Document:

abmc_ex1046

 

EXHIBIT
10.46

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS AGREEMENT (this
"Agreement"), dated
as of December 8, 2020, by and between AMERICAN BIO MEDICA CORPORATION, a New
York corporation (the "Company"), and LINCOLN PARK CAPITAL FUND, LLC,
an
Illinois limited liability company (together with it
permitted assigns, the “Buyer”). Capitalized
terms used herein and not otherwise defined herein shall have the
respective meanings set forth in the Purchase Agreement by and
between the parties hereto, dated as of the date hereof (as
amended, restated, supplemented or otherwise modified from time to
time, the "Purchase
Agreement").

 

WHEREAS:

 

The
Company has agreed, upon the terms and subject to the conditions of
the Purchase Agreement, to sell to the Buyer up to Ten Million Two
Hundred Fifty Dollars ($10,250,000) of Purchase Shares and to
induce the Buyer to enter into the Purchase Agreement, the Company
has agreed to provide certain registration rights under the
Securities Act of 1933, as amended, and the rules and regulations
thereunder, or any similar successor statute (collectively, the
"Securities Act"),
and applicable state securities laws.

 

NOW, THEREFORE, in consideration of the
promises and the mutual covenants contained herein and other good
and valuable consideration, the receipt and sufficiency of which
are hereby 
acknowledged, the Company and the Buyer hereby
agree as follows:

 

1.           DEFINITIONS.

 

As used
in this Agreement, the following terms shall have the following
meanings:

 

a.           "Investor"
means the Buyer, any transferee or assignee thereof to whom a Buyer
assigns its rights under this Agreement in accordance with Section
9 and who agrees to become bound by the provisions of this
Agreement, and any transferee or assignee thereof to whom a
transferee or assignee assigns its rights under this Agreement in
accordance with Section 9 and who agrees to become bound by the
provisions of this Agreement.

 

b.           "Person"
means any individual or entity including but not limited to any
corporation, a limited liability company, an association, a
partnership, an organization, a business, an individual, a
governmental or political subdivision thereof or a governmental
agency.

 

c.           "Register,"
"registered," and
"registration"
refer to a registration effected by preparing and filing one or
more registration statements of the Company in compliance with the
Securities Act and pursuant to Rule 415 under the Securities Act or
any successor rule providing for offering securities on a
continuous basis ("Rule
415"), and the declaration or ordering of effectiveness of
such registration statement(s) by the United States Securities and
Exchange Commission (the "SEC").

 

d.           "Registrable
Securities" means all of the Commitment Shares and all of
the Purchase Shares, including, without limitation, all of the
Initial Purchase Shares, that may, from time to time, be issued or
become issuable to the Investor under the Purchase Agreement
(without regard to any limitation or restriction on purchases), and
any and all shares of capital stock issued or issuable with respect
to the Purchase Shares, the Commitment Shares or the Purchase Agreement as a
result of any stock split, stock dividend, recapitalization,
exchange or similar event or otherwise, without regard to any
limitation on purchases under the Purchase Agreement.

 

 

 

1

 

 

 

 

 

e.           "Registration
Statement" means one or more registration statements of the
Company covering only the sale of the Registrable
Securities.

 

2.           REGISTRATION.

 

a.           Mandatory
Registration. The Company shall, within thirty (30) days
after the date hereof, file with the SEC an initial Registration
Statement covering the maximum number of Registrable Securities as
shall be permitted to be included thereon in accordance with
applicable SEC rules, regulations and interpretations so as to
permit the resale of such Registrable Securities by the Investor
under Rule 415 under the Securities Act at then prevailing market
prices (and not fixed prices), as mutually determined by both the
Company and the Investor in consultation with their respective
legal counsel, subject to the aggregate number of authorized shares
of the Company’s Common Stock then available for issuance in
its Certificate of Incorporation. The initial Registration
Statement shall register only the Registrable Securities. The
Investor and its counsel shall have a reasonable opportunity to
review and comment upon such Registration Statement and any
amendment or supplement to such Registration Statement and any
related prospectus prior to its filing with the SEC, and the
Company shall give due consideration to all such comments. The
Investor shall furnish all information reasonably requested by the
Company for inclusion therein. The Company shall use its best
efforts to have the Registration Statement and any amendment
declared effective by the SEC at the earliest possible date. The
Company shall use reasonable best efforts to keep the Registration
Statement effective pursuant to Rule 415 promulgated under the
Securities Act and available for the resale by the Investor of all
of the Registrable Securities covered thereby at all times until
the date on which the Investor shall have resold all the
Registrable Securities covered thereby and no Available Amount
remains under the Purchase Agreement (the "Registration Period"). The
Registration Statement (including any amendments or supplements
thereto and prospectuses contained therein) shall not contain any
untrue statement of a material fact or omit to state a material
fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances in which they
were made, not misleading.

 

b.           Rule
424 Prospectus. The Company shall, as required by applicable
securities regulations, from time to time file with the SEC,
pursuant to Rule 424 promulgated under the Securities Act, the
prospectus and prospectus supplements, if any, to be used in
connection with sales of the Registrable Securities under the
Registration Statement. The Investor and its counsel shall have a
reasonable opportunity to review and comment upon such prospectus
prior to its filing with the SEC, and the Company shall give due
consideration to all such comments. The Investor shall use its
reasonable best efforts to comment upon such prospectus within one
(1) Business Day from the date the Investor receives the final
pre-filing version of such prospectus.

 

c.           Sufficient
Number of Shares Registered. In the event the number of
shares available under the Registration Statement is insufficient
to cover all of the Registrable Securities, the Company shall amend
the Registration Statement or file a new Registration Statement (a
”New Registration
Statement”), so as to cover all of such Registrable
Securities (subject to the limitations set forth in Section 2(a))
as soon as practicable, but in any event not later than ten (10)
Business Days after the necessity therefor arises, subject to any
limits that may be imposed by the SEC pursuant to Rule 415 under
the Securities Act. The Company shall use its reasonable best
efforts to cause such amendment and/or New Registration Statement
to become effective as soon as practicable following the filing
thereof.

 

 

 

2

 

 

 

 

 

  d.
       Offering. If the staff of the
SEC (the “Staff”) or the SEC seeks
to characterize any offering pursuant to a Registration Statement
filed pursuant to this Agreement as constituting an offering of
securities that does not permit such Registration Statement to
become effective and be used for resales by the Investor under Rule
415 at then-prevailing market prices (and not fixed prices), or if
after the filing of the initial Registration Statement with the SEC
pursuant to Section 2(a), the Company is otherwise required by the
Staff or the SEC to reduce the number of Registrable Securities
included in such initial Registration Statement, then the Company
shall reduce the number of Registrable Securities to be included in
such initial Registration Statement (after consulting with the
Investor and its legal counsel as to the specific Registrable
Securities to be removed therefrom) until such time as the Staff
and the SEC shall so permit such Registration Statement to become
effective and be used as aforesaid. In the event of any reduction
in Registrable Securities pursuant to this paragraph, the Company
shall file one or more New Registration Statements in accordance
with Section 2(c) until such time as all Registrable Securities
have been included in Registration Statements that have been
declared effective and the prospectus contained therein is
available for use by the Investor. Notwithstanding any provision
herein or in the Purchase Agreement to the contrary, the
Company’s obligations to register Registrable Securities (and
any related conditions to the Investor’s obligations) shall
be qualified as necessary to comport with any requirement of the
SEC or the Staff as addressed in this Section 2(d).

 

3.           RELATED
OBLIGATIONS.

 

With
respect to the Registration Statement and whenever any Registrable
Securities are to be registered pursuant to Section 2 including on
any New Registration Statement, the Company shall use its
reasonable best efforts to effect the registration of the
Registrable Securities in accordance with the intended method of
disposition thereof and, pursuant thereto, the Company shall have
the following obligations:

 

a.           The
Company shall prepare and file with the SEC such amendments
(including post-effective amendments) and supplements to any
registration statement and the prospectus used in connection with
such registration statement, which prospectus is to be filed
pursuant to Rule 424 promulgated under the Securities Act, as may
be necessary to keep the Registration Statement or any New
Registration Statement effective at all times during the
Registration Period, and, during such period, comply with the
provisions of the Securities Act with respect to the disposition of
all Registrable Securities of the Company covered by the
Registration Statement or any New Registration Statement until such
time as all of such Registrable Securities shall have been disposed
of in accordance with the intended methods of disposition by the
seller or sellers thereof as set forth in such Registration
Statement.

 

b.           The
Company shall permit the Investor to review and comment upon the
Registration Statement or any New Registration Statement and all
amendments and supplements thereto at least two (2) Business Days
prior to their filing with the SEC, and not file any such document
in a form to which Investor reasonably objects. The Investor shall
use its reasonable best efforts to comment upon the Registration
Statement or any New Registration Statement and any amendments or
supplements thereto within two (2) Business Days from the date the
Investor receives the final version thereof. The Company shall
furnish to the Investor, without charge any correspondence from the
SEC or the staff of the SEC to the Company or its representatives
relating to the Registration Statement or any New Registration
Statement.

 

c.           Upon
request of the Investor, the Company shall furnish to the Investor,
(i) promptly after the same is prepared and filed with the SEC, at
least one copy of such registration statement and any amendment(s)
thereto, including financial statements and schedules, all
documents incorporated therein by reference and all exhibits, (ii)
upon the effectiveness of any registration statement, a copy of the
prospectus included in such registration statement and all
amendments and supplements thereto (or such other number of copies
as the Investor may reasonably request) and (iii) such other
documents, including copies of any preliminary or final prospectus,
as the Investor may reasonably request from time to time in order
to facilitate the disposition of the Registrable Securities owned
by the Investor. For the avoidance of doubt, any filing available
to the Investor via the SEC’s live EDGAR system shall be
deemed “furnished to the Investor”
hereunder.

 

 

 

3

 

 

 

 

 

d.           The
Company shall use reasonable best efforts to (i) register and
qualify the Registrable Securities covered by a registration
statement under such other securities or "blue sky" laws of such
jurisdictions in the United States as the Investor reasonably
requests, (ii) prepare and file in those jurisdictions, such
amendments (including post-effective amendments) and supplements to
such registrations and qualifications as may be necessary to
maintain the effectiveness thereof during the Registration Period,
(iii) take such other actions as may be necessary to maintain such
registrations and qualifications in effect at all times during the
Registration Period, and (iv) take all other actions reasonably
necessary or advisable to qualify the Registrable Securities for
sale in such jurisdictions; provided, however, that the Company
shall not be required in connection therewith or as a condition
thereto to (x) qualify to do business in any jurisdiction where it
would not otherwise be required to qualify but for this Section
3(d), (y) subject itself to general taxation in any such
jurisdiction, or (z) file a general consent to service of process
in any such jurisdiction. The Company shall promptly notify the
Investor who holds Registrable Securities of the receipt by the
Company of any notification with respect to the suspension of the
registration or qualification of any of the Registrable Securities
for sale under the securities or "blue sky" laws of any
jurisdiction in the United States or its receipt of actual notice
of the initiation or threatening of any proceeding for such
purpose.

 

e.           As
promptly as practicable after becoming aware of such event or
facts, the Company shall notify the Investor in writing of the
happening of any event or existence of such facts as a result of
which the prospectus included in any registration statement, as
then in effect, includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, and
promptly prepare a supplement or amendment to such registration
statement to correct such untrue statement or omission, and deliver
a copy of such supplement or amendment to the Investor (or such
other number of copies as the Investor may reasonably request). The
Company shall also promptly notify the Investor in writing (i) when
a prospectus or any prospectus supplement or post-effective
amendment has been filed, and when a registration statement or any
post-effective amendment has become effective (notification of such
effectiveness shall be delivered to the Investor by email or
facsimile on the same day of such effectiveness and by overnight
mail), (ii) of any request by the SEC for amendments or supplements
to any registration statement or related prospectus or related
information, and (iii) of the Company's reasonable determination
that a post-effective amendment to a registration statement would
be appropriate.

