Document:

Exhibit 10.6

 

CONVERTIBLE PROMISSORY NOTE

 

	Effective Date: May 15, 2017	U.S. $280,000.00

 

FOR VALUE RECEIVED,
Gala Global Inc., a Nevada corporation (“Borrower”), promises
to pay to St. George Investments LLC, a Utah limited liability company, or its successors
or assigns (“Lender”), $280,000.00 and any interest, fees, charges, and late fees on the date that is six (6)
months after the Purchase Price Date (the “Maturity Date”) in accordance with the terms set forth herein and
to pay interest on the Outstanding Balance at the rate of ten percent (10%) per annum from the Purchase Price Date until the same
is paid in full. This Convertible Promissory Note (this “Note”) is issued and made effective as of May 15, 2017
(the “Effective Date”). This Note is issued pursuant to that certain Securities Purchase Agreement dated May
15, 2017, as the same may be amended from time to time, by and between Borrower and Lender (the “Purchase Agreement”).
All interest calculations hereunder shall be computed on the basis of a 360-day year comprised of twelve (12) thirty (30) day
months, shall compound daily and shall be payable in accordance with the terms of this Note. Certain capitalized terms used herein
are defined in Attachment 1 attached hereto and incorporated herein by this reference.

 

St.
George Investments LLC, a Utah limited liability company, or its successors or assigns (“Lender”), $280,000.00
and any interest, fees, charges, and late fees on the date that is six (6) months after the Purchase Price Date (the “Maturity
Date”) in accordance with the terms set forth herein and to pay interest on the Outstanding Balance at the rate of ten
percent (10%) per annum from the Purchase Price Date until the same is paid in full. This Convertible Promissory Note (this “Note”)
is issued and made effective as of May 15, 2017 (the “Transaction Expense Amount”), all of which amount is included
in the initial principal balance of this Note. The purchase price for this Note and the Warrant (as defined in the Purchase Agreement)
shall be $250,000.00 (the “Purchase Price”), computed as follows: $280,000.00 original principal balance, less
the OID, less the Transaction Expense Amount. The Purchase Price shall be payable by Lender by wire transfer of immediately available
funds.

 

1.                  
Payment; Prepayment.

 

1.1.            
All payments owing hereunder shall be in lawful money of the United States of America or Conversion Shares (as defined below),
as provided for herein, and delivered to Lender at the address or bank account furnished to Borrower for that purpose. All payments
shall be applied first to (a) costs of collection, if any, then to (b) fees and charges, if any, then to (c) accrued and unpaid
interest, and thereafter, to (d) principal.

 

1.2.            
Prepayment. Borrower may, with Lender’s consent, prepay this Note at any time. If Borrower exercises its right
to prepay this Note and Lender gives its consent, Borrower shall make payment to Lender of an amount in cash equal to 125% multiplied
by the then Outstanding Balance of this Note (the “Optional Prepayment Amount”).

 

2.                  
Security. This Note is unsecured; provided, however, that it is guaranteed by GreenGro Technologies, Inc.,
a Nevada corporation and significant stockholder of Borrower (“Guarantor”), pursuant to a Guaranty of even date
herewith given by such Guarantor.

 

3.                  
Conversion.

 

3.1.            
Conversions. Lender has the right at any time after the Purchase Price Date until the Outstanding Balance has been
paid in full, including without limitation until any Optional Prepayment Date (even if Lender has received an Optional Prepayment
Notice), at its election, to convert (each instance of conversion is referred to herein as a “Conversion”) all
or any part of the Outstanding Balance into shares (“Conversion Shares”) of fully paid and non-assessable common
stock, $0.001 par value per share (“Common Stock”), of Borrower as per the following conversion formula: the
number of Conversion Shares equals the amount being converted (the “Conversion Amount”) divided by the Conversion
Price (as defined below). Conversion notices in the form attached hereto as Exhibit A (each, a “Conversion Notice”)
may be effectively delivered to Borrower by any method of Lender’s choice (including but not limited to facsimile, email,
mail, overnight courier, or personal delivery). Borrower shall deliver the Conversion Shares from any Conversion to Lender in accordance
with Section 8 below.

 

3.2.            
Conversion Price. The conversion price (the “Conversion Price”) for each Conversion shall be the
lesser of: (a) the Fixed Price, and (b) the Market Price; provided, however, in no event shall the Conversion Price be less
than the Conversion Floor.

 

 

 

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4.                  
Defaults and Remedies.

 

4.1.            
Defaults. The following are events of default under this Note (each, an “Event of Default”): (a)
Borrower fails to pay any principal, interest, fees, charges, or any other amount when due and payable hereunder; (b) Borrower
fails to deliver any Conversion Shares in accordance with the terms hereof; (c) a receiver, trustee or other similar official shall
be appointed over Borrower or a material part of its assets and such appointment shall remain uncontested for twenty (20) days
or shall not be dismissed or discharged within sixty (60) days; (d) Borrower becomes insolvent or generally fails to pay, or admits
in writing its inability to pay, its debts as they become due, subject to applicable grace periods, if any; (e) Borrower makes
a general assignment for the benefit of creditors; (f) Borrower files a petition for relief under any bankruptcy, insolvency or
similar law (domestic or foreign); (g) an involuntary bankruptcy proceeding is commenced or filed against Borrower; (h) Borrower
defaults or otherwise fails to observe or perform any covenant, obligation, condition or agreement of Borrower contained herein
or in any other Transaction Document (as defined in the Purchase Agreement), other than those specifically set forth in this Section
4.1 and Section 4 of the Purchase Agreement; (i) any representation, warranty or other statement made or furnished by or on behalf
of Borrower to Lender herein, in any Transaction Document, or otherwise in connection with the issuance of this Note is false,
incorrect, incomplete or misleading in any material respect when made or furnished; (j) the occurrence of a Fundamental Transaction
without Lender’s prior written consent; (k) Borrower fails to maintain the Share Reserve as required under the Purchase Agreement;
(l) Borrower effectuates a reverse split of its Common Stock without twenty (20) Trading Days prior written notice to Lender; (m)
any money judgment, writ or similar process is entered or filed against Borrower or any subsidiary of Borrower or any of its property
or other assets for more than $20,000.00, and shall remain unvacated, unbonded or unstayed for a period of twenty (20) calendar
days unless otherwise consented to by Lender; (n) Borrower’s Common Stock fails to be DTC Eligible; (o) Borrower fails to
observe or perform any covenant set forth in Section 4 of the Purchase Agreement, or (p) Borrower breaches any covenant or other
term or condition contained in any Other Agreements. Notwithstanding the foregoing, upon the occurrence of an event described in
Section 4.1(c) – 4.1(p) above, such event shall not be considered an Event of Default if such event is cured within thirty
(30) calendar days of the occurrence of such event.

 

