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NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY 

THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES 

ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT 

OF 1933,  AS  AMENDED, OR  APPLICABLE  STATE SECURITIES LAWS.   THE 

SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR 

ASSIGNED (I)  IN  THE  ABSENCE  OF (A)  AN  EFFECTIVE  REGISTRATION 

STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS 

AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE 

SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT 

REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD 

PURSUANT    TO    RULE

144

OR    RULE

144A    UNDER    SAID    ACT.

NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. 

Principal Amount: $75,000.00

Issue Date: August 31, 2015

Debt Settlement Price: $75,000.00 

CONVERTIBLE PROMISSORY NOTE 

Force Minerals Corporation,  a  Nevada  corporation (hereinafter  called  the “Borrower”),  hereby  promises  to  pay  to  the  order  of  Rancho Capital Management, a Nevada corporation, or registered assigns (the “Holder”) the sum of $75,000.00 together with any interest as set forth herein, on March 1, 2016 (the “Maturity Date”), and to pay interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise.  This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note, which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum from the due date thereof until the same is paid (“Default Interest”).  Interest shall commence accruing on the date that the Note is fully paid and shall be computed on the basis of a 365-day year and the actual number of days elapsed.  All payments due hereunder (to the extent not converted into Common free trading stock, $0.001par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America.  All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note.  Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a business day, the same shall instead be due on the next succeeding day which is a business day and, in the case of any interest payment date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining the amount of interest due on such date.  As used in this Note, the term “business day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the city of New York, New York are authorized or required by law or executive order to remain closed.  Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Debt Settlement Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Debt Settlement Agreement”). 

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This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof. 

The following terms shall apply to this Note: 

ARTICLE I. CONVERSION RIGHTS 

1.1 

Conversion Right.  The Holder shall have the right from time to time, and 

at any time during the period beginning on the date, which is one hundred eighty (180) days, 

following the dates listed for each invoice listed in Exhibit B.  The Maturity Dates for invoice dated August 31, 2015 for $75,000.00 is March 1, 2016, (i) the Maturity Date and (ii) the date of payment of the Default Amount (as defined in Article III) pursuant to Section 1.6(a) or Article III, each in respect of the remaining outstanding principal amount of this Note to convert all or any part of the outstanding and unpaid principal amount of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”); provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock.

For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be 

determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as 

amended  (the “Exchange Act”), and  Regulations 13D-G  thereunder,  except  as  otherwise 

provided in clause (1) of such proviso, provided, further, however, that the limitations on 

conversion may be waived by the Holder upon, at the election of the Holder, not less than 61 

days’ prior notice to the Borrower, and the provisions of the conversion limitation shall continue 

to apply until such 61st day (or such later date, as determined by the Holder, as may be specified 

in such notice of waiver).  The number of shares of Common Stock to be issued upon each 

conversion of this Note shall be determined by dividing the Conversion Amount (as defined 

below) by the applicable Conversion Price then in effect on the date specified in the notice of 

conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to 

the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of 

Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably 

expected to result in, notice) to the Borrower before 6:00 p.m., Las Vegas, Nevada time on 

such conversion date (the “Conversion Date”).  

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The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) at the Borrower’s option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Borrower’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.

1.2

Conversion Price.

(a)

Calculation of  Conversion  Price.    The conversion price (the

“Conversion Price”) shall equal the Variable Conversion Price (as defined herein) (subject to 

equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower 

relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, 

combinations, recapitalization, reclassifications, extraordinary distributions and similar events). 

The "Conversion Price" shall mean par .001 multiplied by the number of Common Stock converted at the time. 

(b) 

Conversion Price During Major Announcements.  Notwithstanding 

anything contained in Section 1.2(a) to the contrary, in the event the Borrower (i) makes a public 

announcement that it intends to consolidate or merge with any other corporation (other than a 

merger in which the Borrower is the surviving or continuing corporation and its capital stock is 

unchanged) or sell or transfer all or substantially all of the assets of the Borrower or (ii) any 

person, group or entity (including the Borrower) publicly announces a tender offer to Purchase 

50% or more of the Borrower’s Common Stock (or any other takeover scheme) (the date of the 

announcement referred to in clause (i) or (ii) is hereinafter referred to as the “Announcement 

Date”), then the Conversion Price shall, effective upon the Announcement Date and continuing 

through the Adjusted Conversion Price Termination Date (as defined below), be equal to the 

lower of (x) the Conversion Price which would have been applicable for a Conversion occurring 

on the Announcement Date and (y) the Conversion Price that would otherwise be in effect. From 

and after the Adjusted Conversion Price Termination Date, the Conversion Price shall be 

determined as set forth in this Section 1.2(a).  For purposes hereof, “Adjusted Conversion Price 

Termination Date” shall mean, with respect to any proposed transaction or tender offer (or takeover scheme) for which a public announcement as contemplated by this Section 1.2(b) has been made, the date upon which the Borrower (in the case of clause (i) above) or the person, group or entity (in the case of clause (ii) above) consummates or publicly announces the termination or abandonment of the proposed transaction or tender offer (or takeover scheme) which caused this Section 1.2(b) to become operative. 

1.3

Authorized Shares.  The Borrower covenants that during the period the

conversion right exists, the Borrower will reserve from its authorized and unissued Common 

Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of 

Common Stock upon the full conversion of this Note issued pursuant to the Debt Settlement Agreement. 

The Borrower is required at all times to have authorized and reserved two times the number of 

shares that is actually issuable upon full conversion of the Note (based on the Conversion Price 

of the Notes in effect from time to time)(the “Reserved Amount”).  

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The Reserved Amount shall be increased from time to time in accordance with the Borrower’s obligations pursuant to Section 4(g) of the Debt Settlement Agreement.  The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable.  In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Notes.  The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note. 

If, at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note. 

1.4

Method of Conversion.

(a)

Mechanics of Conversion.  Subject to Section 1.1, this Note may

be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower. 

(b) 

Surrender of Note Upon Conversion.  Notwithstanding anything to 

the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, 

the Holder shall not be required to physically surrender this Note to the Borrower unless the 

entire unpaid principal amount of this Note is so converted.  The Holder and the Borrower shall 

maintain records showing the principal amount so converted and the dates of such conversions or 

shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to 

require physical surrender of this Note upon each such conversion.  In the event of any dispute or 

discrepancy, such records of the Borrower shall, prima facie, be controlling and determinative in 

the absence of manifest error.  Notwithstanding the foregoing, if any portion of this Note is 

converted as aforesaid, the Holder may not transfer this Note unless the Holder first physically 

surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and deliver 

upon the order of the Holder a new Note of like tenor, registered as the Holder (upon payment by 

the Holder of any applicable transfer taxes) may request, representing in the aggregate the 

remaining unpaid principal amount of this Note.  The Holder and any assignee, by acceptance of 

this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following 

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conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the amount stated on the face hereof. 

(c) 

Payment of Taxes.  The Borrower shall not be required to pay any 

tax which may be payable in respect of any transfer involved in the issue and delivery of shares 

of Common Stock or other securities or property on conversion of this Note in a name other than 

that of the Holder (or in street name), and the Borrower shall not be required to issue or deliver 

any such shares or other securities or property unless and until the person or persons (other than 

the Holder or the custodian in whose street name such shares are to be held for the Holder’s 

account) requesting the issuance thereof shall have paid to the Borrower the amount of any such 

tax or shall have established to the satisfaction of the Borrower that such tax has been paid. 

(d) 

Delivery of Common Stock Upon Conversion.  Upon receipt by 

the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Debt Settlement Agreement. 

(e) 

Obligation of Borrower to Deliver Common Stock.  Upon receipt 

by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of 

record of the Common Stock issuable upon such conversion, the outstanding principal amount 

and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such 

conversion, and, unless the Borrower defaults on its obligations under this Article I, all rights 

with respect to the portion of this Note being so converted shall forthwith terminate except the 

right to receive the Common Stock or other securities, cash or other assets, as herein provided, 

on such conversion.  If the Holder shall have given a Notice of Conversion as provided herein, 

the Borrower’s obligation to issue and deliver the certificates for Common Stock shall be 

absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the 

same, any waiver or consent with respect to any provision thereof, the recovery of any judgment 

against any person or any action to enforce the same, any failure or delay in the enforcement of 

any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, 

recoupment, limitation or termination, or any breach or alleged breach by the Holder of any 

obligation to the Borrower, and irrespective of any other circumstance which might otherwise 

limit such obligation of the Borrower to the Holder in connection with such conversion.  The 

Conversion Date specified in the Notice of Conversion shall be the Conversion Date so long as 

the Notice of Conversion is received by the Borrower before 6:00 p.m., Las Vegas, Nevada 

time, on such date. 

(f) 

Delivery of Common Stock by Electronic Transfer.  In lieu of 

delivering physical certificates representing the Common Stock issuable upon conversion, 

provided  the  Borrower  is  participating  in  the  Depository  Trust  Company (“DTC”)  Fast 

Automated  Securities  Transfer 

(“FAST”)  program,  upon  request  of  the  Holder  and  its 

compliance with the provisions contained in Section 1.1 and in this Section 1.4, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system. 