 

f.           The
Company shall use its reasonable best efforts to prevent the
issuance of any stop order or other suspension of effectiveness of
any registration statement, or the suspension of the qualification
of any Registrable Securities for sale in any jurisdiction and, if
such an order or suspension is issued, to obtain the withdrawal of
such order or suspension at the earliest possible moment and to
notify the Investor of the issuance of such order and the
resolution thereof or its receipt of actual notice of the
initiation or threat of any proceeding for such
purpose.

 

g.           The
Company shall (i) cause all the Registrable Securities to be listed
on each securities exchange on which securities of the same class
or series issued by the Company are then listed, if any, if the
listing of such Registrable Securities is then permitted under the
rules of such exchange, or (ii) secure designation and quotation of
all the Registrable Securities on the Principal Market. The Company
shall pay all fees and expenses in connection with satisfying its
obligation under this Section.

 

h.           The
Company shall cooperate with the Investor to facilitate the timely
preparation and delivery of certificates (not bearing any
restrictive legend) representing the Registrable Securities to be
offered pursuant to any registration statement and enable such
certificates to be in such denominations or amounts as the Investor
may reasonably request and registered in such names as the Investor
may request.

 

 

 

4

 

 

 

i.           The
Company shall at all times provide a transfer agent and registrar
with respect to its Common Stock.

 

j.           If
reasonably requested by the Investor, the Company shall (i)
immediately incorporate in a prospectus supplement or
post-effective amendment such information as the Investor believes
should be included therein relating to the sale and distribution of
Registrable Securities, including, without limitation, information
with respect to the number of Registrable Securities being sold,
the purchase price being paid therefor and any other terms of the
offering of the Registrable Securities; (ii) make all required
filings of such prospectus supplement or post-effective amendment
as soon as practicable upon notification of the matters to be
incorporated in such prospectus supplement or post-effective
amendment; and (iii) supplement or make amendments to any
Registration Statement or New Registration Statement.

 

k.           The
Company shall use its reasonable best efforts to cause the
Registrable Securities covered by any registration statement to be
registered with or approved by such other governmental agencies or
authorities as may be necessary to consummate the disposition of
such Registrable Securities.

 

l.           Within
one (1) Business Day after any registration statement which
includes the Registrable Securities is declared effective by the
SEC, the Company shall deliver, and shall cause legal counsel for
the Company to deliver, to the transfer agent for such Registrable
Securities (with copies to the Investor) confirmation that such
registration statement has been declared effective by the SEC in
the form attached hereto as Exhibit A. Thereafter, if
requested by the Buyer at any time, the Company shall require its
counsel to deliver to the Buyer a written confirmation whether or
not the effectiveness of such registration statement has lapsed at
any time for any reason (including, without limitation, the
issuance of a stop order) and whether or not the registration
statement is current and available to the Buyer for sale of all of
the Registrable Securities.

 

m.           The
Company shall take all other reasonable actions necessary to
expedite and facilitate disposition by the Investor of Registrable
Securities pursuant to any registration statement.

 

4.           OBLIGATIONS
OF THE INVESTOR.

 

a.           The
Company shall notify the Investor in writing of the information the
Company reasonably requires from the Investor in connection with
any registration statement hereunder. The Investor shall promptly
furnish to the Company such information regarding itself, the
Registrable Securities held by it and the intended method of
disposition of the Registrable Securities held by it as shall be
reasonably required to effect the registration of such Registrable
Securities and shall execute such documents in connection with such
registration as the Company may reasonably request.

 

b.           The
Investor agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and
filing of any registration statement hereunder.

 

c.           The
Investor agrees that, upon receipt of any notice from the Company
of the happening of any event or existence of facts of the kind
described in Section 3(f) or the first sentence of 3(e), the
Investor will immediately discontinue disposition of Registrable
Securities pursuant to any registration statement(s) covering such
Registrable Securities until the Investor's receipt of the copies
of the supplemented or amended prospectus contemplated by Section
3(f) or the first sentence of 3(e). Notwithstanding anything to the
contrary, the Company shall cause its transfer agent to promptly
deliver shares of Common Stock without any restrictive legend in
accordance with the terms of the Purchase Agreement in connection
with any sale of Registrable Securities with respect to which an
Investor has entered into a contract for sale prior to the
Investor's receipt of a notice from the Company of the happening of
any event of the kind described in Section 3(f) or the first
sentence of Section 3(e) and for which the Investor has not yet
settled.

 

5.           EXPENSES
OF REGISTRATION.

 

All
reasonable expenses, other than sales or brokerage commissions,
incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without
limitation, all registration, listing and qualifications fees,
printers and accounting fees, and fees and disbursements of counsel
for the Company, shall be paid by the Company.

 

 

 

5

 

 

 

 

 

6.           INDEMNIFICATION.

 

a.           To
the fullest extent permitted by law, the Company will, and hereby
does, indemnify, hold harmless and defend the Investor, each
Person, if any, who controls the Investor, the members, the
directors, officers, partners, employees, agents, representatives
of the Investor and each Person, if any, who controls the Investor
within the meaning of the Securities Act or the Securities Exchange
Act of 1934, as amended (the "Exchange Act") (each, an
"Indemnified
Person"), against any losses, claims, damages, liabilities,
judgments, fines, penalties, charges, costs, attorneys' fees,
amounts paid in settlement or expenses, joint or several,
(collectively, "Claims") incurred in
investigating, preparing or defending any action, claim, suit,
inquiry, proceeding, investigation or appeal taken from the
foregoing by or before any court or governmental, administrative or
other regulatory agency, body or the SEC, whether pending or
threatened, whether or not an indemnified party is or may be a
party thereto ("Indemnified Damages"), to which
any of them may become subject insofar as such Claims (or actions
or proceedings, whether commenced or threatened, in respect
thereof) arise out of or are based upon: (i) any untrue statement
or alleged untrue statement of a material fact in the Registration
Statement, any New Registration Statement or any post-effective
amendment thereto or in any filing made in connection with the
qualification of the offering under the securities or other "blue
sky" laws of any jurisdiction in which Registrable Securities are
offered ("Blue Sky
Filing"), or the omission or alleged omission to state a
material fact required to be stated therein or necessary to make
the statements therein not misleading, (ii) any untrue statement or
alleged untrue statement of a material fact contained in the final
prospectus (as amended or supplemented, if the Company files any
amendment thereof or supplement thereto with the SEC) or the
omission or alleged omission to state therein any material fact
necessary to make the statements made therein, in light of the
circumstances under which the statements therein were made, not
misleading, (iii) any violation or alleged violation by the Company
of the Securities Act, the Exchange Act, any other law, including,
without limitation, any state securities law, or any rule or
regulation thereunder relating to the offer or sale of the
Registrable Securities pursuant to the Registration Statement or
any New Registration Statement or (iv) any material violation by
the Company of this Agreement (the matters in the foregoing clauses
(i) through (iv) being, collectively, "Violations"). The Company shall
reimburse each Indemnified Person promptly as such expenses are
incurred and are due and payable, for any reasonable legal fees or
other reasonable expenses incurred by them in connection with
investigating or defending any such Claim. Notwithstanding anything
to the contrary contained herein, the indemnification agreement
contained in this Section 6(a): (i) shall not apply to a Claim by
an Indemnified Person arising out of or based upon a Violation
which occurs in reliance upon and in conformity with information
about the Investor furnished in writing to the Company by such
Indemnified Person expressly for use in connection with the
preparation of the Registration Statement, any New Registration
Statement or any such amendment thereof or supplement thereto, if
such prospectus was timely made available by the Company pursuant
to Section 3(c) or Section 3(e); (ii) with respect to any
superseded prospectus, shall not inure to the benefit of any such
person from whom the person asserting any such Claim purchased the
Registrable Securities that are the subject thereof (or to the
benefit of any person controlling such person) if the untrue
statement or omission of material fact contained in the superseded
prospectus was corrected in the revised prospectus, as then amended
or supplemented, if such revised prospectus was timely made
available by the Company pursuant to Section 3(c) or Section 3(e),
and the Indemnified Person was promptly advised in writing not to
use the incorrect prospectus prior to the use giving rise to a
violation and such Indemnified Person, notwithstanding such advice,
used it; (iii) shall not be available to the extent such Claim is
based on a failure of the Investor to deliver or to cause to be
delivered the prospectus made available by the Company, if such
prospectus was timely made available by the Company pursuant to
Section 3(c) or Section 3(e); and (iv) shall not apply to amounts
paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Company, which consent
shall not be unreasonably withheld. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on
behalf of the Indemnified Person and shall survive the transfer of
the Registrable Securities by the Investor pursuant to Section
9.

 

b.           In
connection with the Registration Statement or any New Registration
Statement, the Investor agrees to indemnify, hold harmless and
defend, to the same extent and in the same manner as is set forth
in Section 6(a), the Company, each of its directors, each of its
officers who signs the Registration Statement or any New
Registration Statement, each Person, if any, who controls the
Company within the meaning of the Securities Act or the Exchange
Act (collectively and together with an Indemnified Person, an
"Indemnified
Party"), against any Claim or Indemnified Damages to which
any of them may become subject, under the Securities Act, the
Exchange Act or otherwise, insofar as such Claim or Indemnified
Damages arise out of or are based upon any Violation, in each case
to the extent, and only to the extent, that such Violation occurs
in reliance upon and in conformity with written information about
the Investor set forth on Exhibit B attached hereto and
furnished to the Company by the Investor expressly for use in
connection with such registration statement; and, subject to
Section 6(d), the Investor will reimburse any legal or other
expenses reasonably incurred by them in connection with
investigating or defending any such Claim; provided, however, that
the indemnity agreement contained in this Section 6(b) and the
agreement with respect to contribution contained in Section 7 shall
not apply to amounts paid in settlement of any Claim if such
settlement is effected without the prior written consent of the
Investor, which consent shall not be unreasonably withheld;
provided, further, however, that the Investor shall be liable under
this Section 6(b) for only that amount of a Claim or Indemnified
Damages as does not exceed the net proceeds to the Investor as a
result of the sale of Registrable Securities pursuant to such
registration statement. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of
such Indemnified Party and shall survive the transfer of the
Registrable Securities by the Investor pursuant to Section
9.

 

 

 

6

 

 

 

 

 

c.           Promptly
after receipt by an Indemnified Person or Indemnified Party under
this Section 6 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding)
involving a Claim, such Indemnified Person or Indemnified Party
shall, if a Claim in respect thereof is to be made against any
indemnifying party under this Section 6, deliver to the
indemnifying party a written notice of the commencement thereof,
and the indemnifying party shall have the right to participate in,
and, to the extent the indemnifying party so desires, jointly with
any other indemnifying party similarly noticed, to assume control
of the defense thereof with counsel mutually satisfactory to the
indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified
Person or Indemnified Party shall have the right to retain its own
counsel with the fees and expenses to be paid by the indemnifying
party, if, in the reasonable opinion of counsel retained by the
indemnifying party, the representation by such counsel of the
Indemnified Person or Indemnified Party and the indemnifying party
would be inappropriate due to actual or potential differing
interests between such Indemnified Person or Indemnified Party and
any other party represented by such counsel in such proceeding. The
Indemnified Party or Indemnified Person shall cooperate fully with
the indemnifying party in connection with any negotiation or
defense of any such action or claim by the indemnifying party and
shall furnish to the indemnifying party all information reasonably
available to the Indemnified Party or Indemnified Person which
relates to such action or claim. The indemnifying party shall keep
the Indemnified Party or Indemnified Person fully apprised at all
times as to the status of the defense or any settlement
negotiations with respect thereto. No indemnifying party shall be
liable for any settlement of any action, claim or proceeding
effected without its written consent, provided, however, that the
indemnifying party shall not unreasonably withhold, delay or
condition its consent. No indemnifying party shall, without the
consent of the Indemnified Party or Indemnified Person, consent to
entry of any judgment or enter into any settlement or other
compromise which does not include as an unconditional term thereof
the giving by the claimant or plaintiff to such Indemnified Party
or Indemnified Person of a release from all liability in respect to
such claim or litigation. Following indemnification as provided for
hereunder, the indemnifying party shall be subrogated to all rights
of the Indemnified Party or Indemnified Person with respect to all
third parties, firms or corporations relating to the matter for
which indemnification has been made. The failure to deliver written
notice to the indemnifying party within a reasonable time of the
commencement of any such action shall not relieve such indemnifying
party of any liability to the Indemnified Person or Indemnified
Party under this Section 6, except to the extent that the
indemnifying party is prejudiced in its ability to defend such
action.

