Document:

Exhibit 10.2

 

NLS-1 Pharma AG

Alter Postplatz 2

CH-6370 Stans

 

18 January 2019

 

Convertible Promissory Note

 

THIS NOTE IS ISSUED IN THE FORM OF A MERE
CERTIFICATE OF INDEBTEDNESS (AN acknowledgment of debt pursuant to Article 82 of the Swiss
Federal ACT ON Debt Enforcement and Bankruptcy), AND NOT AS A REGISTERED SECURITIES (WERTPAPIER). THIS NOTE CANNOT BE TRANSFERRED
TO THRID PARTIES.

 

Subject to the terms and conditions of
this convertible promissory note (the “Note”),

 

Magnetic Rock Investment AG, a Swiss
stock corporation with its registered office at c/o Ronald Hafner, Weinbergstrasse 72, CH-8703 Erlenbach, Switzerland, and company
no. CHE-184.662.704

(the “Lender”),

 

hereby undertakes to grant to

NLS-1 Pharma AG, a Swiss stock corporation
with its registered office at Alter Postplatz 2, 6370 Stans, Switzerland, and company no. CHE-447.067.367

(the “Borrower”),

 

the principal sum of

CHF 550,000.00

(the “Principal Amount”),

 

together with interest at 10.0% p.a. (the
“Interest”) thereon accruing on and from the date of payment until the entire Principal Amount is repaid (or converted,
as provided herein) (the Interest and the Principal Amount hereinafter jointly referred to as the “Loan”).

 

Interest shall be calculated based on the
exact number of days in relation to a year of 360 days (actual/360), compounded annually.

 

The following is a statement of the terms
and conditions of the Loan to which this Note is subject and to which the Lender and the Borrower hereby agree:

 

	
        1 – Payment

         
	 	
        The Principal Amount shall be due and payable
        to the Borrower in full within five (5) days following the date first written above, to the bank account of the Borrower:

        UBS Switzerland AG

        Paradeplatz 6

        8001 Zürich

        IBAN: CH98 0020 6206
        1966 5401 T

	 	 	 
	
        2 – Treatment upon Maturity Date

	 	
        The Loan shall be due and re-payable to
        Lender no later than 30 April 2019 (the “Maturity Date”).

         

        If not converted on or before the Maturity
        Date, then on the Maturity Date the Notes shall, at the election of the Lender, either (A) the outstanding Loan shall be repaid
        in full or (B) remain outstanding with a new Maturity Date to be set by the Lender.

 

    1

     

    

 

	3 – Conversion	 	
        If any part of the Loan remains outstanding
        upon the closing of a Qualified Financing (as defined below), the Lender shall have the right, by providing a written notice to
        the Borrower, to require that all of the Loan then outstanding (the “Outstanding Amount”) shall be converted
        into that number of shares of such class of the Borrower’s shares issued in connection with the Qualified Financing (the
        “New Shares”) as is determined by dividing the applicable Outstanding Amount by the Conversion Price (as defined
        below) in a single transaction or in a series of related transactions in each case occurring after the date hereof and on or before
        the Maturity Date.

         

        “Conversion Price” shall
        mean the lower of (A) the price per share to investors of New Shares in the Qualified Financing or (B) the price per share to any
        lender of bridge loan financing who converts his/her/its loan into equity in the Qualified Financing.

         

        “Qualified Financing”
        shall mean the Borrower’s issuance of New Shares to investors in a single transaction or in a series of related transactions
        on or before the Maturity Date approved by the Borrower’s Board of Directors.

         

        Borrower shall deliver to Lender notice
        of the Qualified Financing as soon as practicable, but in any event no fewer than ten (10) days prior to the scheduled closing
        date of the Qualified Financing (the “Conversion Date”), notifying the Lender of the conversion to be effected,
        including specifying (i) the Conversion Price and (ii) the Conversion Date.

	 	 	 
	4 – Rights on Conversion	 	In the event of the conversion pursuant to this Note, the Lender shall have such rights and preferences as all holders of the New Shares have pursuant to: (i) the statutes of the Company; and/or (ii) any contract entered into by and between the holders of the New Shares and the Company. For the avoidance of doubt, in the event of the conversion of the Notes, the shareholder agreement dated as of August 31, 2015 (as amended from time to time) shall be applicable for such converted shares and the Lender herewith adheres to said shareholder agreement.
	 	 	 
