Document:

Exhibit 10.2

 

 

 

LOAN
AGREEMENT

 

THIS
LOAN AGREEMENT (“Agreement”) effective as of the 15th day of December, 2020, by and between IMMUCELL
CORPORATION, a Delaware corporation with a place of business at 56 Evergreen Drive, Portland, Maine (referred to hereinafter
“Borrower”), and GORHAM SAVINGS BANK, a Maine banking company, with a mailing address of 10 Wentworth Drive,
Gorham, Maine 04038, and its successors and assigns (the “Bank”).

 

Background

 

The
Borrower desires to borrow from the Bank and the Bank, subject to the terms and conditions set forth herein, is prepared to lend
to the Borrower the total sum of ONE MILLION FIVE HUNDRED THOUSAND and 00/100 dollars
($1,500,000.00) TERM LOAN to Borrower for purposes of refinancing existing corporate debt of the Borrower and to reimburse
Borrower for equipment purchases, in connection with the Bank issued commitment letter to the Borrower dated November 19, 2020
(the “Commitment”).

 

NOW
THEREFORE, in consideration of the premises, and of the mutual promises and undertakings of the parties set forth herein,
and with the intention of being legally bound hereby, the parties hereto agree as follows:

 

1.
The Loan.

 

(a)
Purpose and Amount. The Bank shall loan to the Borrower on the date hereof subject to the terms herein the sum
of ONE MILLION FIVE HUNDRED and 00/100 dollars ($1,500,000.00) TERM LOAN to Borrower
(collectively the “Loan”) for the purpose of refinancing existing corporate debt of the Borrower, and to reimburse
Borrower for equipment purchases. The parties agree and acknowledge that (a) $635,213 of the Loan proceeds will be applied on
the date hereof to partially prepay the existing mortgage note given by the Borrower to the Bank, and (b) the cash of the Borrower
being held by the Bank in a restricted account will be released to the Borrower on the date hereof. Subject to all the terms and
provisions hereof, the Bank hereby agrees to lend to Borrower, and Borrower hereby agrees to borrow from the Bank, the full amount
of the Loan, to be advanced as provided herein and repaid together with accrued interest thereon and with all costs and charges
due and owing under this Agreement, all as hereinafter and in the Note more particularly set forth. The Loan shall be evidenced
by the Note, and repayment of the Note and all other sums due the Bank under the terms hereof shall be secured by the Loan Documents
set forth below.

 

     

     

    

 

(b)
Loan Documents; Security.

 

(i)
The Borrower’s obligation to repay the Loan and any other sums loaned to the Borrower by the Bank hereunder is evidenced by the
Borrower’s Term Note dated December __, 2020, in the principal sum of One Million Five Hundred Thousand Dollars ($1,500,000.00)
(the “Note”), providing for the payment of principal, together with interest thereon at the rate set forth therein,
in such installments, at such times, and according to such further terms as set forth in the Note.

 

(ii)
As security for the Note and all of the Borrower’s obligations thereunder and hereunder, the Borrower shall execute and deliver
to the Bank or cause to be executed and delivered to the Bank, as the case may be, the following:

 

(A)First
priority Security Agreement encumbering all assets including but not limited to accounts, accounts receivable, inventory, machinery
and equipment, motor vehicles, furniture and fixtures located at 56 Evergreen Drive, Portland, Maine and the Borrower’s
other various operating locations (the “Property”), and all renewals and replacements thereof or additions thereto,
all as more specifically described in the Security Agreement (the “Security Agreement”).

 

(B)First
perfected security interest and UCC financing statements in all assets of the Borrower, including but not limited to accounts,
accounts receivable, inventory, machinery and equipment, motor vehicles, furniture and fixtures (the “UCCs”).

 

(iii)
The Borrower shall execute and deliver, or cause to be executed and delivered, such additional documents and instruments as the
Bank shall reasonably require in order to perfect the Bank’s interest in any of the foregoing property. The Note, Security Agreement,
UCCs, and other documents and instruments referred to above (all of which, together with this Agreement (as from time to time
amended, restated and extended) and the Commitment are hereinafter collectively referred to as the “Loan Documents”)
shall be in form and substance satisfactory to the Bank, and all necessary filing and recording fees with respect thereto shall
be paid by the Borrower.

 

The
term “Obligor” as used in this Agreement shall mean, individually and collectively, the Borrower, and any Indemnitor,
as the case may be.

 

2.
Representations and Warranties. The Borrower hereby represents and warrants to the Bank (which representations and
warranties shall survive until the Loan has been paid in full) that as of the date hereof:

 

(a)
Power and Authority; Authorization; Enforceability. The Borrower has full power, authority and legal right to execute,
deliver and comply with each of the Loan Documents to which it was a party and any other document or instrument relating to the
Loan to be executed by the Borrower, all actions of the Borrower and other authorizations necessary or appropriate for the execution
and delivery of and compliance with the Loan Documents and such other documents and instruments have been taken or obtained and
the Loan Documents and such other documents and instruments constitute the respective valid and legally binding obligations of
the Borrower, enforceable against the Borrower in accordance with their respective terms, subject to bankruptcy laws, insolvency
laws and general equitable principles.

 

(b)
Governmental Approval of Loan Documents. No consent, approval, or other authorization of or by any court, administrative
agency, or other governmental authority is required in connection with the Borrower’s execution and delivery of or compliance
with any of the Loan Documents or any other document or instrument relating to the Loan executed by the Borrower.

 

    2

     

    

 

(c)
Conflict; Breach. The Borrower’s execution and delivery of and compliance with the Loan Documents will not conflict with
or result in a breach of any applicable law, judgment, order, writ, injunction, decree, rule, or regulation of any court, administrative
agency, or other governmental authority, or of any provision of the Borrower’s Organizational Documents or of any agreement or
other document or instrument to which the Borrower is a party or by which the Borrower or any of its property is bound, and such
actions by the Borrower will not result in the creation or imposition of any lien, charge or encumbrance upon any property of
the Borrower in favor of anyone other than the Bank.

 

(d)
Litigation. There is no action, suit or proceeding pending or, to the knowledge of the Borrower, threatened against or
affecting the Borrower or the Collateral which is the subject of the Security Agreement before or by any court, administrative
agency, or other governmental authority that is not covered by insurance, or which brings into question the validity of the transactions
contemplated hereby.

 

(e)
Compliance With Laws. To the Borrower’s knowledge, each portion of the Property, and the Borrower’s use thereof,
complies in all material respects with all applicable zoning, fire, electrical, safety, building and land use codes, laws and
regulations and if damaged the Property can be rebuilt without variance or special exception. In addition, the Borrower has obtained
all licenses, permits, authorizations, consents or approvals from each Governmental Authority necessary for the ownership and
operation of the Borrower’s business; and all such licenses, permits, authorizations, consents or approvals are in full
force and effect.

 

(f)
Title to Personal Property. All personal property with respect to which the Borrower has granted to the Bank a security
interest pursuant to any of the Loan Documents is otherwise owned by such Borrower and is free and clear of all liens, encumbrances,
and security interests, except prior security interests in said property given by the Borrower to the Bank.

 

(g)
Bankruptcy; Insolvency. Neither the Borrower nor any other Obligor, as the case may be, has applied for or consented to
the appointment of a receiver, trustee or liquidator of itself, himself or herself or any of its, his or her property, admitted
in writing its, his or her inability to pay its, his or her debts as they mature, made a general assignment for the benefit of
creditors, been adjudicated as bankrupt or insolvent or filed a voluntary petition in bankruptcy, or a petition or an answer seeking
reorganization or an arrangement with creditors or to take advantage of any bankruptcy, reorganization, insolvency, readjustment
of debt, dissolution or liquidation law or statute, or an answer admitting the material allegations of a petition filed against
it, him or her in any proceeding under any such law, and no action has been taken by it, him or her for the purpose of effecting
any of the foregoing. No order, judgment or decree has been entered by any court of competent jurisdiction approving a petition
seeking reorganization of the Borrower, any general partner of the Borrower, or any other Obligor, or all or a substantial part
of the assets of the Borrower, any general partner of the Borrower, or any other Obligor, or appointing a receiver, sequestrator,
trustee or liquidator of it, him or her or any of its, his or her property.

 

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(h)
Use of Loan Proceeds. Borrower will employ the Loan proceeds for refinance of existing debt, the purchase of new equipment,
for partial paydown on an existing loan from the Bank (as set forth above), and to reimburse Borrower for equipment purchases.

 

3.
Covenants. Borrower covenants and agrees that, until the Loan has been paid in full:

 

(a)
Compliance with Laws. Each portion of the Property shall be operated and maintained in accordance with all applicable laws,
rules and regulations relating thereto in all material respects.

 

(b)
Commitment Fee. As consideration for the issuance of the Commitment, Borrower shall pay to Bank a fee of Two Thousand Five
Hundred Dollars ($2,500.00), which shall be payable upon the first renewal of the above-described Line of Credit.

 

(c)
Environmental Matters. Borrower will not, and will not permit any tenant or other occupant of the property to, store, use,
generate, treat or dispose of any Hazardous Substances or Wastes (each term being defined in the Environmental Indemnity Agreement)
on the Property in violation of any applicable federal, state or local laws or regulations. The Borrower shall promptly advise
the Bank in writing of and with respect to any pending or threatened claim, demand or action by any governmental authority or
third party relating to any Hazardous Substances or Wastes affecting the Property of which the Borrower has actual knowledge or
the discovery of any Hazardous Substances or Wastes in violation of applicable law at the Property or on any real property adjoining
or in the vicinity of the Property.

 

(d)
Financial Statements. During the term of the Loan, Borrower agrees to provide to the Bank the following financial reports
in the format and frequency as outlined below:

 

Annual:

 

Annually
within Ninety (90) days following the end of the fiscal year:

 

	 	●	10-K
    financial statements for Borrower

 

In
addition, the Bank reserves the right to request complete tax returns on any partnerships, corporations or entities in which the
Borrower has an interest.

 

The
Loan Documents shall provide that failure to provide such information shall be a default under the Loan, provided that such default
is not cured within ten (10) days of the Bank’s notice to Borrower of such default, and Borrower shall thereupon be obligated
to pay interest at the Default Interest Rate.

 

(e)
Additional Financial Information. The Borrower shall furnish to the Bank such additional financial statements and reports,
asset verification, and other information as the Bank may reasonably request from time to time.

 

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(f)
Address. The Borrower shall notify the Bank of any change in address for the Borrower.

 

(g)
Books and Records. The Borrower shall keep complete and accurate books and records. The Borrower shall furnish to the Bank
all such written information relating to its affairs as may be reasonably requested by the Bank from time to time.

 

(h)
Audit. The Bank shall have the right at any time and from time to time (upon reasonable prior notice and during normal
business hours) to audit the books and records of the Borrower and the Borrower shall be obligated to make available for any such
audit all books, records and other information that the Bank may reasonably request for such purpose and to cooperate fully with
the Bank in connection therewith.

 

(i)
Changed Circumstances. The Borrower shall promptly notify the Bank of any material change in any fact or circumstance represented
or warranted by the Borrower herein and in any other documents furnished to the Bank in connection with this Agreement.

 

(j)
Bank’s Fees and Costs. The Borrower shall pay or reimburse the Bank for all other reasonable costs and expenses incurred
by the Bank in connection with the preparation, review, modification and, after the occurrence of an Event of Default hereunder,
successful enforcement of the Loan Documents and collection of the Loan.

 

(k)
Closing Costs. The Borrower shall pay all reasonable expenses including, but not limited to, title company premiums and
charges, fees of the Bank, appraisal, environmental site assessment (if applicable), recording fees and taxes, property inspection
fees, consultant fees, and all other reasonable expenses in connection with the preparation, closing and disbursement of the Loan.
To the extent incurred, the foregoing expenses shall be paid by Borrower whether or not the Loan shall close or be funded.

 

(l)
Deposit Accounts. Borrower shall maintain its primary depository account with the Bank for the duration of the Loan.

 

(m)
Loss or Damage. Borrower shall notify the Bank of any material loss or damage to the Property within ten (10) days of the
occurrence of said loss or damage.

 

(n)
Financial Covenants. The Borrower shall maintain a combined minimum debt service coverage ratio of 1.35x, to be tested
annually starting with FY20. Debt Service Coverage ratio shall be defined as income before income taxes plus depreciation, amortization,
and interest expense for the fiscal year just completed, divided by all scheduled loan payments for the Borrower during the succeeding
fiscal year. Bank shall use appropriate consideration with respect to the inclusion or exclusion of extraordinary or one-time
gains or expenses (including stock based compensation) in calculating income before income taxes.

 

(o)
Further Assurances. Borrower shall keep valid and unimpaired the Loan Documents, and to that end shall execute at any future
time and as often as may be deemed necessary, on demand of the Bank, all further instruments as may be deemed proper by the Bank
to the better carrying out of the true intent and meaning of this Agreement.

 

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4.
Negative Covenants. Borrower shall not do any of the following without the prior written approval of the Bank:

 

(a)
Convey, transfer, or further encumber the Property or convey, assign, transfer, dispose of or encumber any personal property used
or useful in the operation of the Borrower’s business other than sales of inventory in the ordinary course of business and
dispositions of damaged, worn, outdated or obsolete items.

 

(b)
Declare, make or pay any distributions on or of capital of Borrower in excess of one half of net income (consistent with Borrower’s
financial covenants set forth in subsection 3(n) above), or pay any loans payable to any of its directors, officers, shareholders,
partners, or to any person or entity affiliated with any of them, or to any family member of any of them.

 

(c)
Liquidate, terminate, consolidate, merge or voluntary dissolve.

 

5.
Prepayment Premium. If the Loan is refinanced by the Borrower with another financial institution, and Borrower pays
principal in excess of the scheduled amortization of principal under this the Note prior to the maturity, such excess payment
of principal shall be subject to a prepayment premium to the Bank in an amount equal to the excess principal payment amount times
Five (5) Percent during the first year following the date of this Agreement, Four (4) Percent during the second year following
the date of this Agreement; Three (3) Percent during the third year following the date of this Agreement; and One (1) Percent
for the remaining term.

 

6.
Maximum Rate of Interest on Loan. Notwithstanding anything to the contrary contained herein or in any other document
executed in connection with the Loan, the effective rate of interest on the Loan shall not exceed the maximum effective rate of
interest permitted by applicable law or regulation. The Bank hereby agrees not to collect knowingly any interest from the Borrower
in the form of fees or otherwise which will render the Loan usurious. In the event that such interest would be usurious in the
Bank’s opinion, the Bank reserves the right to reduce the interest payable by the Borrower. This provision shall survive the closing
and repayment of the Loan.

