Exhibit 10.15

 

CANADA – AB, BC, ONT

 

SUBSCRIPTION FOR UNITS

 

TO:   Bakbone Software Incorporated (the “Corporation”)

AND TO:

  Burnet, Duckworth & Palmer LLP

 

The undersigned (hereinafter referred to as the “Subscriber”) hereby irrevocably
subscribes for and agrees to purchase that number of units (“Units”) of the
Corporation set forth below, for the aggregate subscription price set forth
below, representing a subscription price of $0.88 (Canadian) per Unit (the
“Subscription Price”), each Unit comprised of one (1) Common Share and one-half
of one warrant (“Warrant”), each whole Warrant entitling the holder thereof to
acquire one (1) Common Share at a price of $1.00 per share for a period of one
year from the date of issuance, upon and subject to the terms and conditions set
forth in “Terms and Conditions of Subscription for Units of Bakbone Software
Incorporated”, attached hereto (the “Subscription Agreement”).

 

--------------------------------------------------------------------------------

Name of Subscriber (please print)

By:

 

 

--------------------------------------------------------------------------------

        Authorized Signature

 

--------------------------------------------------------------------------------

Official Capacity or Title (please print)

 

--------------------------------------------------------------------------------

(Please print name of individual whose signature appears above if different than
the name of the subscriber printed above.)  

--------------------------------------------------------------------------------

Subscriber’s Address, including postal code

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

Telephone Number

 

Register the Units as set forth below:

 

--------------------------------------------------------------------------------

Name

 

--------------------------------------------------------------------------------

Account reference, if applicable

 

--------------------------------------------------------------------------------

Address, including postal code

 

--------------------------------------------------------------------------------

 

Number of Units of the Corporation currently held by the Subscriber:

 

Number of Units:

 

Aggregate Subscription Price: $

 

If the Subscriber is signing as agent for a
principal and is not a trust company or a portfolio
manager, in either case, purchasing as trustee or
agent for accounts fully managed by it, complete
the following:  

--------------------------------------------------------------------------------

Name of Principal

 

--------------------------------------------------------------------------------

Principal’s Address

 

--------------------------------------------------------------------------------

 

Deliver the Units as set forth below:

 

--------------------------------------------------------------------------------

Name

 

--------------------------------------------------------------------------------

Account reference, if applicable

 

--------------------------------------------------------------------------------

Contact Name

 

--------------------------------------------------------------------------------

Address, including postal code

 

--------------------------------------------------------------------------------

Telephone Number

 

ACCEPTANCE: The Corporation hereby accepts the subscription as set forth above
on the terms and conditions contained in this Subscription Agreement.

 

         Subscription
No.

Bakbone Software Incorporated

        

Per:                                                 

                       , 200        

 

This is the first page of an agreement comprised of 7 pages, not including the
Exhibits hereto.

--------------------------------------------------------------------------------

CANADA – AB, BC, ONT

 

TERMS AND CONDITIONS OF SUBSCRIPTION FOR

UNITS OF BAKBONE SOFTWARE INCORPORATED

 

Representations and Warranties by Corporation

 

1. The Corporation hereby represents and warrants to the Subscriber (and
acknowledges that the Subscriber is relying thereon) that:

 

(a) the Corporation has the full corporate right, power and authority to execute
and deliver this Subscription Agreement and to issue the Units to the
Subscriber;

 

(b) this Subscription Agreement constitutes a binding obligation of the
Corporation enforceable in accordance with its terms; and

 

2. the execution and delivery of, and the performance of the terms of this
Subscription Agreement by the Corporation, including the issue of the Units,
does not and will not constitute a breach of or default under the constating
documents of the Corporation or any law, regulation, order or ruling applicable
to the Corporation or any agreement, contract or indenture to which the
Corporation is a party or by which it is bound.

 

Representations, Warranties and Covenants by Subscriber

 

3. The Subscriber acknowledges that this subscription is subject to rejection or
allotment by the Corporation.

 

4. The Subscriber acknowledges that the Units subscribed for by it hereunder
form part of a larger issuance and sale by the Corporation of up to 2,500,000
Units (the “Offering”).

 

5. By executing this subscription, the Subscriber (and, if applicable, the
others for whom it is contracting hereunder) represents, warrants and covenants
to the Corporation (and acknowledges that the Corporation and its counsel are
relying thereon) that:

 

(a) it has been independently advised as to restrictions with respect to trading
in the Common Shares and Warrants comprising the Units, and the Common Shares
issuable upon exercise of the Warrants (collectively, the “Securities”) imposed
by applicable securities legislation in the jurisdiction in which it resides,
confirms that no representation has been made to it by or on behalf of the
Corporation with respect thereto, acknowledges that it is aware of the
characteristics of the Securities, the risks relating to an investment therein
and of the fact that it may not be able to resell the Securities except in
accordance with limited exemptions under applicable securities legislation and
regulatory policy until expiry of the applicable resale restriction and in
compliance with other requirements of applicable law; and it agrees that any
certificates representing the Securities may bear a legend indicating that the
resale of the Securities is restricted. The Subscriber further acknowledges that
it should consult its own legal counsel in its jurisdiction for full particulars
of applicable resale restrictions; and

 

(b) it has not received, nor has it requested, nor does it have any need to
receive, any prospectus, sales or advertising literature, offering memorandum or
any other document (other than financial statements, interim financial
statements or any other document, other than an offering memorandum, the content
of which is prescribed by statute or regulation) describing the business and
affairs of the Corporation which has been prepared for delivery to, and review
by, prospective purchasers in order to assist them in making an investment
decision in respect of the Securities, and it has not become aware of any
advertisement in printed public media, radio, television or telecommunications,
including electronic display such as the Internet with respect to the
distribution of the Securities; and

