Document:

Monaker Group, Inc. 8-K

 

Exhibit 10.3 

 

SECURED
CONVERTIBLE PROMISSORY NOTE

	$2,900,000	August 31, 2017

FOR
VALUE RECEIVED, the undersigned, BETTWORK INDUSTRIES, INC., a Nevada Corporation, having an address at Geneva
1207, Switzerland (“Borrower”), promises to pay to the order of MONAKER GROUP, INC., a Nevada
corporation, with an office at 2690 Weston Road, Suite 200, Weston, Florida 33331, and its assigns (“Holder”),
the principal sum of TWO million NINE HUNDRED Thousand ($2,900,000.00)
Dollars (the “Principal Amount”), together with interest on the unpaid Principal Amount thereof
computed from the date of the executed PURCHASE AGREEMENT by and between Borrower and Holder, dated on or around the
date hereof (the “Sale Date” and the “Agreement”), at the rates provided herein until
August___, 2020 or such earlier date on which the Principal Amount becomes due and payable as provided herein (as applicable,
the “Maturity Date”); provided, however, that from and after: (i) the Maturity Date, whether upon
stated maturity, acceleration or otherwise, or (ii) the date on which the interest rate hereunder is increased to the
Default Rate (as hereinafter defined) as provided herein, such additional interest shall be computed at the Default
Rate.

As
used herein, the term “Default Rate” shall mean a rate of interest of twelve percent (12.0%) per annum, but
in no event shall the Default Rate be in excess of the Maximum Rate (as hereinafter defined).

If
any payment of interest is not paid within five (5) days from the due date for such payment, a late charge equal to the lesser
of ten percent (10%) of such overdue payment or the maximum amount permitted by applicable law shall automatically become due
to the holder of this Secured Convertible Promissory Note (the “Note”), subject, however, to the limitation
that late charges may be assessed only once on each overdue payment. Said late charges do not constitute interest and shall constitute
compensation to the holder of this Note for collection and co-lender administration costs incurred hereunder. In addition, if
any payment of principal or interest is not paid when due, the holder of this Note shall have the right, upon notice to Borrower,
to increase the rate of interest per annum on all amounts outstanding to the Default Rate and, upon said notice, such rate increase
shall be effective retroactively as of the date from which the interest component of such overdue payment began to accrue and
shall remain in force and effect for so long as such default shall continue. This paragraph shall not be construed as an agreement
or privilege to extend the due date of any payment, nor as a waiver of any other right or remedy accruing to the holder of this
Note by reason of any default.

    	Secured Convertible Promissory Note	 	Page 1 of 12

    	 

    

 

Borrower
will do or cause to be done all things reasonably necessary to preserve and keep in full force and effect its corporate existence,
rights and franchises and comply with all laws applicable to Borrower, except where the failure to comply could not reasonably
be expected to have a material adverse effect on Borrower.

2.0
Principal and Interest. Principal and interest hereunder shall be payable as follows:

(a)

beginning
on the Sale Date, interest on the Principal Amount outstanding hereof shall accrue at the rate of Six (6.0%) percent per annum,
for the period beginning on and including the Sale Date to the last day of the month in which the Sale Date occurs (“Short
Interest”), and shall accrue and be payable within five (5) days of the end of such month in which such Short Interest
accrued.

(b)

Interest
only at the rate per annum equal to the greater of (i) Six (6%) percent and (ii) the Prime Rate (as defined below) as adjusted
from time to time, plus Three and Three Quarters Percent (3 3/4%) on the Principal Amount outstanding hereof shall accrue from
______ through ______ and be paid monthly, in arrears, in an amount, as determined by Holder, equal to one-twelfth (1/12th) of
the annual interest payments for such period commencing ________ and continuing on the first day of each month thereafter through
and including ________.

(c)

All
principal, interest and other sums due hereunder shall be due and payable in full on the Maturity Date.

As
used herein, the term “Prime Rate” shall mean the rate of interest published in The Wall Street Journal from time
to time as the “Prime Rate.” If more than one “Prime Rate” is published in The Wall Street Journal for
a day, the average of such “Prime Rates” shall be used, and such average shall be rounded up to the nearest one-eighth
of one percent (0.125%). If The Wall Street Journal ceases to publish the “Prime Rate,” the Holder shall select an
equivalent publication that publishes such “Prime Rate,” and if such “Prime Rates” are no longer generally
published or are limited, regulated or administered by a governmental or quasigovernmental body, then Holder shall select a comparable
interest rate index. If interest on this Note is calculated at the Prime Rate as provided herein, then the interest rate will
change on September 1, 2017 and on the first day of each month thereafter following any change in the Prime Rate.

3.0
Calculation of Interest Payments. Each payment hereunder shall be credited first to Holder’s collection expenses, next
to late charges, next to unpaid interest, and the balance, if any, to the reduction of the Principal Amount. The interest on this
Note shall be calculated on the basis of a 30-day month and a 360-day year.

