Document:

Exhibit
10.1

 

Prestige
Capital Finance, LLC

 

400
KELBY STREET, 10TH FLOOR, FORT LEE, NEW JERSEY 07024 (201) 944-4455

 

Purchase
and Sale Agreement (“Agreement”)

 

1.
ASSIGNMENT. PRESTIGE CAPITAL FINANCE, LLC (“Prestige”) hereby buys and EMMAUS MEDICAL, INC. (“Seller”)
hereby sells, transfers and assigns to Prestige all of Seller’s right, title and interest in and to those specific accounts
receivable owing to Seller as set forth on the assignment forms provided by Prestige (the “Assignments”) together
with all rights of action accrued or to accrue thereon, including without limitation, full power to collect, sue for, compromise,
assign or in any other manner enforce collection thereof in Prestige’s name or otherwise. All of Seller’s accounts
receivable and contract rights which are presently or at any time hereafter assigned by Seller, and accepted by Prestige, are
collectively referred to as (the “Account(s)”).

 

2.
ADVANCE. Upon Prestige’s receipt and acceptance of each Assignment, Prestige shall pay to Seller SEVENTY percent
(70%) of the face value of the Accounts therein described (the “Down Payment”). The advance rate herein may
be increased to SEVENTY-FIVE percent (75%) in the event cumulative aggregate amounts collected by Prestige on the
Accounts is not less than 87% of the face amount of the Accounts during the initial 90-day period of this Agreement provided there
are no outstanding chargebacks or disputes with respect to the Accounts. Notwithstanding anything to the contrary contained in
this Agreement, the maximum outstanding balance of Seller to Prestige shall be $7,500,000 (“Maximum Advance”).

 

3.
RESERVE. Prestige will hold in reserve the difference between the Purchase Price (hereinafter defined) and the Down Payment
(the “Reserve”) and provided there are no outstanding chargebacks, disputes or defaults under the Agreement
and Seller has not ceased operations for 30 or more consecutive days, will pay to Seller, the Reserve, less any sums due Prestige
hereunder, four (4) business days from the date on which the Accounts have been collected in good funds and/or charged back. For
purposes of this Agreement, the term “Purchase Price” shall mean the net face value of Accounts, less; Prestige’s
discount fee described in paragraph 4 below, returns, credits, allowances and discounts; and less all other sums charged or chargeable
to Seller’s Accounts.

 

4.
DISCOUNT.  Prestige’s purchase of the Accounts from Seller shall be at a discount fee which is deducted from the face
value of each Account upon collection. The discount fee, which shall be based on the number of days an Account is outstanding
from the date of the Down Payment, shall be as follows: If paid within 35 days a discount fee of 2.25%; if paid within
40 days a discount fee of 3.09%; if paid within 50 days a discount fee of 3.93%; if paid within 60 days a discount
fee of 4.75%; if paid within 70 days a discount fee of 5.59%; if paid within 80 days a discount fee of 6.43%;
if paid within 90 days a discount fee of 7.25%; and if paid after 90 days a discount fee of 7.25% plus an additional 1.5%
for each 10-day period thereafter until the Account is paid in full.

 

5.
WARRANTIES, REPRESENTATION AND COVENANTS. As an inducement for Prestige’s entering into this Agreement and with full
knowledge that the truth and accuracy of the warranties, representations and covenants in this Agreement are being relied upon
by Prestige, instead of the delay of a complete credit investigation, Seller warrants, represents and covenants that:

 

		(a)	Seller
                                         is properly licensed and authorized to operate the business as a pharmaceutical company;

 

		(b)	Seller
                                         is the sole and absolute owner of the Accounts and has the full legal right to make said
                                         sale, assignment and transfer;

 

		(c)	The
                                         correct amount of each Account will be set forth on the Assignments;

 

		(d)	Each
                                         Account is an accurate and undisputed statement of indebtedness from an account debtor
                                         for a sum certain, without offset or counterclaim and which is due and payable in ninety
                                         days or less;

 

