Document:

ex_416482.htm

Exhibit 4.1

 

	
			Principal Amount of US$200,000.00

				
			Issue Date: August 18, 2022

			
	
			Purchase Price of US$170,000.00

				 
	
			St. Louis Park, Minnesota

				 

 

PROMISSORY NOTE

 

FOR VALUE RECEIVED, the undersigned, MITESCO, INC., a corporation incorporated under the laws of the State of Delaware (the “Borrower”), hereby promises to pay to the order of MICHAEL C HOWE LIVING TRUST (the “Lender” and collectively with the Borrower, the “Parties”) on the Termination Date (as defined below), the principal amount two hundred thousand dollars and zero/100 United States Dollars (US$200,000.00) (the “Principal Amount”) plus an amount equal to ten percent of such Principal Amount. The purchase price for this promissory note (this “Note”) shall be one hundred and seventy thousand United States Dollars (US$170,000.00) (the “Purchase Price”) and shall be payable by the Lender to the Borrower on the Issue Date.

 

Section 1. Certain Terms Defined. The following terms for all purposes of this Promissory Note shall have the respective meanings specified below.

 

“Business Day” means any day except a Saturday, Sunday, or other day on which commercial banks in New York, New York are authorized by law to close.

 

“Default” means any event which, with the giving of notice, lapse of time, determination of materiality or fulfillment of any other applicable condition (or any combination of the foregoing), would constitute an Event of Default.

 

“Event of Default” has the meaning given to it in Section 11.

 

“GAAP” means generally accepted accounting principles in the United States, in effect from time to time, consistently applied.

 

“Material Adverse Effect” means a material adverse effect on (a) the business, operations, prospects, condition (financial or otherwise) or property of the Borrower, (b) the validity or enforceability of any provision of any Transaction Document, (c) the ability of any party to any Transaction Document to timely perform its obligations thereunder, or (d) the rights and remedies of the Lender under any Transaction Document.

 

“Termination Date” means the maturity date as defined in Section 2.

 

“Transaction Documents” means this Promissory Note and the Warrants

 

“Warrants” shall mean those common stock purchase warrants of the Borrower issuable to the Lender pursuant to Section 5 hereof.

 

 

 

 

Section 2. Purchase Price.  The Lender shall pay the Purchase Price to the Borrower on the Issue Date.

 

Section 3. Maturity of this Promissory Note. The Principal Amount shall be due and payable (together with accrued but unpaid interest thereon) plus an amount equal to ten percent (10%) of the Principal Amount, on the earliest of (i) if the Borrower successfully lists its shares of common stock on any of The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market, or the Nasdaq Capital Market, five business days after the date of such listing; or (ii) November 30, 2022 (the “Maturity Date”).

 

Section 4. Interest Payments. The unpaid Principal Amount shall bear interest at ten percent (10%) per annum (the “Interest Rate”), which interest shall be accrued on a monthly basis.

 

Notwithstanding the foregoing, following an Event of Default, the Principal Amount shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the lesser of (i) the maximum interest rate permitted by applicable law and (ii) eighteen percent (18%) (the “Default Rate”).

 

Interest shall be computed on the basis of a year of 360 days and paid for the actual number of days elapsed (including the first day but excluding the last day).

 

Section 5     Commitment Shares. As further consideration for the Purchase Price payable hereunder, promptly following the Issue Date, the Borrower shall issue to the Lender 82,000 of the Borrower’s restricted common stock, priced at USD0.25.

 

Section 6     Warrants. INTENTIONALLY OMITTED.

 

Section 7    Optional Prepayments. The Borrower may prepay the amounts owing under this Promissory Note in whole or in part at any time prior to the Maturity Date without penalty by paying the Principal Amount and an amount equal to ten percent of the Principal Amount, together with interest accrued thereon and any other amount which may be outstanding to the date of prepayment.

 

Section 8. General Provisions As To Payments. All payments owing under this Promissory Note by the Borrower hereunder shall be made not later than 12:00 Noon (New York City time) on the date when due by cashier’s check or by wire transfer of immediately available funds to the Lender’s account at a bank specified by the Lender in writing to the Borrower without reduction by reason of any set-off or counterclaim. In the event that any required payment date is not a Business Day, then said payment date shall be the next succeeding Business Day.

 

Section 9. Representations and Warranties of the Borrower. The Borrower represents and warrants to the Lender that:

 

	 	
			a.

				
			it is duly organized, validly existing and in good standing under the laws of the state of its incorporation;

			

 

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			b.

				
			it is duly authorized to do business in all jurisdictions material to the conduct of its business;

			

 

	 	
			c.

				
			it has full power and authority and holds all requisite governmental licenses, permits and other approvals to enter into and perform its obligations under this Promissory Note and to conduct its business substantially as currently conducted by it;

			

 

	 	
			d.

				
			the execution, delivery and performance of this Promissory Note are within the Borrower’s corporate powers and have been duly authorized by all necessary corporate action;

			

 

	 	
			e.

				
			this Promissory Note has been duly executed by an authorized officer of the Borrower and constitutes a legal, valid and binding obligation enforceable against the Borrower;

			

 

	 	
			f.

				
			this Promissory Note does not violate any of the Borrower’s organizational documents, any law, court order or material agreement by which the Borrower is bound; and

			

 

	 	
			g.

				
			the Borrower’s performance under this Promissory Note is not threatened by any pending or threatened litigation.

			

 

Section 10. Affirmative Covenants. Unless the Lender shall otherwise agree, the Borrower shall:

 

	 	
			a.

