Document:

Exhibit 4.23

 

 

NEITHER THE ISSUANCE AND SALE OF THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS 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.

  US $27,825.00

BRAZIL MINERALS, INC.

10% CONVERTIBLE REDEEMABLE NOTE

DUE JUNE 4, 2016

FOR VALUE RECEIVED, Brazil Minerals, Inc. (the “Company”) promises to pay to the order of LG CAPITAL FUNDING, LLC and its authorized successors and permitted assigns ("Holder"), the aggregate principal face amount of Twenty Seven Thousand Eight Hundred Twenty Five Dollars exactly (U.S. $27,825.00) on June 4, 2016 ("Maturity Date") and to pay interest on the principal amount outstanding hereunder at the rate of 10% per annum commencing on June 4, 2015. This Note contains a 5% original issue discount such that the purchase price of this Note is $26,500.00. The interest will be paid to the Holder in whose name this Note is registered on the records of the Company regarding registration and transfers of this Note.  The principal of, and interest on, this Note are payable at 1218 Union Street, Suite #2, Brooklyn, NY 11225, initially, and if changed, last appearing on the records of the Company as designated in writing by the Holder hereof from time to time.  The Company will pay interest payment and the outstanding principal due upon this Note before or on the Maturity Date, less any amounts required by law to be deducted or withheld, to the Holder of this Note by check or wire transfer addressed to such Holder at the last address appearing on the records of the Company.  The forwarding of such check or wire transfer shall constitute a payment of outstanding principal 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.  Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein.

 

 

 

Exhibit 4.23 -- Page 1

This Note is subject to the following additional provisions:

1.            This 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, except that Holder shall pay any tax or other governmental charges payable in connection therewith.

2.            The Company shall be entitled to withhold from all payments any amounts required to be withheld under applicable laws.

3.            This Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended ("Act"), and applicable state securities laws.  Any attempted transfer to a non-qualifying party shall be treated by the Company as void.  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 records as the owner hereof for all other purposes, whether or not this Note shall be overdue, and neither the Company nor any such agent shall be affected or bound by notice to the contrary.  Any Holder of this Note electing to exercise the right of conversion set forth in Section 4(a) hereof, in addition to the requirements set forth in Section 4(a), and any prospective transferee of this Note, also is required to give the Company written confirmation that this Note is being converted ("Notice of Conversion") in the form annexed hereto as Exhibit A. The date of receipt (including receipt by telecopy) of such Notice of Conversion shall be the Conversion Date.

4.            (a)            The Holder of this Note is entitled, at its option, at any time and after full cash payment for the shares convertible hereunder, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock (the "Common Stock"), at a price ("Conversion Price") for each share of Common Stock equal to 55% of the average of the 2 lowest daily closing prices of the Common Stock as reported on the otcmarkets.com OTCQB quotation service on which the Company’s shares of Common Stock are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price). If the shares have not been delivered within 3 business days, the Notice of Conversion may be rescinded. Such conversion shall be effectuated by the Company delivering the shares of Common Stock to the Holder within 3 business days of receipt by the Company of the Notice of Conversion. Accrued, but unpaid, interest on this Note shall also be subject to conversion.  No fractional shares or scrip representing fractions of shares will be issued on conversion of this Note, but the number of shares issuable shall be rounded to the nearest whole share. To the extent the Conversion Price of the Company’s Common Stock closes below the par value per share, the Company will take all steps necessary to solicit the consent of the stockholders to reduce the par value to the lowest value possible under law.  The Company agrees to honor all conversions submitted pending this increase. In the event the Company experiences a DTC “Chill” on its shares, the conversion price shall be decreased to 45% instead of 55% while that “Chill” is in effect. In no event shall the Holder be allowed to effect a conversion if such conversion, along with all other shares of Company Common Stock beneficially owned by the Holder and its affiliates would exceed 9.9% of the outstanding shares of the Common Stock of the Company.

 

 

Exhibit 4.23 -- Page 2

  

(b)            Interest on any unpaid principal balance of this Note shall be paid at the rate of 10% per annum.  Interest shall be paid by the Company in Common Stock ("Interest Shares").  Holder may, at any time, send in a Notice of Conversion to the Company for Interest Shares based on the formula provided in Section 4(a) above.  The dollar amount converted into Interest Shares shall be all or a portion of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice.

(c)            This Note may be prepaid (in whole or in part) with the following penalties: (i) if the note is prepaid within 90 days of the issuance date, then at 130% of the face amount plus any accrued interest; (ii) if the note is prepaid within 91 days after the issuance date but less than 180 days after the issuance date, then at 140% of the face amount plus any accrued interest. This Note may not be prepaid after the 180th day. Such redemption must be closed and funded within 3 business days of giving notice of redemption of the right to redeem or the notice of redemption shall be null and void.

