Document:

Exhibit 10.5

 

SUBSCRIPTION AGREEMENT

 

This Subscription
Agreement (this “Agreement”) is made as of November 21, 2016, by and among NeuroOne,
Inc., a Delaware corporation (the “Company”), and the subscribers identified on the signature
pages hereto (each, a “Subscriber” and collectively, the “Subscribers”).

 

Recitals

 

Whereas,
the Company seeks to sell a maximum of $1,500,000 (or such higher amount as the Company’s Board of Directors shall determine)
(the “Total Amount”) in Convertible Promissory Notes in the form annexed hereto as Exhibit
B (each, a “Note” and collectively, the “Notes”) and, subject to
Section 1.1 below, Warrants to purchase shares of the Company’s common stock as provided in the Note and in the form
of warrant agreement annexed hereto as Exhibit C (each, a “Warrant”
and collectively, the “Warrants”) pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended
(the “Securities Act”), and Rule 506(b) of Regulation D (“Regulation D”) as
promulgated under the Securities Act (the “Offering”); and

 

Whereas,
each Subscriber wishes to purchase a Note with the principal amount as set forth on such subscriber’s respective Signature
Page to this Agreement.

 

Now,
Therefore, in consideration of the
mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Company and the Subscribers hereby agree as follows:

 

1.             PURCHASE
OF CONVERTIBLE PROMISSORY NOTES.

 

1.1           Subscription.
Each Subscriber hereby subscribes (the “Subscription”) to purchase a Note in the amount set forth on
such Subscriber’s respective signature page hereto (the “Subscription Amount”) and a Warrant. This
Subscription shall become effective when (a) it has been duly executed by the Subscriber, (b) this Agreement has been accepted
and agreed to by the Company and (c) the Company has effectuated a Closing as set forth in Section 1.4 hereof. The minimum
Subscription Amount per Subscriber shall be $50,000. Each Subscriber shall be entitled to receive a Warrant to purchase that number
and type of shares of the Company’s capital stock equal to the number and type of shares of the Company’s capital stock
the Subscriber would receive upon conversion of the Subscriber’s Note.

 

1.2           Payment
for Subscription. Each Subscriber agrees that the Subscription Amount to the Company for the amount of the Subscriber’s
Subscription is to be made upon submission of this Agreement in the form included in these Subscription Documents (as hereinafter
defined) by check or by wire transfer to an account designated by the Company.

 

1.3           Terms
and Conditions. The Company shall have the right to accept or reject a Subscription, in whole or in part, for any reason
whatsoever, including, but not limited to, the belief of the Company that a Subscriber cannot bear the economic risk of an investment
in the Company, is not capable of evaluating the merits and risks of an investment in the Company or is not an “Accredited
Investor,” as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act, or for no reason at
all.

 

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1.4           Closing.
A closing may occur once a Subscription is received by the Company and additional closings under the Offering may take place from
time to time as subscriptions are received by the Company.

 

(a)          The
closing of on the Subscriptions for the Notes and Warrants shall occur in one or more closings (collectively, the “Closings”
and each, without distinction, a “Closing”). Each Closing shall be held remotely by the electronic exchange
of documents and funds, at 10:00 a.m. Eastern Time, or at such other time and by such means upon which the Company and the Subscribers
purchasing the Notes at such Closing shall agree.

 

(b)          The
first such Closing (the “Initial Closing”) for an aggregate amount of at least $200,000 in Principal
Amount of Notes (the “Minimum Amount”) shall take place on a date determined by the Company within 10
days of the date upon which the Company shall have received Subscriptions having an aggregate principal amount equal to the Minimum
Amount. The Notes and Warrants issued at the Initial Closing shall be documented in a Schedule of Purchasers maintained by the
Company (the “Schedule of Purchasers”).

 

(c)          At
any time after the Initial Closing, to the extent that (i) Subscribers already party to this Agreement (at the time determined,
the “Existing Subscribers”) and/or (ii) additional Subscribers (the “Additional Subscribers”)
agree by execution of a signature page hereto to purchase an aggregate amount of at least $50,000 in additional principal amount
of Notes, up to a balance of the Total Amount, the Company shall, within 10 days thereafter, hold an additional Closing with respect
to the purchase of such Notes (each, a “Subsequent Closing”); provided, however, that the aggregate purchase
price of Notes issued at the Initial Closing and all Subsequent Closings may not exceed the Total Amount unless otherwise approved
by the Company’s Board of Directors, and provided further, however, that no Closing shall occur after the five-month anniversary
of the Initial Closing (subject to a one-time extension of ninety (90) days exercisable at the sole discretion of the Company’s
Board of Directors). Other than expressly provided above in this Section 1.4(c), there shall be no conditions precedent
to a Subsequent Closing. Upon each Subsequent Closing, the Company shall amend the Schedule of Purchasers to reflect any additional
purchase by the Existing Purchasers and to add any Additional Purchasers. The terms of the transactions consummated at each Subsequent
Closing shall be identical to the terms of the transactions consummated at the Initial Closing, excepting the date of issuance
of the Notes and the Warrants shall be the date of such Subsequent Closing. The Notes issued in each Subsequent Closing shall be
issued to the Subscribers in the principal amount shown for each Subscriber with respect to such Subsequent Closing on the amended
Schedule of Purchasers.

 

(d)          At
each Closing, the Company shall deliver to the Subscribers executed Notes and Warrants in the amounts determined for each Purchaser
pursuant to this Section 1.

 

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2.             REPRESENTATIONS
AND WARRANTIES.

 

2.1           Representations
and Warranties by the Company. The Company represents and warrants to each Subscriber that:

 

(a)          Authorization.
The Company has all corporate right, power and authority to enter into this Agreement and to consummate the transactions contemplated
hereby. All corporate action on the part of the Company, its directors and stockholders necessary for the: (i) authorization execution,
delivery and performance of this Agreement by the Company; (ii) authorization, sale, issuance and delivery of the Notes and Warrants
contemplated hereby and the performance of the Company’s obligations hereunder; and (iii) authorization, issuance and delivery
of the securities issuable upon conversion of the Notes or exercise of the Warrants, has been taken. The securities issuable upon
conversion of the Notes and exercise of the Warrants will be validly issued, fully paid and nonassessable. The issuance and sale
of the securities contemplated hereby will not give rise to any preemptive rights or rights of first refusal on behalf of any person
which have not been waived in connection with this offering. The Company is not in default of any other obligations, including
any promissory notes or debentures.

 

(b)          Enforceability.
Assuming this Agreement has been duly and validly authorized, executed and delivered by the parties hereto and thereto other than
the Company, this Agreement is duly authorized, executed and delivered by the Company constitutes the legal, valid and binding
obligations of the Company enforceable against the Company in accordance with its terms, except as such enforcement is limited
by general equitable principles, or by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors rights
generally.

 

(c)          No
Violations. The execution, delivery and performance of this Agreement and the Note by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Warrants and the
securities issuable upon the conversion of the Note or exercise of the Warrants) will not (i) result in a violation of the Certificate
of Incorporation of the Company or other organizational documents of the Company, (ii) conflict with, or constitute a default (or
an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party, or (iii) result
in a violation of any law, rule, regulation, order, judgment or decree applicable to the Company by which any property or asset
of the Company is bound or affected.

 

(d)          Litigation.
The Company knows of no pending or threatened legal or governmental proceedings against the Company which could materially adversely
affect the business, property, financial condition or operations of the Company or which materially and adversely questions the
validity of this Agreement or any agreements related to the transactions contemplated hereby or the right of the Company to enter
into any of such agreements, or to consummate the transactions contemplated hereby or thereby. The Company is not a party or subject
to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality which
could materially adversely affect the business, property, financial condition or operations of the Company. There is no action,
suit, proceeding or investigation by the Company currently pending in any court or before any arbitrator or that the Company intends
to initiate.

 

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(e)          Intellectual
Property. The Company owns or possesses sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights,
trade secrets, licenses, information and other proprietary rights and processes necessary for its business as now conducted without
any known infringement of the rights of others. The Company has not received any written communications alleging that the Company
has violated or, by conducting its business as presently proposed to be conducted, would violate any of the patents, trademarks,
service marks, trade names, copyrights or trade secrets or other proprietary rights of any other person or entity.

 

(f)          Title
to Assets. The Company has good and marketable title to its properties and assets, and good title to its leasehold estates,
in each case subject to no mortgage, pledge, lien, lease, encumbrance or charge, other than (i) those resulting from taxes which
have not yet become delinquent; (ii) liens and encumbrances which do not materially detract from the value of the property subject
thereto or materially impair the operations of the Company; and (iii) those that have otherwise arisen in the ordinary course of
business. The Company is in compliance with all material terms of each lease to which it is a party or is otherwise bound.

 

(g)          Investment
Company. The Company is not an “investment company” within the meaning of such term under the Investment Company
Act of 1940, as amended, and the rules and regulations of the Securities and Exchange Commission thereunder.

 

(h)          No
Solicitation. Neither the Company nor any person participating on the Company’s behalf in the transactions contemplated
hereby has conducted any “general solicitation,” as such term is defined in Regulation D promulgated under the Securities
Act, with respect to any of the Notes being offered hereby.

 

(i)          Blue
Sky. The Company agrees to file a Form D with respect to the sale of the Notes under Regulation D of the rules and regulations
promulgated under the Securities Act. The Company shall, on or before the Initial Closing, take such action as the Company shall
reasonably determine is necessary to qualify the Notes for sale to the Subscriber pursuant to this Agreement under applicable securities
or “blue sky” laws of the states of the United States (or to obtain an exemption from such qualification).

 

(j)          No
Integration. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly or
indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would
require registration under the Securities Act of the issuance of the Notes, the Warrants or securities issuable upon conversion
of the Note or exercise of the Warrants to the Subscriber. The issuance of the Notes, the Warrants and securities issuable upon
conversion of the Note or exercise of the Warrants to the Subscriber will not be integrated with any other issuance of the Company’s
securities (past, current or future) such that the offering of the Notes or the Warrants would require registration under the Securities
Act or would require shareholder approval.

 

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(k)          The
execution, delivery and performance of this Agreement by the Company will not (i) violate any law, treaty, rule or regulation applicable
to or binding upon the Company or any of its properties or assets, or (ii) result in a breach of any contractual obligation to
which the Company is a party or by which it or any of its properties or assets is bound that would reasonably be expected to have
a material adverse effect on the ability of the Company to perform its obligations under this Agreement.

 

(l)          There
is no civil, criminal or administrative action, suit, demand, claim, hearing, notice of violation or investigation, proceeding
or demand letter pending, or to the knowledge of the Company threatened, against the Company, which if adversely determined would
reasonably be expected to have a material adverse effect on the ability of the Company to perform its obligations hereunder. There
is no civil, criminal or administrative action, suit, demand, claim, hearing, notice of violation or investigation, proceeding
or demand letter pending, or to the knowledge of the Company threatened, against or affecting the Company or any of its subsidiaries
that, if adversely determined, would reasonably be expected to have a material adverse effect on Company and its subsidiaries (taken
as a whole). There are no outstanding orders, writs, judgments, decrees, injunctions or settlements that would reasonably be expected
to have a material adverse effect on the Company and its subsidiaries (taken as a whole).

 

2.2           Survival
of Representations and Warranties. The representations and warranties of the Company shall survive the Initial Closing
for a period of 12 months and shall be fully enforceable at law or in equity against the Company and the Company’s successors
and assigns.

 

2.3           Disclaimer.
It is specifically understood and agreed by each Subscriber that the Company has not made, nor by this Agreement shall be construed
to make, directly or indirectly, explicitly or by implication, any representation, warranty, projection, assumption, promise, covenant,
opinion, recommendation or other statement of any kind or nature with respect to the anticipated profits or losses of the Company,
except as otherwise provided with this Agreement.

 

2.4           Representations
and Warranties by the Subscribers. Each Subscriber represents and warrants to the Company that:

 

(a)          The
Subscriber is acquiring the Notes and the Warrants for the Subscriber’s own account, as principal, for investment purposes
only and not with any intention to resell, distributes or otherwise dispose of the Notes or Warrants, as the case may be, in whole
or in part.

