Document:

ex_356888.htm

Exhibit 4.1

 

DESCRIPTION OF CAPITAL STOCK

 

This exhibit includes a description of the material terms of CEN BIOTECH INC. (“we,” “our,” “us,” or the “Company”) governing documents as of the date of this filing and a summary of certain provisions of the CBCA and other Canadian law. The following description is intended as a summary only and is qualified in its entirety by reference to the complete text of our governing documents, which are attached as exhibits to this filing. We urge you to read the full text of those exhibits.

 

We are not a "reporting issuer" as such term is defined under applicable Canadian securities laws) in any province or territory of Canada and no prospectus has been filed with any Canadian securities regulator to qualify the distribution of any of our securities.  As a result, certain resale restrictions may apply to sales of our shares to residents of Canada.

 

Authorized Capital

 

The Company is authorized to issue an unlimited number of: (i) common stock (referred to as common shares under Canadian corporate law) and (ii) special voting stock (referred to as special voting shares under Canadian corporate law). As of April 14, 2022, we had 56,407,410 shares of common stock issued and outstanding and there were no shares of special voting stock outstanding.

 

Rights and Restrictions Attached to Common Stock

 

The holders of common stock and special voting stock are entitled to receive notice and to attend and vote at all meetings of the shareholders of the Company (except where holders of a specified class of shares are entitled to vote separately as a class under the CBCA). Each share of common stock confers the right to one vote and each share of special voting stock confers the right to 500 votes in person or by proxy at a meeting of the stockholders. The holders of common stock and the holders of special voting stock are entitled to such dividends as the directors of the Company may declare from time to time. The shares of common stock and special voting stock rank equally as to dividends on a share for share basis and all dividends declared and payable on the common stock or special voting stock are payable in equal or equivalent amounts per share on all common stock and special voting stock at the time outstanding without preference or distinction.

 

In the event of the liquidation, dissolution or winding-up of the Company, the holders of common stock and special voting stock shall be entitled to receive equally share for share, without preference or distinction, the remaining property of the Company.

 

There are no preemptive, redemption, purchase or conversion rights attaching to our shares. There are no sinking fund provisions applicable to our shares. 

 

Shareholder Matters

 

As an issuer of "penny stock," the protection provided by the U.S. federal securities laws relating to forward looking statements does not apply to us as long as our shares continue to be penny stocks. Although the federal securities law provides a safe harbor for forward-looking statements made by a public company that files reports under the federal securities laws, this safe harbor is not available to issuers of penny stocks. As a result, we will not have the benefit of this safe harbor protection in the event of any claim that the material provided by us, contained a material misstatement of fact or was misleading in any material respect because of our failure to include any statements necessary to make the statements not misleading.

 

As a Canada corporation operating in the Province of Ontario, we are subject to the federal laws of Canada and the provincial laws of Ontario (“Canadian law"). As further discussed herein, certain provisions of Canadian law create rights that might be deemed material to our shareholders. Other provisions might delay or make more difficult acquisitions of our stock or changes in our control or might make it more difficult to accomplish transactions that some of our shareholders may believe to be in their best interests.

 

 

 

 

Directors

 

Under the CBCA, a director or officer of a company must (i) act honestly and in good faith with a view to the best interests of the company; (ii) exercise the care, diligence and skill that a reasonably prudent individual would exercise in comparable circumstances; and (iii) comply with the CBCA, the regulations thereunder and the company’s governing documents. These statutory duties are in addition to any duties under applicable common law and equity.

 

The CBCA states that a director must disclose to us, in accordance with the provisions of the CBCA, the nature and extent of an interest that the director has in a material contract or material transaction, whether made or proposed, with us, if the director is a party to the contract or transaction, is a director or an officer or an individual acting in a similar capacity of a party to the contract or transaction, or has a material interest in a party to the contract or transaction. A director who holds an interest in respect of any material contract or transaction into which we have entered or propose to enter is not entitled to vote on any directors’ resolution to approve that contract or transaction, unless the contract or transaction (a) relates primarily to the director’s remuneration as a director, officer, employee or agent of us or an affiliate, (b) is for indemnity or insurance otherwise permitted under the CBCA or (c) is with an affiliate. The CBCA provides that the remuneration of our directors, if any, may be determined by our directors subject to our articles and by-laws. That remuneration may be in addition to any salary or other remuneration paid to any of our employees who are also directors.

 

Stockholder Rights

 

Under the CBCA and our articles, certain fundamental changes, such as amendments to the articles, certain by-laws amendments, continuances to another jurisdiction, certain amalgamations, a lease, sale or transfer of all or substantially all of the property of a company other than in the ordinary course of business, voluntary liquidations and dissolutions, and certain arrangements are required to be approved by special resolution.

