Schedule 3.4(b) lists each direct and indirect subsidiary of the
Company (each, a "Subsidiary" 'and collectively, the "Subsidiaries"). The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary.
No Subsidiary has any outstanding stock options, warrants or other instruments pursuant to which such Subsidiary may at any time or under any circumstances be obligated to issue any shares of its
capital stock or other Equity Interests.  Each Subsidiary is duly organized and validly existing in good standing under the laws of its jurisdiction of formation (if a good standing
concept exists in such jurisdiction) and has all requisite power and authority to own its properties and to carry on its business as now being conducted.

              (c)   Neither the Company nor any Subsidiary is bound by any agreement or arrangement pursuant to which it is
obligated to register the sale of any securities under the 1933 Act.  There are no outstanding securities of the Company or any of the Subsidiaries which 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 or purchase any security of the Company or
any Subsidiary.  There are no outstanding securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Note or the Investor
Shares.  Neither the Company nor any Subsidiary has any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement.

                                            10

              (d)   The issuance and sale of any of the Securities will not obligate the Company to issue shares of Common Stock or other
securities, or to satisfy any related contractual obligations, to any other Person and will not result in the adjustment of the exercise, conversion, exchange, or reset price of any outstanding securities.

          3.5    SEC Documents; Financial Statements.

              (a)   As of the date hereof, the Company has filed all reports, schedules, forms, statements and
other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act for the two years preceding the date hereof (or such shorter period as the Company was required by
law or regulation to file such material) (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and
documents incorporated by reference therein being hereinafter referred to as the "SEC Documents"). As of their respective filing dates, the SEC Documents complied in
all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the
SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

              (b)   As of their respective dates, the financial statements of the Company included in the SEC Documents complied
as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with
generally accepted accounting principles, and audited by a firm that is a member a member of the Public Companies
Accounting Oversight Board consistently applied, during the periods involved (except as may be otherwise indicated in such financial statements or the notes thereto, or, in the
case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the
consolidated financial position of the Company as of the dates thereof and the consolidated results of its operations and consolidated cash flows for the periods then ended (subject,
in the case of unaudited statements, to normal year-end audit adjustments).  

              (c)   The Company and each of the Subsidiaries maintain a system of internal accounting controls sufficient 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 generally accepted accounting principles and to maintain asset accountability, (iii) reasonable controls to safeguard assets are in place 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.

          3.6    Litigation and Regulatory Proceedings.  There are no material actions, causes of
action, suits, claims, proceedings, inquiries or investigations (collectively, "Proceedings") before or by any court, public board, government agency, self-regulatory
organization or body pending or, to the actual knowledge, after reasonable inquiry, of the executive officers of Company or any of the Subsidiaries, threatened against or affecting the Company or

                                            11

any of the Subsidiaries, the Common Stock or any other class of issued and outstanding shares of the Company's Capital Stock, or any of the Company's or the
Subsidiaries' officers or directors in their capacities as such and, to the actual knowledge, after reasonable inquiry, of the executive officers of the
Company, there is no reason to believe that there is any basis for any such Proceeding.

          3.7    No Undisclosed Events, Liabilities or Developments. No event, development or circumstance has occurred or exists, or to the actual
knowledge, after reasonable inquiry, of the executive officers of the Company is reasonably anticipated to occur or exist that (a) would reasonably
be anticipated to have a Material Adverse Effect or (b) would be required to be disclosed by the Company under applicable securities Laws on a registration statement filed with the
SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly announced.

          3.8    Compliance with Law.  The Company and each of the Subsidiaries have conducted and are conducting their
respective businesses in compliance in all material respects with all applicable Laws and are in compliance in all material respects with the rules
and regulations of the Trading Market. The Company has taken no action designed to, or likely to have the effect of, delisting the Common Stock from the Trading Market, nor
has the Company received any notification that the Trading Market is currently contemplating terminating such listing.

          3.9    Employee Relations.  Neither the Company nor any Subsidiary is involved in any union labor dispute nor, to the actual
knowledge, after reasonable inquiry, of the Company, is any such dispute threatened. Neither the Company nor any Subsidiary is a party to any collective bargaining agreement. No executive officer
(as defined in Rule 501(f) of the 1933 Act) has notified the Company that such officer intends to leave the Company's employ or otherwise terminate such officer's employment with
the Company.

          3.10    Intellectual Property Rights.  The Company and each Subsidiary owns or possesses adequate rights or
licenses to use all trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals,
governmental authorizations, trade secrets and other intellectual property rights (collectively, "IP Rights") necessary to conduct their respective businesses as now
conducted.  Neither the Company nor any Subsidiary is infringing, misappropriating or otherwise violating any IP Rights of any other Person.  No claim has been asserted, and no Proceeding is pending, against the Company or any Subsidiary alleging that the Company or any
Subsidiary is infringing, misappropriating or otherwise violating the IP Rights of any other Person, and, to the Company's actual knowledge, after reasonable inquiry, no such claim
or Proceeding is threatened, and the Company is not aware of any facts or circumstances which might give rise to any such claim
or Proceeding.  The Company and the Subsidiaries have taken commercially reasonable security measures to protect the secrecy,
confidentiality and value of all of their material IP Rights.

          3.11    Environmental Laws. Except, in each case, as would not be reasonably anticipated to have a
Material Adverse Effect, the Company and the Subsidiaries (a) are in compliance with any and all applicable Laws relating to the protection of human health and safety, the environment or
hazardous or toxic substances or wastes, pollutants or contaminants, (b) have received and hold all permits, licenses or other approvals required of them under all such Laws to
conduct their respective businesses and (c) are in compliance with all terms and conditions of any such permit, license or approval.

                                            12

          3.12    Title to Assets. The Company and the Subsidiaries have good and marketable title to all
personal property owned by them which is material to their respective businesses, in each case free and clear of all liens, encumbrances and defects.  Any real property and facilities held under lease by the
Company or any Subsidiary are held under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to
be made of such property and buildings by the Company and the Subsidiaries.

