Document:

PROMISSORY
NOTE

 

	Borrower:	Sylios
    Corp., 244 2nd Ave N, Suite 9, St. Petersburg, FL 33701, “Borrower”
	 	 
	Lender:	Pacific
    Stock Transfer Company, 173 Keith Street, Suite 3, Warrenton, VA 20186, “Lender”

 

	Principal
    Amount:	$6,250.00
    USD	Date:	August
    11, 2017

 

	 	1.	FOR
    VALUE RECEIVED, The Borrower promises to pay to the Lender at such address as may be provided in writing to Borrower, the
    principal sum of $6,250.00 USD, with interest payable on the unpaid principal balance at the rate of 5% per annum.
	 	 	 
	 	2.	Payment
    is due within ninety (90) days from the execution of this note.
	 	 	 
	 	3.	At
    any time while not in default under this Note, the Borrower may pay the outstanding balance then owing under this Note to
    the Lender without further bonus or penalty.
	 	 	 
	 	4.	All
    costs, expense and expenditures including, and without limitation, the complete legal costs incurred by the Lender in enforcing
    this Note as a result of default by the Borrower, will be added to the principal then outstanding and will immediately be
    paid by the Borrower.
	 	 	 
	 	5.	If
    any term, covenant, condition or provision of this Note is held by a court of competent jurisdiction to be invalid, void or
    unenforceable, it is the parties’ intent that such provision be reduced in scope by the court only to the extent deemed
    necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions of this Note
    will in no way be affected, impaired or invalidated as a result.
	 	 	 
	 	6.	This
    Note will be construed in accordance with and governed by the laws of the Commonwealth of Virginia.
	 	 	 
	 	7.	This
    Note will ensure to the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns
    of the Borrower and Lender. The Borrower waives presentment for payment, notice of non-payment, protest and notice of protest.
	 	 	 
	 	8.	This
    Note will adhere to the terms of the Escrow Agreement signed between the borrower, lender, and escrow agent.

 

	 	“Lender”	 	“Borrower”
	 	 	 	 
	 	PACIFIC
    STOCK TRANSFER COMPANY	 	SYLIOS
    CORP.
	 	 	 	 
	 	/s/
    Billy Miller	 	/s/
    Wayne Anderson
	 	Billy
    Miller, Director	 	Wayne
    Anderson, President
	 	 	 	 
	 	8/11/2017	 	8/11/2017Note:
April 2, 2014

 

 

NEITHER
THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT.

 

THIS
NOTE DOES NOT REQUIRE PHYSICAL SURRENDER OF THE NOTE IN THE EVENT OF A PARTIAL REDEMPTION OR CONVERSION. AS A RESULT, FOLLOWING
ANY REDEMPTION OR CONVERSION OF ANY PORTION OF THIS NOTE, THE OUTSTANDING PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE MAY BE LESS
THAN THE PRINCIPAL AMOUNT AND ACCRUED INTEREST SET FORTH BELOW.

 

8%
CONVERTIBLE PROMISSORY NOTE

 

OF

 

US
NATURAL GAS CORP

 

Issuance
Date: April 2, 2014

Beginning
Value of this Note: $5,000

Original
Issue Discount: $500

Total
Face Value of Note: $5,500

 

This
Note (“Note” or “Note”)
is a duly authorized Convertible Promissory Note of US NATURAL GAS CORP. a corporation duly organized and existing under the laws
of the State of Florida (the “Company”), designated as the Company’s
eight percent (8%) Convertible Promissory Note Due April 2, 2015 (“Maturity Date”) in the principal amount
of Five Thousand Five Hundred Dollars ($5,500) (the “Note”).

 

For
Value Received, the Company hereby promises to
pay to the order of Tangiers Investment Group, LLC or its registered assigns or successors-in-interest (“Holder”)
the principal sum up to of Five Thousand Five Hundred Dollars ($5,500) and to pay “guaranteed” interest on the principal
balance hereof (which principal balance shall be increased by the Holder’s payment of additional consideration as set forth
herein and which increase shall also include the prorated amount of the original issue discount in connection with Holders payment
of additional consideration) at the rate of eight percent (8%), all of which “guaranteed interest shall be deemed earned
as of the date of each such payment of additional consideration by the Holder on the Maturity Date, to the extent such principal
amount and “guaranteed” interest have been repaid or converted into the Company’s Common Stock, $0.001 par value
per share (the “Common Stock”), in accordance with the terms hereof.

 

$5,500.00
Convertible Note

US
Natural Gas Corp.

Tangiers
Investment Group, LLC

 

    	 	1	 

    	 

    

 

The
initial Purchase Price will be five thousand five hundred dollars ($5,500) of consideration upon execution of the Note Purchase
Agreement and all supporting documentation. The sum of five thousand dollars ($5,000.00) shall be remitted and delivered to the
Company, and five hundred dollars ($500) shall be retained by the Purchaser through an original issue discount for due diligence
and legal bills related to this transaction.

