# EDGAR Filing Document

**Accession Number:** 0001879001
**File Stem:** 0001641172-25-019545
**Filing Date:** 2025-7
**Character Count:** 1239754
**Document Hash:** 9eb11b479f937b500a17c31f854dd5db
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-019545.hdr.sgml**: 20250714

**ACCESSION NUMBER**: 0001641172-25-019545

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 144

**CONFORMED PERIOD OF REPORT**: 20250331

**FILED AS OF DATE**: 20250714

**DATE AS OF CHANGE**: 20250714

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Verses AI Inc.
- **CENTRAL INDEX KEY:** 0001879001
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56692
- **FILM NUMBER:** 251122518

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 595 HOWE STREET
- **STREET 2:** 10TH FLOOR
- **CITY:** VANCOUVER
- **PROVINCE COUNTRY:** A1
- **ZIP:** V6C2T5
- **BUSINESS PHONE:** (310) 988-1944

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 595 HOWE STREET
- **STREET 2:** 10TH FLOOR
- **CITY:** VANCOUVER
- **PROVINCE COUNTRY:** A1
- **ZIP:** V6C2T5

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Verses Technologies Inc.
- **DATE OF NAME CHANGE:** 20210818

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K**

**☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the fiscal year ended March 31, 2025

**☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from ______ to ______

Commission file number 000-56692

**<u>VERSES AI INC.</u>**

(Exact name of registrant as specified in charter)

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| | |
|:---|:---|
| **British Columbia, Canada** | **88-2921736** |
| (State or other jurisdiction of <br> incorporation or organization) | I.R.S. Employer <br> Identification No. |

---

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| | |
|:---|:---|
| **2121 Avenue of the Stars, 8th Floor**<br> Los Angeles, CA | **90067** |
| (Address of principal executive offices) | (Zip code) |

---

**(310) 988-1944**

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: **None.**

Securities registered pursuant to Section 12(g) of the Act: **None.**

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act) Yes ☐ No ☒

The aggregate market value of the voting stock and non-voting common equity held by non-affiliates of the registrant as of the last business day of the registrant's most recently completed second fiscal quarter ended September 30, 2024 was approximately $5.3 million based upon the closing price of the registrant's Class A Subordinate Voting Shares of $14.09 on the OTCQB as of September 30, 2024.

As of July 11, 2025, there were 9,847,199 shares of the Registrant's Class A Subordinate Voting Shares, without par value, outstanding.

Documents Incorporated by Reference: None.

**Table of Contents**

---

| | | |
|:---|:---|:---|
| **[Part I](#a_001)** |  | 7 |
| Item 1. | [Business](#a_002) | 7 |
| Item 1A. | [Risk Factors](#a_003) | 18 |
| Item 1B. | [Unresolved Staff Comments](#a_004) | 31 |
| Item 1C. | [Cybersecurity](#a_005) | 31 |
| Item 2. | [Properties](#a_006) | 31 |
| Item 3. | [Legal Proceedings](#a_007) | 32 |
| Item 4. | [Mine Safety Disclosures](#a_008) | 32 |
| [**Part II**](#a_009) |  | 33 |
| Item 5. | [Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#a_010) | 33 |
| Item 6. | [\[Reserved\]](#a_011) | 35 |
| Item 7. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_012) | 35 |
| Item 7A. | [Quantitative and Qualitative Disclosures about Market Risk](#a_013) | 48 |
| Item 8. | [Financial Statements and Supplementary Data](#a_014) | F-1 |
| Item 9. | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#a_015) | 49 |
| Item 9A. | [Controls and Procedures](#a_016) | 49 |
| Item 9B. | [Other Information](#a_017) | 50 |
| Item 9C. | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#a_018) | 50 |
| **[Part III](#a_019)** |  | 50 |
| Item 10. | [Directors, Executive Officers and Corporate Governance](#a_020) | 50 |
| Item 11. | [Executive Compensation](#a_021) | 56 |
| Item 12. | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#a_022) | 61 |
| Item 13. | [Certain Relationships and Related Transactions, and Director Independence](#a_023) | 62 |
| Item 14. | [Principal Accountant Fees and Services](#a_024) | 63 |
| **[Part IV](#a_025)** |  | 65 |
| Item 15. | [Exhibit and Financial Statement Schedules](#a_026) | 65 |
| Item 16. | [Form 10-K Summary](#a_027) | 66 |
| [Signatures](#a_028) |  | 67 |

---

**CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS**

This Annual Report on Form 10-K contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Any statements in this Annual Report on Form 10-K about our expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "believe," "will," "expect," "anticipate," "estimate," "intend," "plan" and "would." For example, statements concerning financial condition, possible or assumed future results of operations, growth opportunities, industry ranking, plans and objectives of management, markets for our Class A Subordinate Voting Shares and future management and organizational structure are all forward-looking statements. Forward-looking statements are not guarantees of performance. They involve known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to differ materially from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement.

Any forward-looking statements are qualified in their entirety by reference to the risk factors discussed throughout this Annual Report on Form 10-K. Some of the risks, uncertainties and assumptions that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, but are not limited to:

● the competitive and business strategies of the Company (as defined herein);

● the Company's research roadmap and expectations regarding the Company's development of artificial intelligence ("AI");

● the Company's participation in AI benchmark challenges and expectations regarding the public release timeline of Genius (as defined herein);

● market prices, values and other economic indicators;

● receipt and timing of any required governmental, regulatory and third-party approvals, licenses and permits;

● the performance of the Company's business and operations;

● the intention to grow the business, operations and potential activities of the Company;

● the Company's competitive positioning;

● the Company's anticipated partnerships and agreements with third parties and the expected outcomes of such partnerships and agreements;

● possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action;

● timing, costs and potential success of future activities on the Company's facilities and projects;

● future outlook and goals relating to the Company's strategy;

● whether the Company will have sufficient working capital and its ability to raise additional financing required in order to continue development of its business and continue operations;

● the Company's expected reliance on key management personnel, advisors and consultants;

● the Company's intended compensation policy and practices and compensation structure;

● the capabilities of Genius and Genius-based applications;

● the development and roll-out of Genius and Genius-based applications;

● the expected competitive aspects of Genius and Genius-based applications in the market;

● the scalability of the Spatial Web (as defined herein) and Genius;

● beliefs and intentions regarding the ownership or potential ownership of any material patents, trademarks and domain names used in connection with the Company's products and services;

● analyses and other information based on expectations of future performance and planned products;

● planned expenditures and budgets and the execution thereof; and

● anticipated results and developments in the Company's operations in future periods and other matters which may occur in the future.

Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including, without limitation, assumptions about:

● possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action;

● general economic, financial market, regulatory and political conditions in which the Company operates;

● general demand and consumer interest in the Company's products;

● the competitive environment in which the Company operate;

● the ability of the Company to grow its market share and the Company's growth outlook;

● anticipated and unanticipated costs that the Company may face;

● estimated contracted revenue, revenue structures and revenue from operations;

● there being no significant delays in the development and commercialization of Genius and other products and services;

● the ability of the Company to raise any necessary capital on acceptable terms;

● the ability of the Company to anticipate future needs of clients and partners;

● the ability of the Company to maintain and effect sufficient research and development capabilities;

● the ability of the Company to execute the Company's growth, sales and customer acquisition strategies;

● the ability of the Company to attract and retain skilled personnel;

● the ability of the Company to obtain qualified staff and in a timely and cost-efficient manner;

● there being no significant barriers to the acceptance of the Company's products and services;

● the continued adoption and acceptance of the Spatial Web;

● stability in financial and capital markets;

● fluctuations in capital markets and share prices;

● the accuracy of budgeted costs and expenditures;

● future currency exchange rates and interest rates;

● the timely receipt of any required governmental, regulatory and third-party approvals, license and permits on favorable terms and any required renewals of the same;

● legislation and regulation favoring the furtherance of AI applications; and

● requirements under applicable laws.

While the Company considers these assumptions to be reasonable, the assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking information. Many assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct.

Furthermore, by their very nature, forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, events, results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, without limitation: the industry-wide risks; fluctuations in capital markets and share prices; price volatility; risks related to the ability to obtain financing needed to fund the continued development of the Company's business; changes in the Company's business plans; risks related to the Company's limited operating history; the Company requiring additional funding to maintain operations; risks related to the Company's negative cashflow from operating activities; the Company's failure to implement its growth strategy; risks related to conflicts of interest involving the Company's management; risks related to the uncertainty of the Company's use of available funds; risks related to proprietary AI algorithms; the failure of the Company to manage its growth; risks related to the Company's reliance on strategic partnerships; risk associated with security breaches; risk associated with software errors or defects; risks associated with insufficient insurance coverage; the Company's failure to maintain, promote and enhance its brand; the Company's dependence on customer Internet access and use of Internet for commerce; risks associated with privacy and security of sensitive information; risks associated with changes in technology affecting the Company's business and products; risks associated with the competitive environment of the Company's industry; risks associated with the uncertainty of market opportunity estimates and growth forecasts; risks associated with reputational damage; the Company's inability to protect its intellectual property; the volatility of the global economy; the Company's dependence on management and key personnel; risks associated with government regulation affecting the Company; the Company being subject to civil or other legal proceedings; risks related to reporting requirements arising from the Company's reporting issuer status; risks associated with future acquisitions; risks related to the maintenance of effective internal controls by the Company; the potential that no active or liquid market for the Class A Subordinate Voting Shares may develop or be sustained; the speculative nature of an investment in the Class A Subordinate Voting Shares; risk that the market price of the Class A Subordinate Voting Shares may not represent the Company's performance or intrinsic value; risks associated with the influence of reports published by securities or industry analysts on the trading market of the Class A Subordinate Voting Shares; risks associated with price volatility of publicly traded securities; risks associated with the future dilution of the Company's securities; risks associated the payment of dividends; and other risks discussed under "*Risk Factors*" below.

The foregoing is not an exhaustive list of the risks and factors that may affect the Company's forward-looking information. Although the Company has attempted to identify important factors that could affect the Company and may cause actual actions, events, conditions, results, performance or achievements to differ materially from those described in the forward-looking information, there may be other factors that cause actions, events, conditions, results, performance or achievements not to be as anticipated, estimated or intended. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

The Company cautions that the foregoing lists of important assumptions and factors are not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking information contained in this Annual Report on Form 10-K. You should read this Annual Report on Form 10-K and the documents that we reference herein and have filed as exhibits to the Annual Report on Form 10-K, completely and with the understanding that our actual future results may be materially different from what we expect. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. You should assume that the information appearing in this Annual Report on Form 10-K is accurate as of the date hereof. Accordingly, readers should not place undue reliance on forward-looking information. Except as required by law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

We qualify all of the information presented in this Annual Report on Form 10-K, and particularly our forward-looking statements, by these cautionary statements.

**INDUSTRY, MARKET AND OTHER DATA**

In this Annual Report on Form 10-K, we rely on and refer to information and statistics regarding our market share and the markets in which we compete. We have obtained some of this market share information and industry data from internal surveys, market research, publicly available information and industry publications. Such reports generally state that the information contained therein has been obtained from sources believed to be reliable, but the accuracy or completeness of such information is not guaranteed. Although we believe this information is reliable, we have not independently verified, nor can we guarantee, the accuracy or completeness of that information.

**TRADEMARKS AND TRADE NAMES**

Genius™, WAYFINDER™ and other trademarks or service marks of ours appearing in this prospectus are our property. This prospectus also contains additional trade names, trademarks and service marks belonging to other parties. We do not intend our use or display of other parties' trademarks, trade names or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, these other parties. Solely for convenience, the trademarks, service marks and trade names referred to in this prospectus may appear without the®, <sup>TM</sup> or <sup>SM</sup> symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, service marks and trade names.

**PART I**

Throughout this Annual Report on Form 10-K, the "Company," "VERSES," "we," "us," and "our" refers to Verses AI Inc., individually, or as the context requires, collectively with its subsidiaries. Unless stated otherwise or the context otherwise requires, in this Annual Report on Form 10-K, references to "CAD$" are to Canadian dollars and references to "$" are to United States dollars. On March 31, 2025, the noon buying rates in New York City for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank of New York, referred to as the "Noon Buying Rate", for the conversion of Canadian dollars into United States dollars was CAD$1.00 equals $0.6956.

**ITEM 1. BUSINESS**

**Overview**

VERSES is a cognitive computing company specializing in next generation intelligence software systems. We are primarily focused on developing an intelligence-as-a-service smart software platform called Genius.

We launched a private beta program of Genius in early 2024 with a few select users with whom we had existing business relationships and launched a public beta program for a broader number of developers in the second half of 2024.

On April 30, 2025, we announced the launch of our flagship product, Genius, which is designed to enable agentic intelligence for enterprises. The initial target audience for Genius is machine learning and data science professionals trying to solve enterprise problems that require prediction where there is uncertainty or hidden factors. Genius is designed to provide the tools necessary to build domain-specific models that are intended to improve decision-making (inference as a service) for third-party agents through our software development kits/application programming interfaces and model editor. We intend to market Genius to developers as a Software-as-a-Service ("SaaS") for making their applications smarter, safer and more sustainable. We anticipate offering multiple subscription tiers priced based on usage and pricing will be informed by various performance metrics gathered during the beta program.

Genius includes:

● Intelligent, autonomous software agents

● A visual model editor for building and testing AI models

● APIs to integrate with existing enterprise systems

● A full-featured developer portal for rapid deployment

Since the launch of Genius we have announced new customers and resellers in a number of sectors and use cases including smart cities (Analog), financial services, workforce scheduling, IT consulting and manufacturing

**Background**

We believe civilization is transitioning from the information age to the intelligence age. However, despite the large potential addressable market, we believe the AI industry faces several challenges, such as:

● *Unreliability.* According to recent surveys, the majority of U.S. companies that have invested in AI report that they have scaled their investment. We believe that this is because mainstream AI approaches cannot be relied upon in high stakes enterprise situations such as running a bank or operating a factory.

● *Technological Limitations*: Current AI approaches are limited primarily to sophisticated pattern recognition but do not have the ability to understand the world, or to reason, plan, and learn. AI models based on the mainstream approach to Deep Learning ("DL") and Reinforcement Learning ("RL") are constrained by the quantity and quality of data. Moreover, once trained, a model is not updatable.

● *Narrowly Applicable and Lack of Interoperability*: The textual and graphical outputs of Generative AI models such as ChatGPT (OpenAI), Gemini (Google), Midjourney, and others are single purpose tools, and we believe they are incapable of adapting to and overcoming changing conditions and uncertainty, learning new concepts and performing a broad array of tasks and activities. To achieve human-level intelligence and beyond, we believe that software agents must not only understand and be curious about what they are doing and why they are doing it, but they must also be able to adapt, share what they learn, and explain how they learned it.

● *Scale*: Generative AI is expensive to develop, requiring massive amounts of data, labor, computation, and energy.

● *Network Design*: While Artificial "General" or "Super" Intelligence is generally portrayed as a single entity, an all-knowing monolithic artificial brain, we believe that the apex of the intelligence age will more likely be a distributed network or ecosystem of intelligences, both synthetic and natural.

● *Lack of Vision*: Digital Transformation, a concept typically associated with terms such as Web 3.0, Industry 4.0, the Metaverse, the Internet of Things ("IoT"), Smart Cities and Digital Twins, each with a slightly different emphasis, in our view, lacks a specific prescription for how to attain the overarching vision.

**Our Approach to Developing Artificial Intelligence**

Our strategy has been different to LLM companies, and draws inspiration from human intelligence and the human brain, which has evolved to be efficient at thriving in our world. For example, a human brain operates on only 20 Watts and can quickly adapt to a changing environment.

The brain models the world and evaluates it against what it senses. To do this, the brain runs experiments, assesses how well its model works, and then tests this model in the real world. Based on the results, the brain model decides whether to keep the current model or adapt it to better match reality.

Professor Karl Friston, is our Chief Scientist and one of the world's most cited neuroscientist. He and others have, over the last few decades, described this brain evaluation process of adaptation as 'active inference'.

In collaboration with Professor Friston, Verses approaches active inference providing three unique differentiators from other AI models.

&nbsp;&nbsp;&nbsp;&nbsp;1. Level
 of detail. Genius is designed to zoom in or out in the same way that people can view their
 house on Google Maps at a very high zoom level, seeing the trampoline in their garden, or
 at a very low zoom level, seeing the city or country. Our models can be efficient by zooming
 in and out on specific problems.

2. Specialization.
 Genius is designed to break up problem solving in the same way that the human brain breaks
 up problem solving. For instance, the occipital lobe deals with vision, while the temporal
 lobe deals with planning.

3. Network
 Effects. Genius enables data, devices and agents to work together, just as humans can be
 more effective working as a team.

Using this approach, we recently unveiled what we believe is the world's first digital brain, AXIOM, which has different regions, with modules for vision, memory, prediction and reasoning. These then recombine to work together to sense, reason, plan, act and learn.

In benchmarking AXIOM, we believe that is both more reliable and dramatically more efficient than other top models.

We believe that our approach gives us a competitive advantage in several key areas:

● Product advantage: Our approach provides the mathematical foundation for how our AI learns and makes decisions. We believe that this results in models that are more explainable to humans and easier to trust, which is particularly important in regulated or high-stakes environments.

· ● Technical advantage: Because our approach is grounded in real-world physics, we believe it enables us to model physical and biological systems more accurately than traditional digital-only approaches. This is especially useful for enterprise applications involving real-world processes, such as optimizing supply chains, designing materials, or modeling human behavior. This approach allows us to automate decisions in uncertainty

· ● Efficiency advantage: Because our approach mirrors nature, we believe our approach provides advantages in terms of efficiency in both power consumption and in speed.

**Product Offerings**

***Genius***

 ****

We launched our product, Genius, in April 2025 which we believe is a cutting edge agentic enterprise intelligence platform for rapidly building reliable domain-specific predictions and decisions, and is particularly useful for problems where there is volatility, uncertainty, complexity or ambiguity. We continue to develop it further to add functionality. Genius is designed from the ground up to accelerate time-to-value for machine learning researchers, engineers and data scientists working on enterprise-class challenges.

**Competition**

The markets in which we operate are competitive and evolving rapidly. Genius directly or indirectly competes in a number of categories against leaders in AI including Scale AI, OpenAI, Anthropic, Cohere, C3 AI, and Mistral, all of which employ an approach that can be classified as generative AI.

The principal competitive factors in the Company's market are:

● the ability to provide capabilities that reliably and efficiently meet current and future technology requirements;

● ease of deployment;

● explainability;

● customer relationship, reputation, and brand recognition;

● resources for customer, technology and platform supports; and

● strength of sales and marketing efforts.

VERSES expects competition to evolve as the market continues to grow, evolve and attract new market entrants, especially smaller emerging companies focused on different AI tools and platforms.

**Competitive Strengths**

We believe that we have several competitive advantages including, but not limited to the following:

● *Team and Domain Expertise*. Professor Karl Friston, our Chief Scientist, developed the Active Inference framework. The Company's research and development team is composed of experienced researchers and engineers from a range of disciplines including neuroscience, robotics, enterprise SaaS, media, and systems integrations.

● *Spatial Web*. VERSES has worked closely on the recently approved IEEE P2874 Spatial Web Standard designed to address interoperability and trust. VERSES plans to support the P2874 standards in future releases of Genius. This will enable enterprises to develop intelligent agents interoperate more easily and obey enterprise-defined policies and laws. For Genius customers, this can mean quicker development and deployment and lower integration costs.

● *Product and research*. We believe Genius allows our customers to accelerate time-to-value for machine learning researchers, engineers and data scientists working on enterprise-class challenges.

● *Strategic Relationships*. VERSES is focused on a multi-pronged approach to fostering relationships with channel partners and systems integrators.

**Growth Strategy**

It is the intention that Genius serve various roles for different end users in many different markets. These markets will require different growth strategies, pricing models, industry partnerships and sales cycles.

● Genius: In order to demonstrate the versatility and broad applicability of what we believe is Genius' unique value proposition – adaptive intelligence – we anticipate working closely with domain experts, consultants and resellers in various verticals and supporting their implementations.

● Strategic & Accretive M&A: From time to time, we may identify acquisition opportunities that are in similar verticals to us that could have a number of benefits including: expanding customer relationships, accelerating AI tools and leveraging additional AI infrastructure. These opportunities could range materially in size and scale. Any determination to act in this regard will be based on market conditions and opportunities existing at the time and accordingly, the timing, size or success of any efforts and associated potential capital commitments are unpredictable.

**Sales and Marketing**

Our sales team focuses on new sales opportunities mostly within our enterprise and channel partner ecosystem.

To generate demand, we have developed a library of whitepapers, demonstrations and proofs-of-concept generated by our research and development ("R&D") team to help qualify and quantify the business value of continued investment or inspire new product development.

**Research and Development**

Our AI R&D team, led by Chief Scientist, Professor Karl Friston, is composed of experts in computational neuroscience, which is the study of the principles that govern the development, structure, physiology, and cognitive abilities of the brain and the nervous system, and how these mathematical and statistical models can be applied in software.

The core function of our R&D team is to explore new techniques and emerging technologies while working closely with our engineering staff to align outcomes with commercial product objectives. Among other things, the team generates whitepapers, demonstrations and proofs-of-concept in order to help qualify and quantify the business value of continued investment or inspire new product development.

Our team of multi-PhD researchers have collectively published over 2,000 papers and bring a diverse set of competencies and expertise including:

● Active Inference;

● Bayesian Scene Graphs;

● Category Theory;

● Cognition and Neuroscience Modeling;

● Computational Phenomenology;

● Control Theory;

● Eco-Bio-Psycho-Social;

● Free Energy Principle;

● Model-based Reinforcement Learning;

● Social Sciences (philosophy, neuroscience, psychology, anthropology); and

● Swarm Intelligence.

Currently, we only use open-source datasets such as MNIST and CIFAR. We have no plans to use any personally-identifiable-information or other form sensitive data to train our systems, and we intend to avoid storing and/or processing any personally-identifiable-information or other sensitive information about or from members of the public to the fullest extent possible.

**Recent Developments**

On April 28, 2025, the Company announced the closing of a registered securities offering in Canada pursuant to which the Company sold 916,666 units at a price of $8.64 (CAD$12.00) per unit for gross process of approximately $7.9 million (CAD$11.0 million). Each unit consists of one Class A Subordinate Voting Share and one-half of one share purchase warrant. Each whole warrant entitles the holder to purchase one Class A Subordinate Voting Share at an exercise price of $10.80 (CAD$15.00) per share, subject to adjustment as provided therein, for a period of 36 months from the date of issuance. In connection with the offering, the Company paid the agents a cash commission equal to $432,540 (CAD$600,000) and issued the agents warrants ("Compensation Warrants") to purchase up to 70,334 Class A Subordinate Voting Shares. Each Compensation Warrant is exercisable into one Class A Subordinate Voting Share at an exercise price of $8.64 (CAD$12.00) per share, subject to adjustment as provided therein, for a period of 36 months from the date of issuance.

On June 23, 2025, the Company effectuated a one-for-three reverse stock split of its issued and outstanding Class A Subordinate Voting Shares.

On July 11, 2025, the Company closed of a public offering of 1,007,764 units at a of $6.946 (CAD$9.50) per unit for gross proceeds of approximately $7,000,331 (CAD$9,573,758), before deducting commissions and estimated expenses incurred in connection with the offering. Each unit consists of one Class A Subordinate Voting Share of the Company and one-half of one Class A Subordinate Voting Share purchase warrant. Each whole warrant is exercisable to acquire one Class A Subordinate Voting Share at a price of $8.41 (CAD$11.50) per share for a period of 36 months from the date of issuance.

**Intellectual Property Portfolio**

VERSES recognizes the importance of its intangible assets such as brand names, relationships with customers and partners, licenses, and trade secrets. To protect its products and processes, VERSES periodically reviews opportunities to register copyrights, trademarks, and patents in different countries. The following are provisional patent applications, copyrights, and trademarks that are relevant to our business.

***Non-Provisional Patent Applications***

● As of July 11, 2025, we have submitted formal non-provisional applications in the United States through the U.S. Patent and Trademark Office ("USPTO") for the four patents listed below. The non-provisional filings have been assigned new applications serial numbers, which are set out below.

● "METHOD AND SYSTEM FOR AUTOMATICALLY DEVELOPING RULES FOR AGENTS DRIVING DEVICE BEHAVIOR", provisional filed on May 1, 2023 (old provisional # 63/499,287) (new U.S. non-provisional application serial number 18/651,479, converted April 30, 2024).

● "METHOD AND SYSTEM FOR SPECIFYING AN ACTIVE INFERENCE BASED AGENT USING NATURAL LANGUAGE", provisional filed on July 12, 2023 (old provisional # 63/513,322) (new U.S. non-provisional application serial number 18/770,654, converted August 18, 2024).

● "METHOD AND SYSTEM FOR PROBABILISTIC QUERYING OF A VECTOR GRAPH DATABASE", provisional filed on July 25, 2023 (old provisional # 63/515,573) (new U.S. non-provisional application serial number 18/783,398, converted July 24, 2024).

● "METHOD OF UPDATING GRAPH DATABASES BY USING COMPUTATION GRAPHS", provisional filed on September 1, 2023 (old provisional # 63/580,314) (new U.S. non-provisional application serial number 18/809,219, converted August 19, 2024).

