Document:

Monaker Group, Inc. 8-K

Exhibit 10.4

1 

THIS WARRANT AND THE
SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
APPLICABLE STATE SECURITIES LAW. THIS WARRANT OR SUCH SHARES MAY NOT BE SOLD, DISTRIBUTED, PLEDGED, OFFERED FOR SALE, ASSIGNED,
TRANSFERRED, OR OTHERWISE DISPOSED OF UNLESS: (A) THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE
STATE SECURITIES LAW COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITIES; (B) THE COMPANY (DEFINED BELOW) RECEIVES AN
OPINION OF LEGAL COUNSEL FOR THE HOLDER OF THIS WARRANT STATING THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION AND SUCH OPINION
IS IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY; OR (C) PURSUANT TO RULE 144 UNDER SUCH ACT.

WARRANT

TO PURCHASE COMMON STOCK OF

MONAKER GROUP, INC.

THIS IS TO CERTIFY that, as of the 26th
of January 2017 for value received and subject to the provisions hereinafter set forth, [________________],
or its assigns (the “Holder”), is entitled to purchase from MONAKER GROUP, INC., a Nevada corporation (the “Company”),
at a price of $2.00 per share, subject to adjustment as herein provided (as may be adjusted, the “Warrant Price”),
[_________] shares of Common Stock of the Company (“Common Stock”), less the number of shares purchased
by the Holder upon the exercise of this Warrant from time to time as noted on Schedule A hereto (the number of shares available
for purchase hereunder at any time, subject to adjustment as hereinafter provided, is referred to as the “Warrant Number”).

1.       

Exercise of Warrant.

1.1.       

Terms of Exercise. Subject to the
conditions hereinafter set forth, this Warrant may be exercised in whole at any time, or in part from time to time, by the Holder
hereof, by the surrender of this Warrant, together with written instructions as to the number of shares to be purchased, at the
principal office of the Company Weston, Florida or at such other office as the Company may designate by written notice to the Holder
hereof within the above-mentioned period and upon payment to the Company of the aggregate Warrant Price (or the proportionate part
thereof if exercised in part) for the shares so purchased in current funds. This Warrant and all rights hereunder shall expire
and shall be null and void to the extent not exercised before this Warrant expires 25th of January 2020
(the “Expiration Date”).

1.2.       

Payment of Exercise Price; Payment
for the Warrants may be made in cash, by certified or official bank check.

    	 

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1.3.       

Partial Exercise. Each time this
Warrant shall be exercised in respect of fewer than all of the shares of Common Stock at the time purchasable hereunder (and there
shall be no limitation on the number of times the Holder may partially exercise this Warrant), and upon surrender of this Warrant
by the Holder to the Company upon exercise, then, at the election of the Company, either (i) the Holder hereof shall be entitled
to receive a replacement Warrant covering the number of shares in respect of which this Warrant shall not have been exercised and
setting forth the aggregate Warrant Price applicable to such shares, which replacement Warrant shall be identical in all respects
to this Warrant except for the date of issuance and the number of shares issuable upon the exercise thereof, or (ii) the Company
shall make a notation on Schedule A hereto reflecting the number of shares of Common Stock purchased upon any exercise hereof.

1.4       

Issuance of Certificate. The shares
of Common Stock so purchased shall be deemed to be issued to the Holder, as the record owner of such shares, as of the close of
business on the date on which this Warrant shall have been surrendered, the completed exercise agreement shall have been delivered,
and payment shall have been made for such shares as set in Section 1.2 above. Certificates for the shares of Common Stock
so purchased, representing the aggregate number of shares specified in the exercise agreement, shall be delivered to the Holder
within a reasonable time, not exceeding ten (10) business days, after this Warrant shall have been so exercised. The certificates
so delivered shall be in such denominations as may be reasonably requested by the Holder and shall be registered in the name of
the Holder. If this Warrant shall have been exercised only in part, then, unless this Warrant has expired, the Company shall, at
its expense, at the time of delivery of such certificates, deliver to the Holder a new warrant representing the number of shares
of Common Stock with respect to which this Warrant shall not then have been exercised.

1.5       

Exercise Period. This Warrant may
be exercised any time before 5:00 p.m., Eastern Standard time, on the Expiration Date.

2.       

Reservation of Common Stock.
The Company covenants and agrees that during the period within which the rights represented by this Warrant may be exercised, the
Company will at all times have authorized, and in reserve, a sufficient number of shares of its Common Stock to provide for the
exercise of the rights represented by this Warrant.

3.       

Protection Against Dilution.
The Warrant Number is subject to adjustment from time to time upon the occurrence of the events enumerated in, or as otherwise
provided in, this Section 3.

3.1       

Adjustment for Change in Capital
Stock. If the Company:

(1)       

pays a dividend or makes a distribution
on its Common Stock in shares of its Common Stock;

(2)       

subdivides or reclassifies its outstanding
shares of Common Stock into a greater number of shares;

(3)       

combines or reclassifies its outstanding
shares of Common Stock into a smaller number of shares;

(4)       

makes a distribution on its Common
Stock in shares of capital stock other than Common Stock; or

    	 

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(5)       

issues by reclassification of its
Common Stock any shares of its capital stock;

then the Warrant Number in effect immediately prior to such
action shall be proportionately adjusted so that the Holder may receive the aggregate number and kind of shares of capital stock
of the Company or other capital stock which such Holder would have owned immediately following such action if such Warrant had
been exercised immediately prior to such action. If, as a result of any adjustment pursuant to this Section 3.1, the Holder shall
become entitled to receive shares of two or more classes or series of securities of the Company or otherwise, the Board of Directors
of the Company shall equitably determine the allocation of the adjusted Warrant Price between or among such classes or series.

