Document:

Letter of Intent

 

December 29, 2015

 

Mr. Michael Bruneau

Aurora Recovery Centre LP

20024 Lakeside Road,

Gimli, Manitoba

 

Dear Michael:

 

 RE: GreeneStone Healthcare Corporation (through a Nominee Company) asset purchase from Aurora Recovery Centre LP

  

This Letter of Intent (“LOI”), if accepted, will constitute the basis for
a formal Agreement of Purchase and Sale between Greenestone Healthcare Corporation in Trust for a Company to be incorporated ("GSGIMLI")
as purchaser and Aurora Recovery Centre LP (“ALP") as seller in which said agreement is to be executed prior to the
expiry of the conditional period set out in Paragraph 13 herein (the “Agreement”).

 

	1.		GSGIMLI is prepared to acquire all of ALP's right, title and interest to its business
assets, a minimum of $1,000,000 in cash and real property namely the two Gimli properties more particularly described in Schedule
A (the “Properties”). Without limiting the generality of the foregoing the assets shall include all interest in the
equipment, chattels, supplies, leasehold improvements, patients, patient files, intellectual property, referral sources and undeveloped
opportunities together with goodwill (the "Assets").

	2.		As consideration GreeneStone and GSGIMLI will pay up to $12,500,000 for the purchase
of the Assets. GSGIMLI will assume total debts of $8,500,000 consisting of a first mortgage of $4,000,000 and a second mortgage
of $4,500,000. GreeneStone will issue 60,000,000 shares as additional consideration for the Assets which at the time of the signing
of this agreement was valued at $4,000,000. GreeneStone shall have no more than 160,000,000 shares outstanding immediately prior
to closing. In addition, GreeneStone combined with its wholly owned subsidiary GreeneStone Clinic Muskoka Inc. ("GCMI"),
shall have no less than $1,000,000 in cash and a maximum of short term liabilities equal to or less than the short term assets
excluding cash immediately prior to closing. The fixed assets of GreeneStone and GCMI combined shall include the Bala, Ontario
property at 3571 Muskoka Road 169 and all of the assets required to conduct the business at this location and the combined long
term liabilities shall not exceed $8,500,000. The transaction shares shall carry rights to participate on a pro-rata basis, in
any new equity issuances by GreeneStone, over and above the shares that will be outstanding at the time of closing, for a period
of two years.

	3.		ALP will designate 20,000,000 of the 60,000,000 shares it receives to be held in escrow
provided the following performance requirements are met. The earnings excluding depreciation and amortization of GSGIMLI shall
not, in the aggregate for the first twenty four months of operations, exceed a loss of $1,000,000. The escrow shares will be released
upon the earlier of 24 months of operations with losses not to exceed $1,000,000 as described above or upon the event that the
aggregate earnings excluding depreciation and amortization reaches $500,000.

	4.		The first mortgage shall be for a term of three years from the date of the closing
of this transaction, be fully open, bearing interest equal to the first mortgage on the GreeneStone property but not exceeding
5.4% per annum, and shall contain provisions preventing GSGIMLI from distributing any funds outside of GSGIMLI for any purpose
other than regular operating expenditures or payments on behalf of the principal and interest of the first mortgage.

	5.		The second mortgage shall be for a term of three years from the date of the closing
of this transaction, be fully open, bearing interest at 5% per annum, and shall contain provisions preventing GSGIMLI from distributing
any funds outside of GSGIMLI for any purpose other than regular operating expenditures or payments on behalf of the principal
and interest of the first mortgage and second mortgage.

	6.		All employees of ALP shall be terminated prior to the closing of the transaction.
It is assumed that any employees or contracted professionals the GCGIMLI wishes to employ will sign new employment or consulting
agreements excluding any carry forward of liability from previous employment with ALP.

	7.		There shall be no other liabilities other than those listed in this letter of Intent
or those listed below that shall be required to be assumed by GCGIMLI for the execution of the business plan.

	8.		Notwithstanding that the ALP shall be selling its assets, it is required to continue
to audit its financial statements and it will be a requirement of the proposed transaction that the ALP audited statements will
be required to be submitted to regulatory bodies in Canada and the United States.

	9.		ALP will represent and warrant that there shall be no liability with respect to the
Properties and the representations and warranties shall also be guaranteed by the mortgage debt and the escrow shares up until
the escrow period is over. There shall be an offset allowed to be applied to the escrow equity for the mitigation of any misrepresentations.
These representations and warranties shall include a bona fide appraisal of the property and environmental audit of the property.