 

In
addition to the “guaranteed” interest referenced above, and in the Event of Default pursuant to Section 2(e), additional
interest will accrue at the rate equal to the lower of fifteen percent (15%) per annum or the highest rate permitted by law (the
“Default Rate”).

 

This
Note may not be prepaid in whole or in part except as otherwise provided herein. Whenever any amount expressed to be due by the
terms of this Note is due on any day which is not a Business Day (as defined below), the same shall instead be due on the next
succeeding day which is a Business Day.

 

For
purposes hereof the following terms shall have the meanings ascribed to them below:

 

“Business
Day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the City of New York
are authorized or required by law or executive order to remain closed.

 

“Conversion
Price” shall be equal to the lower of $.004 or fifty percent (50%) of the lowest trading price of the Company’s
common stock during the twenty (20) consecutive trading days prior to the date on which Holder elects to convert all or part of
the Note. If the Company is placed on “chilled” status with the Depository Trust Company (“DTC”),
the discount shall be increased by ten percent (10%) until such chill is remedied. If the Company is not Deposits and Withdrawal
at Custodian (“DWAC”) eligible through their Transfer Agent and the Depository Trust Company’s (“DTC”)
Fast Automated Securities Transfer (“FAST”) system, the discount will be increased by five percent (5%). In
the case of both, the discount shall be cumulative (15%).

 

“Principal
Amount” shall refer to the sum of (i) the original principal amount of this Note (including the prorated amount
of the original issue discount), (ii) all accrued but unpaid interest hereunder, and (iii) any default payments owing under the
Agreements but not previously paid or added to the Principal Amount.

 

“Trading
Day” shall mean a day on which there is trading on the Principal Market.

 

“Underlying
Shares” means the shares of common stock into which the Note is convertible (including interest or principal payments
in common stock as set forth herein) in accordance with the terms hereof.

 

The
following terms and conditions shall apply to this Note:

 

Section
1.00 Conversion.

 

(a)
Conversion Right. Subject to the terms hereof and restrictions and limitations contained herein, the Holder shall have
the right, at the Holder’s option, at any time to convert the outstanding Principal Amount and interest under this Note
in whole or in part.

 

$5,500.00
Convertible Note

US
Natural Gas Corp.

Tangiers
Investment Group, LLC

 

    	 	2	 

    	 

    

 

(b)
The date of any Conversion Notice hereunder and any Payment Date shall be referred to herein as the “Conversion Date”.

 

(i)
Stock Certificates or DWAC. The Company will deliver to the Holder, or Holder’s authorized designee, no later than two
(2) Trading Days after the Conversion Date, a certificate or certificates (which certificate(s) shall be free of restrictive legends
and trading restrictions) representing the number of shares of Common Stock being acquired upon the conversion of this Note. In
lieu of delivering physical certificates representing the shares of Common Stock issuable upon conversion of this Note, provided
the Company’s transfer agent is participating in the FAST program, upon request of the Holder, the Company shall use commercially
reasonable efforts to cause its transfer agent to electronically transmit such shares issuable upon conversion to the Holder (or
its designee), by crediting the account of the Holder’s (or such designee’s) prime broker with DTC through its DWAC
program (provided that the same time periods herein as for stock certificates shall apply).

 

(ii)
Charges, Expenses. Issuance of Common Stock to Holder, or any of its assignees, upon the conversion of this Note shall be
made without charge to the Holder for any issuance fee, transfer tax, postage/mailing charge or any other expense with respect
to the issuance of such Common Stock. Company shall pay all Transfer Agent fees incurred from the issuance of the Company stock
to Holder and acknowledges that this is a material obligation of this Note.

 

If
the Company fails to deliver to the Holder such certificate or certificates (or shares through DTC) pursuant to this Section (free
of any restrictions on transfer or legends) prior to the third Trading Day after the Conversion Date, the Company shall pay to
the Holder as liquidated damages, in cash, an amount equal to Two Thousand Dollars ($2,000) per day, until such certificate or
certificates are delivered. The Company acknowledges that it would be extremely difficult or impracticable to determine the Holder’s
actual damages and costs resulting from a failure to deliver the Common stock and the inclusion herein of any such additional
amounts are the agreed upon liquidated damages representing a reasonable estimate of those damages and costs. Such liquidated
damages will be added to the principal value of the Note.