The adjustment shall become effective
immediately after the record date in the case of a dividend or distribution and immediately after the effective date in the case
of a subdivision, combination or reclassification.

Such adjustment shall be made successively
whenever any event listed above shall occur.

3.2       

Notice of Adjustment. Whenever
the Warrant Number is adjusted, the Company shall provide notice thereof to the Holder.

3.3       

Additional Adjustments.
In the event of any and all adjustments to the Warrant Number in accordance with this Section 3, the per share Warrant Price
shall be adjusted so that it is equal to the quotient of (a) the aggregate Warrant Price and (b) the Warrant Number as
adjusted.

4.       

Mergers, Consolidations, Sales; Non-Impairment
of Rights. The Company will not, by amendment of its Articles of Incorporation or through any reorganization, recapitalization,
transfer of assets, consolidation, merger, dissolution, issuance or sale of securities or any other voluntary action, avoid or
seek to avoid the performance of any of the terms of this Warrant, but will at all times in good faith take all necessary action
to carry out the intent of all such terms. Without limiting the generality of the foregoing, the Company (a) will not cause
the par value of any securities receivable on exercise of this Warrant to be in excess of the amount payable therefor on such exercise,
and (b) will take all action as may be necessary or appropriate so that the Company may validly and legally issue fully paid and
nonassessable shares (or other securities or property deliverable hereunder) upon the exercise of this Warrant.

    	 

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This Warrant shall bind the successors
and assigns of the Company. In the case of any consolidation or merger of the Company with another entity, or the sale of all or
substantially all of its assets to another entity, or any reorganization or reclassification of the Common Stock or other equity
securities of the Company (except a split up or combination, provision for which is made in Section 3), then, as a condition of
such consolidation, merger, sale, reorganization or reclassification, lawful and adequate provision shall be made whereby the Holder
of this Warrant shall thereafter have the right to receive upon the basis and upon the terms and conditions specified herein and
in lieu of the shares of Common Stock immediately theretofore purchasable hereunder, such shares of stock, securities or assets
as may (by virtue of such consolidation, merger, sale, reorganization or reclassification) be issued or payable with respect to
or in exchange for a number of outstanding shares of Common Stock equal to the number of shares of Common Stock immediately theretofore
so purchasable hereunder had such consolidation, merger, sale, reorganization or reclassification not taken place, and in any such
case appropriate provision shall be made with respect to the rights and interests of the Holder of this Warrant to the end that
the provisions hereof (including, without limitation, provisions for adjustment of the Warrant Number and the per share Warrant
Price) shall thereafter be applicable as nearly as may be, in relation to any shares of stock, securities or assets thereafter
deliverable upon exercise of this Warrant. The Company shall not effect any such consolidation, merger or sale, unless prior to
or simultaneously with the consummation thereof, the successor entity (if other than the Company) resulting from such consolidation
or merger or the entity purchasing such assets shall assume by written instrument the obligation to deliver to the Holder such
shares of stock, securities or assets as, in accordance with the foregoing provisions, such Holder may be entitled to receive.

Notwithstanding the foregoing, if any
event occurs as to which the other provisions of this Warrant are not strictly applicable or if strictly applicable would not fairly
protect the purchase rights of this Warrant in accordance with the essential intent and principles of such provisions, then the
Board of Directors shall make an adjustment in the application of such provisions, in accordance with such essential intent and
principles, in order to protect such purchase rights, and shall provide notice thereof to the Holder of this Warrant.

5.       

Dissolution or Liquidation.
In the event of any proposed distribution of the assets of the Company in dissolution or liquidation (except under circumstances
when the foregoing Section 4 shall be applicable) the Company shall mail notice thereof to the Holder of this Warrant and shall
make no distribution to shareholders until the expiration of 30 days from the date of mailing of the aforesaid notice and, in any
such case, the Holder of this Warrant may exercise this Warrant within 30 days from the date of mailing such notice, and all rights
herein granted not so exercised within such 30 day period shall thereafter become null and void.

6.       

Fractional Shares. The Company
shall not issue any fractional shares nor scrip representing fractional shares upon exercise of any portion of this Warrant.

7.       

Fully Paid Stock; Taxes. The
Company covenants and agrees that the shares of stock represented by each and every certificate for its Common Stock to be delivered
on any exercise of this Warrant shall, at the time of such delivery, be duly authorized, validly issued and outstanding and be
fully paid and nonassessable. The Company further covenants and agrees that it will pay when due and payable any and all federal
and state taxes, other than taxes on income, which may be payable in respect of this Warrant or any Common Stock or certificates
therefor upon the exercise of the rights herein provided for pursuant to the provisions hereof. The Company shall not, however,
be required to pay any tax which may be payable in respect of any transfer involved in the transfer and delivery of stock certificates
in the name other than that of the Holder of the Warrant converted, and any such tax shall be paid by such Holder at the time of
presentation.

    	 

    	5 

    

 

8.       