 

(c) except as expressly set forth herein, it has relied solely upon publicly
available information relating to the Corporation and not relied upon any verbal
or written representation as to fact or otherwise made by or on behalf of the
Corporation or any employee, agent or affiliate thereof or any other person
associated therewith; and

 

(d) it is resident in the province or jurisdiction set forth as the
“Subscriber’s Address” below its signature on the face page of this Subscription
Agreement, and if the Subscriber is acting as agent for a disclosed
principal/beneficial purchaser, such disclosed principal/beneficial purchaser is
resident in the jurisdiction set forth in the Subscription Agreement as the
“Principal’s Address” of the beneficial purchaser; and

 

(e) if it is purchasing the Securities as principal, or if it is an insurer,
trust company or portfolio manager purchasing the Securities as an agent or
trustee for accounts that are fully managed by it and is specifically deemed to
be acting as principal

 

2

--------------------------------------------------------------------------------

CANADA – AB, BC, ONT

 

under the securities legislation of the Provinces of Alberta, British Columbia
or Ontario, as the case may be, in which it is resident, and:

 

  (i) if it is resident in or otherwise subject to the laws of the Province of
Alberta:

 

  (A) the aggregate acquisition cost of the Securities purchased by it is not
less than $97,000 and:

 

  (I) if the Subscriber is not an individual but is a corporation, syndicate,
partnership or other form of unincorporated organization, it pre-existed the
offering of the Securities and has a bona fide purpose other than investment in
the Securities; or

 

  (II) if the Subscriber was created to permit such investment, the individual
share of the aggregate acquisition cost of the Securities for each participant
is not less than $97,000; or

 

  (B) it is an “accredited investor”, as such term is defined in Multilateral
Instrument 45-103 (“MI 45-103”) and has concurrently executed and delivered a
Representation Letter in the form attached as Exhibit “1” to this Subscription
Agreement; or

 

  (C) it is:

 

  (I) a director, senior officer or control person of the Corporation or of an
affiliate of the Corporation; or

 

  (II) a spouse, parent, grandparent, brother, sister or child of any person
referred to in subclause (I) above; or

 

  (III) a close personal friend of any person referred to in subclause (I) above
and has known such person for a sufficient period of time to be in a position to
assess the capabilities and trustworthiness of such person; or

 

  (IV) a close business associate of any person referred to in subclause (I)
above and has had sufficient prior business dealings with such person to be in a
position to assess the capabilities and trustworthiness of such person; or

 

  (V) a person or company that is wholly-owned by any combination of persons or
companies referred to in subclauses (I), (II), (III) or (IV) above; or

 

  (D) it is an employee of the Corporation or of an affiliate of the Corporation
and is not, directly or indirectly, required by the Corporation to purchase the
Securities; and

 

  (ii) if it is resident in or otherwise subject to the laws of the Province of
British Columbia it is an “accredited investor”, as such term is defined in MI
45-103 and has concurrently executed and delivered a Representation Letter in
the form attached as Exhibit “1” to this Subscription Agreement; or

 

  (iii) if it is resident in or otherwise subject to the laws of the Province of
Ontario it is an “accredited investor” as defined in Ontario Securities
Commission Rule 45-501 entitled “Exempt Distributions” promulgated under the
Securities Act (Ontario) and has concurrently executed and delivered a
Representation Letter in the form attached as Exhibit “2” to this Subscription
Agreement; and

 

(f) if it is acting as agent for one or more disclosed principals, it is duly
authorized to enter into this Subscription Agreement and to execute and deliver
all documentation in connection with the purchase on behalf of each of such
principals, it acknowledges that the Corporation is required by law to disclose
to certain regulatory authorities the identity of each of such disclosed
principals for whom it may be acting, each of such principals is purchasing as a
principal for its own account for investment purposes and not with an intention
for resale or distribution of the Securities and not for the benefit of any
other person, each of such principals complies with such of subparagraphs (i),
(ii) and (iii) of paragraph 6(e) as are applicable to it by virtue of its place
of residence, and the Subscriber has concurrently executed and delivered, as
agent for such principals, the applicable Representation Letter, if any,
required by such subparagraphs; and

 

3

--------------------------------------------------------------------------------

CANADA – AB, BC, ONT

 

(g) if it is a resident of any jurisdiction referred to in the preceding
paragraphs but not purchasing thereunder, it is purchasing pursuant to an
exemption from prospectus and registration requirements (particulars of which
are enclosed herewith) available to it under applicable securities legislation
and shall deliver to the Corporation such further particulars of the
exemption(s) and the Subscriber’s qualifications thereunder as the Corporation
may request; and

 

(h) if it is a resident of any jurisdiction not referred to in the preceding
paragraphs, it complies with the provisions above as if it were a resident of
Alberta and the requirements of all applicable securities legislation in the
jurisdiction of its residence and will provide such evidence of compliance with
all such matters as the Corporation may request; and

 

(i) it is aware that the Securities have not been and will not be registered
under the United States Securities Act of 1933 (the “U.S. Securities Act”) and
that these securities may not be offered or sold in the United States without
registration under the U.S. Securities Act or compliance with requirements of an
exemption from registration; and

 