 

(b)          The
Subscriber has had an unrestricted opportunity to: (i) obtain information concerning the Offering, including the Notes, the Warrants,
the Company and its proposed and existing business and assets; and (ii) ask questions of, and receive answers from the Company
concerning the terms and conditions of the Offering and to obtain such additional information as may have been necessary to verify
the accuracy of the information contained in the this Agreement or otherwise provided.

 

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(c)          The
Subscriber is an Accredited Investor, within the meaning of Securities and Exchange Commission (“SEC”)
Rule 501 of Regulation D, and has such knowledge and experience in financial and business matters that he is capable of evaluating
the merits and risks of investing in the Company, and all information that the Subscriber has provided concerning the Subscriber,
the Subscriber’s financial position and knowledge of financial and business matters is true, correct and complete. The Subscriber
acknowledges and understands that the Company will rely on the information provided by the Subscriber in this Agreement and in
the Subscriber Questionnaire annexed hereto as Exhibit A for purposes of complying
with federal and applicable state securities laws.

 

(d)          Except
as otherwise disclosed in writing by the Subscriber to the Company, the Subscriber has not dealt with a broker in connection with
the purchase of the Notes and agrees to indemnify and hold the Company and its officers and directors harmless from any claims
for brokerage or fees in connection with the transactions contemplated herein.

 

(e)          The
Subscriber is not relying on the Company or any of its management, officers or employees with respect to any legal, investment
or tax considerations involved in the purchase, ownership and disposition of Notes or Warrants. The Subscriber has relied solely
on the advice of, or has consulted with, in regard to the legal, investment and tax considerations involved in the purchase, ownership
and disposition of Notes and Warrants, the Subscriber’s own legal counsel, business and/or investment adviser, accountant
and tax adviser.

 

(f)          The
Subscriber understands that the Notes and the Warrants, or the securities into which either of them may convert or be exercised
for, cannot be sold, assigned, transferred, exchanged, hypothecated or pledged, or otherwise disposed of or encumbered except in
accordance with the Securities Act or the Securities and Exchange Act of 1934, as amended (the “Exchange Act”),
and that no market will exist for the resale of any such securities. In addition, the Subscriber understands that the Notes, Warrants
or the securities into which they may convert, have not been registered under the Securities Act, or under any applicable state
securities or blue sky laws or the laws of any other jurisdiction, and cannot be resold unless they are so registered or unless
an exemption from registration is available. The Subscriber understands that there is no current plan to register the Notes, Warrants
or the securities into which they may convert.

 

(g)          The
Subscriber is willing and able to bear the economic and other risks of an investment in the Company for an indefinite period of
time. The Subscriber has read and understands the provisions of this Agreement.

 

(h)          The
Subscriber maintains the Subscriber’s domicile, and is not merely a transient or temporary resident, at the residence address
shown on the signature page of this Agreement.

 

(i)          The
Subscriber understands that the Company has made available to the Subscriber and the Subscriber’s accountants, attorneys
and other advisors full and complete information concerning the financial structure of the Company, and any and all data requested
by the Subscriber as a basis for estimating the potential profits and losses of the Company and the Subscriber acknowledges that
the Subscriber has either reviewed such information or has waived review of such information.

 

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(j)          The
Subscriber is not participating in the Offering as a result of or subsequent to: (i) any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media or broadcast over television or radio; (ii) any seminar or
meeting whose attendees have been invited by any general solicitation or general advertising; or (iii) any registration statement
the Company may have filed with the Securities and Exchange Commission.

 

(k)          If
the Subscriber is an entity, the Subscriber is duly organized, validly existing and in good standing under the laws of its jurisdiction
of incorporation or organization, as the case may be. The Subscriber has all requisite power and authority to own its properties,
to carry on its business as presently conducted, to enter into and perform the Subscription and the agreements, documents and instruments
executed, delivered and/or contemplated hereby (collectively, the “Subscription Documents”) to which
it is a party and to carry out the transactions contemplated hereby and thereby. The Subscription Documents are valid and binding
obligations of the Subscriber, enforceable against it in accordance with their terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, moratorium, reorganization or similar laws, from time to time in effect, which affect enforcement
of creditors’ rights generally. If applicable, the execution, delivery and performance of the Subscription Documents to which
it is a party have been duly authorized by all necessary action of the Subscriber. The execution, delivery and performance of the
Subscription Documents and the performance of any transactions contemplated by the Subscription Documents will not: (i) violate,
conflict with or result in a default (whether after the giving of notice, lapse of time or both) under any contract or obligation
to which the Subscriber is a party or by which it or its assets are bound, or any provision of its organizational documents (if
an entity), or cause the creation of any lien or encumbrance upon any of the assets of the Subscriber; (ii) violate, conflict with
or result in a default (whether after the giving of notice, lapse of time or both) under, any provision of any law, regulation
or rule, or any order of, or any restriction imposed by any court or other governmental agency applicable to the Subscriber; (iii)
require from the Subscriber any notice to, declaration or filing with, or consent or approval of any governmental authority or
other third party other than pursuant to federal or state securities or blue sky laws; or (iv) accelerate any obligation under,
or give rise to a right of termination of, any agreement, permit, license or authorization to which the Subscriber is a party or
by which it is bound.

 

(l)          The
Subscriber acknowledges and agrees that the Company intends, in the future, to raise additional funds to expand its business which
may include, without limitation, the need to: fund more rapid expansion; fund additional marketing expenditures; enhance its operating
infrastructure; hire additional personnel; respond to competitive pressures; or acquire complementary businesses or necessary technologies.

 

(m)          The
Subscriber acknowledges and agrees that the Company will have broad discretion with respect to the use of the proceeds from this
Offering, and investors will be relying on the judgment of management regarding the application of these proceeds.

 

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(n)          At
the time the Subscriber was offered the Notes and the Warrants, it was, and at the date hereof it is, and on each date on which
the Subscriber converts the Notes and exercises the Warrants the Subscriber will be, an “accredited investor” as defined
in Rule 501(a) under the Securities Act. The Subscriber hereby represents that neither the Subscriber nor any of its Rule 506(d)
Related Parties is a “bad actor” within the meaning of Rule 506(d) promulgated under the Securities Act. For purposes
of this Agreement, “Rule 506(d) Related Party” shall mean a person or entity covered by the “Bad
Actor disqualification” provision of Rule 506(d) of the Securities Act.

 

(o)          The
Subscriber understands the various risks of an investment in the Company, and has carefully reviewed the various risk factors described
in Exhibit D attached hereto.

 

3.             COVENANTS
OF THE SUBSCRIBERS.

 

3.1           Right
of First Offer. In the event that a Subscriber shall elect to sell all or any portion of a Note or Warrant purchased
by such Subscriber to any person or entity other than an Affiliate (as hereinafter defined), such Subscriber shall first give written
notice thereof to the Company, which notice shall set forth the original principal amount of such Note and the Warrant to be sold
and the sales price. For a period of 15 days after receipt of such notice, the Company shall have the right to purchase all or
any portion of such Note and Warrant at the so specified sales price, exercisable by giving written notice thereof to such Subscriber
within such 15-day period. In the event the Company fails to timely exercise such right, such Subscriber may, subject to Section
3.2 hereof, offer and sell such Note and Warrant at the same or a higher price for a period of 180 days after expiration of
such 15-day time period. After expiration of such 180-day period, such Subscriber shall not re-offer any of such Note or Warrant
without first allowing the Company to exercise the right herein granted.

 

3.2           Right
of First Refusal. In the event that any Subscriber shall receive and accept a bona fide offer (each, an “Offer”)
from any person or entity (other than an Affiliate (as hereinafter defined) or another original holder of Notes) to purchase all
or any portion of the Notes and Warrants of such Subscriber, such Subscriber shall give written notice thereof to the Company,
which notice shall be accompanied by a copy of such offer or a detailed description of the terms thereof (each, an “Offer
Notice”). For a period of 15 days after receipt of the Offer Notice, the Company may elect to purchase the Notes
and Warrants subject to the Offer on the same terms as are described in the Offer Notice by giving notice of such election to such
Subscriber within such 15-day period. In the event the Company fails to timely exercise such right, the Subscriber may offer and
sell such Notes and Warrants to the party delivering the Offer on the Offer Terms.

 

For purposes of this
Agreement, the term “Affiliate” shall mean: (a) for purposes of any Subscriber that is an individual,
(i) the ancestors, descendants, spouse or private, tax-exempt foundation of such Subscriber, or (ii) a trust, partnership, limited
liability company, custodianship or other fiduciary account for the benefit of such Subscriber and/or such private foundation,
ancestors, descendants or spouse; (b) for purposes of any Subscriber that is not an individual, (i) any person controlled by, or
under the control of, the Subscriber, or (ii) any member, stockholder, partner or other equity holder of such Subscriber that is
an “accredited investor”, as that term is defined in Rule 501 of Regulation D, as promulgated under the Securities
Act.

 

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3.3           Injunctive
Relief. Each Subscriber acknowledges and agrees that any breach of the covenants contained in this Section 3
shall constitute a material breach of this Agreement and that damages would be an inadequate remedy in the event of such breach.
Accordingly, such Subscriber agrees that the Company shall be entitled to the remedy of specific performance in the event of any
such breach and hereby consents to, and waives any right to contest, the imposition of any injunction by a court of competent jurisdiction
requested by the Company to enforce specific performance of such covenants. Each Subscriber further agrees that should such Subscriber
breach any of such covenants and force the Company to obtain an injunction to specifically enforce such covenants, such Subscriber
shall reimburse the Company for all costs incurred by the Company in obtaining such injunction, including, without limitation,
court costs and reasonable attorneys’ fees and disbursements, all promptly upon receipt of an invoice therefor.

 

3.4           Termination
of Rights. The obligations of the Subscribers, and the rights of the Company, under this Section 3 shall terminate
upon the effective date of a registration statement for a firmly underwritten initial public offering of the Company’s capital
stock under the Securities Act.

 

4.             MISCELLANEOUS.

 

4.1           Public
Company Transaction. The Company agrees to use commercially reasonable efforts to effect a reverse merger transaction
with a public company within three months of the Closing at which time the Company has sold and issued at least $750,000 in aggregate
original principal amount of the Notes.

 

4.2           Indemnification.

 

(a)          The
Subscriber will, severally and not jointly with any other Subscribers, indemnify and hold harmless the Company and its officers,
directors, members, shareholders, partners, representatives, employees and agents, successors and assigns against any losses, obligations,
claims, damages, liabilities, contingencies, judgments, fines, penalties, charges, costs (including, without limitation, court
costs, reasonable attorneys’ fees and costs of defense and investigation), amounts paid in settlement or expenses, joint
or several (collectively, “Company Claims”), reasonably incurred in investigating, preparing or defending
any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party
is or may be a party thereto, to which any of them may become subject insofar as such Company Claims (or actions or proceedings,
whether commenced or threatened, in respect thereof): (i) arise out of or are based upon any untrue statement or untrue statement
of a material fact made by the Subscriber and contained in this Agreement; or (ii) arise out of or are based upon any breach by
the Subscriber of any representation, warranty, or agreement made by the Subscriber contained herein; provided, however, and notwithstanding
anything to the contrary, in no event shall the liability of the Subscriber pursuant to this Section 4.2 exceed the amount
of the Note that the Subscriber purchases pursuant to this Agreement.

 

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(b)          The
Company will indemnify and hold harmless each Subscriber and its officers, directors, members, shareholders, partners, representatives,
employees and agents, successors and assigns, and each other person, if any, who controls such Subscriber within the meaning of
the Securities Act against any losses, obligations, claims, damages, liabilities, contingencies, judgments, fines, penalties, charges,
costs (including, without limitation, court costs, reasonable attorneys’ fees and costs of defense and investigation), amounts
paid in settlement or expenses, joint or several (collectively, “Subscriber Claims”), reasonably incurred
in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing
by or before any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened,
whether or not an indemnified party is or may be a party thereto, to which any of them may become subject insofar as such Subscriber
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any
blue sky application or other document executed by the Company specifically for that purpose or based upon written information
furnished by the Company filed in any state or other jurisdiction in order to qualify any or all of the Notes (or securities issuable
upon conversion of the Notes) under the securities laws thereof (any such application, document or information herein called a
“Blue Sky Application”); (ii) any untrue statement or alleged untrue statement of a material fact made
by the Company in this Agreement; (iii) arise out of or are based upon any breach by the Company of any representation, warranty,
or agreement made by it contained herein or in the Note; or (iv) any violation by the Company or its agents of any rule or regulation
promulgated under the Securities Act applicable to the Company or its agents and relating to action or inaction required of the
Company in connection with such registration; and will reimburse such Subscriber, and each such officer, director or member and
each such controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending
any such Claim or action; provided, however, that the Company will not be liable in any such case if and to the extent that any
such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission
or alleged omission so made in conformity with information furnished by such Subscriber or any such controlling person to the Company.