 

A special resolution is a resolution (i) passed by not less than two-thirds of the votes cast by the stockholders who voted in respect of the resolution at a meeting duly called and held for that purpose; or (ii) signed by all stockholders entitled to vote on the resolution.

 

In specified cases, a special resolution to approve an extraordinary corporate action is also required to be approved separately by the holders of a class or series of shares. In specified extraordinary corporate actions, all shares have a vote, whether or not they generally vote and, in certain cases, have separate class votes.

 

Amendments to By-laws

 

Under the CBCA, unless the articles or by-laws otherwise provide, the board of directors of a corporation may, by resolution, make, amend or repeal by-laws that regulate the business or affairs of a corporation provided that any such by-law, amendment or repeal of a by-law must be confirmed at the next meeting of stockholders by the affirmative vote of a majority of the stockholders entitled to vote thereat. Any by-law or amendment is effective when made by the board of directors but ceases to be effective if not confirmed by the stockholders. If a by-law, amendment or repeal is rejected by stockholders, or the directors of a corporation do not submit a by-law, an amendment or a repeal to the stockholders at the next meeting of stockholders, then such by-law, amendment or repeal will cease to be effective and no subsequent resolution of the directors to make, amend or repeal a by-law having substantially the same purpose or effect is effective until it is confirmed or confirmed as amended by the stockholders.

 

 

 

 

Annual and Special Meetings

 

Under the CBCA, we must hold an annual general meeting of our stockholders at least once every year at a time and place determined by our board of directors, provided that the meeting must not be held later than 15 months after the preceding annual general meeting but no later than six months after the end of the preceding financial year. A meeting of our stockholders may be held anywhere in Canada, or provided that the stockholders agree, anywhere outside of Canada. The Company may also hold meetings entirely by means of telephonic, electronic or other communications facility that permits all participants to communicate adequately with each other during the meeting. Our directors may, at any time, call a special meeting of our stockholders. Stockholders holding not less than 5% of our issued voting shares may also cause our directors to call a stockholders’ meeting.

 

A notice to convene a meeting, specifying the date, time and location of the meeting, and, where a meeting is to consider special business, the general nature of the special business, must be sent to stockholders entitled to vote at that meeting and to each director not less than 21 days prior to the meeting, although, as a result of applicable securities laws, the time for notice can be effectively longer.

 

Holders of our common stock are entitled to attend meetings of our stockholders. Our directors, our officers, our auditor, the scrutineer and any other persons invited by the chair of the meeting or with the consent of those at the meeting are entitled to attend any meeting of our stockholders.

 

Purpose

 

Our articles do not contain stated objects or purposes and do not place any limitations on the business in which we engage.

 

Access to Records

 

Under the CBCA, directors, stockholders, creditors and their representatives have the right to inspect certain of the records of a company during usual business hours of the company and take copies of extracts free of charge.

 

Exchange Controls

 

There is currently no law, governmental decree or regulation in Canada that restricts the export or import of capital, or which would affect the remittance of dividends, interest or other payments by us to non-resident holders of our common stock, other than withholding tax requirements. There are no limitations on the right of non–Canadian owners to hold or vote the common stock imposed by Canadian federal or provincial law or by the charter or other constituent documents of the Company, other than those imposed that may be imposed by the Investment Canada Act (Canada) and the Competition Act (Canada).

 

Foreign Ownership Limitations

 

There is no limitation imposed by Canadian law or by our articles of amendment on the right of a non-resident to hold or vote our shares, other than those imposed that may be imposed by the Investment Canada Act (Canada) and the Competition Act (Canada). These acts will generally not apply except where control or a significant interest of an existing Canadian business or company, which has Canadian assets or revenue over a certain threshold, is acquired and will not apply to trading generally of securities listed on a stock exchange.

 

 

 

 

Change of Control

 

Under the CBCA and our articles, certain fundamental changes, such as amendments to the articles, certain by-laws amendments, continuances to another jurisdiction, certain amalgamations, a lease, sale or transfer of all or substantially all of the property of a company other than in the ordinary course of business, voluntary liquidations and dissolutions, and certain arrangements are required to be approved by special resolution, as further discussed above.

 

Other than the foregoing, here are no provisions in the Company’s articles or bylaws that would have the effect of delaying, deferring or preventing a change in the control of the Company, or that would operate with respect to any proposed merger, acquisition or corporate restructuring of the Company. Additionally, the Company’s ability to issue unlimited numbers of common stock could be used to limit changes of control.