				
			(i) maintain its corporate existence and qualify and remain qualified to conduct business as currently conducted; (ii) maintain all approvals necessary for this Promissory Note and the Transaction Documents; and (iii) operate its business with due diligence, efficiency and in conformity with sound business practices;

			

 

	 	
			b.

				
			keep its properties and business insured with financially sound and reputable insurers against loss or damage in such manner and to the same extent as shall be no less than that generally accepted as customary in regard to property and business of like character;

			

 

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			c.

				
			comply in all material respects with all applicable laws, rules, regulations and orders of any government authority;

			

 

	 	
			d.

				
			maintain records, books, management information systems and financial control procedures which together are adequate to: (i) support the accounting practices and tax elections of the Borrower; and (ii) accurately, adequately and fairly reflect the financial condition of the Borrower and the results of its operations in conformity with GAAP;

			

 

	 	
			e.

				
			pay and discharge all taxes, assessments and governmental charges upon it, its income and its properties prior to the date on which penalties are attached thereto, unless and only to the extent that (i) such taxes, assessments and governmental charges shall be contested in good faith and by appropriate proceedings by the Borrower, (ii) reserves which are adequate under GAAP are maintained by the Borrower with respect thereto, and (iii) any failure to pay and discharge such taxes, assessments and governmental charges would not have and could not reasonably be expected to have a Material Adverse Effect;

			

 

	 	
			f.

				
			promptly inform the Lender, in writing, of any proposed material change in the nature or scope of the business or operations of the Borrower, or any event or condition which has or could reasonably be expected to have a Material Adverse Effect;

			

 

	 	
			g.

				
			comply with the requirements of all applicable laws, rules, regulations, and orders of any government authority, a breach of which would or would reasonably be expected to result in a Material Adverse Effect;

			

 

	 	
			h.

				
			obtain, make and keep in full force and effect all licenses, contracts, consents, approvals and authorizations from and registrations with government authorities that may be required to conduct its business, to maintain compliance with all applicable laws and regulations, and remit monies payable pursuant to this Promissory Note;

			

 

	 	
			i.

				
			promptly notify the Lender of the occurrence of (i) any Default or Event of Default; (ii) any event, development or circumstance whereby the Borrower’s financial statements fail in any material respect to present fairly and accurately, in accordance with GAAP, the financial condition and operating results of the Borrower as of the date of such financial statements; (iii) any material litigation or proceedings that are instituted or, to the knowledge of the Borrower, threatened against the Borrower or any of their respective assets; (iv) each and every event

			

 

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			which, at the giving of notice, lapse of time, determination of materiality or fulfillment of any other applicable condition (or any combination of the foregoing), would constitute an event of default (however described) under either of the Transaction Documents; and (v) any other development in the business or affairs of the Borrower if the effect thereof might have a Material Adverse Effect;

			

 

	 	
			j.

				
			comply with the Transaction Documents or any other document executed in connection with the transactions contemplated hereby;

			

 

	 	
			k.

				
			inform the Lender, as soon as they are made, of any judicial or non-judicial claims against the Borrower of more than $25,000 or the equivalent thereof in any other currency for each claim; and

			

 

	 	
			l.

				
			execute such other and further documents and instruments as the Lender may reasonably request to implement the provisions of this Promissory Note.

			

 

Section 11. Negative Covenants. Unless the Lender shall otherwise agree, the Borrower shall not:

 

	 	
			a.

				
			make any change to the scope or nature of its respective business activities as carried on at the date hereof or undertake any operations not permitted by the Transaction Documents;

			

 

	 	
			b.

				
			(i) violate any laws, ordinances, government rules or regulations to which it is subject or (ii) fail to obtain or maintain any patents, trademarks, service marks, trade names, copyrights, design patents, licenses, permits, franchises, or other governmental authorizations necessary to ownership of its property or the conduct of its respective business, in either case where such failure would have or could reasonably be expected to have a Material Adverse Effect; and

			

 

	 	
			c.

				
			assign or otherwise transfer, terminate, waive, or amend either of the Transaction Documents without the prior consent of the Lender, except for amendment in the ordinary course of business.

			

 

Section 12. Events Of Default. Each of the following events shall constitute an “Event of Default”:

 

	 	
			a.

				
			the amounts owing under this Promissory Note shall not be paid within five (5) Business Days of the date that such amount was due;

			

 

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			b.

				
			any warranty, representation or statement by the Borrower is or becomes false, misleading or incorrect in a material respect when made or regarded as made by the Borrower under this Promissory Note or the Transaction Documents;

			

 

	 	
			c.

				
			the Borrower fails to perform or observe any material undertaking, obligation or agreement expressed or implied in this Promissory Note or the Transaction Documents and such default is not cured within thirty (30) days, or such longer period as is determined by the Lender, after receipt by the Borrower of a notice from the Lender specifying the failure;

			

 

	 	
			d.

				
			a receiver, receiver and manager, official manager, trustee, administrator or similar official is appointed, or steps are taken for such appointment, over any of the assets or undertaking of the Borrower;

			

 

	 	
			e.

				
			the Borrower is, or becomes, unable to pay its debts when they are due or is, or becomes, unable to pay its debts within the meaning of the US Bankruptcy Code or is presumed to be insolvent under the US Bankruptcy Code;

			

 

	 	
			f.

				
			an application or order is made for the winding up or dissolution of the Borrower, which application or order is not dismissed or withdrawn within twenty on (21) days, or a resolution is passed or any steps are taken to pass a resolution for the winding up or dissolution of the Borrower otherwise than for the purpose of an amalgamation or reconstruction which has the prior written consent of the Lender; or

			

 

	 	
			g.

				
			the Borrower suspends payment of its debts generally.