    	Secured Convertible Promissory Note	 	Page 2 of 12

    	 

    

 

4.0
Prepayment of Note. This Note may be prepaid in whole or in part at any time, without penalty or premium, provided that Borrower
provides the Holder at least fifteen (15) days prior written notice of its intention to repay such Note, during which fifteen
(15) day period the Conversion Right (as defined below) shall apply.

5.0
Convertibility of Note. Holder will have the right to convert this Note into common stock of the Borrower at any time during
the term of the Note (the “Conversion Right”). The Holder will be limited to converting shares of the Note to common
stock of the Borrower prior to the Note being paid in full, such that Monaker’s beneficial ownership (as defined in the
Securities Exchange Act of 1934, as amended) of common stock in Borrower will not exceed 4.99% of Borrower’s issued and
outstanding shares of common stock. By written notice to the Borrower, the Holder may waive the provisions of this Section regarding
the 4.99% limitation, but any such waiver will not be effective until the 61st day after delivery of such notice. If Holder elects
to convert all or any portion of the Note during the term of the Note, the conversion price will be $1.00 per share (the “Conversion
Price”, as adjusted for recapitalizations, stock splits, combinations and dividends) unless, prior to the Note being paid
in full, Borrower completes a capital raise or acquisition and issues common stock or common stock equivalents (including, but
not limited to convertible securities) with a price per share (as determined in the reasonable discretion of the Holder) less
than the Conversion Price then in effect (a “Transaction”), then the Conversion Price will be adjusted to match such
lower pricing structure associated with the Transaction (provided such repricing shall continue to apply to subsequent Transactions
which occur prior to the Note being paid in full as well).

6.0
Borrower’s Waiver of certain rights. Borrower and each surety, endorser and guarantor hereof hereby waive all demands
for payment, presentations for payment, notices of intention to accelerate maturity, notices of acceleration of maturity, demand
for payment, protest, notice of protest and notice of dishonor, to the extent permitted by law. Borrower further waives trial
by jury. No extension of time for payment of this Note or any installment hereof, no alteration, amendment or waiver of any provision
of this Note and no release or substitution of any collateral securing Borrower’s obligations hereunder shall release, modify,
amend, waive, extend, change, discharge, terminate or affect the liability of Borrower under this Note.

Any
forbearance by Holder in exercising any right or remedy hereunder or under any other agreement or instrument in connection with
the Loan or otherwise afforded by applicable law, shall not be a waiver or preclude the exercise of any right or remedy by Holder.
The acceptance by Holder of payment of any sum payable hereunder after the due date of such payment shall not be a waiver of the
right of the Holder to require prompt payment when due of all other sums payable hereunder or to declare a default for failure
to make prompt payment.

If
this Note is placed in the hands of an attorney for collection, Borrower shall pay all costs incurred and reasonable attorneys’
fees for legal services in the collection effort, whether or not a suit is brought.

    	Secured Convertible Promissory Note	 	Page 3 of 12

    	 

    

 

At
the election of the Holder, all payments due hereunder may be accelerated, and this Note shall become immediately due and payable
without notice or demand, upon the occurrence of any of the following events (each an “Event of Default”):
(1) Borrower fails to pay on or before the date due, any amount of principal and/or interest payable hereunder; (2) Borrower fails
to perform or observe any other term or provision of this Note with respect to payment; provided, however, that
Borrower shall be provided with a ten (10) calendar day period to cure same; (3) Borrower fails to perform or observe any other
term or provision of this Note; provided, however, that Borrower shall be provided with written notice from Holder
of any non-monetary default under this Note and a thirty (30) calendar day period to cure same; (4) there exists a default under
the Agreement (as hereinafter defined), or a default under or misrepresentation contained in any other agreement, document or
certificate of Borrower, which default is not cured within any grace period expressly provided therefor in such document; (5)
Borrower shall: (i) become insolvent or take any action which constitutes its admission of inability to pay its debts as they
mature; (ii) make an assignment for the benefit of creditors, file a petition in bankruptcy, petition or apply to any tribunal
for the appointment of a custodian, receiver or a trustee for it or a substantial portion of its assets; (iii) commence any proceeding
under any bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or liquidation or statute of any jurisdiction,
whether now or hereafter in effect; (iv) have filed against it any such petition or application in which an order for relief is
entered or which remains undismissed for a period of thirty (30) days or more; (v) indicate its consent to, approval of or acquiescence
in any such petition, application, proceeding or order for relief or the appointment of a custodian, receiver or trustee for it
or a substantial portion of its assets; or (vi) suffer any such custodianship, receivership or trusteeship to continue undischarged
for a period of ninety (90) days or more; (6) Borrower shall dissolve or wind up; or (7) Borrower shall take any action authorizing,
or in furtherance of, any of the foregoing. In addition to the rights and remedies provided herein, Holder may exercise any other
right or remedy in any other document, instrument or agreement evidencing, securing or otherwise relating to the indebtedness
evidenced hereby in accordance with the terms thereof, or under applicable law, all of which rights and remedies shall be cumulative.

7.0
Transferability of the Note. This Note may be transferred or assigned by the Holder without the consent of the Borrower. If
this Note is transferred in any manner by the Holder, the rights, options and other provisions herein shall apply with equal effect
in favor of any subsequent holder hereof.

