Document:

emma-ex101_39.htm

 

Exhibit 10.1

 

EMMAUS LIFE SCIENCES, INC.

Promissory Note

 

	
Principal Amount:
	
$111,000.00
	
 
	
Loan Date:
	
May 30, 2018

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Currency:
	
US Dollar
	
 
	
Term:
	
    1 Year

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Interest Rate:
	
11.0%
	
 
	
Loan Due Date:
	
Due on demand

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Interest Payment Period:
	
Interest is accrued and paid upon Loan Due Date

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Lender:
	
 
	
The Shitabata Family Trust

	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

FOR VALUE RECEIVED, Emmaus Life Sciences, Inc., a Delaware corporation, located at 21250 Hawthorne Blvd., Suite 800, Torrance, CA  90503 (“Borrower”) agrees to pay to Lender the sum of the Principal Amount in the stated Currency, together with any accrued interest at the stated Interest Rate, under the following terms and conditions of this this Promissory Note (“Note”).

 

1. Terms of Repayment (Balloon Payment): The entire unpaid Principal Amount and any accrued interest shall become immediately due and payable upon the stated Loan Due Date. Simple interest at the stated Interest Rate will accrue on the outstanding Principal Amount commencing on the Loan Date of this Note and the Borrower shall make payments of interest only as per the stated Interest Payment Period. 

 

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

 

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 Lender or subsequently assigned holder of this Note may designate in writing in the future.

 

4. 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.

 

5. Acceleration of Debt: If the Borrower (i) fails to make any payment due under the terms of this Note or seeks relief under the U.S. Bankruptcy Code, (ii) fails to deliver shares to the Lender by the deadline set forth in Section 4 hereof, (iii) suffers an involuntary petition in bankruptcy or receivership that is not vacated within thirty (30) days, (iv) consents to the appointment of a receiver, trustee, assignee, liquidator or similar official or such appointment is not discharged or stayed within 30 days, (v) makes a general assignment for the benefit of its creditors or (vi) 

 

admits in writing that it is generally unable to pay its debts as they become due, the entire balance of this Note and any interest accrued thereon shall be immediately due and payable to the holder of this Note.

 

6. Modification: No modification or waiver of any of the terms of this Note 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.

 

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. Transfer of the Note: This Note may be transferred, in whole or in part, at any time or from time to time, by the Lender. 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 Note subsequent to any transfer, and agrees that the terms of this Note may be fully enforced by any subsequent holder of this Note. If this Note is to be transferred, the Lender shall surrender this Note to the Borrower, whereupon the Borrower will forthwith issue and deliver upon the order of the Lender a new Note registered as the Lender may request, representing the outstanding Principal Amount being transferred by the Lender and, if less then the entire outstanding Principal Amount is being transferred, a new Note to the Lender representing the outstanding Principal Amount not being transferred. This Note may not be transferred by the Borrower, by operation of law or otherwise, without the prior written consent of the Lender.

 

9. Lost, Stolen or Mutilated Note:  Upon receipt by the Borrower of evidence reasonably satisfactory to the Borrower of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Lender to the Borrower in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the Borrower shall execute and deliver to the Lender a new Note representing the outstanding Principal Amount and accrued and unpaid interest thereon.

 

10. Remedies:  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 a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Lender’s right to pursue actual and consequential damages for any failure by the Borrower to comply with the terms of this Note.  

 

11. 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.

 

12. Choice of Law: All terms and conditions of this Note shall be interpreted under the laws

of California, U.S.A., without regard to conflict of law principles.

 

 

13. Additional Guarantor: Lender understands and acknowledges that Emmaus Life Sciences, Inc. is the borrower of this Note.  However, for added security to lender, this note is guaranteed by Yutaka Niihara, M.D., CEO and Willis C. Lee, COO & CFO.

 

Signed Under Penalty of Perjury, this    30th     day of    _May    ,   2018    

 

 

Emmaus Life Sciences, Inc.

 

 

 

/s/ Yutaka Niihara_____________________________ 

By: Yutaka Niihara, M.D., MPH, Chairman and CEO

 

 

 

/s/ Willis C. Lee______________________________ 

By: Willis C. Lee, COO and CFO

 

 

 

/s/ The Shitabata Family Trust___________________ 

By: Lender

 

 

 

ATTACHMENT 1

 

Lender’s Name: The Shitabata Family Trust

 

Lender’s Address:Exhibit 10.1

 

SETTLEMENT AGREEMENT AND MUTUAL RELEASES

 

This Settlement Agreement (this “Agreement”) is made as of July 30, 2018
(the “Effective Date”), by and between Torque Research & Development, Inc, and its assignees. (“TRD”) and
MyDx, Inc (“MyDx”). TRD and MyDx are hereinafter referred to jointly as the “Parties” and make this Agreement
in reference to the following:

 

WHEREAS, MYDX
executed a Research & Development Agreement dated February 8, 2017 (the “TRD Agreement”) and the Exclusive License
Agreement dated February 8, 2017 with TRD (the “License” Agreement);

 

WHEREAS, MyDx
has been unable to perform on its obligations and pursuant to the terms of this Research and Development and Exclusive License
Agreement which are in default (the “Outstanding Fees”);

 

WHEREAS, The
Parties have determined that it is in the best interest to settle payments for past product development, design and engineering
services and license the exclusive access to intellectual property for use by MYDX for the ECO Smart Pen from the Effective date
forward and to continue its services pursuant to the TRD Agreement and License Agreement.