 

4.3           Addresses
and Notices. All notices, demands, consents, requests, instructions and other communications to be given or delivered
or permitted under or by reason of the provisions of this Agreement or in connection with the transactions contemplated hereby
shall be in writing and shall be deemed to be delivered and received by the intended recipient as follows: (i) if personally delivered,
on the business day of such delivery (as evidenced by the receipt of the personal delivery service); (ii) if mailed certified or
registered mail return receipt requested, two (2) business days after being mailed; or (iii) if delivered by overnight courier
(with all charges having been prepaid), on the business day of such delivery (as evidenced by the receipt of the overnight courier
service of recognized standing). If any notice, demand, consent, request, instruction or other communication cannot be delivered
because of a changed address of which no notice was given (in accordance with this Section 4.3, or the refusal to accept
same, the notice, demand, consent, request, instruction or other communication shall be deemed received on the second business
day the notice is sent (as evidenced by a sworn affidavit of the sender). All such notices, demands, consents, requests, instructions
and other communications will be sent to the following addresses or facsimile numbers as applicable:

 

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	If to the Company to:	 	NeuroOne, Inc. 
	 	 	14605 Woodhaven Road
	 	 	Minnetonka, MN 55345
	 	 	Attention: Dave Rosa
	 	 	 
	With copies to:	 	Honigman Miller Schwartz and Cohn LLP
	 	 	350 East Michigan Avenue
	 	 	Suite 300
	 	 	Kalamazoo, MI 49007
	 	 	Attention: Phillip D. Torrence, Esq. 

 

If to the Subscriber, to the address set
forth on the signature page annexed hereto.

 

Any such person may by notice given in
accordance with this Section 4.3 to the other parties hereto designate another address or person for receipt by such person
of notices hereunder.

 

4.4           Titles
and Captions. All Article and Section titles or captions in this Agreement are for convenience only. They shall not
be deemed part of this Agreement and do not in any way define, limit, extend or describe the scope or intent of any provisions
hereof.

 

4.5           Assignability.
This Agreement is not transferable or assignable by the undersigned.

 

4.6           Pronouns
and Plurals. Whenever the context may require, any pronoun used herein shall include the corresponding masculine, feminine
or neuter forms. The singular form of nouns, pronouns and verbs shall include the plural and vice versa.

 

4.7           Further
Action. The parties shall execute and deliver all documents, provide all information and take or forbear from taking
all such action as may be necessary or appropriate to achieve the purposes of this Agreement. Each party shall bear its own expenses
in connection therewith.

 

4.8           Applicable
Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Delaware without
regard to its conflict of law rules.

 

4.9           Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs,
administrators, successors, legal representatives, personal representatives, permitted transferees and permitted assigns. If the
undersigned is more than one person, the obligation of the undersigned shall be joint and several and the agreements, representations,
warranties and acknowledgments herein contained shall be deemed to be made by and be binding upon each such person and such person’s
heirs, executors, administrators and successors.

 

    	 	11	 

     

    

 

4.10         Integration.
This Agreement, together with the remainder of the Subscription Documents of which this Agreement forms a part, constitutes the
entire agreement among the parties pertaining to the subject matter hereof and supersedes and replaces all prior and contemporaneous
agreements and understandings, whether written or oral, pertaining thereto. No covenant, representation or condition not expressed
in this Agreement shall affect or be deemed to interpret, change or restrict the express provisions hereof.

 

4.11         Amendment.
 This Agreement, the Notes and the Warrants may be amended only with the written consent of the Company and the holders
of a majority of the aggregate principal amount of the Notes (a “Majority in Interest”). The conditions
or observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively
or prospectively) only by written instrument and with respect to conditions or performance obligations benefiting the Company,
by the Company, and with respect to conditions or performance obligations benefiting the Subscribers, only with the consent of
a Majority in Interest. Any amendment or waiver effected in accordance with this Section 4.11 shall be binding on all holders
of the Notes, even if they do not execute such amendment, consent or waiver, as the case may be.

 

4.12         Creditors.
 None of the provisions of this Agreement shall be for the benefit of or enforceable by creditors of any party.

 

4.13         Waiver.
 No failure by any party to insist upon the strict performance of any covenant, agreement, term or condition of this
Agreement or to exercise any right or remedy available upon a breach thereof shall constitute a waiver of any such breach or of
such or any other covenant, agreement, term or condition.

 

4.14         Rights
and Remedies. The rights and remedies of each of the parties hereunder shall be mutually exclusive, and the implementation
of one or more of the provisions of this Agreement shall not preclude the implementation of any other provision.

 

4.15         Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement
and all of which, when taken together, will be deemed to constitute one and the same agreement. In the event that any signature
is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create
a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect
as if such facsimile or “.pdf” signature page were an original thereof.

 

SIGNATURES
ON THE FOLLOWING PAGES

 

    	 	12	 

     

    

 

In
Witness Whereof, the undersigned has executed this Agreement on this ____ day of _______________, 2016.

 

	Signature of Subscriber:	 	 
	 	 	 
	By:	 	 	 
	Name:	 	 	Print Name of Subscriber
	Title:	 	 	 

 

	 	 	 
	Social Security Number(s) or EIN	 	 
	 	 	 
	 	 	 
	Mailing Address of Subscriber(s)	 	Residence of Subscriber(s)
	 	 	 
	 	 	 
	Street	 	Street
	 	 	 
	 	 	 
	City        State       Zip Code	 	City       State       Zip Code

 

	If Joint Ownership, check one:
	 
	 ̈ Joint Tenants with Right of Survivorship
	 ̈ Tenants-in-Common
	 ̈ Tenants by the Entirety
	 ̈ Community Property
	 ̈ Other (specify): 	 	 

 

	 	$_____________________________________
	 	Aggregate Subscription Amount 
	 	 
	 	Method of Payment:   ̈ Wire Transfer    ̈ Check

 

FOREGOING SUBSCRIPTION ACCEPTED:

 

NeuroOne,
Inc.

 

	By:	 	 
	Name:	Dave A. Rosa	 
	Title:	CEO 	 

 

Signature
Page to Subscription Agreement

 

     

     

    

 

Exhibit
A 

 

NEUROONE, INC.

 

SUBSCRIBER QUESTIONNAIRE

 

NeuroOne, Inc.

14605 Woodhaven Road

Minnetonka, MN 55345

 

Gentlemen:

 

The information contained
herein is being furnished to NeuroOne, Inc. (the “Company”) in order for the Company to determine whether
the undersigned’s subscription for Convertible Promissory Notes (the “Notes”) and Warrants (the
“Warrants”) therein may be accepted pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended
(the “Securities Act”) and Regulation D promulgated thereunder (“Regulation D”).
The undersigned understands that (i) the Company will rely upon the following information for purposes of complying with Federal
and applicable state securities laws, (ii) none of the Notes, the Warrants or any securities issuable thereunder will be registered
under the Securities Act in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act and
Regulation D, and (iii) this questionnaire is not an offer to sell nor the solicitation of an offer to buy any Notes, Warrants
or any other securities, to the undersigned.

 

The following representations
and information are furnished herewith:

 

1.             Qualification
as an Accredited Investor. Please check the categories applicable to you indicating the basis upon which you qualify
as an Accredited Investor for purposes of the Securities Act and Regulation D thereunder.

 

	 ̈	Individual with Net Worth In Excess of $1,000,000.  A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000. (Explanation: In calculating your net worth, you must exclude the value of your primary residence. This means you must exclude both the equity in your primary residence and any mortgage or other debt secured by your primary residence up to the fair market value of your primary residence; provided, however, that any indebtedness secured by your primary residence that (i) you have incurred in the 60 day period prior to the date of your subscription to the Company or (ii) is in excess of the fair market value of your primary residence should be considered a liability and deducted from your aggregate net worth. In calculating your net worth, you may include your equity in personal property and real estate (excluding your primary residence), cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate (excluding your primary residence) should be based on the fair market value of such property less debt secured by such property.)
	 	 
	 ̈	Individual with a $200,000 Individual Annual Income.  A natural person (not an entity) who had an individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

 

    	 	A-1	 

     

    

 

	 ̈	Individual with a $300,000 Joint Annual Income.  A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.
	 	 
	 ̈	Corporations or Partnerships.  A corporation, partnership, or similar entity that has in excess of $5,000,000 of assets and was not formed for the specific purpose of acquiring Notes and Warrants in the Company.
	 	 
	 ̈	Revocable Trust.  A trust that is revocable by its grantors and each of whose grantors is an accredited investor.  (If this category is checked, please also check the additional category or categories under which the grantor qualifies as an accredited investor.)
	 	 
	 ̈	Irrevocable Trust.  A trust (other than an ERISA plan) that (i) is not revocable by its grantors, (ii) has in excess of $5,000,000 of assets, (iii) was not formed for the specific purpose of acquiring Notes and Warrants, and (iv) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Company.
	 	 
	 ̈	IRA or Similar Benefit Plan.  An IRA, Keogh or similar benefit plan that covers a natural person who is an accredited investor. (If this category is checked, please also check the additional category or categories under which the natural person covered by the IRA or plan qualifies as an accredited investor.)
	 	 
	 ̈	Participant-Directed Employee Benefit Plan Account.  A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an accredited investor.  (If this category is checked, please also check the additional category or categories under which the participant qualifies as an accredited investor.)
	 	 
	 ̈	Other ERISA Plan.  An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5,000,000 or for which investment decisions (including the decision to purchase an Interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.
	 	 
	 ̈	Government Benefit Plan.  A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5,000,000.

 

    	 	A-2	 

     

    

 

	 ̈	Non-Profit Entity.  An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5,000,000 (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.
	 	 
	 ̈	Other Institutional Investor (check one).  
	 	 
	 	 ̈	A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity);
	 	 ̈	A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity;
	 	 ̈	A broker-dealer registered under the Securities Exchange Act of 1934, as amended;
	 	 ̈	An insurance company, as defined in section 2(13) of the Securities Act;  
	 	 ̈	A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act;  
	 	 ̈	A small business investment company licensed under Section 301(c) or (d) of the Small Business Investment Act of 1958, as amended; or
	 	 ̈	A “private business development company” as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended.

 

	 ̈	Executive Officer or Director.  A natural person who is an executive officer, director or managing member of the Company.
	 	 
	 ̈	Entity Owned Entirely By Accredited Investors.  A corporation, partnership, private investment company or similar entity each of whose equity owners is an accredited investor.  (If this category is checked, please also check the additional category or categories under which each equity owner qualifies as an accredited investor.)
	 	 
	 ̈	I do not qualify for any of the above. 

 

2.             Representations
and Warranties by Limited Liability Companies, Corporations, Partnerships, Trusts and Estates. If the Subscriber is
a corporation, partnership, limited liability company or trust, the Subscriber and each person signing on behalf of Subscriber
certifies that the following responses are accurate and complete:

 

Was the undersigned organized
or reorganized for the specific purpose, or for the purpose among other purposes, of acquiring interests in the Company?

 

	Yes	 ̈	No	 ̈

 

Will the Subscriber,
at any time, invest more than 40% of Subscriber’s assets in the Company?

 

	Yes	 ̈	No	 ̈

 

    	 	A-3	 

     

    

 

Under the Subscribing
entity’s governing documents and in practice, are the Subscribing entity’s investment decisions based on the investment
objectives of the Subscribing entity and its owners generally and not on the particular investment objectives of any one or more
of its individual owners?

