Document:

Exhibit 4.1

 

HOSPITALITY INVESTORS TRUST, INC.

Share Repurchase Program

 

The Board of Directors (the
 “Board”) of Hospitality Investors Trust, Inc., a Maryland corporation (the “Company”), has adopted this
Share Repurchase Program (this “SRP”), effective as of October 1, 2018 (the “Effective Date”), to be administered
by Computershare Inc. (the “Administrator”), the Company’s transfer agent. Pursuant to the SRP, and subject to
the terms and conditions set forth below, any holder (a “Stockholder”) of shares of the Company’s common stock,
par value $0.01 per share (“common stock”) may request that the Company repurchase all or a portion of such Stockholder’s
shares of common stock at a price established by the Board (the “Repurchase Price”).

 

		·	The initial Repurchase Price at which you may request the Company repurchase your shares of common stock is $9.00 per share.

 

		·	The Board strongly recommends that stockholders do not request that the Company repurchase their shares at this price due to
the Board’s belief that the initial Repurchase Price is well below the current and potential long-term value of a share of
common stock, as described in more detail in the Company’s Current Report on Form 8-K filed with the Securities and Exchange
Commission (the “SEC”) on September 24, 2018.

 

		·	Each Stockholder must make his, her or its own decision whether to request that his, her or its shares be repurchased pursuant
to the SRP and how many shares to request for repurchase. In doing so, the Company urges Stockholders to read carefully the full
SRP and the information included in the filings made by the Company with the SEC. These filings can be found in the website maintained
by the SEC, www.sec.gov, and the “Investor Relations — SEC Filings” section of the Company’s
website, www.hitreit.com. The Board also urges Stockholders to discuss their decisions with their tax advisor, financial advisor
and/or custodian.

 

		1.	Repurchase Price.

 

		a.	The Repurchase Price is the price per share at which repurchase requests received and processed by the Administrator will be
effected pursuant to the SRP. The Repurchase Price is initially $9.00 per share and may be changed by the Board from time to time,
based on such factors as the Board deems relevant and appropriate in its sole discretion; provided, that any change to the
Repurchase Price approved by the Board shall constitute a fundamental modification of the SRP and shall only become effective in
accordance with Section 5 hereof 15 days after it has been disclosed on the Company’s website and in a Current Report on
Form 8-K filed by the Company with the SEC (or another periodic report filed by the Company with the SEC).

 

		b.	In making any determination with respect to the Repurchase Price, the Board may also make a determination as to whether or
not the Board recommends that Stockholders request that the Company repurchase their shares of common stock pursuant to the SRP
at such Repurchase Price. Any such recommendation shall be disclosed to Stockholders in the same manner as any change to the Repurchase
Price. A subsequent determination to modify any recommendation previously reported in a filing by the Company with the SEC shall
be disclosed promptly on the Company’s website and in a Current Report on Form 8-K filed by the Company with the SEC (or
another periodic report filed with the SEC).

 

		2.	Repurchase Requests

 

		a.	There is no minimum holding period for shares of common stock to be eligible for repurchase pursuant to the SRP, and Stockholders
can request that the Company repurchase their shares at any time following the Effective Date. These requests may be made indirectly
through the Stockholder’s financial advisor or directly by contacting the Administrator. Certain broker-dealers require that
their clients make repurchase requests through their broker-dealer, which may impact the time necessary to process such repurchase
request. In light of this, Stockholders should contact their broker-dealer prior to making any request for the Company to repurchase
of their shares pursuant to the SRP.

 

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		b.	Repurchase requests may be made by mail or by contacting a financial intermediary, both subject to the limitations and other
terms and conditions contained herein. If making a repurchase request by contacting the Stockholder’s financial intermediary,
the Stockholder’s financial intermediary may require the Stockholder to provide certain documentation or information. If
making a repurchase request by mail to the Administrator, the Stockholder must complete and sign a repurchase authorization form.
The current form of the repurchase authorization form is attached hereto as Annex A and is also available on the Company’s
website, www.hitreit.com. Corporate investors and other non-individual entities must have an appropriate certification on
file authorizing repurchases. A medallion signature guarantee may be required.

