Document:

EXHIBIT 10.3

 

 

NEITHER THIS SECURITY NOR THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE BEEN REGISTERED WITH THE UNITED
STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE OR UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
 THE SECURITIES ARE RESTRICTED AND MAY NOT BE OFFERED, RESOLD, PLEDGED OR TRANSFERRED EXCEPT AS PERMITTED UNDER THE ACT PURSUANT
TO REGISTRATION OR EXEMPTION OR SAFE HARBOR THEREFROM.

 

ISSUE DATE: MARCH 16, 2016

PRINCIPAL AMOUNT: $35,000

INTEREST RATE: 10%

 

EL CAPITAN PRECIOUS METALS, INC.

 

CONVERTIBLE PROMISSORY NOTE DUE MARCH 16, 2017

 

 

FOR VALUE RECEIVED, the
Company promises to pay to RIVER NORTH EQUITY LLC, the registered holder hereof (the "Holder"), the principal sum of
thirty-five thousand and 00/100 Dollars ($35,000) on March 16, 2017 (the “Maturity Date”).  The principal of this
Note is payable in United States dollars, at the address last appearing on the Note Register of the Company as designated in writing
by the Holder. The Company will pay the outstanding principal amount of this Note in cash on the Maturity Date to the registered
holder of this Note.  The forwarding of such wire transfer shall constitute a payment hereunder and shall satisfy and discharge
the liability for principal on this Note to the extent of the sum represented by such check or wire transfer plus any amounts so
deducted. This Note may be prepaid in full or in part at any time, or from time to time, at the sole option of the Company.

 

This is the Commitment
Note issued pursuant to Section 2.1 of that certain Equity Purchase Agreement dated on or around the date hereof by and between
the Company and the Holder (the “Equity Purchase Agreement”).

 

Upon the Registration Statement
(as such term is defined in the Equity Purchase Agreement) being declared effective, ten-thousand and 00/100 Dollars ($10,000)
of the principal balance and accrued interest thereon will be extinguished and deemed to have been repaid.

 

This Note is subject to the following additional
provisions:

 

		1.	The Note is exchangeable for an equal aggregate principal amount of Notes of different authorized
denominations, as requested by the Holder surrendering the same.  No service charge will be made for such registration or
transfer or exchange.

 

		2.	Subject to Section 3 and the other terms and conditions set forth in this Note, at any time after
180 days following the date of the Note, or earlier upon the occurrence of an Event of Default that remains uncured, the Holder
of this Note shall be entitled, any time thereafter to convert all or a portion of the principal amount of this Note into shares
(the “Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”) at
a conversion price for each share of Common Stock equal to sixty percent (60%) of the Current Market Price (the “Conversion
Price”). “Current Market Price” means the lowest closing bid price for the Common Stock as reported by Bloomberg,
LP for the ten (10) trading days ending on the trading day immediately before the relevant Conversion Date (as defined below).
The number of Shares issuable pursuant to a conversion shall equal the principal amount (or portion thereof) of the Note to be
converted, divided by the Conversion Price.

 

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		3.	Conversion shall be effectuated by surrendering the Note to the Company, accompanied by or preceded
by email or other delivery to the Company of the form of conversion notice attached hereto as Exhibit A (a “Conversion
Notice”), executed by the Holder evidencing such Holder's intention to convert a specified portion hereof.  No fractional
shares of Common Stock or scrip representing fractions of shares will be issued on conversion, but the number of shares issuable
shall be rounded to the nearest whole share.  The date on which Conversion Notice is given (the "Conversion Date")
shall be deemed to be the date on which the Holder emails or otherwise delivers the Conversion Notice, duly executed, to the Company.
Certificates representing Common Stock upon conversion will be delivered within three (3) business days from the Conversion Date
(“Delivery Date”).

 

At least
two (2) Trading Days (as such term is defined in that certain Equity Purchase Agreement) prior to delivering a Conversion Notice
to the Transfer Agent, Holder shall provide written notice to the Company of its intention to do so (a “Preliminary Notice”)
that specifies the portion of the outstanding principal amount of the Note to be converted (the “Proposed Conversion Amount”).
Holder shall not deliver a Conversion Notice to the Transfer Agent, and shall not convert any portion of this Note, if prior to
the expiration of such two (2) Trading Day period the Company either (i) prepays the Proposed Conversion Amount, or (ii) delivers
a Put Notice to Holder in the amount of sixty percent (60%) of the Proposed Conversion Amount and agrees to use fifteen percent
(15%) of the proceeds from the sale of the corresponding Put Shares to prepay a portion of the outstanding principal amount of
the Note. Holder may not deliver a Preliminary Notice within twelve (12) Trading Days following any Put Date (as such term is
defined in the Equity Purchase Agreement).

