Orgenesis Inc.: Exhibit 4.1 - Filed by newsfilecorp.com






EXHIBIT C 

FORM OF NOTE 

THIS CONVERTIBLE NOTE (THE “NOTE”) AND THE SECURITIES
ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), NOR UNDER ANY
STATE SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, PLEDGED, SOLD, ASSIGNED,
TRANSFERRED, OR OTHERWISE DISPOSED OF UNLESS AN EXEMPTION EXISTS OR UNLESS SUCH
DISPOSITION IS NOT SUBJECT TO THE SECURITIES ACT OR STATE SECURITIES LAWS, AND
THE AVAILABILITY OF ANY EXEMPTION OR THE INAPPLICABILITY OF SUCH SECURITIES LAWS
MUST BE ESTABLISHED BY AN OPINION OF COUNSEL, WHICH OPINION OF COUNSEL WILL BE
REASONABLY SATISFACTORY TO THE COMPANY. 

Issue Date: November 21, 2018 

$ 250,000 

TWO PERCENT (2%) UNSECURED CONVERTIBLE NOTE 

  1.         
General 

FOR VALUE RECEIVED, Orgenesis Inc. (the
“Company”) promises to pay to the order of _________
(the “Holder”) the principal sum of Two Hundred Fifty Thousand
Dollars ($250,000) in lawful currency of the United States (the
“Principal Amount”) and to pay interest to the Holder on the aggregate
unconverted and then outstanding Principal Amount at the rate of two percent
(2.0%) per annum, on November 21, 2021 (the “Maturity Date”). 

This Note has been entered into pursuant to the terms of a
subscription agreement between the Company and the Holder, dated of even date
herewith (the “Subscription Agreement”), and shall be governed by the
terms of such Subscription Agreement. Unless otherwise separately defined
herein, all capitalized terms used in this Note shall have the same meaning as
is set forth in the Subscription Agreement. 

Interest payable on this Note shall accrue on the outstanding
Principal Amount at a rate per annum of two percent (2%) computed on the basis
of the actual number of days elapsed and a year of 365 days. Interest shall be
payable in arrears together with, at the same time and in the same manner as
payment of Principal Amount, on the Maturity Date, whether by acceleration or
otherwise. 

Payment of this Note shall be paid to the Holder by the Company
by wire transfer in accordance with the wiring instructions set out by Holder at
time of payment (or such other instructions as the Holder may give the Company
of from time to time) (or such other method as may be mutually agreed to by the
Holder and the Company from time to time). THIS NOTE MAY NOT BE TRANSFERRED
OR EXCHANGED. 

2.         
Event of Default For the purposes of this Note, the Company shall
be in default upon the occurrence of any one or more of the following events
(each such event being an “Event of Default”): 

(a)          default shall be made
in the payment of any installment of principal or interest on this Note or any
other sum secured hereby when due and the Company fails to cure such default
within ten (10) days after written notice of default is sent to the Company;






(b)          there is a material
default by the Company in the observance or performance of any non-monetary
covenant or agreement contained herein and the Company fails to cure such
default within thirty (30) days after written notice of default is sent to the
Company (or within such other time period as may be therein specifically
provided); 

(c)          there is a breach by
the Company of any material representation or warranty contained herein; 

(d)          the Company shall file
a voluntary petition in bankruptcy or shall be adjudicated bankrupt or
insolvent, or shall file any petition or answer seeking or acquiescing in any
reorganization, arrangement, composition, readjustment, liquidation, dissolution
or similar relief for itself under any present or future federal, state or other
statute, law or regulation relating to bankruptcy, insolvency or other relief
for debtors; or shall seek, consent to, or acquiesce in, the appointment of any
trustee, receiver or liquidator of the Company or of all or substantially all of
the assets of the Company (the “Assets”), or of any or all of the
royalties, revenues, rents, issues or profits thereof, or shall make any general
assignment for the benefit of creditors, or shall admit in writing its inability
to pay its debts generally as they become due; 

