Document:

Exhibit 10.2

 

LOAN
AUTHORIZATION AND AGREEMENT (LA&A)

A
PROPERLY SIGNED DOCUMENT IS 

REQUIRED
PRIOR TO ANY DISBURSEMENT

	CAREFULLY READ THE LA&A:	 
	This document describes the terms and conditions of your loan. It is your responsibility
    to comply with ALL the terms and conditions of your loan.
	 	 	 

	SIGNING THE LA&A:
	All borrowers must sign the LA&A.
	 	 	 
	· Sign your name exactly as it appears on the LA&A.
    If typed incorrectly, you should sign with the correct spelling.
	· If your middle initial appears on the signature line, sign with your
    middle initial.
	· If a suffix appears on the signature line, such as Sr. or Jr., sign
    with your suffix.
	· Corporate Signatories: Authorized representatives should sign the signature
    page.
	 	 	 
	Your signature represents your agreement to comply
    with the terms and conditions of the loan.

 

	 		 

    	 

    

 

U.S.
Small Business Administration

Economic
Injury Disaster Loan

LOAN
AUTHORIZATION AND AGREEMENT

Date:
06.23.2020 (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
#XXX) to Florida Precision Aerospace, Inc. (Borrower) of 821 NW 57 Place Fort Lauderdale Florida 33309 in the amount of
one hundred and fifty thousand and 00/100 Dollars ($150,000.00), upon the following conditions:

		PAYMENT	

	·		Installment
                                         payments, including principal and interest, of $731.00 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.

    	 	Page 2 of 11	 

    	 

    

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.

 

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.

 

    	 	Page 3 of 11	 

    	 

    

	 	 	 

                                                                                 

	·		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.

 

 

    	 	Page 4 of 11	 

    	 

    

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

    	 	Page 5 of 11	 

    	 

    

 

			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.

	·		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.

    	 	Page 
                                                                                                                                                                                                                                                                6 of 11	 

    	 

    

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.

	 	 	 
	 	 	 
	 	 	 
	 	 	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.

	Florida Precision Aerospace, Inc.	 	 
	 	 	 
		 	 
	Carlos Sanchez, Owner/Officer	 	Date: 06.23.2020  
	 	 	 
	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.

			

    	 	Page 
                                                                                                                                                                                                                                                                7 of 11	 

    	 

    

CERTIFICATION
REGARDING LOBBYING

For
loans over $150,000, Congress requires recipients to agree to the following:

		1.	Appropriated
                                         funds may NOT be used for lobbying.

		2.	Payment
                                         of non-federal funds for lobbying must be reported on Form SF-LLL.

		3.	Language
                                         of this certification must be incorporated into all contracts and subcontracts exceeding
                                         $100,000.

		4.	All
                                         contractors and subcontractors with contracts exceeding $100,000 are required to certify
                                         and disclose accordingly.

    	 	Page 8 of 11	 

    	 

    

CERTIFICATION
REGARDING LOBBYING

Certification
for Contracts, Grants, Loans, and Cooperative Agreements

 

Borrower
and all Guarantors (if any) certify, to the best of its, his or her knowledge and belief, that:

(1)         
No Federal appropriated funds have been paid or will be paid, by or on behalf of the
undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress,
an officer or employee of Congress, or an employee of a Member of Congress in connection with awarding of any Federal contract,
the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension,
continuation, renewal, or modification of any Federal contract, grant, loan, or cooperative agreement.

(2)         
If any funds other than Federal appropriated funds have been paid or will be paid
to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer
or employee of Congress, or an employee of a Member of Congress in connection with this Federal loan, the undersigned shall complete
and submit Standard Form LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.

(3)         
The undersigned shall require that the language of this certification be included
in the award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans,
and co-operative agreements) and that all sub-recipients shall certify and disclose accordingly.

This
certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into.
Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title
31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000.00
and not more than $100,000.00 for each such failure.