 

		c.	Written requests should be sent to the Administrator at one of the following addresses:

 

	
        Regular Mail Delivery

        Computershare

        Computershare Alternative Investment Operations

        P.O. Box 505013

        Louisville, KY 40233-5013
	
        Overnight Delivery

        Computershare

        Computershare Alternative Investment Operations

        462 South 4th St., Suite 1600

        Louisville, KY 40202

 

		3.	Repurchase Procedures

 

		a.	Subject to the limitations and other terms and conditions contained herein, repurchases pursuant to the SRP will be effected
quarterly at the Repurchase Price effective on the last business day of the applicable quarter (a “Repurchase Date”).
To have shares repurchased, a Stockholder’s repurchase request and required documentation must be received in good order
by 4:00 p.m. (Eastern time) on the second to last business day of the applicable quarter (the “Repurchase Deadline”).
Shares will be repurchased as of the Repurchase Date at the Repurchase Price applicable on that date, and the settlement of share
repurchases will occur within five business days of the Repurchase Date.

 

		b.	A Stockholder may withdraw his or her repurchase request by notifying the Administrator, directly or through the Stockholder’s
financial intermediary, on the Company’s toll-free, automated telephone line, (866) 638-5572. The line is open on each business
day between the hours of 8:30 a.m. and 6:00 p.m. (Eastern time). For a withdrawal to be effective, it must be received before the
Repurchase Deadline.

 

		c.	If a repurchase request is received after the Repurchase Deadline, the purchase order will be executed, if at all, as of the
next Repurchase Date, unless such request is withdrawn prior to the repurchase in accordance with Section 3.b. Repurchase requests
received and processed by the Administrator on a business day, but after the close of business on that day, or on a day that is
not a business day, such as a weekend or federal holiday, will be deemed received on the next business day.

 

		d.	For processed repurchases, Stockholders may request that repurchase proceeds are to be paid by mailed check provided that the
check is mailed to an address that has been on file with the Administrator for at least 30 days. Stockholders should check with
their broker-dealer that such payment may be made via check or wire transfer, as further described below.

 

		e.	Stockholders may also receive repurchase proceeds via wire transfer, provided that wiring instructions for their brokerage
account or designated U.S. bank account are provided. For all repurchases paid via wire transfer, the funds will be wired to the
account on file with the Administrator or, upon instruction, to another financial institution provided that the Stockholder has
made the necessary funds transfer arrangements. The Administrator can provide detailed instructions on establishing funding arrangements
and designating a bank or brokerage account on file. Funds will be wired only to U.S. financial institutions (ACH network members).

 

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		f.	A medallion signature guarantee may be required in certain circumstances described below. A medallion signature guarantee may
be obtained from a domestic bank or trust company, broker-dealer, clearing agency, savings association or other financial institution
which participates in a medallion program recognized by the Securities Transfer Association. The three recognized medallion programs
are the Securities Transfer Agents Medallion Program, the Stock Exchanges Medallion Program and the New York Stock Exchange, Inc.
Medallion Signature Program. Signature guarantees from financial institutions that are not participating in any of these medallion
programs will not be accepted. A notary public cannot provide medallion signature guarantees. The Company reserves the right to
amend, waive or discontinue this policy at any time and establish other criteria for verifying the authenticity of any repurchase
or transaction request without providing the notice required for a material modifications of the SRP to become effective in accordance
with Section 5 hereof. The Company may require a medallion signature guarantee if, among other reasons: (i) the amount payable
pursuant to the repurchase request is $500,000 or more; (ii) the repurchase is to be sent to an address other than the address
on record; or (iii) the Administrator cannot confirm a Stockholder’s identity or suspects fraudulent activity.

 

		4.	Repurchase Limitations

 

		a.	Repurchases under the SRP will be limited to a maximum number of shares of common stock for any quarter equal to the lower
of: (i) 1,000,000 shares of common stock; or (ii) 5.0% of the number of shares of common stock outstanding as of the last day of
the previous quarter.