 

(c)
Reservation and Issuance of Underlying Securities. The Company covenants that it will at all times reserve and keep available
out of its authorized and unissued Common Stock solely for the purpose of issuance upon conversion of this Note (including repayments
in stock), free from preemptive rights or any other actual contingent purchase rights of persons other than the Holder, not
less than three times (3x) the number of shares of Common Stock as shall be issuable (taking into account the adjustments
under this Section 1 but without regard to any ownership limitations contained herein) upon the conversion of this Note in Common
Stock. These shares shall be reserved in proportion with the Consideration actually received by the Company and the total reserve
will be increased with future payments of consideration by Holder. The Company covenants that all shares of Common Stock that
shall be issuable will, upon issue, be duly authorized, validly issued, fully-paid, non-assessable and freely-tradable. The Company
agrees that this is a material term of this Note.

 

$5,500.00
Convertible Note 

US
Natural Gas Corp.

Tangiers
Investment Group, LLC

 

    	 	3	 

    	 

    

 

(d)
Conversion Limitation. The holder will not submit a conversion to the Company that would result in the Holder owning more
than 9.99% of the total outstanding shares of the Company.

 

Section
2.00 Defaults and Remedies.

 

(e)
Events of Default. An “Event of Default” is: (i) a default in payment of any amount due hereunder which
default continues for more than five (5) business days after the due date; (ii) a default in the timely issuance of underlying
shares upon and in accordance with terms hereof, which default continues for three (3) Business Days after the Company has received
notice informing the Company that it has failed to issue shares or deliver stock certificates within the third (3rd)
day following the Conversion Date; (iii) failure by the Company for three (3) days after notice has been received by the Company
to comply with any material provision of the Purchase Agreement (including without limitation the failure to issue the requisite
number of shares of Common Stock upon conversion hereof; (iv) a material breach by the Company of its representations or warranties
in the Exchange Agreement; (v) any default after any cure period under, or acceleration prior to maturity of, any mortgage, indenture
or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness for money borrowed
by the Company in excess of $50,000 or for money borrowed the repayment of which is guaranteed by the Company in excess of $50,000,
whether such indebtedness or guarantee now exists or shall be created hereafter; (vi) any failure of the Company to satisfy its
“filing” obligations under the rules and guidelines issued by OTC Markets News Service, OTC Markets.com and their
affiliates; (vii) Any failure of the Company to provide the Holder with information related to the corporate structure including,
but not limited to, the number of authorized and outstanding shares, public float, etc. within one (1) day of request by Holder;
(viii) failure to have sufficient number of authorized but unissued shares of the Company’s Common Stock available for any
conversion; (ix) failure of Company’s stock to maintain a bid price in its trading market which occurs for at least three
(3) consecutive days; (x) any delisting for any reason; (xi) failure by Company to pay any of its Transfer Agent fees or to maintain
a Transfer Agent of record; (xii) any trading suspension imposed by the Securities and Exchange Commission under Sections 12(j)
or 12(k) of the 1934 Act; (xiii) if the Company is subject to any Bankruptcy Event; or (xiv) failure of the Company to abide by
the terms of the right of first refusal contained in Section 3.00 (i).

 

Remedies.
If an Event of Default occurs and is continuing with respect to the Note, the Holder may declare all of the then outstanding Principal
Amount of this Note, including any interest due thereon, to be due and payable immediately without further action or notice. In
the event of such acceleration, the amount due and owing to the Holder shall be increased to one hundred and fifty percent (150%)
of the outstanding Principal Amount of the Note held by the Holder plus all accrued and unpaid interest, fees, and liquidated
damages, if any. Additionally, this Note shall bear interest on any unpaid principal from and after the occurrence and during
the continuance of an Event of Default at a rate of twenty percent (20%). Finally, the Note will accrue liquidated damages of
one thousand dollars ($1,000) per day from and after the occurrence and during the continuance of an Event of Default. The Company
acknowledges that it would be extremely difficult or impracticable to determine the Holder’s actual damages and costs resulting
from an Event of Default and any such additional amounts are the agreed upon liquidated damages representing a reasonable estimate
of those damages and costs. The remedies under this Note shall be cumulative and added to the principal value of the Note.

 

$5,500.00
Convertible Note

US
Natural Gas Corp.

Tangiers
Investment Group, LLC

 

    	 	4	 

    	 

    

 

Section
3.00 General.

 

(f)
Payment of Expenses. The Company agrees to pay all reasonable charges and expenses, including attorneys’ fees and
expenses, which may be incurred by the Holder in successfully enforcing this Note and/or collecting any amount due under this
Note.

 

(g)
Assignment, Etc. The Holder may assign or transfer this Note to any transferee at its sole discretion. This Note shall
be binding upon the Company and its successors and shall inure to the benefit of the Holder and its successors and permitted assigns.

 

(h)
Governing Law; Jurisdiction.

 

(i)
Governing Law. This note will be governed by and construed in accordance with the laws of the state of California without
regard to any conflicts of laws or provisions thereof that would otherwise require the application of the law of any other jurisdiction.

