Document:

Exhibit 10.1

 

CONVERTIBLE LOAN AGREEMENT

 

THIS CONVERTIBLE
LOAN AGREEMENT (this “Agreement”) is entered into as of the 10th day of August 2018 (the "Effective
Date"), by and between Cannabics Pharmaceuticals Inc., a Nevada corporation, with an address at #3 Bethesda Metro Center,
Suite 700 Bethesda, Md., (the “Investor”), and Eroll Grow Tech Ltd., an Israeli company, with an address
at HaCarmel 2, Yokneam, Israel (the “Company”).

 

WHEREAS, the
parties are interested in cooperating in the development of secure, targeted and personalized growing environments for medical
cannabis for the benefit of patients screened by the Investor; and

 

WHEREAS, the
Investor is willing to make available to the Company (i) an Initial Loan (as defined and described in Section 1), (ii) a Second
Investment (as defined and described in Section 2.2) and (iii) a Second Loan (as defined and described in Section 3), all subject
to the fulfillment of the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, the parties hereto
hereby agree as follows:

 

	1.	Initial Loan.

 

1.1       The
Investor agrees to lend to the Company Five Hundred Thousand U.S. Dollars (US$500,000), subject to the terms and conditions of
this Agreement (the “Initial Loan”).

 

1.2       The
Investor will transfer the Loan to the Company, in accordance with the wire transfer instructions provided in writing by the Company
to the Investor within 3 (three) days of the signing of this Agreement, or on such other date as agreed upon by the parties (the
“Initial Loan Closing” and the "Initial Loan Closing Date"). At the Initial Loan Closing, the
Company will deliver to the Investor a Convertible Promissory Note substantially as set forth in Exhibit A (the "Note").

 

1.3       The
Initial Loan shall not bear interest.

 

1.4       The
amount owed to the Investor shall be calculated as the Initial Loan (the "Investment Amount").

 

1.5       Subject
to Section 2 and Section 5 below, the Company shall repay the Investment Amount to the Investor ninety (90) days after the Loan
Closing Date (the “Due Date”).

 

1.6       As
security for the repayment of the Initial Loan when due, the Company hereby grants the Investor a first ranking fixed security
interest in all of the assets and rights of the Company, including the intellectual property owned by the Company. The Company
shall, forthwith following the Loan Closing Date, submit all documents and forms required to register the security interest created
hereunder with the Israeli Registrar of Companies and shall deliver to the Investor original certificates of registration of such
security interest upon receipt of such from the relevant governmental agency.

 

	2.	Conversion; Second Investment.

 

2.1       Automatic
Conversion. In the event that within three (3) months of the Loan Closing, the Company’s shares are listed for public
trading on an inter-dealer quotation system, such as The OTC Markets, (the “Conversion Trigger Event”). then the Investment
Amount shall be automatically converted into such number of fully-paid and non-assessable ordinary shares of the Company representing
7.5% of the outstanding shares on a fully-diluted basis of the Company at the time of conversion (the “Automatic Conversion”).
The Company shall promptly upon the conversion of the Investment Amount issue and deliver to the Investor a certificate representing
the number of shares of the Company to which the Investor shall be entitled upon conversion of the Investment Amount.

 

2.2       Second
Investment., the Investor shall invest an additional $500,000 in the Company (the “Second Investment”), subject
to fulfillment of shipment of a minimum of 96 units of Seedo units and in consideration for the Second Investment, the Company
shall issue to the Investor such number of fully-paid and non-assessable ordinary shares of the Company representing an additional
7.5% of the outstanding shares on a fully-diluted basis of the Company at the time of conversion, such that following the Second
Investment, the Investor shall hold 15% of the outstanding shares on a fully-diluted basis of the Company.

 

 

 

    	 	1	 

     

    

 

2.3       Warrants
– The Investor shall issue to the Company one million Warrants of its stock at a strike price of $2.00 per share, said Warrants
shall have a one-year life span.

 

	3.	Second Loan.

 

3.1       Thirty
(30) days from the second investment and event of the occurrence of a Conversion Trigger Event, the Investor shall lend to the
Company an additional One Million U.S. Dollars (US$1,000,000), subject to the terms and conditions of this Agreement (the “Second
Loan”).

 

3.2       The
Investor will transfer the Second Loan to the Company, in accordance with the wire transfer instructions provided in writing by
the Company to the Investor within three (3) days of the Conversion Trigger Event, on such other date as agreed upon by the parties
(the “Second Loan Closing” and the "Second Loan Closing Date"). At the Second Loan Closing,
the Company will deliver to the Investor a Convertible Promissory Note substantially as set forth in Exhibit B (the
"Second Note").

