Document:

ex_387975.htm

Exhibit 10.1

 

JOINT VENTURE AGREEMENT

 

THIS AGREEMENT (the “Agreement”) is made as of this 19 day of April 2021, by and among CLR Roasters, LLC, a Florida limited liability company (“CLR”), Khrysos Industries, Inc., a Delaware corporation (“KII”, and together with CLR the “Manufacturing Partner”), and GROWTH by Sabir Inc, a NEW YORK Corporation (the “Web Marketing Partner”).

 

RECITALS

 

The parties hereto (sometimes hereinafter referred to collectively as the "Partners" and individually as the "Partner") desire to form a joint venture under the laws of the State of Florida (the "Joint Venture") for the purpose of growing a hemp focused brand to be marketing online. The Joint Venture may also be referred to as JV within the document.

 

Accordingly, the Partners hereby form and agree to conduct certain activities as a joint venture for the purposes hereinafter set forth and upon the following terms and conditions:

 

ARTICLE 1.

 

GENERAL PROVISIONS

 

Section 1.1 Purposes and Scope of Joint Venture.

 

1.1.1          Except as otherwise expressly provided for herein, the rights and obligations of the Partners and the administration and termination of the Joint Venture shall be governed by the laws of the State of Florida.

 

1.1.2          The Joint Venture business and affairs shall be focused on building a brand that primarily utilizes hemp derived components and is primarily marketed via e-commerce. The brand’s product line will consist of various delivery systems including, but not limited to gummies, tinctures, gel caps, and focus on delivering strong scientific efficacy and extraordinary quality.

 

Section 1.2         Name of Joint Venture. The business and affairs of the Joint Venture shall be conducted solely and at all times under the brand name that that JV will establish and create as a first priority.

 

Section 1.3         Scope of Partner's Authority. Except as otherwise expressly and specifically provided in this Agreement, no Partner shall have any authority to act for, or to assume any obligations or responsibility on behalf of, any other Partner or the Joint Venture.

 

Section 1.4         Principal Place of Business. The principal office and place of business of the Joint Venture shall be maintained at 4121 34th street, Orlando, Fl or such other place or places as shall from time to time be designated by the Partners.

 

Section 1.5          Term. The Joint Venture shall commence upon the date of this Agreement and shall continue until terminated as provided herein.

 

 

 

 

 

 

 

ARTICLE 2.

 

CONTRIBUTIONS, PARTICIPATION AND DISTRIBUTIONS

 

Section 2.1         Roles and Responsibilities of Each JV Partner and Joint Responsibilities:

 

2.1.1                  Manufacturing Partner: The manufacturing partner will be primarily responsible for operations, manufacturing, quality control, labeling, and lab testing to ensure the products meet the quality specifications outlined on the labels.

 

Pre and Post Launch Responsibilities and Established Timelines for manufacturing partner:

 

PRELAUNCH

 

	 	
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			Review any submissions from Web Marketing Partner for design/process approvals

			

 

	 	
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			Setup Legal Structure for Joint Venture

			

 

	 	
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			Produce and share accounting reports on a monthly/quarterly and annual basis for the JV with the option for Web Marketing Partner review such reports.

			

 

	 	
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			Setup separate business checking account under manufacturing partners current banking relationship with access provided to both JV Partners. A debit card/credit card will be linked to the account and provided for online payments for ads/services.

			

 

	 	
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			Work with web marketing partner to establish payment processor that accepts hemp-related payments. Web marketing partner will integrate the payment processor into Shopify.

			

 

	 	
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			Implement the branding and product packaging into the products

			

 

	 	
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			Work with OUTERSPACE 3PL to get the 3PL setup and the initial inventory moved over to Outerspace warehouses in NJ

			

 

	 	
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			Get products third-party lab-tested for potency by 3 independent labs for each product.

			

 

	 	
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			Provide initial inventory for launch of web site. Additional inventory will be paid by the JV at a wholesale price level.

