Document:

Exhibit 10.18

 

Vallon
Pharmaceuticals, Inc.

 

CONVERTIBLE
PROMISSORY NOTE PURCHASE AGREEMENT

 

This
Convertible Promissory Note Purchase Agreement (the “Agreement”) is made as of January 11,
2021 (the “Effective Date”) by and among Vallon Pharmaceuticals, Inc.,
a Delaware corporation (the “Company”), and the persons and entities named on the Schedule of Purchasers
attached hereto (individually, a “Purchaser” and collectively, the “Purchasers”).

 

Recital

 

To provide the Company
with additional resources to conduct its business, the Purchasers are willing to loan to the Company in one or more disbursements
up to an aggregate amount of $500,000.00, subject to the conditions specified herein.

 

Agreement

 

Now,
Therefore, in consideration of the foregoing, and the representations, warranties, covenants and conditions set forth
below, the Company and each Purchaser, intending to be legally bound, hereby agree as follows:

 

	1.	Amount and Terms of the Loan

 

1.1         The
Loan. Subject to the terms of this Agreement, each Purchaser agrees to lend to the Company
at the Closing (as hereinafter defined) the amount set forth opposite such Purchaser’s name on the Schedule of Purchasers
attached to this Agreement (each, a “Loan Amount”) against the issuance and delivery by the Company of
a convertible promissory note for such amount, in substantially the form attached hereto as Exhibit A
(each, a “Note” and collectively, the “Notes”).

 

	2.	Closing and Delivery

 

2.1         Closing.
The closing of the sale and purchase of the Notes (the “Closing”) shall be held on the Effective Date,
or at such other time as the Company and Purchasers may mutually agree (such date is hereinafter referred to as the “Closing
Date”).

 

2.2         Subsequent
Sales of Notes. At any time on or before the ninetieth (90th) day following the Closing,
the Company may sell Notes representing up to the balance of the authorized principal amount not sold at the Closing (the “Additional
Purchasers”). All such sales made at any additional closings (each an “Additional Closing”)
shall be made on the terms and conditions set forth in this Agreement and (i)  the representations and warranties of the Company
set forth in Section 3 hereof shall speak as of the Closing and the Company shall have no obligation to update any disclosure
related thereto, and (ii) the representations and warranties of the Additional Purchasers in Section 4 hereof shall speak
as of such Additional Closing. This Agreement, including without limitation, the Schedule of Purchasers, may be amended by the
Company without the consent of Purchasers to include any Additional Purchasers upon the execution by such Additional Purchasers
of a counterpart signature page hereto. Any Notes sold pursuant to this Section 2.2 shall be deemed to be “Notes,”
for all purposes under this Agreement and any Additional Purchasers thereof shall be deemed to be “Purchasers” for
all purposes under this Agreement.

 

     

     

    

 

2.3         Delivery.
At the Closing and each Additional Closing (i) each Purchaser shall deliver to the Company a check or wire transfer funds
in the amount of such Purchaser’s Loan Amount; and (ii) the Company shall issue and deliver to each Purchaser a Note
in favor of such Purchaser payable in the principal amount of such Purchaser’s Loan Amount.

 

	3.	Representations, Warranties the Company

 

The Company hereby
represents and warrants to each Purchaser as of the Closing as follows:

 

3.1         Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware. The Company has the requisite corporate power to own and
operate its properties and assets and to carry on its business as now conducted and as proposed to be conducted. The Company is
duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which
the nature of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those
jurisdictions in which failure to do so would not have a material adverse effect on the Company or its business.

 

3.2         Corporate
Power. The Company has all requisite corporate power to execute and deliver this Agreement,
to issue each Note (collectively, the “Loan Documents”) and to carry out and perform its obligations
under the terms of the Loan Documents.