 

The Company
shall pay any payments required under this Section in immediately available funds upon demand as the Holder’s remedy for
such delay.  Furthermore, in addition to any other remedies which may be available to the Holder, in the event that the Company
fails for any reason to effect delivery of the Shares by close of business on the Delivery Date, unless such failure is due to
causes beyond the Company’s reasonable control or that of its Transfer Agent, the Holder will be entitled to revoke the
relevant Conversion Notice by delivering a notice to such effect to the Company, whereupon the Company and the Holder shall each
be restored to their respective positions immediately prior to delivery of such Conversion Notice; provided, however, that an
amount equal to any payments contemplated by this Section which have accrued through the date of such revocation notice shall
remain due and owing to the Converting Holder notwithstanding such revocation.

 

If, by the relevant Delivery Date,
the Company fails, unless such failure is due to causes beyond the Company’s reasonable control or that of its Transfer Agent,
for any reason to deliver the Shares and after such Delivery Date, the Holder of the Note being converted (a “Converting
Holder”) purchases, in an arm’s-length open market transaction, shares of Common Stock (the “Covering Shares”)
in order to make delivery in satisfaction of a sale of Common Stock by the Converting Holder (the “Sold Shares”), which
delivery such Converting Holder anticipated to make using the Shares to be issued upon such conversion (a “Buy-In”),
the Converting Holder shall have the right, to require the Company to pay to the Converting Holder, in addition to and not in lieu
of the amounts due hereunder (but in addition to all other amounts contemplated in other provisions of the Transaction Agreements,
and not in lieu of any such other amounts), the Buy-In Adjustment Amount (as defined below).  The “Buy-In Adjustment
Amount” is the amount equal to the excess, if any, of (x) the Converting Holder's total purchase price (including brokerage
commissions, if any) for the Covering Shares over (y) the net proceeds  (after brokerage commissions, if any) received by
the Converting Holder from the sale of the  Sold Shares.  The Company shall pay the Buy-In Adjustment Amount to the Company
in immediately available funds immediately upon demand by the Converting Holder.  By way of illustration and not in limitation
of the foregoing, if the Converting Holder purchases shares of Common Stock having a total purchase price (including brokerage
commissions) of $11,000 to cover a Buy-In with respect to shares of Common Stock it sold for net proceeds of $10,000, the Buy-In
Adjustment Amount which Company will be required to pay to the Converting Holder will be $1,000.

 

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In lieu of delivering physical certificates
representing the Shares issuable upon conversion, provided the Company’s Transfer Agent is participating in the Depository
Trust Company (“DTC”) Fast Automated Securities Transfer program, upon request of the Holder and its compliance with
the provisions contained in this paragraph, so long as the certificates therefor do not bear a legend and the Holder thereof is
not obligated to return such certificate for the placement of a legend thereon, the Company shall use its best efforts to cause
its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account
of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission system.

 

The Holder of the Note shall be
entitled to exercise its conversion privilege with respect to the Note notwithstanding the commencement of any case under 11 U.S.C.
§101 et seq. (the “Bankruptcy Code”).  In the event the Company is a debtor under the Bankruptcy
Code, the Company hereby waives, to the fullest extent permitted, any rights to relief it may have under 11 U.S.C. §362 in
respect of such holder’s conversion privilege.  The Company hereby waives, to the fullest extent permitted, any rights
to relief it may have under 11 U.S.C. §362 in respect of the conversion of the Note. This Note has been issued subject to
investment representations of the original purchaser hereof and may be transferred or exchanged only in compliance with the Securities
Act of 1933, as amended (the "Act"), and other applicable state and foreign securities laws. In the event of any proposed
transfer of this Note, the Company may require, prior to issuance of a new Note in the name of such other person, that it receive
reasonable transfer documentation including legal opinions that the issuance of the Note in such other name does not and will not
cause a violation of the Act or any applicable state or foreign securities laws. Prior to due presentment for transfer of this
Note, the Company and any agent of the Company may treat the person in whose name this Note is duly registered on the Company's
Note Register as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or
not this Note be overdue, and neither the Company nor any such agent shall be affected by notice to the contrary.