● "A METHOD FOR AUTOMATICALLY EXPANDING FACTOR GRAPH DATABASE", provisional filed on October 27, 2023 (old provisional # 63/593,745) (new U.S. non-provisional application serial number 18/927,933, converted October 26, 2024).

● "A METHOD FOR GENERATING USER SPECIFIC INTERFACES USING GENERATIVE UI", provisional filed on November 29, 2023 (old provisional # 63/604,123) (new U.S. non-provisional application serial number 18/963,247, converted February 2, 2025).

● "A METHOD OF IMPROVING TEXT VECTORIZATION USING DEPTH FIRST SEARCH AND RADIX TREES", provisional filed on January 8, 2024 (old provisional # 63/618,776) (new U.S. non-provisional application serial number 19/004,267, converted December 28, 2024).

● "A METHOD FOR EXTRACTING, TRANSFORMING AND LOADING LEGAL INFORMATION ONTO AUTONOMOUS AGENTS USING LARGE LANGUAGE MODELS AND COMPUTER GRAPH DATABASES", provisional filed on February 5, 2024 (old provisional # 63/549,994) (new U.S. non-provisional application serial number 19/043,493, converted February 8, 2025).

● "A METHOD OF DIGITAL DOCUMENT REVIEW USING FACTOR GRAPH DOCUMENT DATABASES", provisional filed on February 27, 2024 (old provisional # 63/558,504) (new U.S. non-provisional application serial number 19/064,659, converted February 26, 2025).

● "A METHOD OF INTERAGENT COMMUNICATION IN PROBABILISTIC AGENTS IMPLEMENTING FACTOR GRAPH DOCUMENT DATABASES", provisional filed on April, 08 2024 (old provisional # 63/631,184) (new U.S. non-provisional application serial number 19/095,775, converted March 31, 2025).

Additionally, the PCT application "METHOD AND SYSTEM FOR OPTIMIZING A WAREHOUSE" (provisional filed on September 21, 2022 and subsequently filed under the PTC - old provisional # 63/360,286) was converted to a non-provisional on March 19, 2024, with only the USA being selected for localization (new non-provisional application serial number 18/693,486).

***Provisional Patent Applications***

 

As of July 11, 2025, we have filed the following provisional applications with the USPTO:

● "A METHOD FOR PERFORMING GAUSSIAN SPLATTING USING VARIATIONAL BAYES", 63/701,522, filed on September 30, 2024.

● "A METHOD AND SYSTEM FOR IMPLEMENTING LEGAL DECISION MAKING IN ARTIFICIAL INTELLIGENCE SYSTEMS USING ACTIVE INFERENCE", 63/752,789, filed on February 2, 2025.

● "A SYSTEM AND METHOD FOR THE DISCOVERY OF VIABLE BAYESIAN MODELS BY SUBJECT MATTER EXPERTS", 63/795,510, filed on April 27, 2025.

In July 2025, the Company received a Notice of Allowance from the USPTO indicating that the non-provisional patent application titled "METHOD AND SYSTEM FOR SPECIFYING AN ACTIVE INFERENCE BASED AGENT USING NATURAL LANGUAGE" (new U.S. non-provisional application serial number 18/770,654) will likely be approved as a full registered utility patent upon the payment of the issue fee and submission of additional documentation. If approved, this will be the Company's first patent.

Provisional applications are not official patents and do not provide prosecutable intellectual property protection. However, the provisional application for a patent allows the Company to obtain an official filing date before public disclosure of an invention. This filing date ensures, if the application is successful, that no other provisional application made in respect of the same invention filed after the filing date, is able to proceed with the patent application. Once a provisional application is filed, the Company has 12 months to file a formal non-provisional application. Once a non-provisional application is submitted, the review process can take approximately two to four years. Additionally, while a provisional application is active, an applicant may file a patent application under the Patent Cooperation Treaty ("PCT") for the purposes of seeking international patent protection. A PCT application extends the filing deadline of a non-provisional patent application by up to 18 months which means that under the PCT regime, it can take up to 30 months for a non-provisional patent application to be filed in connection with a provisional application. Except for patent applications filed under the PCT, the 12 month period for the filing of a formal non-provisional application cannot be extended.

***Trademarks***

As of July 11, 2025, the Company has the following registered trademarks:

● U.S. Registration No. 5838650 ("VERSES") in International Class 42, registered on August 20, 2019;

● U.S. Registration No. 7201904 ("VERSES") in International Class 42, registered on October 24, 2023;

● U.S. Registration No. 7201550 ("V VERSES") in International Class 42, registered on October 24, 2023;

● U.S. Registration No. 7248436 ("IMAGINE A SMARTER WORLD") in International Class 42, registered on December 19, 2023;

● U.S. Registration No. 7080725 ("WAYFINDER") in International Class 42, registered on June 13, 2023;

● U.S. Registration No. 5839158 ("THE POWER OF SMART SPACE") in International Class 42, registered on August 20, 2019;

● U.S. Registration No. 6811022 ("VERSES SPATIAL WEB PROTOCOL") in International Class 42, registered on August 9, 2022;

● U.S. Registration No. 7289102 ("SPATIAL INTELLIGENCE MANAGEMENT") in International Class 42, registered on January 23, 2024;

● European Application Serial No. 18392857 ("VERSES") in Class 42, registered on June 12, 2021;

● European Application Serial No. 18392876 ("WAYFINDER") in Class 42, registered on June 12, 2022;

● European Application Serial No. 18392875 ("COSM") in Class 42, registered on June 12, 2022;

● European Application Serial No. 18392878 ("POWERING THE SPATIAL WEB") in Class 42, registered on June 12, 2022;

● European Application Serial No. 18659312 ("DOMAINFLOW") in Class 9, registered on July 20, 2022; and

● European Application Serial No. 18658983 ("SIMFLOW") in Class 9, registered on August 24, 2022.

In addition, we have filed the following trademark applications with the USPTO:

● U.S. Registration No. 97853452 ("AI REIMAGINED") in International Class 42, filed on March 23, 2023;

● U.S. Registration No. 98071341 ("GENIUS") in International Classes 9 and 42, filed on July 5, 2023;

● U.S. Registration No. 97930135 ("VERSES.AI") in International Class 42, filed on May 10, 2023; and

● U.S. Registration No. 98242187 ("SMARTER BY NATURE") in International Class 42, filed on October 26, 2023.

**Government Regulations**

VERSES is currently regulated under legislation in all of the jurisdictions in which it conducts business and is licensed or registered in those jurisdictions where licensing or registration is required by law. Changes in regulatory legislation or the interpretation thereof, or the introduction of any new regulatory requirements, could have a negative effect on VERSES and its operating results. There are different regulatory and registration requirements in each of the jurisdictions in Canada. VERSES takes the position that it is appropriately registered in the jurisdictions in which it conducts business. However, it may voluntarily seek additional registration in respect of its activities or from time to time regulators may adopt a different view that may require VERSES to seek additional registration. Failure to be appropriately registered could result in an enforcement action and potential interruption of certain of VERSES' servicing or other activities and may result in a default under servicing agreements. This could have a material adverse effect on VERSES' business, financial condition and results of operations.

The legal and regulatory issues with AI in the United States and globally are complex and evolving rapidly. As a company engaged in the development and deployment of advanced AI model training methodologies and related technology, we face a range of legal and regulatory risks that could materially affect our operations, financial condition, and results of operations. For some issues, there is uncertainty how existing laws will be applied to AI and agentic systems. Depending on how existing AI laws and regulations are implemented and interpreted, we may have to make changes to our business practices and products, including Genius, to comply with such obligations.

There is currently no comprehensive federal AI regulatory framework in the United States. There is increasing federal, state and local AI-related legislative and regulatory activity. Some foreign AI regulatory activity (e.g., the EU AI Act) may have an extraterritorial effect and cover certain U.S. activity. As AI laws and regulations are enacted, implemented, interpreted and enforced, we may have to make changes to our business practices and products, including Genius, to comply with such obligations.

The regulatory issues relating to the use of various types of data to train AI models are complex and evolving rapidly. Our Genius product involves development of intelligent AI agents that continuously learn, adapt, and evolve in real time. Genius also enables agents to interact with one another and download models and other data. While the real time nature of the agents can be beneficial, this characteristic may preclude the ability to effectively test agents before use. It is possible that regulatory issues may adversely impact our ability to use certain data. We may have to make changes to our business practices and products, including Genius, to comply with such obligations.

The regulatory issues relating to the accuracy, explainability, transparency, bias and other potential issues with AI systems are complex and evolving rapidly. The real time nature of our AI and agentic systems may preclude the ability to effectively test agents before use for these issues.

Certain regulations and proposed regulations relate to the use of AI, particularly in high-risk applications such as employment, education, lending, housing, healthcare and other consequential decisions that may impact individuals. Certain activities of our agents may relate to these activities. We may have to make changes to our business practices and products, including Genius, to comply with such obligations.

Some states (e.g., Colorado) have passed AI laws, but have not yet adopted implanting regulations. Once the regulations are finalized, we may have to make changes to our business practices and products, including Genius, to comply with such obligations.

**Employees**

As of July 11, 2025, we employed a total of 65 full-time employees, no part-time employees and 33 consultants. We are not a party to any collective bargaining agreements. We believe that we maintain good relations with our employees.

**Our Corporate Information and History**

The Company was incorporated on November 19, 2020, pursuant to the Business Corporations Act (British Columbia) (the "BCBCA") under the name "Chromos Capital Corp." On June 17, 2021, the Company changed its name to "Verses Technologies Inc." in connection with the Amalgamation (defined below). On March 31, 2023, the Company changed its name to "Verses AI Inc."

*The Amalgamation*

On April 13, 2021, the Company (formerly Chromos Capital Corp.), Verses Technologies Incorporated, an entity formed for the purposes of providing capital to the Company ("Former Holdco"), and 1288098 B.C. Ltd., a then wholly-owned subsidiary of the Company formed for the sole purpose of effecting a three-cornered amalgamation of the Company ("Chromos Subco") (the "Amalgamation"), entered into an amalgamation agreement (the "Amalgamation Agreement").

Immediately prior to the Amalgamation:

● the Company had 284,615 common shares issued and outstanding;

● Former Holdco had 250,000 common shares issued and outstanding (each, a "Former Holdco Share") and 46,296 common share purchase warrants (each, a "Former Holdco Warrant"), each Former Holdco Warrant entitling the holder thereof to acquire one Former Holdco Share at a price of $10.80 per share; and

● Chromos Subco had one common share issued and outstanding.

Pursuant to the Amalgamation Agreement, the parties completed the Amalgamation on May 28, 2021 whereby Chromos Subco amalgamated with Former Holdco under Section 269 of the BCBCA to form Verses Holdings Inc., which became a wholly owned subsidiary of the Company ("Holdco"). Additionally, in accordance with the terms of the Amalgamation Agreement:

● 250,000 Former Holdco Shares were cancelled, and in consideration therefor, each Former Holdco shareholder received one common share at a deemed price of $2.70 per common share in exchange for every one Former Holdco Share held by such holder; and

● 46,296 Former Holdco Warrants were cancelled, and in consideration therefor, each Former Holdco Warrant holder received one common share purchase warrant of the Company for every one Former Holdco Warrant held by such holder on substantially the same terms and conditions as the Former Holdco Warrants, each warrant exercisable at a price equal to the exercise price of each Former Holdco Warrant, being $10.80 per common share.

Holdco did not hold any assets or operate the VERSES business following the Amalgamation and was dissolved on March 31, 2023.

*VTU Contribution* 

On June 21, 2021, the Company, VTU, each of the holders (the "VTU Shareholders") of Class A shares ("VTU Class A Shares") and Class B shares (the "VTU Class B Shares, together with the VTU Class A Shares, the "VTU Shares") of common stock of VTU and certain individuals delivering a shareholder consent agreement (the "Consent Parties", together with the VTU Shareholders, the "VTU Contributors") entered into a contribution agreement (the "Contribution Agreement") whereby the Company acquired all of the outstanding VTU Shares (the "VTU Contribution"). Pursuant to the terms of the Contribution Agreement:

● each Consent Party entered into a subscription agreement with VTU whereby the Consent Parties received VTU Class A Shares prior to the transfer of VTU Shares under the Contribution Agreement;

● the VTU Contributors transferred all the issued and outstanding VTU Shares to the Company;

● in exchange for the VTU Class A Shares, the Company issued to the VTU Contributors one Class A Subordinate Voting Share for each VTU Class A Share held prior to the transfer of VTU Class A Shares to the Company; and

● in exchange for the VTU Class B Shares, the Company issued to the VTU Contributors one Proportionate Voting Share for each VTU Class B Share held prior to the transfer of VTU Class B Shares to the Company.

The VTU Contribution was completed on July 20, 2021, whereby the Company issued a total of 4,944,832 Class A Subordinate Voting Shares and 370,370 Proportionate Voting Shares to the VTU Contributors. 185,185 Proportionate Voting Shares were issued to each of Gabriel René, Chief Executive Officer and a director of the Company, and Dan Mapes, President Emeritus, Director of Global Development and a director of the Company.

To facilitate the VTU Contribution, the Company changed the identifying name of the common shares to "Class A Subordinate Voting Shares", being the Subordinate Voting Shares, and altered its authorized share structure by creating an unlimited number of Class B Proportionate Voting Shares, being the Proportionate Voting Shares (the "Share Alteration"). The Share Alteration was approved by the holders of the Company's common shares on July 19, 2021 and was made effective July 20, 2021. In connection with the Share Alteration, the Company also amended its articles to add special rights and restrictions to the Class A Subordinate Voting Shares and Proportionate Voting Shares.

On May 30, 2024, the Company converted the 370,370 outstanding Proportionate Voting Shares into an aggregate of 2,314,815 Class A Subordinate Voting Shares.

On March 27, 2025, the Company effectuated a one-for-nine reverse stock split of its issued and outstanding Class A Subordinate Voting Shares.

As of July 11, 2025, the Company has: (i) two directly wholly-owned subsidiaries: VERSES Technologies USA Inc. and Verses Solutions, Inc. ("VSI"); and (ii) six indirectly wholly-owned subsidiaries: VERSES Operations Canada Inc., VERSES Logistics Inc., VERSES Health, Inc., VERSES Realities, Inc., VERSES, Inc. and VERSES Global B.V. (each, an "Indirect Subsidiary"). Each of VTU, VSI and certain of the Indirect Subsidiaries operate different segments of the VERSES business and are focused on developing different parts and aspects of the Company's flagship product, Genius.

The head office and registered and records office of the Company is located at 1111 West Hastings Street, 15th Floor, Vancouver, British Columbia, V6E 2J3. The Company also has offices located at 2121 Avenue of the Stars, Suite 800, Los Angeles, California, 90067 and High Tech Campus 6a 5656 AE Eindhoven, Netherlands. The Company's phone number is (310) 988-1944.

**Available Information**

Our website address is https://www.verses.ai/genius. The contents of, or information accessible through, our website are not part of this Annual Report, and our website address is included in this document as an inactive textual reference only. We make our filings with the U.S. Securities and Exchange Commission ("SEC"), including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports, available free of charge on our website as soon as reasonably practicable after we file such reports with, or furnish such reports to, the SEC. The public may read and copy the materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Additionally, the SEC maintains an internet site that contains reports, proxy and information statements and other information. The address of the SEC's website is www.sec.gov. The information contained in the SEC's website is not intended to be a part of this Annual Report. Additional information relating to the Company may be found under the Company's profile on SEDAR+ at www.sedarplus.ca.

**ITEM 1A. RISK FACTORS**

*An investment in our Class A Subordinate Voting Shares involves a high degree of risk. You should carefully consider the following risk factors and the other information in this Annual Report before investing in our Class A Subordinate Voting Shares. Our business and results of operations could be seriously harmed by any of the following risks. The risks set out below are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. If any of the following events occur, our business, financial condition and results of operations could be materially adversely affected. In such case, the value and trading price of our Class A Subordinate Voting Shares could decline, and you may lose all or part of your investment.*

**Risks Related to Our Financial Position, Financial Reporting Matters and Need for Capital**

***We have a limited operating history.***

 ****

The Company has a relatively limited operating history. As such, the Company will be subject to all of the business risks and uncertainties associated with any new business enterprise, including under-capitalization, cash shortages, limitations with respect to personnel, financial and other resources. Although the Company possesses an experienced management team, there is no assurance that the Company will be successful in achieving a return on shareholders' investment and the likelihood of success of the Company must be considered in light of the problems, expenses, difficulties, complications and delays frequently encountered in connection with the establishment of any business. There is no assurance that the Company will generate revenues, operate profitably, or provide a return on investment, or that it will successfully implement its business and growth plans. An investment in the Company's securities carries a high degree of risk and should be considered speculative by investors. Prospective investors should consider any purchase of the Company's securities in light of the risks, expenses and problems frequently encountered by all companies in the early stages of their corporate development and operations.

***If we fail to obtain the capital necessary to fund our operations, we will be unable to continue or complete our product development and you will likely lose your entire investment.***

 ****

The operation of the Company's business will require substantial additional capital. When such additional capital is required, the Company will need to pursue various financing transactions or arrangements, which may include debt financing, equity financing or other means. Additional financing may not be available when needed or, if available, the terms of such financing might not be favorable to the Company and might involve substantial dilution to existing shareholders. The Company may not be successful in locating suitable financing transactions in the time period required, or at all. A failure to raise capital when needed would have a material adverse effect on the Company's business, financial condition and results of operations. Any future issuance of securities to raise required capital will likely be dilutive to existing shareholders. In addition, debt and other debt financing may involve a pledge of assets and may be senior to interests of equity holders. The Company may incur substantial costs in pursuing future capital requirements, including investment banking fees, legal fees, accounting fees, securities law compliance fees, printing and distribution expenses and other costs. The ability to obtain needed financing may be impaired by such factors as the capital markets, the Company's status as a relatively new enterprise with a limited history and/or the loss of key management personnel.

***The Company has had negative cash flows from operating activities.***

 ****

The Company has had negative cash flow from operating activities since inception. The Company's business is in an early stage and additional capital investment will be required to achieve revenue. There is no assurance that the Company will generate earnings, operate profitably or provide a return on investment in the future. Accordingly, the Company will be required to obtain additional financing in order to meet its future cash commitments.

***Our independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern, which may hinder our ability to obtain future financing.***

Our independent registered public accounting firm included in its opinion for the year ended March 31, 2025 an explanatory paragraph referring to our recurring losses from operations and expressing substantial doubt in our ability to continue as a going concern without additional capital becoming available. Our ability to continue as a going concern is dependent upon our ability to raise additional sufficient capital to carry operations which is conditional, in part, on the progress of the development of our technology and continued investor support. Our financial statements as of March 31, 2025 did not include any adjustments that might result from the outcome of this uncertainty. The reaction of investors to the inclusion of a going concern statement by our auditors, and our potential inability to continue as a going concern, in future years could materially adversely affect our share price and our ability to raise new capital.

**Risks Related to our Business**

***We may not be able to successfully implement our growth strategy which could have a material adverse effect on our business, financial condition and results of operations.***

 **

VERSES' future growth, profitability and cash flows depends upon the Company's ability to successfully implement its growth strategy, which, in turn, is dependent upon a number of factors, including the Company's ability to:

&nbsp;&nbsp;&nbsp;&nbsp;1. expand
 its customer/user base;

&nbsp;&nbsp;&nbsp;&nbsp;2. retain
 qualified operations staff;

&nbsp;&nbsp;&nbsp;&nbsp;3. protect
 its technology and intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;4. support
 growth of existing customers; and

&nbsp;&nbsp;&nbsp;&nbsp;5. enhance
 and develop Genius and Genius-based applications.

There can be no assurance that the Company can successfully achieve any or all of the above initiatives in the manner or time period that the Company expects. Further, achieving these objectives will require investments which may result in short-term costs without generating any current revenue and therefore may be dilutive to VERSES' earnings. The Company cannot provide any assurance that it will realize, in full or in part, the anticipated benefits the Company expects its strategy will achieve. The failure to realize those benefits could have a material adverse effect on VERSES' business, financial condition and results of operations.

***Our business depends upon us securing and protecting critical intellectual property.***

 ****

The Company's commercial success depends to a significant degree upon its ability to develop technologies, instruments, and services, and to obtain patents, where appropriate, or other intellectual property rights or statutory protection for these technologies and products in Canada, the United States and elsewhere. The Company currently has no issued patents related to any of its intellectual property. Despite devoting resources to the research and development of proprietary technology, the Company may not be able to develop technology that is patentable or protectable. Further, patents issued to the Company, if any, could be challenged, held invalid or unenforceable, or be circumvented and may not provide the Company with necessary or sufficient protection. Competitors and other third parties may be able to design around the Company's intellectual property or develop technology similar to Genius that is not within the scope of such intellectual property. The Company's inability to secure its intellectual property rights may have a material adverse effect on its business and results of operations.

Currently, the Company's intellectual property includes provisional patent applications, copyrights and registered trademarks. With respect to the Company's provisional patent applications, such applications may not result in full patents being granted, and any full patent applications that the Company files may not result in issued patents or may take longer than expected to result in issued patents. The Company plans on taking the necessary steps, including, but not limited to, the filing of additional patents applications as appropriate. There is no assurance any patents will be issued or that when they are issued, they will include all of the claims currently included in the applications. The Company also relies on contractual obligations of its employees and contractors to maintain the confidentiality of the Company's technologies. To compete effectively, the Company needs to develop and continue to maintain a proprietary position with respect to its technologies and business.

Additionally, prosecution and protection of the intellectual property rights sought can be costly and uncertain, often involve complex legal and factual issues and consume significant time and resources. The laws of certain countries may not protect intellectual property rights to the same extent as the laws of Canada or the United States.

 **

***Conflicts of interest may arise between us and our officers and directors, which may have a material adverse effect on our business.***

 **

Certain of the Company's directors and officers do not devote their full time to the affairs of the Company and certain of the Company's directors and officers are also directors, officers and shareholders of other public companies in general, and as a result they may find themselves in a position where their duty to another company conflicts with their duty to the Company. Although the Company has policies which address such potential conflicts and the BCBCA has provisions governing directors in the event of such a conflict, none of the Company's constating documents or any of its other agreements contain any provisions mandating a procedure for addressing such conflicts of interest. There is no assurance that any such conflicts will be resolved in favor of the Company. If any such conflicts are not resolved in favor of the Company, the Company may be adversely affected.

***The continuous development, maintenance, and operation of our AI products is expensive and complex, may involve unforeseen difficulties and may subject us to legal or regulatory liability as well as reputational harm.***

 ****

VERSES uses proprietary AI algorithms in its product offerings. The continuous development, maintenance, and operation of VERSES' AI products is expensive and complex, and may involve unforeseen difficulties, including material performance problems, undetected defects or errors. If Genius does not function reliably, this could negatively impact the user experience for VERSES' customers. Any of these situations could result in customers' dissatisfaction with VERSES, which could negatively impact VERSES' business. Additionally, VERSES' AI algorithms may lead to unintentional bias and discrimination, which could subject VERSES to legal or regulatory liability as well as reputational harm. Any of these eventualities could result in a material and adverse effect on VERSES' business, financial condition, operating results, cash flows, and prospects.

***Failure to manage the Company's growth could adversely impact our business.***

 ****

VERSES anticipates that growing demand for the Company's services and Genius will place significant demands on the Company's operational infrastructure. The scalability of Genius will depend on VERSES' ability to develop Genius for different industry applications. Moreover, as the Company's business grows, VERSES will need to devote additional resources to improving its operational infrastructure and to continue to enhance its scalability in order to maintain the performance of Genius and related applications.

As the Company grows, VERSES will be required to continue to improve its operational and financial controls and reporting procedures and VERSES may not be able to do so effectively. In managing the Company's growing operations, VERSES is also subject to the risks of over-hiring and/or overcompensating its employees and over-expanding its operating infrastructure. As a result, VERSES may be unable to manage its expenses effectively in the future, which may negatively impact VERSES' gross profit or operating expenses.

As the Company continues to grow and develop the infrastructure of a public company, the Company must effectively integrate, develop and motivate a growing number of new employees, some of whom are based in various countries around the world. In addition, the Company must preserve its ability to execute quickly in further developing the Company's platform and implementing new features and initiatives. As a result, VERSES may find it difficult to maintain its corporate culture, which could limit the Company's ability to innovate and operate effectively. Any failure to preserve VERSES' culture could also negatively affect the Company's ability to recruit and retain personnel, to continue to perform at current levels or to execute on the Company's business strategy effectively and efficiently.

 

 

***We rely on third-parties for technologies that are vital to the functionality of the Company, and if we are not successful in establishing and maintaining our relationships with such third-parties, our ability to grow and scale Genius or to generate revenue could be impaired and our results of operations may suffer.***

 ****

The Company relies on strategic partnerships with third parties for technologies that are vital to the functionality of the Company. The Company anticipates that it will continue to depend on relationships with these third parties, such as data center hosting companies, cloud computer platform providers, and software and hardware vendors. Identifying partners, and negotiating and documenting relationships with them, requires significant time and resources. If the Company is unsuccessful in establishing and maintaining its relationships with third parties, or if these third parties are unable or unwilling to provide services to the Company, the Company's ability to grow and scale Genius or to generate revenue could be impaired, and its results of operations may suffer. Even if the Company is successful, it cannot be sure that these relationships will result in increased customer usage of Genius and Genius applications or increased revenue.