 

	Yes	 ̈	No	 ̈

 

Does any individual shareholder,
partner or member or group of shareholders, partners or members of the undersigned have the right to elect whether or not to participate
in the investment of the Subscribing entity in the Company or to determine the level of participation of such partner or group
therein?

 

	Yes	 ̈	No	 ̈

 

Is the Subscribing entity
authorized and qualified to become a note holder of the Company and does the Subscribing entity and the undersigned hereto further
represent and warrant that such signatory has been duly authorized by the Subscribing entity to execute the Subscription Documents?

 

	Yes	 ̈	No	 ̈

 

Is the undersigned a
private investment company which is not registered under the Investment Company Act, as amended, in reliance on Section 3(c)(1)
or Section 3(c)(7) thereof?

 

	Yes	 ̈	No	 ̈

 

3.            Taxpayer
ID Number; No Backup Withholding; Not a Foreign Person or Entity. If Subscriber is a “non-U.S. person or entity,”
allocations of Company income may be subject to withholding and taxation under the Internal Revenue Code, as amended (“Code”).
Subscriber acknowledges that it may be required to file U.S. income tax returns. If the Subscriber is a foreign corporation, foreign
partnership, foreign trust or foreign estate (as those terms are defined in the Code and the regulations thereunder), please contact
the Company. The Subscriber understands that the information contained in this item may be disclosed to the Internal Revenue Service
by the Company and that any false statement contained in this item could be punished by fine, imprisonment or both.

 

Subscriber
certifies that the taxpayer identification number being supplied herewith by Subscriber is Subscriber’s correct taxpayer
identification number and that Subscriber is not subject to backup withholding under Section 3406 of the Code and the regulations
thereunder?

 

	Yes	 ̈	No	 ̈

 

    	 	A-4	 

     

    

 

Subscriber
certifies that Subscriber is not a “Non-U.S. person” or, if an entity, that Subscribing entity is not a foreign corporation,
foreign partnership, foreign trust or foreign estate, as those terms are defined the Code and the regulations thereunder.

 

	Yes	 ̈	No	 ̈

 

If Subscriber’s
non-foreign status changes or if any other information in this item changes, Subscriber agrees to notify the Company within 30
days thereafter.

 

	Yes	 ̈	No	 ̈

 

To the best of my information
and belief, the above information supplied by me is true and correct in all respects.

 

	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Date:	 

 

    	 	A-5	 

     

    

 

Exhibit
B

 

CONVERTIBLE PROMISSORY NOTE

 

[See attached]

 

    	 	B-1	 

     

    

 

Exhibit
C

 

WARRANT

 

[See attached]

 

    	 	C-1	 

     

    

 

Exhibit
D

 

RISK FACTORS

 

The risks set forth
below are not the only ones facing our Company. Additional risks and uncertainties may exist that could also adversely affect our
business, financial condition, prospects and/or operations. If any of the following or other risks actually materialize, our business,
financial condition, prospects and/or operations could suffer. In such event, the value of our securities could decline.

 

Risks Related to Our Business

 

We have a limited operating history upon which investors
can evaluate our future prospects.

 

We have a limited operating
history upon which an evaluation of its business plan or performance and prospects can be made. The business and prospects of the
Company must be considered in the light of the potential problems, delays, uncertainties and complications encountered in connection
with a newly established business and creating a new industry. The risks include, but are not limited to, the possibility that
we will not be able to develop functional and scalable products and services, or that although functional and scalable, our products
and services will not be economical to market; that our competitors hold proprietary rights that preclude us from marketing such
products; that our competitors market a superior or equivalent product; that we are not able to upgrade and enhance our technologies
and products to accommodate new features and expanded service offerings; or the failure to receive necessary regulatory clearances
for our products. To successfully introduce and market our products at a profit, we must establish brand name recognition and competitive
advantages for our products. There are no assurances that we can successfully address these challenges. If it is unsuccessful,
we and our business, financial condition and operating results could be materially and adversely affected.

 

The current and future
expense levels are based largely on estimates of planned operations and future revenues rather than experience. It is difficult
to accurately forecast future revenues because our business is new and our market has not been developed. If our forecasts prove
incorrect, the business, operating results and financial condition of the Company will be materially and adversely affected. Moreover,
we may be unable to adjust our spending in a timely manner to compensate for any unanticipated reduction in revenue. As a result,
any significant reduction in revenues would immediately and adversely affect our business, financial condition and operating results.

 

We have had no revenues since inception,
and we cannot predict when we will achieve profitability.

 

We have not been profitable and cannot predict when we will
achieve profitability. We have experienced net losses and have had no revenues since our and our predecessor’s inception.
We do not anticipate generating significant revenues until we successfully develop, commercialize and sell our existing and proposed
products, of which we can give no assurance. We are unable to determine when we will generate significant revenues, if any, from
the sale of any of such products.

 

    	 	D-1	 

     

    

 

We cannot predict when
we will achieve profitability, if ever. Our inability to become profitable may force us to curtail or temporarily discontinue our
research and development programs and our day-to-day operations. Furthermore, there can be no assurance that profitability, if
achieved, can be sustained on an ongoing basis.

 

We may never complete the development
of our proposed products into marketable products.

 

We do not know when
or whether we will successfully complete the development of our proposed or contemplated products, for any of our target markets.
We continue to seek to improve our technologies before we are able to produce a commercially viable product. Failure to improve
on any of our technologies could delay or prevent their successful development for any of our target markets.

 

Developing any technology into a marketable
product is a risky, time consuming and expensive process. You should anticipate that we will encounter setbacks, discrepancies
requiring time consuming and costly redesigns and changes and that there is the possibility of outright failure.

 

We may not meet
our product development and commercialization milestones.

 

We have established
milestones, based upon our expectations regarding our technologies at that time, which we use to assess our progress toward developing
our products. These milestones relate to technology and design improvements as well as to dates for achieving development goals.
If our products exhibit technical defects or are unable to meet cost or performance goals, our commercialization schedule could
be delayed and potential purchasers of our initial commercial products may decline to purchase such products or may opt to pursue
alternative products.

 

We may also experience
shortages of electrodes, monitors, sensors or bases due to manufacturing difficulties. Multiple suppliers provide the components
used in our devices. Our manufacturing operations could be disrupted by fire, earthquake or other natural disaster, a labor-related
disruption, failure in supply or other logistical channels, electrical outages or other reasons. If there were a disruption to
manufacturing facilities, we would be unable to manufacture devices until we have restored and re-qualified our manufacturing capability
or developed alternative manufacturing facilities.

 

We can give no assurance that our commercialization
schedule will be met as we further develop our proposed products.

 

Our business is dependent upon clinicians
utilizing our intracranial electrophysiology recording and stimulation electrodes; if we fail in convincing clinicians in utilizing
our solution, our revenue could fail to grow and could decrease.

 

The success of our
planned business is expected to be dependent upon clinicians utilizing our intracranial electrophysiology recording and stimulation
electrodes. The utilization of our solution by clinicians will be directly influenced by a number of factors, including:

 

    	 	D-2	 

     

    

 

		•	the ability of the clinicians with whom we work to obtain sufficient reimbursement and be paid
in a timely manner for the professional services they provide in connection with the use of our solutions;

 

		•	continuing to establish ourselves as intracranial electrophysiology recording and stimulation electrode
company;

 

		•	our demonstrating that our proposed products are reliable and supported by us in the field;

 

		•	supplying and servicing sufficient quantities of products directly or through marketing alliances;
and

 

		•	pricing products competitively in light of the current macroeconomic environment, which, particularly
in the case of the medical device industry, are becoming increasingly price sensitive.

 

If we are unable to educate physicians
and other clinicians regarding the benefits of our solutions and unable to drive clinician utilization, revenue from the provision
of our solutions could fail to grow or even potentially decrease.

 

We are subject
to extensive governmental regulations relating to the manufacturing, labeling and marketing of our products.

 

Our
medical technology products and operations are subject to regulation by the FDA and other governmental authorities both inside
and outside of the United States. These agencies enforce laws and regulations that govern the development, testing, manufacturing,
labeling, advertising, marketing and distribution, and market surveillance of our medical products.

 

Under the United States
Federal Food, Drug, and Cosmetic Act, medical devices are classified into one of three classes — Class I, Class II or Class
III — depending on the degree of risk associated with each medical device and the extent of control needed to ensure safety
and effectiveness. We believe our current or planned products will be Class I (with respect to software) or Class II (with respect
to hardware) medical devices. Class I devices are those for which safety and effectiveness can be assured by adherence to a set
of guidelines, which include compliance with the applicable portions of the FDA’s Quality System Regulation, facility registration
and product listing, reporting of adverse medical events, and appropriate, truthful and non-misleading labeling, advertising and
promotional materials. Class II devices are subject to additional controls, including full applicability of the Quality System
Regulations, and requirements for 510(k) pre-market notification.

 

In addition to regulations
in the United States, we will be subject to a variety of foreign regulations governing clinical trials and commercial sales and
distribution of our products in foreign countries. Whether or not we obtain FDA approval for a product, we must obtain approval
of a product by the comparable regulatory authorities of foreign countries before we can commence clinical trials or marketing
of the product in those countries. The approval process varies from country to country, and the time may be longer or shorter than
that required for FDA approval. The requirements governing the conduct of clinical trials, product licensing, pricing and reimbursement
vary greatly from country to country.

 

    	 	D-3	 

     

    

 

The policies of the
FDA and foreign regulatory authorities may change and additional government regulations may be enacted which could prevent or delay
regulatory approval of our products and could also increase the cost of regulatory compliance. We cannot predict the likelihood,
nature or extent of adverse governmental regulation that might arise from future legislative or administrative action, either in
the United States or abroad.

 

Following the introduction
of a product, these agencies will also periodically review our design and manufacturing processes and product performance. The
process of complying with the applicable good manufacturing practices, adverse event reporting, clinical trial and other requirements
can be costly and time consuming, and could delay or prevent the production, manufacturing or sale of our products. In addition,
if we fail to comply with applicable regulatory requirements, it could result in fines, delays or suspensions of regulatory clearances,
closure of manufacturing sites, seizures or recalls of products and damage to our reputation. Recent changes in enforcement practice
by the FDA and other agencies have resulted in increased enforcement activity, which increases the compliance risk for the Company
and other companies in our industry. In addition, governmental agencies may impose new requirements regarding registration, labeling
or prohibited materials that may require us to modify or re-register products already on the market or otherwise impact our ability
to market our products in those countries. Once clearance or approval has been obtained for a product, there is an obligation to
ensure that all applicable FDA and other regulatory requirements continue to be met.

 

We may be subject to penalties and
may be precluded from marketing our products if we fail to comply with extensive governmental regulations.

 

We believe that our
proposed products are categorized as Class I (with respect to software) or Class II (with respect to hardware). Class I devices
are those for which safety and effectiveness can be assured by adherence to a set of guidelines, which include compliance with
the applicable portions of the FDA’s Quality System Regulation, facility registration and product listing, reporting of adverse
medical events, and appropriate, truthful and non-misleading labeling, advertising, and promotional materials. However, the FDA
has not made any determination about whether our specific medical products are Class I or Class II medical devices. While such
a determination is not necessary in order for us to list a Class I device with the FDA and bring that device to the U.S. market,
we may decide to get clarification from the FDA prior to introducing a product into the market. From time to time, the FDA may
disagree with the classification of a new Class I medical device and require the manufacturer of that device to apply for approval
as a Class II or Class III medical device. In the event that the FDA determines that our Class I medical products should be classified
as Class II or Class III medical devices, we could be precluded from marketing the devices for clinical use within the United States
for months, years or longer, depending on the specific change the classification. Reclassification of our Class I medical products
as Class II or Class III medical devices could significantly increase our regulatory costs, including the timing and expense associated
with required clinical trials and other costs.

 

    	 	D-4	 

     

    

 

The
FDA and non-U.S. regulatory authorities require that our products be manufactured according to rigorous standards. These regulatory
requirements may significantly increase our production costs and may even prevent us from making our products in amounts sufficient
to meet market demand. If we change our approved manufacturing process, the FDA may need to review the process before it may be
used. Failure to comply with applicable regulatory requirements discussed could subject us to enforcement actions, including warning
letters, fines, injunctions and civil penalties, recall or seizure of our products, operating restrictions, partial suspension
or total shutdown of our production, and criminal prosecution.

