Document:

EXHIBIT
10.37

 

NEITHER
THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE. THESE SECURITIES HAVE BEEN SOLD 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.

 

progreen
us, Inc.

 

Promissory
Note

 

	Issuance
    Date:  January 20th, 2017	Original
    Principal Amount:       $105,000
	Note
    No. PGUS-2	Consideration
    Paid at Close:      $100,000
	 	 

 

FOR
VALUE RECEIVED, ProGreen US, Inc., a Delaware corporation with a par value of $0.0001 per common share (“Par Value”)
(the “Company”), hereby promises to pay to the order of Lucas Hoppel or registered assigns (the “Holder”)
the amount set out above as the Original Principal Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion
or otherwise, the “Principal”) when due, whether upon the Maturity Date (as defined below), acceleration, redemption
or otherwise (in each case in accordance with the terms hereof) and to pay interest (“Interest”) on any outstanding
Principal at the applicable Interest Rate from the date set out above as the Issuance Date (the “Issuance Date”)
until the same becomes due and payable, upon the Maturity Date or acceleration, conversion, redemption or otherwise (in each case
in accordance with the terms hereof).

 

The
Original Principal Amount is $105,000 (one hundred five thousand) plus accrued and unpaid interest and any other fees. The Consideration
is $100,000 (one hundred thousand) payable by wire transfer (there exists a $5,000 original issue discount (the “OID”)).
The Holder shall pay $100,000 of Consideration upon closing of this Note.

 

1.       GENERAL
TERMS

 

(a)       Payment
of Principal. The “Maturity Date” shall be six months from the date of each payment of Consideration, as
may be extended at the option of the Holder in the event that, and for so long as, an Event of Default (as defined below) shall
not have occurred and be continuing on the Maturity Date (as may be extended pursuant to this Section 1) or any event shall not
have occurred and be continuing on the Maturity Date (as may be extended pursuant to this Section 1) that with the passage of
time and the failure to cure would result in an Event of Default.

 

     

     

    

 

(b)       Interest.
A one-time interest charge of seven percent (7%) (“Interest Rate”) shall be applied on the Issuance Date to
the Original Principal Amount. Interest hereunder shall be paid on the Maturity Date (or sooner as provided herein) to the Holder
or its assignee in whose name this Note is registered on the records of the Company regarding registration and transfers of Notes
in cash or converted into Common Stock at the Conversion Price provided the Equity Conditions are satisfied.

 

(c)       Security.
This Note shall not be secured by any collateral or any assets pledged to the Holder

 

2.       EVENTS
OF DEFAULT. 

 

(a)       An
“Event of Default”, wherever used herein, means any one of the following events (whatever the reason and whether
it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court,
or any order, rule or regulation of any administrative or governmental body):

 

(i)      The
Company’s failure to pay to the Holder any amount of Principal, Interest, or other amounts when and as due under this Note (including,
without limitation, the Company’s failure to pay any redemption payments or amounts hereunder);

 

(ii)     A
Conversion Failure as defined in section 3(b)(ii)

 

(iii)    The
Company or any subsidiary of the Company shall commence, or there shall be commenced against the Company or any subsidiary of
the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the
Company or any subsidiary of the Company commences any other proceeding under any reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect
relating to the Company or any subsidiary of the Company or there is commenced against the Company or any subsidiary of the Company
any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 61 days; or the Company or any subsidiary
of the Company is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding
is entered; or the Company or any subsidiary of the Company suffers any appointment of any custodian, private or court appointed
receiver or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of sixty
one (61) days; or the Company or any subsidiary of the Company makes a general assignment for the benefit of creditors; or the
Company or any subsidiary of the Company shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay,
its debts generally as they become due; or the Company or any subsidiary of the Company shall call a meeting of its creditors
with a view to arranging a composition, adjustment or restructuring of its debts; or the Company or any subsidiary of the Company
shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or
any corporate or other action is taken by the Company or any subsidiary of the Company for the purpose of effecting any of the
foregoing;

 

(iv)   The
Company or any subsidiary of the Company shall default in any of its obligations under any other Note or any mortgage, credit
agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or
by which there may be secured or evidenced any indebtedness for borrowed money or money due under any long term leasing or factoring
arrangement of the Company or any subsidiary of the Company in an amount exceeding $100,000, whether such indebtedness now exists
or shall hereafter be created; and

 

(v)    The
Common Stock is suspended or delisted for trading on the Over the Counter OTCQB Venture Marketplace or OTCPink Open Marketplace
(the “Primary Market”).

