Document:

Exhibit 10.35

 

THIS PROMISSORY NOTE (AND ALL PAYMENT
AND ENFORCEMENT PROVISIONS HEREIN) (THE “NOTE”) IS SUBJECT TO THE TERMS OF A SUBORDINATION AGREEMENT DATED AS OF MAY
7, 2018, BY AND AMONG OXFORD FINANCE LLC, AS COLLATERAL AGENT, THE NOTEHOLDER (AS DEFINED HEREIN), THE LENDERS THAT ARE PARTY TO
THE LOAN AGREEMENT (AS DEFINED HEREIN), AND THE BORROWER (AS DEFINED HEREIN) (THE “SUBORDINATION AGREEMENT”). IN THE
EVENT OF ANY INCONSISTENCY BETWEEN THIS NOTE AND THE SUBORDINATION AGREEMENT, THE TERMS OF THE SUBORDINATION AGREEMENT SHALL CONTROL.

 

PROMISSORY NOTE

 

FOR VALUE RECEIVED, and subject to the terms
and conditions set forth herein, ACURA PHARMACEUTICALS, INC., a New York corporation with offices located at 616 N. North Court,
Suite 120, Palatine, Illinois (“Borrower”), hereby unconditionally promises to pay to the order of John
Schutte c/o MainPointe Pharmaceuticals, LLC, 333 E. Main Street, Louisville, KY 40202 or his assigns (the “Noteholder”),
the principal amount of ONE MILLION DOLLARS ($1,000,000) together with all accrued interest thereon, as provided in this
Promissory Note (this "Note").

 

1.        Definitions.
Unless defined elsewhere in this Note, capitalized terms used herein shall have the meanings set forth in this Section 1.

 

"Affiliate" means
as to any Person, any other Person that, directly or indirectly through one or more intermediaries, is in control of, is controlled
by, or is under common control with, such Person. For purposes of this definition, "control" of a Person means the power,
directly or indirectly, either to (a) vote more than 50% of the securities having ordinary voting power for the election of directors
(or persons performing similar functions) of such Person or (b) direct or cause the direction of the management and policies of
such Person, whether by contract or otherwise.

 

"Person" means any
individual, corporation, limited liability company, trust, joint venture, association, company, limited or general partnership,
unincorporated organization, governmental authority or other entity.

 

"Prime Rate" means
the rate of interest per annum equal to the prime rate as reported by the Wall Street Journal.

 

2.        Loan.
On the date
hereof Noteholder is funding a loan of $1,000,000 (the “Loan”)
to Borrower.

 

3.        Payment
Dates; Optional Prepayments;

 

3.1       Payment
Dates. The aggregate unpaid principal amount of the Loan together with all accrued and unpaid interest thereon shall
be due and payable on January 2, 2020 (the “Maturity Date”).

 

3.2       Optional
Prepayments. The Borrower may prepay the Loan in whole or in part at any time or from time to time without penalty
or premium by paying the principal amount to be prepaid together with accrued interest thereon to the date of prepayment.

 

3.3       Payment
Mechanics. All payments of interest and principal shall be made in lawful money of the United States of America on the date
on which such payment is due by wire transfer of immediately available funds to the Noteholder's account at a bank specified by
the Noteholder in writing.

 

    	 	 	 

     

    

 

4.        Interest.
The outstanding principal amount of the Loan shall bear interest at a rate equal to the Prime Rate plus 2% per anum and shall
accrue and be payable at the Maturity Date. All computations of interest shall be made on the basis of a 360 day year consisting
of 12 months of 30 days.

 

5.        Events
of Default. The occurrence and continuance of any of the following shall constitute an “Event of Default”
hereunder:

 

5.1       Failure
to Pay. The Borrower fails to pay any amount of principal of, or interest on, the Loan when due and such failure continues
for 5 days after written notice to the Borrower.

 

5.2       Bankruptcy.
  (A) The Borrower commences any case, proceeding or other action (i) under any existing or future law relating to bankruptcy,
insolvency, reorganization, or other relief of debtors, seeking to have an order for relief entered with respect to it, or seeking
to adjudicate it as bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution,
composition or other relief with respect to it or its debts or (ii) seeking appointment of a receiver, trustee, custodian, conservator
or other similar official for it or for all or any substantial part of its assets, or the Borrower makes a general assignment
for the benefit of its creditors; or (B) there is commenced against the Borrower any case, proceeding or other action of a nature
referred to in Section 5.2(A) above which (i) results in the entry of an order for relief or any such adjudication or appointment
or (ii) remains undismissed, undischarged or unbonded for a period of 60 days.