(j) it is not a “U.S. Person” (as that term is defined by Regulation S under the
U.S. Securities Act, which definition includes, but is not limited to, an
individual resident in the United States, an estate or trust of which any
executor or administrator or trustee, respectively, is a U.S. Person and any
partnership or corporation organized or incorporated under the laws of the
United States) and is not acquiring the Securities or the account or benefit of
a U.S. Person or a person in the United States; and

 

(k) the Securities have not been offered to the Subscriber in the United States,
and the individuals making the order to purchase the Securities and executing
and delivering this Subscription Agreement on behalf of the Subscriber were not
in the United States when the order was placed and this Subscription Agreement
was executed and delivered; and

 

(l) it undertakes and agrees that it will not offer or sell the Securities in
the United States unless such securities are registered under the U.S.
Securities Act and the securities laws of all applicable states of the United
States or an exemption from such registration requirements is available, and
further that it will not resell the Securities, except in accordance with the
provisions of applicable securities legislation, regulations, rules, policies
and orders and stock exchange rules; and

 

(m) if an individual, it is of the full age of majority and is legally competent
to execute this Subscription Agreement and take all action pursuant hereto; and

 

(n) this Subscription Agreement has been duly and validly authorized, executed
and delivered by and constitutes a legal, valid, binding and enforceable
obligation of the Subscriber; and

 

(o) if a corporation, partnership, unincorporated association or other entity,
it has the legal capacity and competence to enter into and be bound by this
Subscription Agreement and further certifies that all necessary approvals of
directors, shareholders or otherwise have been given and obtained; and

 

(p) the entering into of this Subscription Agreement and the transactions
contemplated hereby will not result in a violation of any of the terms and
provisions of any law applicable to it, or any of its constating documents, or
of any agreement to which the Subscriber is a party or by which it is bound; and

 

(q) in the case of a subscription by it for Securities acting as agent for a
disclosed principal, it is duly authorized to execute and deliver this
Subscription Agreement and all other necessary documentation in connection with
such Subscription Agreement on behalf of such principal and this Subscription
Agreement has been duly authorized, executed and delivered by or on behalf of,
and constitutes the legal, valid and binding agreement of, such principal; and

 

(r) it has such knowledge in financial and business affairs as to be capable of
evaluating the merits and risks of its investment and it, or, where it is not
purchasing as principal, each beneficial purchaser, is able to bear the economic
risk of loss of its investment; and

 

(s) it is aware that no securities commission or similar regulatory authority
has reviewed or passed on the merits of the Securities; that there is no
government or other insurance covering the Securities, that there are risks
associated with the purchase of the Securities; that there are restrictions on
the Subscriber’s ability to resell the Securities and it is the responsibility
of the Subscriber to find out what those restrictions are and to comply with
them before selling the Securities; that the Corporation has advised the
Subscriber that the Corporation is relying on an exemption from the requirements
as to the filing of a prospectus, to provide the Subscriber with a prospectus as
well as to sell securities through a person or company registered to sell
securities under applicable securities legislation in the jurisdictions in
Canada in which the

 

4

--------------------------------------------------------------------------------

CANADA – AB, BC, ONT

 

Securities are being sold and, as a consequence of acquiring securities pursuant
to this exemption, certain protections, rights and remedies provided by
applicable securities legislation, including statutory rights of rescission or
damages, will not be available to the Subscriber, that it may not receive
information that might otherwise be required to be provided to the Subscriber
under applicable securities laws if the exemption were not being used; and that
the Corporation is relieved from certain obligations that would otherwise apply
under the applicable securities laws if the exemption were not being used; and

 

(t) if required by applicable securities legislation, regulations, rules,
instruments, policies or orders or by any securities commission, stock exchange
or other regulatory authority, the Subscriber will execute, deliver, file and
otherwise assist the Corporation in filing, such reports, undertakings and other
documents with respect to the issue of the Securities, as may be required; and

 

(u) neither the Subscriber nor any party on whose behalf it is acting is an
investment club; and

 

(v) it does not act jointly or in concert with any other Subscriber for
Securities for the purposes of the acquisition of the Securities; and

 

(w) the Subscriber is capable of assessing the proposed investment as a result
of the Subscriber’s financial experience or as a result of advice received from
a registered person other than the Corporation or any affiliates thereof; and

 

(x) it will not resell the Securities, except in accordance with the provisions
of applicable securities legislation and stock exchange rules and, if the
Subscriber is resident in or otherwise subject to the securities laws of
Ontario, in addition to compliance with such restrictions on resale applicable
under applicable securities legislation to which the Securities may be subject,
the Subscriber may be required to file a report or pay a fee with and to the
Ontario Securities Commission within the prescribed time of a trade in any of
the Securities in accordance with the securities laws of Ontario, including Part
7 of Ontario Securities Commission Rule 45-501; and

 

(y) the delivery of this subscription, the acceptance hereof by the Corporation
and the issuance of the Securities to the Subscriber complies with all
applicable laws of the Subscriber’s jurisdiction of residence and domicile and
(i) will not cause the Corporation or any of its officers or directors to become
subject to or require any disclosure, prospectus or other reporting requirement
and (ii) any registration or other obligation on the part of the Corporation;
and

 

(z) none of the funds the Subscriber is using to purchase the Securities are, to
the knowledge of the Subscriber, proceeds obtained or derived, directly or
indirectly, as a result of illegal activities;

 

(aa) the Subscriber acknowledges that no person has made any written or oral
representation: (i) that any person will resell or repurchase the Securities;
(ii) that any person will return the purchase price of the Securities; or (iii)
as to the future price or value of the Securities; and

 

(bb) it acknowledges that the certificates representing the Securities will bear
a restrictive legend in accordance with applicable securities legislation.