 

		b.	The Board also has the power, in its sole discretion, to determine that the Company will repurchase fewer shares than have
been requested in any particular quarter, or none at all; provided that the Board may only exercise this power by disclosing,
prior to the applicable Repurchase Deadline, its determination to do so on the Company’s website and in a Current Report
on Form 8-K filed by the Company with the SEC (or another periodic report filed by the Company with the SEC).

 

		c.	In the event that some but not all of the shares requested to be repurchased during any quarter are repurchased due to the
operation of Section 4.a. or Section 4.b, shares subject to valid repurchase requests will be repurchased pro rata as to all repurchase
requests. If repurchase requests are reduced on a pro rata basis, Stockholders may elect (at the time of their repurchase request
pursuant to the repurchase authorization form) to either withdraw their entire repurchase request or have the request honored on
a pro rata basis.

 

		d.	A Stockholder may elect in the repurchase authorization form (a “Roll-Over Election”) that any repurchase requests
not satisfied on the applicable Repurchase Date (in whole or in part), due the limitations in this Section 4 or a suspension of
the SRP pursuant to Section 5, be repurchased on the next succeeding Repurchase Date when the SRP is active, subject to any restrictions
imposed by law and the potential application of the other limitations of this Section 4 on such Repurchase Date. In these cases,
the unsatisfied portion of the repurchase request will be retained by the Company and deemed to have been submitted, equivalently
with any other repurchase request, for repurchase on the next succeeding Repurchase Date when the SRP is active. A Stockholder
that has made a Roll-Over Election may also withdraw any unsatisfied repurchase request so retained in accordance with Section
3.b. If no Roll-Over Election is made, an unsatisfied repurchase request (in whole or in part) must be re-submitted as a new repurchase
request after the relevant Repurchase Date for any repurchase requests not satisfied due the limitations in this Section 4 or after
the affirmative reactivation of the SRP by the Board for any repurchase requests that were pending at the time of a suspension
of the SRP pursuant to Section 5. If a Stockholder has made a Roll-Over Election and the Company is unable to retain the unsatisfied
portion of the repurchase request due to restrictions imposed by law, the Company will provide public notice on its website, and
the repurchase request that would have otherwise been retained will be deemed cancelled and must be re-submitted as a new repurchase
request for the subject shares to be repurchased pursuant to the SRP.

 

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		5.	Modifications, Amendments or Terminations

 

		a.	The Board may modify, suspend, reactivate or terminate the SRP at any time; provided that no material modification,
suspension, reactivation or termination will become effective until it has been disclosed on the Company’s website and in
a Current Report on Form 8-K filed by the Company with the SEC (or another periodic report filed by the Company with the SEC),
and no fundamental modification (including but not limited to any change to the timing or frequency of the Repurchase Date, any
change to the maximum number of shares of common stock that may be repurchased for any quarter or any change to the Repurchase
Price) will become effective until 15 days after it has been similarly disclosed.

 

		b.	The Board may determine to suspend or terminate the SRP pursuant to Section 5.a. for any reason, including due to the Board’s
judgment that fulfilling any repurchase requests is not in the best interests of the Company (i.e., such fulfillment would place
an undue burden on the Company’s liquidity), regulatory changes, changes in law or if the Company becomes aware of undisclosed
material information that it believes should be publicly disclosed before shares are repurchased.

 

		6.	Miscellaneous

 

		a.	Stockholders will not receive interest on amounts represented by uncashed repurchase checks.

 

		b.	Under applicable anti-money laundering regulations and other federal regulations, repurchase requests may be suspended, restricted
or canceled and the proceeds may be withheld.

 

		c.	IRS regulations require the Company to determine and disclose on Form 1099-B the adjusted cost basis for shares of the Company’s
stock sold or repurchased. Although there are several available methods for determining the adjusted cost basis, unless a Stockholder
elects otherwise, which such Stockholder may do by checking the appropriate box on the repurchase authorization form, the Company
will utilize the first-in-first-out method.