 

6.        Remedies.
Upon the occurrence of any Event of Default and at any time thereafter during the continuance of such Event of Default, the Noteholder
may at its option, by written notice to the Borrower declare the entire principal amount of this Note, together with all accrued
interest thereon, immediately due and payable, provided, however that, if an Event of Default described in Section 5.2
shall occur, the principal of and accrued interest on the Loan shall become immediately due and payable without any notice, declaration
or other act on the part of the Noteholder.

 

7.        Miscellaneous.

 

7.1       Governing
Law. This Note, and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based
upon, arising out of or relating to this Note and the transactions contemplated hereby and thereby shall be governed by the laws
of the State of New York, without giving effect to conflict of law provisions.

 

7.2       Successors
and Assigns. This Note is non-negotiable but may be assigned or transferred by the Noteholder, with the prior written
consent of the Collateral Agent (as defined below); provided that, such consent is not required if the Noteholder assigns
or transfers this Note to an Affiliate. The Borrower must provide prior written notice to the Collateral Agent of any assignment
or transfer this Note or any of its rights hereunder.

 

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

 

7.4       Amendments
and Waivers. No term of this Note may be waived, modified or amended except by an instrument in writing signed the
Noteholder and Borrower, and with the prior written consent of the Collateral Agent (as defined below). Any waiver of the terms
hereof shall be effective only in the specific instance and for the specific purpose given.

 

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

 

7.6       Security.
This Note is unsecured, provided however, upon the full satisfaction of all Borrower’s obligations to Collateral Agent and
Lenders (as defined below in paragraph 8), Borrower shall grant a security interest to Noteholder, execute all documents reasonably
required by Noteholder and take all action reasonably necessary to secure and perfect Noteholder’s security interest in
all of Borrower’s property including, but not limited to, accounts, inventory, equipment, general intangibles, intellectual
property, chattel paper, investment property, instruments, documents, letter of credit rights, insurance proceeds and real estate,
excluding agreements that by their terms may not be collaterally assigned and other property that may not be collaterally assigned
(such as intent to use trademark applications), in each case without causing a default, termination or right of termination.

 

8.        Subordination.
The indebtedness represented by this Note shall be subordinated in accordance with the provisions of that certain Subordination
Agreement dated of even date herewith (the “Subordination Agreement”)
among the Noteholder, Borrower, OXFORD FINANCE LLC, as Collateral Agent (the “Collateral Agent”)
for the lenders (“Lenders”) party to that certain Loan and Security
Agreement, dated as of December 27, 2013 (as amended, supplemented or otherwise modified from time to time, the “Loan
Agreement”) to the Collateral Agent’s and/or Lender’s Senior Debt (as
defined in the Subordination Agreement).

 

IN WITNESS WHEREOF, the Borrower has
executed this Note as of May 7, 2018.

 

	 	ACURA PHARMACEUTICALS, INC.
	 	 	 
	 	By:	/s/ Peter A. Clemens
	 	 	Peter A. Clemens
	 	 	Sr. VP & CFO

 

    	 	3Exhibit 10.36

 

Execution Version

 

SUBORDINATION AGREEMENT

 

This Subordination Agreement
(the “Agreement”) is made as of May 7, 2018, by and between JOHN SCHUTTE, an individual (the “Creditor”),
and OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street, Alexandria,
Virginia 22314, in its capacity as Collateral Agent (as hereinafter defined) for the Lenders (as hereinafter defined).

 

Recitals

 

A.           Pursuant
to a certain Loan and Security Agreement, dated as of December 27, 2013 (as amended, supplemented or otherwise modified from time
to time, the “Loan Agreement”), among OXFORD FINANCE LLC, a Delaware limited liability company with an office
located at 133 North Fairfax Street, Alexandria, Virginia 22314 (“Oxford”), as collateral agent (in such capacity,
 “Collateral Agent”), the Lenders listed on Schedule 1.1 thereof or otherwise a party thereto from time to time
including Oxford in its capacity as a Lender (each a “Lender” and collectively, the “Lenders”),
and ACURA PHARMACEUTICALS, INC., a New York corporation with offices located at 616 N. North Court, Suite 120, Palatine, Illinois
(“Parent”), and ACURA PHARMACEUTICAL TECHNOLOGIES, INC., an Indiana corporation with offices locates at 16235
State Road 17, Culver, IN 46511 (“APT”, and along with Parent, individually and collectively, jointly and severally,
 “Borrower”), Borrower has obtained certain loans and other credit accommodations from Lenders to Borrower which
are secured by assets and property of Borrower.