 

		4.	No provision of this Note shall alter or impair the obligation of the Company, which is absolute
and unconditional, to pay the principal of this Note at the time, place, and rate, and in the coin or currency, herein prescribed.
 This Note is a direct obligation of the Company.

 

		5.	The Holder of the Note, by acceptance hereof, agrees that this Note is being acquired for investment
and that such Holder will not offer, sell or otherwise dispose of this Note or the shares of Common Stock issuable upon conversion
thereof except under circumstances which will not result in a violation of the Act or any applicable state Blue Sky or foreign
laws or similar laws relating to the sale of securities.

 

		6.	This Note shall be governed by and construed in accordance with the laws of the State of Illinois.
Each of the parties consents to the jurisdiction of the federal courts whose districts encompass any part of the City of Chicago
or the state courts of the State of Illinois sitting in the City of Chicago in connection with any dispute arising under this Note
and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum non coveniens,
to the bringing of any such proceeding in such jurisdictions. Each of the parties hereby waives the right to a trial by jury in
connection with any dispute arising under this Note.

 

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		7.	The following shall constitute an "Event of Default":

 

	a.	The Company shall default in the payment of principal on this Note and same shall continue for
a period of five (5) days; or

 

	b.	Any of the representations or warranties made by the Company herein, in any certificate or financial
or other written statements heretofore or hereafter furnished by the Company in connection with the execution and delivery of this
Note shall be false or misleading in any material respect at the time made; or

 

	c.	The Company shall fail to perform or observe, in any material respect, any other covenant, term,
provision, condition, agreement or obligation of any Note and such failure shall continue uncured for a period of five (5) days
after written notice from the Holder of such failure; or

 

	d.	Intentionally omitted;

 

	e.	The Company shall (1) make an assignment for the benefit of creditors or commence proceedings for
its dissolution; or (2) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial
part of its property or business; or

 

	f.	A trustee, liquidator or receiver shall be appointed for the Company or for a substantial part
of its property or business without its consent and shall not be discharged within sixty (60) days after such appointment; or

 

	g.	Any governmental agency or any court of competent jurisdiction at the instance of any governmental
agency shall assume custody or control of the whole or any substantial portion of the properties or assets of the Company and shall
not be dismissed within sixty (60) days thereafter; or

 

	h.	Any money judgment, writ or warrant of attachment, or similar process in excess of one hundred
thousand ($100,000) dollars in the aggregate shall be entered or filed against the Company or any of its properties or other assets
and shall remain unpaid, unvacated, unbonded or unstayed for a period of thirty (30) days or in any event later than five (5) days
prior to the date of any proposed sale thereunder; or

 

	i.	Bankruptcy, reorganization, insolvency or liquidation proceedings or other proceedings for relief
under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Company and, if instituted
against the Company, shall not be dismissed within sixty (60) days after such institution or the Company shall by any action or
answer approve of, consent to, or acquiesce in any such proceedings or admit the material allegations of, or default in answering
a petition filed in any such proceeding; or

 

	j.	The Company shall have its Common Stock suspended from trading or delisted such that it is no longer
listed or quoted on any securities exchange or quotation system, in either event for in excess of fifteen consecutive trading days.

 

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	k.	The Company shall fail to file a registration statement with the Securities and Exchange Commission
registering the resale of the Put Shares by the forty-fifth (45th) day following the date of this Note.

 

Then, or at any time thereafter, and
in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall not
be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion, the Holder
may consider all obligations under this Note immediately due and payable within five (5) days of notice, without presentment, demand,
protest or notice of any kinds, all of which are hereby expressly waived, anything herein or in any note or other instruments contained
to the contrary notwithstanding, and the Holder may immediately enforce any and all of the Holder's rights and remedies provided
herein or any other rights or remedies afforded by law.