***Our business may be adversely affected by cybersecurity threats.***

 ****

VERSES operates in an industry that is prone to cyber attacks. Failure to prevent or mitigate security breaches and improper access to or disclosure of the Company's data or customer data could result in the loss or misuse of such data, which could harm VERSES' business and reputation. The security measures VERSES has integrated into its internal networks and systems and Genius, which are designed to prevent or minimize security breaches, may not function as expected or may not be sufficient to protect the Company's internal networks against certain attacks. In addition, techniques used to sabotage or to obtain unauthorized access to networks in which data is stored or through which data is transmitted change frequently. As a result, VERSES may be unable to anticipate these techniques or implement adequate preventative measures to prevent an electronic intrusion into the Company's networks.

If a security breach were to occur, as a result of third-party action, employee error, breakdown of VERSES' internal security processes and procedures, malfeasance or otherwise, and the confidentiality, integrity or availability of VERSES' customers' data was disrupted, the Company could incur significant liability to its customers, and VERSES' services and Genius may be perceived as less desirable, which could negatively affect the Company's business and damage its reputation.

Moreover, Genius and related applications could be breached if vulnerabilities in Genius or such related applications are exploited by unauthorized third parties or due to employee error, breakdown of VERSES' internal security processes and procedures, malfeasance, or otherwise. Furthermore, third parties may attempt to fraudulently induce employees or customers into disclosing sensitive information such as usernames, passwords or other information or otherwise compromise the security of VERSES' internal networks and electronic systems in order to gain access to the Company's data or its customers' data.

Any actual or perceived security breach could damage the Company's reputation and brand, expose the Company to a risk of litigation and possible liability and require VERSES to expend significant capital and other resources to respond to and/or alleviate problems caused by the security breach. Some jurisdictions have enacted laws requiring companies to notify individuals and authorities of data security breaches involving certain types of personal or other data. In addition, pursuant to the terms of certain agreements, VERSES may be required to notify certain customers and partners in the event of a security incident. Any of these events could harm VERSES' reputation or subject VERSES to significant liability, and materially adversely affect the Company's business and financial results.

***Our information systems are subject to damage or interruption. A compromise of our information security controls or of those businesses with whom we interact could harm our reputation and expose us to regulatory actions and claims, any of which could adversely affect our business, financial position, and results of operations.***

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VERSES' operations are and will be dependent on the Company's information systems and the information collected, processed, stored, and handled by these systems. Throughout the Company's operations, VERSES will receive, retain and transmit certain confidential information, including personally identifiable information that the Company's customers provide to utilize Genius and related applications, interact with the Company's personnel, or otherwise communicate with VERSES. In addition, for these operations, VERSES will depend in part on the secure transmission of confidential information over public networks. The Company's information systems are and will be subject to damage or interruption from power outages, facility damage, computer and telecommunications failures, computer viruses, security breaches, including credit card or personally identifiable information breaches, coordinated cyber attacks, vandalism, catastrophic events and human error. Although VERSES deploys a layered approach to address information security threats and vulnerabilities, including ones from a cyber security standpoint, designed to protect confidential information against data security breaches, a compromise of the Company's information security controls or of those businesses with whom the Company interacts, which results in confidential information being accessed, obtained, damaged, or used by unauthorized or improper persons, could harm VERSES' reputation and expose VERSES to regulatory actions and claims from customers and other persons, any of which could adversely affect the Company's business, financial position, and results of operations. Because the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently and may not immediately produce signs of intrusion, VERSES may not be able to anticipate these techniques or to implement adequate preventative measures. In addition, a security breach could require that the Company expends substantial additional resources related to the security of information systems and disrupt the Company's businesses.

 **

***Our applications may contain software errors or defects which could have a material adverse effect on our business and operating results.***

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Genius and related applications are and will be dependent upon the successful and uninterrupted functioning of VERSES' computer and data processing systems, cloud computing platform and network operating system. These software and systems may contain errors, defects, security vulnerabilities or software bugs that are difficult to detect and correct, particularly when first introduced or when new versions or enhancements are released.

The failure or unavailability of these systems could materially impact VERSES' ability to deliver Genius and related applications to customers effectively or comply with contractual obligations to third parties. If sustained or repeated, a system failure or loss of data could negatively affect the operating results of VERSES.

Since the Company's customers use and will use its services for decisions that are critical to their operation and ability to efficiently function, errors, defects, security vulnerabilities, service interruptions or software bugs in the Company's network could result in losses to its customers. Customers may seek significant compensation from the Company for any losses they suffer or cease conducting business with the Company altogether. Further, a customer could share information about bad experiences on social media, which could result in damage to the Company's reputation. There can be no assurance that provisions included in the Company's agreements with its customers that attempt to limit its exposure to claims would be enforceable or adequate or would otherwise protect it from liabilities or damages with respect to any particular claim. Even if not successful, a claim brought against the Company by any of its customers would likely be time-consuming and costly to defend and could seriously damage its reputation and brand, making it harder for the Company to generate revenue.

***If a claim is successfully brought against us for uninsured liabilities, or such claim exceeds our insurance coverage, we could be forced to pay substantial damage awards that could materially harm our business.***

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While VERSES maintains property, general liability, errors and omissions and directors and officers' liability insurance on such terms as it deems appropriate, in the event of a substantial loss, such coverage may not be sufficient to pay the full current market value or current replacement cost of VERSES' lost investment. Furthermore, such insurance may not remain available to the Company at commercially reasonable rates or in sufficient amounts or scope to protect the Company against potential losses. Future increases in insurance costs, coupled with the increase in deductibles, will result in higher operating costs and increased risk. Not all risks faced by VERSES are insured. In the event a claim is brought against us, we may be required to pay legal and other expenses to defend the claim, as well as uncovered damage awards resulting from a claim brought successfully against us. Defending any claim could require the Company to expend significant financial and managerial resources, which could have an adverse effect on the Company's business.

***The success of our business depends on our ability to maintain and enhance our reputation and brand.***

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VERSES believes that maintaining, promoting and enhancing the VERSES brand is critical to expanding the Company's business and rolling out Genius and related applications. Maintaining and enhancing the VERSES brand will depend largely on the Company's ability to continue to provide high-quality, well-designed, useful, reliable and innovative solutions, which the Company may not do successfully. The Company operates in a space with some of the largest companies in the world that have significantly more resources than VERSES. These companies have the ability to dilute the Company's messaging regarding the Spatial Web which may confuse the market and be detrimental to the continued development and enhancement of the Company's brand.

Errors, defects, data breaches, disruptions or other performance problems with Genius and related applications may harm VERSES' reputation and brand. The Company may introduce new solutions or terms of service that its customers do not like, which may negatively affect the VERSES brand. Additionally, if the Company's customers have a negative experience using VERSES solutions, such an experience may affect the VERSES brand, especially as the Company continues to attract larger customers to Genius.

The Company believes that the importance of brand recognition will increase as competition in VERSES' market increases. In addition, successful promotion of the VERSES brand will depend on the effectiveness of the Company's marketing efforts. VERSES' efforts to market the VERSES brand will involve significant expenses. VERSES' marketing expenditure may not yield increased revenue, and even if it does, any increased revenue may not offset the expenses VERSES incurs in building and maintaining the VERSES brand.

***Our business could be adversely impacted by changes in internet and mobile device accessibility.***

The Company's success will depend upon the general public's ability to access the internet, including through mobile devices. The adoption of any laws or regulations that adversely affect the growth, popularity or use of the internet, including changes to laws or regulations impacting internet neutrality, could decrease the demand for Genius and related applications or otherwise adversely affect the Company's business. Given uncertainty around these rules, VERSES could experience discriminatory or anti-competitive practices that could impede both the Company and its customers' growth, increase the Company's costs or adversely affect VERSES' business. If customers become unable, unwilling, or less willing to use the internet for commerce for any reason, including lack of access to high-speed communications equipment, congestion of traffic on the internet, internet outages or delays, disruptions or other damage to customers' computers, increases in the cost of accessing the internet and security and privacy risks or the perception of such risks, VERSES' business could be adversely affected.

***The introduction of software products incorporating new technologies and the emergence of new industry standards could render our existing software products less competitive, obsolete, or unmarketable.***

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The Company operates in a competitive industry characterized by rapid technological change and evolving industry standards. The Company's ability to attract new customers and generate revenue from existing customers will depend largely on its ability to anticipate industry standards and trends, respond to technological advances in its industry, and to continue to enhance Genius or to design and introduce new Genius applications on a timely basis to keep pace with technological developments and its customers' increasingly sophisticated needs. The success of any enhancement of Genius or new related applications will depend on several factors, including the timely completion and market acceptance of Genius and related applications. Any new application the Company develops or acquires might not be introduced in a timely or cost-effective manner and might not achieve the broad market acceptance necessary to generate significant revenue. If any of the Company's competitors implements new technologies before the Company is able to implement them, those competitors may be able to provide more effective applications and services than the Company at lower prices. Any delay or failure in the introduction of new or enhanced applications and services could harm the Company's business, results of operations and financial condition.

The Company's services and Genius are expected to embody complex technology that may not meet those standards, changes and preferences. The Company's ability to design, develop and commercially launch Genius and related applications depends on a number of factors, including, but not limited to, its ability to design and implement solutions and services at an acceptable cost and quality, its ability to attract and retain skilled technical employees, the availability of critical components from third parties, and its ability to successfully complete the development of Genius and related applications in a timely manner. There is no guarantee that the Company will be able to respond to market demands. If the Company is unable to effectively respond to technological changes or fails or delays to develop services in a timely and cost-effective manner, Genius and related applications may become obsolete, and the Company may be unable to recover its development expenses which could negatively impact sales, profitability and the continued viability of its business.

***We operate in a highly competitive market.***

Some of VERSES' competitors are better capitalized, hold a larger percentage of the Canadian and international markets, have greater financial, technical and marketing resources than VERSES and have greater name recognition than VERSES. If price competition increases, VERSES may not be able to raise its pricing in response to a rising cost of funds or may be forced to lower the pricing that it is able to charge customers. Price-cutting or discounting may reduce profits. This could have a material adverse effect on VERSES' business, financial condition and results of operations and on the amount of cash available for dividends to shareholders.

***The Company's estimates and forecasts relating to the size and expected growth of its target market, market demand and adoption, capacity to address this demand, and pricing, may prove to be inaccurate which could have a material adverse effect on the business, results of operations and financial condition of the Company.***

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Market opportunity estimates and growth forecasts, whether obtained from third-party sources or developed internally, are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate. The Company's estimates and forecasts relating to the size and expected growth of its target market, market demand and adoption, capacity to address this demand, and pricing, may prove to be inaccurate. The Company must rely largely on its own market research to forecast sales as detailed forecasts are not generally obtainable from other sources. A failure in the demand for its services to materialize as a result of competition, technological change or other factors could have a material adverse effect on the business, results of operations and financial condition of the Company.

***Reputational damage caused by negative publicity may have a material adverse impact on our financial performance, financial condition, cash flows and growth prospects.***

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Reputational damage can result from the actual or perceived occurrence of any number of events, and could include any negative publicity, whether true or not. The increased usage of social media and other web-based tools used to generate, publish and discuss user-generated content and to connect with other users has made it increasingly easier for individuals and groups to communicate and share opinions and views, whether true or not. Reputation loss may result in decreased customer confidence and an impediment to the Company's overall ability to advance Genius and Genius applications, thereby having a material adverse impact on its financial performance, financial condition, cash flows and growth prospects.

***As a result of the loss of our foreign private issuer status, we are considered a U.S. domestic issuer and are no longer able to avail ourselves the reduced disclosure requirements applicable to foreign private issuers and our officers, directors and principal shareholders are no longer exempt from provisions of Section 16 of the Exchange Act.***

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Prior to April 1, 2025, the Company was a "foreign private issuer" under applicable U.S. federal securities laws and, as a result, the Company did not up until April 1, 2025 have to file the same reports that a U.S. domestic issuer files with the SEC under the Exchange Act. As a foreign private issuer, the Company was previously permitted to file with or furnish to the SEC the continuous disclosure documents that the Company was required to file in Canada under Canadian securities laws, with certain limited additional information. In addition, the Company's officers, directors and principal shareholders were exempt from the insider reporting and "short swing" profit recovery provisions of Section 16 of the Exchange Act. In addition, as a foreign private issuer, the Company was previously exempt from the rules under the Exchange Act prescribing the furnishing and content of proxy statements. Furthermore, the Company was not required to publish financial statements as promptly as United States companies, could prepare its financial statements under IFRS rather than U.S. generally accepted accounting principles, and such financial statements were audited under Canadian generally accepted auditing standards.

The Company lost its "foreign private issuer" status on April 1, 2025 and is now considered a U.S. domestic issuer Consequently, we are no longer eligible to file foreign issuer forms with the SEC and are now required to file periodic and current reports and registration statements on U.S. domestic issuer forms with the SEC, which are more detailed and extensive than the forms available to a foreign private issuer. The Company is also required to file its financial statement in accordance with U.S. generally accepted accounting principles, and such Company financial statements must be audited under U.S. generally accepted auditing standards. The regulatory and compliance costs to the Company under U.S. federal securities laws as a U.S. domestic issuer are expected to be significantly more than the costs the Company incurred as a foreign private issuer eligible to take advantage of the reduced disclosure requirements under the Exchange Act applicable to foreign private issuers.

***Our success depends on our management and other key personnel. If we lose key personnel or unable to hire additional qualified personnel, our business may be harmed.***

The success of the Company will be largely dependent on the performance of its directors and officers. The loss of the services of any of these persons could have a materially adverse effect on the Company's business and prospects. There is no assurance the Company can maintain the services of its directors, officers or other qualified personnel required to operate its business. As the Company's business activities grow, the Company will require additional key financial, administrative, and technology personnel as well as additional agents and operations staff. There can be no assurance that these efforts will be successful in attracting, training and retaining qualified personnel as competition for persons with these skill sets increase. If the Company is not successful in attracting, training and retaining qualified personnel, the efficiency of its operations could be impaired, which could have an adverse impact on the Company's operations and financial condition.

***Our failure to comply with government regulations could have a material adverse effect on our business, financial condition and results of operations.***

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VERSES is currently regulated under legislation in all of the jurisdictions in which it conducts business and is licensed or registered in those jurisdictions where licensing or registration is required by law. Changes in regulatory legislation or the interpretation thereof, or the introduction of any new regulatory requirements, could have a negative effect on VERSES and its operating results. There are different regulatory and registration requirements in each of the jurisdictions in Canada. VERSES takes the position that it is appropriately registered in the jurisdictions in which it conducts business. However, it may voluntarily seek additional registration in respect of its activities or from time-to-time regulators may adopt a different view that may require VERSES to seek additional registration. Failure to be appropriately registered could result in enforcement action and potential interruption of certain of VERSES' servicing or other activities and may result in a default under servicing agreements. This could have a material adverse effect on VERSES' business, financial condition and results of operations.

***We may be at risk of litigation.***

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The Company may become party to litigation from time to time in the ordinary course of business which could adversely affect its business. Should any litigation in which the Company becomes involved be determined against the Company such a decision could adversely affect the Company's ability to continue operating and the market price for the Subordinate Voting Shares and could use significant resources. Even if the Company is involved in litigation and wins, litigation can redirect significant Company resources.

***Although demand for AI and agentic AI platforms and applications has grown in recent years, the market for these platforms and applications continues to evolve rapidly. Numerous factors may impede our ability to add new customers, including but not limited to, our failure to compete effectively against alternative products or services.***

It is difficult to predict customer adoption rates and demand for our Genius product or the entry of competitive platforms. Although enterprise demand for agentic intelligence has grown in recent years, the market for these platforms and applications continues to evolve. We cannot be sure that this market will continue to grow or, even if it does grow, that businesses will adopt our Genius product. Our future success will depend in large part on our ability to further penetrate the existing market for Enterprise AI software, as well as the continued growth and expansion of what we believe to be an emerging market for Enterprise AI platforms and applications that are faster, easier to adopt, and easier to use. Our ability to further penetrate the Enterprise AI market depends on a number of factors, including the cost, performance, and perceived value associated with our Genius product, as well as customers' willingness to adopt a different approach to data analysis.

The legal and regulatory issues around AI are evolving rapidly. For some issues, there is uncertainty how existing laws will be applied to AI and agentic systems. Depending on how existing AI laws and regulations are implemented and interpreted, we may have to make changes to our business practices and products, including Genius, to comply with such obligations.

In the U.S., there is increasing federal, state and local AI-related legislative and regulatory activity. Some foreign AI regulatory activity (e.g., the EU AI Act) may have an extraterritorial effect and cover certain U.S. activity. As AI laws and regulations are enacted and implemented, we may have to make changes to our business practices and products, including Genius, to comply with such obligations.

Our Genius product involves development of intelligent AI agents that continuously learn, adapt, and evolve in real time. Genius also enables agents to interact with one another and download models and other data. While the real time nature of the agents can be beneficial, this characteristic may preclude the ability to effectively test agents before use. It is possible that agents may generate incorrect outputs or other outputs that may result in reputational harm or liability to the Company.

Genius is an autonomous intelligent system ("AIS"). AIS technologies pose technical risks such as the lack of transparency and explainability, fairness biases, misuse, the infringement of privacy and intellectual property rights, environmental costs and other risks common to AI systems. The Company is actively engaged in developing agent governance technologies to mitigate these risks but these technologies may not effectively mitigate all risks.

**Risks Related to our Subordinate Voting Shares**

***The price of our Subordinate Voting Shares may fluctuate substantially.***

You should consider an investment in our Subordinate Voting Shares to be risky, and you should invest in our Subordinate Voting Shares only if you can withstand a significant loss and wide fluctuations in the market value of your investment. Some factors that may cause the market price of our Subordinate Voting Shares to fluctuate, in addition to the other risks mentioned in this "Risk Factors" section and elsewhere in this Annual Report on Form 10-K, are:

● sale of our Subordinate Voting Shares by our shareholders, executives, and directors;

● volatility and limitations in trading volumes of our Subordinate Voting Shares;

● our ability to obtain financings to conduct our business activities;

● the timing and success of introductions of new and/or enhanced products and services by us or our competitors or any other change in the competitive dynamics of our industry, including consolidation among competitors;

● our ability to attract new customers;

● changes in our capital structure or dividend policy, future issuances of securities and sales of large blocks of Subordinate Voting Shares by our shareholders;

● our cash position;

● announcements and events surrounding financing efforts, including debt and equity securities;

● our inability to enter new markets or develop new and/or enhanced and services products;

● reputational issues;

● announcements of acquisitions, partnerships, collaborations, joint ventures, new products and/or services, capital commitments, or other events by us or our competitors;

● changes in general economic, political and market conditions in or any of the regions in which we conduct our business;

● changes in industry conditions or perceptions;

● analyst research reports, recommendations and changes in recommendations, price targets, and withdrawals of coverage;

● departures and additions of key personnel;

● disputes and litigations related to intellectual properties, proprietary rights, and contractual obligations;

● changes in applicable laws, rules, regulations, or accounting practices and other dynamics;

● actual or anticipated fluctuations in our operating results;

● changes in market valuations of other similar companies; and

● other events or factors, many of which may be out of our control, including, but not limited to, pandemics, war, or other acts of God.

In addition, if the market for stocks in our industry or industries related to our industry, or the stock market in general, experiences a loss of investor confidence, the trading price of our Subordinate Voting Shares could decline for reasons unrelated to our business, financial condition and results of operations. If any of the foregoing occurs, it could cause our stock price to fall and may expose us to lawsuits that, even if unsuccessful, could be costly to defend and a distraction to management.

***We may acquire other companies or technologies which could divert our management's attention, result in dilution to our shareholders and otherwise disrupt our operations and adversely affect our operating results.***

We may in the future seek to acquire or invest in businesses, applications and services or technologies that we believe could complement or expand our products and services, enhance our technical capabilities or otherwise offer growth opportunities. The pursuit of potential acquisitions may divert the attention of management and cause us to incur various expenses in identifying, investigating and pursuing suitable acquisitions, whether or not they are consummated.

In addition, we do not have any experience in acquiring other businesses. If we acquire additional businesses, we may not be able to integrate the acquired personnel, operations and technologies successfully, or effectively manage the combined business following the acquisition. We also may not achieve the anticipated benefits from the acquired business due to a number of factors, including:

● inability to integrate or benefit from acquired technologies or services in a profitable manner;

● unanticipated costs or liabilities associated with the acquisition;

● difficulty integrating the accounting systems, operations and personnel of the acquired business;

● difficulties and additional expenses associated with supporting legacy products and hosting infrastructure of the acquired business;

● difficulty converting the customers of the acquired business onto our platform and contract terms, including disparities in the revenue, licensing, support or professional services model of the acquired company;

● diversion of management's attention from other business concerns;

● adverse effects to our existing business relationships with customers as a result of the acquisition;

● the potential loss of key employees;

● use of resources that are needed in other parts of our business; and

● use of substantial portions of our available cash to consummate the acquisition.

In addition, a significant portion of the purchase price of companies we acquire may be allocated to acquired goodwill and other intangible assets, which must be assessed for impairment at least annually. In the future, if our acquisitions do not yield expected returns, we may be required to take charges to our operating results based on this impairment assessment process, which could adversely affect our results of operations. Acquisitions could also result in dilutive issuances of equity securities or the incurrence of debt, which could adversely affect our operating results. In addition, if an acquired business fails to meet our expectations, our operating results, business and financial position may suffer.

***Unstable market and economic conditions and adverse developments with respect to financial institutions and associated liquidity risk may have serious adverse consequences on our business, financial condition and stock price.***

The global credit and financial markets have recently experienced extreme volatility and disruptions, including severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, inflationary pressure and interest rate changes, increases in unemployment rates and uncertainty about economic stability. The financial markets and the global economy may also be adversely affected by the current or anticipated impact of military conflict, terrorism or other geopolitical events. Sanctions imposed by the United States and other countries in response to such conflicts, may also adversely impact the financial markets and the global economy, and any economic countermeasures by the affected countries or others could exacerbate market and economic instability. Although we do not have significant cash balances at financial institutions in the U.S. which exceed the federally insured limit of $250,000, we have significant cash balances at financial institutions in Canada which, throughout the year, regularly exceed the insured limit of CAD$100,000. Any loss incurred or a lack of access to such funds could have a significant adverse impact on our financial condition, results of operations, and cash flow.

There can be no assurance that future credit and financial market instability and a deterioration in confidence in economic conditions will not occur. Our general business strategy may be adversely affected by any such economic downturn, liquidity shortages, volatile business environment or continued unpredictable and unstable market conditions. If the equity and credit markets deteriorate, or if adverse developments are experienced by financial institutions, it may cause short-term liquidity risk and make any necessary debt or equity financing more difficult, more costly and more dilutive. Failure to secure any necessary financing in a timely manner and on favorable terms could have a material adverse effect on our growth strategy, financial performance and stock price and could require us to delay or abandon development plans. In addition, there is a risk that one or more of our financial institutions and other third parties with whom we engage may be adversely affected by the foregoing risks, which may have a material adverse effect on our business.

***Future sales and issuances of our securities could result in additional dilution of the percentage ownership of our shareholders and could cause our share price to fall.***

We expect that significant additional capital will be needed in the future to continue our planned operations, including continuing activities as an operating public company. To the extent we raise additional capital by issuing equity securities, our shareholders may experience substantial dilution. We may sell Subordinate Voting Shares, convertible securities or other equity securities in one or more transactions at prices and in a manner we determine from time to time. If we sell Subordinate Voting Shares, convertible securities or other equity securities in more than one transaction, investors may be materially diluted by subsequent sales. Such sales may also result in material dilution to our existing shareholders, and new investors could gain rights superior to our existing shareholders.

***We do not intend to pay cash dividends on our Subordinate Voting Shares so any returns will be limited to the value of our shares.***

We have never paid or declared any cash dividends on our Subordinate Voting Shares, and we do not anticipate paying any cash dividends on our Subordinate Voting Shares in the foreseeable future. We currently anticipate that we will retain future earnings for the development, operation and expansion of our business. Any future determination to pay dividends will be at the discretion of our board of directors and will depend upon a number of factors, including our results of operations, financial condition, future prospects, contractual restrictions, restrictions imposed by applicable law and other factors that our board of directors deems relevant. Therefore, any return to shareholders will be limited to the increase, if any, of our share price.

***We are a "smaller reporting company", and the reduced disclosure requirements applicable to smaller reporting companies may make our Subordinate Voting Shares less attractive to investors.***

We are a "smaller reporting company" as defined in Rule 12b-2 under the Exchange Act. We would cease to be a smaller reporting company if (i) we have a public float of $250 million or more and have annual revenues in excess of $100 million or (ii) if we have a public float of $700 million or more, determined on an annual basis.

As a smaller reporting company, we are permitted and intend to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not smaller reporting companies. These exemptions include:

● not being required to furnish a stock performance graph in our annual report;

● reduced disclosure obligations regarding executive compensation;

● being permitted to provide only two years of audited financial statements in our Annual Report on Form 10-K, with corresponding reduced "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosure; and

● not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act.

We cannot predict whether investors will find our Subordinate Voting Shares less attractive as a result of any reliance by us on these exemptions. If some investors find our Subordinate Voting Shares less attractive as a result, there may be a less active trading market for our Subordinate Voting Shares and our stock price may be more volatile.