	10.		ALP and its shareholders shall be subject to standard non-competition and non-solicitation
clauses.

	11.		The General Partner of ALP shall be required to submit to GreeneStone its plan of
distribution of the proceeds of the proposed transaction and shall be required to obtain any approvals required by its by-laws
to the proposed transaction and the distribution of the proceeds prior to January 31, 2016.

	12.		ALP will indemnify GreeneStone and any of its affiliates in accordance with Schedule
A hereto, which Schedule forms part of the Agreement and the consideration for which is the entering into of the Agreement. Such
indemnity (the “Indemnity”) shall be executed and delivered to GreeneStone on the execution of this LOI and
shall be in addition to, and not substitution for, any liability which ALP or any other party may have to GreeneStone or other
parties may have apart from the Indemnity.

	13.		The expected Closing Date is February 28, 2016 or another date as mutually agreed
to by the parties hereto. In consideration of the expenditure of time, effort and money to be undertaken by GreeneStone following
the acceptance of this LOI by the ALP partners (collectively, the “Vendors”), ALP partners agree that from and after
the date hereof until the earlier of (a) the closing of the proposed transaction; (b) the date upon which GreeneStone notifies
the ALP partners in writing that it no longer intends to pursue the proposed transaction; and (c) January 31, 2016 (the “Exclusivity
Period”), they will not, and shall not permit, to the extent to which it or they have control or to the extent legally possible,
any officer, director, shareholder, affiliate, agent, representative or other person acting on its or their behalf to, directly
or indirectly, continue, entertain, solicit or enter into any discussions, offers, agreements or negotiations with any other person
(whether solicited or unsolicited), with respect to any transaction of purchase and sale similar to the proposed transaction outlined
in the LOI and shall suspend any existing activities or discussions with any parties other than GreeneStone and its representatives
relating to a similar transaction unless such activities are contemplated by this LOI. ALP partners agree to forthwith advise
GreeneStone of the details and to provide copies of any offers for the Company (by way of assets, shares or otherwise) received
during the Exclusivity Period.

	14.		The Parties agree to work together after the signing of this LOI to prepare a business
plan for the operation of the treatment centre in Gimli. This process will help to determine how ALP will operate until closing.
The business plan will specify what type of resources will be required to operate the facility and the budget for those resources
for at least the first twelve months after closing.

	15.		This letter sets out our intentions as to the principal terms and conditions upon
which the proposed transaction would be completed and, except as set out in this paragraph and paragraph 13, is not a legally
binding obligation of any of the parties. The parties will have no obligation to close the proposed transaction until all relevant
legal agreements have been executed and delivered and all other condition precedents have been completed to their satisfaction.
The binding definitive agreement shall be entered into no later than January 31, 2016 at which time this letter of intent shall
no longer be in effect.

 

Sincerely,

 

GreeneStone Healthcare Corporation

GreeneStone Clinic Muskoka Inc.

 

/s/Shawn E. Leon

Shawn Leon, President

 

Accepted this __29th___ day of December, 2015

Aurora Recovery Center LP

 

/s/Michael Bruneau

Per: Michael Bruneau

 

Aurora Recovery Center GP Ltd.

 

/s/Michael Bruneau

Per: Michael Bruneau

    

    	 

    

SCHEDULE A

 

PROPERTY DETAILS

 

	1.		20024 Lakeside Road, RM of Gimli, Manitoba. Lot size 27.16 Acres
	 	 	 Legal Description (in brief) Lots 2 & 3 Block 4 Plan 29639 WLTO

 

	2.		228 Municipal Drive, Gimli, Manitoba. Lot size 54,776 square feet.
	 	 	Legal Description (in brief) Lots
8 & 9 Block 7 Plan 23733 WLTO

 

    

    	 

    

SCHEDULE B

 

INDEMNITY

 

Promptly after receipt of notice of the
commencement of any third-party legal proceeding against an Indemnified Party or after the discovery of facts, on which an Indemnified
Party intends to base a request for indemnification hereunder, such an Indemnified Party will notify the Company (the “Indemnitor”)
in writing of the commencement thereof or of such a discovery. An Indemnified Party’s failure to provide such notice in
a prompt manner does not relieve Indemnitor of any liability it may have to any Indemnified Party, but in no event shall Indemnitor
be liable for any losses that result directly from a delay in providing such notice. At the request of the Indemnitor, an Indemnified
Party will permit the Indemnitor and their counsel (which Indemnified Party shall find reasonably satisfactory) to assume control
of the defense of any third-party claim, at Indemnitor’s sole cost and expense, that is reasonably likely to give rise to
an indemnification claim hereunder.

