Document:

Exhibit 10.15

 

 

NEITHER THE ISSUANCE
AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

 

	Principal Amount: $83,000.00

                                                                                Purchase Price: $83,000.00
	Issue Date: December 24, 2018

                                                                                

 

 

CONVERTIBLE PROMISSORY NOTE

 

FOR
VALUE RECEIVED, Target Group Inc. fka Chess Supersite Corporation, a Delaware corporation (hereinafter called the “Borrower”),
hereby promises to pay to the order of POWER UP LENDING GROUP LTD., a Virginia corporation, or registered assigns (the “Holder”)
the sum of $83,000.00 together with any interest as set forth herein, on June 24, 2020 (the “Maturity Date”), and to
pay interest on the unpaid principal balance hereof at the rate of twelve percent (12%)(the “Interest Rate”) per annum
from the date hereof (the “Issue Date”) until the same becomes due and payable, whether
at maturity or upon acceleration or by prepayment or otherwise. This Note may not be prepaid in whole or in part except as otherwise
explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at
the rate of twenty two percent (22%) per annum from the due date thereof until the same is paid (“Default Interest”).
Interest shall be computed on the basis of a 365 day year and the actual number of days elapsed. Interest shall commence accruing
on the Issue Date but shall not be payable until the Note becomes payable (whether at Maturity Date or upon acceleration or by
prepayment). All payments due hereunder (to the extent not converted into common stock, $0.0001 par value per share (the “Common
Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments
shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the
provisions of this Note. Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto
in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase
Agreement”).

 

This
Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive
rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

The following terms shall apply to this Note:

  

ARTICLE I. CONVERSION
RIGHTS

 

1.1                
Conversion Right. The Holder shall have the right from time to time, and at any time during the period beginning
on the date which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity
Date and (ii) the date of payment of the Default

 

     

     

    

 

Amount (as defined in Article
III), each in respect of the remaining outstanding principal amount of this Note to convert all or any part of the outstanding
and unpaid principal amount of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists
on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter
be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”);
provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of
that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the
Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the
unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation
on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable
upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result
in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes
of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as
otherwise provided in clause (1) of such proviso. The beneficial ownership limitations on conversion as set forth in the section
may NOT be waived by the Holder. The number of shares of Common Stock to be issued upon each conversion of this Note shall
be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date
specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered
to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile
or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York,
New York time on such conversion date (the “Conversion Date”); however, if the Notice of Conversion is sent after 6:00pm,
New York, New York time the Conversion Date shall be the next business day. The term “Conversion Amount” means, with
respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus
(2) at the Holder’s option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided
in this Note to the Conversion Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred
to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder
pursuant to Sections 1.4 hereof.

 

1.2               Conversion
Price. The conversion price (the “Conversion Price”) shall equal the Variable Conversion Price (as defined
herein) (subject to equitable adjustments by the Borrower relating to the Borrower’s securities or the securities of
any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar
events). The "Variable Conversion Price" shall mean 61% multiplied by the Market Price (as defined herein)
(representing a discount rate of 39%). “Market Price” means the average of the lowest three (3) Trading Prices
(as defined below) for the Common Stock during the fifteen (15) Trading Day period ending on the latest complete Trading Day
prior to the Conversion Date. “Trading Price” means, for any security as of any date, the closing bid price on
the OTCQB, OTCQX, Pink Sheets electronic quotation system or applicable trading market (the “OTC”) as reported by
a reliable reporting service (“Reporting Service”) designated by the Holder (i.e. Bloomberg) or, if the OTC is
not the principal trading market for such security, the closing bid price of such security on the principal securities
exchange or trading market where such security is listed or traded or, if no closing bid price of such security is available
in any of the foregoing manners, the average of the closing bid prices of any market makers for such security that are listed
in the “pink sheets”. If the Trading Price cannot be calculated for such security on such date in the manner
provided above, the Trading Price shall be the fair market value as reasonably determined by the Borrower. “Trading
Day” shall mean any day on which the Common Stock is tradable for any period on the OTC, or on the principal securities
exchange or other securities market on which the Common Stock is then being traded.

 

    	 	2	 

     

    

 

1.3              
Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve
from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance
of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all
times to have authorized and reserved eight times the number of shares that would be issuable upon full conversion of the Note
(assuming that the 4.99% limitation set forth in Section 1.1 is not in effect)(based on the respective Conversion Price of the
Note (as defined in Section 1.2) in effect from time to time, initially 12,958,626)(the “Reserved
Amount”). The Reserved Amount shall be increased (or decreased with the written consent of the Holder) from time to time
in accordance with the Borrower’s obligations hereunder. The Borrower represents that upon issuance, such shares will be
duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change
to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the
then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient
number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Note.
The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock
issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers
and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares
of Common Stock in accordance with the terms and conditions of this Note.

 

If, at any time the Borrower
does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note.

 

		1.4	Method of Conversion.

 

(a)                
Mechanics of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time during the period
beginning on the date which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the
Maturity Date and (ii) the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part
at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail
or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B)
subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts
owed hereunder).

 

(b)               
Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of
this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower
unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing
the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to
the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion.

 

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(c)                
Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission
or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided
in this

Section 1.4, the Borrower
shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock
issuable upon such conversion within two (2) business days after such receipt (the “Deadline”) (and, solely in the
case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and
the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of
record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid
interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations hereunder,
all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the
Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given
a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common Stock
shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or
consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same,
any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim,
recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective
of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion.

 

(d)               
Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common
Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast
Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set
forth herein, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable
upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit and Withdrawal
at Custodian (“DWAC”) system.

 

(e)               
Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue
other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable
upon conversion of this Note is not delivered by the Deadline due to action and/or inaction of the Borrower, the Borrower shall
pay to the Holder $2,000 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock
(the “Fail to Deliver Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result
of a third party (i.e., transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts
of the Borrower to effect delivery of such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month
following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day
of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event
interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible
into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right
to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult
if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages provision contained in this Section
1.4(e) are justified.

 

    	 	4	 

     

    

 

1.5                
Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred
unless: (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer
agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions

of counsel in comparable transactions)
to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration
(such as Rule 144 or a successor rule) (“Rule 144”); or (iii) such shares are transferred to an “affiliate”
(as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section
1.5 and who is an Accredited Investor (as defined in the Purchase Agreement).

 

Any restrictive legend on
certificates representing shares of Common Stock issuable upon conversion of this Note shall be removed and the Borrower shall
issue to the Holder a new certificate therefore free of any transfer legend if the Borrower or its transfer agent shall have received
an opinion of counsel from Holder’s counsel, in form, substance and scope customary for opinions of counsel in comparable
transactions, to the effect that (i) a public sale or transfer of such Common Stock may be made without registration under the
Act, which opinion shall be accepted by the Company so that the sale or transfer is effected; or (ii) in the case of the Common
Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an effective registration
statement filed under the Act; or otherwise may be sold pursuant to an exemption from registration. In the event that the Company
does not reasonably accept the opinion of counsel provided by the Holder with respect to the transfer of Securities pursuant to
an exemption from registration (such as Rule 144), at the Deadline, it will be considered an Event of Default pursuant to Section
3.2 of the Note.

 

		1.6	Effect of Certain Events.

 

(a)                
Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or
substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions
in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination
of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed
to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon
the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III). “Person”
shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.