 

3.3       The
Second Loan shall not bear any interest.

 

3.4       Subject
to Section 4 and Section 5 below, the Company shall repay the Second Loan to the Investor on the one-year anniversary of the Second
Loan Closing Date (the “Second Loan Due Date”).

 

3.5       As
security for the repayment of the Second Loan when due, the Company hereby grants the Investor a first ranking fixed security interest
in all of the assets and rights of the Company, including the intellectual property owned by the Company. The Company shall, forthwith
following the Second Loan Closing Date submit all documents and forms required to register the security interest created hereunder
with the Israeli Registrar of Companies and shall deliver to the Investor original certificates of registration of such security
interest upon receipt of such from the relevant governmental agency.

 

In case the Investor
shall not transfer the Second Loan, or any part thereof to the Company when due, according to section 3.2 of this agreement, the
Investor shall return to the Company such number of fully-paid and non-assessable ordinary shares of the Company representing an
5% of the outstanding shares on a fully-diluted basis of the Company at the time of conversion ("the returned shares")
such that the Investor shall hold 10% of the outstanding shares on a fully-diluted basis of the Company (instead of 15%).

 

Upon any merger of
the Company to a publicly listed vehicle and as security for the transfer of the second loan by the Investor to the Company when
due, the Investor hereby agrees to deposit an executed Power of Attorney and Stock Power of said “returned shares”
into the hands of the Investor’s attorney (the “Trustee”). The Trustee shall transfer said Stock Power to the
Company should the Investor fail to transfer the Second Loan when due.

 

 

	4.	Conversion of Second Loan.

 

At any time prior to
the Second Loan Due Date (including immediately prior to an Event of Acceleration, as defined below), the Investor shall have the
option to convert the Second Loan into such number of fully-paid and non-assessable ordinary shares of the Company representing
5% of the outstanding shares on a fully-diluted basis of the Company at the time of such conversion.

 

 

	5.	Acceleration of Repayment.

 

The Investment Amount
and/or the Second Loan will become, in the Investor’s sole discretion, repayable upon the occurrence of an Event of Acceleration
(as defined below) that occurs prior to the conversion of the Investment Amount under Section 2 above and/or prior to the conversion
of the Second Loan under Section 4 above. For the purposes of this Section 5, an “Event of Acceleration” shall
be deemed to exist upon the occurrence of any of the following: (a) the Company files a petition in bankruptcy, files a petition
seeking any reorganization, arrangement, composition, or similar relief under any law regarding insolvency or relief for debtors,
or makes an assignment for the benefit of creditors; (b) a receiver, trustee, or similar officer is appointed for the business
or a significant part of the property of the Company, and such appointments are not stayed, enjoined, or discharged within forty-five
(45) days from their commencement; (c) any involuntary petition or proceeding under bankruptcy or insolvency laws is instituted
against the Company, and such actions are not stayed, enjoined, or discharged within forty-five (45) days from their commencement;
(d) the Company adopts a resolution for discontinuance of its business or for its liquidation, dissolution or winding-up; or (e)
a sale of all or substantially all of the assets of the Company.

 

 

 

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	6.	Royalties.

 

6.1       Following
the Second Loan Closing Date, the Company shall pay the Investor royalties in an amount equal to a percentage of the Company’s
revenues starting January, 2019 sales as follows:

 

(a)       Until
the conversion or repayment of the Second Loan, an amount equal to 2.5% of revenues

 

(b)       Following
the conversion or repayment of the Second Loan, an amount equal to 5% of revenues.

 

6.2       The
company shall pay the royalties quarterly, within ten (10) days after the end of each quarter calculated on an incoming cash basis.

 

6.3       Notwithstanding
the above, for the first year following the Second Loan Closing Date, the Company shall pay the Investor minimum royalties of not
less than $500,000. In January, 2020, the Company shall calculate the FY 2019 total royalties paid and in case it will be less
than $500,000, the company will pay any deficit amount within 90 days.

 

6.4       In
the event the Second Loan is repaid, the aggregate royalties to be paid by the Company hereunder will be capped at maximum $4,000,000.
In the event the Second Loan is converted into shares, the aggregate royalties to be paid hereunder will be capped at a maximum
of $8,000,000.

 

 

	7.	Research and Development Cooperation

 

7.1       The
parties shall cooperate in the development of secure, targeted and personalized growing environments for medical cannabis for the
benefit of patients screened by the Investor pursuant to the development plan attached hereto as Exhibit C (the “Joint
Development Plan”).