 

The Subscriber agrees that the above representations, warranties and covenants
will be true and correct both as of the execution of this subscription and as of
the Closing Time (as defined herein) and will survive the completion of the
issuance of the Securities. The Subscriber hereby agrees to notify, in writing,
the Corporation immediately of any change or any representation, warranty,
account, or other information relating to the Subscriber that may occur prior to
Closing. The Subscriber agrees to indemnify and hold harmless the Corporation
and its directors, officers, employees, counsel, advisors and shareholders from
and against any and all loss, liability, claim, damage and expense whatsoever
including, but not limited to, any fees, costs and expenses whatsoever
reasonably incurred in investigating, preparing or defending against any
litigation, administrative proceeding or investigation commenced or threatened
or any claim whatsoever arising out of or based upon any representation or
warranty of the Subscriber contained herein or in any document furnished by the
Subscriber to the Corporation or its counsel in connection herewith being untrue
in any material respect or any breach or failure by the Subscriber to comply
with any covenant or agreement made by the Subscriber herein or in any document
furnished by the Subscriber to the Corporation or its counsel in connection
herewith.

 

In making an investment decision, investors must rely on their own examination
of the Corporation and the terms of the Offering, including the merits and risks
involved. These securities have not been recommended or approved or disapproved
by any securities commission or regulatory authority. Furthermore, the foregoing
authorities have not confirmed the accuracy or determined the adequacy of this
document. Any representation to the contrary is an offence.

 

5

--------------------------------------------------------------------------------

CANADA – AB, BC, ONT

 

Closing

 

6. The Subscriber agrees to deliver to the Corporation, c/o of its counsel,
Burnet, Duckworth & Palmer LLP at 1400, 350 – 7th Avenue S.W., Calgary, Alberta
T2P 3N9, Attn: Michael D. Sandrelli, as soon as possible and, in any event, not
later than 2:00 p.m. (Calgary time) on December 26, 2002 (or two business days
before the Closing Date of which the Subscriber receives notice): (a) this duly
completed and executed Subscription Agreement; (b) if the Subscriber is a
resident of Alberta or British Columbia and is purchasing as an “accredited
investor”, a duly executed Representation Letter, attached hereto as Exhibit
“1”; (c) if the Subscriber is a resident of Ontario, a duly executed
Representation Letter, attached hereto as Exhibit “2”; (d) a duly completed
Toronto Stock Exchange private placement questionnaire and undertaking, attached
hereto as Exhibit “3”; (e) such other documents as may be requested as
contemplated by subsection 5(t) hereof; and (f) a certified cheque or bank draft
payable to “Bakbone Software Incorporated” for the aggregate Subscription Price
or payment of the aggregate Subscription Price in such other manner as is
acceptable to the Corporation.

 

7. The sale of the Common Shares will be completed at the offices of counsel to
the Corporation, Burnet, Duckworth & Palmer LLP in Calgary, Alberta at 9:00 a.m.
(Calgary time), or such other time as the Corporation may determine (the
“Closing Time”) on December 30, 2002 or such date as the Corporation may elect
(the “Closing Date”).

 

8. The Subscriber hereby irrevocably authorizes the Corporation: (a) to act as
its representative at the closing and to execute in its name and on its behalf
all closing receipts and documents required; (b) to complete or correct any
errors or omissions in any form or document provided by the Subscriber; (c) to
receive on its behalf certificates representing the Common Shares purchased
under this subscription; and (d) to approve any opinions, certificates or other
documents addressed to the Subscriber.

 

9. The Corporation and its counsel shall be entitled to rely on delivery of a
facsimile copy of executed Subscription Agreements, and acceptance by the
Corporation of such agreements shall be legally effective to create a valid and
binding agreement between the Subscriber and the Corporation in accordance with
the terms hereof. Notwithstanding the foregoing, the Subscriber shall deliver
originally executed copies of the documents listed in Section 6 hereof to the
Corporation within two business days of the Closing Date. In addition, this
Subscription Agreement may be executed in counterparts, each of which shall be
deemed an original and all of which shall constitute one and the same document.

 

10. The Subscriber expressly waives and releases the Corporation from, to the
fullest extent permitted by law, all rights of withdrawal to which it might
otherwise be entitled pursuant to the provisions of securities laws of the
jurisdiction in which the Subscriber is resident.

 

General

 

11. The representations, warranties and covenants of the Subscriber herein are
made with the intent that they be relied upon in determining the suitability of
a purchaser of Securities and will be true and correct at the Closing Time on
the Closing Date and the Subscriber agrees to indemnify the Corporation and its
directors and officers against all losses, claims, costs, expenses and damages
or liabilities which any of them may suffer or incur caused or arising from
reliance thereon. The Subscriber undertakes to immediately notify the
Corporation at Bakbone Software Incorporated, 10145 Pacific Heights Boulevard,
Suite 900, San Diego, CA 92121, Attention: John Fitzgerald, Chief Financial
Officer, of any change in any statement or other information relating to the
Subscriber set forth herein which takes place prior to the Closing Time on the
Closing Date.

 

12. The contract arising out of this Subscription Agreement shall be governed by
and construed in accordance with the laws of the Province of Alberta and the
laws of Canada applicable therein and the Subscriber and the Corporation each
irrevocably attorn to the jurisdiction of the courts of the Province of Alberta.

 

13. Time shall be of the essence hereof.

 

14. This Subscription Agreement represents the entire agreement of the parties
hereto relating to the subject matter hereof and there are no representations,
covenants or other agreements relating to the subject matter hereof except as
stated or referred to herein.