Closing of Transfer Books.
The Holder of this Warrant shall continue to have the right to exercise this Warrant even during a period when the stock transfer
books of the Company for its Common Stock are closed. The Company shall not be required, however, to deliver certificates of its
Common Stock upon such exercise while such books are duly closed for any purpose, but the Company may postpone the delivery of
the certificates for such Common Stock until the opening of such books, and they shall, in such case, be delivered forthwith upon
the opening thereof, or as soon as practicable thereafter.

9.       

Assignments. The Holder
shall be permitted to assign, sell or otherwise transfer this Warrant, subject to the Company’s receipt of an opinion of
counsel to the Holder, which counsel and which opinion shall be reasonably acceptable to the Company, to the effect that such assignment,
sale or other transfer is permitted under applicable state and federal securities laws.

10.       

Lost, Stolen Warrants, etc.
In case any Warrant shall be mutilated stolen or destroyed, the Company may issue a new Warrant of like date, tenor and denomination
and deliver the same in exchange and substitution for and upon surrender and cancellation of any mutilated Warrant, or in lieu
of any Warrant lost, stolen or destroyed, upon receipt of evidence satisfactory to the Company of the loss, theft or destruction
of such Warrant, and upon receipt of indemnity satisfactory to the Company.

11.       

Warrant Holder Not Shareholder.
This Warrant does not confer upon the Holder hereof any right to vote or to consent or to receive notice as a shareholder of the
Company, as such, in respect of any matters whatsoever, or any other rights or liabilities as a shareholder, prior to the exercise
hereof as hereinbefore provided.

12.       

Payment of Expenses.
The Company shall reimburse the Holder of this Warrant for all costs and expenses incurred by such Holder (including without limitation
the legal fees of the Holder) in connection with: (i) the negotiation, preparation, execution and delivery of this Warrant
and the other agreements to be executed in connection herewith; (ii) the issuance of certificates for shares of Common Stock
upon the exercise of this Warrant; and (iii) the enforcement by the Holder of this Warrant. The Company shall pay any issuance
tax in connection with the issuance of certificates for the shares of Common Stock upon the exercise of the Warrant; provided,
however, that the Holder shall be responsible for any income or other taxes in connection with such issuance.

13.       

Severability. Should any part
of this Warrant for any reason be declared invalid, such decision shall not affect the validity of any remaining portion, which
remaining portion shall remain in force and effect as if this Warrant had been executed with the invalid portion thereof eliminated,
and it is hereby declared the intention of the parties hereto that they would have executed and accepted the remaining portion
of this Warrant without including therein any such part, parts or portion which may, for any reason, be hereafter declared invalid.

14.       

Notice. All notices and other
communications required or permitted to be given under any Agreement shall be personally delivered or shall be sent by certified
mail, return receipt requested, postage prepaid, overnight delivery or confirmed facsimile transmission to the Company at its principal
address in Fort Lauderdale, Florida and to the Holder of this Warrant at that Holder’s address in the records of the Company
or, as to either party or any subsequent Holder of this Warrant, to such other address and/or facsimile number as such party designates
by written notice to the other party or parties.         [Signature Page Follows]

    	 

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IN WITNESS WHEREOF, the Company has caused
this Warrant to be signed and attested by its duly authorized officers as of the day and year first set forth above.

	 	 	Monaker Group, Inc.
	 	 	 
	 	 	By:	 
	 	 	 	William Kerby
	 	 	 	Chief Executive Officer

 

 

    	 

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Schedule A

Shares of Common Stock Purchased
Upon Exercise

 

	Date of

Exercise 	Number of

Shares	Signature of an

authorized officer of

Monaker Group, Inc.	Signature of the Holder of 

the Warrant
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

    	 

    	8 

    

 

ASSIGNMENT

FOR VALUE RECEIVED _________________________hereby
sells, assigns and transfers unto _______________________ the within Warrant and all rights evidenced thereby and does irrevocably
constitute and appoint __________________________, attorney, to transfer the said Warrant on the books of the within named Company.

	 	 	 
	 	 	 
	 	 By:	 
	 	 	 
	 	 Its:	 

 

Dated: _____________________________

 

    	 

    	9 

    

 

PARTIAL ASSIGNMENT

FOR VALUE RECEIVED ______________________________
hereby sells, assigns and transfers unto _______________________________ that portion of the within Warrant and the rights evidenced
thereby which will an the date hereof entitle the holder to purchase __________ shares of Common Stock of Monaker Group Inc., and
does hereby irrevocably constitute and appoint __________________________, attorney, to transfer that part of the said Warrant
on the books of the within named Company.