 

(b)               
Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior
to conversion of all of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization,
or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different
number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale
or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation
of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the
basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable
upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had
this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth
herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this
Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and
of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable
in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction
described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, ten (10) days prior written notice (but
in any event at least five (5) days prior written notice) of the record date of the special meeting of shareholders to approve,
or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization
or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting
successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Note. The above provisions
shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

 

    	 	5	 

     

    

 

(c)                
Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to
acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including
any dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock
of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion
of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such
assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had
such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to
such Distribution.

 

1.7              
Prepayment. Notwithstanding anything to the contrary contained in this Note, at any time during the periods set forth
on the table immediately following this paragraph (the “Prepayment Periods”), the Borrower shall have the right, exercisable
on not more than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal
and accrued interest), in full, in accordance with this Section 1.7. Any notice of prepayment hereunder (an “Optional Prepayment
Notice”) shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower
is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days
from the date of the Optional Prepayment Notice. On the date fixed for prepayment (the “Optional Prepayment Date”),
the Borrower shall make payment of the Optional Prepayment Amount (as defined below) to Holder, or upon the direction of the Holder
as specified by the Holder in a writing to the Borrower (which direction shall to be sent to Borrower by the Holder at least one
(1) business day prior to the Optional Prepayment Date). If the Borrower exercises its right to prepay the Note, the Borrower shall
make payment to the Holder of an amount in cash equal to the percentage (“Prepayment Percentage”) as set forth in the
table immediately following this paragraph opposite the applicable Prepayment Period, multiplied by the sum of: (w) the then outstanding
principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional
Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any
amounts owed to the Holder pursuant to Section 1.4 hereof (the “Optional Prepayment Amount”). If the Borrower delivers
an Optional Prepayment Notice and fails to pay the Optional Prepayment Amount due to the Holder of the Note within two (2) business
days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepay the Note pursuant to this Section
1.7.

 

 

	Prepayment Period	Prepayment Percentage
	1.      The period beginning on the Issue Date and ending on the date which is thirty (30) days following the Issue Date.	115%
	
        2.       The
period beginning on the date which is thirty-one (31) days following the Issue Date and ending on the date which is sixty (60)
days following the Issue Date.
	120%

 

 

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        3.       The
period beginning on the date which is sixty-one (61) days following the Issue Date and ending on the date which is ninety (90)
days following the Issue Date.
	125%
	
        4.       The
period beginning on the date that is ninety-one (91) day from the Issue Date and ending one hundred twenty (120) days following
the Issue Date.
	130%
	
        5.       The
period beginning on the date that is one hundred twenty-one (121) day from the Issue Date and ending one hundred fifty (150) days
following the Issue Date.
	133%
	
        6.       The
period beginning on the date that is one hundred fifty-one (151) day from the Issue Date and ending one hundred eighty (180) days
following the Issue Date.
	135%

 

 

After the expiration of one hundred
eighty (180) days following the Issue Date, the Borrower shall have no right of prepayment.

 

ARTICLE II. CERTAIN
COVENANTS

 

2.1 Sale
of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s
written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business.
Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.

 

ARTICLE III. EVENTS OF DEFAULT

 

If any of the following events of default (each,
an “Event of Default”) shall occur:

 

3.1              
Failure to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due
on this Note, whether at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice
from the Holder.

 

3.2              
Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens
in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in
accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in
certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to
this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or
hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of
Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note,
or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing)
any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of
Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes
any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and
any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not
be rescinded in writing) for two (2) business days after the Holder shall have delivered a Notice of Conversion. It is an obligation
of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this Note, if a
conversion of this Note is delayed, hindered or frustrated due to a balance

owed by the Borrower to its
transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to
process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty-eight (48) hours of a demand
from the Holder.

 

    	 	7	 

     

    

 

3.3              
Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in
this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period
of twenty (20) days after written notice thereof to the Borrower from the Holder.

 

3.4              
Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement,
statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase
Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of
time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

 

3.5              
Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors,
or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business,
or such a receiver or trustee shall otherwise be appointed.

 

3.6              
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or
involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower
or any subsidiary of the Borrower.

 

3.7              
Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of
the OTC (which specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement
exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.

 

3.8              
Failure to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the
Exchange Act; and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.

 

3.9              
Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

3.10          
Cessation of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable
to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as
a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

3.11          
Financial Statement Restatement.The restatement of any financial statements filed by the Borrower with the SEC
at any time after 180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result
of such restatement would, by comparison to the un-restated financial statement, have constituted a material adverse effect on
the rights of the Holder with respect to this Note or the Purchase Agreement.

 

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3.12            
Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower
fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in
a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve
shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.

 

3.13          
Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion
documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements,
after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default
under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights
and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement
or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the
Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory
notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this
Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future
debt of Borrower to the Holder.

 

Upon the occurrence and
during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal
hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower
shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Amount (as defined
herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME
IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT
EQUAL TO: (Y) THE DEFAULT AMOUNT (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation
of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon
when due on this Note or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery
of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default
specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity
Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder,
in full satisfaction of its obligations hereunder, an amount equal to the greater of (i) 150% times the sum of (w)
the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount
of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on
the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Section 1.4(e) hereof
(the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x),
(y) and (z) shall collectively be known as the “Default Amount”) and all other amounts payable hereunder shall immediately
become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all
costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all
other rights and remedies available at law or in equity.

 

If the Borrower fails to pay
the Default Amount within five (5) business days of written notice that such amount is due and payable, then the Holder shall have
the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized
shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of

shares of Common Stock of the Borrower equal to the
Default Amount divided by the Conversion Price then in effect.

 

    	 	9	 

     

    

 

ARTICLE IV. MISCELLANEOUS

 

4.1              
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right
or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing
hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

4.2              
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where
such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during
normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
The addresses for such communications shall be:

 

If
to the Borrower, to:

 

Target
Group Inc. fka Chess Supersite Corporation

55 Administration Road, Unit 8

Vaughan,
Ontario, Canada L4K 4G9

Attn:
Rubin Schindermann, Chief Executive Officer Fax:

Email:
rschinderman@rogers.com

 

If
to the Holder:

 

POWER
UP LENDING GROUP LTD.

111
Great Neck Road, Suite 214 Great Neck, NY 11021

Attn:
Curt Kramer, Chief Executive Officer

e-mail: info@poweruplending.com

 

With
a copy by fax only to (which copy shall not constitute notice):

 

Naidich
Wurman LLP

111
Great Neck Road, Suite 216

Great
Neck, NY 11021 Attn: Allison Naidich

facsimile:
516-466-3555 e-mail: allison@nwlaw.com

 

    	 	10	 

     

    

 

4.3              
Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower
and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument
(and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then
as so amended or supplemented.

 

4.4              
Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be
the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor”
(as defined in Rule 501(a) of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this
Note may be pledged as collateral in connection with a bona fide margin account or other lending arrangement; and may be
assigned by the Holder without the consent of the Borrower.

 

4.5              
Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs
of collection, including reasonable attorneys’ fees.