 

B.           Creditor
has extended loans or other credit accommodations to Borrower, and/or may extend loans or other credit accommodations to Borrower
from time to time.

 

C.           In
order to induce Lenders to extend credit to Borrower and, at any time or from time to time, at Lenders’ option, to make such
further loans, extensions of credit, or other accommodations to or for the account of Borrower, or to purchase or extend credit
upon any instrument or writing in respect of which Borrower may be liable in any capacity, or to grant such renewals or extension
of any such loan, extension of credit, purchase, or other accommodation as Lenders may deem advisable, Creditor is willing to subordinate:
(i) all of Borrower’s indebtedness to Creditor (including, without limitation, principal, premium (if any), interest, fees,
charges, expenses, costs, professional fees and expenses, and reimbursement obligations), whether presently existing or arising
in the future (the “Subordinated Debt”) to all of Borrower’s Obligations (as defined in the Loan Agreement),
including without limitation, the indebtedness to the Collateral Agent and/or the Lenders; and (ii) all of Creditor’s security
interests, if any, to all security interests in the Borrower’s property in favor of the Collateral Agent and/or the Lenders.

 

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

 

1.           Creditor
hereby acknowledges and agrees that (i) Creditor does not have any lien on or security interest in any property of Borrower, whether
now owned or hereafter acquired, including, without limitation, the “Collateral” as defined in the Loan Agreement,
(ii) Borrower is prohibited from granting to the Creditor any lien on or security interest in any property of Borrower, whether
now owned or hereafter acquired, including, without limitation, the Collateral and (iii) the Creditor shall not take any lien on
or security interest in any property of Borrower whether now owned or hereafter acquired, including without limitation, the Collateral.
In furtherance of the foregoing, Creditor hereby subordinates to the Collateral Agent and the Lenders any security interest or
lien that Creditor may have in any property of Borrower, including without limitation, the Collateral. Notwithstanding the respective
dates of attachment or perfection of any security interest of Creditor and the security interest of the Collateral Agent and the
Lenders, the lien and security interest of the Collateral Agent and the Lenders in the any property of Borrower, whether now owned
or hereafter acquired, including, without limitation, the Collateral, shall at all times be senior to the lien and security interest
of Creditor.

 

2.           All
Subordinated Debt is subordinated in right of payment to all Obligations (as defined in the Loan Agreement) of Borrower to the
Collateral Agent and the Lenders now existing or hereafter arising, together with all costs of collecting such Obligations (including
attorneys’ fees), including, without limitation, all interest accruing after the commencement by or against Borrower of any
bankruptcy, reorganization or similar proceeding, and all obligations under the Loan Agreement (the “Senior Debt”).

 

    	 	 	 

     

    

 

3.           Creditor
will not demand or receive from Borrower (and Borrower will not pay to Creditor) all or any part of the Subordinated Debt, by way
of payment, prepayment, setoff, lawsuit or otherwise, nor will Creditor exercise any remedy with respect to the Subordinated Debt
or any property of the Borrower, whether now owned or hereafter acquired, including, without limitation, the Collateral, nor will
Creditor accelerate the Subordinated Debt, or commence, or cause to commence, prosecute or participate in any administrative, legal
or equitable action against Borrower, until such time as (i) the Senior Debt is fully paid in cash, and (ii) the Lenders have no
commitment or obligation to lend any further funds to Borrower, and (iii) all financing agreements among the Collateral Agent and
the Lenders and Borrower are terminated. Nothing in the foregoing paragraph shall prohibit Creditor from converting all or any
part of the Subordinated Debt into equity securities of Borrower which do not have any call, put or other conversion features that
would obligate Borrower to pay any money (including the payment of any dividends or other distributions for so long as the Senior
Debt remains outstanding) or deliver any other securities or consideration to the holder.

 

4.           Creditor
shall hold in trust for the Collateral Agent and the Lenders and promptly deliver to the Collateral Agent in the form received
(except for endorsement or assignment by Creditor where required by the Collateral Agent), for application to the Senior Debt,
any payment, distribution, security or proceeds received by Creditor with respect to the Subordinated Debt other than in accordance
with this Agreement.