			

 

POSTLAUNCH & ONGOING

 

	 	
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			Manage Outerspace 3PL relationship and inventory management

			

 

	 	
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			Product manufacturing - existing and new products

			

 

	 	
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			Shipping/Freight to Outerspace 3PL

			

 

	 	
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			Lab testing products for quality and accuracy

			

 

	 	
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			Identify potential retail partners (brick & mortar only) for retail distribution

			

 

         2.1.2                   Web Marketing Partner: The web marketing partner is primarily responsible for marketing, e-commerce site development, site merchandising, storytelling, customer acquisition, retention, and creating brand awareness

 

Pre and Post Launch Responsibilities and Established Time Lines for web marketing partner:

 

PRELAUNCH

 

	 	
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			Fund the pre-launch activities listed here

			

 

	 	
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			Review any submissions from manufacturing partner regarding JV related items and products

			

 

	 	
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			Brand Name, Brand Logo, Brand Story, Brand Positioning, Product Package Design/Labels

			

 

	 	
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			Shopify Site Design & Build

			

 

	 	
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			ManyChat Design & Build

			

 

	 	
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			Ten (10) Blog articles for launch

			

 

	 	
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			Organic social posts from the blog articles and brand positioning including the maintenance and management of all Social Media platforms including, but not limited to Instagram, Facebook, Tik Tok, Linked in.

			

 

	 	
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			Site Optimization & Launch

			

 

 

 

 

 

POSTLAUNCH & ONGOING

 

	 	
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			Design Organic Social Posts

			

 

	 	
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			Identify and deploy tier-2 advertising platforms to do paid ads

			

 

	 	
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			Identify and deploy tier-1 advertising platforms (Google & Facebook) to do paid ads when it becomes available. As of March 2, 2021, this is not available at the time.

			

 

	 	
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			On-going site optimization

			

 

	 	
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			Identify nano- and micro-influencers to recruit/manage to drive brand awareness and sales

			

 

	 	
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			Identify and approve new affiliates to drive affiliate sales

			

 

2.1.3                   Joint Responsibilities and Agreed and TimeLine:

 

PRELAUNCH

 

	 	
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			Project to Kickoff at execution of JV Agreement on or around March 18, 2021. The project officially starts on April 1, 2021.

			

 

	 	
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			Finalize the inventory product catalog and items by March 31, 2021.

			

 

	 	
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			Facilitate selection of Outerspace as a 3PL

			

 

	 	
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			Development/Build is April 1 through June 30, 2021.

			

 

	 	
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			Testing/Fixing is July 1 through July 31, 2021.

			

 

	 	
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			On or around July 1, 2021, the initial deposit of $25,000 by each party in the JV into the JV Business Checking Account.

			

 

	 	
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			Our site launch goal is August 1, 2021.

			

 

Initial inventory and the services provided during the Pre-launch period by each party is the initial investment of the party into the JV. Working capital totaling $50,000 ($25,000 by Manufacturing Partner and $25,000 by Web Marketing Partner) is for the initial post-launch marketing and operating expenses. Post-launch inventory and services will be funded from additional working capital and the revenue turnover from the pre-launch inventory/services.

 

POSTLAUNCH & ON-GOING

 

	 	
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			Participate in a bi-weekly status meeting

			

 

	 	
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			Post-launch Marketing/Advertising Budget

			

 

	 	
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			Post-launch Blog article Budget - 5 articles per month with a weekly deployment schedule

			

 

	 	
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			Post-launch Social posts/Ad creative Budget

			

 

	 	
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			Post-launch Influencer Budget

			

 

	 	
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			Post-launch On-going SEO optimization/backlinks purchase Budget

			

 

	 	
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			Funding on-going working capital when necessary to continue fueling marketing and operational activities.

			

 

	 	
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			New product ideation, approval for monthly/quarterly new product launch schedule

			

 

	 	
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			Mutually agree on P&L distribution or re-investment back into the JV

			

 

	 	
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			Mutually agree on JV acquisition by either party or a third-party

			

 

	 	
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			Quarterly JV Meeting address any JV-related business approvals

			

 

	 	
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			Identify a panel of the professional advisory board comprised of medical doctors and naturopaths to advise/promote the efficacy of CBD and other hundreds of Cannabinoids.

