Document:

Exhibit 10.1

 

SECURED
PROMISSORY NOTE

 

THIS
PROMISSORY NOTE made as of the 10th day of January, 2020.

 

	B
    E T W E E N:	Alpha
    Capital Anstalt
	 	Lettstrasse
    32
	 	9490
    Vaduz, Liechtenstein
	 	Fax:
    011-423-2323196
	 	Email:
    info@alphacapital.il
	 	 
	 	(hereinafter
    called the “Noteholder”)
	 	 
	 	-
and -
	 	 
	 	Jay
    Pharma Inc., a federally chartered Canadian corporation
	 	140
    E. Ridgewood Avenue, Suite 415
	 	Paramus,
    NJ 07652
	 	Fax:
	 	Email:
	 	(hereinafter
    called the “Debtor”)

 

FOR
VALUE RECEIVED, and subject to the terms and conditions set forth herein, the Borrower, hereby unconditionally promises to pay to the
order of the Noteholder or its assigns (the “Noteholder”, and together with the Borrower, the “Parties”),
the principal amount of US$1,500,000 (the “Loan”), together with all accrued interest thereon, as provided in this
Promissory Note, as the same may be amended, amended and restated, renewed, extended, supplemented, replaced or otherwise modified from
time to time in accordance with its terms (the “Note”). The entire principal amount of the Loan shall be deemed to
have been provided to the Borrower on the date above written.

 

ARTICLE
I

Definitions

 

Capitalized
terms used herein shall have the meanings set forth in this ARTICLE I.

 

“Advance”
means each disbursement made by the Noteholder to the Borrower under this Agreement.

 

“Affiliate”
means, with respect to any Person, any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled
by, or is under common control with, such Person. The term “control” (including the terms “controlled by” and
“under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Amalgamation”
means the transaction among Ameri Holdings, Inc., Jay Pharma Merger Sub, Inc., Borrower, and Jay Pharma ExchangeCo., Inc. as described
in and on the unamended, unwaived, and precise terms of the Amalgamation Agreement.

 

“Amalgamation
Agreement” means the fully executed agreement among the parties to the Amalgamation, including the exhibits, schedules, thereto
and the documents, agreements and deliverables required or permitted to be delivered in connection therewith.

 

“Amalgamation
Closing” means the closing, fulfillment and completion of the Amalgamation and all of the actions required or permitted to
be taken with respect to the Amalgamation and the Amalgamation Agreement.

 

“Anti-Terrorist
Financing and Anti-Money Laundering Laws” means all Applicable Laws concerning or related to money laundering or financing
terrorism, government sanctions and “know your client” laws and which are applicable to the Borrower and the Noteholder including
the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada), the Trading with the Enemy Act (United States), Executive
Order No. 13224, and the USA PATRIOT Act.

 

    	 

     

    

 

“Applicable
Law” means, in relation to any Person, property, transaction or event, all applicable provisions of: (a) statutes, laws (including
common law), rules, regulations, decrees, ordinances, codes, proclamations, treaties, declarations or orders of any Governmental Authority;
(b) any consents or approvals of any Governmental Authority; and (c) any orders, decisions, advisory or interpretative opinions, injunctions,
judgments, awards, decrees of, or agreements with, any Governmental Authority, in each case applicable to or binding upon such Person,
property, transaction or event.

 

“Applicable
Rate” means the annual rate equal to seven percent (7%).

 

“Borrower”
has the meaning set forth in the introductory paragraph.

 

“Business
Day” means any day, other than a Saturday, Sunday or other day on which commercial banks in New York State are authorized or
required by law to be closed for business.

 

“Debt”
of the Borrower, means all (a) indebtedness for borrowed money; (b) obligations for the deferred purchase price of property or services,
except trade payables arising in the ordinary course of business; (c) obligations evidenced by notes, bonds, debentures or other similar
instruments; (d) obligations as lessee under capital leases and sale and lease-back transactions; (e) obligations in respect of any interest
rate swaps, currency exchange agreements, commodity swaps, or similar arrangements entered into by the Borrower providing for protection
against fluctuations in interest rates, currency exchange rates or commodity prices or the exchange of nominal interest obligations,
either generally or under specific contingencies; (f) obligations under bankers’ acceptance facilities and letters of credit; (g)
purchase money security obligations; (h) guarantees, surety bonds, and other contingent obligations to purchase, to provide funds for
payment, to supply funds to invest in a Person, or otherwise to assure a creditor against loss, in each case, in respect of indebtedness
set out in clauses (a) through (g) of a Person other than the Borrower; and (i) indebtedness set out in clauses (a) through (h) of any
Person other than Borrower secured by any encumbrance on any asset of the Borrower, whether or not such indebtedness has been assumed
by the Borrower.