 

4.6              
Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Virginia
without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions
contemplated by this Note shall be brought only in the state courts of New York or in the federal courts located in the Eastern
District of New York. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted
hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The
Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable
attorney's fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith
is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision
which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of
any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit,
action or proceeding in connection with this Note, any agreement or any other document delivered in connection with this Note by
mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other
manner permitted by law.

 

4.7              
Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the
Purchase Agreement.

 

4.8              
Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm
to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges
that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach
or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other
available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining,
preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity
of showing economic loss and without any bond or other security being required.

 

    	 	11	 

     

    

 

IN WITNESS WHEREOF, Borrower has
caused this Note to be signed in its name by its duly authorized officer this on December 24, 2018

 

Target Group Inc. fka Chess
Supersite Corporation

 

 

By:   _____________________

Rubin Schindermann

Chief Executive Officer

 

    	 	12	 

     

    

  

EXHIBIT A -- NOTICE OF CONVERSION

 

 

The
undersigned hereby elects to convert $_____________ principal amount of the Note (defined below) into that number of shares of Common Stock
to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of Target Group Inc. fka
Chess Supersite Corporation, a Delaware corporation (the “Borrower”) according to the conditions of the convertible
note of the Borrower dated as of December 24, 2018 (the “Note”), as of the date written below. No fee will be charged
to the Holder for any conversion, except for transfer taxes, if any.

 

Box Checked as to applicable instructions:

 

		[  ]	The Borrower shall electronically transmit the Common
Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit
Withdrawal Agent Commission system (“DWAC Transfer”).

 

Name
of DTC Prime Broker:

Account
Number:

 

		[  ]	The undersigned hereby requests that the Borrower issue
a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s
calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment
hereto:

 

POWER UP LENDING GROUP LTD.

111 Great Neck Road, Suite 214 Great Neck, NY
11021 Attention: Certificate Delivery

e-mail: info@poweruplendinggroup.com

 

	Date of conversion:	 	 
	Applicable Conversion Price:	$	 
	Number of shares of common stock to be issued		 
	pursuant to conversion of the Notes:

	 	 
	Amount of Principal Balance due remaining	 	 
	under the Note after this conversion:		 

 

 

POWER UP LENDING GROUP LTD.

 

By:___________________________

Name: Curt Kramer

Title: Chief Executive Officer

Date: ______________

 

    	 	13Exhibit 10.16

 

 

DISTRIBUTION, COLLABORATION
AND LICENCING AGREEMENT

 

THIS AGREEMENT made
this 6th day of
December,
2018,

  

BETWEEN:

 

Serious Seeds B.V., incorporated under the laws of
the Netherlands and having its registered office at •

 

(hereinafter referred to as the “Serious”)

 

– and –

 

Canary Rx Inc., incorporated under the laws of the
Province of Ontario and having its registered office at 385 Second Avenue West, Simcoe, On, CANADA

 

(hereinafter referred to as the “Canary”)

 

Serious and Canary are
sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

 

– and –

 

Target Group Inc., incorporated under the laws of the
State of Delaware and having its registered office at •

 

(hereinafter referred to as the “Target”)

 

– and –

 

Simon Smit,
an individual whose complete address for service is •

 

 

 

Recitals

 

WHEREAS Serious is in the
business of developing, marketing, selling, and distributing the Products (as defined below);

 

AND WHEREAS Canary is in
the business of growing, marketing, selling, and distributing Cannabis and Cannabis products;

 

AND WHEREAS Serious and
Canary wish to collaborate to create the Collaborative Products (as defined below);

 

AND WHEREAS Serious desires
to appoint Canary as its exclusive worldwide distributor of the Products, the Harvested Products and the Collaborative Products
and Canary desires to accept such appointment in the Territory (all as defined below);

 

AND WHEREAS Serious is
the holder of the intellectual property right to Serious’ IP, the Licenced Mark, the Notoriety, and Simon’s name (all
as defined below);

 

AND WHERAS Canary wishes
to commercialize the Products, the Collaborative Products using the Licenced Mark, the Notoriety, and Simon’s name (all as
defined below);

 

     

    	 	2	 

    

 

NOW THEREFORE, in consideration
of these premises, the covenants and agreements hereinafter set forth and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto covenant and agree as follows:

 

ARTICLE
1 – INTERPRETATION

 

		1.1	Definitions

 

In this Agreement, unless
something in the subject matter or context is inconsistent therewith:

 

“Affiliate”
- means any person that, directly or indirectly (through one or more intermediaries) controls, is controlled by, or is under common
control with a Party. For purposes of this definition, “control” means (i) the direct or indirect ownership of more
than fifty percent (50%) of the voting stock or other voting interests or interest in the profits of the Party, or (ii) the ability
to otherwise control or direct the decisions of board of directors or equivalent governing body thereof;

 

“Applicable
Law” - means any law, regulation, rule, guidance, order, judgment or decree having the force
of law applicable to the Parties and their activities under this Agreement;

 

“Auditor”
 – has the meaning ascribed to it in Section 5.4;

 

“BCA”
 – means the Business Corporations Act (Ontario) as now enacted and, unless otherwise indicated, as the same may from
time to time be amended, re enacted or replaced;

 

“Calendar
Quarter” means the three (3) month periods ending on March 31, June 30, September 30 and December 31 in each Calendar Year;

 

“Calendar
Year” means, in respect of any particular year, the one (1) year period beginning on January 1 and ending on December 31;

 

“Collaborative
Products” – means products created collaboratively by Serious and Canary, including those products which are created
using Serious' IP;

 

“Commercialize”
- means any and all activities directed to the preparation for sale of, offering for sale of, or sale of the Products, Harvested
Products and Collaborative Products, including activities related to marketing, distributing, Promoting, importing and exporting,
offering for sale, and selling the Products and Collaborative Products and interacting with Regulatory Authorities regarding any
of the foregoing;

 

“Confidential
Information” – means proprietary Know-How (of whatever kind and in whatever form or medium, including copies thereof),
tangible materials or other deliverables (a) disclosed by or on behalf of a Party in connection with this Agreement, whether
prior to or during the Term and whether disclosed orally, electronically, by observation or in writing, or (b) created by,
or on behalf of, either Party and provided to the other Party, or created jointly by the Parties, in the course of this Agreement.
For the avoidance of doubt, “Confidential Information” includes (i) Know-How regarding such Party’s research,
development plans, technology, products, business information or objectives and other information of the type that is customarily
considered to be confidential information by entities engaged in activities that are substantially similar to the activities being
engaged in by the Parties pursuant to this Agreement and (ii) any tangible materials or other deliverables provided by one Party
to the other Party pursuant to this Agreement;

 

“CRA”
 – means Canada Revenue Agency;

 

     

    	 	3	 

    

 

“Effective
Date” – means October 15, 2018;

 

“Expense
Amount” - has the meaning ascribed to it in Section 5.6;

 

“Expense
Report” – has the meaning ascribed to it in Section 5.6;

 

“Final
Period” – has the meaning ascribed to it in Section 5.2;

 

“Final
True-Up Report” – has the meaning ascribed to it in Section 5.2;

 

“Governmental
Authority” - means any domestic or foreign entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, including any governmental authority, agency, department, board, commission, court, tribunal,
judicial body or instrumentality of any union of nations, federation, nation, state, municipality, county, locality or other political
subdivision thereof;

 

“Gross
Profit” – means the total, not including any taxes, of all sales by Canary of Serious’ Products minus the total
cost, including production costs and costs of obtaining Regulatory Approval, of Serious’ Products sold by Canary;