          3.13    Insurance.  The Company and each of the Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as management of the Company reasonably believes to be prudent and customary in the businesses in which the Company and the Subsidiaries are
engaged.  Neither the Company nor any of the Subsidiaries has been refused any insurance coverage sought or applied for, and the Company has no reason to believe that it will
not be able to renew all existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers.

          3.14    Regulatory Permits.  The Company and the Subsidiaries have in full force and effect all certificates, approvals,
authorizations and permits from all regulatory authorities and agencies necessary to own, lease or operate their respective properties and assets and conduct their respective businesses, and neither the Company
nor any Subsidiary has received any notice of Proceedings relating to the revocation or modification of any such certificate, approval, authorization or permit, except for such
certificates, approvals, authorizations or permits with respect to which the failure to hold would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect.

          3.15    No Materially Adverse Contracts, Etc.  Neither the Company nor any of the Subsidiaries is (a) subject to any charter,
corporate or other legal restriction, or any judgment, decree or order which in the judgment of the Company's officers has or is reasonably expected to have a Material Adverse Effect or (b) a party to any
contract or agreement which in the judgment of the Company's management has or would reasonably be expected to have a Material Adverse Effect.

          3.16    Taxes.  The Company and the Subsidiaries each has made or filed, or caused to be made or filed, all United States
federal and other material tax returns, reports and declarations required by any jurisdiction to which it is subject and has paid all taxes and other governmental assessments and charges that are material in
amount, required to be paid by it, regardless of whether such amounts are shown or determined to be due on such returns, reports and declarations, except those being contested in
good faith by appropriate proceedings and for which it has set aside on its books reserves in accordance with generally accepted accounting principles. There are no unpaid taxes in
any material amount claimed to be due by the taxing authority of any jurisdiction.

                                            13

          3.17    Solvency.  After giving effect to the receipt by the Company of the proceeds from the transactions contemplated
by this Agreement (a) the Company's fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the Company's existing debts and other liabilities (including known
contingent liabilities) as they mature; and (b) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets,
after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid.  The
Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its
debt).  The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization
laws of any jurisdiction.

          3.18    Investment Company.  The Company is not, and is not an Affiliate of, an "investment company"
within the meaning of the Investment Company Act of 1940, as amended.

          3.19    Certain Transactions.  Other than as disclosed in the SEC Documents, there are
no contracts, transactions, arrangements or understandings between the Company or any of its Subsidiaries, on
the one hand, and any director, officer or employee thereof on the other hand, that would be required to be disclosed pursuant to Item 404 of Regulation S-K promulgated by the
SEC in the Company's Form 10-K or proxy statement pertaining to an annual meeting of stockholders.

          3.20    No General Solicitation.  Neither the Company, nor any of its Affiliates, nor any person
acting on its behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Note or the Closing Shares
pursuant to this Agreement.

          3.21    Acknowledgment Regarding the Investor's Purchase of the Note and the Issuance of the Closing Shares.  The
Company's Board of Directors has approved the execution of the Transaction Documents and the issuance and sale of the Note, and the issuance of the Closing Shares, based on its own independent evaluation
and determination that the terms of the Transaction Documents are reasonable and fair to the Company and in the best interests of the Company and its stockholders.  The
Company is entering into this Agreement and the Security Agreement and is issuing and selling the Note and issuing the Closing Shares voluntarily and without economic duress.
The Company has had independent legal counsel of its own choosing review the Transaction Documents and advise the Company with respect thereto. The Company
acknowledges and agrees that the Investor is acting solely in the capacity of an arm's length purchaser with respect to the Note and the issuance of the Closing Shares and the
transactions contemplated hereby and that neither the Investor nor any person affiliated with the Investor is acting as a financial advisor to, or a fiduciary of, the Company (or in any
similar capacity) with respect to execution of the Transaction Documents or the issuance of the Note and the Closing Shares or any other transaction contemplated
hereby.

          3.22    No Brokers', Finders' or Other Advisory Fees or Commissions. No brokers, finders
or other similar advisory fees or commissions will be payable by the Company or any Subsidiary or by any of their respective agents with respect to the issuance of the Note or any of the other transactions
contemplated by this Agreement.

                                            14

          3.23    OFAC.  None of the Company nor any of the Subsidiaries nor, to the knowledge of the
Company, any director, officer, agent, employee, affiliate or person acting on behalf of the Company and/or any Subsidiary has been or is currently subject to any United States sanctions administered by
the Office of Foreign Assets Control of the United States Department of the Treasury ("OFAC"); and the Company will not directly or indirectly use any proceeds
received from the Investor, or lend, contribute or otherwise make available such proceeds to its Subsidiaries or to any affiliated entity, joint venture partner or other person or entity,
to finance any investments in, or make any payments to, any country or person currently subject to any of the sanctions of the United States administered by OFAC.

          3.24    No Foreign Corrupt Practices.  None of the Company or any of the Subsidiaries has, directly or indirectly:  (a) made
or authorized any contribution, payment or gift of funds or property to any official, employee or agent of any governmental authority of any jurisdiction except as otherwise permitted under applicable
Law; or (b) made any contribution to any candidate for public office, in either case, where either the payment or the purpose of such contribution, payment or gift was, is, or would be
prohibited under the Foreign Corrupt Practices Act or the rules and regulations promulgated thereunder or under any other legislation of any relevant jurisdiction covering a
similar subject matter applicable to the Company or its Subsidiaries and their respective operations and the Company has instituted and maintained policies and procedures
designed to ensure, and which are reasonably expected to continue to ensure, continued compliance with such legislation.

          3.25    Anti-Money Laundering.  The operations of each of the Company and the
Subsidiaries are and have been conducted at all times in compliance with all applicable anti-money laundering laws, regulations, rules and guidelines in its jurisdiction of
incorporation and in each other jurisdiction in which such entity, as the case may be, conducts business (collectively, the "Money Laundering Laws") and no
action, suit or proceeding by or before any court or governmental authority involving the Company or its Subsidiaries with respect to any of the Money Laundering Laws is, to the
knowledge of the Company, pending, threatened or contemplated.