 

7.2       All
intellectual property developed by the mutual development of the parties, including patents that may be filed by either of the
parties in the course of the performance of the Joint Development Plan and shall be jointly-owned by both parties.

 

7.3       During
the term of this Agreement, the Company shall not perform any of activities set forth in the Joint Development Plan for any other
person or entity without the prior written consent of the Investor.

 

	8.	Representations and Warranties of the Company.

 

The Company hereby
represents and warrants to the Investor the following to be true and correct as at the date hereof, and acknowledges that the Investor
is entering into this Agreement in reliance thereon, as follows:

 

8.1       Organization.
The Company is a corporation duly organized, validly existing and in good standing under the laws of Israel. The Company has all
requisite power and authority to execute and deliver this Agreement.

 

8.2       Ordinary
Shares. All issued and outstanding shares of capital stock of Company have been duly authorized, validly issued, fully paid
and are non-assessable.

 

8.3       Enforceability;
Authorization. This Agreement, when executed and delivered by the Company, will constitute the valid, binding and enforceable
obligations of the Company. The execution, delivery and performance of the obligations of the Company hereunder have been duly
authorized by all necessary corporate action.

 

 

 

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8.4       Intellectual
Property. The Company has sufficient title and ownership, or has obtained the unrestricted right to use, free and clear of
all liens, claims, restrictions, third-party rights or royalties known to the Company, in and to patents, trademarks, service marks,
trade names, copyrights, moral rights and other proprietary rights and processes, and applications, licenses and rights with respect
to the foregoing, and trade secrets, including know-how, inventions, designs, processes, works of authorship, computer programs
and technical data and information (collectively herein “Intellectual Property”) used in the conduct of its
business as now conducted, without infringing upon or violating any rights of others.

 

	9.	Representations and Warranties of the Investor.

 

The Investor hereby
represents and warrants to the Company the following to be true and correct as at the date hereof and acknowledges that the Company
is entering into this Agreement in reliance thereon, as follows:

 

9.1       Enforceability;
Authorization. The Investor has full power and authority to enter into this Agreement. This Agreement, when executed and delivered
by the Investor, will constitute the valid, binding and enforceable obligations of the Investor. The execution, delivery and performance
of the obligations of the Investor hereunder have been duly authorized by all necessary corporate action.

 

9.2       Investment
Experience. The Investor is experienced and knowledgeable regarding business and securities of companies and is capable of
evaluating the risks of its investment in the Company.

 

9.3       Investment
Intent. The Investor is investing in the Company for its own account for investment and not with a view to sale or distribution
of the securities issued in consideration therefore, and shall not sell or otherwise transfer any of the securities, except in
accordance with all applicable securities and corporate laws and the terms of the Company’s governing documents.

 

9.4       Financial
Ability. The Investor has sufficient financial resources available to support the loss of all or a portion of Investor’s
investment in the Company, has no need for liquidity in the investment in the Company, and is able to bear the economic risk of
the investment.

 

9.5No Registration.The
Investor understands and acknowledges that any securities issued pursuant to this Agreement have not been registered under the
securities laws of any jurisdiction.

 

9.6No Public
Market.  The Investor understands and acknowledges that no public market now exists for any of the securities issued by
the Company.

 

	10.	Information Rights

 

The Company shall provide
the Investor with (a) a monthly investor report which shall include information about the Company’s progress (e.g.
key financial metrics including monthly recurring revenue, cash on hand, monthly burn rate, etc.; product updates; new customers,
partners or initiatives; and requests for assistance), and (b) copies of the Company's complete unaudited financial statements
for each fiscal quarter. The investor has a right to appoint an observer to the Company Board.

 

	11.	Pre-Emptive Right.

 

Until the conversion
of the Investment Amount, the following provisions shall apply:

 

11.1       The
Company hereby grants the Investor a right of participation (the “Right of Preemption”) to purchase all or part
of his pro rata portion of any New Securities that the Company may, from time to time propose to sell and issue. Such pro rata
share, for purposes of this Right of Preemption, is the ratio of the sum of the number of shares then owned by the Investor and
the number of shares into which the Investment Amount is convertible, to the sum of the total number of shares of the Company then
outstanding.

 

 

 

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11.2       For
purposes of this Section 11, "New Securities" shall mean any shares of the Company, whether now or hereafter authorized,
and rights, options, convertible instruments or warrants to purchase said shares, and securities of any type whatsoever that are,
or may become, convertible into said shares, but shall not include the following: (a) shares issued in connection with any share
split, dividend, or recapitalization by the Company; and (b) options to employees, directors, outsourcing services providers, or
consultants issued pursuant to an approved stock option plan, or shares issued pursuant to the exercise of such options, and (c)
any grants.