 

3.3         Authorization.
All corporate action on the part of the Company, its directors and its stockholders necessary for the authorization of the Loan
Documents and the execution, delivery and performance of all obligations of the Company under the Loan Documents, including the
issuance and delivery of the Notes and the reservation of the equity securities issuable upon conversion of the Notes (collectively,
the “Conversion Securities”) has been taken or will be taken prior to the issuance of such Conversion
Securities. The Loan Documents, when executed and delivered by the Company, shall constitute valid and binding obligations of the
Company enforceable in accordance with their terms, subject to laws of general application relating to bankruptcy, insolvency,
the relief of debtors and, with respect to rights to indemnity, subject to federal and state securities laws. The Conversion Securities,
when issued in compliance with the provisions of the Loan Documents will be validly issued, fully paid and nonassessable and free
of any liens or encumbrances and issued in compliance with all applicable federal and securities laws.

 

3.4         Governmental
Consents. All consents, approvals, orders, or authorizations of, or registrations, qualifications,
designations, declarations, or filings with, any governmental authority, required on the part of the Company in connection with
the valid execution and delivery of this Agreement, the offer, sale or issuance of the Notes and the Conversion Securities issuable
upon conversion of the Notes or the consummation of any other transaction contemplated hereby shall have been obtained and will
be effective at such time as required by such governmental authority.

 

    	 	2	 

     

    

 

3.5         Compliance
with Laws. To its knowledge, the Company is not in violation of any applicable statute,
rule, regulation, order or restriction of any domestic or foreign government or any instrumentality or agency thereof in respect
of the conduct of its business or the ownership of its properties, which violation would materially and adversely affect the business,
assets, liabilities, financial condition or operations of the Company.

 

3.6         Compliance
with Other Instruments. The Company is not in violation or default of any term of its
certificate of incorporation or bylaws, or of any provision of any mortgage, indenture or contract to which it is a party and by
which it is bound or of any judgment, decree, order or writ, other than such violations that would not individually or in the aggregate
have a material adverse effect on the Company. The execution, delivery and performance of the Loan Documents, and the consummation
of the transactions contemplated by the Loan Documents will not result in any such violation or be in conflict with, or constitute,
with or without the passage of time and giving of notice, either a default under any such provision, instrument, judgment, decree,
order or writ or an event that results in the creation of any lien, charge or encumbrance upon any assets of the Company or the
suspension, revocation, impairment, forfeiture, or nonrenewal of any material permit, license, authorization or approval applicable
to the Company, its business or operations or any of its assets or properties. The sale of the Notes and the subsequent issuance
of the Conversion Securities are not and will not be subject to any preemptive rights or rights of first refusal that have not
been properly waived or complied with.

 

3.7         Offering.
Assuming the accuracy of the representations and warranties of the Purchasers contained in Section 4 hereof, the offer, issue,
and sale of the Notes and the Conversion Securities (collectively, the “Securities”) are and will be
exempt from the registration and prospectus delivery requirements of the Securities Act of 1933, as amended (the “Act”),
and have been registered or qualified (or are exempt from registration and qualification) under the registration, permit, or qualification
requirements of all applicable state securities laws.

 

3.8         Use
of Proceeds. The Company shall use the proceeds of sale and issuance of the Notes for
the operations of its business, and not for any personal, family or household purpose.

 

	4.	Representations and Warranties of the Purchasers

 

4.1         Authorization.
Each Purchaser represents that it is authorized to consummate the transactions contemplated hereby.

 

4.2         Purchase
for Own Account. Each Purchaser represents that it is acquiring the Securities solely
for its own account and beneficial interest for investment and not for sale or with a view to distribution of the Securities or
any part thereof, has no present intention of selling (in connection with a distribution or otherwise), granting any participation
in, or otherwise distributing the same, and does not presently have reason to anticipate a change in such intention.

 

    	 	3	 

     

    

 

4.3         Information
and Sophistication. Each Purchaser hereby: (i) acknowledges that it has received
all the information it has requested from the Company and it considers necessary or appropriate for deciding whether to acquire
the Securities, (ii) represents that it has had an opportunity to ask questions and receive answers from the Company regarding
the terms and conditions of the offering of the Securities and to obtain any additional information necessary to verify the accuracy
of the information given the Purchaser and (iii) further represents that it has such knowledge and experience in financial
and business matters such that it is capable of evaluating the merits and risk of this investment. Each Purchaser has evaluated
the merits and risks of its investment in the Securities based exclusively on its own independent review and consultations with
such investment, legal, tax, accounting and other advisers as it deemed necessary.