 

		8.	The Holder may not convert this Note to the extent such conversion would result in the Holder,
together with any affiliate thereof, beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and
the rules promulgated thereunder) in excess of 9.99% of the then issued and outstanding shares of Common Stock held by such Holder
after application of this Section.  Since the Holder will not be obligated to report to the Company the number of shares of
Common Stock it may hold at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of
shares of Common Stock in excess of 9.99% of the then outstanding shares of Common Stock without regard to any other shares which
may be beneficially owned by the Holder or an affiliate thereof, the Holder shall have the authority and obligation to determine
whether the restriction contained in this Section will limit any particular conversion hereunder and to the extent that the Holder
determines that the limitation contained in this Section applies, the determination of which portion of the principal amount of
Note are convertible shall be the responsibility and obligation of the Holder.  If the Holder has delivered a Conversion Notice
for a principal amount of Note that would result in the issuance of in excess of the permitted amount hereunder, without regard
to any other shares that the Holder or its affiliates may beneficially own, the Company shall notify the Holder of this fact and
shall honor the conversion for the maximum principal amount permitted to be converted on such Conversion Date and, at the option
of the Holder, either retain any principal amount tendered for conversion in excess of the permitted amount hereunder for future
conversions or return such excess principal amount to the Holder.  The provisions of this Section may be waived by a Holder
(but only as to itself and not to any other Holder) upon not less than thirty (30) days prior notice to the Company. Other Holders
shall be unaffected by any such waiver.

 

		9.	Nothing contained in this Note shall be construed as conferring upon the Holder the right to vote
or to receive dividends or to consent or receive notice as a shareholder in respect of any meeting of shareholders or any rights
whatsoever as a shareholder of the Company, unless and to the extent converted in accordance with the terms hereof.

 

Signature page follows.

 

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

 

Dated: March 16, 2016

 

 

	EL CAPITAN PRECIOUS METALS, INC.	 
	 	 	 
	 	 	 
	By:	/s/ Charles C. Mottley	 

 

 

ATTESTOR

	 	 	 
	 	 	 
	By:	/s/ Steve Antol	 

 

 

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EXHIBIT A – CONVERSION NOTICE

 

The
undersigned hereby elects to convert principal under the Note due March 16, 2017 of EL CAPITAN PRECIOUS METALS, INC., a Nevada
corporation (the “Company”), into shares of common stock (the “Common Stock”), of the Company
according to the conditions hereof, as of the date written below.  If shares of Common Stock are to be issued in the name
of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering
herewith such certificates and opinions as reasonably requested by the Company to ensure that the issuance of shares, and any transfer
thereof, is and has been made in compliance with the United Stated federal and state securities laws.  No fee will be charged
to the holder for any conversion, except for such transfer taxes, if any.

 

By the delivery of this Conversion Notice the
undersigned represents and warrants to the Company that its ownership of the Common Stock does not exceed the amounts specified
under Section 8 of this Note, as determined in accordance with Section 13(d) of the Exchange Act.

 

 

	Conversion Calculations:	______________________________________________________
	 	 
	Date to Effect Conversion:	______________________________________________________
	 	 
	Principal Amount of Debenture to be converted:	
         

        ______________________________________________________

	 	 
	Signature:	______________________________________________________
	 	 
	Name:	______________________________________________________
	 	 
	Shares to be issued to:	______________________________________________________
	 	 
	EIN:	______________________________________________________
	 	 
	Address for Delivery of Common Stock Certificate(s):	
         

        ______________________________________________________

	 	 
	OR	 
	 	 
	DWAC Instructions:	______________________________________________________
	 	 
	Broker Number:	______________________________________________________
	 	 
	Account Number:	______________________________________________________EXHIBIT 10.4

 

 

SECURITIES PURCHASE AGREEMENT 

 

This SECURITIES PURCHASE
AGREEMENT (the “Agreement”), dated as of March 16, 2016, by and between El Capitan Precious Metals, Inc.,
a Nevada corporation, with headquarters located at 8390 Via de Ventura, Suite F-110 #215, Scottsdale, AZ 85258, (the “Company”),
and RIVER NORTH EQUITY, LLC, an Illinois limited liability company, with its address at 360 West Hubbard Street, Unit 2801,
Chicago, IL 60654 (the “Buyer”).