4.2.            
Remedies. At any time and from time to time after Lender becomes aware of the occurrence of any Event of Default,
Lender may accelerate this Note by written notice to Borrower, with the Outstanding Balance becoming immediately due and payable
in cash at the Mandatory Default Amount. Notwithstanding the foregoing, at any time following the occurrence of any Event of Default,
Lender may, at its option, elect to increase the Outstanding Balance by applying the Default Effect (subject to the limitation
set forth below) via written notice to Borrower without accelerating the Outstanding Balance, in which event the Outstanding Balance
shall be increased as of the date of the occurrence of the applicable Event of Default pursuant to the Default Effect, but the
Outstanding Balance shall not be immediately due and payable unless so declared by Lender (for the avoidance of doubt, if Lender
elects to apply the Default Effect pursuant to this sentence, it shall reserve the right to declare the Outstanding Balance immediately
due and payable at any time and no such election by Lender shall be deemed to be a waiver of its right to declare the Outstanding
Balance immediately due and payable as set forth herein unless otherwise agreed to by Lender in writing). Notwithstanding the foregoing,
upon the occurrence of any Event of Default described in clauses (c), (d), (e), (f) or (g) of Section 4.1, the Outstanding Balance
as of the date of acceleration shall become immediately and automatically due and payable in cash at the Mandatory Default Amount,
without any written notice required by Lender. At any time following the occurrence of any Event of Default, upon written notice
given by Lender to Borrower, interest shall accrue on the Outstanding Balance beginning on the date the applicable Event of Default
occurred at an interest rate equal to the lesser of 22% per annum or the maximum rate permitted under applicable law (“Default
Interest”). For the avoidance of doubt, Lender may continue making Conversions at any time following an Event of Default
until such time as the Outstanding Balance is paid in full. Borrower further acknowledges and agrees that Lender may continue making
Conversions following the entry of any judgment or arbitration award in favor of Lender until such time that the entire judgment
amount or arbitration award is paid in full. Borrower agrees that any judgment or arbitration award will, by its terms, be made
convertible into Common Stock. Any Conversions made following a judgment or arbitration award shall be made pursuant to the following
formula: the amount of the judgment or arbitration award being converted divided by 80% of the lowest Closing Bid Price in the
ten (10) Trading Days immediately preceding the date of Conversion. In such event, Borrower and Lender agree that it is their expectation
that any such judgment amount or arbitration award that is converted will tack back to the Purchase Price Date for purposes of
determining the holding period under Rule 144. Borrower and Lender agree and stipulate that any judgment or arbitration award entered
against Borrower shall be reduced by $1,000.00 and such $1,000.00 shall become the new Outstanding Balance of this Note and this
Note shall expressly survive such judgment or arbitration award. Additionally, following the occurrence of any Event of Default,
Borrower may, at its option, pay any Conversion in cash instead of Conversion Shares by paying to Lender on or before the applicable
Delivery Date (as defined below) a cash amount equal to the number of Conversion Shares set forth in the applicable Conversion
Notice multiplied by the highest intra-day trading price of the Common Stock that occurs during the period beginning on the date
the applicable Event of Default occurred and ending on the date of the applicable Conversion Notice. In connection with acceleration
described herein, Lender need not provide, and Borrower hereby waives, any presentment, demand, protest or other notice of any
kind, and Lender may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder
and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Lender at any time
prior to payment hereunder and Lender shall have all rights as a holder of the Note until such time, if any, as Lender receives
full payment pursuant to this Section 4.2. No such rescission or annulment shall affect any subsequent Event of Default or impair
any right consequent thereon. Nothing herein shall limit Lender’s right to pursue any other remedies available to it at law
or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to Borrower’s
failure to timely deliver Conversion Shares upon Conversion of the Notes as required pursuant to the terms hereof.

 

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5.                  
Unconditional Obligation; No Offset. Borrower acknowledges that this Note is an unconditional, valid, binding and
enforceable obligation of Borrower not subject to offset, deduction or counterclaim of any kind. Borrower hereby waives any rights
of offset it now has or may have hereafter against Lender, its successors and assigns, and agrees to make the payments or Conversions
called for herein in accordance with the terms of this Note.

 

6.                  
Waiver. No waiver of any provision of this Note shall be effective unless it is in the form of a writing signed by
the party granting the waiver. No waiver of any provision or consent to any prohibited action shall constitute a waiver of any
other provision or consent to any other prohibited action, whether or not similar. No waiver or consent shall constitute a continuing
waiver or consent or commit a party to provide a waiver or consent in the future except to the extent specifically set forth in
writing.

 

7.                  
Rights Upon Issuance of Securities.

 

7.1.            
Adjustment of Conversion Price and Conversion Floor upon Subdivision or Combination of Common Stock. Without limiting
any provision hereof, if Borrower at any time on or after the Effective Date subdivides (by any stock split, stock dividend, recapitalization
or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Conversion Price
and the Conversion Floor in effect immediately prior to such subdivision will be proportionately reduced. Without limiting any
provision hereof, if Borrower at any time on or after the Effective Date combines (by combination, reverse stock split or otherwise)
one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price and Conversion
Floor in effect immediately prior to such combination will be proportionately increased. Any adjustment pursuant to this Section
7.1 shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment
under this Section 7.1 occurs during the period that a Conversion Price is calculated hereunder, then the calculation of such Conversion
Price shall be adjusted appropriately to reflect such event.

 

7.2.            
Other Events. In the event that Borrower (or any subsidiary) shall take any action to which the provisions hereof
are not strictly applicable, or, if applicable, would not operate to protect Lender from dilution or if any event occurs of the
type contemplated by the provisions of this Section 7 but not expressly provided for by such provisions (including, without
limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then Borrower’s
board of directors shall in good faith determine and implement an appropriate adjustment in the Conversion Price and the Conversion
Floor so as to protect the rights of Lender, provided that no such adjustment pursuant to this Section 7.2 will increase the Conversion
Price or the Conversion Floor as otherwise determined pursuant to this Section 7, provided further that if Lender does not
accept such adjustments as appropriately protecting its interests hereunder against such dilution, then Borrower’s board
of directors and Lender shall agree, in good faith, upon an independent investment bank of nationally recognized standing to make
such appropriate adjustments, whose determination shall be final and binding and whose fees and expenses shall be borne by Borrower.

 

8.                  
Method of Conversion Share Delivery. On or before the close of business on the fifth (5th) Trading Day
following the date of delivery of a Conversion Notice (the “Delivery Date”), Borrower shall, provided it is
DWAC Eligible at such time, deliver or cause its transfer agent to deliver the applicable Conversion Shares electronically via
DWAC to the account designated by Lender in the applicable Conversion Notice. If Borrower is not DWAC Eligible, it shall deliver
to Lender or its broker (as designated in the Conversion Notice), via reputable overnight courier, a certificate representing the
number of shares of Common Stock equal to the number of Conversion Shares to which Lender shall be entitled, registered in the
name of Lender or its designee. For the avoidance of doubt, Borrower has not met its obligation to deliver Conversion Shares by
the Delivery Date unless Lender or its broker, as applicable, has actually received the certificate representing the applicable
Conversion Shares no later than the close of business on the relevant Delivery Date pursuant to the terms set forth above. Moreover,
and notwithstanding anything to the contrary herein or in any other Transaction Document, in the event Borrower or its transfer
agent refuses to deliver any Conversion Shares to Lender on grounds that such issuance is in violation of Rule 144 under the Securities
Act of 1933, as amended (“Rule 144”), Borrower shall deliver or cause its transfer agent to deliver the applicable
Conversion Shares to Lender with a restricted securities legend, but otherwise in accordance with the provisions of this Section
8. In conjunction therewith, Borrower will also deliver to Lender a written opinion from its counsel or its transfer agent’s
counsel opining as to why the issuance of the applicable Conversion Shares violates Rule 144.

 

 

 

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9.                  
Conversion Delays. If Borrower fails to deliver Conversion Shares in accordance with the timeframe stated in Section
8, Lender, at any time prior to selling all of those Conversion Shares, may rescind in whole or in part that particular Conversion
attributable to the unsold Conversion Shares, with a corresponding increase to the Outstanding Balance (any returned amount will
tack back to the Purchase Price Date for purposes of determining the holding period under Rule 144). In addition, for each Conversion,
in the event that Conversion Shares are not delivered by the fourth Trading Day (inclusive of the day of the Conversion), a late
fee equal to the greater of (a) $500.00 and (b) 2% of the applicable Conversion Share Value rounded to the nearest multiple of
$100.00 (but in any event the cumulative amount of such late fees for each Conversion shall not exceed 200% of the applicable Conversion
Share Value) will be assessed for each day after the fifth Trading Day (inclusive of the day of the Conversion) until Conversion
Share delivery is made; and such late fee will be added to the Outstanding Balance (such fees, the “Conversion Delay Late
Fees”). For illustration purposes only, if Lender delivers a Conversion Notice to Borrower pursuant to which Borrower
is required to deliver 100,000 Conversion Shares to Lender and on the Delivery Date such Conversion Shares have a Conversion Share
Value of $20,000.00, then in such event a Conversion Delay Late Fee in the amount of $500.00 per day (the greater of $500.00 per
day and $20,000.00 multiplied by 2%, which is $400.00) would be added to the Outstanding Balance of the Note until such Conversion
Shares are delivered to Lender. For purposes of this example, if the Conversion Shares are delivered to Lender twenty (20) days
after the applicable Delivery Date, the total Conversion Delay Late Fees that would be added to the Outstanding Balance would be
$10,000.00 (20 days multiplied by $500.00 per day). If the Conversion Shares are delivered to Lender one hundred (100) days after
the applicable Delivery Date, the total Conversion Delay Late Fees that would be added to the Outstanding Balance would be $40,000.00
(100 days multiplied by $500.00 per day, but capped at 200% of the Conversion Share Value).

