Document:

Exhibit 10.7

 

SUBSIDIARY
GUARANTY

 

1. Identification.

 

This
Guaranty (the “Guaranty”), dated as of _____________, 2018 is entered into by [REQUIRES COMPLETION], a [REQUIRES
COMPLETION] corporation (“Guarantor”), for the benefit of the Collateral Agent identified below and the parties
identified on Schedule A hereto (each a “Lender” and collectively, the “Lenders”).

 

2. Recitals.

 

2.1 Guarantor
is a direct or indirect subsidiary of Immudyne, Inc., a Delaware corporation (“Parent”). The Lenders have made
and/or are making loans to Parent (the “Loans”). Guarantor will obtain substantial benefit from the proceeds
of the Loans.

 

2.2 The
Loans are and will be evidenced by certain Secured Convertible Promissory Notes (collectively, “Note” or the
“Notes”) issued by Parent on, about or after the date of this Guaranty pursuant to those certain Securities
Purchase Agreements dated at or about the date hereof (“Securities Purchase Agreements”). The Notes issued
on the Closing Date are further described on Schedule A hereto and were and or will be executed by Parent as “Borrower”
for the benefit of each Lender as the “Holder” thereof.

 

2.3 In
consideration of the Loans made and to be made by Lenders to Parent and for other good and valuable consideration, and as security
for the performance by Parent of its obligations under the Notes and as security for the repayment of the Loans and all other
sums due from Debtor to Lenders arising under the Notes (collectively, the “Obligations”), Guarantor, for good
and valuable consideration, receipt of which is acknowledged, has agreed to enter into this Guaranty.

 

2.4 The
Lenders have appointed Alpha Capital Anstalt as Collateral Agent pursuant to that certain Security Agreement dated at or about
the date of this Agreement (“Security Agreement”), among the Lenders and Collateral Agent.

 

2.5 Upper
case terms employed but not defined herein shall have the meanings ascribed to them in the Transaction Documents (as defined in
the Securities Purchase Agreement).

 

3. Guaranty.

 

3.1 Guaranty.
Guarantor hereby unconditionally and irrevocably guarantees, jointly and severally with any other guarantor of the Obligations,
the punctual payment, performance and observance when due, whether at stated maturity, by acceleration or otherwise, of all of
the Obligations now or hereafter existing, whether for principal, interest (including, without limitation, all interest that accrues
after the commencement of any insolvency, bankruptcy or reorganization of Parent, whether or not constituting an allowed claim
in such proceeding), fees, commissions, expense reimbursements, liquidated damages, indemnifications or otherwise arising under
the Notes, Security Agreement, or any other Transaction Document (as defined in the Securities Purchase Agreement) (such obligations,
to the extent not paid by Parent being the “Guaranteed Obligations” and included in the definition of Obligations),
and agrees to pay any and all reasonable costs, fees and expenses (including reasonable counsel fees and expenses) incurred by
Collateral Agent and the Lenders in enforcing any rights under the Guaranty set forth herein. Without limiting the generality
of the foregoing, Guarantor’s liability shall extend to all amounts that constitute part of the Guaranteed Obligations and
would be owed by Parent to Collateral Agent and the Lenders, but for the fact that they are unenforceable or not allowable due
to the existence of an insolvency, bankruptcy or reorganization involving Parent.

 

    	 	1	 

     

    

 

3.2 Guaranty
Absolute. Guarantor guarantees that the Guaranteed Obligations will be paid strictly in accordance with the terms of the Notes,
regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights
of Collateral Agent or the Lenders with respect thereto. The obligations of Guarantor under this Guaranty are independent of the
Guaranteed Obligations, and a separate action or actions may be brought and prosecuted against Guarantor to enforce such obligations,
irrespective of whether any action is brought against Parent or any other guarantor or whether Parent or any other guarantor is
joined in any such action or actions. The liability of Guarantor under this Guaranty constitutes a primary obligation, and not
a contract of surety, and to the extent permitted by law, shall be irrevocable, absolute and unconditional irrespective of, and
Guarantor hereby irrevocably waives any defenses it may now or hereafter have in any way relating to, any or all of the following:

 

(a) any
lack of validity of the Notes or any agreement or instrument relating thereto;

 

(b) any
change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations, or any other
amendment or waiver of or any consent to departure from the Notes, including, without limitation, any increase in the Guaranteed
Obligations resulting from the extension of additional credit to Parent or otherwise;

 

(c) any
taking, exchange, release, subordination or non-perfection of any Collateral, or any taking, release or amendment or waiver of
or consent to departure from any other guaranty, for all or any of the Guaranteed Obligations;

 

(d) any
change, restructuring or termination of the corporate, limited liability company or partnership structure or existence of Parent;
or

 

(e)
 any other circumstance (including, without limitation, any statute of limitations) or
any existence of or reliance on any representation by Collateral Agent or the Lenders that might otherwise constitute a defense
available to, or a discharge of, Parent or any other guarantor or surety.