 

WHEREAS:

 

A.    
The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “1933 Act”);

 

B.     
Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement
a 10% convertible not of the Company, in the forms attached hereto as Exhibit A principal amount of $90,000 (together with any
note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof,
the “Note”), convertible into shares of common stock, of the Company (the “Common Stock”), upon the terms
and subject to the limitations and conditions set forth in such Note. The Note shall contain a 10% original issue discount (“OID”).

C.   
The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is
set forth immediately below its name on the signature pages hereto; and

 

NOW THEREFORE, the
Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.    
Purchase and Sale of Note.

 

a.    
Purchase of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer
agrees to purchase from the Company such principal amount of Note as is set forth immediately below the Buyer’s name on the
signature pages hereto.

 

b.    
Form of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note
to be issued and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately
available funds to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note
in the principal amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages
hereto, and (ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery
of such Purchase Price.

 

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c.    
Closing Date. The date and time of the issuance and sale of the Note pursuant to this Agreement (the “Closing
Date”) shall be on or about February 25, 2016, or such other mutually agreed upon time. The closing of the transaction contemplated
by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties.
Subsequent Closings shall occur when the Buyer Note is repaid.

 

2.    
Buyer’s Representations and Warranties. The Buyer represents and warrants to the Company that:

 

a.    
Investment Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable
upon conversion of or otherwise pursuant to the Note, such shares of Common Stock being collectively referred to herein as the
“Conversion Shares” and, collectively with the Note, the “Securities”) for its own account and not with
a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration
under the 1933 Act; provided, however, that by making the representations herein, the Buyer does not agree to hold
any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in
accordance with or pursuant to a registration statement or an exemption under the 1933 Act.

 

b.    
Accredited Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a)
of Regulation D (an “Accredited Investor”). Any of Buyer’s transferees, assignees, or purchasers must be “accredited
investors” in order to qualify as prospective transferees, permitted assignees in the case of Buyer’s or Holder’s
transfer, assignment or sale of the Note.

 

c.    
Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon
specific exemptions from the registration requirements of United States federal and state securities laws and that the Company
is relying upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and
the eligibility of the Buyer to acquire the Securities.

 

d.    
Information. The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue
to be, furnished with all materials relating to the business, finances and operations of the Company and materials relating to
the offer and sale of the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any,
have been, and for so long as the Note remain outstanding will continue to be, afforded the opportunity to ask questions of the
Company. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will
not disclose such information unless such information is disclosed to the public prior to or promptly following such disclosure
to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives
shall modify, amend or affect Buyer’s right to rely on the Company’s representations and warranties contained in Section
3 below. The Buyer understands that its investment in the Securities involves a significant degree of risk. The Buyer is not aware
of any facts that may constitute a breach of any of the Company's representations and warranties made herein.

 

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e.    
Governmental Review. The Buyer understands that no United States federal or state agency or any other government
or governmental agency has passed upon or made any recommendation or endorsement of the Securities.

 

f.     Transfer or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not
being registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the
Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) in the case of subparagraphs (c),
(d) and (e) below, the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be
in form, substance and scope customary for opinions of counsel in comparable transactions to the effect that the Securities to
be sold or transferred may be sold, or transferred pursuant to an exemption from such registration, including the removal of any
restrictive legend which opinion shall be accepted by the Company, (c) the Securities are sold or transferred to an “affiliate”
(as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”) of the Buyer who agrees to
sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited Investor, (d) the
Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the 1933 Act (or a
successor rule) (“Regulation S”); (ii) any sale of such Securities made in reliance on Rule 144 may be made only in
accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances
in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in
the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder;
and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any
state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the
foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a bona
fide margin account or other lending arrangement.

 

g.    
Legends. The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under
the 1933 Act will be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular
date that can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form
(and a stop-transfer order may be placed against transfer of the certificates for such Securities):

 

“NEITHER THE ISSUANCE AND SALE
OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE 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.”

 

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The legend set forth above
shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it is stamped,
if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an effective
registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation S without any restriction
as to the number of securities as of a particular date that can then be immediately sold, and (b) such holder provides the Company
with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect
that a public sale or transfer of such Security may be made without registration under the 1933 Act, and that legend removal is
appropriate, which opinion shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell
all Securities, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable
prospectus delivery requirements, if any. In the event that the Company does not accept the opinion of counsel provided by the
Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S,
within 2 business days, it will be considered an Event of Default under the Note.