          3.26    Disclosure.  The Company confirms that neither it, nor to its actual knowledge, after reasonable inquiry, any other
Person acting on its behalf has provided the Investor or its agents or counsel with any information that the Company believes constitutes material, non-public information. The Company understands and
confirms that the Investor will rely on the foregoing representations and covenants in effecting transactions in securities of the Company.  

          3.27    No Other Representations.Except for the representations and warranties set forth in this Agreement and in other
Transaction Documents, the Company makes no other representations or warranties to the Investor and makes no predictions or forecasts of future revenues or earnings.

                                            15

      4.    REPRESENTATIONS AND WARRANTIES OF THE INVESTOR.  The Investor represents and warrants to
the Company as follows:

          4.1    Organization and Qualification.  The Investor is a limited liability company, duly organized and validly existing
in good standing under the laws of the State of Delaware.

          4.2    Authorization; Enforcement; Compliance with Other Instruments.  The Investor has the requisite power and authority
to execute this Agreement and the Security Agreement, purchase the Note and the Closing Shares and to perform its obligations under the Transaction Documents.  The execution and delivery of the
Transaction Documents to which it is a party by the Investor and the purchase of the Note and the Closing Sales pursuant hereto, have been duly and validly authorized by the
Investor's governing body and no further consent or authorization is required by the Investor, its governing body, its equityholders or any other Person in connection therewith.  The
Transaction Documents to which it is a party have been duly and validly executed and delivered by the Investor and constitute valid and binding obligations of the Investor,
enforceable against the Investor in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar Laws relating to, or affecting generally, the enforcement of creditors' rights and remedies.

          4.3    No Conflicts.  The execution, delivery and performance of the Transaction Documents to which it is a party by the
Investor and the purchase of the Note by the Investor and the issuance of the Closing Shares to the Investor will not (a) conflict with or result in a violation of the Investor's organizational documents, (b) conflict
with, or constitute a material default (or an event which, with notice or lapse of time or both, would become a material default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any material agreement, contract, indenture mortgage, indebtedness or instrument to which the Investor is a party, or (c) violate in any
material respect any Law applicable to the Investor or by which any of the Investor's properties or assets are bound or affected. No approval or authorization will be required from
any governmental authority or agency, regulatory or self-regulatory agency or other third party in connection with the purchase of the Note and the Closing Shares and the other
transactions contemplated by this Agreement (including the receipt of the Conversion Shares upon conversion of the Note).

          4.4    Investment Intent; Accredited Investor.  The Investor is purchasing the Note and the Closing Shares for its
own account, for investment purposes, and not with a view towards, or for resale in connection with, the public sale or distribution thereof in violation of applicable securiteis laws, except pursuant to sales
registered or exempted under the 1933 Act. The Investor does not presently have any agreement or understanding, directly or indirectly, with any Person to distribute any of the
Securities in violation of applicable securities laws. The Investor is an "accredited investor" as such term is defined in Rule 501(a) of Regulation D of the 1933 Act. The
Investor has, by reason of its business and financial experience, knowledge, sophistication and experience in financial and business matters and in making investment decisions of
this type such that it is capable of (a) evaluating the merits and risks of an investment in the Note and the Investor Shares and making an informed investment decision, (b)
protecting its own interests and (c) bearing the economic risk of such investment for an indefinite period of time. The Investor understands that the Company has no present intention
of registering the Securities or any shares of its Common Stock. The Investor did not learn of the investment in the Securities as a result of any general solicitation or general
advertising.

                                            16

          4.5    Opportunity to Discuss.  The Investor has received all materials relating to the business, finance and operations
of the Company and the Subsidiaries as it has requested, has had the opportunity to review the Transaction Documents and the SEC Documents and has had an opportunity to discuss the business,
management and financial affairs of the Company and the Subsidiaries with the Company's management. The Investor has also had the opportunity to ask questions of, receive
answers from and obtain additional information from (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) the
Company and its management regarding the terms and conditions of this investment. The Investor has sought such accounting, legal and tax advice as it has considered necessary
to make an informed investment decision with respect to its acquisition of the Securities.  In making its investment decision, the Investor has relied solely on its own due diligence
performed on the Company by its own representatives. 

          4.6    Reliance on Exemptions. The Investor understands that the Securities are being offered and sold to it in reliance on
specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and the Investor's compliance
with, the representations, warranties, agreements, acknowledgments and understandings of the Investor set forth herein in order to determine the availability of such exemptions and
the eligibility of the Investor to acquire the Securities.

          4.7    No Governmental Review. The Investor understands that no United States federal or state agency or any other
government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor have such authorities
passed upon or endorsed the merits of the offering of the Securities.

          4.8    Transfer or Resale. The Investor understands that the Securities have not been and are not being registered
under the 1933 Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred except in accordance with Section 5.1.

          4.9    Prime Broker.The Investor's prime broker and share custodian are as set forth on Schedule 4.9.

          4.10    No Other Representations.Except for the representations and warranties set forth in this Agreement
and in other Transaction Documents, the Investor makes no other representations or  warranties to the Company.

      5.    OTHER AGREEMENTS OF THE PARTIES.

          5.1    Legends, etc.

              (a)   Securities may only be disposed of pursuant to an effective registration statement under the 1933 Act,
to the Company or pursuant to an available exemption from or in a transaction not subject to the registration requirements of the 1933 Act, and in compliance with any applicable state securities laws.  

                                            17

              (b)   Certificates evidencing the Securities will contain the following legend, so long as is required
by this Section 5.1(b) or Section 5.1(c):

[NEITHER THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED] [THESE
SECURITIES HAVE NOT 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.  [THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES] [THESE
SECURITIES] MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES.