 

“Gross
Sales” – means the total, not including any taxes, of all sales by Canary of Serious’ Harvested Products and
Seriously Canary seeds and Seriously Canary Harvested Products;

 

“Harvested
Products” – means cannabis cuttings, dried flowers, and extracts harvested by Canary in Canada;

 

“Indemnitee”
 – has the meaning ascribed to it in Section 7.2;

 

“Indemnitor”
 – has the meaning ascribed to it in Section 7.2;

 

“Initial
Term” – has the meaning ascribed to it in Section 9.1;

 

“ITA”
 – means the Income Tax Act (Canada) as now enacted and, unless otherwise indicated, as the same may from time to time be
amended, re enacted or replaced;

 

“Know-How”
means all information, improvements, practices, formula, trade secrets, techniques, methods, procedures, knowledge, results, test
data, analytical and quality control data, protocols, processes, models, designs, and other information regarding discovery, development,
marketing, pricing, distribution, cost, sales and manufacturing;

 

“Licenced
Mark” – means the service mark Serious Seeds, and such other names and marks which Serious, in its sole discretion,
shall from time to time authorize Canary to use;

 

“Loss”
or “Losses” – has the meaning ascribed to it in Section 7.1;

 

“Payments”
 – has the meaning ascribed to it in Section 5.1(c)(i);

 

“Permitted
Expenses” – has the meaning ascribed to it in Section 5.6;

 

“Products”
 – means all proprietary Cannabis seed strains created and owned by Serious, including Seriously Limited, Seriously Medical,
and Seriously Customized;

 

“Production
Costs” - means all costs resulting from the cultivation, development, and processing of the Collaborative Products;

 

     

    	 	4	 

    

 

“Regulatory
Approval” means, with respect to a country or other jurisdiction in the Territory, any and all approvals or premarket notifications,
licences, registrations, certificates, or authorizations of any Regulatory Authority necessary to Commercialize the Products, Harvested
Products or Collaborative Products in such country or other jurisdiction, including, where applicable, pre- and post-approval marketing
authorizations;

 

“Regulatory
Authority” means any applicable supra-national, federal, national, regional, state, provincial, or local governmental or
regulatory authority, agency, department, bureau, commission, council, or other entities (e.g., Health Canada, FDA) regulating
or otherwise exercising authority with respect to activities contemplated in this Agreement, including the Commercialization of
the Products, Harvested Products and Collaborative Products in the Territory;

 

“Renewal
Term” – has the meaning ascribed to it in Section 9.1;

 

“Report”
 – has the meaning ascribed to it in Section 5.2;

 

“Resulting
IP” – has the meaning ascribed to it in Section 3.2;

 

“Royalties”
 – has the meaning ascribed to it in Section 5.1(c)(ii);

 

“Serious’
IP” - means the Products’ genetics;

 

“Seriously
Canary” – means the brand name of the Collaborative Products;

 

“Simon”
 – means Simon Smit, principal, operator and breeder of Serious Seeds;

 

“Term”
 – means the Initial Term and any Renewal Term;

 

“Territory”
 – means the entire world;

 

“Third
Party” – means any entity other than Serious or Canary;

 

“Third
Party Claims” – has the meaning ascribed to it in Section 7.1; and

 

“Travel
Requirement” – has the meaning ascribed to it in Section 6.1(a)

 

		1.2	Extended Meanings

 

In this Agreement, unless
something in the subject matter or context is inconsistent therewith:

 

		(a)	words importing the singular number shall include the plural and vice versa;

 

		(b)	words importing a gender shall include the masculine, feminine and neuter genders;

 

		(c)	words importing persons shall include individuals, partnerships, corporations, unincorporated organizations,
associations, trusts, trustees, government agencies and any other form of organization or entity whatsoever;

 

		(d)	any general terms followed by specific examples, whether using “includes”, “including”,
 “such as” or other similar terms, shall be interpreted broadly according to their full meaning and will not be limited
to or by the examples listed; and

 

		(e)	all terms defined in the BCA and the ITA and not otherwise defined herein shall have the meanings
herein ascribed thereto therein.

 

     

    	 	5	 

    

 

		1.3	Sections and Headings

 

The division of this Agreement
into Articles, sections and paragraphs and the use of headings are for convenience of reference only and shall not affect the construction
or interpretation hereof. The terms “this Agreement”, “hereof”, “hereunder” and similar expressions
refer to this Agreement in its entirety and not to any particular Article, section, paragraph or other subdivision or portion hereof
and include any Schedule, agreement or instrument attached, supplemental or ancillary hereto. Unless something in the subject matter
or context is inconsistent therewith, references herein to Article, section and paragraph numbers are to Articles, sections and
paragraphs of this Agreement.

 

		1.4	Entire Agreement

 

This Agreement constitutes
the entire agreement between the Parties hereto with respect to the subject matter hereof and cancels and supersedes any prior
understandings and agreements between the parties hereto with respect thereto. There are no representations, warranties, terms,
conditions, undertakings or collateral agreements, express, implied or statutory, between the Parties other than as expressly set
forth in this Agreement.

 

		1.5	Accounting Principles

 

Wherever in this Agreement
reference is made to generally accepted accounting principles, such reference shall be deemed to be to the generally accepted accounting
principles from time to time approved by the Canadian Institute of Chartered Accountants, or any successor institute, applicable
as at the date in respect of which such reference is made or required to be made in accordance with generally accepted accounting
principles.

 

		1.6	Currency

 

All references to currency
herein are to lawful money of Canada.

 

		1.7	Governing Law

 

This Agreement shall be
governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.
The United Nations Convention on Contracts for the International Sale of Goods shall not apply to the transactions contemplated
by this Agreement.

 

ARTICLE
2 - Distribution

 

		2.1	Appointment of Distributor

 

Serious hereby appoints
Canary as the exclusive distributor of the Products, Harvested Products, and Collaborative Products in the Territory. In accordance
with this appointment, Canary is granted the exclusive right to Commercialize the Products, the Harvested Products, and the Collaborative
Products in the Territory. Notwithstanding the foregoing, Serious retains the right to distribute the Products on its website (
www.seriousseeds.com ).

 

		2.2	Acceptance of Appointment

 

Subject to any limitations
specifically provided herein, Canary accepts the appointment from Serious as the exclusive distributor of the Products, the Harvested
Products, and Collaborative Products in the Territory. The Products, the Harvested Products, and Collaborative Products shall be
Commercialized by Canary in the Territory in accordance with Canary's own terms and conditions, including the prices for the same.

 

     

    	 	6	 

    

 

		2.3	Regulatory

 

All Regulatory Approvals
related to the Products, Harvested Products, and Collaborative Products in the Territory shall be held in the name of Canary. Canary
will be responsible for applying for and obtaining Regulatory Approval in the Territory and for all costs associated with applying
for and obtaining Regulatory Approvals in the Territory.

 

ARTICLE
3 – collaboration

 

		3.1	Serious and Canary

 

Serious and Canary shall
work together to create Collaborative Products. Simon shall assist Canary in creating Collaborative Products. Serious shall provide
Canary with sufficient Products, which amount shall be determined solely by Canary, to commence creation of the Collaborative Products.
Serious and Canary, together, shall determine how the Products shall be delivered to Canary. Canary shall be responsible for Commercializing
all Collaborative Products.