			

 

If an Event of Default described above shall occur, the amounts owing under this Promissory Note shall become due and payable within thirty (30) days of the Lender’s issuance of a formal demand notice to the Borrower. Immediately upon the occurrence of any Event of Default described above, or upon failure to pay this Promissory Note on the Termination Date, the Lender, without any notice to the Borrower, which notice is expressly waived by the Borrower, may proceed to protect, enforce, exercise and pursue any and all rights and remedies available to the Lender under this Promissory Note and any other agreement or instrument, and any and all rights and remedies available to the Lender at law or in equity.

 

All sums paid or advanced by the Lender in connection with the foregoing and all out-of-pocket costs and reasonable expenses (including, with limitation, reasonable attorneys’ fees, and expenses) incurred in connection therewith, together with interest thereon at the Default Rate from the date of payment until repaid in full, shall be paid by the Borrower to the Lender on demand and shall constitute and become a part of the obligations of the Borrower secured hereby.

 

Section 13. Further Assurances. The Borrower hereby agrees that, from time to time upon the written request of the Lender, the Borrower will execute and deliver such further documents and do such other acts and things as the Lender may reasonably request in order to

 

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fully effect the purposes of this Promissory Note and to protect and preserve the priority and validity of the security interests granted hereunder.

 

Section 14. Powers And Remedies Cumulative; Delay Or Omission Not Waiver Of Event Of Default. No right or remedy herein conferred upon or reserved to the Lender is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

No delay or omission of the Lender to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power or shall be construed to be a waiver of any Event of Default or an acquiescence therein; and every power and remedy given by this Promissory Note or by law may be exercised from time to time, and as often as shall be deemed expedient, by the Lender.

 

Section 15. Transfers. The Parties may not transfer or assign this Promissory Note nor any right or obligation hereunder to any person or entity without the prior written consent of the other Party.

 

Section 16. Modification. This Promissory Note may be modified only with the written consent of both the Borrower and the Lender.

 

Section 17    Notices. Each notice authorized or required to be given to a party shall be in writing and may be delivered personally or sent by properly addressed prepaid mail in each case addressed to the party at its address set out in below:

 

In the case of the Lender:

 

Michael C. Howe Living Trust

 

xxx

 

In the case of the Borrower:

 

Mitesco, Inc.

1660 Highway 100 South

Suite 432

St. Louis Park, MN 55416

Attention: Jenny Lindstrom, Chief Legal Officer

 

Section 18    Most Favored Nations. So long as this Promissory Note is outstanding, upon any issuance by the Company or any of its subsidiaries of any new security, with any term that the Lender, reasonably believe is more favorable to the holder of such security or with a term in favor of the holder of such security which Lender reasonably believes was not similarly provided to the Lender in the Warrants, (i) the Company shall notify the Lender of such

 

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additional or more favorable term within one (1) business day of the issuance or amendment (as applicable) of the respective security, and (ii) such term, at the option of the Lender, shall become a part of the Transaction Documents (regardless of whether the Company complied with the notification provision of this Section).

 

Section 19    Miscellaneous. This Promissory Note shall be deemed to be a contract under the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said state. The parties hereto hereby waive presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance, and enforcement of or any default under this Promissory Note, except as specifically provided herein, and assent to extensions of the time of payment, or forbearance or other indulgence without notice. The Section headings herein are for convenience only and shall not affect the construction hereof. Any provision of this Promissory Note which is illegal, invalid, prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity, prohibition or unenforceability without invalidating or impairing the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. This Promissory Note shall bind the Borrower and his or her heirs, administrators, executors, personal representatives and permitted assigns. The rights under and benefits of this Promissory Note shall inure to the Lender and its permitted successors and assigns. This Promissory Note may be executed in any number of counterparts, each of which when executed and delivered to the other parties shall constitute an original, but all counterparts together shall constitute one and the same Promissory Note.

 

[Signature Page Follows]

 

 

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IN WITNESS WHEREOF, the Borrower has caused this instrument to be duly executed on the date indicated below.

 

Date: August 18, 2022

 

MITESCO, INC.

By:                                                                          

Name: Lawrence Diamond

Title: Chief Executive OfficerExhibit 10.1

 

 

	SBA Loan #2144067805	Application #3300716650

 

 

U.S.
Small Business Administration

 

Economic
Injury Disaster Loan

 

LOAN
AUTHORIZATION AND AGREEMENT

 

Date: 05.22.2020
(Effective Date)

 

On the above
date, this Administration (SBA) authorized (under Section 7(b) of the Small Business Act, as amended) a Loan (SBA Loan #2144067805) to
Pharmacology University, Inc. (Borrower) of 5665 Arapaho Road Suite 1923 dallas Texas 75248 in the amount of one hundred and forty-three
thousand two hundred and 00/100 Dollars ($143,200.00), upon the following conditions:

 

PAYMENT

 

	·		Installment payments, including principal and interest, of $698.00 Monthly, will begin
Twelve (12) months from the date of the promissory Note. The balance of principal and interest will be payable Thirty (30)
years from the date of the promissory Note.

 

INTEREST

 

	·		Interest will accrue at the rate of 3.75% per annum and will accrue only on funds
actually advanced from the date(s) of each advance.

 

PAYMENT
TERMS

 

	·		Each payment will be applied first to interest accrued to the date of receipt of each payment,
and the balance, if any, will be applied to principal.

 

	·		Each payment will be made when due even if at that time the full amount of the Loan has not
yet been advanced or the authorized amount of the Loan has been reduced.