		(e)	Each
                                         Account is an accurate statement of a bona fide sale, delivery and acceptance of merchandise
                                         or performance of service by Seller to an account debtor;

 

		(f)	Seller
                                         does not own, control or exercise dominion in any way whatsoever, over the business of
                                         any account debtor;

 

		(g)	All
                                         financial records, statements, books or other documents shown to Prestige by Seller at
                                         any time either before or after the signing of this Agreement are true and accurate;

 

		(h)	Seller
                                         will not under any circumstance or in any manner whatsoever, interfere with any of Prestige’s
                                         rights under this Agreement;

 

		(i)	Except
                                         for the security interests on the Collateral created prior to the Effective date, Seller
                                         has not and will not, at any time, permit any lien, security interest or encumbrance
                                         to be created upon any of its accounts receivable and/or its inventory without the prior
                                         written consent of Prestige;

 

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		(j)	Seller
                                         will not enter into any agreement for a “Merchant Cash Advance” or similar
                                         product without the prior written consent of Prestige;

 

		(k)	There
                                         are no outstanding federal or state tax liens recorded against Seller;

 

		(l)	Seller
                                         will not change or modify the terms of the Accounts with any account debtor unless Prestige
                                         first consents, in writing;

 

		(m)	Seller
                                         will notify Prestige, in advance of: any change in Seller’s place of business;
                                         Seller having or acquiring more than one place of business; any change in Seller’s
                                         chief executive office; and/or any change in the office or offices where Seller’s
                                         books and records concerning accounts receivable are kept;

 

		(n)	Seller
                                         will notify Prestige, in writing, in advance of any planned temporary or permanent closure
                                         or cessation of Seller’s business.

 

		(o)	Seller
                                         will notify Prestige, in writing, in advance of any proposed or actual change of the
                                         Seller’s identity, legal entity or corporate structure and will promptly notify
                                         Prestige upon learning of any change in any account debtor’s identity, legal entity
                                         or corporate structure;

 

		(p)	A
                                         notification letter from Seller and/or all invoices will state on their face that the
                                         Accounts represented thereby have been assigned to Prestige and are to be paid directly
                                         to Prestige; and

 

		(q)	No
                                         Account shall be on a bill-and-hold, guaranteed sale, sale-and-return, sale on approval,
                                         consignment or any other repurchase or right of return basis;

 

The
warranties, representations and covenants contained in this paragraph 5 shall be continuous and be deemed to be renewed each time
Seller assigns Accounts to Prestige. Notwithstanding the provisions contained in paragraph 6 of this Agreement, Prestige shall
have recourse against the Seller in the event that any of the warranties, representations and covenants set forth in this paragraph
5 are breached.

 

6.
NO RECOURSE. Prestige shall have no recourse against Seller for Advances made by Prestige if payments are not received solely
due to the “Insolvency” of an account debtor within 90 days of invoice date. For purposes of the foregoing, Insolvency
shall be deemed to have occurred only when: (a) a voluntary or involuntary bankruptcy proceeding for the relief of an account
debtor under either Chapter 7 or Chapter 11 shall have been instituted in a United States Bankruptcy Court; (b) a receiver is
appointed for the whole or any part of the property of an account debtor; (c) an account debtor’s assets shall have been
sold under a writ of execution or attachments, or a writ of execution shall have been returned unsatisfied; (d) an account debtor
shall have absconded; or (e) an account debtor’s assets shall have been sold under levy by any taxing authority or by a
landlord.

 

7.
CHARGE-BACK.  In the event that any Account is not paid within 90 days of invoice date for any reason whatsoever (other than
as a result of an account debtor’s Insolvency), including, without limitation, any alleged defense, counterclaim, offset,
dispute or other claim (real or merely asserted) whether arising from or relating to the sale of goods or rendition of services
or arising from or relating to any other transaction or occurrence, then in any such event Prestige shall have the right to chargeback
such Account to Seller. Seller acknowledges that all amounts chargeable to Seller’s account under this Agreement shall be
payable by Seller on demand. Upon satisfaction of a chargeback of an Account and provided there are no other outstanding chargebacks
or defaults at such time, Prestige shall assign all of its title, rights and interests in and to such Account to Seller.