 

		3.2	Ownership of Intellectual Property

 

Canary will own all intellectual
property related to all Collaborative Products in perpetuity, including the cannabis seed genetics created by crossing Serious’
IP with other strains of cannabis (the “Resulting IP”).

 

		3.3	Decision-Making

 

Canary will have authority
to make all decisions regarding Commercialization of the Collaborative Products and the Resulting IP, including deciding not to
Commercialize any Resulting IP.

 

		3.4	Brand Name

 

Unless mutually agreed
by the Parties, all Collaborative Products will be branded Seriously Canary. Notwithstanding the foregoing, should the brand name
Seriously Canary not be available in a particular country or political subdivision, the Parties shall mutually agree upon another
mutually acceptable and available brand name for such country or political subdivision.

 

		3.5	Production Costs

 

Canary will be responsible
for all Production Costs related to all Collaborative Products.

 

ARTICLE
4 – intellectual property

 

		4.1	Licence to Serious’ IP

 

Serious hereby grants to
Canary and Canary hereby accepts, on the terms and conditions of this Agreement, an exclusive, irrevocable, sublicensable right
and licence in the Territory for any lawful purpose, including:

 

		(a)	the right to copy Serious’ IP and create derivative cannabis strains using the Products;
and

 

		(b)	the right to harvest and commercialize the Harvested Products and seeds from the Products and Collaborative
Products.

 

     

    	 	7	 

    

 

		4.2	Licence to Use of Licenced Mark and Simon’s
Name

 

Subject only to Serious’
own use of the Licensed Mark, Notoriety (as defined below), and Simon’s name on its website ( www.seriousseeds.com ) and
on its packaging, Serious hereby grants to Canary and Canary hereby accepts an exclusive, irrevocable, fully paid, right and licence
in the Territory to:

 

		(a)	use the Licenced Mark and Simon’s name;

 

		(b)	reference any awards and accolades associated with the Licenced Mark and Simon (“Notoriety”);
and

 

		(c)	subject to section 11.1, reference the first name of Serious' principal, Simon, and to reference
his position as the principal, operator and breeder of Serious;

 

all in connection with
the Commercialization of the Products, Harvested Products and the Collaborative Products.

 

ARTICLE
5 – compensation

 

		5.1	Compensation

 

In consideration of the
rights granted by Serious in this Agreement:

 

		(a)	Upon execution of this Agreement Target shall grant 250,000 shares in the Common Stock of Target
to Serious; and

 

		(b)	On each of the first five (5) anniversaries of the Effective Date in the Initial Term, Target shall
issue a Warrant to Serious which will give Serious the right to purchase 100,000 shares of the Common Stock of Target. The exercise
price per share will be as follows:

 

		(i)	Year 1 - $0.15 per share;

 

		(ii)	Year 2 - $0.20 per share;

 

		(iii)	Year 3 - $0.25 per share;

 

		(iv)	Year 4 - $0.30 per share; and

 

		(v)	Year 5 - $0.35 per share;

 

Each Warrant shall expire
and shall no longer be exercisable as of 5:00 p.m, Eastern Time, on the two (2) year anniversary of the date of the issuance of
the Warrant. Each Warrant is subject to all conditions provided for in each Warrant.

 

		(c)	during the Term, Canary will pay to Serious the following:

 

		(i)	payments (“Payments”) as to Canary’s sale of Serious’ Products, Canary
will pay to Serious 50% of the Gross Profit; and

 

		(ii)	royalties (“Royalties”):

 

		A.	as to Serious’ Harvested Products:

 

		I.	1st year – 2.00% of Gross Sales;

 

     

    	 	8	 

    

 

		II.	2nd year – 2.25% of Gross Sales;

 

		III.	3rd year – 2.50% of Gross Sales;

 

		IV.	4th year – 2.75% of Gross Sales; and

 

		V.	5th and following years – 3.00% of Gross Sales;

 

		B.	As to Seriously Canary seeds and Harvested Products:

 

		I.	1st year – 2.00% of Gross Sales;

 

		II.	2nd year – 2.25% of Gross Sales;

 

		III.	3rd year – 2.50% of Gross Sales;

 

		IV.	4th year – 2.75% of Gross Sales; and

 

		V.	5th and following years – 3.00% of Gross Sales.

 

		5.2	Reports and Payments

 

		(a)	Within thirty (30) calendar days after the end of
each Calendar Quarter, Canary shall furnish to Serious written reports (“Reports”) showing:

 

		i.	All Gross Sales and Gross Profit during (a) such Calendar Quarter, including a reconciliation to
Gross Sales and Gross Profit, and (b) the Calendar Year to date through the end of such Calendar Quarter; and

 

		ii.	A calculation of Payments and Royalties for such Calendar Quarter; and

 

		iii.	If the actual Gross Sales or Gross Profits for a previous Calendar Quarter differ from the amounts
previously reported to Serious, a reconciliation of such difference (increase or decrease), and a calculation of the adjustment
to the Payments or Royalties, respectively, payable with respect to such preceding Calendar Quarter as a result of such review
(a “True-Up”);

 

		(b)	Each such Report shall be accompanied by payment of the Payments and Royalties due under Section
5.7, plus or minus any adjustment of Payments or Royalties previously paid, calculated in accordance with the immediately preceding
clause

 

		(c)	Within ninety (90) days after the Calendar Quarter during which this Agreement terminates or expires
(the “Final Period”), Canary shall furnish to Serious final True-Up reports with respect to such Calendar Quarter (the
 “Final True-Up Reports”). If either of the Final True-Up Reports indicate that additional Payments or Royalties are
payable with respect to the Final Period, such Final True-Up Reports shall be accompanied by payment of such additional Payments
and/or Royalties. If the Final True-Up Report indicates that Payments and/or Royalties were overpaid with respect to the Final
Period, Serious shall pay to Canary an amount equal to such overpayment within thirty (30) days following the delivery of the Final
True-Up to Serious. If Serious disagrees with either of the Final True-Up Reports, Serious shall notify Canary within fifteen (15)
days after receipt thereof and such disagreement shall be resolved pursuant to Section 6.5 below.

 

     

    	 	9	 

    

 

		(d)	Canary shall keep complete and accurate records in connection with the purchase, use and/or sale
by or for it of the Products, Harvested Products, and the Collaborative Products hereunder in sufficient detail to permit accurate
determination of all amounts necessary for calculation and verification of all payment obligations set forth in this ARTICLE 5.

 

		(e)	Except as otherwise defined herein, all financial calculations by either Party under this Agreement
shall be calculated in accordance with Section 1.5. In addition, all calculations herein shall give pro-rata effect to and shall
proportionally adjust (by giving effect to the number of applicable days in such Calendar Quarter) for any Calendar Quarter that
is shorter than a standard Calendar Quarter or any Calendar Year (or twelve-month period) that is shorter than four consecutive
full Calendar Quarters or twelve consecutive months, as applicable.

 

		5.3	Record Retention

 

Canary will maintain complete
and accurate books, records, and accounts in sufficient detail to calculate all amounts payable hereunder and to verify compliance
with its obligations under this Agreement and the Reports delivered under Section 5.2. Such books, records, and accounts will be
retained until the later of (i) three (3) years after the end of the period to which such books, records, and accounts pertain,
and (ii) the expiration of the applicable tax statute of limitations (or any extensions thereof), or for such longer period as
may be required by applicable law.