 

WHEREAS, the
Parties wish to settle, resolve and compromise all claims, disputes or other issues that may exist between them concerning past
payments due and past research and development Services under the TRD and License Agreement.

 

NOW THEREFORE, in
consideration of the mutual releases and promises contained herein and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties agree as follows:

 

1. Settlement
Amount.

 

a. The
Parties agree that in full and final satisfaction of any and all claims, disputes or issues that exist between them:

 

(ii) TRD shall be entitled
to the issuance of $45,355 in MyDx Series B Preferred share and a Warrant convertible into up to 7.5% of MyDx, Inc. common stock.
All appropriate agreements contemplated in the TRD Agreement and License Agreement will be executed and delivered to BCI including
but not limited to approval from the Board of Directors and the Transfer Agent irrevocable instruction to issue the underlying
common shares up to one hundred and fifty percent of the shares.

 

     

     

    

 

Neither TRD nor MYDX
shall be entitled to any additional past services, cash, or other payment from each other of any kind prior to the Effective date
of this Agreement.

 

2. Compromise.
The Parties agree and acknowledge that this Agreement is the result of a compromise and shall not be construed as an admission
by any of the Parties of any liability, wrongdoing, or responsibility on their part or on the part of their predecessors, successors,
assigns, agents, parents, subsidiaries, affiliates, officers, directors, advisors, sub-contractors, employees or assignees. Indeed,
the Parties expressly deny any such liability, wrongdoing or responsibility.

 

3. Payment in Full.
The provisions agreed to the parties as set forth in Section 1 shall be in full and final satisfaction of any past amounts
claimed or owed prior to the Effective date by either of the parties.

 

4. Releases.

 

Release By MYDX.
Except as to those obligations created by this Agreement, MYDX does hereby fully and forever release, acquit and discharge TRD
along with TRD’, attorneys, officers, principals, directors, shareholders, joint and co-venturers, employees, sub contractors,
advisors, insurers, agents, administrators, executors, heirs, family members, assigns and representatives of every nature, from
any and all accounts, allegations, claims, costs, debts, demands, expenses, injuries, liabilities, liens, losses or damages, obligations,
rights, actions at law in equity or otherwise, and causes of action whatsoever including any third Party right to indemnity or
contribution in reference to any claim related (whether directly or indirectly) to the action, known or unknown, suspected or
unsuspected, and those that exist as well as those that may come into existence in the future against TRD. This release shall
be construed as broadly as possible in favor of TRD. As to such matters being released, MYDX expressly waives and relinquishes
any right or benefit, which he has or may have under the provisions of Section 1542 of the Civil Code of the State of California
or under any similar statute or principle of common law, which provides as follows:

 

“A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH
IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

MYDX and TRD, and each
of them, hereby expressly, understand and acknowledge the significance and consequences of the foregoing specific waiver of said
Section 1542. The Parties, and each of them, intentionally waive the provisions of Section 1542 upon the advice of his, her or
its legal counsel, and each Party accepts full responsibility for any injury, damage or loss which may hereafter arise in respect
of such releases, although unknown or unanticipated at the time of execution of this Agreement.

 

5. Release By TRD.
Except as to those obligations created by this Agreement, TRD does hereby fully and forever release, acquit and discharge MYDX
for all past payables due prior to the Effective date of this Agreement along with MYDX’s, attorneys, officers, principals,
directors, shareholders, joint and co- venturers, employees, subcontractors, advisors, insurers, agents, administrators, executors,
heirs, family members, assigns and representatives of every nature, from any and all accounts, allegations, claims, costs, debts,
demands, expenses, injuries, liabilities, liens, losses or damages, obligations, rights, actions at law in equity or otherwise,
and causes of action whatsoever including any third party right to indemnity or contribution in reference to any claim related
(whether directly or indirectly) to the Action, known or unknown, suspected or unsuspected, and those that exist as well as those
that may come into existence in the future against MYDX. This release shall be construed as broadly as possible in favor of MYDX.
As to such matters being released, TRD expressly waive and relinquish any right or benefit, which they have or may have under
the provisions of Section 1542 of the Civil Code of the State of California or under any similar statute or principle of common
law, which provides as follows:

 

“A GENERAL RELEASE DOES
NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

     

     

    

 

TRD and MYDX, and each of them,
hereby expressly, understand and acknowledge the significance and consequences of the foregoing specific waiver of said Section
1542. The Parties, and each of them, intentionally waive the provisions of Section 1542 upon the advice of his, her or its legal
counsel, and each Party accepts full responsibility for any injury, damage or loss which may hereafter arise in respect of such
releases, although unknown or unanticipated at the time of execution of this Agreement.

