Document:

LOAN AGREEMENT

 

THIS LOAN AGREEMENT
(the “Agreement”) dated October 30, 2013, is by and among Trebor Industries, Inc., a Florida corporation (“the
“Debtor”), Brownie’s Marine Group, Inc., a Florida corporation and Mikkel Pitzner or assigns (the “Lender”).

 

W I T N
E S S E T H:

 

WHEREAS, Debtor seeks
to borrow money from Lender.

 

WHEREAS, the Lender
desires to extend a loan (the “Loan”) to Debtor for the purposes described herein.

 

WHEREAS, the amount
of the Loan, which will be evidenced by a Secured Promissory Note executed by Debtor concurrently herewith, will be $85,000 (the
“Note”).

 

WHEREAS, Debtor is
a wholly owned subsidiary of Brownie’s Marine Group, Inc., a publicly traded company (“BWMG”).

 

WHEREAS, in order to
induce the Lender to extend the Loan evidenced by the Note, BWMG has agreed to issue to Lender an option to purchase shares of
BWMG’s common stock.

 

NOW, THEREFORE, in
consideration of the agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto hereby agree as follows:

 

1.Loan.

 

(a)Advance.
Upon the execution of this Agreement and delivery of the Note in the form attached hereto, Lender shall advance to Debtor $85,000,
the proceeds of which are to be used by Debtor to satisfy that certain deficiency judgment in favor of Branch Banking and Trust
Company (“BBT”) as filed in the Circuit Court of the Seventeenth Judicial Circuit in and for Broward County,
Florida. This Agreement shall be effective on the date Lender advances $85,000 to Debtor.

 

(b)Secured
Interest. The Note shall be secured by all of the assets of Debtor pursuant to the Security Agreement attached hereto (the
“Security Agreement”).

 

(c)Personal
Guaranty. For so long as the Loan is outstanding, the chief executive officer of BWMG shall personally guaranty the Loan.

 

(d)BWMG
Option. As an inducement to Lender to enter into this Loan Agreement and advance funds to Debtor, BWMG, as parent company
of the Debtor, shall enter into the Option Agreement attached hereto (the “Option Agreement”).

 

    	 

    	 

    

 

2.Representations
and Warranties of Debtor. Debtor represents and warrants to Lender as follows:

 

(a)The
Debtor has the requisite corporate power and authority to enter into this Agreement, the Security Agreement and the Note and otherwise
carry out the obligations hereunder. The execution, delivery and performance by Debtor of this Agreement and the Note have been
duly authorized by all necessary action on the part of Debtor and no further action is required by Debtor.

 

(b)The
Debtor, subject to the release of the BBT liens, and the continuation of liens in the ordinary course of business, owns its assets
free and clear of any liens, security interests, encumbrances, rights or claims.

 

3.Representations
and Warranties of Lender. Lender represents and warrants to Debtor as follows:

 

(a)Lender
has the requisite corporate power and authority to enter into this Agreement and otherwise carry out its obligations hereunder;

 

(b)Lender,
as a director of BWMG has had an opportunity to review all information about BWMG and the Debtor and to ask questions of its officers
and directors.

 

4.Defaults.
The following events shall be “Events of Default”:

 

(a)The
occurrence of an Event of Default (as defined in the Note) under the Note;

 

(b)Any
representation or warranty of Debtor in this Agreement shall prove to have been incorrect in any material respect when made;

 

(c)The
failure by Debtor to observe or perform any of its obligations hereunder.

 

5.Term of
Agreement. This Agreement shall terminate on the date on which all payments under the Note have been made in full or have
been satisfied.

 

6.Miscellaneous.

 

(a)No
course of dealing between the Debtor and the Lender, nor any failure to exercise, nor any delay in exercising, on the part of the
Lender, any right, power or privilege hereunder or under the Note shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, power or privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise
of any other right, power or privilege.

 

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(b)This
Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and is intended to supersede
all prior negotiations, understandings and agreements with respect thereto. Except as specifically set forth in this Agreement,
no provision of this Agreement may be modified or amended except by a written agreement specifically referring to this Agreement
and signed by the parties hereto.

 

(c)In
the event that any provision of this Agreement is held to be invalid, prohibited or unenforceable in any jurisdiction for any reason,
unless such provision is narrowed by judicial construction, this Agreement shall, as to such jurisdiction, be construed as if such
invalid, prohibited or unenforceable provision had been more narrowly drawn so as not to be invalid, prohibited or unenforceable.
If, notwithstanding the foregoing, any provision of this Agreement is held to be invalid, prohibited or unenforceable in any jurisdiction,
such provision, as to such jurisdiction, shall be ineffective to the extent of such invalidity, prohibition or unenforceability
without invalidating the remaining portion of such provision or the other provisions of this Agreement and without affecting the
validity or enforceability of such provision or the other provisions of this Agreement in any other jurisdiction.

 

(d)No
waiver of any breach or default or any right under this Agreement shall be considered valid unless in writing and signed by the
party giving such waiver, and no such waiver shall be deemed a waiver of any subsequent breach or default or right, whether of
the same or similar nature or otherwise.