 

10.              
Ownership Limitation. Notwithstanding anything to the contrary contained in this Note or the other Transaction Documents,
if at any time Lender shall or would be issued shares of Common Stock under any of the Transaction Documents, but such issuance
would cause Lender (together with its affiliates) to beneficially own a number of shares exceeding 4.99% of the number of shares
of Common Stock outstanding on such date (including for such purpose the shares of Common Stock issuable upon such issuance) (the
“Maximum Percentage”), then Borrower must not issue to Lender shares of Common Stock which would exceed the
Maximum Percentage. For purposes of this section, beneficial ownership of Common Stock will be determined pursuant to Section 13(d)
of the 1934 Act. The shares of Common Stock issuable to Lender that would cause the Maximum Percentage to be exceeded are referred
to herein as the “Ownership Limitation Shares”. Borrower will reserve the Ownership Limitation Shares for the
exclusive benefit of Lender. From time to time, Lender may notify Borrower in writing of the number of the Ownership Limitation
Shares that may be issued to Lender without causing Lender to exceed the Maximum Percentage. Upon receipt of such notice, Borrower
shall be unconditionally obligated to immediately issue such designated shares to Lender, with a corresponding reduction in the
number of the Ownership Limitation Shares. Notwithstanding the forgoing, the term “4.99%” above shall be replaced with
“9.99%” at such time as the Market Capitalization is less than $10,000,000.00. Notwithstanding any other provision
contained herein, if the term “4.99%” is replaced with “9.99%” pursuant to the preceding sentence, such
increase to “9.99%” shall remain at 9.99% until increased, decreased or waived by Lender as set forth below. By written
notice to Borrower, Lender may increase, decrease or waive the Maximum Percentage as to itself but any such waiver will not be
effective until the 61st day after delivery thereof. The foregoing 61-day notice requirement is enforceable, unconditional and
non-waivable and shall apply to all affiliates and assigns of Lender.

 

11.              
Payment of Collection Costs. If this Note is placed in the hands of an attorney for collection or enforcement prior
to commencing arbitration or legal proceedings, or is collected or enforced through any arbitration or legal proceeding, or Lender
otherwise takes action to collect amounts due under this Note or to enforce the provisions of this Note, then Borrower shall pay
the costs incurred by Lender for such collection, enforcement or action including, without limitation, attorneys’ fees and
disbursements. Borrower also agrees to pay for any costs, fees or charges of its transfer agent that are charged to Lender pursuant
to any Conversion or issuance of shares pursuant to this Note.

 

12.              
Opinion of Counsel. In the event that an opinion of counsel is needed for any matter related to this Note, Lender
has the right to have any such opinion provided by its counsel. Lender also has the right to have any such opinion provided by
Borrower’s counsel.

 

13.              
Governing Law; Venue. This Note shall be construed and enforced in accordance with, and all questions concerning
the construction, validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of
Utah, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Utah. The provisions set
forth in the Purchase Agreement to determine the proper venue for any disputes are incorporated herein by this reference.

 

 

 

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14.              
Resolution of Disputes.

 

14.1.         
Arbitration of Disputes. By its acceptance of this Note, each party agrees to be bound by the Arbitration Provisions
(as defined in the Purchase Agreement) set forth as an exhibit to the Purchase Agreement.

 

14.2.         
Calculation Disputes. Notwithstanding the Arbitration Provisions, in the case of a dispute as to any Calculation
(as defined in the Purchase Agreement), such dispute will be resolved in the manner set forth in the Purchase Agreement.

 

15.              
Cancellation. After repayment or conversion of the entire Outstanding Balance, this Note shall be deemed paid in
full, shall automatically be deemed canceled, and shall not be reissued.

 

16.              
Amendments. The prior written consent of both parties hereto shall be required for any change or amendment to this
Note.

 

17.              
Assignments. Borrower may not assign this Note without the prior written consent of Lender. This Note and any shares
of Common Stock issued upon conversion of this Note may be offered, sold, assigned or transferred by Lender without the consent
of Borrower.

 

18.              
Time is of the Essence. Time is expressly made of the essence with respect to each and every provision of this Note
and the documents and instruments entered into in connection herewith.

 

19.              
Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall
be given in accordance with the subsection of the Purchase Agreement titled “Notices.”

 

20.              
Liquidated Damages. Lender and Borrower agree that in the event Borrower fails to comply with any of the terms or
provisions of this Note, Lender’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, Lender and Borrower 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
Lender’s and Borrower’s expectations that any such liquidated damages will tack back to the Purchase Price Date for
purposes of determining the holding period under Rule 144).

 

21.              
Waiver of Jury Trial. EACH OF LENDER AND BORROWER IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND
THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS NOTE OR THE RELATIONSHIPS OF THE PARTIES
HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE
STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING
SUCH PARTY’S RIGHT TO DEMAND TRIAL BY JURY.

 

22.              
Voluntary Agreement. Borrower has carefully read this Note and has asked any questions needed for Borrower to understand
the terms, consequences and binding effect of this Note and fully understand them. Borrower has had the opportunity to seek the
advice of an attorney of Borrower’s choosing, or has waived the right to do so, and is executing this Note voluntarily and
without any duress or undue influence by Lender or anyone else.

 

23.              
Severability. If any part of this Note is construed to be in violation of any law, such part shall be modified to
achieve the objective of Borrower and Lender to the fullest extent permitted by law and the balance of this Note shall remain in
full force and effect.

 

[Remainder of page intentionally left
blank; signature page follows]

 

 

 

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IN WITNESS WHEREOF,
Borrower has caused this Note to be duly executed as of the Effective Date.

 

	 	BORROWER:
	 	 
	 	Gala
Global Inc.
	 	 
	 	/s/ Timothy Madden
	 	 
	 	Name: _____________________
	 	Title: ______________________

 

ACKNOWLEDGED, ACCEPTED AND AGREED:

 

LENDER:

 

St.
George Investments LLC

 

By: Fife Trading, Inc., Manager

 

By: /s/ John
M.
Fife                                   

John M. Fife, President

 

 

 

 

 

 

 

 

 

 

[Signature Page
to Convertible Promissory Note]

 

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ATTACHMENT 1

DEFINITIONS

 

For purposes
of this Note, the following terms shall have the following meanings:

 

A1.             
“Bloomberg” means Bloomberg L.P. (or if that service is not then reporting the relevant information regarding
the Common Stock, a comparable reporting service of national reputation selected by Lender and reasonably satisfactory to Borrower).

 

A2.             
“Closing Bid Price” and “Closing Trade Price” means the last closing bid price and
last closing trade price, respectively, for the Common Stock on its principal market, as reported by Bloomberg, or, if its principal
market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price (as
the case may be) then the last bid price or last trade price, respectively, of the Common Stock prior to 4:00:00 p.m., New
York time, as reported by Bloomberg, or, if its principal market is not the principal securities exchange or trading market for
the Common Stock, the last closing bid price or last trade price, respectively, of the Common Stock on the principal securities
exchange or trading market where the Common Stock is listed or traded as reported by Bloomberg, or if the foregoing do not apply,
the last closing bid price or last trade price, respectively, of the Common Stock in the over-the-counter market on the electronic
bulletin board for the Common Stock as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is
reported for the Common Stock by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers
for the Common Stock as reported by OTC Markets Group, Inc., and any successor thereto. If the Closing Bid Price or the Closing
Trade Price cannot be calculated for the Common Stock on a particular date on any of the foregoing bases, the Closing Bid Price
or the Closing Trade Price (as the case may be) of the Common Stock on such date shall be the fair market value as mutually determined
by Lender and Borrower. If Lender and Borrower are unable to agree upon the fair market value of the Common Stock, then such dispute
shall be resolved in accordance with the procedures in Section 14.2. All such determinations shall be appropriately adjusted
for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

A3.             
“Conversion Factor” means 65%.

