Document:

ex-4_2.htm

 

Emmaus Life Sciences, Inc 10-Q

Exhibit 4.2

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

EMMAUS LIFE SCIENCES, INC.

Convertible Promissory Note

(Cash Interest)

 (On Demand)

 

Principal Amount: $__388,800______                                                                                                          Loan Date:    June 29, 2012                                 

 

FOR VALUE RECEIVED, Emmaus Life Sciences, Inc., a Delaware corporation, located at 20725 S. Western Ave., Suite 136, Torrance, CA  90501 (“Borrower”) agrees to pay to   Yasushi Nagasaki (“Lender"), the sum of $_388,800______ U.S. Dollars (“Principal Amount”), together with accrued interest thereon at the rate of ten percent (10%) per annum, under the following terms and conditions of this Convertible Promissory Note (“Note”).

 

1.           Terms of Repayment (Balloon Payment):  From the Loan Date and continuing thereafter until called by Lender, the interest shall accrue at ten percent (10%) simple interest of the Loan Amount, as set forth in Attachment 1 hereto.   Lender shall have the right to convert the loan amount plus the accrued interest to common stocks at the stock price of $3.30.   The entire unpaid principal and any accrued interest shall become immediately due and payable upon Lender’s request.

 

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

 

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

 

4.           Conversion Option:  At any time during the term of this Note, Lender shall by giving written Notice of Conversion to the Borrower in the form attached hereto as Exhibit A, have the right to convert the Principal Amount to shares of Common Stock of Borrower (the “Shares”) at the Conversion Price of $3.30 per share. Upon conversion of this Note, Lender shall be subject to all requirements and transfer restrictions that Borrower may then have in effect with respect to the Shares and purchasers of Shares.

 

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

 

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

 

  

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

 

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

 

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

 

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

 

Signed Under Penalty of Perjury, this 29 day of June, 2012

 

 

Emmaus Life Sciences, Inc.

 

/s/ Yutaka Niihara                                                         

 By:  Yutaka Niihara, M.D., President and CEO

 

  

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ATTACHMENT 1

	
Lender’s Name:

	
 

	 
	 	 	 
	
Lender’s Address:

	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
Loan Amount:

	
USD $

	 
	 	 	 
	
Annual Interest at 10%

	 	 
	
Per Annum on Loan Amount:

	
$

	 
	 	 	 
	
Maturity Date:

	
  

	 
	 	 	 

 

 

  

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EXHIBIT A

 

NOTICE OF CONVERSION

 

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

 

	
TO: Emmaus Life Sciences, Inc.

	  

 

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

 

	
Conversion Date:

	 
	 	 
	
Applicable Conversion Price:

	 
	 	 
	
Signature:

	 
	 	 
	
Name:

	 
	 	 
	
Address:

	 
	 	 
	
Amount to be converted:

	
$ 

	 	 
	
Amount of Note unconverted:

	
$ 

	 	 
	
Number of shares of Common Stock to be issued:

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

	 
	 	 
	
Address:

	 
	 	 
	
Address:

	 
	 	 
	
Phone Number:

	 

4ex-10_1.htm

 

Emmaus Life Sciences, Inc 10-Q

 

Exhibit 10.1

 

 

EMMAUS MEDICAL, INC.

Promissory Note

 (Cash Interest)

(On Demand)

 

Principal Amount: $_________________                                                                                     Date: ______

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

  

  

  

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

 

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

 

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

 

Emmaus Medical, Inc.

 

By:  _______________________________________

  

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ATTACHMENT 1

	
Lender’s Name:

	
  

	 
	 	 	 
	
Lender’s Address:

	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
Loan Amount:

	
USD $

	 
	 	 	 
	
Annual Interest at 8%

	 	 
	
Per Annum on Loan Amount:

	
$

	 
	 	 	 
	
Maturity Date:

	
  

	 
	 

 

 

  

3

  

[INFORMATION FOR PURPOSES OF FILING WITH THE SECURITIES AND EXCHANGE COMMISSION]

 

SCHEDULE A

 

NOTEHOLDERS

 

	
Lender

	 	
Principal Amount

	 	
Loan Date

	
Hope International Hospice, Inc.__

	 	$	200,000	 	
6/14/2012

	
Hope International Hospice, Inc.__

	 	$	100,000	 	
6/21/2012

 

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