 

    	 	2	 

     

    

 

(vi)   The
Company loses its ability to deliver shares via “DWAC/FAST” electronic transfer.

 

(vii)  The
Company loses its status as “DTC Eligible.”

 

(viii) The
Company shall become late or delinquent in its filing requirements for quarterly and annual reports as a fully-reporting issuer
registered with the Securities & Exchange Commission.

 

(ix)    The
Company shall fail to reserve and keep available out of its authorized Common Stock a number of shares equal to at least 4 (four)
times the full number of shares of Common Stock issuable upon conversion of all outstanding amounts under this Note.

 

(b)       Upon
the occurrence of any Event of Default that has not been cured within five calendar days, the Outstanding Balance shall immediately
increase to 125% of the Outstanding Balance immediately prior to the occurrence of the Event of Default (the “Default Effect”)
and a daily penalty of $1,000 (one thousand) will accrue until the default is remedied. The Default Effect shall automatically
apply upon the occurrence of an Event of Default without the need for any party to give any notice or take any other action.

 

3.       CONVERSION
OF NOTE.If an Event of Default has occurred and is not cured within five calendar days following the Event of Default
(a “Cure Faliure”), the Holder shall have the right, but not the obligation, to convert the Outstanding Balance into
shares of the Company’s Common Stock, on the terms and conditions set forth in this Section 3.

 

(a)       Conversion
Right. Subject to the provisions of Section 3(c), at any time or times on or after the Cure Failure, the Holder shall be entitled
to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into fully paid and nonassessable shares
of Common Stock in accordance with Section 3(b), at the Conversion Price (as defined below). The number of shares of Common Stock
issuable upon conversion of any Conversion Amount pursuant to this Section 3(a) shall be equal to the quotient of dividing the
Conversion Amount by the Conversion Price. The Company shall not issue any fraction of a share of Common Stock upon any conversion.
If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of
a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer agent fees, legal fees, costs
and any other fees or costs that may be incurred or charged in connection with the issuance of shares of the Company’s Common
Stock to the Holder arising out of or relating to the conversion of this Note.

 

(i)      “Conversion
Amount” means the portion of the Original Principal Amount and Interest to be converted, plus any penalties, redeemed
or otherwise with respect to which this determination is being made.

 

(ii)     “Conversion
Price” shall equal 65% of the average of the three daily lowest trades occurring during the fifteen (15) consecutive
Trading Days immediately preceding the applicable Conversion Date on which the Holder elects to convert all or part of this Note,
subject to adjustment as provided in this Note.

 

    	 	3	 

     

    

 

(b)       Mechanics
of Conversion.

 

(i)      Optional
Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a “Conversion Date”),
the Holder shall (A) transmit by email, facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m., New York, NY
Time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit A (the “Conversion
Notice”) to the Company. On or before the third Business Day following the date of receipt of a Conversion Notice (the
“Share Delivery Date”), the Company shall (A) if legends are not required to be placed on certificates of Common
Stock pursuant to the then existing provisions of Rule 144 of the Securities Act of 1933 (“Rule 144”) and provided
that the Transfer Agent is participating in the Depository Trust Company’s (“DTC”) Fast Automated Securities
Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder’s
or its designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system or (B) if the Transfer Agent
is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address as specified in the
Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock
to which the Holder shall be entitled which certificates shall not bear any restrictive legends unless required pursuant the Rule
144. If this Note is physically surrendered for conversion and the outstanding Principal of this Note is greater than the Principal
portion of the Conversion Amount being converted, then the Company shall, upon request of the Holder, as soon as practicable and
in no event later than three (3) Business Days after receipt of this Note and at its own expense, issue and deliver to the holder
a new Note representing the outstanding Principal not converted. The Person or Persons entitled to receive the shares of Common
Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares
of Common Stock upon the transmission of a Conversion Notice.