    	Secured Convertible Promissory Note	 	Page 4 of 12

    	 

    

 

Notwithstanding
anything to the contrary contained herein, under no circumstances shall the aggregate amount of interest paid or agreed to be
paid hereunder exceed the highest lawful rate permitted under applicable usury law (the “Maximum Rate”) and
the payment obligations of Borrower under this Note are hereby limited accordingly. If under any circumstances, whether by reason
of advancement or acceleration of the maturity of the unpaid principal balance hereof or otherwise, the aggregate amounts paid
on this Note shall include amounts which by law are deemed interest and which would exceed the Maximum Rate, Borrower stipulates
that payment and collection of such excess amounts shall have been and will be deemed to have been the result of a mistake on
the part of both Borrower and the holder of this Note, and the party receiving such excess payments shall promptly credit such
excess (to the extent only of such payments in excess of the Maximum Rate) against the unpaid principal balance hereof and any
portion of such excess payments not capable of being so credited shall be refunded to Borrower.

8.0
Note Holder’s Security of Assets. The (a) full and punctual payment (in lawful money of the United States and in immediately
available funds), as and when due, of all principal, interest, attorneys’ fees, costs, expenses and other amounts which
are or may become payable by Borrower under this Note; and (b) the full and punctual performance of all other obligations of Borrower
under this Note (collectively the “Obligations”) shall be secured by a security interest in, a continuing
first lien upon, an unqualified right to possession and disposition of and a right of set-off against, in each case to the fullest
extent permitted by law, all of the Borrower’s right, title and interest in, to the Assets (as defined in the Agreement),
including all proceeds therefrom (the “Collateral” and the “Security Interest”).

(a)

Prior
to the payment and performance in full of all of the Obligations, the Borrower shall not sell, pledge or otherwise transfer (whether
voluntarily, involuntarily, by operation of law, or by gift or for consideration) any of the Collateral or any of its interest
therein. Any such sale, pledge or other transfer shall be null and void and shall confer no rights on the purported transferee.
The Borrower shall at all times maintain good and marketable title to the Collateral free and clear of all liens, encumbrances
and other security interests. Company and where applicable, the Borrower, shall pay in full any tax that is imposed on any of
the Collateral prior to its delinquency and, within ten days after any other lien or encumbrance is imposed on any of the Collateral,
the Borrower shall pay and discharge such lien or other encumbrance in full.

(b)

The
Borrower shall preserve and protect the Holder’s first-priority security interest in the Collateral and shall cause the
Security Interest to be perfected and to continue to be perfected until the Obligations are paid and performed in full. The Borrower
shall execute and deliver to the Holder (within ten days after receipt of the Holder’s written request) such other security
agreements, endorsements, pledges, assignments and other documents (including, without limitation, financing statements and continuation
statements and amendments thereto) as the Holder may request from time to time to effectuate the grant to the Holder of the Security
Interest and the perfection of the Security Interest, and the Holder is authorized to file and/or record any such documents (whether
or not executed by Borrower) with appropriate regulatory authorities. The Borrower shall promptly notify the Holder in sufficient
detail upon becoming aware of any attachment, garnishment, execution or other legal process levied against any Collateral and
of any other information received by the Borrower that may materially affect the value of the Collateral, the Security Interest
or the rights and remedies of the Holder hereunder.

    	Secured Convertible Promissory Note	 	Page 5 of 12

    	 

    

 

 

(c)

Upon
occurrence of any Event of Default and at any time thereafter, the Holder (for the purposes of this Section, the “Secured
Party”) shall have the right to exercise all of the remedies conferred hereunder, and the Secured Party shall have
all the rights and remedies of a secured party under the Uniform Commercial Code, as currently in effect in the state of Florida
(the “UCC”) and/or any other applicable law (including the Uniform Commercial Code of any jurisdiction
in which any Collateral is then located). Without limitation, the Secured Party shall have the following rights and powers:

i. 

The
Secured Party shall have the right to take possession of the Collateral;

ii. 

The
Secured Party shall have the right to assign, sell, lease or otherwise dispose of and deliver all or any part of the Collateral,
at public or private sale or otherwise, either with or without special conditions or stipulations, for cash or on credit or for
future delivery, in such parcel or parcels and at such time or times and at such place or places, and upon such terms and conditions
as the Secured Party may deem commercially reasonable, all without (except as shall be required by applicable statute and cannot
be waived) advertisement or demand upon or notice to the Borrower or right of redemption of the Borrower, which are hereby expressly
waived. Upon each such sale, lease, assignment or other transfer of Collateral, the Secured Party may, unless prohibited by applicable
law which cannot be waived, purchase all or any part of the Collateral being sold, free from and discharged of all trusts, claims,
right of redemption and equities of the Borrower, which are hereby waived and released; and/or

iii.

The
Secured Party shall have the right to take any and all actions provided for under applicable law.