 

This
Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed
Obligations is rescinded or must otherwise be returned by Collateral Agent, the Lenders or any other entity upon the insolvency,
bankruptcy or reorganization of the Parent or otherwise (and whether as a result of any demand, settlement, litigation or otherwise),
all as though such payment had not been made.

 

3.3 Waiver.
Guarantor hereby waives promptness, diligence, notice of acceptance and any other notice with respect to any of the Guaranteed
Obligations and this Guaranty and any requirement that Collateral Agent or the Lenders exhaust any right or take any action against
any Borrower or any other person or entity or any Collateral. Guarantor acknowledges that it will receive direct and indirect
benefits from the financing arrangements contemplated herein and that the waiver set forth in this Section 3.3 is knowingly
made in contemplation of such benefits. Guarantor hereby waives any right to revoke this Guaranty, and acknowledges that this
Guaranty is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future.

 

3.4
Continuing Guaranty; Assignments. This Guaranty is a continuing guaranty and shall (a) remain in full force and effect
until the later of the indefeasible cash or other payment in full of the Guaranteed Obligations, (b) be binding upon Guarantor,
its successors and assigns, and (c) inure to the benefit of and be enforceable by the Lenders and their successors, pledgees,
transferees and assigns. Without limiting the generality of the foregoing clause (c), any Lender may pledge, assign or otherwise
transfer all or any portion of its rights and obligations under this Guaranty (including, without limitation, all or any portion
of its Notes owing to it) to any other Person, and such other Person shall thereupon become vested with all the benefits in respect
thereof granted such Collateral Agent or Lender herein or otherwise.

 

    	 	2	 

     

    

 

3.5
Subrogation. Guarantor will not exercise any rights that it may now or hereafter acquire against the Collateral Agent or
any Lender or other guarantor (if any) that arise from the existence, payment, performance or enforcement of such Guarantor’s
obligations under this Guaranty, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution
or indemnification, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including,
without limitation, the right to take or receive from the Collateral Agent or any Lender or other guarantor (if any), directly
or indirectly, in cash or other property or by set-off or in any other manner, payment or security solely on account of such claim,
remedy or right, unless and until all of the Guaranteed Obligations and all other amounts payable under this Guaranty shall have
been indefeasibly paid in full. 

 

3.6
Maximum Obligations. Notwithstanding any provision herein contained to the contrary, Guarantor’s liability with respect
to the Obligations shall be limited to an amount not to exceed, as of any date of determination, the amount that could be claimed
by Lenders from Guarantor without rendering such claim voidable or avoidable under Section 548 of the Bankruptcy Code or under
any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law.

 

4. Miscellaneous.

 

4.1 Expenses.
Guarantor shall pay to the Lenders, on demand, the amount of any and all reasonable expenses, including, without limitation, reasonable
attorneys’ fees, reasonable legal expenses and reasonable brokers’ fees, which the Lenders may incur in connection
with exercise or enforcement of any the rights, remedies or powers of the Lenders hereunder or with respect to any or all of the
Obligations.

 

4.2 Waivers,
Amendment and Remedies. No course of dealing by the Lenders and no failure by the Lenders to exercise, or delay by the Lender
in exercising, any right, remedy or power hereunder shall operate as a waiver thereof, and no single or partial exercise thereof
shall preclude any other or further exercise thereof or the exercise of any other right, remedy or power of the Lenders. No amendment,
modification or waiver of any provision of this Guaranty and no consent to any departure by Guarantor therefrom, shall, in any
event, be effective unless contained in a writing signed by the Guarantor and the Majority in Interest (as such term is defined
in the Security Agreement) or Lenders against whom such amendment, modification or waiver is sought, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given. The rights, remedies and powers
of the Lenders, not only hereunder, but also under any other Transaction Documents and under applicable law are cumulative, and
may be exercised by the Lenders from time to time in such order as the Lenders may elect.