 

(ii)    Company’s
Failure to Timely Convert. If within five (5) Trading Days after the Company’s receipt of the facsimile or email copy of a
Conversion Notice the Company shall fail to issue and deliver to Holder via “DWAC/FAST” electronic transfer the number
of shares of Common Stock to which the Holder is entitled upon such holder’s conversion of any Conversion Amount (a “Conversion
Failure”), the Original Principal Amount of the Note shall increase by $2,000 per day until the Company issues and delivers
a certificate to the Holder or credit the Holder’s balance account with DTC for the number of shares of Common Stock to which
the Holder is entitled upon such holder’s conversion of any Conversion Amount (under Holder’s and Company’s expectation
that any damages will tack back to the Issuance Date). Company will not be subject to any penalties once its transfer agent
processes the shares to the DWAC system. If the Company fails to deliver shares in accordance with the timeframe stated in
this Section, resulting in a Conversion Failure, the Holder, at any time prior to selling all of those shares, may rescind any
portion, in whole or in part, of that particular conversion attributable to the unsold shares and have the rescinded conversion
amount returned to the Outstanding Balance with the rescinded conversion shares returned to the Company (under Holder’s
and Company’s expectations that any returned conversion amounts will tack back to the original date of the Note).

 

(iii)   DWAC/FAST
Eligibility.If the Company fails for any reason to deliver to the Holder the Shares by DWAC/FAST electronic transfer (such
as by delivering a physical stock certificate), or if there is a Conversion Failure as defined in Section 3(b)(ii), and if the
Holder incurs a Market Price Loss, then at any time subsequent to incurring the loss the Holder may provide the Company written
notice indicating the amounts payable to the Holder in respect of the Market Price Loss and the Company must make the Holder whole
by either of the following options at Holder’s election:

 

Market
Price Loss = [(High trade price for the period between the day of conversion and the day the shares clear in the Holder’s
brokerage account) x (Number of shares receivable from the conversion)] – [(Net Sales price realized by Holder) x (Number
of shares receivable from the conversion)].

 

Option
A – Pay Market Price Loss in Cash. The Company must pay the Market Price 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.

 

    	 	4	 

     

    

 

Option
B – Add Market Price Loss to Outstanding Balance. The Company must pay the Market Price Loss by adding the Market Price
Loss to the Outstanding Balance (under Holder’s and the Company’s expectation that any Market Price Loss amounts will
tack back to the Issuance Date).

 

In
the case that conversion shares are not deliverable by DWAC/FAST electronic transfer an additional 10% discount to the Conversion
Price will apply.

 

(iv)   DTC
Eligibility & Sub-Penny. If the Company fails to maintain its status as “DTC Eligible” for any reason, or,
if the effective Conversion Price as calculated in Section 3(a)(ii) is less than $0.01 at any time (regardless of whether or not
a Conversion Notice has been submitted to the Company), the Principal Amount of the Note shall increase by ten thousand dollars
($10,000) (under Holder’s and Company’s expectation that any Principal Amount increase will tack back to the Issuance
Date). In addition, the Conversion Price shall be permanently redefined to equal 50% of the average of the three daily lowest
trades occurring during the fifteen (15) consecutive Trading Days immediately preceding the applicable Conversion Date on which
the Holder elects to convert all or part of this Note, subject to adjustment as provided in this Note.

 

(v)    Par
Value True-Up. In the event that the Conversion Price is less than Par Value on the Conversion Date, the Holder may elect
to submit a Conversion Notice (attached hereto as Exhibit A) with a conversion price equal to the Company’s Par Value. In
addition, upon written notice from the Holder in the form attached hereto as Exhibit B (the “True-Up Notice”),
the Holder may require the Company, at the Holder’s election, to either (A) issue and deliver to the Holder a number of
shares of Common Stock as equals (X) the Conversion Amount divided by 60% of the lowest trade occurring during the twenty five
(25) consecutive Trading Days immediately preceding the applicable Conversion Date, less (Y) the Conversion Amount divided by
the Par Value (Any additional shares of Common Stock issuable pursuant to this Section 3(b)(v) shall be referred to herein as
“True-Up Shares”), or (B) add to the Outstanding Balance a dollar amount equal to the number of True-Up Shares (as
calculated above) multiplied by the high trade price on the Conversion Date (Any dollar amount added to the Outstanding Balance
pursuant to this Section 3(b)(v) shall be referred to herein as the “True-Up Balance”) (under Holder’s and the
Company’s expectation that any True-Up Balance amounts will tack back to the Issuance Date).