 

A4.             
“Conversion Floor” means $0.05, subject to adjustment as set forth in Section 7 above.

 

A5.             
“Conversion Share Value” means the product of the number of Conversion Shares deliverable pursuant to
any Conversion multiplied by the Closing Trade Price of the Common Stock on the Delivery Date for such Conversion.

 

A6.             
“Default Effect” means multiplying the Outstanding Balance as of the date the applicable Event of Default
occurred by 25%.

 

A7.             
“DTC” means the Depository Trust Company or any successor thereto.

 

A8.             
“DTC Eligible” means, with respect to the Common Stock, that such Common Stock is eligible to be deposited
in certificate form at the DTC, cleared and converted into electronic shares by the DTC and held in the name of the clearing firm
servicing Lender’s brokerage firm for the benefit of Lender.

 

A9.             
“DTC/FAST Program” means the DTC’s Fast Automated Securities Transfer program.

 

A10.          
“DWAC” means the DTC’s Deposit/Withdrawal at Custodian system.

 

A11.          
“DWAC Eligible” means that (a) Borrower’s Common Stock is eligible at DTC for full services pursuant
to DTC’s operational arrangements, including without limitation transfer through DTC’s DWAC system, (b) Borrower has
been approved (without revocation) by DTC’s underwriting department, (c) Borrower’s transfer agent is approved as an
agent in the DTC/FAST Program, (d) the Conversion Shares are otherwise eligible for delivery via DWAC; (e) Borrower has previously
delivered all Conversion Shares to Lender via DWAC; and (f) Borrower’s transfer agent does not have a policy prohibiting
or limiting delivery of the Conversion Shares via DWAC.

 

A12.          
“Fixed Price” means $0.35 per share of Common Stock, subject to adjustment as set forth in Section 7
above.

 

 

Attachment 1 to
Convertible Promissory Note, Page 1

    	 	 	 

     

    

 

A13.          
 “Fundamental Transaction” means that (a) (i) Borrower or any of its subsidiaries shall, directly
or indirectly, in one or more related transactions, consolidate or merge with or into (whether or not Borrower or any of its subsidiaries
is the surviving corporation) any other person or entity, or (ii) Borrower or any of its subsidiaries shall, directly or indirectly,
in one or more related transactions, sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially
all of its respective properties or assets to any other person or entity, or (iii) Borrower or any of its subsidiaries shall,
directly or indirectly, in one or more related transactions, allow any other person or entity to make a purchase, tender or exchange
offer that is accepted by the holders of more than 50% of the outstanding shares of voting stock of Borrower (not including any
shares of voting stock of Borrower held by the person or persons making or party to, or associated or affiliated with the persons
or entities making or party to, such purchase, tender or exchange offer), or (iv) Borrower or any of its subsidiaries shall,
directly or indirectly, in one or more related transactions, consummate a stock or share purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other person or
entity whereby such other person or entity acquires more than 50% of the outstanding shares of voting stock of Borrower (not including
any shares of voting stock of Borrower held by the other persons or entities making or party to, or associated or affiliated with
the other persons or entities making or party to, such stock or share purchase agreement or other business combination), or (v) Borrower
or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, reorganize, recapitalize or reclassify
the Common Stock, other than an increase in the number of authorized shares of Borrower’s Common Stock, or (b) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations
promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act),
directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding voting stock of Borrower.

 

A14.          
 “Mandatory Default Amount” means the greater of (a) the Outstanding Balance divided by the Conversion
Price on the date the Mandatory Default Amount is demanded, multiplied by the VWAP on the date the Mandatory Default Amount is
demanded, or (b) the Outstanding Balance following the application of the Default Effect.

 

A15.          
“Market Capitalization” means a number equal to (a) the average VWAP of the Common Stock for the immediately
preceding fifteen (15) Trading Days, multiplied by (b) the aggregate number of outstanding shares of Common Stock as reported on
Borrower’s most recently filed Form 10-Q or Form 10-K.

 

A16.          
“Market Price” means the Conversion Factor multiplied by the average of the three (3) lowest VWAPs in
the twenty (20) Trading Days immediately preceding the applicable Conversion.

 

A17.          
“OID” means an original issue discount.

 

A18.          
“Other Agreements” means, collectively, (a) all existing and future agreements and instruments between,
among or by Borrower (or an affiliate), on the one hand, and Lender (or an affiliate), on the other hand, and (b) any financing
agreement or a material agreement that affects Borrower’s ongoing business operations.

 

A19.          
“Outstanding Balance” means as of any date of determination, the Purchase Price, as reduced or increased,
as the case may be, pursuant to the terms hereof for payment, Conversion, offset, or otherwise, plus the OID, the Transaction Expense
Amount, accrued but unpaid interest, collection and enforcements costs (including attorneys’ fees) incurred by Lender, transfer,
stamp, issuance and similar taxes and fees related to Conversions, and any other fees or charges (including without limitation
Conversion Delay Late Fees) incurred under this Note.

 

A20.          
“Purchase Price Date” means the date the Purchase Price is delivered by Lender to Borrower.

 

A21.          
“Trading Day” means any day on which the New York Stock Exchange is open for trading.

 

A22.          
“VWAP” means the volume weighted average price of the Common stock on the principal market for a particular
Trading Day or set of Trading Days, as the case may be, as reported by Bloomberg.

 

 

 

 

Attachment 1 to
Convertible Promissory Note, Page 2

    	 	 	 

     

    

 

EXHIBIT A

 

St. George Investments LLC

303 East Wacker Drive, Suite 1040

Chicago, Illinois 60601

 

	Gala Global Inc.	Date: _________________________
	Attn: James Haas, CEO	 
	1100 East Orangefair Lane, Suite I	 
	Anaheim, California 92801	 

 

CONVERSION NOTICE

 

The above-captioned
Lender hereby gives notice to Gala Global Inc., a Nevada corporation (the “Borrower”), pursuant to that certain
Convertible Promissory Note made by Borrower in favor of Lender on May 15, 2017 (the “Note”), that Lender elects
to convert the portion of the Note balance set forth below into fully paid and non-assessable shares of Common Stock of Borrower
as of the date of conversion specified below. Said conversion shall be based on the Conversion Price set forth below. In the event
of a conflict between this Conversion Notice and the Note, the Note shall govern, or, in the alternative, at the election of Lender
in its sole discretion, Lender may provide a new form of Conversion Notice to conform to the Note. Capitalized terms used in this
notice without definition shall have the meanings given to them in the Note.

 

		A.	Date of Conversion: ____________

		B.	Conversion #: ____________

		C.	Conversion Amount: ____________

		D.	Conversion Price: _______________ (lower of Fixed Price and Market Price)

		E.	Conversion Shares: _______________ (C divided by D)

		F.	Remaining Outstanding Balance of Note: ____________*

 

* Subject to adjustments for corrections,
defaults, interest and other adjustments permitted by the Transaction Documents (as defined in the Purchase Agreement), the terms
of which shall control in the event of any dispute between the terms of this Conversion Notice and such Transaction Documents.

 

To the extent the
Conversion Shares are not able to be delivered to Lender electronically via the DWAC system, deliver all such certificated shares
to Lender via reputable overnight courier after receipt of this Conversion Notice (by facsimile transmission or otherwise) to:

_____________________________________

_____________________________________

_____________________________________

 

Sincerely,

 

Lender:

 

St.
George Investments LLC

 

By: Fife Trading, Inc., Manager

 

By:   ______________________________

John M. Fife, President

 

 

 

 

 

 

Exhibit A to
Convertible Promissory Note, Page 1Exhibit 10.7

 

THIS WARRANT AND THE COMMON STOCK ISSUABLE
HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT AND THE COMMON STOCK ISSUABLE HEREUNDER
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT
OR ANY SHARES ISSUABLE HEREUNDER UNDER SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY
TO GALA GLOBAL INC. OR ITS TRANSFER AGENT THAT SUCH REGISTRATION IS NOT REQUIRED.

 

GALA GLOBAL INC.