 

d.           The
indemnification required by this Section 6 shall be made by
periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or
Indemnified Damages are incurred.

 

e.           The
indemnity agreements contained herein shall be in addition to (i)
any cause of action or similar right of the Indemnified Party or
Indemnified Person against the indemnifying party or others, and
(ii) any liabilities the indemnifying party may be subject to
pursuant to the law.

 

7.           CONTRIBUTION.

 

To the
extent any indemnification by an indemnifying party is prohibited
or limited by law, the indemnifying party agrees to make the
maximum contribution with respect to any amounts for which it would
otherwise be liable under Section 6 to the fullest extent permitted
by law; provided, however, that: (i) no seller of Registrable
Securities guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled
to contribution from any seller of Registrable Securities who was
not guilty of fraudulent misrepresentation; and (ii) contribution
by any seller of Registrable Securities shall be limited in amount
to the net amount of proceeds received by such seller from the sale
of such Registrable Securities.

 

8.           REPORTS
AND DISCLOSURE UNDER THE SECURITIES ACT.

 

With a
view to making available to the Investor the benefits of Rule 144
promulgated under the Securities Act or any other similar rule or
regulation of the SEC that may at any time permit the Investor to
sell securities of the Company to the public without registration
("Rule 144"), the
Company agrees, at the Company’s sole expense,
to:

 

a.           make
and keep public information available, as those terms are
understood and defined in Rule 144;

 

b.       
file with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the
Exchange Act so long as the Company remains subject to such
requirements and the filing of such reports and other documents is
required for the applicable provisions of Rule 144;

 

 

 

7

 

 

 

 

 

c.       
furnish to the Investor so long as the Investor owns Registrable
Securities, promptly upon request, (i) a written statement by the
Company that it has complied with the reporting and or disclosure
provisions of Rule 144, the Securities Act and the Exchange Act,
(ii) a copy of the most recent annual or quarterly report of the
Company and such other reports and documents so filed by the
Company, and (iii) such other information as may be reasonably
requested to permit the Investor to sell such securities pursuant
to Rule 144 without registration; and

 

d.        
take such additional action as is requested by the Investor to
enable the Investor to sell the Registrable Securities pursuant to
Rule 144, including, without limitation, delivering all such legal
opinions, consents, certificates, resolutions and instructions to
the Company’s Transfer Agent as may be requested from time to
time by the Investor and otherwise fully cooperate with Investor
and Investor’s broker to effect such sale of securities
pursuant to Rule 144.

 

The
Company agrees that damages may be an inadequate remedy for any
breach of the terms and provisions of this Section 8 and that
Investor shall, whether or not it is pursuing any remedies at law,
be entitled to equitable relief in the form of a preliminary or
permanent injunctions, without having to post any bond or other
security, upon any breach or threatened breach of any such terms or
provisions.

 

9.

ASSIGNMENT OF REGISTRATION
RIGHTS.

 

The
Company shall not assign this Agreement or any rights or
obligations hereunder without the prior written consent of the
Investor. The Investor may not assign its rights under this
Agreement without the written consent of the Company, other than to
an affiliate of the Investor controlled by Jonathan Cope or Josh
Scheinfeld.

 

10.           AMENDMENT
OF REGISTRATION RIGHTS.

 

No
provision of this Agreement may be amended or waived by the parties
from and after the date that is one Business Day immediately
preceding the initial filing of the Registration Statement with the
SEC. Subject to the immediately preceding sentence, no provision of
this Agreement may be (i) amended other than by a written
instrument signed by both parties hereto or (ii) waived other than
in a written instrument signed by the party against whom
enforcement of such waiver is sought. Failure of any party to
exercise any right or remedy under this Agreement or otherwise, or
delay by a party in exercising such right or remedy, shall not
operate as a waiver thereof.

 

11.           MISCELLANEOUS.

 

a.           A
Person is deemed to be a holder of Registrable Securities whenever
such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions,
notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis
of instructions, notice or election received from the registered
owner of such Registrable Securities.

 

b.           Any
notices, consents, waivers or other communications required or
permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (i) upon
receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile or email (provided confirmation of transmission is
mechanically or electronically generated and kept on file by the
sending party); or (iii) one (1) Business Day after deposit with a
nationally recognized overnight delivery service, in each case
properly addressed to the party to receive the same. The addresses,
email addresses and facsimile numbers for such communications shall
be:

 

 

 

8

 

 

 

If to
the Company:

 

American Bio Medica
Corporation

122
Smith Road

Kinderhook, NY
12106

Telephone: 
(518) 758-8158

E-mail:      
mdwaterhouse@abmc.com

Attention:  
Melissa A. Waterhouse

 

With a
copy to (which shall not constitute notice or service of
process):

Olshan
Frome Wolosky LLP

1325
Avenue of the Americas

New
York, NY 10019

Telephone:  (212) 451-2234

Facsimile:   (212) 451-2222

Email:        
sfeldman@olshanlaw.com

Attention:  
Spencer G. Feldman, Esq.

 

If to
the Investor:

Lincoln
Park Capital Fund, LLC

440
North Wells, Suite 410

Chicago, IL
60654

Telephone:  
312-822-9300

Facsimile:   
312-822-9301

E-mail:        
jscheinfeld@lpcfunds.com/jcope@lpcfunds.com

Attention:   
Josh Scheinfeld/Jonathan Cope

 

With a
copy to (which shall not constitute notice or service of
process):

Dorsey
& Whitney LLP

51 West
52nd
Street

New
York, NY 10019

Telephone:  
(212) 415-9214

Facsimile:   
(212) 953-7201

E-mail:        
marsico.anthony@dorsey.com

Attention:   
Anthony J. Marsico, Esq.

 

or at
such other address and/or facsimile number and/or to the attention
of such other person as the recipient party has specified by
written notice given to each other party three (3) Business Days
prior to the effectiveness of such change. Written confirmation of
receipt (A) given by the recipient of such notice, consent, waiver
or other communication, (B) mechanically or electronically
generated by the sender's facsimile machine or email account
containing the time, date, recipient facsimile number or email
address, as applicable, and an image of the first page of such
transmission or (C) provided by a nationally recognized overnight
delivery service, shall be rebuttable evidence of personal service,
receipt by facsimile or receipt from a nationally recognized
overnight delivery service in accordance with clause (i), (ii) or
(iii) above, respectively.

 

 

 

9

 

 

 

 

 

c.           The
corporate laws of the State of New York shall govern all issues
concerning the relative rights of the Company and its stockholders.
All other questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed
by the internal laws of the State of Illinois, without giving
effect to any choice of law or conflict of law provision or rule
(whether of the State of Illinois or any other jurisdictions) that
would cause the application of the laws of any jurisdictions other
than the State of Illinois. Each party hereby irrevocably submits
to the exclusive jurisdiction of the state and federal courts
sitting the State of Illinois, County of Cook, for the adjudication
of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, 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, that such suit, action or
proceeding is brought in an inconvenient forum or that the venue of
such suit, action or proceeding is improper. 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 to such party at the address for such
notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law. If
any provision of this Agreement shall be invalid or unenforceable
in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this
Agreement in that jurisdiction or the validity or enforceability of
any provision of this Agreement in any other jurisdiction.
EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY.

 

d.           This
Agreement and the Purchase Agreement constitute the entire
agreement among the parties hereto with respect to the subject
matter hereof and thereof. There are no restrictions, promises,
warranties or undertakings among the parties hereto, other than
those set forth or referred to herein and therein. This Agreement
and the Purchase Agreement supersede all prior agreements and
understandings among the parties hereto with respect to the subject
matter hereof and thereof.

 

e.           Subject
to the requirements of Section 9, this Agreement shall inure to the
benefit of and be binding upon the successors and permitted assigns
of each of the parties hereto, and is not for the benefit of, nor
may any provision hereof be enforced by, any other
Person.

 

f.           The
headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning
hereof.

 

g.           This
Agreement may be executed in identical counterparts, each of which
shall be deemed an original but all of which shall constitute one
and the same agreement. This Agreement, once executed by a party,
may be delivered to the other party hereto by facsimile
transmission or by e-mail in a “.pdf” format data file
of a copy of this Agreement bearing the signature of the party so
delivering this Agreement.

 

h.           Each
party shall do and perform, or cause to be done and performed, all
such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as
the other party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.

 

i.           The
language used in this Agreement will be deemed to be the language
chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any
party.

 

 

*
* * * * *

 

 

10

 

 

 

IN WITNESS WHEREOF, the parties have
caused this Registration Rights Agreement to be duly executed as of
day and year first above written.

 

 

 

THE COMPANY:

 

AMERICAN
BIO MEDICA CORPORATION

 

By:__/s/ Melissa A.
Waterhouse_________

Name:
Melissa A. Waterhouse

Title:
Chief Executive Officer

 

 

 

BUYER:

 

LINCOLN
PARK CAPITAL FUND, LLC
                                         

BY:
LINCOLN PARK CAPITAL, LLC

BY:
ALEX NOAH INVESTORS, INC.

 

 

By:__/s/ Jonathan
Cope_____________

Name:
Jonathan Cope

Title:
President

 

 

11Exhibit
4.4

 

UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY AND ANY SECURITY ISSUED ON CONVERSION HEREOF MUST NOT TRADE
THE SECURITY BEFORE MARCH 17, 2021.

 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “U.S. SECURITIES ACT”) OR U.S. STATE SECURITIES LAWS. THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO BRIACELL THERAPEUTICS CORP. (THE “CORPORATION”), (B) OUTSIDE THE
UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL
LAWS AND REGULATIONS, (C) IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT PROVIDED
BY (I) RULE 144 THEREUNDER IF AVAILABLE OR (II) RULE 144A THEREUNDER, IF AVAILABLE, AND IN EACH CASE IN ACCORDANCE WITH APPLICABLE
U.S. STATE SECURITIES LAWS, (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY
APPLICABLE STATE SECURITIES LAWS, OR (E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT, PROVIDED
THAT, IN THE CASE OF TRANSFERS PURSUANT TO (C)(I) OR (D) ABOVE, THE HOLDER HAS, PRIOR TO SUCH TRANSFER, FURNISHED TO THE CORPORATION
AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION. DELIVERY OF THIS
CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

 

BRIACELL
THERAPEUTICS CORP. 

