Document:

mine_ex1042.htm

EXHIBIT 10.42

 

CONVERTIBLE PROMISSORY NOTE

 

 

	U.S. $320,300.52 	 Dated:  July 23, 2012

 

                                                                                                        

FOR SERVICES RECEIVED, Minerco Resources Inc., a Nevada corporation (the “Maker”), hereby promises to pay to V. Scott Vanis, an individual, or his successors and assigns (the “Payee”), at its address at 15903 Maplehurst Drive, Spring, TX 77379, or to such other address as Payee shall provide in writing to the Maker for such purpose, a principal sum of Three Hundred Fifteen Thousand Dollars and 52/100 Cents (U.S. $320,300.52).  The aggregate principal amount outstanding under this Note will be conclusively evidenced by the schedule annexed as Exhibit B hereto (the “Loan Schedule”), up to a maximum principal amount of U.S $320.300.52.  The entire principal amount hereunder shall be due and payable on January 23, 2012 (the “Maturity Date”), or on such earlier date as such principal amount may earlier become due and payable pursuant to the terms hereof.

 

1. Interest Rate.  Interest shall accrue on the unpaid principal amount of this Convertible Promissory Note (the “Note”) at the rate of five percent (5%) per annum from the date of the first making of the loan for such principal amount until such unpaid principal amount is paid in full or earlier converted into shares (the “Shares”) of the Maker’s common stock (the “Common Stock”) in accordance with the terms hereof.  Interest hereunder shall be paid on such date as the principal amount under this Note becomes due and payable or is converted in accordance with the terms hereof and shall be computed on the basis of a 360-day year for the actual number of days elapsed.

 

2. Conversion of Principal and Interest.  Subject to the terms and conditions hereof, the Payee, at its sole option, may deliver to the Maker a notice in the form attached hereto as Exhibit A (a “Conversion Notice”) and an updated Loan Schedule, at any time and from time to time after the date hereof and prior to the payment of the principal amount and all accrued interest thereon (the date of the delivery of a Conversion Notice shall be referred to herein as a “Conversion Date”), to convert all or any portion of the outstanding principal amount of this Note plus accrued and unpaid interest thereon, for a number of Shares equal to the quotient obtained by dividing the dollar amount of such outstanding principal amount of this Note plus the accrued and unpaid interest thereon being converted by the Conversion Price (as defined in Section 15).  Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Note plus all accrued and unpaid interest thereunder in an amount equal to the applicable conversion, which shall be evidenced by entries set forth in the Conversion Notice and the Loan Schedule.

 

3. Certain Conversion Limitations.  The Payee may not convert an outstanding principal amount of this Note or accrued and unpaid interest thereon to the extent such conversion would result in the Payee, together with any affiliate thereof, beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act (as defined in Section 15) and the rules promulgated thereunder) in excess of 9.999% of the then issued and outstanding shares of Common Stock.  Since the Payee will not be obligated to report to the Maker 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 beneficial ownership in excess of 9.999% of the then outstanding shares of Common Stock (inclusive of any other shares which may be beneficially owned by the Payee or an affiliate thereof), the Payee shall have the authority and obligation to determine whether and the extent to which the restriction contained in this Section will limit any particular conversion hereunder.  The Payee may waive the provisions of this Section upon not less than 75 days prior notice to the Maker.

 

4. Deliveries.   Not later than five (5) Trading Days (as defined in Section 15) after any Conversion Date, the Maker will deliver to the Payee (i) a certificate or certificates representing the number of Shares being acquired upon the conversion of the principal amount of this Note and any interest accrued thereunder being converted pursuant to the Conversion Notice (subject to the limitations set forth in Section 3 hereof), and (ii) an endorsement by the Maker of the Loan Schedule acknowledging the remaining outstanding principal amount of this Note plus all accrued and unpaid interest thereon not converted (an “Endorsement”).  The Maker’s delivery to the Payee of stocks certificates in accordance clause (i) above shall be Maker’s conclusive endorsement of the remaining outstanding principal amount of this Note plus all accrued and unpaid interest thereon not converted as set forth in the Loan Schedule.

 

5. Prepayment Right. The Maker shall have the right to prepay all or a portion of the outstanding principal amount of this Note plus all accrued and unpaid interest thereon.

 

6. No Adjustments.  If the Maker, at any time while any portion of the principal amount due under this Note is outstanding, (a) shall pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock, (b) subdivide outstanding shares of Common Stock into a larger number of shares, (c) combine (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (d) issue by reclassification of shares of the Common Stock any shares of capital stock of the Maker, then the Conversion Price (as defined in Section 15) shall not be adjusted.