 

(e)This
Agreement shall be binding upon and inure to the benefit of each party hereto and its successors and assigns.

 

(f)Each
party shall take such further action and execute and deliver such further documents as may be necessary or appropriate in order
to carry out the provisions and purposes of this Agreement.

 

(g)This
Agreement shall be deemed to be made in and in all respects shall be interpreted, construed and governed by and in accordance with
the laws of the State of Florida without regard to the conflict of law principles thereof. Each party hereto agrees that it shall
bring any action or proceeding in respect of any claim arising out of or related to this Agreement, or in respect of the transactions
contemplated thereby, whether in tort or contract or at law or in equity, exclusively in the applicable state or federal courts
sitting in Broward County, Florida (the “Chosen Courts”). Solely in connection with such actions, proceedings
and claims, the parties irrevocably submit to the jurisdiction of the chosen courts, and agree not to assert as a defense in any
such action, suit or proceeding that such party is not subject to the jurisdiction of the chosen courts, that such action, proceeding
or claim may not be brought or is not maintainable in the chosen courts, that venue is not appropriate in the chosen courts, or
that this Agreement may not be enforced in the chosen courts. Each of the parties agrees that service of process or other papers
upon such party in any such action or proceeding shall be effective if notice is given in accordance with the provisions on notice
contained in this Agreement. Each party acknowledges and agrees that any controversy that may arise under this Agreement is likely
to involve complicated and difficult issues, and therefore each such party hereby irrevocably and unconditionally waives any right
such party may have to a trial by jury in respect of any litigation directly or indirectly arising out of or relating to this Agreement
or the transactions contemplated by this Agreement.

 

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(h)All
notices and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given
one (1) business day after delivery to an overnight carrier, or, if sent by facsimile, upon receipt of a confirmation of delivery:

 

	 	If to Debtor or BWMG:	Trebor Industries, Inc.
	 	 	940 N.W. 1st Street
	 	 	Fort Lauderdale, Florida 33311
	 	 	Attn:  Robert Carmichael
	 	If to Lender: 	Mikkel Pitzner 
	 	 	10205 Piedmont Drive
	 	 	Highlands Ranch, Colorado 80126

  

(i)This
Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and,
all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature
is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed on the day and year first above written.

 

	 	TREBOR INDUSTRIES, INC.	 
	 	 	 
	 	/S/ROBERT CARMICHAEL	 
	 	Robert Carmichael, President	 
	 	 	 
	 	 	 
	 	BROWNIE’S MARINE GROUP, INC.	 
	 	 	 
	 	/S/ROBERT CARMICHAEL	 
	 	Robert Carmichael, Chief Executive Officer	 
	 	 	 
	 	 	 
	 	 	 
	 	/S/MIKKEL PITZNER	 
	 	Mikkel Pitzner	 

 

    	4$85,000	October 30, 2013

 

 

TREBOR INDUSTRIES, INC.

(a Florida corporation)

 

SENIOR SECURED PROMISSORY NOTE

 

TREBOR INDUSTRIES,
INC., a Florida corporation (the “Company”), for value received and intending to be legally bound, hereby promises
to pay to the order of Mikkel Pitzner (“Lender”), with a business address at 10205 Piedmont Drive, Highlands
Ranch, Colorado 80126, the principal amount of Eighty Five Thousand ($85,000) Dollars (the “Principal Amount”) on or
before the twelve month anniversary of the “Effective Date” as defined under that certain Loan Agreement by
and between the Company, Brownie’s Marine Group, Inc. and Lender dated even herewith (the “Maturity Date”),
together with interest thereon at the rate of 21.21% per annum, as set forth herein (the “Note”).

 

1.Promissory
Note:  By accepting this Note, the Lender hereby acknowledges that this Note has not been registered under the Securities
Act of 1933, as amended, or any state securities laws and Lender represents for himself and his legal representative that he is
acquiring this Note, for his own account, for investment purposes only and not with a view to, or for sale in connection with,
any distribution of such securities.

 

2.Principal
and Interest Payment:  The Company shall pay (or cause to be paid) interest to the Lender on the then outstanding
principal amount of this Note at the rate of 21.21% per annum, principal and interest payable on a monthly basis in twelve (12)
equal monthly payments in the amount of Eight Thousand Five Hundred Eighty Five Dollars and 47/100 ($8,585.47) commencing thirty
(30) days following the Effective Date of the Loan Agreement (“Payment Date”) and on the same Payment Date of
each month thereafter and through the Maturity Date (each such date, a “Payment Date”) (if any Payment Date
is not a business day, then the applicable payment shall be due on the next succeeding business day), in cash.

 

3.Security:  The
obligations of the Company under this Note are secured by all assets of the Company pursuant to the Security Agreement, dated even
herewith, between the Company and the Lender (the “Security Agreement”).

 

4.Securities
Laws Restrictions:  This Note has not been registered for sale under the Securities Act of 1933, as amended, and
this Note may not be sold, offered for sale, pledged or otherwise disposed of without compliance with applicable securities laws.

