Document:

Exhibit 10_4

 

THIS NOTE
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN
STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT
AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. LENDERS
SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE
ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT
ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

LG
CAPITAL FUNDING, LLC

COLLATERALIZED
SECURED PROMISSORY NOTE

BACK
END NOTE

 

	$63,000.00	 	Brooklyn,
    NY
	 	 	October
    3, 2018

 

1.
Principal and Interest

 

FOR VALUE
RECEIVED, LG Capital Funding, LLC, a New York Limited Liability Company (the "Company") hereby absolutely and unconditionally
promises to pay to Regen Biopharma, Inc. (the "Lender"), or order, the principal amount of Sixty Three Thousand Dollars
($63,000.00) no later than June 3, 2019, unless the Lender does not meet the "current information requirements" required
under Rule 144 of the Securities Act of 1933, as amended, in which case the Company may declare the offsetting note issued by
the Lender on the same date herewith to be in Default (as defined in that note) and cross cancel its payment obligations under
this Note as well as the Lenders payment obligations under the offsetting note. This Full Recourse Note shall bear simple interest
at the rate of 8%.

 

2.
Repayments and Prepayments; Security.

 

a.                  
All principal under this Note shall be due and
payable no later than June 3, 2019 unless the Lender does not meet the "current information requirements" required under
Rule 144 of the Securities Act of 1933, as amended, in which case the Company may declare the offsetting note issued by the Lender
on the same date herewith to be in Default (as defined in that note) and cross cancel
its payment obligations under this Note as well as the Lenders payment obligations under the offsetting note.

 

b.                 
The Company may pay this Note at any time. This
note may not be assigned by the Lender, except by operation of law.

 

c.                  
This Note shall initially be secured by the pledge
of the $63,000.00 8% convertible promissory note issued to the Company by the Lender on even date herewith (the "Lender Note").
The Company may exchange this collateral for other collateral with an appraised value of at least $63,000.00, by providing
3 days prior written notice to the Lender. If the Lender does not object to the substitution of collateral in that 3 day
period, such substitution of collateral shall be deemed to have been accepted by the Lender. Notwithstanding the foregoing, an
exchange of collateral for $63,000.00 in cash shall not require the approval of the Lender. All collateral shall be retained
by New Venture Attorneys, P.C., which shall act as the escrow agent for the collateral for the benefit of the Lender. The Company
may not effect any conversions under the Lender Note until it has made full cash payment for the portion of the Lender Note being
converted.

 

3.
Events of Default; Acceleration.

 

a.                 
The principal amount of this Note is subject
to prepayment in whole or in part upon the occurrence and during the continuance of any of the following events (each,
an "Event of Default"): the initiation of any bankruptcy, insolvency, moratorium, receivership or reorganization
by or against the Company, or a general assignment of assets by the Company for the benefit of creditors. Upon the occurrence
of any Event of Default, the entire unpaid principal balance of this Note and a11 of the unpaid interest accrued thereon sha11
be immediately due and payable. The Company may offset amounts due to the Lender under this Note by similar amounts that may be
due to the Company by the Lender resulting from breaches under the Lender Note.

 

b.                 
No remedy herein conferred upon the Lender is
intended to be exclusive of any other remedy and each and every remedy shall be cumulative and in addition to every other remedy
hereunder, now or hereafter existing at law or in equity or otherwise. The Company accepts and agrees that this Note is a full
recourse note and that the Holder may exercise any and all remedies available to it under law.

 

4.
Notices.

 

a.                   
AH notices, reports and other communications
required or permitted hereunder shall be in writing and may be delivered in person, by telecopy with written confirmation, overnight
delivery service or U.S. mail, in which event it may be mailed by first-class, certified or registered, postage prepaid, addressed
(i) if to a Lender, at such Lender's address as the Lender shall have furnished the Company in writing and (ii) if to the Company
at such address as the Company shall have furnished the Lender(s) in writing.

 

b.                
Each such notice, report or other communication
shall for all purposes under this Note be treated as effective or having been given when delivered if delivered persona11y or,
if sent by mail, at the earlier of its receipt or 72 hours after the same has been deposited in a regularly maintained receptacle
for the deposit of the United States mail, addressed and mailed as aforesaid, or, if sent by electronic communication with confirmation,
upon the delivery of electronic communication.