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(g)

Failure to Deliver Common Stock Prior to Deadline.  Without in

any way limiting the Holder’s right to pursue other remedies, including actual damages and/or 

equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion 

of this Note is not delivered by the Deadline (other than a failure due to the circumstances 

described in Section 1.3 above, which failure shall be governed by such Section) the Borrower 

shall pay to the Holder $2,000 per day in cash, for each day beyond the Deadline that the 

Borrower fails to deliver such Common Stock.  Such cash amount shall be paid to Holder by the 

fifth day of the month following the month in which it has accrued or, at the option of the Holder 

(by written notice to the Borrower by the first day of the month following the month in which it 

has accrued), shall be added to the principal amount of this Note, in which event interest shall 

accrue thereon in accordance with the terms of this Note and such additional principal amount 

shall be convertible into Common Stock in accordance with the terms of this Note.  The 

Borrower agrees that the right to convert is a valuable right to the Holder.  The damages resulting 

from a failure, attempt to frustrate, interference with such conversion right are difficult if not 

impossible to qualify.  Accordingly the parties acknowledge that the liquidated damages 

provision contained in this Section 1.4(g) are justified. 

1.5 

Concerning the Shares.  The shares of Common Stock issuable upon 

conversion of this Note may not be sold or transferred unless  (i) such shares are sold pursuant to 

an effective registration statement under the Act or (ii) the Borrower or its transfer agent shall 

have been furnished with an opinion of  counsel (which opinion shall be in form, substance and 

scope customary for opinions of counsel in comparable transactions) to the effect that the shares 

to be sold or transferred may be sold or transferred pursuant to an exemption from such 

registration or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act (or a 

successor rule) (“Rule 144”) or (iv) such shares are transferred to an “affiliate” (as defined in 

Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance 

with this Section 1.5 and who is an Accredited Investor (as defined in the Debt Settlement Agreement). Except as otherwise provided in the Debt Settlement Agreement (and subject to the removal provisions set forth below), until such time as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption that permits removal of the legend, shall bear 

a legend substantially in the following form, as appropriate: 

“NEITHER    THE    ISSUANCE    AND    SALE    OF    THE    SECURITIES 

REPRESENTED  BY  THIS  CERTIFICATE  NOR  THE  SECURITIES  INTO 

WHICH    THESE    SECURITIES    ARE    EXERCISABLE    HAVE    BEEN 

REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR 

APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE 

OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE 

ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE 

SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) 

AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY 

THE   HOLDER),   IN   A   GENERALLY   ACCEPTABLE   FORM,   THAT 

REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS 

SOLD  PURSUANT  TO  RULE  144  OR  RULE  144A  UNDER  SAID  ACT. 

NOTWITHSTANDING   THE   FOREGOING,   THE   SECURITIES   MAY   BE 

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PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER   LOAN   OR   FINANCING   ARRANGEMENT   SECURED   BY   THE SECURITIES.” 

The legend set forth above shall be removed and the Borrower shall issue to the 

Holder a new certificate therefore free of any transfer legend if (i) the Borrower or its transfer 

agent shall have received an opinion of counsel, in form, substance and scope customary for 

opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such 

Common Stock may be made without registration under the Act, which opinion shall be accepted 

by the Company so that the sale or transfer is effected or (ii) in the case of the Common Stock 

issuable upon conversion of this Note, such security is registered for sale by the Holder under an 

effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 

144 without any restriction as to the number of securities as of a particular date that can then be 

immediately sold.  In the event that the Company does not accept the opinion of counsel 

provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from 

registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of 

Default pursuant to Section 3.2 of the Note. 

1.6

Effect of Certain Events.

(a)

Effect of Merger, Consolidation, Etc.  At the option of the Holder,

the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the 

effectuation by the Borrower of a transaction or series of related transactions in which more than 

50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other 

business combination of the Borrower with or into any other Person (as defined below) or 

Persons when the Borrower is not the survivor shall either: (i) be deemed to be an Event of 

Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III) or (ii) be treated pursuant to Section 1.6(b) hereof. “Person”  shall  mean  any  individual,  corporation,  limited  liability  company,  partnership, association, trust or other entity or organization. 

(b) 

Adjustment Due to Merger, Consolidation, Etc.  If, at any time 

when this Note is issued and outstanding and prior to conversion of all of the Notes, there shall 

be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other 

similar event, as a result of which shares of Common Stock of the Borrower shall be changed 

into the same or a different number of shares of another class or classes of stock or securities of 

the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of 

the assets of the Borrower other than in connection with a plan of complete liquidation of the 

Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion 

of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the 

shares  of  Common  Stock  immediately  theretofore  issuable  upon  conversion,  such  stock, 

securities or assets which the Holder would have been entitled to receive in such transaction had 

this Note been converted in full immediately prior to such transaction (without regard to any 

limitations on conversion set forth herein), and in any such case appropriate provisions shall be 

made with respect to the rights and interests of the Holder of this Note to the end that the 

provisions hereof (including, without limitation, provisions for adjustment of the Conversion 

Price and of the number of shares issuable upon conversion of the Note) shall thereafter be 

applicable, as nearly as may be practicable in relation to any securities or assets thereafter 

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deliverable upon the conversion hereof.  The Borrower shall not affect any transaction described 

in this Section 1.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior 

written notice (but in any event at least fifteen (15) days prior written notice) of the record date 

of the special meeting of shareholders to approve, or if there is no such record date, the 

consummation   of,   such   merger,   consolidation,   exchange   of   shares,   recapitalization, 

reorganization or other similar event or sale of assets (during which time the Holder shall be 

entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the 

Borrower) assumes by written instrument the obligations of this Section 1.6(b).  The above 

provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share 

exchanges. 

(c) 

Adjustment Due to Distribution.  If the Borrower shall declare or 

make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution. 

(d) 

Adjustment Due to Dilutive Issuance.  If, at any time when any 

Notes are issued and outstanding, the Borrower issues or sells, or in accordance with this Section 

1.6(d) hereof is deemed to have issued or sold, any shares of Common Stock for no consideration 

or for a consideration per share (before deduction of reasonable expenses or commissions or 

underwriting discounts or allowances in connection therewith) less than the Conversion Price in 

effect on the date of such issuance (or deemed issuance) of such shares of Common Stock (a 

“Dilutive Issuance”), then immediately upon the Dilutive Issuance, the Conversion Price will be 

reduced to the amount of the consideration per share received by the Borrower in such Dilutive 

Issuance. 

The Borrower shall be deemed to have issued or sold shares of Common 

Stock if the Borrower in any manner issues or grants any warrants, rights or options (not 

including employee stock option plans), whether or not immediately exercisable, to subscribe for 

or to purchase Common Stock or other securities convertible into or exchangeable for Common Stock (“Convertible Securities”) (such warrants, rights and options to Purchase Common Stock 

or Convertible Securities are hereinafter referred to as “Options”) and the price per share for 

which Common Stock is issuable upon the exercise of such Options is less than the Conversion 

Price then in effect, then the Conversion Price shall be equal to such price per share.  For 

purposes of the preceding sentence, the “price per share for which Common Stock is issuable 

upon the exercise of such Options” is determined by dividing (i) the total amount, if any, 

received or receivable by the Borrower as consideration for the issuance or granting of all such 

Options, plus the minimum aggregate amount of additional consideration, if any, payable to the 

Borrower upon the exercise of all such Options, plus, in the case of Convertible Securities 

issuable upon the exercise of such Options, the minimum aggregate amount of additional 

consideration payable upon the conversion or exchange thereof at the time such Convertible 

Securities first become convertible or exchangeable, by (ii) the maximum total number of shares 

of Common Stock issuable upon the exercise of all such Options (assuming full conversion of 

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Convertible Securities, if applicable).  No further adjustment to the Conversion Price will be 

made upon the actual issuance of such Common Stock upon the exercise of such Options or upon 

the conversion or exchange of Convertible Securities issuable upon exercise of such Options. 

Additionally, the Borrower shall be deemed to have issued or sold shares 

of Common Stock if the Borrower in any manner issues or sells any Convertible Securities, 

whether or not immediately convertible (other than where the same are issuable upon the 

exercise of Options), and the price per share for which Common Stock is issuable upon such 

conversion or exchange is less than the Conversion Price then in effect, then the Conversion 

Price shall be equal to such price per share.  For the purposes of the preceding sentence, the 

“price per share for which Common Stock is issuable upon such conversion or exchange” is 

determined by dividing (i) the total amount, if any, received or receivable by the Borrower as 

consideration for the issuance or sale of all such Convertible Securities, plus the minimum 

aggregate amount of additional consideration, if any, payable to the Borrower upon the 

conversion or exchange thereof at the time such Convertible Securities first become convertible 

or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon 

the conversion or exchange of all such Convertible Securities.  No further adjustment to the 

Conversion Price will be made upon the actual issuance of such Common Stock upon conversion 

or exchange of such Convertible Securities. 

(e) 

Share Purchase Rights.  If, at any time when any Notes are issued and 

outstanding, the Borrower issues any convertible securities or rights to Common stock, warrants, 

securities or other property (the “Purchase Rights”) pro rata to the record holders of any class of 

Common Stock, then the Holder of this Note will be entitled to acquire, upon the terms 

applicable to such Share Purchase Rights, the aggregate Share Purchase Rights which such Holder could have acquired if such Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations on conversion contained 

herein) immediately before the date on which a record is taken for the grant, issuance or sale of 

such Debt Settlement Rights or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Debt Settlement Rights. 