 

5.Status of
Registered Lender:  The Company may treat the registered Lender of this Note as the absolute owner of this Note for
the purposes of making payments of principal or interest and for all other purposes and shall not be affected by any notice to
the contrary.

 

6.Prepayment
of Note:  This Note may be prepaid at any time without penalty, in whole or in part, upon payment by the Company.

 

7.Events of
Default:  If any of the following conditions or events (“Events of Default”) shall occur and shall
be continuing:

 

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		(i)	if the Company shall default in the payment of principal and/or interest accruing herein when the
same becomes due and payable, whether at maturity or by declaration of acceleration or otherwise, and shall fail to cure such default
within fifteen days after written notice thereof from the Lender to the Company, if the Company fails to tender any payment due
hereunder when the same becomes due; and shall fail to cure such default within thirty days after written notice thereof from the
Lender to the Company; or

 

		(ii)	if the Company shall materially default in the performance of or compliance with any material term
contained herein and such default shall not have been remedied within fifteen days after written notice thereof from the Lender
to the Company; or

 

		(iii)	if the Company shall default under the Security Agreement; or

 

		(iv)	if the Company shall materially default in the performance of or compliance with any material term
contained herein and such default shall not have been remedied within fifteen days after written notice thereof from the Lender
to the Company; or

 

		(v)	if the Company shall make an assignment for the benefit of creditors, or shall admit in writing
its inability to pay its debts as they become due, or a voluntary petition for reorganization under Title 11 of the Unites States
Code (“Title 11”) shall be filed by the Company or an order shall be entered granting relief to the Company
under Title 11 or a petition shall be filed by the Company in bankruptcy, or the Company shall be adjudicated a bankrupt or insolvent,
or shall file any petition or answer seeking for itself any reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under any present or future statue, law or regulation, or shall file any answer admitting or not
contesting the material allegations of a petition filed against the Company any such proceeding, or shall seek or consent to or
acquiesce in the appointment of any trustee, receiver or liquidator of the Company or of all or any substantial part of the properties
of the Company or if the Company or its directors or majority shareholders shall take any action looking to the dissolution or
liquidation of the Company;

 

then, and in any such event, the Lender
may at any time (unless such Event of Default shall theretofore have been remedied) at its option, by written notice to the Company,
declare the Note to be due and payable, whereupon the Note shall forthwith mature and become due and payable, together with interest
accrued thereon, and thereafter interest shall be due, at the rate per annum hereinabove provided, on the entire principal balance
until the same is fully paid, and on any overdue interest (but only to the extent permitted by law), without presentment, demand,
protest or notice, all of which are hereby waived, subject however, to the other terms, including those relating to subordination,
of this Note.

 

No course of dealing and no delay on the
part of Lender in exercising any right shall operate as a waiver thereof or otherwise prejudice such Lender’s rights, powers
or remedies. No right, power or remedy conferred by this Note upon Lender shall be exclusive of any other right, power or remedy
referred to herein or now or hereafter available at law, in equity, by statute or otherwise.

 

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8.Notice:  All
notices required or permitted to be given under this Note shall be in writing (delivered by hand or sent certified or registered
mail, return receipt requested, or by nationally recognized overnight courier service) addressed to the parties as provided under
the Securities Purchase Agreement. Any and all notices or other communications or deliveries to be provided by the Lender hereunder
shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized overnight courier service, addressed
to the Company, at the address set forth above, or such other facsimile number or address as the Company may specify for such purpose
by notice to the Lender delivered in accordance with this Section. Any and all notices or other communications or deliveries to
be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized
overnight courier service addressed to the Lender at the facsimile number or address of the Lender appearing on the books of the
Company, or if no such facsimile number or address appears, at the principal place of business of the Lender. Any notice or other
communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number specified on the signature page prior to 5:30 p.m. (New
York City time), (ii) the date immediately following the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified on the signature page between 5:30 p.m. (New York City time) and 11:59 p.m. (New York
City time) on any date, (iii) the second business day following the date of mailing, if sent by nationally recognized overnight
courier service or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

9.Governing
Law:  The Note shall be governed by the laws of the State of Florida.

 

10.Jurisdiction:  
Each of the parties hereto expressly and irrevocably agrees that any legal suit, action or proceeding arising out of or relating
to this Note will be instituted exclusively in Broward County, Florida.

 

11.Severability:  If
any provision, paragraph or subparagraph of this Note is adjudged by any court to be void or unenforceable in whole or in part,
this adjudication shall not affect the validity of the remainder of the Note, including any other provision, paragraph or subparagraph.
Each provision, paragraph or subparagraph of this Note is separable from every other provision, paragraph and subparagraph and
constitutes a separate and distinct covenant.

 

12.Amendment:  This
Note may only be amended in writing, duly endorsed by the parties hereto.

 

13.Heading:  The
headings in this Note are solely for convenience of reference and shall not affect its interpretation.

 

TREBOR INDUSTRIES, INC.

 

/S/ROBERT CARMICHAEL

Robert Carmichael, Chief Executive Officer

 

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