 

h.    
Authorization; Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed
and delivered on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in
accordance with its terms.

 

i.     
Residency. The Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the
signature pages hereto.

 

3.    
Representations and Warranties of the Company. The Company represents and warrants to the Buyer that:

 

a.    
Organization and Qualification. The Company and each of its subsidiaries, if any, is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority
(corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased,
used, operated and conducted.

 

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b.    
Authorization; Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform
this Agreement, the Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance
with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation
by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance
and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by
the Company’s Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders
is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized representative, and such
authorized representative is the true and official representative with authority to sign this Agreement and the other documents
executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery
by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its terms.

 

c.    
Issuance of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the
Note in accordance with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens,
claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights
of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

d.    
Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common
Stock upon the issuance of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation
to issue Conversion Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and unconditional
regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

e.    
No Conflicts. The execution, delivery and performance of this Agreement, the Note by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation
for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate
of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default
(or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company
or any of its subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or
its securities are subject) applicable to the Company or any of its subsidiaries or by which any property or asset of the Company
or any of its subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations,
cancellations and violations as would not, individually or in the aggregate, have a material adverse effect). All consents, authorizations,
orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained
or effected on or prior to the date hereof. The Company is not in violation of the listing requirements of the OTCQB marketplace
(the “OTCQB”) and does not reasonably anticipate that the Common Stock will be delisted by the OTCQB in the foreseeable
future, nor are the Company’s securities “chilled” by DTC. The Company and its subsidiaries are unaware of any
facts or circumstances which might give rise to any of the foregoing.

 

    	5

    	 

    

 

f.     
Absence of Litigation. Except as disclosed in the Company’s Periodic Report filings with the SEC, there is
no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory
organization or body pending or, to the knowledge of the Company or any of its subsidiaries, threatened against or affecting the
Company or any of its subsidiaries, or their officers or directors in their capacity as such, that could have a material adverse
effect. Schedule 3(f) contains a complete list and summary description of any pending or, to the knowledge of the Company, threatened
proceeding against or affecting the Company or any of its subsidiaries, without regard to whether it would have a material adverse
effect. The Company and its subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

g.    
Acknowledgment Regarding Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer
is acting solely in the capacity of arm’s length purchasers with respect to this Agreement and the transactions contemplated
hereby. The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer
or any of its respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is
not advice or a recommendation and is merely incidental to the Buyer’ purchase of the Securities. The Company further represents
to the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation
of the Company and its representatives.

 

h.    
No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf,
has directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances
that would require registration under the 1933 Act of the issuance of the Securities to the Buyer.

 

i.     
Title to Property. The Company and its subsidiaries have good and marketable title in fee simple to all real property
and good and marketable title to all personal property owned by them which is material to the business of the Company and its subsidiaries,
in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(i) or such as would
not have a material adverse effect. Any real property and facilities held under lease by the Company and its subsidiaries are held
by them under valid, subsisting and enforceable leases with such exceptions as would not have a material adverse effect.

 

    	6

    	 

    

 

j.     
Bad Actor. No officer or director of the Company would be disqualified under Rule 506(d) of the Securities Act as
amended on the basis of being a "bad actor" as that term is established in the September 19, 2013 Small Entity Compliance
Guide published by the Securities and Exchange Commission.

 

k.    
Breach of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties
set forth in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be
considered an Event of default under the Note.

 

4.    
COVENANTS.

 

a.      Expenses. At the Closing, the Company shall reimburse Buyer for expenses incurred by them in connection with the
negotiation, preparation, execution, delivery and performance of this Agreement and the other agreements to be executed in connection
herewith (“Documents”), including, without limitation, reasonable attorneys’ and consultants’ fees and
expenses, transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications of the Documents
or any consents or waivers of provisions in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs
of restructuring the transactions contemplated by the Documents. When possible, the Company must pay these fees directly, otherwise
the Company must make immediate payment for reimbursement to the Buyer for all fees and expenses immediately upon written notice
by the Buyer or the submission of an invoice by the Buyer.