 

Federal,
state and non-U.S. regulations regarding the manufacture and sale of medical devices are subject to future changes. The complexity,
timeframes and costs associated with obtaining marketing clearances are unknown. Although we cannot predict the impact, if any,
these changes might have on our business, the impact could be material.

 

Injuries
caused by the malfunction or misuse of recording and stimulation devices, even where such malfunction or misuse occurs with respect
to one of our competitor’s products, could cause regulatory agencies to implement more conservative regulations on the industry,
which could significantly increase our operating costs.

 

If we are
not able to both obtain and maintain adequate levels of third-party reimbursement for our products, it would have a material adverse
effect on our business.

 

Healthcare
providers and related facilities are generally reimbursed for their services through payment systems managed by various governmental
agencies worldwide, private insurance companies, and managed care organizations. The manner and level of reimbursement in any given
case may depend on the site of care, the procedure(s) performed, the final patient diagnosis, the device(s) utilized, available
budget, the efficacy, safety, performance and cost-effectiveness of our planned products and services, or a combination of these
or other factors, and coverage and payment levels are determined at each payer’s discretion. The coverage policies and reimbursement
levels of these third-party payers may impact the decisions of healthcare providers and facilities regarding which medical products
they purchase and the prices they are willing to pay for those products. Thus, changes in reimbursement levels or methods may either
positively or negatively impact sales of our products.

 

We
have no direct control over payer decision-making with respect to coverage and payment levels for our medical device products.
Additionally, we expect many payers to continue to explore cost-containment strategies (e.g., comparative and cost-effectiveness
analyses, so-called “pay-for-performance” programs implemented by various public and private payers, and expansion
of payment bundling schemes such as Accountable Care Organizations, and other such methods that shift medical cost risk to providers)
that may potentially impact coverage and/or payment levels for our current products or products we develop.

 

The
ability of physicians and other providers to successfully utilize our recording and stimulation electrodes and successfully allow
payors to reimburse for the physicians’ technical and professional fees is critical to our business because physicians and
their patients will select solutions other than ours in the event that payors refuse to adequately reimburse our technical fees
and physicians’ professional fees.

 

    	 	D-5	 

     

    

 

Changes
in reimbursement practices of third-party payers could affect the demand for our products and the prices at which they are sold.

 

The
sales of our proposed products could depend, in part, on the extent to which healthcare providers and facilities or individual
users are reimbursed by government authorities, private insurers and other third-party payers for the costs of our products or
the services performed with our products. The coverage policies and reimbursement levels of third-party payers, which can vary
among public and private sources and by country, may affect which products customers’ purchase and the prices they are willing
to pay for those products in a particular jurisdiction. Reimbursement rates can also affect the acceptance rate of new technologies.
Legislative or administrative reforms to reimbursement systems in the United States or abroad, or changes in reimbursement rates
by private payers, could significantly reduce reimbursement for procedures using the Company’s products or result in denial
of reimbursement for those products, which would adversely affect customer demand or the price customers may be willing to pay
for such products.

 

We may experience
difficulty in obtaining reimbursement for our services from commercial payors that consider our technology to be experimental and
investigational, which would adversely affect our revenue and operating results.

 

Many
commercial payors refuse to enter into contracts to reimburse the fees associated with medical devices or services that such payors
determine to be “experimental and investigational.” Commercial payors typically label medical devices or services as
“experimental and investigational” until such devices or services have demonstrated product superiority evidenced by
a randomized clinical trial.

 

If
commercial payors decide not reimburse physicians or providers for their services during the utilization of our solutions, our
revenue could fail to grow and could decrease.

 

Reimbursement
by Medicare is highly regulated and subject to change; our failure to comply with applicable regulations, could decrease our expected
revenue and may subject us to penalties or have an adverse impact on our business.

 

The
Medicare program is administered by CMS, which imposes extensive and detailed requirements on medical services providers, including,
but not limited to, rules that govern how we structure our relationships with physicians, and how and where we provide our solutions.
Our failure to comply with applicable Medicare rules could result in discontinuing the ability for physicians to receive reimbursement
as they will likely utilize our recording and stimulation electrodes under the Medicare payment program, civil monetary penalties,
and/or criminal penalties, any of which could have a material adverse effect on our business and revenues.

 

Consolidation
of commercial payors could result in payors eliminating coverage of recording and stimulation electrode solutions or reducing reimbursement
rates.

 

When
payors combine their operations, the combined company may elect to reimburse clinicians for our services at the lowest rate paid
by any of the participants in the consolidation. If one of the payors participating in the consolidation does not reimburse for
these services at all, the combined company may elect not to reimburse at any rate. Reimbursement rates tend to be lower for larger
payors. As a result, as payors consolidate, our expected average reimbursement rate may decline.

 

    	 	D-6	 

     

    

 

Product
defects could adversely affect the results of our operations.

 

The
design, manufacture and marketing of our products involve certain inherent risks. Manufacturing or design defects, unanticipated
use of our products, or inadequate disclosure of risks relating to the use of our products can lead to injury or other adverse
events. These events could lead to recalls or safety alerts relating to our products (either voluntary or required by the FDA or
similar governmental authorities in other countries), and could result, in certain cases, in the removal of a product from the
market. A recall could result in significant costs, as well as negative publicity and damage to our reputation that could reduce
demand for our products. Personal injuries relating to the use of our products could also result in product liability claims being
brought against us. In some circumstances, such adverse events could also cause delays in new product approvals.

 

We could
be exposed to significant liability claims if we are unable to obtain insurance at acceptable costs and adequate levels or otherwise
protect ourselves against potential product liability claims.

 

The
testing, manufacture, marketing and sale of medical devices entail the inherent risk of liability claims or product recalls. Product
liability insurance is expensive and may not be available on acceptable terms, if at all. A successful product liability claim
or product recall could inhibit or prevent the successful commercialization of our products, cause a significant financial burden
on the Company, or both, which in either case could have a material adverse effect on our business and financial condition.

 

We require additional capital to
support our present business plan and our anticipated business growth, and such capital may not be available on acceptable terms,
or at all, which would adversely affect our ability to operate.

 

We will require additional
funds to further develop our business plan. We can give no assurance that we will be successful in raising any funds. Additionally,
if we are unable to generate sufficient revenues from our operating activities, we may need to raise additional funds through equity
offerings or otherwise in order to meet our expected future liquidity requirements, including to introduce our other planned products
or to pursue new product opportunities. Any such financing that we undertake will likely be dilutive to current stockholders and
you.

 

We intend to continue
to make investments to support our business growth, including patent or other intellectual property asset creation. In addition,
we may also need additional funds to respond to business opportunities and challenges, including our ongoing operating expenses,
protecting our intellectual property, satisfying debt payment obligations, developing new lines of business and enhancing our operating
infrastructure. While we may need to seek additional funding for such purposes, we may not be able to obtain financing on acceptable
terms, or at all. In addition, the terms of our financings may be dilutive to, or otherwise adversely affect, holders of its common
stock. We may also seek additional funds through arrangements with collaborators or other third parties. We may not be able to
negotiate any such arrangements on acceptable terms, if at all. If we are unable to obtain additional funding on a timely basis,
we may be required to curtail or terminate some or all of our business plans.

 

    	 	D-7	 

     

    

 

We cannot predict our future capital
needs and we may not be able to secure additional financing.

 

We will need to raise
additional funds in the future to fund our working capital needs and to fund further expansion of our business. We may require
additional equity or debt financings, collaborative arrangements with corporate partners or funds from other sources for these
purposes. No assurance can be given that necessary funds will be available for us to finance our development on acceptable terms,
if at all. Furthermore, such additional financings may involve substantial dilution of our stockholders or may require that we
relinquish rights to certain of our technologies or products. In addition, we may experience operational difficulties and delays
due to working capital restrictions. If adequate funds are not available from operations or additional sources of financing, we
may have to delay or scale back our growth plans.

 

The results of our research and development
efforts are uncertain and there can be no assurance of the commercial success of our products.

 

We believe that we
will need to incur additional research and development expenditures to continue development of our existing proposed products as
well as research and development expenditures to develop new products and services. The products and services we are developing
and may develop in the future may not be technologically successful. In addition, the length of our product and service development
cycle may be greater than we originally expected and we may experience delays in product development. If our resulting products
and services are not technologically successful, they may not achieve market acceptance or compete effectively with our competitors’
products and services.

 

The impact of the Patient Protection
and Affordable Care Act remains uncertain.

 

In
2010, significant reforms to the health care system were adopted as law in the United States. The law includes provisions that,
among other things, reduce or limit Medicare reimbursement, require all individuals to have health insurance (with limited exceptions)
and impose increased taxes. These factors, in turn, could result in reduced demand for our products and increased downward
pricing pressure. Because other parts of the 2010 health care law remain subject to implementation,
the long-term impact on us is uncertain. The new law or any future legislation could reduce medical procedure volumes, lower reimbursement
for our products, and impact the demand for our products or the prices at which we sell our products. Accordingly, while
it is too early to understand and predict the ultimate impact of the new law on our business, the legislation and resulting regulations
could have a material adverse effect on our business, cash flows, financial condition and results of operations.

 

    	 	D-8	 

     

    

 

We will not be profitable unless
we can demonstrate that our products can be manufactured at low prices.

 

We have no experience
in manufacturing our products on a commercial basis. We may manufacture our products through third-party manufacturers. We can
offer no assurance that either we or our manufacturing partners will develop efficient, automated, low-cost manufacturing capabilities
and processes to meet the quality, price, engineering, design and production standards or production volumes required to successfully
mass market our products. Even if we or our manufacturing partners are successful in developing such manufacturing capability and
processes, we do not know whether we or they will be timely in meeting our product commercialization schedule or the production
and delivery requirements of potential customers. A failure to develop such manufacturing processes and capabilities could have
a material adverse effect on our business and financial results.

 

Our profitability in part is dependent
on material and other manufacturing costs. We are unable to offer any assurance that either we or a manufacturing partner will
be able to reduce costs to a level which will allow production of a competitive product or that any product produced using lower
cost materials and manufacturing processes will not suffer from a reduction in performance, reliability and longevity.

 

If we or our suppliers fail to achieve
or maintain regulatory approval of manufacturing facilities, our growth could be limited and our business could be harmed.

 

In order to maintain
compliance with FDA and other regulatory requirements, our manufacturing facilities must be periodically re-evaluated and qualified
under a quality system to ensure they meet production and quality standards. Suppliers of components and products used to manufacture
our devices must also comply with FDA regulatory requirements, which often require significant resources and subject us and our
suppliers to potential regulatory inspections and stoppages. If we or our suppliers do not maintain regulatory approval for our
manufacturing operations, our business could be adversely affected.

 

Our dependence on a limited number
of suppliers may prevent us from delivering our devices on a timely basis.

 

We currently rely on
a limited number of suppliers of components for our devices. If these suppliers became unable to provide components in the volumes
needed or at an acceptable price, we would have to identify and qualify acceptable replacements from alternative sources of supply.
The process of qualifying suppliers is lengthy. Delays or interruptions in the supply of our requirements could limit or stop our
ability to provide sufficient quantities of devices on a timely basis or meet demand for our services, which could have a material
adverse effect on our business, financial condition and results of operations.

 

Our
operations in international markets involve inherent risks that we may not be able to control.

 

Our
business plan includes the marketing and sale of our proposed products in international markets. Accordingly, our results could
be materially and adversely affected by a variety of uncontrollable and changing factors relating to international business operations,
including:

 

		·	Macroeconomic conditions adversely affecting geographies
where we intend to do business;

 

		·	Foreign currency exchange rates;

 

    	 	D-9	 

     

    

 

		·	Political or social unrest or economic instability in a specific
country or region;

 

		·	Higher costs of doing business in foreign countries;

 

		·	Infringement claims on foreign patents, copyrights or trademark
rights;

 

		·	Difficulties in staffing and managing operations across disparate
geographic areas;

 

		·	Difficulties associated with enforcing agreements and intellectual
property rights through foreign legal systems;

 

		·	Trade protection measures and other regulatory requirements,
which affect our ability to import or export our products from or to various countries;

 

		·	Adverse tax consequences;

 

		·	Unexpected changes in legal and regulatory requirements;

 

		·	Military conflict, terrorist activities, natural disasters
and medical epidemics; and

 

		·	Our ability to recruit
and retain channel partners in foreign jurisdictions.