 

(vi)   Book-Entry.
Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Note in accordance with the
terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless (A) the full Conversion
Amount represented by this Note is being converted or (B) the Holder has provided the Company with prior written notice (which
notice may be included in a Conversion Notice) requesting reissuance of this Note upon physical surrender of this Note. The Holder
and the Company shall maintain records showing the Principal and Interest converted and the dates of such conversions or shall
use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this
Note upon conversion.

 

    	 	5	 

     

    

 

(c)       Limitations
on Conversions or Trading.

 

(i)     Beneficial
Ownership. The Company shall not effect any conversions of this Note and the Holder shall not have the right to convert any
portion of this Note or receive shares of Common Stock as payment of interest hereunder to the extent that after giving effect
to such conversion or receipt of such interest payment, the Holder, together with any affiliate thereof, would beneficially own
(as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder) in excess of 4.99% of
the number of shares of Common Stock outstanding immediately after giving effect to such conversion or receipt of shares as payment
of interest. Since the Holder will not be obligated to report to the Company the number of shares of Common Stock it may hold
at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of shares of Common Stock in
excess of 4.99% of the then outstanding shares of Common Stock without regard to any other shares which may be beneficially owned
by the Holder or an affiliate thereof, the Holder shall have the authority and obligation to determine whether the restriction
contained in this Section will limit any particular conversion hereunder and to the extent that the Holder determines that the
limitation contained in this Section applies, the determination of which portion of the principal amount of this Note is convertible
shall be the responsibility and obligation of the Holder. If the Holder has delivered a Conversion Notice for a principal amount
of this Note that, without regard to any other shares that the Holder or its affiliates may beneficially own, would result in
the issuance in excess of the permitted amount hereunder, the Company shall notify the Holder of this fact and shall honor the
conversion for the maximum principal amount permitted to be converted on such Conversion Date in accordance with Section 3(a)
and, any principal amount tendered for conversion in excess of the permitted amount hereunder shall remain outstanding under this
Note. In the event that the Market Capitalization of the Company falls below $2,500,000, the term “4.99%” above shall
be permanently replaced with “9.99%”. “Market Capitalization” shall be defined as the product of (a) the
closing price of the Common Stock of the Common stock multiplied by (b) the number of shares of Common Stock outstanding as reported
on the Company’s most recently filed Form 10-K or Form 10-Q. The provisions of this Section may be waived by Holder upon
not less than 65 days prior written notification to the Company.

 

(ii)     Capitalization.
So long as this as this Note is outstanding, upon written request of the Holder, the Company shall furnish to the Holder the
then-current number of common shares issued and outstanding, the then-current number of common shares authorized, and the then-current
number of shares reserved for third parties.

 

(d)       Other
Provisions.

 

(i)     Share
Reservation.The Company shall at all times reserve and keep available out of its authorized Common Stock a number of shares
equal to at least 4 (four) times the full number of shares of Common Stock issuable upon conversion of all outstanding amounts
under this Note; and within 3 (three) Business Days following the receipt by the Company of a Holder’s notice that such minimum
number of shares of Common Stock is not so reserved, the Company shall promptly reserve a sufficient number of shares of Common
Stock to comply with such requirement. The Company will at all times reserve at least 40,000,000 shares of Common Stock for conversion.

 

(ii)     Repayment.During
the first 180 days this Note is in effect, upon 10 business days’ notice to Holder (“Notice Period”), the Company
may redeem this Note by paying to the Holder an amount as follows (“Redemption Amount”): (i) if the redemption is
within the first 90 days this Note is in effect, then for an amount equal to 100% of the Outstanding Balance of this Note along
with any interest that has accrued during that period, (ii) if the redemption is on or between the 91st and 120th
day this Note is in effect, then for an amount equal to 105% of the Outstanding Balance of this Note along with any accrued
interest, (iii) if the redemption is on or between the 121st and 150th day this Note is in effect, then
for an amount equal to 115% of the Outstanding Balance of this Note along with any accrued interest., (iv) if the redemption is
on or between the 151st and 180th day this Note is in effect, then for an amount equal to 120% of the Outstanding
Balance of this Note along with any accrued interest. This Note may not be redeemed after 180 days without written consent of
the Holder. The redemption must be closed and paid for within 3 business days following the Notice Period or the redemption will
be invalid and the Company may not redeem this Note. The Holder may convert this Note pursuant to the terms hereof at all times,
including during the Notice Period, until the Redemption Amount has been received in full.