***Our Subordinate Voting Shares traded on the OTCQB Marketplace and Cboe, which may have an unfavorable impact on our share price and liquidity.***

Our stock is traded on the OTCQB in the United States and Cboe Canada Inc. ("Cboe") in Canada. The OTCQB and Cboe are significantly more limited markets than national securities exchanges in the United States such as the New York Stock Exchange, or Nasdaq and there are lower financial or qualitative standards that a company must meet to be listed on the OTCQB and Cboe. Trading in our Subordinate Voting Shares on each of the OTCQB and Cboe may be subject to abuses, volatility and shorting, which may have little to do with our operations or business prospects. This volatility could depress the market price of our Subordinate Voting Shares for reasons unrelated to operating performance. The Financial Industry Regulatory Authority ("FINRA"), which has jurisdiction over the OTCQB, has adopted rules that require a broker-dealer to have reasonable grounds for believing an investment is suitable for that customer when recommending an investment to a customer. FINRA believes that there is a high probability that speculative low-priced securities will not be suitable for some customers and may make it more difficult for broker-dealers to recommend that their customers buy our Subordinate Voting Shares, which may result in a limited ability to buy and sell our shares.

An active trading market for our Subordinate Voting Shares has not developed, and may not develop, on the OTCQB or Cboe. A limited trading volume may prevent our shareholders from selling shares at such times or in such amounts as they may otherwise desire.

**General Risk Factors**

***If securities or industry analysts do not publish research or reports, or publish unfavorable research or reports about our business, our stock price and trading volume may decline.***

The trading market for our Subordinate Voting Shares will rely in part on the research and reports that industry or financial analysts publish about us, our business, our markets and our competitors. We do not control these analysts. If securities analysts do not cover our Subordinate Voting Shares, the lack of research coverage may adversely affect the market price of our Subordinate Voting Shares. Furthermore, if one or more of the analysts who do cover us downgrade our shares or if those analysts issue other unfavorable commentary about us or our business, our shares price would likely decline. If one or more of these analysts cease coverage of us or fails to regularly publish reports on us, we could lose visibility in the market and interest in our shares could decrease, which in turn could cause our share price or trading volume to decline and may also impair our ability to expand our business with existing customers and attract new customers.

***Financial reporting obligations of being a public company are expensive and time-consuming, and our management will be required to devote substantial time to compliance matters.***

As a publicly traded company we incur significant legal, accounting and other expenses. The obligations of being a public company in the United States require significant expenditures and places significant demands on our management and other personnel, including costs resulting from public company reporting obligations under the Exchange Act and the rules and regulations regarding corporate governance practices, including those under Sarbanes-Oxley, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the listing requirements of Cboe Canada. These rules require the establishment and maintenance of effective disclosure and financial controls and procedures, internal control over financial reporting and changes in corporate governance practices, among many other complex rules that are often difficult to implement, monitor and maintain compliance with. Moreover, despite reforms made possible by the JOBS Act, the reporting requirements, rules, and regulations will make some activities more time-consuming and costly, since we are no longer an "emerging growth company." Our management and other personnel will need to devote a substantial amount of time to ensure that we comply with all of these requirements and to keep pace with new regulations, otherwise we may fall out of compliance and risk becoming subject to litigation or being delisted, among other potential problems.

***Failure to maintain effective internal controls could cause our investors to lose confidence in us and adversely affect the market price of our Subordinate Voting Shares . If our internal controls are not effective, we may not be able to accurately report our financial results or prevent fraud.***

Section 404 of Sarbanes-Oxley requires annual management assessments of the effectiveness of our internal controls over financial reporting. If we fail to comply with the rules under Sarbanes-Oxley related to disclosure controls and procedures in the future, or, if we discover material weaknesses and other deficiencies in our internal controls over financial reporting, our stock price could decline significantly and raising capital could be more difficult. If material weaknesses or significant deficiencies are discovered or if we otherwise fail to achieve and maintain the adequacy of our internal controls, we may not be able to ensure that we can conclude on an ongoing basis that we have effective internal controls over financial reporting in accordance with Section 404 of Sarbanes-Oxley. Moreover, effective internal controls are necessary for us to produce reliable financial reports and are important to prevent financial fraud. If we cannot provide reliable financial reports or prevent fraud, our business and operating results could be harmed, investors could lose confidence in our reported financial information, and the trading price of our Subordinate Voting Shares could drop significantly.

In connection with the audit of our financial statements for the year ended March 31, 2025, we identified the following material weakness in our internal controls:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Insufficient
 written policies and procedures to ensure the correct application of accounting and financial
 reporting with respect to the current requirements of GAAP and SEC disclosure requirements.

2. Due
 to the Company's size and nature, segregation of all conflicting duties may not always
 be possible and may not be economically feasible.

3. Although
 the Company does have a written procedure for the approval, identification and reporting
 of related-party transactions may be limited.

Although we are working to remedy these weaknesses in internal controls, there is no guarantee that we will be able to do so in a timely manner or at all.

**ITEM 1B. UNRESOLVED STAFF COMMENTS**

Not applicable.

**ITEM 1C. CYBERSECURITY**

We recognize that cybersecurity risks represent a significant operational and reputational threat to our business. Our cybersecurity risk management program is designed to identify, assess, mitigate, and respond to cybersecurity threats in a timely and effective manner. The program is integrated into our broader enterprise risk management framework through a defense-in-depth approach.

Key components include:

● Regular internal and external vulnerability assessments and penetration testing;

● Ongoing employee training with user phishing simulation tests;

● A dedicated incident response plan, tested and refined annually;

● Use of multi-factor authentication, encryption, and access control policies;

● Disaster Recovery and Business Continuity Plans;

● Policy acknowledgment;

● Yearly risk assessments;

● Enforcement of least privilege access across environments;

● Continuous improvement loop using CI/CD pipeline, providing accountability and segregation of duties:

● 24/7 monitoring by security operation center;

● Engagement with third-party security consultants for audits and advisory services.

We monitor cybersecurity threats across our systems through both automated tools and manual review processes. Management is responsible for the overall implementation and effectiveness of our cybersecurity program. This includes allocating resources, establishing policies, and ensuring employee adherence to security practices. The Company's Vice President of Operations manages our cyber security process and reports to our President and Chief Operating Officer and our Chief Executive Officer who reports to the Company's Board of Directors.

The Company's Board of Directors has specific oversight responsibilities related to cybersecurity, including review of security controls and incident response plans. Management provides updates to the Audit Committee on cybersecurity risks and the effectiveness of our cybersecurity program.

As of the date of this filing, we have not experienced any material cybersecurity incidents that have materially impacted our operations, financial condition, or results of operations.

**ITEM 2. PROPERTIES**

Our head office is located at 1111 West Hastings Street, 15th Floor, Vancouver, British Columbia, V6E 2J3. We lease additional offices located at 2121 Avenue of the Stars, 8th Floor, Los Angeles, California, 90067, and High Tech Campus 6a 5656 AE Eindhoven, Netherlands for which our rent is $125, $4,350 and €750 per month, respectively, pursuant to month-to-month leases. We believe that our existing facilities are suitable and adequate to meet our current needs. We intend to add new facilities or expand existing facilities as we add employees, and we believe that suitable additional or substitute space will be available as needed to accommodate any such expansion of our operations.

**ITEM 3. LEGAL PROCEEDINGS**

From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. Other than as set forth below, we are currently not aware of any such legal proceedings or claims that will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results.

On July 13, 2022, David Thomson, a former independent contractor, filed a claim against one of the Company's U.S. subsidiaries, VTU, Cyberlab LLC, and two directors/officers of the Company in Los Angeles Superior Court. The claim alleged violations of various sections of the California Corporations Code, breach of contract, breach of the implied covenant of good faith and fair dealing, and unjust enrichment. Plaintiff claimed as much as $5,000,000 in damages, subject to proof. On September 1, 2022, VTU filed an answer denying any wrongdoing, and also made its own counterclaim against Mr. Thomson. The cross-claims against David Thomson included: (i) misappropriation of trade secrets; (ii) breach of contract; (iii) violation of the *California Computer Data Access and Fraud Act* ("CDAFA"); and (iv) violation of the *Economic Espionage Act* along with three additional cross-claims (alleging violation of the Computer Fraud and Abuse Act, conversion, violation of the Stored Communications Act, respectively) that were subsequently dismissed by the Court. VTU, for its part, sought to recover both compensatory and punitive damages from Mr. Thomson, as well as restitution of any ill-gotten gains and an award of reasonable attorneys' fees. The arbitration was conducted for a total of 13 days over a period from February 5 through April 3, 2024, via a single arbitrator at the American Arbitration Association. The CDAFA claim was dismissed by the Arbitrator, but the claims for trade secret misappropriation, breach of contract and unjust enrichment were allowed to move forward. A final arbitration award was issued on May 17, 2024. The final award imposed liability against: (i) VTU, jointly and severally with Cyberlab, LLC, a company owned by the Company's former president and current President Emeritus, Director of Global Development and a director of the Company, Dan Mapes, in the amount of $6,307,258, inclusive of interest; and (ii) Cyberlab, LLC, VTU and its principals, Gabriel René and Dan Mapes, jointly and severally, for damages in the amount of $1,900,000, interest of $709,973 costs of $64,303 and the fees of plaintiff's counsel totaling $920,231. To resolve their part of joint and several liability, Mr. René and Mr. Mapes are working toward satisfying the portion of the award that applies to them as individuals, including $1,666,000 proceeds from insurance. The remaining liability belongs to VTU. Initial good faith payments of $1,791,000 have been made to the claimant. On January 24, 2025, Mr. Thomson filed a Petition to Confirm the Arbitration Award with the Los Angeles Superior Court. A hearing on the Petition was held and on May 8, 2025, the Petition was confirmed for approximately $9,900,000 million together with interest accrued thereon. We recorded the total amount of this award as an expense incurred during our fiscal year ended March 31, 2024, while in the following fiscal year we recorded as income the $1,666,000 insurance payment received by Mr. Mapes and Mr. Rene, which was partially offset by an aggregate of $817,787 of interest that accrued on the total award during the most recently completed fiscal year ended.

On August 10, 2024, the Company learned that a complaint (the "Complaint") had been filed in the Los Angeles Superior Court on June 21, 2024 by a former employee (the "Complainant") against one of the Company's US subsidiaries (VERSES, Inc. or "VINC") and one of its employees in their individual capacity. The Complainant worked for VINC but had been terminated several weeks prior by VINC for poor work performance. The Complaint alleges, *inter alia*, gender harassment; gender discrimination; race discrimination; race harassment; retaliation; and wrongful termination, while seeking to recover as much as $3,500,000 in general and special compensatory damages, subject to proof. The Company (and VINC) for its part, disputes the allegations, and considers the Complainant's termination to have been completely proper and justified under applicable law. It is prepared to defend itself to the fullest extent possible under the law. VINC was properly served with a copy of the Complaint (and associated summons) and filed an Answer to the allegations raised therein on September 24, 2024. The employment contract with the Complainant contained an arbitration clause, and VINC's counsel timely moved to compel arbitration (the "VINC Motion"), and a hearing was held on April 1, 2025. The tentative ruling from the Los Angeles Superior Court (the "Court") denied the VINC Motion, by finding that the *Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021* ("EFAA") was applicable to the Complainant's "gender harassment" claim and that the Complainant had the option to bring her claims to the Court instead of arbitration. The Court allowed for limited oral advocacy during which VINC's counsel argued that the arbitration clause should be enforced. The Court took the matter under submission but, after due deliberation, reaffirmed its original conclusions. The Complainant served VINC with discovery requests, and responses were sent on May 8, 2025. As of the date of this Annual Report on Form 10-K, VINC has not served any discovery on the Complainant. The Court assigned a trial date of July 10, 2026, and also asked the parties to engage in informal mediation via a court sponsored alternative dispute resolution program. A post-mediation status conference is scheduled for September 15, 2025 where the parties have been instructed to summarize the outcome of the mediation process.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

**PART II**

**ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES**

**Market Information**

On June 28, 2022, our Class A Subordinate Voting Shares began trading on Cboe Canada Inc. under the symbol "VERS." In addition, on July 30, 2023, our Class A Subordinate Voting Shares were quoted on the OTCQB tier of the OTC Markets Group under the symbol "VRSSF."

**Shareholders**

As of July 11, 2025, there were 158 shareholders of record of our Class A Subordinate Voting Shares. The actual number of holders of our Class A Subordinate Voting Shares is greater than this number of record holders, and includes shareholders who are beneficial owners, but whose shares are held in street name by brokers or held by other nominees. This number of holders of record also does not include shareholders whose shares may be held in trust by other entities.

**Dividend Policy**

There are no restrictions that would prevent the Company from paying dividends on the Class A Subordinate Voting Shares; however, the Company has neither declared nor paid any dividends or other distributions on the Class A Subordinate Voting Shares or Proportionate Voting Shares since incorporation and has not established any dividend or distribution policy. The Company does not currently pay dividends and does not intend to pay dividends in the foreseeable future. The declaration and payment of dividends, if any, in the future, rests within the sole discretion of the Board and will depend on numerous factors, including compliance with applicable laws, financial performance, working capital requirements of the Company and its subsidiaries, as applicable, and such other factors as its directors consider appropriate. There can be no assurance that the Company will pay dividends under any circumstances. See *"Risk Factors – Dividends"*.

**Recent Sales of Unregistered Securities**

On April 18, 2024, the Company announced a non-brokered private placement of special warrants for gross proceeds of up to CAD$10,000,000 ($7,306,000) through the sale of up to units at a price of CAD$27.00 ($19.74) per special warrant.

Each Special Warrant is exercisable into one unit ("Unit") at no additional cost upon the earlier of: (i) the Company obtaining a receipt from the applicable securities commission(s) in Canada for the final prospectus qualifying the distribution of the units to be issued upon exercise or deemed exercise of the special warrants; and (ii) the date that is four months and a day after date of issuance of the special warrants.

Each Unit is comprised of one Class A Subordinate Voting Share and one-half of one Class A Subordinate Voting Share purchase warrant. Each warrant is exercisable into one Class A Subordinate Voting Share of the Company at a price of CAD$40.50 ($28.17) per warrant share for a period of two years from the date of issue of the warrants. These securities were not registered under the Securities Act or the securities laws of any state, and were offered and sold in reliance on the exemption from registration under the Securities Act, afforded by Section 4(a)(2) and Rule 506 promulgated thereunder and Rule 903 of Regulation S under the Securities Act.

On May 17, 2024, the Company completed the issuance of 370,370 Units for gross proceeds of CAD$10,000,000 ($7,306,000) and paid fees to eligible finders consisting of: (i) CAD$320,404 ($234,087); and (ii) 11,720 finder warrants). Each Finders Warrant will be exercisable into one unit (a "Finder Unit") at a price of CAD$27.00 ($19.74) per Finder Unit until the date that is two years from the date of issue of the finder warrants which Finder Unit will be comprised of a Class A Subordinate Voting Share and one-half of one Class A Subordinate Voting Share purchase warrant (each, whole warrant, a "Finder Unit Warrant"). Each Finder Unit Warrant shall be exercisable into one Class A Subordinate Voting Share at a price of CAD$40.50 ($28.17) per Finder Unit Warrant Share for a period of two years from the date of issue of the Finder Unit Warrants. Securities were not registered under the Securities Act or the securities laws of any state, and were offered and sold in reliance on the exemption from registration under the Securities Act, afforded by Section 4(a)(2) and Rule 506 promulgated thereunder and Rule 903 of Regulation S under the Securities Act.

On June 20, 2024, the Company announced that G42, through Expansion Project Technologies Holding 9 SPV RSX Ltd (EPTH) ("G42 SPV") invested $10,000,000 in the Company via a private placement (the "G42 Financing") of unsecured convertible units of the Company (a "G42 Unit"). Each G42 Unit consists of: (i) CAD$1,000 ($696) in principal amount of unsecured convertible debentures ("G42 Convertible Debentures"); and (ii) 18 detachable subordinate voting share purchase warrants ("G42 Warrants"). The G42 Convertible Debentures bear interest at a rate of 10% per annum and mature on June 20, 2026. The principal amount of the G42 Convertible Debentures, together with all accrued interest, shall be convertible, for no additional consideration, on the earliest to occur of: (A) the date on which the Company completes an equity financing, in one or more tranches, for aggregate gross proceeds of at least CAD$15,000,000 ($10,434,000) at a price per Subordinate Voting Share of not less than CAD$27.00 ($18.78); (B) the date on which G42 elects to convert the G42 Convertible Debentures, and (C) the maturity date. In the event of a conversion of the G42 Convertible Debentures: (i) on the maturity date or at the election of G42, the convertible amount under the G42 Convertible Debentures shall be converted into such number of Subordinate Voting Shares as is equal to the convertible amount divided by CAD$32.40 ($22.54) per share; and (ii) in connection with an equity financing, the convertible amount shall be converted into such number of Subordinate Voting Shares as is equal to the convertible amount divided by the issue price per share sold pursuant to the equity financing, multiplied by 80%, provided that, in no event shall such conversion price be greater than CAD$32.40 ($22.54). Each G42 Warrant will be exercisable into one Subordinate Voting Share at a price of CAD$40.50 ($28.17) per share until June 20, 2027, subject to acceleration. Securities were not registered under the Securities Act or the securities laws of any state, and were offered and sold in reliance on the exemption from registration under the Securities Act, afforded by Section 4(a)(2) and Rule 506 promulgated thereunder and Rule 903 of Regulation S under the Securities Act.

On September 20, 2024, the Company announced a non-brokered private placement of units for gross proceeds of up to CAD$10,000,000 ($7,372,000) through the sale of up to 462,963 units at CAD$21.60 ($15.93) per unit. Each unit consists of one Class A Subordinate Voting Share and 1/2 of one Class A Subordinate Voting Share warrant. Each whole warrant entitles the holder to acquire one Class A Subordinate Voting Share at an exercise price of CAD$32.40 ($22.54), subject to adjustment, for a period of 36 months from the closing date. On September 26, 2024, the Company closed the first tranche which consisted of 231,481 units for gross proceeds of CAD$5,000,000 ($3,686,000) and paid to certain finders/advisors CAD$228,150 and issued 10,562 warrants, which warrants are exercisable into one unit at a price of CAD$21.60 ($15.93) for a period of 36 months following the closing date. Securities were not registered under the Securities Act or the securities laws of any state, and were offered and sold in reliance on the exemption from registration under the Securities Act, afforded by Section 4(a)(2) and Rule 506 promulgated thereunder and Rule 903 of Regulation S under the Securities Act.

On November 6, 2024, the Company announced a non-brokered private placement of special warrants for gross proceeds of up to CAD$1,600,000 ($1,112,000) through the sale of up to 118,518 warrants at a price of CAD$13.50 ($9.69) per warrant. On November 8, 2024, the Company announced the upsize and closing for gross proceeds of CAD$1,800,000 ($1,251,000) through the sale 133,333 warrants. Each warrant is exercisable into one unit at no additional cost. Each unit consists of one Class A Subordinate Voting Share and 1/2 of one warrant which entitles the holder to acquire one Class A Subordinate Voting Share at an exercise price of CAD$18.90 ($13.15), subject to adjustment, for a period of 36 months from the closing date. In connection with the offering, the Company paid to certain finders/advisors CAD$91,325 ($67,325) and issued 6,765 warrants, which warrants are exercisable into one unit at CAD$13.50 ($9.39) for a period of 36 months following the closing. Securities were not registered under the Securities Act or the securities laws of any state, and were offered and sold in reliance on the exemption from registration under the Securities Act, afforded by Section 4(a)(2) and Rule 506 promulgated thereunder and Rule 903 of Regulation S under the Securities Act.

On November 6, 2024, the Company announced a non-brokered private placement of units at a price of CAD$13.50 ($9.69). Each unit consists of one Class A Subordinate Voting Share and 1/2 of one warrant which entitles the holder to acquire one Class A Subordinate Voting Share at an exercise price of CAD$18.90 ($9.69), subject to adjustment, for a period of 36 months from the closing date. On November 8, November 15 and December 9, 2024, the Company closed the first three tranches issuing an aggregate of 310,122 units for gross proceeds of CAD$4,200,000 ($3,004,340), paid finders/advisors CAD$242,632 ($174,113) and issued 13,615 warrants which are exercisable into one unit at a price of CAD$13.50 for a period of 36 months following the closing date. Securities were not registered under the Securities Act or the securities laws of any state, and were offered and sold in reliance on the exemption from registration under the Securities Act, afforded by Section 4(a)(2) and Rule 506 promulgated thereunder and Rule 903 of Regulation S under the Securities Act.

On January 7, 2025, the Company closed offering by way of prospectus supplement. Pursuant to the offering, the Company issued 471,809 units of the Company at a price of CAD$42.39 ($29.55) per unit for gross proceeds of approximately CAD$20,000,000 ($13,947,001). Each unit is comprised of one Class A Subordinate Voting Share of the Company and one-half of one share purchase warrant. Each whole warrant entitles the holder to purchase one share of the Company at an exercise price of CAD$52.92 ($36.81) per warrant share at any time until January 9, 2028, subject to adjustment in certain events. The offering was completed pursuant to an agency agreement dated January 9, 2025 between the Company and A.G.P. Canada Investments ULC ("A.G.P. Canada").

In connection with the offering, the Company paid the A.G.P. Canada a cash commission equal to 8% of the gross proceeds of the offering and issued to the A.G.P. Canada or such selling agents 26,420 compensation warrants as is equal to an aggregate of 8% of the number of units sold pursuant to the offering (the "January Compensation Warrants"). Each January Compensation Warrant is exercisable into a unit compromised of one Class A Subordinate Voting Share and one-half of one share purchase warrant at an exercise price of CAD$42.39 ($29.49) per unit until January 9, 2028. The cash commission and the number of January Compensation Warrants was reduced to 2.0% in respect to the portion of aggregate gross proceeds of the Offering attributable to subscribers identified by the Company. Securities were not registered under the Securities Act or the securities laws of any state, and were offered and sold in reliance on the exemption from registration under the Securities Act, afforded by Section 4(a)(2) and Rule 506 promulgated thereunder and Rule 903 of Regulation S under the Securities Act.

On February 25, 2025, in connection with the conversion of the convertible debentures, the Company issued 510,370 Class A Subordinate Voting Shares and 257,312 warrants exercisable at a price of CAD$52.92 ($36.81) per share. Securities were not registered under the Securities Act or the securities laws of any state, and were offered and sold in reliance on the exemption from registration under the Securities Act, afforded by Section 4(a)(2) and Rule 506 promulgated thereunder and Rule 903 of Regulation S under the Securities Act.

**Issuers Purchases of Equity Securities**

None.

**ITEM 6. [RESERVED]**

**ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS**

*You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes appearing elsewhere in this Annual Report on Form 10-K. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those discussed below. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the sections titled "Risk Factors" and "Cautionary Note on Forward-Looking Statements" included elsewhere in this Annual Report on Form 10-K.* 

**Overview**

VERSES is a cognitive computing company specializing in next generation intelligence software systems. We are primarily focused on developing an intelligence-as-a-service smart software platform called Genius.

We launched a private beta program of Genius in early 2024 with a few select users with whom we had existing business relationships and launched a public beta program for a broader number of developers in the second half of 2024.

On April 30, 2025, we announced the launch of our flagship product, Genius, which is designed to enable agentic intelligence for enterprises. The initial target audience for Genius is machine learning and data science professionals trying to solve enterprise problems that require prediction where there is uncertainty or hidden factors. Genius is designed to provide the tools necessary to build domain-specific models that are intended to improve decision-making (inference as a service) for third-party agents through our software development kits/application programming interfaces and model editor. We intend to market Genius to developers as a SaaS for making their applications smarter, safer and more sustainable. We anticipate offering multiple subscription tiers priced based on usage and pricing will be informed by various performance metrics gathered during the beta program.

Genius includes:

● Intelligent, autonomous software agents

● A visual model editor for building and testing AI models

● APIs to integrate with existing enterprise systems

● A full-featured developer portal for rapid deployment

Since the launch of Genius we have announced new customers and resellers in a number of sectors and use cases including smart cities (Analog), financial services, workforce scheduling, IT consulting and manufacturing.

**Recent Developments**

On April 28, 2025, the Company announced the closing of a registered securities offering in Canada pursuant to which the Company sold 916,666 units at a price of $8.64 (CAD$12.00) per unit for gross process of approximately $7.9 million (CAD$11.0 million). Each unit consists of one Class A Subordinate Voting Share and one-half of one share purchase warrant. Each whole warrant entitles the holder to purchase one Class A Subordinate Voting Share at an exercise price of $10.80 (CAD$15.00) per share, subject to adjustment as provided therein, for a period of 36 months from the date of issuance. In connection with the offering, the Company paid the agents a cash commission equal to $432,540 (CAD$600,000) and issued the agents warrants ("Compensation Warrants") to purchase up to 70,334 Class A Subordinate Voting Shares. Each Compensation Warrant is exercisable into one Class A Subordinate Voting Share at an exercise price of $8.64 (CAD$12.00) per share, subject to adjustment as provided therein, for a period of 36 months from the date of issuance.

On June 23, 2025, the Company effectuated a one-for-three reverse stock split of its issued and outstanding Class A Subordinate Voting Shares.

