Document:

exhibit_10-32.htm

Exhibit 10.32  

 

[Translation from Hebrew]

 

State of Israel

Ministry of Economy

Industrial Research and Development Administration

Office of Chief Scientist

 

Jerusalem

Letter of Approval Number: 54516

(Fiscal regulation: 38300101)

Group: 13

  

To

Pluristem Ltd.

POB – 15105

Haifa 31905

 

Letter of Approval

 

	  	
1.

	
We hereby inform you that the research committee, by virtue of its authority according to Article 17 of the Law for the Encouragement of Research and Development in the Industry, 5744-1984 (hereinafter: the “R&D Law”), resolved in its meeting on 4/20/15 to approve the program as submitted by you on 12/15/2014, which subject matter is:

 

	  	
a.

	
Subject of approved program: Treatment with semi-mesenchyme placental cells grown in a 3D culture.

 

	  	
b.

	
Performing the approved program: Pluristem Ltd.

 

	  	  	
Registration Number: 513371666

(hereinafter - the “Approved Program”)

 

	  	
2.

	

a. The research and development expenses approved for the performance of the approved program will be in an amount of up to: NIS17,851,406.

 

In words: Seventeen million, eight hundred and fifty one thousand, four hundred and six NIS.

 

b. The rate of grant approved is 50% of the development expenses (addition with respect to a national priority zone A/ line of confrontation), which is up to an amount of NIS 8,925,703.

 

In words: Eight million, nine hundred and twenty five thousand, seven hundred and three NIS.

 

	  	
3.

	
The approval is conditioned upon fulfillment of the provisions of the law, regulations, rules and procedures promulgated thereunder and subject to the following terms:

 

	  	
a.

	
The approved program will be performed as detailed in your request within a period of 12 months – from 01/1/2015 and until 12/31/2015 (hereinafter: the “Performance Period”).

 

	  	
b.

	
(1) You must inform the Office of the Chief Scientist about every change in the control of the recipient of the grant in the company’s shares and/or in one of the following controlling means: (a) the right to vote in the company’s general meetings; (b) the right to appoint directors in the company; (c) the right to participate in the company’s profits.

 

(2) Transferring any percentage of the controlling means stated in subsection (1) to a non-Israeli resident or to a foreign company, which make the non-Israeli resident or foreign company an interested party as defined in the Securities Law, 5728-1968, requires notification to the Office of the Chief Scientist and a written undertaking of the non-Israeli resident or the foreign company to the R&D Law.

 

The letter of approval shall be signed in the form existing in the office of the Chief Scientist and in the website of the Ministry of Industry, Trade and Employment.

 

  

  

  

 

	  	
c.

	
Additional terms:

Royalties shall be paid on the company’s income.

 

	  	
d.

	
See the appendix in the matter of intellectual property.

 

	  	
e.

	
In the event of pledging the company’s assets to an Israeli bank against credit, the company must ensure that the pledge shall be subject to the R&D Law.

 

	  	
f.

	
If the program is connected to an agreement with an academic institution or an academic implementation company, the company must ensure that the agreement is subject to the provisions of the R&D Law.

 

	  	
Sincerely,

	  	  
	  	
/s/ Avi Hason

	  	
Avi Hason

The Chief ScientistEX-10.1

 Exhibit 10.1 
  

			
		  	

 30 April 2015 
 The Directors
UTi South Africa Pty Limited 
 Building 4 
 Greenstone Hill
Office Park 
 Emerald Boulevard 
 Greenstone Hills 

1609 
 Attention: Mr. Vaunn Kelly 

Dear Sirs 
 AMENDED AND RESTATED FACILITIES AGREEMENT BETWEEN
NEDBANK LIMITED AND THE ORIGINAL BORROWERS AND ADDITIONAL BORROWERS (AS DEFINED THERENIN) ENTERED INTO ON OR ABOUT 20 OCTOBER 2014 (THE AGREEMENT) 
  

	1	BACKGROUND 

  

	1.1	We refer to the Agreement. Terms defined in the Agreement have the same meaning in this letter, unless given a different meaning. 

  

	1.1	In terms of clause 22.1(1)(a) of the Agreement, it is recorded that Pyramid Freight SA shall, and shall procure that each member of the Borrower Group will ensure that for so long as any amount is outstanding under
the Finance Documents or any Commitment is in force the Interest Cover Ratio for each Measurement Period is at least 3.75. 