 

Transfer Agent

 

The Transfer Agent for our common stock is VStock Transfer and Trust Company, 18 Lafayette Place, Woodmere, New York 11598. Its telephone number is 212 828-8436.Exhibit
4.1

 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED
STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (C) IN COMPLIANCE WITH RULE 144 OR 144A THEREUNDER, IF AVAILABLE,
AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR (E) IN A TRANSACTION
THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER HAS, PRIOR TO SUCH
SALE, FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY.
HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

 

5%
UNSECURED CONVERTIBLE PROMISSORY NOTE

 

PUREBASE
CORPORATION

 

ISSUANCE
DATE: __________ __, 20__

 

MATURITY
DATE: __________ __, 20__

 

This
Unsecured Convertible Promissory Note (the “Note”) is a duly authorized and issued convertible promissory note (the
“Note”) of PUREBASE CORPORATION, a Nevada corporation (the “Company”). The Note has been issued
in accordance with exemptions from registration under the Securities Act of 1933, as amended (the “Securities Act”),
pursuant to a Securities Purchase Agreement, dated April 7, 2022, effective as of March 23, 2022 (the “Purchase Agreement”),
between the Company and the Holder (as defined below). Capitalized terms not otherwise defined herein shall have the meanings ascribed
to them in the Purchase Agreement.

 

Article
I.

 

Section
1.0  Principal and Interest. FOR VALUE RECEIVED, the Company hereby promises to pay to the order of ________________,
a __________ corporation (together with its permitted assigns, the “Holder”), in lawful money of the United States
of America and in immediately available funds the principal sum of _________________________ Dollars (US$__________) on __________
__, 20__ (the “Maturity Date”).

 

The
Company further promises to pay interest in cash on the unpaid principal amount of this Note at a rate per annum equal to five percent
(5%), commencing to accrue on the date hereof and payable on the Maturity Date or earlier prepayment as provided herein. Interest will
be computed on the basis of a 360- day year of twelve 30-day months for the actual number of days elapsed.

 

    	 

     

    

 

Section
1.02  Conversion. At any time, the Holder may, in its sole discretion, determine to convert (each, a “Conversion”)
all or part of the outstanding principal amount of this Note, together with accrued and unpaid interest due thereon, into shares of common
stock (“Common Stock”) of the Company, par value $0.001 per share (the “Conversion Shares”) at a conversion price
of $0.39 per share (the “Conversion Price”). The Company shall not issue any fraction of a Conversion Share
upon any such conversion. If the issuance would result in the issuance of a fraction of a Conversion Share, the Company shall round such
fraction of a Conversion Share up to the nearest whole Conversion Share. The number of Conversion Shares issuable upon a Conversion shall
be determined by the quotient obtained by dividing (i) the outstanding principal amount of this Note being converted plus accrued but
unpaid interest thereon on the conversion date for the Conversion by (ii) the Conversion Price. The calculation by the Company of the
number of Conversion Shares to be received by the Holder upon conversion hereof, shall be conclusive absent manifest error. To convert
any portion of the unpaid principal of this Note into Conversion Shares on any date (an “Conversion Date”), the Holder
shall (i) transmit by facsimile (or otherwise deliver), for receipt on or prior to 12:00 noon., New York time, on such date, a copy of
an executed notice of conversion in the form attached hereto as Exhibit A (the “ Conversion Notice”) to the
Company and (ii) return this Note to the Company via a nationally recognized overnight delivery service (or provide an indemnification
undertaking with respect to this Note in the case of its loss, theft or destruction). On or before the fifth trading day for the Company’s
Common Stock following the date of receipt of an Conversion Notice, the Company shall cause the Company’s transfer agent to issue
and deliver to the Holder at the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder,
for the number of Conversion Shares to which the Holder shall be entitled. If the outstanding principal amount of this Note is greater
than the principal portion being converted, then the Company shall as soon as practicable after receipt of this Note, at its own expense,
issue and deliver to the Holder a new Note representing the outstanding principal amount not converted. Such new Note (i) shall be of
like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the principal amount remaining outstanding,
(iii) shall have an issuance date, as indicated on the face of such new Note, which is the same as the date of this Note, and (iv) shall
have the same rights and conditions as this Note.

 

Section
1.01  Absolute Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay the principal of, and liquidated damages (if any) on, this Note at the time,
place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the Company.

 

Section
1.02  Different Denominations. This Note is exchangeable for an equal aggregate principal amount of Notes of different
authorized denominations, as requested by the Holder surrendering the same.

 

Section
1.03  Reliance on Note Register. Prior to due presentment to the Company for permitted transfer or conversion of this
Note, the Company and any agent of the Company may treat the name in which this Note is duly registered as the owner hereof for the purpose
of receiving payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither the Company nor
any such agent shall be affected by notice to the contrary.

 

Section
1.04  Paying Agent and Registrar. Initially, the Company will act as paying agent and registrar. The Company may change
any paying agent, registrar, or Company-registrar by giving the Holder not less than five (5) business days’ written notice of
its election to do so, specifying the name, address, telephone number and facsimile number of the paying agent or registrar. The Company
may act in any such capacity.