 

4.3 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 (a) personally served, (b) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (c) delivered by a reputable overnight courier service with charges prepaid, or (d) 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 (i) 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, or the first Business
Day following such delivery (if delivered other than on a Business Day during normal business hours), (ii) on the first Business
Day following the date deposited with an overnight courier service with charges prepaid, or (iii) on the fifth Business Day following
the date of mailing pursuant to subpart (b) above, or upon actual receipt of such mailing, whichever shall first occur. The addresses
for such communications shall be:

 

	 	To
    Guarantor, to:	c/o
    Immudyne, Inc.
	 	 	1460
    Broadway
	 	 	New
    York, NY 10036
	 	 	Attn:
    Justin Schreiber, CEO
	 	 	 
	 	With
    a copy by fax only to	 
	 	(which
    shall not constitute notice):	Lucosky
    Brookman
	 	 	101
    Wood Avenue South
	 	 	Woodbridge,
    NJ 08830
	 	 	Attn:
    Lawrence Metelitsa, Esq.
	 	 	Fax:
    (732) 395-4401
	 	 	 
	 	To
    the Collateral Agent:	Alpha
    Capital Anstalt
	 	 	 
	 	 	 
	 	To
    Lenders:	To
    the addresses and telecopier numbers set
	 	 	forth
    on Schedule A

 

    	 	3	 

     

    

 

Any
party may change its address by written notice in accordance with this paragraph.

 

4.4 Term;
Binding Effect. This Guaranty shall (a) remain in full force and effect until payment and satisfaction in full of all of the
Guaranteed Obligations; (b) be binding upon Guarantor and its successors and permitted assigns; and (c) inure to the benefit of
the Lenders and their respective successors and assigns. All the rights and benefits granted by Guarantor to the Collateral Agent
and Lenders hereunder and other agreements and documents delivered in connection therewith are deemed granted to both the Collateral
Agent and Lenders. Upon the payment in full of the Guaranteed Obligations, (i) this Guaranty shall terminate and (ii) the Lenders
will, upon Guarantor’s request and at Guarantor’s expense, execute and deliver to Guarantor such documents as Guarantor
shall reasonably request to evidence such termination, all without any representation, warranty or recourse whatsoever.

 

4.5 Captions.
The captions of Paragraphs, Articles and Sections in this Guaranty have been included for convenience of reference only, and shall
not define or limit the provisions hereof and have no legal or other significance whatsoever.

 

4.6 Governing
Law; Venue; Severability. This Guaranty shall be governed by and construed in accordance with the laws of the State of New
York without regard to principles of conflicts or choice of law. Any legal action or proceeding against Guarantor with respect
to this Guaranty may be brought in the courts of the State of New York or of the United States for the Southern District of New
York, and, by execution and delivery of this Guaranty, Guarantor hereby irrevocably accepts for itself and in respect of its property,
generally and unconditionally, the jurisdiction of the aforesaid courts. Guarantor hereby irrevocably waives any objection which
it may now or hereafter have to the laying of venue of any of the aforesaid actions or proceedings arising out of or in connection
with this Guaranty brought in the aforesaid courts and hereby further irrevocably waives and agrees not to plead or claim in any
such court that any such action or proceeding brought in any such court has been brought in an inconvenient forum. If any provision
of this Guaranty, or the application thereof to any person or circumstance, is held invalid, such invalidity shall not affect
any other provisions which can be given effect without the invalid provision or application, and to this end the provisions hereof
shall be severable and the remaining, valid provisions shall remain of full force and effect. This Guaranty shall be deemed
an unconditional obligation of Guarantor for the payment of money and, without limitation to any other remedies of Lenders, may
be enforced against Guarantor by summary proceeding pursuant to New York Civil Procedure Law and Rules Section 3213 or any similar
rule or statute in the jurisdiction where enforcement is sought. For purposes of such rule or statute, any other document or agreement
to which Lenders and Guarantor are parties or which Guarantor delivered to Lenders, which may be convenient or necessary to determine
Lenders’ rights hereunder or Guarantor’s obligations to Lenders are deemed a part of this Guaranty, whether or not
such other document or agreement was delivered together herewith or was executed apart from this Guaranty. Each party hereto
hereby irrevocably waives personal service of process and consents to process being served in any such proceeding by mailing a
copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner
permitted by law. Guarantor irrevocably appoints Parent its true and lawful agent for service of process upon whom all processes
of law and notices may be served and given in the manner described above; and such service and notice shall be deemed valid personal
service and notice upon Guarantor with the same force and validity as if served upon Guarantor.