(e)          a petition to a court
of competent jurisdiction shall be filed for the entry of an order, judgment or
decree approving a petition filed against the Company seeking any
reorganization, dissolution or similar relief under any present or future
federal, state or other statute, law or regulation relating to bankruptcy,
insolvency or other relief for debtors, and such petition shall remain unvacated
or not removed for an aggregate of sixty (60) days (whether or not consecutive)
from the first date of entry thereof or rejected by such court; or any trustee,
receiver or liquidator of the Company or of all or any part of the Assets, or of
any or all of the royalties, revenues, rents, issues or profits thereof, shall
be appointed without the consent or acquiescence of the Company and such
appointment shall remain unvacated and unstayed for an aggregate of sixty (60)
days (whether or not consecutive); 

(f)          a writ of execution or
attachment or any similar process shall be issued or levied against all or any
part of or interest in the Assets, or any judgment involving monetary damages
shall be entered against the Company which shall become a lien on the Assets or
any portion thereof or interest therein and such execution, attachment or
similar process or judgment is not released, bonded, satisfied, vacated or
stayed within sixty (60) days after its entry or levy; or 

(g)          the Company ceases or
threatens to cease to carry on its business; or 

(h)          the Company admits its
inability to pay its debts upon their falling due. 

If any Event of Default occurs, subject to any cure period, the
full Principal Amount, together with interest and other amounts owing in respect
thereof to the date of acceleration shall become, at the Holder’s election,
immediately due and payable in cash. Upon payment of the full Principal Amount,
together with interest and a default interest at the rate of 12% per annum
(accruing as from the time of occurrence of the Event of Default) and other
amounts owing in respect thereof, in accordance herewith, this Note shall
promptly be surrendered to or as directed by the Company. The Holder need not
provide, and the Company hereby waives any presentment, demand, protest or other
notice of any kind, and the Holder may immediately and without expiration of any
grace period enforce any and all of its rights and remedies hereunder and all
other remedies available to it under applicable law. Such declaration may be
rescinded and annulled by the Holder at any time prior to payment hereunder and
the Holder shall have all rights as a Note holder until such time, if any, as
the full payment under this Section 2 shall have been received by it. No such rescission or annulment shall affect
any subsequent Event of Default or impair any right consequent thereon. 

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3.         
  Conversion. This Note, all or any part of the Principal
  Amount of the Note, plus accrued and unpaid interest thereon, shall be
  convertible into either of the following in the sole discretion of the Holder:
  (i) Units consisting of (1) Conversion Shares and one (1) Warrant Share (such
  Warrant Shares to be issued at the Exercise Price pursuant to the terms of the
Warrant) or (ii) the Hemogenyx Securities. 

3.1          Conversion Price;
Conversion Shares. The conversion price for the Principal Amount and
interest under this Note shall be either of the following: (i) $7.00 in the
event the Holder elects to convert the Principal Amount and interest under this
Note into Units or (ii) a price per share based on a pre-money valuation of
Hemogenyx of US$12,000,000 in the event the Holder elects to convert the
Principal Amount and interest under this Note into the Hemogenyx Securities
(each applicable price being referred to as the “Conversion Price”). The
number of Units or Hemogenyx Securities (as applicable) issuable upon a
conversion hereunder shall be determined by the quotient obtained by dividing
(x) the outstanding Principal Amount of this Note, plus accrued and unpaid
interest thereon, to be converted by (y) the applicable Conversion Price. 

3.2          Mandatory
Conversion. At any time after the first two (2) years of this Agreement, the
entire Principal Amount under this Note, plus accrued and unpaid interest
thereon, shall automatically convert into Units if at any time from and after
the date hereof, the closing price of the Company’s Common Stock on the Nasdaq
Capital Market (or other national stock exchange or market on which the Common
Stock is then listed or quoted) equals or exceeds $20.00 per share (which amount
may be adjusted for certain capital events, such as stock splits, as described
herein) for thirty (30) consecutive Trading Days (a “Conversion Event”).
The Principal Amount under this Note, plus accrued and unpaid interest thereon,
shall convert at $7.00 per share. Within five (5) Business Days after such
Conversion Event, the Company shall notify the Holder that the Note must be
automatically converted pursuant to this Section 3.2 and specify the Principal
Amount of the Note and accrued interest that will automatically converted and
the date on which such conversion was effected. 