 

8.
NOTICE OF DISPUTE.  Seller will promptly notify Prestige of any disputes between any account debtor and Seller.

 

9.
SETTLEMENT OF DISPUTE. Upon 10 days’ notice to Seller, Prestige may, at its option, settle any dispute with any account
debtor. Such settlement does not relieve Seller of any of its obligations under this Agreement.

 

10.
SOLE PROPERTY. Once Prestige has purchased the Accounts, the payment from account debtors relative to the Accounts is the
sole property of Prestige. Any interference by Seller with this payment may result in civil and/or criminal liability.

 

11.
SECURITY INTEREST. As a further inducement for Prestige to enter into this Agreement, and as security for the prompt performance,
observance and payment of all obligations owing by Seller to Prestige, Seller hereby grants to Prestige a continuing security
interest in and lien upon the following (herein collectively referred to as the “Collateral”): all accounts,
inventory, machinery and equipment, instruments, documents, chattel paper and general intangibles (as such terms are defined in
the Uniform Commercial Code), whether now owned or hereafter created or acquired by Seller, wherever located, and all replacements
and substitutions therefore, accessions thereto, and products and proceeds thereof, and all property of Seller at any time in
Prestige’s possession. Notwithstanding the foregoing, Prestige shall have a first security interest only in Seller’s
accounts receivable in accordance with subordination agreements to be executed by Prestige and existing secured party(s) prior
to closing.

 

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12.
FINANCING STATEMENTS. Seller will, at its expense perform all acts and execute all documents requested by Prestige at any
time to evidence, perfect, maintain and enforce Prestige’s security interest and other rights in the Collateral and the
priority thereof.

 

13.
HOLD IN TRUST. Seller will hold in trust and safekeeping, as the property of Prestige and immediately turnover to Prestige,
the original check or other form of payment received by Seller if payment on the Accounts comes into Seller’s possession.
Should Seller come into possession of a check comprising payments owing to both Seller and Prestige, Seller shall turnover said
check to Prestige. In the event Seller receives a payment, in the form of a check, for an Account and it is improperly deposited
into Seller’s bank account or in the event Seller fails to turnover to Prestige a wire transfer or ACH payment it receives
from an Account within two business days of receipt, then Prestige reserves the right to impose liquidated damages upon Seller
of up to 20% of the amount of any payment so improperly retained. Notwithstanding the foregoing, with respect to the improperly
deposited checks, Prestige agrees to waive the aforementioned charge on the first two (2) occasions provided that on such occasions
Seller remits, in full, the improperly deposited funds to Prestige within 48 hours of receipt.

 

14.
FINANCIAL RECORDS. Seller will furnish to Prestige financial statements and such other information as is, from time to time,
reasonably requested by Prestige.

 

15.
BOOK ENTRY. Seller will immediately, upon the sale of the Accounts, make the proper entry on its books and records disclosing
the absolute sale of the Accounts to Prestige.

 

16.
POWER OF ATTORNEY. In order to implement this Agreement, Seller irrevocably appoints Prestige its special attorney in fact
or agent with power to:

 

		(a)	Strike
                                         out Seller’s address on any correspondence to any account debtor and put on Prestige’s
                                         address;

		(b)	Receive
                                         and open all mail addressed to Seller via Prestige’s address;

		(c	)
                                         Endorse the name of Seller or Seller’s trade name on any checks or other evidences
                                         of payment that may come into the possession of Prestige in connection with the Accounts;

		(d)	In
                                         Seller’s name, or otherwise, demand, sue for, collect any and all monies due in
                                         connection with the Accounts; and

		(e)	Compromise,
                                         prosecute or defend any action, claim or proceeding relative to the Accounts;

 

The
authority granted to Prestige shall remain in full force and effect until the Accounts are paid in full and the entire indebtedness
of Seller to Prestige is discharged.