 

		d.	All shares of common stock requested to be repurchased pursuant to the SRP must be beneficially owned by the Stockholder of
record making the request or his or her estate, heir or beneficiary, or the party requesting the repurchase must be authorized
to do so by the Stockholder of record of the shares or his or her estate, heir or beneficiary, and such shares of common stock
must be fully transferable and not subject to any liens or encumbrances. In certain cases, the Company may ask the requesting party
to provide evidence satisfactory to the Company that the shares requested for repurchase are not subject to any liens or encumbrances.
If the Company determines that a lien exists against the shares, the Company will not be obligated to repurchase any shares subject
to the lien. If the Company does not receive all documentation that it deems necessary before the applicable Repurchase Deadline,
no repurchase will be made until a later Repurchase Date when the Company has received all documentation it deems necessary.

 

		e.	The Company and the Administrator will not be responsible for the authenticity of mail or phone instructions or losses, if
any, resulting from unauthorized Stockholder transactions if they reasonably believe that such instructions were genuine. The Company
and the Administrator have established reasonable procedures to confirm that instructions are genuine including requiring the Stockholder
to provide certain specific identifying information on file and sending written confirmation to Stockholders of record no later
than five days following execution of the instruction. Failure by the Stockholder or its agent to notify the Administrator in a
timely manner, but in no event more than 60 days from receipt of such confirmation, that the instructions were not properly acted
upon or any other discrepancy will relieve the Company, the Administrator and the financial advisor of any liability with respect
to the discrepancy.

 

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Annex
A

REPURCHASE AUTHORIZATION FORM

 

Use this form to request repurchase of your shares of common
stock in Hospitality Investors Trust, Inc. pursuant to the Hospitality Investors Trust, Inc. Share Repurchase Program (the “SRP”).
Please complete all sections below and then send this form to one of the following addresses.

 

	
        Regular Mail Delivery

        Computershare

        Computershare Alternative Investment Operations

        P.O. Box 505013

        Louisville, KY 40233-5013
	
        Overnight Delivery

        Computershare

        Computershare Alternative Investment Operations

        462 South 4th St., Suite 1600

        Louisville, KY 40202

 

If you have any questions, please call our toll-free, automated
telephone line, (866) 638-5572. The line is open on each business day between the hours of 8:30 a.m. and 6:00 p.m. (Eastern time).

 

		1	REPURCHASE FROM THE FOLLOWING ACCOUNT

 

	Name(s) on the Account
	 
	Account Number	Social Security Number/TIN

 

	Financial Advisor Name	
        Financial Advisor Phone Number

         

 

	2     REPURCHASE AMOUNT (Check one)	 
	 ̈  All Shares	 
	 ̈  Number
of Shares _________________________	 
	 ̈  Dollar
Amount $__________________________	
         

         

         

         

		3	PAYMENT INSTRUCTIONS (Select only one)

 

Indicate how you wish to receive your repurchase payment below.
If an option is not selected, a check will be sent to your address of record. Repurchase proceeds for qualified accounts, including
IRAs and other Custodial accounts, and certain Broker-controlled accounts as required by your Broker/Dealer of record, will automatically
be issued to the Custodian or Broker/Dealer of record, as applicable. All Custodial held and Broker-controlled accounts must
include the Custodian and/or Broker/Dealer signature.

 

		 ̈	Cash/Check Mailed to Address of Record

 

		 ̈	Cash/Check Mailed to Third Party/Custodian (Medallion
Signature Guarantee required)

 

	
        Name / Entity Name / Financial Institution                              Mailing Address

         

	 
	
        City                                         State                                              Zip Code                                                          Account Number

         

	 

		 ̈	Cash/Direct Deposit Attach a pre-printed voided check.
(Non-Custodian Investors Only) (Medallion Signature Guarantee required)

 

I authorize Hospitality Investors Trust, Inc. or its
agent to deposit my distribution into my checking or savings account. In the event that Hospitality Investors Trust, Inc. deposits
funds erroneously into my account, they are authorized to debit my account for an amount not to exceed the amount of the erroneous
deposit.