 

If control of the defense is assumed
by the Indemnitor, the Indemnitor throughout the course thereof will provide copies of all relevant documentation to an Indemnified
Party , will keep an Indemnified Party advised of the progress thereof and will discuss with an Indemnified Party all significant
actions proposed. An Indemnified Party may employ, at any time, separate counsel to represent it; provided, that such an Indemnified
Party is solely responsible for the costs and expenses of any such separate counsel.

 

Notwithstanding the foregoing, an Indemnified
Party shall have the right, at the Indemnitor’s expense, to employ counsel of such Indemnified Party’s choice, in
respect of the defence of any action, suit, proceeding, claim or investigation (collectively, “Claim”) if: (i) the
employment of such counsel has been authorized by the Indemnitor; (ii) the Indemnitor has not assumed the defence and employed
counsel therefore within a reasonable time after receiving notice of such Claim; or (iii) the Indemnified Party reasonably believes
that (a) there may be legal defences available to the Indemnified Party which are different from or in addition to those available
to the Indemnitor, (b) there is a conflict of interest between the Indemnitor and the Indemnified Party or the subject matter
of the Claim or (c) such Claim involves, or could have a material effect on, any material matter beyond the scope of the indemnification
obligations of the Indemnitor.

 

No admission of liability and no settlement
of any Claim shall be made without the consent of the Indemnified Parties affected, such consent not to be unreasonably withheld.
The Indemnitor shall not be liable for any settlement of any Claim made without its consent(such consent not to be unreasonably
withheld), unless (a) such Claim is one for which the Indemnified Party gave the Indemnitor notice and the Indemnitor fails to
assume the defense or (b) such settlement (i) includes an unconditional release of the Indemnitor from all liability arising out
of such Claim and (ii) does not contain any admission or statement suggesting any wrongdoing or liability on behalf of the Indemnitor.

 

The indemnity and contribution obligations of the Indemnitor shall be in addition
to any liability which the Indemnitor may otherwise have, and shall be binding upon and enure to the benefit of any
successors, assigns, heirs and personal representatives of the Indemnitor and the Indemnified Parties. The foregoing
provisions shall survive the completion of the Transaction or any termination of the LOI.

 

Aurora Recovery Center LP

 

/s/ Michael Bruneau

Per: Michael Bruneau

 

Aurora Recovery Center GP Ltd.EX-10.1

 Exhibit 10.1 

CONSULTANCY AGREEMENT 

WILLIAM S. HUSSEY 
 This
Consultancy Agreement (“Agreement”) is entered into by and between CHSPSC, LLC a Delaware corporation (“CHSPSC”), and William S. Hussey (“Consultant”). 

1. Work to Be Performed. It is necessary and/or advisable to promote the interests of CHSPSC and associated entities that the
Consultant provide ongoing consulting services related to matters of administration, healthcare operations, healthcare management and other assignments as requested by Wayne T. Smith, Chairman and Chief Executive Officer (“Smith”) or
designee. Consultant is not entitled to this Consultancy but for this offer by CHSPSC. 
 2. Term of Agreement. The services called
for under this Agreement shall commence on January 1, 2016, and extend through March 31, 2018. The hours worked on a daily or weekly basis shall be as mutually agreed upon between Consultant and CHSPSC, but shall in no event require
Consultant to work, on average, more than eight hours per week. The Agreement may be terminated by CHSPSC or by Consultant at any time upon 30 days written notice to either party. 

3. Terms of Payment. From January 1, 2016 to December 31, 2017, CHSPSC shall pay Consultant $12,500 per month. Each monthly
installment shall be paid, in arrears, on the 1st business day of each month following the month of service. The timing and amount of any payments are subject to any deductions pursuant to
Section 7. From January 1, 2018 to March 31, 2018, no additional payments shall be made to Consultant by CHSPSC, other than those already made, for any services provided under this Agreement. 

4. Reimbursement of Expenses. CHSPSC shall reimburse Consultant for any reasonable expenses paid or incurred by Consultant while
traveling on behalf of CHSPSC. However, no expense shall be incurred on behalf of or paid or reimbursed by CHSPSC unless approved in advance by CHSPSC. 