 

		5.4	Audits

 

		(a)	Procedures

 

At the request of Serious,
Canary shall permit an independent auditor designated by Serious and reasonably acceptable to Canary, at reasonable times and upon
reasonable notice, to audit the books and records maintained pursuant to Section 5.3 to ensure the accuracy of all reports and
payments made hereunder.  Such examinations may not (i) be conducted for any Calendar Quarter more than fourteen (14) months
after the end of such Calendar Quarter, (ii) be conducted more than once in any twelve-month period (unless a previous audit during
such twelve-month period revealed an underpayment (or with respect to any reimbursement, an overpayment) with respect to such period)
or (iii) be repeated for any Calendar Quarter.  Except as provided below, the cost of this audit shall be borne by Serious,
unless the audit reveals a variance of more than five percent (5.0%) from the reported amounts, in which case Canary shall bear
the cost of the audit.  Unless disputed pursuant to Section 5.4(b), if such audit concludes that (x) additional amounts were
owed by Canary, Canary shall pay the additional amounts or (y) excess payments were made by Canary, Serious shall reimburse such
excess payments, in either case ((x) or (y)), within sixty (60) days after the date on which such audit is completed by Serious.

 

		(b)	Audit Dispute

 

In the event of a dispute
with respect to any audit under Section 5.4(a), the Parties shall work in good faith to resolve the dispute.  If the Parties
are unable to reach a mutually acceptable resolution of any such dispute within ninety (90) days, the dispute shall be submitted
for resolution to a certified public accounting firm jointly selected by each Party or to such other Person as the Parties shall
mutually agree (the “Auditor”).  The decision of the Auditor shall be final and the costs of such arbitration
as well as the initial audit shall be borne between the Parties in such manner as the Auditor shall determine.  Not later
than fifteen (15) days after such decision and in accordance with such decision, the audited Party shall pay the additional amounts
or the auditing Party shall reimburse the excess payments, as applicable.

 

     

    	 	10	 

    

 

		5.5	Confidentiality

 

The receiving Party shall
treat all information subject to review under Section 5.4 in accordance with the confidentiality provisions of ARTICLE 10 and the
Parties shall cause the Auditor to enter into a reasonably acceptable confidentiality agreement with the audited Party obligating
such firm to retain all such financial information in confidence pursuant to such confidentiality agreement.

 

		5.6	Travel Expenses

 

For the Travel Requirement,
Canary will reimburse Serious up to C$5,000.00 per year (“Expense Amount”) for air travel plus all Canadian accommodation
and transportation expenses (“Permitted Expenses”) incurred by Simon while he fulfills the Travel Requirement. –
Serious shall provide Canary with a list of and receipts (the “Expense Report”), which may be provided in electronic
format, for all Permitted Expenses. Canary will reimburse Serious for approved Permitted Expenses up to the Expense Amount within
fifteen (15) business days of Canary’s receipt of the Expense Report.

 

		5.7	No Other Compensation

 

Except as provided in Section
5.1, each Party hereby agrees that the terms of this Agreement fully define all consideration, compensation and benefits, monetary
or otherwise, to be paid, granted or delivered by one Party to the other Party in connection with the transactions contemplated
herein. Neither Party previously has paid or entered into any other commitment to pay, whether orally or in writing, any of the
other Party’s employees, directly or indirectly, any consideration, compensation or benefits, monetary or otherwise, in connection
with the transaction contemplated herein.

 

		5.8	Taxes

 

Canary will make all payments
to Serious under this Agreement without deduction or withholding for taxes except to the extent that any such deduction or withholding
is required by Applicable Law in effect at the time of payment. Any tax required to be withheld on amounts payable by Canary under
this Agreement will be timely paid by Canary on behalf of Serious to the appropriate Governmental Authority, and Canary will furnish
Serious with the corresponding proof of payment of such tax, as may be required in order to enable Serious to request reimbursement
or deduction of the withheld amount, or to otherwise comply with its duties. Canary and Serious agree to cooperate to legally minimize
and reduce such withholding taxes and provide any information or documentation required by any taxing authority.

 

ARTICLE
6 – covenants

 

		6.1	Serious & Simon Covenants

 

		(a)	Simon shall travel to Canada and work a minimum of ten (10) days per year at Canary's Simcoe, Ontario
facility or at such other location as determined by Canary (the “Travel Requirement”). One (1) of the ten (10) days
per year will be reserved for promotional activities to assist Canary in its Commercialization of the Products and/or Harvested
Products and/or Collaborative Products. Such travel shall be at such dates and times as are mutually agreed by Simon and Canary,
both acting reasonably.

 

		(b)	Serious shall not commit any act which endangers, destroys, or similarly affects, in any material
respect, the value of the goodwill pertaining to the Licenced Mark or the Product.

 

     

    	 	11	 

    

 

		6.2	Canary Covenants

 

Canary shall not, and shall
not permit its Affiliates to use the Licenced Mark or the name Simon or the Notoriety for any purpose other than as set forth in
this Agreement.

 

ARTICLE
7 – indemnification

 

		7.1	Indemnification

 

Subject to Section ‎7.2,
each Party shall indemnify, defend and hold each of the other Party and their respective directors, officers, and employees and
the successors and assigns of any of the foregoing harmless from and against any and all liabilities, damages, settlements, penalties,
fines, costs or expenses (including, without limitation, reasonable attorneys' fees and other expenses of litigation) (collectively,
 “Loss” or “Losses”) arising, directly or indirectly out of or in connection with any Third Party claims,
suits, actions, demands or judgments (“Third Party Claims”) relating to (a) the activities performed by or on behalf
of such Party under this Agreement, (b) the activities performed by or on behalf of such Party in connection with the exercise
of its licences and rights hereunder, or (c) breach by such Party of the representations and warranties under ‎ARTICLE 8, except,
in each case, to the extent caused by the negligence or willful misconduct of the other Party.

 

		7.2	Procedure

 

		(a)	If a Party intends to claim indemnification under this Agreement (the “Indemnitee”),
it shall promptly notify the other Party (the “Indemnitor”) in writing of such alleged Loss. The Indemnitor shall have
the right to control the defense thereof with counsel of its choice as long as such counsel is reasonably acceptable to Indemnitee.
Any Indemnitee shall have the right to retain its own counsel at its own expense for any reason, provided, however, that if the
Indemnitee shall have reasonably concluded, based upon a written opinion from outside legal counsel, that there is a conflict of
interest between the Indemnitor and the Indemnitee in the defense of such action, in each of which cases the Indemnitor shall pay
the fees and expenses of one law firm serving as counsel for the Indemnitee). The Indemnitee, its employees and agents, shall reasonably
cooperate with the Indemnitor and its legal representatives in the investigation of any Third Party Claims covered by this Agreement.
The obligations of this ‎ARTICLE 7 shall not apply to any settlement of any Third Party Claims if such settlement is effected
without the consent of both Parties, which shall not be unreasonably withheld or delayed.

 

		(b)	The failure to deliver written notice to the Indemnitor within a reasonable time after the commencement
of any such action, to the extent prejudicial to its ability to defend such action, shall relieve the Indemnitor of any obligation
to the Indemnitee under this Section ‎7.2. It is understood that only Serious and Canary may claim indemnity under this Agreement
(on its own behalf or on behalf of its Indemnitees), and other Indemnitees may not directly claim indemnity hereunder.