 

    	 	Page 9 of 11	 

    	 

    

	 	This Statement
                           of Policy is Posted

                           In Accordance
                           with Regulations of the

                            

                           Small
                           Business Administration

                            

                           This Organization
                           Practices
	 	
	 		 	 
	 		 	 

  

Equal
Employment Opportunity

We
do not discriminate on the ground of race, color, religion, sex, age, disability or national origin in the hiring, retention,
or promotion of employees; nor in determining their rank, or the compensation or fringe benefits paid them.

This
Organization Practices

Equal
Treatment of Clients

 

We
do not discriminate on the basis of race, color, religion, sex, marital status, disability, age or national origin in services
or accommodations offered or provided to our employees, clients or guests.

These
policies and this notice comply with regulations of the United States Government.

	Please report violations
    of this policy to:
	 	 
	 	Administrator
	 	Small Business Administration
	 	Washington,
        D.C. 20416
 

In
order for the public and your employees to know their rights under 13 C.F.R Parts 112, 113, and 117, Small Business Administration
Regulations, and to conform with the directions of the Administrator of SBA, this poster must be displayed where it is clearly
visible to employees, applicants for employment, and the public.

 

Failure
to display the poster as required in accordance with SBA Regulations may be considered evidence of noncompliance and subject you
to the penalties contained in those Regulations.

 

This
form was electronically produced by Elite Federal Inc.

 

 

    	 	Page 10 of 11	 

    	 

    

	 	 
	 	 	

	 	 	Esta Declaración De Principios Se Publica

                                   De Acuerdo Con Los Reglamentos De La

                                    

                                   Agencia Federal Para el Desarrollo
                                   de la Pequeña Empresa

                                    

                                   Esta Organización Practica

	 	 	 
	 	 	 

  

Igual
Oportunidad De Empleo

 

No
discriminamos por razón de raza, color, religión, sexo, edad, discapacidad o nacionalidad en el empleo, retención
o ascenso de personal ni en la determinación de sus posiciones, salarios o beneficios marginales.

Esta
Organización Practica

Igualdad
En El Trato A Su Clientela

 

No
discriminamos por razón de raza, color, religión, sexo, estado civil, edad, discapacidad o nacionalidad en los servicios
o facilidades provistos para nuestros empleados, clientes o visitantes.

Estos
principios y este aviso cumplen con los reglamentos del Gobierno de los Estados Unidos de América.

	Favor de informar violaciones a lo aquí
    indicado a:
	 	 
	 	Administrador
		Agencia Federal Para el Desarrollo de la
	 	Pequeña Empresa
	 	Washington, D.C. 20416

 

A
fin de que el público y sus empleados conozcan sus derechos según lo expresado en las Secciones 112, 113 y 117 del
Código de Regulaciaones Federales No. 13, de los Reglamentos de la Agencja Federal Para el Desarrollo de la Pequeña
Empresa y de acuerdo con las instrucciones del Administrador de dicha agencia, esta notificación debe fijarse en un lugar
claramente visible para los empleados, solicitantes de empleo y público en general.

 

No fijar esta notificación según
lo requerido por los reglamentos de la Agencia Federal Para el Desarrollo de la Pequeña Empresa, puede ser interpretado
como evidencia de falta de cumplimiento de los mismos y conllevará la ejecución de los castigos impuestos en estos
reglamentos.

 

This
form was electronically produced by Elite Federal Inc.

 

 

    	 	Page 11 of 11	 

    	 

    

	NOTE	

 

A
PROPERLY SIGNED NOTE IS 

REQUIRED
PRIOR TO ANY 

DISBURSEMENT

	CAREFULLY
        READ THE NOTE: It is your promise to repay the loan.

        ·
        The Note is pre-dated. DO NOT CHANGE THE DATE OF THE NOTE.

         

        ·
        LOAN PAYMENTS will be due as stated in the Note.

         

        ·
        ANY CORRECTIONS OR UNAUTHORIZED MARKS MAY VOID THIS DOCUMENT.

         

	SIGNING
        THE NOTE: All borrowers must sign the Note.

         

        ·
        Sign your name exactly as it appears on the Note. If typed incorrectly,
        you should sign with the correct spelling.