 

“Default”
means any of the events specified in ARTICLE X which constitutes an Event of Default or which, upon the giving of notice, the lapse of
time, or both pursuant to ARTICLE X would, unless cured or waived, become an Event of Default.

 

“Distribution”
means, (a) any declaration or payment of dividends, or other return on capital in respect of any Equity Interests of the Borrower; (b)
any purchase, redemption, defeasance, retirement or other acquisition of, any Equity Interests of the Borrower; (c) any other payment
or distribution of money or equivalents (including principal, interest, royalties and management fees) by or to the shareholders or creditors
of the Borrower.

 

“Encumbrance”
means any security interest, mortgage, debenture, pledge, hypothec, assignment (as security), deposit arrangement, lien (statutory or
other), charge, title retention, consignment, lease or other security agreement or trust, right of set-off or other arrangement having
the effect of security for the payment of any debt, liability or obligation.

 

“Equity
Interests” means any and all shares, interests, participations, or other equivalents of shares in a corporation, any and all
equivalent ownership (or profit) interests in a Person, securities convertible into or exchangeable for shares of capital stock of (or
other ownership or profit interests in) such Person, and any and all warrants, rights or options to purchase any of the foregoing, whether
voting or non-voting, and whether or not such shares, warrants, options, rights or other interests are authorized or otherwise existing
on any date of determination.

 

“Event
of Default” has the meaning set forth in ARTICLE X.

 

“ExchangeCo
Special Shares” has the meaning set forth in the Amalgamation Agreement.

 

“GAAP”
means generally accepted accounting principles which are in effect from time to time in the United States, applied in a consistent manner
from period to period.

 

    	 

     

    

 

“Governmental
Authority” means: (a) any government, parliament or legislature, any regulatory or administrative authority, agency, commission
or board and any other statute, rule or regulation making entity having jurisdiction in the relevant circumstances; (b) any Person acting
within and under the authority of any of the foregoing or under a statute, rule or regulation thereof; and (c) any judicial, administrative
or arbitral court, authority, tribunal or commission having jurisdiction in the relevant circumstances.

 

“Indemnified
Taxes” means: (a) Taxes imposed on or with respect to any payment made by the Borrower; and (b) to the extent not otherwise
described in (a), any and all present or future stamp, court, recording, filing, intangible, documentary or similar Taxes or any other
excise or property Taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement
or registration of, or performance under, or from the receipt or perfection of a security interest under or otherwise with respect to
this Agreement.

 

“Interest
Payment Date” means the Maturity Date, as accelerated or otherwise.

 

“Loan”
has the meaning set forth in the introductory paragraph.

 

“Material
Adverse Effect” means any such matter, event or circumstance that individually, or in the aggregate, could, in the opinion
of the Noteholder, acting reasonably, be expected to have a material adverse effect on the business, assets, properties, liabilities
(actual or contingent), operations, or condition (financial or otherwise) of the Borrower.

 

“Maturity
Date” means the earliest of (a) July 6, 2020 and (b) the date on which all amounts under this Note shall become due and payable
under ARTICLE XI.

 

“Note”
has the meaning set forth in the introductory paragraph.

 

“Noteholder”
has the meaning set forth in the introductory paragraph.

 

“Order”
as to any Person, means any order, decree, judgment, writ, injunction, settlement agreement, requirement or determination of an arbitrator
or a court or other Governmental Authority, in each case, applicable to or binding on such Person or any of its properties or to which
such Person or any of its properties is subject.

 

“Parties”
has the meaning set forth in the introductory paragraph.

 

“Permitted
Debt” means Debt (a) existing or arising under this Note and any refinancing thereof; and (b) existing as of the date of this
Note.