 

    	 	4	 

     

    

 

4.7 Satisfaction
of Obligations. For all purposes of this Guaranty, the payment in full of the Obligations shall be conclusively deemed to
have occurred when the Obligations have been paid pursuant to the terms of the Notes and the Securities Purchase Agreements.

 

4.8 Counterparts/Execution.
This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts,
each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same
instrument. This Agreement may be executed by facsimile signature and delivered by electronic transmission.

 

[THE
BALANCE OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

 

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IN
WITNESS WHEREOF, the undersigned have executed and delivered this Guaranty, as of the date first written above.

 

	“GUARANTOR”	 
	 	 
	[REQUIRES
    COMPLETION]	 
	 	 	 
	By:	 	 
	 	Its:
    President / Managing Member	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This
Guaranty Agreement may be signed by facsimile signature and

delivered
by confirmed facsimile transmission.

 

    	 	6	 

     

    

 

SCHEDULE
A TO GUARANTY

 

	PURCHASER AND ADDRESS	 	PURCHASE
PRICE and NOTE PRINCIPAL

	 	 	 
	 	 	 
	 	 	 

 

    	 	7	 

     

    

 

ANNEX
B to SECURITY AGREEMENT

 

THE
COLLATERAL AGENT

 

1.
Appointment. The Secured Parties (all capitalized terms used herein and not otherwise defined shall have the
respective meanings provided in the Security Agreement to which this Annex B is attached (the “Agreement”),
by their acceptance of the benefits of the Agreement, hereby designate Alpha Capital Anstalt (“Collateral Agent”)
as the Collateral Agent to act as specified herein and in the Agreement. Each Secured Party shall be deemed irrevocably to authorize
the Collateral Agent to take such action on its behalf under the provisions of the Agreement and any other Transaction Document
(as such term is defined in the Notes) and to exercise such powers and to perform such duties hereunder and thereunder as are
specifically delegated to or required of the Collateral Agent by the terms hereof and thereof and such other powers as are reasonably
incidental thereto. The Collateral Agent may perform any of its duties hereunder by or through its agents or employees.

 

2.
Nature of Duties. The Collateral Agent shall have no duties or responsibilities except those expressly set forth
in the Agreement. Neither the Collateral Agent nor any of its partners, members, shareholders, officers, directors, employees
or agents shall be liable for any action taken or omitted by it as such under the Agreement or hereunder or in connection herewith
or therewith, be responsible for the consequence of any oversight or error of judgment or answerable for any loss, unless caused
solely by its or their gross negligence or willful misconduct as determined by a final judgment (not subject to further appeal)
of a court of competent jurisdiction. The duties of the Collateral Agent shall be mechanical and administrative in nature; the
Collateral Agent shall not have by reason of the Agreement or any other Transaction Document a fiduciary relationship in respect
of any Debtor or any Secured Party; and nothing in the Agreement or any other Transaction Document, expressed or implied, is intended
to or shall be so construed as to impose upon the Collateral Agent any obligations in respect of the Agreement or any other Transaction
Document except as expressly set forth herein and therein.

 

3.
Lack of Reliance on the Collateral Agent. Independently and without reliance upon the Collateral Agent, each Secured Party,
to the extent it deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial
condition and affairs of the Company and its subsidiaries in connection with such Secured Party’s investment in the Debtors,
the creation and continuance of the Obligations, the transactions contemplated by the Transaction Documents, and the taking or
not taking of any action in connection therewith, and (ii) its own appraisal of the creditworthiness of the Company and its subsidiaries,
and of the value of the Collateral from time to time, and the Collateral Agent shall have no duty or responsibility, either initially
or on a continuing basis, to provide any Secured Party with any credit, market or other information with respect thereto, whether
coming into its possession before any Obligations are incurred or at any time or times thereafter. The Collateral Agent shall
not be responsible to the Debtors or any Secured Party for any recitals, statements, information, representations or warranties
herein or in any document, certificate or other writing delivered in connection herewith, or for the execution, effectiveness,
genuineness, validity, enforceability, perfection, collectibility, priority or sufficiency of the Agreement or any other Transaction
Document, or for the financial condition of the Debtors or the value of any of the Collateral, or be required to make any inquiry
concerning either the performance or observance of any of the terms, provisions or conditions of the Agreement or any other Transaction
Document, or the financial condition of the Debtors, or the value of any of the Collateral, or the existence or possible existence
of any default or Event of Default under the Agreement, the Notes or any of the other Transaction Documents.

