Document:

Exhibit

Exhibit 10.15

CONFIDENTIAL EXECUTIVE SEPARATION AGREEMENT AND GENERAL RELEASE OF ALL CLAIMS
This Confidential Executive Separation Agreement and General Release of All Claims ("Agreement") is made and entered into by and between Mark S. Flynn (hereinafter referred to as "Mr. Flynn") and Virtus Investment Partners, Inc. ("Virtus") (collectively, the "Parties").

WHEREAS, Mr. Flynn's role as Executive Vice President, General Counsel and Corporate Secretary will end effective on the earlier of May 13, 2019 or the date on which either a replacement for Mr. Flynn is named, or Virtus in its sole discretion modifies the role, in which case Mr. Flynn will continue in a transitional capacity as outlined herein for any period of time remaining through and until May 13, 2019;

WHEREAS, Mr. Flynn and Virtus wish to resolve fully and finally all matters pertaining to their employment relationship, and neither Party admits wrongdoing;

NOW THEREFORE, in consideration of the mutual covenants and promises herein contained and other good and valuable consideration;

IT IS HEREBY AGREED by and between the Parties as follows:

1.Definitions:

		
	a.
	"Released Parties" shall mean Virtus and any and all associated and member firms, all their respective past, present and future parent companies, subsidiaries, affiliates, divisions, related entities, joint venturers, subcontractors, agents, attorneys, insurers, subrogees, co- insurers and reinsurers, and all their respective, past, present and future officers, directors, employees, members, partners, principals, shareholders and owners, and all their respective heirs, executors, administrators, personal representatives, predecessors, successors, transferees and assigns.

		
	b.
	"Separation Date" shall be May 13, 2019.

		
	c.
	"Transition Period" shall be the period, if any, between the date on which either a replacement for Mr. Flynn is named or Virtus in its sole discretion modifies the role, and the separation date of May 13, 2019; if there is such a Transition Period, it shall be a period during which Mr. Flynn will work, as directed by Virtus in its sole discretion, to satisfactorily transition his work and responsibilities and cooperatively close out any open projects or matters. Virtus requires Mr. Flynn, during the Transition Period, to be available to Virtus as needed, as Virtus in its sole discretion, upon reasonable notice, shall determine. If, during the transition period, Mr. Flynn does not satisfactorily assist in the transition and/or make himself available to Virtus, Virtus reserves the right to terminate Mr. Flynn's employment immediately.

2.Payments and Benefits. Virtus agrees to provide the following payments and benefits to Mr. Flynn in exchange for his promises and his fulfillment of his agreements and commitments stated herein:

		
	a.
	Mr. Flynn will continue on the Virtus payroll at his current rate of pay, with benefits at his current level of participation and subject to any changes in cost or coverage that are applicable to other plan participants, through the Separation Date. Mr. Flynn will also 

be eligible, per the terms of the annual incentive program, to receive a 2018 annual incentive, due and payable on or about March 15, 2019; and

		
	b.
	Virtus shall offer Mr. Flynn a Supplemental Confidential Executive Separation Agreement and General Release of All Claims ("Supplemental Agreement"), in substantially the form attached hereto as Exhibit A, which shall offer Mr. Flynn benefits in accordance with Article 3 of the Executive Severance Allowance Plan in exchange for certain promises and consideration. The Supplemental Agreement shall not be signed prior to close of business on May 13, 2019.

All payments and benefits shall be treated by Virtus in accordance with applicable tax laws.

		
	3.
	No Other Agreements or Amounts Owed.

		
	a.
	Mr. Flynn agrees that the payments and benefits referenced in the Paragraph 2 above shall constitute all of the consideration provided to him under this Agreement. No other claimed payments, damages, costs, or attorneys' fees in connection with the matters encompassed by this Agreement are due or will be sought by him. He expressly agrees that he shall not be eligible for and shall not receive any other bonus or equity award of any kind except as expressly set forth herein. This non-eligibility includes, but is not limited to, any award under the 2019 Long-Term Incentive Plan.

		
	b.
	Mr. Flynn agrees that he would not receive the consideration that is specified in Paragraph 2 above but for his execution of this Agreement and the fulfillment of the promises contained herein.

		
	c.
	Mr. Flynn agrees that, other than that which shall be paid and/or offered pursuant to the express terms of this Agreement, he has received all other wages, overtime, bonuses, severance, vacation pay, commissions, benefits, or any other form of compensation, payments, and/or other amounts due to him as an employee of Virtus.

		
	d.
	Mr. Flynn further agrees that the terms of the applicable equity plan shall control the disposition of any equity award he has received.

4.Tax Consequences. Mr. Flynn acknowledges and agrees that the Released Parties have not made any representations regarding the tax consequences of any monies received pursuant to this Agreement. Mr. Flynn understands and expressly agrees he is solely responsible for any and all tax payments other than taxes withheld from amounts paid pursuant to Paragraph 2 above as reflected in applicable tax forms.

5.No Pending Actions.  Mr. Flynn affirms that neither he nor anyone on his behalf has filed any complaints, charges, claims, or actions in any state, federal or local agency or court against any Released Party. Mr. Flynn further agrees that he will not file any claims against any Released Party in any judicial or arbitral forum. This Agreement does not prevent Mr. Flynn from filing a charge with, or participating in a claim prosecuted by, the Equal Employment Opportunity Commission, or any other administrative agency charged with investigating and/or prosecuting complaints under any applicable federal, state or municipal law or regulation. However, this Agreement does waive Mr. Flynn's right to recover damages under those laws or regulations, except as required by law. Mr. Flynn further agrees that if any court were to assume jurisdiction of any complaint, charge, claim or action against any of the Released Parties on his behalf (other than an action in which he is an unnamed class representative), he will request that court to 

withdraw from or dismiss with prejudice the matter as it relates to him.

Nothing in this Agreement, including but not limited to the release of claims nor the confidentiality clause prohibits Mr. Flynn from: (1) reporting possible violations of federal law or regulations, including any possible securities laws violations, to any governmental agency or entity, including but not limited to the U.S. Department of Justice, the U.S. Securities and Exchange Commission, the U.S. Congress, or any agency Inspector General; (2) making any other disclosures that are protected under the whistleblower provisions of federal law or regulations; or (3) otherwise fully participating in any federal whistleblower programs, including but not limited to any such programs managed by the U.S. Securities and Exchange Commission and/or the Occupational Safety and Health Administration. Moreover, nothing in this Agreement prohibits or prevents Mr. Flynn from receiving individual monetary awards or other individual relief by virtue of participating in such federal whistleblower programs.

6.Non-Cooperation. To the fullest extent permitted by law and except as otherwise set forth herein, Mr. Flynn agrees not to cooperate voluntarily with, aid or assist in any way, any other potential or actual plaintiffs that have, or may have in the future, any lawsuits against any of the Released Parties. Mr. Flynn may cooperate only if compelled to testify under oath pursuant to a lawfully issued subpoena or other similar legal process, notice of which Mr. Flynn shall give within ten (I 0) days of its receipt to Virtus. Mr. Flynn agrees that such cooperation will be in a form no more extensive than required by law.

7.Non-Disparagement. Mr. Flynn agrees that he will not in any way maliciously disparage or defame the good name or business reputation of Virtus, or any of the Releasees, including, but not limited to, their officers, directors and employees, in any forum including to the media.

8.Confidentiality.

		
	a.
	The Parties understand and agree that this Agreement is strictly confidential. Except as specified in this Paragraph 8, the Parties agree not to disclose: i) the existence of this Agreement and any facts concerning its negotiation, execution or implementation, ii) the terms of this Agreement, and iii) the fact that Mr. Flynn received, and will receive, payment from Virtus, including the amount of any payment.

		
	b.
	Mr. Flynn is permitted to make such disclosures or show a copy of the Agreement: i) as required by law; ii) in response to a governmental or regulatory inquiry; iii) to an attorney or accountant for purposes of obtaining legal or tax advice; iv) to a financial advisor for the purpose of obtaining financial advice; or v) to his spouse. To the extent Mr. Flynn makes any disclosures permitted pursuant to items i) or ii) of this Paragraph 8(b), such disclosures shall be made only after giving written notice to Virtus sufficient for Released Parties to have reasonable opportunity to oppose such disclosure. If Mr. Flynn has any question as to whether any disclosure might breach this Paragraph 8, he must obtain written permission before making any such disclosure.

		
	c.
	Virtus and its affiliates may make disclosures as required by law. Virtus and its affiliates also may make disclosures to their respective officers, attorneys, auditors, financial advisors, and employees who, as reasonably determined by Virtus and its affiliates, as applicable, need to know such information, provided that any such disclosure shall be accompanied by an instruction to the person receiving such information to keep the information confidential.

		
	d.
	It shall not be considered a violation of this Agreement for Mr. Flynn to respond to any inquiries by stating he and Virtus mutually agreed that he would transition out of his position.

		
	e.
	Mr. Flynn affirms that he has not divulged any proprietary or confidential information of the Released Parties and will continue to maintain the confidentiality of such information consistent with policies, his agreement(s) with the Released Parties and/or common law.

		
	f.
	The parties understand and agree that because this Paragraph 8 is such a material consideration in the Released Parties' agreement to enter into this Agreement, any violation of any part of this provision shall constitute a material breach of this Agreement.

9.Release   of   Claims.   Mr.   Flynn   hereby   irrevocably   and unconditionally releases, waives and forever discharges the Released Parties from any and all claims, demands or causes of action of every nature or description, based upon or relating to actions, omissions or events occurring before or on the date Mr. Flynn executes this Agreement, whether known or unknown, including, but not limited to, any claims relating to Mr. Flynn's employment. This Release of Claims shall include, but is not limited to, (i) any claims arising under the United States Constitution or any state Constitution; (ii) any claims for wages, compensation or benefits of any kind or nature; (iii) any claims of employment discrimination or related claims, including but not limited to claims brought under: Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.), as amended; The Civil Rights Act of 1991, 42 U.S.C.  § 1981; The Age Discrimination in Employment Act of 1967 (29 U.S.C § 621 et seq.); The Older Workers Benefits Protection Act of 1990 (OWBPA); The Americans With Disabilities Act of 1991, 42 U.S.C. § 12101 et seq.; The Rehabilitation Act of 1973, 29 U.S.C. §§ 701, 706, 791, 793-794; The Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq.; Fair Labor Standards Act of 1938 (29 U.S.C. § 201 et seq.); Equal Pay Act of 1963 (29 U.S.C. § 206(d)); The Employee Retirement Income Security Act of 1974 (except for any vested benefits under any tax qualified benefit plan); The Consolidated Omnibus Budget Reconciliation Act; The Worker Adjustment and Retraining Notification Act; The Fair Credit Reporting Act; and Connecticut anti-discrimination and employment laws; all as amended; (iv) any claims under any other federal, state, or local statute,  executive order, constitutional provision, regulation or ordinance; (v) any claims based on contract, express or implied; (vi) any claims based on tort (including, without limitation, negligence); or (vii) any claims that relate directly or indirectly to, or that are in any way connected with, any of the acts, omissions, events, circumstances, or matters of any kind or nature that Mr. Flynn raised or could have raised during his employment or thereafter.

If any claim is not subject to release, Mr. Flynn waives, to the extent permitted by law, any right or ability to be a class or collective action representative or otherwise to participate in any putative or certified class, collective or multi-party action or proceeding based on such a claim in which any Released Party is a party.

10.Return of Property. Mr. Flynn represents that, within a reasonable period after the Separation Date, or at an earlier date requested by the Company, he will return all property belonging to the Released Parties.

11.Governing Law. This Agreement shall be governed by the laws of the State of Connecticut (without giving effect to its conflicts of laws principles). Any modification to this Agreement must be made in writing and signed by both Virtus and Mr. Flynn.

12.No Inducements or Reliance.   Mr.   Flynn   represents   that   no promise, inducement or other agreement not expressly contained or referenced herein has been made to induce him to enter into this Agreement. He further acknowledges that, in executing this Agreement, he has not relied on any representation or statement made by any Released Party with regard to the subject matter, basis, or effect of this Agreement or otherwise other than those specifically stated in this written Agreement.

13.Period for Review and Execution by Mr. Flynn. Mr. Flynn acknowledges and confirms that he has at least twenty-one calendar (21) days to consider this Agreement, starting on the date on which he received it. Virtus advises Mr. Flynn to seek legal counsel regarding this Agreement before signing it.