 

“Permitted
Encumbrance” means (a) Encumbrances for taxes not yet due or which are being contested in good faith by appropriate proceedings;
and (b) non-consensual Encumbrances arising by operation of law, arising in the ordinary course of business, and for amounts which are
not overdue for a period of more than thirty (30) days or that are being contested in good faith by appropriate proceedings; and (c)
Encumbrances created pursuant to the Security Agreement.

 

“Person”
means an individual, legal or natural person, corporation, company, firm, body corporate, partnership, joint venture, Governmental Authority,
unincorporated organization, trust, association, estate or other entity.

 

“Resulting
Issuer Common Stock” has the meaning set forth in the Amalgamation Agreement.

 

“Security
Agreement” means the security agreement, dated as of the date hereof, by and between the Borrower and Noteholder, as the same
may be amended, amended and restated, renewed, extended, supplemented, replaced or otherwise modified from time to time in accordance
with its terms.

 

“Taxes”
means any and all present or future income, stamp or other taxes, levies, imposts, duties, deductions, charges, fees or withholdings
imposed, levied, withheld or assessed by any Governmental Authority, together with any interest, additions to tax or penalties imposed
thereon and with respect thereto.

 

    	 

     

    

 

ARTICLE
II

Amalgamation

 

Section
2.01 Amalgamation. The Noteholder has been granted certain rights pursuant to the Amalgamation Agreement, including the
right to exchange this Note for securities and registration rights. Borrower agrees to use its best efforts to enable and assist Noteholder
to receive the benefit of those rights.

 

ARTICLE
III

Repayment and Prepayment

 

Section
3.01 Final Payment Date. Unless this Note is earlier converted pursuant to Section 2.01, the aggregate unpaid principal amount
of the Loan, all accrued and unpaid interest and all other amounts payable under this Note shall be due and payable on the Maturity
Date.

 

Section
3.02 Payment Grace Period. The Borrower shall not have any grace period to pay any monetary amounts due under this
Note.

 

ARTICLE
IV

Security Agreement

 

Section
4.01 Security Agreement. The Borrower’s performance of its obligations hereunder is secured by a first priority security
interest in the collateral specified in the Security Agreement.

 

ARTICLE
V

Interest

 

Section
5.01 Interest Rate. Except as otherwise provided herein, the outstanding principal amount of the Loan made hereunder shall bear
interest at the Applicable Rate from the date the Loan was made until the Loan is paid in full, whether at maturity, upon
acceleration, by prepayment or otherwise.

 

Section
5.02 Interest Payment Dates. Interest shall be calculated daily and shall be payable to the Noteholder on the Maturity
Date, accelerated or otherwise and upon conversion pursuant to Section 2.01, or otherwise.

 

Section
5.03 Calculation of Interest and Application of Payments.

 

	 	(a)	Interest
    on this Note shall be calculated on the basis of a 365-day year and the actual number of days elapsed. Payments made in connection
    with this Note shall be applied first to amounts due hereunder other than principal and interest, thereafter to interest and finally
    to principal.

 

	 	(b)	For
    the purposes of the Interest Act (Canada) and disclosure under such Act, wherever interest to be paid under this
    Note is to be calculated on the basis of any period of time that is less than a calendar year (an “interest period”),
    such rate of interest shall be expressed as a yearly rate by multiplying such rate of interest for the interest period by the actual
    number of days in the calendar year in which the rate is to be ascertained and dividing it by the number of days in the interest
    period.

 

Section
5.04 Interest Rate Limitation. If, at any time and for any reason whatsoever, the interest rate payable on the Loan shall
exceed the maximum rate of interest permitted to be charged by the Noteholder to the Borrower under Applicable Law, or would result in
receipt by the Noteholder of interest at a criminal rate (as such terms are construed under the Criminal Code (Canada)) such interest
rate shall be reduced automatically to the maximum rate of interest permitted to be charged under Applicable Law.

 

ARTICLE
VI

Place of Payment and Taxes

 

Section
6.01 Manner of Payments. All payments of interest and principal shall be made in lawful money of the United States no later than
1:00 p.m. on the date on which such payment is due by wire transfer of immediately available funds without set-off deduction or
counterclaim to the Noteholder’s account at a bank specified by the Noteholder in writing to the Borrower from time to
time.