    	Secured Convertible Promissory Note	 	Page 6 of 12

    	 

    

 

(d)

The
proceeds of any such sale, lease or other disposition of the Collateral hereunder shall be applied first, to the expenses of retaking,
holding, storing, processing and preparing for sale, selling, and the like (including, without limitation, any taxes, fees and
other costs incurred in connection therewith) of the Collateral, to the reasonable attorneys’ fees and expenses incurred
by the Secured Party in enforcing its rights hereunder and in connection with collecting, storing and disposing of the Collateral,
and then to the satisfaction of the Obligations, and to the payment of any other amounts required by applicable law, after which
the Secured Party shall pay to the Borrower any surplus proceeds. If, upon the sale, license or other disposition of the Collateral,
the proceeds thereof are insufficient to pay all amounts to which the Secured Party is legally entitled, the Borrower will be
liable for the deficiency, together with interest thereon, at the Default Rate, and the reasonable fees of any attorneys employed
by the Secured Party to collect such deficiency. To the extent permitted by applicable law, the Borrower waives all claims, damages
and demands against the Secured Party arising out of the repossession, removal, retention or sale of the Collateral, unless due
to the gross negligence or willful misconduct of the Secured Party.

(e)

The
Borrower agrees to pay all out-of-pocket fees, costs and expenses incurred in connection with any filing which may be required
hereunder, including without limitation, any financing statements, continuation statements, partial releases and/or termination
statements related thereto or any expenses of any searches reasonably required by the Secured Party. The Borrower shall also pay
all other claims and charges which in the reasonable opinion of the Secured Party might prejudice, imperil or otherwise affect
the Collateral or the Security Interest therein. The Borrower will also, upon demand, pay to the Secured Party the amount of any
and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and agents, which the
Secured Party may incur in connection with (i) the enforcement of this Note, (ii) the custody or preservation of, or the sale
of, collection from, or other realization upon, any of the Collateral, or (iii) the exercise or enforcement of any of the rights
of the Secured Party under this Note. Until so paid, any fees payable hereunder shall be added to the principal amount of the
Note and shall bear interest at the Default Rate.

(f)

Borrower
hereby appoints Holder as its attorney-in-fact (with full power of substitution) to execute, deliver and file, effective upon
the occurrence of an Event of Default on Borrower’s behalf and at Borrower’s expense, (1) any financing statements,
continuation statements or other documents required to perfect or continue the Security Interest and (2) any other documents and
instruments that Holder determines are necessary or appropriate in order to enable it to exercise its rights and remedies that
are provided hereunder and by applicable law upon the occurrence of an Event of Default. This power, being coupled with an interest,
shall be irrevocable until the Obligations are paid and performed in full.

(g)

The
Security Interest shall terminate only if and when the Obligations have been paid and performed in full.

    	Secured Convertible Promissory Note	 	Page 7 of 12

    	 

    

 

(h)

All
rights of the Holder and all Obligations of the Borrower hereunder, shall be absolute and unconditional, irrespective of: (a)
any lack of validity or enforceability of this Note, or any agreement entered into in connection with the foregoing, or any portion
hereof or thereof; (b) any change in the time, manner or place of payment or performance of, or in any other term of, all or any
of the Obligations, or any other amendment or waiver of or any consent to any departure from the Notes, or any other agreement
entered into in connection with the foregoing; (c) any exchange, release or nonperfection of any of the Collateral, or any release
or amendment or waiver of or consent to departure from any other collateral for, or any guaranty, or any other security, for all
or any of the Obligations; (d) any action by the Holder or a Collateral Agent on behalf of the Holder to obtain, adjust, settle
and cancel in its sole discretion any insurance claims or matters made or arising in connection with the Collateral; or (e) any
other circumstance which might otherwise constitute any legal or equitable defense available to the Borrower, or a discharge of
all or any part of the Security Interest granted hereby. Until the Obligations shall have been paid and performed in full, the
rights of the Holder shall continue even if the Obligations are barred for any reason, including, without limitation, the running
of the statute of limitations or bankruptcy.

(i)

The
Borrower expressly waives presentment, protest, notice of protest, demand, notice of nonpayment and demand for performance. In
the event that at any time any transfer of any Collateral or any payment received by the Holder hereunder shall be deemed by final
order of a court of competent jurisdiction to have been a voidable preference or fraudulent conveyance under the bankruptcy or
insolvency laws of the United States, or shall be deemed to be otherwise due to any party other than the Holder, then, in any
such event, the Borrower’s Obligations hereunder shall survive cancellation of this Note, and shall not be discharged or
satisfied by any prior payment thereof and/or cancellation of this Agreement, but shall remain a valid and binding obligation
enforceable in accordance with the terms and provisions hereof. The Borrower waives all right to require the Holder or a Collateral
Agent on behalf of the Holder to proceed against any other person or to apply any Collateral which the Holder or Collateral Agent
on behalf of the Holder may hold at any time, or to pursue any other remedy. The Borrower waives any defense arising by reason
of the application of the statute of limitations to any obligation secured hereby.

By
acceptance of Holder’s Assets described in the Agreement, pursuant to the Agreement and execution of this Note, Borrower
acknowledges, agrees and confirms that it has no defense, offset or counterclaim for any occurrence in relation to this Agreement
and Borrower acknowledges that Holder has complied with all of its obligations under the Agreement as of the date hereof.