14.Period for Revocation by Mr. Flynn.  After executing this Agreement, Mr. Flynn may choose to revoke it within seven (7) days ("the Revocation Period") after his signature hereon. If Mr. Flynn does choose to revoke, he must do so in a writing delivered (by fax, mail or email) to Mardelle Pena, Executive Vice President, Human Resources at Virtus, and received no later than the close of business on the seventh (7th) day following   the date on which Mr. Flynn executes this Agreement. If the last day of the Revocation Period falls on a Saturday, Sunday or holiday, the last day of the Revocation Period will be deemed to be the next business day. In the event that Mr. Flynn does not accept this Agreement or revokes acceptance of this Agreement during the Revocation Period, this Agreement, including, but not limited to, the obligation of the Released Parties to provide the payments and benefits set forth in Paragraph 2, shall automatically be null and void. To the extent any payment set forth in Paragraph 2 of this Agreement is paid prior to the expiration of the Revocation Period and Mr. Flynn timely revokes this Agreement, Mr. Flynn will immediately return all such payment to Virtus, unless such payment represents wages earned for work already performed in his current or transitional role. If such return of payment or any part thereof is collected through judicial proceedings or if the payment is placed with a third party for collection after Mr. Flynn's failure to return such payment, Mr. Flynn agrees to pay, in addition to the principal amount, reasonable attorneys' fees and costs incurred by Virtus.

15.Successors. This Agreement shall be binding on the Parties and on their heirs, administrators, representatives, executors, successors, and assigns and shall inure to the benefit of said Parties and each of them and to their heirs, administrators, representatives, executors, successors, and assigns.

16.No Assignment/Transfer. Mr. Flynn expressly warrants that no rights, causes of actions, or claims released in this Agreement have been assigned, transferred or otherwise disposed of to any person or entity, nor has he made any attempt to do so. Mr. Flynn agrees to hold harmless and indemnify the Released Parties should any other person or entity assert any rights, causes of actions, or claims released in this Agreement.

17.Severability. Mr. Flynn agrees not to challenge the Release of Claims in Paragraph 9 of this Agreement as illegal, invalid or unenforceable. Should any provision of this Agreement be declared or be determined by any court of competent jurisdiction to be illegal, invalid, or unenforceable, all of the other provisions shall remain valid and enforceable, unless the provision found to be unenforceable is of such material effect that this Agreement cannot be performed in accordance with the intent of the Parties in the absence thereof.

18.Entire Agreement/Construction. Except as otherwise expressly set forth herein, this Agreement, along with any applicable plan documents, including but not limited to the Severance Plan as referred to herein set forth the entire agreement between the Parties and fully supersede any and all agreements or understandings, written or oral, between the parties hereto pertaining to the subject matter hereof. This Agreement shall be interpreted in accordance with the plain meaning of its terms and not 

strictly for or against any of the Parties hereto. Headings are used herein for convenience only and shall have no force or effect in the interpretation or construction of this Agreement. This Agreement may be executed in counter-parts.

19.Enforcement. The Parties understand and agree that if any action brought to enforce this Agreement shall be filed in a court of competent jurisdiction in Connecticut.

20.Opportunity for Review. Mr. Flynn represents that he:

		
	•
	HAS REVIEWED ALL ASPECTS OF THIS AGREEMENT,

		
	•
	HAS CAREFULLY READ AND FULLY UNDERSTANDS ALL THE PROVISIONS OF THIS AGREEMENT,

		
	•
	UNDERSTANDS THAT, IN AGREEING TO THIS DOCUMENT, ANY AND ALL CLAIMS THAT MR. FLYNN MAY HAVE AGAINST THE RELEASED PARTIES ARE RELEASED,

		
	•
	UNDERSTANDS THAT HE IS SPECIFICALLY RELEASING ALL CLAIMS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, 29 U.S.C. § 621 ET SEQ., THE OLDER WORKERS BENEFIT PROTECTION ACT, PUB. L. 101-433 ("OWBPA"), AND ANY FEDERAL, STATE OR LOCAL FAIR EMPLOYMENT ACTS ARISING UP TO THE DATE OF MR. FLYNN'S EXECUTION OF THIS AGREEMENT,

		
	•
	VOLUNTARILY AGREES TO ALL THE TERMS SET FORTH IN TIDS AGREEMENT AND FREELY AND KNOWINGLY AND WILLINGLY INTENDS TO BE LEGALLY BOUND BY THE SAME,

		
	•
	UNDERSTANDS THAT VIRTUS ADVISES HIM TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS AGREEMENT,

		
	•
	AGREES THAT HE HAS BEEN GIVEN A REASONABLE AMOUNT OF TIME TO CONSIDER THE TERMS OF THIS AGREEMENT AND DISCUSS THEM WITH AN ATTORNEY.

EXECUTED on the date set forth below.

	
							
	/s/ Mark S. Flynn
	 
	1/25/2019
	 
	/s/ Mardelle W. Pena
	 
	1/25/2019

	 
	 
	 
	 
	 
	 
	 

	Mark S. Flynn
	 
	Date
	 
	Mardelle W. Pena
	 
	Date

	 
	 
	 
	 
	Virtus Investment Partners, Inc.

Exhibit A

SUPPLEMENTAL CONFIDENTIAL EXECUTIVE SEPARATION AGREEMENT AND GENERAL RELEASE OF ALL CLAIMS

This Supplemental Confidential Executive Separation Agreement and General Release of All Claims ("Supplemental Agreement") is made and entered into by and between Mark S. Flynn (hereinafter referred to as "Mr. Flynn") and Virtus Investment Partners, Inc. ("Virtus") (collectively, the "Parties").

WHEREAS, Mr. Flynn and Virtus entered into a Confidential Executive Separation Agreement and General Release of All Claims, which Mr. Flynn signed on January 25, 2019 ("Agreement");

WHEREAS, Mr. Flynn's role as Executive Vice President, General Counsel and Corporate Secretary will end effective on the earlier of May 13, 2019 or the date on which either a replacement for Mr. Flynn is named, or Virtus in its sole discretion modifies the role, in which case Mr. Flynn will continue in a transitional capacity as outlined herein for any period of time remaining through and until May 13, 2019;

WHEREAS, Virtus wishes to offer Mr. Flynn severance in exchange for his promises and covenants herein and in accordance with the Amended and Restated Executive Severance Allowance Plan of Virtus Investment Partners, Inc. ("Severance Plan"); and

WHEREAS, the Parties wish to resolve fully and finally all matters pertaining to their employment relationship, and neither Party admits wrongdoing;

NOW THEREFORE, in consideration of the mutual covenants and promises herein contained and other good and valuable consideration;

IT IS HEREBY AGREED by and between the Parties as follows:

1.Definitions:

		
	a.
	The "Effective Date" of this Supplemental Agreement shall be the date on which it is executed by Mr. Flynn.

		
	b.
	"Released Parties" shall mean Virtus and any and all associated and member firms, all their respective past, present and future  parent companies, subsidiaries, affiliates, divisions, related entities, joint venturers, subcontractors, agents, attorneys, insurers, subrogees, co­ insurers and reinsurers, and all their respective, past, present and future officers, directors, employees, members, partners, principals, shareholders and owners, and all their respective heirs, executors, administrators, personal representatives, predecessors, successors, transferees and assigns.

		
	c.
	"Separation Date" shall be May 13, 2019. Mr. Flynn shall not sign this Supplemental Agreement before close of business on May 13, 2019.

2.Payments and Benefits.   Virtus agrees to provide, in exchange for Mr. Flynn's promises and agreements stated herein, benefits in accordance with Article 3 of the Severance Plan, exclusive of sub-paragraph 3.02(d). The parties agree that Mr. Flynn's separation from employment will be treated as other 

than for cause as defined in the Severance Plan. In addition, Mr. Flynn's prior equity awards will be treated pursuant to the Virtus Investment Partners, Inc. Amended and Restated 2016 Omnibus Incentive and Equity Plan ("Equity Plan"), as if Mr. Flynn were retiring as of the Separation Date, and all elements of the Equity Plan are otherwise applicable.

All payments and benefits shall be treated by Virtus in accordance with applicable tax laws.

3.Conditions for Receipt of Payments and Benefits. To receive the payments and benefits described in Paragraph 2 above, Mr. Flynn must: (a) refrain from directly or indirectly interfering in any manner with the operations, management  or administration of any Virtus office, agent or employee and refraining from making any maliciously  disparaging or defamatory remarks concerning Virtus, its representatives, agents and employees; (b) refrain from encouraging, soliciting or suggesting to any and all employees, agents, representatives and/or clients of Virtus that they terminate or alter their current relationship with Virtus; and (c) comply with a continuing obligation to maintain the confidentiality of proprietary information following the Separation Date.  If Mr. Flynn should violate any of these conditions, he will be in violation of this Supplemental Agreement and will be required to return any payments or benefits already provided to him, except for payments representing wages earned for work already performed, and to forfeit his right to any further payments or benefits.

4.No Other Agreements or Amounts Owed.

		
	a.
	Mr. Flynn agrees that the payments and benefits referenced in Paragraph 2 above constitute all of the consideration to be provided to him under this Supplemental Agreement or under any other plan, agreement or program. No other claimed payments, damages, costs, or attorneys' fees in connection with the matters encompassed by this Supplemental Agreement are due or will be sought by him.

		
	b.
	Mr. Flynn agrees that he would not receive the consideration that is specified in Paragraph 2 above but for his execution of this Supplemental Agreement and the fulfillment of the promises contained herein.

		
	c.
	Mr. Flynn agrees that, other than that which shall be paid pursuant to the express terms of this Supplemental Agreement, he has received all other wages, overtime, bonuses, severance, vacation pay, commissions, benefits, or any other form of compensation, payments, and/or other amounts due to him as an employee of Virtus.

		
	d.
	Mr. Flynn further agrees that the terms of the applicable equity grant agreements, as governed by the Equity Plan, shall control the disposition of any equity award he has received.

5.Tax Consequences. Mr. Flynn acknowledges and agrees that the Released Parties have not made any representations regarding the tax consequences of any monies received pursuant to this Supplemental Agreement. Mr. Flynn understands and expressly agrees he is solely responsible for any and all tax payments other than taxes withheld from amounts paid pursuant to Paragraph 2 above as reflected in applicable tax forms.

6.No Pending Actions. Mr. Flynn affirms that neither he nor anyone on his behalf has filed any complaints, charges, claims, or actions in any state, federal or local agency or court against any Released Party. Mr. Flynn further agrees that he will not file any claims against any Released Party in any judicial 

or arbitral forum. This Supplemental Agreement does not prevent Mr. Flynn from filing a charge with, or participating in a claim prosecuted    by, the    Equal    Employment    Opportunity    Commission, or any other administrative agency charged with investigating and/or prosecuting complaints under any applicable federal, state or municipal law or regulation. However, this Supplemental Agreement does waive Mr. Flynn's right to recover damages under those laws or regulations. Mr. Flynn further agrees that if any court were to assume jurisdiction of any complaint, charge, claim or action against any of the Released Parties on his behalf (other than an action in which he is an unnamed class representative), he will request that court to withdraw from or dismiss with prejudice the matter as it relates to him.

Nothing in this Agreement, including but not limited to the release of claims nor the confidentiality clause prohibits Mr. Flynn from: (1) reporting possible violations of federal law or regulations, including any possible securities laws violations, to any governmental agency or entity, including but not limited to the U.S. Department of Justice, the U.S. Securities and Exchange Commission, the U.S. Congress, or any agency Inspector General; (2) making any other disclosures that are protected under the whistleblower provisions of federal law or regulations; or (3) otherwise fully participating in any federal whistleblower programs, including but not limited to any such programs managed by the U.S. Securities and Exchange Commission and/or the Occupational Safety and Health Administration. Moreover, nothing in this Agreement prohibits or prevents Mr. Flynn from receiving individual monetary awards or other individual relief by virtue of participating in such federal whistleblower programs.

7.Non-Cooperation. To the fullest extent permitted by law and except as otherwise set forth herein, Mr. Flynn agrees not to cooperate voluntarily with, aid or assist in any way, any other potential or actual plaintiffs that have, or may have in the future, any lawsuits against any of the Released Parties. Mr. Flynn may cooperate only if compelled to testify under oath pursuant to a lawfully issued subpoena or other similar legal process, notice of which Mr. Flynn shall give within ten (10) days of its receipt to Virtus. Mr. Flynn agrees that such cooperation will be in a form no more extensive than required by law.