3.2          Voluntary
Conversion. During the Converison Period (as may be extended pursuant to the
terms of the Subscription Agreement), this Note shall be convertible (pursuant
to Section 1.2 and 1.3 of the Subscription Agreement), in whole or in part, into
Units or Hemogenyx Securities at the option of the Holder, at any time and from
time to time, at the applicable Conversion Price. The Holder shall effect
conversions by delivering to the Company a Notice of Conversion, the forms of
which is attached hereto as Annex A for conversion into the Units and
Annex B for the conversion into Hemogenyx Securities (each, a “Notice
of Conversion”), specifying therein the Principal Amount of this Note and
accrued interest, if any, to be converted, and the date on which such conversion
shall be effected (such date, the “Conversion Date”). If no Conversion
Date is specified in a Notice of Conversion, the Conversion Date shall be the
date that such Notice of Conversion is deemed delivered hereunder. To effect
conversions hereunder, the Holder shall not be required to physically surrender
this Note to the Company unless the entire Principal Amount of this Note, plus
all accrued and unpaid interest thereon, has been so converted in which case the
Holder shall surrender this Note as promptly as is reasonably practicable after
such conversion without delaying the Company’s obligation to deliver the Units
otherwise pursuant to the terms of this Note. Conversions hereunder shall have
the effect of lowering the outstanding Principal Amount of this Note in an
amount equal to the applicable conversion. The Holder and the Company shall
maintain records showing the Principal Amount(s) converted and the date of such
conversion(s). The Company may deliver an objection to any Notice of Conversion
within five (5) Business Days of delivery of such Notice of Conversion. The
Holder, and any assignee by acceptance of this Note, acknowledge and agree that,
by reason of the provisions of this paragraph, following conversion of a portion
of this Note, the unpaid and unconverted principal amount of this Note
may be less than the amount stated on the face hereof.

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3.3          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
  effecting the conversion of this Note and the exercise of the Warrants, that
  number of shares of Common Stock equal to sum of (i) the number of shares of
  Common Stock into which the Note is convertible from time to time based upon the
  Conversion Price, plus (ii) the number of shares of Common Stock for which the
  Warrants are exercisable from time to time based upon the Exercise Price.In the
  event the Holder elects to convert the Principal Amount and interest owed under
  the Note into Hemogenyx Securities, the Company makes no representation or
  warranties of any kind with respect to the Hemogenyx Securities and the
  reservation and availability thereof pursuant to the terms of this Note and the
Subscription Agreement.

3.4          Delivery. In
the event the Holder elects to convert the Principal Amount and interest owed
under this Note into Units, then not later than ten Business Days after any
Conversion Date, the Company will deliver to the Holder, either by overnight
courier service to the address of the Holder set out on page 1 of this Note (or
such other address as the Holder may notify the Company of from time to time in
accordance with Section 5 hereof) or electronically, at the discretion of the
Holder, certificates representing the Conversion Shares and Warrants (bearing
such legends as may be required by applicable law) representing the aggregate
number of Conversion Shares and Warrants being acquired upon conversion. In the
event the Holder elects to convert the Principal Amount and interest owed under
this Note into the Hemogenyx Securities, the Company undertakes to use
reasonable efforts to have Hemogenyx issue the Hemogenyx Securities in the name
of the Holder in a timely manner.

3.5          Fractional Shares
and Warrants. Upon a conversion hereunder, the Company shall not be required
to issue certificates representing fractions of any Conversion Shares or
Warrants, and the number of Conversion Shares and Warrants shall be rounded down
to the nearest whole number. 

3.6          Issuance of
Replacement Note. Upon any partial conversion of this Note, a replacement
Note containing the same date and provisions of this Note shall, at the written
request of the Holder, be issued by the Company to the Holder for the
outstanding Principal Amount of this Note and accrued interest which shall not
have been converted or paid, provided Holder has surrendered an original Note to
the Company. In the event that the Holder elects not to surrender a Note for
reissuance upon partial payment or conversion, the Holder hereby indemnifies the
Company against any and all loss or damage attributable to a third-party claim
in an amount in excess of the actual amount then due under the Note.