(f) 

Notice of Adjustments.  Upon the occurrence of each adjustment 

or readjustment of the Conversion Price as a result of the events described in this Section 1.6, the Borrower, at its expense, shall promptly compute such adjustment or readjustment and prepare and furnish to the Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based.  The Borrower shall, upon the written request at any time of the Holder, furnish to such Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect and (iii) 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 conversion of the Note. 

1.7 

Trading Market Limitations.  Unless permitted by the applicable rules and 

regulations of the principal securities market on which the Common Stock is then listed or 

traded, in no event shall the Borrower issue upon conversion of or otherwise pursuant to this 

Note and the other Notes issued pursuant to the Debt Settlement Agreement more than the maximum number of shares of Common Stock that the Borrower can issue pursuant to any rule of the principal United States securities market on which the Common Stock is then traded (the “Maximum Share Amount”), which shall be 4.99% of the total shares outstanding on the Closing 

Date (as defined in the Debt Settlement Agreement), subject to equitable adjustment from time to time 

9 

for stock splits, stock dividends, combinations, capital reorganizations and similar events relating 

to the Common Stock occurring after the date hereof.  Once the Maximum Share Amount has 

been issued, if the Borrower fails to eliminate any prohibitions under applicable law or the rules 

or regulations of any stock exchange, interdealer quotation system or other self-regulatory 

organization with jurisdiction over the Borrower or any of its securities on the Borrower’s ability 

to issue shares of Common Stock in excess of the Maximum Share Amount, in lieu of any 

further right to convert this Note, this will be considered an Event of Default under Section 3.3 

of the Note. 

1.8 

Status as Shareholder.  Upon submission of a Notice of Conversion by a 

Holder, (i) the shares covered thereby (other than the shares, if any, which cannot be issued 

because their issuance would exceed such Holder’s allocated portion of the Reserved Amount or 

Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the 

Holder’s rights as a Holder of such converted portion of this Note shall cease and terminate, 

excepting only the right to receive certificates for such shares of Common Stock and to any 

remedies provided herein or otherwise available at law or in equity to such Holder because of a 

failure by the Borrower to comply with the terms  of this Note.  Notwithstanding the foregoing, 

if a Holder has not received certificates for all shares of Common Stock prior to the tenth (10th) 

business day after the expiration of the Deadline with respect to a conversion of any portion of 

this Note for any reason, then (unless the Holder otherwise elects to retain its status as a holder 

of Common Stock by so notifying the Borrower) the Holder shall regain the rights of a Holder of 

this Note with respect to such unconverted portions of this Note and the Borrower shall, as soon 

as practicable, return such unconverted Note to the Holder or, if the Note has not been 

surrendered, adjust its records to reflect that such portion of this Note has not been converted.  In 

all cases, the Holder shall retain all of its rights and remedies (including, without limitation, (i) 

the right to receive Conversion Default Payments pursuant to Section 1.3 to the extent required 

thereby for such Conversion Default and any subsequent Conversion Default and (ii) the right to 

have the Conversion Price with respect to subsequent conversions determined in accordance with 

Section 1.3) for the Borrower’s failure to convert this Note. 

1.9 

Prepayment.  Notwithstanding anything to the contrary contained in this 

Note, at any time during the period beginning on the Issue Date and ending on the date which is 

ninety (90) days following the issue date, the Borrower shall have the right, exercisable on not 

less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the 

outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9. 

Any notice of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to the 

Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising 

its right to prepay the Note, and (2) the date of prepayment which shall be not more than three 

(3) Trading Days from the date of the Optional Prepayment Notice.  On the date fixed for 

prepayment (the “Optional Prepayment Date”), the Borrower shall make payment of the 

Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified 

by the Holder in writing to the Borrower at least one (1) business day prior to the Optional 

Prepayment Date.  If the Borrower exercises its right to prepay the Note, the Borrower shall 

make payment to the Holder of an amount in cash (the “Optional Prepayment Amount”) equal to 

140%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus 

(x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional 

Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and 

(x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.  If the 

Borrower delivers an Optional Prepayment Notice and fails to pay the Optional Prepayment 

10 

Amount due to the Holder of the Note within two (2) business days following the Optional 

Prepayment Date, the Borrower shall forever forfeit its right to prepay the Note pursuant to this 

Section 1.9. 

Notwithstanding anything to the contrary contained in this Note, at any time 

during the period beginning  on the date of the invoices listed on Exhibit B, which is ninety-one (91) days following the issue date and ending on the date of the invoices listed on Exhibit B, which is one hundred fifty (150) days following the issue date, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9.  Any Optional Prepayment Notice shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice.  On the Optional Prepayment Date, the Borrower shall make payment of the Second Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date.  If the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash (the “Second Optional Prepayment Amount”) equal to 145%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.  If the Borrower delivers an Optional Prepayment Notice and fails to pay the Second Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepay the Note pursuant to this Section 1.9. 

Notwithstanding anything to the contrary contained in this Note, at any time 

during the period beginning  on the date of the invoices listed on Exhibit B, which is one hundred fifty-one (151) days following the issue date and ending on the date which is one hundred eighty (180) days following the issue date of the invoices listed on Exhibit B, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9.  Any Optional Prepayment Notice shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice.  On the Optional Prepayment Date, the Borrower shall make payment of the Third Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date.  If the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash (the “Third Optional Prepayment Amount”) equal to 150%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.  If the Borrower delivers an Optional Prepayment Notice and fails to pay the Third Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepay the Note pursuant to this Section 1.9. 

11 

After the expiration of one hundred eighty (180) following the date of the Note, the Borrower shall have no right of prepayment. 

ARTICLE II.  CERTAIN COVENANTS 

2.1 

Distributions on Capital Stock.  So long as the Borrower shall have any 

obligation under this Note, the Borrower shall not without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution in respect of its capital stock except for distributions pursuant to any shareholders’ rights plan which is approved by a majority of the Borrower’s disinterested directors. 

2.2 

Restriction on Stock Repurchase.  So long as the Borrower shall have any 

obligation under this Note, the Borrower shall not without the Holder’s written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for property or other securities or otherwise) in any one transaction or series of related transactions any shares of capital stock of the Borrower or any warrants, rights or options to purchase or acquire any such shares. 

2.3 

Borrowings.  So long as the Borrower shall have any obligation under this 

Note, the Borrower shall not, without the Holder’s written consent, create, incur, assume 

guarantee, endorse,  contingently  agree  to  purchase or otherwise become  liable  upon  the 

obligation  of  any  person,  firm,  partnership,  joint  venture  or  corporation,  except  by  the 

endorsement of negotiable instruments for deposit or collection, or suffer to exist any liability for 

borrowed money, except (a) borrowings in existence or committed on the date hereof and of 

which the Borrower has informed Holder in writing prior to the date hereof, (b) indebtedness to 

trade creditors or financial institutions incurred in the ordinary course of business or (c) 

borrowings, the proceeds of which shall be used to repay this Note. 

2.4 

Sale of Assets.  So long as the Borrower shall have any obligation under 

this Note, the Borrower shall not, without the Holder’s written consent, sell, lease or otherwise 

dispose of any significant portion of its assets outside the ordinary course of business.  Any 

consent to the disposition of any assets may be conditioned on a specified use of the proceeds of 

disposition. 

2.5 

Advances and Loans.  So long as the Borrower shall have any obligation 

under this Note, the Borrower shall not, without the Holder’s written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation, including, without limitation, officers, directors, employees, subsidiaries and affiliates of the Borrower, except loans, credits or advances (a) in existence or committed on the date hereof and which the Borrower has informed Holder in writing prior to the date hereof, (b) made in the ordinary course of business or (c) not in excess of $500,000. 

ARTICLE III.  EVENTS OF DEFAULT 

If any of the following events of default (each, an “Event of Default”) shall occur: 

12 

3.1

Failure to Pay Principal or Interest.  The Borrower fails to pay the

principal  hereof  or  interest  thereon  when  due  on  this  Note,  whether  at  maturity,  upon acceleration or otherwise. 

3.2 

Conversion and the Shares.  The  Borrower  fails to issue shares of 

Common Stock to the Holder (or announces or threatens in writing that it will not honor its 

obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in 

accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer 

(issue) (electronically or in certificated form) any certificate for shares of Common Stock issued 

to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this 

Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its 

transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate 

for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant 

to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not 

to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive 

legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any 

shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this 

Note as and when required by this Note (or makes any written announcement, statement or threat 

that it does not intend to honor the obligations described in this paragraph) and any such failure 

shall continue uncured (or any written announcement, statement or threat not to honor its 

obligations shall not be rescinded in writing) for three (3) business days after the Holder shall 

have delivered a Notice of Conversion.  It is an obligation of the Borrower to remain current in 

its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of 

this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer 

agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer 

agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the 

Holder within forty eight (48) hours of a demand from the Holder. 

3.3 

Breach of Covenants.  The Borrower breaches any material covenant or 

other material term or condition contained in this Note and any collateral documents including but not limited to the Debt Settlement Agreement and such breach continues for a period of ten (10) days after written notice thereof to the Borrower from the Holder. 