8.Confidentiality.

		
	a.
	The Parties understand and agree that this Supplemental Agreement is strictly confidential. Except as specified in this Paragraph 8, the Parties agree not to disclose: i) the existence of this Supplemental Agreement and any facts concerning its negotiation, execution or implementation, ii) the terms of this Supplemental Agreement, and iii) the fact that Mr. Flynn received, and will receive, payments and benefits from Virtus, including the amount of any payment and nature of any benefit.

		
	b.
	Mr. Flynn is permitted to make such disclosures or show a copy of the Supplemental Agreement: i) as required by law; ii) in response to a governmental or regulatory inquiry; iii) to an attorney or accountant for purposes of obtaining legal or tax advice; iv) to a financial advisor for the purpose of obtaining financial advice; or v) to his spouse.  To the extent Mr. Flynn makes any disclosures permitted pursuant to items i) or ii) of this Paragraph 8(b), such disclosures shall be made only after giving written notice to Virtus sufficient for Released Parties to have reasonable opportunity to oppose such disclosure. If Mr. Flynn has any question as to whether any disclosure might breach this Paragraph 8, he must obtain written permission before making any such disclosure.

		
	c.
	Virtus and its affiliates may make disclosures as required by law. Virtus and its affiliates may make disclosures to their respective officers, attorneys, auditors, financial advisors, and employees who, as reasonably determined by Virtus and its affiliates, as applicable, 

need to know such information, provided that any such disclosure shall be accompanied by an instruction to the person receiving such information to keep the information confidential.

		
	d.
	It shall not be considered a violation of this Supplemental Agreement for Mr. Flynn to respond to any inquiries by stating only that he and Virtus mutually agreed that he would transition out of his position.

		
	e.
	The Parties understand and agree that because this Paragraph 8 is such a material consideration in the Released Parties' agreement to enter into this Supplemental Agreement, any violation of any part of this provision shall constitute a material breach of this Supplemental Agreement.

9.Release of Claims. Mr. Flynn hereby irrevocably and unconditionally releases, waives and forever discharges the Released Parties from any and all claims, demands or causes of action of every nature or description, based upon or relating to actions, omissions or events occurring before or on the Effective Date of this Supplemental Agreement, whether known or unknown, including, but not limited to, any claims relating to Mr. Flynn's employment and separation of employment with Virtus.  This Release of Claims shall include, but is not limited to, (i) any claims arising under the United States Constitution or any state Constitution; (ii) any claims for wages, compensation or benefits of any kind or nature; (iii) any claims of employment discrimination or related claims,  including but not limited to claims brought under: Title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.), as amended; The Civil Rights Act of 1991, 42 U.S.C. § 1981; The Age Discrimination in Employment Act of 1967 (29 U.S.C. § 621 et seq.); The Older Workers Benefits Protection Act of 1990 (OWBPA); The Americans With Disabilities Act  of 1991, 42 U.S.C. § 12101 et seq.; The Rehabilitation Act of 1973, 29 U.S.C. §§ 701, 706, 791, 793-794; The Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq.; Fair Labor Standards Act of 1938 (29 U.S.C. § 201 et seq.); Equal Pay Act of 1963 (29 U.S.C. § 206(d)); The Employee Retirement Income Security Act of 1974 (except for any vested benefits under any tax qualified benefit plan); The Consolidated Omnibus Budget Reconciliation Act; The Worker Adjustment and Retraining Notification Act; The  Fair Credit Reporting Act; and Connecticut anti-discrimination and employment laws; all as amended; (iv) any claims under any other federal, state, or local statute, executive order, constitutional provision, regulation or ordinance; (v) any claims  based on contract, express  or implied; (vi) any claims based on tort (including, without limitation, negligence); or (vii) any claims that relate directly or indirectly to, or that are in any way connected with, any of the acts, omissions, events, circumstances, or matters of any kind or nature that Mr. Flynn raised or could have raised during his employment or thereafter.

If any claim is not subject to release, Mr. Flynn waives, to the extent permitted by law, any right or ability to be a class or collective action representative or otherwise to participate in any putative or certified class, collective or multi-party action or proceeding based on such a claim in which any Released Party is a party.

10.Governing Law. This Supplemental Agreement shall be governed by the laws of the State of Connecticut (without giving effect to its conflicts of laws principles). Any modification to this Supplemental Agreement must be made in writing and signed by both Virtus and Mr. Flynn.

11.No Inducements or Reliance. Mr. Flynn represents that no promise, inducement or other agreement not expressly contained herein has been made to induce him to enter into this Supplemental Agreement. He further acknowledges that, in executing this Supplemental Agreement, he has not relied on any representation or statement made by any Released Party with regard to the subject matter, basis, or 

effect of this Supplemental Agreement or otherwise other than those specifically stated in this written Supplemental Agreement.

12.Period for Review and Execution by Mr. Flynn. Mr. Flynn acknowledges and confirms that he has at least twenty-one calendar (21) days to consider this Supplemental Agreement, starting on the date on which he received it. Virtus advises Mr. Flynn to seek legal counsel regarding this Agreement before signing it.

13.Period for Revocation by Mr. Flynn.  After executing this Supplemental Agreement, Mr.  Flynn may choose to revoke it within seven (7) days ("the Revocation Period") after his signature hereon.  If Mr. Flynn does choose to revoke, he must do so in a writing delivered (by fax, mail or email) to Mardelle Pena, Executive Vice President, Human Resources at Virtus, and received no later than the    close of business on the seventh (7th) day following the date on which Mr. Flynn executes this Supplemental Agreement. If the last day of the Revocation Period falls on a Saturday, Sunday or holiday, the last day of the Revocation Period will be deemed to be the next business day. In the event that Mr. Flynn does not accept this Supplemental Agreement or revokes acceptance of this Supplemental Agreement during the Revocation Period, this Supplemental Agreement, including, but not limited to, the obligation of the Released Parties to provide the payments and benefits set forth in Paragraph 2 of this Supplemental Agreement, shall automatically be null and void. To the extent any payment set forth in Paragraph 2 of this Supplemental Agreement is paid prior to the expiration of the Revocation Period and Mr. Flynn timely revokes this Supplemental Agreement, Mr. Flynn will immediately return all such payment to Virtus, unless such payment represents wages earned for work already performed in his current or transitional role. If such return of payment or any part thereof is collected through judicial proceedings or if the payment is placed with a third party for collection after Mr. Flynn's failure to return such payment, Mr. Flynn agrees to pay, in addition to the principal amount, reasonable attorneys' fees and costs incurred by Virtus.

14.Successors. This Supplemental Agreement shall be binding on the Parties and on their heirs, administrators, representatives, executors, successors, and assigns and shall inure to the benefit of said Parties and each of them and to their heirs, administrators, representatives, executors, successors, and assigns.

15.No Assignment/Transfer. Mr. Flynn expressly warrants that no rights, causes of actions, or claims released in this Supplemental Agreement have been assigned, transferred or otherwise disposed of to any person or entity, nor has he made any attempt to do so. Mr. Flynn agrees to hold harmless and indemnify the Released Parties should any other person or entity assert any rights, causes of actions, or claims released m this Supplemental Agreement.

16.Severability. Mr. Flynn agrees not to challenge the Release of Claims in Paragraph 9 of this Supplemental Agreement as illegal, invalid or unenforceable. Should any provision of this Supplemental Agreement be declared or be determined by any court of competent jurisdiction to be illegal, invalid, or unenforceable, all of the other provisions shall remain valid and enforceable, unless the provision found to be unenforceable is of such material effect that this Supplemental Agreement cannot be performed in accordance with the intent of the Parties in the absence thereof.

17.Entire Agreement/Construction. Except as otherwise expressly set forth herein, this Supplemental Agreement, along with the Agreement dated ________, 2019 referenced above and all applicable plan documents, including but not limited to the Severance Plan and the Equity Plan as referred to herein, sets forth the entire agreement between the Parties and fully supersedes any and all agreements or understandings, written or oral, between the parties hereto pertaining to the subject matter hereof. This 

Supplemental Agreement shall be interpreted in accordance with the plain meaning of its terms and not strictly for or against any of the Parties hereto. Headings are used herein for convenience only and shall have no force or effect in the interpretation or construction of this Supplemental Agreement. This Supplemental Agreement may be executed in counter-parts.

18.Enforcement. The Parties understand and agree that if any action brought to enforce this Supplemental Agreement shall be filed in a court of competent jurisdiction in Connecticut.

19.Opportunity for Review. Mr. Flynn represents that he:

		
	•
	HAS REVIEWED ALL ASPECTS OF THIS SUPPLEMENTAL AGREEMENT,

		
	•
	HAS CAREFULLY READ AND FULLY UNDERSTANDS ALL THE PROVISIONS OF THIS SUPPLEMENTAL AGREEMENT,

		
	•
	UNDERSTANDS THAT, IN AGREEING TO THIS DOCUMENT, ANY AND ALL CLAIMS THAT MR. FLYNN MAY HAVE AGAINST THE RELEASED PARTIES ARE RELEASED,

		
	•
	UNDERSTANDS THAT HE IS SPECIFICALLY RELEASING ALL CLAIMS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, 29 U.S.C. § 621 ET SEQ., THE OLDER WORKERS BENEFIT PROTECTION ACT, PUB. L.101-433 ("OWBPA"), AND ANY FEDERAL, STATE OR LOCAL FAIR EMPLOYMENT ACTS ARISING UP TO THE DATE OF MR.  FLYNN'S EXECUTION OF THIS AGREEMENT,

		
	•
	VOLUNTARILY AGREES TO ALL THE TERMS SET FORTH IN THIS SUPPLEMENTAL AGREEMENT AND FREELY AND KNOWINGLY AND WILLINGLY INTENDS TO BE LEGALLY BOUND BY THE SAME,

		
	•
	UNDERSTANDS THAT VIRTUS ADVISES HIM TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS SUPPLEMENTAL AGREEMENT,

		
	•
	AGREES THAT HE HAS BEEN GIVEN A REASONABLE AMOUNT OF TIME TO CONSIDER THE TERMS OF THIS SUPPLEMENTAL AGREEMENT AND DISCUSS THEM WITH AN ATTORNEY.

EXECUTED on the date set forth below.

	
			
	 
	 
	 

	Mark S. Flynn
	 
	Date

	 
	 
	 

	 
	 
	 

	 
	 
	 

	Virtus Investment Partners, Inc.
	 
	Date

	 
	 
	 

	BY:
	 
	 

ADDENDUM TO CONFIDENTIAL EXECUTIVE SEPARATION AGREEMENT AND GENERAL RELEASE OF ALL CLAIMS

Wherefore, Virtus Investment Partners, Inc. and Mark S. Flynn ("the Parties") signed the Confidential Executive Separation Agreement and General Release of All Claims ("the Agreement") on or about January 25, 2019;
Wherefore, Paragraph 11 of the Agreement provides for any modification to the Agreement to be made in writing signed by both Parties;
Wherefore, the Parties wish to the modify the Agreement as stated below; and
Wherefore, in all other respects, the Agreement shall remain in full force and effect:
		
	1.
	In the first Whereas paragraph on page 1 of the Agreement, the date of May 13, 2019 shall be replaced by the date July 1, 2019, such that the provision shall read, in pertinent part: " ... Mr. Flynn will continue in a transitional capacity as outlined herein for any period of time remaining through and until July 1, 2019" (emphasis added to highlight new date).

		
	2.
	The Transition Period and Separation Date shall thus extend to July 1, 2019.

		
	3.
	Each of the Parties has the right to terminate Mr. Flynn's transitional capacity role, and thus the Transition Period, at any time between now and July 1, 2019 on two weeks' written notice, for any reason or no reason without prejudice to the payments and benefits as outlined in Paragraph 2 of the Agreement.

		
	4.
	In Paragraph 2(b) of the Agreement, the statement that "The Supplemental Agreement shall not be signed prior to close of business on May 13, 2019" shall be modified to "The Supplemental Agreement shall not be signed prior to close of business on July 1, 2019 or such earlier date on which the Transition Period may end."

THIS MODIFICATION IS EXECUTED VOLUNTARILY AND WITHOUT COERCION ON THE DATE SET FORTH BELOW:

	
							
	/s/ Mark S. Flynn
	 
	5/13/2019
	 
	/s/ Mardelle W. Pena
	 
	5/13/2019

	 
	 
	 
	 
	 
	 
	 

	Mark S. Flynn
	 
	Date
	 
	Mardelle W. Pena
	 
	Date

	 
	 
	 
	 
	Virtus Investment Partners, Inc.Exhibit 10.1

 

SECURITIES AMENDMENT
AGREEMENT

 

THIS SECURITIES AMENDMENT
AGREEMENT (this “Agreement”), dated as February 21, 2020, is entered into by and among EMI Holding, Inc. (formerly
known as “Emmaus Life Sciences, Inc.”), a Delaware corporation (the “Company”), Emmaus Life Sciences,
Inc.,(formerly known as “MYnd Analytics, Inc.”), a Delaware corporation and the parent company of EMI (“Emmaus”)
and the parties identified as “Holders” on the signature page hereto (the “Holders”).