 

4.4         Ability
to Bear Economic Risk. Each Purchaser acknowledges that investment in the Securities involves
a high degree of risk, and represents that it is able, without materially impairing its financial condition, to hold the Securities
for an indefinite period of time and to suffer a complete loss of its investment.

 

4.5         Limitations
on Disposition. Subject to the obligations of each Purchaser set forth in Section 5.1,
and without in any way limiting the representations set forth above, each Purchaser further agrees not to make any disposition
of all or any portion of the Securities unless and until:

 

(a)            There
is then in effect a Registration Statement under the Act covering such proposed disposition and such disposition is made in accordance
with such Registration Statement; or

 

(b)            The
Purchaser shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement
of the circumstances surrounding the proposed disposition, and if reasonably requested by the Company, such Purchaser shall have
furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require
registration under the Act or any applicable state securities laws, provided that no such opinion shall be required for dispositions
in compliance with Rule 144, except in unusual circumstances.

 

(c)            Notwithstanding
the provisions of paragraphs (a) and (b) above, no such registration statement or opinion of counsel shall be necessary
for a transfer by such Purchaser to a partner (or retired partner) or member (or retired member) of such Purchaser in accordance
with partnership or limited liability company interests, or transfers by gift, will or intestate succession to any spouse or lineal
descendants or ancestors, if all transferees agree in writing to be subject to the terms hereof to the same extent as if they were
Purchasers hereunder.

 

4.6         Accredited
Investor Status. Each Purchaser is an “accredited investor” as such term is
defined in Rule 501 under the Act.

 

    	 	4	 

     

    

 

	5.	Further Agreements

 

5.1         “Market
Stand-Off” Agreement. Each Purchaser agrees that such Purchaser shall not sell,
transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the
same economic effect as a sale, any Conversion Securities held by such Purchaser (other than those included in the registration)
during the 180-day period following the effective date of the Company’s first firm commitment underwritten public offering
of its Common Stock registered under the Securities Act (or such longer period as the underwriters or the Company shall request
in order to facilitate compliance with FINRA Rule 2241 or NYSE Member Rule 472 or any successor or similar rule or
regulation), provided that all officers and directors of the Company are bound by and have entered into similar agreements. Each
Purchaser agrees to execute and deliver customary lock-up agreements executed by the stockholders of the Company in connection
with any firm commitment underwritten public offering, and such other agreements as may be reasonably requested by the Company
or the underwriters that are consistent with the Purchaser’s obligations under this Section 5.1 or that are necessary
to give further effect to this Section 5.1. In addition, if requested by the Company or the representative of the underwriters
of Common Stock (or other securities) of the Company, each Purchaser shall provide, within 10 days of such request, such information
as may be required by the Company or such representative in connection with the completion of any public offering of the Company’s
securities pursuant to a registration statement filed under the Act. The obligations described in this Section 5.1 shall not
apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar forms that may be
promulgated in the future, or a registration relating solely to a transaction on Form S-4 or similar forms that may be promulgated
in the future.

 

5.2         Further
Assurances. Each Purchaser agrees and covenants that at any time and from time to time
it will promptly execute and deliver to the Company such further instruments and documents and take such further action as the
Company may reasonably require in order to carry out the full intent and purpose of this Agreement and to comply with state or
federal securities laws or other regulatory approvals.

 

	6.	Miscellaneous

 

6.1         Binding
Agreement. The terms and conditions of this Agreement shall inure to the benefit of and
be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, expressed or implied, is intended
to confer upon any third party any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.

 

6.2         Governing
Law. This Agreement shall be governed by and construed under the laws of the State of
Delaware as applied to agreements among Delaware residents, made and to be performed entirely within the State of Delaware, without
giving effect to conflicts of laws principles.

 

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

 

6.4         Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience
only and are not to be considered in construing or interpreting this Agreement.

 

    	 	5	 

     

    

 

6.5         Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery
to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours
of the recipient, if not, then on the next business day, (c) five days after having been sent by registered or certified mail,
return receipt requested, postage prepaid, or (d) one day after deposit with a nationally recognized overnight courier, specifying
next day delivery, with written verification of receipt. All communications shall be sent to the Company at the address on the
signature page below, and to Purchaser at the addresses set forth on the Schedule of Purchasers attached hereto or at such
other addresses as the Company or Purchaser may designate by 10 days advance written notice to the other parties hereto.