    	Secured Convertible Promissory Note	 	Page 8 of 12

    	 

    

 

9.0
Payments of principal and interest. All payments of principal and interest hereunder are payable in lawful money of the United
States of America and shall be made by wire transfer to the account of Holder, as instructed, at Bank of America, pursuant to
wiring instructions to be provided to Borrower or to such other accounts as may be instructed by Holder.

10.0
Right of setoff or any defense. Borrower is hereby prohibited from exercising against Holder, any right or remedy which it
might otherwise be entitled to exercise against Holder, including, without limitation, any right of setoff or any defense. Any
other claim that Borrower may have, arising from or related to the transaction evidenced by this Note and the Agreement shall
be asserted only against the Holder.

11.0
Binding Effect; Construction. This Note shall be binding on the parties hereto and their respective heirs, legal representatives,
executors, successors and permitted assigns. This Note shall be construed without any regard to any presumption or rule requiring
construction against the party causing such instrument or any portion thereof to be drafted.

12.0
Governing Law. This Note shall be governed by the laws of the State of Florida without regard to choice of law consideration.
Borrower hereby irrevocably consents to the jurisdiction of the courts of the State of Florida and of any federal court located
in such State in connection with any action or proceeding arising out of or relating to this Note or the Agreement.

13.
Notification and Rights to Modify or change note. This Note may not be changed or terminated orally. Any changes or modifications
must be acknowledged and accepted by both parties in writing.

14.
General. A determination that any portion of this Note is unenforceable or invalid shall not affect the enforceability or
validity of any other provision, and any determination that the application of any provision of this Note to any person or circumstance
is illegal or unenforceable shall not affect the enforceability or validity of such provision to the extent legally permissible
and otherwise as it may apply to other persons or circumstances.

    	Secured Convertible Promissory Note	 	Page 9 of 12

    	 

    

 

JURY
TRIAL WAIVER. BORROWER AGREES THAT ANY SUIT, ACTION OR PROCEEDING, WHETHER CLAIM OR COUNTERCLAIM, BROUGHT BY BORROWER OR THE HOLDER
OF THIS NOTE ON OR WITH RESPECT TO THIS NOTE OR ANY OTHER DOCUMENT OR THE DEALINGS OF THE PARTIES WITH RESPECT HERETO OR THERETO,
SHALL BE TRIED ONLY BY A COURT AND NOT BY A JURY. BORROWER AND HOLDER EACH HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH SUIT, ACTION OR PROCEEDING. BORROWER ACKNOWLEDGES AND AGREES THAT AS OF THE DATE HEREOF
THERE ARE NO DEFENSES OR OFFSETS TO ANY AMOUNTS DUE IN CONNECTION WITH THE LOAN. FURTHER, BORROWER WAIVES ANY RIGHT IT MAY HAVE
TO CLAIM OR RECOVER, IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY SPECIAL, EXEMPLARY, PUNITIVE, CONSEQUENTIAL OR OTHER DAMAGES
OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. BORROWER ACKNOWLEDGES AND AGREES THAT THIS PARAGRAPH IS A SPECIFIC AND MATERIAL
ASPECT OF THIS NOTE AND THAT HOLDER WOULD NOT EXTEND CREDIT TO BORROWER IF THE WAIVERS SET FORTH IN THIS PARAGRAPH WERE NOT A
PART OF THIS NOTE.

15.
Signatures. This Note and any signed agreement or instrument entered into in connection with this Note, and any
amendments hereto or thereto, may be executed in one or more counterparts, all of which shall constitute one and the same
instrument. Any such counterpart, to the extent delivered by means of a facsimile machine or by .pdf, .tif, .gif, .peg or
similar attachment to electronic mail (email) or downloaded from a website or data room shall be treated in all manner and
respects as an original executed counterpart and shall be considered to have the same binding legal effect as if it were the
original signed version thereof delivered in person.

 

[Remainder
of this page intentionally left blank.]

 

 

    	Secured Convertible Promissory Note	 	Page 10 of 12

    	 

    

 

IN
WITNESS WHEREOF, the undersigned has executed this Note on the date set forth above.

 

	 	BORROWER: BETTWORK INDUSTRIES, INC., a Nevada Corporation
	 	 
	 	By:	/s/ Sean Kelly	 
	 	 	Name:  Sean Kelly 
	 	 	 
	 	 	Title:   CEO/Chairman of the Board

 

 

	WITNESS:	 
	 	 
	/s/ William Ellers	 	 
	Name:  William Ellers 	 

 

 

    	Secured Convertible Promissory Note	 	Page 11 of 12

    	 

    

 

 

	STATE
OF FLORIDA	)
	 	) ss.:
	COUNTY OF _________	)

 

I
certify that on August ___, 2017, ______________ came before me in person and stated to my satisfaction that he/she:

(a)

signed the attached $1.9 million Secured Convertible Promissory Note by Bettwork Industries
Inc. in favor of Monaker Group, Inc.; and

(b)

was
authorized to and did execute said instrument on behalf of and as ______________ of Bettwork Industries Inc., a Nevada corporation
(the “Company”), the entity named in this instrument, as the free act and deed of the Company, by virtue of the authority
granted by the Company’s organizational documents.