 

WHEREAS, pursuant to
the Securities Purchase Agreement, dated as of September 13, 2018, as amended on September 28, 2018 and as of March 5, 2019 (as
so amended, the “Purchase Agreement”), between the Company and the purchasers thereto, the Company issued to
the purchasers (and the purchasers’ assigns), in the aggregate, (i) $12,200,000 in principal amount of Amended and Restated
10% Senior Secured Debentures due October 21, 2020 (the “Debentures”) and (ii) Amended and Restated Common Stock
Purchase Warrants to purchase up to 1,228,100 shares of Common Stock (the “Warrants” and together with the Purchase
Agreement and Debentures, the “Transaction Documents”); and

 

WHEREAS, in a letter
from the Company to the Holders dated August 1, 2019 the Company notified the Holders that the Conversion Price was reduced to
$9.52 and the Exercise Price was reduced to $5.87; and

 

WHEREAS, pursuant to
the terms of the Debentures, the Company is required to pay to the Holders the Monthly Redemption Amount (as defined in the Debentures)
beginning on November 1, 2019; and

 

WHEREAS, as of the
date hereof, the Holders have been paid the Monthly Redemption Amount for November 2019, December 2019 and January 2020; and

 

HEREAS, the Company
desires that the Holders waive the requirement to pay the Monthly Redemption Amount for next six Monthly Redemption Dates (as defined
in the Debentures) and extend the Maturity Date of the Debentures and the Holders are willing to do so, all on the terms and provisions
of this Agreement;

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Holders hereby
agree as follows:

 

1. Definitions.
Terms used as defined terms herein and not otherwise defined shall have the meanings provided therefor in the Purchase Agreement
or the other Transaction Documents. In addition, subject to the terms and conditions herein, the Purchase Agreement as it pertains
to the Holders is amended to include the following definitions:

 

2. Amendment
of Debentures; Waivers. Subject to the terms and conditions herein, the Holders’ Debentures are amended to, among other
things, provide for the conversion thereof at the option of each Holder into shares of Common Stock at a Conversion Price of $3.00
(subject to adjustment therein) and to extend the Maturity Date to April 21, 2021 and to provide for antidilution protection for
certain equity issuances in Section 5(b) of the Debentures until such time that the Debentures are paid in full as provided therein
and restated in their entirety as set forth in Exhibit A attached hereto (the “A&R Debentures”).
The Company shall promptly deliver to the Holders their respective A&R Debentures, in each case in exchange for the surrender
to the Company and cancellation of the Holders’ original Debentures. In exchange therefor, the Holders hereby irrevocably
waive (1) the Company’s requirements to pay the Monthly Redemption on each of the Monthly Redemption Dates until August 1,
2020 and (2) any adjustments to the Conversion Price or the Exercise Price under Section 5(b) of the A&R Debentures and Section
3(b) of the A&R Warrants with respect, and only with respect, to the Company’s issuance of the “Commitment Shares”
described in Schedule 4.8 of the Disclosure Schedules furnished by the Company to the Holders in connection with this Agreement.

 

     

     

    

 

3. Amendment
of Warrants. Subject to the terms and conditions herein, the Holders’ Warrants are amended to, among other things, reduce
the Exercise Price thereof to $3.00 (subject to adjustment therein) and to provide for antidilution protection for certain equity
issuances in Section 3(b) of the Warrants and restated in their entirety as set forth in Exhibit B attached hereto (the
“A&R Warrants”). The Company shall promptly deliver to the Holders their respective A&R Warrants, in
each case in exchange for the surrender to the Company and cancellation of the Holders’ original Warrants.

 

4. Representations
and Warranties. The Company hereby makes to the Holders as of the date hereof the following representations and warranties:

 

(a) Organization
and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the
requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither
the Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of
incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified
to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of
the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified
or in good standing, as the case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on
the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations,
assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii)
a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under
any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been
instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority
or qualification.

 

(b) Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement
by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company, its board of directors or its stockholders in connection
therewith. This Agreement has been duly executed by the Company and, when delivered in accordance with the terms hereof will constitute
the valid and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited
by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by
applicable law.

 

    2

     

    

 

(c) No
Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of
the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Company’s or
any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict
with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the
creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination,
amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any material agreement, credit facility,
debt or other material instrument (evidencing a Company or Subsidiary debt or otherwise) or other material understanding to which
the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected,
or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction
of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities
laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case
of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(d) Bring
Down of Representations and Warranties. The Company expressly reaffirms that each of the Company’s representations and
warranties set forth in the Purchase Agreement (as supplemented or qualified by the disclosures in any disclosure schedule thereto),
continues to be true, accurate and complete in all material respects as of the date hereof and the Company hereby remakes and incorporates
herein by reference each such representation and warranty as though made on the date of this Agreement (unless as of a specific
date therein), except as set forth in the Company’s updated Disclosure Schedules accompanying this Agreement.

 

5. Representations
and Warranties of the Holder. Each Holder hereby represents and warrants as of the date hereof to the Company as follows:

 

(a) Organization;
Authority. The Holder is either an individual or an entity duly incorporated or formed, validly existing and in good standing
under the laws of the jurisdiction of its incorporated or formed with full right, corporate, partnership, limited liability company
or similar power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to
carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and performance by the Holder
of the transactions contemplated herein have been duly authorized by all necessary corporate, partnership, limited liability company
or similar action, as applicable, on the part of the Holder. This Agreement has been duly executed by the Holder, and when delivered
by the Holder in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Holder, enforceable
against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

    3

     

    

 

(b) Bring
Down of Representations and Warranties. Each Holder expressly reaffirms that each of the Holder’s representations and
warranties set forth in the Purchase Agreement continues to be true, accurate and complete in all material respects as of the date
hereof and the Holder hereby remakes and incorporates herein by reference each such representation and warranty as though made
on the date of this Agreement (unless as of a specific date therein).

 

The Company acknowledges and agrees that
the representations contained in this Section 5 shall not modify, amend or affect the Holder’s right to rely on the Company’s
representations and warranties contained in this Agreement or any other document or instrument executed and/or delivered in connection
with this Agreement or the consummation of the transaction contemplated hereby.

 

6. Company
Acknowledgements. The Company hereby acknowledges and agrees that (a) the A&R Debentures and the A&R Warrants delivered
to the Holders pursuant to this Agreement are issued to replace the Debentures and the Warrants, (b) the security interests granted
to the Holders pursuant to the Security Agreement by and among the Company and the Holders, dated as of September 7, 2018, applies
to and covers the obligations of the Company to the Holders evidenced by the A&R Debentures and (b) all references to Debentures
and Warrants in the Transaction Documents shall include the A&R Debentures and A&R Warrants.

 

7. Miscellaneous.

 

(a) This
Agreement may be executed in two or more counterparts and by facsimile signature or otherwise, and each of such counterparts shall
be deemed an original and all of such counterparts together shall constitute one and the same agreement. Each party shall pay the
fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party
incident to the negotiation, preparation, execution, delivery and performance of this Agreement.

 

    4

     

    

 

(b) If
any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or
unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

(c) Except
as expressly set forth herein, all of the terms and conditions of the Transaction Documents shall continue in full force and effect
after the execution of this Agreement and shall not be in any way changed, modified or superseded by the terms set forth herein.

 

(d) This
Agreement shall be governed by and interpreted in accordance with laws of the State of New York, excluding its choice of law rules.
The parties hereto hereby waive the right to a jury trial in any litigation resulting from or related to this Agreement. The parties
hereto consent to exclusive jurisdiction and venue in the federal courts sitting in the southern district of New York, unless no
federal subject matter jurisdiction exists, in which case the parties hereto consent to exclusive jurisdiction and venue in the
New York state courts in the borough of Manhattan, New York. Each party waives all defenses of lack of personal jurisdiction and
forum non conveniens. Process may be served on any party hereto in the manner authorized by applicable law or court rule.

 

***********************

 

    5

     

    

 

IN WITNESS WHEREOF, this Securities Amendment
Agreement is executed as of the date first set forth above.

 

	EMMAUS LIFE SCIENCES, INC.	 
	 	 
	By:	 	 
	 	Yutaka Niihara, M.D., M.P.H.	 
	 	Chairman and Chief Executive Officer	 

 

[Signature page of Holder to follow]

 

    6

     

    

 

SIGNATURE PAGE OF HOLDER TO

SECURITIES AMENDMENT AGREEMENT

BY AND AMONG EMMAUS LIFE SCIENCES, INC.
AND

THE HOLDERS THEREUNDER

 

		Name of Holder:	 	 

 

		By:	 	 

 

		Name:	 	 

 

		Title:	 	 

 

[Signature Pages Continue]

 

     

     

    

 

EXHIBIT A

 

NEITHER THIS SECURITY NOR THE SECURITIES
INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

Original Issue Date: October 22, 2018

Conversion Price (subject to adjustment
herein): $3.00

 

$_______________

 

second
Amended and restated 

10%
SENIOR SECURED CONVERTIBLE DEBENTURE

DUE
APRIL 21, 2021

 

THIS SECOND AMENDED
AND RESTATED 10% SENIOR SECURED CONVERTIBLE DEBENTURE is one of a series of duly authorized and validly issued 10% Senior Secured
Debentures of EMI Holding, Inc. (formerly known as “Emmaus Life Sciences, Inc.”), a Delaware corporation (the “Company”),
having its principal place of business at 21250 Hawthorne Boulevard, Suite 800, Torrance, California 90503, designated as
its Second Amended and Restated 10% Senior Secured Convertible Debenture due April 21, 2021 (this debenture, the “Debenture”
and, collectively with the other debentures of such series, the “Debentures”).

 

FOR VALUE RECEIVED,
the Company promises to pay to ________________________ or its registered assigns (the “Holder”), or shall have
paid pursuant to the terms hereunder, the principal sum of $_______________ on October 21, 2020 (the “Maturity Date”)
or such earlier date as this Debenture is required or permitted to be repaid as provided hereunder, and to pay interest to the
Holder on the aggregate unconverted and then outstanding principal amount of this Debenture in accordance with the provisions hereof.
This Debenture is subject to the following additional provisions:

 

Section 1. Definitions.
For the purposes hereof, in addition to the terms defined elsewhere in this Debenture, (a) capitalized terms not otherwise defined
herein shall have the meanings set forth in the Purchase Agreement and (b) the following terms shall have the following meanings:

 

“Alternate
Consideration” shall have the meaning set forth in Section 5(e).

 

    A-1

     

    

 

“Bankruptcy
Event” means any of the following events: (a) the Company or any Significant Subsidiary (as such term is defined in Rule
1-02(w) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment
of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Company or
any Significant Subsidiary thereof, (b) there is commenced against the Company or any Significant Subsidiary thereof any such case
or proceeding that is not dismissed within 60 days after commencement, (c) the Company or any Significant Subsidiary thereof is
adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered, (d) the
Company or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial part
of its property that is not discharged or stayed within 60 calendar days after such appointment, (e) the Company or any Significant
Subsidiary thereof makes a general assignment for the benefit of creditors, (f) the Company or any Significant Subsidiary thereof
calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts, (g) the Company
or any Significant Subsidiary thereof admits in writing that it is generally unable to pay its debts as they become due, (h) the
Company or any Significant Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval of or
acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.

 

“Base
Conversion Price” shall have the meaning set forth in Section 5(b).

 

“Beneficial
Ownership Limitation” shall have the meaning set forth in Section 4(d).

 

“Business
Day” means any day, except any Saturday, Sunday, day which is a federal legal holiday in the United States or day on
which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof
by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of
control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess
of 33% of the voting securities of the Company (other than by means of exercise of the Warrants issued together with the Debentures),
(b) the Company merges into or consolidates with any other Person, or any Person merges into or consolidates with the Company and,
after giving effect to such transaction, the stockholders of the Company immediately prior to such transaction own less than 66%
of the aggregate voting power of the Company or the successor entity of such transaction, (c) the Company sells or transfers all
or substantially all of its assets to another Person and the stockholders of the Company immediately prior to such transaction
own less than 66% of the aggregate voting power of the acquiring entity immediately after the transaction, (d) a replacement at
one time or within a three-year period of more than one-half of the members of the Board of Directors which is not approved by
a majority of those individuals who are members of the Board of Directors on the Original Issue Date (or by those individuals who
are serving as members of the Board of Directors on any date whose nomination to the Board of Directors was approved by a majority
of the members of the Board of Directors who are members on the date hereof), or (e) the execution by the Company of an agreement
to which the Company is a party or by which it is bound, providing for any of the events set forth in clauses (a) through (d) above.