 

6.6         Modification;
Waiver. No modification or waiver of any provision of this Agreement or consent to departure
therefrom shall be effective only upon the written consent of the Company and the holders of the Notes representing a majority
of the aggregate principal amount of all Notes then outstanding (the “Requisite Holders”). Any provision
of the Notes may be amended or waived by the written consent of the Company and the Requisite Holders.

 

6.7         Expenses.
The Company and each Purchaser shall each bear its respective expenses and legal fees incurred with respect to this Agreement and
the transactions contemplated herein.

 

6.8         Delays
or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy
accruing to each Purchaser, upon any breach or default of the Company under the Loan Documents shall impair any such right, power
or remedy, nor shall it be construed to be a waiver of any such breach or default, or any acquiescence therein, or of or in any
similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any
other breach or default theretofore or thereafter occurring. It is further agreed that any waiver, permit, consent or approval
of any kind or character by Purchaser of any breach or default under this Agreement, or any waiver by any Purchaser of any provisions
or conditions of this Agreement must be in writing and shall be effective only to the extent specifically set forth in writing
and that all remedies, either under this Agreement, or by law or otherwise afforded to the Purchaser, shall be cumulative and not
alternative.

 

6.9         Entire
Agreement. This Agreement and the Exhibits hereto constitute the full and entire understanding
and agreement between the parties with regard to the subjects hereof and no party shall be liable or bound to any other party in
any manner by any representations, warranties, covenants and agreements except as specifically set forth herein.

 

[signature page follows]

 

    	 	6	 

     

    

 

In
Witness Whereof, the parties have executed this Convertible Promissory Note
Purchase Agreement as of the date first written above.

 

Company:

 

Vallon
Pharmaceuticals, Inc.

 

	By:	 	 

Name: David Baker

Title: Chief Executive Officer

 

Address:

Two Logan Square

100 N. 18th Street

Suite 300

Philadelphia, PA 19103

 

[Signature
page to Convertible Promissory Note Purchase Agreement]

 

     

     

    

 

In
Witness Whereof, the parties have executed this Convertible Promissory Note
Purchase Agreement as of the date first written above.

 

PURCHASERS:

 

	 	 
	(Entity name, if applicable)	 
	 	 
	 	 
	By:	           	 

	Name:	 	 
	Title:	 	 

 

	Address:	 
	 	 
	 	 
	 	 

 

[Signature
page to Convertible Promissory Note Purchase Agreement]

 

     

     

    

 

SCHEDULE
OF PURCHASERS

 

[Omitted pursuant to Item 601(a)(5) of
Regulation S-K]

 

     

     

    

 

Exhibit A

 

Form of
Convertible Promissory NoteExhibit 10.19

 

THIS
CONVERTIBLE PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES OR IN ANY OTHER JURISDICTION AND ARE BEING OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THE SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED, SOLD, TRANSFERRED, HYPOTHECATED
OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO UNLESS
THE HOLDER HEREOF PROVIDES EVIDENCE SATISFACTORY TO THE ISSUER (WHICH, IN THE DISCRETION OF THE ISSUER, MAY INCLUDE
AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER) AND ARE BEING OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT OR IN A TRANSACTION NOT SUBJECT TO U.S. FEDERAL OR STATE SECURITIES LAWS.

 

CONVERTIBLE
PROMISSORY NOTE

 

	$[________]	[_________],
                                         2021

 

For
value received Vallon Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
promises to pay to [________] or its assigns (“Holder”) the principal sum of $[________] together
with accrued and unpaid interest thereon, each due and payable on the date and in the manner set forth below.

 

This
convertible promissory note (the “Note”) is issued as part of a series of similar convertible promissory
notes (collectively, the “Notes”) pursuant to the terms of that certain Convertible Promissory Note
Purchase Agreement (as amended, the “Agreement”), dated as of [__________], 2021, to the persons and
entities listed on the Schedule of Purchasers attached to the Agreement (collectively, the “Holders”).
Capitalized terms used herein without definition shall have the meanings given to such terms in the Agreement.