 

UNSECURED
CONVERTIBLE DEBENTURE

 

	PRINCIPAL
                                         AMOUNT: $375,000

        PURCHASE
        PRICE: $265,000
	Date:
    November 16, 2020

 

	1.	Promise
                                         to Pay FOR VALUE RECEIVED, the undersigned, BriaCell Therapeutics Corp. (the
                                         “Corporation”) hereby acknowledges itself indebted and promises to
                                         pay to or to the order of Evergreen Capital Management LLC, 156 W Saddle River Road,
                                         Saddle River, NJ 07458 (herein referred to as the the “Debentureholder”),
                                         the principal amount of $375,000 (the “Principal Amount”), such Principal
                                         Amount having a purchase price of $265,000 after being reduced by an original issuance
                                         discount equal to approximately 29.33%, in lawful money of Canada, at the foregoing address
                                         of the Debentureholder, or at such other place, places and/or person as the Debentureholder
                                         may direct by notice in writing to the Corporation, and to pay interest in the amount
                                         of 5% per annum to the Debentureholder on the Principal Amount outstanding from time
                                         to time, and perform all other Obligations (as hereafter defined), subject to the terms
                                         and conditions contained herein.

 

    	 	 	 

    	 	 	 

    

 

	2.	Definitions
                                         and Interpretation

 

	2.1	As
                                         used herein, the following terms shall have the following respective meanings, unless
                                         the context otherwise requires:

 

“Affiliate”
has the meaning ascribed to such term in the Business Corporations Act (Ontario), as in effect on the date of this Debenture.

 

“Business
Day” means any day except Saturday, Sunday or any other day on which the principal chartered banks in the City of Toronto,
Ontario, Canada are not open for business.

 

“Common
Share Reorganization” shall have the meaning ascribed to such term in Section 7.

 

“Common
Shares” means fully-paid and non-assessable common shares in the capital of the Corporation as constituted on the date
hereof, and after the date hereof any other shares, other securities, money or property which the Debentureholder is entitled
to receive in respect or substitution thereof upon conversion of this Debenture pursuant to Section 6.

 

“Conversion
Date” means the date on which the Debenture is received by the Corporation for conversion in accordance with the terms
and conditions in Section 6.

 

“Conversion
Price” means, subject to adjustment as provided in Section 7, $5.42 per Common Share.

 

“Corporation”
means BriaCell Therapeutics Corp., a corporation incorporated under the laws of the Province of British Columbia and includes
any successor to or of the Corporation which shall have complied with the provisions of Section 14.

 

“Credit
Documents” means, collectively, the Debentures and all certificates, notices, agreements and other documents delivered
to the Debentureholder, or entered into by the Debentureholder pursuant to or in connection with the Debentures;

 

“CSE”
means the Canadian Securities Exchange.

 

“Current
Market Price” shall have the meaning ascribed to the term in Section 7.1(d).

 

“Debenture”
means this unsecured convertible debenture as it may be amended, supplemented or restated from time to time and “Debentures”
means the aggregate of up to $375,000 in principal amount of Debentures (inclusive of an original discount equal to approximately
29.33%, and for greater certainty, including this Debenture) issued pursuant to the Offering.

 

“Debentureholder”
shall have the meaning ascribed to such term in the introductory paragraph hereto.

 

    	 	 	2.

    	 	 	 

    

 

“Dividends
Paid in the Ordinary Course” means cash dividends declared payable on the Common Shares in any fiscal year of the Corporation
to the extent that such cash dividends do not exceed, in the aggregate, an amount greater than:

 

		(a)	fifty
                                         (50%) percent of the retained earnings of the Corporation as at the end of its immediately
                                         preceding fiscal year; and

 

		(b)	one
                                         hundred (100%) percent of the aggregate consolidated net income of the Corporation, determined
                                         before computation of extraordinary items, for its immediately preceding fiscal year;

 

“Encumbrance”
means any mortgage, charge, pledge, hypothecation, lien, assignment, lease intended as security, conditional sale agreement or
other title retention arrangement, security interest or other encumbrance of any nature creating in favour of any Person a right
or interest in respect of real or personal property that is prior to the right of any other creditor or claimant in respect of
such property;

 

“Event
of Default” shall have the meaning ascribed to such term in Section 8.2.

 

“Expiration
Time” means 5:00 pm (Toronto time) on the Maturity Date.

 

“Indebtedness”
means, at any time and from time to time, all of the Principal Amount, any accrued and unpaid interest and any other amount owing
pursuant to this Debenture, including any Prepayment Penalty and/or Default Penalty, in each case which has not been paid to the
Debentureholder by the Corporation.

 

“Interest
Rate” shall have the meaning ascribed to such term in Section 4.1.

 

“Maturity
Date” means the earlier of (i) November 16, 2025, (ii) the date the Corporation completes a Qualified Financing, or
(iii) such earlier date as the principal amount hereof may become due, subject to and in accordance with the terms, conditions
and provisions hereof, subject to extension upon mutual agreement of the parties.

 

“Material
Adverse Change” means a material adverse effect on (i) the ability of the Corporation to pay its obligations hereunder
as and when due; (ii) the business, operation, prospects, assets or condition, financial or otherwise, of the Corporation or any
Subsidiary; or (iii) the ability of the Corporation or any Subsidiary to perform any other material obligations to the Debentureholder
under this Debenture or any other present or future agreements in respect of the property and assets of the Corporation.

 

“Obligations”
means all Indebtedness, liability and other obligations of the Corporation hereunder or under the Subscription Agreement and any
other agreement between the Corporation and the Debentureholder.

 

“Offered
Securities” any equity or voting securities, or securities convertible into or exchangeable for equity or voting securities,
of the Corporation;

 

“Offering”
means the private placement offering of $365,000 in aggregate principal amount of Debentures by the Corporation pursuant to a
subscription agreement entered into between the Corporation and the Debentureholder;

 

    	 	 	3.

    	 	 	 

    

 

“Person”
includes an individual, a trust, a partnership, a body corporate or politic, a syndicate, a joint venture, a company, an association
and any other form of incorporated or unincorporated organization or entity.

 

“Principal
Amount” has the meaning ascribed thereto in Section 1.

 

“Qualified
Financing” means the sale by the Corporation of $2,000,000 or more of Offered Securities in the aggregate, in one or
more closings or tranches.

 

“Recognized
Exchange” means the New York Stock Exchange, the NASDAQ Capital Market, the NASDAQ Global Select Market, the NASDAQ
Global Market, the CSE, the TSX Venture Exchange or the Toronto Stock Exchange.

 

“Rights
Offering” shall have the meaning ascribed to such term in Section 7.

 

“Securities
Laws” means, collectively, the applicable securities laws of the relevant jurisdictions, the regulations, rules, rulings
and orders made thereunder, the applicable policy statements issued by the securities regulators thereunder, the securities legislation
and policies of each other relevant jurisdiction and the rules of the relevant stock exchange, in each case in effect from time
to time.

 

“Special
Distribution” shall have the meaning ascribed to such term in Section 7.

 

“Subscription
Agreement” means a Subscription Agreement of even date between the Corporation and the Debentureholder providing for
the issuance of the Debenture of the Corporation, as it may be amended, supplemented or restated
from time to time.

 

“Subsidiary”
means a business entity which is controlled, directly or indirectly by another business entity (as used herein “business
entity” includes a corporation, company, partnership, limited partnership, trust or joint venture).

 

“Warrants”
means the Common Share purchase warrants issued by the Corporation to the Debentureholder on or about the date hereof.

 

	2.2	Interpretation

 

Words
importing the singular only shall include the plural and vice versa, words importing the masculine gender shall include the feminine
gender and words importing persons shall include firms and corporations and vice versa.

 

	2.3	Headings

 

The
division of this Debenture into Articles and Sections and the use of headings are for convenience of reference only and shall
not affect the construction or interpretation of this Debenture.

 

	2.4	Time
                                         of Essence

 

Time
is of the essence of this Debenture.

 

    	 	 	4.

    	 	 	 

    

 

	2.5	Currency

 

Unless
otherwise specified, all dollar amounts in this Debenture, including the symbol “$”, refer to Canadian currency.

 

	2.6	Business
                                         Day

 

If
the date upon which any amount is payable by the Corporation, or upon which any other action is required to be taken by the Corporation
hereunder, is not a Business Day, then such amount shall be payable or such other action shall be taken on or by the next succeeding
Business Day.

 

	3.	Payment

 

		(a)	Unless
                                         the Indebtedness is redeemed or converted in accordance with this Debenture, the Corporation
                                         shall pay to the Debentureholder the Indebtedness on the Maturity Date.

 

		(b)	Upon
                                         the Principal Amount and interest (including interest on amounts in default, if any)
                                         on this Debenture and all other money payable hereunder having been paid or satisfied,
                                         the Debentureholder shall, at the request of the Corporation, release and discharge this
                                         Debenture. Upon such request, the Debentureholder shall execute and deliver such instruments
                                         as it shall be advised by the Corporation’s counsel are requisite to release the
                                         Corporation from its covenants herein contained.

 

	4.	Interest

 

	4.1	The
                                         Principal Amount and any penalties, including the Prepayment Penalty (as defined herein)
                                         and the Default Penalty (as defined herein) outstanding shall bear interest at a rate
                                         of 5% (subject to Section 4.2) per annum (the “Interest Rate”), calculated
                                         and payable, in cash, not in advance, accrued from the date hereof and payable on the
                                         Maturity Date.

 

	4.2	Upon
                                         an Event of Default, the Interest Rate shall increase to 12% per annum from the date
                                         of the Event of Default until the date such Event of Default is cured.

 

	4.3	Notwithstanding
                                         the foregoing provisions of this Section 4, or anything contained herein, or in any document
                                         entered into in connection herewith to the contrary, in the event that any provision
                                         of this Debenture or any document entered into in connection herewith would oblige the
                                         Corporation to make any payment of interest or other amount payable to the Purchaser
                                         in an amount or calculated at a rate which would be prohibited by any Applicable Law
                                         or would result in the receipt by the Purchaser of interest at a criminal or prohibited
                                         rate (as such terms are construed under the Criminal Code (Canada) or any other
                                         Applicable Law), then notwithstanding such provision, such amount or rate shall be deemed
                                         to have been adjusted with the same effect as if adjusted at the original date of this
                                         Debenture to the maximum amount or rate of interest, as the case may be, as would not
                                         be so prohibited by any Applicable Law or so result in the receipt by the Purchaser of
                                         interest at a criminal or prohibited.

 

    	 	 	5.

    	 	 	 

    

 

		5.	Redemption
                                         by the Corporation

 

	5.1	Subject
                                         to Section 6, the Corporation may, at its option, subject to providing not less than
                                         30 days prior written notice to the Debentureholder, prepay any amount of the Principal
                                         Amount of the Debenture during the 120 period following the date of this Debenture, without
                                         penalty (“Redemption”). After 120 days following the date of this
                                         Debenture, and only if the Corporation elects to prepay the Debenture prior to November
                                         16, 2021 the Corporation is required to pay a prepayment penalty equal to 35% of the
                                         Principal Amount of the Debenture (the “Prepayment Penalty”). For
                                         greater certainty, the Prepayment Penalty shall only be satisfied by the Corporation
                                         in cash and the Corporation shall not under any circumstances satisfy the Prepayment
                                         Penalty with the issuance of Common Shares.

 

	6.	Conversion
                                         by the Debentureholder

 

	6.1	Subject
                                         to the provisions of this Debenture, including Section 5.1 and Section 8.3 of this Debenture
                                         and any regulatory approval, the Debentureholder shall have the right, at the option
                                         of the Debentureholder during the period beginning on May 16, 2021, to
                                         the close of business on the Business Day before the Maturity Date, and the Business
                                         Day preceding the date fixed for Redemption
                                         (the “Conversion Date”), to elect to convert a part, or all,
                                         of the Indebtedness then outstanding into Common Shares at the Conversion Price, subject
                                         to adjustment in certain events as described in Section 7 (“Conversion Right”).

 

	6.2	In
                                         no event shall the Conversion Right of this Debenture exceed five (5) years following
                                         the date hereof.