 

    A-2

     

    

 

“Conversion
Date” shall have the meaning set forth in Section 4(a).

 

“Conversion
Price” shall have the meaning set forth in Section 4(b).

 

“Conversion
Schedule” means the Conversion Schedule in the form of Schedule 1 attached hereto.

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of this Debenture in accordance with
the terms hereof.

 

“Debenture
Register” shall have the meaning set forth in Section 2(b).

 

“Effective
Date” means the earliest of the date that (a) an initial registration statement registering all of the Conversion Shares
for resale has been declared effective by the Commission, (b) all of the Conversion Shares have been sold pursuant to Rule 144
or may be sold pursuant to Rule 144 without the requirement for the Company to be in compliance with the current public information
required under Rule 144 and without volume or manner-of-sale restrictions or (c) following the one year anniversary of the Closing
Date provided that a holder of the Conversion Shares is not an Affiliate of the Company, all of the Underlying Shares may be sold
pursuant to an exemption from registration under Section 4(1) of the Securities Act without volume or manner-of-sale restrictions
and Company Counsel has delivered to such holders a standing written unqualified opinion that resales may then be made by such
holders of the Conversion Shares pursuant to such exemption which opinion shall be in form and substance reasonably acceptable
to such holders.

 

“Event
of Default” shall have the meaning set forth in Section 8(a).

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or Common Stock Equivalents to employees, officers, directors
or consultants of the Company or any Subsidiary or parent company of the Company pursuant to any stock or option plan duly adopted
for such purpose by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee
of non-employee directors established for such purpose, (b) securities upon the exercise or exchange of or exchangeable for or
convertible into shares of Common Stock issued and outstanding on the date hereof, provided that such securities have not been
amended since date hereof to increase the number of such securities or to decrease the exercise price, exchange price or conversion
price of such securities and (c) securities issued pursuant to acquisitions or strategic transactions approved by a majority of
the disinterested directors of the Company, provided that any such issuance shall only be a Person (or to the equity holders of
a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic
with the business of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but
shall not, for the purposes of this clause (c), include a transaction in which the Company is issuing securities primarily for
the purpose of raising capital or to an entity whose primary business is investing in securities.

 

    A-3

     

    

 

“Fundamental
Transaction” means each of (i) the Company, directly or indirectly, in one or more related transactions effects any merger
or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease,
license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of
related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or
another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for
other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the
Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged
for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates
a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares
of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated
or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination).

 

“Interest
Payment Date” shall have the meaning set forth in Section 2(a).

 

“Late
Fees” shall have the meaning set forth in Section 2(c).

 

“Mandatory
Default Amount” means the sum (a) 100% of the outstanding principal amount of this Debenture, plus 100% of accrued and
unpaid interest hereon, and (b) all other amounts, costs, expenses and due in respect of this Debenture.

 

“Monthly
Redemption” shall have the meaning set forth in Section 6(b) hereof.

 

“Monthly
Redemption Amount” means, as to a Monthly Redemption, $_______, plus accrued but unpaid interest and any other amounts
then owing to the Holder in respect of this Debenture.

 

“Monthly
Redemption Date” means the 1st of each month, commencing on November 1, 2019 and terminating upon the full
redemption or repayment of this Debenture.

 

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“New
York Courts” shall have the meaning set forth in Section 9(d).

 

“Notice
of Conversion” shall have the meaning set forth in Section 4(a).

 

“Optional
Redemption” shall have the meaning set forth in Section 6(a).

 

“Optional
Redemption Amount” means the sum of (a) 100% of the then outstanding principal amount of the Debenture, (b) accrued but
unpaid interest and (c) all other amounts due in respect of the Debenture.

 

“Optional
Redemption Date” shall have the meaning set forth in Section 6(a).

 

“Optional
Redemption Notice” shall have the meaning set forth in Section 6(a).

 

“Optional
Redemption Notice Date” shall have the meaning set forth in Section 6(a).

 

“Optional
Redemption Period” shall have the meaning set forth in Section 6(a).

 

“Original
Issue Date” means the date of the first issuance of the Debentures, regardless of any transfers of any Debenture and
regardless of the number of instruments which may be issued to evidence such Debentures.

 

“Permitted
Indebtedness” means (a) the indebtedness evidenced by the Debentures, (b) the Indebtedness existing on the date hereof
and set forth on Schedule 3.1(bb) attached to the Purchase Agreement and any amendment, substitute or replacement of such
Indebtedness, provided that any amendment, substitute or replacement of such Indebtedness that materially changes the terms of
such indebtedness is expressly subordinate to the Debentures pursuant to a written subordination agreement with the Purchasers
that is reasonably acceptable to the Holders of a majority in principal amount of Debentures outstanding, (c) lease obligations
and purchase money indebtedness as set forth on Schedule 3.1(bb), in the aggregate, incurred in connection with the acquisition
of capital assets and lease obligations with respect to newly acquired or leased assets, and (d) indebtedness that is expressly
subordinate to the Debentures pursuant to a written subordination agreement with the Purchasers that is acceptable to each Holder
in its sole and absolute discretion. For the avoidance of doubt, the Company will be permitted to make payments when due on the
Indebtedness described in clause (b) and to issue amended, substituted or replacement Indebtedness therefor provided that such
amended, substituted or replacement Indebtedness is on substantially similar terms and to incur indebtedness if, in conjunction
therewith, the Debentures are redeemed or repaid in full.

 

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“Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental
charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company),
if any, have been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the ordinary course of the
Company’s business, such as carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’
Liens, and other similar Liens arising in the ordinary course of the Company’s business, and which (x) do not individually
or in the aggregate materially detract from the value of such property or assets or materially impair the use thereof in the operation
of the business of the Company and its consolidated Subsidiaries or (y) are being contested in good faith by appropriate proceedings,
which proceedings have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject
to such Lien, (c) Liens incurred in connection with Permitted Indebtedness under clauses (a), (b) and (d)/(e) thereunder, and (d)
Liens incurred in connection with Permitted Indebtedness under clause (c) thereunder, provided that such Liens are not secured
by assets of the Company or its Subsidiaries other than the assets so acquired or leased.

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of September 7, 2018 among the Company and the original
Holders, as amended, modified or supplemented from time to time in accordance with its terms.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Share
Delivery Date” shall have the meaning set forth in Section 4(c)(ii).

 

“Subsequent
Financing” means (i) the Company’s offering of debt or equity securities or (ii) the Company entering into a joint
venture, licensing transactions, or royalty transaction.

 

“Successor
Entity” shall have the meaning set forth in Section 5(e).

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market,
the New York Stock Exchange, the OTCQB or OTCQX (or any successors to any of the foregoing).

 

“Warrants”
means, collectively, the Common Stock purchase warrants delivered to the Holders in accordance with Section 2.2(a) of the Purchase
Agreement, which Warrants shall be exercisable immediately and have a term of exercise equal to five (5) years.

 

“Warrant
Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

 

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Section 2. Interest.

 

a) Payment
of Interest in Cash. The Company shall pay interest to the Holder on the aggregate then outstanding principal amount of this
Debenture at the rate of 10% per annum, payable monthly on the first day of each calendar month, beginning on October 1, 2018,
on each Optional Redemption Date (as to that principal amount then being redeemed) and on the Maturity Date (each such date, an
“Interest Payment Date”) (if any Interest Payment Date is not a Business Day, then the applicable payment shall
be due on the next succeeding Business Day), in cash.

 

b) Interest
Calculations. Interest shall be calculated on the basis of a 360-day year, consisting of twelve 30 calendar day periods, and
shall accrue daily commencing on the Original Issue Date until payment in full of the outstanding principal, together with all
accrued and unpaid interest, and other amounts which may become due hereunder, has been made. Interest hereunder will be paid to
the Person in whose name this Debenture is registered on the records of the Company regarding registration and transfers of this
Debenture (the “Debenture Register”).

 

c) Late
Fee. All overdue accrued and unpaid interest to be paid hereunder shall entail a late fee at an interest rate equal to the
lesser of 18% per annum or the maximum rate permitted by applicable law (the “Late Fees”) which shall accrue
daily from the date such interest is due hereunder through and including the date of actual payment in full.

 

d) Prepayment.
The Company may prepay any portion of the Principal Amount of the Debentures after the Closing Date with twenty (20) days written
notice to the Holders.

 

Section 3. Registration
of Transfers and Exchanges.

 

a) Different
Denominations. This Debenture is exchangeable for an equal aggregate principal amount of Debentures of different authorized
denominations, as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer
or exchange.

 

b) Investment
Representations. This Debenture has been issued subject to certain investment representations of the original Holder set forth
in the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable federal
and state securities laws and regulations.

 

c) Reliance
on Debenture Register. Prior to due presentment for transfer to the Company of this Debenture, the Company and any agent of
the Company may treat the Person in whose name this Debenture is duly registered on the Debenture Register as the owner hereof
for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Debenture is overdue, and
neither the Company nor any such agent shall be affected by notice to the contrary.

 

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Section 4. Conversion.

 

a) Voluntary
Conversion. At any time after the Original Issue Date until this Debenture is no longer outstanding, the principal amount of
this Debenture shall be convertible, in whole or in part, into shares of Common Stock at the option of the Holder, at any time
and from time to time (subject to the conversion limitations set forth in Section 4(d)) by delivering to the Company a Notice
of Conversion, the form of which is attached hereto as Annex A (each, a “Notice of Conversion”), specifying
therein the principal amount of this Debenture to be converted and the date on which such conversion shall be effected (the “Conversion
Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such
Notice of Conversion is deemed delivered hereunder. No ink-original Notice of Conversion shall be required, nor shall any medallion
guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. To effect conversions hereunder,
the Holder shall not be required to physically surrender this Debenture to the Company unless the entire principal amount of this
Debenture has been so converted in which case this Debenture shall terminate (unless there is outstanding accrued and unpaid interest
thereon) and the Holder shall surrender this Debenture as promptly as is reasonably practicable after such conversion without delaying
the Company’s obligation to deliver the shares on the Share Delivery Date. Conversions hereunder shall have the effect of
lowering the outstanding principal amount of this Debenture in an amount equal to the applicable conversion. The Holder and the
Company shall maintain records showing the principal amount(s) converted and the date of such conversion(s). The Company may deliver
an objection to any Notice of Conversion within one (1) Business Day of delivery of such Notice of Conversion. In the event of
any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error.
The Holder, and any assignee by acceptance of this Debenture, acknowledge and agree that, by reason of the provisions of this
paragraph, following conversion of a portion of this Debenture, the unpaid and unconverted principal amount of this Debenture may
be less than the amount stated on the face hereof.

 

b) Conversion
Price. The conversion price in effect on any Conversion Date shall be $3.00, subject to adjustment herein (the “Conversion
Price”).

 

c) Mechanics
of Conversion.

 

i. Conversion
Shares Issuable Upon Conversion of Principal Amount. The number of Conversion Shares issuable upon a conversion hereunder shall
be determined by the quotient obtained by dividing (x) the outstanding principal amount of this Debenture to be converted by (y)
the Conversion Price.

 

    A-8

     

    

 

ii. Delivery
of Conversion Shares Upon Conversion. Not later than the earlier of (i) two (2) Trading Days and (ii) the number of Trading
Days comprising the Standard Settlement Period (as defined below) after each Conversion Date (the “Share Delivery Date”),
the Company shall deliver, or cause to be delivered, to the Holder (A) the Conversion Shares which, shall be free of restrictive
legends and trading restrictions (other than those which may then be required by the Purchase Agreement) representing the number
of Conversion Shares being acquired upon the conversion of this Debenture and (B) a bank check in the amount of accrued and unpaid
interest. On or after the Effective Date, the Company shall deliver any Conversion Shares required to be delivered by the Company
under this Section 4(c) electronically through the Depository Trust Company or another established clearing corporation performing
similar functions. As used herein, “Standard Settlement Period” means the standard settlement period, expressed
in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the
date of delivery of the Notice of Conversion.