 

    	 

     

    

 

Section
6.02 Application of Payments. All payments made hereunder shall be applied first to the payment of any fees or charges
outstanding hereunder, second to accrued interest, and third to the payment of the principal amount outstanding under the Note.

 

Section
6.03 Business Day Convention. Whenever any payment to be made hereunder shall be due on a day that is not a Business Day,
such payment shall be made on the next succeeding Business Day and such extension will be taken into account in calculating the amount
of interest payable under this Note.

 

Section
6.04 Evidence of Debt. The Noteholder is authorized to record on the grid attached hereto as Exhibit A the
Loan made to the Borrower and each payment or prepayment thereof. The entries made by the Noteholder shall, to the extent permitted
by Applicable Law, be prima facie evidence of the existence and amounts of the obligations of the Borrower therein
recorded; provided, however, that the failure of the Noteholder to record such payments or prepayments, or any
inaccuracy therein, shall not in any manner affect the obligation of the Borrower to repay (with applicable interest) the Loan in
accordance with the terms of this Note.

 

Section
6.05 Rescission of Payments. If at any time any payment made by the Borrower under this Note is rescinded or must otherwise be
restored or returned upon the insolvency, bankruptcy or reorganization of the Borrower or otherwise, the Borrower’s obligation
to make such payment shall be reinstated as though such payment had not been made.

 

Section
6.06 Taxes. Any and all payments by or on account of any obligation of the Borrower hereunder shall be made free and clear
of and without reduction or withholding for any taxes; provided that if the Borrower is required by Applicable Law to deduct or withhold
any Taxes from such payment, then:

 

	 	(a)	If
    such tax is an Indemnified Tax, the amount payable by the Borrower shall be increased so that after making all required deductions
    or withholdings, the Noteholder receives an amount equal to the amount it would have received had no such deduction or withholdings
    been made; and

 

	 	(b)	The
    Borrower shall make such deductions, timely pay the full amount deducted to the relevant Governmental Authority in accordance with
    Applicable Law, and provide the Noteholder with official receipts or other evidence satisfactory to the Noteholder for each payment.

 

ARTICLE
VII

Representations and Warranties

 

The
Borrower hereby represents and warrants to the Noteholder on the date hereof as follows:

 

Section
7.01 Incorporation and Existence. The Borrower is incorporated and validly existing under the laws of its jurisdiction of
incorporation.

 

Section
7.02 Power and Capacity. The Borrower has the corporate power and capacity, and the legal right, to execute and deliver this
Note and the Security Agreement and to perform its obligations hereunder and thereunder.

 

Section
7.03 Authorization; Execution and Delivery. The execution and delivery of this Note and the Security Agreement by the Borrower
and the performance of its obligations hereunder and thereunder have been duly authorized by all necessary corporate action in
accordance with all Applicable Laws. The Borrower has duly executed and delivered this Note and the Security Agreement.

 

Section
7.04 No Approvals. No consent or authorization of, filing with, notice to or other act by, or in respect of, any
Governmental Authority or any other Person is required in order for the Borrower to execute, deliver, or perform any of its
obligations under this Note or the Security Agreement.

 

    	 

     

    

 

Section
7.05 No Violations. The execution and delivery of this Note and the Security Agreement and the consummation by the Borrower of
the transactions contemplated hereby and thereby do not and will not (a) violate any provision of the Borrower’s articles,
by-laws, or any shareholders agreement; (b) violate any Applicable Law or Order applicable to the Borrower or by which any of its
properties or assets may be bound; or (c) constitute a default under any material agreement or contract by which the Borrower may be
bound.

 

Section
7.06 Enforceability. Each of the Note and the Security Agreement is a valid, legal and binding obligation of the Borrower,
enforceable against the Borrower in accordance with its terms except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, arrangement, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or at law).

 

Section
7.07 No Litigation. No action, suit, litigation, investigation or proceeding of, or before, any arbitrator or Governmental
Authority is pending or, to the knowledge of the Borrower, threatened by or against the Borrower or any of its property or assets (a)
with respect to the Note, the Security Agreement or any of the transactions contemplated hereby or thereby or (b) that would be expected
to have a Material Adverse Effect.