  

	1.2	We wish to confirm that with respect to the Interest Cover Ratio for the Measurement Period ending on 31 July 2015 the calculation is to be adjusted by excluding the amount of R280 million which is related to a
once off impairment on a debtor. 

  

	2	MISCELLANEOUS 

 This letter is a Finance Document and: 

 

	2.1	constitutes the whole agreement between the parties hereto relating to the subject matter hereof; 

  

	2.2	may not be amended, varied or cancelled save by written agreement between the parties hereto; 

  

 

			
	 Corporate Banking

Gauteng
	 	 I Block 6th Floor Nedbank 135 Rivonia Campus 135 Rivonia Road Sandown
2196
 PO Box 1144 Johannesburg 2000 South Africa
 Tel 011 294
4444 Fax 011 295 2174
 nedbank.co.za/corporatebanking

 Directors: Dr RJ Khoza (Chairman) MWT Brown (Chief Executive) DKT Adomakoh** TA Boardman BA Dames GW Dempster (Executive
Director) MA Enus-Brey ID Gladman* PB Hanratty*** PM Makwana Dr MA Matooane NP Mnxasana RK Morathi (Chief Financial Officer) JK Netshitenzhe MC Nkuhlu (Chief Operating Officer) JVF Roberts* GT Serobe MI Wyman* (*British) (**Ghanaian) (***Irish) 

Company Secretary: TSB Jali 01.01.2015 
 Nedbank Limited Reg No
1951/000009/06. Authorised financial services and registered credit provider (NCRCP16). 
  
 

 

			
		  	

  

	2.3	shall be governed by the laws of South Africa; and 

  

	2.4	may be signed in any number of counterparts, each of which shall be an original and all of which, when taken together, shall constitute one agreement. Delivery of a signed counterpart of a signature page of this letter
by facsimile transmission shall be effective as delivery of an original executed counterpart hereof. 

  

	3	ACCEPTANCE 

 Please acknowledge your agreement and acceptance of the provisions of this
letter by signing below. 
  

					
	 /s/ L BIERMAN
	  	 /s/ D BOTHA
	  	 /s/ D MEADOWS

	 L BIERMAN

CREDIT EXECUTIVE
	  	 D BOTHA
 SENIOR CREDIT
MANAGER
	  	 D MEADOWS
 SENIOR CORPORATE
BANKER

 Accepted at Greenstone on this the 8th day of May 2015 

 

	
	 /s/ Authorized Signatory

	 For and on behalf of:
 UTi South Africa
Propriety Limited
 (who hereby warrants his authority)

  
 Page 2 

			
		  	

  

 Accepted at Greenstone on this the 8th day of May 2015 

 

	
	 /s/ Authorized Signatory

	 For and on behalf of:

UTi SA Proprietary Limited

(who hereby warrants his authority)

 Accepted at Greenstone on this the 8th day of May 2015 

 

	
	 /s/ Authorized Signatory

	 For and on behalf of:

Pyramid Freight (Proprietary)

Limited

(who hereby warrants his authority)

 Ac Accepted at Greenstone on this the 8th day of May 2015 

 

	
	 /s/ Authorized Signatory

	 For and on behalf of:

Co-ordinated Materials Handling

Proprietary Limited

(who hereby warrants his authority)

 Accepted at Greenstone on this the 8th day of May 2015 

 

	
	 /s/ Authorized Signatory

	 For and on behalf of:

Co-ordinated Investment Holdings

Proprietary Limited

(who hereby warrants his authority)

  
 Page 3 

			
		  	

  

 Accepted at Greenstone on this the 8th day of May 2015 

 

	
	 /s/ Authorized Signatory

For and on behalf of:
 UTi-CMH Sub Assembly Proprietary

Limited
 (who hereby warrants his authority)

 Accepted at Greenstone on this the 8th day of May 2015 

 

	
	 /s/ Authorized Signatory

For and on behalf of:
 Ilanga Freight Proprietary
Limited
 (who hereby warrants his authority)

 Accepted at Meadowview on this the 8th day of May 2015 

 

	
	 /s/ Authorized Signatory

For and on behalf of:
 The Sisonke Partnership

by Pyramid Freight (Proprietary)
 Limited in its
capacity as a partner in
 The Sisonke Partnership

(who hereby warrants his authority)

 Accepted at Meadowview on this the 8th day of May 2015 

 

	
	 /s/ Authorized Signatory

For and on behalf of:
 The Sisonke Partnership

by Chronic Solutions Company
 Proprietary Limited in its
capacity as
 a partner in The Sisonke Partnership