         

        ·
        If your middle initial appears on the signature line, sign with your middle initial.

         

        ·
        If a suffix appears on the signature line, such as Sr. or Jr., sign with your suffix.

         

        ·
        Corporate Signatories: Authorized representatives should sign the signature page.

         

         

         

         

	 	 	 

    	 	  	 

    	 

    

	 	 	U.S.
    Small Business Administration	 	 Date:
    06.23.2020
	 	 	NOTE	 	 Loan
    Amount: $150,000.00
	 	 	(SECURED
    DISASTER LOANS)	 	 Annual
    Interest Rate: 3.75%

	SBA Loan # XXX	 	Application # XXX

		1.	PROMISE
                                         TO PAY: In return for a loan, Borrower promises to pay to the order of SBA the amount
                                         of one hundred and fifty thousand and 00/100 Dollars ($150,000.00), 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 $731.00 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.

    	 	Page 2 of 3	 

    	 

    

		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 one- half 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.

 

 

 

	 	Florida Precision Aerospace, Inc.	 	 
	 	 	 	 
	 	 	 	 
	 	Carlos Sanchez,
                                         Owner/Officer

         
	 	

 

 

 

    	 	Page 3 of 3	 

    	 

    

 

SECURITY
AGREEMENT

Read
this document carefully. It grants the SBA a security interest (lien) in all the property described in paragraph 4.

This
document is predated. DO NOT CHANGE THE DATE ON THIS DOCUMENT.

 

 

 

 

    	 		 

    	 

    

	 	 	U.S. Small
                           Business Administration

                            

                           SECURITY
                           AGREEMENT
	 	 
	 	 	 	 	 

	SBA
    Loan #:	XXX
	Borrower:	Florida
    Precision Aerospace, Inc.
	Secured
    Party:	The
    Small Business Administration, an Agency of the U.S. Government
	Date:	06.23.2020
	Note
    Amount:	$150,000.00

 

 

		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 06.23.2020, made by Florida Precision Aerospace, Inc. , made payable
                              to Secured Lender, in the amount of $150,000.00 (“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.

		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

    	 	Page 2 of 5	 

    	 

    

	 	 	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.

    	 	PAge 3 of 5	 

    	 

    

		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.

 

    	 	Page 4 of 5	 

    	 

    

		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.
	 	 	 

	 	Florida Precision Aerospace, Inc.	 	 
	 	 	 	 
	 	 	 	 
	 	Carlos Sanchez,
                                         Owner/Officer

         
	 	Date: 06.23.2020

 

 

 

    	 	Page 5 of 5ex_199467.htm

Exhibit 4.22

 

[FORM OF UNIT OFFERING WARRANT] 

 

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

BIOLARGO, INC.

 

WARRANT TO PURCHASE COMMON STOCK

 

 

	
			INSTRUMENT NO. XX 

				
			ISSUED: XX     

			

 

 

THIS CERTIFIES THAT, for value received, XX (the “Holder”), is entitled upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date issued set forth above (the “Exercise Date”) and on or prior to 5:00 p.m. Pacific Time on XX (the “Termination Date”) but not thereafter, to subscribe for and purchase from BioLargo, Inc., a Delaware corporation (the “Company”), up to XX shares (the “Warrant Shares”) of common stock, par value, $0.00067, of the Company (the “Common Stock”). The exercise price per share of the Common Stock under this Warrant shall be $XX subject to adjustment hereunder (the “Exercise Price”).

 

This Warrant is issued in connection with and as consideration for the initial Holder’s investment in the Company’s private securities offering dated May 1, 2020, titled its Summer 2020 Unit Offering, in which the initial Holder purchased a Unit consisting of shares of common stock and two stock purchase warrants.