 

COLLATERAL

 

	·		For loan amounts of greater than $25,000, Borrower hereby grants to SBA, the secured party
hereunder, a continuing security interest in and to any and all “Collateral” as described herein to secure payment and performance
of all debts, liabilities and obligations of Borrower to SBA hereunder without limitation, including but not limited to all interest,
other fees and expenses (all hereinafter called “Obligations”). The Collateral includes the following property that Borrower
now owns or shall acquire or create immediately upon the acquisition or creation thereof: all tangible and intangible personal property,
including, but not limited to: (a) inventory, (b) equipment, (c) instruments, including promissory notes (d) chattel paper, including
tangible chattel paper and electronic chattel paper, (e) documents, (f) letter of credit rights, (g) accounts, including health-care
insurance receivables and credit card receivables, (h) deposit accounts, (i) commercial tort claims, (j) general intangibles, including
payment intangibles and software and (k) as-extracted collateral as such terms may from time to time be defined in the Uniform Commercial
Code. The security interest Borrower grants includes all accessions, attachments, accessories, parts, supplies and replacements for the
Collateral, all products, proceeds and collections thereof and all records and data relating thereto.

 

	·		For loan amounts of $25,000 or less, SBA is not taking a security interest in any collateral.

 

 

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REQUIREMENTS
RELATIVE TO COLLATERAL

 

	·		Borrower will not sell or transfer any collateral (except normal inventory turnover in the
ordinary course of business) described in the "Collateral" paragraph hereof without the prior written consent of SBA.

 

	·		Borrower will neither seek nor accept future advances under any superior liens on the collateral
securing this Loan without the prior written consent of SBA.

 

USE OF
LOAN PROCEEDS

 

	·		Borrower will use all the proceeds of this Loan solely as working capital to alleviate economic
injury caused by disaster occurring in the month of January 31, 2020 and continuing thereafter and to pay Uniform Commercial Code (UCC)
lien filing fees and a third-party UCC handling charge of $100 which will be deducted from the Loan amount stated above.

 

REQUIREMENTS
FOR USE OF LOAN PROCEEDS AND RECEIPTS

 

	·		Borrower will obtain and itemize receipts (paid receipts, paid invoices or cancelled checks)
and contracts for all Loan funds spent and retain these receipts for 3 years from the date of the final disbursement. Prior to each subsequent
disbursement (if any) and whenever requested by SBA, Borrower will submit to SBA such itemization together with copies of the receipts.

 

	·		Borrower will not use, directly or indirectly, any portion of the proceeds of this Loan to
relocate without the prior written permission of SBA. The law prohibits the use of any portion of the proceeds of this Loan for voluntary
relocation from the business area in which the disaster occurred. To request SBA's prior written permission to relocate, Borrower will
present to SBA the reasons therefore and a description or address of the relocation site. Determinations of (1) whether a relocation
is voluntary or otherwise, and (2) whether any site other than the disaster-affected location is within the business area in which the
disaster occurred, will be made solely by SBA.

 

	·		Borrower will, to the extent feasible, purchase only American-made equipment and products
with the proceeds of this Loan.

 

	·		Borrower will make any request for a loan increase for additional disaster-related damages
as soon as possible after the need for a loan increase is discovered. The SBA will not consider a request for a loan increase received
more than two (2) years from the date of loan approval unless, in the sole discretion of the SBA, there are extraordinary and
unforeseeable circumstances beyond the control of the borrower.

 

DEADLINE
FOR RETURN OF LOAN CLOSING DOCUMENTS

 

	·		Borrower will sign and return the loan closing documents to SBA within 2 months of the
date of this Loan Authorization and Agreement. By notifying the Borrower in writing, SBA may cancel this Loan if the Borrower fails
to meet this requirement. The Borrower may submit and the SBA may, in its sole discretion, accept documents after 2 months of the date
of this Loan Authorization and Agreement.

 

COMPENSATION
FROM OTHER SOURCES

 

	·		Eligibility for this disaster Loan is limited to disaster losses that are not compensated
by other sources. Other sources include but are not limited to: (1) proceeds of policies of insurance or other indemnifications, (2)
grants or other reimbursement (including loans) from government agencies or private organizations, (3) claims for civil liability against
other individuals, organizations or governmental entities, and (4) salvage (including any sale or re-use) of items of damaged property.

 

 

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	·		Borrower will promptly notify SBA of the existence and status of any claim or application
for such other compensation, and of the receipt of any such compensation, and Borrower will promptly submit the proceeds of same (not
exceeding the outstanding balance of this Loan) to SBA.

 

	·		Borrower hereby assigns to SBA the proceeds of any such compensation from other sources and
authorizes the payor of same to deliver said proceeds to SBA at such time and place as SBA shall designate.

 

	·		SBA will in its sole discretion determine whether any such compensation from other sources
is a duplication of benefits. SBA will use the proceeds of any such duplication to reduce the outstanding balance of this Loan, and Borrower
agrees that such proceeds will not be applied in lieu of scheduled payments.

 

DUTY
TO MAINTAIN HAZARD INSURANCE

 

	·		Within 12 months from the date of this Loan Authorization and
Agreement the Borrower will provide proof of an active and in effect hazard insurance policy including fire, lightning, and extended
coverage on all items used to secure this loan to at least 80% of the insurable value. Borrower will not cancel such coverage and will
maintain such coverage throughout the entire term of this Loan. BORROWER MAY NOT BE ELIGIBLE FOR EITHER ANY FUTURE DISASTER ASSISTANCE
OR SBA FINANCIAL ASSISTANCE IF THIS INSURANCE IS NOT MAINTAINED AS STIPULATED HEREIN THROUGHOUT THE ENTIRE TERM OF THIS LOAN. Please
submit proof of insurance to: U.S. Small Business Administration, Office of Disaster Assistance, 14925 Kingsport Rd, Fort Worth, TX.
76155.

 

BOOKS
AND RECORDS

 

	·		Borrower will maintain current and proper books of account in a manner satisfactory to SBA
for the most recent 5 years until 3 years after the date of maturity, including extensions, or the date this Loan is paid in full, whichever
occurs first. Such books will include Borrower's financial and operating statements, insurance policies, tax returns and related filings,
records of earnings distributed and dividends paid and records of compensation to officers, directors, holders of 10% or more of Borrower's
capital stock, members, partners and proprietors.