 

    	 	6	 

     

    

 

(iii)   All
calculations under this Section 3 shall be rounded up to the nearest $0.00001 or whole share.

 

(iv)   Nothing
herein shall limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section 2 herein for the
Company’s failure to deliver certificates representing shares of Common Stock upon conversion within the period specified herein
and such Holder shall have the right to pursue all remedies available to it at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief, in each case without the need to post a bond or provide other security.
The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof
or under applicable law.

 

4.       REISSUANCE
OF THIS NOTE.

 

(a)       Assignability.
The Company may not assign this Note. This Note will be binding upon the Company and its successors and will inure to the
benefit of the Holder and its successors and assigns and may be assigned by the Holder to anyone of its choosing without Company’s
approval.

 

(b)       Lost,
Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by
the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the
Company shall execute and deliver to the Holder a new Note representing the outstanding Principal.

 

5.       NOTICES.Any
notices, consents, waivers or other communications required or permitted to be given under the terms hereof must be in writing
and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile
(provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party) (iii)
upon receipt, when sent by email; or (iv) one (1) Trading Day after deposit with a nationally recognized overnight delivery service,
in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications
shall be those set forth in the communications and documents that each party has provided the other immediately preceding the
issuance of this Note or at such other address and/or facsimile number and/or to the attention of such other person as the recipient
party has specified by written notice given to each other party three (3) Business Days prior to the effectiveness of such change.
Written confirmation of receipt (i) given by the recipient of such notice, consent, waiver or other communication, (ii) mechanically
or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image
of the first page of such transmission or (iii) provided by a nationally recognized overnight delivery service, shall be rebuttable
evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

 

The
addresses for such communications shall be:

 

If
to the Company, to:

  

ProGreen
US, Inc.

6443,
Inkster Road. Ste 170-D

Nloomfield
Township, MI 48301

Email:
Jan@ProGreenUS.com

 

If
to the Holder:

 

Lucas
Hoppel

Phone:
858-232-5110

Email:
Luke@LukeHoppel.com

 

    	 	7	 

     

    

 

6.       APPLICABLE
LAW AND VENUE. This Note shall be governed by and construed in accordance with the laws of the State of Nevada, without giving
effect to conflicts of laws thereof. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the city of New York,
in the State of New York. Both parties and the individuals signing this Agreement agree to submit to the jurisdiction of such
courts.

 

7.       WAIVER.
Any waiver by 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 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. Any waiver must be in writing.

 

8.       LIQUIDATED
DAMAGES. Holder and Company agree that in the event Company fails to comply with any of the terms or provisions of this Note,
Holder’s damages would be uncertain and difficult (if not impossible) to accurately estimate because of the parties’ inability
to predict future interest rates, future share prices, future trading volumes and other relevant factors. Accordingly, Holder
and Company agree that any fees, balance adjustments, default interest or other charges assessed under this Note are not penalties
but instead are intended by the parties to be, and shall be deemed, liquidated damages (under Holder’s and Company’s expectations
that any such liquidated damages will tack back to the Closing Date for purposes of determining the holding period under Rule
144).

 

[Signature
Page Follows]

 

    	 	8	 

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Convertible Note to be duly executed by a duly authorized officer as of the date
set forth above.

 

	 	COMPANY:
	 	 	 
	 	ProGreen
    US, Inc.
	 	 	 
	 	By:	/s/
    Jan Telander
	 	Name:	Jan
    Telander
	 	Title:	Chief
    Executive Officer

 

	 	HOLDER:
	 	 	 
	 	Lucas Hoppel
	 	 
	 	By:	/s/
    Lucas Hoppel

 

 

[Signature
Page to Convertible Note No. PGUS-2]

 

    	 	9	 

     

    

 

EXHIBIT
A

 

CONVERSION
NOTICE

 

[Company
Contact, Position]

[Company
Name] 

[Company
Address]

[Contact
Email Address}

 

The
undersigned hereby elects to convert a portion of the $________ Convertible Note _______ issued to Lucas Hoppel on ____________
into Shares of Common Stock of ____________ according to the conditions set forth in such Note as of the date written below.