			

 

 

 

 

 

 

Section 2.1.4         Allocation and Distribution of Profits and Losses.  The Net Profits (as defined below) and Net Losses (as defined below) for each fiscal period during the term of this Agreement shall be allocated among the parties as follows: fifty percent (50%) to The Manufacturing Partner and fifty percent (50%) to the Web Marketing partner, and shall be distributed to parties as soon as practicable following the close of the fiscal period) based on such allocations less any amounts which the Managing Partners reasonably determine to be necessary to be reserved to meet the needs of the Joint Venture's business on an ongoing basis. Any distribution of profits will be agree upon by the both JV partners who are the Managing Partners of the JV

 

For the purposes hereof: “Net Profits” shall mean the after tax income of the Joint Venture, if any, determined in accordance with generally accepted accounting principles, consistently applied; and “Net Losses” shall mean the after-tax losses of the Joint Venture, if any, determined in accordance with generally accepted accounting principles, consistently applied.

 

Section 2.1.5.1          Capital Contributions. 

 

          The Manufacturing Partners and the Web Marketing Partner agree that the contributions described above in Article 2 should supply sufficient working capital to fund the Joint Venture and the parties agree that revenue generated by the Joint Venture will remain in the Joint Venture to grow the business and provide ongoing working capital.

 

In the event additional capital is necessary to fund the business the JV Partners agree to call a meeting and discuss additional capital needs of the JV deemed necessary. When both partners confirm the need for additional capital to fund the JV the capital will be contributed equally by each JV partner.

.

2.1.6                  Distributions: The JV partners, within 12 months of launch will agree to establish a methodology to provide distributions to the JV partners.

 

 

ARTICLE 3.

 

MANAGEMENT

 

Section 3.1         Managing Partners. The overall management and control of the business and affairs of the Joint Venture shall be vested equally by the Manufacturing Partner and the Web Marketing Partner (the “Managing Partners”), and shall require the prior consent and agreement of both Managing Partners. The Managing Partners shall have the exclusive power and authority, on behalf of the Joint Venture, to: (a) manage the business activities of the Joint Venture; (b) purchase, lease or otherwise acquire from, or sell, lease or otherwise dispose of any property or asset to any person; (c) open bank accounts and otherwise invest the funds of the Joint Venture; (d) purchase insurance on the business and assets of the Joint Venture; (e) commence lawsuits and other proceedings; (f) enter into any agreement, instrument or other writing; (g) retain accountants, attorneys or other agents; and (h) take any other lawful action that the Managing Partners consider reasonable and necessary or advisable in connection with any business of the Joint Venture.

 

Section 3.2         Books and Records.          A complete set of books and records, truly and correctly reflecting the business transactions of the Joint Venture, shall be kept and maintained by the Manufacturing Partner at the principal place of business of the Joint Venture and each Partner shall have access to and the right to inspect said books and records at any reasonable time.

 

 

 

 

 

ARTICLE 4.

 

ASSIGNMENT

 

Section 4.1          Transfer Prohibited. No Partner may sell, transfer, assign, pledge, hypothecate or otherwise encumber or permit or suffer any encumbrance of all or any part of his interest in the Joint Venture or his interest in any Joint Venture property (hereinafter collectively sometimes referred to as his "Interest"), including any involuntary transfer by operation of law or otherwise, without the prior consent of both Managing Partners. Any attempt to so transfer or encumber any such Interest shall be void.

 

ARTICLE 5.