3.4 

Breach  of  Representations  and  Warranties.    Any  representation  or 

warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Debt Settlement Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Debt Settlement Agreement. 

3.5 

Receiver or Trustee.  The Borrower or any subsidiary of the Borrower 

shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed. 

3.6 

Judgments.  Any money judgment, writ or similar process shall be entered 

or filed against the Borrower or any subsidiary of the Borrower or any of its property or other 

assets for more than $50,000, and shall remain unvacated, unbonded or unstayed for a period of 

13 

twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld. 

3.7 

Bankruptcy.    Bankruptcy,  insolvency,  reorganization  or  liquidation 

proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower. 

3.8 

Delisting of Stock.  The Borrower shall fail to maintain the 

listing of the Stock on at least one of the OTCBB or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange. 

3.9 

Failure to Comply with the Exchange Act.  The Borrower shall fail to 

comply with the reporting requirements of the Exchange Act; and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act. 

3.10

Liquidation.   Any dissolution, liquidation, or winding up of Borrower or

any substantial portion of its business.

3.11

Cessation of Operations.

Any cessation of operations by Borrower or

Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due. 

3.12

Maintenance of Assets.

The failure by Borrower to maintain any

material intellectual property rights, personal, real property or other assets, which are necessary to conduct its business (whether now or in the future). 

3.13 

Financial Statement Restatement. 

The  restatement  of  any  financial 

statements filed by the Borrower with the SEC for any date or period from two years prior to the 

Issue Date of this Note and until this Note is no longer outstanding, if the result of such 

restatement would, by comparison to the unrestated financial statement, have constituted a 

material adverse effect on the rights of the Holder with respect to this Note or the Debt Settlement 

Agreement. 

3.14

Reverse Splits.

The  Borrower  effectuates  a  reverse  split  of  its

Common Stock without twenty (20) days prior written notice to the Holder. 

3.15 

Replacement of Transfer Agent. In the event that the Borrower proposes to 

replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Debt Settlement Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower. 

14 

3.16

Cross-Default.  Notwithstanding anything to the contrary contained in this

Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this Note.  Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder. 

Upon the occurrence and during the continuation of any Event of Default specified in 

Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due 

at the Maturity Date), the Note shall become immediately due and payable and the Borrower 

shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the 

Default Sum (as defined  herein).   UPON THE OCCURRENCE AND  DURING  THE 

CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE 

NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER 

SHALL PAY TO THE HOLDER,  IN  FULL SATISFACTION OF ITS OBLIGATIONS 

HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED 

HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of 

any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal 

hereof or interest thereon when due on this Note upon a Trading Market Prepayment Event 

pursuant to Section 1.7 or upon acceleration), 3.3, 3.4, 3.6, 3.8, 3.9, 3.11, 3.12, 3.13, 3.14, and/or 

3. 15 exercisable through the delivery of written notice to the Borrower by such Holders (the 

“Default Notice”), and upon the occurrence of an Event of Default specified the remaining 

sections of Articles III (other than failure to pay the principal hereof or interest thereon at the 

Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and 

payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, 

an amount equal to the greater of (i) 150% times the sum of (w) the then outstanding principal 

amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this 

Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, 

on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder 

pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to 

the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be 

known as the “Default Sum”) or (ii) the “parity value” of the Default Sum to be prepaid, where 

parity value means (a) the highest number of shares of Common Stock issuable upon conversion 

of or otherwise pursuant to such Default Sum in accordance with Article I, treating the Trading 

Day immediately preceding the Mandatory Prepayment Date as the “Conversion Date” for 

purposes of determining the lowest applicable Conversion Price, unless the Default Event arises 

as a result of a breach in respect of a specific Conversion Date in which case such Conversion 

Date shall be the Conversion Date), multiplied by (b) the highest Closing Price for the Common 

Stock during the period beginning on the date of first occurrence of the Event of Default and 

ending one day prior to the Mandatory Prepayment Date (the “Default Amount”) and all other 

amounts payable hereunder shall immediately become due and payable, all without demand, 

presentment or notice, all of which hereby are expressly waived, together with all costs, 

15 

including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity. 

If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect. 

ARTICLE IV. MISCELLANEOUS 

4.1 

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 privileges.  All rights and 

remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies 

otherwise available. 

4.2 

Notices.  All notices, demands, requests, consents, approvals, and other 

communications required or permitted hereunder shall be in writing and, unless otherwise 

specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, 

return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with 

charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set 

forth below or to such other address as such party shall have specified most recently by written 

notice.  Any notice or other communication required or permitted to be given hereunder shall be 

deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation 

generated by the transmitting facsimile machine, at the address or number designated below (if 

delivered on a business day during normal business hours where such notice is to be received), or 

the first business day following such delivery (if delivered other than on a business day during 

normal business hours where such notice is to be received) or (b) on the second business day 

following the date of mailing by express courier service, fully prepaid, addressed to such 

address, or upon actual receipt of such mailing, whichever shall first occur.  The addresses for 

such communications shall be: 

If to the Borrower, to: 

Force Minerals Corporation

6302 Mesedge Drive

Colorado Springs, CO 80919

Attn: Nathan Lewis, Chief Executive Officer

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

             Thomas Stepp

             15707 Rockfield Blvd, Ste. 101

              Irvine, CA 92618

Email:  tes@stepplawgroup.com

16 

If to the Holder: 

Rancho Capital Management

1155 Camino Del Mar Unit 176

Del Mar, CA 92014

4.3 

Amendments.  This Note and any provision hereof may only be amended 

by an instrument in writing signed by the Borrower and the Holder.  The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Debt Settlement Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented. 

4.4 

Assignability.  This Note shall be binding upon the Borrower and its 

successors and assigns, and shall inure to be the benefit of the Holder and its successors and 

assigns.  Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) 

of the 1933 Act).  Notwithstanding anything in this Note to the contrary, this Note may be 

pledged  as  collateral  in  connection  with  a  bona  fide  margin  account  or  other  lending 

arrangement. 

4.5 

Cost of Collection.  If default is made in the payment of this Note, the 

Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys’ fees. 

4.6 

Governing Law.  This Note shall be governed by and construed in 

accordance with the laws of the State of Nevada without regard to principles of conflicts of 

laws.  Any action brought by either party against the other concerning the transactions 

contemplated by this Note shall be brought only in the state courts of Nevada or in the federal 

courts located in the state and county of Clark.  The parties to this Note hereby irrevocably 

waive any objection to jurisdiction and venue of any action instituted hereunder and shall not 

assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. 

The Borrower and Holder waive trial by jury.  The prevailing party shall be entitled to recover 

from the other party its reasonable attorney's fees and costs.  In the event that any provision of 

this Note or any other agreement delivered in connection herewith is invalid or unenforceable 

under any applicable statute or rule of law, then such provision shall be deemed inoperative to 

the extent that it may conflict therewith and shall be deemed modified to conform with such 

statute or rule of law.

Any such provision which may prove invalid or unenforceable under any 

law shall not affect the validity or enforceability of any other provision of any agreement.   Each 

party hereby irrevocably waives personal service of process and consents to process being served 

in any suit, action or proceeding in connection with this Agreement or any other Transaction 

Document by mailing a copy thereof via registered or certified mail or overnight delivery (with 

evidence of delivery) to such party at the address in effect for notices to it under this Agreement 

and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 

4.7 

Certain Amounts.  Whenever pursuant to this Note the Borrower is 

required to pay an amount in excess of the outstanding principal amount (or the portion thereof 

required to be paid at that time) plus accrued and unpaid interest plus Default Interest on such 

interest, the Borrower and the Holder agree that the actual damages to the Holder from the 

17

receipt of cash payment on this Note may be difficult to determine and the amount to be so paid 

by the Borrower represents stipulated damages and not a penalty and is intended to compensate 

the Holder in part for loss of the opportunity to convert this Note and to earn a return from the 

sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the 

price paid for such shares pursuant to this Note.  The Borrower and the Holder hereby agree that 

such amount of stipulated damages is not plainly disproportionate to the possible loss to the 

Holder from the receipt of a cash payment without the opportunity to convert this Note into 

shares of Common Stock. 

4.8

Debt Settlement Agreement.  By its acceptance of this Note, each party agrees to

be bound by the applicable terms of the Debt Settlement Agreement.

4.9 

Notice of Corporate Events.  Except as otherwise provided below, the 

Holder of this Note shall have no rights as a Holder of Common Stock unless and only to the 

extent that it converts this Note into Common Stock. The Borrower shall provide the Holder with 

prior notification of any meeting of the Borrower’s shareholders (and copies of proxy materials 

and other information sent to shareholders).  In the event of any taking by the Borrower of a 

record of its shareholders for the purpose of determining shareholders who are entitled to receive 

payment of any dividend or other distribution, any right to subscribe for, purchase or otherwise acquire (including by way of merger, consolidation, reclassification or recapitalization) any share 

of any class or any other securities or property, or to receive any other right, or for the purpose of 

determining shareholders who are entitled to vote in connection with any proposed sale, lease or 

conveyance of all or substantially all of the assets of the Borrower or any proposed liquidation, 

dissolution or winding up of the Borrower, the Borrower shall mail a notice to the Holder, at 

least twenty (20) days prior to the record date specified therein (or thirty (30) days prior to the 

consummation of the transaction or event, whichever is earlier), of the date on which any such 

record is to be taken for the purpose of such dividend, distribution, right or other event, and a 

brief statement regarding the amount and character of such dividend, distribution, right or other 

event to the extent known at such time.  The Borrower shall make a public announcement of any 

event requiring notification to the Holder hereunder substantially simultaneously with the 

notification to the Holder in accordance with the terms of this Section 4.9. 