 

17.
ADDITIONAL NOTIFICATION; VERIFICATION OF ACCOUNTS

		(a)	Without
                                         in any way limiting the terms and provisions of paragraph 5 (p) hereinabove, Prestige
                                         may, upon default by Seller and in its sole discretion, notify any account debtor to
                                         make payment on any of Seller’s open invoices to Prestige; and Prestige, or any
                                         of its agents, may at any time verify the Accounts by any reasonable means deemed appropriate
                                         by Prestige.

 

18.
NO ASSUMPTION. Nothing contained in this Agreement shall be deemed to impose any duty or obligation upon Prestige in favor

of
any account debtor and/or any other third party in connection with the Accounts.

 

19.
FUTURE ASSIGNMENTS. Seller may from time to time, at Seller’s option, sell, transfer and assign different Accounts to
Prestige. The future sale of any Accounts shall be subject to and governed by this Agreement and such Accounts shall be identified
by separate and subsequent Assignments.

 

20.
DISCRETION. Nothing contained in this Agreement shall be construed to impose any obligation upon Prestige to purchase Accounts
from Seller. Prestige shall at its sole discretion determine which Accounts it shall purchase. Further, Prestige shall have the
absolute right at any time to cease accepting any further Assignments from Seller.

 

21.
LEGAL FEES; EXPENSES. Seller will pay on demand any and all collection expenses and reasonable outside legal counsel’s
fees that Prestige incurs in the event it should become necessary for Prestige to enforce its rights under this Agreement. In
addition, once the Agreement becomes effective, Seller will pay on demand all costs and expenses incurred by Prestige in any way
relating to the transactions contemplated by this Agreement, including, without limitation, all reasonable attorneys’ fees,
Federal Express costs (or similar expenses), wire transfer costs, certified mail costs, lien search costs and dedicated lockbox
fees.

 

22.
BINDING ON FUTURE PARTIES.  This Agreement shall inure to the benefit of and is binding upon the heirs, executors, administrators,
successors and assigns of the parties hereto, except that Seller may not assign or transfer any or all of its rights and obligations
under this Agreement to any party without the prior written consent of Prestige.

 

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23.
WAIVER; ENTIRE AGREEMENT. No failure or delay on Prestige’s part in exercising any right, power or remedy granted to
Prestige herein, will constitute or operate as a waiver thereof, nor shall any single or partial exercise of any such right, power
or remedy preclude any other or further exercise thereof or the exercise of any other right set forth herein. This Agreement contains
the entire agreement and understanding of the parties hereto and no amendment, modification or waiver of, or consent with respect
to, any provision of this Agreement, will in any event be effective unless the same is in writing and signed and delivered by
Prestige.

 

24.
NEW JERSEY LAW. This Agreement shall be deemed executed in the State of New Jersey and, in all respects shall be governed
and construed in accordance with the laws of the State of New Jersey. Each of the parties to this Agreement hereby submits to
the non-exclusive jurisdiction of the US District Court of New Jersey and in any New Jersey State Court sitting in Bergen County,
New Jersey.

 

25.
INDEMNITY. Seller shall hold Prestige harmless from and against any action or other proceeding brought by any account debtor
against Prestige arising from Prestige’s collecting or attempting to collect any of the Accounts, unless such action or
proceeding is due to the gross negligence, willful misconduct, recklessness or intentionally tortious acts of Prestige.

 

26.
CURRENCY. All dollar amounts referred to in this Agreement are stated in the lawful currency of the United States of America
(the “Original Currency”). Seller and all account debtors will make payment relative to all amounts owing under this
Agreement in the Original Currency. If a payment is made to Prestige in a currency (the “Other Currency”) other than
the Original Currency, such payment will constitute a discharge of the liability of the payor only to the extent of the amount
of the Original Currency it receives on the date of receipt. If the amount of the Original Currency which Prestige is able to
purchase is less than the amount of such currency originally due to it, Seller will indemnify and save Prestige harmless from
and against any loss or damage arising as a result of such deficiency.