 

5.
Miscellaneous.

 

a.                    
Neither this Note nor any provisions hereof may be changed, waived, discharged or terminated orally, but only by a signed statement
in writing.

 

b.                 
No failure or delay by the Lender to exercise
any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege
preclude any other right, power or privilege. The provisions of this Note are severable and if any one provision hereof shall
be held invalid or unenforceable in whole or in part in any jurisdiction, such invalidity or unenforceability shall affect only
such provision in such jurisdiction. This Note expresses the entire understanding of the parties with respect to the transactions
contemplated hereby. The Company and every endorser and guarantor of this Note regardless of the time, order or place of signing
hereby waives presentment, demand, protest and notice of every kind, and assents to any extension or postponement of the time
for payment or any other indulgence, to any substitution, exchange or release of collateral, and to the addition or release of
any other party or person primarily or secondarily liable.

 

c.                  
If Lender retains an attorney for collection
of this Note, or if any suit or proceeding is brought for the recovery of all, or any part of, or for protection of the indebtedness
respected by this Note, then the Company agrees to pay all costs and expenses of the suit or proceeding, or any appeal thereof,
incurred by the Lender, including without limitation, reasonable attorneys' fees.

 

d.                 
This Note shall for all purposes be governed
by, and construed in accordance with the laws of the State of New York (without reference to conflict oflaws).

 

e.                  
This Note shall be binding upon the Company's
successors and assigns, and shall inure to the benefit of the Lender's successors and assigns.

 

    	 	1	 

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Note to be executed by its duly authorized officer to take effect as of the date
first hereinabove written.

 

	 	 	LG CAPITAL FUNDING, LLC
	 	 	 
	 	 	By:
	 	 	Title:
	 	 	 
	 	 	 
	 	 	APPROVED:
	 	 	/s/ David Koos
	 	 	 
	 	 	Title: David Koos, Chairman & CEO

    	 	2THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HA VE NOT BEEN
AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE
PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS
PROMULGATED THEREUNDER (THE "1933 ACT")

 

US $50,000.00

 

REGEN BIOPHARMA, INC.

10% CONVERTIBLE REDEEMABLE NOTE

DUE JANUARY 22, 2020

 

FOR VALUE RECEIVED, Regen Biopharma, Inc. (the "Company")
promises to pay to the order of ADAR ALEF, LLC and its authorized successors and permitted assigns ("Holder") the aggregate
principal face amount of Fifty Thousand Dollars (U.S. $50,000.00) on January 22, 2020 ("Maturity Date") and to pay interest
on the principal amount outstanding hereunder at the rate of 10% per annum commencing on January 22, 2019. The interest will be
paid to the Holder in whose name this Note is registered on the records of the Company regarding registration and transfers of
this Note. The principal of, and interest on, this Note are payable at 38 Olympia Ln, Monsey, NY 10952, initially, and if changed,
last appearing on the records of the Company as designated in writing by the Holder hereof from time to time. The Company will
pay each interest payment and the outstanding principal due upon this Note before or on the Maturity Date, less any amounts required
by law to be deducted or withheld, to the Holder of this Note by check or wire transfer addressed to such Holder at the last address
appearing on the records of the Company. The forwarding of such check or wire transfer shall constitute a payment of outstanding
principal hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented
by such check or wire transfer. Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein.

 

This Note is subject to the following additional provisions:

 

1. This Note is exchangeable for an equal aggregate
principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same.

 

No charge will be made for such registration or transfer
or exchange, except that Holder shall pay any tax or other governmental charges payable in connection therewith.

 

2. The Company shall be entitled to withhold from all
payments any amounts required to be withheld under applicable laws.