(d)            Upon (i) a transfer of all or substantially all of the assets of the Company to any person in a single transaction or series of related transactions, (ii) a reclassification, capital reorganization or other change or exchange of outstanding shares of the Common Stock, other than a forward or reverse stock split or stock dividend or issuance of equity securities, including preferred stock and warrants or options or convertible securities, or (iii) any consolidation or merger of the Company with or into another person or entity in which the Company is not the surviving entity (other than a merger which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of Common Stock) (each of items (i), (ii) and (iii) being referred to as a "Sale Event"), then, in each case, the Company shall, upon request of the Holder, redeem this Note in cash for 150% of the principal amount, plus accrued but unpaid interest through the date of redemption, or at the election of the Holder, such Holder may convert the unpaid principal amount of this Note (together with the amount of accrued but unpaid interest) into shares of Common Stock immediately prior to such Sale Event at the Conversion Price.

(e)            In case of any Sale Event (not to include a sale of all or substantially all of the Company’s assets) in connection with which this Note is not redeemed or converted, the Company shall cause effective provision to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert this Note into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification, capital reorganization or other change, consolidation or merger by a holder of the number of shares of Common Stock that could have been purchased upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to such Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If the consideration received by the holders of Common Stock is other than cash, the value shall be as determined by the Board of Directors of the Company or successor person or entity acting in good faith.

 

 

Exhibit 4.23 -- Page 3

 

5.    No provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.

6.    The Company hereby expressly waives demand and presentment for payment, notice of non-payment, protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, and diligence in taking any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing and to be owing hereto.

7.    The Company agrees to pay all reasonable costs and expenses, including reasonable attorneys' fees and expenses, which may be incurred by the Holder in collecting any amount due under this Note.

8.    If one or more of the following described "Events of Default" shall occur:

(a)  The Company shall default in the payment of principal or interest on this Note or any other note issued to the Holder by the Company; or

(b)  Any of the representations or warranties made by the Company herein or in any certificate or financial or other written statements heretofore or hereafter furnished by or on behalf of the Company in connection with the execution and delivery of this Note, or the Securities Purchase Agreement under which this Note was issued shall be false or misleading in any respect; or

(c)  The Company shall fail to perform or observe, in any respect, any covenant, term, provision, condition, agreement or obligation of the Company under this Note or any other note issued to the Holder; or

(d)  The Company shall (1) become insolvent; (2) admit in writing its inability to pay its debts generally as they mature; (3) make an assignment for the benefit of creditors or commence proceedings for its dissolution; (4) 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; (5) file a petition for  bankruptcy relief, consent to the filing of such petition or have filed against it an involuntary petition for bankruptcy relief, all under federal or state laws as applicable; or

(e)  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

(f)  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; or

 

 

 

Exhibit 4.23 -- Page 4

  

(g)    One or more money judgments, writs or warrants of attachment, or similar process, in excess of fifty thousand dollars ($50,000) 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 fifteen (15) days or in any event later than five (5) days prior to the date of any proposed sale thereunder; or

(h)    The Company shall have defaulted on or breached any term of any other note of similar debt instrument into which the Company has entered and failed to cure such default within the appropriate grace period; or

(i)     The Company shall have its Common Stock delisted from a market (including the OTCQB marketplace) or, if the Common Stock trades on an Exchange, then trading in the Common Stock shall be suspended for more than 10 consecutive days;

(j)     Intentionally Deleted

(k)    The Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein within 3 business days of its receipt of a Notice of Conversion; or

(l)     The Company shall not replenish the reserve set forth in Section 12, within 3 business days of the request of the Holder; or

(m)   The Company shall not be “current” in its filings with the Securities and Exchange Commission; or

(n)    The Company shall lose the “bid” price for its stock and a market (including the OTCBB marketplace or other exchange)

Then, or at any time thereafter, unless cured within 5 days, 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 this Note immediately due and payable, without presentment, demand, protest or (further) notice of any kind (other than notice of acceleration), 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, and without expiration of any period of grace, enforce any and all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by law.  Upon an Event of Default, interest shall accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by law.  In the event of a breach of Section 8(k) the penalty shall be $250 per day the shares are not issued beginning on the 4th day after the conversion notice was delivered to the Company.  This penalty shall increase to $500 per day beginning on the 10th day.  The penalty for a breach of Section 8(n) shall be an increase of the outstanding principal amounts by 20%.  In case of a breach of Section 8(i), the outstanding principal due under this Note shall increase by 50%. Further, if a breach of Section 8(m) occurs or is continuing after the 6 month anniversary of the Note, then the Holder shall be entitled to use the lowest closing bid price during the delinquency period as a base price for the conversion. For example, if the lowest closing bid price during the delinquency period is $0.01 per share and the conversion discount is 50% the Holder may elect to convert future conversions at $0.005 per share. If this Note is not paid at maturity, the outstanding principal due under this Note shall increase by 10%.