 

	·		Borrower authorizes SBA to make or cause to be made, at Borrower's expense and in such a
manner and at such times as SBA may require: (1) inspections and audits of any books, records and paper in the custody or control of
Borrower or others relating to Borrower's financial or business conditions, including the making of copies thereof and extracts therefrom,
and (2) inspections and appraisals of any of Borrower's assets.

 

	·		Borrower will furnish to SBA, not later than 3 months following the expiration of Borrower's
fiscal year and in such form as SBA may require, Borrower's financial statements.

 

	·		Upon written request of SBA, Borrower will accompany such statements with an 'Accountant's
Review Report' prepared by an independent public accountant at Borrower's expense.

 

	·		Borrower authorizes all Federal, State and municipal authorities to furnish reports of examination,
records and other information relating to the conditions and affairs of Borrower and any desired information from such reports, returns,
files, and records of such authorities upon request of SBA.

 

 

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LIMITS
ON DISTRIBUTION OF ASSETS

 

	·		Borrower will not, without the prior written consent of SBA, make any distribution of Borrower’s
assets, or give any preferential treatment, make any advance, directly or indirectly, by way of loan, gift, bonus, or otherwise, to any
owner or partner or any of its employees, or to any company directly or indirectly controlling or affiliated with or controlled by Borrower,
or any other company.

 

EQUAL
OPPORTUNITY REQUIREMENT

 

	·		If Borrower has or intends to have employees, Borrower will post SBA Form 722, Equal Opportunity
Poster (copy attached), in Borrower's place of business where it will be clearly visible to employees, applicants for employment, and
the general public.

 

DISCLOSURE
OF LOBBYING ACTIVITIES

 

·
Borrower agrees to the attached Certification Regarding Lobbying Activities

 

BORROWER’S CERTIFICATIONS

 

Borrower
certifies that:

 

	·		There has been no substantial adverse change in Borrower's financial condition (and organization,
in case of a business borrower) since the date of the application for this Loan. (Adverse changes include, but are not limited to: judgment
liens, tax liens, mechanic's liens, bankruptcy, financial reverses, arrest or conviction of felony, etc.)

 

	·		No fees have been paid, directly or indirectly, to any representative (attorney, accountant,
etc.) for services provided or to be provided in connection with applying for or closing this Loan, other than those reported on SBA
Form 5 Business Disaster Loan Application'; SBA Form 3501 COVID-19 Economic Injury Disaster Loan Application; or SBA Form 159, 'Compensation
Agreement'. All fees not approved by SBA are prohibited.

 

	·		All representations in the Borrower's Loan application (including
all supplementary submissions) are true, correct and complete and are offered to induce SBA to make this Loan.

 

	·		No claim or application for any other compensation for disaster losses has been submitted
to or requested of any source, and no such other compensation has been received, other than that which Borrower has fully disclosed to
SBA.

 

	·		Neither the Borrower nor, if the Borrower is a business, any principal who owns at least
50% of the Borrower, is delinquent more than 60 days under the terms of any: (a) administrative order; (b) court order; or (c) repayment
agreement that requires payment of child support.

 

	·		Borrower certifies that no fees have been paid, directly or indirectly, to any representative
(attorney, accountant, etc.) for services provided or to be provided in connection with applying for or closing this Loan, other than
those reported on the Loan Application. All fees not approved by SBA are prohibited.If an Applicant chooses to employ an Agent, the compensation
an Agent charges to and that is paid by the Applicant must bear a necessary and reasonable relationship to the services actually performed
and must be comparable to those charged by other Agents in the geographical area. Compensation cannot be contingent on loan approval.
In addition, compensation must not include any expenses which are deemed by SBA to be unreasonable for services actually performed or
expenses actually incurred. Compensation must not include charges prohibited in 13 CFR 103 or SOP 50-30,
Appendix 1. If the compensation exceeds $500 for a disaster home loan or $2,500 for a disaster business loan, Borrower must
fill out the Compensation Agreement Form 159D which will be provided for Borrower upon request or can be found on the SBA website.

 

 

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	·		Borrower certifies, to the best of its, his or her knowledge and belief, that the certifications
and representations in the attached Certification Regarding Lobbying are true, correct and complete and are offered to induce SBA to
make this Loan.

 

CIVIL
AND CRIMINAL PENALTIES

 

	·		Whoever wrongfully misapplies the proceeds of an SBA disaster loan shall be civilly liable
to the Administrator in an amount equal to one-and-one half times the original principal amount of the loan under 15 U.S.C. 636(b). In
addition, any false statement or misrepresentation to SBA may result in criminal, civil or administrative sanctions including, but not
limited to: 1) fines, imprisonment or both, under 15 U.S.C. 645, 18 U.S.C. 1001, 18 U.S.C. 1014, 18 U.S.C. 1040, 18 U.S.C. 3571, and
any other applicable laws; 2) treble damages and civil penalties under the False Claims Act, 31 U.S.C. 3729; 3) double damages and civil
penalties under the Program Fraud Civil Remedies Act, 31 U.S.C. 3802; and 4) suspension and/or debarment from all Federal procurement
and non-procurement transactions. Statutory fines may increase if amended by the Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015.

 

RESULT
OF VIOLATION OF THIS LOAN AUTHORIZATION AND AGREEMENT

 

	·		If Borrower violates any of the terms or conditions of this Loan Authorization and Agreement,
the Loan will be in default and SBA may declare all or any part of the indebtedness immediately due and payable. SBA's failure to exercise
its rights under this paragraph will not constitute a waiver.

 

	·		A default (or any violation of any of the terms and conditions) of any SBA Loan(s) to Borrower
and/or its affiliates will be considered a default of all such Loan(s).