 

3. This Note may be transferred or exchanged only in compliance with the Securities
Act of 1933, as amended ("Act") and applicable state securities laws. Any attempted transfer to a non-qualifying party
shall be treated by the Company as void. Prior to due presentment for transfer of this Note, the Company and any agent of the
Company may treat the person in whose name this Note is duly registered on the Company's records as the owner hereof for all other
purposes, whether or not this Note be overdue, and neither the Company nor any such agent shall be affected or bound by notice
to the contrary. Any Holder of this Note electing to exercise the right of conversion set forth in Section 4(a) hereof, in addition
to the requirements set forth in Section 4(a), and any prospective transferee of this Note, also is required to give the Company
written confirmation that this Note is being converted ("Notice of Conversion") in the form annexed hereto as Exhibit
A. The date of receipt (including receipt by telecopy) of such Notice of Conversion shall be the Conversion Date.

 

4.

 

(a) The Holder of this Note is entitled, at its option, at any time, to convert all
or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock (the "Common
Stock") at a price ("Conversion Price") for each share of Common Stock equal to 60% of the lowest trading price
of the Common Stock as reported on the National Quotations Bureau OTC Market Exchange which the Company's shares are traded or
any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days
including the day upon which a Notice of Conversion is received by the Company or its transfer agent (provided such Notice of
Conversion is delivered by fax or other electronic method of communication to the Company or its transfer agent after 4 P.M. Eastern
Standard or Daylight Savings Time if the Holder wishes to include the same day closing price). If the shares have not been delivered
within 3 business days, the Notice of Conversion may be rescinded. Such conversion shall be effectuated by the Company delivering
the shares of Common Stock to the Holder within 3 business days of receipt by the Company of the Notice of Conversion. Accrued
but unpaid interest shall be subject to conversion. No fractional shares or scrip representing fractions of shares will be issued
on conversion, but the number of shares issuable shall be rounded to the nearest whole share. To the extent the Conversion Price
of the Company's Common Stock closes below the par value per share, the Company will take all steps necessary to solicit the consent
of the stockholders to reduce the par value to the lowest value possible under law. The Company agrees to honor all conversions
submitted pending this increase. In the event the Company experiences a DTC “Chill" on its shares, the Conversion Price
shall be decreased to 50% instead of 60% while that "Chill" is in effect. In no event shall the Holder be allowed to
effect a conversion if such conversion, along with all other shares of Company Common Stock beneficially owned by the Holder and
its affiliates would exceed 4.99% of the outstanding shares of the Common Stock of the Company (which may be increased to 9.99%
on 61 days prior written notice).

 

(b) Interest on any unpaid principal balance of this Note shall be paid at the rate
of 10% per annum. Interest shall be paid by the Company in Common Stock ("Interest Shares"). Holder may, at any time,
send in a Notice of Conversion to the Company for Interest Shares based on the formula provided in Section 4(a) above. The dollar
amount converted into Interest Shares shall be all or a portion of the accrued interest calculated on the unpaid principal balance
of this Note to the date of such notice.

 

(c) The Notes may be prepaid with the following penalties:

 

	PREPAY DATE	PREPAY AMOUNT
	≤ 60 days	125% of principal plus accrued interest
	61- 120 days	135% of principal plus accrued interest
	121-180 days	140% of principal plus accrued interest

This Note may not be prepaid after the 180th day. Such redemption must be
closed and funded within 3 days of giving notice of redemption of the right to redeem shall be null and void.

 

(d) Upon (i) a transfer of all or substantially all
of the assets of the Company to any person in a single transaction or series of related transactions, (ii) a reclassification,
capital reorganization or other change or exchange of outstanding shares of the Common Stock, other than a forward or reverse stock
split or stock dividend, or (iii) any consolidation or merger of the Company with or into another person or entity in which the
Company is not the surviving entity ( other than a merger which is effected solely to change the jurisdiction of incorporation
of the Company and results in a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares
of Common Stock) (each of items (i), (ii) and (iii) being referred to as a "Sale Event"), then, in each case, the Company
shall, upon request of the Holder, redeem this Note in cash for 150% of the principal amount, plus accrued but unpaid interest
through the date of redemption, or at the election of the Holder, such Holder may convert the unpaid principal amount of this Note
(together with the amount of accrued but unpaid interest) into shares of Common Stock immediately prior to such Sale Event at the
Conversion Price.