 

7. No Waiver of Payee’s Rights, etc.  All payments of principal and interest shall be made without setoff, deduction or counterclaim.  No delay or failure on the part of the Payee in exercising any of its options, powers or rights, nor any partial or single exercise of its options, powers or rights shall constitute a waiver thereof or of any other option, power or right, and no waiver on the part of the Payee of any of its options, powers or rights shall constitute a waiver of any other option, power or right.  The Maker hereby waives presentment of payment, protest, and notices or demands in connection with the delivery, acceptance, performance, default or endorsement of this Note.  Acceptance by the Payee of less than the full amount due and payable hereunder shall in no way limit the right of the Payee to require full payment of all sums due and payable hereunder in accordance with the terms hereof.

 

 

  

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8. Modifications.  No term or provision contained herein may be modified, amended or waived except by written agreement or consent signed by the party to be bound thereby.

 

9. Cumulative Rights and Remedies; Usury.  The rights and remedies of the Payee expressed herein are cumulative and not exclusive of any rights and remedies otherwise available. If it shall be found that any interest outstanding hereunder shall violate applicable laws governing usury, the applicable rate of interest outstanding hereunder shall be reduced to the maximum permitted rate of interest under such law.

 

10. Collection Expenses. If this obligation is placed in the hands of an attorney for collection after default, and provided the Payee prevails on the merits in respect to its claim of default, the Maker shall pay (and shall indemnify and hold harmless the Payee from and against), all reasonable attorneys’ fees and expenses incurred by the Payee in pursuing collection of this Note.

 

11. Successors and Assigns. This Note shall be binding upon the Maker and its successors and shall inure to the benefit of the Payee and its successors and assigns.  The term “Payee” as used herein, shall also include any endorsee, assignee or other holder of this Note.

 

12. Lost or Stolen Promissory Note.  If this Note is lost, stolen, mutilated or otherwise destroyed, the Maker shall execute and deliver to the Payee a new promissory note containing the same terms, and in the same form, as this Note.  In such event, the Maker may require the Payee to deliver to the Maker an affidavit of lost instrument and customary indemnity in respect thereof as a condition to the delivery of any such new promissory note.

 

13. Due Authorization.  This Note has been duly authorized, executed and delivered by the Maker and is the legal obligation of the Maker, enforceable against the Maker in accordance with its terms.

 

14. Governing Law.  This Note shall be governed by and construed and enforced in accordance with the internal laws of the State of Texas without regard to the principles of conflicts of law thereof.

 

15. Definitions.  For the purposes hereof, the following terms shall have the following meanings:

 

“Business Day” means any day except Saturday, Sunday and any day that is a legal holiday or a day on which banking institutions in the State of New York or State of Nevada are authorized or required by law or other government action to close.

“Conversion Price” shall be 50% of the lowest Per Share Market Value of the five (5) Trading Days immediately preceding a Conversion Date, whichever is lowest.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Trading Day” means (a) a day on which the shares of Common Stock are traded on such Subsequent Market on which the shares of Common Stock are then listed or quoted, or (b) if the shares of Common Stock are not listed on a Subsequent Market, a day on which the shares of Common Stock are traded in the over-the-counter market, as reported by the OTC Bulletin Board, or (c) if the shares of Common Stock are not quoted on the OTC Bulletin Board, a day on which the shares of Common Stock are quoted in the over-the-counter market as reported by the National Quotation Bureau Incorporated (or any similar organization or agency succeeding its functions of reporting prices); provided, however, that in the event that the shares of Common Stock are not listed or quoted as set forth in (a), (b) and (c) hereof, then Trading Day shall mean any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions in the State of Texas or State of Georgia are authorized or required by law or other government action to close.

 

 

  

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IN WITNESS WHEREOF, the Maker has caused this Convertible Promissory Note to be duly executed and delivered as of the date first set forth above.

 

MINERCO RESOURCES, INC.

 

                        

By:______________________________

Name:  V. Scott Vanis

Title:  Chief Executive Officer

 

 

V. Scott Vanis

 

                        

                        

By:______________________________

Name:  V. Scott Vanis

Title:  an individual

 

(Signature Page of Convertible Promissory Note)

 

  

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EXHIBIT A

 

NOTICE OF CONVERSION

 

Dated:  _________________

 

The undersigned hereby elects to convert the principal amount and interest indicated below of the attached Convertible Promissory Note into shares of common stock (the “Common Stock”), of Minerco Resources Inc., according to the conditions hereof, as of the date written below.  No fee will be charged to the holder for any conversion.