 

 iii. Failure
to Deliver Conversion Shares. If, in the case of any Notice of Conversion, such Conversion Shares are not delivered to or as
directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to the Company
at any time on or before its receipt of such Conversion Shares, to rescind such Conversion, in which event the Company shall promptly
return to the Holder any original Debenture delivered to the Company and the Holder shall promptly return to the Company any Conversion
Shares received by such Holder pursuant to the rescinded Conversion Notice.

 

 iv. Obligation
Absolute; Partial Liquidated Damages. The Company’s obligations to issue and deliver the Conversion Shares upon conversion
of this Debenture in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by
the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against
any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach
or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law
by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the
Company to the Holder in connection with the issuance of such Conversion Shares; provided, however, that such delivery
shall not operate as a waiver by the Company of any such action the Company may have against the Holder. In the event the Holder
of this Debenture shall elect to convert any or all of the outstanding principal amount hereof, the Company may not refuse conversion
based on any claim that the Holder or anyone associated or affiliated with the Holder has been engaged in any violation of law,
agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining and or enjoining conversion
of all or part of this Debenture shall have been sought and obtained, and the Company posts a surety bond for the benefit of the
Holder in the amount of 100% of the outstanding principal amount of this Debenture, which is subject to the injunction, which bond
shall remain in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of which shall
be payable to the Holder to the extent it obtains judgment. In the absence of such injunction, the Company shall issue Conversion
Shares or, if applicable, cash, upon a properly noticed conversion. If the Company fails for any reason to deliver to the Holder
such Conversion Shares pursuant to Section 4(c)(ii) by the Share Delivery Date, the Company shall pay to the Holder, in cash, as
liquidated damages and not as a penalty, for each $1,000 of principal amount being converted, $10 per Trading Day (increasing to
$20 per Trading Day on the fifth (5th) Trading Day after such liquidated damages begin to accrue) for each Trading Day
after such Share Delivery Date until such Conversion Shares are delivered or Holder rescinds such conversion. Nothing herein shall
limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section 8 hereof for the Company’s
failure to deliver Conversion Shares within the period specified herein and the Holder shall have the right to pursue all remedies
available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive
relief. The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section
hereof or under applicable law.

 

    A-9

     

    

 

  v. Compensation
for Buy-In on Failure to Timely Deliver Conversion Shares Upon Conversion. In addition to any other rights available to the
Holder, if the Company fails for any reason to deliver to the Holder such Conversion Shares by the Share Delivery Date pursuant
to Section 4(c)(ii), and if after such Share Delivery Date the Holder is required by its brokerage firm to purchase (in an open
market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled to receive upon the conversion relating
to such Share Delivery Date (a “Buy-In”), then the Company shall (A) pay in cash to the Holder (in addition
to any other remedies available to or elected by the Holder) the amount, if any, by which (x) the Holder’s total purchase
price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number
of shares of Common Stock that the Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale
price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B)
at the option of the Holder, either reissue (if surrendered) this Debenture in a principal amount equal to the principal amount
of the attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Holder the number of shares
of Common Stock that would have been issued if the Company had timely complied with its delivery requirements under Section 4(c)(ii).
For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted conversion of this Debenture with respect to which the actual sale price of the Conversion Shares (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence,
the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts
payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein
shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver
Conversion Shares upon conversion of this Debenture as required pursuant to the terms hereof.

 

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 vi. Reservation
of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep available out of its authorized
and unissued shares of Common Stock for the sole purpose of issuance upon conversion of this Debenture as herein provided, free
from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder (and the other holders of
the Debentures), not less than such aggregate number of shares of the Common Stock as shall (subject to the terms and conditions
set forth in the Purchase Agreement) be issuable (taking into account the adjustments and restrictions of Section 5) upon the conversion
of the then outstanding principal amount of this Debenture and payment of interest hereunder. The Company covenants that all shares
of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable.

 

 vii. Fractional
Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of this Debenture.
As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the Company shall
at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied
by the Conversion Price or round up to the next whole share.

 

 viii. Transfer
Taxes and Expenses. The issuance of Conversion Shares on conversion of this Debenture shall be made without charge to the Holder
hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such Conversion Shares,
provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance
and delivery of any such Conversion Shares upon conversion in a name other than that of the Holder of this Debenture so converted
and the Company shall not be required to issue or deliver such Conversion Shares unless or until the Person or Persons requesting
the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the
Company that such tax has been paid. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice
of Conversion and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions)
required for same-day electronic delivery of the Conversion Shares.

 

    A-11

     

    

 

d) Holder’s
Conversion Limitations. The Company shall not effect any conversion of this Debenture, and a Holder shall not have the right
to convert any portion of this Debenture, to the extent that after giving effect to the conversion set forth on the applicable
Notice of Conversion, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together
with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)) would beneficially
own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number
of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number
of shares of Common Stock issuable upon conversion of this Debenture with respect to which such determination is being made, but
shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted principal
amount of this Debenture beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or
conversion of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion
or exercise analogous to the limitation contained herein (including, without limitation, any other Debentures or the Warrants)
beneficially owned by the Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence,
for purposes of this Section 4(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act
and the rules and regulations promulgated thereunder. To the extent that the limitation contained in this Section 4(d) applies,
the determination of whether this Debenture is convertible (in relation to other securities owned by the Holder together with any
Affiliates and Attribution Parties) and of which principal amount of this Debenture is convertible shall be in the sole discretion
of the Holder, and the submission of a Notice of Conversion shall be deemed to be the Holder’s determination of whether this
Debenture may be converted (in relation to other securities owned by the Holder together with any Affiliates or Attribution Parties)
and which principal amount of this Debenture is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure
compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers a Notice of Conversion
that such Notice of Conversion has not violated the restrictions set forth in this Section 4(d) and the Company shall have no obligation
to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 4(d), in determining the number of outstanding shares of Common Stock, the Holder may rely on the
number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Company’s most recent
periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the Company,
or (iii) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of
Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within one Trading Day confirm
orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding
shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including
this Debenture, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was
reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Debenture held by the
Holder. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this
Section 4(d), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common
Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion of this Debenture held
by the Holder and the Beneficial Ownership Limitation provisions of this Section 4(d) shall continue to apply. Any increase in
the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company.
The Beneficial Ownership Limitation provisions of this Section 4(d) shall be construed and implemented in a manner otherwise than
in strict conformity with the terms of this Section 4(d) to correct this paragraph (or any portion hereof) which may be defective
or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary
or desirable to properly give effect to such limitation. The limitations contained in this Section 4(d) shall apply to a successor
holder of this Debenture.

 

    A-12

     

    

 

Section 5. Certain
Adjustments.

 

a) Stock
Dividends and Stock Splits. If the Company, at any time while this Debenture is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock Equivalents
(which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon conversion of, or payment
of interest on, the Debentures), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines
(including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues,
in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Company, then the Conversion
Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury
shares of the Company) outstanding immediately before such event, and of which the denominator shall be the number of shares of
Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section shall become effective immediately
after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

    A-13

     

    

 

b) Subsequent
Equity Sales. If, at any time while this Debenture is outstanding, the Company or any Subsidiary, as applicable, sells or grants
any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces any sale, grant
or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person to acquire shares
of Common Stock at an effective price per share that is lower than the then Conversion Price (such lower price, the “Base
Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (if the holder of the Common
Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions,
floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued
in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share that is lower than
the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive
Issuance), then simultaneously with the consummation (or, if earlier, the announcement) of each Dilutive Issuance the Conversion
Price shall be reduced to equal the Base Conversion Price. Notwithstanding the foregoing, no adjustment will be made under this
Section 5(b) in respect of an Exempt Issuance. If the Company enters into a Variable Rate Transaction, the Company shall be deemed
to have issued Common Stock or Common Stock Equivalents at the lowest price at which such securities are actually converted or
exercised. The Company shall notify the Holder in writing, no later than the Trading Day following the issuance of any Common Stock
or Common Stock Equivalents subject to this Section 5(b), indicating therein the applicable issuance price, or applicable reset
price, exchange price, conversion price and other pricing terms (such notice, the “Dilutive Issuance Notice”).
For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 5(b), upon
the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number of Conversion Shares based upon the Base Conversion
Price on or after the date of such Dilutive Issuance, regardless of whether the Holder accurately refers to the Base Conversion
Price in the Notice of Conversion. For purposes of further clarification, the concurrent amendment and restatement of the Warrants
in connection with the Debentures shall not constitute a Dilutive Issuance hereunder. For the purpose of this Section 5(b), “Variable
Rate Transaction” means a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible
into, exchangeable or exercisable for, or include the right to receive, additional shares of Common Stock either (A) at a conversion
price, exercise price or exchange rate or other price that is based upon, and/or varies with, the trading prices of or quotations
for the shares of Common Stock at any time after the initial issuance of such debt or equity securities or (B) with a conversion,
exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity
security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company
or the market for the Common Stock or (ii) effects a transaction under, any agreement, including, but not limited to, an equity
line of credit, whereby the Company may issue securities at a future determined price.

 

    A-14

     

    

 

c) Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 5(a) above, if at any time the Company grants or issues
any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders
of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms
applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the
number of shares of Common Stock acquirable upon complete conversion of this Debenture (without regard to any limitations on exercise
hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the record date for the grant or
issuance of such Purchase Rights, or, if no such record date is established, the date as of which the holders of shares of Common
Stock are to be determined for purposes of the grant or issuance of such Purchase Rights (provided, however, that,
to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the
Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or
beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right
to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the
Holder exceeding the Beneficial Ownership Limitation).

 

d) Pro
Rata Distributions. During such time as this Debenture is outstanding, if the Company shall declare or make any dividend or
other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital
or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of
a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”),
at any time after the issuance of this Debenture, then, in each such case, the Holder shall be entitled to participate in such
Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of
Common Stock acquirable upon complete conversion of this Debenture (without regard to any limitations on conversion hereof, including
without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution,
or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the
participation in such Distribution (provided, however, that, to the extent that the Holder's right to participate
in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be
entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a
result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the
Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

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e) Fundamental
Transaction. If, at any time while this Debenture is outstanding, in the event of a Fundamental Transaction, then, upon any
subsequent conversion of this Debenture, the Holder shall have the right to receive, for each Conversion Share that would have
been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation
in Section 4(d) on the conversion of this Debenture), the number of shares of Common Stock of the successor or acquiring corporation
or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Debenture
is convertible immediately prior to such Fundamental Transaction (without regard to any limitation in Section 4(d) on the conversion
of this Debenture). For purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one (1) share of
Common Stock in such Fundamental Transaction, and the Company shall apportion the Conversion Price among the Alternate Consideration
in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of
Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the
Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Debenture following
such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is
not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this
Debenture and the other Transaction Documents (as defined in the Purchase Agreement) in accordance with the provisions of this
Section 5(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder
(without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the holder of this Debenture, deliver
to the Holder in exchange for this Debenture a security of the Successor Entity evidenced by a written instrument substantially
similar in form and substance to this Debenture which is convertible for a corresponding number of shares of capital stock of such
Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this
Debenture (without regard to any limitations on the conversion of this Debenture) prior to such Fundamental Transaction, and with
a conversion price which applies the conversion price hereunder to such shares of capital stock (but taking into account the relative
value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such
number of shares of capital stock and such conversion price being for the purpose of protecting the economic value of this Debenture
immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance
to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted
for (so that from and after the date of such Fundamental Transaction, the provisions of this Debenture and the other Transaction
Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the Company under this Debenture and the other Transaction Documents
with the same effect as if such Successor Entity had been named as the Company herein.

 

f) Calculations.
All calculations under this Section 5 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 5, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding any treasury shares of the Company) issued and outstanding.

 

    A-16

     

    

 

g) Notice
to the Holder.

 

i. Adjustment
to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 5, the Company shall
promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement
of the facts requiring such adjustment.

 

ii. Notice
to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on
the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C)
the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required
in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale
or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock
is converted into other securities, cash or property or (E) the Company shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed at each office
or agency maintained for the purpose of conversion of this Debenture, and shall cause to be delivered to the Holder at its last
address as it shall appear upon the Debenture Register, at least ten (10) calendar days prior to the applicable record or effective
date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record
to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such
reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date
as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common
Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share
exchange, provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the
validity of the corporate action required to be specified in such notice. To the extent that any notice provided hereunder constitutes,
or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously
file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to convert this
Debenture during the 10-day period commencing on the date of such notice through the effective date of the event triggering such
notice except as may otherwise be expressly set forth herein.

 

    A-17

     

    

 

Section 6. Redemption.