	5 – Termination of Rights	 	Except for Sections 7 and 8, all rights and obligations with respect to this Note shall terminate upon the effective conversion or repayment of the entire Loan, whether or not this Note has been surrendered to Borrower for cancellation.
	 	 	 
	6 – Delivery of Stock Certificates; No Fractional Shares	 	As promptly as practicable after any conversion of this Note, the Borrower at its expense shall duly register the new shareholdings in the share register of the Borrower. The Borrower shall issue physical share certificates to the Lender, as applicable. No fractional shares of any of Borrower’s equity securities will be issued in connection with any conversion hereunder.

 

    2

     

    

 

	7 - Governing Law	 	This Note shall be governed by and construed in accordance with the substantive laws of Switzerland, without reference to principles of conflict of laws or choice of laws.
	 	 	 
	8 – Jurisdiction	 	All disputes arising out of or in connection with this Note, including disputes regarding its conclusion, validity, binding effect, amendment, breach, termination or rescission shall be subject to the exclusive jurisdiction of the ordinary courts of Stans (NW).

 

IN WITNESS WHEREOF, the Parties have signed this Note
on the date first written above

The Lender

Magnetic Rock Investment AG

 

	/s/ Ronald Hafner	 
	 	 
	by: Ronald Hafner	 
	Chairman of the Board	 
	 	 
	The Borrower	 
	 	 
	/s/ Ronald Hafner	 
	 	 
	Ronald Hafner	 
	 	 
	/s/ Alexander Zwyer	 
	 	 
	Alexander Zwyer	 

 

 

3Exhibit 10.3

 

NLS Pharmaceutics AG

Alter Postplatz 2

CH-6370 Stans

 

16 September 2019

 

Addendum Convertible Promissory Note
(“Addendum”)

 

Magnetic Rock Investment AG, a Swiss
stock corporation with its registered office at c/o Ronald Hafner, Weinbergstrasse 72, 8703 Erlenbach (ZH), Switzerland, and company
no. CHE-184.662.704 (the “Lender”), granted to NLS Pharmaceutics Ltd. (formerly NLS-1 Pharma AG), a Swiss
stock corporation with its registered office at Alter Postplatz 2, 6370 Stans, Switzerland, and company no. CHE-447.067.367 (the
“Borrower”), based on the promissory note dated 18 January 2019 (the “Promissory Note”) the
principal sum of CHF 550,000.00 (the “Principal Amount”), together with interest at 10.0% p.a. (the “Interest”)
thereon accruing on and from the date of payment until the entire Principal Amount is repaid (the Interest and the Principal Amount
hereinafter jointly referred to as the “Loan”). The Interest shall be calculated based on the exact number of
days in relation to a year of 360 days (actual/360), compounded annually.

 

For the sake of clarity, CHF 500,000.00
of the Principle Amount (“Payment A”) was paid to the Borrower on 31 August 2018 (the “Date of Payment
A”) and CHF 50,000.00 of the Principle Amount (“Payment B”) was paid to the Borrower on 18 December
2018 (the “Date of Payment B”).

 

On 12 March 2019 CHF 526,979.84 of the
Principal Amount was settled by conversion into equity (the “Conversion Amount”), whereas the Lender received
eight (8) registered shares at an issue price of CHF 65,872.48 (the “Conversion”). The Conversion Amount consists
of the full amount of payment B and of CHF 476,979.84 from Payment A. As a result of the Conversion, an outstanding amount of CHF
23,020.16 with regard to Payment A (the “Open Amount Payment A”) remains open.

 

The following is a statement of the amended
terms and conditions of the Promissory Note:

 

	1 – Extension Maturity Date	 	According to section 2 of the Promissory Note, the maturity date and therefore the repayment of the Loan was agreed to take place no later than 30 April 2019.
	 	 	 
		 	According to section 2 of the Promissory Note, the Lender may unilaterally extend the repayment term and set a new maturity date.
	 	 	 