 

(e) In case of any Sale Event (not to include a sale
of all or substantially all of the Company's assets) in connection with which this Note is not redeemed or converted, the Company
shall cause effective provision to be made so that the Holder of this Note shall have the right thereafter, by converting this
Note, to purchase or convert this Note into the kind and number of shares of stock or other securities or property (including cash)
receivable upon such reclassification, capital reorganization or other change, consolidation or merger by a holder of the number
of shares of Common Stock that could have been purchased upon exercise of the Note and at the same Conversion Price, as defined
in this Note, immediately prior to such Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If
the consideration received by the holders of Common Stock is other than cash, the value shall be as determined by the Board of
Directors of the Company or successor person or entity acting in good faith.

 

5. No provision of this Note shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of, and interest on, this Note at the time, place, and rate, and in the form,
herein prescribed.

 

6. The Company hereby expressly waives demand and presentment
for payment, notice of non-payment, protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate,
and diligence in taking any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment
of all sums owing and to be owing hereto.

 

7. The Company agrees to pay all costs and expenses, including reasonable, attorneys'
fees and expenses, which may be incurred by the Holder in collecting any amount due under this Note.

 

8. If one or more of the following described "Events
of Default" shall occur:

 

(a) The Company shall default in the payment of principal or interest on this Note or any other note
issued to the Holder by the Company; or

 

b) Any of the representations or warranties made by the Company herein or in
any certificate or financial or other written statements heretofore or hereafter furnished by or on behalf of the Company in connection
with the execution and delivery of this Note, or the Securities Purchase Agreement under which this note was issued shall be false
or misleading in any· respect; or

 

(c) The Company shall fail to perform or observe, in
any respect, any covenant, term, provision, condition, agreement or obligation of the Company under this Note or any other note
issued to the Holder; or

 

(d) The Company shall (1) become insolvent; (2) admit
in writing its inability to pay its debts generally as they mature; (3) make an assignment for the benefit of creditors or commence
proceedings for its dissolution; (4) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for
a substantial part of its property or business; (5) file a petition for bankruptcy relief, consent to the filing of such petition
or have filed against it an involuntary petition for bankruptcy relief, all under federal or state laws as applicable; or

 

(e) A trustee, liquidator or receiver shall be appointed
for the Company or for a substantial part of its property or business without its consent and shall not be discharged within sixty
(60) days after such appointment; or

(f) Any governmental agency or any court of competent
jurisdiction at the in-stance of any governmental agency shall assume custody or control of the whole or any substantial portion
of the properties or assets of the Company; or

 

One or more money judgments, writs or warrants of attachment,
or similar process in excess of fifty thousand dollars ($50,000) in the aggregate, shall be entered or filed against the Company
or any of its prope11ies or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period of fifteen (15)
days or in any event later than five (5) days prior to the date of any proposed sale thereunder; or

 

(h) The Company shall have defaulted on or breached
any term of any other note of similar debt instrument into which the Company has entered and failed to cure such default within
the appropriate grace period; or

 

(i) The Company shall have its Common Stock delisted
from an exchange (including the OTC Market exchange) or, if the Common Stock trades on an exchange, then trading in the Common
Stock shall be suspended for more than 10 consecutive days;

 

(j) If a majority of the members of the Board of Directors
of the Company on the date hereof are no longer serving as members of the Board;

 

(k) The Company shall not deliver to the Holder the
Common Stock pursuant to paragraph 4 herein without restrictive legend within 3 business days of its receipt of a Notice of Conversion;
or

 

(I) The Company shall not replenish the reserve set
forth in Section 12, within 3 business days of the request of the Holder.

 

(m) The Company shall not be "current" in
its filings with the Securities and Exchange Commission; or

 

(n) The Company shall lose the "bid" price for its stock in a
market (including the OTC marketplace or other exchange). Then, or at any time thereafter, unless cured within 5 days, and in
each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall
not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion, the
Holder may consider this Note immediately due and payable, without presentment, demand, protest or further notice of any kind
( other than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other
instruments contained to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period
of grace, enforce any and all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by
law. Upon an Event of Default interest shall accrue at a default interest rate of 24% per annum or, if such rate is usurious
or not permitted by current law, then at the highest rate of interest permitted by law. In the event of a breach of Section
8(k) the penalty shall be $250 per day the shares are not issued beginning on the 4th day after the conversion notice was
delivered to the Company. This penalty shall increase to $500 per day beginning on the 10th day. The penalty for a breach of
Section 8(n) shall be an increase of the outstanding principal amounts by 20%. Further, if a breach of Section 8(111) occurs
or is continuing after the 6 month anniversary of the Note, then the Holder shall be entitled to use the lowest closing bid
price during the delinquency period as a base price for the conversion. For example, if the lowest closing bid price during
the delinquency period is $0.01 per share and the conversion discount is 50% the Holder may elect to convert future
conversions at $0.005 per share.