4.         
Adjustments 

4.1          If,
at any time while any portion of this Note remains outstanding, the Company
effectuates a stock split or reverse stock split of its Common Stock or issues a
dividend on Common Stock consisting of shares of Common Stock, the Conversion
Price and any other amounts calculated as contemplated hereby or by any of the
other Agreements shall be equitably adjusted to reflect such action. By way of
illustration, and not in limitation, of the foregoing, (i) if the Company
effectuates a 2:1 split of its Common Stock, thereafter, with respect to any
conversion for which the Company issues shares after the record date of such
split, the Conversion Price shall be deemed to be one-half of what it had been
immediately prior to such split; (ii) if the Company effectuates a 1:10 reverse
split of its Common Stock, thereafter, with respect to any conversion for which
the Company issues shares after the record date of such reverse split, the
Conversion Price shall be deemed to be ten times what it had been calculated to
be immediately prior to such split; and (iii) if the Company declares a stock
dividend of one share of Common Stock for every 10 shares outstanding,
thereafter, with respect to any conversion for which the Company issues shares
after the record date of such dividend, the Conversion Price shall be deemed to
be such amount multiplied by a fraction, of which the numerator is
the number of shares (10 in the example) for which a dividend share will be
issued and the denominator is such number of shares plus the dividend share(s)
issuable or issued thereon (11 in the example). 

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4.2          In
  case of any capital reorganization or of any reclassification of the capital of
  the Company or in case of the consolidation, merger or amalgamation of the
  Company with or into any other company or of the sale of the assets of the
  Company as or substantially as an entirety or of any other company, this Note
  shall, after such capital reorganization, reclassification of capital,
  consolidation, merger, amalgamation or sale, confer the right to convert into
  that number of shares or other securities or property of the Company or of the
  company resulting from such capital reorganization, reclassification,
  consolidation, merger, amalgamation or to which such sale shall be made, as the
  case may be, to which the Holder of the shares deliverable at the time of such
  capital reorganization, reclassification of capital, consolidation, merger,
  amalgamation or sale had the Note been converted would have been entitled on
  such capital reorganization, reclassification, consolidation, merger,
  amalgamation or sale and in any such case, if necessary, appropriate adjustments
  shall be made in the application of the provisions set forth herein with respect
  to the rights and interest thereafter of the Holders of the Notes to the end
  that the provisions set forth herein shall thereafter correspondingly be made
  applicable as nearly as may reasonable be expected in relation to any shares or
  other securities or property thereafter deliverable on the exercise of the
  Warrants. The subdivision or consolidation of the shares at any time outstanding
  into a greater or lesser number of shares (whether with or without par value)
  shall not be deemed to be a capital reorganization or a reclassification of the
capital of the Company for the purposes of this Section. 

5.         
Notices 

5.1          Any
and all notices or other communications or deliveries to be provided by the
Holder hereunder, including, without limitation, any Conversion Notice, shall be
in writing, sent by a nationally recognized overnight courier service or by
electronic mail, addressed to the Company: Orgenesis Inc., Attn: Neil
Reithinger, CFO, 14201 N. Hayden Road, Suite A-1, Scottsdale, AZ 85260, Email:
neil.r@orgenesis.com or such other address as the Company may specify for such
purposes by notice to the Holder delivered in accordance with this Section 5.
The address of the Holder is: _____________________, Attention:
___________________Email: ______________________
. 

5.2          Any
and all notices or other communications or deliveries to be provided by the
Company hereunder shall be in writing and delivered personally, by facsimile,
sent by a nationally recognized overnight courier service addressed to the
Holder at the Email or street address of the Holder appearing on page 1 of this
Note (or such other address as the Holder may notify the Company of from time to
time in accordance with this Section 5), or if no such email or street address
appears, at the address of the Holder to which this Note was delivered. 

5.3          Any
notice or other communication or deliveries hereunder shall be deemed given and
effective on the earliest of (a) the date of transmission, if such notice or
communication is delivered via electronic mail at the address specified in this
Section 5 prior to 5:30 p.m. (U.S. Eastern Time), (b) the date after the date of
transmission, if such notice or communication is delivered via electronic mail
at the Email address specified in this Section 5 later than 5:30 p.m. (U.S.
Eastern Time) on any date and earlier than 11:59 p.m. (U.S. Eastern Time) on
such date, (c) the second Business Day following the date of mailing, if sent by
nationally recognized overnight courier service, or (d) upon actual receipt by
the party to whom such notice is required to be given. 