 

Section
7.08 Taxes. The Borrower has filed on a timely basis all Tax returns, elections and reports that are required to be filed
by it under Applicable Law and has paid, collected, withheld and remitted all Taxes and remittances shown thereon to be due and payable,
collectible or remittable by it under Applicable Law, and all other Taxes, fees or other charges imposed on it or any of its property
by any Governmental Authority. No tax liens have been filed, and, to the knowledge of the Borrower, no claim is being asserted, with
respect to any such Tax, fee or other charge.

 

Section
7.09 Financial Statements. Annexed hereto as Exhibit B is financial information of the Company
(“Financial Statements”). The Financial Statements have been prepared in accordance with GAAP. The Financial
Statements fairly present in all material respects the financial position of the Borrower as of and for the dates thereof and the
results of operations and cash flows for the periods then ended, subject to normal, immaterial year end adjustments which would be
required pursuant to generally accepted accounting principles.

 

ARTICLE
VIII

Positive Covenants

 

Until
all amounts outstanding in this Note have been paid in full, the Borrower shall:

 

Section
8.01 Maintenance of Existence. (a) Preserve, renew and maintain in full force and effect its corporate or organizational
existence; and (b) take all reasonable action to maintain all rights, privileges, permits, licences and franchises necessary or
desirable in the normal conduct of its business, except, in each case, where the failure to do so would not reasonably be expected
to have a Material Adverse Effect.

 

Section
8.02 Compliance. Comply with (a) all of the terms and provisions of its articles, by-laws and any unanimous shareholder
agreement; (b) its obligations under its material contracts and agreements; and (c) all Applicable Laws and Orders applicable to it and
its business, except where the failure to do so would not reasonably be expected to have a Material Adverse Effect.

 

Section
8.03 Payment Obligations. Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, all its material obligations of whatever nature, except where the amount or validity thereof is currently being contested
in good faith by appropriate proceedings, and reserves in conformity with GAAP with respect thereto have been provided on its books.

 

Section
8.04 Notice of Events of Default. As soon as possible and in any event within one (1) Business Day after it becomes aware that a
Default or an Event of Default has occurred, notify the Noteholder in writing of the nature and extent of such Default or Event of
Default and the action, if any, it has taken or proposes to take with respect to such Default or Event of Default.

 

    	 

     

    

 

Section
8.05 Furnishing of Information. For so long as this Note is outstanding, Borrower shall deliver to the Noteholder: (i)
for each of Borrower’s first three fiscal quarters unaudited quarterly financial statements within 45 calendar days after each
quarter-end, (ii) within 120 days after each of Borrower’s fiscal year ends, annual audited financial statements prepared according
to GAAP, and (iii) copies of any documents or data furnished to Borrower’s stockholders in their capacity as stockholders regarding
the Borrower or its affairs, simultaneously with the furnishing of such documents or data to such stockholders.

 

Section
8.06 Further Assurances. Upon the request of the Noteholder, promptly execute and deliver such further instruments and
do or cause to be done such further acts as may be necessary or advisable to carry out the intent and purposes of this Note and the Security
Agreement.

 

Section
8.07 Use of Proceeds. The Company will only use the proceeds of the Loan in accordance with the use of proceeds set forth on Schedule
8.7.

 

ARTICLE
IX

Negative Covenants

 

Until
all amounts outstanding under this Note have been paid in full, the Borrower shall not:

 

Section
9.01 Indebtedness. Incur, create or assume any Debt, other than Permitted Debt.

 

Section
9.02 Encumbrances. Incur, create, assume or suffer to exist any Encumbrance on any of its property or assets, whether now
owned or hereinafter acquired except for Permitted Encumbrances.

 

Section
9.03 Line of Business. Enter into any business, directly or indirectly, except for those businesses in which the Borrower
is engaged on the date of this Note or that are reasonably related thereto.

 

Section
9.04 Limitation on Changes to Capital Structure. Make any change to its capital structure, authorize or issue any Equity
Interests of the Borrower.

 

Section
9.05 Limitation on Dispositions. Sell, lease, assign, transfer or otherwise dispose of any of its assets or property outside of
the ordinary course of business, whether now owned or hereafter acquired, or issue of sell any Equity Interests of the Borrower to
any Person.

 

Section
9.06 Limitation on Distributions. Make any Distributions to shareholders or creditors.

 

Section
9.07 Compliance with Anti-Terrorist Financing and Anti-Money Laundering Laws. Violate any applicable Anti-Terrorist
Financing and Anti-Money Laundering Laws.