 

27.
TERM. This Agreement will remain in effect for one year from the date that this Agreement becomes effective (the “Term”).
Thereafter, the Term will be automatically extended for successive periods of one (1) year each unless either party provides the
other with a written notice of cancellation of at least sixty (60) days prior to the expiration of the initial Term or any renewal
Term; provided, however, Prestige may cancel this Agreement at any time
upon sixty (60) days’ notice to Seller. In the event of a breach by Seller of any term or provision of this Agreement or
upon Seller’s insolvency or the insolvency of any guarantor of Seller’s obligations herein, Prestige shall have the
right to cancel this Agreement without notice to Seller, and all of Seller’s obligations to Prestige herein shall be immediately
due and payable. In the event of cancellation, the provisions of this Agreement shall remain in full force and effect until all
of the Accounts and all of Sellers obligations to Prestige have been paid in full Within ten (10) days following cancellation
of this Agreement and the satisfaction of all of Seller’s obligations to Prestige as aforesaid, Prestige will, at its expense
perform all acts and execute all documents requested by Seller to terminate Prestige’s security interest and other rights
in the Collateral.

 

28.
EARLY TERMINATION. In the event that Seller wishes to terminate the Agreement prior to the expiration of the Term, then in
addition to paying Prestige all other obligations due under this Agreement, Seller shall also pay Prestige an early termination
fee equal to $25,000 per month for each month remaining under the Term.

 

29.
INVALID PROVISIONS. If any provision of this Agreement shall be declared illegal or contrary to law, it is agreed that such
provision shall be disregarded and this Agreement shall continue in force as though said provision had not been incorporated herein.

 

30.
EFFECTIVE. This Agreement shall become effective when it is accepted and executed by an authorized officer of Prestige. Facsimile
machine or PDF copies of an original signature by either party on this Agreement shall be binding as if said copies were original
signatures.

 

*
* * * INTENTIONALLY LEFT BLANK * * * *

 

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31.
JURY WAIVER. The parties hereto hereby mutually waive trial by jury in the event of any litigation with respect to any matter
connected with this Agreement.

 

	 	 	 	Accepted:
	 	 	 	 	 
	 	EMMAUS MEDICAL, INC.	 	 	PRESTIGE CAPITAL
    FINANCE, LLC
	 	 	 	 	 
	 	 	 	 	 
	By:  	/s/
    Yutaka Niihara	 	By:  	 /s/
    Alan R. Eliasof
	 	YUTAKA NIIHARA, CHAIRMAN & CEO	 	 	ALAN R. ELIASOF, CEO
	 	 	 	 	 
	This 22nd day of December,
    2020	 	This 22nd day of February,
    2021

 

In
consideration of the foregoing Agreement, each of the undersigned hereby personally agrees to be jointly and severally liable
for any damages suffered by Prestige Capital Finance, LLC by virtue of the breach of any warranty, representation or covenant
made by Seller in paragraph 5 above. 

 

	Date:
    12/22/20	By: 	 /s/
    Yutaka Niihara
	 	YUTAKA NIIHARA, Individually

 

On
this _______ day of ______________in the year _______ before me, the undersigned, a notary public in and for the said state, personally
appeared ______________________, personally known to me or proved to me on the basis of satisfactory evidence to be the individual
whose name is subscribed to the within instrument and acknowledged to me, he/she/they executed the same in his/her capacity, and
that by his/her signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed
the instrument.

 

		__________________________ 	 	____________________________________	State: _______________________
	 	Notary Public (Signature)	 	Notary- Print Name	Commission Expires:__________

 

	Date: 12/22/20	By: 	 /s/
    Willis C. Lee      
	 	WILLIS C. LEE, Individually

 

On
this _______ day of ______________in the year _______ before me, the undersigned, a notary public in and for the said state, personally
appeared ______________________, personally known to me or proved to me on the basis of satisfactory evidence to be the individual
whose name is subscribed to the within instrument and acknowledged to me, he/she/they executed the same in his/her capacity, and
that by his/her signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed
the instrument.