      The Company acknowledges and agrees that the Investor may from time to time pledge, and/or grant a security interest in some or all of the Securities, in
accordance with applicable securities laws, pursuant to a bona fide margin agreement in connection with a bona fide margin account and, if required under the terms of such
agreement or account, the Investor may transfer pledged or secured Securities to the pledgees or secured parties.  Such a pledge or transfer would not be subject to approval or
consent of the Company and no legal opinion of legal counsel to the pledgee, secured party or pledgor shall be required in connection with the pledge, but such legal opinion may be
required in connection with a subsequent transfer following default by the Investor transferee of the pledge.  No notice shall be required of such pledge.  At the Investor'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 including the preparation and filing of any required prospectus supplement under Rule 424(b)(3) of the 1933 Act or other applicable provision of the 1933 Act to
appropriately amend the list of selling stockholders thereunder.

              (c)   Certificates evidencing the Investor Shares shall not contain any legend (including
the legend set forth in Section 5.1(b)):  (i) while a Registration Statement is effective under the 1933 Act, (ii) following any sale of such Investor Shares pursuant to Rule 144, (iii) while such Investor Shares
are eligible for sale under Rule 144(k), or (iv) if such legend is not required under applicable requirements of the 1933 Act (including judicial interpretations and pronouncements
issued by the Staff of the SEC).  The Company shall cause its counsel to issue any legal opinion or instruction required by the Company's transfer agent to comply with the

                                            18

requirements set forth in this Section.  At such time as a legend is no longer required for the Investor Shares under this Section 5.1(c), the Company will, no later than three
(3) Business Days following the delivery by the Investor to the Company or the Company's transfer agent of a certificate representing Investor Shares containing a restrictive legend
(such third Business Day, the "Legend Removal Date"), deliver or cause to be delivered to the Investor a certificate representing such Investor Shares that is
free from all restrictive and other legends. In addition to any other remedies available to the Investor, the Company shall pay to the Investor, in cash, as partial liquidated damages
and not as a penalty, for each $1,000 of Investor Shares (based on the VWAP of the Common Stock on the date such Investor Shares are submitted to the Company or the
Company's transfer agent) delivered for removal of the restrictive or other legend, $5 per Trading Day for each Trading Day after the Legend Removal Date until such Investor
Shares are delivered without a legend.  The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the
restrictions on transfer set forth in this Section except as it may reasonably determine are necessary or appropriate to comply or to ensure compliance with those applicable laws
that are enacted or modified after the Closing.

          5.2    Furnishing of
Information.  As long as the Investor owns the Securities, the Company covenants 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 1934 Act.  As long as the Investor owns the Securities, if the Company is not required to
file reports pursuant to such laws, it will prepare and furnish to the Investor and make publicly available in accordance with Rule 144(c) such information as is required for the
Investor to sell the Investor Shares under Rule 144.  The Company further covenants that it will take such further action as any holder of the Securities may reasonably request, all
to the extent required from time to time to enable such Person to sell such Investor Shares without registration under the 1933 Act within the limitation of the exemptions provided by
Rule 144 or other applicable exemptions.

          5.3    Integration.  The Company shall not, and shall use its best efforts to ensure that
no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the 1933 Act) that will be integrated with the offer or sale of
the Securities in a manner that would require the registration under the 1933 Act of the sale of the Securities to the Investor, or that will be integrated with the offer or sale of the
Securities for purposes of the rules and regulations of any Trading Market that would require, under the rules of the Trading Market, the Stockholder Approval.

          5.4    Notification of Certain Events.  The Company shall give prompt written notice to the Investor of (a) the occurrence
or non-occurrence of any Event, the occurrence or non-occurrence of which would render any representation or warranty of the Company contained in this Agreement or any other Transaction
Document, if made on or immediately following the date of such Event, untrue or inaccurate in any material respect, (b) the occurrence of any Event that, individually or in
combination with any other Events, has had or could reasonably be expected to have a Material Adverse Effect, (c) any failure of the Company to comply with or satisfy any
covenant or agreement to be complied with or satisfied by it hereunder or any Event that would otherwise result in the nonfulfillment of any of the conditions to the Investor's
obligations hereunder, (d) any written notice or other written communication from any Person alleging that the consent of such Person is or may be required in connection with the consummation of the

                                            19

transactions contemplated by this Agreement or any other Transaction Document, or (e) any
Proceeding pending or, to the Company's actual knowledge, after reasonable inquiry, threatened in writing against a party relating to
the transactions contemplated by this Agreement or any other Transaction Document.

          5.5    Available Stock.  The Company shall at all times keep authorized and reserved and available for issuance, free of
preemptive rights, such number of shares of Common Stock as are issuable upon conversion of the Note at any time.  If the Company determines at any time that it does not have a
sufficient number of authorized shares of Common Stock to reserve and keep available for issuance as described in this Section 5.5, the Company shall use all
commercially reasonable efforts to increase the number of authorized shares of Common Stock by seeking Stockholder Approval for the authorization of such additional
shares.

          5.6    Use of Proceeds.  The Company will use the proceeds from the sale of the Note and the Closing Shares for general working capital purposes,
including clinical trials and working capital.

          5.7    Repayment of Note.  If the Company issues any debt, including any subordinated debt or convertible debt
(other than the Note), or any Preferred Stock, unless otherwise agreed in writing by the Investor, the Company will immediately utilize the proceeds of such issuance to repay the
Note. If the Company issues any Equity Interests other than Exempted Securities, unless otherwise agreed to in writing by the Investor, the Company will direct ten percent (10%) of
the proceeds from such issuance, excluding offering costs or other expenses, to repay the Note.

          5.8    Intercreditor Agreement.   In the event that the Company or any Subsidiary incurs debt or issues convertible debt
securities to a seller as partial consideration paid to such seller in connection with an Acquisition, unless otherwise waived in writing by the Investor, as a condition to consummation
of such Acquisition, the holder of such debt or convertible debt securities shall enter into an intercreditor agreement with the Company and the Investor on terms reasonably
satisfactory to the Investor. 