 

By
accepting this notice of conversion, you are acknowledging that the number of shares to be delivered represents less than 10%
(ten percent) of the common stock outstanding.  If the number of shares to be delivered represents more than 9.99% of
the common stock outstanding, this conversion notice shall immediately automatically extinguish and debenture Holder must be immediately
notified.

 

Date
of Conversion:  _____________________

 

Conversion
Amount:   ____________________

 

Conversion
Price:   ______________________

 

Shares
to be Delivered:  ___________________

 

Shares
delivered in name of:

  

Lucas
Hoppel

 

Signature:

 

     

     

    

 

EXHIBIT
B

 

TRUE-UP
NOTICE

 

[Company Contact, Position]

[Company Name]  

[Company Address]  

[Contact Email Address}

 

The
undersigned hereby gives notice to [Company Name], a ______ corporation (the “Company”), pursuant to that certain
Note dated _______ ___, 20__ by and between the Company and the Holder (the “Note”), that the Holder elects to:

 

	 	___	Receive
    fully paid and non-assessable True-Up Shares pursuant to Section 3(b)(v) of the Note (such Additional Origination Shares shall
    be calculated as set forth below), or

 

	 	___	Add
    to the Outstanding Balance a dollar amount equal to the True-Up Amount (such True-Up Amount shall be calculated as set forth
    below).

 

The
number of True-Up Shares Holder is entitled to receive is calculated as follows:

 

Conversion
Amount ($___) / ___% of the lowest trade occurring during the _________ (__) consecutive Trading Days immediately preceding the
applicable Conversion Date ($_.__) - Conversion Amount ($___) divided by the Par Value ($_.__) =

 

____________
True-Up Shares

 

The
amount of True-Up Balance to be added to the Outstanding Balance is calculated as follows:

 

Number
of True-Up Shares (_____) * high trade price on the Conversion Date ($_.__) =

 

____________
True-Up Balance

 

Shares
delivered in name of:

 

Lucas Hoppel

 

Signature:Exhibit 10.38

 

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of January 20, 2017, is entered into by and
between progreen us, Inc., a Delaware corporation, (the “Company”),
and Lucas Hoppel (the “Buyer”).

 

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

 

B.       Upon
the terms and conditions stated in this Agreement, the Buyer desires to purchase and the Company desires to issue and sell, upon
the terms and conditions set forth in this Agreement (i) a Promissory Note of the Company, in the form attached hereto as Exhibit
A (the “Note”), in the original principal amount of $105,000.00 (the “Original Principal Amount”)
(together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance
with the terms thereof, the “Note”) and (ii) up to one million eight hundred fifty two thousand (1,852,000)
restricted common shares in the Company (“Inducement Shares”). Nine hundred twenty six thousand (926,000) shares will
be delivered upon the execution of this document. If the note hasn’t been repaid in full and the share price at any time
falls below $0.0125 then the company will issue an additional nine hundred twenty six thousand (926,000) shares. The share are
to be delivered to Buyer, within 7 (seven) calendar days following the Closing Date and (iii) a five-year share purchase warrant
entitling the Buyer to acquire common shares of the Company (“Common Stock”), in the form attached hereto as
Exhibit B (the “Warrant”).

 

NOW
THEREFORE, the Company and the Buyer hereby agree as follows:

 

1.       Purchase
and Sale. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase
from the Company (i) the Note in the original principal amount of $105,000, and (ii) up to one million eight hundred fifty two
thousand (1,852,000) Inducement Shares and (iii) 1,000,000 (one million) Warrants to purchase shares of Common Stock. (the “Securities”).

 

1.1.       Form
of Payment. On the Closing Date, (i) the Buyer shall pay the purchase price of $100,000 (the “Purchase Price”)
for the Securities to be issued and sold to it at the Closing (as defined below) by wire transfer of immediately available funds
to a Company account designated by the Company, in accordance with the Company’s written wiring instructions, against delivery
of the Securities, and (ii) the Company shall deliver such duly executed Securities on behalf of the Company, to the Buyer, against
delivery of such Purchase Price.

 

1.2.       Closing
Date. The date and time of the issuance and sale of the Securities pursuant to this Agreement (the “Closing Date”)
shall be on or about January 20, 2017, or such other mutually agreed upon time. The closing of the transactions contemplated by
this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the
parties.