		 	The Lender hereby extends the maturity date of the Loan, replacing the existing maturity date, until 31 December 2019 and, thus, the Loan shall be due for repayment no later than 31 December 2019. The Borrower hereby acknowledges and agrees with the extension.

 

     

     

    

 

	2 - Interest 	 	According to the Document from GHM Partners (Annex 1) for the year 2018, Interest accrued in the aggregated amount of CHF 17,125.00 with regard to Payment A and Payment B; resulting in the compounded and aggregated Principle Amount of CHF 567,125.00 (the “Principle Amount 2019”) as of 1 January 2019.
	 	 	 
	 	 	With effect of the Conversion, the Principle Amount 2019 less the Conversion Amount results in the remainder amount of CHF 40,145.16 (the “Remaining Principle Amount 2019”).
	 	 	 
	 	 	From 1 January 2019 up to and including 18 March 2019 (i.e., the effective date of the Conversion for accounting purposes) further Interests of CHF 11,972.64 accrued with regard to the Principle Amount 2019 (the “Interest Before Conversion”). This amount may only be compounded at the end of the year 2019.
	 	 	 
	 	 	From 19 March 2019 up to and including 30 June 2019 further Interest of CHF 1,148.60 accrued with regard to the Remaining Principle Amount 2019 (the “Interest After Conversion”).
	 	 	 
	 	 	As of 30 June 2019 open and unpaid are the Interest Before Conversion and the Interest After Conversion as well as the Remaining Principle Amount 2019.
	 	 	 
	3 - Conversion	 	The Lender hereby confirms that the Conversion Amount was fully settled by way of Conversion.
	 	 	 
	4 - Governing Law	 	This Addendum shall be governed by and construed in accordance with the substantive laws of Switzerland, without reference to principles of conflict of laws or choice of laws.
	 	 	 
	5 – Jurisdiction	 	All disputes arising out of or in connection with this Addendum, including disputes regarding its conclusion, validity, binding effect, amendment, breach, termination or rescission shall be subject to the exclusive jurisdiction of the ordinary courts of Stans (NW).

 

The Lender

Magnetic Rock Investment

 

	/s/ Ronald Hafner	 	/s/ Jürgen Bauer
	Ronald Hafner	 	Jürgen Bauer
	Chairman of the Board of Directors	 	 
	 	 	 
	The Borrower	 	 
	NLS Pharmaceutics Ltd.	 	 
	 	 	 
	/s/ Alexander Zwyer	 	/s/ Ronald Hafner
	Name: Alexander Zwyer	 	Name: Ronald Hafner
	Function: Chief Executive Officer	 	Function: Chairman of the Board of Directors

 

Annex 1: Excel from GHM Partners.

 

     

     

    

 

Annex 1

 

Excel sheet from
GHM Partners

 

	 	 	2018	 	 	18,03.2019	 	 	30.06.2019	 
	MRI Convertible promissory note	 	CHF	 	 	CHF	 	 	CHF	 
	A - Credit CHF - from 31.08.18 (122 Tage)	 	 	500’000.00	 	 	 	516’944.44	 	 	 	40’145.16	 
	8 - Credit CHF - from 18.12.18 (13 Tage)	 	 	50’000.00	 	 	 	50’180.56	 	 	 	-	 
	Total Convertible Promissory Note	 	 	550’000.00	 	 	 	567’125.00	 	 	 	40’145.16	 
	Interest rate 10%	 	 	10	%	 	 	10	%	 	 	10	%
	A - Interest / from 19.3.19	 	 	169’44.44	 	 	 	10’913.27	 	 	 	1’148.60	 
	B - Interest / to 18.3.19	 	 	180.56	 	 	 	1’059.37	 	 	 	11’972.64	 
	Total Interest	 	 	17’125,00	 	 	 	11’972.64	 	 	 	13’121.24	 
	Total Promissory Note incl. Interest	 	 	567’125.00	 	 	 	579’097.44	 	 	 	53’266.40	 
	Debt to equity swap 18.3.2019	 	 	 	 	 	 	-526’979.84	 	 	 	-	 
	Total Convertible Promissory Note	 	 	567’125.00	 	 	 	52’117.80	 	 	 	53’266.40	 
	 	 	 	 	 	 	 	 	 	 	 	6901/2161

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