(who hereby warrants his authority)

  
 Page 4 

			
		  	

  

 Accepted at Greenstone on this the 8th day of May 2015 

 

	
	 /s/ Authorized Signatory

For and on behalf of:
 UTi Shared Services Proprietary

Limited
 (who hereby warrants his authority)

 Accepted at Greenstone on this the 8th day of May 2015 

 

	
	 /s/ Authorized Signatory

For and on behalf of:
 UTi Logistics (Proprietary)
Limited
 (who hereby warrants his authority)

 Accepted at Greenstone on this the 8th day of May 2015 

 

	
	 /s/ Authorized Signatory

For and on behalf of:
 Marine Link Proprietary Limited

(who hereby warrants his authority)

  
 Page 5adc_ex41.htm

Exhibit 4.1

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

  US $25,000.00

ALGAE DYNAMICS CORP

12% CONVERTIBLE REDEEMABLE NOTE

DUE SEPTEMBER 2, 2016

 

FOR VALUE RECEIVED, Algae Dynamics Corp. (the “Company”) promises to pay to the order of the RY CAPITAL GROUP, LLC and its authorized successors and permitted assigns ("Holder"), the aggregate principal face amount of Twenty Five Thousand dollars exactly (U.S. $25,000.00) on September 2, 2016 ("Maturity Date") and to pay interest on the principal amount outstanding hereunder at the rate of 12% per annum commencing on September 2, 2015.  The interest will be paid to the Holder in whose name this Note is registered on the records of the Company regarding registration and transfers of this Note.  The principal of, and interest on, this Note are payable at 3500 Route 66, Suite 114, Neptune, NJ 07753, initially, and if changed, last appearing on the records of the Company as designated in writing by the Holder hereof from time to time.  The Company will pay each interest payment and the outstanding principal due upon this Note before or on the Maturity Date, less any amounts required by law to be deducted or withheld, to the Holder of this Note by check or wire transfer addressed to such Holder at the last address appearing on the records of the Company.  The forwarding of such check or wire transfer shall constitute a payment of outstanding principal hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented by such check or wire transfer.  Interest shall be payable in Common Shares (as defined below) pursuant to paragraph 4(b) herein.

 

  

1

  

 

This Note is subject to the following additional provisions:

1.           This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same.  No service charge will be made for such registration or transfer or exchange, except that Holder shall pay any tax or other governmental charges payable in connection therewith.

2.           The Company shall be entitled to withhold from all payments any amounts required to be withheld under applicable laws.

3.           This Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended ("Act") and applicable state securities laws.  Any attempted transfer to a non-qualifying party shall be treated by the Company as void.  Prior to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name this Note is duly registered on the Company's records as the owner hereof for all other purposes, whether or not this Note be overdue, and neither the Company nor any such agent shall be affected or bound by notice to the contrary.  Any Holder of this Note electing to exercise the right of conversion set forth in Section 4(a) hereof, in addition to the requirements set forth in Section 4(a), and any prospective transferee of this Note, also is required to give the Company written confirmation that this Note is being converted ("Notice of Conversion") in the form annexed hereto as Exhibit A. The date of receipt (including receipt by telecopy) of such Notice of Conversion shall be the Conversion Date.

4.           (a)           The Holder of this Note is entitled, at its option after 6 months, to convert all or any amount of the principal face amount of this Note then outstanding into common shares of the Company's capital stock (the "Common Shares") at a price ("Conversion Price") for each Common Share equal to 55% of the lowest closing price of the Common Shares as reported on the OTCQB or any exchange or interdealer quotation system on which the Company’s shares may be traded ("Exchange"), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company or its transfer agent (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company or its transfer agent after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price). If the shares have not been delivered within 3 business days, the Notice of Conversion may be rescinded. Such conversion shall be effectuated by the Company delivering Common Shares to the Holder within 3 business days of receipt by the Company of the Notice of Conversion. Accrued but unpaid interest shall be subject to conversion.  No fractional shares or scrip representing fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share. The Company agrees to honor all conversions submitted pending this increase. In the event the Company experiences a DTC “Chill” on its shares, the conversion price shall be decreased to 45% instead of 55% while that “Chill” is in effect. In no event shall the Holder be allowed to effect a conversion if such conversion, along with all other Common Shares beneficially owned by the Holder and its affiliates would exceed 9.9% of the outstanding Common Shares of the Company.