 

	6.3	Fractional
                                         Common Shares will not be issued on any conversion and if any fractional Common Shares
                                         would be delivered upon conversion of any amount hereunder, the number of Common Shares
                                         to be issued shall be rounded down to the nearest whole Common Share. If the Debentureholder
                                         desires to convert the Indebtedness, subject to Section 5.1 and Section 8.3 of this Debenture,
                                         it shall send to the Corporation prior to the date on which the Indebtedness is to be
                                         converted into Common Shares (the “Exercise Date”) a notice, in the
                                         form of Schedule “A” (the “Conversion Notice”), of the
                                         conversion specifying the Exercise Date and the number of Common Shares to be issued
                                         upon conversion. On the Exercise Date, the Debentureholder shall be entered in the books
                                         of the Corporation as the holder of the number of Common Shares resulting from the conversion
                                         and shall be treated for all purposes (including the right to receive dividends) as the
                                         holder of record of such Common Shares which shall be deemed outstanding as fully paid
                                         and non-assessable. The Corporation must maintain at all times sufficient authorized
                                         but unissued Common Shares solely for the purpose of issue upon exercise of the Conversion
                                         Right in accordance with the terms hereof, and conditionally allot to the Debentureholder,
                                         such number of Common Shares as shall then be issuable upon the conversion of any portion
                                         of the Indebtedness, subject to Section 5.1 and Section 8.3 of this Debenture, and the
                                         Corporation covenants with the Debentureholder that all Common Shares which shall be
                                         so issuable pursuant to the Conversion Right shall be duly and validly issued as fully
                                         paid and non-assessable.

 

    	 	 	6.

    	 	 	 

    

 

	6.4	If
                                         the Debentureholder sends a Conversion Notice, the Debentureholder must thereafter surrender
                                         this Debenture to the Corporation in exchange for Common Share certificates (the “Share
                                         Certificates”) of Corporation in the name of Debentureholder evidencing the
                                         ownership of that number of Common Shares specified in the Conversion Notice. As soon
                                         as practicable after the surrender of this Debenture by the Debentureholder to the Corporation
                                         (but in no event prior to the Exercise Date), the Corporation shall deliver or arrange
                                         for the delivery of the Share Certificates (or a DRS Advice in lieu of the Share Certificates)
                                         to the Debentureholder. In the event of the conversion of this Debenture in part, the
                                         Corporation shall, without charge, forthwith execute and deliver to the Debentureholder
                                         a new debenture in a principal amount equal to the unconverted part of this Debenture
                                         so surrendered in the same form as this Debenture, except as to Principal Amount.

 

	6.5	If
                                         the Debentureholder fails to surrender this Debenture within five (5) days from the Exercise
                                         Date, the Share Certificates will be set aside in trust for the Debentureholder and such
                                         setting aside shall for all purposes be deemed to satisfy the Corporation’s obligations
                                         to the Debentureholder pursuant to this Section 6 and the Debentureholder shall have
                                         no right, except upon surrender of this Debenture to the Corporation, to receive the
                                         Share Certificates.

 

	6.6	The
                                         Corporation shall deliver the Share Certificate as soon as reasonably possible, but not
                                         later than three (3) Business Days following the receipt of the original Debenture from
                                         the Debentureholder.

 

	7.	Adjustment
                                         of Conversion Price

 

	7.1	The
                                         Conversion Price in effect at any date shall be subject to adjustment from time to time
                                         as follows:

 

		(a)	If
                                         and whenever at any time after the date hereof and prior to the Expiration Time the Corporation
                                         shall:

 

		(i)	issue
                                         Common Shares or securities exchangeable for or convertible into Common Shares to all
                                         or substantially all of the Corporation’s shareholders as a stock dividend or make
                                         a distribution on its outstanding Common Shares (other than as Dividends Paid in the
                                         Ordinary Course);

 

		(ii)	subdivide
                                         or redivide its outstanding Common Shares into a greater number of Common Shares; or

 

		(iii)	consolidate,
                                         reduce or combine its outstanding Common Shares into a smaller number of Common Shares;

 

(each
of the events enumerated in the clauses (i), (ii) and (iii), above, being hereinafter referred to as a “Common Share
Reorganization”), the Conversion Price shall be adjusted effective immediately after the record date or effective date,
as the case may be, which is used to determine the holders of outstanding Common Shares for the happening of a Common Share Reorganization,
by multiplying the Conversion Price in effect immediately prior to such record date or effective date by a fraction, the numerator
of which shall be the number of Common Shares outstanding on such record date or effective date, as the case may be, before giving
effect to such Common Shares Reorganization, and the denominator of which shall be the number of Common Shares outstanding as
of the effective date or record date, as the case may be, after giving effect to such Common Share Reorganization (including,
in the case where securities exchangeable for or convertible into Common Shares are distributed, the number of Common Shares that
would have been outstanding had such securities been fully exchanged or exercised for or converted into Common Shares on such
record date or effective date, as the case may be).

 

    	 	 	7.

    	 	 	 

    

 

		(b)	If
                                         and whenever at any time after the date hereof and prior to the Expiration Time, the
                                         Corporation shall fix a record date for the issuance of rights, options or warrants to
                                         all or substantially all of the holders of the outstanding Common Shares with respect
                                         to the payment of dividends or the return of capital, including the Common Shares pursuant
                                         to which such shareholders are entitled, directly or indirectly, during a period expiring
                                         not less than 21 days and not more than 90 days after such record date (the “Rights
                                         Period”), to subscribe for or purchase Common Shares at a price per share to
                                         the holder of less than 95% of the Current Market Price on such record date or to subscribe
                                         for or purchase securities (in this paragraph (b) referred to as “Exchangeable
                                         Securities”) exchangeable or exercisable for or convertible into Common Shares
                                         at an effective subscription price per Common Shares (giving effect to the terms of such
                                         subscription or purchase and of such exchange or conversion privilege) of less than 95%
                                         of the Current Market Price on such record date (any of such events being hereinafter
                                         called a “Rights Offering”), then the Conversion Price shall be adjusted
                                         effective immediately after the end of the Rights Period to a price determined by multiplying
                                         the Conversion Price in effect immediately prior to the end of the Rights Period by a
                                         fraction:

 

		(i)	the
                                         numerator of which shall be the aggregate of:

 

		(A)	the
                                         number of Common Shares outstanding as of the record date for the Rights Offering, and

 

		(B)	a
                                         number determined by dividing: (I) either (1) the product of the number of Common Shares
                                         issued or subscribed for during the Rights Period and the price per share at which such
                                         Common Shares are acquired; or, as the case may be, (2) the product of the exchange,
                                         exercise or conversion price of the Exchangeable Securities and the maximum number of
                                         Common Shares for or into which such Exchangeable Securities distributed under the Rights
                                         Offering may be exchanged, exercised or converted; by (II) the Current Market Price as
                                         of the record date for the Rights Offering; and

 

		(ii)	the
                                         denominator of which shall be the number of Common Shares outstanding immediately after
                                         the end of the Rights Period (after giving effect to the Rights Offering, including the
                                         number of Common Shares actually issued or subscribed for during the Rights Period upon
                                         exercise of the rights, warrants or options distributed under the Rights Offering and
                                         the number of Common Shares that would have been issued had all Exchangeable Securities
                                         been exchanged or exercised for or converted into Common Shares).

 

    	 	 	8.

    	 	 	 

    

 

For
the purposes of any computation made in accordance with this subsection 7.1(b), Common Shares owned legally or beneficially by
the Corporation or a subsidiary or any other affiliate (as such terms are defined in the Securities Act (Ontario)) of the
Corporation shall be disregarded. To the extent that any adjustment in the Conversion Price occurs pursuant to this subsection
7.1(b) as a result of the fixing by the Corporation of a record date for the issue or distribution of rights, options or warrants
referred to in this subsection 7.1(b), the Conversion Price shall be readjusted immediately after the expiry of any relevant exchange,
conversion or exercise right to the Conversion Price which would then be in effect based upon the number of Common Shares actually
issued and remaining issuable after such expiry and shall be further readjusted in such manner upon the expiry of any further
such right.

 

		(c)	If
                                         and whenever at any time after the date hereof and prior to the Expiration Time the Corporation
                                         shall fix a record date for the issue or the distribution to all or substantially all
                                         of the holders of one or more classes of outstanding Common Shares of: (i) shares of
                                         any class other than Common Shares; (ii) rights, options or warrants to acquire Common
                                         Shares or securities exchangeable for or convertible into Common Shares (excluding those
                                         referred to in Section 7.1(b)); (iii) evidences of the Corporation’s indebtedness;
                                         or (iv) any property or other assets (including cash), and if such issuance or distribution
                                         does not constitute Dividends Paid in the Ordinary Course, a Common Share Reorganization
                                         or a Rights Offering (any of such non-excluded events being herein called a “Special
                                         Distribution”), the Conversion Price shall, subject to the prior written approval
                                         of any stock exchange or over-the-counter market on which the Common Shares are then
                                         listed or quoted for trading, if required, be adjusted effective immediately after such
                                         record date to a price determined by multiplying the Conversion Price in effect on such
                                         record date by a fraction:

 

		(i)	the
                                         numerator of which shall be:

 

		(A)	the
                                         product obtained when the number of Common Shares outstanding on such record date is
                                         multiplied by the Current Market Price on such record date; less

 

		(B)	the
                                         excess, if any, of (1) the fair market value, as determined by action by the directors
                                         of the Corporation (whose determination shall be conclusive), which action shall be subject
                                         to the prior written approval of any stock exchange or over-the-counter market on which
                                         the Common Shares are then listed or quoted for trading, if required, to the holders
                                         of the Common Shares of the shares, rights, options, warrants, evidences of indebtedness
                                         or property or other assets issued or distributed in the Special Distribution, over (2)
                                         the fair market value of any consideration received therefore by the Corporation from
                                         the holders of the Common Shares, as determined by action by the directors of the Corporation
                                         (whose determination shall be conclusive); and

 

    	 	 	9.

    	 	 	 

    

 

		(ii)	the
                                         denominator of which shall be the product obtained when the number of Common Shares outstanding
                                         on such record date is multiplied by the Current Market Price on such record date.

 

To
the extent that such distribution is not so made, the Conversion Price shall be readjusted to the Conversion Price which would
then be in effect if such record date had not been fixed or to the Conversion Price which would then be in effect based upon such
shares or rights, options or warrants or evidences of indebtedness or assets actually distributed.

 

For
the purposes of any computation made in accordance with this subsection 7.1(c), Common Shares owned legally or beneficially by
the Corporation or a subsidiary or any other affiliate (as such terms are defined in the Securities Act (Ontario)) of the
Corporation shall be disregarded.

 

		(d)	For
                                         the purpose of any computation under this Debenture, the “Current Market Price”
                                         in respect of a Common Share at any date means the volume weighted average price per
                                         share for the 10 consecutive trading days ending not more than three business days before
                                         such date when the securities are listed on the facilities of the TSX Venture Exchange,
                                         or if the Common Shares are not then listed on the TSX Venture Exchange, on such other
                                         stock exchange on which the Common Shares trade as may be selected by the directors of
                                         the Corporation for such purpose; the volume weighted average price shall be determined
                                         by dividing the aggregate of the sale prices of all such shares sold on such exchange,
                                         during such 10 consecutive trading days by the total number of such shares so sold; or
                                         if:

 

		(i)	the
                                         Common Shares are not listed upon a nationally-recognized stock exchange; or

 

		(ii)	within
                                         such 10 consecutive trading days there have not been at least five days in which at least
                                         100 Common Shares have traded,

 

the
Current Market Price in respect of a Common Share shall be determined by the directors of the Corporation acting reasonably and
in good faith;

 

		(e)	In
                                         any case in which Section 7 shall require that an adjustment become effective immediately
                                         after a record date or agreement date for an event referred to herein, the Corporation
                                         may defer, until the occurrence of such event, issuing or transferring to the Debentureholder
                                         who converts on a Conversion Date after such record date or agreement date and before
                                         the occurrence of such event the additional Common Shares issuable upon such conversion
                                         by reason of the adjustment of the Conversion Price required by such event before giving
                                         effect to such adjustment provided, however, that the Corporation shall deliver to the
                                         Debentureholder an appropriate instrument evidencing the Debentureholder’s right
                                         to receive such additional Common Shares upon the occurrence of the event requiring such
                                         adjustment and the right to receive any distributions made on such additional Common
                                         Shares declared in favour of holders of record of such Common Shares on and after the
                                         Conversion Date or such later date as such Debentureholder would, but for the provisions
                                         of this Section 7.1(e), have become the holder of record of such additional Common Shares.