4.10 

Remedies.    The  Borrower  acknowledges  that  a  breach  by  it  of  its 

obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and 

purpose of the transaction contemplated hereby.  Accordingly, the Borrower acknowledges that 

the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in 

the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the 

Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing 

or curing any breach of this Note and to enforce specifically the terms and provisions thereof, 

without the necessity of showing economic loss and without any bond or other security being 

required. 

IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this August 31, 2015

Force Minerals Corporation

By: ___Nathan Lewis___________________ 

Nathan Lewis

18

EXHIBIT A

NOTICE OF CONVERSION 

The undersigned hereby elects to convert $_________________ principal amount 

of the Note (defined below) into that number of shares of Common Stock to be issued pursuant 

to the conversion of the Note (“Common Stock”) as set forth below, of Force Minerals Corporation, a Nevada corporation (the “Borrower”) according to the conditions of the convertible note of the Borrower dated as of August 31, 2015 (the “Note”), as of the date written below.  No fee will be charged to the Holder for any conversion, except for transfer taxes, if any. 

Box Checked as to applicable instructions: 

[ ]

The Borrower shall electronically transmit the Common Stock issuable pursuant

to this Notice of Conversion to the account of the undersigned or its nominee with

DTC  through  its  Deposit  Withdrawal  Agent  Commission  system

(“DWAC

Transfer”).

Name of DTC Prime Broker: Account Number: 

[ 

] 

The  undersigned  hereby  requests  that  the  Borrower  issue  a  certificate  or 

certificates for the number of shares of Common Stock set forth below (which 

numbers are based on the Holder’s calculation attached hereto) in the name(s) 

specified immediately below or, if additional space is necessary, on an attachment 

hereto: 

Rancho Capital Management

1155 Camino Del Mar Unit 176 

Del Mar, CA 92014

Attention: Certificate Delivery 

Date of Conversion:

_____________

Applicable Conversion Price:

$.001

Number of Shares of Common Stock to be Issued 

Pursuant to Conversion of the Notes:

______________

Amount of Principal Balance Due remaining 

Under the Note after this conversion:

______________

By:_____________________________

Title:  President.

Date:  ______________ 

19EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 

AMENDED AND RESTATED AGREEMENT 

AMENDED AND RESTATED AGREEMENT, dated as of October 14, 2015 (this “Agreement”), by and among Emisphere Technologies,
Inc., a Delaware corporation (hereinafter, “Emisphere”), MHR Capital Partners Master Account LP, a limited partnership organized in Anguilla, British West Indies (“Master Account”), MHR Capital Partners
(100) LP, a Delaware limited partnership (“Capital Partners (100)”), MHR Institutional Partners II LP, a Delaware limited partnership (“Institutional Partners II”) and MHR Institutional Partners IIA LP, a
Delaware limited partnership (“Institutional Partners IIA”) and Novo Nordisk A/S, a Danish corporation (hereinafter, “Novo Nordisk”). Each of Master Account, Capital Partners (100), Institutional Partners II and
Institutional Partners IIA shall be referred to herein collectively as “MHR” or the “MHR Funds”. 

WITNESSETH: 
 WHEREAS,
Emisphere and Novo Nordisk have entered into that certain Development and License Agreement (GLP-1), dated as of June 21, 2008, (the “Original GLP-1 License Agreement”), as amended by the Amendment to the Development and
License Agreement, effective as of November 13, 2008 (“GLP-1 Amendment No. 1”), the Side Letter to the Development and License Agreement, dated March 9, 2009 (the “Side Letter”) and Amendment
No. 2 to the Development and License Agreement, effective as of April 26, 2013 (“GLP-1 Amendment No. 2”), as previously provided to MHR; 

WHEREAS, Emisphere and Novo Nordisk have entered into that certain Development and License Agreement (Insulin), dated as of December 20,
2010 as previously provided to MHR (the “Insulin License Agreement”); 
 WHEREAS, upon the simultaneous execution of this
Agreement, Emisphere and Novo Nordisk are entering into Amendment No. 3 to the Original GLP-1 License Agreement, attached hereto as Exhibit A (“GLP-1 Amendment No. 3” and, together with the Original GLP-1 License
Agreement, GLP-1 Amendment No. 1, the Side Letter and GLP-1 Amendment No. 2, the “GLP-1 License Agreement”); 

WHEREAS, upon the simultaneous execution of this Agreement, Emisphere and Novo Nordisk are entered into that certain Development and License
Agreement, dated October 14, 2015, for the development and commercialization of formulations of certain active pharmaceutical ingredients with certain of Emisphere’s proprietary delivery agents for oral administration, attached hereto as
Exhibit B (the “Expansion License Agreement”); 
 WHEREAS, the GLP-1 License Agreement, the Insulin License
Agreement and the Expansion License Agreement are hereinafter each referred to individually as a “Novo Nordisk Agreement” and collectively, as the “Novo Nordisk Agreements”); 

WHEREAS, Emisphere and MHR have entered into the Investment Agreements (other than the Pledge and Security Agreement); 

WHEREAS, Emisphere and Institutional Partners IIA (on behalf of the MHR Funds) have entered into the Pledge and Security Agreement; 

 WHEREAS, pursuant to and in connection with the Investment Agreements, Institutional Partners IIA
was granted a security interest in and over all of Emisphere’s assets, including the Licensed IP (as defined below), in respect of monies owed and other obligations secured (the “Security Interest”); 

WHEREAS, Emisphere, Novo Nordisk and MHR have entered into that certain Agreement, dated as of June 21, 2008 (the “Original
Agreement”) pursuant to which, inter alia, MHR (i) consented to the execution by, and performance of, Emisphere of the Original GLP-1 License Agreement and (ii) agreed to forbear, under certain circumstances specified in the
Original Agreement, the exercise of certain rights under Section 6.5 of the Pledge and Security Agreement; 
 WHEREAS, Emisphere, Novo
Nordisk and MHR have entered into that certain Amended and Restated Agreement, dated as of December 20, 2010 (the “2010 Agreement”) amending and restating the Original Agreement pursuant to which, inter alia, MHR
(i) consented to the execution by, and performance of, Emisphere of the Insulin License Agreement and (ii) agreed to forbear, under certain circumstances specified in the 2010 Agreement, the exercise of certain rights under
Section 6.5 of the Pledge and Security Agreement; 
 WHEREAS, Emisphere, Novo Nordisk and MHR have entered into that certain Amended
and Restated Agreement, dated as of April 26, 2013 (the “2013 Agreement”) amending and restating the 2010 Agreement pursuant to which, inter alia, MHR (i) consented to the execution by Emisphere of GLP-1 Amendment
No. 2 and (ii) agreed to forbear, under certain circumstances specified in the 2013 Agreement, the exercise of certain rights under Section 6.5 of the Pledge and Security Agreement; 

WHEREAS, simultaneously with the execution of GLP-1 Amendment No. 3 and the Expansion License Agreement, Emisphere, Novo Nordisk and MHR
desire to amend and restate the 2013 Agreement in its entirety and enter into this Agreement on the express terms and conditions provided herein; 

WHEREAS, the effectiveness of this Agreement is conditioned upon the payment by Novo Nordisk to Emisphere of (i) $9 million pursuant to
Section 1.a of GLP-1 Amendment No. 3 and (ii) $5 million pursuant to Section 3.1 of the Expansion License Agreement. 

NOW, THEREFORE, in consideration of the mutual covenants, conditions and promises contained herein, the parties hereby agree as follows: 

1. Definitions. 

(a) For purposes of this Agreement: 

(i) “2005 Loan Agreement” shall mean that certain Senior Secured Term Loan Agreement, dated as of September 26, 2005,
by and among Emisphere and the lenders from time to time party thereto, as may be amended, restated or otherwise modified from time to time. 

  
 2 

 (ii) “2014 Loan Agreement” shall mean that certain Senior Secured Loan
Agreement, dated as of August 20, 2014, by and among Emisphere and the lenders from time to time party thereto, as may be amended, restated or otherwise modified from time to time. 

(iii) “Bankruptcy Code” means the Bankruptcy Code of the United States. 

(iv) “Bridge Note Holders” shall mean the creditors identified in the Bridge Notes and their successors and assigns. 

(v) “Bridge Notes” shall mean those certain Second Amended and Restated Senior Secured Bridge Promissory Notes, dated as of
August 20, 2014, by Emisphere in favor of the Bridge Note Holders, as may be amended, restated or otherwise modified from time to time. 

(vi) “Convertible Note Holders” shall mean the creditors identified in the Convertible Notes and their successors and
assigns. 
 (vii) “Convertible Notes” shall mean the Second Amended and Restated 13% Senior Secured Convertible Notes,
dated as of August 20, 2014, by Emisphere in favor of the Convertible Note Holders, as may be amended, restated or otherwise modified from time to time. 

(viii) “Financial Obligations” shall have the meaning set forth in Section 1 of the MHR License Agreement. 