 

7.
Limitation of Bank’s Liability. The rights and benefits of this Agreement shall not inure to the benefit of any
third party, except as otherwise provided in this Agreement. Notwithstanding anything to the contrary contained in this Agreement
or in any of the other Loan Documents, or any conduct or course of conduct by the Borrower or the Bank or their respective affiliates,
agents or employees, neither this Agreement nor any such Loan Documents shall be construed as creating any rights, claims or causes
of action against the Bank in favor of any person or entity other than the Borrower.

 

8.
Indemnity. The Borrower, for itself and all those claiming under or through it, agrees to protect, indemnify, defend
and hold the Bank, and its directors, officers and employees harmless, from and against any and all liability, expense, or damage
of any kind or nature and from any suits, claims or demands, including reasonable legal fees and expenses, arising out of this
Agreement or in connection therewith including, without limitation, claims for brokerage and finder’s fees in connection with
the Loan. This obligation specifically shall survive the repayment of the Loan.

 

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9.
Default.

 

(a)
Events of Default. The occurrence of any one or more of the following events, which goes uncured beyond any applicable
cure period shall, at the sole option of the Bank, constitute an Event of Default hereunder:

 

(i)
The Borrower shall fail to make any payment of principal, and/or interest, and/or real estate taxes and insurance escrow, as applicable,
due to the Bank under the Note or under any of the other Loan Documents after the same shall become due and payable, whether at
maturity or by acceleration or otherwise, and continuation of such failure for ten (10) days after such due date;

 

(ii)
Except as otherwise specifically provided for in this Agreement, the Borrower shall fail to observe or perform any of the covenants
or agreements on its part to be observed and performed under this Agreement or under any of the other Loan Documents within thirty
(30) days after written notice from the Bank of such non-compliance; provided, however, that such thirty (30) day period shall
be extended as reasonably necessary if the default is not reasonably susceptible to cure within thirty (30) days and Borrower
has commenced and is diligently prosecuting cure of the default;

 

(iii)
Any representation or warranty under any Loan Document shall be untrue in any material respect when made;

 

(iv)
Any Event of Default shall occur under the terms of any Loan Document or under any document evidencing or securing any other loan
or future advance from the Bank to the Borrower which is not cured within any applicable cure period;

 

(v)
The Borrower or any other Obligor shall apply for or consent to the appointment of a receiver, trustee or liquidator of itself,
himself or herself or any of its, his or her property, admit in writing its, his or her inability to pay its, his or her debts
as they mature, make a general assignment for the benefit of creditors, be adjudicated a bankrupt, insolvent or file a voluntary
petition in bankruptcy, or a petition or an answer seeking reorganization or an arrangement with creditors or to take advantage
of any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or liquidation law or statute, or an answer admitting
the material allegations of a petition filed against it, him or her in any proceeding under any such law, or if action shall be
taken by the Borrower or any other Obligor for the purpose of effecting any of the foregoing;

 

(vi)
Any order, judgment or decree shall be entered by any court of competent jurisdiction, approving a petition seeking reorganization
of the Borrower or any other Obligor or of all or a substantial part of the assets of the Borrower or any other Obligor, or appointing
a receiver, sequestrator, trustee or liquidator of the Borrower or any other Obligor or any of their property, and such order,
judgment, or decree shall not be dismissed within ninety (90) days;

 

(vii)
The Property shall be materially injured or destroyed by fire or other casualty and the Borrower has failed to deposit or cause
to be deposited with the Bank sufficient funds, together with insurance proceeds, to cover the cost of restoration in accordance
with the terms of the Security Agreement;

 

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(viii)
Except as may be otherwise specifically permitted herein, any change in the ownership of the Property without the prior written
consent of the Bank, which may be granted or withheld in the Bank’s sole judgment.

 

(b)
Acceleration and Remedies. Upon the occurrence of any Event of Default hereunder, in addition to any other rights or remedies
available to it hereunder or under any other Loan Document or at law or in equity granted in any of the Loan Documents, the Bank
may declare the outstanding principal balance of the Loan, together with all accrued and unpaid interest thereon and all other
sums due hereunder or under any of the other Loan Documents, to be immediately due and payable in full.

 

(c)
Remedies Cumulative, etc.

 

(i)
No right or remedy conferred upon or reserved to the Bank under any of the Loan Documents, or of performance of any of the Borrower’s
obligations under any of the Loan Documents, or any collateral securing the payment of the Loan under any of the Loan Documents
(collectively, the “Collateral”), now or hereafter existing at law or in equity or by statute or other legislative
enactment, is intended to be or shall be deemed exclusive of any other such right or remedy, and each and every such right or
remedy shall be cumulative and concurrent, and shall be in addition to every other such right or remedy, and may be pursued singly,
concurrently, successively or otherwise, at the sole discretion of the Bank, and shall not be exhausted by any one exercise thereof
but may be exercised as often as occasion therefore shall occur. No act of the Bank shall be deemed or construed as an election
to proceed under any one such right or remedy to the exclusion of any other such right or remedy; furthermore, each such right
or remedy of the Bank shall be separate, distinct and cumulative and none shall be given effect to the exclusion of any other.
The failure to exercise or delay in exercising any such right or remedy, or the failure to insist upon strict performance of any
term of any of the Loan Documents, shall not be construed as a waiver or release of the same, or of any Event of Default thereunder,
or of any obligation or liability of the Borrower thereunder. Nothing herein, however, shall be construed to prevent the Bank
from waiving any condition, obligation or default it should so elect. In the event of such election by the Bank, any waiver, in
order to be effective, must be in writing and signed by the Bank, and any such waiver shall be strictly limited in its effect
to the condition, obligation or default specified therein and shall not extend to any subsequent condition, obligation or default
or impair any right of the Bank with respect thereto.

 

(ii)
The recovery of any judgment by the Bank and/or the levy of execution under any judgment shall not affect in any manner or to
any extent, liens or other security interests in any Collateral, or any rights, remedies or powers of the Bank under any of the
Loan Documents or with respect to any Collateral, but such liens and security interests, and such rights, remedies and powers
of the Bank shall continue unimpaired as before. Further, the entry of any judgment by the Bank shall not affect in any way the
interest rate payable under any of the Loan Documents on any amounts due to the Bank, but interest shall continue to accrue on
such amounts at the Default Rate (as hereafter defined).

 

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(iii)
Except as to notices that are specifically provided for herein or in any of the other Loan Documents, the Borrower hereby waives
presentment, demand, notice of nonpayment, protest, notice of protest, or other notice of dishonor, and any and all other notices
in connection with any default in the payment of, or any enforcement of the payment of, the Loan. To the extent permitted by law,
Borrower waives the right to any stay of execution and the benefit of all exemption laws now or hereafter in effect.

 

(iv)
The Borrower agrees that the Bank may release, compromise, forbear with respect to, waive, suspend, extend or renew any of the
terms of the Loan Documents (and the Borrower hereby waives any notice of any of the foregoing), and that the Loan Documents may
be amended, supplemented or modified by the Bank and the other signatory parties and that the Bank may resort to any Collateral
in such order and manner as it may think fit, or accept the assignment, substitution, exchange, pledge, or release of all or any
portion of any Collateral, for such consideration, or none, as it may require, without in any way affecting the validity of any
liens over or other security interest in the remainder of any such Collateral (or the priority thereof or the position of any
subordinate holder of any lien or other security interest with respect thereto); and any action taken by the Bank pursuant to
the foregoing shall in no way be construed as a waiver or release of any right or remedy of the Bank, or of any Event of Default,
or of any liability or obligation of the Borrower, under any of the Loan Documents.

 

(d)
Default Rate. Upon an Event of Default or after the Maturity Date, whether or not the Bank has elected to accelerate the
indebtedness evidenced by the Note, the Loan shall bear interest, at a rate of five (5%) over the interest rate provided for by
the Note (the “Default Rate”), but in no event more than the highest rate permitted by the applicable usury
law in respect of the Borrower, until the unpaid balance of the Principal Sum, interest and any charges shall have been paid in
full. Borrower acknowledges that (i) the Default Rate is a material inducement to the Bank to make the Loan; (ii) the Bank would
not have made the Loan in the absence of the agreement of Borrower to pay the Default Rate; (iii) the Default Rate represents
compensation for increased risk to the Bank that the Loan will not be repaid; and (iv) the Default Rate is not a penalty and represents
a reasonable estimate of (a) the cost to the Bank in allocating its resources (both personnel and financial) to the ongoing review,
monitoring, administration and collection of the Loan, and (b) compensation to the Bank for losses that are difficult to ascertain.

 

(e)
Costs and Expenses. Following the occurrence of any Event of Default, the Borrower shall pay upon demand all reasonable
costs and expenses (including all reasonable amounts paid to attorneys, accountants, real estate brokers, appraisers, and other
advisors employed by the Bank), incurred by the Bank in the successful exercise of any of its rights, remedies or powers under
any of the Loan Documents, as a secured or unsecured creditor, as the case may be of the Borrower, any general partner of the
Borrower or any other Obligor in any federal or state bankruptcy proceedings, or with respect to any Collateral with respect to
such Event of Default, and any amount thereof not paid promptly following demand therefor together with interest thereon at the
Default Rate from the date of such demand, shall become part of the Loan and shall be secured by the Security Agreement and all
other Collateral. In connection with and as part of the foregoing, in the event that any of the Loan Documents is placed in the
hands of an attorney for the collection of any sum payable thereunder, the Borrower agrees to pay reasonable attorneys’ fees for
the collection of the amount being claimed under such Loan Document, as well as all costs, disbursements, and allowances provided
by law, the payment of which sums shall be secured by the Security Agreement and all other Collateral.

 

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(f)
Jurisdiction; Venue. The Borrower agrees that any action or proceeding against it to enforce the Loan may be commenced
in state or federal court located in the State of Maine.

 

(g)
JURY TRIAL WAIVER. THE BORROWER AND THE BANK HEREBY WAIVE ANY AND ALL RIGHTS THAT THEY MAY HAVE NOW OR HEREAFTER HAVE UNDER
THE LAWS OF THE UNITED STATES OF AMERICA OR ANY STATE TO A TRIAL BY JURY OF ANY AND ALL ISSUES ARISING EITHER DIRECTLY OR INDIRECTLY
IN ANY ACTION OR PROCEEDING BETWEEN THE BORROWER AND THE BANK OR THEIR RESPECTIVE SUCCESSORS AND ASSIGNS, OUT OF OR IN ANY WAY
CONNECTED WITH THE LOAN AGREEMENT. IT IS INTENDED THAT THIS WAIVER OF JURY TRIAL SHALL APPLY TO ANY AND ALL CLAIMS, DEFENSES,
RIGHTS, AND/OR COUNTERCLAIMS IN ANY ACTION OR PROCEEDING.

 

10.
Further Assurances; Corrections. The Borrower shall, within five (5) days of the Bank’s request, execute any
documents, provide any lien or other searches, and do anything that the Bank determines to be reasonably necessary to establish,
perfect, assure, or maintain the existence and priorities of, the Bank’s liens against the property, the reasonable costs
of so doing to be paid by the Borrower. In case of the occurrence of any errors in the execution of the Loan Documents, the Borrower
authorizes the Bank to make all necessary corrections in order to cause the Loan Documents to conform to the terms and conditions
agreed to by the Borrower and the Bank.

 

11.
Material Adverse Change means any set of circumstances or events which:

 

(a)
has any material adverse effect whatsoever upon the validity or enforceability of the Loan Documents,

 

(b)
is material and adverse to the business, properties, assets, financial condition, or results of operations of the Borrower taken
as whole,

 

(c)
impairs materially the ability of the Borrower taken as a whole to duly and punctually pay or perform its obligations under the
Loan Documents, or

 

(d)
impairs materially the ability of the Bank to enforce its legal remedies pursuant to the Loan Documents.

 

12.
Insurance.

 

(a)
Insurance. Borrower shall maintain hazard insurance on the Collateral in such amounts and for such coverage as shall be
satisfactory in all respects to the Bank, provided that at no time shall coverage be less than 80% of insurable value for the
term of the Loan and shall provide the Bank with any policies, endorsements and any riders thereto as the Bank may require. The
Bank shall be designated as “Mortgagee” under standard Maine Mortgage Clause for all real estate and “Loss Payee”
for personal property. Policy endorsement shall include a 10-day cancellation notice clause to the Bank.

 

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Borrower
shall provide evidence of General Liability Insurance, Loss of rents Insurance (if applicable) and All-Risk-Hazard Insurance covering
the improvements, and such coverages must be in amounts reasonably satisfactory in all respects to the Bank, provided that at
no time shall coverage be less than 80% of insurable value for the term of the Loan, and such insurance must be maintained at
all times during the life of the Loan. The insurance company must be reasonably acceptable to the Bank and “Gorham Savings
Bank, (ISAOA/ATIMA)” shall be named in the mortgagee loss payable clause with the address of “Gorham Savings Bank.”
Each policy shall provide that it cannot be canceled, reduced or terminated without ten (10) days prior written notice to Bank.

 

(b)
Insurance Mailing Address. All required insurance policies and/or notices shall be mailed to:

 

Gorham
Savings Bank (ISAOA/ATIMA)

Attn:
Business Services

10
Wentworth Drive

Gorham,
Maine 04038

 

13.
Miscellaneous.

 

(a)
Time of the Essence. All dates and times for the performance of the Borrower’s obligations set forth herein shall be deemed
to be of the essence of this Agreement.

 

(b)
Severability. In the event that for any reason one or more of the provisions of this Agreement or their application to
any person or circumstance shall be held to be invalid, illegal or unenforceable in any respect or to any extent, such provisions
shall nevertheless remain valid, legal and enforceable in all other respects and to such extent as may be permissible. In addition,
any such invalidity, illegality or unenforceability shall not affect any other provision hereof, but this Agreement shall be construed
as if such invalid, illegal or unenforceable provision had never been contained herein.