 

Exchange calculations: ______________________________________________

Date to Effect Conversion: ___________________________________________

 

Principal Amount and Interest of

Secured Convertible Note to be Converted: ______________________________

Number of shares of Common Stock to be Issued: _________________________

 

Applicable Conversion Price:

 

Signature: __________________________________________

 

Name:_____________________________________________

 

Address:____________________________________________

 

 

 

  

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EXHIBIT B

LOAN SCHEDULE

Convertible Promissory Note Issued by Minerco Resources Inc.

Dated: ___________________

SCHEDULE

OF

CONVERSIONS AND PAYMENTS OF PRINCIPAL

 

	
Date of Conversion

	
Amount of Conversion

	
Total Amount Due Subsequent

To Conversion

	  	  	  
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

B-1ex10-38.htm

Exhibit 10.38

SEVENTH SUPPLEMENTAL

PROMISSORY NOTE

 

	

$32,000.00

	March 9, 2012

 

Artisanal Cheese, LLC

a New York Limited Liability Company

500 West 37th Street

2nd Floor

New York, New York  10018

(Hereinafter referred to as “Borrower”)

Frederick G. Perkins, III

Declaration of Trust dated 1995

amended 2007

200 Ocean Lane Drive

Apt. 806

Key Biscayne, FL  33149

(Hereinafter referred to as “Lender”)

Pursuant to a Loan Agreement, Promissory Note and Security Agreement each dated February 22, 2010, by and among Borrower, Lender, Lender's Affiliate, American Home Food Products and Daniel W. Dowe, (collectively the “Loan Documents”), Borrower promised to pay to the order of Lender, in lawful money of the United States of America, at his address indicated above or wherever else Lender may specify, the sum of Two Million Five Hundred Thousand and 00/100 Dollars ($2,500,000.00).  On September 1, 2010, Lender agreed to loan an additional Two Hundred Thousand and 00/100 Dollars ($200,000.00) subject to the same terms, conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the First Supplemental Promissory Note.  On November 1, 2010, Lender agreed to loan an additional One Hundred Thousand and 00/100 Dollars ($100,000.00) subject to the same terms, conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the Second Supplemental Promissory Note.  On November 2, 2010, Lender agreed to loan an additional One Hundred Thousand and 00/100 Dollars ($100,000.00) subject to the same terms, conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the Third Supplemental Promissory Note.  On May 27, 2011, Lender agreed to loan an additional One Hundred Thousand and 00/100 Dollars ($100,000.00) subject to the same terms,conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the Fourth Supplemental Promissory Note.  On August 8, 2011, Lender agreed to loan an additional Two Hundred Thousand and 00/100 Dollars ($200,000.00) subject to the same terms,conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the Fifth Supplemental Promissory Note.  On February 2, 2012, Lender agreed to loan an additional Three Hundred Thousand and 00/100 Dollars ($300,000.00) subject to the same terms,conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the Sixth Supplemental Promissory Note.  On the date hereof, Lender agreed to loan an additional Thirty-Two Hundred Thousand and 00/100 Dollars ($32,000.00) subject to the same terms, conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in this Seventh Supplemental Promissory Note (including all renewals, extensions or modifications hereof, this “Note”).

 

  

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LOAN AGREEMENT.  This Note is issued in connection with and pursuant to the Loan Agreement dated February 22, 2010.  Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Loan Agreement.

 

SECURITY; RANK.  As security for the payment of the monies owing under this Note, the Borrower has delivered or has caused to be delivered to the Lender a security agreement (“Security Agreement”) dated February 22, 2010.  Lender shall have a first priority security interest in all assets of the Borrower pursuant to the Security Agreement subject only to a prior security interest in certain intellectual property held by Terrence Brennan and Marvin Numeroff as previously disclosed to Lender.  Subject to the terms of the Fifth Supplemental Promissory Note, all payments due under this Note shall, for the avoidance of doubt, rank pari passu with the Promissory Note, the First Supplemental Promissory Note, the Second Supplemental Promissory Note, the Third Supplemental Promissory Note, the Fourth Supplemental Promissory Note, and the Sixth Supplemental Promissory Note.

 

INTEREST RATE TO BE APPLIED.  Interest shall accrue on the unpaid principal balance of this Note from the date hereof at a fixed rate of eight percent (8.00%) per annum (“Interest Rate”).