 

a) Optional
Redemption at Election of Company. Subject to the provisions of this Section 6(a), at any time after the Original Issue Date,
the Company may deliver a notice to the Holder (an “Optional Redemption Notice” and the date such notice is
deemed delivered hereunder, the “Optional Redemption Notice Date”) of its irrevocable election to redeem some
or all of the then outstanding principal amount of this Debenture for cash in an amount equal to the Optional Redemption Amount
on the 20th Trading Day following the Optional Redemption Notice Date (such date, the “Optional Redemption
Date,” such 20 Trading Day period, the “Optional Redemption Period” and such redemption, the “Optional
Redemption”). The Optional Redemption Amount is payable in full on the Optional Redemption Date. The Company’s
determination to pay an Optional Redemption in cash shall be applied ratably to all of the holders of the then outstanding Debentures
based on their (or their predecessor’s) initial purchases of Debentures pursuant to the Purchase Agreement.

 

b) Monthly
Redemption. On each Monthly Redemption Date, the Company shall redeem the Monthly Redemption Amount (the “Monthly
Redemption”). The Monthly Redemption Amount payable on each Monthly Redemption Date shall be paid in cash.

 

c) Redemption
Procedure. The payment of cash pursuant to an Optional Redemption or Monthly Redemption shall be payable on the Optional Redemption
Date or the Monthly Redemption Date, as applicable. If any portion of the payment pursuant to an Optional Redemption or Monthly
Redemption shall not be paid by the Company by the applicable due date, interest shall accrue thereon at an interest rate equal
to the lesser of 18% per annum or the maximum rate permitted by applicable law until such amount is paid in full. Notwithstanding
anything herein contained to the contrary, if any portion of the Optional Redemption Amount or the Monthly Redemption Amount remains
unpaid after such date, the Holder may elect, by written notice to the Company given at any time thereafter, to invalidate
such Optional Redemption or Monthly Redemption, as applicable, ab initio, and, with respect to the Company’s failure
to honor the Optional Redemption, the Company shall have no further right to exercise such Optional Redemption.

 

Section 7. Negative
Covenants. As long as any portion of this Debenture remains outstanding, unless the holders of at least 67% in principal amount
of the then outstanding Debentures shall have otherwise given prior written consent, the Company shall not, and shall not permit
any of the Subsidiaries to, directly or indirectly:

 

a) other
than Permitted Indebtedness, except with the prior written consent of the Agent (as defined in the Security Agreement), enter into,
create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money of any kind, including, but not limited
to, a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or
any income or profits therefrom;

 

b) other
than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to any of
its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

    A-18

     

    

 

c) amend
its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially
and adversely affects any rights of the Holder, other than to change the size of the Board of Directors as needed;

 

d) repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Common Stock
or Common Stock Equivalents other than to repurchase Common Stock or Common Stock Equivalents of departing officers and directors
of the Company, provided that such repurchases shall not exceed an aggregate of $200,000 for all officers and directors during
the term of this Debenture and other than existing contractual obligations as of the Original Issue Date to repurchase shares (see
Schedule 4.9);

 

e) repay,
repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness, other than the Debentures and Permitted Indebtedness
if on a pro-rata basis, other than regularly scheduled principal and interest payments as such terms are in effect as of the Original
Issue Date, provided that such payments shall not be permitted if, at such time, or after giving effect to such payment, any Event
of Default exist or occur;

 

		f)	pay cash dividends, except as permitted in Section 5(d), or distributions on any equity securities
of the Company; and

 

		g)	enter into any agreement with respect to any of the foregoing.

 

  Section 8. Events
of Default.

 

a) “Event
of Default” means, wherever used herein, any of the following events (whatever the reason for such event and whether
such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any
court, or any order, rule or regulation of any administrative or governmental body):

 

i. any
default in the payment of (A) the principal amount of any Debenture or (B) interest and other amounts owing to a Holder on any
Debenture, as and when the same shall become due and payable (whether on a Maturity Date or by acceleration or otherwise) which
default, solely in the case of an interest payment or other default under clause (B) above, is not cured within 20 Business Days;

 

ii. the
Company shall fail to observe or perform any other covenant or agreement contained in the Debentures and such failure is not cured
in 20 Business Days;

 

iii. a
default or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument)
shall occur under (A) any of the Transaction Documents or (B) any other material agreement, lease, document or instrument to which
the Company or any Subsidiary is obligated (and not covered by clause (vi) below);

 

    A-19

     

    

 

iv. any
representation or warranty made in this Debenture, any other Transaction Documents, any written statement pursuant hereto or thereto
or any other report, financial statement or certificate made or delivered to the Holder or any other Holder shall be untrue or
incorrect in any material respect as of the date when made or deemed made and such failure is not cured in 20 Business Days;

 

v. the
Company or any Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) shall be subject to a Bankruptcy
Event and such failure is not cured in 20 Business Days;

 

vi. the
Company or any Subsidiary shall default on any of its obligations under any mortgage, credit agreement or other facility, indenture
agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced,
any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves an obligation
greater than $250,000, whether such indebtedness now exists or shall hereafter be created, and (b) results in such indebtedness
becoming or being declared due and payable prior to the date on which it would otherwise become due and payable and such failure
is not cured in 20 Business Days;

 

vii. the
Company shall be a party to any Change of Control Transaction or Fundamental Transaction or shall agree to sell or dispose of all
or in excess of 33% of its assets in one transaction or a series of related transactions (whether or not such sale would constitute
a Change of Control Transaction);

 

viii. any
Person shall breach any agreement delivered to the initial Holders pursuant to Section 2.2 of the Purchase Agreement and such failure
is not cured in 20 Business Days;

 

ix. any
monetary judgment, writ or similar final process shall be entered or filed against the Company, any subsidiary or any of their
respective property or other assets for more than $250,000, and such judgment, writ or similar final process shall remain unvacated,
unbonded or unstayed for a period of 45 calendar days; or

 

    A-20

     

    

 

x. the
Common Stock shall not be eligible for listing or quotation for trading on a Trading Market and shall not be eligible to resume
listing or quotation for trading thereon within five Trading Days.

 

b) Remedies
Upon Event of Default. If any Event of Default occurs and is not cured, the outstanding principal amount of this Debenture,
plus accrued but unpaid interest and other amounts owing in respect thereof through the date of acceleration, shall become, at
the Holder’s election, immediately due and payable in cash at the Mandatory Default Amount. Commencing 5 days after the occurrence
of any Event of Default that is not cured that results in the eventual acceleration of this Debenture, the interest rate on this
Debenture shall accrue at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted under applicable
law. Upon the payment in full of the Mandatory Default Amount, the Holder shall promptly surrender this Debenture to or as directed
by the Company. Such acceleration may be rescinded and annulled by the Holder at any time prior to payment hereunder and the Holder
shall have all rights as a holder of the Debenture until such time, if any, as the Holder receives full payment pursuant to this
Section 6(b). No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

  Section 9. Miscellaneous.

 

a) Notices.
Any and all notices or other communications or deliveries to be provided by the Holder hereunder, shall be in writing and delivered
personally, by facsimile, by email attachment, or sent by a nationally recognized overnight courier service, addressed to the Company,
at the address set forth above, or such other facsimile number, email address, or address as the Company may specify for such purposes
by notice to the Holder delivered in accordance with this Section 7(a).  Any and all notices or other communications or deliveries
to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, by email attachment, or sent
by a nationally recognized overnight courier service addressed to each Holder at the facsimile number, email address or address
of the Holder appearing on the books of the Company, or if no such facsimile number or email attachment or address appears on the
books of the Company, at the principal place of business of such Holder, as set forth in the Purchase Agreement.  Any notice
or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile number or email attachment to the email address set
forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on any date, (ii) the next Business Day after
the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment
to the email address set forth on the signature pages attached hereto on a day that is not a Business Day or later than 5:30 p.m.
(New York City time) on any Business Day, (iii) the second Business Day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

    A-21

     

    

 

b) Absolute
Obligation. Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal and accrued interest, as applicable, on this Debenture at the
time, place, and rate, and in the coin or currency, herein prescribed. This Debenture is a direct debt obligation of the Company.
This Debenture ranks pari passu with all other Debentures now or hereafter issued under the terms set forth herein. 

 

		c)	Lost or Mutilated Debenture. If this Debenture shall be mutilated, lost, stolen or destroyed,
the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Debenture, or in lieu
of or in substitution for a lost, stolen or destroyed Debenture, a new Debenture for the principal amount of this Debenture so
mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such Debenture, and
of the ownership hereof, and an indemnity or security reasonably satisfactory to the Company.

 

d) Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Debenture 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 any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates,
directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City
of New York, Borough of Manhattan (the “New York Courts”). 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 Transaction Documents),
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 Debenture 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 Debenture or the
transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of this Debenture,
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.

 

    A-22

     

    

 

e) Waiver.
Any waiver by the Company or the Holder of a breach of any provision of this Debenture shall not operate as or be construed to
be a waiver of any other breach of such provision or of any breach of any other provision of this Debenture. The failure of the
Company or the Holder to insist upon strict adherence to any term of this Debenture on one or more occasions shall not be considered
a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Debenture
on any other occasion. Any waiver by the Company or the Holder must be in writing.

 

f) Severability.
If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain in effect,
and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons
and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable
law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of
interest permitted under applicable law.

 

g) Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Debenture shall be cumulative
and in addition to all other remedies available under this Debenture and any of the other Transaction Documents at law or in equity
(including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s
right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Debenture. 
The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly
provided herein. Amounts set forth or provided for herein with respect to payments and the like (and the computation thereof) shall
be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation
of the Company (or the performance thereof). The Company acknowledges that a material breach by it of its obligations hereunder
could cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company shall
provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company’s
compliance with the terms and conditions of this Debenture.

 

h) Next
Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day.

 

i) Headings.
The headings contained herein are for convenience only, do not constitute a part of this Debenture and shall not be deemed to limit
or affect any of the provisions hereof.

 

j) Secured
Obligation. The obligations of the Company under this Debenture are secured by all assets of the Company pursuant to the Security
Agreement, dated as of September 7, 2018 between the Company, certain Subsidiaries of the Company, and the Secured Parties (as
defined therein).

 

Section 10. Disclosure.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Debenture, unless the Company has in
good faith determined that the matters relating to such notice do not constitute material, nonpublic information relating to the
Company or its Subsidiaries, the Company shall within two (2) Business Days after such receipt or delivery publicly disclose such
material, nonpublic information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice
contains material, non-public information relating to the Company or its Subsidiaries, the Company so shall indicate to the Holder
contemporaneously with delivery of such notice, and in the absence of any such indication, the Holder shall be allowed to presume
that all matters relating to such notice do not constitute material, nonpublic information relating to the Company or its Subsidiaries.

 

*********************

 

(Signature Page Follows)

 

    A-23

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Debenture to be duly executed by a duly authorized officer as of the date first above indicated.

 

	 	EMI HOLDING, inc.
	 	 
	 	
        By:______________________________________

        Name:

        Title:

        Facsimile No. for delivery of Notices: ___________

 

    A-24

     

    

 

ANNEX
A

 

NOTICE
OF CONVERSION

 

 The
undersigned hereby elects to convert principal under the Second Amended and Restated 10% Senior Secured Convertible Debenture
due April 21, 2021 of EMI Holding, Inc., a Delaware corporation (the “Company”), into shares of Common Stock
according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name of a
person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering
herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged
to the holder for any conversion, except for such transfer taxes, if any.

 

 By
the delivery of this Notice of Conversion the undersigned represents and warrants to the Company that its ownership of the Common
Stock does not exceed the amounts specified under Section 4 of this Debenture, as determined in accordance with Section 13(d)
of the Exchange Act.

 

Conversion
calculations:

Date
to Effect Conversion:

 

Principal
Amount of Debenture to be Converted:

 

Number
of shares of Common Stock to be issued:

 

	Signature:	 	 

 

	Name:   	                    	 

 

Address
for Delivery of Common Stock Certificates:

 

	 	 	Or
	 	 	 
	 	 	DWAC Instructions:
	 	 	 
	 	 	Broker No:______________
	 	 	 
	 	 	Account No:_____________
	 	 	 

 

    A-25

     

    

 

Schedule
1

 

CONVERSION
SCHEDULE

 

The
Second Amended and Restated 10% Senior Secured Convertible Debentures due April 21, 2021 in the aggregate principal amount of
$_________________are issued by EMI Holding, Inc., a Delaware corporation. This Conversion Schedule reflects conversions made
under Section 4 of the above referenced Debenture.