5. Payroll Taxes. CHSPSC shall neither pay nor withhold federal, state, or local income tax or payroll tax of any kind on behalf of
Consultant or the employees of Consultant. Consultant shall not be treated as an employee for the services performed hereunder for federal, state, or local tax purposes. 

6. Workers’ Compensation. As an independent contractor, Consultant is not eligible for workers’ compensation coverage. 

7. Independent Contractor Status; Post Employment Vesting and Benefits. Consultant expressly represents and warrants to CHSPSC that
(i) Consultant is not and shall not be construed to be an employee of CHSPSC and that Consultant’s status shall be that of an independent contractor for which Consultant is solely responsible for his actions and inactions,
(ii) Consultant shall not act as an employee or agent of CHSPSC, and (iii) Consultant is not authorized to enter into contracts or agreements on behalf of CHSPSC or to otherwise create obligations or liabilities of CHSPSC to third parties.

 Consultant was an employee of CHSPSC through December 31, 2015 and as such participated in
certain benefit arrangements. The parties acknowledge and agree that as long as this Agreement shall remain in effect as provided in Section 2 of this Agreement, Consultant shall continue to vest in any previously granted options and/or
restricted stock in Community Health Systems, Inc. in accordance with the vesting schedule applicable to any such options or restricted stock at the time of grant and as amended and approved under this Consultancy Agreement. 

Consultant and his spouse retain the right to elect COBRA. Based on years of service as an executive of CHSPSC, Consultant shall be paid a gross amount of
$2,000 in January of 2016 toward post-employment benefits. 
 8. Background Checks/Substance Abuse Screening. Consultant agrees that
implementation of this Agreement may require additional background checks (e.g. criminal, credit, and driving) and Substance screening at the discretion of CHSPSC. Consultant further agrees to execute any authorizations that are required by CHSPSC
to perform any background checks or Substance screenings. 
 9. Confidential Matters and Proprietary Information. Consultant
recognizes that during the course of performance of the Agreement, he/she may acquire knowledge of confidential business information and/or trade secrets (“confidential information”). Consultant agrees to keep all such confidential
information in a secure place and not to publish, communicate, use, or disclose, directly or indirectly, for his/her own benefit or for the benefit of another, either during or after performance of the Agreement, any such confidential business
information or trade secrets. Upon termination or expiration of this Agreement, Consultant shall deliver all records, data, information, and other documents produced or acquired during the performance of this Agreement, and all copies thereof, to
CHSPSC. Such material shall remain the property of CHSPSC. This obligation of confidence shall not apply to information that is available to the Consultant from third parties on an unrestricted basis. Consultant will notify CHSPSC immediately upon
receipt of any subpoena or other legal process. 
 10. Covenant Not to Compete; Conflicts of Interest. Consultant hereby covenants
and agrees with CHSPSC that commencing on the date hereof and continuing through the term of this Agreement, Consultant will not, unless waived by the Chairman and Chief Executive Officer in his sole discretion, or designee, directly or indirectly,
anywhere in the United States: 
 (a) Accept an offer of employment, serve as a consultant in a same or similar capacity as his/her current
or previous position(s) with CHSPSC, or act as an agent for or as an officer, director, employee, or other representative of any hospital, medical center, network, healthcare system or other healthcare providers or facilities located within fifty
(50) miles of a facility or business that competes with CHSPSC or any other CHS affiliates or with any contractor, supplier, or vendor to CHSPSC or any other CHS affiliate; 

  
 Page 2 of 5 

 (b) Interfere with, solicit, disrupt, or attempt to disrupt any past, present, or prospective
relationship, contractual or otherwise, between CHSPSC (or any other CHS affiliate) and any physician, supplier, or employee of CHSPSC (or any other CHS affiliate); 