 

INTEREST AND FEE(S) COMPUTATION.  (Actual/365).  Interest and fees, if any, shall be computed on the basis of a 365-day year for the actual number of days in the applicable period.

 

ISSUANCE OF COMMON SHARES.  In consideration of making this loan and the previous loan under the Sixth Supplemental Promissory Note, Lender shall receive Sixteen Thousand (16,000) and One Hundred Fifty Thousand (150,000) shares of Artisanal Brand Inc.’s Common Stock, respectively.

 

PREPAYMENT.  The Note may be prepaid, in whole or in part, at any time.  Any prepayment shall include accrued and unpaid interest to the date of prepayment on the principal amount prepaid and all other sums due and payable hereunder.  All prepayments received on this Note may be applied in such order as the Lender in his sole discretion shall determine.

 

REPAYMENT TERMS.  Interest on this Note shall be due and payable in quarterly payments  in the amount of Six Hundred Forty Dollars ($640.00) commencing on May 25, 2012 and August 25, 2012, November 25, 2012 and February 21, 2013.   If such payment dates shall fall on a weekend or holiday, then such payment shall be due on the first business banking date following such due date.  In any event, all principal and accrued interest, together with all other amounts due hereunder, shall be due and payable in full on February 21, 2013.

 

APPLICATION OF PAYMENTS.  Monies received by Lender for application toward payment of this Note shall first be applied to accrued interest and then to principal.  If a Default occurs, monies may be applied to the obligations in any manner or order deemed appropriate by Lender.  If any payment received by Lender under this Note is rescinded, avoided or for any reason returned by Lender because of any adverse claim or threatened action, the returned payment shall remain payable as an obligation of all persons liable under this Note as though such payment had not been made.

 

  

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ATTORNEYS’ FEES AND OTHER COLLECTION COSTS. Borrower shall pay all of Lender’s reasonable expenses incurred to enforce or collect any of the obligations under this Note, including, without limitation, reasonable court, arbitration, paralegals', attorneys' fees and expenses, whether incurred without the commencement of a suit, in any trial, arbitration, or administrative proceeding, or in any appellate or bankruptcy proceeding.

 

DEFAULT.  If any of the following occurs, a default (“Default”) under this Note shall exist:  Nonpayment.  The failure of Borrower to pay any of the obligations under this Note within ten (10) calendar days of when due.  Nonperformance.  The failure of timely performance of the obligations hereunder or under the Security Agreement, other than payment obligations, and such default shall continue unremedied for a period of fifteen (15) calendar days after Borrower shall receive notice of such default.  False Warranty.  A warranty or representation made or deemed made in this Note, the Loan Agreement or the Security Agreement, or furnished Lender in connection with the loan evidenced by this Note, proves materially false, or if of a continuing nature, becomes materially false.  Cessation; Bankruptcy.  The dissolution of, termination of existence of, loss of good standing status by, appointment of a receiver for, assignment for the benefit of creditors of, lender workout proceedings, or commencement of any bankruptcy or insolvency proceeding by or against the Borrower or AHF, or any of their subsidiaries or affiliates.  Material Capital Structure or Business Alteration. Without the prior written consent of Lender, which shall not be unreasonably withheld (i) a material alteration in the kind or type of Borrower's business or that of Borrower's subsidiaries or affiliates; (ii) the sale of all or substantially all or a material portion of the business or assets of Borrower or any of Borrower's subsidiaries or affiliates if such a sale is outside the ordinary course of business of Borrower; (iii) the acquisition of substantially all of the business or assets or more than 50% of the outstanding stock, membership interests, or voting power of any other entity; (iv) should Borrower or any of Borrower's subsidiaries enter into any merger or consolidation or similar transaction; or (v) any change in the members of the Borrower resulting in a change of a majority or more of the membership interests or equity interests of Borrower.

 

REMEDIES UPON DEFAULT.  If a Default occurs under this Note or the Security Agreement, Lender may at any time thereafter take the following actions:  Acceleration Upon Default. Accelerate the maturity of this Note and all obligations hereunder, and all of the obligations hereunder shall be immediately due and payable.  Cumulative. Exercise any rights and remedies as provided under the Note or the Security Agreement, or as provided by law or equity.

 

WAIVERS AND AMENDMENTS. No waivers, amendments or modifications of this Note shall be valid as against Lender unless in writing and signed by Lender.  No waiver by Lender of any Default shall operate as a waiver of any other Default or the same Default on a future occasion.  Neither the failure nor any delay on the part of Lender in exercising any right, power, or remedy under this Note, the Loan Agreement or the Security Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or remedy.