(ix) “Foreclosed IP” means the Initial Foreclosed IP and Purchased Foreclosed IP, collectively. 

(x) “Foreclosure” or “Foreclosed” occurs when all of the following events have occurred (a) an Event
of Default (as defined in the 2005 Loan Agreement, 2014 Loan Agreement, Convertible Notes, Bridge Notes or Reimbursement Notes) has occurred, (b) with respect to all or any portion of the Licensed IP, Institutional Partners IIA or any of its
affiliated funds forecloses on, conducts, controls or substantially directs a foreclosure sale, or is granted ownership or legal or equitable title to under or in connection with a plan of reorganization or similar arrangement, and
(c) Institutional Partners IIA or any of its affiliated funds takes possession of, acquires, is granted ownership rights as the holder of legal or equitable title to all or any portion of the Licensed IP, or such Licensed IP is sold to a third
party pursuant to a foreclosure sale. 
 (xi) “Foreclosure Notice” means written notification by Institutional Partners
IIA to Novo Nordisk that Institutional Partners IIA has Foreclosed on any Licensed IP, which notice shall state the date of such Foreclosure, describe the Licensed IP so foreclosed and specify the Novo Nordisk Agreement(s) covering such Licensed IP.

 (xii) “Foreclosure Purchaser” means one or more third parties that acquires all or any portion of any Initial
Foreclosed IP or Licensed IP as a result of a Foreclosure. 

  
 3 

 (xiii) “Grantor” shall have the meaning set forth in the Pledge and Security
Agreement. 
 (xiv) “Initial Foreclosed IP” means any Licensed IP that has been Foreclosed upon by Institutional Partners
IIA or any of its affiliates, at any time, and as to which Institutional Partners IIA or any of its affiliates takes ownership or legal or equitable title. 

(xv) “Investment Agreements” means the 2005 Loan Agreement, the 2014 Loan Agreement, the Convertible Notes, the Bridge
Notes, the Reimbursement Notes, the Royalty Agreement, the Pledge and Security Agreement, and any related documents, and any other secured loan agreements or other agreements granting MHR a security interest over any Licensed IP that may be entered
into between MHR and Emisphere after the date hereof, each as amended from time to time. 
 (xvi) “License Conditions”
shall have the meaning set forth in Section 4(a) herein. 
 (xvii) “Licensed IP” shall have the meaning set forth in
Exhibit B of the MHR License Agreement. 
 (xviii) “MHR License Agreement” shall have the meaning set forth in
Section 4(a) herein. 
 (xix) “Pledge and Security Agreement” shall mean the Second Amended and Restated Pledge and
Security Agreement, dated as of August 20, 2014, by and between the Emisphere and Institutional Partners IIA. 
 (xx)
“Purchased Foreclosed IP” means (i) such of the Initial Foreclosed IP as is purchased by one or more Foreclosure Purchaser(s) or (ii) Licensed IP, in whole or in part, the legal or equitable title or ownership of which
passes directly to one or more Foreclosure Purchaser(s) as a result of a Foreclosure. 
 (xxi) “Reimbursement Note
Holders” shall mean the creditors identified in the Reimbursement Notes and their successors and assigns. 
 (xxii)
“Reimbursement Notes” shall mean the Second Amended and Restated Reimbursement Promissory Notes, dated as of August 20, 2014, by Emisphere in favor of the Reimbursement Note Holders, as may be amended, restated or otherwise
modified from time to time. 
 (xxiii) “Royalty Agreement” shall mean that certain Royalty Agreement, dated as of
August 20, 2014, by and among Emisphere and the MHR Funds, as may be amended, restated or otherwise modified from time to time. 
 (b)
Changes to Capitalized Terms. If any of the terms defined in the Investment Agreements and used herein are changed after the date of this Agreement due to a change in the Investment Agreements, Emisphere hereby agrees to provide prompt notice
to Novo Nordisk of such changes no later than three (3) business days after such changes are made. 

  
 4 

 2. Grant of License. Novo Nordisk hereby agrees and acknowledges that pursuant to
Section 6.5 of the Pledge and Security Agreement, Emisphere has granted MHR a license as follows: “Each Grantor hereby grants to the Secured Party for its own behalf and on behalf of the Lenders and the MHR Funds an irrevocable,
non-exclusive license (exercisable without payment of royalty or other compensation to any Grantor) to use, license or sublicense any Patent Collateral, Trademark Collateral, Copyright Collateral or Know-How Collateral now owned or licensed or
hereafter acquired or licensed by such Grantor (to the extent and only to the extent any of the foregoing does not constitute Excluded Collateral), wherever the same may be located throughout the world, for such term or terms, on such conditions and
in such manner as the Secured Party shall determine, whether general, special or otherwise, and whether on an exclusive or nonexclusive basis, and including in such license reasonable access to all media in which any of the licensed items may be
recorded or stored and to all computer software and programs used for the compilation or printout thereof. The use of such license or sublicense by the Secured Party shall be exercised, at the option of the Secured Party, and only upon the
occurrence and during the continuation of an Event of Default; provided that any license, sublicense or other transaction entered into by the Secured Party in accordance herewith shall be binding upon each applicable Grantor notwithstanding any
subsequent cure of an Event of Default.” 
 3. MHR’s Forbearance From Exercising Certain License Rights. Prior to a
Foreclosure, with respect to each Novo Nordisk Agreement and on a Novo Nordisk Agreement-by-Novo Nordisk Agreement basis, MHR hereby agrees that upon the occurrence of an Event of Default (as defined in the 2005 Loan Agreement, 2014 Loan Agreement,
Convertible Notes, Bridge Notes or Reimbursement Notes) or other similar event occurring under the Investment Agreements, it will forebear from exercising its license rights under Section 6.5 of the Pledge and Security Agreement or any similar
right occurring under the Investment Agreements only with respect to, and to the extent, the Licensed IP is licensed to Novo Nordisk, its assignees, sublicensees and successors and assigns by Emisphere and its successors and assigns under the Novo
Nordisk Agreements; provided that: (x) the Novo Nordisk Agreement remains in effect and (y) Novo Nordisk, subject to any applicable cure period, is in material compliance with the Novo Nordisk Agreement and performs all of its
obligations thereunder. For the avoidance of doubt, the immediately foregoing sentence shall not in any manner whatsoever restrict or prevent MHR’s right to effect a Foreclosure with respect to any Licensed IP. Novo Nordisk agrees that any
non-compliance that could reasonably materially adversely affect MHR’s rights and interests in Emisphere under the Investment Agreements or nonpayment of any payment obligations under a Novo Nordisk Agreement or any failure to comply with the
election or other requirements of a licensee under Section 365(n) of the Bankruptcy Code, in each case, shall be deemed a material non-compliance. 

4. MHR License Agreement 

(a) Concurrent with the entry into this Agreement, Institutional Partners IIA and Novo Nordisk shall have executed a license agreement in the
form attached as Exhibit C hereto (the “MHR License Agreement”), provided that the MHR License Agreement shall become effective only with respect to Foreclosed IP, on a Novo Nordisk Agreement-by-Novo Nordisk Agreement basis,
and only immediately upon the satisfaction in full of all of the following conditions precedent (collectively, the “License Conditions”): 

(i) a Foreclosure occurs; 

  
 5 

 (ii) at the time of such Foreclosure, subject to any cure period provided in respect of the
applicable Novo Nordisk Agreement covering such Licensed IP, no material breach by Novo Nordisk in respect of the applicable Novo Nordisk Agreement has occurred and is continuing; and 

(iii) the applicable Novo Nordisk Agreement covering the applicable Foreclosed IP has not been terminated in accordance with its terms (it
being acknowledged and agreed that any Novo Nordisk Agreement that is rejected (whether by a debtor-in-possession, a trustee or otherwise) in a bankruptcy proceeding by Emisphere shall not be deemed to have been terminated in accordance with its
terms for purposes of this Section 4(a)(iii) so long as Novo Nordisk has validly complied with the election requirements of Section 365(n) of the Bankruptcy Code and is in full compliance with the applicable Novo Nordisk Agreement as
required by Section 365(n) of the Bankruptcy Code). 
 (b) The parties hereto hereby agree that so long as and to the extent that Novo
Nordisk has performed and is continuing to perform all of Novo Nordisk’s obligations under the MHR License Agreement, including the obligation to pay the Financial Obligations as and when they become due to Institutional Partners IIA, Novo
Nordisk shall not be obligated to perform any obligations under the applicable Novo Nordisk Agreement to the extent related to the Foreclosed IP, including the obligation to pay to Emisphere any Financial Obligations that would otherwise be owed to
Emisphere in respect of such Foreclosed IP or for any other Licensed IP covered by the same Novo Nordisk Agreement, and any Financial Obligations owing to Emisphere in respect of such Foreclosed IP or any other Licensed IP covered by the same Novo
Nordisk Agreement shall be reduced to zero. Emisphere hereby expressly irrevocably waives any right it has to performance of such obligations, including payment of any such Financial Obligations, and such waiver should not be deemed a setoff of
obligations otherwise owed to Emisphere. 
 (c) Institutional Partners IIA hereby agrees to provide Novo Nordisk with a Foreclosure Notice
promptly following consummation of any Foreclosure. 
 (d) By entry into this Agreement or the execution of the MHR License Agreement, none
of Emisphere, MHR or Novo Nordisk shall be deemed to have waived, limited or extinguished any claims or rights to assert that any of them has breached any agreement or obligation or committed any other act or omission. For the avoidance of doubt,
and without limiting the foregoing, MHR shall not be deemed to have waived, limited or extinguished any claims or rights that it may assert under or with respect to the Novo Nordisk Agreements despite having executed the MHR License Agreement or
such MHR License Agreement having become effective. 
 (e) MHR’s agreement hereunder shall not otherwise affect, modify, change or
amend any of the Investment Agreements, including Section 6.5 of the Pledge and Security Agreement, or MHR’s rights and remedies thereunder, which Investment Agreements shall continue in full force and effect. 