 

  

2

  

 

(b)           Interest on any unpaid principal balance of this Note shall be paid at the rate of 12% per annum.  Interest shall be paid by the Company in Common Shares ("Interest Shares").   The dollar amount converted into Interest Shares shall be all or a portion of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice.   Notwithstanding the foregoing, in the event of a prepayment on this Note, interest shall be paid in cash

 

(c)           The Notes may be prepaid with the following penalties:

 

	
PREPAY DATE

	 	
PREPAY AMOUNT

	
≤ 30 days

	 	
115% of principal plus accrued interest

	
31- 60 days

	 	
121% of principal plus accrued interest

	
61-90 days

	 	
127% of principal plus accrued interest

	
91-120 days

	 	
133% of principal plus accrued interest

	
121-180 days

	 	
139% of principal plus accrued interest

 

This Note may not be prepaid after the 180th day. Such redemption must be closed and funded within 3 days of giving notice of redemption of the right to redeem shall be null and void.

(d)           Upon (i) a transfer of all or substantially all of the assets of the Company to any person in a single transaction or series of related transactions, (ii) a reclassification, capital reorganization or other change or exchange of outstanding shares of the Common Shares, or (iii) any consolidation or merger of the Company with or into another person or entity in which the Company is not the surviving entity (other than a merger which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of outstanding Common Shares solely into Common Shares) (each of items (i), (ii) and (iii) being referred to as a "Sale Event"), then, in each case, the Company shall, upon request of the Holder, redeem this Note in cash for 135% of the principal amount, plus accrued but unpaid interest through the date of redemption, or at the election of the Holder, such Holder may convert the unpaid principal amount of this Note (together with the amount of accrued but unpaid interest) into Common Shares immediately prior to such Sale Event at the Conversion Price.

(e)           In case of any Sale Event in connection with which this Note is not redeemed or converted, the Company shall cause effective provision to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert this Note into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification, capital reorganization or other change, consolidation or merger by a holder of the number of Common Shares that could have been purchased upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to such Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If the consideration received by the holders of Common Shares is other than cash, the value shall be as determined by the Board of Directors of the Company or successor person or entity acting in good faith.

 

  

3

  

 

5.           No provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.

6.           The Company hereby expressly waives demand and presentment for payment, notice of non-payment, protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, and diligence in taking any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing and to be owing hereto.

7.           The Company agrees to pay all costs and expenses, including reasonable attorneys' fees and expenses, which may be incurred by the Holder in collecting any amount due under this Note.

8.           If one or more of the following described "Events of Default" shall occur:

(a) The Company shall default in the payment of principal or interest on this Note or any other note issued to the Holder by the Company; or

(b) Any of the representations or warranties made by the Company herein or in any certificate or financial or other written statements heretofore or hereafter furnished by or on behalf of the Company in connection with the execution and delivery of this Note, or the Securities Purchase Agreement under which this note was issued shall be false or misleading in any respect; or

(c) The Company shall fail to perform or observe, in any respect, any covenant, term, provision, condition, agreement or obligation of the Company under this Note or any other note issued to the Holder; or

(d) The Company shall (1) become insolvent; (2) admit in writing its inability to pay its debts generally as they mature; (3) make an assignment for the benefit of creditors or commence proceedings for its dissolution; (4) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property or business; (5) file a petition for  bankruptcy relief, consent to the filing of such petition or have filed against it an involuntary petition for bankruptcy relief, all under federal or state laws as applicable; or

(e) A trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without its consent and shall not be discharged within thirty (30) days after such appointment; or

(f) Any governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole or any substantial portion of the properties or assets of the Company; or

(g) One or more money judgments, writs or warrants of attachment, or similar process, in excess of fifty thousand dollars ($50,000) in the aggregate, shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period of fifteen (15) days or in any event later than five (5) days prior to the date of any proposed sale thereunder; or

 

  

4

  

 

(h) defaulted on or breached any term of any other note of similar debt instrument into which the Company has entered and failed to cure such default within the appropriate grace period; or

(j) If a majority of the members of the Board of Directors of the Company on the date hereof are no longer serving as members of the Board;

(k) The Company shall not deliver to the Holder the Common Shares pursuant to paragraph 4 herein without restrictive legend within 3 business days of its receipt of a Notice of Conversion; or

(l) The Company shall not replenish the reserve set forth in Section 12, within 3 business days of the request of the Holder; or

(m) The Company shall not be “current” in its filings with the Securities and Exchange Commission; or

(n) The Company shall lose the “bid” price for its stock in a market (including the OTCQB marketplace or other exchange).