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6.         
Definitions 

For the purposes hereof, in addition to the terms defined
elsewhere in this Note, the following terms shall have the following meanings:


(a)          “Business Day”
means any day on which banking institutions in New York are open for business;
and 

(b)          “Person” means
a corporation, an association, a partnership, organization, a business, an
individual, a government or political subdivision thereof or a governmental
agency. 

(c)          “Trading Day”
means any day on which the Common Stock is traded on The Nasdaq Capital Market,
or, if The Nasdaq Capital Market is not the principal trading market for the
Common Stock, then on the principal securities exchange or securities market on
which the Common Stock is then traded. 

7.         
Replacement of Note if Lost or Destroyed 

If this Note shall be mutilated, lost, stolen or destroyed, the
Company shall execute and deliver, in exchange and substitution for and upon
cancellation of a mutilated Note, or in lieu of or in substitution for a lost,
stolen or destroyed Note, a new Note for the balance outstanding at such time
with respect to the Principal Amount, but only upon receipt of evidence of such
loss, theft or destruction of such Note, and of the ownership hereof, and
indemnity, if requested, all reasonably satisfactory to the Company. 

8.         
Governing Law 

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 New York, without regard to
the principles of conflicts of law thereof. Any dispute arising under or in
relation to this Note shall be resolved exclusively in the competent courts in
New York, and each of the parties hereby submits irrevocably to the jurisdiction
of such court. 

9.         
Waivers 

Any waiver by the Company or the Holder of a breach of any
provision of this Note shall not operate as or be construed to be a waiver of
any other breach of such provision or of any breach of any other provision of
this Note. The failure of the Company or the Holder to insist upon strict
adherence to any term of this Note on one or more occasions shall not be
considered a waiver or deprive that party of the right thereafter to insist upon
strict adherence to that term or any other term of this Note. Any waiver must be
in writing. 

10.         
Next Business Day 

Whenever any payment or other obligation hereunder shall be due
on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day. 

IN WITNESS WHEREOF, the Company has caused this Note to be duly
executed by a duly authorized officer as of the date first above indicated. 

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	ORGENESIS INC. 
	 
	By: 	 
		Authorized Signatory 
		Name: Neil Reithinger 
		Title: Chief Financial Officer




7




ANNEX A 

NOTICE OF CONVERSION FOR ORGENESIS UNITS 

The undersigned hereby irrevocably elects to convert $_______________ of the
Principal Amount of the above Note into Conversion Shares and Warrant Shares of
Orgenesis Inc., according to the terms and conditions stated therein, as of the
Conversion Date written below. 

	Conversion calculations: 	
	 	Date to Effect Conversion:
      ______________________________________
	 	 
	 	Principal Amount of Note to be Converted:
      $__________________ 
	 	 
	 	Accrued Interest to be Converted, if any:
      $______________ 
	 	 
	 	Conversion Price: $_________________ 
	 	 
	 	 
	 	 
	 	Number of Conversion Shares to be issued:
      _____________________
	 	 
	 	Number of shares of Warrants to be issued:
      ___________________
	 	 
	 	Signature:
      _______________________________________________
	 	 
	 	Name:
      __________________________________________________
	 	 
	 	Address for Delivery of Securities:
      ________________________
	 	_______________________________________________________________
	 	_______________________________________________________________
	 	 
	 	Or, if eligible: 
	 	 
	 	DWAC Instructions:
      __________________________________________
	 	 
	 	Broker No:_____________ 
	 	Account No:
_____________________


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ANNEX B 

NOTICE OF CONVERSION FOR HEMOGENYX SECURITIES 

The undersigned hereby irrevocably elects to convert $_______________ of the
Principal Amount of the above Note into Hemogenyx Securities, according to the
terms and conditions stated therein, as of the Conversion Date written below.


	Conversion calculations: 	
	 	Date to Effect Conversion:
      ____________________________________
	 	 
	 	Principal Amount of Note to be Converted:
      $__________________ 
	 	 
	 	Accrued Interest to be Converted, if any:
      $______________ 
	 	 
	 	Conversion Price: $_________________ 
	 	 
	 	 
	 	 
	 	Number of Hemogenyx Securities to be issued:
      ____________________
	 	 
	 	 
	 	 
	 	Signature:
      ______________________________________________
	 	 
	 	Name:
      _________________________________________________


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