Document:

Unsecured Promissory Note

(Installment Payments)

 

Date: April 16, 2015

 

Borrower: Raj Shah

3140 Deering Bay Drive

Naperville, IL 60564

(“Borrower”)

 

Lender: REGULUS Corporation

423 Main Street, 2nd Floor

Rockland, ME 04841

(“Lender”)

 

I. Promise to Pay

Borrower agrees to pay Lender the total amount of $35,000,
together with interest payable on

the unpaid principal at the rate of 1% per annum.

Payment will be delivered to Lender via wire transfer or
other address mutually agreed upon

both parties.

If payments are made timely all interest shall be waived.

 

II. Payment

The amount owed under this Promissory Note will be paid in
two equal installment of $17,500.

All payments shall be first applied to interest and the balance
to principal.

1. First payment no later than 15 days from the execution
of this Note.

2. Second Payment shall be due within 120 days from execution
of this note.

a. If Borrower terminates the Independent Contractor Agreement
any time prior to the

120 day anniversary (date of signing) per Section II. 2.,
this Note shall terminate and

no further payment is due pursuant to Section II. 2.

 

III. Additional Costs

In case of default in the payment of any principal or interest
of this Promissory Note, Borrower

will pay to Lender such further amount as will be sufficient
to cover the cost and expenses of

collection, including, without limitation, reasonable attorney's
fees, expenses, and

disbursements. These costs will be added to the outstanding
principal and will become

immediately due.

 

IV. Transfer of the Promissory Note

Borrower hereby waives any notice of the transfer of this
Note by Lender or by any subsequent

holder of this Note, agrees to remain bound by the terms
of this Note subsequent to any

transfer, and agrees that the terms of this Note may be fully
enforced by any subsequent holder

of this Note.

 

V. Amendment; Modification; Waiver

No amendment, modification or waiver of any provision of
this Promissory Note or consent to

departure therefrom shall be effective unless by written
agreement signed by both Borrower

and Lender.

 

VI. Successors

The terms and conditions of this Promissory Note shall inure
to the benefit of and be binding

jointly and severally upon the successors, assigns, heirs,
survivors and personal representatives

of Borrower and shall inure to the benefit of any holder,
its legal representatives, successors

and assigns. ·

 

Vll. Breach of Promissory Note

No breach of any provision of this Promissory Note shall
be deemed waived unless it is waived

in writing. No course of dealing and no delay on the part
of Lender in exercising any right will

operate as a waiver thereof or otherwise prejudice Lender's
rights, powers, or remedies. No

right, power, or remedy conferred by this Promissory Note
upon Lender will be exclusive of

any other rights, power, or remedy referred to in this Note,
or now or hereafter available at law,

in equity, by statute, or otherwise.

 

VIII. Governing Law

The validity, construction and performance of this Promissory
Note will be governed by the

laws of Florida, excluding that body of law pertaining to
conflicts of law. Borrower hereby

waives presentment, notice of non-payment, notice of dishonor,
protest. demand and diligence.

 

The parties hereby indicate by their signatures below that
they have read and agree with the

terms and conditions of this agreement in its entirety.

 

	Borrower Signature:	/s/Raj Shah
	 	Raj Shah
	 	 
	Lender Signature:	/s/David F. Emery
	 	REGULUS Corp.REGULUS CORPORATION

Promissory Note due December 15, 2015

Fully and Unconditionally Guaranteed
Jointly and Severally by

REGULUS Corporation

 

Loan Amount: $ 15,000 December 4, 2014

Date

Rockland, ME 04841

City, State

FOR VALUE RECEIVED REGULUS
Corporation, a Washington State Company with an address at 423 Main

Street, 3rd Floor, Rockland, ME 04841 hereinafter
“Maker” promises to pay to Ed Schradermeier, hereinafter

“Holder” with an address
at 2468 Cooper Dr., Freeport IL 61032, or other such place as may be designated by

the Holder from time to time, the principal
sum of fifteen thousand Dollars ($15,000.00) with interest thereon

from 1st day of January, 2015 on the unpaid
principal at twelve percent (12%) per annum as follows:

1. PAYMENTS: Maker shall pay, INTEREST
ONLY PAYMENTS on the outstanding principal balance

until Maturity on the fifteenth (15th) day
of each calendar month starting ninety (90) days from execution of the

Note, or, if any of the interest payment
dates or the maturity date falls on a day that is not a business day,

REGULUS will postpone the payment of interest
or principal to the next succeeding business day, but the

payment made on such dates will be treated
as being made on the date payment was first due and the holders of

the notes will not be entitled to any further
interest or other payments with respect to such postponements. The

term ‘‘business day’’
means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on

which banking institutions in the State of
Maine are authorized by law to close. The Issuer shall remit a monthly

payment (“Monthly Payment”) to
the Trustee, who will in turn remit to Investor(s).