 

		__________________________ 	 	____________________________________	State: ___________________________
	 	Notary Public (Signature)	 	Notary- Print Name	Commission Expires:_________________

 

 

		Pg 5 of 5Exhibit 10.2

 

GUARANTY

 

DATE: December 9, 2020

 

Prestige Capital Finance,
LLC

400 Kelby Street

10th Floor

Fort Lee, New Jersey
07024

 

To induce Prestige Capital
Finance, LLC (“Prestige”) to make advances or other financial accommodations to Emmaus Medical, Inc. (“Client”),
now or in the future, and with full knowledge that said advances or other financial accommodations would not be made without this
Guaranty, the undersigned (sometimes “Guarantor”) agrees as follows:

 

The undersigned guarantees
full, prompt and unconditional payment when due of each and every Liability of the Client to Prestige, now existing or hereafter
incurred, whether direct or indirect, contingent or absolute, joint or several, matured or unmatured and the full, prompt, and
unconditional performance of every term and condition of any transaction to be kept and performed by the Client. This Guaranty
is a primary obligation of the undersigned and shall be a continuing inexhaustible Guaranty without limitation as to the amount
or duration and may not be revoked except by notice in writing to Prestige and received by Prestige at least ninety (90) days prior
to the date set for such revocation. No such notice shall affect the liability under this Guaranty for any such loan or advance
or other financial accommodations to the Client occurring prior to the date set for revocation whether made after notice or revocation
or not.

 

The term “Liability
of the Client” shall include all liabilities, direct or indirect, absolute or contingent, joint or several, now or hereafter
existing, due or to become due to, or held or to be held by Prestige for its own account or as agent for others, whether created
directly or acquired by assignment or otherwise. In the event that Client is a partnership, the term “Liability of the Client”
as used herein shall include all liabilities of any successor partnership or partnerships of the Client, direct or contingent,
joint or several, now or hereafter existing, due or to become due to, or held or to be held by, Prestige, whether created directly
or acquired by assignment or otherwise.

 

Without incurring responsibility
to the undersigned and without impairing or releasing the obligations of the undersigned hereunder, Prestige may at any time and
from time to time (whether or not after revocation or termination of this Guaranty) without the consent of, or notice to the undersigned,
upon any terms or conditions and in whole or in part:

 

1. change the manner,
place or terms of payment, and/or change or extend the time for payment or renew or alter, any Liability of the Client or any security
therefor, and the Guaranty herein made shall apply to the Liability of the Client as so changed, extended, renewed or altered;

 

2. sell, exchange, release,
surrender, realize upon or otherwise deal with in any manner and in any order any property by whomsoever at any time pledged, mortgaged
or in which a security interest is given to secure, or howsoever securing, the Liability of the Client, as permitted by the documents
between the Client and Prestige or by applicable law;

 

    	Guaranty –Emmaus Life Sciences, Inc. for Emmaus Medical, Inc.	December 9, 2020	Pg. 1 of 4

     

    

 

3. exercise or refrain
from exercising any rights against the Client or others (including the undersigned) or against the security, or otherwise act or
refrain from acting;

 

4. settle or compromise
any Liability of the Client, dispose of any security therefor, with or without consideration, or any liability incurred directly
or indirectly in respect thereof or hereof, and may subordinate the payment of all or any part thereof to the payment of any Liability
(whether due or not) of the Client to creditors of the Client other than Prestige and the undersigned; and

 

5. apply any sums by
whomsoever paid or howsoever realized to any Liability of the Client.

 

No invalidity, irregularity
or unenforceability of all or any part of the Liability of the Client or the impairment or loss of any security therefor, whether
caused by any actions or inactions of Prestige, or otherwise, shall affect, impair or be a defense to this Guaranty.