 

Our
financial results may be affected by fluctuations in exchange rates and our current currency hedging strategy may not be sufficient
to counter such fluctuations.

 

Due
to the substantial volatility of currency exchange rates, exchange rate fluctuations may have a positive or adverse impact on our
future revenues or expenses presented in our financial statements. We may use financial instruments, principally forward foreign
currency contracts, in our management of foreign currency exposure. These contracts would primarily require us to purchase and
sell certain foreign currencies with or for U.S. dollars at contracted rates. We may be exposed to a credit loss in the event of
non-performance by the counterparties of these contracts. In addition, these financial instruments may not adequately manage our
foreign currency exposure. Our results of operations could be adversely affected if we are unable to successfully manage currency
fluctuations in the future.

 

Risks Related to Our Industry

 

The industry in which we operate
is highly competitive and subject to rapid technological change. If our competitors are better able to develop and market products
that are safer, more effective, less costly, easier to use, or are otherwise more attractive, we may be unable to compete
effectively with other companies.

 

The medical technology
industry is characterized by intense competition and rapid technological change, and we will face competition on the basis of product
features, clinical outcomes, price, services and other factors. Competitors may include large medical device and other companies,
some of which have significantly greater financial and marketing resources than we do, and firms that are more specialized than
we are with respect to particular markets. Our competition may respond more quickly to new or emerging technologies, undertake
more extensive marketing campaigns, have greater financial, marketing and other resources than ours or may be more successful in
attracting potential customers, employees and strategic partners.

 

    	 	D-10	 

     

    

 

Our competitive position
will depend on multiple, complex factors, including our ability to achieve regulatory clearance and market acceptance for our products,
develop new products, implement production and marketing plans, secure regulatory approvals for products under development and
protect our intellectual property. In some instances, competitors may also offer, or may attempt to develop, alternative systems
that may be delivered without a medical device or a medical device superior to ours. The development of new or improved products,
processes or technologies by other companies may render our products or proposed products obsolete or less competitive. The entry
into the market of manufacturers located in low-cost manufacturing locations may also create pricing pressure, particularly in
developing markets. Our future success depends, among other things, upon our ability to compete effectively against current technology,
as well as to respond effectively to technological advances or changing regulatory requirements, and upon our ability to successfully
implement our marketing strategies and execute our research and development plan. Our research and development efforts are aimed,
in part, at solving increasingly complex problems, as well as creating new technologies, and we do not expect that all of our projects
will be successful. If our research and development efforts are unsuccessful, our future results of operations could be materially
harmed.

 

We face competition
from other medical device companies that focus on similar markets.

 

We face competition
from other companies that also focus on the market that we intend to enter. These companies have longer operating histories and
may have greater name recognition and substantially greater financial, technical and marketing resources than us. Many of these
companies also have FDA or other applicable governmental approval to market and sell their products, and more extensive customer
bases, broader customer relationships and broader industry alliances than us, including relationships with many of our potential
customers. Increased competition from any of these sources could result in our failure to achieve and maintain an adequate level
of customers and market share to support the cost of our operations.

 

Our industry
is experiencing greater scrutiny and regulation by governmental authorities, which may lead to greater governmental regulation
in the future.

 

In
recent years, the medical device industry has been subject to increased regulatory scrutiny, including by the FDA and numerous
other federal, state, provincial and foreign governmental authorities. This has included increased regulation, enforcement, inspections,
and governmental investigations of the medical device industry and disclosure of financial relationships with health care professionals.
We anticipate that governments will continue to scrutinize our industry closely, and that additional regulation by governmental
authorities, both foreign and domestic, may increase compliance costs, exposure to litigation and other adverse effects to our
operations.

 

    	 	D-11	 

     

    

 

Unsuccessful
clinical trials or procedures relating to products under development could have a material adverse effect on our prospects.

 

The
regulatory approval process for new products and new indications for existing products requires extensive clinical trials and procedures,
including early clinical experiences and regulatory studies. Unfavorable or inconsistent clinical data from current or future clinical
trials or procedures conducted by us, our competitors, or third parties, or perceptions regarding this clinical data, could adversely
affect our ability to obtain necessary approvals and the market’s view of our future prospects. Such clinical trials and
procedures are inherently uncertain and there can be no assurance that these trials or procedures will be completed in a timely
or cost-effective manner or result in a commercially viable product. Failure to successfully complete these trials or procedures
in a timely and cost-effective manner could have a material adverse effect on our prospects. Clinical trials or procedures may
experience significant setbacks even after earlier trials have shown promising results. Further, preliminary results from clinical
trials or procedures may be contradicted by subsequent clinical analysis. In addition, results from our clinical trials or procedures
may not be supported by actual long-term studies or clinical experience. If preliminary clinical results are later contradicted,
or if initial results cannot be supported by actual long-term studies or clinical experience, our business could be adversely affected.
Clinical trials or procedures may be suspended or terminated by us, the FDA or other regulatory authorities at any time if it is
believed that the trial participants face unacceptable health risks.

 

Intellectual property litigation
and infringement claims could cause us to incur significant expenses or prevent us from selling certain of our products.

 

The industry we operate
in, in particular, the medical device industry is characterized by extensive intellectual property litigation and, from time to
time, we might be the subject of claims by third parties of potential infringement or misappropriation. Regardless of outcome,
such claims are expensive to defend and divert the time and effort of our management and operating personnel from other business
issues. A successful claim or claims of patent or other intellectual property infringement against us could result in our payment
of significant monetary damages and/or royalty payments or negatively impact our ability to sell current or future products in
the affected category and could have a material adverse effect on its business, cash flows, financial condition or results of operations.

 

If we are unable to protect the confidentiality
of our trade secrets, our business and competitive position would be harmed.

 

We plan on relying
on trade secrets, including unpatented know-how, technology and other proprietary information, to maintain our competitive position.
We will seek to protect these trade secrets, in part, by entering into non-disclosure and confidentiality agreements with parties
who have access to them, such as our employees, corporate collaborators, outside scientific collaborators, contract manufacturers,
consultants, advisors and other third parties. We will seek to protect our confidential proprietary information, in part, by entering
into confidentiality and invention or patent assignment agreements with our employees and consultants. Moreover, to the extent
we enter into such agreements, any of these parties may breach the agreements and disclose our proprietary information, including
our trade secrets, and we may not be able to obtain adequate remedies for such breaches. Enforcing a claim that a party illegally
disclosed or misappropriated a trade secret is difficult, expensive and time-consuming, and the outcome is unpredictable. In addition,
some courts inside and outside the United States are less willing or unwilling to protect trade secrets. If any of our trade secrets
were to be lawfully obtained or independently developed by a competitor, we would have no right to prevent them, or those to whom
they communicate it, from using that technology or information to compete with us. If any of our trade secrets were to be disclosed
to or independently developed by a competitor, our competitive position would be harmed. In general, any loss of trade secret protection
or other unpatented proprietary rights could harm our business, results of operations and financial condition.

 

    	 	D-12	 

     

    

 

If we are
unable to protect our patents or other proprietary rights, or if we infringe on the patents or proprietary rights of others, our
competitiveness and business prospects may be materially damaged.

 

We
may seek patent protection for our proprietary technology. Seeking patent protection is a lengthy and costly process, and there
can be no assurance that patents will be issued from any pending applications, or that any claims allowed from existing or pending
patents will be sufficiently broad or strong to protect our proprietary technology. There is also no guarantee that any patents
we hold will not be challenged, invalidated or circumvented, or that the patent rights granted will provide competitive advantages
to us. Our competitors have developed and may continue to develop and obtain patents for technologies that are similar or superior
to our technologies. In addition, the laws of foreign jurisdictions in which we develop, manufacture or sell our products may not
protect our intellectual property rights to the same extent, as do the laws of the United States.

 

Adverse
outcomes in current or future legal disputes regarding patent and other intellectual property rights could result in the loss of
our intellectual property rights, subject us to significant liabilities to third parties, require us to seek licenses from third
parties on terms that may not be reasonable or favorable to us, prevent us from manufacturing, importing or selling our products,
or compel us to redesign our products to avoid infringing third parties’ intellectual property. As a result, we may be required
to incur substantial costs to prosecute, enforce or defend our intellectual property rights if they are challenged. Any of these
circumstances could have a material adverse effect on our business, financial condition and resources or results of operations.

 

Dependence on patent and other proprietary
rights and failing to protect such rights or to be successful in litigation related to such rights may result in our payment of
significant monetary damages or impact offerings in our product portfolios.

 

Our long-term success
largely depends on our ability to market technologically competitive products. If we fail to obtain or maintain adequate intellectual
property protection, we may not be able to prevent third parties from using our proprietary technologies or may lose access to
technologies critical to our products. Also, our currently pending or future patents applications may not result in issued patents,
and issued patents are subject to claims concerning priority, scope and other issues.

 

Furthermore, to the
extent we do not file applications for patents domestically or internationally, we may not be able to prevent third parties from
using our proprietary technologies or may lose access to technologies critical to our products in other countries.

 

    	 	D-13	 

     

    

 

Enforcement of federal and state
laws regarding privacy and security of patient information may adversely affect our business, financial condition or operations.

 

The use and disclosure
of certain health care information by health care providers and their business associates have come under increasing public scrutiny.
Recent federal standards under the Health Insurance Portability and Accountability Act of 1996, or HIPAA, establish rules concerning
how individually-identifiable health information may be used, disclosed and protected. Historically, state law has governed confidentiality
issues, and HIPAA preserves these laws to the extent they are more protective of a patient’s privacy or provide the patient
with more access to his or her health information. As a result of the implementation of the HIPAA regulations, many states are
considering revisions to their existing laws and regulations that may or may not be more stringent or burdensome than the federal
HIPAA provisions. We must operate our business in a manner that complies with all applicable laws, both federal and state, and
that does not jeopardize the ability of our customers to comply with all applicable laws. We believe that our operations are consistent
with these legal standards. Nevertheless, these laws and regulations present risks for health care providers and their business
associates that provide services to patients in multiple states. Because these laws and regulations are recent, and few have been
interpreted by government regulators or courts, our interpretations of these laws and regulations may be incorrect. If a challenge
to our activities is successful, it could have an adverse effect on our operations, may require us to forego relationships with
customers in certain states and may restrict the territory available to us to expand our business. In addition, even if our interpretations
of HIPAA and other federal and state laws and regulations are correct, we could be held liable for unauthorized uses or disclosures
of patient information as a result of inadequate systems and controls to protect this information or as a result of the theft of
information by unauthorized computer programmers who penetrate our network security. Enforcement of these laws against us could
have a material adverse effect on our business, financial condition and results of operations.

 

We may be subject, directly or indirectly,
to federal and state health care fraud and abuse laws and regulations and if we are unable to fully comply with such laws, the
Company could face substantial penalties.

 

Our operations may
be directly or indirectly affected by various broad state and federal health care fraud and abuse laws, including the Federal Healthcare
Programs’ Anti-Kickback Statute and the Stark law. If our present or future operations are found to be in violation of these
laws, we or our officers may be subject to civil or criminal penalties, including large monetary penalties, damages, fines, imprisonment
and exclusion from Medicare and Medicaid program participation. If enforcement action were to occur, our business and results of
operations could be adversely affected.

 

We may be subject to federal and
state false claims laws which impose substantial penalties.