  
 6 

 5. MHR’s Consent to GLP-1 Amendment No. 3 and Expansion License
Agreement. Each of Emisphere and Novo Nordisk hereby acknowledge and agree that Section 4.1 of the Pledge and Security Agreement prohibits each Grantor from entering into any agreement or undertaking restricting the right or ability of
such Grantor or the Secured Party (as defined therein) on its own behalf and on behalf of the Lenders (as defined therein) to sell, assign or transfer any of the Collateral (as defined therein) without the prior written consent of the Secured Party,
except as permitted under the Loan Documents (as defined therein) and that, accordingly, Emisphere required MHR’s consent to the execution of the GLP-1 License Agreement and the Insulin License Agreement, and requires MHR’s consent to the
execution of GLP-1 Amendment No. 3 and the Expansion License Agreement. In reliance on this Agreement, MHR hereby consents to Emisphere entering into GLP-1 Amendment No. 3 and the Expansion License Agreement. 

6. Amendments to the Novo Nordisk Agreement. With respect to each Novo Nordisk Agreement and on a Novo Nordisk
Agreement-by-Novo Nordisk Agreement basis, each of Emisphere and Novo Nordisk hereby agree that any modification or amendment to any Novo Nordisk Agreement that could adversely affect MHR’s rights and interests in Emisphere under the Investment
Agreements (including Section 6.5 of the Pledge and Security Agreement) shall require the prior written consent of MHR, which consent shall not be unreasonably withheld or delayed (it is further agreed that MHR’s determination not to give
such consent shall be deemed reasonable if made in good faith); provided, that if MHR determines not to grant such consent, MHR shall give notice to Novo Nordisk and Emisphere of such determination and, for a period commencing with the delivery of
such notice and ending three (3) business days thereafter, the parties will discuss the proposed modification or amendment to the applicable Novo Nordisk Agreement in good faith to attempt to resolve their differences and agree upon a mutually
acceptable amendment or modification. Following the end of such period of three (3) business days, MHR will give Novo Nordisk and Emisphere notice of its final determination of whether to grant its consent to any then proposed amendment or
modification); provided, however, that the selection of additional Program Carriers (as defined in the Novo Nordisk Agreements) in accordance with Section 2 of the relevant Novo Nordisk Agreement or update of the Licensed Patents listed in the
respective Exhibits shall not be deemed to be a modification or an amendment for purposes of this Section 6. 
 7.
Investment Agreements Unchanged; No Reliance. (a) Emisphere agrees and acknowledges that except as expressly provided herein, the Investment Agreements are unmodified in any way and remain in full force and effect. Except as
expressly provided herein, each of MHR and Emisphere agree and acknowledge, each for itself, severally and not jointly, that execution of this Agreement by MHR or Emisphere, as applicable, does not and shall not constitute a waiver of any rights or
remedies to which MHR or Emisphere, as applicable, is entitled pursuant to the Investment Agreements, nor, except as expressly provided herein, shall the same constitute a waiver of any default or event of default (including any Event of Default as
defined in any of the Investment Agreements) with respect to the Investment Agreements.  
 (b) Novo Nordisk hereby acknowledges and
agrees that it does not and shall not rely on this Agreement or the MHR License Agreement or any portion hereof or thereof, except for rights that are expressly provided to Novo Nordisk herein or in the MHR License Agreement, in order to assert any
waiver in connection with Institutional Partners IIA’s Collateral (as defined in the Pledge and Security Agreement) or any of MHR’s rights under the Investment Agreements in any manner whatsoever. 

  
 7 

 8. Representations and Warranties. Each of the parties to this Agreement
represents and warrants to the other parties to this Agreement that: (a) it has all requisite power and authority to execute and deliver this Agreement and to carry out the provisions hereof and the transactions contemplated hereby;
(b) all necessary action on the part of such party and its officers, directors, partners, members and shareholders (as applicable) necessary for the authorization of this Agreement and the performance of all obligations of such party hereunder
has been taken; and (c) this Agreement, when executed and delivered by all parties, will be a valid and binding agreement of such party enforceable in accordance with its terms. Emisphere and Novo Nordisk represent and warrant to MHR that
(i) GLP-1 Amendment No. 3 attached as Exhibit A hereto and the Expansion License Agreement attached as Exhibit B hereto, are complete and true copies of such agreements, to be executed by them simultaneously with the
execution of this Agreement and that (ii) to its knowledge (A) the Novo Nordisk Agreements are in full force and effect and (B) that each of Emisphere and Novo Nordisk, respectively, are in material compliance with the terms thereof.
 
 9. Notices. (a) Emisphere hereby agrees to provide prompt notice to: (i) MHR, with a copy to Novo
Nordisk, upon any failure by Novo Nordisk to perform any of its obligations pursuant to, or its material noncompliance with or material breach of, any of the Novo Nordisk Agreements, which notice to MHR shall be provided by Emisphere no later than
three (3) business days after becoming aware of such failure to perform, material noncompliance or breach and (ii) Novo Nordisk, if (A) a formal notice of the occurrence of an Event of Default is delivered by MHR pursuant to the
Pledge and Security Agreement which notice to Novo Nordisk shall be provided by Emisphere no later than three (3) business days after receipt of the formal notice from MHR or (B) there is any undisputed or disputed allegation in good faith
by Emisphere in writing that Novo Nordisk has materially breached a Novo Nordisk Agreement which notice to Novo Nordisk shall be provided by Emisphere no later than three (3) business days after such allegation is made in writing. 

(b) All notices and other communications under this Agreement only shall be in writing, shall be effective when received, and shall be deemed
to have been received: 
 (i) on the date of delivery, if delivered personally to one of the office holders of the other party set forth in
Section 9(b)(ii); or 
 (ii) on the second business day after the business day of deposit with Federal Express or other similar
courier for overnight delivery, freight prepaid, in each the case, addressed as follows (until the address is changed by notice duly given): 

To Emisphere: 
 Emisphere
Technologies, Inc. 
 4 Becker Farm Road, Suite 103 

Roseland, NJ 07068, USA 

Attention: Alan L. Rubino, President and CEO 

  
 8 

 With copy to: 

Lowenstein Sandler LLP 
 65
Livingston Avenue 
 Roseland, NJ 07068, USA 

Attention: Michael J. Lerner, Esq. 

To Novo Nordisk: 
 Novo
Nordisk A/S 
 Novo Allé 

2880 Bagsvaerd, Denmark 

Attention: Head of Corporate Alliance Management 

With copy to: 
 Novo
Nordisk A/S 
 Novo Allé 

2880 Bagsvaerd, Denmark 

Attention: General Counsel 
 To
MHR: 
 MHR Institutional Partners IIA LP 

1345 Avenue of the Americas, 42nd Floor 

New York, NY 10105, USA 

Attention: Janet Yeung 
 With
copy to: 
 O’Melveny & Myers LLP 

Times Square Tower 
 7 Times
Square 
 New York, NY 10036, USA 

Attention: David I. Schultz, Esq. 

10. Confidentiality. (a) Except as expressly provided in this Section 10, this Agreement and the matters set forth
herein, as well as any notices received and delivered under this Agreement (collectively, the “Confidential Information”), shall remain strictly confidential and in addition, no party to this Agreement shall, directly or indirectly,
discuss with or disclose to any third party any Confidential Information except (i) if in the advice of such party’s counsel, disclosure of such Confidential Information is necessary for such party not to be in violation of or default
under any applicable law (including, without limitation, any statute, regulation, rule, stock exchange requirement, self-regulatory body, supervisory authority, other applicable judicial or governmental order, legal process, fiduciary or similar
duties or otherwise (collectively, the “Legal Requirements”)), provided that: (A) to the extent practical and permitted under any applicable Legal Requirements, such party shall promptly notify each other party