 

Exhibit 4.23 -- Page 5

 

If the Holder shall commence an action or proceeding to enforce any provisions of this Note, including, without limitation, engaging an attorney, then if the Holder prevails in such action, the Holder shall be reimbursed by the Company for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

Make-Whole for Failure to Deliver Loss.  At the Holder’s election, if the Company fails for any reason to deliver to the Holder the conversion shares by the by the 3rd business day following the delivery of a Notice of Conversion to the Company and if the Holder incurs a Failure to Deliver Loss, then at any time the Holder may provide the Company written notice indicating the amounts payable to the Holder in respect of the Failure to Deliver Loss and the Company must make the Holder whole as follows:

Failure to Deliver Loss = [(High trade price at any time on or after the day of exercise) x (Number of conversion shares)]

The Company must pay the Failure to Deliver Loss by cash payment, and any such cash payment must be made by the third business day from the time of the Holder’s written notice to the Company.

9.            In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.

10.            Neither this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Holder.

11.            The Company represents that it is not a “shell” issuer and that if it previously has been a “shell” issuer that at least 12 months have passed since the Company has reported “Form 10 type information” indicating it is no longer a “shell issuer.”  Further. The Company will instruct its counsel to either (i) write a 144 opinion to allow for salability of the conversion shares or (ii) accept such opinion from Holder’s counsel provided that the Company is current in its SEC filings and the Holder represents that it will sell all of the conversion shares before the due date for the Company’s next 10-Q or 10-K.

12.            The Company shall issue irrevocable transfer agent instructions reserving 220,000,000 shares of its Common Stock for conversions under this Note and a Note of $71,660 dated November 7, 2015 (the “Share Reserve”). Upon full conversion of this Note, any shares remaining in the Share Reserve shall be cancelled. The Company shall pay all costs associated with issuing and delivering the shares. If such amounts are to be paid by the Holder, it may deduct such amounts from the Conversion Price. Conversion Notices may be sent to the Company or its transfer agent via electric mail. The Company should at all times reserve a minimum of four times the amount of shares required if the Note would be fully converted.  The Holder may reasonably request increases from time to time to reserve such amounts.

 

 

 

Exhibit 4.23 -- Page 6

  

13.            The Company will give the Holder direct notice of any corporate actions, including but not limited to name changes, stock splits, recapitalizations etc.  This notice shall be given to the Holder as soon as possible under law.

14.            This Note shall be governed by and construed in accordance with the laws of New York applicable to contracts made and wholly to be performed within the State of New York and shall be binding upon the successors and assigns of each party hereto.  The Holder and the Company hereby mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York.  This Agreement may be executed in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be effective as an original.

Exhibit 4.23 -- Page 7

 

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

Dated: June 4, 2015

 

 

	
 

	

BRAZIL MINERALS, INC.

 

 

/s/Marc Fogassa

 

By: Marc Fogassa

 

Title:  Chief Executive Officer

	
 

	
 

Exhibit 4.23 -- Page 8

EXHIBIT A

NOTICE OF CONVERSION

 (To be Executed by the Registered Holder in order to Convert the Note)

The undersigned hereby irrevocably elects to convert $___________ of the above Note into _________ Shares of Common Stock of Brazil Minerals, Inc.  (“Shares”) according to the conditions set forth in such Note, as of the date written below.

If Shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer and other taxes and charges payable with respect thereto.

Date of Conversion:  __________________________________________________________  

Applicable Conversion Price: ____________________________________________________  

Signature: __________________________________________________________________

[Print Name of Holder and Title of Signer]

Address: ___________________________________________________________________                                                                                                                                              

SSN or EIN: __________________________________

Shares are to be registered in the following name: ______________________________________

Name: ______________________________________________________________________

Address: ____________________________________________________________________

Tel: __________________________

Fax: __________________________  

SSN or EIN: _____________________

  

Shares are to be sent or delivered to the following account:

Account Name: _______________________________________________________________                   

Address:  _______________________________________________________________________________________________________________________

  

 

 

 

 

Exhibit 4.23 -- Page 9Exhibit 4.24

 

CONVERTIBLE PROMISSORY NOTE

THIS CONVERTIBLE PROMISSORY NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE (COLLECTIVELY, THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE, AND ARE BEING OFFERED AND SOLD PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR SUCH OTHER LAWS.