 

1.     Method of Exercise; Payment; Issuance of New Warrant.

 

(a)     Exercise of Warrant.  Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto; and, within three (3) Trading Days (for purposes herein, “Trading Day” means a day on which any of the following markets or exchanges on which the Common Stock is listed or quoted is open for trading on the date in question (“Trading Market”): the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the OTC Markets (or any successors to any of the foregoing)), of the date said Notice of Exercise is delivered to the Company, the Company shall have received payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company.  Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within one Business Day of receipt of such notice.  In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

- 1 -

 

 

(b)     Mechanics of Exercise.

 

(i)     Delivery of Certificates Upon Exercise.  Certificates for shares purchased hereunder shall be transmitted by the Transfer Agent (“Transfer Agent” means American Stock Transfer & Trust Company, the current transfer agent of the Company, with a mailing address of 6201-15th Avenue, Brooklyn, New York 11219 and a facsimile number of 718-236-2641, and any successor transfer agent of the Company) to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company through its Deposit Withdrawal Agent Commission (“DWAC”) system if the Company is then a participant in such system and there is an effective Registration Statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder, by the date that is three (3) Trading Days after the latest of (A) the delivery to the Company of the Notice of Exercise Form, (B) surrender of this Warrant (if required) and (C) payment of the aggregate Exercise Price as set forth above (such date, the “Warrant Share Delivery Date”). This Warrant shall be deemed to have been exercised on the first date on which all of the foregoing have been delivered to the Company. The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 1(c)(vi) prior to the issuance of such shares, having been paid.  If the Company fails for any reason to deliver to the Holder certificates evidencing the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $5 per Trading Day (increasing to $10 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such certificates are delivered or Holder rescinds such exercise. In the event that there is not an effective Registration Statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder, shares purchased hereunder shall be delivered to the Holder by credit the account of the Holder at the Company’s Transfer Agent by the date that is ten Trading Days after the latest of (A) the delivery to the Company of the Notice of Exercise Form, (B) surrender of this Warrant (if required) and (C) payment of the aggregate Exercise Price as set forth above (such date, the “Warrant Share Delivery Date”).

 

(ii)      Delivery of New Warrants Upon Exercise.  If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

(iii)     Rescission Rights.  If the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then, the Holder will have the right to rescind such exercise.

 

- 2 -

 

 

(iv)     Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise.  In addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder.  For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss.  Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

(v)     No Fractional Shares or Scrip.  No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant.  As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

 

(vi)     Charges, Taxes and Expenses.  Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.

 

(vii)     Closing of Books.  The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

 

(viii)     “VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time), (b)  if the OTC Bulletin Board is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Company and reasonably acceptable to a majority in interest of the Securities then outstanding, the fees and expenses of which shall be paid by the Company.

 

- 3 -

 

 

(ix)     If (a) twelve (12) months have elapsed since the issued date set forth on page 1, (b) the Market Price of one share of Common Stock is greater than the Exercise Price, and (c) the Warrant Shares are not subject to a registration statement filed by the Company for the resale of the Warrant Shares that has been declared effective by the Securities and Exchange Commission, then the Holder may elect to receive Warrant Shares pursuant to a cashless exercise, in lieu of a cash exercise, equal to the value of this Warrant determined in the manner described below (or of any portion thereof remaining unexercised) by surrender of this Warrant and a Notice of Exercise, in which event the Company shall issue to Holder a number of Common Stock computed using the following formula:

 

	
			X =  

				
			Y (A - B)

			
	
			A

			

Where  

 

	 	
			X =

				
			the number of Warrant Shares to be issued to Holder.

			

 

	 	
			Y =

				
			the number of Warrant Shares that the Holder elects to purchase under this Warrant (at the date of such calculation).

			

 

	 	
			A =

				
			the Market Price (at the date of such calculation).

			

 

	 	
			B =

				
			Exercise Price (as adjusted to the date of such calculation).