 

1.3.       Share
Reservation. The Company shall at all times require its transfer agent to establish a reserve of shares of its authorized
but unissued and unreserved Common Stock in the amount of at least 40,000,000 shares for purposes of exercise of the Warrant or
conversion of the Note. The Company shall cause the Transfer Agent to agree that it will not reduce the reserve under any circumstances,
unless such reduction is pre-approved in writing by the Buyer.

 

     

     

    

 

2.       Buyer’s
Investment Representations; Governing Law; Miscellaneous.

 

2.1
Buyer’s Investment Representations.

 

(a)       This
Agreement is made in reliance upon the Buyer’s representation to the Company, which by its acceptance hereof Buyer hereby
confirms, that the Securities to be received by it will be acquired for investment for its own account, not as a nominee or agent,
and not with a view to the sale or distribution of any part thereof, and that it has no present intention of selling, granting
participation in, or otherwise distributing the same, but subject nevertheless to any requirement of law that the disposition
of its property shall at all times be within its control.

 

(b)       The
Buyer understands that the Securities are not registered under the 1933 Act, on the basis that the sale provided for in this Agreement
and the issuance of securities hereunder is exempt from registration under the 1933 Act pursuant to Section 4(a)(2) thereof, and
that the Company’s reliance on such exemption is predicated on the Buyer’s representations set forth herein. The Buyer
realizes that the basis for the exemption may not be present if, notwithstanding such representations, the Buyer has in mind merely
acquiring shares of the Securities for a fixed or determinable period in the future, or for a market rise, or for sale if the
market does not rise. The Buyer does not have any such intention.

 

(c)       The
Buyer understands that the Securities may not be sold, transferred, or otherwise disposed of without registration under the 1933
Act or an exemption therefrom, and that in the absence of an effective registration statement covering the Securities or an available
exemption from registration under the 1933 Act, the Stock must be held indefinitely. In particular, the Buyer is aware that the
Securities may not be sold pursuant to Rule 144 or Rule 701 promulgated under the 1933 Act unless all of the conditions of the
applicable Rules are met. Among the conditions for use of Rule 144 is the availability of current information to the public about
the Company. Such information is not now available, and the Company has no present plans to make such information available. The
Buyer represents that, in the absence of an effective registration statement covering the Securities, it will sell, transfer,
or otherwise dispose of the Securities only in a manner consistent with its representations set forth herein and then only in
accordance with the provisions of Section 5(d) hereof.

 

(d)       The
Buyer agrees that in no event will it make a transfer or disposition of any of the Securities (other than pursuant to an effective
registration statement under the 1933 Act), unless and until (i) the Buyer shall have notified the Company of the proposed disposition
and shall have furnished the Company with a statement of the circumstances surrounding the disposition, and (ii) if requested
by the Company, at the expense of the Buyer or transferee, the Buyer shall have furnished to the Company either (A) an opinion
of counsel, reasonably satisfactory to the Company, to the effect that such transfer may be made without registration under the
1933 Act or (B) a “no action” letter from the Securities and Exchange Commission to the effect that the transfer of
such securities without registration will not result in a recommendation by the staff of the Securities and Exchange Commission
that action be taken with respect thereto. The Company will not require such a legal opinion or “no action” letter
in any transaction in compliance with Rule 144.

 

    	 	2	 

     

    

 

(e)       The
Buyer represents and warrants to the Company that it is an “accredited investor” within the meaning of Securities
and Exchange Commission Rule 501 of Regulation D, as presently in effect and, for the purpose of Section 25102(f) of the California
Corporations Code, he or she is excluded from the count of “purchasers” pursuant to Rule 260.102.13 thereunder.

 

2.2       Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard
to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the federal courts located in Detroit, Michigan. The parties to this Agreement hereby
irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense
based on lack of jurisdiction or venue or based upon forum non conveniens. In the event that any provision of this Agreement
or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law,
then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform
with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the
validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process
and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction
Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such
party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any other manner permitted by law. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST,
A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

2.3       Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party.