	 	 	 
	 	 	 
	 	 By	 
	 	 	 
	 	 Its	 

 

Dated: _____________________________

 

    	 

    	10 

    

 

SUBSCRIPTION

(To be completed and signed only upon
an exercise of the Warrant in whole or in part)

TO: Monaker Group, Inc..: 

Attn: Gesarela Miller

954.888.9082 fax or gmiller@monakergroup.com

The undersigned, the holder of the attached
Warrant, hereby irrevocably elects to exercise the purchase right represented by the Warrant for, and to purchase thereunder, ______shares
of Common Stock (or other securities or property), and herewith makes payment of $_______ therefor in cash, by certified
or official bank check or such other form of payment as may be permitted under the Warrant. The undersigned hereby requests that
the Certificate(s) for such securities be issued in the name(s) and delivered to the address(es) as follows:

	Name:	 
	 	 
	Address:	 
	 	 
	Social Security Number:	 
	 	 
	Deliver to:	 
	 	 
	Address:	 

If the foregoing Subscription evidences
an exercise of the Warrant to purchase fewer than all of the Shares (or other securities or property) to which the undersigned
is entitled under such Warrant, please issue a new Warrant, of like date and tenor, for the remaining portion of the Warrant (or
other securities or property) in the name(s), and deliver the same to the address(ee’s), as follows:

	Name:	 
	 	 
	Address:	 
	 	 
	 	 
	 	 
	(Social Security or Taxpayer ID of Holder)	(Name of Holder)

 

	DATED: _____________________, 20___ 	 	 
	 	 	 
	 	 	(Signature of Holder or Authorized Signatory)
	 	 	Signature Guaranteed:This Note, and the securities issuable
upon the conversion of this Note, have not been registered under the Securities Act of 1933, as amended (the "Act")
or applicable state law and may not be sold, transferred or otherwise disposed of unless registered under the Act and any applicable
state act or unless the Company receives an opinion from counsel for the holder and is satisfied that this Note and the underlying
securities may be transferred without registration under the Act.

 

 

CONVERTIBLE NOTE – SERIES L - $0.03
CONVERSION

 

 

Date: January 17, 2017

FOR VALUE RECEIVED, GREENESTONE HEALTHCARE COPORATION, a
Colorado corporation (the "Company"), (GRST) hereby promises to pay to the order of ______________ or any subsequent
holder of this Note (the "Payee"), at ________________________ or at such other place as may be designated by the Payee
from time to time by notice to the Company, the principal sum of ___________. Such principal may be converted into Greenestone
Healthcare Corporation common stock at the Conversion Price as described in Section 4(b) below. Such principal shall be paid in
accordance with the terms of Section 1 below, to such account, as the Payee shall direct.

 

1.        PAYMENTS.

 

(a)       The
unpaid principal amount and any unpaid interest amount of this Note may be converted into Rule 144 Restricted Common Stock of
the Company as provided herein on or before (the “Maturity Date”) at the option of the holder.

 

(b)       Interest
on the unpaid principal balance of this Note at the rate of ZERO percent (0%) per annum shall accrue from the date hereof and
will be payable to the Payee in monthly payments of $0.00, payable at the end of each month and will be paid by check or bank
deposit, as directed by the note holder.

 

(c)       In
the event that any payment of principal and/or interest hereunder becomes due and payable on a Saturday, Sunday or other day on
which commercial banks in the Province of Ontario are authorized or required by law to close, then the maturity thereof shall
be extended to the next succeeding “Business Day” (defined as any days on which national banks in Canada are open
for business); and during any such extension, interest on principal amounts payable shall accrue and be payable at the applicable
rate.

  

2.        RANKING
OF NOTE.  

 

Subject at all times to
the subordination provisions set forth in Section 9 hereof, this Note shall, together with the Series L Convertible Notes, constitute
Senior Securities of Greenstone Healthcare Corporation and, except as provided below, Series L Notes shall be senior to any other
indebtedness for money borrowed by the Company which, by its terms shall be made expressly subject and subordinated to this Note.

 

3.        PREPAYMENT
OF NOTE. 

 

The note shall come due six (6) months from
the date above and shall bear a ZERO (0%) interest rate. The Company shall have the right to prepay the indebtedness created herein
at any time prior to the maturity of the Note, subject only to the Payees option to convert the Note into equity in the Company
as described in paragraph 4 below.

 

    	 	
1
	 

    	 

    

4.        CONVERSION.

 

The holders of the Notes shall have the following
conversion rights (the "Conversion Rights"):

 

(a)       Voluntary
Conversion. At any time or from time to time after the Issuance Date, the holder of this Note may elect to convert up to one
hundred (100%) percent of the original principal amount of this Note outstanding together with any accrued and unpaid interest,
into shares of Common Stock of the Company at the Conversion Price, by written notice given to the Company in accordance with
the provisions of Section 4(g) hereof (the “Conversion Notice”). Such right of Conversion shall be effected by the
surrender of this Note to the Company for conversion at any time during normal business hours at the office of the Company, accompanied
(i) by the Conversion Notice, (ii) if so required by the Company, by instruments of transfer, in a form satisfactory to the Company,
duly executed by the registered holder or by his duly authorized attorney and (iii) transfer tax stamps or funds therefore, if
required pursuant to Section 4(f) herein.

 

(b)        Conversion
Price.  Subject to adjustment from time to time as provided in Section 4(d) below, the term “Conversion Price"
shall mean US$0.03 per share of Common Stock and the rate of exchange for CDN dollar denominated notes shall be determined on
the date of conversion.

 

(i) Adjustments for
Stock Splits and Combinations. If the Company shall at any time or from time to time after the Issuance Date, effect a stock
split of the outstanding Common Stock, the Conversion Price in effect immediately prior to the stock split shall be proportionately
decreased. If the Company shall at any time or from time to time after the Issuance Date, combine the outstanding shares of Common
Stock, the Conversion Price in effect immediately prior to the combination shall be proportionately increased. Any adjustments
under this Section 4(c)(i) shall be effective at the close of business on the date the stock split or combination occurs.