 

Section
1.05  Investment Representations. This Note has been issued subject to certain investment representations of the original
Holder set forth in the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable
federal and state securities laws and regulations.

 

Section
1.06  Security; Other Rights. The obligations of the Company to the Holder under this Note are unsecured. However, in
addition to the rights and remedies given it by this Note and the Purchase Agreement, the Holder shall have all those rights and remedies
allowed by applicable law.

 

    	2

     

    

 

Section
1.07  Reservation of Common Stock. The Company shall reserve and keep available out of its authorized but unissued shares
of Common Stock, solely for the purpose of conversion of this Note, that number of shares of Common Stock equal to the number of Conversion
Shares into which the Note is convertible based upon the Conversion Price.

 

Article
II.

 

Section
2.01  Events of Default. Each of the following events shall constitute a default under this Note (each an “Event
of Default”):

 

	 	(a)	failure
    by the Company to pay any principal amount or interest due hereunder within ten (10) business days of the date such payment is due;
	 	 	 
	 	(b)	the
    Company or any subsidiary of the Company shall: (i) make a general assignment for the benefit of its creditors; (ii) apply for or
    consent to the appointment of a receiver, trustee, assignee, custodian, sequestrator, liquidator or similar official for itself or
    any of its assets and properties; (iii) commence a voluntary case for relief as a debtor under the United States Bankruptcy Code;
    (iv) file with or otherwise submit to any governmental authority any petition, answer or other document seeking: (A) reorganization,
    (B) an arrangement with creditors or (C) to take advantage of any other present or future applicable law respecting bankruptcy, reorganization,
    insolvency, readjustment of debts, relief of debtors, dissolution or liquidation; (v) file or otherwise submit any answer or other
    document admitting or failing to contest the material allegations of a petition or other document filed or otherwise submitted against
    it in any proceeding under any such applicable law, or (vi) be adjudicated a bankrupt or insolvent by a court of competent jurisdiction;
	 	 	 
	 	(c)	any
    case, proceeding or other action shall be commenced against the Company or any subsidiary of the Company for the purpose of effecting,
    or an order, judgment or decree shall be entered by any court of competent jurisdiction approving (in whole or in part) anything
    specified in Section 2.01(b) hereof, or any receiver, trustee, assignee, custodian, sequestrator, liquidator or other official shall
    be appointed with respect to the Company, or shall be appointed to take or shall otherwise acquire possession or control of all or
    a substantial part of the assets and properties of the Company, and any of the foregoing shall continue unstayed and in effect for
    any period of sixty (60) days;
	 	 	 
	 	(d)	any
    material breach by the Company of any of its representations or warranties contained in this Note; or
	 	 	 
	 	(e)	any
    default, whether in whole or in part, shall occur in the due observance or performance of any obligations or other covenants, terms
    or provisions to be performed by the Company under this Note which is not cured within ten (10) business days after receipt of written
    notice thereof.

 

Section
2.02 If any Event of Default specified in Section 2.01(b) or Section 2.01(c) occurs, then the full principal amount of this Note,
together with any other amounts owing in respect thereof, to the date of the Event of Default, shall become immediately due and payable
without any action on the part of the Holder, and if any other Event of Default occurs, the full principal amount of this Note, together
with any other amounts owing in respect thereof, to the date of acceleration shall become, at the Holder’s election, immediately
due and payable in cash. All Notes for which the full amount hereunder shall have been paid in accordance herewith shall promptly be
surrendered to or as directed by the Company.

 

    	3

     

    

 

Article
III.

 

Section
3.01  Covenants. So long as this Note shall remain in effect and until any outstanding principal and interest and all
fees and all other expenses or amounts payable under this Note have been paid in full, unless the Holder shall otherwise consent in writing
(such consent not to be unreasonably withheld), the Company shall:

 

	 	(a)	Notice
    of Default. Promptly advise the Holder in writing of the occurrence of any Event of Default of which the Company is aware. 
	 	 	 
	 	(b)	Entry
    into Certain Transactions. Not, directly or in directly, (i) liquidate, dissolve or wind up the Company; or (ii) amend, alter
    or repeal any provision of the Company’s Articles of Incorporation or Bylaws.

 

Article
IV.

 

Section
4.01  Representations of the Company. The Company hereby represents and warrants to the Holder that:

 

	 	(a)	The
    Company has the requisite corporate power and authority to enter into and perform its obligations under this Note, (ii) the execution
    and delivery of this Note by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized
    by the Company’s Board of Directors, and no further consent or authorization is required by the Company, its Board of Directors
    or its stockholders, (iii) this Note has been duly executed and delivered by the Company, (iv) this Note constitutes the valid and
    binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may
    be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
    laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies. 
	 	 	 