 

Dated:

 

	Date
        of Conversion

        (or
        for first entry,

        Original Issue Date)
	 	Amount
    of

    Conversion	 	Aggregate

    Principal

    Amount

    Remaining 

    Subsequent to

    Conversion

    (or original

    Principal

    Amount)	 	Company
    Attest
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    A-26

     

    

 

EXHIBIT
B

 

NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND
THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN
SECURED BY SUCH SECURITIES.

 

SECOND
AMENDED AND RESTATED COMMON STOCK PURCHASE WARRANT

 

EMMAUS
LIFE SCIENCES, INC.

 

	Warrant
    Shares:	Initial
    Exercise Date: April 22, 2019

 

WO-419-__
-A

 

THIS
SECOND AMENDED AND RESTATED COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received,
_____________ or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise
and the conditions hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”)
and on or prior to 5:00 p.m. (New York City time) on September 14, 2023 (the “Termination Date”) but not thereafter,
to subscribe for and purchase from Emmaus Life Sciences, Inc. (formerly known as “MYnd Analytics, Inc”), a Delaware
corporation (the “Company”), up to ________ shares (the “Warrant Shares”) of Common Stock.
The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section
2(b).

 

Section
1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that
certain Securities Purchase Agreement, dated September 7, 2018, among the Company and the Holders who are signatory thereto, as
amended, modified or supplemented from time to time in accordance with its terms (as so amended, the “Purchase Agreement”).

 

    B-1

     

    

 

Section
2. Exercise.

 

1. Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times
on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile
copy or PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice
of Exercise”). Within the earlier of (i) two (2) Business Days and (ii) the number of Trading Days comprising the Standard
Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver
the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s
check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the
applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other
type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the
Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant
Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant
to the Company for cancellation within three (3) Business Days of the date on which the final Notice of Exercise is delivered
to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available
hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal
to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of
Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within
one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and
agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder,
the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face
hereof.

 

2. Exercise
Price. The exercise price per share of the Common Stock under this Warrant shall be $3.00, subject to adjustment hereunder
(the “Exercise Price”).

 

3. Cashless
Exercise. If at any time after the six-month anniversary of the Closing Date, there is no effective registration statement
registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant may also
be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled
to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A)
= as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice
of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both
executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours”
(as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the
option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise
or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s
execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours”
on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular
trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice
of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered
pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;

 

    B-2

     

    

 

(B)
=    the Exercise Price of this Warrant, as adjusted hereunder; and

 

(X)
=   the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of
this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

If
Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9)
of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period
of the Warrant Shares being issued may be tacked on to the holding period of this Warrant. The Company agrees not to take any
position contrary to this Section 2(c).

 

“Bid
Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common
Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading
Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX
as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common
Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d)
in all other cases, the fair market value of a share of Common Stock as determined in good faith by the independent members of
the Board of Directors.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based
on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading
Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX
as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common
Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d)
in all other cases, the fair market value of a share of Common Stock as determined by the independent members of the Board of
Directors.

 

    B-3

     

    

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise
pursuant to this Section 2(c).

 

4. Mechanics
of Exercise.

 

i. Delivery
of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer
Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository
Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant
in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or
resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder without volume or manner-of-sale
limitations pursuant to Rule 144 (assuming cashless exercise of the Warrants), and otherwise by physical delivery of a certificate,
registered in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to
which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the
date that is the earliest of (i) two (2) Business Days after the delivery to the Company of the Notice of Exercise, (ii) one (1)
Business Day after delivery of the aggregate Exercise Price to the Company and (iii) the number of Business Days comprising the
Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share
Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have
become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date
of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless
exercise) is received within the earlier of (i) two (2) Business Days and (ii) the number of Business Days comprising the Standard
Settlement Period following delivery of the Notice of Exercise. As used herein, “Standard Settlement Period”
means the standard settlement period, expressed in a number of Business Days, on the Company’s primary Trading Market with
respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.

 

ii. Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant
evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall
in all other respects be identical with this Warrant.

 

    B-4

     

    

 

iii. Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section
2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

iv. Compensation
for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder,
upon the Company being listed or quoted for trading on a Trading Market, if the Company fails to cause the Transfer Agent to transmit
to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above pursuant to an exercise on or before
the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction
or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a
sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”),
then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price
(including customary brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained
by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the
exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at
the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise
was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common
Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example,
if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise
of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of
the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company
written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence
of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder,
at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the
Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms
hereof.

 

    B-5

     

    

 

v. No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

vi. Charges,
Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the
Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the
Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other than the name
of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed
by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer
tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise
and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required
for same-day electronic delivery of the Warrant Shares.

 

vii. Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of
this Warrant, pursuant to the terms hereof.

 

    B-6

     

    

 

e) Holder’s
Exercise Limitations. Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise,
to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the
Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of
the Holder’s Affiliates (such Persons, “Attribution Parties”)), would beneficially own in excess of the
Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock
beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock
issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of
shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially
owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted
portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to
a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of
its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial
ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder,
it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance
with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance
therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant
is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and
of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice
of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other
securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable,
in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the
accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined
in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this
Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding
shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission,
as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or
the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder,
the Company shall within one Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then
outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion
or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since
the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial
Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99%
of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock
upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase
in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the
Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with
the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the
intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly
give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

    B-7

     

    

 

Section
3. Certain Adjustments.

 

1. Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon
exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including
by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by reclassification
of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding
immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately
after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that
the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become
effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

2. Subsequent
Equity Sales. If the Company or any Subsidiary thereof, as applicable, at any time while this Warrant is outstanding, shall
sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose of or issue (or announce any
offer, sale, grant or any option to purchase or other disposition) any Common Stock or Common Stock Equivalents, at an effective
price per share less than the Exercise Price then in effect (such lower price, the “Base Share Price” and such
issuances collectively, a “Dilutive Issuance”) (it being understood and agreed that if the holder of the Common
Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions,
floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued
in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share that is less than
the Exercise Price, such issuance shall be deemed to have occurred at that time). The Company shall notify the Holder, in writing,
no later than three Trading Days following the issuance or deemed issuance of any Common Stock or Common Stock Equivalents subject
to this Section 3(b), indicating therein the applicable Base Share Price and other pricing terms (such notice, the “Dilutive
Issuance Notice”). For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant
to this Section 3(b), upon the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number of Warrant Shares
based upon the Base Share Price regardless of whether the Holder accurately refers to the Base Share Price in the Notice of Exercise.
Notwithstanding the foregoing, no adjustment will be made under this Section 3(b) in respect of an Exempt Issuance (as defined
below). If the Company enters into a Variable Rate Transaction, the Company shall be deemed to have issued Common Stock or Common
Stock Equivalents at the lowest conversion or exercise price at which such securities are actually converted or exercised. For
purposes of this Section 3(b), “Exempt Issuance” means the issuance of (a) shares of Common Stock or Common
Stock Equivalents to employees, officers, directors or consultants of the Company or any Subsidiary pursuant to any stock or option
plan duly adopted for such purpose by a majority of the non-employee members of the Board of Directors or a majority of the members
of a committee of non-employee directors established for such purpose, (b) securities upon the exercise or exchange of or exchangeable
for or convertible into shares of Common Stock issued and outstanding on the date hereof, provided that such securities have not
been amended since date hereof to increase the number of such securities or to decrease the exercise price, exchange price or
conversion price of such securities and (c) securities issued pursuant to acquisitions or strategic transactions approved by a
majority of the disinterested directors of the Company, provided that any such issuance shall only be an entity (or to the equity
holders of an entity) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business
synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the investment
of funds, but shall not, for the purposes of this clause (c), include a transaction in which the Company is issuing securities
primarily for the purpose of raising capital or to an entity whose primary business is investing in securities. For the purpose
of this Section 3(b), “Variable Rate Transaction” means a transaction in which the Company (i) issues or sells any
debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive, additional
shares of Common Stock either (A) at a conversion price, exercise price or exchange rate or other price that is based upon, and/or
varies with, the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such
debt or equity securities or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date
after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or
indirectly related to the business of the Company or the market for the Common Stock or (ii) effects a transaction under, any
agreement, including, but not limited to, an equity line of credit, whereby the Company may issue securities at a future determined
price.

 

    B-8

     

    

 

3. Pro
Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or
other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital
or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of
a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”),
at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock
acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation,
the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such
record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation
in such Distribution (provided, however, that, to the extent that the Holder’s right to participate in any such
Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to
participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such
Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until
such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

4. Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets
in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common
Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization
or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted
into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions
consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group
acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person
or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share
purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent
exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon
such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard
to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant
is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise
of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to
apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common
Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder
shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not
the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this
Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements
in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such
Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security
of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is
exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to
the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise
of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder
to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental
Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being
for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction),
and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction,
the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction,
the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead
to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the
Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named
as the Company herein.

 

    B-9

     

    

 

5. Calculations.
All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

6. Notice
to Holder.

 

i. Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall
promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting
adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

    B-10

     

    

 

ii. Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares
of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer
of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted
into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation
or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email
to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least
20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which
a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not
to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption,
rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer
or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common
Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable
upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such
notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified
in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material, non-public information
regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant
to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the
date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

Section
4. Transfer of Warrant.

 

(e) Transferability.
Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof and to the provisions
of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without limitation, any registration
rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated
agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder
or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender
and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or
assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue
to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.
Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the
Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company
within three (3) Business Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant
in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant
Shares without having a new Warrant issued.

 

    B-11

     

    

 

(f) New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of
the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed
by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Initial
Exercise Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

(g) Warrant
Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered
Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder,
and for all other purposes, absent actual notice to the contrary.

 

(h) Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer
of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities Act and
under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or
current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer,
that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section 5.7 of the Purchase Agreement.

 

(i) Representation
by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any
exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for
distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities
law, except pursuant to sales registered or exempted under the Securities Act.

 

    B-12

     

    

 

Section
5. Miscellaneous.

 

● No
Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in
Section 3.

 

● Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case
of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

● Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required
or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding
Business Day.

 

● Authorized
Shares.

 

The
Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights
under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers
who are charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant.
The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common
Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights
represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant
Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens
and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

 

    B-13

     

    

 

Except
and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above
the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may
be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares
upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions
or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform
its obligations under this Warrant.

 

Before
taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or
in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be
necessary from any public regulatory body or bodies having jurisdiction thereof.

 

● Jurisdiction.
All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance
with the provisions of the Purchase Agreement.

 

● Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered and the Holder does
not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

● Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision
of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant,
which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings,
incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

 

● Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Purchase Agreement.

 

● Limitation
of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase
Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder
for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company
or by creditors of the Company.

 

● Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

● Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns
of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and
shall be enforceable by the Holder or holder of Warrant Shares.

 

● Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

● Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

 

● Headings.
The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of
this Warrant.

 

********************

 

(Signature
Page Follows)

 

    B-14

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first
above indicated.

 

	 	EMMAUS LIFE SCIENCES, INC.
	 	 
	 	By:	                   
	 	 	Name:	 
	 	 	Title:	 

 

    B-15

     

    

 

NOTICE
OF EXERCISE

 

TO: EMMAUS
LIFE SCIENCES, INC.

 

3. The
undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only
if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes,
if any.

 

4. Payment
shall take the form of (check applicable box):

 

☐ in
lawful money of the United States; or

 

☐ if
permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection
2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 2(c).

 

5. Please
issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

	 	 
	 	 

 

The
Warrant Shares shall be delivered to the following DWAC Account Number:

 

	 	 
	 	 
	 	 
	 	 
	 	 

 

(4)
Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under
the Securities Act of 1933, as amended.

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity:___________________________________________________________________________

Signature
of Authorized Signatory of Investing Entity:_____________________________________________________

Name
of Authorized Signatory:______________________________________________________________________

Title
of Authorized Signatory:_______________________________________________________________________

Date:__________________________________________________________________________________________

 

    B-16

     

    

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

(To
assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR
VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	Name:	 	 
	 	 	(Please Print)
	 	 	 
	Address:	 	 
	 	 	(Please Print)
	 	 	 
	Phone Number:	 	 
	 	 	 
	Email Address:	 	 
	 	 	 
	Dated: _______________ __, ______	 	 
	 	 	 
	Holder’s Signature:__________________	 	 
	 	 	 
	Holder’s Address:___________________	 	 

 

 

B-17

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