 

(c)
Successors and Assigns. This Agreement inures to the benefit of and binds the parties hereto and their respective successors
and assigns, and the words “Borrower” and “Bank” whenever occurring herein shall be deemed to include such
respective successors and assigns. However, the Borrower shall not voluntarily, or by operation of law, assign or transfer any
interest which it may have under this Agreement or convey the property, or any part thereof, without the prior written approval
of the Bank. The Bank may assign or otherwise transfer the Loan and any or all of the Loan Documents to any other person, and
such other person shall thereupon become vested with all of the benefits in respect thereof granted to the Bank herein or otherwise.
The Bank shall have the right to sell participations in the Loan to any other persons or entities without the consent of or notice
to the Borrower. Without the consent of or notice to the Borrower, the Bank may disclose to any prospective purchaser of any securities
issued or to be issued by the Bank, and any prospective or actual purchaser of any participation or other interest in the Loan
or any other loans made by the Bank to the Borrower, any financial or other information, data or material in the Bank’s possession
relating to the Borrower or the Loan.

 

    11

     

    

 

(d)
Notices. All notices required or desired to be given to either of the parties hereunder shall be in writing and shall be
deemed to have been sufficiently given for all purposes when presented personally to such party or sent by certified or registered
mail, return receipt requested, to such party at its address set forth below:

 

	The Borrower:	ImmuCell Corporation
	 	Attn: Michael Brigham
	 	56 Evergreen Drive
	 	Portland, ME 04013

 

	with a copy to	David Champoux, Esq.
	Borrower’s attorney:	Pierce Atwood LLP
	 	254 Merrill’s Wharf
	 	Portland, ME 04101
	 	 
	The Bank:	Gorham Savings Bank
	 	Attn:
        Nicholas Weightman

10
Wentworth Drive

Gorham,
Maine 04038

	 	 
	with a copy to	Adam S. Taylor, Esq.
	the Bank’s attorney:	Taylor, McCormack & Frame, LLC
	 	30 Milk Street, 5th Floor
	 	Portland, ME 04101

 

Such
notice shall be sent certified or registered mail, return receipt requested or by Federal Express and shall be deemed to be given
upon receipt or upon refusal of acceptance. Any notice of any change in such address shall also be given in the manner set forth
above. Whenever the giving of notice is required, the giving of such notice may be waived in writing by the party entitled to
receive such notice.

 

    12

     

    

 

(e)
Definitions; Number and Gender. For purposes of this Agreement, the singular shall be deemed to include the plural and
the neuter shall be deemed to include the masculine and feminine, as the context may require.

 

(f)
Conflicts Between Instruments. In the event of any conflict between the provisions of this Agreement and the provisions
of any of the other Loan Documents, the provisions of this Agreement shall prevail.

 

(g)
Captions. The captions or headings of the paragraphs of this Agreement are for convenience only and shall not control or
affect the meaning or construction of any of the terms or provisions of this Agreement.

 

(h)
Governing Law; Consent to Jurisdiction. To the extent permitted by the laws of the State of Maine, this Agreement and the
rights of the parties hereunder shall be governed by the laws of the State of Maine applicable to contracts made and to be performed
in the State of Maine. The parties hereby consent and submit to the exclusive jurisdiction of the Superior Court for Cumberland
County or the United States District Court for the District of Maine, located in Portland, for the adjudication of any rights
or claims arising under this Agreement. The Agreement hereby waives any objection that it may now or hereafter have to the venue
of any such suit or any such court or that such suit was brought in an inconvenient court.

 

SIGNATURES
TO FOLLOW ON NEXT PAGE

 

    13

     

    

 

IN
WITNESS WHEREOF, the Borrower and the Bank have executed or caused this Agreement to be executed on the date first above set
forth.

 

	WITNESS	 	GORHAM
    SAVINGS BANK
	 	 	 
	 	 	 
	 	 	By:
    Nicholas Weightman 
	 	 	Its:
    Executive Vice President
	 	 	 
	 	 	IMMUCELL
    CORPORATION
	 	 	 
	/s/
    Bayleigh Canonico	 	/s/
    Michael F. Brigham
	 	 	By:
    Michael F. Brigham  
	 	 	Its
    President & CEO

 

 

14EX-4.1

 Exhibit 4.1 

TABLE OF CONTENTS 

BUSINESS CORPORATIONS ACT 

ARTICLES 
 of 

ABSOLUTE SOFTWARE CORPORATION 
  

							
			
	 	  	 	  	 Page
	 
		
	ARTICLE 1	  			
	INTERPRETATION	  			
			
	 1.1
	  	Definitions	  	 	7	 
			
	 1.2
	  	Business Corporations Act and Interpretation Act Definitions Applicable	  	 	7	 
		
	ARTICLE 2	  			
	SHARES AND SHARE CERTIFICATES	  			
			
	 2.1
	  	Authorized Share Structure	  	 	7	 
			
	 2.2
	  	Form of Share Certificate	  	 	8	 
			
	 2.3
	  	Shareholder Entitled to Certificate or Acknowledgement	  	 	8	 
			
	 2.4
	  	Delivery by Mail	  	 	8	 
			
	 2.5
	  	Replacement of Worn Out or Defaced Certificate or Acknowledgement	  	 	8	 
			
	 2.6
	  	Replacement of Lost, Stolen or Destroyed Certificate or Acknowledgement	  	 	8	 
			
	 2.7
	  	Splitting Share Certificates	  	 	8	 
			
	 2.8
	  	Certificate Fee	  	 	9	 
			
	 2.9
	  	Recognition of Trusts	  	 	9	 
		
	ARTICLE 3	  			
	ISSUE OF SHARES	  			
			
	 3.1
	  	Directors Authorized	  	 	9	 
			
	 3.2
	  	Commissions and Discounts	  	 	9	 
			
	 3.3
	  	Brokerage	  	 	9	 
			
	 3.4
	  	Conditions of Issue	  	 	9	 
			
	 3.5
	  	Share Purchase Warrants and Rights	  	 	9	 
		
	ARTICLE 4	  			
	SHARE REGISTERS	  			
			
	 4.1
	  	Central Securities Register	  	 	10	 
			
	 4.2
	  	Closing Register	  	 	10	 
		
	ARTICLE 5	  			
	SHARE TRANSFERS	  			
			
	 5.1
	  	Registering Transfers	  	 	10	 
			
	 5.2
	  	Form of Instrument of Transfer	  	 	10	 
			
	 5.3
	  	Transferor Remains Shareholder	  	 	10	 
			
	 5.4
	  	Signing of Instrument of Transfer	  	 	10	 

  
 - ii - 

 

							
			
	 5.5
	  	Enquiry as to Title Not Required	  	 	11	 
			
	 5.6
	  	Transfer Fee	  	 	11	 
		
	ARTICLE 6	  			
	TRANSMISSION OF SHARES	  			
			
	 6.1
	  	Legal Personal Representative Recognized on Death	  	 	11	 
			
	 6.2
	  	Rights of Legal Personal Representative	  	 	11	 
		
	ARTICLE 7	  			
	PURCHASE OF SHARES	  			
			
	 7.1
	  	Company Authorized to Purchase Shares	  	 	11	 
			
	 7.2
	  	Purchase When Insolvent	  	 	12	 
			
	 7.3
	  	Sale and Voting of Purchased Shares	  	 	12	 
		
	ARTICLE 8	  			
	BORROWING POWERS	  			
			
	 8.1
	  	Borrowing Powers	  	 	12	 
		
	ARTICLE 9	  			
	ALTERATIONS	  			
			
	 9.1
	  	Alteration of Authorized Share Structure	  	 	12	 
			
	 9.2
	  	Special Rights and Restrictions	  	 	13	 
			
	 9.3
	  	Change of Name	  	 	13	 
			
	 9.4
	  	Other Alterations	  	 	13	 
		
	ARTICLE 10	  			
	MEETINGS OF SHAREHOLDERS	  			
			
	 10.1
	  	Annual General Meetings	  	 	13	 
			
	 10.2
	  	Resolution Instead of Annual General Meeting	  	 	14	 
			
	 10.3
	  	Calling of Meetings of Shareholders	  	 	14	 
			
	 10.4
	  	Notice for Meetings of Shareholders	  	 	14	 
			
	 10.5
	  	Record Date for Notice	  	 	14	 
			
	 10.6
	  	Record Date for Voting	  	 	14	 
			
	 10.7
	  	Failure to Give Notice and Waiver of Notice	  	 	14	 
			
	 10.8
	  	Notice of Special Business at Meetings of Shareholders	  	 	15	 
			
	 10.8
	  	Class Meetings and Series Meetings of Shareholders	  	 	15	 
		
	ARTICLE 11	  			
	PROCEEDINGS AT MEETINGS OF SHAREHOLDERS	  			
			
	 11.1
	  	Special Business	  	 	15	 
			
	 11.2
	  	Special Majority	  	 	16	 
			
	 11.3
	  	Quorum	  	 	16	 
			
	 11.4
	  	One Shareholder May Constitute Quorum	  	 	16	 
			
	 11.5
	  	Other Persons May Attend	  	 	16	 
			
	 11.6
	  	Requirement of Quorum	  	 	16	 
			
	 11.7
	  	Lack of Quorum	  	 	16	 
			
	 11.8
	  	Lack of Quorum at Succeeding Meeting	  	 	17	 

  
 - iii - 

 

							
			
	 11.9
	  	Chair	  	 	17	 
			
	 11.10
	  	Selection of Alternate Chair	  	 	17	 
			
	 11.11
	  	Adjournments	  	 	17	 
			
	 11.12
	  	Notice of Adjourned Meeting	  	 	17	 
			
	 11.13
	  	Decision by Show of Hands or Poll	  	 	17	 
			
	 11.14
	  	Declaration of Result	  	 	17	 
			
	 11.16
	  	Casting Vote	  	 	18	 
			
	 11.17
	  	Manner of Taking Poll	  	 	18	 
			
	 11.18
	  	Demand for Poll on Adjournment	  	 	18	 
			
	 11.19
	  	Chair Must Resolve Dispute	  	 	18	 
			
	 11.20
	  	Casting of Votes	  	 	18	 
			
	 11.21
	  	Demand for Poll	  	 	18	 
			
	 11.22
	  	Demand for Poll Not to Prevent Continuance of Meeting	  	 	18	 
			
	 11.23
	  	Retention of Ballots and Proxies	  	 	18	 
			
	 11.24
	  	Meeting by Telephone or Other Communications Medium	  	 	18	 
		
	ARTICLE 12	  			
	VOTES OF SHAREHOLDERS	  			
			
	 12.1
	  	Number of Votes by Shareholder or by Shares	  	 	19	 
			
	 12.2
	  	Votes of Persons in Representative Capacity	  	 	19	 
			
	 12.3
	  	Votes by Joint Holders	  	 	19	 
			
	 12.4
	  	Legal Personal Representatives as Joint Shareholders	  	 	19	 
			
	 12.5
	  	Representative of a Corporate Shareholder	  	 	19	 
			
	 12.6
	  	Proxy Provisions Do Not Apply to All Companies	  	 	20	 
			
	 12.7
	  	Appointment of Proxy Holders	  	 	20	 
			
	 12.8
	  	Alternate Proxy Holders	  	 	20	 
			
	 12.9
	  	When Proxy Holder Need Not Be Shareholder	  	 	20	 
			
	 12.10
	  	Deposit of Proxy	  	 	21	 
			
	 12.11
	  	Validity of Proxy Vote	  	 	21	 
			
	 12.12
	  	Form of Proxy	  	 	21	 
			
	 12.13
	  	Revocation of Proxy	  	 	22	 
			
	 12.14
	  	Revocation of Proxy Must Be Signed	  	 	22	 
			
	 12.15
	  	Chair May Determine Validity of Proxy	  	 	22	 
			
	 12.16
	  	Production of Evidence of Authority to Vote	  	 	22	 
		
	ARTICLE 13	  			
	DIRECTORS	  			
			
	 13.1
	  	First Directors; Number of Directors	  	 	23	 
			
	 13.2
	  	Change in Number of Directors	  	 	23	 
			
	 13.3
	  	Directors’ Acts Valid Despite Vacancy	  	 	23	 
			
	 13.4
	  	Qualifications of Directors	  	 	23	 
			
	 13.5
	  	Remuneration of Directors	  	 	23	 

  
 - iv - 

 

							
			
	 13.6
	  	Reimbursement of Expenses of Directors	  	 	23	 
			
	 13.7
	  	Special Remuneration for Directors	  	 	23	 
			
	 13.8
	  	Gratuity, Pension or Allowance on Retirement of Director	  	 	24	 
		
	ARTICLE 14	  			
	ELECTION AND REMOVAL OF DIRECTORS	  			
			
	 14.1
	  	Election at Annual General Meeting	  	 	24	 
			
	 14.2
	  	Consent to be a Director	  	 	24	 
			
	 14.3
	  	Failure to Elect or Appoint Directors	  	 	24	 
			
	 14.4
	  	Places of Retiring Directors Not Filled	  	 	24	 
			
	 14.5
	  	Directors May Fill Casual Vacancies	  	 	25	 
			
	 14.6
	  	Remaining Directors Power to Act	  	 	25	 
			
	 14.7
	  	Shareholders May Fill Vacancies	  	 	25	 
			
	 14.8
	  	Additional Directors	  	 	25	 
			
	 14.9
	  	Ceasing to be a Director	  	 	25	 
			
	 14.10
	  	Removal of Director by Shareholders	  	 	25	 
			
	 14.11
	  	Removal of Director by Directors	  	 	26	 
		
	ARTICLE 15	  			
	POWERS AND DUTIES OF DIRECTORS	  			
			
	 15.1
	  	Powers of Management	  	 	26	 
			
	 15.2
	  	Appointment of Attorney of Company	  	 	26	 
		
	ARTICLE 16	  			
	DISCLOSURE OF INTEREST OF DIRECTORS	  			
			
	 16.1
	  	Obligation to Account for Profits	  	 	26	 
			
	 16.2
	  	Restrictions on Voting by Reason of Interest	  	 	26	 
			
	 16.3
	  	Interested Director Counted in Quorum	  	 	26	 
			
	 16.4
	  	Disclosure of Conflict of Interest or Property	  	 	27	 
			
	 16.5
	  	Director Holding Other Office in the Company	  	 	27	 
			
	 16.6
	  	No Disqualification	  	 	27	 
			
	 16.7
	  	Professional Services by Director or Officer	  	 	27	 
			
	 16.8
	  	Director or Officer in Other Corporations	  	 	27	 
		
	ARTICLE 17	  			
	PROCEEDINGS OF DIRECTORS	  			
			
	 17.1
	  	Meetings of Directors	  	 	27	 
			
	 17.2
	  	Voting at Meetings	  	 	27	 
			
	 17.3
	  	Chair of Meetings	  	 	27	 
			
	 17.4
	  	Meetings by Telephone or Other Communications Medium	  	 	28	 
			
	 17.5
	  	Calling of Meetings	  	 	28	 
			
	 17.6
	  	Notice of Meetings	  	 	28	 
			
	 17.7
	  	When Notice Not Required	  	 	28	 
			
	 17.8
	  	Meeting Valid Despite Failure to Give Notice	  	 	28	 

  
 - v - 

 