 

Many of the physicians
and patients whom we expect to use our services will file claims for reimbursement with government programs such as Medicare and
Medicaid. As a result, we may be subject to the federal False Claims Act if we knowingly “cause” the filing of false
claims. Violations may result in substantial civil penalties, including treble damages. The federal False Claims Act also contains
“whistleblower” or “qui tam” provisions that allow private individuals to bring actions on behalf of the
government alleging that the defendant has defrauded the government. In recent years, the number of suits brought in the medical
industry by private individuals has increased dramatically. Various states have enacted laws modeled after the federal False Claims
Act, including “qui tam” provisions, and some of these laws apply to claims filed with commercial insurers. We are
unable to predict whether we could be subject to actions under the federal False Claims Act, or the impact of such actions. However,
the costs of defending claims under the False Claims Act, as well as sanctions imposed under the False Claims Act, could adversely
affect our results of operations.

 

    	 	D-14	 

     

    

 

Changes in the health care industry
or tort reform could reduce the number of intracranial electrophysiology recording and stimulation electrodes ordered by clinicians,
which could result in a decline in the demand for our planned solutions, pricing pressure and decreased revenue.

 

Changes in the health
care industry directed at controlling health care costs or perceived over-utilization of recording and stimulation electrode solutions
could reduce the volume of solutions ordered by physicians. If more health care cost controls are broadly instituted throughout
the health care industry, the volume of solutions could decrease, resulting in pricing pressure and declining demand for our planned
services, which could harm our operating results. Legal changes increasing the difficulty of initiating medical malpractice cases,
known as tort reform, could reduce the amount of our services prescribed as physicians respond to reduced risks of litigation,
which could harm our operating results.

 

Risks Related to Our Securities and
Other Risks

 

An active and visible public trading
market for our common stock may not develop.

 

We do not currently
have an active or visible trading market. We cannot predict whether an active market for our common stock will ever develop in
the future. In the absence of an active trading market:

 

		·	Investors may have difficulty buying and selling or obtaining market quotations;

 

		·	Market visibility for shares of our common stock may be limited; and

 

		·	A lack of visibility for shares of our common stock may have a depressive effect on the market
price for shares of our common stock.

 

No assurances
can be given that our common stock, even if quoted on active or visible trading markets, will ever actively trade on such markets,
much less a senior market like NASDAQ or NYSE MKT. In this event, there would be a highly illiquid market for our common stock
and you may be unable to dispose of your common stock at desirable prices or at all.

 

The market
price of our common stock may be volatile.

 

The market price for
our common stock may be volatile and subject to wide fluctuations in response to factors including the following:

 

		·	Our ability to successfully bring any of our proposed or planned products to market;

 

		·	Actual or anticipated fluctuations in our quarterly or annual operating results;

 

		·	Changes in financial or operational estimates or projections;

 

    	 	D-15	 

     

    

 

		·	Conditions in markets generally;

 

		·	Changes in the economic performance or market valuations of companies similar to ours;

 

		·	Announcements by us or our competitors of new products, acquisitions, strategic partnerships, joint
ventures or capital commitments;

 

		·	Our intellectual property position; and

 

		·	General economic or political conditions in the United States or elsewhere.

 

In addition, the
securities market has from time to time experienced significant price and volume fluctuations that are not related to the operating
performance of particular companies. These market fluctuations may also materially and adversely affect the market price of shares
of our common stock.

 

Because
we may be engaged in a transaction that could be generally characterized as a “reverse merger,” we may not be able
to attract the attention of major brokerage firms.

 

Additional
risks may exist if we were to engage in a transaction that can be generally characterized as a “reverse merger.” Securities
analysts of major brokerage firms may not provide coverage of the Company since there is little incentive to brokerage firms to
recommend the purchase of the common stock. No assurance can be given that brokerage firms will want to conduct any secondary offerings
on behalf of the Company in the future.

 

Anti-takeover provisions that may
be in the Company’s charter and bylaws may prevent or frustrate attempts by stockholders to change the board of directors
or current management and could make a third-party acquisition of the Company difficult.

 

The Company’s
certificate of incorporation and bylaws may contain provisions that may discourage, delay or prevent a merger, acquisition or other
change in control that stockholders may consider favorable, including transactions in which stockholders might otherwise receive
a premium for their shares. These provisions could limit the price that investors might be willing to pay in the future for shares
of the Company’s common stock.

 

We have
not paid dividends in the past and do not expect to pay dividends in the future, and any return on investment may be limited to
the value of our stock.

 

We
have never paid any cash dividends on our common stock and do not anticipate paying any cash dividends on our common stock in the
foreseeable future and any return on investment may be limited to the value of our common stock. We plan to retain any future earning
to finance growth.

 

    	 	D-16Exhibit 10.6

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER
THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY
NOT BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH, OR PURSUANT TO AN EXEMPTION FROM,
THE REQUIREMENTS OF SUCH ACT OR SUCH LAWS. 

 

_______________________________

 

NEUROONE, INC.

 

CONVERTIBLE PROMISSORY NOTE

 

	Principal Amount: US$[__________] 	Issue Date: [__________], 201__

 

NeuroOne,
Inc., a Delaware corporation (the “Company”), for value received, hereby promises to pay to
[__________] or his permitted assigns or successors (the “Holder”), the principal amount of [__________]
Dollars (US$[__________]) (the “Principal Amount”), without demand, on the Maturity Date (as hereinafter
defined), together with any accrued and unpaid interest due thereon. This Note shall bear interest at a fixed rate of 8% per annum,
beginning on the Issue Date. Interest shall be computed based on a 360-day year of twelve 30-day months and shall be payable, along
with the Principal Amount, on the Maturity Date. Except as set forth in Section 3.1, payment of all principal and interest
due shall be in such coin or currency of the United States of America as shall be legal tender for the payment of public and private
debts at the time of payment.

 

This Note is a convertible
promissory note referred to in that certain Subscription Agreement dated as of November 21, 2016 (the “Subscription
Agreement”), or series of like subscription agreements, among the Company and the subscribers named therein, pursuant
to which the Company is seeking to raise an aggregate of up to $1,500,000 (or such higher amount as the Company’s Board of
Directors shall determine).

 

1.           Definitions.

 

1.1           Definitions.
The terms defined in this Section 1 whenever used in this Note shall have the respective meanings hereinafter specified.

 

“Applicable
Laws” means any and all applicable foreign, federal, state and local statutes, laws, regulations, ordinances, policies,
and rules or common law (whether now existing or hereafter enacted or promulgated), of any and all governmental authorities, agencies,
departments, commissions, boards, courts, or instrumentalities of the United States, any state of the United States, any other
nation, or any political subdivision of the United States, any state of the United States or any other nation, and all applicable
judicial and administrative, regulatory or judicial decrees, judgments and orders, including common law rules and determinations.

 

    	 	1	 

     

    

 

“Change
in Control”  means a merger or consolidation of the Company with or into any other entity in which the stockholders
of the Company immediately prior to the merger or consolidation do not own more than 50% of the outstanding voting power (assuming
conversion of all convertible securities and the exercise of all outstanding options and warrants) of the surviving entity or the
sale, lease, licensing, transfer or other disposition of all or substantially all the assets of the Company; provided, however,
that any new issuance of capital stock of the Company to one or more third parties for the sole purpose of providing new funding
for the Company or solely in connection with a public offering of the Company’s stock shall not constitute a Change in Control.

 

“Common
Stock” means the common stock, common shares or equivalent equity of the Company.

 

“Conversion
Shares” means the New Round Stock issued or issuable to the Holder upon a Conversion Date pursuant to Article
3.

 

“Conversion
Date” shall have the meaning set forth in Section 3.1.

 

“Event
of Default” shall have the meaning set forth in Section 6.1.

 

“Holder”
or “Holders” means the person named above or any Person who shall thereafter become a recordholder of
this Note in accordance with the terms hereof.

 

“IPO”
means the completion by the Company of a firmly underwritten public offering of the Company’s Common Stock pursuant
to a registration statement filed with the Securities and Exchange Commission, and declared effective under the Securities Act
(and not subsequently withdrawn) covering the offer and sale of Common Stock for the account of the Company.

 

“Issue
Date” means the issue date stated above.

 

“Maturity
Date” shall mean the earlier of: (a) [__________], 2017 or (b) the consummation of a Qualified Financing.

 

“New Round
Stock” means, in the event of a Qualified Financing, the securities (or units of securities if more than one security
are sold as a unit) issued by the Company in the Qualified Financing.

 

“Note”
means this Convertible Note, as amended, modified or restated.

 

“Person”
means an individual, corporation, partnership, limited liability company, association, trust, joint venture, unincorporated organization
or any government, governmental department or agency or political subdivision thereof.

 

“Qualified
Financing” means the next equity or equity-linked round of financing of the Company in whatever form or type that
raises in excess of $3,000,000 gross proceeds.

 

“Securities
Act” means the United States Securities Act of 1933, as amended.

 

    	 	2	 

     

    

 

“Trading
Market” means the Nasdaq Capital Market; provided however, that in the event the Company’s Common Stock is
ever listed or traded on the New York Stock Exchange, the NYSE Amex Equities, the Nasdaq Global Select Market, the NASDAQ Global
Market, or either one of the OTCQB or the OTCQX market places of the OTC Markets, then the “Trading Market” shall mean
such other market or exchange on which the Company’s Common Stock is then listed or traded.

 

“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 the Common Stock is not then listed or quoted
for trading on a Trading Market and if prices for the Common Stock are then reported on the OTC Markets, 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 (c) in all other cases, the fair market value of a share of Common Stock as determined by the Board of Directors of the Company
in good faith.

 

“Warrants”
means the warrants to purchase capital stock pursuant to Section 1.1 of the Subscription Agreement and Section 3.1(d) hereof,
which shall be evidenced by the warrant agreement, the form of which is attached to the Subscription Agreement as Exhibit
C.

 

2.           GENERAL
PROVISIONS.

 

2.1           Loss,
Theft, Destruction of Note.  Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or
mutilation of this Note and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security reasonably
satisfactory to the Company, or, in the case of any such mutilation, upon surrender and cancellation of this Note, the Company
will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Note, a new Note of like tenor and unpaid principal
amount dated as of the date hereof. This Note shall be held and owned upon the express condition that the provisions of this Section
2.1 are exclusive with respect to the replacement of a mutilated, destroyed, lost or stolen Note and shall preclude any and
all other rights and remedies notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to
the replacement of negotiable instruments or other securities without their surrender.

 

2.2           Prepayment;
Redemption. This Note may not be prepaid by the Company in whole or in part, except with the prior written consent of
the Holder. This Note may not be redeemed by the Company in whole or in part, except with the prior written consent of the Holder.

 

3.           CONVERSION
OF NOTE.

 

3.1           Conversion.

 

(a)          Conversion
upon Qualified Financing. Without any action on the part of the Holder, all of the outstanding principal and accrued interest
(the “Outstanding Balance”) shall convert into that number of shares of New Round Stock upon the consummation
of a Qualified Financing (the “Conversion Date”), based upon the greater number of such shares resulting
from either: (i) the Outstanding Balance divided by $1.80 per share of New Round Stock; or (ii) the Outstanding Balance multiplied
by 1.25, divided by the actual per share price of New Round Stock.

 

    	 	3	 

     

    

 

(b)          Conversion
upon Change of Control or IPO. If a Change of Control transaction or the Company’s IPO occurs prior to the Qualified
Financing, the Notes would, at the election of the holders of a majority of the outstanding principal of the Notes, be either (i)
payable upon demand as of the closing of such Change of Control transaction or IPO transaction or (ii) convertible into shares
of the Common Stock immediately prior to such Change of Control transaction or IPO transaction at a price per share equal to the
lesser of (the “Common Price”) (A) the per share value of the Common Stock as then reasonably determined
by the Company’s Board of Directors acting in good faith, from time to time, as if in connection with either the grant of
an incentive stock option qualified under Section 422 of the Internal Revenue Code of 1986, as amended, or the sale of the Common
Stock in a private sale to a third party in an “arms-length” transaction, or (B) the per share consideration to be
received by the holders of the Common Stock in such Change of Control transaction or IPO transaction.

 

(c)          Cancellation.
Upon and as of the Conversion Date, this Note will be cancelled on the books and records of the Company and shall represent the
right to receive the Conversion Shares.

 

(d)          Warrants.
In connection with the issuance of this Note and pursuant to the Subscription Agreement, the Holder shall receive a Warrant with
the option to purchase either that number of Conversion Shares equal to the number of Conversion Shares the Holder would receive
upon conversion of this Note, or that number of shares of the Common Stock equal to the quotient obtained by dividing the Outstanding
Balance by $1.80.