On July 11, 2025, the Company closed of a public offering of 1,007,764 units at a of $6.946 (CAD$9.50) per unit for gross proceeds of approximately $7,000,331 (CAD$9,573,758), before deducting commissions and estimated expenses incurred in connection with the offering. Each unit consists of one Class A Subordinate Voting Share of the Company and one-half of one Class A Subordinate Voting Share purchase warrant. Each whole warrant is exercisable to acquire one Class A Subordinate Voting Share at a price of $8.41 (CAD$11.50) per share for a period of 36 months from the date of issuance.

*<u>SELECTED FINANCIAL INFORMATION</u>*

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2024** | **$ Change** | **% Change** |
| **REVENUE** | $155000 | $1966731 | $(1811731) | -92% |
| **COST OF REVENUE** | (631691) | (1699170) | 1067479 | -63% |
| **NET REVENUE** | (476691) | 267561 | (744252) | -278% |
| **OPERATING EXPENSES** |  |  |  |  |
| <u>Cash expenses</u> |  |  |  |  |
| Accounting fees | (567566) | (538394) | (29172) | 5% |
| Consulting fees | (5201045) | (4146232) | (1054813) | 25% |
| Investor relations and marketing | (3165838) | (6980578) | 3814740 | -55% |
| Legal fees | (1801538) | (2015619) | 214081 | -11% |
| Management fees | (146666) | (41067) | (105599) | 257% |
| Office and general | (1881530) | (1709991) | (171539) | 10% |
| Personnel expenses | (3581964) | (3713861) | 131897 | -4% |
| Rent | (90965) | (26838) | (64127) | 239% |
| Research and development | (15142542) | (12024288) | (3118254) | 26% |
| Travel and meals | (617877) | (1098984) | 481107 | -44% |
|  | (32197531) | (32295852) | 98321 | 0% |
| <u>Non-cash expenses</u> |  |  |  |  |
| Depreciation | (172425) | (261747) | 89322 | -34% |
| Provision for contract settlement | (1252076) |  | (1252076) | 0% |
| Share based payments | (7679205) | (7850119) | 170914 | -2% |
|  | (9103706) | (8111866) | (991840) | 12% |
| **TOTAL EXPENSES** | (41301237) | (40407718) | (893519) | 2% |
| **OTHER ITEMS:** |  |  |  |  |
| Grant income | 156885 | 154709 | 2176 | 1% |
| Other income | 213413 | 240293 | (26880) | -11% |
| Accretion expense |  | (203918) | 203918 | -100% |
| Interest expense | (1953499) | (348441) | (1605058) | 461% |
| Legal claim expense | 848213 | (9921298) | 10769511 | -109% |
| Provision for losses on related party transactions | (479808) | (1872334) | 1392526 | -74% |
| **LOSS BEFORE INCOME TAXES** | (42992724) | (52091146) | 9098422 | -17% |
| Income Taxes |  | (2513) | 2513 | -100% |
| **NET LOSS** | **(42992724)** | **(52093659)** | **9100935** | **-17%** |
| **Loss Per Class A Subordinate Voting Shares - Basic and Diluted** | $**(5.49)** | $**(9.44)** | 4 | -42% |
| **Loss Per Class B Proportionate Voting Shares - Basic and Diluted** | $**Nil** | $**(22.50)** | - | 0% |
| **Class A Subordinate Voting Shares used in computing earnings per share - Basic and Diluted** | **7825570** | **3205324** | 4620246 | 144% |
| **Class B Proportionate Voting Shares used in computing earnings per share - Basic and Diluted** | **-** | **370370** | (370370) | -100% |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **% of Revenue** | **2024** | **% of Revenue** | **$ Change** | **% Change** |
| **REVENUE** | $155000 |  | $1966731 |  | $(1811731) | -92% |
| **COST OF REVENUE** | (631691) | 408% | (1699170) | 86% | 1067479 | -63% |
| **NET REVENUE** | (476691) | -308% | 267561 | 14% | (744252) | -278% |

---

***Revenue***

Consists of proof of concept projects, software implementation services, and software as a service ("SaaS"). Revenue decreased by $1.81 million, or 92%, to $155,000 for the year ending March 31, 2025, compared to $1.97 million for the prior year. This decrease is primarily attributed to the termination of the SaaS contract, which we did not report in 2025 (compared to $1.75 million in 2024).

***Cost of Revenue***

Consists of personnel, contractors, hosting, and other costs related to the delivery services to the customers. Cost of revenue decreased by $1.07 million, primarily due to the termination of the SaaS contract. In 2025, the Company recorded a provision of $486,691 related to the estimated loss for the agreement with Analog. If this provision is disregarded, the restated cost of revenue would be $145,000 and would represent 94% of the revenue.

***Net Revenue***

 ****

Represents the revenue minus cost of revenue. Net revenue decreased by $744,252, or 96%, to a negative net revenue of $476,691 for the year ending March 31, 2025, compared to $267,561 for the prior year. The decrease in net revenue is attributed to the overall decline in revenue, as well as the increase in cost of revenue for the period.

***Operating Expenses***

 ****

Operating expenses are allocated between cash and non-cash expenses. We allocated expenses on this basis to help facilitate the calculation and understanding of the Company's cash flow from operations and liquidity, which we believe are important financial and operating metrics.

***Cash Expenses***

 ****

Cash expenses consists of the items below. Cash expenses decreased by $98,321, or less than 1%, to $32.20 million for the year ending March 31, 2025, compared to $32.30 million for the prior year. The consistency of our cash expenses is primarily due to the Company's base cost structure.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **% of TCE** | **2024** | **% of TCE** | **$ Change** | **% Change** |
| <u>Cash expenses</u> |  |  |  |  |  |  |
| Accounting fees | (567566) | 2% | (538394) | 2% | (29172) | 5% |
| Consulting fees | (5201045) | 16% | (4146232) | 13% | (1054813) | 25% |
| Investor relations and marketing | (3165838) | 10% | (6980578) | 22% | 3814740 | -55% |
| Legal fees | (1801538) | 6% | (2015619) | 6% | 214081 | -11% |
| Management fees | (146666) | 0% | (41067) | 0% | (105599) | 257% |
| Office and general | (1881530) | 6% | (1709991) | 5% | (171539) | 10% |
| Personnel expenses | (3581964) | 11% | (3713861) | 11% | 131897 | -4% |
| Rent | (90965) | 0% | (26838) | 0% | (64127) | 239% |
| Research and development | (15142542) | 47% | (12024288) | 37% | (3118254) | 26% |
| Travel and meals | (617877) | 2% | (1098984) | 3% | 481107 | -44% |
| **Total Cash Expenses (TCE)** | (32197531) | 100% | (32295852) | 100% | 98321 | 0% |

---

● Accounting Fees – relates to accounting staff and external audit fees. Accounting fees increased by $29,172, or 5%, to $567,566 for the year ending March 31, 2025, compared to $538,394 for the prior year. Accounting fees remained consistent for both periods at approximately 2% of cash expenses, as staff and activities for both periods have remained consistent.

● Consulting Fees – relates to business development consulting, financial advisory services, and general consulting services. Consulting fees increased by $1.05 million, or 25%, to $5.20 million for the year ending March 31, 2025, compared to $4.15 million for the prior year. Consulting fees were 16% of cash expenses for the year ending March 31, 2025, compared to 13% for the prior period.

● Business development consulting was $2.85 million in the year ended March 31, 2024 (2024 - $3.26 million). The decrease of $415,203 is related to a reduction of consultants involved with the business strategy development of the Company during the year.

● Financial advisory services were $1.99 million (2024 - $497,781). The increase of $1.49 million is primarily attributed to fees paid to financial advisors in connection with the implementation and expansion of the Company's financing strategy. This is directly related to the $10.12 million increase in cash flow from financing activities observed in the year ended March 31, 2025.

● General consulting services were $370,313 in the year ended March 31, 2025 (2024 - $388,034). The $17,721 represents a reduction in resources associated with the delivery of the European grant.

● Investor Relations and Marketing – relates to messaging, marketing, and advertising of the Company and its products to potential users, and to develop general Company and brand awareness as well as investor relations initiatives associated with presenting the Company to the investing public in media, at roadshows, and on social media. Investor relations and marketing decreased by $3.82 million, or 55%, to $3.17 million for the year ending March 31, 2025, compared to $6.98 million for the prior year. Investor relations and marketing was 10% of cash expenses for the year ending March 31, 2025, compared to 22% for the prior year. We combine these expenses for both years ending March 31, 2024, and 2025, as the Company's initiatives to market the product of the Company and investment in the Company were intertwined and indistinguishable. Going forward, as the Company begins to market its products and services, we will be able to distinguish between marketing and investor relations expenses. This decrease in investor relations and marketing is due to:

● Business development reported $1.74 million in the year ended March 31, 2025 (2024 - $3.67 million). The decrease of $1.93 million is a result of fewer consultants engaged to perform business development functions.

● Marketing and investor awareness reported $869,989 in the year ended March 31, 2025 (2024 - $2.40 million). The decrease of $1.53 million is a result of fewer consultants engaged to perform business development functions.

● General consulting services reported $554,079 in the year ended March 31, 2025 (2024 - $912,612). The decrease of $358,533 is a result of fewer consultants engaged to perform business development functions.

● Legal Fees – Legal fees decreased $214,081, or 11%, to $1.80 million for the year ending March 31, 2025, compared to $2.02 million for the prior year. Legal fees were 6% of cash expenses for the years ending March 31, 2025, and 2024. This decrease is mainly due to the reduction of special projects conducted during the year ending March 31, 2025 that required the support of external counsel compared to the prior year.

● Management Fees – Management fees relate to costs associated with Board members. Management Fees increased by $105,599, or 257%, to $146,666 for the year ending March 31, 2025, compared to $41,067 for the prior year. The increase is related to higher fees paid to the new Chairman of the Company, who joined the Board in September 2024.

● Office and General Expenses – relates to subscriptions, insurance, transaction fees, and general expenses of the Company. Office and general expenses increased $171,539, or 10%, to $1.88 million for the period ending March 31, 2025, compared to $1.71 million for the prior year. Office and general expenses remained consistent at approximately 5-6% of cash expenses for both years. The increase is due to higher fees incurred with a professional employment agency to contract employees outside of the United States and Canada, higher expenses due to transaction fees paid to the Canadian Exchange, and higher general expenses, including subscriptions.

● Personnel Expenses – relates to general and administrative payroll costs. Personnel expenses decreased $131,897, or 4%, to $3.58 million for the period ending March 31, 2025, compared to $3.71 million for the prior year. Personnel expenses remained consistent at 11% of cash expenses for both years.

● Rent – relates to the rent paid for various office and other spaces used by the Company. Rent expense increased by $64,127, to 239% $90,965 for the year ending March 31, 2025, compared to $26,838 for the prior year. Rent expense was less than 1% of cash expenses for both years. Rent increased for 2025 as the Company had to rent additional space to test and prepare various projects under development or being tested.

● Research and Development – relates to payroll and contractor costs associated with the development of the Company's product. Research and development increased by $3.12 million, or 26%, to $15.14 million for the year ending March 31, 2025, compared to $12.02 million for the prior year. Research and development was 47% of cash expenses for the year ending March 31, 2025, compared to 37% for the prior year.

● Travel and Meals – relates to expenses related to meals, airfare, transportation, and other related expenses. Travel and meals decreased by $0.48 million, or 44%, to $0.62 million for the year ending March 31, 2025, compared to $1.10 million for the prior year. Travel and meals remained consistent at approximately 2-3% of cash expenses for both years.

***Non-Cash Expenses***

 ****

Non-cash expenses consists of the items below. Non-cash expenses increased by $0.99 million, or 12%, to $9.10 million for the year ending March 31, 2025, compared to $8.11 million for the prior year.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **% of TNCE** | **2024** | **% of TNCE** | **$ Change** | **% Change** |
| <u>Non-cash expenses</u> |  |  |  |  |  |  |
| Depreciation | (172425) | 2% | (261747) | 3% | 89322 | -34% |
| Provision for contract settlement | (1252076) | 14% |  | 0% | (1252076) | 0% |
| Share based payments | (7679205) | 84% | (7850119) | 97% | 170914 | -2% |
| **Total Non Cash Expenses (TNCE)** | (9103706) | 100% | (8111866) | 100% | (991840) | 12% |

---

● Depreciation – relates to the decrease in the useful life of computer equipment. Depreciation decreased by $89,322, or 34%, to $172,425 for the year ending March 31, 2025, compared to $261,747 for the prior year. The reduction is attributable to some equipment that exceeded its three-year useful life that are no longer being depreciated.

● Provision for contract settlement – relates to the unbilled balance of the SaaS project terminated in August 2024. Provision for contract settlement was $1.25 million for the year ending March 31, 2025. There was no comparable expense in the prior year.

● Share based payments – relates to Black-Scholes grading vesting of stock options and RSUs granted to the Company's employees, contractors and strategic consultants. Share based payments decreased by $170,914, or 2%, to $7.68 million for the year ending March 31, 2025, compared to $7.85 million for the prior period. The reduction is primarily due to a shorter vesting period associated with the 2024 stock option grants, resulting in a higher front-loaded expense in the prior year. In contrast, the 2025 stock option grants follow a longer vesting schedule, resulting in lower expense recognition in the current period. This decrease was partially offset by a larger number of RSUs granted during the year ended March 31, 2025. See the details of the variations in the table below.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Share based payments** | *Stock Options* | *RSUs* | *Modification of broker's warrants* | *Settlement agreement* | *Total* |
| Previous year graded vesting | 473109 |  |  |  | 473109 |
| New grants Q1 2023 | 70925 |  |  |  | 70925 |
| New grants Q3 2023 | 6390644 | 127400 |  |  | 6518044 |
| Modification of broker's warrants |  |  | 440604 |  | 440604 |
| Revaluation RSUs |  | 148636 |  |  | 148636 |
| Settlement agreement | - | - | - | 198801 | 198801 |
| Balance, March 31, 2024 | $6934678 | $276036 | $440604 | $198801 | $7850119 |
| Previous years graded vesting | 675250 |  |  |  | 675250 |
| Previous years RSUs revaluation |  | (231386) |  |  | (231386) |
| New grants Q1 2024 | 128287 | 29948 |  |  | 158235 |
| New grants Q2 2024 | 1542912 | 3049516 |  |  | 4592428 |
| New grants Q3 2024 | 1291759 | 2621935 |  |  | 3913694 |
| Cancelled options / RSUs | (1416299) | (12717) | - | - | (1429016) |
| Balance, March 31, 2025 | $2221909 | $5457296 | $- | $- | $7679205 |

---

***Total Operating Expenses***

Total operating expenses increased by $0.89 million, or 2%, to $41.30 million for the year ending March 31, 2025, compared to $40.41 million for the prior year. This increase is primarily due to $0.99 million in non-cash expenses associated with the provision for contract settlement, which was partially offset by lower share based payments ($0.17 million) and depreciation ($0.09 million).

***Other Items***

Other items consists of the items below. Other items loss decreased by $10.7 million, or 90%, to $1.2 million for the year ending March 31, 2025, compared to a loss of $11.95 million for the prior year.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **% TOI** | **2024** | **% TOI** | **$ Change** | **% Change** |
| **OTHER ITEMS:** |  |  |  |  |  |  |
| Grant income | 156885 | -13% | 154709 | -1% | 2176 | 1% |
| Other income | 213413 | -18% | 240293 | -2% | (26880) | -11% |
| Accretion expense |  | 0% | (203918) | 2% | 203918 | -100% |
| Interest expense | (1953499) | 161% | (348441) | 3% | (1605058) | 461% |
| Legal claim expense | 848213 | -70% | (9921298) | 83% | 10769511 | -109% |
| Provision for losses on related party transactions | (479808) | 39% | (1872334) | 16% | 1392526 | -74% |
| **Total Other Items (TOI)** | (1214796) | 100% | (11950989) | 100% | 10736193 | -90% |

---

● Grant Income – relates to the reimbursement of expenses for amounts spent on project activities related to the grant agreement with Horizon Europe, which is delegated by the European Commission. Grant Income increased by $2,176, or 1%, to $156,885 for the year ending March 31, 2025, compared to income of $155,000 for the prior year. This project is expected to end in August 2026.

● Other Income – relates to interest received from interest-bearing bank accounts. Other income decreased $26,880, or 11%, to $213,413 for the year ending March 31, 2025, compared to income of $240,293 for the prior year.

● Accretion Expense – relates to the increase in the carrying value of the discounted value of the convertible debenture converted in 2024. There was no accretion expense for the year ending March 31, 2025, compared to an expense of $203,918 for the prior year.

● Interest Expense – relates to interest incurred in the conversion of the convertible debenture converted in 2025, interest incurred in the loan payable, and the interest related to the financing of the directors and officers insurance. Interest expense increased $1.61 million, or 461%, to $1.95 million for the year ending March 31, 2025, compared to an expense of $348,441 for the prior year.

● Legal Claim Expense – Legal claim expense decreased $10.77 million, or 109%, to income of $0.85 million for the year ending March 31, 2025, compared to an expense of $9.92 million for the prior year. The Company recorded the total amount of $9.92 million associated with the David Thomson arbitration award confirmed by the Los Angeles Superior Court as an expense incurred during the year ending March 31, 2024, while during the following year ending March 31, 2025, we recorded as income the $1.67 million insurance payment received by Dan Mapes (President Emeritus, Director of Global Development and a director of the Company) and Gabriel René (CEO and director), which was partially offset by an aggregate of $817,787 of interest that accrued on the total award during the most recently completed fiscal year ended, resulting in an income of $0.85 million for the year ended March 31, 2025.

● Provision for Loss on Related Party Transactions – Provision for loss on related party transactions decreased $1.39 million, or 74%, to $0.48 million for the year March 31, 2025, compared to an expense of $1.87 million for the prior year.

The provision for losses on related party transactions includes amounts due from Cyberlab LLC ("Cyberlab") and the Spatial Web Foundation ("SWF"), entities controlled or associated with the Company's founders, Dan Mapes and Gabriel René.

The related expenses arose primarily from payments made by the Company on behalf of these related parties to third-party vendors.

Although these amounts are expected to be settled through future service agreements, management performed a credit assessment in accordance with the current expected credit loss model under Accounting Standards Codification ("ASC") 326. Based on this assessment, management determined that there is significant uncertainty regarding the timing and collectability of these receivables. As of March 31, 2025, management concluded that full repayment is not probable within a reasonable timeframe.

***Income Taxes***

The Company did not pay any income tax for the year ending March 31, 2025, compared to an expense of $2,513 for the prior year. This expense is related to the California franchise tax.

***Net Loss***

Net loss decreased $9.10 million, or 17%, to $43.00 million for the year ending March 31, 2025, compared to a net loss of $52.10 million for the prior year.

***Liquidity and Capital Resources***

The Company has historically raised capital to fund operations, primarily through investor support. The Company will continue to rely on such support to generate sufficient amounts of cash and cash equivalents to cover its operating costs, satisfy short- and long- term capital requirements, and meet planned growth objectives. The ability of the Company to arrange additional financing in the future will depend, in part, on the prevailing capital market conditions. Any quoted market for the Company's shares may be subject to market trends generally, notwithstanding any potential success of the Company in creating new revenues, cash flows or earnings.

The Company's ability to continue its operations and to realize its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. The ability of the Company to raise sufficient capital to fund operation are conditional primarily through the continuation of its agreements and investor support. The material uncertainty associated with these events and conditions may cast substantial doubt about the Company's ability to continue as a going concern. The Company's financial statements do not give effect to any adjustments, which would be necessary should the Company be unable to continue as a going concern. In such circumstances, the Company would be required to realize its assets and discharge its liabilities outside of the normal course of business, and the amounts realized could differ materially from those reflected in the accompanying condensed consolidated interim financial statements.

The Company's consolidated financial statements have been prepared on a going concern basis which assumes that the Company will continue to operate for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company has incurred losses since inception and has not yet achieved profitable operations. The Company has been relying on debt and equity financing to fund its operation in the past. While the Company has been successful in securing financing to date, there can be no assurances that it will be able to do so in the future. As noted in the report of our independent public accountants for our financial statements for the year ended March 31, 2024, the aforementioned factors raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that such audited annual financial statements were issued.

Historically, the Company has used net proceeds from issuances of debt and equity to provide sufficient funds to meet its near-term asset development plans and other contractual obligations when due. Management plans to fund operations of the Company with its current working capital and through additional equity and/or debt financings. Management believes that this plan provides an opportunity for the Company to continue as a going concern.

Continuing as a going concern is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to, meets its financial requirements, raise additional capital, and the success of its future operations.

The Company's long-term capital requirements may vary materially from those currently planned and will depend on many factors, including the rate of net sales growth, the timing and extent of spending on research and development efforts and other growth initiatives, the expansion of sales and marketing activities, the timing of new products, and overall economic conditions. The ability of the Company to arrange additional financing in the future will depend, in part, on the prevailing capital market conditions and its success with its strategic collaborations. Any quoted market for the Subordinate Voting Shares may be subject to market trends generally, notwithstanding any potential success of the Company in creating new revenues, cash flows or earnings. The sale of additional equity would result in additional dilution to the Company's shareholders. The incurrence of debt financing would result in debt service obligations and the instruments governing such debt could provide for operating and financing covenants that may restrict our operations. There can be no assurances that we will be able to raise additional capital on terms that are attractive to us or at all. The inability to raise capital would adversely affect our ability to achieve our business objectives.

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Cash | 4816906 | 892727 |
| Current assets, including cash | 6183082 | 3495111 |
| **Total Assets** | $6376575 | $3827306 |
| Current liabilities | 15106292 | 15362514 |
| Other liabilities | 139039 | 140904 |
| Shareholder's equity | (8868756) | (11676112) |
| **Total liabilities and shareholder's equity** | $6376575 | $3827306 |

---

Cash increased to $4.82 million for the year ending March 31, 2025, compared to $0.89 million for the prior year. Working capital is current assets minus current liabilities, including the current portion of long-term debt. We had a working capital deficit of $8.92 million for the year ended March 31, 2025, compared to a working capital deficit of $11.87 million for the prior year.

---

| | | | |
|:---|:---|:---|:---|
| *For the year ended* | *2025* | *2024* | *Change* |
| Cash provided by (used) in operating activities | $(33091087) | $(29593507) | $(3497580) |
| Cash provided by (used) in investing activities | (510387) | (1255737) | 745350 |
| Cash provided by (used) in financing activities | 37658432 | 27538420 | 10120012 |
| Foreign exchange effect on cash | (132779) | (193730) | 60951 |
| Net change in cash during the period | $3924179 | $(3504554) | $7428733 |

---

● Cash used in operating activities is comprised of net loss, add-back of non-cash expenses, and net change in non-cash working capital items. Cash used in operating activities increased by $3.50 million to $33.10 million for the year ended March 31, 2025, compared to $29.59 million for the prior year. The increase is mostly attributed to a higher variation of cash used to settle accounts payable ($2.41 million) and the higher loss adjusted by items not involving cash in the year ended March 31, 2025 ($1.22 million).

● Cash used in investing activities primarily reflects payments related to SWF and Cyberlab, as well as purchases of computer equipment. For the year ended March 31, 2025, the Company reduced its payments related to SWF and Cyberlab by $590,774 to $479,808 for the year ended March 31, 2025 (2024 - $1.07 million), primarily due to lower expenses associated with the arbitration legal process. Additionally, capital expenditures decreased by $154,576 to $30,579 for the year ended March 31, 2025 (2024 - $185,155), reflecting a reduction in computer equipment purchases compared to the prior year.

● Cash provided by financing activities relates to the instruments used by the Company to fund its working capital needs. The increase in cash flows from financing activities was primarily driven by higher net proceeds from the issuance of units ($11.75 million) and the issuance of convertible debentures ($10.00 million). These inflows were partially offset by a decline in equity issuances ($6.89 million) and the repayment of promissory notes ($2.00 million).

***Commitments***

 

The Company has an obligation to pay royalties to Cyberlab (a company owned by Dan Mapes, President Emeritus, Director of Global Development and a director of the Company). Cyberlab shall be entitled to receive a share of the gross revenue derived from the sales, licensing and other commercial activities involving Spatial Domain Names, pursuant to the following schedule:

● Years 1 through 10 of the Spatial Domain Program: Cyberlab shall be entitled to 5% of all gross revenue from the Spatial Domain Program, while VERSES shall retain the remaining 95% to allocate between itself and other Spatial Domain Program stakeholders (e.g. registries, registrars, etc.) as it sees fit.

● Years 11 through 14 of the Spatial Domain Program: Cyberlab shall be entitled to retain 4% of all gross revenue from the Spatial Domain Program, while VERSES shall retain the remaining 96%.

● Years 15 through 17 of the Spatial Domain Program: Cyberlab shall be entitled to retain 3% of all gross revenue from the Spatial Domain Program, while VERSES shall retain the remaining 97%.

● Years 18 and 19 of the Spatial Domain Program: Cyberlab shall be entitled to retain 2% of all gross revenue from the Spatial Domain Program, while VERSES shall retain the remaining 98%.

● Years 20 through 25 of the Spatial Domain Program: Cyberlab shall be entitled to retain 1% of all gross revenue from the Spatial Domain Program, while VERSES shall retain the remaining 99%.

As of March 31, 2025, no amounts are payable under the royalty agreement.

The Company is obligated to grant stock options ("Options"), deferred share units ("DSU"), or RSUs to qualifying consultants and employees based on their respective contracts, to be determined at the grant date based on the market price of the Company's shares. As at March 31, 2025, the outstanding commitment balance is nil (March 31, 2024 – 320,069) to be granted as options, RSUs or DSUs.