 

DISSOLUTION AND TERMINATION

 

Section 5.1          Dissolution.         The Joint Venture shall be deemed dissolved upon the occurrence of any of the following events:

 

5.1.1.          The sale or complete disposition of the Joint Venture's assets.

 

5.1.2          The agreement of the Partners; and

 

5.1.3          The bankruptcy or dissolution of any Partner.

 

 

Section 5.2          Termination.          Upon dissolution in accordance with Section 5.1 above, the Joint Venture shall terminate and be wound up. The Joint Venture property shall thereupon be sold (and any Partner may be a purchaser of all or any portion thereof), its liabilities paid or provided for, and the remaining assets or profits from the sale of such assets distributed to and among the Partners, in accordance with the respective allocations to the Partners set forth in Section 2.1 above.

 

ARTICLE 6.

 

GENERAL

 

Section 6.1          Notices. Any notices or demands permitted or required hereunder shall be in writing and shall have been deemed to have been properly given, unless explicitly stated otherwise, if sent by (i) FedEx or other comparable overnight courier, (ii) registered or certified mail, postage prepaid, return receipt requested, (iii) facsimile transmission during normal business hours to the place of business of the recipient, or (iv) electronic transmission during normal business hours to the electronic address of the recipient. For purposes of all notices, the addresses and facsimile numbers of the Partners are set forth below:

 

CLR Roasters, LLC

2131-2141 NW 72nd Avenue

Miami, FL 33122

 

Khrysos Industries, Inc

4121 34th Street

Orlando, Fl

 

Growth by Sabir Inc.

Attn: Sabir Semerkant

134-32 58th RD

Flushing, NY 11355

_______________

 

 

or to such other addresses as the parties may from time to time designate in writing.

 

 

 

 

 

All notices, notifications, demands, or requests so given shall be deemed given and received (i) if sent via FedEx or other comparable overnight courier, the next Business Day after being deposited with such courier; (ii) if mailed, five (5) Business Days after being deposited in the mail; (iii) if sent via facsimile transmission, the next Business Day after being so transmitted; or (iv) if sent via electronic transmission, the next Business Day after being so transmitted.

 

Section 6.2          Counterparts. This Agreement may be signed in one or more counterparts.

 

Section 6.3         Governing Law. This Agreement and the obligation of the Partners hereunder shall be interpreted, construed and enforced in accordance with the laws of the State of Florida, without regard to conflicts of laws principles.

 

Section 6.4         Entire Agreement. This Agreement contains the entire agreement between the parties hereto relative to the formation, operation, termination and dissolution of the Joint Venture. No variations, modifications, or changes herein or hereof shall be binding upon either party hereto unless set forth in a writing signed by the parties hereto.

 

Section 6.5          Waiver. No consent or waiver, express or implied, by any Partner to or of any breach or default by the other in the performance by the other of his obligations hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or default in the performance by such other party of the same or any other obligations of such Partner hereunder.

 

Section 6.6         Other Interests. It is expressly agreed by the Partners that during the term of this Agreement, the Partners shall not enter into any Agreement whatsoever with any other Party that would result in a conflict of interest with the other Partner to this Agreement, unless expressly consented to in writing by the other Partner.

 

Section 6.7          Partition. Each Partner irrevocably waives any and all right he may have to maintain any action for partition as to his undivided interest in the Joint Venture property or the Facility, or to compel any sale of the Joint Venture property or the Facility under any law or laws now existing or hereinafter enacted.

 

Section 6.8         Arbitration. All claims and disputes arising under or relating to this Engagement Agreement are to be settled by binding arbitration in the City of Miami, State of Florida. The arbitration shall be conducted on a confidential basis pursuant to the Commercial Arbitration Rules of the American Arbitration Association. An award of arbitration may be confirmed in a court of competent jurisdiction. Parties are to bear their own costs

 

 

 

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

 

 

Khrysos Industries, Inc and CLR Roasters, LLC

 

By: /s/ Dave Briskie

Name: Dave Briskie

Title: President Chief Financial Officer

 

Date: April 20, 2021                                                                

 

 

Growth by Sabir

 

By: /s/ Sabir Semerkant

Name: Sabir Semerkant

Title: Founder & President

 

Date: April 19, 2021Exhibit 10.1

 

NEITHER THIS SECURITY NOR THE SECURITIES INTO
WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

Original Issue Date: June 20, 2022

 

Principal Amount: Up to $360,000

 

UNSECURED CONVERTIBLE NOTE

DUE DECEMBER 31, 2023

 

THIS UNSECURED CONVERTIBLE
NOTE is a duly authorized and validly issued promissory note of Chavant Capital Acquisition Corp., a Cayman Islands company (“Chavant”
or the “Company”), having its principal place of business at 445 Park Avenue, New York, NY 10022, United States, designated
as its Convertible Note due December 31, 2023 (this “Note”).