 

(ii) Adjustments for
Certain Dividends and Distributions. If the Company shall at any time or from time after the Issuance Date, make or issue
or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other distribution payable
in shares of Common Stock, then, and in each event, the Conversion Price in effect immediately prior to such event shall be decreased
as of the time of such issuance or, in the event such a record date shall have been fixed, as of the close of business on such
record date, by multiplying the Conversion Price then in effect by a fraction;

 

(A) the numerator of which
shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the
close of business on such record date; and

 

(B) the denominator of which
shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the
close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution.

 

(iii) Adjustments for
Other Dividends and Distributions. If the Company shall at any time or from time to time after the Issuance Date, make or
issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other distribution
payable in other than shares of Common Stock, then, and in each event, an appropriate revision to the Conversion Price shall be
made and provision shall be made (by adjustments of the Conversion Price or otherwise) so that the holder of this Note shall receive
upon conversions thereof, in addition to the number of shares of Common Stock receivable thereon, the number of securities of
the Company which they would have received had this Note been converted into Common Stock on the date of such event and had thereafter,
during the period from the date of such event to and including the Conversion Date, retained such securities (together with any
distributions payable thereon during such period), giving application to all adjustments called for during such period under this
Section 4(c)(iii) with respect to the rights of the holders of the Note.

 

    	 	
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(iv) Adjustments for
Reclassification, Exchange, or Substitution. If the Common Stock issuable upon conversion of this Note at any time or from
time to time after the Issuance Date shall be changed into the same or a different number of shares of any class or classes of
stock, whether by reclassification, exchange, substitution or otherwise (other than by way of a stock split or combination of
shares or stock dividends provided for in Sections 4(c)(i), (ii) and (iii), or a reorganization, merger, consolidation, or sale
of assets provided for in Section 4(c)(v)), then, and in each event, an appropriate revision to the Conversion Price shall by
made and provisions shall be made (by adjustments of the Conversion Price of otherwise) so that the holder of this Note shall
have the right thereafter to convert such Note into the kind and amount of shares of stock and other securities receivable upon
such reclassification, exchange, substitution or other change, by holders of the number of shares of Common Stock into which such
Note might have been converted immediately prior to such reclassification, exchange, substitution or other change, all subject
to further adjustment as provided herein.

 

(v) Adjustments for
Reorganization, Merger, Consolidation, or Sales of Assets. If at any time or from time to time after the Issuance Date there
shall be a capital reorganization of the Company (other than by way of a stock split or combination of shares or stock dividends
or distributions provided for in Section 4(c)(i), (ii) and (iii), or a reclassification, exchange or substitution of shares provided
for in Section 4(c)(iv)), or a merger or consolidation of the Company with or into another corporation, or the sale of all or
substantially all of the Company's properties or assets to any other person, then as a part of such reorganization, merger, consolidation,
or sale, an appropriate revision to the Conversion Price shall be made and provision shall be made (by adjustments of the Conversion
Price or otherwise) so that the holder of this Note shall have the right thereafter to convert this Note into the kind and amount
of shares of stock and other securities or property of the Company or any successor corporation resulting from such reorganization,
merger, consolidation, or sale, to which a holder of Common Stock deliverable upon conversion of such shares would have been entitled
upon such reorganization, merger, consolidation, or sale. In any such case, appropriate adjustment shall be made in the application
of the provisions of this Section 4(c)(v) with respect to the rights of the holders of this Note after the reorganization, merger,
consolidation, or sale to the end that the provisions of this Section 4(c)(v) (including any adjustment in the Conversion Price
then in effect and the number of shares of stock or other securities deliverable upon conversion of this Note) shall be applied
after that event in as nearly an equivalent manner as may be practicable.

  

(c)       No
Impediment. The Company shall not, by amendment of its Certificate of Incorporation or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times
in good faith, assist in the carrying out of all the provisions of this Section 4 and in the taking of all such action as may
be necessary or appropriate in order to protect the conversion rights of the holders of the Note set forth in this Section 4 against
impairment.

 

(d)       Certificate
as to Adjustments. Upon occurrence of each adjustment or readjustment of the Conversion Price or number of shares of Common
Stock issuable upon conversion of the Note pursuant to this Section 4, the Company at its expense, shall promptly compute such
adjustment or readjustment in accordance with the terms hereof and furnish notice to the holder of this Note, a certificate setting
forth such adjustment and readjustment, showing in detail the facts upon which such adjustment or readjustment is based. The Company
shall, upon written request of the holder of this Note, at any time, furnish or cause to be furnished to such holder a like certificate
setting forth such adjustments and readjustments, the applicable Conversion Price in effect at the time and the number of shares
of Common Stock and the amount, if any, of other securities or property which at the time would be received upon the conversion
of such Note. Notwithstanding the foregoing, the Company shall not be obligated to deliver a certificate unless such certificate
would reflect an increase or decrease of at least one percent (1%) of such adjusted amount.

 

    	 	
3
	 

    	 

    

(e)       Issue
Taxes. The Company shall pay any and all issue and other taxes, excluding federal, state or local income taxes, that may be
payable in respect of any issue or delivery of shares of Common Stock on conversion of this Note pursuant hereto; provided, however,
that the Company shall not be obligated to pay any transfer taxes resulting from any transfer requested by any holder in connection
with any such conversion.