The Company has entered into severance agreements with Gabriel René (Chief Executive Officer and Director), Dan Mapes (President Emeritus and Global Ambassador and Director), James Christodoulou, Chief Financial Officer), Donald Moody (General Counsel and Chief Legal Officer), Capm Petersen (Chief Innovation Officer), Steven Swanson (Chief Experience Officer), and Michael Wadden (Chief Commercial Officer). In the case of involuntary termination or a change in control, the executives are entitled to a monetary payment equal to 12 months' worth of base salary, continuation for 12 months of medical and dental insurance, and immediate, accelerated vesting of all stock options, equity, and related compensation.

The Company has entered into a severance agreement with Kevin Wilson, its Chief Accounting Officer. In the case of involuntary termination or a change in control, the Chief Accounting Officer is entitled to a monetary payment equal to 36 months of base salary, continuation for 36 months of medical and dental insurance, and immediate, accelerated vesting of all stock options, equity, and related compensation.

***Outstanding Share Capital***

<u>As at</u> <u>July 11, 2025</u> <u>March 31, 2025</u> <br> Shares issued to Class A Subordinate Voting Share shareholders 9,847,199   <u>7,825,571</u>

***Outstanding Warrants***

<u>*As at*</u> <u>*July 11, 2025*</u> <u>*March 31, 2025*</u> <br> Warrants 3,125,284   <u>2,095,224</u>

***Outstanding Stock Options***

<u>As at</u> <u>July 11, 2025</u> <u>March 31, 2025</u> <br> Stock options   <u>803,712</u>   <u>770,884</u>

***Outstanding Restricted Share Units ("RSUs")***

<u>As at</u> <u>July 11, 2025</u> <u>March 31, 2025</u> <br> RSUs Note 1   <u>625,762</u>   <u>685,373</u>

Note:

&nbsp;&nbsp;&nbsp;&nbsp;(1) RSUs
 are convertible into one Subordinate Voting Shares or payable in cash.

***Transactions with Related Parties***

 

The Company's related parties consist of the directors, executive officers and key management personnel, who have authority and responsibility for planning, directing, and controlling the Company's activity and companies controlled by them. Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources, services, or obligations between related parties.

Transactions are measured at the exchange amount, which is the amount agreed to by the parties.

Key management personnel include those with authority and responsibility for planning, directing, and controlling the company's activities. The Company has determined that key management personnel consist of executive and non-executive members of its Board of Directors and senior officers.

During the years ended March 31, 2025 and 2024, related party transactions were as follows:

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| | | |
|:---|:---|:---|
|  | *2025* | *2024* |
| Management fees | $146666 | $41067 |
| Management salaries and benefits included in personnel expenses | 1719195 | 1338762 |
| Share-based payments (Note 8) | 655145 | 720222 |
|  | $2521007 | $2100051 |

---

The following management members incurred in the salaries and management fees:

---

| | | | |
|:---|:---|:---|:---|
|  | *Position* | *2025* | *2024* |
| Management salaries, Gabriel René | Chief Executive Officer and director | 405000 | 435000 |
| Management bonus, Gabriel René | Chief Executive Officer and director | 100000 |  |
| Management benefits, Gabriel René | Chief Executive Officer and director | 32011 | 28829 |
| Management salaries, Dan Mapes | President and director | 306000 | 358500 |
| Management benefits, Dan Mapes | President and director | 24385 | 22751 |
| Management salaries, James Christodoulou | Chief Financial Officer | 29167 |  |
| Management benefits, James Christodoulou | Chief Financial Officer |  |  |
| Management salaries, James Hendrickson | Chief Operating Officer | 237917 | 200000 |
| Management bonus, James Hendrickson | Chief Operating Officer | 243500 |  |
| Management benefits, James Hendrickson | Chief Operating Officer | 33204 | 27443 |
| Share-based payments, James Hendrickson | Chief Operating Officer | 77664 | 24294 |
| Management salaries, Kevin Wilson | Chief Accounting Officer and Secretary | 251167 | 249000 |
| Management bonus, Kevin Wilson | Chief Accounting Officer and Secretary | 40000 |  |
| Management benefits, Kevin Wilson | Chief Accounting Officer and Secretary | 16844 | 17239 |
| Share-based payments, Kevin Wilson | Chief Accounting Officer and Secretary | 27287 | 335808 |
| Management fees, Michael Blum | Chairman | 62500 |  |
| Share-based payments, Michael Blum | Chairman | 439973 |  |
| Management fees, Jay Samit | Former Chairman | 84166 | 41067 |
| Share-based payments, Jay Samit | Former Chairman | 40766 | 84594 |
| Share-based payments, Gordon Scott Paterson | Director | 28690 | 190933 |
| Share-based payments, Jonathan de Vos | Director | 40766 | 84594 |
| Total |  | $2521007 | $2100051 |

---

Included in accounts payable at March 31, 2025, were amounts totaling $105,799 (March 31, 2024 – $nil) due to James Hendrickson, the Chief Operating Officer ($83,500), Michael Blum, the Chairman ($20,000), and Kevin Wilson, the Chief Accounting Officer ($2,299).

Also included in the due from related parties is an unsecured loan of $68,080 (March 31, 2024 - $64,936) to a key member of the management team. The loan has an annual interest rate of 5% and requires principal and interest to be paid in full by May 1, 2033. No repayments were made in the year ended March 31, 2025.

On December 23, 2024, the Company granted 7,407 stock options to James Hendrickson, its Chief Operating Officer with an exercise price of CAD$30.51 ($21.22), expiring in five years, where 25% will within one year of the grant date, and 6.25% every subsequent quarter. The stock options were fair valued at $118,679, of which $40,354 is recognized in the year ended March 31, 2025, using the Black-Scholes option pricing model.

On September 13, 2024, the Company granted 74,074 RSUs to Michael Blum, a director of the Company with no exercise price, expiry date of ten years from the grant date, vesting 24,691 within one year of the grant date and 8.33% every three months afterwards. For the year ended March 31, 2025, the Company revalued the RSUs based on the market price of one Subordinate Voting Share on the revaluation date. The Company recognized $439,973 as share-based payment for RSUs in the year.

On July 3, 2024, the Company granted 3,704 stock options to James Hendrickson, the Chief Operating Officer and 1,852 to Kevin Wilson, the Chief Accounting Officer. The Options have an exercise price of CAD$28.89 ($20.10) and expire in five years. 25% of the options will vest within one year of the grant date and 6.25% every subsequent quarter. The stock options were fair valued at $89,355, of which $41,095 is recognized in the year ended March 31, 2025, using the Black-Scholes option pricing model.

On July 3, 2024, the Company granted 1,852 RSUs to Kevin Wilson, the Chief Accounting Officer and 16,665 to the three independent directors of the Company, 5,555 to Gordon Scott Paterson, 5,555 to Jonathan de Vos, and 5,555 to Jay Samit. The RSUs have no exercise price and expire in ten years. They vest 33.33% within one year of the grant date and 33.33% yearly thereafter. The Company revalued the RSUs based on the market price of one Subordinate Voting Share on the revaluation date. The Company recognized $135,888 as share-based payment for RSUs in the year ended March 31, 2025.

On December 23, 2023, the Company granted 16,278 stock options to Kevin Wilson, the Chief Accounting Officer and 1,852 stock options to James Hendrickson, its Chief Operating Officer with an exercise price of CAD$36.45 ($22.57), expiring in five years, where 16,278 vested on the grant date and 1,852 will vest 25% within one year of the grant date, and 6.25% every subsequent quarter. The stock options were fair valued at $374,011, of which $9,913 is recognized in the year ended March 31, 2025, using the Black-Scholes option pricing model.

On March 31, 2025, the remaining 6,172 RSUs granted to Gordon Scott Paterson, a director of the Company, in the year ended March 31, 2023, were valued based on the market price of one Subordinate Voting Share on the revaluation date, of which $12,078 is derecognized in the year ended March 31, 2025.

***Critical Accounting Estimates***

● Equipment – The Company reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected remaining useful life of the assets. Uncertainties in these estimates relate to technical obsolescence that may change the utilization of equipment.

● Recoverability of accounts receivable, contracts assets, and unbilled revenues, and allowance for credit loss – The Company provides an allowance for expected credit losses based on an assessment of the recoverability of accounts receivable. Allowances are applied to accounts receivable at initial recognition based on the probability of default. Management analyzes its debts, customer concentrations, customer creditworthiness, current economic trends, and changes in customer payment terms when making a judgment to evaluate the adequacy of the allowance for expected credit losses. Where the expectation is different from the original estimate, such difference will impact the carrying value of accounts receivable.

● Functional currency – The determination of the functional currency of each entity within the Company requires management judgment in determining the currency that mainly influences the sale price of services and costs of providing services.

● Revenue recognition – When the Company enters into an agreement for software development which is longer in nature (longer than one year), the Company records a contract asset which is representative of receivables from the agreements not yet billed to the customer. Significant judgment is made to determine the performance obligations and whether each performance obligation is satisfied at a point in time or over the term of the contracts.

● Going concern – The assessment of the Company's ability to continue as a going concern. The determination that the Company will be able to continue as a going concern is subject to critical judgments of management with respect to assumptions surrounding the short and long-term operating budget and financing activities. Should these judgments prove to be inaccurate, management's continued use of the going concern assumption may be inappropriate.

***Financial Instruments***

 

As of March 31, 2025, the Company's financial instruments consist of cash and restricted cash, accounts receivable, accounts payable and accrued liabilities, restricted share unit liability, provision for legal claim, convertible debenture, and loans payable.

In accordance with ASC 820, Fair Value Measurement, the Company categorizes financial assets and liabilities measured at fair value into a three-level hierarchy based on the inputs used in the valuation techniques. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3).

The levels of the fair value hierarchy are defined as follows:

● Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

● Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active or inactive markets.

● Level 3 – Unobservable inputs for the asset or liability, which are used to measure fair value to the extent that observable inputs are not available, and which are significant to the overall fair value measurement.

There were no transfers between the levels of the fair value hierarchy during the year.

---

| | | | | |
|:---|:---|:---|:---|:---|
| *As of March 31, 2025* | *Level 1* | *Level 2* | *Level 3* | *Total* |
| Assets: |  |  |  |  |
| Cash and restricted cash | $4816906 | $- | $- | $4816906 |
| Due from related parties | $68080 | $- | $- | $68080 |
| Liabilities: |  |  |  |  |
| Accounts payable | $2036916 | $- | $- | $2036916 |
| Accrued liabilities | $41736 | $- | $- | $41736 |
| Provision for legal claim | $8948085 | $- | $- | $8948085 |
| Restricted share unit liability | $- | $3911823 | $- | $3911823 |
| Loans payable | $139039 | $- | $- | $139039 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| *As of March 31, 2024* | *Level 1* | *Level 2* | *Level 3* | *Total* |
| Assets: |  |  |  |  |
| Cash | $892727 | $- | $- | $892727 |
| Accounts receivable | $100000 | $- | $- | $100000 |
| Due from related parties | $64936 | $- | $- | $64936 |
| Liabilities: |  |  |  |  |
| Accounts payable | $2782502 | $- | $- | $2782502 |
| Accrued liabilities | $82500 | $- | $- | $82500 |
| Promissory notes | $2000000 | $- | $- | $2000000 |
| Provision for legal claim | $9921298 | $- | $- | $9921298 |
| Restricted share unit liability | $- | $576214 | $- | $576214 |
| Loans payable | $140904 | $- | $- | $140904 |

---

Credit risk is the risk of loss associated with a counterparty's inability to fulfill its payment obligations. The financial instrument that potentially subjects the Company to concentrations of credit risk consists principally of cash, accounts receivable, and due from related parties. To minimize the credit risk, the Company places its cash with large financial institutions.

Amounts due from related parties of $68,080 as of March 31, 2025 (March 31, 2024 - $64,934) represent receivables from an unsecured loan to a key member of the management team. The loan has an annual interest rate of 5% and requires principal and interest to be paid in full by May 1, 2033 (See Note 9 to the financial statements included elsewhere in this Annual Report in Form 10-K).

As of March 31, 2025, management assessed that there is no need to provide a credit loss allowance.

***Liquidity risk***

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company has a planning and budgeting process in place to help determine the funds required to support the Company's normal operating requirements on an ongoing basis. The Company strives to ensure that there are sufficient funds to meet its short-term business requirements, taking into account its anticipated cash flows from operations, cash holdings, and anticipated future financing transactions.

Contractual cash flow requirements as of March 31, 2025, were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | *<1 year*<br> *$* | *1-2 years*<br> *$* | *2-5 years*<br> *$* | *>5 years*<br> *$* | *Total*<br> *$* |
| Accounts payable | 2036916 |  |  |  | 2036916 |
| Accrued liabilities | 41736 |  |  |  | 41736 |
| Loans payable | 7752 | 7752 | 23256 | 15067532 | 15106292 |
| Total | 2086404 | 7752 | 23256 | 15067532 | 17184944 |

---

As of March 31, 2025, the Company had a working capital deficit of $8.92 million (March 31, 2024 - $11.87 million).

***Foreign exchange risk***

Foreign exchange risk is the risk that the fair value or future cash flows will fluctuate due to changes in foreign exchange rates. The Company has financial assets denominated in Euros and Canadian dollars and is therefore exposed to exchange rate fluctuations. As of March 31, 2025, the Company had the equivalent of $223,534 (March 31, 2024 - $552,476) net financial liabilities denominated in Canadian dollars and $104,416 (March 31, 2024 - $117,648) in net financial assets denominated in Euros.

The foreign exchange risk exposure of the Company financial instruments as at March 31, 2025 is as below:

---

| | | |
|:---|:---|:---|
|  |  | *+/- 10% fluctuation* |
|  | *Currency* | *Increase/(decrease)* |
| Financial Instrument Type | *CAD$* | *$ impact* |
| Cash | 5445994 | 378823 |
| Tax receivable | 870173 | 60529 |
| Prepaid expenses | 408202 | 28395 |
| Accounts payable | (1362055) | (94745) |
| Accrued liabilities | (60000) | (4174) |
| Restricted share unit liability | (5623668) | (391182) |
|  | (321354) | (22354) |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | *+/- 10% fluctuation* |
|  | *Currency* |  | *Increase/(decrease)* |
| Financial Instrument Type | *EURO* | $ | *$ impact* |
| Restricted cash | 113701 |  | 12274 |
| Tax receivable | (352) |  | (38) |
| Accounts payable | (16622) |  | (1794) |
| Deferred Grant | (62615) |  | (6773) |
|  | 34111 |  | 3668 |

---

 ****

***Interest rate risk***

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The interest earned on cash balances approximate fair value rates, and the Company is not subject to significant risk due to fluctuating interest rates. As of March 31, 2025, the Company does not hold any liabilities that are subject to fluctuations in market interest rates.

***Price risk***

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or currency risk. The Company is not exposed to other price risk.

***Management's Responsibility for Financial Statements***

 

The information included in the consolidated financial statement and this MD&A is the responsibility of management, and their preparation requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amount of expenses during the reported period. Actual results could differ from those estimates.

**JOBS Act**

On April 5, 2012, the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") was enacted. Section 107 of the JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.

We have chosen to take advantage of the extended transition periods available to emerging growth companies under the JOBS Act for complying with new or revised accounting standards until those standards would otherwise apply to private companies provided under the JOBS Act. As a result, our financial statements may not be comparable to those of companies that comply with public company effective dates for complying with new or revised accounting standards.

Subject to certain conditions set forth in the JOBS Act, as an "emerging growth company," we intend to rely on certain of these exemptions, including, without limitation, (i) providing an auditor's attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002, as amended, and (ii) complying with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements, known as the auditor discussion and analysis. We will remain an "emerging growth company" until the earliest of (i) the last day of the fiscal year in which we have total annual gross revenues of $1.235 billion or more; (ii) the last day of our fiscal year following the fifth anniversary of the date of our initial public offering; (iii) the date on which we have issued more than $1 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under the rules of the SEC.

**ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**

The Company is not required to provide the information required by this Item as it is a "smaller reporting company," as defined in Rule 12b-2 of the Exchange Act.

**ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

**Verses AI Inc.**

**Consolidated Financial Statements** 

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page No.** |
| Consolidated Financial Statements |  |
| [Report of Independent Registered Public Accounting Firm](#F_001)(PCAOB ID: 2738) | F-2 |
| [Consolidated Balance Sheets as of March 31, 2025 and 2024](#F_002) | F-3 |
| [Consolidated Statements of Operations for the years ended March 31, 2025 and 2024](#F_003) | F-4 |
| [Consolidated Statements of Comprehensive Loss for the years ended March 31, 2025 and 2024](#F_004) | F-5 |
| [Consolidated Statements of Shareholders Deficiency for the years ended March 31, 2025 and 2024](#F_005) | F-6 |
| [Consolidated Statements of Cash Flows for the years ended March 31, 2025 and 2024](#F_006) | F-7 |
| [Notes to Consolidated Financial Statements](#af_002) | F-8 |

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Stockholders of Verses AI, Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Verses AI, Inc. and subsidiaries (the Company) as of March 31, 2025 and 2024 and the related consolidated statements of operations, comprehensive loss, shareholders' deficiency, and cash flows for each of the two years in the period ended March 31, 2025 and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of March 31, 2025 and 2024, and the results of its operations and its cash flows for each of the two years in the period ended March 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Going Concern**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has recurring net losses, a large accumulated deficit, and negative cash flows from operations which raises substantial doubt about its ability to continue as a going concern. Management's plans regarding those matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and the significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe our audits provide a reasonable basis for our opinion.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that were communicated, or required to be communicated, to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Going Concern

Due to the recurring net losses and negative cash flows from operations for the year, the Company evaluated the need for a going concern as listed in Note 1.

Auditing management's evaluation of a going concern can be a significant judgement given the fact that the Company uses management estimates on future revenues and expenses which are not able to be substantiated.

To evaluate the appropriateness of the going concern, we examined and evaluated the financial information along with management's plans to mitigate the going concern and management's disclosure on going concern.

/s/ M&K CPAS, PLLC

We have served as the Company's auditor since 2024

The Woodlands, Texas

June 30, 2025, except for Note 25, as to which the date is July 14, 2025

**VERSES AI INC.**

Consolidated Balance Sheets

*(Expressed in United States dollars)*

---

| | | | |
|:---|:---|:---|:---|
| **As of March 31,** | **Notes** | **2025** | **2024** |
| **ASSETS** |  |  |  |
| **CURRENT** |  |  |  |
| Cash and restricted cash | 3 | $4816906 | $892727 |
| Accounts receivable |  |  | 100000 |
| Deferred financing costs |  | 118546 | 80993 |
| Unbilled revenue | 4, 5 |  | 1252076 |
| Work in progress |  | 6654 |  |
| Tax receivable |  | 604912 | 374964 |
| Prepaid expenses | 14 | 636064 | 794351 |
|  |  | 6183082 | 3495111 |
| Due from related parties | 9, 17 | 68080 | 64936 |
| Equipment | 7, 15 | 125413 | 267259 |
| **TOTAL ASSETS** |  | $6376575 | $3827306 |
| **LIABILITIES** |  |  |  |
| **CURRENT** |  |  |  |
| Accounts payable | 9 | $2036916 | $2782502 |
| Accrued liabilities |  | 41736 | 82500 |
| Deferred grant | 3 | 67732 |  |
| Deferred revenue |  | 100000 |  |
| Promissory notes | 16 |  | 2000000 |
| Provision for legal claim | 22 | 8948085 | 9921298 |
| Restricted share unit liability | 8 | 3911823 | 576214 |
|  |  | 15106292 | 15362514 |
| Loans payable | 7 | 139039 | 140904 |
| **TOTAL LIABILITIES** |  | 15245331 | 15503418 |
| **SHAREHOLDERS' DEFICIENCY** |  |  |  |
| Class A Subordinate Voting Shares, without par value: unlimited authorized; 7,825,571 and 3,205,319 issued and outstanding, respectively | 11 | 105477150 | 62472187 |
| Class B Proportionate Voting Shares, without par value: unlimited authorized; Nil and 370,370 issued and outstanding, respectively | 11 |  |  |
| Additional paid-in capital | 8, 9, 12 | 15891737 | 13342560 |
| Accumulated other comprehensive loss |  | (675018) | (920958) |
| Deficit |  | (129562625) | (86569901) |
| **TOTAL SHAREHOLDERS' DEFICIENCY** |  | (8868756) | (11676112) |
| **TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIENCY** |  | $6376575 | $3827306 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**VERSES AI INC.**

Consolidated Statements of Operations

For the years ended March 31,

*(Expressed in United States dollars)*

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| **REVENUE** | $155000 | $1966731 |
| **COST OF REVENUE** | (631691) | (1699170) |
| **NET REVENUE** | (476691) | 267561 |
| **Operating expenses:** |  |  |
| Selling, general and administrative expenses | (41301237) | (40407718) |
| **OPERATING INCOME (EXPENSE)** | (41777928) | (40140157) |
| Other income/(expense), net | (1214796) | (11950989) |
| **LOSS BEFORE INCOME TAXES** | (42992724) | (52091146) |
| Income Taxes |  | (2513) |
| **NET LOSS** | **(42992724)** | **(52093659)** |
| **Loss Per Class A Subordinate Voting Shares - Basic and Diluted** | $**(5.49)** | $**(9.44)** |
| **Loss Per Class B Proportionate Voting Shares - Basic and Diluted** | $**Nil** | $**(22.50)** |
| **Class A Subordinate Voting Shares used in computing earnings per share - Basic and Diluted** | **7825570** | **3205324** |
| **Class B Proportionate Voting Shares used in computing earnings per share - Basic and Diluted** | **-** | **370370** |

---

The accompanying notes are an integral part of these consolidated financial statements.

**VERSES AI INC.**

Consolidated Statements of Comprehensive Loss

For the years ended March 31,

*(Expressed in United States dollars)*

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| **Net Loss** | (42992724) | (52093659) |
| Change in foreign currency translation | 245940 | (284431) |
| **NET COMPREHENSIVE LOSS** | $**(42746784)** | $**(52378090)** |

---

The accompanying notes are an integral part of these consolidated financial statements.

**VERSES AI INC.**

Consolidated Statements of Shareholders' Deficiency

For the years ended March 31, 2025 and 2024

*(Expressed in United States dollars)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Number of Class B Proportionate Voting Shares** | **Number of Class A Subordinate Voting Shares** | **Share Capital** | **Additional paid-in capital** | **Obligation to Issue Shares** | **Accumulated Other Comprehensive Loss** | **Deficit** | **Total Shareholders'**<br> **Deficiency** |
| **Balance, March 31, 2023** | **370370** | **2066887** | $**30264179** | $**5606507** | $**83456** | $**(636527)** | $**(34476242)** | $**841373** |
| Exercise of options and warrants |  | 516635 | 11042575 | (1119662) | (83456) |  |  | 9839457 |
| Issuance of Units for cash (net) |  | 182520 | 5898785 | 697807 |  |  |  | 6596592 |
| Conversion of convertible debentures (net) |  | 161950 | 5601372 |  |  |  |  | 5601372 |
| Shares issued for services |  | 1852 | 61049 |  |  |  |  | 61049 |
| Stock options granted |  |  |  | 6934678 |  |  |  | 6934678 |
| Modification of finders' warrants |  |  |  | 440604 |  |  |  | 440604 |
| Special warrants converted to shares (net) |  | 243068 | 8380426 | 782626 |  |  |  | 9163052 |
| Issuance of shares for settlement |  | 7407 | 198801 |  |  |  |  | 198801 |
| SAFE conversion to shares |  | 25000 | 1025000 |  |  |  |  | 1025000 |
| Foreign exchange difference |  |  |  |  |  | (284431) |  | (284431) |
| Net loss | - | - | - | - | - | - | (52093659) | (52093659) |
| **Balance, March 31, 2024** | **370370** | **3205319** | $**62472187** | $**13342560** | $**-** | $**(920958)** | $**(86569901)** | $**(11676112)** |
| Exercise of options and warrants |  | 174246 | 4039332 | (1075242) |  |  |  | 2964090 |
| Stock options granted |  |  |  | 2221908 |  |  |  | 2221908 |
| Conversion of Class B Proportionate Voting shares into Class A Subordinate Voting shares | (370370) | 2314815 |  |  |  |  |  |  |
| Shares issued for services |  | 1852 | 49714 |  |  |  |  | 49714 |
| Special warrants converted to shares (net) |  | 503704 | 7886149 | 239684 |  |  |  | 8125833 |
| Issuance of Units for cash (net) |  | 1013413 | 17791738 | 1162827 |  |  |  | 18954565 |
| Conversion of convertible debentures (net) |  | 510370 | 11126864 |  |  |  |  | 11126864 |
| RSU settlement |  | 101852 | 2111166 |  |  |  |  | 2111166 |
| Net loss | - | - | - | - | - | 245940 | (42992724) | (42746784) |
| **Balance, March 31, 2025** | **-** | **7825571** | $**105477150** | $**15891737** | $**-** | $**(675018)** | $**(129562625)** | $**(8868756)** |

---

The accompanying notes are an integral part of these consolidated financial statements.