	 	(b)	The
    execution, delivery and performance of this Note by the Company, and the consummation by the Company of the transactions contemplated
    hereby, will not (i) result in a violation of the Articles of Incorporation or by-laws (or equivalent constitutive document) of the
    Company or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event which with
    notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration
    or cancellation of, any agreement, indenture or instrument to which the Company is a party, or result in a violation of any law,
    rule, regulation, order, judgment or decree (including U.S. federal and state securities laws and regulations) applicable to the
    Company or by which any property or asset of the Company is bound or affected, except for those which could not reasonably be expected
    to have a material adverse effect on the assets, business, condition (financial or otherwise), or results of operations of the Company.
	 	 	 
	 	(c)	There
    is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory
    organization or body pending against or affecting the Company or any subsidiary, wherein an unfavorable decision, ruling or finding
    would materially adversely affect the validity or enforceability of, or the authority or ability of the Company to perform its obligations
    under, this Note.

 

    	4

     

    

 

Section
4.02  Representations of the Holder. The Holder hereby represents and warrants to the Company that:

 

	 	(a)	Investment
    Purpose. The Holder is acquiring this Note, and, upon conversion of this Note, the Holder will acquire the Conversion Shares
    into which this Note may be converted (the Conversion Shares together with the Note, the “Securities”), for its
    own account for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof,
    except pursuant to sales registered or exempted under the Securities Act of 1933, as amended (the “Securities Act”);
    provided, however, that by making the representations herein, such Holder reserves the right to dispose of the Securities at any
    time in accordance with or pursuant to an effective registration statement covering such Securities, or an available exemption under
    the Securities Act. The Holder agrees not to sell, hypothecate or otherwise transfer the Securities unless such Securities are registered
    under the federal and applicable state securities laws or unless, in the opinion of counsel satisfactory to the Company, an exemption
    from such law is available.
	 	 	 
	 	(b)	Accredited
    Investor Status. The Holder meets the requirements of at least one of the suitability standards for an “Accredited Investor”
    as that term is defined in Rule 501(a)(3) of Regulation D under the Securities Act.
	 	 	 
	 	(c)	Investor
    Qualifications. The Holder was not formed for the specific purpose of acquiring this Note, is duly organized, validly existing
    and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is
    authorized by, and will not result in a violation of state law or its charter or other organizational documents, has full power and
    authority carry out the provisions hereof and thereof and to purchase and hold this Note.
	 	 	 
	 	(d)	Solicitation.
    The Holder is unaware of, is in no way relying on, and did not become aware of the offering of this Note through or as a result of,
    any form of general solicitation or general advertising including, without limitation, any article, notice, advertisement or other
    communication published in any newspaper, magazine or similar media or broadcast over television or radio, in connection with the
    offering and sale of this Note and is not subscribing for this Note and did not become aware of the offering of this Note through
    or as a result of any seminar or meeting to which the Holder was invited by, or any solicitation of a subscription by, a person not
    previously known to the Holder in connection with investments in securities generally.
	 	 	 
	 	(e)	Brokerage
    Fees. The Holder has taken no action that would give rise to any claim by any person for brokerage commissions, finders’
    fees or the like relating to this Note or the transaction contemplated hereby.
	 	 	 
	 	(f)	Knowledge
    and Experience. The Holder has such knowledge and experience in financial, tax, and business matters, and, in particular, investments
    in securities, so as to enable it to utilize the information made available to it in connection with this Note to evaluate the merits
    and risks of an investment in this Note and the Company and to make an informed investment decision with respect thereto.
	 	 	 
	 	(g)	Liquidity.
    The Holder has adequate means of providing for such Holder’s current financial needs and foreseeable contingencies and has
    no need for liquidity of its investment in this Note for an indefinite period of time, and after purchasing this Note the Holder
    will be able to provide for any foreseeable current needs and possible personal contingencies. The Holder must bear and acknowledges
    the substantial economic risks of the investment in this Note including the risk of illiquidity and the risk of a complete loss of
    this investment.
	 	 	 
	 	(h)	High
    Risk Investment. The Holder is aware that an investment in this Note, and upon conversion of this Note, the Conversion Shares,
    involves a number of very significant risks and has carefully researched and reviewed and understands the risks of, and other considerations
    relating to, the purchase of this Note, and, upon conversion of this Note, the Conversion Shares.

 

    	5

     

    

 

	 	(i)	Reliance
    on Exemptions. The Holder understands that this Note is being offered and sold to it in reliance on specific exemptions from
    the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the
    truth and accuracy of, and such Holder’s compliance with, the representations, warranties, agreements, acknowledgments and
    understandings of such Holder set forth herein in order to determine the availability of such exemptions and the eligibility of such
    Holder to acquire such securities.
	 	 	 