 

WARRANT TO PURCHASE SHARES OF COMMON STOCK

 

1.                  
Issuance. For good and valuable consideration as set forth in the Purchase Agreement (as defined below), including
without limitation the Purchase Price (as defined in the Purchase Agreement), the receipt and sufficiency of which are hereby acknowledged
by Gala Global Inc., a Nevada corporation (“Company”); St.
George Investments LLC, a Utah limited liability company, its successors and/or registered assigns (“Investor”),
is hereby granted the right to purchase at any time on or after the Issue Date (as defined below) until the date which is the last
calendar day of the month in which the fifth anniversary of the Issue Date occurs (the “Expiration Date”), 486,873
fully paid and non-assessable shares (the “Warrant Shares”) of Company’s common stock, par value $0.001
per share (the “Common Stock”), as such number may be adjusted from time to time pursuant to the terms and conditions
of this Warrant to Purchase Shares of Common Stock (this “Warrant”).

 

This Warrant is being
issued pursuant to the terms of that certain Securities Purchase Agreement dated May 15, 2017, to which Company and Investor are
parties (as the same may be amended from time to time, the “Purchase Agreement”). Certain capitalized terms
used herein are defined in Attachment 1 attached hereto and incorporated herein by this reference. Moreover, to the extent
any defined terms herein are defined in any other Transaction Document (as so noted herein), such defined term shall remain applicable
in this Warrant even if the other Transaction Document has been released, satisfied, or is otherwise cancelled.

 

This Warrant was issued
to Investor on May 15, 2017 (the “Issue Date”). For the avoidance of doubt, the Purchase Price constitutes payment
in full for this Warrant.

 

2.                  
Exercise of Warrant.

 

2.1.            
General.

 

(a)               
This Warrant is exercisable in whole or in part at any time and from time to time commencing on the Issue Date and ending
on the Expiration Date. Such exercise shall be effectuated by submitting to Company (either by delivery to Company or by email
or facsimile transmission) a completed and signed Notice of Exercise substantially in the form attached to this Warrant as Exhibit
A (the “Notice of Exercise”). The date a Notice of Exercise is either faxed, emailed or delivered to Company
shall be the “Exercise Date,” provided that, if such exercise represents the full exercise of the outstanding
balance of this Warrant, Investor shall tender this Warrant to Company within five (5) Trading Days thereafter, but only if the
Delivery Shares to be delivered pursuant to the Notice of Exercise have been delivered to Investor as of such date. The Notice
of Exercise shall be executed by Investor and shall indicate (i) the number of Delivery Shares to be issued pursuant to such exercise,
and (ii) if applicable (as provided below), whether the exercise is a cashless exercise.

 

(b)               
Notwithstanding any other provision contained herein or in any other Transaction Document to the contrary, at any time prior
to the Expiration Date, Investor may elect a “cashless” exercise of this Warrant for any Warrant Shares whereby Investor
shall be entitled to receive a number of shares of Common Stock equal to (i) the excess of the Current Market Value over the aggregate
Exercise Price of the Exercise Shares, divided by (ii) the Adjusted Price.

 

(c)               
If the Notice of Exercise form elects a “cash” exercise, the Exercise Price per share of Common Stock for the
Delivery Shares shall be payable, at the election of Investor, in cash or by certified or official bank check or by wire transfer
in accordance with instructions provided by Company at the request of Investor.

 

 

 

    	 	1	 

     

    

 

(d)               
Upon the appropriate payment to Company, if any, of the Exercise Price for the Delivery Shares, Company shall promptly,
but in no case later than the date that is five (5) Trading Days following the date the Exercise Price is paid to Company (or with
respect to a “cashless exercise,” the date that is five (5) Trading Days following the Exercise Date) (the “Delivery
Date”), deliver or cause Company’s Transfer Agent to deliver the applicable Delivery Shares electronically via
the DWAC system to the account designated by Investor on the Notice of Exercise. If for any reason Company is not able to so deliver
the Delivery Shares via the DWAC system, notwithstanding its best efforts to do so, such shall constitute a breach of this Warrant,
and Company shall instead, on or before the applicable date set forth above in this subsection, issue and deliver to Investor or
its broker (as designated in the Notice of Exercise), via reputable overnight courier, a certificate, registered in the name of
Investor or its designee, representing the applicable number of Delivery Shares. For the avoidance of doubt, Company has not met
its obligation to deliver Delivery Shares within the required timeframe set forth above unless Investor or its broker, as applicable,
has actually received the Delivery Shares (whether electronically or in certificated form) no later than the close of business
on the latest possible delivery date pursuant to the terms set forth above. Moreover, and notwithstanding anything to the contrary
herein or in any other Transaction Document, in the event Company or its Transfer Agent refuses to deliver any Delivery Shares
to Investor on grounds that such issuance is in violation of Rule 144 under the 1933 Act (as defined below) (“Rule 144”),
Company shall deliver or cause its Transfer Agent to deliver the applicable Delivery Shares to Investor with a restricted securities
legend, but otherwise in accordance with the provisions of this Section 2.1(d). In conjunction therewith, Company will also deliver
to Investor a written opinion from its counsel or its Transfer Agent’s counsel opining as to why the issuance of the applicable
Delivery Shares violates Rule 144.

 

(e)               
If Delivery Shares are delivered later than as required under subsection (d) immediately above, Company agrees to pay, in
addition to all other remedies available to Investor in the Transaction Documents, a late charge equal to the greater of (i) $500.00
and (ii) 2% of the product of (1) the number of shares of Common Stock not issued to Investor on a timely basis and to which Investor
is entitled multiplied by (2) the VWAP of the Common Stock on the Trading Day immediately preceding the last possible date
which Company could have issued such shares of Common Stock to Investor without violating this Warrant, rounded to the nearest
multiple of $100.00 (such resulting amount, the “Warrant Share Value”) (but in any event the cumulative amount
of such late fees for each exercise shall not exceed 200% of the Warrant Share Value), per Trading Day until such Warrant Shares
are delivered (the “Late Fees”). Company acknowledges and agrees that the failure to timely deliver Delivery
Shares hereunder is a material breach of this Warrant and that the Late Fees are properly charged as liquidated damages to compensate
Investor for such breach. Company shall pay any Late Fees incurred under this subsection in immediately available funds upon demand;
provided, however, that, so long as the Note is outstanding, at the option of Investor, such amount owed may be added to
the principal amount of the Note. Furthermore, in the event that Company fails for any reason to effect delivery of the Delivery
Shares as required under subsection (d) immediately above, Investor may revoke all or part of the relevant Warrant exercise by
delivery of a notice to such effect to Company, whereupon Company and Investor shall each be restored to their respective positions
immediately prior to the exercise of the relevant portion of this Warrant, except that the Late Fees described above shall be payable
through the date notice of revocation or rescission is given to Company. Finally, in the event Company fails to deliver any Delivery
Shares to Investor for a period of ninety (90) days from the Delivery Date, Investor may elect, in its sole discretion, to stop
the accumulation of the Late Fees as of such date and require Company to pay to Investor a cash amount equal to (i) the total amount
of all Late Fees that have accumulated prior to the date of Investor’s election, plus (ii) the product of the number of Delivery
Shares deliverable to Investor on such date if it were to exercise this Warrant with respect to the remaining number of Exercise
Shares as of such date multiplied by the Closing Trade Price of the Common Stock on the Delivery Date (the “Cash Settlement
Amount”). At such time as Investor makes an election to require Company to pay to it the Cash Settlement Amount, such
obligation of Company shall be a valid and binding obligation of Company and shall for all purposes be deemed to be a debt obligation
of Company owed to Investor as of the date it makes such election. Upon Company’s payment of the Cash Settlement Amount to
Investor, this Warrant shall be deemed to have been satisfied. In addition, and for the avoidance of doubt, even if Company could
not deliver the number of Delivery Shares deliverable to Investor if it were to exercise this Warrant with respect to the remaining
number of Exercise Shares on the date of repayment due to the provisions of Section 2.2, the provisions of Section 2.2 will not
apply with respect to Company’s payment of the Cash Settlement Amount.

 

(f)                
Investor shall be deemed to be the holder of the Delivery Shares (not including any Ownership Limitation Shares (as defined
below)) issuable to it in accordance with the provisions of this Section 2.1 on the Exercise Date.