			

 

2.     Call Provision. In the event that both of the following conditions are met (the “Call Conditions”), the Company may “call” this Warrant requiring the Holder purchase all or a portion of the Warrant Shares pursuant to the provisions of this Paragraph: (i) the closing price of the Common Stock for each of ten (10) consecutive trading days, equals or exceeds two (2) times the Exercise Price (subject to adjustment for forward and reverse stock splits, recapitalizations, stock dividends and the like after the date of issuance of this Warrant), and (ii) the Warrant Shares are subject to an effective registration statement (“Registration Statement”) filed with the Securities & Exchange Commission. If the Call Conditions are satisfied concurrently, the Company may, within thirty (30) calendar days of such day, call for cancellation of all or any portion of the remaining Warrant Shares for which a Notice of Exercise Form has not yet been delivered (such right, a “Call”). To exercise this right, the Company must deliver to the registered Holder a written notice (a “Call Notice”), indicating therein the unexercised portion of this Warrant to which such notice applies. In the event a Notice of Exercise Form for any portion of this Warrant subject to such Call Notice shall not have been received by the Company within thirty (30) calendar days after the date of the Call Notice, then such portion shall be forfeited in its entirety without payment or consideration to the registered Holder.  

 

3.     Stock Fully Paid; Reservation of Shares. All Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be fully paid and nonassessable, and free from all preemptive rights, taxes, liens and charges with respect to the issue thereof; provided, however, that the Company shall not be required to pay any transfer taxes with respect to the issue of shares in any name other than that of the registered holder hereof. During the period within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized, and reserved for the purpose of the issue upon exercise of the purchase rights evidenced by this Warrant, a sufficient number of shares of Common Stock to provide for the exercise of the rights represented by this Warrant. The Company shall at all times take all such action and obtain all such permits or orders as may be necessary to enable the Company lawfully to issue such Common Stock as duly and validly issued, fully paid and nonassessable shares upon exercise in full of this Warrant.

 

- 4 -

 

 

4.     Adjustment. This Warrant shall be subject to adjustment from time to time upon the occurrence of certain events, as follows:

 

(a)     Adjustment for Stock Splits and Combinations. If the Company shall at any time or from time to time after the date hereof effect a subdivision of the outstanding Common Stock, the Exercise Price then in effect immediately before that subdivision shall be proportionately decreased. If the Company shall at any time or from time to time after the date hereof combine the outstanding Common Stock, the Exercise Price then in effect immediately before the combination shall be proportionately increased. Any adjustment under this subsection shall become effective at the close of business on the date the subdivision or combination becomes effective.

 

(b)     Adjustment for Certain Dividends and Distributions. In the event the Company at any time or from time to time after the date hereof shall make or issue a dividend or other distribution payable in additional shares of Common Stock, then and in each such event the Exercise Price shall be decreased as of the time of such issuance, by multiplying the Exercise Price by a fraction:

 

	 	
			(x)

				
			the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance; and

			

 

	 	
			(y)

				
			the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance plus the number of shares of Common Stock issuable in payment of such dividend or distribution.

			

 

(c)     Adjustment of Number of Shares. Upon each adjustment of the Exercise Price pursuant to either Section 4(a) or 4(b) of this Warrant, the number of shares of Common Stock purchasable upon exercise of this Warrant shall be adjusted to the number of shares of Common Stock, calculated to the nearest one hundredth of a share, obtained by multiplying the number of shares of Common Stock purchasable immediately prior to such adjustment upon the exercise of the Warrant by the Exercise Price in effect prior to such adjustment and dividing the product so obtained by the new Exercise Price.

 

(d)     Adjustment for Reclassification, Exchange and Substitution. If the Common Stock issuable upon the exercise of this Warrant are changed into the same or different number of shares of any class or classes of stock, whether by recapitalization, reclassification or otherwise (other than a subdivision or combination provided for in Section 4(a) above, a dividend or distribution provided for in Section 4(b) above, or a reorganization, merger, consolidation or sale of assets, provided for in Section 4(e) below), then and in any such event the Holder shall have the right thereafter to exercise this Warrant into the kind and amount of stock and other securities receivable upon such recapitalization, reclassification or other change, by holders of the number of shares of Common Stock for which this Warrant might have been exercised immediately prior to such recapitalization, reclassification or change.