 

FOR VALUE RECEIVED, unless
earlier converted in accordance with Section 7 hereof, the Company promises to pay to the order of Chavant Capital Partners LLC
or its registered assigns or successors in interest (the “Holder”), the principal sum of Three Hundred Sixty Thousand
Dollars ($360,000), or such lesser amount as shall have been advanced by Holder to the Company and shall remain unpaid under this Note
on December 31, 2023 (the “Maturity Date”), in lawful money of the United States of America, on the terms and conditions
described below.

 

Section 1.
Definitions. For the purposes hereof, in addition to the terms defined elsewhere in this Note, the following terms shall have the
following meanings:

 

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

 

“Business
Combination” shall have the meaning set forth in Article 1.1 of the Amended and Restated Memorandum and Articles of Association
of the Company.

 

“Chavant”
shall have the meaning set forth in the Recitals hereto.

 

“Conversion
Agent” shall have the meaning set forth in Section 7(g).

 

“Conversion
Warrants” shall have the meaning set forth in Section 7(a).

 

“Drawn
Amount” shall have the meaning set forth in Section 7(a).

 

“New
York Courts” shall have the meaning set forth in Section 8(c).

 

“Person”
means an individual or corporation, exempted company, partnership, trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

     

     

    

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Warrants”
means the warrants that are each exercisable into one ordinary share of Chavant, with an exercise price of $11.50 per share and an exercise
period of five years after the initial Business Combination of Chavant.

 

“Warrant
Delivery Date” shall have the meaning set forth in Section 7(b).

 

“Trading
Market” means any of the following markets or exchanges on which the ordinary shares are listed or quoted for trading on the
date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York
Stock Exchange, the OTCQB, or the OTCQX (or any successors to any of the foregoing).

 

Section 2. No
Interest. No interest shall accrue on the unpaid principal balance of this Note.

 

Section 3. Drawdown
Requests. The Company and the Holder hereby agree that, from time to time, at any time on or after the date hereof and prior to the
Maturity Date, the Company may request up to Three Hundred Sixty Thousand Dollars ($360,000), in aggregate principal amount of borrowings
under this Note upon written request (email being sufficient) from the Company to the Holder (each, a “Drawdown Request”).
Each Drawdown Request must state the aggregate principal amount requested to be borrowed, and must not be an amount less than Ten Thousand
Dollars ($10,000), unless agreed upon in writing by the Company and Holder. Holder shall fund each Drawdown Request no later than three
(3) Business Days after receipt of such Drawdown Request; provided, however, that the aggregate principal amount outstanding
under this Note at any time after giving effect to a drawdown may not exceed Three Hundred Sixty Thousand Dollars ($360,000). No fees,
payments or other amounts shall be due to Holder in connection with, or as a result of, any Drawdown Request by the Company. Notwithstanding
the foregoing, on or after July 22, 2022, the Company shall not be entitled to deliver a Drawdown Request, and the Holder shall not be
required to fund any Drawdown Request, unless, at such time, either (i) Chavant has filed with the Securities and Exchange Commission
an announcement on Form 8-K disclosing, among other things, the signing of the definitive agreement relating to its initial Business Combination
and the issuance of this Note by the Company or (ii) Chavant has attained the necessary shareholder approval to extend the period to close
its initial Business Combination beyond July 22, 2022.