          5.9    Prohibited Transactions.  The Company hereby covenants and agrees not to enter into any Prohibited Transactions without the Investor's
prior written consent, until the earlier of (a) thirty (30) days after such time as the Note has been repaid in full and/or has been converted into Conversion Shares and (b) the date on
which the Investor ceases to hold any shares of Common Stock or have the right to acquire any shares of Common Stock.

          5.10    Securities Laws Disclosure; Publicity.  The Company shall, by 9:00 a.m. (New York City
time) on the Trading Day immediately following the date hereof, issue a press release disclosing the material terms of the transactions contemplated hereby (the "Press
Release"), and shall, within four (4) Trading Days following the date hereof, file a Current Report on Form 8-K (the "Form 8-K") disclosing the material
terms of the transactions contemplated hereby and including this Agreement as an exhibit thereto; provided, that the Company may not issue the Press Release without the
Investor's prior written consent.  The Company shall provide a copy of the draft Form 8-K to the Investor for review prior to release and the Company shall incorporate the Investor's
reasonable comments. The Company shall not issue any press release

                                            20

nor otherwise make any such public statement regarding the Investor or the Transaction Documents without
the prior written consent of the Investor, except if such disclosure is made in a manner consistent with the Press Release or Form 8-K, or is required by law, in which case the
Company shall (a) ensure that such disclosure is restricted and limited in content and scope to the maximum extent permitted by Law to meet the relevant disclosure requirement
and (b) provide a copy of the proposed disclosure to the Investor for review prior to release and the Company shall incorporate the Investor's reasonable comments.  Following the
execution of this Agreement, the Investor and its Affiliates and/or advisors may place announcements on their respective corporate websites and in financial and other newspapers
and publications (including, without limitation, customary "tombstone" advertisements) describing the Investor's relationship with the Company under this Agreement in a
manner consistent with the Press Release or Form 8-K and including the name and corporate logo of the Company.  Notwithstanding anything herein to the contrary, to comply with
United States Treasury Regulations Section 1.6011-4(b)(3)(i), each of the Company and the Investor, and each employee, representative or other agent of the Company or the
Investor, may disclose to any and all persons, without limitation of any kind, the U.S. federal and state income tax treatment, and the U.S. federal and state income tax structure, of
the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to such party relating to such tax treatment and tax
structure insofar as such treatment and/or structure relates to a U.S. federal or state income tax strategy provided to such recipient.

          5.11    Indemnification of the Investor.

              (a)  The Company will indemnify and hold the Investor, its Affiliates and their respective directors, officers, managers
shareholders, members, partners, employees and agents and permitted successors and assigns (each, an "Investor 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 actual, reasonable and
documented attorneys' fees and costs of investigation and defense (collectively, "Losses") that any such Investor Party may suffer or incur as a result of or
relating to:

                  (i)  
any breach or inaccuracy of any representation, warranty, covenant or agreement made by the Company in any Transaction Document;

                  (ii)  
any misrepresentation made by the Company in any Transaction Document or in any SEC Document;

                  (iii)  
any omission to state any material fact necessary in order to make the statements made in any SEC Document, in light of the circumstances under
which they were made, not misleading;

                  (iv)  
any Proceeding before or by any court, public board, government agency, self-regulatory organization or body based upon, or resulting from the
execution, delivery, performance or enforcement of any of the Transaction Documents or the consummation of the transactions contemplated thereby, and whether or not the
Investor is party thereto by claim, counterclaim, crossclaim, as a defendant or otherwise, or if such Proceeding is based upon, or results from, any of the items set forth in clauses (i)
through (iii) above.

                                            21

              (b)  In addition to the indemnity contained herein, the Company will reimburse each Investor Party for its actual,
reasonable and documented legal and other
expenses (including the cost of any investigation, preparation and travel in connection therewith) incurred in connection therewith, as such expenses are incurred.

              (c)  The provisions of this Section 5.11 shall survive the termination or expiration of this Agreement.

          5.12    Non-Public Information.  The Company covenants and agrees that neither it nor any other
Person acting on its behalf will provide the Investor or its agents or counsel with any information that the Company believes constitutes material, non-public information. To the extent the Company
provides the Investor with material, non-public information, the Company shall publicly disclose such information within forty eight (48) hours of providing the information to the
Investor. The Company understands and confirms that the Investor shall be relying on the foregoing representation in effecting transactions in securities of the Company.

          5.13    Listing of Securities.  The Company shall: (a) in the time and manner required by each Trading Market on which
the Common Stock is listed, prepare and file with such Trading Market a Listing of Additional Shares form covering the Investor Shares, (b) take all steps necessary to cause such shares to be approved
for listing on each Trading Market on which the Common Stock is listed as soon as possible thereafter, (c) provide to the Investor evidence of such Trading Market's completion of
review of the Listing of Additional Shares form, and (d) maintain the listing of such shares on each such Trading Market.

          5.14    Antitrust Notification.  If the Investor determines, in its sole
judgment and upon the advice of counsel, that the issuance of the Note or the Investor Shares pursuant to the terms hereof would be subject to the provisions of the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended (the "HSR Act"), the Company shall file as soon as practicable after the date on which the Company receives notice
from the Investor of the applicability of the HSR Act and a request to so file with the United States Federal Trade Commission and the United States Department of Justice the
notification and report form required to be filed by it pursuant to the HSR Act in connection with such issuance.

          5.15    Change of Prime Broker, Custodian.  The Investor has informed the Company of the names of its prime broker
and its share custodian.  The Investor shall notify the Company of any change in its prime broker or share custodian within three (3) Business Days of such change having taken effect.

          5.16    Share Transfer Agent.  The Company has informed the Investor of the name of its share transfer agent and
represents and warrants that the transfer agent participates in the Depository Trust Company Fast Automated Securities Transfer program.

          5.17    Tax Treatment.  The Investor and the Company agree that for U.S. federal income tax purposes, and applicable state,
local and non-U.S. income tax purposes, the Note is not intended to be, and shall not be, treated as indebtedness.  Neither the Investor nor the Company shall take any contrary position on any tax
return, or in any audit, claim, investigation, inquiry or proceeding in respect of taxes, unless otherwise required pursuant to a final determination within the meaning of Section 1313
of the Code, or any analogous provision of applicable state, local or non-U.S. law.