 

5.           In
the event of Borrower’s insolvency, reorganization or any case or proceeding under any bankruptcy or insolvency law or laws
relating to the relief of debtors, these provisions shall remain in full force and effect, and the Collateral Agent’s and
the Lenders’ claims against Borrower and the estate of Borrower shall be paid in full before any payment is made to Creditor.

 

6.           Until
the Senior Debt is fully paid in cash and Lenders’ arrangements to lend any funds to Borrower have been terminated, Creditor
irrevocably appoints the Collateral Agent as Creditor’s attorney-in-fact, and grants to the Collateral Agent a power of attorney
with full power of substitution, in the name of Creditor or in the name of the Collateral Agent and/or the Lenders, for the use
and benefit of the Collateral Agent and the Lenders, without notice to Creditor, to perform at the Collateral Agent’s option
the following acts in any bankruptcy, insolvency or similar proceeding involving Borrower:

 

(i)           To
file the appropriate claim or claims in respect of the Subordinated Debt on behalf of Creditor if Creditor does not do so prior
to 30 days before the expiration of the time to file claims in such proceeding and if the Collateral Agent elects, in its sole
discretion, to file such claim or claims; and

 

(ii)          To
accept or reject any plan of reorganization or arrangement on behalf of Creditor and to otherwise vote Creditor’s claims
in respect of any Subordinated Debt in any manner that the Collateral Agent deems appropriate for the enforcement of its rights
hereunder.

 

7.           Creditor
shall immediately affix a legend to the instruments evidencing the Subordinated Debt stating that the instruments are subject to
the terms of this Agreement. By the execution of this Agreement, Creditor hereby authorizes the Collateral Agent and the Lenders
to amend any financing statements filed by Creditor against Borrower as follows: “In accordance with a certain Subordination
Agreement by and among the Secured Party, the Debtor and Oxford Finance LLC, in its capacity as Collateral Agent, the Secured Party
has subordinated any security interest or lien that Secured Party may have in any property of the Debtor to the security interest
of Oxford Finance LLC and the Lenders identified therein in all assets of the Debtor, notwithstanding the respective dates of attachment
or perfection of the security interest of the Secured Party and Oxford Finance LLC and the Lenders.”

 

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8.           Neither
the Borrower nor the Creditor may amend the terms of any Subordinated Debt without the prior written consent of the Collateral
Agent and the Lenders. Without limiting the foregoing, no amendment of the documents evidencing or relating to the Subordinated
Debt shall directly or indirectly modify the provisions of this Agreement in any manner which might terminate or impair the subordination
of the Subordinated Debt or the subordination of any security interest or lien that Creditor may have in any property of Borrower.
By way of example, such instruments shall not be amended to (i) increase the rate of interest with respect to the Subordinated
Debt, or (ii) accelerate the payment of the principal or interest or any other portion of the Subordinated Debt. The Collateral
Agent and the Lenders shall have the sole and exclusive right to restrict or permit, or approve or disapprove, the sale, transfer
or other disposition of any of the property or assets of the Borrower, including, without limitation, the Collateral, except in
accordance with the terms of the Senior Debt. Upon written notice from the Collateral Agent of the Collateral Agent’s and
the Lenders’ agreement to release its lien on all or any portion of the Collateral in connection with the sale, transfer
or other disposition thereof by the Collateral Agent and the Lenders (or by Borrower with consent of the Collateral Agent and the
Lenders), Creditor shall be deemed to have also, automatically and simultaneously, released any lien or security interest on such
Collateral, and Creditor shall upon written request by the Collateral Agent, immediately take such action as shall be necessary
or appropriate to evidence and confirm such release. All proceeds resulting from any such sale, transfer or other disposition shall
be applied first to the Senior Debt until payment in full thereof, with the balance, if any, to the Subordinated Debt, or to any
other entitled party. If Creditor fails to release any lien or security interest as required hereunder, Creditor hereby appoints
the Collateral Agent as attorney in fact for Creditor with full power of substitution to release Creditor’s liens and security
interests as provided hereunder. Such power of attorney being coupled with an interest shall be irrevocable.