	 	(j)	Information.
    The Holder has been furnished with all documents and materials relating to the business, finances and operations of the Company and
    its subsidiaries and information that Holder requested and deemed material to making an informed investment decision regarding its
    purchase of this Note. The Holder has been afforded the opportunity to review such documents and materials and the information contained
    therein. The Holder has been afforded the opportunity to ask questions of the Company and its management. The Holder understands
    that such discussions, as well as any written information provided by the Company, were intended to describe the aspects of the Company’s
    and its subsidiaries’ business and prospects which the Company believes to be material, but were not necessarily a thorough
    or exhaustive description, and except as expressly set forth in this Note or the Purchase Agreement, the Company makes no representation
    or warranty with respect to the completeness of such information and makes no representation or warranty of any kind with respect
    to any information provided by any entity other than the Company. Some of such information may include projections as to the future
    performance of the Company and its subsidiaries, which projections may not be realized, may be based on assumptions which may not
    be correct and may be subject to numerous factors beyond the Company’s and its subsidiaries’ control. Additionally, Holder
    understands and represents that it is purchasing this Note notwithstanding the fact that the Company and its subsidiaries, may disclose
    in the future certain material information Holder has not received, including the financial results of the Company and its subsidiaries
    for the current fiscal quarter. Neither such inquiries nor any other due diligence investigations conducted by such Holder shall
    modify, amend or affect such Holder’s right to rely on the Company’s representations and warranties contained herein.
    The Holder has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision
    with respect to its investment in this Note. 
	 	 	 
	 	(k)	No
    Other Representations or Information. In evaluating the suitability of an investment in this Note, the Holder has not relied
    upon any representation or information (oral or written) with respect to the Company or its subsidiaries, or otherwise, other than
    as stated in this Note or the Purchase Agreement.
	 	 	 
	 	(l)	No
    Governmental Review. The Holder understands that no United States federal or state agency or any other government or governmental
    agency has passed on or will pass on, or has made or will make, any recommendation or endorsement of this Note (or the Conversion
    Shares), or the fairness or suitability of the investment in this Note (or the Conversion Shares), nor have such authorities passed
    upon or endorsed the merits of the offering of this Note (or the Conversion Shares). 
	 	 	 
	 	(m)	Transfer
    or Resale. The Holder understands that: (i) this Note, and, upon conversion of the Note, the Conversion Shares, have not been
    and are not being registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned
    or transferred unless (A) subsequently registered thereunder, or (B) such Holder shall have delivered to the Company an opinion of
    counsel, in a generally acceptable form, to the effect that such securities to be sold, assigned or transferred may be sold, assigned
    or transferred pursuant to an exemption from such registration requirements; (ii) any sale of such securities made in reliance on
    Rule 144 under the Securities Act (or a successor rule thereto) (“Rule 144”) may be made only in accordance with
    the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of such securities under circumstances in which the
    seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities
    Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC thereunder;
    and (iii) except as otherwise provided herein or the Purchase Agreement, neither the Company nor any other person is under any obligation
    to register such securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any
    exemption thereunder. There can be no assurance that there will be any market for this Note or the Conversion Shares, nor can there
    be any assurance that this Note will be freely transferable at any time in the foreseeable future.

 

    	6

     

    

 

	 	(n)	Legends.
    The Holder understands that the certificates representing the Conversion Shares shall bear a restrictive legend in substantially
    the following form (and a stop transfer order may be placed against transfer of such stock certificates):

 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED
STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (C) IN COMPLIANCE WITH RULE 144 OR 144A THEREUNDER, IF AVAILABLE,
AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR (E) IN A TRANSACTION
THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER HAS, PRIOR TO SUCH
SALE, FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY.
HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.

 

	 	(o)	Confidentiality.
    The Holder acknowledges and agrees that certain of the information received by it in connection with the transactions contemplated
    by this Note is of a confidential nature and may be regarded as material non-public information under Regulation FD promulgated by
    the SEC and that such information has been furnished to the Holder for the sole purpose of enabling the Holder to consider and evaluate
    an investment in this Note. The Holder agrees that it will treat such information in a confidential manner, will not use such information
    for any purpose other than evaluating an investment in this Note, will not, directly or indirectly, trade or permit the Holder’s
    agents, representatives or affiliates to trade in any securities of the Company while in possession of such information and will
    not, directly or indirectly, disclose or permit the Holder’s agents, representatives or affiliates to disclose any of such
    information without the Company’s prior written consent. The Holder shall make its agents, affiliates and representatives aware
    of the confidential nature of the information contained herein and the terms of this section including the Holder’s agreement
    to not disclose such information, to not trade in the Company’s securities while in the possession of such information and
    to be responsible for any disclosure or other improper use of such information by such agents, affiliates or representatives. Likewise,
    without the Company’s prior written consent, the Holder will not, directly or indirectly, make any statements, public announcements
    or other release or provision of information in any form to any trade publication, to the press or to any other person or entity
    whose primary business is or includes the publication or dissemination of information related to the transactions contemplated by
    this Note. 
	 	 	 