Then, or at any time thereafter, unless cured within 5 days, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion, the Holder may consider this Note immediately due and payable, without presentment, demand, protest or (further) notice of any kind (other than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period of grace, enforce any and all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by law.  Upon an Event of Default, interest shall accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by law.  In the event of a breach of Section 8(k) the penalty shall be $250 per day the shares are not issued beginning on the 4th day after the conversion notice was delivered to the Company.  This penalty shall increase to $500 per day beginning on the 10th day.  The penalty for a breach of Section 8(n) shall be an increase of the outstanding principal amounts by 20%.  In case of a breach of Section 8(i), the outstanding principal due under this Note shall increase by 50%. Further, if a breach of Section 8(m) occurs or is continuing after the 6 month anniversary of the Note, then the Holder shall be entitled to use the lowest closing bid price during the delinquency period as a base price for the conversion. For example, if the lowest closing bid price during the delinquency period is $0.01 per share and the conversion discount is 50% the Holder may elect to convert future conversions at $0.005 per share. If this Note is not paid at maturity, the outstanding principal due under this Note shall increase by 10%.

 

  

5

  

 

If the Holder shall commence an action or proceeding to enforce any provisions of this Note, including, without limitation, engaging an attorney, then if the Holder prevails in such action, the Holder shall be reimbursed by the Company for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

Make-Whole for Failure to Deliver Loss.  At the Holder’s election, if the Company fails for any reason to deliver to the Holder the conversion shares by the by the 3rd business day following the delivery of a Notice of Conversion to the Company and if the Holder incurs a Failure to Deliver Loss, then at any time the Holder may provide the Company written notice indicating the amounts payable to the Holder in respect of the Failure to Deliver Loss and the Company must make the Holder whole as follows:

Failure to Deliver Loss = [(High trade price at any time on or after the day of exercise) x (Number of conversion shares)]

The Company must pay the Failure to Deliver Loss by cash payment, and any such cash payment must be made by the third business day from the time of the Holder’s written notice to the Company.

 

9. In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.

10. Neither this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Holder.

11. The Company represents that it is not a “shell” issuer and has never been a “shell” issuer or that if it previously has been a “shell” issuer that at least 12 months have passed since the Company has reported form 10 type information indicating it is no longer a “shell issuer.  Further. The Company will instruct its counsel to either (i) write a 144 opinion to allow for salability of the conversion shares or (ii) accept such opinion from Holder’s counsel.

 

12. The Company shall pay all costs associated with issuing and delivering the shares. If such amounts are to be paid by the Holder, it may deduct such amounts from the Conversion Price..

 

13. The Company will give the Holder direct notice of any corporate actions including but not limited to name changes, stock splits, recapitalizations etc.  This notice shall be given to the Holder as soon as possible under law.

14. This Note shall be governed by and construed in accordance with the laws of New York applicable to contracts made and wholly to be performed within the State of New York and shall be binding upon the successors and assigns of each party hereto.  The Holder and the Company hereby mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York.  This Agreement may be executed in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be effective as an original.

  

6

  

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by an officer thereunto duly authorized.

	 	ALGAE DYNAMICS CORP	 
	 	 	 
	
Dated: September 2, 2015

	 	 
	 	By: Richard Rusiniak	 
	 	Title: CEO	 
	 	 	 

 

 

 

  

7

  

EXHIBIT A

 

NOTICE OF CONVERSION

 (To be Executed by the Registered Holder in order to Convert the Note)

The undersigned hereby irrevocably elects to convert $___________ of the above Note into _________ Common Shares of Algae Dynamics Corp.  (“Shares”) according to the conditions set forth in such Note, as of the date written below.

If Shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer and other taxes and charges payable with respect thereto.

Date of Conversion:                                                                                                                                

Applicable Conversion Price:                                                                                                                     

Signature:                                                                                                                     

[Print Name of Holder and Title of Signer]

Address:                                                                                                                     

                                                                                                                                        

SSN or EIN:                                                                 

Shares are to be registered in the following name:                                                                                             

Name:                                                                                                                               

Address:                                                                                                                     

Tel:                                                                

Fax:                                                               

SSN or EIN:                                                                

Shares are to be sent or delivered to the following account:

Account Name:                                                                                                                     

Address:                                                                                                                     

8

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