 

DISBURSEMENT
OF THE LOAN

 

	·		Disbursements will be made by and at the discretion of SBA Counsel, in accordance with this
Loan Authorization and Agreement and the general requirements of SBA.

 

	·		Disbursements may be made in increments as needed.

 

	·		Other conditions may be imposed by SBA pursuant to general requirements of SBA.

 

	·		Disbursement may be withheld if, in SBA's sole discretion, there has been an adverse change
in Borrower's financial condition or in any other material fact represented in the Loan application, or if Borrower fails to meet any
of the terms or conditions of this Loan Authorization and Agreement.

 

	·		NO DISBURSEMENT WILL BE MADE LATER THAN 6 MONTHS FROM THE DATE OF THIS LOAN AUTHORIZATION
AND AGREEMENT UNLESS SBA, IN ITS SOLE DISCRETION, EXTENDS THIS DISBURSEMENT PERIOD.

 

 

    	 	5	 

     

    

 

PARTIES
AFFECTED

 

	·		This Loan Authorization and Agreement will be binding upon Borrower and Borrower's successors
and assigns and will inure to the benefit of SBA and its successors and assigns.

 

RESOLUTION
OF BOARD OF DIRECTORS

 

	·		Borrower shall, within 180 days of receiving any disbursement of this Loan, submit the appropriate
SBA Certificate and/or Resolution to the U.S. Small Business Administration, Office of Disaster Assistance, 14925 Kingsport Rd, Fort
Worth, TX. 76155.

 

ENFORCEABILITY

 

	·		This Loan Authorization and Agreement is legally binding, enforceable and approved upon Borrower’s
signature, the SBA’s approval and the Loan Proceeds being issued to Borrower by a government issued check or by electronic debit
of the Loan Proceeds to Borrower’ banking account provided by Borrower in application for this Loan.

 

 

/s/ James
E. Rivera

James E.
Rivera

Associate
Administrator

U.S. Small
Business Administration

 

 

The undersigned
agree(s) to be bound by the terms and conditions herein during the term of this Loan, and further agree(s) that no provision stated herein
will be waived without prior written consent of SBA. Under penalty of perjury of the United States of America, I hereby certify that
I am authorized to apply for and obtain a disaster loan on behalf of Borrower, in connection with the effects of the COVID-19 emergency.

 

 

Pharmacology
University, Inc.

 

 

/s/ Henry Levinski

Henry Levinski,
Owner/Officer

Date: 05.22.2020

 

 

Note:
Corporate Borrowers must execute Loan Authorization and Agreement in corporate name, by a duly authorized officer. Partnership Borrowers
must execute in firm name, together with signature of a general partner. Limited Liability entities must execute in the entity name by
the signature of the authorized managing person.

 

 

 

    	 	6	 

     

    

 

 

 

	 	U.S. Small Business Administration

                                              

                                             NOTE

                                              

                                             (SECURED DISASTER LOANS)
	Date: 05.22.2020

                          
Loan Amount: $143,200.00

Annual Interest Rate: 3.75%  

 

 

	SBA Loan # 2144067805	Application #3300716650

 

 

1. PROMISE
TO PAY: In return for a loan, Borrower promises to pay to the order of SBA the amount of one hundred and forty-three thousand
two hundred and 00/100 Dollars ($143,200.00), interest on the unpaid principal balance, and all other amounts required by
this Note.

 

2. DEFINITIONS:
A) “Collateral” means any property taken as security for payment of this Note or any guarantee of this Note. B) “Guarantor”
means each person or entity that signs a guarantee of payment of this Note. C) “Loan Documents” means the documents
related to this loan signed by Borrower, any Guarantor, or anyone who pledges collateral.

 

3. PAYMENT
TERMS: Borrower must make all payments at the place SBA designates. Borrower may prepay this Note in part or in full at any time,
without notice or penalty. Borrower must pay principal and interest payments of $698.00 every month beginning
Twelve (12) months from the date of the Note. SBA will apply each installment payment first to pay interest accrued to
the day SBA receives the payment and will then apply any remaining balance to reduce principal. All remaining principal and accrued interest
is due and payable Thirty (30) years from the date of the Note.

 

4. DEFAULT:
Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if Borrower: A) Fails
to comply with any provision of this Note, the Loan Authorization and Agreement, or other Loan Documents; B) Defaults on any other
SBA loan; C) Sells or otherwise transfers, or does not preserve or account to SBA’s satisfaction for, any of the Collateral
or its proceeds; D) Does not disclose, or anyone acting on their behalf does not disclose, any material fact to SBA; E) Makes,
or anyone acting on their behalf makes, a materially false or misleading representation to SBA; F) Defaults on any loan or agreement
with another creditor, if SBA believes the default may materially affect Borrower’s ability to pay this Note; G) Fails to
pay any taxes when due; H) Becomes the subject of a proceeding under any bankruptcy or insolvency law; I) Has a receiver
or liquidator appointed for any part of their business or property; J) Makes an assignment for the benefit of creditors; K)
Has any adverse change in financial condition or business operation that SBA believes may materially affect Borrower’s ability
to pay this Note; L) Dies; M) Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without
SBA’s prior written consent; or, N) Becomes the subject of a civil or criminal action that SBA believes may materially affect
Borrower’s ability to pay this Note.

 

5. SBA’S
RIGHTS IF THERE IS A DEFAULT: Without notice or demand and without giving up any of its rights, SBA may: A) Require immediate
payment of all amounts owing under this Note; B) Have recourse to collect all amounts owing from any Borrower or Guarantor (if
any); C) File suit and obtain judgment; D) Take possession of any Collateral; or E) Sell, lease, or otherwise dispose
of, any Collateral at public or private sale, with or without advertisement.