                                            22

          5.18    Set-Off.

              (a)  
The Investor may set off any of its obligations to the Company (whether or not due for payment), against any of the Company's obligations to the
Investor (whether or not due for payment) under this Agreement and/or any other Transaction Document.

              (b)  
The Investor may do anything necessary to effect any set-off undertaken in accordance with this Section 5.19 (including varying the date for
payment of any amount payable by the Investor to the Company).

          5.19    Short Sales.  So long as the Note is outstanding, neither the Investor nor any member of the Investor Group
shall engage in any Short Sales with respect to any shares of Common Stock, or shares of Common Stock underlying any Equity Interests.

      6.    CLOSING CONDITIONS.

          6.1    Conditions Precedent to the Obligations of the Investor.  The obligation of the Investor to fund the Note and acquire the Closing Shares at
the Closing is subject to the satisfaction or waiver by the Investor, at or before such Closing, of each of the following conditions:

              (a)  
Required Documentation. The Company must have delivered to the Investor copies of all resolutions duly adopted by the Board of Directors of
the Company, or any such other documentation of the Company approving the Agreement, the Transaction Documents and any of the transactions contemplated hereby or
thereby;

              (b)  
Consents and Permits. The Company must have obtained and delivered to the Investor copies of all necessary permits, approvals, and
registrations necessary to effect this Agreement, the Transaction Documents and any of the transactions contemplated hereby or thereby, including pursuant to Section
3.14 of this Agreement;

              (c)  
Trading Market Approval. The Company shall have either (i)_obtained and delivered to the Investor copies of all necessary Trading Market
approvals for the issuance of the Note, and, upon the conversion of the Note, the Conversion Shares or (ii) submitted a Listing of Additional Shares Notification Form with the
Trading Market relating to the issuance of the Note, and, upon conversion of the Note, the Conversion Shares;

              (d)  
No Event(s) of Default. The Investor must be of the reasonable opinion that no Event of Default has occurred and no Event of Default would
result from the execution of this Agreement or any of the Transaction Documents or the transactions contemplated hereby or thereby;

              (e)  
Representations and Warranties.  The representations and warranties of the Company contained herein shall be true and correct in all material
respects as of the date when made and as of the Closing Date as though made on and as of such date;

                                            23

              (f)  
Performance.  The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and
conditions required by the Transaction Documents to be performed, satisfied or complied with by it at or prior to such Closing;

              (g)  
No Injunction.  No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction
Documents;

              (h)  
No Suspensions of Trading in Common Stock; Listing.  Trading in the Common Stock shall not have been suspended by the SEC or any
Trading Market (except for any suspensions of trading of not more than one day on which the Trading Market is open solely to permit dissemination of material information regarding
the Company) at any time since the date of execution of this Agreement, and the Common Stock shall have been at all times since such date listed for trading on a Trading
Market;

              (i)  
Limitation on Beneficial Ownership.  The issuance of the Note and the Closing Shares shall not cause the Investor Group to become, directly or
indirectly, a "beneficial owner" (within the meaning of Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder) of a number of Equity Interests
of a class that is registered under the 1934 Act which exceeds the Maximum Percentage of the Equity Interests of such class that are outstanding at such time; 

              (j)  
Perfection of Security Interest.  The Investor shall have, to its satisfaction, perfected the security interest granted in the assets and collateral of
the Company and its Subsidiaries described in the Security Agreement; and  

              (k)  
Funds Flow Request.  The Company shall have delivered to the Investor a flow of funds request, substantially in the form set out in
Exhibit C.

          6.2    Conditions Precedent to the Obligations of the Company.  The obligation of the Company to issue the Note and the
Closing Shares at the Closing is subject to the satisfaction or waiver by the Company, at or before such Closing, of each of the following conditions:

              (a)   Representations and Warranties.  The representations and warranties of the Investor contained herein
shall be true and correct in all material respects as of the date when made and as of such Closing Date as though made on and as of such date;

              (b)   Performance.  The Investor shall have performed, satisfied and complied in all material respects with all
covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Investor at or prior to the Closing; and

              (c)   No Injunction.  No statute, rule, regulation, executive order, decree, ruling or injunction shall have been
enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction
Documents.

                                            24

      7.    EVENTS OF DEFAULT.

          7.1    Events of Default.  The occurrence of any of the following events shall be
an "Event of Default" under this Agreement:

              (a)  
an Event of Default (as defined in the Note);

              (b)  
any of the representations or warranties made by the Company or any of its agents, officers, directors, employees or
representatives in any Transaction Document or public filing being inaccurate, false or misleading in any material respect, as of the date as of which it is made or deemed to be
made, or any certificate or financial or other written statements furnished by or on behalf of the Company to the Investor or any of its representatives, is inaccurate, false or
misleading, in any material respect, as of the date as of which it is made or deemed to be made, or on any Closing Date; or

              (c)  
a failure by the Company to comply with any of its covenants or agreements set forth in this Agreement, including those set
forth in Section 9.

          7.2    Investor Right to Investigate an Event of Default.  If in the Investor's reasonable opinion, an Event of Default
has occurred, or is or may be continuing:

              (a)  
the Investor may notify the Company that is wishes to investigate such purported Event of Default;

              (b)  
the Company shall cooperate with the Investor in such investigation;

              (c)  
the Company shall comply with all reasonable requests made by the Investor to the Company in connection with any investigation by the Investor and
shall (i) provide all information reasonably requested by the Investor in relation to the Event of Default to the Investor; provided that the Investor agrees that any materially price
sensitive information and/or non-public information will be subject to confidentiality and not subject to Section 5.12, and (ii) provide all such requested information within three (3)
Business Days of such request; and

              (d)  
the Company shall pay all reasonable costs incurred by the Investor in connection with any such investigation.