 

    	 	 	10.

    	 	 	 

    

 

		(f)	The
                                         adjustments provided for in Section 7 are cumulative and shall apply to successive subdivisions,
                                         re-divisions, reductions, combinations, consolidations, distributions, issues or other
                                         events resulting in any adjustment under the provisions of this Section, provided that,
                                         notwithstanding any other provision of this Section, no adjustment of the Conversion
                                         Price shall be required unless such such adjustment would require an increase or decrease
                                         of at least one percent (1%) in the Conversion Price then in effect;.

 

		(g)	In
                                         the event of any dispute arising with respect to the adjustments provided in Section
                                         7, such question shall be conclusively determined by the auditors of the Corporation)
                                         who shall have access to all necessary records of the Corporation and such determination
                                         shall be binding upon the Corporation and the Debentureholder.

 

		(h)	If
                                         any Common Shares to be issued upon the conversion of this Debenture hereunder require
                                         any filing with, or registration with or approval of any governmental authority or compliance
                                         with any other requirement under any law before such shares may be validly issued upon
                                         such conversion or traded by the person to whom they are issued pursuant to such conversion,
                                         the Corporation will take all action as may be necessary to secure such filing, registration,
                                         approval or compliance, as the case may be.

 

		(i)	Notwithstanding
                                         the foregoing, nothing in Section 7 shall in any manner compromise or derogate from any
                                         rights the Debentureholder may have to approve any transaction contemplated by Section
                                         7, whether in its capacity as a shareholder (if applicable), as a Debentureholder or
                                         otherwise.

 

		(j)	No
                                         adjustment in the Conversion Price shall be made in respect of any event described in
                                         Sections 7.1(a), other than the events referred to in clauses 7.1(a)(i) and 7.1(a)(iii),
                                         if the Debentureholder is, without converting this Debenture, entitled to participate
                                         in such event on the same terms mutatis mutandis as if the Debentureholder had
                                         received Common Shares as a result of having converted this Debenture prior to or on
                                         the effective date or record date of such event; provided that such participation shall
                                         be subject to receipt of all necessary regulatory approvals.

 

		(k)	Notwithstanding
                                         anything in this 7.1, no adjustment shall be made in the conversion rights attached to
                                         this Debenture if the issue of Common Shares is being made in connection with any share
                                         incentive plan or restricted share unit plan or share purchase plan in force from time
                                         to time for directors, officers, employees, consultants or other service providers of
                                         the Corporation.

 

		(l)	If
                                         in the opinion of the directors of the Corporation the provisions of Section 7 are not
                                         strictly applicable, or if strictly applicable would not fairly protect the rights of
                                         the Debentureholder in accordance with the intent and purposes hereof, the directors
                                         of the Corporation shall make any adjustment in such provisions as the directors of the
                                         Corporation deems appropriate, acting reasonably, for the benefit of the Debentureholder.

 

    	 	 	11.

    	 	 	 

    

 

	7.2	Reclassifications,
                                         Reorganizations, etc. In case of any amalgamation of the Corporation with, or
                                         merger of the Corporation into, any other corporation with the result that the Corporation
                                         ceases to exist in its present capacity, or in case of any sale, transfer or other disposition
                                         of all or substantially all of the assets of the Corporation, the successor corporation
                                         or holder of the corporation’s assets as the case may be shall, and the Corporation
                                         shall cause such successor corporation or holder of the corporation’s assets to,
                                         give notice in the manner specified in Section 18 to the Debentureholder. Such notice
                                         shall confirm that the Debentureholder shall have the right to convert the Debenture
                                         into the kind and amount of Common Shares and other securities and property receivable
                                         upon such amalgamation, merger or sale such holder would have been entitled to receive
                                         as a result of such amalgamations, mergers, sales, transfers or other dispositions, if,
                                         on the effective date thereof, the Debentureholder had been the registered holder of
                                         the number of Common Shares to which it was until then entitled upon conversion of the
                                         Debenture. Such notice shall confirm adjustments which shall be as nearly equivalent
                                         as may be practicable to the adjustments provided for in this Section. The above provisions
                                         of this Section 7.2 shall similarly apply to successive amalgamations, mergers, sales,
                                         transfers or other dispositions.

 

	7.3	Certificates
                                         as to Adjustment The Corporation shall from time to time forthwith after the
                                         occurrence of any event which requires adjustment or readjustment as provided in Section
                                         7, deliver to the Debentureholder, an officer’s certificate specifying the nature
                                         of the event requiring the adjustment or readjustment and the amount of the adjustment
                                         or readjustment necessitated thereby and setting forth in reasonable detail the method
                                         of calculation and the facts upon which such calculation is based.

 

	7.4	Notice
                                         of Special Matters The Corporation covenants that so long as this Debenture remains
                                         outstanding, it will give notice to the Debentureholder at the address provided for in
                                         Section 18, of its intention to fix a
                                         record date or agreement date for any event which may give rise to an adjustment in the
                                         Conversion Price and, in each case, such notice shall specify the particulars of such
                                         event and the record date, the agreement date and the effective date for such event,
                                         provided that the Corporation shall only be required to specify in such notice such particulars
                                         of such event as shall have been fixed and determined on the date on which such notice
                                         is given. Such notice shall be given not less than seven (7) Business Days in each case
                                         prior to such applicable record date. The Corporation shall not during the period of
                                         such notice close the transfer books for Common Shares so as to prevent the conversion
                                         of this Debenture or fix a record date for voting so as to prevent the Common Shares
                                         resulting from a conversion of this Debenture from being voted. Nothing in this Section
                                         7.4 shall in any manner derogate from or compromise the Debentureholder’s rights
                                         to receive notice pursuant to any applicable laws.

 

    	 	 	12.

    	 	 	 

    

 

	8.	Covenants
                                         and Events of Default and Representations

 

	8.1	Covenants
                                         The Corporation covenants and agrees, on its own behalf and on behalf of each
                                         Subsidiary (where applicable) with the Debentureholder that, so long as this Debenture
                                         is outstanding and in force and except as otherwise permitted by the prior written consent
                                         of the Debentureholder:

 

		(a)	To
                                         Pay Principal and Interest: The Corporation
                                         will duly and punctually pay or cause to be paid to the Debentureholder the Principal
                                         Amount and interest accrued on the Debentures, at the places and in the manner mentioned
                                         herein and in the Debentures.

 

		(b)	Notice
                                         of Event of Default: The Corporation shall forthwith notify the Debentureholder of
                                         the occurrence of any Event of Default or any event of which it is aware which with notice
                                         or lapse of time or both would constitute an Event of Default together with full details
                                         and any action proposed to be taken.

 

		(c)	Preservation
                                         of Existence, etc: Subject to the express provisions hereof, the Corporation will
                                         carry on and conduct its activities, and cause its Subsidiaries to carry on and conduct
                                         their business, in a business-like manner and in accordance with good business practices;
                                         and, subject to the express provisions hereof, it will do or cause to be done all things
                                         necessary to preserve and keep in full force and effect its existence and rights.

 

		(d)	Keeping
                                         of Books: The Corporation will keep or cause to be kept proper books of record and
                                         account, in which full and correct entries shall be made of all financial transactions
                                         and the assets and business of the Corporation and each Subsidiary in accordance with
                                         generally accepted accounting principles.

 

		(e)	Maintain
                                         Listing: The Corporation will maintain the listing of the Common Shares on the TSX
                                         Venture Exchange or other Recognized Exchange, and to maintain the Corporation’s
                                         status as a “reporting issuer” not in default of the requirements of the
                                         applicable Securities Laws; provided that the foregoing covenant shall not prevent or
                                         restrict the Corporation from carrying out a transaction to which Section 14 would apply
                                         if carried out in compliance with Section 14 even if as a result of such transaction
                                         the Corporation ceases to be a “reporting issuer” in all or any of the provinces
                                         of Canada or the Common Shares cease to be listed on the TSX Venture Exchange or any
                                         other stock exchange.

 

		(f)	Withholding
                                         Matters: All payments made by or on behalf of the Corporation under or with respect
                                         to the Debentures (including, without limitation, any penalties, interest and other liabilities
                                         related thereto) will be made free and clear of and without withholding, or deduction
                                         for, or on account of, any present or future tax, duty, levy, impost, assessment or other
                                         governmental charge (including, without limitation, penalties, interest and other liabilities
                                         related hereto) imposed or levied by or on behalf of the Government of Canada or the
                                         United States or elsewhere, or of any province or territory thereof or by any authority
                                         or agency therein or thereof having power to tax (“Withholding
                                         Taxes”),
                                         unless the Corporation is required by law or the interpretation or administration
                                         thereof, to withhold or deduct any amounts for, or on account of Withholding Taxes. If
                                         the Corporation is so required to withhold or deduct any amount for, or on account of,
                                         Withholding Taxes from any payment made under or with respect to the Debentures, the
                                         Corporation shall deduct and withhold such Withholding Taxes from any payment to be made
                                         or with respect to the Debentures and, provided that the Corporation forthwith remits
                                         such amount to the relevant governmental authority or agency, the amount of any such
                                         deduction or withholding will be considered an amount paid in satisfaction of the Corporation’s
                                         obligations under the Debentures. There is no obligation on the Corporation to gross-up
                                         or pay additional amounts to a holder of Debentures in respect of such deductions or
                                         withholdings. For greater certainty, if any amount is required to be deducted or withheld
                                         in respect of Withholding Taxes upon a conversion of a Debenture, the Corporation shall
                                         be entitled to liquidate such number of Common Shares (or other securities) issuable
                                         as a result of such conversion as shall be necessary in order to satisfy such requirement.
                                         The Corporation shall provide the Debentureholder with copies of receipts or other communications
                                         relating to the remittance of such withheld amount or the filing of any forms received
                                         from such government authority or agency promptly after receipt thereof.

    	 	 	13.

    	 	 	 

    

 

		(g)	No
                                         Encumbrances: The Corporation shall not permit any lien or Encumbrance to be made
                                         or exist upon its property and assets.

 

		(h)	No
                                         Material Change of Business: The Corporation will notify the Debentureholder in the
                                         event of any Material Adverse Change. The Corporation will notify the Debentureholder
                                         in the event it receives notice of any regulatory, governmental or criminal citation,
                                         notice of violation, investigation or proceeding that may have a material impact on the
                                         Corporation’s license, business activities or operations. The Corporation will
                                         notify the Debentureholder in the event it receives notice of any non-compliance citations
                                         or notices of violations, of which the Corporation is aware, that may have a material
                                         impact on the investee’s, supplier’s or customers’ license, business
                                         activities or operations.