 

11.3       In
the event that the Company proposes to undertake an issuance of New Securities, it shall give the Investor written notice of its
intention, describing the type of New Securities, the price, and the general terms upon which the Company proposes to issue the
same. The Investor shall have fourteen (14) days after delivery of such notice to agree to purchase all or part of his pro-rata
share of such New Securities for the price and upon the general terms specified in the notice, by giving written notice to the
Company setting forth the quantity of New Securities to be purchased. In the event and to the extent that the Investor fails to
exercise the Right of Preemption within the fourteen (14) day period specified above, the Company shall have one hundred twenty
(120) days thereafter to sell the New Securities which were not purchased by the Investor, at a price and upon terms no more favorable
to the purchasers thereof than specified in the Company’s notice. In the event the Company has not sold the New Securities
within such one hundred twenty (120) day period, the Company shall not thereafter issue or sell any New Securities, without first
offering such New Securities to the Investor in the manner provided above.

 

	12.	Confidentiality.

 

Each party agrees to
maintain in confidence and trust, and not disclose or make any unauthorized use of, whether for its own personal benefit or for
the benefit of others, any proprietary or confidential information of the other party, including without limitation, trade secrets,
know-how, business plans, and marketing plans, whether documentary, written, oral or computer generated. Each party’s confidential
information does not include information that is now, or hereafter becomes, through no act or failure to act on the part of the
receiving party, generally known to the public or information which is generally known in the trade or industry, which is not gained
as result of a breach of this Agreement.

 

	13.	Miscellaneous.

 

13.1       Each
of the parties hereto shall perform such further acts and execute such further documents as may reasonably be necessary to carry
out and give full effect to the provisions of this Agreement and the intentions of the parties as reflected thereby.

 

13.2       This
Agreement shall be governed by and construed according to the laws of the State of New York, without regard to the conflict of
laws provisions thereof.

 

13.3       Except
as otherwise expressly limited herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors,
assigns, heirs, executors, and administrators of the parties hereto.

 

13.4       This
Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subject matters hereof
and supersedes any prior agreement, understanding, or contract, written or oral, with respect to the subject matter hereof.

 

13.5       No
delay or omission to exercise any right, power, or remedy accruing to any party upon any breach or default under this Agreement,
shall be deemed a waiver of any other breach or default theretofore or thereafter occurring. All remedies, either under this Agreement
or by law or otherwise afforded to any of the parties, shall be cumulative and not alternative.

 

13.6       If
any provision of this Agreement is held by a court of competent jurisdiction to be unenforceable under applicable law, then such
provision shall be excluded from this Agreement and the remainder of this Agreement shall be interpreted as if such provision were
so excluded and shall be enforceable in accordance with its terms; provided, however, that in such event this Agreement shall be
interpreted so as to give effect, to the greatest extent consistent with and permitted by applicable law, to the meaning and intention
of the excluded provision as determined by such court of competent jurisdiction.

 

 

 

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13.7       This
Agreement may be executed in counterparts.

 

IN WITNESS WHEREOF,
the parties have signed this Agreement in one or more counterparts as of the date first hereinabove set forth.

 

	The Investor	The Company
	 	 
	Cannabics Pharmaceuticals Inc.	Eroll Grow Tech Ltd.
	 	 
	/s/ Eyal Barad	/s/ Zohar Levy
	Eyal Barad, CEO	Zohar Levy, CEO

 

 

 

 

 

 

 

 

 

 

 

 

    	 	6April
12, 2018

 

Kevin
Hammill

58
La Gonda Court

Danville,
CA 94526

 

Dear
Kevin,

 

I
am pleased to offer you the full-time position of Chief Commercial Officer, with Marrone Bio Innovations, Inc. (the “Company”),
reporting to Pam Marrone, CEO & Founder. Your actual start date will be determined upon successfully passing your drug test
and background check. We anticipate your start date to be on or before April 30, 2018. However, Human Resources will notify
you as to when you can actually start your employment with Marrone Bio Innovations. 

 

You
will receive a base salary of $320,000.00 on an annualized basis. Your per payroll rate, prior to withholding, is $12,307.70,
which is based on twenty six (26) payrolls per calendar year. Direct deposit of paychecks to your
bank account is available. 

 

MBI
will provide you with a company cell phone, laptop computer, and IPad. You will be eligible for a monthly auto allowance of $900.00
or $950.00 (which is based on the number of cylinders of the vehicle you will using for work) which is designed to cover all costs
of owning and operating a vehicle.