							
			
	 17.9
	  	Waiver of Notice of Meetings	  	 	29	 
			
	 17.10
	  	Quorum	  	 	29	 
			
	 17.11
	  	Validity of Acts Where Appointment Defective	  	 	29	 
			
	 17.12
	  	Consent Resolutions in Writing	  	 	29	 
		
	ARTICLE 18	  			
	EXECUTIVE AND OTHER COMMITTEES	  			
			
	 18.1
	  	Appointment and Powers of Executive Committee	  	 	29	 
			
	 18.2
	  	Appointment and Powers of Other Committees	  	 	30	 
			
	 18.3
	  	Obligations of Committees	  	 	30	 
			
	 18.4
	  	Powers of Board	  	 	30	 
			
	 18.5
	  	Committee Meetings	  	 	30	 
		
	ARTICLE 19	  			
	OFFICERS	  			
			
	 19.1
	  	Directors May Appoint Officers	  	 	31	 
			
	 19.2
	  	Functions, Duties and Powers of Officers	  	 	31	 
			
	 19.3
	  	Qualifications	  	 	31	 
			
	 19.4
	  	Remuneration and Terms of Appointment	  	 	31	 
		
	ARTICLE 20	  			
	INDEMNIFICATION	  			
			
	 20.1
	  	Definitions	  	 	32	 
			
	 20.2
	  	Mandatory Indemnification of Directors and Former Directors	  	 	32	 
			
	 20.3
	  	Indemnification of Other Persons	  	 	32	 
			
	 20.4
	  	Non-Compliance with Business Corporations Act	  	 	32	 
			
	 20.5
	  	Company May Purchase Insurance	  	 	32	 
		
	ARTICLE 21	  			
	DIVIDENDS	  			
			
	 21.1
	  	Payment of Dividends Subject to Special Rights	  	 	33	 
			
	 21.2
	  	Declaration of Dividends	  	 	33	 
			
	 21.4
	  	Record Date	  	 	33	 
			
	 21.5
	  	Manner of Paying Dividend	  	 	33	 
			
	 21.6
	  	Settlement of Difficulties	  	 	33	 
			
	 21.7
	  	When Dividend Payable	  	 	33	 
			
	 21.8
	  	Dividends to be Paid in Accordance with Number of Shares	  	 	33	 
			
	 21.9
	  	Receipt by Joint Shareholders	  	 	33	 
			
	 21.10
	  	Dividend Bears No Interest	  	 	34	 
			
	 21.11
	  	Fractional Dividends	  	 	34	 
			
	 21.12
	  	Payment of Dividends	  	 	34	 
			
	 21.13
	  	Capitalization of Surplus	  	 	34	 
			
	 21.14
	  	Unclaimed Dividends	  	 	34	 

  
 - vi - 

 

							
		
	ARTICLE 22	  			
	DOCUMENTS, RECORDS AND REPORTS	  			
			
	 22.1
	  	Recording of Financial Affairs	  	 	34	 
			
	 22.2
	  	Inspection of Accounting Records	  	 	34	 
		
	ARTICLE 23	  			
	NOTICES	  			
			
	 23.1
	  	Method of Giving Notice	  	 	34	 
			
	 23.2
	  	Deemed Receipt	  	 	35	 
			
	 23.3
	  	Certificate of Sending	  	 	36	 
			
	 23.4
	  	Notice to Joint Shareholders	  	 	36	 
			
	 23.5
	  	Notice to Trustees	  	 	36	 
			
	 23.6
	  	Undelivered Notices	  	 	36	 
		
	ARTICLE 24	  			
	SEAL AND EXECUTION OF DOCUMENTS	  			
			
	 24.1
	  	Who May Attest Seal	  	 	36	 
			
	 24.2
	  	Sealing Copies	  	 	37	 
			
	 24.3
	  	Mechanical Reproduction of Seal	  	 	37	 
			
	 24.4
	  	Execution of Documents Generally	  	 	37	 
		
	ARTICLE 25	  			
	PROHIBITIONS	  			
			
	 25.1
	  	Definitions	  	 	37	 
			
	 25.2
	  	Application	  	 	38	 
			
	 25.3
	  	Consent Required for Transfer of Shares or Designated Securities	  	 	38	 

  
 - 7 - 

 

 Certificate of Incorporation No. BC0458780 

BUSINESS CORPORATIONS ACT 

ARTICLES 
 of 

ABSOLUTE SOFTWARE CORPORATION 

ARTICLE 1 

INTERPRETATION 

1.1    Definitions. In these Articles (the “Articles”), unless the context otherwise requires: 

“board of directors”, “directors” and “board” mean the directors or sole director of the
Company for the time being; 
 “Business Corporations Act” means the Business Corporations Act (British
Columbia) from time to time in force and all amendments thereto and includes all regulations and amendments thereto made pursuant to that Act; 

“Interpretation Act” means the Interpretation Act (British Columbia) from time to time in force and all
amendments thereto and includes all regulations and amendments thereto made pursuant to that Act; 
 “legal personal
representative” means the personal or other legal representative of a shareholder; 
 “registered address” of a
shareholder means the shareholder’s address as recorded in the central securities register; 
 “seal” means the seal
of the Company, if any; and 
 “Securities Act” means the Securities Act (British Columbia) from time
to time in force and all amendments thereto and includes all regulations and amendments thereto made pursuant to the Act; 

1.2    Business Corporations Act and Interpretation Act Definitions Applicable. The definitions in the Business
Corporations Act and the definitions and rules of construction in the Interpretation Act, with the necessary changes, so far as applicable, and unless the context requires otherwise, apply to these Articles as if they were an enactment.
If there is a conflict between a definition in the Business Corporations Act and a definition or rule in the Interpretation Act relating to a term used in these Articles, the definition in the Business Corporations Act will
prevail in relation to the use of the term in these Articles. If there is a conflict between these Articles and the Business Corporations Act, the Business Corporations Act will prevail. 

ARTICLE 2 
 SHARES AND
SHARE CERTIFICATES 
 2.1    Authorized Share Structure. The authorized share structure of the Company consists
of shares of the class or classes and series, if any, described in the Notice of Articles of the Company. 

  
 - 8 - 

 

 2.2    Form of Share Certificate. Each share certificate issued by the
Company must comply with, and be signed as required by, the Business Corporations Act. 
 2.3    Shareholder Entitled
to Certificate or Acknowledgement. Unless the shares of which the shareholder is the registered owner are uncertificated shares within the meaning of the Business Corporations Act, each shareholder is entitled, without charge, to
(a) one share certificate representing the shares of each class or series of shares registered in the shareholder’s name or (b) a non-transferable written acknowledgement of the
shareholder’s right to obtain such a share certificate, provided that in respect of a share held jointly by several persons, the Company is not bound to issue more than one share certificate and delivery of a share certificate for a share to
one of several joint shareholders or to one of the shareholders’ duly authorized agents will be sufficient delivery to all. 

2.4    Delivery by Mail. Any share certificate or non-transferable written
acknowledgement of a shareholder’s right to obtain a share certificate may be sent to the shareholder by mail at the shareholder’s registered address and neither the Company nor any director, officer or agent of the Company (including the
Company’s transfer agent or legal counsel) is liable for any loss to the shareholder because the share certificate or acknowledgement is lost in the mail or stolen. 

2.5    Replacement of Worn Out or Defaced Certificate or Acknowledgement. If the directors are satisfied that a share
certificate or a non-transferable written acknowledgement of the shareholder’s right to obtain a share certificate is worn out or defaced, they must, on production to them of the share certificate or
acknowledgement, as the case may be, and on such other terms, if any, as they think fit: 
  

	 	(a)	 order the share certificate or acknowledgement, as the case may be, to be cancelled; and 

 

	 	(b)	 issue a replacement share certificate or acknowledgement, as the case may be. 

2.6    Replacement of Lost, Stolen or Destroyed Certificate or Acknowledgement. If a share certificate or a non-transferable written acknowledgement of a shareholder’s right to obtain a share certificate is lost, stolen or destroyed, a replacement share certificate or acknowledgement, as the case may be, must be
issued to the person entitled to that share certificate or acknowledgement, as the case may be, if the directors receive: 
  

	 	(a)	 proof satisfactory to them that the share certificate or acknowledgement is lost, stolen or destroyed; and

  

	 	(b)	 any indemnity the directors consider adequate. 

2.7    Splitting Share Certificates. If a shareholder surrenders a share certificate to the Company with a written
request that the Company issue in the shareholder’s name two or more share certificates, each representing a specified number of shares and in the aggregate representing the same number of shares as the share certificate so surrendered, the
Company must cancel the surrendered share certificate and issue replacement share certificates in accordance with that request. 

  
 - 9 - 

 

 2.8    Certificate Fee. There must be paid to the Company, in relation
to the issue of any share certificate under Articles 2.5, 2.6 or 2.7, the amount, if any and which must not exceed the amount prescribed under the Business Corporations Act, determined by the directors. 

2.9    Recognition of Trusts. Except as required by law or statute or these Articles, no person will be recognized by
the Company as holding any share upon any trust, and the Company is not bound by or compelled in any way to recognize (even when having notice thereof) any equitable, contingent, future or partial interest in any share or fraction of a share or
(except as by law or statute or these Articles provided or as ordered by a court of competent jurisdiction) any other rights in respect of any share except an absolute right to the entirety thereof in the shareholder. 

ARTICLE 3 
 ISSUE OF
SHARES 
 3.1    Directors Authorized. Subject to the Business Corporations Act and the rights of the
holders of issued shares of the Company, the Company may issue, allot, sell or otherwise dispose of the unissued shares, and issued shares held by the Company, at the times, to the persons, including directors, in the manner, on the terms and
conditions and for the issue prices (including any premium at which shares with par value may be issued) that the directors may determine. The issue price for a share with par value must be equal to or greater than the par value of the share. 

3.2    Commissions and Discounts. The Company may at any time, pay a reasonable commission or allow a reasonable
discount to any person in consideration of that person purchasing or agreeing to purchase shares of the Company from the Company or any other person or procuring or agreeing to procure purchasers for shares of the Company. 

3.3    Brokerage. The Company may pay such brokerage fee or other consideration as may be lawful for or in connection
with the sale or placement of its securities. 
 3.4    Conditions of Issue. Except as provided for by the
Business Corporations Act, no share may be issued until it is fully paid. A share is fully paid when: 
  

	 	(a)	 consideration is provided to the Company for the issue of the share by one or more of the following:

  

	 	(i)	 past services performed for the Company; 

 

	 	(ii)	 property; 

  

	 	(iii)	 money; and 

  

	 	(b)	 the value of the consideration received by the Company equals or exceeds the issue price set for the share
under Article 3.1. 

 3.5    Share Purchase Warrants and Rights. Subject to the Business
Corporations Act, the Company may issue share purchase warrants, options and rights upon such terms and conditions as the directors determine, which share purchase warrants, options and rights may be issued alone or in conjunction with
debentures, debenture stock, bonds, shares or any other securities issued or created by the Company from time to time. 

  
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 ARTICLE 4 

SHARE REGISTERS 

4.1    Central Securities Register. As required by and subject to the Business Corporations Act, the Company
must maintain in British Columbia a central securities register. The directors may, subject to the Business Corporations Act, appoint an agent to maintain the central securities register. The directors may also appoint one or more agents,
including the agent which keeps the central securities register, as transfer agent for its shares or any class or series of its shares, as the case may be, and the same or another agent as registrar for its shares or such class or series of its
shares, as the case may be. The directors may terminate such appointment of any agent at any time and may appoint another agent in its place. 

4.2    Closing Register. The Company must not at any time close its central securities register. 

ARTICLE 5 
 SHARE
TRANSFERS 
 5.1    Registering Transfers. A transfer of a share of the Company must not be registered unless:

  

	 	(a)	 a duly signed instrument of transfer in respect of the share has been received by the Company;

  

	 	(b)	 if a share certificate has been issued by the Company in respect of the share to be transferred, that share
certificate has been surrendered to the Company; and 

  

	 	(c)	 if a non-transferable written acknowledgement of the shareholder’s
right to obtain a share certificate has been issued by the Company in respect of the share to be transferred, that acknowledgement has been surrendered to the Company. 

5.2    Form of Instrument of Transfer. The instrument of transfer in respect of any share of the Company must be
either in the form, if any, on the back of the Company’s share certificates or in any other form that may be approved by the directors from time to time. 

5.3    Transferor Remains Shareholder. Except to the extent that the Business Corporations Act otherwise
provides, the transferor of shares is deemed to remain the holder of the shares until the name of the transferee is entered in a securities register of the Company in respect of the transfer. 

5.4    Signing of Instrument of Transfer. If a shareholder, or his or her duly authorized attorney, signs an
instrument of transfer in respect of shares registered in the name of the shareholder, the signed instrument of transfer constitutes a complete and sufficient authority to the Company and its directors, officers and agents to register the number of
shares specified in the instrument of transfer or specified in any other manner, or, if no number is specified, all the shares represented by the share certificates or set out in the written acknowledgements deposited with the instrument of
transfer: 
  

	 	(a)	 in the name of the person named as transferee in that instrument of transfer; or 

 

	 	(b)	 if no person is named as transferee in that instrument of transfer, in the name of the person on whose behalf
the instrument is deposited for the purpose of having the transfer registered. 

  
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 5.5    Enquiry as to Title Not Required. Neither the Company nor any
director, officer or agent of the Company is bound to inquire into the title of the person named in the instrument of transfer as transferee or, if no person is named as transferee in the instrument of transfer, of the person on whose behalf the
instrument is deposited for the purpose of having the transfer registered or is liable for any claim related to registering the transfer by the shareholder or by any intermediate owner or holder of the shares, of any interest in the shares, of any
share certificate representing such shares or of any written acknowledgement of a right to obtain a share certificate for such shares. 

