SEC Contract Filing

Filing Date: 2018-09-24

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>ex_124472.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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<p style="margin-bottom: 0px; text-align: right; margin-top: 0px"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt"><b>Exhibit 10.3</b></font></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>PROMISSORY </b><b>NOTE</b></p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:43.2pt;margin-top:0pt;text-align:justify;"><b>THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE &ldquo;SECURITIES ACT&rdquo;) OR APPLICABLE STATE SECURITIES LAWS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT THERE IS AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.</b></p>

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 <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;"><b>Westminster</b><b>, California</b></p>
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 <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>Original Principal </b><b>Amount</b><b>: </b><b>$</b><b>120</b><b>,000</b></p>
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 <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:right;"><b>Issuance </b><b>Date: </b><b>September </b><b>19</b><b>, 2018</b></p>
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 <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><b>Instrument #:</b><b> 331</b><b>49</b></p>
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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">FOR VALUE RECEIVED, BIOLARGO, INC., a corporation organized under the laws of the state of Delaware (&ldquo;<u>Issuer</u>&rdquo;), promises to pay to the order of<b> </b><b>Chappy Bean</b><b>, LLC</b> (hereafter, together with any subsequent holder hereof, called &ldquo;<u>Holder</u>&rdquo;), at its address, or at such other place as Holder may direct, the &ldquo;Original Principal Amount&rdquo; noted above (the &ldquo;<u>Loan Amount</u>&rdquo;), payable on <b>January 5</b><b>, 20</b><b>19</b> (the &ldquo;<u>Maturity Date</u>&rdquo;). This note is duly authorized issue of the Issuer, purchased by the initial Holder pursuant to the subscription agreement (&ldquo;<u>Subscription Agreement</u>&rdquo;) submitted by the original Holder and accepted by the Issuer on the &ldquo;Issuance Date&rdquo; noted above (the &ldquo;<u>Issuance Date</u>&rdquo;) (referred to herein as the &ldquo;<u>Note</u>&rdquo;). The funds may be used by the Company to retire outstanding debt, or for working capital, in the Company&rsquo;s discretion.</p>

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<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">The Issuer agrees to pay interest on the unpaid Loan Amount from time to time outstanding hereunder at the following rates per year, compounded annually before the Maturity Date, whether by acceleration or otherwise, at the rate per annum equal to twelve percent (12%). So long as an Event of Default (as defined in Section 4 below) has not occurred, Issuer may extend the Maturity Date of the Note by 60 days by giving written notice to Holder at any time prior to the Maturity Date, and in such event the Principal Amount of this Note will increase by ten percent (10%), effective as of the date of the notice.</p>

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