 

		(i)	Securities
                                         Law Disclosure, Publicity: The Corporation shall, by 9:30 a.m. (Toronto time) on
                                         the Business Day immediately following the date hereof, issue a press release disclosing
                                         the material terms of the transactions contemplated hereby. From and after the issuance
                                         of such press release, the Corporation represents to the Debentureholder that it shall
                                         have publicly disclosed all material, non-public information in connection with the transaction
                                         contemplated by the Credit Documents. The Corporation and Debentureholder shall consult
                                         with each other in issuing any other press releases with respect to the transactions
                                         contemplated hereby, and neither the Corporation nor any Debentureholder shall issue
                                         any such press release nor otherwise make any such public statement without the prior
                                         consent of the Corporation, with respect to any press release of any Debentureholder,
                                         or without the prior consent of each Debentureholder, with respect to any press release
                                         of the Corporation, which consent shall not unreasonably be withheld or delayed, except
                                         if such disclosure is required by law, in which case the disclosing party shall promptly
                                         provide the other party with prior notice of such public statement or communication.
                                         The Corporation shall not, and shall cause each of its Subsidiaries and each of their
                                         respective officers, directors, employees, affiliates and agents, not to, provide any
                                         Debentureholder with any material, nonpublic information regarding the Corporation or
                                         any of its Subsidiaries from and after the date hereof without the express prior written
                                         consent of such Debentureholder.

 

    	 	 	14.

    	 	 	 

    

 

If
a Debentureholder has, or believes it has, received any such material, nonpublic information regarding the Corporation or any
of its Subsidiaries from the Corporation, any of its Subsidiaries or any of their respective officers, directors, employees, affiliates
or agents, it may provide the Corporation with written notice thereof. The Corporation shall, within one (1) Business Day of receipt
of such notice, make public disclosure of such material, nonpublic information. In the event of a breach of the foregoing covenant
by the Corporation, any of its Subsidiaries, or any of its or their respective officers, directors, employees, affiliates and
agents, in addition to any other remedy provided herein or in the Transaction Documents, a Debentureholder shall have the right
to make a public disclosure, in the form of a press release of such material, nonpublic information. No Debentureholder shall
have any liability to the Corporation, its Subsidiaries, or any of its or their respective officers, directors, employees, affiliates,
stockholders or agents for any such disclosure. To the extent that the Corporation delivers any material, nonpublic information
to a Debentureholder without such Debentureholder’s consent, the Corporation hereby covenants and agrees that such Debentureholder
shall not have any duty of confidentiality to the Corporation, any of its Subsidiaries or any of their respective officers, directors,
employees, affiliates or agent with respect to, or a duty to the Corporation, any of its Subsidiaries or any of their respective
officers, directors, employees, affiliates or agent not to trade on the basis of, such material, nonpublic information. Notwithstanding
the foregoing, the Corporation shall not publicly disclose the name of any Debentureholder, or include the name of any Debentureholder
in any filing with the any regulatory agency or the TSX Venture Exchange, without the prior written consent of such Debentureholder,
except: (a) as required by Securities Law in connection with the filing of final Credit Documents with the TSX Venture Exchange
and (b) to the extent such disclosure is required by Securities Laws, in which case the Corporation shall provide the Debentureholders
with prior notice of such disclosure permitted under this clause (b).

 

	8.2	Events
                                         of Default Unless waived in writing by the Debentureholder, any one or more of
                                         the following events shall constitute an Event of Default hereunder:

 

		(a)	failure
                                         for 10 Business Days to pay interest on the Debentures when due;

 

		(b)	failure
                                         to pay the outstanding Principal Amount (whether by way of payment of cash or delivery
                                         of Common Shares), if any, when due on the Debentures whether at maturity, upon redemption,
                                         by declaration or otherwise;

 

		(c)	default
                                         in the delivery, when due, of any Common Shares or other consideration, payable on conversion
                                         with respect to the Debentures, which default continues for three (3) Business Days;

 

		(d)	default
                                         in the observance or performance of any covenant or condition of the Debenture by the
                                         Corporation and such default, if capable of being remedied, is not remedied within 10
                                         Business Days;

 

    	 	 	15.

    	 	 	 

    

 

		(e)	if
                                         a decree or order of a Court having jurisdiction is entered adjudging the Corporation
                                         a bankrupt or insolvent under the Bankruptcy and Insolvency Act (Canada) or any
                                         other bankruptcy, insolvency or analogous laws, or issuing sequestration or process of
                                         execution against, or against any substantial part of, the property of the Corporation,
                                         or appointing a receiver of, or of any substantial part of, the property of the Corporation
                                         or ordering the winding-up or liquidation of its affairs, and any such decree or order
                                         continues unstayed and in effect for a period of 60 days;

 

		(f)	if
                                         the Corporation institutes proceedings to be adjudicated a bankrupt or insolvent, or
                                         consents to the institution of bankruptcy or insolvency proceedings against it under
                                         the Bankruptcy and Insolvency Act (Canada) or any other bankruptcy, insolvency
                                         or analogous laws, or consents to the filing of any such petition or to the appointment
                                         of a receiver of, or of any substantial part of, the property of the Corporation, or
                                         any Subsidiary or makes a general assignment for the benefit of creditors, or admits
                                         in writing its inability to pay its debts generally as they become due;

 

		(g)	if,
                                         after the date of this Debenture, the Corporation or any of its Subsidiaries issues a
                                         convertible security or equity-linked security (whether such debt begins with a convertible
                                         feature or such feature is added at a later date) with any term more favorable to the
                                         holder of such security or with a term in favor of the holder of such security that was
                                         not similarly provided to the Debentureholder in this Debenture, including the issuance
                                         of warrants or extent of warrant coverage even if merely based on a reduction of the
                                         conversion price or original issuance discount, or more favorable terms than the Warrants,
                                         (types of terms contained in the other security that may be more favorable to the holder
                                         of such security include, but are not limited to, terms addressing conversion discounts,
                                         conversion look back periods, interest rates, original issue discount percentages and
                                         warrant coverage);

 

		(h)	if,
                                         after the date of this Debenture, any proceedings with respect to the Corporation are
                                         taken with respect to a compromise or arrangement, with respect to creditors of the Corporation
                                         generally, under the applicable legislation of any jurisdiction; or

 

		(i)	if
                                         the Corporation fails to complete a Qualified Financing by September 16, 2021.

 

		8.3	Acceleration
                                         and Penalty Upon the occurrence of any one or more of the Events of Default:

 

		(a)	a
                                         penalty payment equal to 40% of the Principal Amount of the Debenture will be added to
                                         the Principal Amount of the Debenture (the “Default Penalty”) and
                                         such Default Penalty, if applicable, shall be satisfied by the Corporation in cash, and
                                         the Corporation shall not under any circumstances satisfy the Default Penalty with the
                                         issuance of Common Shares; and

 

		(b)	the
                                         Indebtedness outstanding at that time shall be accelerated, and shall become immediately
                                         due and payable at the option of the Debentureholder. Alternatively, upon the occurrence
                                         of any one or more of the Events of Default, the Debentureholder may, by giving written
                                         notice thereof to the Corporation, elect to convert, subject to Section 5.1 and Section
                                         8.3 of this Debenture, in whole or in part, the Indebtedness then outstanding into Common
                                         Shares at the Conversion Price and in accordance with the terms hereof, notwithstanding
                                         the limitation set forth in Section 6.1.

 

    	 	 	16.

    	 	 	 

    

 

		8.4	Remedies
                                         Cumulative The rights and remedies of the Debentureholder hereunder are cumulative
                                         and in addition to and not in substitution for any rights or remedies provided by law.

 

		8.5	Non-Merger
                                         The taking of a judgment or judgments or any other action or dealing whatsoever
                                         by the Debentureholder in respect of any security given by the Corporation (if any) to
                                         the Debentureholder shall not operate as a merger of any indebtedness or liability of
                                         the Corporation to the Debentureholder or in any way suspend payment or affect or prejudice
                                         the rights, remedies and powers, legal or equitable, which the Debentureholder may have
                                         in connection with such liabilities and the surrender, cancellation or any other dealings
                                         with any security for such liabilities shall not release or affect the liability of the
                                         Corporation hereunder or any security held by the Debentureholder. All Obligations shall
                                         survive the Maturity Date until all Obligations of the Corporation hereunder have been
                                         satisfied and discharged in accordance with this Debenture.

 

		9.	Person
                                         Entitled to Payment

 

The
Debentureholder shall be entitled to payment of all amounts due hereunder free from all equities or rights of set-off or counterclaim
between the Corporation and the original or any intermediate Debentureholder hereof and all persons may act accordingly and a
transferee of this Debenture shall become the Debentureholder of this Debenture free from all equities or rights of set-off or
counterclaim between the Corporation and the transferor or any previous Debentureholder hereof, save in respect of equities of
which the Corporation is required to take notice by statute or by order of a court of competent jurisdiction.

 

		10.	Supplement
                                         to Debenture

 

		10.1	From
                                         time to time the Corporation shall, when so directed by the Debentureholder, execute,
                                         acknowledge and deliver by its proper officers, deeds or instruments supplemental hereto,
                                         which thereafter shall form part hereof, for any one or more of the following purposes:

 

		(a)	making
                                         such provisions not inconsistent with this Debenture as may be necessary or desirable
                                         with respect to matters or questions arising hereunder, including the making of any modifications
                                         in the form of the Debenture which do not affect the substance thereof and which provisions
                                         and modifications will not, in the opinion of the Debentureholder’s solicitor,
                                         be prejudicial to the interests of the Debentureholder;

 

		(b)	evidencing
                                         the succession or the successive successions of other corporations to the Corporation
                                         and the covenants of and obligations assumed by any such successor in accordance with
                                         the provisions of this Debenture; and

 

		(c)	for
                                         any other purpose not inconsistent with the terms of this Debenture.

 

    	 	 	17.

    	 	 	 

    

 

 

		10.2	The
                                         Corporation may correct any typographical or other manifest errors in this Debenture,
                                         provided that in the opinion of the Debentureholder’s solicitor such corrections
                                         will not prejudice the rights of the Debentureholder hereunder and may execute all such
                                         documents as may be necessary to correct such errors.

 

		11.	Mutilation,
                                         Loss, Theft or Destruction

 

In
case this Debenture shall become mutilated or be lost, stolen or destroyed, the Corporation shall execute and deliver a new Debenture
having the same date of issue upon surrender and cancellation of the mutilated Debenture, or in case this Debenture is lost, stolen
or destroyed, in lieu of and in substitution for the same. In case of loss, theft or destruction the person applying for a substituted
Debenture shall furnish to the Corporation such evidence of such loss, theft or destruction as shall be satisfactory to the Corporation,
shall furnish an indemnity satisfactory to the Corporation (but in any event in an amount not exceeding the principal amount outstanding)
and shall pay all reasonable expenses incidental to the issuance of any substituted Debenture.

 

		12.	Debentureholder
                                         Not a Shareholder

 

This
Debenture shall, in itself, not confer or be construed as conferring upon the Debentureholder any right or interest whatsoever
as a shareholder of the Corporation, including, but not limited to, the right to vote at, to receive notice of, or to attend meetings
of shareholders or any other proceedings of the Corporation, or the right to receive dividends and other distributions.

 

		13.	Transfer
                                         of Debentures

 

		13.1	The
                                         Corporation shall maintain a register on which are recorded the names and addresses of
                                         each holder hereof. Subject to compliance with the terms of this Debenture and with applicable
                                         laws and regulations, a transfer shall be recorded by the Corporation in the register
                                         of holders hereof maintained by the Corporation, upon surrender of this Debenture with
                                         the Transfer Form in the form attached hereto as Schedule “B” duly completed
                                         by the Debentureholder or by its duly authorized attorney or representative, or accompanied
                                         by proper evidence of succession, assignment or other authority to transfer on behalf
                                         of the Debentureholder. Upon each transfer the Corporation shall cancel this Debenture
                                         and execute and deliver such replacement debenture as is required, in the form hereof.