 

  

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Borrower and any person liable under this Note waives presentment, protest, notice of dishonor, demand for payment, notice of intention to accelerate maturity, notice of acceleration of maturity, notice of sale and all other notices of any kind.  Further, Borrower agrees that Lender may extend, modify or renew this Note or make a novation of the loan evidenced by this Note for any period and grant any releases, compromises or indulgences with respect to any collateral securing this Note, all without notice to or consent of each Borrower or each person who may be liable under this Note and without affecting the liability of Borrower or any person who may be liable under this Note.

 

NOTICE.  All notices, consents, waivers and other communications under this Agreement shall be in writing and shall be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by facsimile (with written confirmation of receipt), provided that a copy is mailed by registered mail, return receipt requested, or (c) when received by the addressee, if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and facsimile numbers set forth below (or to such other addresses and facsimile numbers as a party may designate by notice to the other parties):

If to Borrower, to:                                 Artisanal Cheese, LLC

500 West 37th Street, Second Floor

New York, New York 10018

Attn:  Daniel W. Dowe, President

Telephone No.: (212) 871-3150

Telecopy No.:  (212)-239-1417

Email: ddowe@artisanalcheese.com

If to Lender, to:                                     Frederick G. Perkins, III

200 Ocean Lane Drive, Apt. 806

Key Biscayne, FL  33149

Telephone No.:  (305) 361-8992

Telecopy No.:  (305) 361-0463

Email: fgperkins@yahoo.com

 

MISCELLANEOUS PROVISIONS.  Assignment.  This Note shall inure to the benefit of and be binding upon the parties and their respective heirs, legal representatives, successors and assigns. This Note may be assigned or pledged by Lender to a bank, other financing source or other person or entity.  Borrower shall not assign its rights and interest hereunder without the prior written consent of Lender, and any attempt by Borrower to assign without Lender’s prior written consent is null and void.  Any assignment shall not release Borrower from its obligations hereunder.  Applicable Law; Conflict Between Documents.  This Note shall be governed by and construed under the laws of the State of New York without regard to conflict of laws principles.  If the terms of this Note should conflict with the terms of the Loan Agreement or the Security Agreement, the terms of this Note shall control.  Jurisdiction and Venue.  Borrower irrevocably agrees that any suit regarding this Note shall be brought in the state or federal courts located in New York, New York and Borrower submits to such jurisdiction.  Severability.  If any provision of this Note shall be prohibited or invalid under applicable law, such provision shall be ineffective but only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Note or other such document.  Plural; Captions.  All references in this Note to Borrower, person, document or other nouns of reference mean both the singular and plural form, as the case may be, and the term “person” shall mean any individual, person or entity.  The captions contained in this Note are inserted for convenience only and shall not affect the meaning or interpretation of the Note.  Binding Contract. Borrower by execution of and Lender by acceptance of this Note agree that each party is bound to all terms and provisions of this Note.  Fees and Taxes.  Borrower shall promptly pay all documentary, intangible recordation and/or similar taxes on this transaction whether assessed at closing or arising from time to time.

 

  

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WAIVER OF JURY TRIAL.  BORROWER AND LENDER ACKNOWLEDGE AND AGREE THAT (i) ANY SUIT, ACTION OR PROCEEDING, WHETHER CLAIM OR COUNTERCLAIM, BROUGHT OR INSTITUTED BY LENDER OR BORROWER OR ANY SUCCESSOR OR ASSIGN OF LENDER OR BORROWER, ON OR WITH RESPECT TO THIS NOTE OR ANY OTHER DOCUMENT OR THE DEALINGS OF THE PARTIES WITH RESPECT HERETO, OR THERETO, SHALL BE TRIED ONLY BY A COURT AND NOT BY A JURY AND EACH PARTY WAIVES THE RIGHT TO TRIAL BY JURY; (ii) EACH WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER, IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; AND (iii) THIS SECTION IS A SPECIFIC AND MATERIAL ASPECT OF THIS NOTE AND LENDER WOULD NOT EXTEND CREDIT TO BORROWER IF THE WAIVERS SET FORTH IN THIS SECTION WERE NOT A PART OF THIS NOTE.

 

IN WITNESS WHEREOF, Borrower, on the day and year first above written, has caused this Note to be executed.

 

	 	

ARTISANAL CHEESE, LLC

	 
	 	 	 	 
	
 

	
By: 

	/s/ Daniel W. Dowe	 
	 	 	

Name: Daniel W. Dowe

	 
	 	 	

Title: President

	 

 

 

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