 

(f)        Notices
and Delivery of Shares. All notices and other communications hereunder shall be in writing and shall be deemed given (i) on
the same date, if delivered personally or by facsimile by not later than 5:00 p.m. EST time (provided, that a copy of such facsimile
shall be simultaneously sent to 5734 Yonge Street, Suite 300, Toronto, Ontario M2M 4E7 416-222-1932 or (ii) three business days
following being mailed by certified or registered mail, postage prepaid, return-receipt requested, addressed to the party in accordance
with Section 7 hereof. Not later than seven (7) Business Days following receipt of notice of conversion as provided herein (the
“Delivery Date”), the Company shall deliver to the holders of this Note, against delivery of this Note surrendered
for conversion, certificates evidencing all shares of Common Stock into which this Note shall be converted.

 

(g)        Fractional
Shares. No fractional shares of Common Stock shall be issued upon conversion of the Note. In lieu of any fractional shares
to which the holder would otherwise be entitled, the Company shall pay cash equal to the product of such fraction multiplied by
the Conversion Price of one share of the Company's Common Stock on the applicable Conversion Date.

 

(h)       Reservation
of Common Stock. The Company shall at all times reserve and keep available, out of its authorized but un-issued shares of
Common Stock, solely for the purpose of effecting the conversion of the Note, the full number of shares deliverable upon conversion
of all the Note from time to time outstanding. The Company shall, from time to time in accordance with the Colorado General Corporations
Law, as amended, increase the authorized number of shares of Common Stock if at any time the un-issued number of authorized shares
shall not be sufficient to permit the conversion of all of the Note at the time outstanding. In such connection, the Company shall
hold a special meeting of stockholders not later than 180 days after any date in which the Company shall have insufficient shares
of Common Stock so reserved for the purpose of authorizing additional shares of Common Stock.

 

(i)       Retirement
of Note. Conversion of this Note shall be deemed to have been effected on the applicable Conversion Date. The converting holder
shall be deemed to have become a stockholder of record of the Common Stock on the applicable Conversion Date. Upon conversion
of only a portion of this Note, the Company shall issue and deliver to such holder, at the expense of the Company, against receipt
of the original Note delivered for partial cancellation, a new Note representing the unconverted portion of this Note so surrendered
and Common Stock equal to the portion converted.

 

(j)       Regulatory
Compliance.

 

(i) If any shares of Common
Stock to be reserved for the purpose of conversion of this Note require registration or listing with or approval of any government
authority, stock exchange or other regulatory body under any federal or state law or regulation or otherwise before such shares
may be validly issued or delivered upon conversion, the Company shall, at its sole cost and expense, in good faith and as expeditiously
as possible, endeavor to secure such registration, listing or approval, as the case may be.

 

(ii) The shares of Common
Stock issuable upon the election to convert shall be Rule 144 restricted shares (the "Restricted Securities").

 

(iii) The holder of such
shares shall have the following registration rights:

 

    	 	
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(A) Neither this
Note nor the Shares underlying it have been registered under the Securities Act of 1933, as amended (the "Act"). The
Company has no intention of and has no obligation to register this Note nor the underlying Shares. Unless and until registered
under the Act, this Note and all replacement Notes shall bear the following legend:

 

This Note, and the securities issuable
upon the conversion of this Note, have not been registered under the Securities Act of 1933, as amended (the "Act")
or applicable state law and may not be sold, transferred or otherwise disposed of unless registered under the Act and any applicable
state act or unless the Company is satisfied that this Note and the underling securities may be transferred without registration
under the Act.

 

(B)       This
offering is being conducted pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"), and Rule
506 of Regulation D promulgated thereunder ("Rule 506") or other applicable provisions and the shares issuable upon
conversion of this Note shall be Rule 144 restricted shares.

 

5.        EVENTS OF DEFAULT.

 

The occurrence and continuance of any one
or more of the following events is herein referred to as an Event of Default:

 

(a)        If
the Company shall default in converting the applicable principal amount of this Note into Common Stock and delivering stock certificates
in respect of such conversion within thirty (30) Business Days from the Company's receipt of the applicable notice of conversion
pursuant to the provisions hereof, whether on the Maturity Date or otherwise; or

 

(b)        If
the Company shall not, at the time of receipt of a Conversion Notice hereunder, have a sufficient number of authorized and un-issued
shares of its Common Stock available for issuance to the holder of this Note upon conversion of all or any portion of this Note
in accordance with the terms hereof, and such default shall not have been remedied within one hundred eighty (180) calendar days
from the date of such Conversion Notice; or

 

(c)        If
the Company shall default in the performance of or compliance with any of its material covenants or agreements contained herein
and such default shall not have been remedied within thirty (30) calendar days after written notice thereof shall have been delivered
to the Company by the holder of this Note in accordance with the notice provisions herein; or

 

(d)        If
any representation or warranty made in writing by or on behalf of the Company in connection with the transactions contemplated
hereby shall prove to have been false or incorrect in any material respect on the date as of which made; or

 