 

Section
9.08 Amalgamation Agreement. Take or suffer any act not permitted under the Amalgamation Agreement.

 

ARTICLE
X

Events of Default

 

The
occurrence and continuance of any of the following shall constitute an Event of Default hereunder:

 

Section
10.01 Failure to Pay. The Borrower fails to pay (a) any principal amount of the Loan when due or (b) interest or any other
amount when due.

 

Section
10.02 Breach of Representations and Warranties. Any representation or warranty made or deemed made by the Borrower to the
Noteholder herein or in the Security Agreement is incorrect in any material respect on the date as of which such representation or warranty
was made or deemed made.

 

Section
10.03 Breach of Covenants. The Borrower fails to observe or perform (a) any covenant, condition or agreement contained
in ARTICLE IX or (b) any other material covenant, obligation, condition or agreement contained in this Note or the Security Agreement
other than those specified in clause (a) and Section 10.01 and, in either case of (a) or (b), and if capable of cure and subject to any
other provision of this Note, such failure continues for five (5) Business Days after written notice to the Borrower.

 

    	 

     

    

 

Section
10.04 Cross-defaults. The Borrower fails to pay when due any of its Debt (other than Debt arising under this Note) or any
interest or premium thereon when due (whether by scheduled maturity, acceleration, demand or otherwise) and such failure continues after
the applicable grace period, if any, specified in the agreement or instrument relating to such Debt.

 

Section
10.05 Bankruptcy and Insolvency.

 

	 	(a)	the
    Borrower commences any application, proceeding or other action (i) under any existing or future Applicable Law relating to bankruptcy,
    insolvency, reorganization, or other relief of debtors, seeking to have an order for relief entered with respect to it, or seeking
    to adjudicate it as bankrupt or insolvent, or seeking reorganization, arrangement, proposal, adjustment, winding-up, liquidation,
    dissolution, composition or other relief with respect to it or its debts or (ii) seeking appointment of a receiver, interim receiver,
    receiver and manager, trustee, custodian, conservator or other similar official for it or for all or any part of its assets, or the
    Borrower makes a general assignment for the benefit of its creditors;
	 	 	 
	 	(b)	there
    is commenced against the Borrower any application, proceeding or other action of a nature referred to in Section 10.05(a) which (i)
    results in the entry of an order for relief or any such adjudication or appointment or (ii) remains undismissed, undischarged or
    unbonded for a period of thirty (30) calendar days;
	 	 	 
	 	(c)	there
    is commenced against the Borrower any application, proceeding or other action seeking issuance of a writ of seizure and sale, execution,
    garnishment, or similar process against all or any part of its assets which results in the entry of an order for any such relief
    which has not been vacated, discharged, stayed or bonded pending appeal within thirty (30) calendar days from the entry thereof;
	 	 	 
	 	(d)	the
    Borrower takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth
    in Section 10.05(a), Section 10.05(b) or Section 10.05(c); or
	 	 	 
	 	(e)	the
    Borrower is generally not, or shall be unable to, or admits in writing its inability to, pay its debts as they become due.

 

Section
10.06 Judgments and Executions. One or more judgments or writs of seizure and sale shall be entered, issued or registered
against the Borrower and all of such judgments or writs of enforcement shall not have been vacated, discharged, stayed or bonded pending
appeal within thirty (30) calendar days from the entry thereof.

 

Section
10.07 Abandonment or Delay of Amalgamation. The Amalgamation shall be abandoned by any party thereto or the Amalgamation
Closing shall not have occurred by March 31, 2020.

 

ARTICLE
XI

Remedies

 

Section
11.01 Remedies. Upon the occurrence of any Event of Default and at any time thereafter during the continuance of such Event
of Default, the Noteholder may, at its option, by written notice to the Borrower (a) declare the entire principal amount of this
Note, together with all accrued interest thereon and all other amounts payable hereunder, immediately due and payable; and/or (b)
exercise any or all of its rights, powers or remedies under the Security Agreement or Applicable Law; provided,
however that, if an Event of Default described in Section 10.05 or 10.07 shall occur, the principal of and accrued interest
on the Loan shall become immediately due and payable without any notice, declaration or other act on the part of the
Noteholder.