 

9.           All
necessary action on the part of the Creditor, its officers, directors, partners, members and shareholders, as applicable, necessary
for the authorization of this Agreement and the performance of all obligations of Creditor hereunder has been taken. This Agreement
constitutes the legal, valid and binding obligation of Creditor, enforceable against Creditor in accordance with its terms. The
execution, delivery and performance of and compliance with this Agreement by Creditor will not (i) result in any material violation
or default of any term of any of the Creditor’s charter, formation or other organizational documents (such as Articles or
Certificate of Incorporation, bylaws, partnership agreement, operating agreement, etc.) or (ii) violate any material applicable
law, rule or regulation.

 

10.         If,
at any time after payment in full of the Senior Debt any payments of the Senior Debt must be disgorged by the Collateral Agent
or the Lenders for any reason (including, without limitation, the bankruptcy of Borrower), this Agreement and the relative rights
and priorities set forth herein shall be reinstated as to all such disgorged payments as though such payments had not been made
and Creditor shall immediately pay over to the Collateral Agent all payments received with respect to the Subordinated Debt to
the extent that such payments would have been prohibited hereunder. At any time and from time to time, without notice to Creditor,
the Collateral Agent and the Lenders may take such actions with respect to the Senior Debt as the Collateral Agent and the Lenders,
in their sole discretion, may deem appropriate, including, without limitation, terminating advances to Borrower, increasing the
principal amount, extending the time of payment, increasing applicable interest rates, renewing, compromising or otherwise amending
the terms of any documents affecting the Senior Debt and any collateral securing the Senior Debt, and enforcing or failing to enforce
any rights against Borrower or any other person. No such action or inaction shall impair or otherwise affect the Collateral Agent’s
and the Lenders’ rights hereunder.

 

11.         This
Agreement shall bind any successors or assignees of Creditor and shall benefit any successors or assigns of the Collateral Agent
and the Lenders. This Agreement shall remain effective until terminated in writing by the Collateral Agent. This Agreement is solely
for the benefit of Creditor and the Collateral Agent and the Lenders and not for the benefit of Borrower or any other party. Creditor
further agree that if Borrower is in the process of refinancing any portion of the Senior Debt with a new lender, and if the Collateral
Agent and/or the Lenders makes a request of Creditor, Creditor shall agree to enter into a new subordination agreement with the
new lender on substantially the terms and conditions of this Agreement.

 

12.         Creditor
hereby agrees to execute such documents and/or take such further action as the Collateral Agent and the Lenders may at any time
or times reasonably request in order to carry out the provisions and intent of this Agreement, including, without limitation, ratifications
and confirmations of this Agreement from time to time hereafter, as and when requested by the Collateral Agent.

 

13.         This
Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall
constitute one instrument.

 

    	 	3	 

     

    

 

14.         This
Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to conflicts
of laws principles. Creditor and the Collateral Agent submit to the exclusive jurisdiction of the State and Federal courts in the
City of New York, Borough of Manhattan in any action, suit, or proceeding of any kind, against it which arises out of or by reason
of this Agreement. CREDITOR AND COLLATERAL AGENT WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN.

 

15.         This
Agreement represents the entire agreement with respect to the subject matter hereof, and supersedes all prior negotiations, agreements
and commitments. Creditor is not relying on any representations by the Collateral Agent, the Lenders or Borrower in entering into
this Agreement and Creditor has kept and will continue to keep itself fully apprised of the financial and other condition of Borrower.
This Agreement may be amended only by written instrument signed by Creditor and the Collateral Agent.

 

    	 	4	 

     

    

 

IN WITNESS WHEREOF, the undersigned have executed
this Agreement as of the date first above written.

 

	 	OXFORD FINANCE LLC, as
	 	Collateral Agent
	 	 	 
	 	By: 	/s/ Colette Featherly
	 	 	Colette Featherly
	 	 	Senior Vice President

 

    	 	5	 

     

    

 

	 	CREDITOR:
	 	 	 
	 	By:	/s/ John Schutte
	 	 	John Schutte

 

    	 	6	 

     

    

 

The undersigned approves of the terms of this
Agreement.

 

	BORROWER:	 
	 	 
	ACURA PHARMACEUTICALS, INC.	 
	 	 	 
	By: 	/s/ Peter A. Clemens	 
	 	Peter A. Clemens	 
	 	Sr. VP & CFO	 
	 	 
	BORROWER:	 
	 	 
	ACURA PHARMACEUTICAL TECHNOLOGIES, INC.	 
	 	 	 
	By:	/s/ Peter A. Clemens	 
	 	Peter A. Clemens	 
	 	Sr. VP & CFO	 

 

    	 	7

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