 

 

 

    	 	2	 

     

    

 

2.2.            
Ownership Limitation. Notwithstanding anything to the contrary contained in this Warrant or the other Transaction
Documents, if at any time Investor shall or would be issued shares of Common Stock, but such issuance would cause Investor (together
with its affiliates) to own a number of shares exceeding 4.99% of the number of shares of Common Stock outstanding on such date
(the “Maximum Percentage”), Company must not issue to Investor shares of Common Stock which would exceed the
Maximum Percentage. The shares of Common Stock issuable to Investor that would cause the Maximum Percentage to be exceeded are
referred to herein as the “Ownership Limitation Shares”. In such event, Company shall reserve the Ownership
Limitation Shares for the exclusive benefit of Investor. From time to time, Investor may notify Company in writing of the number
of the Ownership Limitation Shares that may be issued to Investor without causing Investor to exceed the Maximum Percentage. Upon
receipt of such notice, Company shall be unconditionally obligated to immediately issue such designated shares to Investor, with
a corresponding reduction in the number of the Ownership Limitation Shares. Notwithstanding the foregoing, the term “4.99%”
above shall be replaced with “9.99%” at such time as the Market Capitalization is less than $10,000,000.00. Notwithstanding
any other provision contained herein, if the term “4.99%” is replaced with “9.99%” pursuant to the preceding
sentence, such change to “9.99%” shall be permanent. By written notice to Company, Investor may increase, decrease
or waive the Maximum Percentage as to itself but any such waiver will not be effective until the 61st day after delivery thereof.
The foregoing 61-day notice requirement is enforceable, unconditional and non-waivable and shall apply to all affiliates and assigns
of Investor.

 

2.3.            
Redemption Option. At any time during the period beginning on the Issue Date and ending on the date that is one (1)
year from the Issue Date, Company shall have the option to redeem this Warrant by exchanging it (pursuant to Section 3(a)(9) of
the 1933 Act (as defined below)) for 400,000 shares of Company’s Common Stock (the “Redemption Option”).
If Company elects to exercise its Redemption Option, any outstanding Notice of Exercise will be cancelled and this Warrant will
be deemed satisfied in full upon delivery of the 400,000 shares of Common Stock.

 

3.                  
Mutilation or Loss of Warrant. Upon receipt by Company of evidence satisfactory to it of the loss, theft, destruction
or mutilation of this Warrant, and (in the case of loss, theft or destruction) receipt of reasonably satisfactory indemnification,
and (in the case of mutilation) upon surrender and cancellation of this Warrant, Company will execute and deliver to Investor a
new Warrant of like tenor and date and any such lost, stolen, destroyed or mutilated Warrant shall thereupon become void.

 

4.                  
Rights of Investor. Investor shall not, by virtue of this Warrant alone, be entitled to any rights of a stockholder
in Company, either at law or in equity, and the rights of Investor with respect to or arising under this Warrant are limited to
those expressed in this Warrant and are not enforceable against Company except to the extent set forth herein.

 

5.                  
Protection Against Dilution and Other Adjustments.

 

5.1.            
Capital Adjustments. If Company shall at any time prior to the expiration of this Warrant subdivide the Common Stock,
by split-up or stock split, or otherwise, or combine its Common Stock, or issue additional shares of its Common Stock as a dividend,
the number of Warrant Shares issuable upon the exercise of this Warrant shall forthwith be automatically increased proportionately
in the case of a subdivision, split or stock dividend, or proportionately decreased in the case of a combination. Appropriate adjustments
shall also be made to the Exercise Price and other applicable amounts, but the aggregate purchase price payable for the total number
of Warrant Shares purchasable under this Warrant (as adjusted) shall remain the same. Any adjustment under this Section 5.1
shall become effective automatically at the close of business on the date the subdivision or combination becomes effective, or
as of the record date of such dividend, or in the event that no record date is fixed, upon the making of such dividend.

 

5.2.            
Reclassification, Reorganization and Consolidation. In case of any reclassification, capital reorganization, or change
in the capital stock of Company (other than as a result of a subdivision, combination, or stock dividend provided for in Section 5.1
above), then Company shall make appropriate provision so that Investor shall have the right at any time prior to the expiration
of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of shares
of stock and other securities and property receivable in connection with such reclassification, reorganization, or change by a
holder of the same number of shares of Common Stock as were purchasable by Investor immediately prior to such reclassification,
reorganization, or change. In any such case appropriate provisions shall be made with respect to the rights and interest of Investor
so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities and property
deliverable upon exercise hereof, and appropriate adjustments shall be made to the purchase price per Warrant Share payable hereunder,
provided the aggregate purchase price shall remain the same.

 

 

 

    	 	3	 

     

    

 

5.3.            
Subsequent Equity Sales. If Company or any subsidiary thereof, as applicable, at any time and from time to time while
this Warrant is outstanding, shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose
of, sell or issue (or announce any offer, sale, grant or any option to purchase or other disposition of) any Common Stock (including
any Common Stock issued under the Note, whether upon any type of conversion or any Deemed Issuance), debt, warrants, options, preferred
shares or other instruments or securities which are convertible into or exercisable for shares of Common Stock (together herein
referred to as “Equity Securities”), at an effective price per share less than the Exercise Price (such lower
price, the “Base Share Price”, and any such issuance, a “Dilutive Issuance”) (if the holder
of the Common Stock or Equity Securities so issued shall at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options, or rights per share which
are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share that
is less than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise Price on such date of
the Dilutive Issuance), then (a) the Exercise Price shall be reduced and only reduced to equal the Base Share Price, and (b) the
number of Warrant Shares issuable upon the exercise of this Warrant shall be increased to an amount equal to the number of Warrant
Shares Investor could purchase hereunder for an aggregate Exercise Price, as reduced pursuant to subsection (a) above, equal to
the aggregate Exercise Price payable immediately prior to such reduction in Exercise Price, provided that the increase in the number
of Exercise Shares issuable under this Warrant made pursuant to this Section 5.3 shall not at any time exceed a number equal to
three (3) times the number of Exercise Shares issuable under this Warrant as of the Issue Date (for the avoidance of doubt, the
foregoing cap on the number of Exercise Shares issuable hereunder shall only apply to adjustments made pursuant to this Section
5.3 and shall not apply to adjustments made pursuant to Sections 5.1, 5.2 or any other section of this Warrant). Such adjustments
shall be made whenever such Common Stock or Equity Securities are issued. Company shall notify Investor, in writing, no later than
the Trading Day following the issuance of any Common Stock or Equity Securities subject to this Section 5.3, indicating therein
the applicable issuance price, or applicable reset price, exchange price, conversion price, or other pricing terms (such notice,
the “Dilutive Issuance Notice”). Dilutive Issuance Notices shall be in the form set forth in Section 6 below.
For purposes of clarification, whether or not Company provides a Dilutive Issuance Notice pursuant to this Section 5.3, upon the
occurrence of any Dilutive Issuance, after the date of such Dilutive Issuance, Investor is entitled to receive the increased number
of Warrant Shares provided for in subsection (b) above at an Exercise Price equal to the Base Share Price regardless of whether
Investor accurately refers to the Base Share Price in the Notice of Exercise. Additionally, following the occurrence of a Dilutive
Issuance, all references in this Warrant to “Warrant Shares” shall be a reference to the Warrant Shares as increased
pursuant to subsection (b) above, and all references in this Warrant to “Exercise Price” shall be a reference to the
Exercise Price as reduced pursuant to subsection (a) above, as the same may occur from time to time hereunder.

 

5.4.            
Exceptions to Adjustment. Notwithstanding the provisions of Section 5.3, no adjustment to the Exercise Price shall
be effected as a result of an Excepted Issuance.

 

6.                  
Certificate as to Adjustments. In each case of any adjustment or readjustment in the number or kind of shares issuable
on the exercise of this Warrant, or in the Exercise Price, pursuant to the terms hereof, Company at its expense will promptly cause
its Chief Financial Officer or other appropriate designee to compute such adjustment or readjustment in accordance with the terms
of this Warrant and prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based, including a statement of (a) the consideration received or receivable by Company for
any additional shares of Common Stock issued or sold or deemed to have been issued or sold, (b) the number of shares of Common
Stock outstanding or deemed to be outstanding, and (c) the Exercise Price and the number of shares of Common Stock to be received
upon exercise of this Warrant, in effect immediately prior to such adjustment or readjustment and as adjusted or readjusted as
provided in this Warrant. Nothing in this Section 6 shall be deemed to limit any other provision contained herein.