 

    	 

     

    

 

ARTICLE
XII

Miscellaneous

 

Section
12.01 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, facsimile, or electronic mail, 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) upon receipt, when sent by electronic mail (provided confirmation of transmission
is electronically generated and keep on file by the sending party), or (c) 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 as follows: (i) if to Borrower, to: Jay Pharma, Inc., Attn: David Stefansky, Email: dstefansky@bezalelpartners.com,
with a copy by email or fax only to (which shall not constitute notice): Haynes and Boone LLP, 30 Rockefeller Plaza, 26th Floor,
New York, NY 10112, Attn: Rick Werner, Esq., Email: Rick.Werner@haynesboone.com, Fax: (212) 884-8234, and (ii) if to the Noteholder,
to: the address, email address or fax number indicated on the front page of this Note, with an additional copy by email or fax only to
(which shall not constitute notice): Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581, Email: counslers@grushkomittman.com,
Fax: (212) 697-3575.

 

Section
12.02 Expenses. The Borrower agrees to reimburse the Noteholder on demand for all reasonable and documented out-of-pocket
costs, expenses and fees (including reasonable expenses and fees of its external counsel) incurred by the Noteholder in connection with
the transactions contemplated hereby including (a) the negotiation, documentation and execution of this Note and the Security Agreement;
and (b) the enforcement of the Noteholder’s rights hereunder and thereunder.

 

Section
12.03 Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and
defense of the transactions contemplated by the Note or Security Agreement (whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, employees or agents) shall if commenced by any Person other than the Noteholder be
commenced exclusively in the state and federal courts sitting in the City of New York, Borough of Manhattan (the “New York
Courts”); and if commenced by the Noteholder, at the election of Noteholder, in New York Courts or in any other
jurisdiction having jurisdiction over the non-Noteholder party to such legal proceedings. Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Note or
Security Agreement), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is
not personally subject to the jurisdiction of such New York Courts, or such New York Courts are improper or inconvenient venue for
such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such
suit, action or proceeding 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 Note 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 applicable law. Each party hereto hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or
the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of this Note,
then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and
other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding. This Note
shall be deemed an unconditional obligation of Borrower for the payment of money and, without limitation to any other remedies of
Noteholder, may be enforced against Borrower by summary proceeding pursuant to New York Civil Procedure Law and Rules Section 3213
or any similar rule or statute in the jurisdiction where enforcement is sought. For purposes of such rule or statute, any other
document or agreement to which Noteholder and Borrower are parties or which Borrower delivered to Noteholder, which may be
convenient or necessary to determine Noteholder’s rights hereunder or Borrower’s obligations to Noteholder are deemed a
part of this Note, whether or not such other document or agreement was delivered together herewith or was executed apart from this
Note.

 

    	 

     

    

 

Section
12.04 Counterparts; Electronic Delivery. This Note, any amendments, waivers, consents or supplements hereto may be executed
in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all
taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this Note by facsimile
or in electronic (such as “pdf” or “tif”) format shall be effective as delivery of a manually executed
counterpart of this Note.

 

Section
12.05 Entire Agreement. This Note and the Security Agreement constitute the sole and entire agreement of the parties hereto
with respect to the subject matter contained herein and therein and supersedes all prior and contemporaneous understandings,
agreements, representations and warranties both written and oral, with respect to such subject matter.

 

Section
12.06 Successors and Assigns. This Note may be assigned or transferred by the Noteholder to any Person. The Borrower may
not assign or transfer this Note or any of its rights hereunder without the prior written consent of the Noteholder which consent may
be refused in the absolute discretion of the Noteholder without providing any reason whatsoever. This Note shall enure to the benefit
of, and be binding upon, the Parties and their permitted assigns.

 

Section
12.07 Waiver of Notice. The Borrower hereby waives demand for payment, presentment for payment, protest, notice of payment,
notice of dishonour, notice of nonpayment, notice of acceleration of maturity and diligence in taking any action to collect sums
owing hereunder.