 

3.2           Delivery
of Securities Upon Conversion. 

 

(a)          As
soon as is practicable after the Conversion Date, the Company shall deliver to the Holder (i) a certificate or certificates evidencing
the Conversion Shares issuable to the Holder and (ii) the Warrants issuable to the Holder. As soon as is practicable after the
Warrant Issue Date, the Company shall deliver to the Holder the Warrants issuable to the Holder.

 

(b)          The
issuance of certificates for Conversion Shares and Warrants upon conversion or maturity of this Note shall be made without charge
to the Holder for any issuance tax in respect thereof or other cost incurred by the Company in connection with such conversion
and the related issuance of securities. Upon conversion of this Note, the Company shall take all such actions as are necessary
in order to ensure that the Conversion Shares so issued upon such conversion shall be validly issued, fully paid and nonassessable.

 

3.3           Fractional
Shares. No fractional shares or scrip representing fractional shares shall be issued upon conversion of this Note. If
any conversion of this Note would create a fractional share or a right to acquire a fractional share, the Company shall round to
the nearest whole number.

 

    	 	4	 

     

    

 

4.           STATUS;
RESTRICTIONS ON TRANSFER.

 

4.1           Status
of Note. This Note is a direct, general and unconditional obligation of the Company, and constitutes a valid and legally
binding obligation of the Company, enforceable in accordance with its terms subject, as to enforcement, to bankruptcy, insolvency,
reorganization and other similar laws of general applicability relating to or affecting creditors’ rights and to general
principles of equity. This Note does not confer upon the Holder any right to vote or to consent or to receive notice as a stockholder
of the Company, as such, in respect of any matters whatsoever, or any other rights or liabilities as a stockholder, prior to conversion
hereof into Conversion Shares.

 

4.2           Restrictions
on Transferability. This Note and any Conversion Shares issued with respect to this Note, have not been registered under
the Securities Act, or under any state securities or so-called “blue sky laws,” and may not be offered, sold, transferred,
hypothecated or otherwise assigned except (a) pursuant to a registration statement with respect to such securities which is effective
under the Act or (b) upon receipt from counsel satisfactory to the Company of an opinion, which opinion is satisfactory in form
and substance to the Company, to the effect that such securities may be offered, sold, transferred, hypothecated or otherwise assigned
(i) pursuant to an available exemption from registration under the Act and (ii) in accordance with all applicable state securities
and so-called “blue sky laws.” The Holder agrees to be bound by such restrictions on transfer. The Holder further consents
that the certificates representing the Conversion Shares that may be issued with respect to this Note may bear a restrictive legend
to such effect. In addition, this Note shall be subject to the restrictions on transfer set forth in Article III of the Subscription
Agreement.

 

5.           COVENANTS.
In addition to the other covenants and agreements of the Company set forth in this Note, the Company covenants and agrees that
so long as this Note shall be outstanding:

 

5.1           Payment
of Note. The Company will punctually, according to the terms hereof, (a) pay or cause to be paid all amounts due under
this Note and (b) reasonably promptly issue the Conversion Shares upon the Conversion Date.

 

5.2           Notice
of Default. If any one or more events occur which constitute or which, with the giving of notice or the lapse of time
or both, would constitute an Event of Default or if the Holder shall demand payment or take any other action permitted upon the
occurrence of any such Event of Default, the Company will forthwith give notice to the Holder, specifying the nature and status
of the Event of Default or other event or of such demand or action, as the case may be.

 

5.3           Compliance
with Laws. The Company will comply in all material respects with all Applicable Laws, except where the necessity of
compliance therewith is contested in good faith by appropriate proceedings.

 

    	 	5	 

     

    

 

5.4           Use
of Proceeds. The Company shall use the proceeds of this Note for general working capital.

 

6.           REMEDIES.

 

6.1           Events
of Default. “Event of Default” wherever used herein means any one of the following events:

 

(a)          The
Company shall fail to issue and deliver the Conversion Shares in accordance with Section 3;

 

(b)          Default
in the due and punctual payment of the principal of, or any other amount owing in respect of (including interest), this Note when
and as the same shall become due and payable;

 

(c)          Default
in the performance or observance of any covenant or agreement of the Company in this Note (other than a covenant or agreement a
default in the performance of which is specifically provided for elsewhere in this Section 6.1), and the continuance of
such default for a period of 10 days after there has been given to the Company by the Holder a written notice specifying such default
and requiring it to be remedied;

 

(d)          The
entry of a decree or order by a court having jurisdiction adjudging the Company as bankrupt or insolvent; or approving as properly
filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under the Federal
Bankruptcy Code or any other applicable federal or state law, or appointing a receiver, liquidator, assignee, trustee or sequestrator
(or other similar official) of the Company or of any substantial part of its property, or ordering the winding-up or liquidation
of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 calendar days;

 

(e)          The
institution by the Company of proceedings to be adjudicated as bankrupt or insolvent, or the consent by it to the institution of
bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization
or relief under the Federal Bankruptcy Code or any other applicable federal or state law, or the consent by it to the filing of
any such petition or to the appointment of a receiver, liquidator, assignee, trustee or sequestrator (or other similar official)
of the Company or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors;

 

(f)          The
Company seeks the appointment of a statutory manager or proposes in writing or makes a general assignment or an arrangement or
composition with or for the benefit of its creditors or any group or class thereof or files a petition for suspension of payments
or other relief of debtors or a moratorium or statutory management is agreed or declared in respect of or affecting all or any
material part of the indebtedness of the Company; or

 

(g)          It
becomes unlawful for the Company to perform or comply with its obligations under this Note.

 

    	 	6	 

     

    

 

6.2           Effects
of Default. If an Event of Default occurs and is continuing, then and in every such case the Holder may declare this
Note to be due and payable immediately, by a notice in writing to the Company, and upon any such declaration, the Company shall
pay to the Holder the outstanding principal amount of this Note plus all accrued and unpaid interest through the date the Note
is paid in full.

 

6.3           Remedies
Not Waived; Exercise of Remedies. No course of dealing between the Company and the Holder or any delay in exercising
any rights hereunder shall operate as a waiver by the Holder. No failure or delay by the Holder in exercising any right, power
or privilege under this Note shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other
or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall
be cumulative and not exclusive of any rights or remedies provided by Applicable Law. By acceptance hereof, the Holder acknowledges
and agrees that this Note is one of a series of Convertible Subordinated Promissory Notes of similar tenor issued by the Company
(collectively, the “Related Notes”) and that upon the occurrence and during the continuance of any Event
of Default, the holders of a majority in original principal amount of the Related Notes shall have the right to act on behalf of
the holders of all such Notes in exercising and enforcing all rights and remedies available to all of such holders under this Note,
including, without limitation, foreclosure of any judgment lien on any assets of the Company. By acceptance hereof, the Holder
agrees not to independently exercise any such right or remedy without the consent of the holders of a majority in original principal
amount of the Related Notes.

 

7.           SUBORDINATION.

 

7.1           The
Company agrees and the Holder, by acceptance of this Note, agrees, expressly for the benefit of the present and future holders
of Senior Indebtedness (as defined below), that, except as otherwise provided herein, upon (a) an event of default under any Senior
Indebtedness (as defined below), or (b) any dissolution, winding up or liquidation of the Company, whether or not in bankruptcy,
insolvency or receivership proceedings, the Company shall not pay, and the Holder shall not be entitled to receive, any amount
in respect of the principal and interest of such Note unless and until the Senior Indebtedness shall have been paid or otherwise
discharged. For purposes of this Note, “Senior Indebtedness” shall mean, unless expressly subordinated
to or made on a parity with the amounts due under this Note, the principal of (and premium, if any), unpaid interest on and amounts
reimbursable, fees, expenses, costs of enforcement and other amounts due in connection with, indebtedness for borrowed money of
the Company, to banks, insurance companies, commercial finance lenders, leasing or equipment financing institutions or other regulated
lending institutions (excluding any indebtedness convertible into equity securities of the Company). Upon (i) an event of default
under any Senior Indebtedness, or (ii) any dissolution, winding up or liquidation of the Company, any payment or distribution of
assets of the Company, which the Holder would be entitled to receive in respect of the Note but for the provisions hereof, shall
be paid by the liquidating trustee or agent or other person making such payment or distribution directly to the holders of Senior
Indebtedness ratably according to the aggregate amounts remaining unpaid on Senior Indebtedness after giving effect to any concurrent
payment or distribution to the holders of Senior Indebtedness. Subject to the payment in full of the Senior Indebtedness and until
this Note is paid in full, the Holder shall be subrogated to the rights of the holders of the Senior Indebtedness (to the extent
of payments or distributions previously made to the holders of Senior Indebtedness pursuant to this Section 7.1 to receive
payments or distributions of assets of the Company applicable to the Senior Indebtedness).

 

    	 	7	 

     

    

 

7.2           Nothing
in this Section 7 is intended to impair, as between the Company, its creditors (other than the holders of Senior Indebtedness)
and the Holder, the unconditional and absolute obligation of the Company to pay the principal of and interest on this Note or affect
the relative rights of the Holder and the other creditors of the Company, other than the holders of Senior Indebtedness. Nothing
in this Note shall prevent the Holder from exercising all remedies otherwise permitted by applicable law upon default under the
Note, subject to the rights, if any, of the holders of Senior Indebtedness in respect to cash, property or securities of the Company
received upon the exercise of any such remedy.

 

8.           MISCELLANEOUS.

 

8.1           Severability.
If any provision of this Note shall be held to be invalid or unenforceable, in whole or in part, neither the validity nor the enforceability
of the remainder hereof shall in any way be affected.

 

8.2           Notice.
Where this Note provides for notice of any event, such notice shall be given (unless otherwise herein expressly provided) in writing
and either (a) delivered personally, (b) sent by certified, registered or express mail, postage prepaid or (c) sent by facsimile
or other electronic transmission, and shall be deemed given when so delivered personally, sent by facsimile or other electronic
transmission (confirmed in writing) or mailed. Notices shall be addressed, if to Holder, to its address as provided in the Subscription
Agreement or, if to the Company, to its principal office.

 

8.3           Governing
Law. This Note shall be governed by, and construed in accordance with, the laws of the State of Delaware (without giving
effect to any conflicts or choice of law provisions that would cause the application of the domestic substantive laws of any other
jurisdiction).

 

8.4           Forum.
The Holder and the Company hereby agree that any dispute which may arise out of or in connection with this Note shall be adjudicated
before a court of competent jurisdiction in the State of Minnesota and they hereby submit to the exclusive jurisdiction of the
courts of the State of Minnesota, as well as to the jurisdiction of all courts to which an appeal may be taken from such courts,
with respect to any action or legal proceeding commenced by either of them and hereby irrevocably waive any objection they now
or hereafter may have respecting the venue of any such action or proceeding brought in such a court or respecting the fact that
such court is an inconvenient forum.

 

8.5           Headings.
The headings of the Articles and Sections of this Note are inserted for convenience only and do not constitute a part of this Note.

 

8.6           Amendments.
This Note may be amended or waived only with the written consent of the Company and the holders of a majority in original aggregate
principal amount of the Related Notes. Any such amendment or waiver shall be binding on all holders of the Notes, even if they
do not execute such consent, amendment or waiver.

 

    	 	8	 

     

    

 

8.7           No
Recourse Against Others. The obligations of the Company under this Note are solely obligations of the Company and no
officer, employee or stockholder shall be liable for any failure by the Company to pay amounts on this Note when due or perform
any other obligation.

 

8.8           Assignment;
Binding Effect. This Note may be assigned by the Company without the prior written consent of the Holder. This Note
shall be binding upon and inure to the benefit of both parties hereto and their respective permitted successors and assigns.

 

Signature
on the Following Page

 

    	 	9	 

     

    

 

In
Witness Whereof, the Company has caused this Note to be signed by its duly authorized officer on the date hereinabove
written.

 

	 	NeuroOne, Inc.
	 	 
	 	By:	 
	 	Name:   David A. Rosa
	 	Title:     CEO

 

Signature
Page to Convertible Promissory Note

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