	 	(p)	No
    Legal Advice from the Company. The Holder acknowledges that it has had the opportunity to review this Note and the transactions
    contemplated by this Note with its own legal counsel and investment and tax advisors. The Holder is relying solely on such advisors
    and not on any statements or representations of the Company or any of its employees, representatives or agents for legal, tax, economic
    and related considerations or investment advice with respect to this investment, the transactions contemplated by this Note or the
    securities laws of any jurisdiction.

 

    	7

     

    

 

	 	(q)	No
    Group Participation. The Holder and its affiliates are not a member of any group, nor is any Holder acting in concert with any
    other person, including any other Holder, with respect to its acquisition of this Note (and the Conversion Shares).

 

Article
V.

 

Section
5.01  Registration Rights. As addressed in the Purchase Agreement, there shall be no registration rights with respect
to the Conversion Shares.

 

Article
VI.

 

Section
6.01  Conversion Price Adjustments.

 

(a)
General. The conversion price and the number of Conversion Shares issuable upon the conversion of this Note shall be subject to
adjustment from time to time upon the occurrence of certain events described in this Section 6.01.

 

	 	(i)	Subdivision
    or Combination of Stock. In case the Company shall at any time subdivide (whether by way of stock dividend, stock split or otherwise)
    its outstanding shares of Common Stock into a greater number of shares, the conversion price in effect immediately prior to such
    subdivision shall be proportionately reduced and the number of Conversion Shares shall be proportionately increased, and conversely,
    in case the outstanding shares of Common Stock of the Company shall be combined (whether by way of stock combination, reverse stock
    split or otherwise) into a smaller number of shares, the conversion price in effect immediately prior to such combination shall be
    proportionately increased and the number of Conversion Shares shall be proportionately decreased. The conversion price and the number
    of Conversion Shares issuable upon conversion, as so adjusted, shall be readjusted in the same manner upon the happening of any successive
    event or events described in this Section 6.01(a)(i).
	 	 	 
	 	(ii)	Dividends
    in Stock, Property, Reclassification. If at any time, or from time to time, the holders of Common Stock (or any shares of stock
    or other securities at the time receivable upon the conversion of this Note) shall have received or become entitled to receive, without
    payment therefor:

 

(A)
any shares of stock or other securities that are at any time directly or indirectly convertible into or exchangeable for Common Stock,
or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other distribution,
or

 

(B)
additional stock or other securities or property (including cash) by way of spin-off, split-up, reclassification, combination of shares
or similar corporate rearrangement (other than shares of Common Stock issued as a stock split or adjustments in respect of which shall
be covered by the terms of Section 6.01(a)(i) above),

 

then
and in each such case, the conversion price and the number of Conversion Shares to be issued upon conversion of this Note shall be adjusted
proportionately, and the Holder hereof shall, upon the conversion of this Note, be entitled to receive, in addition to the number of
Conversion Shares receivable thereupon, and without payment of any additional consideration therefor, the amount of stock and other securities
and property (including cash in the cases referred to above) that such Holder would hold on the date of such exercise had such Holder
been the holder of record of such Common Stock as of the date on which holders of Common Stock received or became entitled to receive
such shares or all other additional stock and other securities and property. The conversion price and the Conversion Shares, as so adjusted,
shall be readjusted in the same manner upon the happening of any successive event or events described in this Section 6.01(a)(ii).

 

    	8

     

    

 