 

1.            Repayment.
All payments of interest and principal shall be in lawful money of the United States
of America. All payments shall be applied first to accrued interest, and thereafter to principal. The outstanding principal amount
of the Loan shall be due and payable on September 30, 2021 (the “Maturity Date”).

 

2.            Interest
Rate. The Company promises to pay simple interest on the outstanding principal amount
hereof from the date hereof until payment in full, which interest shall be payable at the rate of 7.0% per annum or the maximum
rate permissible by law, whichever is less. Interest shall be due and payable on the Maturity Date and shall be calculated on
the basis of a 365-day year for the actual number of days elapsed.

 

3.            Conversion;
Repayment Upon Sale of the Company.

 

(a)            Automatic
Conversion. In the event that the Company issues and sells shares of its Equity Securities to investors (the “Investors”)
on or before the date of the repayment in full of this Note in a private placement or public offering of any Equity Securities
(including a firm commitment underwritten initial public offering (an “IPO”) of Common Stock) (a “Qualified
Financing”), then the outstanding principal balance of this Note shall automatically convert in whole without any
further action by the Holder into such Equity Securities at a conversion price equal to 80% of the per share price paid by the
Investors and otherwise on the same terms and conditions as given to the Investors; provided, that if the Qualified Financing
is an IPO, the Common Stock issued to the Holder shall be unregistered, restricted securities and shall not be registered on the
registration statement in connection with the IPO unless otherwise agreed upon by the Company and the managing underwriter of
such IPO. Any unpaid accrued interest on this Note shall be converted into Equity Securities issued in such Qualified Financing
on the same terms as the principal of the Notes. For avoidance of doubt, a Qualified Financing shall include a firm commitment
underwritten public offering of the Company’s common stock (“Common Stock”) or other equity securities
to the public pursuant to a Registration Statement on Form S-1 (“IPO”). Such conversion shall be
deemed to occur under this Section 3(a) as of immediately prior to the closing of the IPO, without regard to whether
Holder has then delivered to the Company this Note (or Lost Note Documentation where applicable) or executed any other documents
required to be executed by the investors participating in the IPO. The Company shall give Holder not less than five (5) calendar
days advance notice of the anticipated consummation of a Qualified Financing.

 

    1.

     

    

 

(b)            Sale
of the Company. Notwithstanding any provision of this Note to the contrary, in the event that the Company consummates a Sale
of the Company (as defined below) prior to the conversion or repayment in full of this Note, (i) the Company will give the
Holder at least five (5) calendar days prior written notice of the anticipated closing date of such Sale of the Company,
and (ii) at the closing of such Sale of the Company, the Company will pay the Holder an aggregate amount equal to the aggregate
amount of principal and interest then outstanding under this Note in full satisfaction of the Company’s obligations under
this Note.

 

(c)            No
Fractional Shares. If, after aggregation, the conversion of this Note would result in the issuance of a fractional share,
the Company shall, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to such fraction a sum in cash
equal to the product resulting from multiplying the then current Fair Market Value of one share of the class and series of capital
stock into which this Note has converted by such fraction.

 

(d)            Definitions.
For purposes of this Note:

 

(i)             “Sale
of the Company” shall mean (i) any consolidation or merger of the Company with or into any other corporation
or other entity or person, or any other corporate reorganization, other than any such consolidation, merger or reorganization
in which the stockholders of the Company immediately prior to such consolidation, merger or reorganization, continue to hold at
least a majority of the voting power of the surviving entity in substantially the same proportions (or, if the surviving entity
is a wholly owned subsidiary, its parent) immediately after such consolidation, merger or reorganization; (ii) any transaction
or series of related transactions to which the Company is a party in which in excess of 50% of the Company’s voting power
is transferred; provided, however, that a Sale of the Company shall not include any transaction or series of transactions
principally for bona fide equity financing purposes in which cash is received by the Company or any successor or indebtedness
of the Company is cancelled or converted or a combination thereof; or (iii) a sale, lease, exclusive license or other disposition
of all or substantially all of the assets of the Company.

 

    2.