 

7.                  
Transfer to Comply with the Securities Act. This Warrant and the Warrant Shares have not been registered under the
Securities Act of 1933, as amended (the “1933 Act”). Neither this Warrant nor the Warrant Shares may be sold,
transferred, pledged or hypothecated without (a) an effective registration statement under the 1933 Act relating to such security
or (b) an opinion of counsel reasonably satisfactory to Company that registration is not required under the 1933 Act; provided,
however, that the foregoing restrictions on transfer shall not apply to the transfer of the Warrant to an affiliate of Investor.
Until such time as registration has occurred under the 1933 Act, each certificate for this Warrant and any Warrant Shares shall
contain a legend, in form and substance satisfactory to counsel for Company, setting forth the restrictions on transfer contained
in this Section 7; provided, however, that Company acknowledges and agrees that any such legend shall be removed from all
certificates for DTC Eligible Common Stock delivered hereunder as such Common Stock is cleared and converted into electronic shares
by the DTC, and nothing contained herein shall be interpreted to the contrary. Upon receipt of a duly executed assignment of this
Warrant, Company shall register the transferee thereon as the new holder on the books and records of Company and such transferee
shall be deemed a “registered holder” or “registered assign” for all purposes hereunder, and shall have
all the rights of Investor under this Warrant. Until this Warrant is transferred on the books of Company, Company may treat Investor
as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

 

 

 

    	 	4	 

     

    

 

8.                  
Notices. Any notice required or permitted hereunder shall be given in the manner provided in the subsection titled
“Notices” in the Purchase Agreement, the terms of which are incorporated herein by reference.

 

9.                  
Supplements and Amendments; Whole Agreement. This Warrant may be amended or supplemented only by an instrument in
writing signed by the parties hereto. This Warrant, together with the Purchase Agreement, contains the full understanding of the
parties hereto with respect to the subject matter hereof and thereof and there are no representations, warranties, agreements or
understandings with respect to the subject matter hereof and thereof other than as expressly contained herein and therein.

 

10.              
Purchase Agreement; Arbitration of Disputes; Calculation Disputes. This Warrant is subject to the terms, conditions
and general provisions of the Purchase Agreement, including without limitation the Arbitration Provisions (as defined in the Purchase
Agreement) set forth as an exhibit to the Purchase Agreement. In addition, notwithstanding the Arbitration Provisions, in the case
of a dispute as to any Calculation (as defined in the Purchase Agreement), such dispute will be resolved in the manner set forth
in the Purchase Agreement.

 

11.              
Governing Law; Venue. This Warrant shall be construed and enforced in accordance with, and all questions concerning
the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State
of Utah, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Utah. The provisions set
forth in the Purchase Agreement to determine the proper venue for any disputes are incorporated herein by this reference.

 

12.              
Waiver of Jury Trial. COMPANY IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING
OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS WARRANT OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY.
THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE, LAW, RULE
OR REGULATION. FURTHER, COMPANY ACKNOWLEDGES THAT IT IS KNOWINGLY AND VOLUNTARILY WAIVING ITS RIGHT TO DEMAND TRIAL BY JURY.

 

13.              
Remedies. The remedies at law of Investor under this Warrant in the event of any default or threatened default by
Company in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and, without
limiting any other remedies available to Investor in the Transaction Documents, at law or equity, to the fullest extent permitted
by law, such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by
an injunction against a violation of any of the terms hereof or otherwise without the obligation to post a bond.

 

14.              
Liquidated Damages. Company and Investor agree that in the event Company fails to comply with any of the terms or
provisions of this Warrant, Investor’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, Investor and Company agree that any fees or other charges assessed under this Warrant are not penalties
but instead are intended by the parties to be, and shall be deemed, liquidated damages (under Investor’s and Company’s
expectations that any such liquidated damages will tack back to the Issue Date for purposes of determining the holding period under
Rule 144.

 

15.              
Counterparts. This Warrant may be executed in any number of counterparts and each of such counterparts shall for
all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.
Signatures delivered via facsimile or email shall be considered original signatures for all purposes hereof.

 

16.              
Attorneys’ Fees. In the event of any arbitration, litigation or dispute arising from this Warrant, the parties
agree that the party who is awarded the most money (which, for the avoidance of doubt, shall be determined without regard to any
statutory fines, penalties, fees, or other charges awarded to any party) 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
said prevailing party in connection with arbitration or litigation without reduction or apportionment based upon the individual
claims or defenses giving rise to the fees and expenses. Nothing herein shall restrict or impair an arbitrator’s
or a court’s power to award fees and expenses for frivolous or bad faith pleading.

 

 

 

    	 	5	 

     

    

 

17.              
Severability. Whenever possible, each provision of this Warrant shall be interpreted in such a manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be invalid or unenforceable in any jurisdiction, such
provision shall be modified to achieve the objective of the parties to the fullest extent permitted and such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this Warrant or the validity or enforceability of this Warrant
in any other jurisdiction.

 

18.              
Time is of the Essence. Time is expressly made of the essence with respect to each and every provision of this Warrant.

 

19.              
Descriptive Headings. Descriptive headings of the sections of this Warrant are inserted for convenience only and
shall not control or affect the meaning or construction of any of the provisions hereof.

 

[Remainder of page intentionally left
blank; signature page follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	6	 

     

    

 

IN WITNESS WHEREOF,
Company has caused this Warrant to be duly executed by an officer thereunto duly authorized as of the Issue Date.

 

 

	 	COMPANY:
	 	 
	 	Gala
Global Inc.
	 	 
	 	By: /s/ Timothy Madden                         
	 	Printed Name: 
	 	Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page
to Warrant]

 

    	 	7	 

     

    

ATTACHMENT 1

DEFINITIONS

 

For purposes of this
Warrant, the following terms shall have the following meanings:

 

A1.             
“Adjusted Price” means the lower of (i) the Exercise Price (as such Exercise Price may be adjusted from
time to time pursuant to the terms of this Warrant), and (ii) the Market Price.

 

A2.             
“Approved Stock Plan” means any stock option plan which has been approved by the board of directors of
Company and is in effect as of the Issue Date, pursuant to which Company’s securities may be issued to any employee, officer
or director for services provided to Company.

 

A3.             
“Bloomberg” means Bloomberg L.P. (or if that service is not then reporting the relevant information regarding
the Common Stock, a comparable reporting service of national reputation selected by Investor and reasonably satisfactory to Company).

 

A4.             
“Closing Bid Price” and “Closing Trade Price” means the last closing bid price and
last closing trade price, respectively, for the Common Stock on its principal market, as reported by Bloomberg, or, if its principal
market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price (as
the case may be) then the last bid price or last trade price, respectively, of the Common Stock prior to 4:00:00 p.m., New
York time, as reported by Bloomberg, or, if its principal market is not the principal securities exchange or trading market for
the Common Stock, the last closing bid price or last trade price, respectively, of the Common Stock on the principal securities
exchange or trading market where the Common Stock is listed or traded as reported by Bloomberg, or if the foregoing do not apply,
the last closing bid price or last trade price, respectively, of the Common Stock in the over-the-counter market on the electronic
bulletin board for the Common Stock as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is
reported for the Common Stock by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers
for the Common Stock as reported by OTC Markets Group, Inc., and any successor thereto. If the Closing Bid Price or the Closing
Trade Price cannot be calculated for the Common Stock on a particular date on any of the foregoing bases, the Closing Bid Price
or the Closing Trade Price (as the case may be) of the Common Stock on such date shall be the fair market value as mutually determined
by Investor and Company. If Investor and Company are unable to agree upon the fair market value of the Common Stock, then such
dispute shall be resolved in accordance with the procedures in the Purchase Agreement governing Calculations. All such determinations
shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such
period.