 

15. The Subscriber acknowledges and agrees that all costs incurred by the
Subscriber (including any fees and disbursements of any special counsel retained
by the Subscriber) relating to the sale of the Securities to the Subscriber
shall be borne by the Subscriber.

 

6

--------------------------------------------------------------------------------

CANADA – AB, BC, ONT

 

16. The terms and provisions of this Subscription Agreement shall be binding
upon and enure to the benefit of the Subscriber and the Corporation and their
respective heirs, executors, administrators, successors and assigns; provided
that, except for the assignment by a Subscriber who is acting as nominee or
agent to the beneficial owner and as otherwise herein provided, this
Subscription Agreement shall not be assignable by any party without prior
written consent of the other parties.

 

17. The Corporation will have the right to accept or reject the Subscriber’s
offer to purchase at any time at or prior to the Closing Time. Notwithstanding
the foregoing, the Subscriber acknowledges and agrees that the acceptance of the
subscription agreement will be conditional among other things upon the sale of
the Securities to the Subscriber being exempt from any prospectus and offering
memorandum requirements of all applicable securities laws. The Corporation will
be deemed to have accepted this subscription agreement upon the delivery at
closing of the certificates representing the Securities to or upon the direction
of the Subscriber in accordance with the provisions hereof.

 

18. The Subscriber, on its own behalf and, if applicable, on behalf of others
for whom it is contracting hereunder, agrees that this offer is made for
valuable consideration and may not be withdrawn, cancelled, terminated or
revoked by the Subscriber, on its own behalf and, if applicable, on behalf of
others for whom it is contracting hereunder.

 

19. Neither this subscription agreement nor any provision hereof shall be
modified, changed, discharged or terminated except by an instrument in writing
signed by the party against whom any waiver, change, discharge or termination is
sought.

 

20. The covenants, representations and warranties contained herein shall survive
the closing of the transactions contemplated hereby.

 

7

--------------------------------------------------------------------------------

CANADA – AB, BC, ONT

 

ALBERTA AND BRITISH COLUMBIA RESIDENTS PURCHASING AS ACCREDITED INVESTORS

 

EXHIBIT “1”

REPRESENTATION LETTER

 

TO: Bakbone Software Incorporated (the “Corporation”)

 

In connection with the purchase by the undersigned purchaser (the “Purchaser”)
of that number of units (“Units”) in the capital of the Corporation as set out
in the attached Subscription Agreement, the Purchaser hereby represents,
warrants, covenants and certifies to the Corporation that:

 

1. The Purchaser is resident in Alberta or British Columbia or is subject to the
laws of the Province of Alberta or British Columbia;

 

2. The Purchaser is purchasing the Units as principal;

 

3. The Purchaser is an “accredited investor” within the meaning of Multilateral
Instrument 45-103 entitled “Capital Raising Exemptions” by virtue of satisfying
the indicated criterion as set out in Appendix “A” to this Representation
Letter;

 

4. The above representations, warranties and covenants will be true and correct
both as of the execution of this agreement and as of the Closing Time and will
survive the completion of the issuance of Units; and

 

5. The foregoing representations, warranties and covenants are made by the
undersigned with the intent that they be relied upon in determining its
suitability as a purchaser of Units and the undersigned agrees to indemnify the
Corporation and its directors and officers against all losses, claims, costs,
expenses and damages or liabilities which any of them may suffer or incur caused
or arising from reliance thereon. The undersigned undertakes to immediately
notify the Corporation at Bakbone Software Incorporated, 10145 Pacific Heights
Boulevard, Suite 900, San Diego, CA 92121, Attention: John Fitzgerald, Chief
Financial Officer, of any change in any statement or other information relating
to the Subscriber set forth herein which takes place prior to the Closing Time.

 

Dated:             , 200    

           

--------------------------------------------------------------------------------

Print name of Purchaser

   

By:

 

 

--------------------------------------------------------------------------------

       

Signature

       

 

--------------------------------------------------------------------------------

       

Title

 

IMPORTANT: PLEASE INITIAL APPENDIX “A” ON THE NEXT PAGE.

 

--------------------------------------------------------------------------------

CANADA – AB, BC, ONT

 

APPENDIX “A”

 

Accredited Investor - (defined in Multilateral Instrument 45-103) means:

 

___                       (a)    a Canadian financial institution, or an
authorized foreign bank listed in Schedule III of the Bank Act (Canada),
___                       (b)    the Business Development Bank of Canada
incorporated under the Business Development Bank of Canada Act (Canada),
___                       (c)    an association under the Cooperative Credit
Associations Act (Canada) located in Canada, ___                       (d)    a
subsidiary of any person or company referred to in paragraphs (a) to (c), if the
person or company owns all of the voting securities of the subsidiary, except
the voting securities required by law to be owned by directors of that
subsidiary, ___                       (e)    a person or company registered
under the securities legislation, or under the securities legislation of another
jurisdiction of Canada, as an adviser or dealer, other than a limited market
dealer registered under the Securities Act (Ontario), ___                      
(f)    an individual registered or formerly registered under the securities
legislation, or under the securities legislation of another jurisdiction of
Canada, as a representative of a person or company referred to in paragraph (e),
___                       (g)    the government of Canada or a province, or any
crown corporation or agency of the government of Canada or a province,
___                       (h)    a municipality, public board or commission in
Canada, ___                       (i)    any national, federal, state,
provincial, territorial or municipal government of or in any foreign
jurisdiction, or any agency of that government, ___                       (j)   
a pension fund that is regulated by either the Office of the Superintendent of
Financial Institutions (Canada) or a provincial pension commission or similar
regulatory authority, ___                       (k)    a registered charity
under the Income Tax Act (Canada), ___                       (l)    an
individual who, either alone or jointly with a spouse, beneficially owns,
directly or indirectly, financial assets having an aggregate realizable value
that before taxes, but net of any related liabilities, exceeds $1,000,000,
___                       (m)    an individual whose net income before taxes
exceeded $200,000 in each of the two most recent years or whose net income
before taxes combined with that of a spouse exceeded $300,000 in each of the two
most recent years and who, in either case, reasonably expects to exceed that net
income level in the current year, ___                       (n)    a
corporation, limited partnership, limited liability partnership, trust or
estate, other than a mutual fund or non-redeemable investment fund, that had net
assets of at least $5,000,000 as shown on its most recently prepared financial
statements, ___                       (o)    a mutual fund or non-redeemable
investment fund that, in the local jurisdiction, distributes its securities only
to persons or companies that are accredited investors, ___                      
(p)    a mutual fund or non-redeemable investment fund that, in the local
jurisdiction, distributes its securities under a prospectus for which the
regulator has issued a receipt,