 

	
        Financial Institution NameMailing AddressCityState

         

         

	
        Your Bank’s ABA Routing Number                                          Your Bank Account Number

         

	 

 

    1

     

    

 

Please
Attach A Pre-Printed Voided Check

 

		4	SHARE REPURCHASE PROGRAM CONSIDERATIONS (Select only one)

 

Repurchases under the SRP are currently limited to 1,000,000
shares of common stock per quarter or, if lower, 5% of the shares outstanding as of the last day of the previous quarter. The Board
also has the power, in its sole discretion, to determine that fewer shares than have been requested will be repurchased in any
particular quarter, or none at all. If we do not make all requested repurchases in a particular quarter for any reason, shares
subject to valid repurchase requests will be repurchased pro rata as to all repurchase requests Accordingly, there can be no assurance
that any shares validly requested to be repurchased pursuant to the SRP will be so repurchased. If repurchase requests are reduced
on a pro rata basis, you may elect (at the time of your repurchase request) to either withdraw your entire request for repurchase
or have your request honored on a pro rata basis. If you wish to have the remainder of the shares subject to your initial request
repurchased on the next succeeding quarterly repurchase date when the SRP is active, please see Item 5 below. Please select
one of the following options below. If an option is not selected, your repurchase request will be processed on a pro rata basis,
if needed.

 

		 ̈	Process my repurchase request on a pro rata basis.

 

		 ̈	Withdraw (do not process) my entire repurchase request
if amount will be reduced on a pro rata basis.

 

		5	ROLL-OVER ELECTION

 

Any repurchase requests not satisfied on the applicable quarterly
repurchase date (in whole or in part) due to the limitations described in Item 4 above or because the SRP is suspended may, at
your election, be retained by us and deemed to have been submitted for repurchase on the next succeeding quarterly repurchase date
when the SRP is active, subject to certain limitations. Please check the box below to elect to “roll-over” your
repurchase request in the event such request is not satisfied in full on the applicable quarterly repurchase date or the SRP is
suspended prior to the completion of the repurchase. If you do not make this election, you will need to submit a new repurchase
request pursuant to a new authorization form after the relevant quarterly repurchase date for all or any portion of your request
that is not satisfied due to the limitations described in Item 4 above or after the affirmative reactivation of the SRP for any
request that was pending at the time of a suspension of the SRP.

 

 ̈     Please retain all
or any portion of my repurchase request not satisfied until the next succeeding quarterly repurchase date when the SRP is active.

 

		6	COST BASIS SELECTION (Select only one)

 

U.S. federal income tax information reporting rules generally
apply to certain transactions in our shares. Where they apply, the “cost basis” calculated for the shares involved
will be reported to the Internal Revenue Service (“IRS”) and to you. Generally these rules apply to our shares, including
those purchased through our distribution reinvestment plan. You should consult your own tax advisor regarding the consequences
of these new rules and your cost basis reporting options.

 

Indicate below the cost basis method you would like us to apply.

 

IMPORTANT: If an option is not selected, your cost basis will
be calculated using the FIFO method.

 

		 ̈	FIFO (First – In / First Out)

 

		 ̈	LIFO (Last – In / First Out) Consult your tax advisor
to determine whether this method is available to you.

 

		 ̈	Specific Lots

 

If you have selected “Specific Lots,” please identify
the lots below:

 

	Date of Purchase:Amount of Purchase:
	 
	Date of Purchase:Amount of Purchase:
	 
	Date of Purchase:Amount of Purchase:

 

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		7	AUTHORIZATION AND SIGNATURE

 

IMPORTANT: Medallion Signature Guarantee may be required
if any of the following applies:

 

		·	Amount to be repurchased is $500,000 or more.

 

		·	The repurchase is to be sent to an address other than the address on record.

 

		·	If name has changed from the name in the account registration, we must have a one-and-the-same name medallion signature guarantee.
A one-and-the-same medallion signature guarantee must state “<Previous Name> is one-and-the-same as <New Name>”
and you must sign your old and new name.

 

		·	The repurchase proceeds are deposited directly according to banking instructions provided on this form. (Non-Custodial Investors
Only)

 

		·	The SRP’s administrator cannot confirm your identity or suspects fraudulent activity.