(iii)
Reorganization, Reclassification, Consolidation, Merger or Sale. If any recapitalization, reclassification or reorganization of
the capital stock of the Company, or any consolidation or merger of the Company with another corporation, or the sale of all or substantially
all of its assets or other transaction shall be effected in such a way that holders of Common Stock shall be entitled to receive stock,
securities or other assets or property (an “Organic Change”), then lawful and adequate provisions shall be made by
the Company whereby the Holder hereof shall thereafter have the right to purchase and receive (in lieu of the Conversion Shares of the
Company immediately theretofore purchasable and receivable upon the conversion of this Note) such shares of stock, securities or other
assets or property as may be issued or payable with respect to or in exchange for a number of outstanding shares of such Common Stock
equal to the number of shares of such stock immediately theretofore purchasable by reason of the Conversion Shares and receivable assuming
the full conversion of this Note. In the event of any Organic Change, appropriate provision shall be made by the Company 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 adjustments of the conversion price and of the number of Conversion Shares purchasable and receivable upon the exercise of this Note)
shall thereafter be applicable, in relation to any shares of stock, securities or assets thereafter deliverable upon the exercise hereof.
To the extent necessary to effect the foregoing provisions, the successor corporation (if other than the Company) resulting from such
consolidation or merger or the corporation purchasing such assets shall assume by written instrument reasonably satisfactory in form
and substance to the Holder executed and mailed or delivered to the registered Holder hereof at the last address of such Holder appearing
on the books of the Company, the obligation to deliver to such Holder such shares of stock, securities or assets as, in accordance with
the foregoing provisions, such Holder may be entitled to purchase. In any event, the successor corporation (if other than the Company)
resulting from such consolidation or merger or the corporation purchasing such assets shall be deemed to assume such obligation to deliver
to such Holder such shares of stock, securities or assets even in the absence of a written instrument assuming such obligation to the
extent such assumption occurs by operation of law.

 

Article
VII.

 

Section
7.01  Notice. Notices regarding this Note shall be sent to the parties at the following addresses, unless a party notifies
the other parties, in writing, of a change of address:

 

	 	If
    to the Company:	Purebase
    Corporation
	 	 	8625
    State Hwy, 124
	 	 	Ione,
    CA 95640
	 	 	Attention:
    A. Scott Dockter, CEO
	 	 	Telephone:
    (209) 274-9143

 

    	9

     

    

 

	 	With
    a copy to:	The
    Crone Law Group, P.C.
	 	 	500
    Fifth Avenue, Suite 938
	 	 	New
    York, New York 10110
	 	 	Attn:
    Eric Mendelson, Esq.
	 	 	Telephone:
    (917) 398-5082
	 	 	 
	 	If
    to the Holder:	_______________

    _______________

    _______________

    Attn:
    _______________

    Telephone:
    _______________

 

Section
7.02  Governing Law; Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation
of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard
to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Note (whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of New York, Borough
of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of
the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein (including with respect to the enforcement of this Note), and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, or such New York
Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents
to process being served in any such suit, action or 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 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 manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted
by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions
contemplated hereby. If either party shall commence an action or proceeding to enforce any provisions of this Note, then the prevailing
party in such action or proceeding shall be reimbursed by the other party for its attorney’s fees and other costs and expenses
incurred with the investigation, preparation and prosecution of such action or proceeding.

 

Section
7.03  Severability. The invalidity of any of the provisions of this Note shall not invalidate or otherwise affect any
of the other provisions of this Note, which shall remain in full force and effect.

 

Section
7.04  Entire Agreement and Amendments. This Note together with the Purchase Agreement represents the entire agreement
between the parties hereto with respect to the subject matter hereof and there are no representations, warranties or commitments, except
as set forth herein. This Note may be amended only by an instrument in writing executed by the Company and the Holder.

 

[Remainder
of Page Intentionally Left Blank]

 

    	10

     

    

 

IN
WITNESS WHEREOF, with the intent to be legally bound hereby, the Company as executed this Note as of the date first written above.

 

	 	PUREBASE
    CORPORATION
	 	 	 
	 	By:	
	 	Name:	A.
    Scott Dockter 
	 	Title:	Chief
    Executive Officer

 

    	 

     

    

 

EXHIBIT
A

 

NOTICE
OF CONVERSION

 

(To
be executed by the Holder in order to convert the Note)

 

	TO:
    Purebase Corporation	 

 

The
undersigned hereby irrevocably elects to convert the unpaid principal amount and accrued interest amount indicated below of the 5% Unsecured
Convertible Promissory Note due _______, 20__ (the “Note”) into Conversion Shares of Purebase Corporation, according to the
conditions stated therein, as of the Conversion Date written below.

 

	Conversion
    Date:	 	 	 
	 	 	 	 
	Applicable
    Conversion Price (per Conversion Shares):	 	$	 
	 	 	 	 
	Principal
    amount of Note to be converted:	 	$	 
	 	 	 	 
	Principal
    amount of Note unconverted:	 	$	 
	 	 	 	 
	Interest
    amount to be converted	 	$	 
	 	 	 	 
	Number
    of Conversion Shares to be issued:	 	 	 
	 	 	 	 
	Issue
    the Conversion Shares in the following name and to the following address:	 	 	 
	 	 	 	 
	Issue
    to the following account of the Holder:	 	 	 
	 	 	 	 
	Authorized
    Signature:	 	 	 
	 	 	 	 
	Name:	 	 	 
	 	 	 	 
	Title:	 	 	 
	 	 	 	 
	Telephone
    Number:

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