BRAZIL MINERALS, INC.

CONVERTIBLE PROMISSORY NOTE

FOR VALUE RECEIVED, and upon and subject to the terms and conditions set forth herein, Brazil Minerals, Inc., a Nevada corporation (the “Company”), hereby promises to pay to the order of Investor (together with his permitted successors and assigns, the “Holder”), the Principal Sum and the Interest on the Maturity Date, as provided herein.

1.     Investor: Carl Suter

2.     Principal Sum: $50,000

 

3.     Interest.  From and after the date hereof, all outstanding principal of this Note will bear simple interest at the rate of ten percent (10%) per annum.

4.     Maturity Date.  This Note will mature, and all principal and accrued interest shall be due and payable in full, on December 31, 2016 (the “Maturity Date”), subject to the automatic conversion of all of the outstanding principal and accrued interest into common stock of the Company on the Maturity Date as hereinafter provided.

5.     Prepayment.  The Company may prepay any portion or all of this Note prior to the Maturity Date via delivery by express courier of a check or checks in the amount of the prepayment (each a “Check”) from the Company to Holder. For purposes of delivery of a Check, the address to be used for the Holder is the address listed in Section 12. The Company shall give the Holder five days’ prior notice of a prepayment, during which time the Holder shall continue to have the right to convert any portion or all of this Note to common stock of the Company.  If the Holder and/or its assignors have held the Note for six months or more, the Company shall cause its transfer agent to issue unlegended shares at the designated Holder’s broker-dealer account via DWAC transfer and in connection therewith the Company shall provide to the transfer agent a legal opinion in a form satisfactory to the Company’s transfer agent to allow such DWAC transfer.

 

Exhibit 4.24 -- Page 1

 

6.           Transfer.  Holder may transfer this Note in compliance with applicable U.S. federal and state and/or foreign securities laws.

7.            Events of Default.  An “Event of Default” will occur if:

(a)            The Company fails to pay (a) any principal of this Note when such amount becomes due and payable in accordance with the terms thereof and such payment is not made within fifteen business days of when it is due, or (b) any interest on the Note or any other payment of money required to be made to the Holder pursuant to this Note and such payment is not made within fifteen business days of when it is due and the Company receives notice thereof from the Holder; or

(b)            The Company commences any case, proceeding or other action under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding‐up, liquidation, dissolution, composition or other relief with respect to it or its debts, or seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or any substantial part of its assets.

8.           Conversion by Holder.

(a)            At any time until the Maturity Date, the Holder may elect to convert all or a portion of the amount required to be paid for principal and accrued interest of this Note (“Principal and Interest”) into that number of shares of Common Stock of the Company equal to the Principal and Interest divided by the conversion price (“Conversion Price”). The Conversion Price shall be a 40% discount to the average of the lowest 5 closing prices of the Company’s common stock in the 20 calendar day period ended on the day before a Notice of Conversion is given, except that the Conversion Price shall not be higher than $0.03 (“Ceiling”) nor lower than $0.000033 (“Floor”). The Ceiling and Floor are adjusted for stock splits or dividends, if any. Each Holder will inform the Company of his intent to convert by delivering to the Company a Notice of Conversion, the form of which is attached hereto as Annex A (a “Notice of Conversion”).

(b)            If the Holder delivers a Notice of Conversion to the Company, the Company may not thereafter elect to pay to the Holder the amount of this Note set forth in the Conversion Notice to be converted without Holder’s written consent. If the Holder has held the Note for six months, the Company shall assist the Holder, upon receipt of a Notice of Conversion, in receiving unlegended shares at the designated Holder’s broker-dealer account via DWAC transfer from Company’s transfer agent. Among other items, the Company shall provide to the Holder a legal opinion in a form satisfactory to the Company’s transfer agent to allow such DWAC transfer.

 

Exhibit 4.24 -- Page 2

 

(c)            All conversions hereunder shall be applied first to outstanding principal amount of this Note and then to accrued interest. From and after the Conversion Date, assuming rightful delivery of the Notice of Conversion to the Company, the portion of this Note converted shall represent and be enforceable only as to the right to receive the shares of Common Stock issuable upon such conversion.  Promptly after receipt of a Notice of Conversion, the Company shall issue and deliver the Holder, one or more certificates representing such shares of Common Stock issued and registered as set forth in the Notice of Conversion.  Thereupon, the Company shall have no further obligation with respect to the amount of this Note converted.  In lieu of issuing a fraction of a share of Common Stock upon the conversion of this Note, the Company shall pay the Holder of this Note for any fraction of a share of Common Stock otherwise issuable upon the conversion of this Note, cash equal to the same fraction of the then current per share Conversion Price.