**VERSES AI INC.**

Consolidated Statements of Cash Flows

For the years ended March 31, 2025 and 2024

*(Expressed in United States dollars)*

---

| | | |
|:---|:---|:---|
| **For the year ended** | **2025** | **2024** |
| Cash provided by (used in): |  |  |
| **OPERATING ACTIVITIES** |  |  |
| Net loss | $(42992724) | $(52093659) |
| **Adjustments to reconcile net losses to net cash used in operating activities:** |  |  |
| Depreciation | 172425 | 261747 |
| Interest due from related parties loan | (3144) |  |
| Provision for legal claim | (848213) | 9921298 |
| Provision for contract settlement | 1252076 |  |
| Provision for losses on related party transactions | 479808 | 1872334 |
| Accretion expense |  | 203918 |
| Interest expense | 1953499 | 348441 |
| Issuance of advisory Units and warrants for services | 49714 | 61049 |
| Share based payments | 7679205 | 7850119 |
| **Changes in operating assets and liabilities:** |  |  |
| Accounts receivable | 100000 | (65000) |
| Contract assets and unbilled revenue | (6654) | 98359 |
| Tax receivable | (229948) | (170149) |
| Prepaid expenses | 158287 | 648326 |
| Deferred financing costs | (37553) | (80993) |
| Legal claim payments | (125000) |  |
| Accounts payable and accrued liabilities | (792865) | 1615703 |
| Deferred revenue | 100000 | (65000) |
| **Net cash used in operating activities** | (33091087) | (29593507) |
| **INVESTING ACTIVITIES** |  |  |
| Due from related parties | (479808) | (1070582) |
| Investment in equipment | (30579) | (185155) |
| **Net cash used in investing activities** | (510387) | (1255737) |
| **FINANCING ACTIVITIES** |  |  |
| Deferred grant | 67732 |  |
| Repayments of loans | (2007106) | (7752) |
| Proceeds from issuance of promissory notes |  | 2000000 |
| Proceeds from issuance of equity instruments | 2951695 | 9839457 |
| Proceeds from issuance of Units | 29272271 | 17518269 |
| Private placement issuance costs | (2179478) | (1697576) |
| Proceeds from issuance of convertible debentures | 10000000 |  |
| Convertible debentures issuance costs | (446682) |  |
| Lease payments | - | (113978) |
| **Net cash provided by financing activities** | 37658432 | 27538420 |
| Foreign exchange effect on cash | (132779) | (193730) |
| Net change in cash during the year | 3924179 | (3504554) |
| **Cash, beginning of the year** | 892727 | 4397281 |
| **Cash, end of the year** | $4816906 | $892727 |

---

Supplemental cash flow information (Note 19).

The accompanying notes are an integral part of these consolidated financial statements.

**VERSES AI INC.**<br>Notes to the Consolidated Financial Statements<br>For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**1.** **NATURE OF BUSINESS AND GOING CONCERN**

Chromos Capital Corp. was incorporated under the Business Corporations Act (British Columbia) on November 19, 2020. On June 17, 2021, Chromos Capital Corp. changed its name to Verses Technologies Inc. On March 31, 2023, Verses Technologies Inc. changed its name to Verses AI Inc. ("VAI", "VERSES" or the "Company").

VERSES is a cognitive computing company specializing in next generation intelligence software systems. We are primarily focused on developing an intelligence-as-a-service smart software platform, Genius. Our business is based on the vision of the "Spatial Web" – an open, hyper-connected, context-aware, governance-based network of humans, machines and intelligent agents. Our ambition is to build tools that enable the Spatial Web and to become a leader in the transition from the information age to the intelligence age.

On June 28, 2022, the Subordinate Class A shares of the Company were listed and started trading on the NEO Exchange in Canada ("NEO") ("Listing") under the symbol "VERS".

On October 4, 2022, the Company announced that the Company's Class A shares have commenced trading on the OTCQX® Best Market, an over-the-counter public market in the United States, under the ticker symbol "VRSSF". VERSES will continue to trade on the NEO Exchange in Canada, as its primary listing.

On July 20, 2023, the Company was downgraded from the OTCQX and started trading on OTCQB® Venture Market under the same ticker symbol "VRSSF".

The Company's head office and registered and records office is located at 1111 West Hastings Street, 15th Floor, Vancouver, British Columbia, V6E 2J3, Canada.

For the year ended March 31, 2025, the Company incurred a net loss of $42,992,724 (2024 - $52,093,659) which was primarily funded by the issuance of Units, convertible debenture, special warrants, and exercises of options and warrants. As of March 31, 2025, the Company has an accumulated deficit of $129,562,625 (2024 - $86,569,901). The Company's ability to continue its operations and to realize its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs and working capital deficit.

The ability of the Company to raise additional sufficient capital to carry operations are conditional, in part, on the progress of its technology development and continued investor support. The material uncertainty of these items and conditions raise substantial doubt about the Company's ability to continue as a going concern. These consolidated financial statements do not give effect to any adjustments, which would be necessary should the Company be unable to raise additional capital to continue as a going concern. In such circumstances, the Company would be required to realize its assets and discharge its liabilities outside of the normal course of business, and the amounts realized could differ materially from those reflected in these consolidated financial statements.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

&nbsp;&nbsp;&nbsp;&nbsp;a) Basis
 of presentation

The consolidated financial statements include the accounts of VERSES AI Inc. and its wholly owned subsidiaries ("Subsidiaries") (collectively "VERSES" or the "Company") have been prepared in accordance with U.S generally accepted accounting principles ("GAAP") as defined by the Financial Accounting Standards Board (FASB).

&nbsp;&nbsp;&nbsp;&nbsp;b) Consolidation

These consolidated financial statements include the accounts of the Company and its wholly owned Subsidiaries. The results of the Subsidiaries will continue to be included in the consolidated financial statements of the Company until the date that the Company's control over the Subsidiaries ceases. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All intercompany transactions are eliminated on these consolidated financial statements.

Details of the Company's Subsidiaries at March 31, 2025 and March 31, 2024 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Place of Incorporation** | ***March 31, 2025***<br> ***Interest*** | ***March 31, 2024***<br> ***Interest*** |
| Verses Technologies USA, Inc. (formerly Verses Labs Inc.) ("VTU") | Wyoming, USA | 100% | 100% |
| Verses Operations Canada Inc. ("VOC") | British Columbia, CA | 100% | 100% |
| Verses Logistics Inc. ("VLOG") | Wyoming, USA | 100% | 100% |
| Verses Realities Inc. ("VRI") | Wyoming, USA | 100% | 100% |
| Verses Inc. ("VINC") | Wyoming, USA | 100% | 100% |
| Verses Health Inc. ("VHE") | Wyoming, USA | 100% | 100% |
| Verses Global BV ("VBV") | Netherlands | 100% | 100% |
| Verses Solutions Inc ("VSI") | Wyoming, USA | 100% | Nil |

---

&nbsp;&nbsp;&nbsp;&nbsp;c) Significant
 accounting estimates and judgments

The preparation of these consolidated financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of expenses during the reporting period. These consolidated financial statements include estimates that, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the consolidated financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions, and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual outcomes could differ from these estimates.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;c) Significant
 accounting estimates and judgments (continued)

 

Significant assumptions about the future that management has made and other sources of estimation uncertainty at the reporting date, which could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to the following:

 

*Critical accounting estimates*

● <u>Equipment</u> – The Company reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected remaining useful life of the assets. Uncertainties in these estimates relate to technical obsolescence that may change the utilization of equipment.

● <u>Recoverability of accounts receivable, contracts assets, and unbilled revenues, and allowance for credit loss</u> – The Company provides an allowance for expected credit losses based on an assessment of the recoverability of accounts receivable. Allowances are applied to accounts receivable at initial recognition based on the probability of default. Management analyzes its debts, customer concentrations, customer creditworthiness, current economic trends, and changes in customer payment terms when making a judgment to evaluate the adequacy of the allowance for expected credit losses. Where the expectation is different from the original estimate, such difference will impact the carrying value of accounts receivable.

 

● <u>Functional currency</u> – The determination of the functional currency of each entity within the Company requires management judgment in determining the currency that mainly influences the sale price of services and costs of providing services.

● <u>Revenue recognition</u> – When the Company enters into an agreement for software development which is longer in nature (longer than 1 year), the Company records a contract asset which is representative of receivables from the agreements not yet billed to the customer. Significant judgment is made to determine the performance obligations and whether each performance obligation is satisfied at a point in time or over the term of the contracts.

● <u>Going concern</u> – The assessment of the Company's ability to continue as a going concern. The determination that the Company will be able to continue as a going concern is subject to critical judgments of management with respect to assumptions surrounding the short and long-term operating budget and financing activities. Should these judgments prove to be inaccurate, management's continued use of the going concern assumption may be inappropriate.

&nbsp;&nbsp;&nbsp;&nbsp;d) Cash
 and cash equivalents

Cash include cash on hand, demand deposits with financial institutions, and other short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of change in value.

&nbsp;&nbsp;&nbsp;&nbsp;e) Foreign
 currency translation

The accompanying consolidated financial statements are presented in United States dollars ("$"), unless otherwise indicated.

The functional currency is the currency of the primary economic environment in which an entity operates and may differ from the currency in which the entity enters transactions. The functional currency of VAI and VOC is the Canadian dollar ("CAD") ("CAD$"). The functional currency of VTU, VLOG, VRI, VINC, VHE, and VSOL is the United States dollar ("USD") ("$"). The functional currency of VBV is the Euro ("€").

Transactions in currencies other than the functional currency are translated to the functional currency at exchange rates prevailing on the dates of the transactions. Monetary assets and liabilities that are denominated in currencies other than the functional currency are translated to the functional currency using the exchange rate prevailing on the date of the consolidated statement of financial position, while non-monetary assets and liabilities are translated at historical rates.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;e) Foreign
 currency translation (continued)

Exchange gains and losses arising from the translation of foreign currency-denominated transactions or balances are recorded as a component of profit or loss in the period in which they occur.

The results of operations and financial position of each subsidiary where the functional currency is different from the presentation currency are translated as follows: assets and liabilities for each consolidated statement of financial position presented are translated at the closing rate at the date of that consolidated statement of financial position, expenses are translated at the average exchange rate each month, all resulting exchange differences are recognized in accumulated other comprehensive income (loss).

&nbsp;&nbsp;&nbsp;&nbsp;f) Income
 taxes

<u>Income tax</u> on the profit or loss for the periods presented comprises current and deferred tax. Income tax is recognized in profit or loss, except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity.

<u>Current tax</u> expense is the expected tax payable on the taxable income for the year, calculated using tax rates enacted at year-end, adjusted for amendments to tax payable with regard to previous years.

<u>Deferred tax</u> is determined using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amounts of assets and liabilities, using tax rates enacted or substantively enacted at the financial position reporting date applicable to the period of expected realization or settlement.

<u>Deferred tax asset</u> is recognized only to the extent that it is more likely than not that future taxable profits will be available against which the asset can be utilized. Where appropriate, the Company records a valuation allowance with respect to a future tax benefit.

<u>Deferred income tax</u> is provided on temporary differences arising on investments in subsidiaries and associates except, in the case of subsidiaries, where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future.

&nbsp;&nbsp;&nbsp;&nbsp;g) Share
 capital

Equity instruments are contracts that give a residual interest in the net assets of the Company. Financial instruments issued by the Company are classified as equity only to the extent that they do not meet the definition of a financial asset or financial liability. The Company's Subordinate Voting Shares and share purchase warrants are classified as equity instruments. Incremental costs directly attributable to the issue of new shares or warrants are shown in equity as a deduction, net of tax, from the proceeds.

Proceeds from the exercise of warrants are recorded as share capital in the amount for which the warrant enabled the holder to purchase a share in the Company. Any previously recorded share-based payment included in the additional paid-in capital account is transferred to share capital upon the exercise of warrants. Share capital issued for non-monetary consideration is valued at the closing CBOE Canada (Canadian stock exchange) market price at the date of issuance. The proceeds from the issuance of Units are allocated between Subordinate Voting Shares and warrants using the relative fair value method. Under this approach, the total proceeds are allocated to each component based on their relative fair values at the time of the financing. The fair value of the Subordinate Voting Shares and the fair value of the warrants are determined independently, and the proceeds are then proportionally allocated to share capital and warrants reserve accordingly.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;g) Share
 capital (continued)

Upon expiration, any value attributed to warrants and stock options remains in the additional paid-in capital.

Amounts recorded to obligation to issue shares are from contracts that give rise to a commitment for the Company to issue shares such as subscriptions received in advance for a specific private placement and special warrants that convert into shares.

&nbsp;&nbsp;&nbsp;&nbsp;h) Share-based
 payments

The Company has an omnibus equity incentive plan for stock options, restricted share Units ("RSUs"), performance share Units ("PSUs"), and deferred share Units ("DSUs"), which are described in note 8. The Company grants equity-settled share-based awards to directors, officers, employees, and consultants.

Share-based payments to employees and others providing similar services are measured at the estimated fair value of the instruments issued on the grant date and expensed over the vesting periods. The fair value of equity-settled share options granted to employees is recognized as an expense over the vesting period with a corresponding increase in equity. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee, including directors of the Company.

Amounts recorded to additional paid-in capital represent the value of equity-based transactions other than share capital, and include stock options, warrants, and the equity component of convertible debt.

For share-based payment awards granted to employees, we estimate the fair value of stock options on the grant date using the Black-Scholes option-pricing model, applying standard assumptions for expected volatility, expected term, risk-free interest rate, and expected dividends. We use the "plain vanilla" model and compensation expense is recognized on a graded vesting basis over the vesting period of the award. The amount of expense recognized reflects the number of awards that are expected to vest. We revise our estimates of forfeitures, if necessary, in subsequent periods and recognize the cumulative effect of any changes in the current period.

The fair value of share-based payments to non-employees are based on the fair value of the goods or services received. If the Company cannot reliably estimate the fair value of the goods or services received, the Company measures their value, and the corresponding increase in equity, indirectly, by reference to the fair value of the equity instruments granted at the date the Company receives the goods or services.

&nbsp;&nbsp;&nbsp;&nbsp;i) Loss per share

Basic loss per share is computed by dividing net loss attributable to Subordinate Voting Shares shareholders by the number of Subordinate Voting Shares outstanding during the period. Diluted earnings per share is computed similar to basic loss per share, except that the number of shares outstanding is increased to include additional shares for the assumed exercise of stock options and warrants, if dilutive. The Company applies the treasury stock method in calculating diluted earnings per share, which assumes that outstanding stock options and warrants were exercised and that the proceeds from such exercises were used to acquire Subordinate Voting Shares at the average market price during the reporting periods. Diluted loss per share excludes all dilutive potential Subordinate Voting Shares, as their effect would be anti-dilutive.

For the year ended March 31, 2025, 2,095,224 (2024 - 878,061) warrants, 770,995 stock options (2024 - 542,454), and 685,373 (2024 - 24,075) RSUs were not included in the calculation of diluted earnings per share as their inclusion was anti-dilutive.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;j) Related
 party transactions

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources, services, or obligations between related parties.

&nbsp;&nbsp;&nbsp;&nbsp;k) Financial
 instruments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) Impairment of financial assets at amortized cost

The Company recognizes an allowance for credit losses on financial assets carried at amortized cost. The allowance is based on management's estimate of current expected credit losses (CECL) over the contractual term of the asset, considering historical experience, current conditions, and reasonable and supportable forecasts. The Company evaluates the allowance at each reporting date and records any necessary adjustments through earnings as a credit loss expense. Changes in expected credit losses, including both increases and reversals, are recognized in the income statement in the period in which they occur. The full lifetime expected credit loss is recorded upon initial recognition of the financial asset and reassessed regularly based on changes in credit risk and economic outlook.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) Derecognition

*Financial assets*

The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are recognized in profit or loss.

*Financial liabilities*

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire.

The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different. In this case, a new financial liability based on the modified terms is recognized at fair value.

&nbsp;&nbsp;&nbsp;&nbsp;l) Government
 assistance

Government assistance consists of grants received under the Horizon Europe program, administered under the authority of the European Commission.

In accordance with U.S. GAAP, the Company accounts for government grants by analogy to ASC 958-605 (Not-for-Profit Entities – Revenue Recognition), as there is no specific guidance for business entities. Under this approach, government assistance is recognized when the related conditions have been substantially met and receipt of the funds is reasonably assured.

The grant is intended to compensate for specific operating expenses, the assistance is recognized as other income on a systematic basis in the same period in which the related expenses are incurred.

&nbsp;&nbsp;&nbsp;&nbsp;m) Research
 and development

The Company incurs costs on activities that relate to research and development of new and existing products. The Company expenses all research and development costs as incurred. Development costs of the Company's products are subject to capitalization beginning when a product's technological feasibility has been established and ending when a product is available for general release to customers.

&nbsp;&nbsp;&nbsp;&nbsp;n) Revenue
 recognition

The Company's revenue is primarily derived from licensing its applications to customers, providing customization to its core software and performing ongoing maintenance and consulting services.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;n) Revenue
 recognition (continued)

The Company recognizes revenue in accordance with ASC 606, "Revenue From Contracts With Customers," which follows a five-step model to assess each contract of a contract with a customer: (i) identify the legally binding contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price, and (v) determine whether revenue will be recognized at a point in time or over time. Revenue is recognized when a performance obligation is satisfied and the customer obtains control of promised goods and services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods and services.

The Company's performance obligations are satisfied over time or at a point in time depending on the transfer of control to the customer.

**Software arrangements**

Revenue from software arrangements that provide the Company's customers with the right to use the software without any significant development or integration work is recognized at the time of delivery. Revenue from fixed-price software arrangements and software customization contracts that require significant production, modification, or customization of software is recognized over time using the cost input method as the services are rendered from time and materials contracts. If cost input method is not used, the Company recognizes the module customization revenue upon final installation of the modules and acceptance by the customers.

Revenue from Software as a service ("SaaS") arrangements provide the Company's customers with the right to access a cloud-based environment that the Company provides and manages and the right to receive support and to use the software; however, the customer does not have the right to take possession of the software. Revenue from SaaS arrangements are generally recognized ratably over the contract term, using the time elapsed output method, commencing on the date an executed contract exists and the customer has the right-to-use and access to the software. Substantially, all of the Company's subscription service arrangements are non-cancellable and do not contain refund-type provisions.

**Contract balances**

The timing of revenue recognition, billing, and cash collections results in accounts receivable, contract assets, unbilled revenue, and deferred revenue on the consolidated statement of financial position.

Unbilled revenues are recognized when revenue is recognized in excess of billings or when the Company has a right to consideration and that right is conditional to something other than the passage of time. Contract assets are subsequently transferred to accounts receivable when the right to payment becomes unconditional.

&nbsp;&nbsp;&nbsp;&nbsp;o) Deferred
 revenue

Deferred revenue is recognized when payments received from customers are in excess of revenue recognized. Deferred revenue is subsequently recognized in revenue when the Company satisfies its performance obligations. Contract assets and deferred revenue are reported in a net position on a contract-by-contract basis at the end of each reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;p) Cost
 of revenue

Cost of revenue includes expenses incurred for development of applications and consists of labour costs of technical staff, other direct costs, and hosting services, but excludes depreciation costs.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;q) Impairment
 of long-lived assets

The Company periodically assesses potential impairments of its long-lived assets in accordance with the provisions of ASC 360, Accounting for the Impairment or Disposal of Long-lived Assets.

An impairment review is performed whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable.

The Company groups its assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of the other assets and liabilities. The Company has determined that the lowest level for which identifiable cash flows are available is the operating segment level.

Factors considered by the Company include, but are not limited to, significant underperformance relative to historical or projected operating results; significant changes in the manner of use of the acquired assets or the strategy for the overall business; and significant negative industry or economic trends. When the carrying value of a long-lived asset may not be recoverable based upon the existence of one or more of the above indicators of impairment, the Company estimates the future undiscounted cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the expected future undiscounted cash flows and eventual disposition is less than the carrying amount of the asset, the Company recognizes an impairment loss. An impairment loss is reflected as the amount by which the carrying amount of the asset exceeds the fair value of the asset, based on the fair value if available, or discounted cash flows, if fair value is not available.

The Company assessed potential impairments of its long-lived assets as of March 31, 2025 and concluded that there was no impairment to be recorded during the year ended March 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;r) Equipment

Equipment is measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

Any gain or loss on disposal of an item of equipment is recognized in profit or loss.

Depreciation is calculated to write off the cost of items of equipment less their estimated residual values using the straight-line method over their estimated useful lives, and is generally recognized in profit or loss. The estimated useful lives of equipment is three years. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term.

Depreciation methods, useful lives, and residual values are reviewed at each reporting date and adjusted if appropriate.

**3.** **DEFERRED GRANT** 

The Company's subsidiary, VBV, entered into a grant agreement (alongside other beneficiaries) with the Horizon Europe, which is delegated under the European Commission, to provide technical expertise on artificial intelligence.

Under the grant agreement, VBV received $226,877 (€209,056) on July 24, 2024, upon the execution of the agreement. The funds under this agreement are to reimburse the Company for amounts spent on the project. The Company is required to submit their costs incurred related to the project and only approved expenses under the project are reimbursed.

Of the expenses incurred, $17,944 (2024 - $Nil) are outstanding in accounts payable and accrued liabilities, with $67,732 (2024 - $Nil) remaining in restricted cash. Grant income of $156,885 (2024 - $154,709) was recognized for the year ended March 31, 2025.

---

| | | |
|:---|:---|:---|
|  | March 31, 2025 | March 31, 2024 |
| Balance, beginning of the year | $- | $- |
| Grant received | 226877 | 154709 |
| Expenses on the project | (156885) | (154709) |
| Exchange difference | (2260) | - |
| Balance, end of the year | $67732 | $- |

---

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**4.** **REVENUE**

The Company recognized revenues from contracts with customers in accordance with the following timing under ASC 606 *Revenue from Contracts with Customers*.

---

| | | |
|:---|:---|:---|
|  | Year ended | Year ended |
|  | March 31, | March 31, |
|  | 2025 | 2024 |
| Recognized at a point in time <sup>(1)</sup> | $155000 | $218600 |
| Recognized over the duration of contracts <sup>(2)</sup> | - | 1748131 |
| Total | $155000 | $1966731 |

---

<sup>(1)</sup> Includes revenues from completed Proof of Concept contracts ("POCs") and software implementation services.

<sup>(2)</sup> Includes revenue from Software as a Service ("SaaS").

On August 14, 2024, the Company announced the existing SaaS contract with its customer was terminated by both parties. As a result, the Company has not recognized any revenues related to SaaS services in the current year, and has recorded a provision for the contract settlement for $1,252,076 (Note 5).

**5.** **UNBILLED REVENUE**

The Company's contract assets and unbilled revenues are summarized as follows:

---

| | |
|:---|:---|
|  | Unbilled revenue |
| Balance, March 31, 2023 | $1193945 |
| Additions | 1108131 |
| Invoiced | (1050000) |
| Costs recognized | - |
| Balance, March 31, 2024 | $1252076 |
| Additions |  |
| Provision for contract settlement (Note 4) | (1252076) |
| Balance, March 31, 2025 | $- |

---

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**6.** **COST OF REVENUE**

The Company's cost of revenue is summarized as follows:

---

| | | |
|:---|:---|:---|
|  | Year ended | Year ended |
|  | March 31, | March 31, |
|  | 2025 | 2024 |
| Cost of Revenue from POCs and software implementation | $145000 | $714458 |
| Cost of Revenue from SaaS |  | 984712 |
| Provision for estimated loss on contract | 486691 | - |
|  | $631691 | $1699170 |

---

Included in accrued liabilities is a provision of $486,691 related to the estimated loss under the Analog – VERSES Framework Agreement. The provision reflects management's best estimate of the expected loss as of the reporting date, based on currently available information. The Company will continue to monitor this obligation and adjust the provision as necessary if further information becomes available or conditions change.

**7.** **LOANS PAYABLE**

Loan activity consisted of the following:

---

| | | |
|:---|:---|:---|
| For the year ended | March 31, 2025 | March 31, 2024 |
| Balance, beginning of the year | $140904 | $143331 |
| Repayment | (7106) | (7752) |
| Interest expense | 5241 | 5325 |
| Balance, end of the year | $139039 | $140904 |

---

On June 5, 2020, the Company received a $142,400 loan from the U.S. Small Business Administration. The loan is secured by all tangible and intangible personal property of VTU, and bears interest of 3.75% per annum and requires monthly payments of $646 starting in June 2021 with a maturity of 30 years.

In the year ended March 31 2025, the Company incurred and additional interest expenses of $6,515 (March 31, 2024 - $nil) regarding the financing of the Directors and Officers insurance payment ("D&O").

In the year ended March 31 2025, the Company did not incur ay interest expenses (March 31, 2024 - $5,105) regarding the lease payments.

**8.** **SHARE BASED PAYMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;a) Stock
 Options

The Company has an Omnibus Equity Incentive Plan (the "Plan") available to employees, directors, officers, and consultants with grants under the Plan approved from time to time by the Board of Directors. Under the Plan, the Company is authorized to issue options to purchase an aggregate of up to 25% of the Company's issued and outstanding Subordinate Voting Shares. Each option can be exercised to acquire one Subordinate Voting Share of the Company. The exercise price for an option granted under the Plan may not be less than the market price at the date of grant.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**8.** **SHARE BASED PAYMENTS (continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;a) Stock
 Options (continued)

Options to purchase Subordinate Voting Shares have been granted to directors, employees, and consultants as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Expiry date | Weighted Average Remaining Contractual Life in Years | Exercise Price (CAD$) | *Exercise Price*<br> *(USD$ equivalent) <sup>(1)</sup>* | Outstanding |
| June 16, 2027 | 2.21 | 21.60 | 15.02 | 103703 |
| September 16, 2027 | 2.46 | 27.00 | 18.78 | 19072 |
| April 28, 2028 | 3.08 | 44.55 | 30.99 | 3703 |
| December 15, 2028 | 3.71 | 32.91 | 22.89 | 352615 |
| December 23, 2028 | 3.73 | 30.51 | 21.22 | 136290 |
| April 15, 2029 | 4.04 | 30.78 | 21.41 | 9071 |
| July 3, 2029 | 4.26 | 29.01 | 20.18 | 146430 |
|  | 3.59 | 30.09 | 20.93 | 770884 |

---

<sup>(1)</sup> Converted at balance sheet rate.