5.6    Transfer Fee. There must be paid to the Company, in relation to the registration of any transfer, the amount,
if any, determined by the directors. 
 ARTICLE 6 

TRANSMISSION OF SHARES 

6.1    Legal Personal Representative Recognized on Death. In case of the death of a shareholder, the legal personal
representative, or if the shareholder was a joint holder, the surviving joint holder, will be the only person recognized by the Company as having any title to the shareholder’s interest in the shares. Before recognizing a person as a legal
personal representative, the directors may require proof of appointment by a court of competent jurisdiction, a grant of letters probate, letters of administration or such other evidence or documents as the directors consider appropriate. 

6.2    Rights of Legal Personal Representative. The legal personal representative has the same rights, privileges and
obligations that attach to the shares held by the shareholder, including the right to transfer the shares in accordance with these Articles, provided the documents required by the Business Corporations Act and the directors have been
deposited with the Company. 
 ARTICLE 7 

PURCHASE OF SHARES 

7.1    Company Authorized to Purchase Shares. Subject to Article 7.2, the special rights and restrictions
attached to the shares of any class or series and the Business Corporations Act, the Company may, if authorized by the directors, purchase or otherwise acquire any of its shares at the price and upon the terms determined by the directors.

  
 - 12 - 

 

 7.2    Purchase When Insolvent. The Company must not make a payment or
provide any other consideration to purchase or otherwise acquire any of its shares if there are reasonable grounds for believing that: 
  

	 	(a)	 the Company is insolvent; or 

 

	 	(b)	 making the payment or providing the consideration would render the Company insolvent. 

7.3    Sale and Voting of Purchased Shares. If the Company retains a share redeemed, purchased or otherwise acquired
by it, the Company may cancel, sell, gift or otherwise dispose of the share, but, while such share is held by the Company, it: 
  

	 	(a)	 is not entitled to vote the share at a meeting of its shareholders; 

 

	 	(b)	 must not pay a dividend in respect of the share; and 

 

	 	(c)	 must not make any other distribution in respect of the share. 

ARTICLE 8 
 BORROWING
POWERS 
 8.1    Borrowing Powers. The Company, if authorized by the directors, may: 

 

	 	(a)	 borrow money in the manner and amount, on the security, from the sources and on the terms and conditions that
the directors consider appropriate; 

  

	 	(b)	 issue bonds, debentures and other debt obligations either outright or as security for any liability or
obligation of the Company or any other person and at such discounts or premiums and on such other terms as they consider appropriate; 

  

	 	(c)	 guarantee the repayment of money by any other person or the performance of any obligation of any other person;
and 

  

	 	(d)	 mortgage, charge, whether by way of specific or floating charge, grant a security interest in, or give other
security on, the whole or any part of the present and future assets and undertaking of the Company. 

 ARTICLE 9

 ALTERATIONS 

9.1    Alteration of Authorized Share Structure. Subject to Article 9.2 and the Business Corporations Act, and
the special rights and restrictions attached to the shares of any class or series, the Company may by special resolution: 
  

	 	(a)	 create one or more classes or series of shares or, if none of the shares of a class or series of shares are
allotted or issued, eliminate that class or series of shares; 

  
 - 13 - 

 

	 	(b)	 increase, reduce or eliminate the maximum number of shares that the Company is authorized to issue out of any
class or series of shares or establish a maximum number of shares that the Company is authorized to issue out of any class or series of shares for which no maximum is established; 

 

	 	(c)	 subdivide or consolidate all or any of its unissued, or fully paid issued, shares; 

 

	 	(d)	 if the Company is authorized to issue shares of a class of shares with par value: 

 

	 	(i)	 decrease the par value of those shares; or 

 

	 	(ii)	 if none of the shares of that class of shares are allotted or issued, increase the par value of those shares;

  

	 	(e)	 change all or any of its unissued, or fully paid issued, shares with par value into shares without par value or
any of its unissued shares without par value into shares with par value; 

  

	 	(f)	 alter the identifying name of any of its shares; or 

 

	 	(g)	 otherwise alter its shares or authorized share structure when required or permitted to do so by the Business
Corporations Act. 

 9.2    Special Rights and Restrictions. Subject to the Business
Corporations Act and the special rights and restrictions attached to the shares of any class or series, the Company may by special resolution: 
  

	 	(a)	 create special rights or restrictions for, and attach those special rights or restrictions to, the shares of
any class or series of shares, whether or not any or all of those shares have been issued; or 

  

	 	(b)	 vary or delete any special rights or restrictions attached to the shares of any class or series of shares,
whether or not any or all of those shares have been issued. 

 9.3    Change of Name. The Company
may by special resolution authorize an alteration of its Notice of Articles in order to change its name. 
 9.4    Other
Alterations. If the Business Corporations Act does not specify the type of resolution and these Articles do not specify another type of resolution, the Company may by special resolution alter these Articles. 

ARTICLE 10 
 MEETINGS OF
SHAREHOLDERS 
 10.1    Annual General Meetings. Unless an annual general meeting is deferred or waived in
accordance with the Business Corporations Act, the Company must hold an annual general meeting at least once in each calendar year and not more than 15 months after the last annual reference date at such time and place as may be determined by
the directors. 

  
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 10.2    Resolution Instead of Annual General Meeting. If all the shareholders who are
entitled to vote at an annual general meeting consent by a unanimous resolution under the Business Corporations Act to all of the business that is required to be transacted at that annual general meeting, the annual general meeting is deemed
to have been held on the date of the unanimous resolution. The shareholders must, in any unanimous resolution passed under this Article 10.2, select as the Company’s annual reference date a date that would be appropriate for the holding of the
applicable annual general meeting. 
 10.3    Calling of Meetings of Shareholders. The directors may, whenever they
think fit, call a meeting of shareholders, which meetings may be held in or outside of the Province of British Columbia or at any place in or outside Canada. 

10.4    Notice for Meetings of Shareholders. The Company must send notice of the date, time and location of any
meeting of shareholders, in the manner provided in these Articles, or in such other manner, if any, as may be prescribed by ordinary resolution (whether previous notice of the resolution has been given or not), to each shareholder entitled to attend
the meeting, to each director and to the auditor of the Company, unless these Articles otherwise provide, at least the following number of days before the meeting: 
  

	 	(a)	 if and for so long as the Company is a public company, 21 days; 

 

	 	(b)	 otherwise, 10 days. 

10.5    Record Date for Notice. The directors may set a date as the record date for the purpose of determining
shareholders entitled to notice of any meeting of shareholders. The record date must not precede the date on which the meeting is to be held by more than two months or, in the case of a general meeting requisitioned by shareholders under the
Business Corporations Act, by more than four months. The record date must not precede the date on which the meeting is held by fewer than: 
  

	 	(a)	 if and for so long as the Company is a public company, 21 days; 

 

	 	(b)	 otherwise, 10 days. 

If no record date is set, the record date is 5 p.m. on the day immediately preceding the first date on which the notice is sent or, if no notice is sent, the
beginning of the meeting. 
 10.6    Record Date for Voting. The directors may set a date as the record date for
the purpose of determining shareholders entitled to vote at any meeting of shareholders. The record date must not precede the date on which the meeting is to be held by more than two months or, in the case of a general meeting requisitioned by
shareholders under the Business Corporations Act, by more than four months. If no record date is set, the record date is 5 p.m. on the day immediately preceding the first date on which the notice is sent or, if no notice is sent, the
beginning of the meeting. 
 10.7    Failure to Give Notice and Waiver of Notice. The accidental omission to send
notice of any meeting to, or the non-receipt of any notice by, any of the persons entitled to notice does not invalidate any proceedings at that meeting. Any person entitled to notice of a meeting of
shareholders may, in writing or otherwise, waive or reduce the period of notice of such meeting. 

  
 - 15 - 

 

 10.8    Notice of Special Business at Meetings of Shareholders. If a
meeting of shareholders is to consider special business within the meaning of Article 11.1, the notice of meeting must: 
  

	 	(a)	 state the general nature of the special business; and 

 

	 	(b)	 if the special business includes considering, approving, ratifying, adopting or authorizing any document or the
signing of or giving of effect to any document, have attached to it a copy of the document or state that a copy of the document will be available for inspection by shareholders: 

 

	 	(i)	 at the Company’s records office, or at such other reasonably accessible location in British Columbia as is
specified in the notice; and 

  

	 	(ii)	 during statutory business hours on any one or more specified days before the day set for the holding of the
meeting. 

 10.9    Class Meetings and Series Meetings of Shareholders. Unless otherwise specified in
these Articles, the provisions of these Articles relating to a meeting of shareholders will apply, with the necessary changes and so far as they are applicable, to a class meeting or a series meeting of shareholders holding a particular class or
series of shares. 
 ARTICLE 11 

PROCEEDINGS AT MEETINGS OF SHAREHOLDERS 

11.1    Special Business. At a meeting of shareholders, the following business is special business: 

 

	 	(a)	 at a meeting of shareholders that is not an annual general meeting, all business is special business except
business relating to the conduct of or voting at the meeting; 

  

	 	(b)	 at an annual general meeting, all business is special business except for the following: 

 

	 	(i)	 business relating to the conduct of or voting at the meeting; 

 

	 	(ii)	 consideration of any financial statements of the Company presented to the meeting; 

 

	 	(iii)	 consideration of any reports of the directors or auditor; 

 

	 	(iv)	 the setting or changing of the number of directors; 

 

	 	(v)	 the election or appointment of directors; 

 

	 	(vi)	 the appointment of an auditor; 

  
 - 16 - 

 

	 	(vii)	 the setting of the remuneration of an auditor; 

 

	 	(viii)	 business arising out of a report of the directors not requiring the passing of a special resolution or an
exceptional resolution; 

  

	 	(ix)	 any other business which, under these Articles or the Business Corporations Act, may be transacted at a
meeting of shareholders without prior notice of the business being given to the shareholders. 

11.2    Special Majority. The majority of votes required for the Company to pass a special resolution at a meeting of
shareholders is two-thirds of the votes cast on the resolution. 

11.3    Quorum. Subject to the special rights and restrictions attached to the shares of any class or series of
shares and Article 11.4, the quorum for the transaction of business at a meeting of shareholders is two persons who are, or who represent by proxy, shareholders who, in the aggregate, hold shares to which are attached at least 25% of the votes
attached to all of the issued shares of the Company entitled to be voted at the meeting. 
 11.4    One Shareholder May
Constitute Quorum. If there is only one shareholder entitled to vote at a meeting of shareholders: 
  

	 	(a)	 the quorum is one person who is, or who represents by proxy, that shareholder, and 

 

	 	(b)	 that shareholder, present in person or by proxy, may constitute the meeting. 

11.5    Other Persons May Attend. In addition to those persons who are entitled to vote at a meeting of the
shareholders, the only other persons entitled to be present at the meeting are the directors, the officers, any lawyer for the Company, the auditor of the Company, any other persons invited by the directors and any persons entitled or required under
the Business Corporations Act or these Articles to be present at a meeting of shareholders, but if any of those persons does attend a meeting of shareholders, that person is not to be counted in the quorum and is not entitled to vote at the
meeting unless that person is a shareholder or proxy holder entitled to vote at the meeting. 
 11.6    Requirement of
Quorum. No business, other than the election of a chair of the meeting and the adjournment of the meeting, may be transacted at any meeting of shareholders unless a quorum of shareholders entitled to vote is present at the commencement of
the meeting, but such quorum need not be present throughout the meeting. 
 11.7    Lack of Quorum. If, within one-half hour from the time set for the holding of a meeting of shareholders, a quorum is not present: 
  

	 	(a)	 in the case of a general meeting requisitioned by shareholders, the meeting is dissolved, and

  

	 	(b)	 in the case of any other meeting of shareholders, the meeting stands adjourned to the same day in the next week
at the same time and place. 

  
 - 17 - 

 

 11.8    Lack of Quorum at Succeeding Meeting. If, at the meeting to
which the meeting referred to in Article 11.7(b) was adjourned, a quorum is not present within one-half hour from the time set for the holding of the meeting, the person or persons present and being, or
representing by proxy, one or more shareholders entitled to attend and vote at the meeting constitute a quorum. 

11.9    Chair. The following individual is entitled to preside as chair at a meeting of shareholders: 

 

	 	(a)	 the chair of the board, if any; or 

 

	 	(b)	 if the chair of the board is absent or unwilling to act as chair of the meeting, the president, if any.

 11.10    Selection of Alternate Chair. If, at any meeting of shareholders, there is no chair
of the board or president present within 15 minutes after the time set for holding the meeting, or if the chair of the board and the president are unwilling to act as chair of the meeting, or if the chair of the board and the president have advised
the secretary, if any, or any director present at the meeting, that they will not be present at the meeting, the directors present must choose one of their number to be chair of the meeting or if all of the directors present decline to take the
chair or fail to so choose or if no director is present, the shareholders entitled to vote at the meeting who are present in person or by proxy may choose any person present at the meeting to chair the meeting. 

11.11    Adjournments. The chair of a meeting of shareholders may, and if so directed by the meeting must, adjourn
the meeting from time to time and from place to place, but no business may be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place. 

11.12    Notice of Adjourned Meeting. It is not necessary to give any notice of an adjourned meeting of shareholders
or of the business to be transacted at an adjourned meeting of shareholders except that, when a meeting is adjourned for 30 days or more, notice of the adjourned meeting must be given as in the case of the original meeting. 

11.13    Decision by Show of Hands or Poll. Subject to the Business Corporations Act, every motion put to a
vote at a meeting of shareholders will be decided on a show of hands, or the functional equivalent of a show of hands by means of electronic, telephonic or other communications facility unless a poll, before or on the declaration of the result of
the vote by show of hands or the functional equivalent of a show of hands, is directed by the chair or demanded by at least one shareholder entitled to vote who is present in person or by proxy. 

11.14    Declaration of Result. The chair of a meeting of shareholders must declare to the meeting the decision on
every question in accordance with the result of the show of hands (or the functional equivalent) or the poll, as the case may be, and that decision must be entered in the minutes of the meeting. A declaration of the chair that a resolution is
carried by the necessary majority or is defeated is, unless a poll is directed by the chair or demanded under Article 11.13, conclusive evidence without proof of the number or proportion of the votes recorded in favour of or against the resolution.

 11.15    [INTENTIONALLY DELETED] 

  
 - 18 - 

 

 11.16    Casting Vote. In the case of an equality of votes, the chair of
a meeting of shareholders does not, either on a show of hands or on a poll, have a second or casting vote in addition to the vote or votes to which the chair may be entitled as a shareholder. 