 

	 	 	 	 	
        Investor Name (Please Print)                        Signature        Date

         

         
	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	
        Co-Investor Name (Please Print)                 Signature        Date

         

         
	 	 	 	 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
        Medallion Signature Guarantee

        (Affix Medallion Signature Guarantee Stamp Below)

         

         

         
	 	Custodian and/or Broker/Dealer Authorization

(if applicable)

Signature of Authorized Person	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

		*	Please refer to the Company’s Current Report on Form 8-K dated September 24, 2018 or the Company’s most recent
Quarterly Report on Form 10-Q or Annual Report on Form 10-K for a description of the current terms of the SRP. These filings can
be found in the website maintained by the SEC, www.sec.gov, and the “Investor Relations — SEC Filings”
section of the Company’s website, www.hitreit.com. There are various limitations on the number of shares that we may repurchase.
The Company’s board of directors may determine to amend, suspend or terminate the SRP at any time. We will provide written
notice of any material amendment, suspension or termination of the SRP in a filing with the SEC at www.sec.gov, which will
also be made available at www.hitreit.com. Repurchase of shares, when requested, will be made quarterly. All requests for
repurchases must be received in good order by 4:00 p.m. (Eastern time) on the second to last business day of the applicable quarter.
You may withdraw your repurchase request by notifying the Company’s transfer agent, which administers the SRP, directly or
through your financial intermediary, on our toll-free, automated telephone line, (866) 638-5572. Repurchase requests must be withdrawn
before 4:00 p.m. (Eastern time) on the second to last business day of the applicable quarter.

 

    3ex_124470.htm

Exhibit 10.1

 

PROMISSORY NOTE

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT THERE IS AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

 

	 	
			Westminster, California

			
	
			Original Principal Amount: $280,000

				
			Issuance Date: September 19, 2018

			
	
			Instrument #: 33146

				 

 

FOR VALUE RECEIVED, BIOLARGO, INC., a corporation organized under the laws of the state of Delaware (“Issuer”), promises to pay to the order of Vernal Bay Investments, LLC (hereafter, together with any subsequent holder hereof, called “Holder”), at its address, or at such other place as Holder may direct, the “Original Principal Amount” noted above (the “Loan Amount”), payable on January 5, 2019 (the “Maturity Date”). This note is duly authorized issue of the Issuer, purchased by the initial Holder pursuant to the subscription agreement (“Subscription Agreement”) submitted by the original Holder and accepted by the Issuer on the “Issuance Date” noted above (the “Issuance Date”) (referred to herein as the “Note”). The funds may be used by the Company to retire outstanding debt, or for working capital, in the Company’s discretion.

 

The Issuer agrees to pay interest on the unpaid Loan Amount from time to time outstanding hereunder at the following rates per year, compounded annually before the Maturity Date, whether by acceleration or otherwise, at the rate per annum equal to twelve percent (12%). So long as an Event of Default (as defined in Section 4 below) has not occurred, Issuer may extend the Maturity Date of the Note by 60 days by giving written notice to Holder at any time prior to the Maturity Date, and in such event the Principal Amount of this Note will increase by ten percent (10%), effective as of the date of the notice.

 

Payments of both principal and interest are to be made in immediately available funds in lawful money of the United States of America, as set forth below.

 

     The Note is subject to the following additional provisions:

 

1.     Interest. Accrual of interest shall commence as of the Issuance Date and shall be due on the Maturity Date. Unless otherwise agreed in writing by both parties hereto, the interest so payable will be paid to the person in whose name this Note (or one or more predecessor Notes) is registered on the records of the Issuer regarding registration and transfers of the Note (the “Note Register”), provided, however, that the Issuer’s obligation to a transferee of this Note arises only if such transfer, sale or other disposition is made in accordance with the terms and conditions contained in this Note and the Subscription Agreement that the original Holder executed at the time of making an investment in the Issuer.

 

- 1 -

 

 

2.     Withholdings. The Issuer shall be entitled to withhold from all payments of principal and/or interest of this Note any amounts required to be withheld under the applicable provisions of the Internal Revenue Code of 1986, as amended, or other applicable laws at the time of such payments.