(c) Employ, solicit for employment, or advise or recommend to any other person that they employ or solicit for employment, any employee of
CHSPSC (or any other CHS affiliate); or 
 (d) Discuss with any hospital, medical center, network, healthcare system or other healthcare
providers or facilitates, the present or future availability of services or products by a business, if Consultant has or expects to acquire a proprietary interest in such business or is or expects to be an executive, officer, or director of such
business, where such services or products are competitive with the services or products of CHS or any affiliated entities. 
 In connection
with the foregoing provisions of this Section 10, Consultant represents that the limitations set forth herein are reasonable and properly required for the adequate protection of CHSPSC. If a judicial determination is made that any of the
provisions of this Section 10 constitutes an unreasonable or otherwise unenforceable restriction against Consultant, the parties hereto hereby agree that any judicial authority construing this Agreement shall modify Section 10 hereof to
the extent necessary to protect CHSPSC’s interests, in accordance with Section 13 (c). The time period for the prohibitions in this Section 10 tolls, and does not run, for the amount of time that the Consultant violates such
prohibitions in any respect. 
 11. Reports. Consultant, when directed, shall provide written reports with respect to the services
rendered thereunder. 
 12. Liability and Indemnification. Consultant agrees to indemnify, hold harmless, and defend CHSPSC for,
from, and against any claims, demands, actions, settlements, judgments, costs, or damages, including reasonable attorneys’ fees and court costs, arising out of or related to this Agreement to the extent such claims, demands, actions,
settlements, judgments, costs, or damages relate to the negligence or intentional misconduct of Consultant, his agents, representatives, and employees. This provision shall apply during the term of this Agreement and shall survive the termination of
this Agreement. 
 13. Miscellaneous. 

(a) Entire Agreement. Except for any award agreements evidencing grants of any options or restricted stock in Community Health Systems, Inc.
referred to in Section 7, this Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior oral or written agreements, if any, between the parties. Neither party has made any
representations that are not contained in this Agreement. 

  
 Page 3 of 5 

 (b) Amendment. This Agreement may be amended only in writing by an agreement of the parties
signed by Consultant and CHSPSC and identified as an amendment to this Agreement. 
 (c) Severability. If any provision or part of any
provision of this Agreement is deemed to be unenforceable by a court of competent jurisdiction, then the parties agree that such provision shall be severed from the Agreement and the remainder of the Agreement shall remain in full force and effect.
The parties further agree that, to the extent a court of competent jurisdiction deems any provision of this Agreement unenforceable, such court shall have the power to modify the terms of the Agreement by adding, deleting, or changing in its
discretion any language necessary to make such provision enforceable to the maximum extent permitted by law, and the parties expressly agree to be bound by any such provision as reformed by the court. 

(d) Waiver. No waiver of any provisions of this Agreement shall be effective unless the waiver is in writing and duly executed by Consultant
and an Officer of CHSPSC. 
 (e) Successors. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, executors, administrators, personal representatives, successors, and assigns; provided, however, that Consultant shall not have the right to assign this Agreement to any other party. 

(f) Choice of Law and Venue. This Agreement shall be governed by the laws of the State of Tennessee without regard to the application of the
conflicts-of-law laws of the State of Tennessee or any other jurisdiction and without the benefit of any rule of construction under which a contract is construed against the drafter. Venue for any action arising out of or related to this Agreement
shall lie with the courts of competent jurisdiction located in Williamson County, Tennessee, and/or, if jurisdiction lies therein, the United States District Court for the Middle District of Tennessee, and Consultant agrees to submit to the
jurisdiction of such courts and waives any defense of lack of personal jurisdiction. 
 (g) References. The heading and caption references
of this Agreement are provided for convenience only and are intended to have no effect in construing or interpreting this Agreement. References to the male gender shall include references to the female gender and vice versa, as applicable according
to the context; references to the singular tense shall include references to the plural tense and vice versa, as applicable according to the context. 

(h) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original document and all
of which, taken together, shall be deemed to constitute a single original document. 
 (i) Notices. Any notice or other communications under
this Agreement shall be in writing, signed by the party making the same, and shall be delivered personally or sent by certified or registered mail, postage prepaid, as follows: 

  
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	        If to Consultant:	William S. Hussey
 6904 Stone Run Drive
 Nashville, TN 37211 

  

	        If to CHSPSC:	CHSPSC, LLC
 Attention: General Counsel
 4000 Meridian Boulevard
 Franklin, TN 37067 

 All such
notices shall be deemed given on the date personally delivered or, if mailed, three days after the date of mailing. 
 IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed as of this 31st day of December, 2015. 
  

									
	CONSULTANT	 		 	CHSPSC, LLC
				
	 /s/ William S. Hussey
	 		 	By:	 	/s/ Wayne T. Smith
	William S. Hussey	 		 		 	Wayne T. Smith
		 		 		 		 	Chairman & CEO

 For convenience, this Agreement may be signed and electronically transmitted between the Parties and be as
effective as a signed, paper agreement.  

  
 Page 5 of 5

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