 

ARTICLE
8 - representations 

 

		8.1	Mutual Representations and Warranties

 

Each Party represents and
warrants to the other Party that as of the Effective Date:

 

		(a)	It is validly organized under the laws of its jurisdiction of incorporation;

 

     

    	 	12	 

    

 

		(b)	it has obtained all necessary consents, approvals and authorizations of all governmental authorities
and other persons or entities that are board members or officers of a Party, in each case which are required to be obtained by
it in connection with this Agreement;

 

		(c)	the execution, delivery, and performance of this Agreement have been duly authorized by all necessary
corporate action on its part;

 

		(d)	it has the legal right and power to enter into this Agreement and to fully perform its obligations
hereunder;

 

		(e)	the performance of its obligations will not conflict with such Party’s charter documents
or any agreement, contract or other arrangement to which such Party is a party; and

 

		(f)	it follows reasonable commercial practices common in the industry to protect its proprietary and
confidential information, including requiring its employees, consultants, and agents to be bound in writing by obligations of confidentiality
and non-disclosure, and requiring its employees, consultants, and agents to assign to it any and all inventions and discoveries
discovered by such employees, consultants, or agents made within the scope of, and during their employment, and only disclosing
proprietary and confidential information to Third Parties pursuant to written confidentiality and non-disclosure agreements.

 

		8.2	Serious’ Representations and Warranties

 

Serious represents and
warrants that it has the sole right to grant the rights and licences provided for in this Agreement and has not assigned, licenced
or otherwise conveyed the sole and exclusive rights and licences outlined in ARTICLE 4 to any other person or entity within the
Territory.

 

ARTICLE
9 – term & termination

 

		9.1	Term

 

The term of this Agreement
shall commence on the Effective Date and shall continue for a period of five (5) years (the “Initial Term”), unless
sooner terminated as provided in this ‎ARTICLE 9, and will thereafter renew automatically for consecutive five (5) year terms
(each period considered a “Renewal Term”) on the same terms and conditions, except as otherwise specified herein and
unless either Party provides written notice of non-renewal at least one hundred and twenty (120) days prior to the expiration of
the then-current Term.

 

		9.2	Termination by Either Party for Material Breach

 

Either Party may terminate
this Agreement by written notice to the other Party for any material breach of this Agreement by the other Party, if, in the case
of remediable breach, such material breach is not cured within ninety (90) days (thirty (30) days for payment defaults) after the
breaching Party receives written notice of such breach from the non-breaching Party; provided, that if such breach is not capable
of being cured within such 90-day (or 30-day) period, the cure period shall be extended for such amount of time that the Parties
may agree in writing is reasonably necessary to cure such breach, so long as (1) the breaching Party is making diligent efforts
to do so, and (2) the Parties agree on an extension within such 90-day (or 30-day) period. Notwithstanding anything to the contrary
herein, if the allegedly breaching Party in good faith either disputes (i) whether a breach is material or has occurred or (ii)
the alleged failure to cure or remedy such material breach, and provides written notice of that dispute to the other Party within
the above time periods, then the matter will be addressed under the dispute resolution provisions in Section ‎15.2, and the
notifying Party may not so terminate this Agreement until it has been determined under Section ‎15.2 that the allegedly breaching
Party is in material breach of this Agreement and such breaching Party fails to cure such breach within ninety (90) days (or such
longer period as determined by the arbiter of such dispute resolution) after the conclusion of such resolution.

 

     

    	 	13	 

    

 

		9.3	Termination by Either Party for Insolvency or Bankruptcy

 

Either Party may terminate
this Agreement effective on written notice to the other Party upon the liquidation, dissolution, winding-up, insolvency, bankruptcy,
or filing of any petition therefor, appointment of a receiver, custodian or trustee, or any other similar proceeding, by or of
the other Party where such petition, appointment or similar proceeding is not dismissed or vacated within ninety (90) calendar
days. Serious in its capacity as a licensor hereunder agrees that, in the event of the commencement of bankruptcy proceedings by
or against Serious, (a) Canary, in its capacity as a licencee of rights under this Agreement, shall retain and may fully exercise
all of such licenced rights under this Agreement (including as provided in this Section 9.3) and (b) Canary shall be entitled to
a complete duplicate of all embodiments of such intellectual property, and such embodiments, if not already in its possession,
shall be promptly delivered to the Canary (i) upon any such commencement of a bankruptcy proceeding, unless Serious elects to continue
to perform all of its obligations under this Agreement, or (ii) if not delivered under (i), immediately upon the rejection of this
Agreement by or on behalf of Serious.

 

		9.4	Effects of Termination

 

		(a)	Accrued Rights and Obligations

 

Expiration or termination
of this Agreement in its entirety, or with respect to a particular Exclusive Target, for any reason shall not release either Party
hereto from any liability which, as of the effective date of such expiration or termination, had already accrued to the other Party
or which is attributable to a period prior to such termination, nor preclude either Party from pursuing any rights and remedies
it may have hereunder or at law or in equity which accrued or are based upon any event occurring prior to the effective date of
such expiration or termination.

 

		(b)	Return of Confidential Information

 

It is understood and agreed,
that each Party shall have a continuing right to use Confidential Information of the other Party under any surviving licences pursuant
to ‎ARTICLE 4. Subject to the foregoing, following expiry or any early termination of this Agreement, the Party that has Confidential
Information of the other Party shall destroy (at such Party’s written request) all such Confidential Information in its possession
as of the effective date of expiration (with the exception of one copy of such Confidential Information, which may be retained
by the legal department of the Party that received such Confidential Information to confirm compliance with the non-use and non-disclosure
provisions of this Agreement), and any Confidential Information of the other Party contained in its laboratory notebooks or databases,
provided that each Party may retain and continue to use such Confidential Information of the other Party to the extent necessary
to exercise any surviving rights, licences or obligations under this Agreement.

 

		(c)	Inventory at Termination

 

Upon termination of this
Agreement, Canary shall have the right to sell or otherwise dispose of all inventory of Products then in its stock, subject to
the applicable payments due under this Agreement, and any other applicable provisions of this Agreement.

 

     

    	 	14	 

    

 

ARTICLE
10 – confidentiality

 

		10.1	Non-use and Non-disclosure of Confidential Information

 

During the Term, and for
a period of ten (10) years thereafter, a Party shall (i) except to the extent permitted by this Agreement or otherwise agreed to
in writing, keep confidential and not disclose to any Third Party any Confidential Information of the other Party; (ii) except
in connection with activities contemplated by, the exercise of rights permitted by, in order to further the purposes of this Agreement
or otherwise agreed to in writing, not use for any purpose any Confidential Information of the other Party; and (iii) take all
reasonable precautions to protect the Confidential Information of the other Party (including all precautions a Party employs with
respect to its own confidential information of a similar nature and taking reasonable precautions to assure that no unauthorized
use or disclosure is made by others to whom access to the Confidential Information of the Party is granted).