 

Section 4. Payment.
All payments shall be made in United States dollars at the principal office of the Company, or at such other place as the Company and
Holder shall mutually agree in writing. Except to the extent converted at the option of the Holder into Conversion Warrants pursuant to
Section 7, repayment of principal shall be made at the earlier of (i) five Business Days after the closing of the initial Business Combination
and (ii) the Maturity Date (such date being the “Repayment Date”). Notwithstanding the aforesaid statement, prepayment
of principal may be made any time before the Repayment Date.

 

Section 5. Security.
This Note is a general unsecured obligation of the Company.

 

Section 6. Registration
of Transfers and Exchanges.

 

 a) Different
Denominations. 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 payable for such registration of transfer or exchange.

 

 b) Reliance
on Note Register. Prior to due presentment for transfer to the Company 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 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 is overdue, and neither the Company nor any such agent shall be
affected by notice to the contrary.

 

    	 	2	 

     

    

 

Section 7. Conversion.

 

 a) Conversion
Upon Initial Business Combination: So long as this Note remains outstanding, upon the closing of the initial Business Combination,
all amounts that have been advanced by Holder to the Company and remain unpaid under this Note as of such time (the “Drawn Amount”)
shall, at the option of the Holder by notice to the Company delivered no later than two Business Days following the closing of the initial
Business Combination, convert in whole without any further action by the Holder into a number of Warrants equal to (i) the Drawn Amount
divided (ii) by $1.00, rounded up to the nearest whole warrant (such warrants, the “Conversion Warrants”).

 

 b) Delivery
of Conversion Warrants Upon Conversion. As promptly as practicable following the applicable conversion of the Note (the “Warrant
Delivery Date”), Chavant shall deliver, or cause to be delivered, to the Holder the Conversion Warrants.

 

 c) Reservation
of Warrants Issuable Upon Conversion. Chavant covenants that it will at all times reserve and keep available out of its authorized
and unissued Warrants for the sole purpose of issuance upon conversion of this Note, each as herein provided, free from preemptive rights
or any other actual contingent purchase rights of Persons other than the Holder, not less than 360,000 Warrants. Chavant covenants that
all Warrants that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable.

 

 d) Fractional
Warrants. No fractional warrants shall be issued upon the conversion of all or any portion of this Note. Any fraction of a warrant
to which the Holder would otherwise be entitled to purchase upon such conversion shall be rounded up to the next whole warrant.

 

 e) Transfer
Taxes and Expenses. The issuance of Conversion Warrants upon conversion of this Note shall be made without charge to the Holder hereof
for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such Conversion Warrants; provided
that Chavant shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery
of any such Conversion Warrants upon conversion in a name other than that of the Holder of this Note so converted and Chavant shall not
be required to issue or deliver such Conversion Warrants unless or until the Person or Persons requesting the issuance thereof shall have
paid to Chavant the amount of such tax or shall have established to the satisfaction of Chavant that such tax has been paid. Chavant shall
pay all reasonable fees of any Conversion Agent required for same-day processing of any conversion hereunder required for same-day electronic
delivery of the Conversion Warrants.

 

 f) Satisfaction.
If the outstanding principal balance of this Note is converted in full into Warrants pursuant to this Section 7, then such principal
shall be deemed to have been paid in full by the Company on the date of such conversion.

 

g) Maintenance
of Office or Agency. The Company may maintain in the contiguous United States an office or agency where the Notes may be surrendered
for registration of transfer or exchange or for presentation for payment or repurchase or for conversion (“Conversion Agent”)
and where notices and demands to or upon the Company in respect of the Notes may be made.

 

Section 8. Miscellaneous.

 

 a) Notices.
Any and all notices or other communications or deliveries to be provided by the Holder hereunder shall be in writing and delivered personally,
by facsimile, by email attachment, or sent by a nationally recognized overnight courier service, addressed to the Company, at the address
set forth above, or such other facsimile number, email address, or address as the Company may specify for such purposes by notice to the
Holder delivered in accordance with this Section 8(a). Any and all notices or other communications or deliveries to be provided by the
Company hereunder shall be in writing and delivered personally, by facsimile, by email attachment, or sent by a nationally recognized
overnight courier service addressed to each Holder at the facsimile number, email address or address of the Holder appearing on the books
of the Company, or if no such facsimile number or email attachment or address appears on the books of the Company, at the principal place
of business of such Holder. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest
of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email or email
attachment to the email address set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on any date,
(ii) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile
number or email or email attachment to the email address set forth on the signature pages attached hereto on a day that is not a Business
Day or later than 5:30 p.m. (New York City time) on any Business Day, (iii) the second Business Day following the date of mailing, if
sent by U.S. nationally recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is required
to be given.