2. INTEREST RATE: The note will mature
on December 15, 2015 and will bear interest from the date of

original issuance at a rate per annum of
12.0%. Interest on the notes will be payable on the 15th of each month

commencing ninety (90) days from the closing
date to the persons in whose names such notes are registered at

the close of business on the fifteenth calendar
day preceding the payment date, or if not a business day, the next

succeeding business day. Interest on the
notes will accrue from and including the date of issue or from and

including the last date in respect of which
interest has been paid, as the case may be, to, but excluding, the

relevant interest payment date, date of redemption
or the date of maturity, as the case may be. Interest on the

notes will be computed on the basis of a
360-day year of twelve 30-day months.

3. PAYMENT DATE: The installment payments
shall begin on the 15TH day of March, 2015 and shall

continue on the 15th day of each succeeding
calendar month.

4. MATURITY DATE: The entire balance
of this Note, together with any and all interest accrued thereon,

shall be due and payable in full on the 15th
day of December, 2015.

5. DEFAULT INTEREST RATE: After maturity,
or failure to make any payment, any unpaid principal

shall accrue interest at the rate of eighteen
percent (18%) per annum OR the maximum rate allowed by

law, whichever is less, during such period
of Maker’s default under this Note.

6. ALLOCATION OF PAYMENTS: Each payment
shall be credited first to any late charge due,

second to interest.

7. PREPAYMENT: Maker may prepay all
or part of the balance owed under this Note at any time

without penalty.

2

8. CURRENCY: All principal and interest
payments shall be made in lawful money of the United States.

9. LATE CHARGE: If Holder receives
any installment payment more than 15 days after its due date, then a

late payment charge of 5% of the installment
payment shall be added to the scheduled payment.

10. ACCELERATION: If Maker fails to
make any payment owed under this Note, or if Maker defaults

under any Deed of Trust or any other instruments
securing repayment of this Note, and such default

is not cured within days (30 days if not
filled in) after written notice of such default, then Holder

may, at its option, declare all outstanding
sums owed on this Note to be immediately due and

payable, in addition to any other rights
or remedies that Holder may have under the Deed of Trust

or other instruments securing repayment of
this Note.

11. ATTORNEYS’ FEES AND COSTS: Maker
shall pay all costs incurred by Holder in collecting

sums due under this Note after a default,
including reasonable attorneys’ fees, whether or not suit is

brought. If Maker or Holder sues to enforce
this Note or obtain a declaration of its rights hereunder,

the prevailing party in any such proceeding
shall be entitled to recover its reasonable attorneys’

fees and costs incurred in the proceeding
(including those incurred in any bankruptcy proceeding or

appeal) from the non-prevailing party.

12. WAIVER OF PRESENTMENTS: Maker
waives presentment for payment, notice of dishonor,

protest and notice of protest.

13. NON-WAIVER: No failure or delay
by Holder in exercising Holder’s rights under this Note shall be

a waiver of such rights.

14. SEVERABILITY: If any clause or
any other portion of this Note shall be determined to be

void or unenforceable for any reason, such
determination shall not affect the validity or

enforceability of any other clause or portion
of this Note, all of which shall remain in full force and

effect.

15. INTEGRATION: There are no verbal
or other agreements which modify or affect the terms of this

Note. This Note may not be modified or amended
except by written agreement signed by Maker and

Holder and pursuant to the terms of the Promissory
Note Offering which should be read in

conjunction with the Promissory Note.

16. CONFLICTING TERMS: In the event
of any conflict between the terms of this Note and the terms

of any Deed of Trust or other instruments
securing payment of this Note, the terms of this Note shall

prevail.

17. EXECUTION: Each Maker executes
this Note as a principal and not as a surety. If there is more

than one Maker, each such Maker shall be
jointly and severally liable under this Note.

18. ORAL AGREEMENTS: ORAL AGREEMENTS
OR ORAL COMMITMENTS TO LOAN

MONEY, TO EXTEND CREDIT, OR TO FOREBEAR FROM
ENFORCING REPAYMENT OF A

DEBT ARE NOT ENFORCEABLE UNDER LAW.

19. DEFINITIONS: The word Maker shall
be construed interchangeably with the words Borrower or

Payer and the word Holder shall be construed
interchangeably with the words Lender or Payee. In this

Note, singular and plural words shall be
construed interchangeably as may be appropriate in the

context and circumstances to which such words
apply.

20. ADDITIONAL TERMS AND CONDITIONS:

a. $15,000 in REGULUS company stock at 50% of the IPO price
(e.g., $1.00 per share sale price = $0.50 per share, and thus 30,000 shares)

b. Price protection in the form of resets if stock price drops
below conversion price at time of IPO

c. Guaranteed return on invested capital of %15,000, repayment
of $30,000 at maturity.

21. SECURITY: See Security Agreement which is incorporated
by this reference.

All signatories hereto acknowledge that they have read the
foregoing Agreement by their signatures. 

 

	LENDER/HOLDER	 
	/s/Ed Schradermeier	12/6/2014
	Ed Schradermeier, Holder	Date
	 	 
	MAKER: REGULUS Corporation	 
	/s/David
    F. Emery	12/4/2014
	David Emery, CEO	Date
	 	 
	Custodian: RYS & Company Management LLC	 
	/s/James Jenkins	12/4/14
	James E. Jenkins, President	Date

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