11.17    Manner of Taking Poll. Subject to Article 11.18, if a poll is duly demanded at a meeting of shareholders:

  

	 	(a)	 the poll must be taken: 

 

	 	(i)	 at the meeting, or within seven days after the date of the meeting, as the chair of the meeting directs; and

  

	 	(ii)	 in the manner, at the time and at the place that the chair of the meeting directs; 

 

	 	(b)	 the result of the poll is deemed to be the decision of the meeting at which the poll is demanded; and

  

	 	(c)	 the demand for the poll may be withdrawn by the person who demanded it. 

11.18    Demand for Poll on Adjournment. A poll demanded at a meeting of shareholders on a question of adjournment
must be taken immediately at the meeting. 
 11.19    Chair Must Resolve Dispute. In the case of any dispute as to
the admission or rejection of a vote given on a poll, the chair of the meeting must determine the dispute, and his or her determination made in good faith is final and conclusive. 

11.20    Casting of Votes. On a poll, a shareholder entitled to more than one vote need not cast all the votes in the
same way. 
 11.21    Demand for Poll. No poll may be demanded in respect of the vote by which a chair of a meeting
of shareholders is elected. 
 11.22    Demand for Poll Not to Prevent Continuance of Meeting. The demand for a
poll at a meeting of shareholders does not, unless the chair of the meeting so rules, prevent the continuation of a meeting for the transaction of any business other than the question on which a poll has been demanded. 

11.23    Retention of Ballots and Proxies. The Company must, for at least three months after a meeting of
shareholders, keep each ballot cast on a poll and each proxy voted at the meeting, and, during that period, make them available for inspection during normal business hours by any shareholder or proxy holder entitled to vote at the meeting. At the
end of such three month period, the Company may destroy such ballots and proxies. 
 11.24    Meeting by Telephone or
Other Communications Medium. Shareholder meetings may be held in person or, if the directors so determine, may be held entirely or partially by means of telephonic, electronic or other communication facilities that permit
all participants at the meeting to communication with each other during the meeting. A shareholder or proxy holder who participates in a meeting in a manner contemplated by this Article 11.24 is deemed for all purposes of the Business
Corporations Act and these Articles to be present at the meeting and to have agreed to participate in that manner. 

  
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 ARTICLE 12 

VOTES OF SHAREHOLDERS 

12.1    Number of Votes by Shareholder or by Shares. Subject to any special rights or restrictions attached to any
shares and to the restrictions imposed on joint shareholders under Article 12.3: 
  

	 	(a)	 on a vote by show of hands, every person present who is a shareholder or proxy holder and entitled to vote on
the matter has one vote; and 

  

	 	(b)	 on a poll, every shareholder entitled to vote on the matter has one vote in respect of each share entitled to
be voted on the matter and held by that shareholder and may exercise that vote either in person or by proxy. 

12.2    Votes of Persons in Representative Capacity. A person who is not a shareholder may vote at a meeting of
shareholders, whether on a show of hands or on a poll, and may appoint a proxy holder to act at the meeting, if, before doing so, the person satisfies the chair of the meeting, or the directors, that the person is a legal personal representative or
a trustee in bankruptcy for a shareholder who is entitled to vote at the meeting. 
 12.3    Votes by Joint
Holders. If there are joint shareholders registered in respect of any share: 
  

	 	(a)	 any one of the joint shareholders may vote at any meeting of shareholders, either personally or by proxy, in
respect of the share as if that joint shareholder were solely entitled to it; or 

  

	 	(b)	 if more than one of the joint shareholders is present at any meeting of shareholders, personally or by proxy,
and more than one of them votes in respect of that share, then only the vote of the joint shareholder present whose name stands first on the central securities register in respect of the share will be counted. 

12.4    Legal Personal Representatives as Joint Shareholders. Two or more legal personal representatives of a
shareholder in whose sole name any share is registered are, for the purposes of Article 12.3, deemed to be joint shareholders. 

12.5    Representative of a Corporate Shareholder. If a corporation, that is not a subsidiary of the Company, is a
shareholder, that corporation may appoint a person to act as its representative at any meeting of shareholders of the Company, and: 
  

	 	(a)	 for that purpose, the instrument appointing a representative must: 

 

	 	(i)	 be received at the registered office of the Company or at any other place specified, in the notice calling the
meeting, for the receipt of proxies, at least the number of business days specified in the notice for the receipt of proxies, or if no number of days is specified, two business days before the day set for the holding of the meeting; or

  

	 	(ii)	 be provided, at the meeting, to the chair of the meeting or to a person designated by the chair of the meeting;

  
 - 20 - 

 

	 	(b)	 if a representative is appointed under this Article 12.5: 

 

	 	(i)	 the representative is entitled to exercise in respect of and at that meeting the same rights on behalf of the
corporation that the representative represents as that corporation could exercise if it were a shareholder who is an individual, including, without limitation, the right to appoint a proxy holder; and 

 

	 	(ii)	 the representative, if present at the meeting, is to be counted for the purpose of forming a quorum and is
deemed to be a shareholder present in person at the meeting. 

 Evidence of the appointment of any such representative may be sent to the
Company or its transfer agent by written instrument, fax or any other method of transmitting legibly recorded messages. 

12.6    Proxy Provisions Do Not Apply to All Companies. Articles 12.7 to 12.16 do not apply to the Company if and for
so long as it is a public company or a pre-existing reporting company which has the Statutory Reporting Company Provisions as part of its Articles or to which the Statutory Reporting Company Provisions apply.

 12.7    Appointment of Proxy Holders. Every shareholder of the Company, including a corporation that is a
shareholder but not a subsidiary of the Company, entitled to vote at a meeting of shareholders of the Company may, by proxy, appoint one or more (but not more than five) proxy holders to attend and act at the meeting in the manner, to the extent and
with the powers conferred by the proxy. 
 12.8    Alternate Proxy Holders. A shareholder may appoint one or more
alternate proxy holders to act in the place of an absent proxy holder. 
 12.9    When Proxy Holder Need Not Be
Shareholder. A person must not be appointed as a proxy holder unless the person is a shareholder, although a person who is not a shareholder may be appointed as a proxy holder if: 

 

	 	(a)	 the person appointing the proxy holder is a corporation or a representative of a corporation appointed under
Article 12.5; 

  

	 	(b)	 the Company has at the time of the meeting for which the proxy holder is to be appointed only one shareholder
entitled to vote at the meeting; or 

  

	 	(c)	 the shareholders present in person or by proxy at and entitled to vote at the meeting for which the proxy
holder is to be appointed, by a resolution on which the proxy holder is not entitled to vote but in respect of which the proxy holder is to be counted in the quorum, permit the proxy holder to attend and vote at the meeting. 

  
 - 21 - 

 

 12.10    Deposit of Proxy. A proxy for a meeting of shareholders must:

  

	 	(a)	 be received at the registered office of the Company or at any other place specified, in the notice calling the
meeting, for the receipt of proxies, at least the number of business days specified in the notice, or if no number of days is specified, two business days before the day set for the holding of the meeting; 

 

	 	(b)	 unless the notice provides otherwise, be provided, at the meeting, to the chair of the meeting or to a person
designated by the chair of the meeting; or 

  

	 	(c)	 be received in any other manner determined by the board or the chair of the meeting. 

A proxy may be sent to the Company by written instrument, fax or any other method of transmitting legibly recorded messages or by using such available
internet or telephone voting services as may be approved by the directors. 
 12.11    Validity of Proxy Vote. A
vote given in accordance with the terms of a proxy is valid notwithstanding the death or incapacity of the shareholder giving the proxy and despite the revocation of the proxy or the revocation of the authority under which the proxy is given, unless
notice in writing of that death, incapacity or revocation is received: 
  

	 	(a)	 at the registered office of the Company, at any time up to and including the last business day before the day
set for the holding of the meeting at which the proxy is to be used; or 

  

	 	(b)	 at the meeting by the chair of the meeting, before any vote in respect of which the proxy has been given has
been taken. 

 12.12    Form of Proxy. A proxy, whether for a specified meeting or otherwise,
must be either in the following form or in any other form approved by the directors or the chair of the meeting: 
 Absolute Software
Corporation 
 (the “Company”) 

The undersigned, being a shareholder of the Company, hereby appoints [name] or, failing that person, [name], as proxy holder
for the undersigned to attend, act and vote for and on behalf of the undersigned at the meeting of shareholders of the Company to be held on [month, day, year] and at any adjournment or postponement of that meeting. 

Number of shares in respect of which this proxy is given (if no number is specified, then this proxy if given in respect of all shares
registered in the name of the shareholder): _______________. 
 Signed this ______ day of __________, _____. 

  
 - 22 - 

 

 _____________________________________________ 

(Signature of shareholder) 

_____________________________________________ 

(Name of shareholder – printed) 

12.13    Revocation of Proxy. Subject to Article 12.14, every proxy may be revoked by an instrument in writing that
is: 
  

	 	(a)	 received at the registered office of the Company at any time up to and including the last business day before
the day set for the holding of the meeting at which the proxy is to be used; or 

  

	 	(b)	 provided, at the meeting, to the chair of the meeting before any vote in respect of which the proxy has been
given has been taken. 

 12.14    Revocation of Proxy Must Be Signed. An instrument referred to
in Article 12.13 must be signed as follows: 
  

	 	(a)	 if the shareholder for whom the proxy holder is appointed is an individual, the instrument must be signed by
the shareholder or his or her legal personal representative or trustee in bankruptcy; 

  

	 	(b)	 if the shareholder for whom the proxy holder is appointed is a corporation, the instrument must be signed by
the corporation or by a representative appointed for the corporation under Article 12.5. 

 12.15    Chair
May Determine Validity of Proxy. The chair of any meeting of shareholders may determine whether or not a proxy deposited for use at the meeting, which may not strictly comply with the requirements of this Article 12 as to form, execution,
accompanying documentation, time of filing or otherwise, shall be valid for use at the meeting, and any such determination made in good faith shall be final, conclusive and binding upon the meeting. 

12.16    Production of Evidence of Authority to Vote. The chair of any meeting of shareholders may, but need not,
inquire into the authority of any person to vote at the meeting and may, but need not, demand from that person production of evidence as to the existence of the authority to vote. 

  
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 ARTICLE 13 

DIRECTORS 

13.1    First Directors; Number of Directors. The number of directors, excluding additional directors appointed under
Article 14.8, is set at: 
  

	 	(a)	 if the Company is a public company, the greater of three and the most recently set of: 

 

	 	(i)	 the number of directors set by ordinary resolution (whether or not previous notice of the resolution was
given); and 

  

	 	(ii)	 the number of directors set under Article 14.4; 

 

	 	(b)	 if the Company is not a public company, the most recently set of: 

 

	 	(i)	 the number of directors set by ordinary resolution (whether or not previous notice of the resolution was
given); and 

  

	 	(ii)	 the number of directors set under Article 14.4. 

13.2    Change in Number of Directors. If the number of directors is set under Articles 13.1(a)(i) or
13.1(b)(i): 
  

	 	(a)	 the shareholders may elect or appoint the directors needed to fill any vacancies in the board of directors up
to that number; 

  

	 	(b)	 if the shareholders do not elect or appoint the directors needed to fill any vacancies in the board of
directors up to that number contemporaneously with the setting of that number, then the directors may appoint, or the shareholders may elect or appoint, directors to fill those vacancies. 

13.3    Directors’ Acts Valid Despite Vacancy. An act or proceeding of the directors is not
invalid merely because fewer than the number of directors set or otherwise required under these Articles is in office. 

13.4    Qualifications of Directors. A director is not required to hold a share in the capital of the Company as
qualification for his or her office but must be qualified as required by the Business Corporations Act to become, act or continue to act as a director. 

13.5    Remuneration of Directors. The directors are entitled to the remuneration for acting as directors, if any, as
the directors may from time to time determine. If the directors so decide, the remuneration of the directors, if any, will be determined by the shareholders. That remuneration may be in addition to any salary or other remuneration paid to any
officer or employee of the Company as such, who is also a director. 
 13.6    Reimbursement of Expenses of
Directors. The Company must reimburse each director for the reasonable expenses that he or she may incur in and about the business of the Company. 

13.7    Special Remuneration for Directors. If any director performs any professional or other services for the
Company that in the opinion of the directors are outside the ordinary duties of a director, or if any director is otherwise specially occupied in or about the Company’s business, he or she may be paid remuneration fixed by the directors, or, at
the option of that director, fixed by ordinary resolution, and such remuneration may be either in addition to, or in substitution for, any other remuneration that he or she may be entitled to receive. 

  
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 13.8    Gratuity, Pension or Allowance on Retirement of Director. Unless
otherwise determined by ordinary resolution, the directors on behalf of the Company may pay a gratuity or pension or allowance on retirement to any director who has held any salaried office or place of profit with the Company or to his or her spouse
or dependants and may make contributions to any fund and pay premiums for the purchase or provision of any such gratuity, pension or allowance. 

ARTICLE 14 
 ELECTION AND
REMOVAL OF DIRECTORS 
 14.1    Election at Annual General Meeting. At every annual general meeting and in
every unanimous resolution contemplated by Article 10.2: 
  

	 	(a)	 the shareholders entitled to vote at the annual general meeting for the election of directors may elect, or in
the unanimous resolution appoint, a board of directors consisting of the number of directors for the time being set under these Articles; and 

  

	 	(b)	 all the directors cease to hold office immediately before the election or appointment of directors under
paragraph (a), but are eligible for re-election or re-appointment. 

14.2    Consent to be a Director. No election, appointment or designation of an individual as a director is valid
unless: 
  

	 	(a)	 that individual consents to be a director in the manner provided for in the Business Corporations Act;
or 

  

	 	(b)	 that individual is elected or appointed at a meeting at which the individual is present and the individual does
not refuse, at the meeting, to be a director. 

 14.3    Failure to Elect or Appoint Directors.
If: 
  

	 	(a)	 the Company fails to hold an annual general meeting, and all the shareholders who are entitled to vote at an
annual general meeting fail to pass the unanimous resolution contemplated by Article 10.2, on or before the date by which the annual general meeting is required to be held under the Business Corporations Act; or 

 

	 	(b)	 the shareholders fail, at the annual general meeting or in the unanimous resolution contemplated by Article
10.2, to elect or appoint any directors; 

 then each director then in office continues to hold office until the earlier
of: 
  

	 	(c)	 the date on which his or her successor is elected or appointed; and 

 

	 	(d)	 the date on which he or she otherwise ceases to hold office under the Business Corporations Act or these
Articles. 