 

6. SBA’S
GENERAL POWERS: Without notice and without Borrower’s consent, SBA may: A) Bid on or buy the Collateral at its sale
or the sale of another lienholder, at any price it chooses; B) Collect amounts due under this Note, enforce the terms of this
Note or any other Loan Document, and preserve or dispose of the Collateral. Among other things, the expenses may include payments for
property taxes, prior liens, insurance, appraisals, environmental remediation costs, and reasonable attorney’s fees and costs.
If SBA incurs such expenses, it may demand immediate reimbursement from Borrower or add the expenses to the principal balance; C)
Release anyone obligated to pay this Note; D) Compromise, release, renew, extend or substitute any of the Collateral; and
E) Take any action necessary to protect the Collateral or collect amounts owing on this Note.

 

 

    	 	1	 

     

    

 

7. FEDERAL
LAW APPLIES: When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. SBA
may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using
such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower
may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law.

 

8. GENERAL
PROVISIONS: A) All individuals and entities signing this Note are jointly and severally liable. B) Borrower waives all suretyship
defenses. C) Borrower must sign all documents required at any time to comply with the Loan Documents and to enable SBA to acquire,
perfect, or maintain SBA’s liens on Collateral. D) SBA may exercise any of its rights separately or together, as many times
and in any order it chooses. SBA may delay or forgo enforcing any of its rights without giving up any of them. E) Borrower may
not use an oral statement of SBA to contradict or alter the written terms of this Note. F) If any part of this Note is unenforceable,
all other parts remain in effect. G) To the extent allowed by law, Borrower waives all demands and notices in connection with
this Note, including presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that
SBA did not obtain any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; impaired Collateral; or did not obtain
the fair market value of Collateral at a sale. H) SBA may sell or otherwise transfer this Note.

 

9. MISUSE
OF LOAN FUNDS: Anyone who wrongfully misapplies any proceeds of the loan will be civilly liable to SBA for one and onehalf times
the proceeds disbursed, in addition to other remedies allowed by law.

 

10. BORROWER’S
NAME(S) AND SIGNATURE(S): By signing below, each individual or entity acknowledges and accepts personal obligation and full liability
under the Note as Borrower.

 

 

Pharmacology University, Inc.

 

/s/ Henry
Levinski

 

 Henry
Levinski, Owner/Officer

 

 

    	 	2	 

     

    

 

 

	 	U.S. Small
Business Administration

 

Security
Agreement

 

 

	SBA Loan #:	2144067805

 

	Borrower:	Pharmacology University, Inc.

 

	Secured Party:	The Small Business Administration, an Agency of the U.S. Government

 

	Date:	05.22.2020

 

	Note Amount:	$143,200.00

 

 

1. DEFINITIONS.

 

Unless otherwise
specified, all terms used in this Agreement will have the meanings ascribed to them under the Official Text of the Uniform Commercial
Code, as it may be amended from time to time, (“UCC”). “SBA” means the Small Business Administration, an Agency
of the U.S. Government.

 

2.
GRANT OF SECURITY INTEREST.

 

For value
received, the Borrower grants to the Secured Party a security interest in the property described below in paragraph 4 (the “Collateral”).

 

3.
OBLIGATIONS SECURED.

 

This Agreement
secures the payment and performance of: (a) all obligations under a Note dated 05.22.2020, made by Pharmacology University, Inc., made
payable to Secured Lender, in the amount of $143,200.00 (“Note”), including all costs and
expenses (including reasonable attorney’s fees), incurred by Secured Party in the disbursement, administration and collection of
the loan evidenced by the Note; (b) all costs and expenses (including reasonable attorney’s fees), incurred by Secured Party in
the protection, maintenance and enforcement of the security interest hereby granted; (c) all obligations of the Borrower in any other
agreement relating to the Note; and (d) any modifications, renewals, refinancings, or extensions of the foregoing obligations.

 

 

    	 	1	 

     

    

 

4.
COLLATERAL DESCRIPTION.

 

The
Collateral in which this security interest is granted includes the following property that Borrower now owns or shall acquire or
create immediately upon the acquisition or creation thereof: all tangible and intangible personal property, including, but not
limited to: (a) inventory, (b) equipment, (c) instruments, including promissory notes (d) chattel paper, including tangible chattel
paper and electronic chattel paper, (e) documents, (f) letter of credit rights, (g) accounts, including health-care insurance
receivables and credit card receivables, (h) deposit accounts, (i) commercial tort claims, (j) general intangibles, including
payment intangibles and software and (k) as-extracted collateral as such terms may from time to time be defined in the Uniform
Commercial Code. The security interest Borrower grants includes all accessions, attachments, accessories, parts, supplies and
replacements for the Collateral, all products, proceeds and collections thereof and all records and data relating thereto.

 

5.
RESTRICTIONS ON COLLATERAL TRANSFER.

 

Borrower
will not sell, lease, license or otherwise transfer (including by granting security interests, liens, or other encumbrances in) all or
any part of the Collateral or Borrower’s interest in the Collateral without Secured Party’s written or electronically communicated
approval, except that Borrower may sell inventory in the ordinary course of business on customary terms. Borrower may collect and use
amounts due on accounts and other rights to payment arising or created in the ordinary course of business, until notified otherwise by
Secured Party in writing or by electronic communication.