  
 9 

 
hereto so that such other party may, at its sole cost, expense and in its sole discretion, seek any appropriate protective order and/or take any other appropriate action; provided, however, that
such notice shall not be required by MHR or its affiliates (excluding Emisphere) prior to filings made with and to the extent required or requested by the U.S. Securities and Exchange Commission (“SEC”) or other regulatory body and
(B) in the event that such protective order is not obtained, only the portion of material which, in the advice of such person’s counsel is required to be disclosed under any applicable Legal Requirements may be disclosed, and the
disclosing party shall use its good faith efforts to obtain assurance that confidential treatment will be accorded such material; (ii) if such third party has been or will be provided such information by Emisphere or MHR in connection with
considering a potential transaction relating to the Investment Agreements or Emisphere, in each case in any manner whatsoever, and such third party has entered into a confidentiality agreement with Emisphere or MHR, as applicable, on terms that are
at least as protective as those contained in this paragraph; or (iii) to the extent that the other parties hereto have provided prior written consent to such disclosure. Confidential Information shall not include any information that is in the
public domain or any Confidential Information that subsequently enters the public domain without fault on the part of the party receiving such information. Each party agrees to consult with each other party on the possible redaction of certain
provisions, schedules, exhibits and attachments to this Agreement and the Novo Nordisk Agreements that contain information which is Confidential Information in connection with any filings made by a party with the SEC (or other regulatory body) or as
otherwise required by law; provided, however, that each party may make its own final determination of its filing obligation (including without limitation the timing of such filing) and effect such filing accordingly and without any obligation to
delay such filing. The parties agree that they have complied with this Section 10 in all respects if MHR files this Agreement and the MHR License Agreement, including any exhibits hereto or thereto, without redaction with the SEC after the date
hereof. 
 (b) Notwithstanding the foregoing, MHR may disclose Confidential Information (i) to any of MHR’s affiliates, potential
investors and potential financing sources or any acquirer or potential acquirer of assets and their respective representatives who have a need to know such Confidential Information in connection with the evaluation and/or negotiation of a potential
transaction relating to the Investment Agreements or Emisphere; provided, that: (A) the person to whom such Confidential Information is disclosed has previously entered into a confidentiality agreement with Emisphere or MHR, as applicable, on
terms that are at least as protective as those contained in the preceding paragraph 10(a) and (B) any such review by such person shall be solely for purposes of evaluating a potential transaction relating to the Investment Agreements or
Emisphere; or (ii) to any of MHR’s affiliates, equity interest holders, principals, officers, directors, employees, agents and consultants who need to know such Confidential Information in their capacity as the foregoing and who are
subject to obligations of confidentiality on customary terms. 
 (c) Notwithstanding anything else to the contrary in this Agreement, each
of Novo Nordisk and Emisphere acknowledges and agrees that, subject to MHR’s agreement concerning disclosure of the Confidential Information as provided in the immediately two preceding paragraphs, MHR and its affiliates are in the business of
making investments in, and otherwise engaging in, businesses which may or may not be in competition with Novo Nordisk or Emisphere or otherwise related to its or its affiliates’ respective business and that, except to

  
 10 

 
the extent that such activities involve the disclosure of the Confidential Information that would be prohibited hereunder, this Agreement in no way limits or restricts MHR’s or its
affiliates’ ability to make such investments or engage in such businesses. Furthermore, subject to the other provisions of this Section 10, in the event that MHR exercises any of the rights provided hereunder, MHR agrees to use
commercially reasonable efforts to maintain the confidentiality of any Confidential Information. 
 11. Effectiveness and
Termination. This Agreement will come into effect upon Emisphere’s receipt of Novo Nordisk’s payment of (i) $9 million to Emisphere pursuant to Section 1.a of the GLP-1 Amendment No. 2 and (ii) $5 million to
Emisphere pursuant to Section 3.1 of the Expansion License Agreement, and shall remain in effect until the earlier of:  
 (a)
with respect to the rights and obligations of all of the parties hereto, the termination or release of all of Institutional Partners IIA’s security interest and all other rights in the Pledge and Security Agreement in and as applicable to all
of the Licensed IP, except if such release has occurred as result of a Foreclosure; 
 and 

(b) with respect to the rights and obligations of all of the parties hereto, termination of this Agreement in its entirety immediately upon
Institutional Partners IIA or one or more Foreclosure Purchaser(s), as applicable, entering into the MHR License Agreement as to all of the Licensed IP as a result of Foreclosure on all of the Licensed IP and such MHR License Agreement becoming
fully effective as set forth in Section 4(a) hereof. 
 Upon termination of this Agreement with respect to all Licensed IP as provided
in this Section 11, all rights, duties and obligations of the parties hereto shall cease to have any force or effect and the parties shall no longer be bound by, and shall not have any obligations or duties under this Agreement. 

12. Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the domestic laws
of the State of New York, without giving effect to conflicts of law or choice of law principles (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New
York. The undersigned hereby agree that any suit or proceeding arising out of or relating to this Agreement shall be had in the Federal courts in the Borough of Manhattan in The City of New York, and hereby consent to jurisdiction and venue in such
courts.  
 13. Entire Agreement, Assignment, etc. (a) This Agreement and the MHR License Agreement
contains the entire understanding and agreement of the parties hereto and supersedes all prior agreements, understandings and negotiations between the parties hereto relating to the subject matter hereof.  

(b) The invalidity or unenforceability of any of the provisions of this Agreement shall not affect the validity or enforceability of any other
provisions hereof, which shall remain in full force and effect. 

  
 11 

 (c) The benefits of this Agreement shall inure to the parties hereto and their respective
successors and assigns, and the obligations and liabilities assumed in this Agreement by the parties hereto shall be binding upon their respective successors and assigns. 

(d) Novo Nordisk agrees that it will not, directly or indirectly, assign or otherwise transfer this Agreement to any person without MHR’s
prior written consent which consent shall not be unreasonably withheld or delayed, except for simultaneous assignment or transfer of this Agreement, the Novo Nordisk Agreements and the MHR License Agreement to the same assignee or transferee which
shall not require any prior consent. For the avoidance of doubt, in the relationship between Novo Nordisk and Emisphere (in the case of Emisphere, subject to any obligations or limitations of Emisphere pursuant to any agreements to which it is a
party) the relevant Novo Nordisk Agreement shall govern ability to assign the relevant Novo Nordisk Agreement. Also for the avoidance of doubt, Novo Nordisk may elect to assign one but not another Novo Nordisk Agreement and shall be permitted
simultaneously with the transfer or assignment of the relevant Novo Nordisk Agreement to assign or transfer to the same assignee or transferee, all (but not less than all) of the rights and obligations of Novo Nordisk under this Agreement and the
MHR License Agreement with respect to the relevant Novo Nordisk Agreement pursuant to an agreement which is the same as this Agreement (whereupon the obligations of the parties under this Agreement relating to the relevant Novo Nordisk Agreement
being transferred shall automatically terminate immediately following the execution and consummation of such Novo Nordisk Agreement with the assignee or transferee). 

(e) MHR may assign or otherwise transfer this Agreement and the rights and obligations hereunder without the prior written consent of Novo
Nordisk, provided that any such assignment or transfer of this Agreement (prior to its termination as provided herein) must be made together with the MHR License Agreement (which effectiveness shall continue to be subject to and depending upon the
occurrence of all of the License Conditions and the other terms thereof) and each of the Investment Agreements that are applicable or related to the Licensed IP then applicable to this Agreement; provided, however, that regardless of whether the
License Conditions have been satisfied, at no time may MHR assign or otherwise transfer any of its security interests in or liens on any of the Licensed IP other than with the simultaneous assignment of this Agreement and the MHR License Agreement.

 (f) Emisphere may not assign this Agreement without the written consent of Novo Nordisk and MHR. 

(g) Notwithstanding anything in this Agreement to the contrary, including this Section 13, Novo Nordisk may assign or otherwise transfer
this Agreement without any prior consent to any of its controlled subsidiaries that agree in writing to be bound by the terms hereof. 
 (h)
This Agreement may only be amended or modified by a writing signed by the parties hereto. 
 (i) All agreements, covenants, representations
and warranties by Emisphere, Novo Nordisk or MHR, as the case may be, are given, made or provided by and for each of them each for itself, severally and not jointly. 

  
 12 

 [Remainder of page intentionally left blank] 

  
 13 

 IN WITNESS WHEREOF, the parties have executed this instrument as of the date first written above.

  

			
	NOVO NORDISK A/S
		
	By:	 	/s/ Lars Fruergaard Jorgensen
	Name: Lars Fruergaard Jorgensen
	Title: Executive Vice President & Chief of Staff

 Accepted and agreed to as of the date set forth above: 

 

			
	EMISPHERE TECHNOLOGIES, INC.
		
	By:	 	/s/ Alan L. Rubino
	Name: Alan L. Rubino
	Title: President and Chief Executive Officer
	
	MHR CAPITAL PARTNERS MASTER ACCOUNT LP
	
	By: MHR Advisors LLC,
	its General Partner
		
	By:	 	/s/ Janet Yeung
	Name: Janet Yeung
	Title: Authorized Signatory
	
	MHR CAPITAL PARTNERS (100) LP
		
	By:	 	MHR Advisors LLC,
		 	its General Partner
		
	By:	 	/s/ Janet Yeung
	Name: Janet Yeung
	Title: Authorized Signatory

 [Amended and Restated Agreement Signature Page] 

			
	MHR INSTITUTIONAL PARTNERS II LP
	
	By: MHR Institutional Advisors II LLC,
	its General Partner
		
	By:	 	/s/ Janet Yeung
	Name: Janet Yeung
	Title: Authorized Signatory
	
	MHR INSTITUTIONAL PARTNERS IIA LP
	
	By: MHR Institutional Advisors II LLC,
	its General Partner
		
	By:	 	/s/ Janet Yeung
	Name: Janet Yeung
	Title: Authorized Signatory

 [Amended and Restated Agreement Signature Page] 

 Exhibit A 

Amendment No. 3 to GLP-1 Development and License Agreement 

 Exhibit B 

Expansion License Agreement 

 Exhibit C 

MHR License Agreement

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