On August 30, 2023, Timber Pharmaceuticals, Inc., Timber Pharmaceuticals, LLC, BioPharmX, Inc. and Parent entered into a Secured Bridge Loan Agreement, pursuant to which Parent has agreed to loan Timber an aggregate amount of $3.0 million. The Bridge Loan will be secured by a continuing first priority lien and security interest in favor of Parent in and to all of Timber?s right, title and interest in and to all of Timber?s assets, wherever located, whether now existing or hereafter from time to time arising or acquired. Pursuant to the terms of the Bridge Loan Agreement, Parent has agreed to loan to Timber an aggregate amount of $3.0 million, paid as follows: $2.0 million, upon the effectiveness of the Bridge Loan Agreement (which was advanced on August 31, 2023); and $1.0 million on September 30, 2023.

The Bridge Loan will be due and payable in full, together with all accrued and unpaid interest thereon on November 17, 2023. Further, the Bridge Loan Agreement provides that, at the time of the consummation of the Merger (the ?Effective Time?), (i) the unpaid principal amount of $1.5 million of the Bridge Loan then outstanding, plus (ii) any interest accrued on the Bridge Loan through the Effective Time shall be extinguished. The remaining $1.5 million of the unpaid principal amount of the Bridge Loan then outstanding after the Effective Time, plus any interest accrued on such Bridge Loan after the Effective Time, shall be repaid pro-rata from each of the FDA Approval Milestone Amount and the Net Sales Milestone Amount (each as defined in the Contingent Value Rights Agreement, to be entered into pursuant to the Merger Agreement).

Additionally, the Bridge Loan will accrue interest on a daily basis at a rate equal to 12% per annum, on the unpaid principal balance of the Bridge Loan then outstanding, computed on the basis of a year having three hundred sixty-five (365) days and calculated for the actual number of days elapsed. In the event that Timber enters into an agreement with a third party that constitutes an Acquisition Proposal (as defined in the Merger Agreement), Timber must immediately repay an amount equal to the unpaid principal amount of the Bridge Loan multiplied by 1.25, plus any accrued and unpaid interest, fees or other Obligations (as defined in the Bridge Loan Agreement) outstanding thereunder.