 

- 5 -

 

 

(e)     Reorganization, Mergers, Consolidations or Sales of Assets. If at any time or from time to time there is a capital reorganization of the Common Stock (other than a subdivision or combination provided for in Section 4(a) above, a dividend or distribution provided for in Section 4(b) above, or a reclassification or exchange of shares provided for in Section 4(d) above) or a merger or consolidation of the Company with or into another entity, or a sale of all or substantially all of the Company’s properties and assets to any other person or entity, then, as a part of such reorganization, merger, consolidation or sale, provision shall be made so that the Holder shall thereafter be entitled to receive upon exercise of this Warrant the number of shares of stock or other securities, money or property of the Company, or of the successor entity resulting from such merger or consolidation or sale, to which a holder of Common Stock deliverable upon conversion would have been entitled on such capital reorganization, merger, consolidation, or sale. The Company shall not effect any reorganization, merger, consolidation or sale unless prior to the consummation thereof each entity or person (other than the Company) that may be required to deliver any cash, securities or other property upon the exercise of this Warrant shall assume, by written instrument delivered to the Holder, the obligation to deliver to the Holder such cash, securities or other property as in accordance with the foregoing provisions the Holder may be entitled to receive. The foregoing provisions of this Section 4(e) shall similarly apply to successive reorganizations, mergers, consolidations and sales.

 

(f)     No Impairment. The Company will not, by amendment of its Articles of Incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company but will at all times in good faith assist in the carrying out of all the provisions of this Section and in the taking of all such action as may be necessary or appropriate in order to protect the conversion rights of the Holder against dilution or other impairment. Without limiting the generality of the foregoing, the Company will not issue any capital stock of any class which is preferred as to dividends or as to the distribution of assets upon the voluntary or involuntary dissolution, liquidation or winding up of the Company.

 

(g)     Notice of Adjustments. Whenever this Warrant shall be adjusted pursuant to this Section 4, the Company shall make a certificate signed by an officer of the Company setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and the new Exercise Price and the type or the number of Shares purchasable after giving effect to such adjustment, and shall cause copies of such certificate to be mailed (by first class mail, postage prepaid) to the Holder.

 

5.     Notice of Record Date. In the event:

 

	 	
			(1)

				
			that the Company declares a dividend (or any other distribution) on any of its capital stock (including without limitation, its Common Stock);

			

 

	 	
			(2)

				
			that the Company repurchases or redeems any of its capital stock (including without limitation, its Common Stock) or any rights to acquire such capital stock;

			

 

	 	
			(3)

				
			that the Company subdivides or combines its outstanding shares of Common Stock;

			

 

	 	
			(4)

				
			of any reclassification of the Common Stock, or of any consolidation, merger or share exchange of the Company into or with another entity, or of the sale of all or substantially all of the assets of the Company;

			

 

	 	
			(5)

				
			of the involuntary or voluntary dissolution, liquidation or winding up of the Company; or

			

 

	 	
			(6)

				
			of any offer of its Common Stock or any rights to acquire such Common Stock for consideration paid per share of Common Stock less than the Exercise Price then in effect.

			

 

then the Company shall notify the Holder at least 30 days prior to the date specified in (A), (B) or (C) below, in writing stating:

 

(A)     the record date of such dividend, distribution, repurchase, redemption, subdivision or combination, or, if a record is not to be taken, the date as to which the holders of Common Stock of record to be entitled to such dividend, distribution, repurchase, redemption, subdivision or combination are to be determined;

 

- 6 -

 

 

(B)     the date on which such reclassification, consolidation, merger, share exchange, sale, dissolution, liquidation or winding up is expected to become effective, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such reclassification, consolidation, merger, sale, dissolution or winding up; or

 

(C)     the date on which such offering of its Common Stock or any rights to acquire such Common Stock for consideration paid per share of Common Stock less than the Exercise Price is expected to become consummated.

 

6.     Transfer of Warrant.

 

(a)     Transferability. This Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.  Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.  The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

(b)     New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 6(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date set forth on the first page of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

(c)     Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

(d)     Understandings or Arrangements. Such Holder is acquiring this Warrant as principal for its own account and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Warrant (this representation and warranty not limiting such Holder’s right to sell the Warrant pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws.) Such Holder is acquiring this Warrant hereunder in the ordinary course of its business.