 

If the Holder shall commence an action or proceeding
to enforce any provisions of this Note, including, without limitation, engaging an attorney, then if the Holder prevails in such
action, the Holder shall be reimbursed by the Company for its attorneys' fees and other costs and expenses incurred in the investigation,
preparation and prosecution of such action or proceeding.

 

Make-Whole for Failure to Deliver Loss. At the Holder's
election, if the Company fails for any reason to deliver to the Holder the conversion shares by the by the 3rd business day following
the delivery of a Notice of Conversion to the Company and if the Holder incurs a Failure to Deliver Loss, then at any time the
Holder may provide the Company written notice indicating the amounts payable to the Holder in respect of the Failure to Deliver
Loss and the Company must make the Holder whole as follows:

 

Failure to Deliver Loss = [(Highest VW AP price for
the 30 trading days on or after the day of exercise) x (Number of conversion shares)]

 

The Company must pay the Failure to Deliver Loss by cash payment, and any such
cash payment must be made by the third business day from the time of the Holder's written notice to the Company.

 

9. In case any provision of this Note is held by a court
of competent jurisdic- tion to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather
than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the
remaining provisions of this Note will not in any way be affected or impaired thereby.

 

10. Neither this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Holder.

 

11. The Company represents that it is not a "shell" issuer and has
never been a "shell" issuer or that if it previously has been a "shell" issuer that at least 12 months have
passed since the Company has reported form 10 type information indicating it is no longer a "shell issuer. Further. The Company
will instruct its counsel to either (i) write a 144 opinion to allow for salability of the conversion shares or (ii) accept such
opinion from Holder’s counsel.

 

12. The Company shall issue irrevocable transfer agent
instructions reserving 166,666,000 shares of its Common Stock for conversions under this Note (the "Share Reserve").
Upon full conversion of this Note, any shares remaining in the Share Reserve shall be cancelled. The Company shall pay all costs
associated with issuing and delivering the shares. If such amounts are to be paid by the Holder, it may deduct such amounts from
the Conversion Price. The company should at all times reserve a minimum of four times the amount of shares required if the note
would be fully converted. The Holder may reasonably request increases from time to time to reserve such an1ounts. The Company will
instruct its transfer agent to provide the outstanding share information to the Holder in connection with its conversions.

 

13. The Company will give the Holder direct notice of any corporate actions,
including but not limited to name changes, stock splits, recapitalizations, etc. This notice shall be given as soon as possible
under law.

 

14. If it shall be found that any interest or other
amount deemed interest due hereunder violates the applicable law governing usury , the applicable provision shall automatically
be revised to equal the maximum rate of interest or other amount deemed interest permitted under applicable law. The Company covenants
(to the extent that it may lawfully do so) that it will not seek to claim or take advantage of any law that would prohibit or forgive
the Company from paying all or a portion of the principal or interest on this Note.

 

15. This Note shall be governed by and construed in accordance with the laws
of New York applicable to contracts made and wholly to be performed within the State of New York and shall be binding upon the
successors and assigns of each party hereto. The Holder and the Company hereby mutually waive trial by jury and consent to exclusive
jurisdiction and venue in the courts of the State of New York or in the Federal courts sitting in the county or city of New York.
This Agreement may be executed in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall
be effective as an original.

 

IN WITNESS WHEREOF, the Company has caused this Note
to be duly executed by an officer thereunto duly authorized.

 

	 	 	REGEN BIOPHARMA, INC.
	 	 	 
	Dated: January 18, 2019	 	/s/ David R. Koos
	 	 	 
	 	 	Title: Chairman and CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00291-of-00352.parquet"}]]