 

6.
MAINTENANCE AND LOCATION OF COLLATERAL; INSPECTION; INSURANCE.

 

Borrower
must promptly notify Secured Party by written or electronic communication of any change in location of the Collateral, specifying the
new location. Borrower hereby grants to Secured Party the right to inspect the Collateral at all reasonable times and upon reasonable
notice. Borrower must: (a) maintain the Collateral in good condition; (b) pay promptly all taxes, judgments, or charges of any kind levied
or assessed thereon; (c) keep current all rent or mortgage payments due, if any, on premises where the Collateral is located; and (d)
maintain hazard insurance on the Collateral, with an insurance company and in an amount approved by Secured Party (but in no event less
than the replacement cost of that Collateral), and including such terms as Secured Party may require including a Lender’s Loss
Payable Clause in favor of Secured Party. Borrower hereby assigns to Secured Party any proceeds of such policies and all unearned premiums
thereon and authorizes and empowers Secured Party to collect such sums and to execute and endorse in Borrower’s name all proofs
of loss, drafts, checks and any other documents necessary for Secured Party to obtain such payments.

 

7.
CHANGES TO BORROWER’S LEGAL STRUCTURE, PLACE OF BUSINESS, JURISDICTION OF ORGANIZATION, OR NAME.

 

Borrower
must notify Secured Party by written or electronic communication not less than 30 days before taking any of the following actions: (a)
changing or reorganizing the type of organization or form under which it does business; (b) moving, changing its place of business or
adding a place of business; (c) changing its jurisdiction of organization; or (d) changing its name. Borrower will pay for the preparation
and filing of all documents Secured Party deems necessary to maintain, perfect and continue the perfection of Secured Party’s security
interest in the event of any such change.

 

8.
PERFECTION OF SECURITY INTEREST.

 

Borrower
consents, without further notice, to Secured Party’s filing or recording of any documents necessary to perfect, continue, amend
or terminate its security interest. Upon request of Secured Party, Borrower must sign or otherwise authenticate all documents that Secured
Party deems necessary at any time to allow Secured Party to acquire, perfect, continue or amend its security interest in the Collateral.
Borrower will pay the filing and recording costs of any documents relating to Secured Party’s security interest. Borrower ratifies
all previous filings and recordings, including financing statements and notations on certificates of title. Borrower will cooperate with
Secured Party in obtaining a Control Agreement satisfactory to Secured Party with respect to any Deposit Accounts or Investment Property,
or in otherwise obtaining control or possession of that or any other Collateral.

 

 

    	 	2	 

     

    

 

9.
DEFAULT.

 

Borrower
is in default under this Agreement if: (a) Borrower fails to pay, perform or otherwise comply with any provision of this Agreement; (b)
Borrower makes any materially false representation, warranty or certification in, or in connection with, this Agreement, the Note, or
any other agreement related to the Note or this Agreement; (c) another secured party or judgment creditor exercises its rights against
the Collateral; or (d) an event defined as a “default” under the Obligations occurs. In the event of default and if Secured
Party requests, Borrower must assemble and make available all Collateral at a place and time designated by Secured Party. Upon default
and at any time thereafter, Secured Party may declare all Obligations secured hereby immediately due and payable, and, in its sole discretion,
may proceed to enforce payment of same and exercise any of the rights and remedies available to a secured party by law including those
available to it under Article 9 of the UCC that is in effect in the jurisdiction where Borrower or the Collateral is located. Unless
otherwise required under applicable law, Secured Party has no obligation to clean or otherwise prepare the Collateral for sale or other
disposition and Borrower waives any right it may have to require Secured Party to enforce the security interest or payment or performance
of the Obligations against any other person.

 

10.
FEDERAL RIGHTS.

 

When SBA
is the holder of the Note, this Agreement will be construed and enforced under federal law, including SBA regulations. Secured Party
or SBA may use state or local procedures for filing papers, recording documents, giving notice, enforcing security interests or liens,
and for any other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax
or liability. As to this Agreement, Borrower may not claim or assert any local or state law against SBA to deny any obligation, defeat
any claim of SBA, or preempt federal law.

 

11.
GOVERNING LAW.

 

Unless SBA
is the holder of the Note, in which case federal law will govern, Borrower and Secured Party agree that this Agreement will be governed
by the laws of the jurisdiction where the Borrower is located, including the UCC as in effect in such jurisdiction and without reference
to its conflicts of laws principles.

 

12.
SECURED PARTY RIGHTS.

 

All rights
conferred in this Agreement on Secured Party are in addition to those granted to it by law, and all rights are cumulative and may be
exercised simultaneously. Failure of Secured Party to enforce any rights or remedies will not constitute an estoppel or waiver of Secured
Party’s ability to exercise such rights or remedies. Unless otherwise required under applicable law, Secured Party is not liable
for any loss or damage to Collateral in its possession or under its control, nor will such loss or damage reduce or discharge the Obligations
that are due, even if Secured Party’s actions or inactions caused or in any way contributed to such loss or damage.

 

13.
SEVERABILITY.

 

If any provision
of this Agreement is unenforceable, all other provisions remain in effect.

 

 

    	 	3	 

     

    

 

14.
BORROWER CERTIFICATIONS.

 

Borrower
certifies that: (a) its Name (or Names) as stated above is correct; (b) all Collateral is owned or titled in the Borrower’s name
and not in the name of any other organization or individual; (c) Borrower has the legal authority to grant the security interest in the
Collateral; (d) Borrower’s ownership in or title to the Collateral is free of all adverse claims, liens, or security interests
(unless expressly permitted by Secured Party); (e) none of the Obligations are or will be primarily for personal, family or household
purposes; (f) none of the Collateral is or will be used, or has been or will be bought primarily for personal, family or household purposes;
(g) Borrower has read and understands the meaning and effect of all terms of this Agreement.

 

15.
BORROWER NAME(S) AND SIGNATURE(S).

 

By signing
or otherwise authenticating below, each individual and each organization becomes jointly and severally obligated as a Borrower under
this Agreement.

 

 

Pharmacology
University, Inc.

 

/s/ Henry
Levinski

 

Henry
Levinski, Owner/Officer

Date: 05.22.2020

 

    	 	4

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