 

	 	 	 
	 	NOTARY
PUBLIC	 

 

 

    	Secured Convertible Promissory Note	 	Page 12 of 12Monaker Group, Inc. 8-K

 

Exhibit 10.4 

 

ASSIGNMENT AND NOVATION AGREEMENT

This Assignment and
Novation Agreement (this “Agreement”) dated and effective August [ ], 2017 (the “Effective
Date”) is by and between Monaker Group, Inc., a Nevada corporation (“Monaker”),
Crystal Falls Investments, LLC, a Florida limited liability company (“Crystal Falls”), and Bettwork
Industries Inc., a Nevada corporation (“Bettworks”). All contracting entities are each referred
to as a “Party” and collectively as the “Parties” to the Agreement as such
terms are used herein.

W I T N E S S E T H: 

WHEREAS, on
May 16, 2016, in connection with the sale by Monaker to Crystal Falls, of Monaker’s 51% membership interest in Name Your
Fee, LLC (“Name Your Fee”), Crystal Falls entered into a $750,000 Promissory Note in favor of Monaker
(the “Note”, a copy of which is attached hereto as Exhibit A;

WHEREAS, as
of the date of this Agreement the Note has a principal balance of $750,000 and no accrued interest; and

WHEREAS, Crystal
Falls desires to sell its interest in Name Your Fee to Bettworks and as part of that sale, Bettworks desires to assume all of Crystal
Falls’ obligations under the Note and Monaker desires to consent to such assignment on the terms and on the conditions set
forth herein.

NOW, THEREFORE,
in consideration of the premises and the mutual covenants, agreements, and considerations herein contained, which the Parties acknowledge
the receipt and sufficiency of, the Parties hereto agree as follows:

1.       

Assignment.

1.1.       

Effective as
of the Effective Date, Crystal Falls assigns all of its obligations and liabilities under the Note to Bettworks and Bettworks accepts
such assignment (the “Assignment”).

1.2.       

Effective upon
the Parties’ entry into this Agreement, the Note and all of the obligations thereunder shall be deemed to have been assigned
from Crystal Falls to Bettworks and all obligations and requirements under the Note shall be owed only by Bettworks to Monaker
and Crystal Falls shall have no further liability thereunder.

1.3.       

Effective as
of the Effective Date, Monaker releases and discharges Crystal Falls from all obligations, liabilities, claims and demands howsoever
arising under or in relation to the Note and accepts the obligations and liabilities of Bettworks under the Note in place of the
liabilities and obligations of Crystal Falls.

    	 	Page 1 of 7
 Assignment and Novation Agreement	 

    	 

    

 

1.4.       

Effective as
of the Effective Date, Bettworks agrees to observe, perform, discharge and be bound by the terms and conditions and covenants of
the Note in every way as if Bettworks were, and had originally been, a party to the Note in place of Crystal Falls. Without limiting
the forgoing, Bettworks agrees and acknowledges the Profit Participation obligation as set forth in the Note, which obligation
Bettworks confirms, acknowledges and agrees to abide by and comply with as if Bettworks was an original party to the Note. Bettworks
also confirms and acknowledges that the ownership interest in Name Your Fee serves as security for the repayment of the Note and
Bettworks authorizes Monaker to file financing statements and other security instruments in such jurisdictions as it may deem necessary
or warranted to reflect the collateral on such membership interests of Name Your Fee, as owned by Bettworks.

1.5.       

Monaker covenants
not to bring any suit, action or proceeding or make any demand or claim of any type against Crystal Falls relating to or in connection
with the Note or the relationship created thereby. Such release and discharge in being without prejudice to the liabilities and
obligation of Bettworks to Monaker under the Note as novated by this Agreement.

1.6.       

In consideration
for the Assignment and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and
effective on the Effective Date, Crystal Falls hereby releases, acquits and forever discharges Monaker, its current, past and future
affiliates, agents, directors, officers, servants, representatives, successors, shareholders, employees, attorneys, and assigns
(collectively, the “Release Parties”) from all actions, causes of action, suits, debts, dues, sums of
money, accounts, reckonings, covenants, controversies, agreements, promises, variances, trespasses, damages, judgments, claims
and demands, whether asserted or unasserted, whether known or unknown, suspected or unsuspected, which it ever had or now has,
upon or by reason of any manner, cause, causes or thing whatsoever, in law or equity and all rights, obligations, claims, demands,
whether in contract, tort, or state and/or federal law arising from or relating to or associated with the Note, or in connection
with any other matter whatsoever (the “Release”). Crystal Falls further represents that it has not assigned,
in whole or in part, any claim, demand and/or causes of action against any Released Party prior to its entry into this Agreement.

1.7.       

Bettworks will
do or cause to be done all things reasonably necessary to preserve and keep in full force and effect its corporate existence, rights
and franchises and comply with all laws applicable to Bettworks, except where the failure to comply could not reasonably be expected
to have a material adverse effect on Bettworks until the payment in full or conversion in full (as provided below) of the Note.

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2.       