          7.3    Remedies Upon an Event of Default. 

              (a)  
If an Event of Default occurs pursuant to Section 7.1(a), the Investor shall have such remedies as are set forth in the Note.

              (b)  
If an Event of Default occurs pursuant to Section 7.1(b) or Section 7.1(c) and is not remedied within
(i) two (2) Business Days for an Event of Default occurring by the Company's failure to comply with Section 7.1(c), or (ii) fifteen (15) Business Days for an Event of Default
occurring pursuant to Section 7.1(b), the Investor may declare, by notice to the Company, effective immediately, all outstanding obligations by the Company under the
Transaction Documents to be immediately due and payable in immediately available funds and the Investor shall have no obligation to consummate any Closing under this
Agreement or to accept the conversion of any Note into Conversion Shares.

                                            25

              (c)  
If any Event of Default occurs and is not remedied within (i) two (2) Business Days for an Event of Default occurring by the
Company's failure to comply with Section 7.1(c), or (ii) fifteen (15) Business Days for an Event of Default occurring pursuant to Section 7.1(b), the Investor may, by
written notice to the Company, terminate this Agreement effective as of the date set forth in the Investor's notice.

      8.    TERMINATION.

          8.1    
Events of Termination.  This Agreement:

              (a)  
        may be terminated:

                  (i)  
        by the Investor on the occurrence or existence of a Securities Termination Event or a Change of Control;

                  (ii)  
        by the mutual written consent of the Company and the Investor, at any time; 

                  (iii)  
        by either Party, by written notice to the other Party, effective immediately, if the Closing has
not occurred within ten (10) Business Days of the date of this Agreement or such later date as the Company and the Investor agree in writing, provided that the right to terminate this
Agreement under this Section 8.1(a)(iii) is not available to any party that is in material breach of or material default under this Agreement or whose failure to fulfill any
obligation under this Agreement has been the principal cause of, or has resulted in the failure of the Closing to occur; or

                  (iv)  
        by the Investor, in accordance with Section 7.3(c).

          8.2    Automatic Termination.  This Agreement will automatically terminate, without
further action by the parties, at the time after the Closing that the Principal Amount (or the Adjusted Principal Amount (as defined in the Note), as applicable) outstanding under the Note and any accrued but
unpaid interest is reduced to zero (0), whether as a result of Conversion or repayment by the Company in accordance with the terms of this Agreement and the Note. 

          
8.3    Effect of Termination.

              (a)  
        Subject to Section 8.3(b), each party's right of termination under Section 8.1 is in addition to any other rights it may have under this
Agreement or otherwise, and the exercise of a right of termination will not be an election of remedies.

              (b)  
        If the Investor terminates this Agreement under Section 8.1(a)(i):

                  (i)  
        the Investor may declare, by notice to the Company, all outstanding obligations by the Company under the Transaction Documents to be due and
payable (including, without limitation, the immediate repayment of any Principal Amount outstanding

                                            26

under the Note plus accrued but unpaid interest) without presentment, demand,
protest or any other notice of any kind (other than the Investor's election to declare such outstanding obligations due and payable), all of which are expressly waived by the
Company, anything to the contrary contained in this Agreement or in any other Transaction Document notwithstanding; and

                  (ii)  
        the Company must within five (5) Business Days of such notice being received, pay to the Investor in immediately available funds the outstanding
Principal Amount for the Note plus all accrued interest thereon (if any), unless the Investor terminates this Agreement as a result of an Event of Default and provided that (A)
subsequent to the termination under Section 8.1(a)(i), the Investor is not prohibited by Law or otherwise from exercising its conversion rights pursuant to this Agreement or
the Note, (B) the Investor actually exercises its conversion rights under this Agreement or the Note, and (C) the Company otherwise complies in all respects with its obligation to
issue Conversion Shares in accordance with the Note (which obligation will survive termination).

              (c)  
        Upon termination of this Agreement, the Investor will not be required to fund any further amount after the date of termination of the Agreement,
provided that termination will not affect any undischarged obligation under this Agreement, and any obligation of the Company to pay or repay any amounts owing to the Investor
hereunder and which have not been repaid at the time of termination.

              (d)  
        Nothing in this Agreement will be deemed to release any party from any liability for any breach by such party of the terms and provisions of this
Agreement or to impair the right of any party to compel specific performance by any other Party of its obligations under this Agreement.

              (e)  
        Notwithstanding anything herein to the contrary, the Company's covenant under Section 5.8 of this Agreement shall survive the termination of
this Agreement in accordance with its terms. 

      9.    RIGHTS TO FUTURE STOCK ISSUANCES.  Subject to the terms and conditions of this Section 9 and applicable securities laws, if at any time prior to
the first anniversary of the Closing, the Company proposes to offer or sell any New Securities (a "Subsequent Financing"), the Company shall first offer the
Investor the opportunity to purchase up to ten percent (10%) of such New Securities.  The Investor shall be entitled to apportion the right of first offer hereby granted to it in such
proportions as it deems appropriate among itself and its Affiliates.  

          9.1    The Company shall give notice (the "Offer
Notice") to the Investor, stating (a) its bona fide intention to offer such New Securities, (b) the number of such New Securities to be offered, and (c) the price and terms, if
any, upon which it proposes to offer such New Securities. 

          9.2    By notification to the Company within four (4) days after the date the Offer Notice
is given (the "Notice Termination Time"), the Investor may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, up to ten percent (10%) of such
New Securities.  If the Company receives no such notice from the Investor as of such Notice Termination Time, the
Investor shall be deemed to have notified the Company that it does not elect to participate in such Subsequent Financing. The closing of any sale pursuant to this Section 9
shall occur within the later of ninety (90) days of the date that the Offer Notice is given and the date of initial sale of New Securities pursuant to
Section 9.3.

          9.3    The Company may, during the ninety (90) day period following the
expiration of the period provided in Section 9.2, offer and sell the remaining portion of such New Securities to any Person or Persons at a price not less than, and upon terms generally no more
favorable to the offeree than, those specified in the Offer Notice.  If the Company does not enter into an agreement for the sale of the New Securities within such period, or if such
agreement is not consummated within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be
offered unless first reoffered to the Investors in accordance with this Section 9.