 14.4    Places of Retiring Directors Not Filled. If, at any meeting of shareholders
at which there should be an election of directors, the places of any of the retiring directors are not filled by that election, then those retiring directors who are not re-elected and who are asked by the
newly elected directors to continue in office will, if willing to do so, continue in office to complete the number of directors for the time being set pursuant to these Articles until further new directors are elected at a meeting of shareholders
convened for that purpose. If any such election or continuance of directors does not result in the election or continuance of the number of directors for the time being set pursuant to these Articles, then the number of directors of the Company is
deemed to be set at the number of directors actually elected or continued in office. 

  
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 14.5    Directors May Fill Casual Vacancies. Any casual vacancy
occurring in the board of directors may be filled by the directors. 
 14.6    Remaining Directors Power to Act.
The directors may act notwithstanding any vacancy in the board of directors, but if the Company has fewer directors in office than the number set pursuant to these Articles as the quorum of directors, then the directors may only act for the purpose
of appointing directors up to that number or of summoning a meeting of shareholders for the purpose of filling any vacancies on the board of directors or, subject to the Business Corporations Act, for any other purpose. 

14.7    Shareholders May Fill Vacancies. If the Company has no directors or fewer directors in office than the number
set pursuant to these Articles as the quorum of directors, then the shareholders may elect or appoint directors to fill any vacancies on the board of directors. 

14.8    Additional Directors. Notwithstanding Articles 13.1 and 13.2, between annual general meetings or unanimous
resolutions contemplated by Article 10.2, the directors may appoint one or more additional directors, but the number of additional directors appointed under this Article 14.8 must not at any time exceed
one-third of the number of the current directors who were elected or appointed as directors other than under this Article 14.8. 

Any director so appointed ceases to hold office immediately before the next election or appointment of directors under Article 14.1(a), but is eligible for re-election or re-appointment 
 14.9    Ceasing to
be a Director. A director ceases to be a director when: 
  

	 	(a)	 the term of office of the director expires; 

 

	 	(b)	 the director dies; 

  

	 	(c)	 the director resigns as a director by notice in writing provided to the Company or a lawyer for the Company; or

  

	 	(d)	 the director is removed from office pursuant to Articles 14.10 or 14.11. 

14.10    Removal of Director by Shareholders. The Company may remove any director before the expiration of his or her
term of office by special resolution. In that event, the shareholders may elect, or appoint by ordinary resolution, a director to fill the resulting vacancy. If the shareholders do not elect or appoint a director to fill the resulting vacancy
contemporaneously with the removal, then the directors may appoint or the shareholders may elect, or appoint by ordinary resolution, a director to fill that vacancy. 

  
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 14.11    Removal of Director by Directors. The directors may remove any
director before the expiration of his or her term of office if the director is convicted of an indictable or similar offence, or if the director ceases to be qualified to act as a director of a company and does not promptly resign, and the directors
may appoint a director to fill the resulting vacancy. 
 ARTICLE 15 

POWERS AND DUTIES OF DIRECTORS 

15.1    Powers of Management. The directors must, subject to the Business Corporations Act and these Articles,
manage or supervise the management of the business and affairs of the Company and have the authority to exercise all such powers of the Company as are not, by the Business Corporations Act or by these Articles, required to be exercised by the
shareholders of the Company. 
 15.2    Appointment of Attorney of Company. The directors may from time to time, by
power of attorney or other instrument, under seal if so required by law, appoint any person to be the attorney of the Company for such purposes, and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the
directors under these Articles and excepting the power to fill vacancies in the board of directors, to remove a director, to change the membership of, or fill vacancies in, any committee of the directors, to appoint or remove officers appointed by
the directors and to declare dividends) and for such period, and with such remuneration and subject to such conditions as the directors may think fit. Any such power of attorney may contain such provisions for the protection or convenience of
persons dealing with such attorney as the directors think fit. Any such attorney may be authorized by the directors to sub-delegate all or any of the powers, authorities and discretions for the time being
vested in him or her. 
 ARTICLE 16 

DISCLOSURE OF INTEREST OF DIRECTORS 

16.1    Obligation to Account for Profits. A director or senior officer who holds a disclosable interest (as that
term is used in the Business Corporations Act) in a contract or transaction into which the Company has entered or proposes to enter is liable to account to the Company for any profit that accrues to the director or senior officer under or as
a result of the contract or transaction only if and to the extent provided in the Business Corporations Act. 

16.2    Restrictions on Voting by Reason of Interest. A director who holds a disclosable interest in a
contract or transaction into which the Company has entered or proposes to enter is not entitled to vote on any directors’ resolution to approve that contract or transaction, unless all the directors have a disclosable interest in that contract
or transaction, in which case any or all of those directors may vote on such resolution. 
 16.3    Interested Director
Counted in Quorum. A director who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter and who is present at the meeting of directors at which the contract or transaction is
considered for approval may be counted in the quorum at the meeting whether or not the director votes on any or all of the resolutions considered at the meeting. 

  
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 16.4    Disclosure of Conflict of Interest or Property. A director or
senior officer who holds any office or possesses any property, right or interest that could result, directly or indirectly, in the creation of a duty or interest that materially conflicts with that individual’s duty or interest as a director or
senior officer, must disclose the nature and extent of the conflict as required by the Business Corporations Act. 

16.5    Director Holding Other Office in the Company. A director may hold any office or place of profit with the Company, other
than the office of auditor of the Company, in addition to his or her office of director for the period and on the terms (as to remuneration or otherwise) that the directors may determine. 

16.6    No Disqualification. No director or intended director is disqualified by his or her office from contracting
with the Company either with regard to the holding of any office or place of profit the director holds with the Company or as vendor, purchaser or otherwise, and no contract or transaction entered into by or on behalf of the Company in which a
director is in any way interested is liable to be voided for that reason. 
 16.7    Professional Services by Director or
Officer. Subject to the Business Corporations Act, a director or officer, or any person in which a director or officer has an interest, may act in a professional capacity for the Company, except as auditor of the Company, and the
director or officer or such person is entitled to remuneration for professional services as if that director or officer were not a director or officer. 

16.8    Director or Officer in Other Corporations. A director or officer may be or become a director, officer or
employee of, or otherwise interested in, any person in which the Company may be interested as a shareholder or otherwise, and, subject to the Business Corporations Act, the director or officer is not accountable to the Company for any
remuneration or other benefits received by him or her as director, officer or employee of, or from his or her interest in, such other person. 

ARTICLE 17 
 PROCEEDINGS
OF DIRECTORS 
 17.1    Meetings of Directors. The directors may meet together for the conduct of business,
adjourn and otherwise regulate their meetings as they think fit, and meetings of the directors held at regular intervals may be held at the place, at the time and on the notice, if any, as the directors may from time to time determine. 

17.2    Voting at Meetings. Questions arising at any meeting of directors are to be decided by a majority of votes
and, in the case of an equality of votes, the chair of the meeting does not have a second or casting vote. 
 17.3    Chair of
Meetings. The following individual is entitled to preside as chair at a meeting of directors: 
  

	 	(a)	 the chair of the board, if any; 

 

	 	(b)	 in the absence of the chair of the board, the president, if any, if the president is a director; or

  
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	 	(c)	 any other director chosen by the directors if: 

 

	 	(i)	 neither the chair of the board nor the president, if a director, is present at the meeting within 15 minutes
after the time set for holding the meeting; 

  

	 	(ii)	 neither the chair of the board nor the president, if a director, is willing to chair the meeting; or

  

	 	(iii)	 the chair of the board and the president, if a director, have advised the secretary, if any, or any other
director, that they will not be present at the meeting. 

 17.4    Meetings by Telephone or
Other Communications Medium. A director may participate in a meeting of the directors or of any committee of the directors in person or by telephone if all directors participating in the meeting, whether in person or by
telephone or other communications medium, are able to communicate with each other. A director may participate in a meeting of the directors or of any committee of the directors by a communications medium other than telephone if all directors
participating in the meeting, whether in person or by telephone or other communications medium, are able to communicate with each other and if all directors who wish to participate in the meeting agree to such participation. A director who
participates in a meeting in a manner contemplated by this Article 17.4 is deemed for all purposes of the Business Corporations Act and these Articles to be present at the meeting and to have agreed to participate in that manner. 

17.5    Calling of Meetings. A director may, and the secretary or an assistant secretary of the Company, if any, on
the request of a director must, call a meeting of the directors at any time. 
 17.6    Notice of Meetings. Other
than for meetings held at regular intervals as determined by the directors pursuant to Article 17.1, reasonable notice of each meeting of the directors, specifying the place, day and time of that meeting must be given to each of the directors by any
method set out in Article 23.1 or orally or by telephone. 
 17.7    When Notice Not Required. It is not necessary
to give notice of a meeting of the directors to a director if: 
  

	 	(a)	 the meeting is to be held immediately following a meeting of shareholders at which that director was elected or
appointed, or is the meeting of the directors at which that director is appointed; or 

  

	 	(b)	 the director has waived notice of the meeting. 

17.8    Meeting Valid Despite Failure to Give Notice. The accidental omission to give notice of any meeting of
directors to, or the non-receipt of any notice by, any director does not invalidate any proceedings at that meeting. 

  
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 17.9    Waiver of Notice of Meetings. Any director may send to the
Company a document signed by him or her waiving notice of any past, present or future meeting or meetings of the directors and may at any time withdraw that waiver with respect to meetings held after that withdrawal. After sending a waiver with
respect to all future meetings and until that waiver is withdrawn, no notice of any meeting of the directors need be given to such director and all meetings of the directors so held are deemed not to be improperly called or constituted by reason of
notice not having been given to such director. 
 Attendance of a director at a meeting of the directors is a waiver of notice of the meeting, unless that
director attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called. 

17.10    Quorum. The quorum necessary for the transaction of the business of the directors is a majority of the
number of directors in office or such greater number as the directors may determine from time to time. 
 17.11    Validity of
Acts Where Appointment Defective. Subject to the Business Corporations Act, an act of a director or officer is not invalid merely because of an irregularity in the election or appointment or a defect in the qualification of that
director or officer. 
 17.12    Consent Resolutions in Writing. A resolution of the directors or of any committee
of the directors consented to in writing by all of the directors entitled to vote on it, whether by signed document, fax, email or any other method of transmitting legibly recorded messages, is as valid and effective as if it had been passed at a
meeting of the directors or of the committee of the directors duly called and held. Such resolution may be in two or more counterparts which together are deemed to constitute one resolution in writing. A resolution passed in that manner is effective
on the date stated in the resolution or on the latest date stated on any counterpart. A resolution of the directors or of any committee of the directors passed in accordance with this Article 17.12 is deemed to be a proceeding at a meeting of
directors or of the committee of the directors and to be as valid and effective as if it had been passed at a meeting of the directors or of the committee of the directors that satisfies all the requirements of the Business Corporations Act
and all the requirements of these Articles relating to meetings of the directors or of a committee of the directors. 
 ARTICLE 18

 EXECUTIVE AND OTHER COMMITTEES 

18.1    Appointment and Powers of Executive Committee. The directors may, by resolution, appoint an executive committee consisting
of the director or directors that they consider appropriate, and this committee has, during the intervals between meetings of the board of directors, all of the directors’ powers, except: 

 

	 	(a)	 the power to fill vacancies in the board of directors; 

 

	 	(b)	 the power to remove a director; 

 

	 	(c)	 the power to change the membership of, or fill vacancies in, any committee of the directors; and

  

	 	(d)	 such other powers, if any, as may be set out in the resolution or any subsequent directors’ resolution.

  
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 18.2    Appointment and Powers of Other Committees. The directors may,
by resolution: 
  

	 	(a)	 appoint one or more committees (other than the executive committee) consisting of the director or directors
that they consider appropriate; 

  

	 	(b)	 delegate to a committee appointed under paragraph (a) any of the directors’ powers, except:

  

	 	(i)	 the power to fill vacancies in the board of directors; 

 

	 	(ii)	 the power to remove a director; 

 

	 	(iii)	 the power to change the membership of, or fill vacancies in, any committee of the directors; and

  

	 	(iv)	 the power to appoint or remove officers appointed by the directors; and 

 

	 	(c)	 make any delegation referred to in paragraph (b) subject to the conditions set out in the resolution or
any subsequent directors’ resolution. 

 18.3    Obligations of Committees. Any committee
appointed under Articles 18.1 or 18.2, in the exercise of the powers delegated to it, must: 
  

	 	(a)	 conform to any rules that may from time to time be imposed on it by the directors; and 

 

	 	(b)	 report every act or thing done in exercise of those powers at such times as the directors may require.

 18.4    Powers of Board. The directors may, at any time, with respect to a committee appointed
under Articles 18.1 or 18.2: 
  

	 	‘(a)	 revoke or alter the authority given to the committee, or override a decision made by the committee, except as
to acts done before such revocation, alteration or overriding; 

  

	 	(b)	 terminate the appointment of, or change the membership of, the committee; and 

 

	 	(c)	 fill vacancies in the committee. 

18.5    Committee Meetings. Subject to Article 18.3(a) and unless the directors otherwise provide in the resolution
appointing the committee or in any subsequent resolution, with respect to a committee appointed under Articles 18.1 or 18.2: 
  

	 	(a)	 the committee may meet and adjourn as it thinks proper; 

  
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	 	(b)	 the committee may elect a chair of its meetings but, if no chair of a meeting is elected, or if at a meeting
the chair of the meeting is not present within 15 minutes after the time set for holding the meeting, the directors present who are members of the committee may choose one of their number to chair the meeting; 

 

	 	(c)	 a majority of the members of the committee constitutes a quorum of the committee; and 

 

	 	(d)	 questions arising at any meeting of the committee are determined by a majority of votes of the members present,
and in case of an equality of votes, the chair of the meeting does not have a second or casting vote. 

 ARTICLE 19

 OFFICERS 

19.1    Directors May Appoint Officers. The directors may, from time to time, appoint such officers, if any, as the
directors determine and the directors may, at any time, terminate any such appointment. 
 19.2    Functions, Duties and
Powers of Officers. The directors may, for each officer: 
  

	 	(a)	 determine the functions and duties of the officer; 

 

	 	(b)	 entrust to and confer on the officer any of the powers exercisable by the directors on such terms and
conditions and with such restrictions as the directors think fit; and 

  

	 	(c)	 revoke, withdraw, alter or vary all or any of the functions, duties and powers of the officer.