Consent to Assignment.
Pursuant to the foregoing terms and conditions Monaker hereby approves the Assignment and the terms and conditions of this Agreement
and represents and warrants that it shall not raise any claims against Crystal Falls in connection with the breach, default or
non-performance of the Note by Bettworks after the Effective Date, which obligations shall be owed solely by Bettworks to Monaker.

3.       

Compliance with
Terms of Note. Bettworks agrees and covenants to comply with all of the terms and conditions of the Note, as modified hereby,
and to be bound by all of such terms as if it were an original party thereto.

4.       

Continued Effectiveness.
Except as otherwise provided or modified herein, all terms and conditions of the Note shall remain effective with respect to Monaker
and Bettworks.

5.       

Note Conversion
Option Right.

5.1.       

As additional
consideration for Monaker agreeing to the Assignment, Monaker shall have the option, exercisable at any time after the date of
this Agreement, from time to time, to convert any or all of the outstanding principal and interest due under the Note into fully-paid
non-assessable shares of common stock of Bettworks (the “Shares” and a “Conversion”).
The number of Shares due to Monaker in connection with any Conversion shall equal the total principal and interest amount of the
Note which is converted by Monaker into Shares, divided by $1.00 (as adjusted for any stock splits, subdivisions, combinations,
recapitalizations, stock dividends or similar events effecting Bettworks’ common stock)(the “Conversion Price”),
rounded up to the nearest whole share of common stock.

5.2.       

In order to exercise
the conversion option set forth in this Section 5 (the “Conversion Option”), Monaker shall provide
Bettworks a written notice of its intention to exercise the Conversion Option, which shall be in the form of Exhibit A,
attached hereto (“Notice of Conversion”). Within three (3) business days of Bettworks’ receipt
of the Notice of Conversion, Bettworks shall issue the Shares in the name of Monaker. Monaker and Bettworks shall maintain records
showing the actual principal and interest due on the Note, provided that absent manifest error, Monaker’s records shall control.
It shall not be necessary for Monaker to deliver a copy of the Note upon any Conversion thereof and instead the parties shall update
their records to reflect for any such conversion(s).

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5.3.       

Bettworks shall
at all times reserve and keep available such number of its duly authorized but unissued shares of common stock as is necessary
to comply with the terms of this Agreement and the Note and for the issuance of the Shares which could be issued in connection
with the Conversion Option. If at any time the number of shares of authorized but unissued common stock are not sufficient to comply
with the terms of this Agreement, the Note, and provide for full conversion of the Note, Bettworks will promptly take such corporate
action as may be necessary to increase its authorized but unissued shares of common stock to such number of shares of common stock
as are sufficient for such purpose. Bettworks will obtain any authorization, consent, approval or other action by or make any filing
with any court or administrative body that may be required under applicable securities laws in connection with the issuance of
any shares issued by it in order to comply with the terms of this Agreement, the Note, and to allow for the issuance of the Shares.

6.       

Amendment to
the Note. Effective upon the execution of this Agreement by all of the Parties hereto, (a) Section (d) of the Note
shall be deemed removed and deleted from the Note; and (b) any breach by Bettworks of any term, condition or obligation set forth
in this Agreement shall be deemed an Event of Default under the Note.

7.       

Representations,
Covenants and Warranties. Each of the Parties, for themselves and for the benefit of each of the other Parties hereto,
represents, covenants and warranties that:

(a)       

Such Party has
all requisite power and authority, corporate or otherwise, to execute and deliver this Agreement and to consummate the transactions
contemplated hereby and thereby. This Agreement constitutes the legal, valid and binding obligation of such Party enforceable against
such Party in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights generally and general equitable principles;

(b)       

The execution
and delivery by such Party and the consummation of the transactions contemplated hereby and thereby do not and shall not, by the
lapse of time, the giving of notice or otherwise: (i) constitute a violation of any law; or (ii) constitute a breach of any provision
contained in, or a default under, any governmental approval, any writ, injunction, order, judgment or decree of any governmental
authority, any of the governing documents of such Party, or any contract to which such Party is bound or affected; and

(c)       

any individual
executing this Agreement on behalf of a Party has authority to act on behalf of such Party and has been duly and properly authorized
to sign this Agreement on behalf of such Party.

8.       

Further Assurances.
The Parties agree that, from time to time, each of them will take such other action and to execute, acknowledge and deliver such
contracts, deeds, or other documents as may be reasonably requested and necessary or appropriate to carry out the purposes and
intent of this Agreement and the transactions contemplated herein.

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9.       

Effect of Agreement.
Upon the effectiveness of this Agreement, each reference in the Note to “Agreement,” “hereunder,”
“hereof,” “herein” or words of like import shall mean and be a reference to
such Note as modified hereby to affect the Assignment and the terms hereof, provided that it shall not be necessary for Bettworks
to deliver a replacement Note to Monaker and instead the Note, together with this Agreement, shall evidence and document Bettworks’
obligation to pay Monaker pursuant to the Note.

10.       

Note to Continue
in Full Force and Effect. Except as specifically modified or amended herein, the Note and the terms and conditions thereof
shall remain in full force and effect.