 

6. Reserve Shares
of MyDx. 

 

MyDx will reserve
the number of shares required under the instrument defined in Section 1 and no less than one hundred and fifty percent of the
shares underling the Warrant exercise.

 

7. Non-Disparagement.
Each Party agrees not to disparage the other, or otherwise take any action which could reasonably be expected to adversely
affect the other Party’s personal or professional reputation.

 

8. Miscellaneous
Terms and Conditions.

 

a. Following
execution of this Agreement, the Parties shall as soon as practicable take the actions and prepare any and all appropriate documents
reasonably necessary to effectuate this Agreement.

 

b. Each
Party shall bear its own attorneys’ fees and costs.

 

b. This Agreement
may be modified only by a written document signed by the Parties. No waiver of this Agreement or of any of the promises,
obligations, terms, or conditions hereof shall be valid unless it is written and signed by the Party against whom the waiver
is to be enforced.

 

    1

     

    

 

e. This
Agreement shall be binding upon and shall inure to the benefit of the Parties thereto, their predecessors, successors, parents,
subsidiaries, affiliates, assigns, agents, directors, officers, employees, advisors, sub-contractors and shareholders.

 

f. If
any part or any provision of this Agreement shall be finally determined to be invalid or unenforceable under applicable law, that
part shall be ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining
parts of said provision or the remaining provisions of said Agreement. Furthermore, the Parties agree that in the event of an illegal,
invalid or unenforceable provision, the Parties shall use their best efforts to induce the reviewing court to substitute a legally
enforceable provision effectuating the intent of the Parties (as can be discerned from the subject provision and the rest of the
Agreement) as closely as possible, and, should the court be unwilling to perform such substitution, to use their best efforts to
do so between themselves and to add such new provision to this Agreement.

 

g. This
Agreement shall be governed by and construed in accordance with laws of California, without regard to its choice of law rules.
The state or federal courts situated in North San Diego County and shall retain exclusive jurisdiction over any and all disputes
arising out of or otherwise relating to the subject matter of this Agreement.

 

h. Each
Party acknowledges that it has read the document thoroughly and completely, has had the opportunity to consult legal counsel of
its choosing, understands the rights, remedies and allegations surrounding the execution of this document, and that the document
is executed voluntarily.

 

i. Each
person who executes this Agreement by or on behalf of each respective Party warrants and represents that he or she has been duly
authorized and empowered to execute and deliver this Agreement on behalf of such Party.

 

j. The
Parties cooperated in the drafting of this Agreement, and in the event that it is determined that any provision herein is ambiguous,
that provision shall not be presumptively construed against either Party.

 

k. In
the event that either Party breaches any term of this Agreement and the other Party is required to employ counsel to enforce its
rights, the prevailing Party shall be entitled to recover its attorneys’ fees and costs incurred therein.

 

    2

     

    

 

l. This Agreement
contains the complete agreement between the Parties with respect to its subject matter and supersedes any and all prior
agreements, understanding, promises, warranties, and representations made by each Party to the other concerning the subject
matter.

 

m. The Parties hereby
warrant and represent that they have not assigned or in any way transferred or conveyed all or any portion of the claims
covered by this Agreement, and to their knowledge, no other person or entity has a right to any claim that purports to be
settled by this Agreement. The Parties acknowledge and agree that this warranty and representation is an essential and
material term of this Agreement, without which they would not have entered into it. The Parties each agree to defend and to
hold each other harmless against the claims of any other person or entity asserting a claim or right that purports to be
settled by the Agreement.

 

9. Counterparts
/ Facsimile Signatures. This Agreement may be executed in counterparts, and each counterpart, when executed, shall
have the efficacy of a signed original. This Agreement may be executed by facsimile signatures which shall be deemed to have
the same force and effect as an original signature.

 

WHEREFORE, having
fully read and understood the terms of this Agreement, the Parties sign their names below with the intention that they shall be
bound by it.

 

	MYDX, INC.	 
	 	 
	By:	/s/ Daniel Yazbeck	 
	Daniel Yazbeck, CEO	 
	 	 
	Torque Research & Development, Inc.	 
	 	 
	By:	/s/  Julie Lobato	 
	By Its: Julie Lobato, Exec. Vice President	 

 

    3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00286-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00286-of-00352.parquet"}]]