 

    	 	3	 

     

    

 

 b) Lost
or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange
and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed Note,
a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss,
theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company.

 

 c) Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed
and enforced in accordance with the laws of the State of New York. Each party agrees that all legal proceedings concerning the interpretation,
enforcement and defense of the transactions contemplated by this Note (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of New
York, Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction
of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein (including with respect to the enforcement of this Note), and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York Courts, or such New
York Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding 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 Note 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 applicable law.

 

Each party
hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Note or the transactions contemplated hereby.

 

 d) Amendment;
Waiver. The provisions of this Note, including the provisions of this Section 8(d), may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the
Company and the Holder. Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or be construed
to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Company
or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive
that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note on any other occasion.

 

 e) Severability.
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision
is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances. The Company
covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying
all or any portion of the principal of this Note as contemplated herein, wherever enacted, now or at any time hereafter in force, or which
may affect the covenants or the performance of this Note, and the Company (to the extent it may lawfully do so) hereby expressly waives
all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution
of any power herein granted to the Holder, but will suffer and permit the execution of every such power as though no such law has been
enacted.

 

    	 	4	 

     

    

 

 f) Execution
and Counterparts. This Note may be executed in two or more counterparts, all of which when taken together shall be considered one
and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it
being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
page were an original thereof.

 

 g)
Successors and Assigns. This Note shall inure to the benefit of and be binding upon the successors and permitted assigns of each of
the parties and shall inure to the benefit of each such holder. Neither party may assign its rights or obligations hereunder without the
prior written consent of the other parties hereto.

 

 h) Remedies
and Other Obligations. The remedies provided in this Note shall be cumulative and in addition to all other remedies available under
this Note at law or in equity (including a decree of specific performance and/or other injunctive relief). Amounts set forth or provided
for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the
Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof).
The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm
the Company’s compliance with the terms and conditions of this Note.

 

 i) Trust
Waiver. Notwithstanding anything herein to the contrary, the Holder hereby waives any and all right, title, interest or claim of any
kind (“Claim”) in or to any distribution of or from the trust account into which the proceeds of the Company’s
initial public offering and the proceeds of the sale of the warrants issued in the private placement in connection with the consummation
of the initial public offering were deposited, as described in greater detail in the registration statement and prospectus filed by the
Company with the Securities and Exchange Commission in connection with the initial public offering, and hereby agrees not to seek recourse,
reimbursement, payment or satisfaction for any Claim against the trust account for any reason whatsoever.

 

j) Next Business
Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made
on the next succeeding Business Day.

 

k) Headings.
The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit or affect
any of the provisions hereof.

 

 

*********************

 

(Signature Pages Follow)

 

    	 	5	 

     

    

 

IN WITNESS WHEREOF, each of the parties hereto
have caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.

 

	 	CHAVANT CAPITAL ACQUISITION CORP.	 
	 	 	 	 
	 	By:	/s/ Jiong Ma	 
	 	 	Name: Jiong Ma	 
	 	 	Title: Chief Executive Officer 	 

 

    [Signature Page to Unsecured Convertible Note]

     

    

 

IN WITNESS WHEREOF, each of the parties hereto
have caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.

 

	Chavant Capital Partners LLC	 
	 	 	 
	
    By: 

     
	Chavant Manager LLC, its Manager	 
	By:	/s/ Jiong Ma	 
	 	Name: Jiong Ma	 
	 	Title: Manager	 

 

    [Signature Page to Unsecured Convertible Note]

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