 

--------------------------------------------------------------------------------

CANADA – AB, BC, ONT

 

___                       (q)    an entity organized in a foreign jurisdiction
that is analogous to any of the entities referred to in paragraphs (a) through
(e) and paragraph (j) in form and function, or ___                       (r)   
a person or company in respect of which all of the owners of interests, direct
or indirect, legal or beneficial, are persons or companies that are accredited
investors;

 

NOTE: The investor should initial beside the portion of the above definition
applicable to it.

 

For the purposes hereof:

 

(a) “financial assets” means cash and securities; and

 

(b) “related liabilities” means:

 

  (i) liabilities incurred or assumed for the purpose of financing the
acquisition or ownership of financial assets; or

 

  (ii) liabilities that are secured by financial assets.

 

All monetary references are in Canadian Dollars.

 

2

--------------------------------------------------------------------------------

CANADA – AB, BC, ONT

 

ONTARIO RESIDENTS PURCHASING AS ACCREDITED INVESTORS

 

EXHIBIT “2”

REPRESENTATION LETTER

 

TO: Bakbone Software Incorporated (the “Corporation”)

 

In connection with the purchase by the undersigned purchaser (the “Subscriber”)
of that number of units (“Units”) in the capital of the Corporation as set out
in the attached Subscription Agreement, the Subscriber hereby represents,
warrants, covenants and certifies to the Corporation that:

 

1. The Subscriber is resident in Ontario or is subject to the laws of the
Province of Ontario;

 

2. The Subscriber is purchasing the Units as principal for its own account;

 

3. The Subscriber is an “accredited investor” within the meaning of Ontario
Securities Commission Rule 45-501 promulgated under the Securities Act (Ontario)
by virtue of satisfying the indicated criterion as set out in Appendix “A” to
this Representation Letter;

 

4. The above representations, warranties and covenants will be true and correct
both as of the execution of this agreement and as of the Closing Time and will
survive the completion of the issuance of Units; and

 

5. The foregoing representations, warranties and covenants are made by the
undersigned with the intent that they be relied upon in determining its
suitability as a purchaser of Units and the undersigned agrees to indemnify the
Corporation and its directors, officers and counsel against all losses, claims,
costs, expenses and damages or liabilities which any of them may suffer or incur
caused or arising from reliance thereon. The undersigned undertakes to
immediately notify the Corporation at Bakbone Software Incorporated, 10145
Pacific Heights Boulevard, Suite 900, San Diego, CA 92121, Attention: John
Fitzgerald, Chief Financial Officer of any change in any statement or other
information relating to the Subscriber set forth herein which takes place prior
to the Closing Time.

 

Dated:                 , 200  

           

--------------------------------------------------------------------------------

Print name of Subscriber

   

By:

 

 

--------------------------------------------------------------------------------

       

Signature

       

 

--------------------------------------------------------------------------------

       

Title

 

IMPORTANT: PLEASE INITIAL APPENDIX “A” ON THE NEXT PAGE.

 

--------------------------------------------------------------------------------

United States Accredited Investor

 

EXHIBIT “2”

 

APPENDIX “A”

 

Accredited Investor - (defined in Ontario Securities Commission Rule 45-501)
means:

 