 

4.
Certain Rights of the Collateral Agent. The Collateral Agent shall have the right to take any action with respect to the
Collateral, on behalf of all of the Secured Parties. To the extent practical, the Collateral Agent shall request instructions
from the Secured Parties with respect to any material act or action (including failure to act) in connection with the Agreement
or any other Transaction Document, and shall be entitled to act or refrain from acting in accordance with the instructions of
Secured Parties holding a majority in principal amount of Notes (based on then-outstanding principal amounts of Notes at the time
of any such determination); if such instructions are not provided despite the Collateral Agent’s request therefor, the Collateral
Agent shall be entitled to refrain from such act or taking such action, and if such action is taken, shall be entitled to appropriate
indemnification from the Secured Parties in respect of actions to be taken by the Collateral Agent; and the Collateral Agent shall
not incur liability to any person or entity by reason of so refraining. Without limiting the foregoing, (a) no Secured Party shall
have any right of action whatsoever against the Collateral Agent as a result of the Collateral Agent acting or refraining from
acting hereunder in accordance with the terms of the Agreement or any other Transaction Document, and the Debtors shall have no
right to question or challenge the authority of, or the instructions given to, the Collateral Agent pursuant to the foregoing
and (b) the Collateral Agent shall not be required to take any action which the Collateral Agent believes (i) could reasonably
be expected to expose it to personal liability or (ii) is contrary to this Agreement, the Transaction Documents or applicable
law.

 

    	 	8	 

     

    

 

5.
Reliance. The Collateral Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution,
notice, statement, certificate, telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone
message signed, sent or made by the proper person or entity, and, with respect to all legal matters pertaining to the Agreement
and the other Transaction Documents and its duties thereunder, upon advice of counsel selected by it and upon all other matters
pertaining to this Agreement and the other Transaction Documents and its duties thereunder, upon advice of other experts selected
by it. Anything to the contrary notwithstanding, the Collateral Agent shall have no obligation whatsoever to any Secured Party
to assure that the Collateral exists or is owned by the Debtors or is cared for, protected or insured or that the liens granted
pursuant to the Agreement have been properly or sufficiently or lawfully created, perfected, or enforced or are entitled to any
particular priority.

 

6.
Indemnification. To the extent that the Collateral Agent is not reimbursed and indemnified by the Debtors, the Secured
Parties will jointly and severally reimburse and indemnify the Collateral Agent, in proportion to their initially purchased respective
principal amounts of Notes, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against
the Collateral Agent in performing its duties hereunder or under the Agreement or any other Transaction Document, or in any way
relating to or arising out of the Agreement or any other Transaction Document except for those determined by a final judgment
(not subject to further appeal) of a court of competent jurisdiction to have resulted solely from the Collateral Agent’s
own gross negligence or willful misconduct. Prior to taking any action hereunder as Collateral Agent, the Collateral Agent may
require each Secured Party to deposit with it sufficient sums as it determines in good faith is necessary to protect the Collateral
Agent for costs and expenses associated with taking such action.

 

7.
Resignation by the Collateral Agent. 

 

(a)
The Collateral Agent may resign from the performance of all its functions and duties under the Agreement and the other Transaction
Documents at any time by giving 5 days’ prior written notice (as provided in the Agreement) to the Debtors and the Secured
Parties. Such resignation shall take effect upon the appointment of a successor Collateral Agent pursuant to clauses (b) and (c)
below.

 

(b)
Upon any such notice of resignation, the Secured Parties, acting by a Majority in Interest, shall appoint a successor Collateral
Agent hereunder.

 

    	 	9	 

     

    

 

(c)
If a successor Collateral Agent shall not have been so appointed within said 5-day period, the Collateral Agent shall then appoint
a successor Collateral Agent who shall serve as Collateral Agent until such time, if any, as the Secured Parties appoint a successor
Collateral Agent as provided above. If a successor Collateral Agent has not been appointed within such 5-day period, the Collateral
Agent may petition any court of competent jurisdiction or may interplead the Debtors and the Secured Parties in a proceeding for
the appointment of a successor Collateral Agent, and all fees, including, but not limited to, extraordinary fees associated with
the filing of interpleader and expenses associated therewith, shall be payable by the Debtors on demand.