(e)       If
the Company or any of its “Significant Subsidiaries” (as defined herein) shall make an assignment for the benefit
of creditors, or shall admit in writing its inability to pay its debts as they become due, or shall file a voluntary petition
in bankruptcy or shall have an order for relief under the Bankruptcy Act granted against it or them, or shall be adjudicated a
bankrupt or insolvent, or shall file any petition or answer seeking for itself any reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under any present or future statute, law or regulation, or shall file any answer admitting
or not contesting the material allegations of a petition filed against the Company or any of its Significant Subsidiaries in any
such proceeding, or shall seek or consent to or acquiesce in the appointment of any trustee, custodian, receiver or liquidator
of the Company or of all or any substantial part of the properties of the Company or any of its Significant Subsidiaries, or the
Company or its directors shall take any action looking to the dissolution or liquidation of the Company or any of its Significant
Subsidiaries. For purposes of this Section 5(f), the term Significant Subsidiary shall mean and include any other person, firm
or corporation (i) more than 50% of the common stock or equity interests of which are owned of record by the Company or any Subsidiary
of the Company, and (ii) the net income before taxes or total assets of which represent more than 15% of the consolidated net
income before taxes or consolidated assets of the Company and all of its Subsidiaries; or

 

(g)        If, within sixty (60) days after the commencement
of any proceeding against the Company or any Significant Subsidiary seeking any reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under any present or future statute, law or regulation, such proceeding shall not have
been dismissed, or if, within sixty (60) days after the appointment, without the consent or acquiescence of the Company or any
Significant Subsidiary, of any trustee, receiver or liquidator of the Company or any Significant Subsidiary or of all or any substantial
part of the properties of the Company or any Significant Subsidiary, such appointment shall not have been vacated. 

 

    	 	
5
	 

    	 

    

6.        REMEDIES
ON DEFAULT; ACCELERATION. 

 

Upon the occurrence and during the continuance
of an Event of Default, the entire unpaid balance of principal and accrued interest on this Note may be accelerated and declared
to be immediately due and payable by the holder in Rule 144 Restricted Shares of the Company’s Common Stock. Unless waived
by the written consent of the holder, such holder may proceed to protect and enforce its rights by an action at law, suit in equity
or other appropriate proceeding, whether for the specific performance of any agreement contained herein, or for an injunction
against a violation of any of the terms hereof, or in aid of the exercise of any power granted hereby or by law. Upon the occurrence
of an Event of Default, the Company agrees to pay to the holder of this Note such further amount as shall be sufficient to cover
the cost and expense of collection, including, without limitation, reasonable attorneys' fees and expenses. No course of dealing
and no delay on the part of the holder of this Note in exercising any right, power or remedy shall operate as a waiver thereof
or otherwise prejudice such holder's rights, powers and remedies. No right, power or remedy conferred hereby upon the holder hereof
shall be exclusive of any other right, power or remedy referred to herein nor now or hereafter available at law, in equity, by
statute or otherwise.

 

7.        NOTICES.

 

All notices, requests, demands or other communications
hereunder shall be in writing and personally addressed or sent by telecopy or by registered or certified mail, return receipt
requested, postage pre-paid, addressed or telescoped as follows or to such other address or telecopy number of which notice has
been given pursuant hereto:

 

If to the Company:Greenestone
Healthcare Corporation

5734 Yonge
Street

Suite 300

Toronto,
Ontario

M2M 4E7

Fax 416 222
1932

 

8.        GOVERNING
LAW. 

 

This Note shall be governed by, and construed
and interpreted in accordance with, the laws of the Province of Ontario and the State of Colorado, without giving effect to conflict
of law principles.

 

9.        SUBORDINATION
TO SENIOR DEBT. 

 

(a)        Payment
of the principal of and interest on this Note is subordinated, to the extent and in the manner provided herein, to the prior payment
of all indebtedness of the Company but not other Subsidiaries of the Company, for money borrowed or other obligations which is
now or may hereafter be owed (collectively, “Senior Debt”) to any bank, commercial finance company, factor, insurance
company or other institution the lending activities of which are regulated by law (individually, a "Senior Lender”
and collectively, "Senior Lenders”), which may, hereafter on any one or more occasions provide financing to the Company
or any of its Subsidiaries, secured by liens on any of the assets and properties of the Company and/or any of its Subsidiaries
(individually and collectively, an "Institutional Borrower”).

 

(b)        Upon
any payment or distribution of assets or securities of the Institutional Borrower, as the case may be, of any kind or character,
whether in cash, property or securities, upon any dissolution or winding up or total or partial liquidation or reorganization
of the Institutional Borrower, whether voluntary or involuntary or in bankruptcy, insolvency, receivership or other proceedings,
all amounts payable under Senior Debt shall first be paid in full in cash, or payment provided for in cash or cash equivalents,
before the holder hereof shall be entitled to receive any payment on account of principal of or interest on this Note. Before
any payment may be made by the Institutional Borrower of the principal of or interest on this Note upon any such dissolution or
winding up or liquidation or reorganization, any payment or distribution of assets or securities of the Institutional Borrower
of any kind of character, whether in cash, property or securities, to which the holder hereof would be entitled, except for the
provisions of this Section 9, shall be made by the Institutional Borrower or by any receiver, trustee in bankruptcy, liquidating
trustee, agent or other person making such payment or distribution, directly to the holders of Senior Debt or their representatives
to the extent necessary to pay all such Senior Debt in full after giving effect to any concurrent payment or distribution to the
holders of such Senior Debt.