          9.4    The right of first offer in this Section 9 shall not be applicable to Exempted Securities,
or any New Securities registered for sale under the 1933 Act.

      10.    GENERAL PROVISIONS.

          10.1    Fees and Expenses.  Prior to the date of this Agreement, the Company has paid Morgan, Lewis & Bockius LLP
$25,000.  At the Closing, the Company shall reimburse the Investor up to an additional $25,000 of actual, documented and reasonable due diligence costs and actual, documented
and reasonable fees and disbursements of Morgan, Lewis & Bockius LLP in connection with the preparation of the Transaction Documents, it being understood that Morgan,
Lewis & Bockius LLP has not rendered any legal advice to the Company in connection with the transactions contemplated hereby and that the Company has relied for such
matters on the advice of its own counsel.  Except as specified above, 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 the Transaction
Documents.  The Company shall pay all stamp and other taxes and duties levied in connection with the sale of the Note and the Closing Shares.

          10.2    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 email at the email address specified in this Section
prior to 5:00 p.m. (New York time) on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via email at the email
address specified in this Section on a day that is not a Business Day or later than 5:00 p.m. (New York time) on any date and earlier than 11:59 p.m. (New York time) on such date,
(c) the Business Day following the date of mailing, if sent by U.S. nationally 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 follows:

                                            28

If to the Company:

Seelos Therapeutics, Inc.

300 Park Avenue, 12th Floor

New York, NY 10022

Telephone:  (646) 293-2100

Email:  [...***...]

Attention: Raj Mehra, Ph.D., President and Chief Executive Officer

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

Paul Hastings LLP

   1117 S. California Avenue

   Palo Alto, CA 94304

   Telephone: [...***...]

   Email: [...***...]

   Attention: Jeff Hartlin 

If to the Investor:

Lind Global Asset Management II, LLC

c/o The Lind Partners LLC

444 Madison Avenue, Floor 41

New York, NY 10022

Telephone: [...***...]

Email: [...***...] and  [...***...]

Attention: Jeff Easton

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

Morgan, Lewis & Bockius LLP

One Federal Street

Boston, MA 02110

Telephone: [...***...]

Email: [...***...]

Attention: Bryan S. Keighery

or such other address as may be designated in writing hereafter, in the same manner, by such
Person.

          10.3    Severability.  If any provision of this Agreement is held by a court of competent jurisdiction to be excessive
in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the
remaining provisions of this Agreement will not in any way be affected or impaired thereby.

          10.4    Governing Law.  This Agreement shall be governed by and construed in accordance with the Laws of the
State of New York, without reference to principles of conflict of laws or choice of laws.

                                            29

          10.5    Jurisdiction and Venue.  Any action, proceeding or claim arising out of, or relating in any way to this Agreement
shall be brought and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District
of New York.  The Company and the Investor irrevocably submit to the jurisdiction of such courts, which jurisdiction shall be exclusive, and hereby waive any objection to such
exclusive jurisdiction or that such courts represent an inconvenient forum.  The prevailing party in any such action shall be entitled to recover its reasonable and documented attorneys' fees and out-of-pocket expenses relating to such action or proceeding.

          10.6    WAIVER OF RIGHT TO JURY TRIAL.  THE COMPANY AND THE INVESTOR HEREBY IRREVOCABLY WAIVE, 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 AGREEMENT OR
THE OTHER TRANSACTION DOCUMENTS.

          10.7    Survival.  The representations, warranties, agreements and covenants contained herein shall survive the Closing
and the delivery of the Securities.

          10.8    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 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.

          10.9    Amendments; Waivers.  No provision of this Agreement may be waived or amended except in a written instrument
signed by the Company and the Investor.  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 either party to
exercise any right hereunder in any manner impair the exercise of any such right.

          10.10    Construction.  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.  The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of
strict construction will be applied against any party.  This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring
or disfavoring any party by virtue of the authorship of any provisions of this Agreement or any of the Transaction Documents.

          10.11    Successors and Assigns.  This Agreement shall be binding upon, and inure to the benefit of and be
enforceable by, the Company and the Investor and their respective successors and assigns.  The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the
Investor.  The Investor may assign any or all of its rights under this Agreement to any Person to whom the Investor assigns or transfers any Securities, provided such transferee
agrees in writing to be bound, with respect to the transferred Securities, by the provisions hereof that apply to the "Investor" and such transferee is an accredited
investor.

                                            30

          10.12    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.

          10.13    Further Assurances.  Each party hereto shall do and perform, or cause to be done and performed, all such
further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish
the purposes of this Agreement and the consummation of the transactions contemplated hereby.

          10.14    Counterparts.  This Agreement may be executed in two identical counterparts, both of which 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.  Signature pages delivered by facsimile or e-mail shall have the
same force and effect as an original signature.

          10.15    Specific Performance.  The Company acknowledges that monetary damages alone would not be adequate
compensation to the Investor for a breach by the Company of this Agreement and the Investor may seek an injunction or an order for specific performance from a court of competent jurisdiction if (a) the Company fails
to comply or threatens not to comply with this Agreement or (b) the Investor has reason to believe that the Company will not comply with this Agreement.

   

[Signature Page Follows]

                                            31

      IN WITNESS WHEREOF, the undersigned have executed this Securities Purchase Agreement as of the date first set forth above.

	
COMPANY:

  

SEELOS THERAPEUTICS, INC.  

  

  

By:  /s/ Raj Mehra, Ph.D.         

Name: Raj Mehra, Ph.D. 

Title:   President and Chief Executive Officer

	
INVESTOR:

  

LIND GLOBAL ASSET MANAGEMENT II, LLC

  

  

By:  /s/ Jeff Easton        

Name: Jeff Easton

Title: Authorized Signatory

   

   

   

[Signature Page of Securities Purchase Agreement]

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