(d)            By its acceptance of this Note, the Holder agrees that any shares of the Company’s Common Stock issued to the Holder upon conversion of all or a portion of the principal of this Note or accrued interest thereon may not be sold or transferred by the Holder until the later of January 1, 2016.

9.     Automatic Conversion on Maturity Date.  All outstanding principal and accrued interest shall, without any action being required of the Holder, automatically convert into common stock of the Company at the then applicable Conversion Price. Promptly after the Maturity Date, the Company shall issue and deliver the Holder, one or more certificates representing such shares of Common Stock issued and registered in the name of the Holder.  Thereupon, the Company shall have no further obligation with respect to the amount of this Note converted.  In lieu of issuing a fraction of a share of Common Stock upon the conversion of this Note, the Company shall pay the Holder of this Note for any fraction of a share of Common Stock otherwise issuable upon the conversion of this Note, cash equal to the same fraction of the then current per share Conversion Price. The Company shall assist the Holder in receiving unlegended shares at the designated Holder’s broker-dealer account via DWAC transfer from Company’s transfer agent. Among other items, the Company shall provide to the Holder a legal opinion in a form satisfactory to the Company’s transfer agent to allow such DWAC transfer.

10.    Use of Proceeds. The Company shall use the proceeds of the Holder’s payment for this Note for working capital and for payment of operational debts.

11.    Remedies.  At such time that an Event of Default has occurred and is continuing, then Holder, by written notice to the Company may elect to declare all amounts hereunder immediately due and payable in shares of the Company at a 40 % discount to the lowest closing price for the Company’s common stock in the preceding 20 day calendar period with no holding period.

12.    Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder will be in verbal followed by email or overnight courier letter and will be deemed given and effective on the earliest of (a) the date of transmission if such notice or communication is delivered by e-mail prior to 5:00 p.m. Pacific Time on a Business Day, (b) the 2nd Business Day after the date of mailing if sent by U.S. nationally recognized overnight courier service or (c) upon actual receipt by the party to whom such notice is required to be given. The address and e-mail address for such notices and communications are as follows or as otherwise notified by any party in a writing to the others in accordance herewith from time to time. For purposes of this Note, the term “Business Day” means a day on which banks are open for business in the state of California.

 

 

Exhibit 4.24 -- Page 3

If to the Company:

Brazil Minerals, Inc.

155 North Lake Avenue, Suite 800

Pasadena, California 91101

Email: mf@brazil-minerals.com, with copy to jay.weil@brazil-minerals.com

If to Holder:

Carl Suter

[address]

13.           Choice of Law and Dispute Resolution. This Note shall be governed and construed in accordance with California law. The Holder and the Company agree to utilize mediation and arbitration at a mutually agreeable setting in California to resolve any possible disputes between them.

SIGNED, SEALED AND DELIVERED as of the date first above written.

BRAZIL MINERALS, INC.

By:            /s/Marc Fogassa

Name: Marc Fogassa

Title:   Chief Executive Officer

INVESTOR

By:  /s/ Carl Suter

Name: Carl Suter

Exhibit 4.24 -- Page 4

ANNEX A: NOTICE OF CONVERSION

The undersigned, the Holder of the Note issued by Brazil Minerals, Inc., hereby elects to convert the below stated amount of this Note into shares of Common Stock of Brazil Minerals, Inc. effective as of the date the Company receives this Notice.

Please send a certificate for the appropriate number of shares of Common Stock and a balance Note (if applicable) to the following address:

 

_________________________________________________

 

_________________________________________________

 

_________________________________________________

 

 

Amount of Note Being Converted:  $ ________________________                                                                      

Register and issue certificates for shares of Common Stock in the following Name at the Address set forth above or, if different, as set forth below:

Name: ____________________________________________

 

Address: __________________________________________

                                                                                                                

 _________________________________________________

 

_________________________________________________

                                                                                                                

Social Security or Tax Identification Number: __________________________________  

Print Name of Note Holder:  _________________________________________

 

______________________________________________________________

Signature of Note Holder

Date:___________________________________

PLEASE SEND THIS BY U.S. MAIL OR OVERNIGHT DELIVERY SERVICE TO THE COMPANY.  THE EFFECTIVE DATE FOR CONVERSION SHALL BE THE DATE ON WHICH THE COMPANY RECEIVES THIS NOTICE OF CONVERSION.

Exhibit 4.24 -- Page 5

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