 

		10.2	Exclusions Regarding Confidential Information

 

Notwithstanding anything
set forth in this ‎ARTICLE 10 to the contrary, the obligations of Section ‎10.1 shall not apply to the extent that the
Party seeking the benefit of the exclusion can demonstrate that the Confidential Information of the other Party:

 

		(a)	was already known to the receiving Party, other than under an obligation of confidentiality, at
the time of receipt by the receiving Party;

 

		(b)	was generally available to the public or otherwise part of the public domain at the time of its
receipt by the receiving Party;

 

		(c)	became generally available to the public or otherwise part of the public domain after its receipt
by the receiving Party other than through any act or omission of the receiving Party in breach of this Agreement;

 

		(d)	was received by the receiving Party without an obligation of confidentiality from a Third Party
having the right to disclose such information without restriction;

 

		(e)	was independently developed by or for the receiving Party without use of or reference to the Confidential
Information of the other Party; or

 

		(f)	was released from the restrictions set forth in this Agreement by express prior written consent
of the Party.

 

		10.3	Authorized Disclosures of Confidential Information

 

Notwithstanding the foregoing,
a Party may use and disclose the Confidential Information of the other Party as follows:

 

		(a)	if required by law, rule or governmental regulation, including as may be required in connection
with any filings made with, or by the disclosure policies of a major stock exchange; provided that the Party seeking to disclose
the Confidential Information of the other Party (i) use all reasonable efforts to inform the other Party prior to making any such
disclosures and cooperate with the other Party in seeking a protective order or other appropriate remedy (including redaction)
and (ii) whenever possible, request confidential treatment of such information;

 

     

    	 	15	 

    

 

		(b)	as reasonably necessary to obtain or maintain any Regulatory Approval for any Products, provided
that the disclosing Party shall take all reasonable steps to limit disclosure of the Confidential Information outside such regulatory
agency and to otherwise maintain the confidentiality of the Confidential Information;

 

		(c)	to take any lawful action that it deems necessary to protect its interest under, or to enforce
compliance with the terms and conditions of, this Agreement; or

 

		(d)	to the extent necessary, to permitted sublicencees, licencees, collaborators, vendors, consultants,
agents, attorneys, contractors, and clinicians under written agreements of confidentiality at least as restrictive on those set
forth in this Agreement, who have a need to know such information in connection with such Party performing its obligations or exercising
its rights under this Agreement. Further, the receiving Party may disclose Confidential Information to existing or potential acquirers,
merger partners, permitted collaborators, licencees, and sources of financing or to professional advisors (e.g. attorneys, accountants
and investment bankers) involved in such activities, for the limited purpose of evaluating such transaction, collaboration or licence
and under appropriate conditions of confidentiality, only to the extent necessary and with the agreement by those permitted individuals
to maintain such Confidential Information in strict confidence.

 

		10.4	Terms of this Agreement

 

The Parties agree that
this Agreement and the terms hereof will be considered Confidential Information of both Parties.

 

ARTICLE
11 – Publicity

 

		11.1	Public Announcements

 

During the Term of this
Agreement, Canary and Serious shall jointly approve, which approval shall not be unreasonably withheld, the text of any public
announcements, including any public announcement concerning this Agreement and/or the Products, the Harvested Products, and the
Collaborative Products. Either Party wishing to make such press release shall provide the other Party five (5) business days (in
urgent cases, within two (2) business days) prior notice.

 

ARTICLE
12 - GENERAL MATTERS

 

		12.1	Further Assurances

 

Each of the parties hereto
shall promptly do, make, execute or deliver, or cause to be done, made, executed or delivered, all such further acts, documents
and things as the other party hereto may reasonably require from time to time for the purpose of giving effect to this Agreement
and shall use reasonable efforts and take all such steps as may be reasonably within its power to implement to their full extent
the provisions of this Agreement.

 

		12.2	Enurement

 

This Agreement shall enure
to the benefit of and be binding upon the respective heirs, executors, administrators, successors, and permitted assigns of the
parties hereto.

 

     

    	 	16	 

    

 

		12.3	Non-Solicitation

 

During the Term of this
Agreement and for a period of two (2) years thereafter, each of Serious and Canary agrees that it shall not, directly or indirectly,
recruit, solicit or attempt to solicit for employment any employee or contractor of the other Party or induce any employee or contractor
of the other Party, provided, however, that this Section 12.3 will not prohibit the solicitation or hiring of any employee or contractor
as a result of general media advertising or a general solicitation that is not targeted towards employees or contractors of the
other Party.

 

		12.4	Amendments and Waivers

 

No amendment or waiver
of any provision of this Agreement shall be valid or binding unless executed in writing by the party to be bound thereby. No waiver
of any provision of this Agreement shall constitute a waiver of any other provision hereof nor shall any waiver of any provision
of this Agreement constitute a continuing waiver unless otherwise expressly provided.

 

		12.5	Assignment

 

Canary and/or Target may
assign this Agreement to (i) an Affiliate or (ii) any purchaser of all or substantially all of the assets or of all of the capital
stock of Canary and/or Target, or to any successor corporation or entity resulting from any merger or consolidation of Canary and/or
Target with or into such corporation or entity.

 

		12.6	Relationship of the Parties

 

The Parties hereto are
independent contractors and nothing contained in this Agreement shall be deemed or construed to create a partnership, joint venture,
employment, franchise, agency or fiduciary relationship between the Parties.

 

		12.7	Severability

 

If any provision of this
Agreement is determined to be illegal, invalid or unenforceable in whole or in part, the same shall not in any respect affect the
legality, validity or enforceability of the remainder of such provision or any other provision of this Agreement.

 

		12.8	Notices

 

Any demand, notice or other
communication to be given in connection with this Agreement shall be given in writing and may be given by personal delivery, by
courier, by facsimile transmission, by electronic mail or by registered mail addressed to the recipient at the address shown on
the first page hereof or to such other address or person as may be designated by notice by either party to the other. Any such
communication so given will be conclusively deemed to have been given only when it is actually delivered by one of the methods
aforesaid.

 

		12.9	Electronic Transmission

 

The parties hereto agree
that this Agreement, and any other documents required to be executed in connection herewith, may be transmitted electronically,
by facsimile, e-mail or such similar device, and that the reproduction of signatures by any such device will be treated as binding
as if originals and each of the parties hereto undertakes to provide each other with a copy of this Agreement, or such other documents,
bearing original signatures forthwith on demand.

 

     

    	 	17	 

    

 

		12.10	Attornment

 

Each of the parties hereto
hereby attorns to the non-exclusive jurisdiction of the courts of the Province of Ontario.

 

		12.11	Survival

 

The provisions of Section
1.7, Section 3.2, Section 5.1, ARTICLE 7, Section 9.4, ARTICLE 10, and Section 12.3 shall survive termination of this Agreement.

 

		12.12	Counterparts

 

This Agreement and any
other documents required to be executed in connection herewith may be executed in any number of counterparts, each of which when
so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same document.

 

	
        Serious Seeds B.V.

         

         

        Per: _____________________________________c/s

        Simon Smit, President
	 	
        Canary Rx Inc.

         

         

        Per: _____________________________________c/s

        Randall S. MacLeod, President

	 	 	
         

        Target Group Inc.

         

         

        Per: _____________________________________c/s

        Rubin Schindermann, CEO

	 	 	 
	
        SIGNED, SEALED
AND DELIVERED

           in the presence of:
	 	 
	
         

         

        ________________________________________

        

        Witness
	
        )

        )

        )

        )
	
         

         

        ________________________________________

        Simon Smit

 

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

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