 

    	 	
6
	 

    	 

    

(c)        Upon
the happening of any default in payment of the principal of or interest on any Senior Debt, then, unless and until such default
shall have been cured or waived or shall have ceased to exist, no direct or indirect payment in cash, property or securities,
by set-off or otherwise, shall be made or agreed to be made by the Institutional Borrower on account of the principal of or interest
on this Note.

 

(d)        Upon
the happening of an event of default (other than under circumstances when the terms of Section 9(c) above are applicable) with
respect to any Senior Debt pursuant to which the holder thereof is entitled under the terms of such Senior Debt to accelerate
the maturity thereof, and upon written notice thereof given to each of the Institutional Borrower and the holder of this Note
by such holder of Senior Debt (“Payment Notice”), then, unless and until such event of default shall have been cured
or waived or shall have ceased to exist, no action shall or may be taken for collection of any amounts under this Note, and no
direct or indirect payment in cash, property or securities, by set-off or otherwise, shall be made or agreed to be made by the
Institutional Borrower an account of the principal of or interest on this Note until such Senior Debt has been paid in full accordance
with its terms.

 

(e)        In
the event that, notwithstanding the provisions of this Section 9, any payment shall be made on account of the principal of or
interest on this Note in contravention of such provisions, then such payment shall be held for the benefit of, and shall be paid
over and delivered to, the holders of such Senior Debt remaining unpaid to the extent necessary to pay in full in cash or cash
equivalents the principal of and interest on such Senior Debt in accordance with its terms after giving effect to any concurrent
payment or distribution to the holders of such Senior Debt.

 

(f)        Nothing
contained in this Section 9 shall:

 

(i) impair the conversion
rights of the holder hereof referred to in Section 4 above,

 

(ii) impair, as between
the Company and the holder of this Note, the obligation of the Company, which is absolute and unconditional, to pay to the holder
hereof principal and interest as the same shall become due and payable, or

 

(iii) prevent the holder
hereof from exercising all rights, powers, and remedies otherwise provided herein or by applicable law, all subject to the express
limitations provided herein.

 

(g)        Upon
the occurrence of an Event of Default, if any Senior Debt shall then be outstanding, no acceleration of the maturity of this Note
shall be effective until the earlier of (i) ten (10) days shall have passed following the date of delivery to the Institutional
Borrower by a Senior Lender(s) of written notice of acceleration of any Senior Debt, or (ii) the maturity of any then outstanding
Senior Debt shall have been accelerated by reason of a default hereon. The Company may pay the holder hereof any defaulted payment
and all other amounts due following any such acceleration of the maturity of this Note if this Section 9 would not prohibit such
payment to be made at that time.

 

    	 	
7
	 

    	 

    

(h)        Upon
payment in full of all Senior Debt, the Payee of this Note shall be subrogated to the rights of the holder or holders of Senior
Debt to receive all payments or distributions applicable on such Senior Debt to the extent of the prior application thereto of
moneys or other assets which would have been received in respect of this Note, but for these subordination provisions, until the
principal of, and interest on, this Note shall have been paid in full.

 

(i)        The
Payee, by accepting this Note:

 

(i) shall be bound by
all of the foregoing subordination provisions;

 

(ii) agrees expressly
for the benefit of the present and future holders of Senior Debt that this Note is subject to the foregoing subordination provisions;

 

(iii) authorizes such
persons as shall be designated by all holders of Senior Debt at any given time, on his or its benefit to execute and deliver such
agreements, assignments, proofs of claim and other documents appropriate to effectuate the foregoing subordination provisions;
and

 

(iv) hereby appoints the
person so designated his or its attorney-in-fact for such purpose.

 

(j)        The
foregoing subordination provisions shall be for the benefit of all holders of Senior Debt from time to time outstanding, and each
of such holders may proceed to enforce such provisions either directly against the holder hereof or in any other manner provided
by law.

 

10.        PERMITTED
PAYMENTS.

 

Notwithstanding the provisions
of Section 9 of this Note, and provided that no default or event of default (or event which, with the passage of time or giving
of notice or both) has occurred, will occur as a result of the "Permitted Payment" (herein defined), or will occur with
the passage of time or giving of notice or both, under any document or instrument evidencing such Senior Debt, the Company may
pay to the Payee, and the Payee may accept from the Company, the principal payments of, and/or interest payments on, the outstanding
principal amount of this Note when due on an un-accelerated basis (herein, "Permitted Payments"); it being understood
and agreed by the Payee by accepting this Note that neither:

 

(a)        the
payment terms set forth in Section l of this Note;

 

(b)        the
subordination provisions contained in Section 9 of this Note, nor

 

(c)        the
provisions of this Section 10 of this Note may be modified or amended without the prior written consent of each and every holder
of Senior Debt.

 

    	 	
8
	 

    	 

    

11.       SUCCESSORS
AND ASSIGNS. 

 

This Note shall be binding upon and inure
to the benefit of the Company and the holder hereof and their respective successors and permitted assigns; provided, however,
that the Company may not transfer or assign any of its rights or obligations hereunder without the prior written consent of the
holder hereof; and provided, further, that transfer or assignment by the holder is in accordance with the rules governing
Restricted Securities.

 

IN WITNESS WHEREOF, the Company has
caused this Note to be executed by its duly authorized officers as of the date first set forth above.

 

Greenestone Healthcare Corporation 

 

By:Shawn E. Leon

 

________________________________

President

    	 	
9

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