 

b.    
Listing. The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange
or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance)
and, so long as the Buyer owns any of the Note Securities, shall maintain, so long as any other shares of Common Stock shall be
so listed, such listing of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain
and, so long as the Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the OTCQB or any
equivalent replacement market, the Nasdaq stock market (“Nasdaq”), the New York Stock Exchange (“NYSE”),
or the American Stock Exchange (“AMEX”) and will comply in all respects with the Company’s reporting, filing
and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”) and such exchanges,
as applicable. The Company shall promptly provide to the Buyer copies of any notices it receives from the OTCQB and any other markets
on which the Common Stock is then listed regarding the continued eligibility of the Common Stock for listing on such markets.

 

c.    
Corporate Existence. So long as the Buyer beneficially owns the Note, the Company shall maintain its corporate existence
and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or
sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i)
assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith
and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTCQB, Nasdaq, NYSE or AMEX.

 

    	7

    	 

    

 

d.     
No Integration. The Company shall not make any offers or sales of any security (other than the Securities) under
circumstances that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the
offering of the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder
approval provision applicable to the Company or its securities.

 

e.    
Breach of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to
any other remedies available to the Buyer pursuant to this Agreement, it will be considered an event of default under the Note.

 

5.    
Governing Law; Miscellaneous.

 

a.    
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois
without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions
contemplated by this Agreement shall be brought only in the state courts of Illinois or in the federal courts located in the state
and county of Illinois. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action
instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens.
The Company and Buyer waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable
attorney's fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith
is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision
which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of
any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit,
action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

b.    
Counterparts; Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts
have been signed by each party and delivered to the other party. This Agreement, once executed by a party, may be delivered to
the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this
Agreement.

 

c.    
Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect
the interpretation of, this Agreement.

 

    	8

    	 

    

 

d.    
Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall
be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under
any law shall not affect the validity or enforceability of any other provision hereof.

 

e.    
Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No
provision of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest
of the Buyer.

 

f.     
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
(iv) via electronic mail or (v) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other
address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted
to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated
by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal
business hours where such notice is to be received) or delivery via electronic mail, or the first business day following such delivery
(if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second
business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

 

If to the Company,
to:

 

El Capitan
Precious Metals, Inc.

8390 Via de Ventura, Suite F-110,
#215,

Scottsdale, AZ 85258

Attn: Charles
C. Mottley, CEO

 

If to the Buyer:

 

River North Equity, LLC

360 West Hubbard Street,
Unit 2801

Chicago, IL 60654

Attn: Edward
M. Liceaga

 

Each party shall provide
notice to the other party of any change in address.

 

    	9

    	 

    

 

g.    
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior
written consent of the other. Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any “qualified
person”, any “permitted assigns”, or “prospective transferee” that acquires or purchases Note Securities
in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act,
without the consent of the Company with Buyer’s Opinion of Counsel. A qualified person is an “accredited investor”
transferee, assignee, or purchaser of the Note who succeeds to the Holder’s right, title and interest to all or a portion
of the Note accompanied with an Opinion of Counsel as provided for in Section 2(f).

 

h.    
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

i.     
Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement
shall survive the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The
Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage
arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and
covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses
as they are incurred.

 

j.     
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and
things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may
reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

k.    
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rules of strict construction will be applied against any party.

 

l.     
Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to
the Buyer by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that
the remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach
or threatened breach by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other
available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining,
preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity
of showing economic loss and without any bond or other security being required.

 

    	10

    	 

    

 

IN WITNESS WHEREOF, the undersigned
Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

	EL CAPITAN PRECIOUS METALS, INC.	 
	 	 	 
	 	 	 
	By:	/s/ Charles C. Mottley	 
	 	Name: Charles
    C. Mottley	 
	 	Title: CEO	 

 

 

	RIVER NORTH EQUITY LLC	 
	 	 	 
	 	 	 
	By:	/s/ Edward M. Liceaga	 
	 	Name: Edward M. Liceaga	 
	 	Title: President	 

 

 

 

 

AGGREGATE SUBSCRIPTION AMOUNT:

 

Aggregate Principal Amount of Note:                                                             $90,000

 

Aggregate Purchase Price:

 

$90,000, less $10% OID, less $8% in third party
due diligence fees to Daniel Covill

 

    	11

    	 

    

 

EXHIBIT A

Convertible Promissory Note

 

 

 (See Exhibit 10.5 to this Form 8-K)

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