SEC Contract Filing

Filing Date: 2019-07-19

Document Content:
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>f2sgrst8k071819ex10_1.htm
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<P STYLE="margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.</B></FONT></P>

<P STYLE="margin: 0 1in 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="margin: 0 1in 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

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 <TD STYLE="width: 59%; padding-right: -12.75pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Principal
 Amount: $282,000.00</B></FONT></TD>
 <TD STYLE="width: 41%; padding-right: -12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Issue
 Date: July 8, 2019</B></FONT></TD></TR>
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 <TD STYLE="padding-right: 1in; padding-left: 5.4pt"><P STYLE="margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Purchase
 Price: $253,800.00</B></FONT></P>
 <P STYLE="margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Original Issue Discount:
 $28,200.00</B></FONT></P></TD>
 <TD STYLE="padding-right: 1in; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
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<P STYLE="margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>CONVERTIBLE
PROMISSORY NOTE</U></B></FONT></P>

<P STYLE="margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FOR VALUE
RECEIVED</B>, <B>ETHEMA HEALTH CORPORATION</B>, a Colorado corporation (hereinafter called the &ldquo;Borrower&rdquo; or &ldquo;Company&rdquo;)
(Trading Symbol: GRST), hereby promises to pay to the order of <B>LABRYS FUND, LP</B>, a Delaware limited partnership, or registered
assigns (the &ldquo;Holder&rdquo;) the sum of US$282,000.00, together with any interest as set forth herein, on January 8, 2020
(the &ldquo;Maturity Date&rdquo;), and to pay interest on the unpaid principal balance hereof at the rate of ten percent (10%)
(the &ldquo;Interest Rate&rdquo;) per annum from the date hereof (the &ldquo;Issue Date&rdquo;) until the same becomes due and
payable, whether at maturity or upon acceleration or by prepayment or otherwise. In connection with the issuance of this convertible
promissory note (the &ldquo;Note&rdquo;), the Borrower shall, on the Issue Date, issue 2,700,000 shares of common stock (the &ldquo;Returnable
Shares&rdquo;) to Holder as a commitment fee, <U>provided</U>, <U>however</U>, the Returnable Shares must be returned to the Borrower&rsquo;s
treasury if the Note is fully repaid and satisfied prior to the date which is one hundred eighty (180) calendar days following
the Issue Date, subject further to the terms and conditions of this Note.</FONT></P>

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<P STYLE="margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This Note
may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on
this Note which is not paid when due shall bear interest at the rate of the lesser of (i) eighteen percent (18%) per annum or
(ii) the maximum amount allowed by law from the due date thereof until the same is paid (the &ldquo;Default Interest&rdquo;).
Interest shall commence accruing on the date that the Note is fully paid and shall be computed on the basis of a 365-day year
and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.01 par value
per share (the &ldquo;Common Stock&rdquo;) in accordance with the terms hereof) shall be made in lawful money of the United States
of America.</FONT></P>

<P STYLE="margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All payments
shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the
provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day