 

8.
Rights with respect to Collateral. Each Secured Party agrees with all other Secured Parties and the Collateral Agent
(i) that it shall not, and shall not attempt to, exercise any rights with respect to its security interest in the Collateral,
whether pursuant to any other agreement or otherwise (other than pursuant to this Agreement), or take or institute any action
against the Collateral Agent or any of the other Secured Parties in respect of the Collateral or its rights hereunder (other than
any such action arising from the breach of this Agreement) and (ii) that such Secured Party has no other rights with respect to
the Collateral other than as set forth in this Agreement and the other Transaction Documents. Upon the acceptance of any appointment
as Collateral Agent hereunder by a successor Collateral Agent, such successor Collateral Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent and the retiring Collateral
Agent shall be discharged from its duties and obligations under the Agreement.  After any retiring Collateral Agent’s
resignation or removal hereunder as Collateral Agent, the provisions of the Agreement including this Annex B shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was Collateral Agent.

 

 

10This Note,
and the securities issuable upon the conversion of this Note, have not been registered under the Securities Act of 1933, as amended
(the "Act") or applicable state law and may not be sold, transferred or otherwise disposed of unless registered under
the Act and any applicable state act or unless the Company receives an opinion from counsel for the holder and is satisfied that
this Note and the underlying securities may be transferred without registration under the Act.

 

 

CONVERTIBLE
NOTE – SERIES N $3,000,000.00 - $0.08 CONVERSION

 

 

Issuance Date: April 30, 2018

 

FOR VALUE
RECEIVED, ETHEMA HEALTH COPORATION, a Colorado corporation (the "Company"), hereby promises to pay to the order
of 

or any subsequent
holder of this Note (the "Payee"), at  or at such other place as may be designated by the Payee from time
to time by notice to the Company, the principal sum of USD$. Such principal may be converted into Company common
stock at the Conversion Price as described in Section 4(b) below. Such principal shall be paid in accordance with the terms of
Section 1 below, to such account, as the Payee shall direct.

 

1.        PAYMENTS.

 

(a)       The
unpaid principal amount and any unpaid interest amount of this Note may be converted into Rule 144 Restricted Common Stock of
the Company as provided herein on or before October 31, 2018 (the “Maturity Date”) at the option of the holder.

 

(b)       Interest
on the unpaid principal balance of this Note at the rate of SIX percent (6%) per annum shall accrue from the date hereof and will
be payable on maturity.

 

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

 

2.        RESERVED.

 

3.        PREPAYMENT
OF NOTE.

 

The Company
shall have the right to prepay the indebtedness created herein at any time prior to the Maturity Date, subject only to the Payees
option to convert the Note into equity in the Company as described in paragraph 4 below.

 

4.        CONVERSION.

 

The holder
of this Note shall have the following conversion rights (the "Conversion Rights"):

    	 

    	 

    

 

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

 

(b)
       Conversion Price. Subject to adjustment from time to time as provided in Section 4(d)
below, the term “Conversion Price" shall mean USD$0.08 per share of Common Stock and the rate of exchange for CAD dollar
denominated notes shall be determined on the date of conversion.

 

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

 

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

 

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

 

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

 

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

 

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

    	 

    	 

    

 

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

 

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

 

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

 

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

 

(f)
       Notices and Delivery of Shares. All notices and other communications hereunder shall
be in writing and shall be deemed given (i) on the same date, if delivered personally or by facsimile by not later than 5:00 p.m.
ET time (provided, that a copy of such facsimile shall be simultaneously sent to Mark Korb 810 Andrews Avenue, Delray Beach, FL
33483 516-450-7679 or (ii) three Business Days following being mailed by certified or registered mail, postage prepaid, return-receipt
requested, addressed to the party in accordance with Section 7 hereof. Not later than seven (7) Business Days following receipt
of notice of conversion as provided herein (the “Delivery Date”), the Company shall deliver to the holders of this
Note, against delivery of this Note surrendered for conversion, certificates evidencing all shares of Common Stock into which
this Note shall be converted.

 

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

    	 

    	 

    

 

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

 

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

 

(j)       Regulatory
Compliance.

 

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

 

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

 

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

 

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

 

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

 

5.        EVENTS
OF DEFAULT.

 

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

 

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

 

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

    	 

    	 

    

 

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

 

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

 

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

 

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

 

6.        REMEDIES
ON DEFAULT; ACCELERATION.

 

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

 

    	 

    	 

    

7.        NOTICES.

 

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

 

If
to the Company:Ethema Health Corporation

810
Andrews Avenue

Delray
Beach, FL 33483

 

8.        GOVERNING
LAW. 

 

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

 

9.        RESERVED.

 

10.       RESERVED.

 

11.       SUCCESSORS
AND ASSIGNS. 

 

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

 

    	 

    	 

    

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

 

Ethema Health Corporation

 

 

 

 

By: ________________

Name:Shawn E. Leon

Title:President

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