 

3.     Transfer. This Note has been issued subject to investment representations of the original Holder hereof and may be transferred or exchanged only in compliance with the Securities Act and applicable state securities laws and in compliance with the restrictions on transfer provided in the Subscription Agreement. Prior to the due presentment for such transfer of this Note, the Issuer and any agent of the Issuer may treat the person in whose name this Note is duly registered in the Note Register as the owner hereof for the purpose of receiving payment as herein provided and all other purposes, whether or not this Note is overdue, and neither the Issuer nor any such agent shall be affected by notice to the contrary. The transferee shall be bound, as the original Holder by the same representations and terms described herein and under the Subscription Agreement.

 

4.     Events of Default. Each of the following occurrences is hereby defined as an “Event of Default”:

 

a.     Nonpayment. The Issuer shall fail to make any payment of principal, interest, or other amounts payable hereunder when and as due, and at least ten (10) days have elapsed since Holder has demanded such payment without cure by the Issuer; or

 

b.     Dissolutions, etc. The Issuer or any subsidiary shall fail to comply with any provision concerning its existence or any prohibition against dissolution, liquidation, merger, consolidation or sale of assets; or

 

c.     Noncompliance with this Agreement. The Issuer shall fail to comply in any material respect with any provision hereof, which failure does not otherwise constitute an Event of Default, and such failure shall continue for ten (10) days after the occurrence of such failure; or

 

d.     Bankruptcy. The Company or any subsidiary of the Company shall commence, or there shall be commenced against the Company or any subsidiary of the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Company or any subsidiary of the Company commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Company or any subsidiary of the Company or there is commenced against the Company or any subsidiary of the Company any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 61 days; or the Company or any subsidiary of the Company is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Company or any subsidiary of the Company suffers any appointment of any custodian, private or court appointed receiver or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of sixty one (61) days; or the Company or any subsidiary of the Company makes a general assignment for the benefit of creditors; or the Company or any subsidiary of the Company shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the Company or any subsidiary of the Company shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or the Company or any subsidiary of the Company shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company or any subsidiary of the Company for the purpose of effecting any of the foregoing; or

 

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e.     Other Debts. The Company or any subsidiary of the Company shall default in any of its obligations under any other note or any mortgage, credit agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement of the Company or any subsidiary of the Company in an amount exceeding $100,000, whether such indebtedness now exists or shall hereafter be created; or

 

f.     Public Trading. The common stock of the Company is suspended or delisted for trading on the Over the Counter OTCQB Venture Marketplace or NASDAQ; the Company shall become late or delinquent in its filing requirements as a fully- reporting issuer registered with the Securities & Exchange Commission, or the Company shall fail to meet all requirements to satisfy the availability of Rule 144 to the Investor or its assigns including but not limited to timely fulfillment of its filing requirements as a fully-reporting issuer registered with the SEC, requirements for XBRL filings, and requirements for disclosure of financial statements on its website.

 

5.     Holder’s Election upon Default. Upon the occurrence of any Event of Default (without the need for any party to give any notice or take any other action), this Note (and all interest through such date) shall be immediately due and payable. . It is agreed that in the event of such action, such Holder shall be entitled to receive all reasonable fees, costs and expenses incurred, including without limitation such reasonable fees and expenses of attorneys. The parties acknowledge that a change in control of the Issuer shall not be deemed to be an Event of Default as set forth herein.

 

6.     Invalid or Unenforceable Provisions. In case any provision of this Note is held by a court of competent jurisdiction 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.

 

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

 

	
			 

				
			BIOLARGO, INC.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/Dennis P. Calvert

				
			 

			
	
			 

				
			Name:

				
			Dennis P. Calvert, President

				
			 

			
	
			 

				
			 

				
			 

				
			 

			

 

 

Original Holder: Vernal Bay Investments, LLC

Issuance Date: September 19, 2018

Original Principal Amount: $280,000

Instrument Number: 33146

 

 

 

 

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