 

Guarantor hereby waives
any right of subrogation to any security and will not exercise any rights which it may acquire by way of subrogation under this
Guaranty, by any payment made hereunder or otherwise, until all of the Liability of the Client to Prestige shall have been paid
in full. If any amount shall be paid to a Guarantor on account of such subrogation rights at any time when all the Liability of
the Client shall not have been paid and performed in full, such amount shall be held in trust for the benefit of Prestige and shall
be paid to Prestige to be credited and applied upon the Liability of the Client, whether matured or unmatured. Guarantor hereby
waives any and all suretyship defenses.

 

Any and all rights and
claims of the undersigned against the Client or any of its property, arising by reason of any payment by the undersigned to Prestige
pursuant to the provisions of this Guaranty, shall be subordinate and subject in right of payment to the prior payment in full
of all Liability of the Client. Guarantor hereby agrees that all indebtedness owing from the Client to the Guarantor, whether now
existing or in the future created, shall be subordinate to the payment of the Liability of the Client to Prestige and agree further
that should the Client default with respect to the Liability of the Client, no such indebtedness owing from the Client to the Guarantor
shall be paid, and no security therefor received, until all the Liability of the Client have been paid in full. Any instrument
evidencing any such indebtedness owing from the Client to Guarantor, and any payment, security or other property received by Guarantor
in violation of this provision, shall be held in trust for the benefit of Prestige and shall be delivered immediately upon receipt
by Guarantor to Prestige to apply to the Liability of the Client whether matured or unmatured.

 

Upon the happening of
any of the following events: the failure of Client to pay when due any Liability of the Client; the death or insolvency of the
Client or any person (including the undersigned) who is liable directly or indirectly in respect of any of the Liability of the
Client; or an adverse change in the financial condition of the Client or any aforesaid person; or suspension of business of the
Client or any aforesaid person; or the issuance of any warrant, process or order of attachment, garnishment or other lien and/or
the filing of a lien as a result thereof against any of the property of the Client or any aforesaid person; or the making by the
Client or any aforesaid person of an Assignment for the Benefit of Creditors; or a Custodian, Trustee or Receiver being appointed
for the Client or any aforesaid person or for any property of any of them; or any proceeding being commenced by or against the
Client or any aforesaid person under any bankruptcy, reorganization, arrangement of debt, insolvency, readjustment of debt, receivership,
liquidation or dissolution law or statute; or if an Order for Relief as to the Client or any aforesaid person is entered under
the Bankruptcy Code; or if the Client or any aforesaid person is generally not paying their debts as they become due; or any representation
in any financial or other statement of the Client or any aforesaid person, delivered to Prestige by or in behalf of the Client
or such person, is untrue or incomplete; then and in such event, and at any time thereafter, Prestige may, without notice to the
Client or any aforesaid person, make the Liability of the Client immediately due and payable hereunder as to the undersigned, and
Prestige shall be entitled to enforce the obligations of the undersigned hereunder.

 

    	Guaranty –Emmaus Life Sciences, Inc. for Emmaus Medical, Inc.	December 9, 2020	Pg. 2 of 4

     

    

 

The undersigned shall
pay all costs and expenses of every kind for collection or enforcement of Prestige’s remedies hereunder, including reasonable
attorneys’ fees and expenses.

 

If claim is ever made
upon Prestige for repayment or recovery of any amount or amounts received by Prestige in payment or on account of any of the Liability
of the Client and Prestige repays all or part of said amount by reason of (a) any judgment, decree or order of any court or administrative
body having jurisdiction over Prestige or any of its property, or (b) any settlement or compromise of any such claim effected by
Prestige with any such claimant (including the Client), then, and in such event, the undersigned agree that any such judgment,
decree, order settlement or compromise shall be binding upon the undersigned, notwithstanding any revocation hereof or the cancellation
of any note or other instrument evidencing any Liability of the Client, and the undersigned shall be and remain jointly and severally
liable to Prestige hereunder for the amount so repaid or recovered to the same extent as if such amount had never originally been
received by Prestige.

 

Settlement of any claim
by Prestige against any account debtor of the Client, whether in any proceedings or not, and whether voluntary or involuntary,
shall not reduce the amount due under the terms of this Guaranty.