 

(ii)
Jurisdiction. Any dispute or claim arising to or in any way related to this Note or the rights and obligations of each of
the parties hereto shall be settled by binding arbitration in San Diego, California. All arbitration shall be conducted in accordance
with the rules and regulations of the American Arbitration Association (“AAA”). AAA shall designate an arbitrator
from an approved list of arbitrators following both parties’ review and deletion of those arbitrators on the approved list
having a conflict of interest with either party. The Company agrees that a final non-appealable judgment in any such suit or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on such judgment or in any other lawful manner.

 

(ii)
No Jury Trial. The Company hereto knowingly and voluntarily waives any and all rights it may have to a trial by jury with
respect to any litigation based on, or arising out of, under, or in connection with, this note.

 

(i)
Right of First Refusal. From and after the date of this Note and at all times hereafter while the Note is outstanding,
the Parties agree that in the event that the Company receives any written or oral proposal (the “Proposal”)
containing one or more offers to provide additional capital or financing in an amount equal to or exceeding an aggregate of fifty
thousand dollars ($50,000.00) (the “Financing Amount”), the Company agrees that it shall provide a copy of
all documents received relating to the Proposal together with a complete and accurate description of the Proposal to the Holder
and all amendments, revisions, and supplements thereto (the “Proposal Documents”) no later than three (3) business
days from the receipt of the Proposal Documents. Following receipt of the Proposal Documents from the Company, the Holder shall
have the right (the “Right of First Refusal”), for a period of five (5) business days thereafter (the “Exercise
Period”), to invest, at similar or better terms to the Company, in an amount equal to or greater than the Financing
Amount, upon written notice to the Company that the Holder is exercising the Right of First Refusal provided hereby. In furtherance
of the Right of First Refusal, the Company agrees that it will cooperate and assist Holder in conducting a due diligence investigation
of the Company and its corporate and financial affairs and provide Holder with information and documents that Holder may reasonably
request so as to allow the Holder to make an informed investment decision. However, the Company and Holder agree that Holder shall
have no more than five (5) calendar days from and after the expiration of the Exercise Period to exercise its Right of First Refusal
hereunder. This Right of First Refusal shall extend to all purchases of debt held by current shareholders, vendors, or creditors.

 

$5,500.00
Convertible Note

US
Natural Gas Corp.

Tangiers
Investment Group, LLC

 

    	 	5	 

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Convertible Promissory Note to be duly executed on the day and in the year first
above written.

 

	 	US
    NATURAL GAS CORP
	 	 	 
	 	By:	/s/
    Wayne Anderson
	 	Name:	Wayne
    Anderson
	 	Title:
    	President
	 	Date:	April
    2, 2014

 

This
Note is acknowledged as: Note of April 2, 2014

 

$5,500.00
Convertible Note

US
Natural Gas Corp.

Tangiers
Investment Group, LLC

 

    	 	6	 

    	 

    

 

EXHIBIT
A

 

FORM
OF CONVERSION NOTICE

 

(To
be executed by the Holder in order to convert that certain $5,500 Convertible Promissory Note identified as the Note)

 

	DATE:	 	 
	 	 	 
	FROM:	Tangiers
    Investment Group, LLC	 

 

	 	Re:	$5,500
    Convertible Promissory Note (this “Note”) originally issued by US NATURAL GAS CORP., a Florida corporation, to
    Tangiers Investment Group, LLC on April 2, 2014.

 

The
undersigned on behalf of Tangiers Investment Group, LLC, hereby elects to convert $_______________________ of the aggregate
outstanding Principal Amount (as defined in the Note) indicated below of this Note into shares of Common Stock, $0.001 par value
per share, of US NATURAL GAS CORP. (the “Company”) according to the conditions hereof, as of the date written below.
If shares are to be issued in the name of a person other than undersigned, the undersigned will pay all transfer taxes payable
with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance
therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if any. The undersigned represents
as of the date hereof that, after giving effect to the conversion of this Note pursuant to this Conversion Notice, the undersigned
will not exceed the “Restricted Ownership Percentage” contained in this Note.

 

	Conversion
    information:	 	
	 	 	 
	 	 	Date
    to Effect Conversion
	 	 	 
	 	 	 
	 	 	Aggregate
    Principal Amount of Note Being Converted
	 	 	 
	 	 	 
	 	 	Aggregate
    Interest on Amount Being Converted
	 	 	 
	 	 	 
	 	 	Number
    of Shares of Common Stock to be Issued
	 	 	 
	 	 	 
	 	 	Applicable
    Conversion Price
	 	 	 
	 	 	 
	 	 	Signature
	 	 	 
	 	 	 
	 	 	Name
	 	 	 
	 	 	 
	 	 	Address

 

$5,500.00
Convertible Note

US
Natural Gas Corp.

Tangiers
Investment Group, LLC

 

    	 	7

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