11.       

Consideration.
All of the Parties agree and confirm by signing below that they have received valid consideration in connection with this Agreement
and the transactions contemplated herein.

12.       

Miscellaneous.

(a)       

Assignment.
All of the terms, provisions and conditions of this Agreement shall be binding upon and shall inure to the benefit of and be enforceable
by the Parties hereto and their respective successors and permitted assigns.

(b)       

Applicable
Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Florida, excluding any provision
of this Agreement which would require the use of the laws of any other jurisdiction. In the event that the Parties are unable to
resolve such dispute to the initial legal action, the Parties submit to the jurisdiction and venue in the State or Federal courts
of Florida.

(c)       

Entire Agreement,
Amendments and Waivers. This Agreement constitutes the entire agreement of the Parties hereto and expressly supersedes all
prior and contemporaneous understandings and commitments, whether written or oral, with respect to the subject matter hereof, except
for the Note as amended hereby. No variations, modifications, changes or extensions of this Agreement or any other terms hereof
shall be binding upon any Party hereto unless set forth in a document duly executed by such Party or an authorized agent of such
Party.

(d)       

Waiver.
No failure on the part of any Party to enforce any provisions of this Agreement will act as a waiver of the right to enforce that
provision.

(e)       

Section Headings.
Section headings are for convenience only and shall not define or limit the provisions of this Agreement.

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(f)       

Severability.
Should any clause, sentence, paragraph, subsection, Section or Article of this Agreement be judicially declared to be invalid,
unenforceable or void, such decision will not have the effect of invalidating or voiding the remainder of this Agreement, and the
Parties agree that the part or parts of this Agreement so held to be invalid, unenforceable or void will be deemed to have been
stricken herefrom by the Parties, and the remainder will have the same force and effectiveness as if such stricken part or parts
had never been included herein.

(g)       

Counterparts
and Signatures. This Agreement and any signed agreement or instrument entered into in connection with this Agreement, and any
amendments hereto or thereto, may be executed in one or more counterparts, all of which shall constitute one and the same instrument.
Any such counterpart, to the extent delivered by means of a facsimile machine or by .pdf, .tif, .gif, .peg or similar attachment
to electronic mail (any such delivery, an “Electronic Delivery”) shall be treated in all manner and respects
as an original executed counterpart and shall be considered to have the same binding legal effect as if it were the original signed
version thereof delivered in person. No Party shall raise the use of Electronic Delivery to deliver a signature or the fact that
any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to
the formation of a contract, and each such Party forever waives any such defense, except to the extent such defense relates to
lack of authenticity.

 

 

[Remainder of page left intentionally
blank. Signature page follows.]

 

 

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IN WITNESS WHEREOF,
the Parties hereto have executed this Agreement as of the date first written above to be effective as of the Effective Date written
above.

(“Bettworks”)

Bettwork Industries Inc.

	 	By:	/s/ Sean Kelly	 
	 	 	 	 
	 	Its:	CEO/Chairman 	 
	 	 	 	 
	 	Printed Name:	Sean Kelly	 

(“Monaker”)

Monaker Group, Inc.

	 	By:	/s/ William Kerby 	 
	 	 	 	 
	 	Its:	CEO	 
	 	 	 	 
	 	Printed Name:	Bill Kerby 	 

 

(“Crystal Falls”)

Crystal Falls Investments,
LLC

	 	By:	/s/ Ash Mascarenhas	 
	 	 	 	 
	 	Its:	President 	 
	 	 	 	 
	 	Printed Name:	Ash Mascarenhas	 

 

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EXHIBIT A

Conversion Election Form

____________, 20__

Re:

Conversion of Promissory Note

Ladies and Gentlemen:

You are hereby notified
that, pursuant to, and upon the terms and conditions of that certain Promissory Note of Bettwork Industries Inc. (the “Company”)
dated May 16, 2016 (the “Note”) and that certain Assignment and Novation Agreement dated on or around
August [ ], 2017, between Monaker Group, Inc., Crystal Falls Investments, LLC and Bettwork Industries Inc. (the “Agreement”),
we hereby elect to exercise our Conversion Option (as such term in defined in the Agreement), in connection with $__________ of
the amount currently owed under the Note (including $___________ of principal and $________ of accrued interest), effective as
of the date of this writing, which amount will convert into ________________ shares of the common stock of the Company (the “Conversion”),
based on the Conversion Price (as defined in the Note). Please issue certificate(s) for the applicable securities issuable upon
the Conversion, in the name of the person provided below.

 

	 	Very truly yours,
	 	 
	 	 	 	 
	 	Name:
	 	 
	 	If on behalf of Entity:
	 	
	 	Entity Name:	 	 
	 	
		
        Signatory’s Position with Entity:

	 	 	 	 

 

Please issue certificate(s) for common stock as follows:

	 	 	 	 
	Name	 
	 	 	 	 
	Address 	 
	 	 	 	 
	Social Security No./EIN of Shareholder	 
	 	 
	Please send the certificate(s) evidencing the common stock
to:	 
	 	 
	Attn:	 	 	 
	 	 
	Address:

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