 

Section
12.08 Interpretation. For purposes of this Note (a) the words “include”, “includes” and
“including” shall be deemed to be followed by the words “without limitation”; (b) the word “or”
is not exclusive; and (c) the words “herein”, “hereof”, “hereby”, “hereto” and
“hereunder” refer to this Note as a whole. The definitions given for any defined terms in this Note shall apply equally
to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. Unless the context otherwise requires, references herein: (x) to Schedules,
Exhibits and Sections mean the Schedules, Exhibits and Sections of this Note; (y) to an agreement, instrument or other document
means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted
by the provisions thereof; and (z) to a statute means such statute as amended from time to time and includes any successor
legislation thereto and any regulations promulgated thereunder. This Note shall be construed without regard to any presumption or
rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. All
dollar amounts referred to in this Note mean the lawful currency of the United States of America.

 

Section
12.09 Amendments and Waivers. None of the terms or provisions of this Note may be amended, modified, supplemented,
terminated or waived, except by an instrument in writing signed by both of the parties hereto. Any waiver of the terms hereof shall
be effective only in the specific instance and for the specific purpose given.

 

Section
12.10 Headings. The headings of the various sections and subsections herein are for reference only and shall not define,
modify, expand or limit any of the terms or provisions hereof.

 

Section
12.11 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising on the part of the Noteholder, of any
right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.

 

Section
12.12 Severability. Any provision hereof which is invalid, illegal or unenforceable in whole or in part in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without invalidating
the remaining provisions hereof or affecting the validity, legality or enforceability of such provision in any other
jurisdiction.

 

Section
12.13 Absolute Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation
of Borrower, which is absolute and unconditional, to pay the principal and accrued interest or other monetary amounts on this Note
at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of
Borrower.

 

Section
12.14 Lost or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, Borrower shall execute and
deliver, in exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost,
stolen or destroyed Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon
receipt of evidence of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to
Borrower.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Borrower has executed this Note as of January 10, 2020.

 

	 	JAY
    PHARMA, INC.
	 	 	 
	 	By	/s/
    David Stefansky 
	 	Name:	David
    Stefansky
	 	Title:	President
    and Secretary

 

    	 

     

    

 

EXHIBIT
A

 

Evidence
of Debt

 

[See
attached]

 

    	 

     

    

 

EXHIBIT
B

 

Financial
Statements

 

[See
attached]Exhibit
10.2

 

NOTE
AMENDMENT AGREEMENT

 

THIS
NOTE AMENDMENT AGREEMENT, entered into as of May 6, 2020, (this “Note Amendment”), is among Jay Pharma Inc., a federally
chartered Canadian corporation (“Borrower) and Alpha Capital Anstalt (the “Noteholder”) to amend that certain
Secured Promissory Note dated January 10, 2020 in the principal amount of $1,500,000 (the “Note”).

 

IN
CONSIDERATION of the mutual covenants herein contained, and for other good and valuable consideration the receipt and sufficiency
of which is hereby acknowledged, Borrower and Noteholder agree as follows:

 

1.
The definition of “Maturity Date” set forth in Article I of the Note is hereby deleted and replaced with the following:

 

“Maturity
Date” means the earliest of (a) September 30, 2020, and (b) the date on which all amounts under this Note shall become
due and payable under ARTICLE XI.

 

2.
Section 10.07 is deleted and replaced with the following:

 

“Section
10.07 Abandonment or Delay of Amalgamation. The Amalgamation shall be abandoned by any party thereto or the Amalgamation Closing
shall not have occurred by September 30, 2020.”

 

3.
Except as specifically modified herein the Note remains in full force and effect and is incorporated herein. This Note Amendment
is deemed a part of the Note and governed by all the terms therein.

 

4.
This Note Amendment, any amendments, waivers, consents or supplements hereto may be executed in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an original, but all taken together shall constitute
a single contract. Delivery of an executed counterpart of a signature page to this Note Amendment by facsimile or in electronic
(such as “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this
Note Amendment.

 

In
witness of whereof the parties have caused this Note Amendment to be duly executed as of the date written above.

 

	BORROWER	 	NOTEHOLDER
	 	 	 
	Jay
    Pharma Inc.	 	Alpha
    Capital Anstalt
	 	 	 
	 /s/
    Henoch Cohn	 	/s/
    Nicola Feuerstein
	By:
    Henoch Cohn 	 	By:
    Nicola Feuerstein 
	Its:
    Chief Executive Officer	 	Its:
        Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00325-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00325-of-00352.parquet"}]]