 

Subject
to the approval of our Board of Directors and/or Compensation Committee of the Board, you will be granted an option to purchase
400,000 shares of the Company’s common stock. The price per share of any approved option will be the closing price of our
common stock as of the date on which the Compensation Committee approves the award. Your entitlement to any stock option that
may be approved is, conditioned upon your signing of an Award Agreement and will be subject to its terms and the terms of our
2013 Stock Incentive Plan (as amended, the “Plan”). The option will vest over a period of four (4) years. One year
from the date of grant of the option, 25% of the total shares will be vested. Such option will continue to vest over the remaining
3 years on a pro-rata basis equally each month over the period following the date of grant (2.083% per month over 36 months).
The option shall continue to vest for so long as you provide “Continuous Service” to the Company or a “Related
Entity” as those terms is defined in the Plan.

 

You
will be eligible for the Company Bonus Plan, which changes from year to year, must be approved by the Board of Directors, and
is based on Company and individual goals. The determination of the Company with respect to the amount of bonus earned, if any,
will be final and binding. Your bonus can be up to 40% of your salary.

 

 

    	 	 	 

     

    

 

 

You
will be eligible for the Company’s benefits programs on the first day of the first full month of your employment. The benefits
currently offered are as follows:

 

	 	●	Medical
    (MBI offers you PPO), Dental and Vision Insurance for you. The Company will pay for 50% of your dependent premium for medical
    and dental insurance and you may pay the remaining 50% on a pre-tax basis under the Company’s medical plan.
	 	 	 
	 	●	Cafeteria
    Plan (Section 125 Plan) which gives you the ability to set aside a portion of your paycheck on a pre-tax basis for dependent
    premiums as well as set up a flexible spending account for dependent care and unreimbursed medical expenses. 
	 	 	 
	 	●	Long-term
    Disability Insurance for you, and Life Insurance equal to one (1) times your base salary. 
	 	 	 
	 	●	Voluntary
    Supplemental Term Life Insurance and AD&D.

 

 

You
will be eligible to participate in the 401(k) Plan after completing one month of service. Subject to terms of the Plan, you will
receive a Company match of $1 for $1 for the first 3% of your salary you contribute and $0.50 for the next 2% of your salary (i.e.
the maximum match is 4% if you contribute 5% of your salary).

 

You
will accrue 4.62 hours of vacation per pay period, which is equivalent to 120 hours on an annual basis.

 

All
the benefit programs and plans are offered solely at the discretion of the Company and may be modified at any time. In addition
to a timely response, this offer is contingent upon the successful completion of (1) reference check (2) a background check,
which may include criminal and education credential checks and (3) a pre-employment drug test. The required background check form
you will need to fill out will be provided to you under separate cover. For purposes of federal immigration laws, you are required
to provide to the Company documentary evidence of your identity and eligibility to work in the United States. Such documentation
must be provided to us within three (3) business days of your date of hire or our contingent employment relationship with you
will be terminated. You will also be required, as a condition of employment, to sign the Company’s standard Employee Confidential
Information And Assignment Of Inventions Agreement.

 

 

    	 	 	 

     

    

 

 

Your
employment with the Company is for no specified period and constitutes at-will employment. As a result, you are free to resign
at any time, for any reason or for no reason. We prefer that if you resign you would provide a two-week notice. Similarly, the
Company is free to conclude its employment relationship with you at any time, with or without cause. However, in the event that
your employment is actually or constructively terminated by the Company without cause (whether or not occurring in connection
with a change of control of the Company) the company will provide you at the time of your termination, a lump sum payment of six
(6) months’ salary (gross amount before all required federal, state taxes and 401(k) deductions), and upon your election
of COBRA, will pay for the first six (6) months of COBRA premium for Medical, Dental and Vision coverages.

 

To
indicate your acceptance of the Company’s offer, please sign and date this letter in the space provided below and return
it to Human Resources. This letter sets forth the terms of your employment with the Company and supersedes any prior representations
or agreements, whether written or oral. This letter may not be modified or amended except by a written agreement signed by the
Company and by you.

 

Please
respond no later than April 20, 2018. If we do not receive your acceptance by that time, we will assume you are not interested
and this offer will be automatically withdrawn without further action as we will need to proceed with other candidates we have
for this position.

 

I
look forward to continuing to build MBI together with you.

 

Sincerely,

 

Linda
V. Moore

EVP
and General Counsel

 

I,
___Kevin Hammill____________________________________________, accept the terms of this agreement.

 

	Signature:	/s/
    Kevin Hammill	 

 

	Date
    Signed:	April
    15, 2018

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