 19.3    Qualifications. No officer may be appointed unless that officer is qualified in
accordance with the Business Corporations Act. One person may hold more than one position as an officer of the Company. Any person appointed as the chair of the board or as the managing director must be a director. Any other officer need not
be a director. 
 19.4    Remuneration and Terms of Appointment. All appointments of officers are to be made on the
terms and conditions and at the remuneration (whether by way of salary, fee, commission, participation in profits or otherwise) that the directors think fit and are subject to termination at the pleasure of the directors, and an officer may in
addition to such remuneration be entitled to receive, after he or she ceases to hold such office or leaves the employment of the Company, a pension or gratuity. 

  
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 ARTICLE 20 

INDEMNIFICATION 

20.1    Definitions. In this Article 20: 
  

	 	(a)	 “eligible penalty” means a judgment, penalty or fine awarded or imposed in, or an amount paid
in settlement of, an eligible proceeding; 

  

	 	(b)	 “eligible proceeding” means a legal proceeding or investigative action, whether current,
threatened, pending or completed, in which a director or former director of the Company (an “eligible party”) or any of the heirs and legal personal representatives of the eligible party, by reason of the eligible party being or having
been a director of the Company: 

  

	 	(i)	 is or may be joined as a party; or 

 

	 	(ii)	 is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related to, the
proceeding; 

  

	 	(c)	 “expenses” has the meaning set out in the Business Corporations Act.

 20.2    Mandatory Indemnification of Directors and Former Directors. Subject to the
Business Corporations Act, the Company must indemnify a director or former director of the Company and his or her heirs and legal personal representatives against all eligible penalties to which such person is or may be liable, and the
Company must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by such person in respect of that proceeding. Each director is deemed to have contracted with the Company on the terms of the
indemnity contained in this Article 20.2. 
 20.3    Indemnification of Other Persons. Subject to any restrictions
in the Business Corporations Act, the Company may indemnify any person. 
 20.4    Non-Compliance with Business Corporations
Act. The failure of a director or officer of the Company to comply with the Business Corporations Act or these Articles does not invalidate any indemnity to which he or she is entitled under this Article 20. 

20.5    Company May Purchase Insurance. The Company may purchase and maintain insurance for the benefit of any person
(or his or her heirs or legal personal representatives) who: 
  

	 	(a)	 is or was a director, officer, employee or agent of the Company; 

 

	 	(b)	 is or was a director, officer, employee or agent of a corporation at a time when the corporation is or was an
affiliate of the Company; 

  

	 	(c)	 at the request of the Company, is or was a director, officer, employee or agent of a corporation or of a
partnership, trust, joint venture or other unincorporated entity; 

  

	 	(d)	 at the request of the Company, holds or held a position equivalent to that of a director or officer of a
partnership, trust, joint venture or other unincorporated entity; 

 against any liability incurred by him or her as such director,
officer, employee or agent or person who holds or held such equivalent position. 

  
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 ARTICLE 21 

DIVIDENDS 

21.1    Payment of Dividends Subject to Special Rights. The provisions of this Article 21 are subject to the rights,
if any, of shareholders holding shares with special rights as to dividends. 
 21.2    Declaration of Dividends.
Subject to the Business Corporations Act and the rights of the holders of issued shares of the Company, the directors may from time to time declare and authorize payment of such dividends as they may deem advisable. 

21.3    [INTENTIONALLY DELETED] 

21.4    Record Date. The directors may set a date as the record date for the purpose of determining shareholders
entitled to receive payment of a dividend. The record date must not precede the date on which the dividend is to be paid by more than two months. If no record date is set, the record date is 5 p.m. on the date on which the directors pass the
resolution declaring the dividend. 
 21.5    Manner of Paying Dividend. A resolution declaring a dividend may
direct payment of the dividend wholly or partly in money or by the distribution of specific assets or of fully paid shares or of bonds, debentures or other securities of the Company or any other corporation, or in any one or more of those ways. 

21.6    Settlement of Difficulties. If any difficulty arises in regard to a distribution under Article 21.5, the
directors may settle the difficulty as they deem advisable, and, in particular, may: 
  

	 	(a)	 set the value for distribution of specific assets; 

 

	 	(b)	 determine that cash payments in substitution for all or any part of the specific assets to which any
shareholders are entitled may be made to any shareholders on the basis of the value so fixed in order to adjust the rights of all parties; and 

  

	 	(c)	 vest any such specific assets in trustees for the persons entitled to the dividend. 

21.7    When Dividend Payable. Any dividend may be made payable on such date as is fixed by the directors. 

21.8    Dividends to be Paid in Accordance with Number of Shares. All dividends on shares of any class or series of
shares must be declared and paid according to the number of such shares held. 
 21.9    Receipt by Joint
Shareholders. If several persons are joint shareholders of any share, any one of them may give an effective receipt for any dividend, bonus or other money payable in respect of the share. 

  
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 21.10    Dividend Bears No Interest. No dividend bears interest against
the Company. 
 21.11    Fractional Dividends. If a dividend to which a shareholder is entitled includes a fraction
of the smallest monetary unit of the currency of the dividend, that fraction may be disregarded in making payment of the dividend and that payment represents full payment of the dividend. 

21.12    Payment of Dividends. Any dividend or other distribution payable in cash in respect of shares may be paid by
cheque, made payable to the order of the person to whom it is sent, and mailed to the address of the shareholder, or in the case of joint shareholders, to the address of the joint shareholder who is first named on the central securities register, or
to the person and to the address the shareholder or joint shareholders may direct in writing. The mailing of such cheque will, to the extent of the sum represented by the cheque (plus the amount of the tax required by law to be deducted), discharge
all liability for the dividend unless such cheque is not paid on presentation or the amount of tax so deducted is not paid to the appropriate taxing authority. 

21.13    Capitalization of Surplus. Notwithstanding anything contained in these Articles, the directors may from time
to time capitalize any surplus of the Company and may from time to time issue, as fully paid, shares or any bonds, debentures or other securities of the Company as a dividend representing the surplus or any part of the surplus. 

21.14    Unclaimed Dividends. Any dividend unclaimed after a period of three years from the date on which the same has been
declared to be payable shall be forfeited and shall revert to the Company. The Company shall not be liable to any person in respect of any dividend which is forfeited to the Company or delivered to any public official pursuant to any applicable
abandoned property, escheat or similar law. 
 ARTICLE 22 

DOCUMENTS, RECORDS AND REPORTS 

22.1    Recording of Financial Affairs. The directors must cause adequate accounting records to be kept to record
properly the financial affairs and condition of the Company and to comply with the Business Corporations Act. 

22.2    Inspection of Accounting Records. Unless the directors determine otherwise, or unless otherwise determined by
ordinary resolution, no shareholder of the Company is entitled to inspect or obtain a copy of any accounting records of the Company. 

ARTICLE 23 
 NOTICES

 23.1    Method of Giving Notice. Unless the Business Corporations Act or these Articles provide
otherwise, a notice, statement, report or other record required or permitted by the Business Corporations Act or these Articles to be sent by or to a person may be sent by any one of the following methods: 

 

	 	(a)	 mail addressed to the person at the applicable address for that person as follows: 

 

	 	(i)	 for a record mailed to a shareholder, the shareholder’s registered address; 

  
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	 	(ii)	 for a record mailed to a director or officer, the prescribed address for mailing shown for the director or
officer in the records kept by the Company or the mailing address provided by the recipient for the sending of that record or records of that class; 

  

	 	(iii)	 in any other case, the mailing address of the intended recipient; 

 

	 	(b)	 delivery at the applicable address for that person as follows, addressed to the person: 

 

	 	(i)	 for a record delivered to a shareholder, the shareholder’s registered address; 

 

	 	(ii)	 for a record delivered to a director or officer, the prescribed address for delivery shown for the director or
officer in the records kept by the Company or the delivery address provided by the recipient for the sending of that record or records of that class; 

  

	 	(iii)	 in any other case, the delivery address of the intended recipient; 

 

	 	(c)	 sending the record by fax to the fax number provided by the intended recipient for the sending of that record
or records of that class; 

  

	 	(d)	 sending the record by email to the email address provided by the intended recipient for the sending of that
record or records of that class; 

  

	 	(e)	 physical delivery to the intended recipient; 

 

	 	(f)	 creating and providing a record posted on or made available through a generally accessible electronic source
and providing written notice by any of the foregoing methods of the availability of such record; or 

  

	 	(g)	 as otherwise permitted by any securities legislation (together with all regulations and rules made and
promulgated thereunder and all administrative policy statements, blanket orders, and rulings, notices, and other administrative directions issued by securities commissions or similar authorities appointed thereunder) in any province or territory of
Canada or in the federal jurisdiction of the United States or in any state of the United States that is applicable to the Company. 

23.2    Deemed Receipt. A record that is: 
  

	 	(a)	 mailed to a person by ordinary mail to the applicable address for that person referred to in Article 23.1 is
deemed to be received by the person to whom it was mailed on the day, Saturdays, Sundays and holidays excepted, following the date of mailing; 

  
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	 	(b)	 emailed to a person to the email address provided by that person referred to in Article 23.1 is deemed to be
received by the person to whom it was e-mailed on the day it was e-mailed; and 

 

	 	(c)	 delivered in accordance with Article 23.1(f), is deemed to be received by the person on the day such written
notice is posted. 

 23.3    Certificate of Sending. A certificate signed by the secretary, if
any, or other officer of the Company or of any other corporation acting in that capacity on behalf of the Company stating that a notice, statement, report or other record was sent in accordance with Article 23.1 is conclusive evidence of that fact.

 23.4    Notice to Joint Shareholders. A notice, statement, report or other record may be provided by the Company
to the joint shareholders of a share by providing the notice to the joint shareholder first named in the central securities register in respect of the share. 

23.5    Notice to Trustees. A notice, statement, report or other record may be provided by the Company to the persons
entitled to a share in consequence of the death, bankruptcy or incapacity of a shareholder by: 
  

	 	(a)	 mailing the record, addressed to them: 

 

	 	(i)	 by name, by the title of the legal personal representative of the deceased or incapacitated shareholder, by the
title of trustee of the bankrupt shareholder or by any similar description; and 

  

	 	(ii)	 at the address, if any, supplied to the Company for that purpose by the persons claiming to be so entitled; or

  

	 	(b)	 if an address referred to in paragraph (a)(ii) has not been supplied to the Company, by giving the notice in a
manner in which it might have been given if the death, bankruptcy or incapacity had not occurred. 

23.6    Undelivered Notices. If, on two consecutive occasions, a notice, statement, report or other record is sent to a
shareholder pursuant to Article 23.1 and on each of those occasions any such record is returned because the shareholder cannot be located, the Company shall not be required to send any further records to the shareholder until the shareholder informs
the Company in writing of his or her new address. 
 ARTICLE 24 

SEAL AND EXECUTION OF DOCUMENTS 

24.1    Who May Attest Seal. Except as provided in Articles 24.2 and 24.3, the Company’s seal, if any, must not
be impressed on any record except when that impression is attested by the signatures of: 
  

	 	(a)	 any two directors; 

  
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	 	(b)	 any officer, together with any director; 

 

	 	(c)	 if the Company only has one director, that director; or 

 

	 	(d)	 any one or more directors or officers or persons as may be determined by the directors. 

24.2    Sealing Copies. For the purpose of certifying under seal a certificate of incumbency of the directors or
officers of the Company or a true copy of any resolution or other document, despite Article 24.1, the impression of the seal may be attested by the signature of any director or officer or the signature of any other person as may be determined by the
directors. 
 24.3    Mechanical Reproduction of Seal. The directors may authorize the seal to be impressed by
third parties on share certificates or bonds, debentures or other securities of the Company as they may determine appropriate from time to time. To enable the seal to be impressed on any share certificates or bonds, debentures or other securities of
the Company, whether in definitive or interim form, on which facsimiles of any of the signatures of the directors or officers of the Company are, in accordance with the Business Corporations Act or these Articles, printed or otherwise
mechanically reproduced, there may be delivered to the person employed to engrave, lithograph or print such definitive or interim share certificates or bonds, debentures or other securities one or more unmounted dies reproducing the seal and the
chair of the board or any senior officer together with the secretary, treasurer, secretary-treasurer, an assistant secretary, an assistant treasurer or an assistant secretary-treasurer may in writing authorize such person to cause the seal to be
impressed on such definitive or interim share certificates or bonds, debentures or other securities by the use of such dies. Share certificates or bonds, debentures or other securities to which the seal has been so impressed are for all purposes
deemed to be under and to bear the seal impressed on them. 
 24.4    Execution of Documents Generally. The
Directors may from time to time by resolution appoint any one or more persons, officers or Directors for the purpose of executing any instrument, document or agreement in the name of and on behalf of the Company for which the seal need not be
affixed, and if no such person, officer or Director is appointed, then any one officer or Director of the Company may execute such instrument, document or agreement. 

ARTICLE 25 
 PROHIBITIONS

 25.1    Definitions. In this Article 25: 

 

	 	(a)	 “designated security” means: 

 

	 	(i)	 a voting security of the Company; 

 

	 	(ii)	 a security of the Company that is not a debt security and that carries a residual right to participate in the
earnings of the Company or, on the liquidation or winding up of the Company, in its assets; or 

  

	 	(iii)	 a security of the Company convertible, directly or indirectly, into a security described in paragraph
(i) or (ii); 

  
 - 38 - 

 

	 	(b)	 “security” has the meaning assigned in the Securities Act (British Columbia);

  

	 	(c)	 “voting security” means a security of the Company that: 

 

	 	(i)	 is not a debt security, and 

 

	 	(ii)	 carries a voting right either under all circumstances or under some circumstances that have occurred and are
continuing. 

 25.2    Application. Article 25.3 does not apply to the Company if and for so long
as it is a public company or a pre-existing reporting company which has the Statutory Reporting Company Provisions as part of its Articles or to which the Statutory Reporting Company Provisions apply. 

25.3    Consent Required for Transfer of Shares or Designated Securities. No share or designated security may be
sold, transferred or otherwise disposed of without the consent of the directors and the directors are not required to give any reason for refusing to consent to any such sale, transfer or other disposition.

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