 

- 7 -

 

 

7.     Miscellaneous.

 

(a)     No Rights as Stockholder Until Exercise.  This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 1(d)(i).

 

(b)     Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

(c)     Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a business day, then, such action may be taken or such right may be exercised on the next succeeding business day.

 

(d)     Authorized Shares.

 

(i)     The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

(ii)     Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.  Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

(iii)     Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

- 8 -

 

 

(e)     Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of Delaware law.

 

(f)     Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities laws.

 

(g)     Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies.  Without limiting any other provision of this Warrant, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

(h)     Notices. Except as otherwise expressly provided herein, all notices and other communications provided for hereunder shall be in writing (including electronic mail and facsimile) and delivered to the applicable party at its address specified opposite its signature below, or at such other address as shall be designated by such party in a written notice to the other. All such notices and communications shall, when mailed, telegraphed, telexed, telecopied or cabled or sent by overnight courier, be effective when deposited in the mails, delivered to the telegraph company, cable company or overnight courier, as the case may be, or sent by telex or telecopier.

 

(i)     Limitation of Liability. No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

(j)     Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant.  The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

(k)     Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

(l)     Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holders holding Warrants at least equal to a majority of the Warrant Shares issuable upon exercise of all then outstanding Warrants.

 

(m)     Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

- 9 -

 

 

(n)     Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed and delivered by its duly authorized officer on the day and year first above written.

 

	 	
			BIOLARGO, INC.

			
	 	 
	 	 
	 	
			By: _________________________

			
	 	
			Name: Dennis P. Calvert, President

			

 

- 10 -

 

 

EXHIBIT A

 

NOTICE OF EXERCISE – WARRANT

 

 

TO:        BIOLARGO, INC.

 

(1)   The undersigned hereby elects to purchase _____________ Warrant Shares of BioLargo, Inc., pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

(2) Unless said Warrant Shares will be delivered electronically via DWAC, please issue the Warrant Shares in the name of the undersigned or in such other name as is specified below in “book entry” form at the Company’s transfer agent.

 

If the Warrant Shares will be delivered electronically via DWAC, please issue them to the following account:

 

	 	
			Name of DTC Participant (broker-dealer at which the account of Holder to be credited with the Warrant Shares is maintained):

				 

 

	 	
			DTC Participant Number:

				 	 

 

	 	
			Name of Account at DTC Participant to be credited with the Shares:

				 
	 	
			 

			

 

	 	
			Account Number at DTC Participant to be credited with the Shares:

			
	 	 	 

 

[SIGNATURE OF HOLDER]

 

	
			Name of Investing Entity:

			
	 	 

  

	
			Signature of Authorized Signatory of Investing Entity:

				
			 

			

 

	
			Name of Authorized Signatory:

				
			 

			

 

	
			Title of Authorized Signatory:

				
			 

			

 

	
			Date:

				
			 

				 

 

 

 

 

EXHIBIT B

 

NOTICE OF TRANSFER – SERIES “A” WARRANT

 

(To be signed only upon transfer of Warrant and subject to other conditions of this Warrant)

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ____________________________________________ the right represented by the attached Warrant to purchase __________ shares of the Common Stock of BIOLARGO, INC., to which the attached Warrant relates, and appoints _____________________ as Attorney-in-fact to transfer such right on the books of BIOLARGO, INC., with full power of substitution in the premises.

 

The undersigned understands that any transfer of the attached Warrant is subject to full compliance with Federal and applicable state securities laws and other requirements, which requirements shall be determined and which issues shall be decided by BIOLARGO, INC., in its sole and absolute discretion, prior to consenting to and recognizing such transfer.

 

Dated:                                    

 

	 	 
	 	
			(Signature must conform in all respects to the name of the Holder as specified on the face of the Warrant)

			
	 	 
	 	 
	 	 
	 	 
	 	
			(Address)

			

 

 

Signed in the presence of:

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