 

		13.2	Restrictions
                                         on Transfers: The Corporation shall not register any transfers of the Debenture or
                                         issue or transfer any Common Shares issuable on conversion of the Debenture:

 

		(a)	to
                                         a United States person, any person in the United States or any person for the account
                                         or benefit of a United States person or a person in the United States except pursuant
                                         to Rule 144 under the United States Securities Act of 1993, as amended (the “U.S.
                                         Securities Act”), if available;

 

		(b)	in
                                         connection with any transfers or conversions which are otherwise not in compliance with
                                         (i) the U.S. Securities Act and the regulations thereunder if applicable, (ii) the Securities
                                         Act (Ontario) and the rules and regulations thereunder, (iii) applicable securities
                                         laws and regulations of other relevant jurisdictions, or (iv) the policies of the TSX
                                         Venture Exchange; and

 

    	 	 	18.

    	 	 	 

    

 

		(c)	within
                                         four months and a day from the Closing Date, unless the Corporation and its legal counsel
                                         are satisfied, acting reasonably, that it is permitted under applicable Securities Laws
                                         and under the policies of the TSX Venture Exchange.

 

Notwithstanding
anything to the contrary contained herein but subject to the terms of this Section 13, no assignment or transfer of any right
or interest in this Debenture shall be permitted except upon the occurrence of an Event of Default, upon which the Debentureholder
shall have the right to assign this Debenture without consent of the Corporation, and in compliance with applicable Securities
Laws and the transferee, assignee or Debentureholder as the case may be, furnishes to the Corporation such evidence as the Corporation
may reasonably require in order to satisfy itself with respect to the foregoing. No prior written consent of the Corporation is
required to permit the assignment or transfer of any right or interest in this Debenture by a Debentureholder to any affiliate
of the Debentureholder or to any investment fund managed by the Debentureholder’s manager or its affiliate provided the
other conditions to such assignment or transfer as provided in this Section 13 are satisfied. Any purported assignment or transfer
of any right or interest in this Debenture by a Debentureholder that is not in compliance with this Section 13 shall be null and
void.

 

The
appropriate legends, as follows, will be placed on the certificates representing the Common Shares issued on conversion of the
Debenture denoting the restrictions on transfer imposed by applicable Securities Laws and the policies of the TSX Venture Exchange,
including but not limited to the following legends:

 

“UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE MARCH 17, 2021.”

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “U.S. SECURITIES ACT”) OR U.S. STATE SECURITIES LAWS. THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO BRIACELL THERAPEUTICS CORP. (THE “CORPORATION”), (B) OUTSIDE THE
UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL
LAWS AND REGULATIONS, (C) IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT PROVIDED
BY (I) RULE 144 THEREUNDER IF AVAILABLE OR (II) RULE 144A THEREUNDER, IF AVAILABLE, AND IN EACH CASE IN ACCORDANCE WITH APPLICABLE
U.S. STATE SECURITIES LAWS, (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY
APPLICABLE STATE SECURITIES LAWS, OR (E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT, PROVIDED
THAT, IN THE CASE OF TRANSFERS PURSUANT TO (C)(I) OR (D) ABOVE, THE HOLDER HAS, PRIOR TO SUCH TRANSFER, FURNISHED TO THE CORPORATION
AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION. DELIVERY OF THIS
CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.”

 

    	 	 	19.

    	 	 	 

    

 

and
if required:

 

“WITHOUT
PRIOR WRITTEN APPROVAL OF THE TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED
BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE TSX VENTURE
EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT MARCH 17, 2021.”

 

		14.	Certain
                                         Requirements re: Successor Corporations

 

The
Corporation shall not, directly or indirectly, sell, lease, transfer or otherwise dispose of all or substantially all of its property
and assets as an entirety to any other entity, and shall not consolidate, amalgamate, reorganize or merge with or into any other
corporation (any such other entity or corporation being herein referred to as a “successor corporation”) unless:

 

		(a)	the
                                         successor corporation shall execute, prior to or contemporaneously with the consummation
                                         of any such transaction, such instruments as are reasonably necessary to evidence the
                                         assumption by the successor corporation of the due and punctual payment of the outstanding
                                         amount of this Debenture or the reservation and allotment for issuance of a sufficient
                                         number of common shares of the successor corporation to satisfy the conversion privilege
                                         and interest payment obligations hereunder and to observe and perform all the covenants
                                         and obligations of the Corporation under this Debenture and the Subscription Agreement;

 

		(b)	such
                                         transaction shall be upon such terms as to preserve and not to impair any of the rights
                                         or powers of the Debentureholder hereunder, under the Subscription Agreement or any security
                                         pertaining hereto or thereto; and

 

		(c)	immediately
                                         after giving effect to such transaction, no condition or event shall exist which constitutes
                                         an Event of Default, or may constitute an Event of Default after notice or lapse of time
                                         or both.

 

    	 	 	20.

    	 	 	 

    

 

		15.	Vesting
                                         of Powers in Successors

 

Whenever
the conditions of Section 14 have been fully observed and performed, the successor corporation shall possess and from time to
time may exercise each and every right and power of the Corporation under this Debenture in the name of the Corporation or otherwise
and any act or proceeding by any provision of this Debenture required to be done or performed by the Corporation or its officers
may be done and performed with like force and effect by the successor corporation or its officers.

 

		16.	Waiver

 

No
waiver on the part of the Debentureholder in exercising any right or privilege hereunder and no waiver as to any Event of Default
hereunder shall operate as a waiver thereof unless made in writing and signed by the Debentureholder. No written waiver shall
preclude the further or other exercise by the Debentureholder of any right, power or privilege hereunder, or extend to or apply
to any further Event of Default.

 

		17.	Further
                                         Assurances

 

The
Corporation shall from time to time forthwith on the Debentureholder’s request do, make and execute all such further assignments,
documents, acts, matters and things as may be required by the Debentureholder with respect to give effect to the matters contemplated
in the Credit Documents or any part thereof, including all matters contemplated in this Debenture.

 

		18.	Notices

 

Any
notice or communication to be given hereunder may be effectively given by delivering the same at the addresses hereinafter set
forth or by sending the same by email or prepaid registered mail to the parties at such addresses. Any notice so mailed shall
be deemed to have been received on the fifth (5th) Business Day next following the mailing thereof provided the postal service
is in operation during such time. Any email notice shall be deemed to have been received on the Business Day next following the
date of transmission. The mailing and email addresses of the parties for the purposes hereof shall respectively be:

 

if
to the Debentureholder:To the address set out on the face page, with a copy to:

 

	 	Garfinkle
    Biderman LLP
	 	1
    Adelaide Street East, Suite 801
	 	Toronto,
    Ontario M5C 1J4
	 	 
	 	Attention:	Shimmy
    Posen
	 	Email:	sposen@garfinkle.com
	 	 
	if
    to the Corporation:	BriaCell
    Therapeutics Corp.
	 	 
	 	3rd
    Floor, Bellevue Centre, 235-15th Street
	 	West
    Vancouver, British Columbia V7T 2X1
	 	 
	 	Attention:	Jamieson
    Bondarenko
	 	Email:	jbondarenko@briacell.com

 

    	 	 	21.

    	 	 	 

    

 

Either
party may from time to time notify the other party hereto, in accordance with the provisions hereof, of any change of address
which thereafter, until changed by like notice, shall be the address of such party for all purposes of this Agreement.

 

		19.	Successors
                                         and Assigns

 

This
Debenture shall be binding upon and shall enure to the benefit of the Corporation and the Debentureholder and their respective
successors and assigns, provided that neither party shall assign any of its rights or obligations hereunder without the prior
written consent of the other party, which consent shall not be unreasonably withheld.

 

		20.	Governing
                                         Law and Submission to Jurisdiction

 

This
Debenture and all other documents delivered to the Debentureholder hereunder shall be construed and interpreted in accordance
with the laws of the Province of Ontario and the federal laws of Canada applicable therein. Each of the Corporation and the Debentureholder
hereby agrees that any legal suit, action or proceeding arising out of or relating to this Debenture and all such other documents
may be instituted in the courts of the Province of Ontario only and the parties accept and irrevocably submit to the jurisdiction
of the said courts, and acknowledge their competence and agree to be bound by any judgment thereof.

 

		21.	The
                                         Debentureholder agrees that it shall be prohibited from exercising any portion of this
                                         Debenture if the aggregate number of Common Shares of the Corporation owned or controlled,
                                         directly or indirectly, by the Debentureholder and any affiliates of the Debentureholder
                                         (including common shares of which the Debentureholder has deemed beneficial ownership),
                                         collectively, as a result of such exercise would equal or exceed 4.99% of the issued
                                         and outstanding common shares of the Corporation calculated on the date of exercise of
                                         the Debenture.

 

[remainder
of page intentionally left blank]

 

    	 	 	22.

    	 	 	 

    

 

DATED
as of the ____ day of November, 2020.

 

	 	BRIACELL
    THERAPEUTICS CORP. 
	 	 
		By:	                               
	 	 	Authorized
    Signatory

 

Signature
Page Debenture

 

    	 	 

    	 	 	 

    

 

SCHEDULE
“A”

 

CONVERSION
NOTICE

 

TO:BRIACELL
THERAPEUTICS CORP.

 

Reference
is made to the Unsecured Convertible Debenture of BriaCell Therapeutics Corp. dated November 16, 2020. Any
term not otherwise defined in this Notice shall have the meaning ascribed to it in the Debenture.

 

The
undersigned Debentureholder of the Debenture hereby gives notice that it elects to convert certain Indebtedness for the undernoted
number of Common Shares in accordance with the terms of the Debenture and as follows.

 

	Amount
    of Indebtedness Being Converted:	$_____________________
	 	 
	Common
    Shares to be Issued:	______________________
	 	 
	Effective
    Date:	______________________
	 	 

The
undersigned hereby directs that the shares are to be issued and delivered as follows:

 

	Registration
    Instructions:	 	Delivery
    Instructions:
	 	 	 
	 	 	 

 

Any
unpaid interest shall be paid by cash

 

Dated
this ______day ______________, 20______.

 

	 	EVERGREEN
    CAPITAL MANAGEMENT LLC
	 	 
	 	Per:	                       
	 	 	Name:
	 	 	Title:
	 	 	(authorized
    signing officer)

 

Instructions
for Conversion

 

This
conversion notice is to be signed by the Debentureholder.

 

The
Debenture must be surrendered at the office of the Corporation, located at 3rd Floor, Bellevue Centre, 235-15th Street West Vancouver,
British Columbia V7T 2X1

 

Fractional
Common Shares will not be issued on any conversion and if any fractional Common Shares would be delivered upon conversion of any
amount hereunder, the number of Common Shares to be issued shall be rounded down to the nearest whole Common Share.

 

Upon
surrender of the Debenture, the Corporation will issue to the Debentureholder the number of shares converted and shall deliver
a certificate(s) or other evidence of such shares. The Corporation shall also deliver a new debenture in the event of a partial
conversion.

 

If
Common Shares are to be issued in the name of a person other than the Debentureholder, all requisite transfer taxes must be tendered
by the Debentureholder.

 

    	 	2.

    	 	 	 

    

 

SCHEDULE
“B”

TRANSFER FORM

 

		TO:	BRIACELL
                                         THERAPEUTICS CORP.

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

 

	 
	Name
	 
	Address
	 
	Social
    Insurance Number, Social Security Number, or Tax Identification Number

 

$______________
of the principal amount of Debenture registered in the name of the undersigned represented by the within certificate (which
amount must be $1,000 or an integral multiple thereof) and do hereby irrevocably constitute and appoint the Corporate Secretary
of the Corporation attorney to transfer the said Debenture on the books of the Corporation with full power of substitution in
the premises.

 

DATED
this _________ day of ____.

 

	 	 	                                      
	 	 	Signature
    of Debentureholder
	 	 	 
	 	 	Name
    of Debentureholder (Please Print)
	 	 	 
	 	 	Authorized
    Signature Name and Title

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00317-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00317-of-00352.parquet"}]]