___               (a)    a bank listed in Schedule I or II of the Bank Act
(Canada), or an authorized foreign bank listed in Schedule III of the Bank Act
(Canada); ___   (b)    the Business Development Bank incorporated under the
Business Development Bank Act (Canada); ___   (c)    a loan corporation or trust
corporation registered under the Loan and Trust Corporations Act (Ontario) or
under the Trust and Loan Companies Act (Canada), or under comparable legislation
in any other jurisdiction; ___   (d)    a co-operative credit society, credit
union central, federation of caisses populaires, credit union or league, or
regional caisse populaire, or an association under the Cooperative Credit
Associations Act (Canada), in each case, located in Canada; ___   (e)    a
company licensed to do business as an insurance company in any jurisdiction; ___
  (f)    a subsidiary of any company referred to in paragraph (a), (b), (c), (d)
or (e), where the company owns all of the voting shares of the subsidiary; ___  
(g)    a person or company registered under the Securities Act (Ontario) or
securities legislation in another jurisdiction as an adviser or dealer, other
than a limited market dealer; ___   (h)    the government of Canada or of any
jurisdiction, or any crown corporation, instrumentality or agency of a Canadian
federal, provincial or territorial government; ___   (i)    any Canadian
municipality or any Canadian provincial or territorial capital city; ___   (j)
   any national, federal, state, provincial, territorial or municipal government
of or in any foreign jurisdiction, or any instrumentality or agency thereof; ___
  (k)    a pension fund that is regulated by either the Office of the
Superintendent of Financial Institutions (Canada) or a provincial pension
commission or similar regulatory authority; ___   (l)    a registered charity
under the Income Tax Act (Canada); ___   (m)    an individual who beneficially
owns, or who together with a spouse beneficially own, financial assets having an
aggregate realizable value that, before taxes but net of any related
liabilities, exceeds $1,000,000; ___   (n)    an individual whose net income
before taxes exceeded $200,000 in each of the two most recent years or whose net
income before taxes combined with that of a spouse exceeded $300,000 in each of
those years and who, in either case, has a reasonable expectation of exceeding
the same net income level in the current year; ___   (o)    an individual who
has been granted registration under the Securities Act (Ontario) or securities
legislation in another jurisdiction as a representative of a person or company
referred to in paragraph (g), whether or not the individual’s registration is
still in effect; ___   (p)    a promoter of the issuer or an affiliated entity
of a promoter of the issuer; ___   (q)    a spouse, parent, grandparent or child
of an officer, director or promoter of the issuer;

--------------------------------------------------------------------------------

___               (r)    a person or company that, in relation to the issuer, is
an affiliated entity or a person or company referred to in clause (c) of the
definition of distribution in subsection 1(1) of the Securities Act (Ontario);
___   (s)    an issuer that is acquiring securities of its own issue; ___   (t)
   a company, limited partnership, limited liability partnership, trust or
estate, other than a mutual fund or non-redeemable investment fund, that had net
assets of at least $5,000,000 as reflected in its most recently prepared
financial statements; ___   (u)    a person or company that is recognized by the
Ontario Securities Commission as an accredited investor; ___   (v)    a mutual
fund or non-redeemable investment fund that, in Ontario, distributes its
securities only to persons or companies that are accredited investors; ___   (w)
   a mutual fund or non-redeemable investment fund that, in Ontario, distributes
its securities under a prospectus for which a receipt has been granted by the
Director (as defined in the Securities Act (Ontario)); ___   (x)    a managed
account if it is acquiring a security that is not a security of a mutual fund or
non-redeemable investment fund; ___   (y)    an account that is fully managed by
a trust corporation registered under the Loan and Trust Corporations Act
(Ontario); ___   (z)    an entity organized outside of Canada that is analogous
to any of the entities referred to in paragraphs (a) through (g) and paragraph
(k) in form and function; and ___   (aa)    a person or company in respect of
which all of the owners of interests, direct or indirect, legal or beneficial,
are persons or companies that are accredited investors.

 

NOTE: The investor should initial beside the portion of the above definition
applicable to it.

 

For the purposes hereof:

 

(a) “company” means any corporation, incorporated association, incorporated
syndicate or other incorporated organization;

 

(b) “control person” means any person, company or combination of persons or
companies holding a sufficient number of any securities of the issuer to affect
materially the control of the issuer but any holding of any persons, company or
combination of persons or companies holding more than 20% of the outstanding
voting securities of the issuer, in the absence of evidence to the contrary,
shall be deemed to affect materially the control of the issuer;

 

(c) “director” where used in relation to a person, includes a person acting in a
capacity similar to that of a director of a company;

 

(d) “entity” means a company, syndicate, partnership, trust or unincorporated or
organization;

 

(e) “financial assets” means cash, securities, or any contract of insurance or
deposit or evidence thereof that is not a security for the purposes of the
Securities Act (Ontario);

 

(f) “individual” means a natural person, but does not include a partnership,
unincorporated association, unincorporated syndicate, unincorporated
organization, trust or a natural person in his or her capacity as trustee,
executor, administrator or other legal personal representative;

 

2

--------------------------------------------------------------------------------

(g) “managed account” means an investment portfolio account of a client
established in writing with a portfolio adviser who makes investment decisions
for the account and has full discretion to trade in securities of the account
without requiring the client’s express consent to a transaction;

 

(h) “mutual fund” includes an issuer of securities that entitle the holder to
receive on demand, or within a specified period after demand, an amount computed
by reference to the value of a proportionate interest in the whole or in a part
of the net assets, including a separate fund or trust account, of the issuer of
the securities;

 

(i) “non-redeemable investment fund” means an issuer:

 

  (i) whose primary purpose is to invest money provided by its securityholders;

 

  (ii) that does not invest for the purpose of exercising effective control,
seeking to exercise effective control, or being actively involved in the
management of the issuers in which it invests, other than other mutual funds or
non-redeemable investment funds; and

 

  (iii) that is not a mutual fund;

 

(j) “officer” means the chair, any vice-chair of the board of directors, the
president, any vice president, the secretary, the assistant secretary, the
treasurer, the assistant treasurer, and the general manager of a company, and
any other person designated an officer of a company by-law or similar authority,
or any individual acting in a similar capacity on behalf of the issuer;

 

(k) “person” means an individual, partnership, unincorporated association,
unincorporated syndicate, unincorporated organization, trust, trustee, executor,
administrator, or other legal representative;

 

(l) “portfolio adviser” means

 

  (i) a portfolio manager; or

 

  (ii) a broker or investment dealer exempted from registration as an adviser
under subsection 148(1) of the Regulation if that broker or investment dealer is
not exempt from the by-laws or regulations of The Toronto Stock Exchange or the
Investment Dealers’ Association of Canada referred to in that subsection;