 

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

 

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

 

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

 

    	 	3	 

     

    

 

2.7       Notices.
Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall be deemed effectively
given on the earliest of:

 

2.7.1       the
date delivered, if delivered by personal delivery as against written receipt therefor or by e-mail to an executive officer, or
by confirmed facsimile,

 

2.7.2       the
fifth Trading Day after deposit, postage prepaid, in the United States Postal Service by registered or certified mail, or

 

2.7.3       the
third Trading Day after mailing by domestic or international express courier, with delivery costs and fees prepaid, in each case,
addressed to each of the other parties thereunto entitled at the following addresses (or at such other addresses as such party
may designate by ten (10) calendar days’ advance written notice similarly given to each of the other parties hereto):

 

If
to the Company, to:

 

ProGreen
US, Inc.

6443
Inkster Rd., Ste 170-D

Bloomfield
Township, MI 48301

Email:
Jan@ProGreenUS.com

 

 

If
to the Buyer:

 

Lucas
Hoppel

295
Palmas Inn Way

Ste
104 PMB 346

Email:
Luke@LukeHoppel.com

 

    	 	4	 

     

    

 

2.8       Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.
Notwithstanding anything to the contrary herein, the rights, interests or obligations of the Company hereunder may not be assigned,
by operation of law or otherwise, in whole or in part, by the Company without the prior written consent of the Buyer, which consent
may be withheld at the sole discretion of the Buyer; provided, however, that in the case of a merger, sale of substantially
all of the Company’s assets or other corporate reorganization, the Buyer shall not unreasonably withhold, condition or delay
such consent. This Agreement or any of the severable rights and obligations inuring to the benefit of or to be performed by Buyer
hereunder may be assigned by Buyer to a third party, including its financing sources, in whole or in part, without the need to
obtain the Company’s consent thereto.

 

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

 

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

 

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

 

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

 

2.13      Buyer’s
Rights and Remedies Cumulative. All rights, remedies, and powers conferred in this Agreement and the Transaction Documents
on the Buyer are cumulative and not exclusive of any other rights or remedies, and shall be in addition to every other right,
power, and remedy that the Buyer may have, whether specifically granted in this Agreement or any other Transaction Document, or
existing at law, in equity, or by statute; and any and all such rights and remedies may be exercised from time to time and as
often and in such order as the Buyer may deem expedient.

 

2.14      Ownership
Limitation. If at any time after the Closing, the Buyer shall or would receive shares of Common Stock in payment of interest
or principal under Note, upon exercise of the Warrant, so that the Buyer would, together with other shares of Common Stock held
by it or its Affiliates, own or beneficially own by virtue of such action or receipt of additional shares of Common Stock a number
of shares exceeding 9.99% of the number of shares of Common Stock outstanding on such date (the “Maximum Percentage”),
the Company shall not be obligated and shall not issue to the Buyer shares of Common Stock which would exceed the Maximum Percentage,
but only until such time as the Maximum Percentage would no longer be exceeded by any such receipt of shares of Common Stock by
the Buyer. The foregoing limitations are enforceable, unconditional and non-waivable and shall apply to all Affiliates and assigns
of the Buyer.

 

Attorneys’
Fees and Cost of Collection. In the event of any action at law or in equity to enforce or interpret the terms of this Agreement
or any of the other Transaction Documents, the parties agree that the party who is awarded the most money shall be deemed the
prevailing party for all purposes and shall therefore be entitled to an additional award of the full amount of the attorneys’
fees and expenses paid by such prevailing party in connection with the litigation and/or dispute without reduction or apportionment
based upon the individual claims or defenses giving rise to the fees and expenses. Nothing herein shall restrict or impair a court’s
power to award fees and expenses for frivolous or bad faith pleading.

 

[Remainder
of page intentionally left blank; signature page to follow]

 

    	 	5	 

     

    

 

SUBSCRIPTION
AMOUNT:

 

	Original Principal Amount of Note:	 	$	105,000.00	 
	Purchase Price:	 	$	100,000.00	 

 

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

 

THE
COMPANY:

 

	ProGreen
    US, Inc.	 
	 	 
	By:	/s/
    Jan Telander	 
	 	Mr.
    Jan Telander	 
	 	Chief
    Executive Officer	 
	 	 	 
	THE
    BUYER:	 
	 	 	 
	Lucas
    Hoppel	 
	 	 	 
	By:	/s/
    Lucas Hoppel	 

 

    	 	6	 

     

    

 

EXHIBIT
A

 

NOTE

 

 

 

 

 

 

 

 

 

     

     

    

 

EXHIBIT
B

 

WARRANT

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