     

    

 

(ii)            “Equity
Securities” shall mean the Company’s Common Stock, or Preferred Stock or any securities conferring the right
to purchase the Company’s Common Stock or Preferred Stock or securities convertible into, or exchangeable for (with or without
additional consideration), the Company’s Common Stock or Preferred Stock, except that such defined term shall not include
any security (x) granted, issued and/or sold by the Company to any employee, director or consultant in such capacity or (y) issued
upon the conversion or exercise of any option or warrant outstanding as of the date of this Note.

 

(iii)          “Fair
Market Value” shall mean the price per security paid by Investors in the applicable Qualified Financing.

 

4.            Maturity.
Unless this Note has been previously converted in accordance with the terms of Sections 3(a),
above, the entire outstanding principal balance and all unpaid accrued interest shall become fully due and payable on the Maturity
Date.

 

5.            Expenses.
 In the event of any default hereunder, the Company shall pay all reasonable attorneys’
fees and court costs incurred by Holder in enforcing and collecting this Note.

 

6.            Prepayment.
The Company may not prepay this Note prior to the Maturity Date without the consent of
the Requisite Holders.

 

7.            Default.
If there shall be any Event of Default hereunder, at the option and upon the declaration
of the Requisite Holders and upon written notice to the Company (which election and notice shall not be required in the case of
an Event of Default under Section 7(c) or 7(d)), this Note shall accelerate and all principal and unpaid accrued interest
shall become due and payable. The occurrence of any one or more of the following shall constitute an Event of Default:

 

(a)            The
Company fails to pay timely any of the principal amount due under this Note on the date the same becomes due and payable or any
accrued interest or other amounts due under this Note on the date the same becomes due and payable;

 

(b)            The
Company shall default in its performance of any covenant under the Agreement or any Note;

 

(c)            The
Company files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other
law for the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment for the benefit of creditors
or takes any corporate action in furtherance of any of the foregoing; or

 

(d)            An
involuntary petition is filed against the Company (unless such petition is dismissed or discharged within sixty (60) calendar
days under any bankruptcy statute now or hereafter in effect, or a custodian, receiver, trustee, assignee for the benefit of creditors
(or other similar official) is appointed to take possession, custody or control of any property of the Company.

 

    3.

     

    

 

8.            Waiver.
The Company hereby waives demand, notice, presentment, protest and notice of dishonor.

 

9.            Governing
Law. This Note shall be governed by and construed under the laws of the State of Delaware,
as applied to agreements among Delaware residents, made and to be performed entirely within the State of Delaware, without giving
effect to conflicts of laws principles.

 

10.          Parity
with Other Notes. The Company’s repayment obligation to the Holder under this Note
shall be on parity with the Company’s obligation to repay all Notes issued pursuant to the Agreement. In the event that
the Company is obligated to repay the Notes and does not have sufficient funds to repay all the Notes in full, payment shall be
made to the Holders of the Notes on a pro rata basis. The preceding sentence shall not, however, relieve the Company of
its obligations to the Holder hereunder.

 

11.          Modification;
Waiver. Any term of this Note may be amended or waived with the written consent of the
Company and the Requisite Holders.

 

12.          Assignment.
This Note may be transferred only upon its surrender to the Company for registration
of transfer, duly endorsed, or accompanied by a duly executed written instrument of transfer in form satisfactory to the Company.
Thereupon, this Note shall be reissued to, and registered in the name of, the transferee, or a new Note for like principal amount
and interest shall be issued to, and registered in the name of, the transferee. Interest and principal shall be paid solely to
the registered holder of this Note. Such payment shall constitute full discharge of the Company’s obligation to pay such
interest and principal.

 

[signature page follows]

 

    4.

     

    

 

	 	Vallon
    Pharmaceuticals, Inc.
	 	 
	 	 
	 	By:	           
	 	Name:
    	David
    Baker
	 	Title:
    	Chief
    Executive Officer

 

 

	Holder:   	[________]	         

	Principal Amount of Note:   	$[________]	          

	Date of Note: 	[_________]	        

  

[Signature page to Convertible Promissory
Note of Vallon Pharmaceuticals, Inc.]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00319-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00319-of-00352.parquet"}]]