 

All rights, powers and
remedies of Prestige hereunder and under any agreement between the Client or Guarantor and Prestige, now, or at any time hereafter
in force, shall be cumulative and not alternative, and shall be in addition to all rights, powers and remedies given to Prestige
by law. The Guarantor’s liability hereunder shall be joint and several.

 

If any term or provision
of this Guaranty is at any time held to be invalid by any court of competent jurisdiction, that invalidity shall not affect the
remaining terms and provisions of this Guaranty, which shall continue to be in full force and effect.

 

No delay on the part
of Prestige in exercising any of its options, powers or rights or partial or single exercise thereof, shall constitute a waiver
thereof. No waiver of any of its rights hereunder, and no modification or amendment of this Guaranty, shall be deemed to be made
by Prestige unless the same shall be in writing, duly signed on behalf of Prestige, by a duly authorized officer, and each such
waiver, if any, shall apply only with respect to the specific instance involved, and shall in no way impair the rights of Prestige
or the obligations of the undersigned to Prestige in any other respect at any other time.

 

Guarantor hereby irrevocably
consents to the nonexclusive jurisdiction of the Courts of the State of New Jersey or any Federal court in such State in connection
with any action or proceeding arising out of or related to this Guaranty. In such litigation, Guarantor waives personal service
of any summons, complaint or other process and agree that service may be made by certified or registered mail, return receipt requested.
IN ANY LITIGATION RELATING TO THIS GUARANTY, PRESTIGE AND GUARANTOR HEREBY WAIVE THEIR RESPECITVE RIGHTS TO TRIAL BY JURY AND ACKNOWLEDGE
THAT THEY HAVE CONSULTED WITH THEIR RESPECTIVE COUNSEL SPECIFICALLY ON THE RAMIFICATIONS OF WAIVING THE RIGHT TO REQUEST TRIAL
BY JURY.

 

    	Guaranty –Emmaus Life Sciences, Inc. for Emmaus Medical, Inc.	December 9, 2020	Pg. 3 of 4

     

    

 

The undersigned waive
notice of acceptance of this Guaranty and notice of any Liability of the Client to which it may apply and waive notice of default,
non-payment, partial payment, presentment, demand, protest, notice of protest or dishonor and all other notices to which Guarantor
might otherwise be entitled, or which might be required by law and required to be given by Prestige.

 

Facsimile machine or
PDF copies of an original signature by either party on this Agreement shall be binding as if said copies were original signatures.

 

This Agreement of Guaranty
shall be binding upon the undersigned Guarantor, his or its heirs, executors, administrators, successors and assigns and shall
enure to the benefit of Prestige, its successors and assigns.

  

	EMMAUS
    LIFE SCIENCES, INC.	 	 	 
	 	 	 	 	 
	 	 	 	Address:	 21250
    Hawthorne Boulevard
	 		 	 	(Street)
	By:	/s/
    Yutaka Niihara	 	 	 
	 	(Signature)	 	 	Torrance,
    CA 91503
	 	 	 	 	(City/State/Zip)
	 	Yutaka
    Niihara, M.D., M.P.H	 	 	 
	 	(Print
    Name)	 	 	 310-214-0065
		 	 	 	(Phone
    Number)
	 	 Chairman
    and Chief Executive Officer	 	 	 
	 	(Title)	 	 	
	 	 	 	 	(Email
    Address)
	State:		 	 	 

 

	County
    of		 	 	 

 

On this _______ day of ______________in the year _______ before
me, the undersigned, a notary public in and for the said state, personally appeared ______________________, personally known to
me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument
and acknowledged to me, he/she/they executed the same in his/her capacity, and that by his/her signature on the instrument, the
individual, or the person upon behalf of which the individual acted, executed the instrument.

 

	 	 	 	 	State:
      ________________________
	Notary Public (Signature)	 	Notary- Print Name	 	Commission Expires:____________

 

 

 

	Guaranty –Emmaus Life Sciences, Inc. for Emmaus Medical, Inc.	December 9, 2020	Pg. 4 of 4

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