 

A5.             
“Conversion Factor” means 65%, subject to the following adjustments.
If at any time after the Issue Date, Company is not DWAC Eligible, then the then-current Conversion Factor will automatically be
permanently reduced by 5%. If at any time after the Issue Date, the Delivery Shares are not DTC Eligible, then the then-current
Conversion Factor will automatically be permanently reduced by an additional 5%. For example, the first time Company is not DWAC
Eligible, the Conversion Factor for future exercises thereafter will be reduced from 65% to 60% for purposes of this example. If,
thereafter, the Delivery Shares are not DTC Eligible, the Conversion Factor for all future exercises will automatically be permanently
reduced from 60% to 55% for purposes of this example.

 

A6.             
“Current Market Value” means an amount equal to the Trade Price multiplied by the number of Exercise
Shares specified in the applicable Notice of Exercise.

 

A7.             
“Deemed Issuance” means an issuance of Common Stock that shall be deemed to have occurred on the latest
possible permitted date pursuant to the terms of this Warrant or the Note in the event Company fails to deliver shares of Common
Stock as and when required.

 

A8.             
“Delivery Shares” means those shares of Common Stock issuable and deliverable upon the exercise or partial
exercise, as the case may be, of this Warrant.

 

A9.             
“DTC” means the Depository Trust Company or any successor thereto.

 

A10.          
“DTC Eligible” means, with respect to the Common Stock, that such Common Stock is eligible to be deposited
in certificate form at the DTC, cleared and converted into electronic shares by the DTC and held in the name of the clearing firm
servicing Investor’s brokerage firm for the benefit of Investor.

 

 

 

 

 

 

 

 

 

[Attachment 1 to
Warrant, Page 1]

    	 	 	 

     

    

 

A11.          
“DTC/FAST Program” means the DTC’s Fast Automated Securities Transfer program.

 

A12.          
“DWAC” means the DTC’s Deposit/Withdrawal at Custodian system.

 

A13.          
“DWAC Eligible” means that (a) Company’s Common Stock is eligible at DTC for full services pursuant
to DTC’s operational arrangements, including without limitation transfer through DTC’s DWAC system, (b) Company has
been approved (without revocation) by the DTC’s underwriting department, (c) Company’s transfer agent is approved as
an agent in the DTC/FAST Program, (d) the Delivery Shares are otherwise eligible for delivery via DWAC; (e) Company has previously
delivered all Delivery Shares to Investor via DWAC; and (f) Company’s transfer agent does not have a policy prohibiting or
limiting delivery of the Delivery Shares via DWAC.

 

A14.          
“Excepted Issuances” means any shares of Common Stock, options, or convertible securities issued or issuable
in connection with any Approved Stock Plan; provided that the option term, exercise price or similar provisions of any issuance
pursuant to such Approved Stock Plan are not amended, modified or changed on or after the Issue Date.

 

A15.          
“Exercise Price” means $0.09 per share of Common Stock, as the same may be adjusted from time to time
pursuant to the terms and conditions of this Warrant.

 

A16.          
“Exercise Shares” means those Warrant Shares subject to an exercise of this Warrant by Investor. By way
of illustration only and without limiting the foregoing, if (i) this Warrant is initially exercisable for 4,180,000 Warrant Shares
and Investor has not previously exercised this Warrant, and (ii) Investor were to make a cashless exercise with respect to 5,000
Warrant Shares pursuant to which 6,000 Delivery Shares would be issuable to Investor, then (1) this Warrant shall be deemed to
have been exercised with respect to 5,000 Exercise Shares, (2) this Warrant would remain exercisable for 4,175,000 Warrant Shares,
and (3) this Warrant shall be deemed to have been exercised with respect to 6,000 Delivery Shares.

 

A17.          
“Market Capitalization” means the product equal to (a) the average VWAP
of the Common Stock for the immediately preceding fifteen (15) Trading Days, multiplied by (b) the aggregate number of outstanding
shares of Common Stock as reported on Company’s most recently filed Form 10-Q or Form 10-K.

 

A18.          
“Market Price” means the Conversion Factor multiplied by the average of the three (3) lowest VWAPs in
the twenty (20) Trading Days immediately preceding the applicable date of exercise. By way of example
only, if the Conversion Factor were 75% and the average of the three lowest Closing Bid Prices in the twenty (20) Trading Days
immediately preceding the applicable date of exercise were $1.00 then the Market Price would be $0.75 (75% x $1.00).

 

A19.          
“Note” means that certain Convertible Promissory Note issued by Company to Investor pursuant to the Purchase
Agreement, as the same may be amended from time to time, and including any promissory note(s) that replace or are exchanged for
such referenced promissory note.

 

A20.          
“Trade Price” means the higher of: (i) the Closing Trade Price of the Common Stock on the Issue Date;
and (ii) the VWAP of the Common Stock for the Trading Day that is two (2) Trading Days prior to the Exercise Date.

 

A21.          
“Trading Day” means any day the New York Stock Exchange is open for trading.

 

A22.          
“Transaction Documents” means the Purchase Agreement, the Note, this Warrant, and all other documents,
certificates, instruments and agreements entered into or delivered in conjunction therewith, as the same may be amended from time
to time.

 

A23.          
“VWAP” means the volume-weighted average price of the Common Stock on the principal market for a particular
Trading Day or set of Trading Days, as the case may be, as reported by Bloomberg.

 

 

 

 

 

[Attachment 1 to
Warrant, Page 2]

    	 	 	 

     

    

 

EXHIBIT A

 

NOTICE OF EXERCISE OF WARRANT

 

		TO:	GALA GLOBAL INC.
	 	 	ATTN: _______________
	 	 	VIA FAX TO: ( )______________
EMAIL: ______________

 

The undersigned hereby
irrevocably elects to exercise the right, represented by the Warrant to Purchase Shares of Common Stock dated as of May 15, 2017
(the “Warrant”), to purchase shares of the common stock, $0.001 par value (“Common Stock”),
of Gala Global Inc., and tenders herewith payment in accordance with Section 2 of the Warrant, as follows:

 

	________	CASH: $__________________________
= (Exercise Price x Delivery Shares)
	 	 
	________	Payment is being made by:

 

	 	_______	enclosed check
	 	_______	wire transfer
	 	_______	other

 

	________	CASHLESS EXERCISE:
	 	 
	 	Net number
of Delivery Shares to be issued to Investor: ______*
	 	 
	 	* based on:                     Current Market Value
- (Exercise Price x Exercise Shares)
	 	                                                                     Adjusted Price

 

	 	Where:	 	
	 	Trade price [“TP”]	=	$__________
	 	Exercise Shares	=	___________
	 	Current Market Value [TP x Exercise
Shares]	=	$__________
	 	Exercise Price	=	$__________
	 	Adjusted Price	=	$__________

  

Capitalized terms
used but not otherwise defined herein shall have the meanings ascribed to them in the Warrant.

 

It is the intention
of Investor to comply with the provisions of Section 2.2 of the Warrant regarding certain limits on Investor’s right to receive
shares thereunder. Investor believes this exercise complies with the provisions of such Section 2.2. Nonetheless, to the extent
that, pursuant to the exercise effected hereby, Investor would receive more shares of Common Stock than permitted under Section
2.2, Company shall not be obligated and shall not issue to Investor such excess shares until such time, if ever, that Investor
could receive such excess shares without violating, and in full compliance with, Section 2.2 of the Warrant.

 

As contemplated by
the Warrant, this Notice of Exercise is being sent by email or by facsimile to the fax number and officer indicated above.

 

 

 

 

Exhibit A to
Warrant, Page 1

    	 	 	 

     

    

 

If this Notice of
Exercise represents the full exercise of the outstanding balance of the Warrant, Investor will surrender (or cause to be surrendered)
the Warrant to Company at the address indicated above by express courier within five (5) Trading Days after the Warrant Shares
to be delivered pursuant to this Notice of Exercise have been delivered to Investor.

 

To the extent the
Delivery Shares are not able to be delivered to Investor via the DWAC system, please deliver certificates representing the Delivery
Shares to Investor via reputable overnight courier after receipt of this Notice of Exercise (by facsimile transmission or otherwise)
to:

 

_____________________________________

_____________________________________

_____________________________________

 

Dated:_____________________

 

___________________________

[Name of Investor]

 

By:________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit A to Warrant, Page 2

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