 

(m) “promoter” means (a) a person or company who, acting alone or in conjunction
with one or more other persons, companies or a combination thereof, directly or
indirectly, has taken the initiative in founding, organizing or substantially
reorganizing the business of the issuer, or (b) a person or company who, in
connection with the founding, organizing or substantial reorganizing of the
business of the issuer, directly or indirectly, received in consideration of
services or property, or both services and property, 10% or more of any class of
securities of the issuer or 10% or more of the proceeds from the sale of any
class of securities of a particular issue, but a person or company who receives
such securities or proceeds either solely as underwriting commissions or solely
in consideration of property shall not be deemed a promoter within the meaning
of this definition if such person or company does not otherwise take part in
founding, organizing or substantially reorganizing the business;

 

(n) “related liabilities” means liabilities incurred or assumed for the purpose
of financing the acquisition or ownership of financial assets and liabilities
that are secured by financial assets;

 

(o) “spouse” in relation to an individual, means another individual to whom that
individual is married, or another individual of the opposite sex or the same sex
with whom that individual is living in a conjugal relationship outside marriage;

 

Affiliated Entities, Control and Subsidiaries

 

1. A person or company is considered to be an affiliated entity of another
person or company if one is a subsidiary entity of the other, or if both are
subsidiary entities of the same person or company, or if each of them is
controlled by the same person or company.

 

3

--------------------------------------------------------------------------------

2. A person or company is considered to be controlled by a person or company if

 

(a) in the case of a person or company,

 

  (i) voting securities of the first mentioned person or company carrying more
than 50% of the votes for the election of directors are held, otherwise than by
way of security only, by or for the benefit of, the other person or company, and

 

  (ii) the votes carried by the securities are entitled, if exercised, to elect
a majority of the directors of the first-mentioned person or company;

 

(b) in the case of a partnership that does not have directors, other than a
limited partnership, the second-mentioned person or company holds more than 50%
of the interests in the partnership; or

 

(c) in the case of a limited partnership, the general partner is the
second-mentioned person or company.

 

3. A person or company is considered to be a subsidiary entity of another person
or company if

 

(a) it is controlled by,

 

  (i) that other, or

 

  (ii) that other and one or more persons or companies each of which is
controlled by that other, or

 

  (iii) two or more persons or companies, each of which is controlled by that
other, or

 

(b) it is a subsidiary entity of a person or company that is the other’s
subsidiary entity.

 

All monetary references are in Canadian Dollars.

 

4

--------------------------------------------------------------------------------

EXHIBIT “3”

 

THE TORONTO STOCK EXCHANGE

 

PRIVATE PLACEMENT QUESTIONNAIRE AND UNDERTAKING

 

1.

   DESCRIPTION OF TRANSACTION

(a)

   Name of Issuer of the Securities - BAKBONE SOFTWARE INCORPORATED

(b)

   Number and Class of Securities to be Purchased -     
                        Common Shares of Bakbone Software Incorporated

(c)

   Purchase Price:    $0.88 (Canadian) per Common Share.

2.

   DETAILS OF PURCHASER

(a)

   Name of Purchaser -

(b)

   Address -

(c)

   Names and addresses of persons having a greater than 10% beneficial interest
in the purchaser –     

--------------------------------------------------------------------------------

3.

   RELATIONSHIP TO ISSUER

(a)

   Is the purchaser (or any person named in response to 2(c) above) an insider
of the issuer for the purposes of the Ontario Securities Act (before giving
effect to this private placement)? If so, state the capacity in which the
purchaser (or person named in response to 2(c)) qualifies as an insider –     

--------------------------------------------------------------------------------

(b)

   If the answer to (a) is “no”, are the purchaser and the issuer controlled by
the same person or company? If so, give details.     

--------------------------------------------------------------------------------

4.

   DEALINGS OF PURCHASER IN SECURITIES OF THE ISSUER Give details of all trading
by the purchaser, as principal, in the securities of the issuer (other than debt
securities which are not convertible into equity securities), directly or
indirectly, within the 60 days preceding the date hereof -

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

 

5

--------------------------------------------------------------------------------

UNDERTAKING

 

TO: The Toronto Stock Exchange

 

The undersigned has subscribed for and agreed to purchase, as principal, the
securities described in Item 1 of this Private Placement Questionnaire and
Undertaking.

 

The undersigned undertakes not to sell or otherwise dispose of any of the said
securities so purchased or any securities derived therefrom for a period of four
months from the date of the closing of the transaction herein or for such period
as is prescribed by applicable securities legislation,whichever is longer,
without the prior consent of The Toronto Stock Exchange and any other regulatory
body having jurisdiction.

 

DATED AT                                                                       

--------------------------------------------------------------------------------

(Name of Purchaser)

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

(Authorized Signature)

this         day of                         , 200  

 

--------------------------------------------------------------------------------

(Official Capacity)

   

--------------------------------------------------------------------------------

(Please print here name of individual whose signature appears above, if
different from name of purchaser printed above)

 

6

--------------------------------------------------------------------------------

APPENDIX

 

The following current directors of BakBone Software Incorporated were issued
Common Shares and Warrants to purchase Common Shares pursuant to this form of
Subscription for Units in the amounts indicated below:

 

     Common
Shares
Issued

--------------------------------------------------------------------------------

   Warrants
Issued

--------------------------------------------------------------------------------

Neil MacKenzie

   113,600    56,800

Jeff Lawson

   64,700    32,350

Archibald Nesbitt

   100,000    50,000