A summary of the Company's stock options as at March 31, 2025, and changes for the years then ended is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | Number of stock options | Weighted Average Exercise Price (CAD$) | *Weighted Average*<br> *Exercise Price*<br> *(USD$ equivalent) <sup>(1)</sup>* |
| Outstanding, March 31, 2023 | 258516 | 21.68 | 15.08 |
| Granted | 370365 | 36.53 | 25.41 |
| Exercised | (86547) | 19.94 | 13.87 |
| Outstanding, March 31, 2024 | 542334 | $32.09 | $22.32 |
| Granted | 364099 | 27.39 | 19.05 |
| Exercised | (51235) | 23.22 | 16.15 |
| Cancelled | (84314) | 35.37 | 24.60 |
| Outstanding, March 31, 2025 | 770884 | 30.10 | 20.94 |
| Exercisable, March 31, 2025 | 511487 | $29.92 | $20.81 |

---

<sup>(1)</sup> Converted at balance sheet rate.

During the year ended March 31, 2025:

---

| |
|:---|
| 27,954 stock options at an average exercise price of CAD$33.24 ($23.12 at balance sheet rate) belonging to inactive employees were cancelled according to the Plan. The original fair value of these stock options of $274,005 was reclassified from additional paid-in capital to share based payments upon cancellation. |
| 56,360 options at an exercise price of CAD$36.45 ($25.35 at balance sheet rate) belonging to an employee were cancelled. The original fair value of these stock options of $1,142,294 was reclassified from additional paid-in capital to share based payments upon cancellation. |

---

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**8.** **SHARE BASED PAYMENTS (continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;a) Stock
 Options (continued)

<u>On December 23, 2024</u>, the Company granted 49,444 stock options to employees and independent contractors of the Company with an exercise price of CAD$30.51($21.22 at balance sheet rate), expiring in 5 years, with 25% vesting on the date that is one (1) year from the vesting start date and 6.25% every subsequent quarter. The stock options were fair valued at $792,184, of which $269,359 is recognized in the current year using the Black-Scholes option pricing model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | CAD$ | $ |
| Share price at grant date | $30.51 | $21.20 |
| Risk-free interest rate | 3.04% | 3.04% |
| Expected life | 5 years | 5 years |
| Expected volatility | 100% | 100% |
| Expected forfeitures | 0% | 0% |
| Expected dividends | Nil | Nil |
| Grant date fair value per option | $23.06 | $16.02 |

---

On December 23, 2024, the Company granted 59,259 stock options to strategic consultants of the Company with an exercise price of CAD$30.51 ($21.22 at balance sheet rate), expiring in 5 years, where 33.33% of the stock options vested on the grant date and 33.33% will vest every 6 months after the grant date. The Company also granted 27,593 stock options to strategic consultants of the Company with an exercise price of CAD$30.51 ($21.22 at balance sheet rate), expiring in 5 years, where 25% vests on the date that is one (1) year from the Vesting Start Date and 6.25% vests at the end of each full quarter thereafter.

The stock options were fair revalued at $1,141,535, of which $602,371 is recognized in the current year using the Black-Scholes option pricing model with the following assumptions:

---

| | | |
|:---|:---|:---|
|  | CAD$ | $ |
| Share price at revaluation date | $23.25 | $16.16 |
| Risk-free interest rate | 2.61% | 2.61% |
| Expected life | 5 years | 5 years |
| Expected volatility | 121.6% | 122% |
| Expected forfeitures | 0% | 0% |
| Expected dividends | Nil | Nil |
| Revaluation date fair value per option | $18.91 | $13.14 |

---

<u>On October 9, 2024</u>, the Company granted 56,361 stock options to an employee with an exercise price of CAD$14.31 ($9.95 at balance sheet rate), expiring in December 2028, where 100% vested on the grant date. The stock options were fair valued at $420,029, which is recognized in the current year using the Black-Scholes option pricing model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | CAD$ | $ |
| Share price at grant date | $14.31 | $10.45 |
| Risk-free interest rate | 3.07% | 3.07% |
| Expected life | 4.2 years | 4.2 years |
| Expected volatility | 100.0% | 100% |
| Expected forfeitures | 0% | 0% |
| Expected dividends | Nil | Nil |
| Grant date fair value per option | $10.20 | $7.45 |

---

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**8.** **SHARE BASED PAYMENTS (continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;a) Stock
 Options (continued)

<u>On July 3, 2024</u>, the Company granted 85,682 stock options to employees and independent contractors of the Company with a weighted average exercise price of CAD$29.10 ($20.24 at balance sheet rate), expiring in 5 years, with 25% vesting on the date that is one (1) year from the vesting start date and 6.25% every subsequent quarter. The stock options were fair valued at $1,376,157, of which $629,973 is recognized in the current year using the Black-Scholes option pricing model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | CAD$ | $ |
| Share price at grant date | $28.89 | $21.19 |
| Risk-free interest rate | 3.57% | 3.57% |
| Expected life | 5 years | 5 years |
| Expected volatility | 100.0% | 100% |
| Expected forfeitures | 0% | 0% |
| Expected dividends | Nil | Nil |
| Weighted average grant date fair value per option | $21.87 | $16.04 |

---

<u>On July 3, 2024</u>, the Company granted 74,073 stock options to strategic consultants of the Company with an exercise price of CAD$28.89 ($20.10 at balance sheet rate), expiring in 5 years, where 33.33% stock options vested on the grant date and 33.33% will vest every 6 months after the grant date. The stock options were fair revalued at $870,657, of which $912,939 is recognized in the current year using the Black-Scholes option pricing model with the following assumptions:

---

| | | |
|:---|:---|:---|
|  | CAD$ | $ |
| Share price at revaluation date | $23.25 | $16.17 |
| Risk-free interest rate | 2.47% | 2.47% |
| Expected life | 5 years | 5 years |
| Expected volatility | 121.6% | 121.6% |
| Expected forfeitures | 0% | 0% |
| Expected dividends | Nil | Nil |
| Revaluation date fair value per option | $16.90 | $11.75 |

---

<u>On April 15, 2024</u>, the Company granted 4,260 stock options to employees and independent contractors of the Company with a weighted average exercise price of CAD$33.86 ($23.55 at balance sheet rate), expiring in 5 years, with 25% vesting on the date that is one (1) year from the vesting start date and 6.25% every subsequent quarter. The stock options were fair valued at $72,423, of which $34,349 is recognized in the current year using the Black-Scholes option pricing model with the following assumptions:

---

| | | |
|:---|:---|:---|
|  | CAD$ | $ |
| Share price at grant date | $30.78 | $22.36 |
| Risk-free interest rate | 3.77% | 3.77% |
| Expected life | 5 years | 5 years |
| Expected volatility | 100% | 100% |
| Expected forfeitures | 0% | 0% |
| Expected dividends | Nil | Nil |
| Grant date fair value per option | $23.13 | $16.81 |

---

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**8.** **SHARE BASED PAYMENTS (continued)** 

a) Stock
 Options (continued)

<u>On April 15, 2024</u>, the Company granted 7,427 stock options to strategic consultants with an average exercise price of CAD$30.80 ($21.42 at balance sheet rate) and expiration in 5 years. Of these, 1,859 vested on the grant date, 555 on May 1, 2024, and 555 at the beginning of every calendar month thereafter. The remaining 21 stock options will vest 33.33% every 6 months after the grant date.

For the year ended March 31, 2025, the Company recognized $93,938 as share-based payment for stock options granted in April 2024 for strategic consultants of the Company. The fair value of stock options is estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | CAD$ | $ |
| Share price at revaluation date | $23.25 | $16.17 |
| Risk-free interest rate | 2.47% | 2.47% |
| Expected life | 4.3 years | 4.3 years |
| Expected volatility | 121.6% | 121.6% |
| Expected forfeitures | 0% | 0% |
| Expected dividends | Nil | Nil |
| Revaluation date fair value per option | $17.54 | $12.20 |

---

<u>On December 15, 2023</u>, the Company granted 347,952 stock options to employees and strategic consultants of the Company with an exercise price of CAD$36.45 ($25.35 at balance sheet rate), expiring in 5 years, where 173,186 stock options are vested on the grant date, based on previous commitments, and 6.25% every subsequent quarter.

For the year ended March 31, 2025, the Company recognized $722,860 as share-based payment for stock options granted in December 2023 using the graded vesting method over the vesting period.

<u>On December 15, 2023</u>, the Company granted 18,716 stock options to strategic consultants with an exercise price of CAD$36.45 ($25.35 at balance sheet rate). The options expire in 5 years, and 33.33% vested on December 30, 2024, and 33.33% every 6 months thereafter.

For the year ended March 31, 2025, the Company derecognized $16,979 as share-based payment for stock options granted in December 2023. The fair value of stock options is estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | CAD$ | $ |
| Share price at revaluation date | $23.25 | $16.17 |
| Risk-free interest rate | 2.47% | 2.47% |
| Expected life | 3.7 years | 3.7 years |
| Expected volatility | 121.6% | 121.6% |
| Expected forfeitures | 0% | 0% |
| Expected dividends | Nil | Nil |
| Revaluation date fair value per option | $16.57 | $11.53 |

---

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**8.** **SHARE BASED PAYMENTS (continued)** 

a) Stock
 Options (continued)

<u>On April 28, 2023</u>, the Company granted 3,704 stock options to a strategic consultant with an exercise price of CAD$44.55 ($30.99 at balance sheet rate). The options expire in 5 years, with 1,852 vesting 6 months after the grant date and 1,852 vesting 12 months after the grant date.

For the year ended March 31, 2025, the Company derecognized $30,631 as share-based payment for stock options granted in April 2023 for strategic consultants of the Company. The fair value of stock options is estimated using the Black-Scholes option pricing model with the following assumptions:

---

| | | |
|:---|:---|:---|
|  | CAD$ | $ |
| Share price at revaluation date | $23.25 | $16.17 |
| Risk-free interest rate | 2.47% | 2.47% |
| Expected life | 3.1 years | 3.1 years |
| Expected volatility | 121.6% | 121.6% |
| Expected forfeitures | 0% | 0% |
| Expected dividends | Nil | Nil |
| Revaluation date fair value per option | $14.65 | $10.19 |

---

&nbsp;&nbsp;&nbsp;&nbsp;b) Restricted Shares Units

Included in the Plan, the Company may grant RSUs to employees, directors, officers, and consultants. The RSUs can be settled at the election of the holder for Subordinate Voting Shares, cash, or a combination of Subordinate Voting Shares and cash. The RSUs were determined to be a liability instrument, and the fair value will be recognized as an expense using the graded vesting method over the vesting period.

<u>At March 31, 2025,</u> the balance of 6,173 RSUs granted in the year ended March 31, 2023, were revalued based on the market price of one Subordinate Voting Share on the revaluation date, and the Company derecognized $163,211 as share-based payment for RSUs in the year.

<u>On March 04, 2025</u>, 80,247 of the RSUs granted in December 2024, were settled into Subordinate Voting Shares (Note 11).

<u>On February 25, 2025</u>, 9,259 of the RSUs granted in December 2024, were settled into Subordinate Voting Shares (Note 11).

<u>On December 27, 2024</u>, 12,346 of the RSUs granted in the year ended March 31, 2023, were settled into Subordinate Voting Shares (Note 11).

<u>On December 23, 2024</u>, the Company granted 296,296 RSUs to strategic consultants of the Company with no exercise price, expiry date of 10 years from the grant date, where 89,506 vested on the grant date, 46,297 will vest in July 2025, 46,297 will vest in July 2026, 1,850 will vest monthly for 48 months, 12,345 will vest 50% every 6 months after the grant date, 7,408 will vest 33.33% after 1 year of the grant date and 33,33% every year afterwards, and 92,593 will vest according to the completion of specific milestones.

For the year ended March 31, 2025, the Company revalued the RSUs granted on December 23, 2024 based on the market price of one Subordinate Voting Share on the revaluation date. The Company recognized $2,621,935 as share-based payment for RSUs in the year.

<u>On October 9, 2024</u>, the Company cancelled 5,926 RSUs belonging to an employee. The original fair value of these RSUs of $12,717 was reclassified from RSU liability to share based payments upon cancellation.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**8.** **SHARE BASED PAYMENTS (continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;b) Restricted Shares Units (continued)

<u>On September 13, 2024</u>, the Company granted 74,074 RSUs a director of the Company (Note 9), with no exercise price, expiry date of 10 years from the grant date, vesting 24,691 within one year of the grant date and 8.33% every three months afterwards.

For the year ended March 31, 2025, the Company revalued the RSUs granted on September 13, 2024 based on the market price of one Subordinate Voting Share on the revaluation date. The Company recognized $439,973 as share-based payment for RSUs in the year.

<u>On July 3, 2024</u>, the Company granted 359,817 RSUs to a strategic consultant (1,852), directors (16,668) (Note 9), and employees (341,297). The RSUs have no exercise price, expire 10 years from the grant date, and vest 33.33% within one year of the grant date and 33.33% every year thereafter.

For the year ended March 31, 2025, the Company revalued the RSUs granted on July 3, 2024 based on the market price of one Subordinate Voting Share on the revaluation date. The Company recognized $2,609,543 as share-based payment for RSUs in the year.

<u>On June 20, 2024</u>, the Company granted 37,037 RSUs to a strategic investor of the Company, with no exercise price, expiry date of 10 years from the grant date, vesting equal installments of 370 RSUs for every CAD$100,000 ($69,560 at balance sheet rate) in revenue derived by the Company from commercial agreements it enters into with affiliates of the strategic investor. No value was attributed to these RSUs, as the vesting is still uncertain.

<u>On April 15, 2024</u>, the Company granted 1,852 RSUs to a strategic consultant. The RSUs have no exercise price, expire 10 years from the grant date, and vest 100% on the grant date.

For the year ended March 31, 2025, the Company revalued the RSUs granted on April 15, 2024 based on the market price of one Subordinate Voting Share on the revaluation date. The Company recognized $29,948 as share-based payment for RSUs in the year.

<u>On November 15, 2023</u>, the Company granted 5,556 RSUs to a strategic consultant of the Company, with no exercise price, expiry date of 10 years from the grant date, vesting 33.33% on the grant date, 33.33% on December 28, 2023, and 33.33% on March 28, 2024.

For the year ended March 31, 2025, the Company revalued the RSUs granted on <u>November 15, 2023</u> based on the market price of one Subordinate Voting Share on the revaluation date. The Company derecognized $68,175 as share-based payment for RSUs in the year.

<u>During the year ended March 31, 2023</u>, 18,519 RSUs were granted to a director of the Company (Note 9). They have no exercise price, expire 10 years from the grant date, and vest 1/3 on the first anniversary of the Listing and 1/3 each subsequent anniversary thereafter (Note 8).

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**8.** **SHARE BASED PAYMENTS (continued)** 

&nbsp;&nbsp;&nbsp;&nbsp;b) Restricted Shares Units (continued)

A summary of the Company's restricted shares units as at March 31, 2025, and changes for the years then ended is as follows:

---

| | |
|:---|:---|
|  | Number of RSUs |
| Balance, March 31, 2023 | 18519 |
| Issued, November 15, 2023 | 5556 |
| Balance, March 31, 2024 | 24075 |
| Issued, April 15, 2024 | 1852 |
| Issued, June 20, 2024 | 37037 |
| Issued, July 3, 2024 | 359817 |
| Issued, September 13, 2024 | 74074 |
| Issued, December 23, 2024 | 296296 |
| Cancelled | (5926) |
| Converted | (101852) |
| Balance, March 31, 2025 | 685373 |
| Exercisable, March 31, 2025 | 7639 |

---

A reconciliation of share based payments is as follows:

SCHEDULE OF RECONCILIATION SHARE BASED PAYMENTS

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Share based payments** | Stock Options | RSUs | Modification of broker's warrants | Settlement agreement | Total |
| Previous year graded vesting | 473109 |  |  |  | 473109 |
| New grants Q1 2023 | 70925 |  |  |  | 70925 |
| New grants Q3 2023 | 6390644 | 127400 |  |  | 6518044 |
| Modification of broker's warrants |  |  | 440604 |  | 440604 |
| Revaluation RSUs |  | 148636 |  |  | 148636 |
| Settlement agreement | - | - | - | 198801 | 198801 |
| Balance, March 31, 2024 | $6934678 | $276036 | $440604 | $198801 | $7850119 |
| Previous years graded vesting | 675250 |  |  |  | 675250 |
| Previous years RSUs revaluation |  | (231386) |  |  | (231386) |
| New grants Q1 2024 | 128287 | 29948 |  |  | 158235 |
| New grants Q2 2024 | 1542912 | 3049516 |  |  | 4592428 |
| New grants Q3 2024 | 1291759 | 2621935 |  |  | 3913694 |
| Cancelled options / RSUs | (1416299) | (12717) | - | - | (1429016) |
| Balance, March 31, 2025 | $2221909 | $5457296 | $- | $- | $7679205 |

---

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**9.** **RELATED PARTY TRANSACTIONS AND BALANCES** 

The Company's related parties consist of the directors, executive officers and key management personnel, who have authority and responsibility for planning, directing, and controlling the Company's activity and companies controlled by them. Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources, services, or obligations between related parties.

Transactions are measured at the exchange amount, which is the amount agreed to by the parties.

Key management personnel include those with authority and responsibility for planning, directing, and controlling the company's activities. The Company has determined that key management personnel consist of executive and non-executive members of its Board of Directors and senior officers.

During the years ended March 31, 2025 and 2024, related party transactions were as follows:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Management fees | $146666 | $41067 |
| Management salaries and benefits included in personnel expenses | 1719195 | 1338762 |
| Share-based payments (Note 8) | 655145 | 720222 |
|  | $2521007 | $2100051 |

---

Included in accounts payable and accrued liabilities at March 31, 2025, were amounts totaling $105,799 (March 31, 2024 – $nil) due to James Hendrickson, the Chief Operating Officer ($83,500), Michael Blum, the Chairman ($20,000), and Kevin Wilson, the Chief Accounting Officer ($2,299).

Also included in the due from related parties is an unsecured loan of $68,080 (March 31, 2024 - $64,936) to a key member of the management team. The loan has an annual interest rate of 5% and requires principal and interest to be paid in full by May 1, 2033 (Note 22). No repayments were made in the year ended March 31, 2025.

<u>On December 23, 2024</u>, the Company granted 7,407 stock options to James Hendrickson, its Chief Operating Officer with an exercise price of CAD$30.51 ($21.22 at balance sheet rate), expiring in 5 years, where 25% will within one year of the grant date, and 6.25% every subsequent quarter. The stock options were fair valued at $118,679, of which $40,354 is recognized in the year ended March 31, 2025, using the Black-Scholes option pricing model (Note 8).

<u>On September 13, 2024</u>, the Company granted 74,074 RSUs to Michael Blum, a director of the Company with no exercise price, expiry date of 10 years from the grant date, vesting 24,691 within one year of the grant date and 8.33% every three months afterwards. For the year ended March 31, 2025, the Company revalued the RSUs based on the market price of one Subordinate Voting Share on the revaluation date. The Company recognized $439,973 as share-based payment for RSUs in the year (Note 8).

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**9.** **RELATED PARTY TRANSACTIONS AND BALANCES (continued)** 

<u>On July 3, 2024</u>, the Company granted 3,704 stock options to James Hendrickson, the Chief Operating Officer and 1,852 to Kevin Wilson, the Chief Accounting Officer. The Options have an exercise price of CAD$28.89 ($20.10 at balance sheet rate) and expire in 5 years. 25% of the options will vest within one year of the grant date and 6.25% every subsequent quarter. The stock options were fair valued at $89,355, of which $41,095 is recognized in the year ended March 31, 2025, using the Black-Scholes option pricing model (Note 8).

<u>On July 3, 2024</u>, the Company granted 1,852 RSUs to Kevin Wilson, the Chief Accounting Officer and 16,665 to the three independent directors of the Company, 5,555 to Gordon Scott Paterson, 5,555 to Jonathan de Vos, and 5,555 to Jay Samit. The RSUs have no exercise price and expire in 10 years. They vest 33.33% within one year of the grant date and 33.33% yearly thereafter. The Company revalued the RSUs based on the market price of one Subordinate Voting Share on the revaluation date. The Company recognized $122,299 as share-based payment for RSUs in the year ended March 31, 2025 (Note 8).

<u>On December 23, 2023</u>, the Company granted 16,278 stock options to Kevin Wilson, the Chief Accounting Officer and 1,852 stock options to James Hendrickson, its Chief Operating Officer with an exercise price of CAD$36.45 ($22.57 at balance sheet rate), expiring in 5 years, where 16,278 vested on the grant date and 1,852 will vest 25% within one year of the grant date, and 6.25% every subsequent quarter. The stock options were fair valued at $374,011, of which $9,913 is recognized in the year ended March 31, 2025, using the Black-Scholes option pricing model (Note 8).

On March 31, 2025, the remaining 6,172 RSUs granted to Gordon Scott Paterson, a director of the Company, in the <u>year ended March 31, 2023</u>, were valued based on the market price of one Subordinate Voting Share on the revaluation date, of which $12,078 is derecognized in the year ended March 31, 2025 (Note 8).

**10.** **COMMITMENTS**

The Company has an obligation to pay royalties to Cyberlab, LLC ("Cyberlab") (a company controlled by Dan Mapes, a director and officer). Cyberlab shall be entitled to receive a share of the gross revenue derived from the sales, licensing, and other commercial activities involving Spatial Domain Names, pursuant to the following schedule:

---

| |
|:---|
| Years 1 through 10 of the Spatial Domain Program: Cyberlab shall be entitled to retain Five Percent (5%) of all gross revenue from the Spatial Domain Program, while VERSES shall retain the remaining Ninety-Five Percent (95%) to allocate between itself and other Spatial Domain Program stakeholders (e.g., registries, registrars, etc.) as it sees fit. |
| Years 11 through 14 of the Spatial Domain Program: Cyberlab shall be entitled to retain Four Percent (4%) of all gross revenue from the Spatial Domain Program, while VERSES shall retain the remaining Ninety-Six Percent (96%). |
| Years 15 through 17 of the Spatial Domain Program: Cyberlab shall be entitled to retain Three Percent (3%) of all gross revenue from the Spatial Domain Program, while VERSES shall retain the remaining Ninety-Seven Percent (97%). |
| Years 18 and 19 of the Spatial Domain Program: Cyberlab shall be entitled to retain Two Percent (2%) of all gross revenue from the Spatial Domain Program, while VERSES shall retain the remaining Ninety-Eight Percent (98%). |
| Years 20 to 25 of the Spatial Domain Program: Cyberlab shall be entitled to retain One Percent (1%) of all gross revenue from the Spatial Domain Program, while VERSES shall retain the remaining Ninety-Nine Percent (99%). |

---

As of March 31, 2025, no amounts are payable under the royalty agreement.

The Company is obligated to grant stock options ("Options"), deferred share units ("DSU"), or restricted stock units ("RSU") to qualifying consultants and employees based on their respective contracts, to be determined at the grant date based on the market price of the Company's shares. As at March 31, 2025, the outstanding commitment balance is nil (March 31, 2024 – 320,069) to be granted as options, RSUs or DSUs.

The Company has entered into severance agreements with Gabriel Rene (Chief Executive Officer and Director), Dan Mapes (President Emeritus and Global Ambassador and Director), James Christodoulou, Chief Financial Officer), Donald Moody (General Counsel and Chief Legal Officer), Capm Petersen (Chief Innovation Officer), Steven Swanson (Chief Experience Officer), and Michael Wadden (Chief Commercial Officer). In the case of involuntary termination or a change in control, the executives are entitled to a monetary payment equal to 12 month's worth of base salary, continuation for 12 months of medical and dental insurance, and immediate, accelerated vesting of all stock options, equity, and related compensation.

The Company has entered into a severance agreement with Kevin Wilson, its Chief Accounting Officer. In the case of involuntary termination or a change in control, the Chief Accounting Officer is entitled to a monetary payment equal to 36 months of base salary, continuation for 36 months of medical and dental insurance, and immediate, accelerated vesting of all stock options, equity, and related compensation.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**11.** **SHARE CAPITAL** 

&nbsp;&nbsp;&nbsp;&nbsp;a) Authorized
 shares

Effective July 20, 2021, the Company amended its Articles to create an unlimited number of Class A Subordinate Voting Shares and unlimited number of Class B Proportionate Voting Shares. Each Subordinate Voting Share shall entitle the holder thereof to one vote. Each Class B share shall entitle the holder thereof to 6.25 votes and such proportionate dividends and liquidation rights. Each Class B share is convertible, at the holder's option, into 6.25 Subordinate Voting Shares.

On May 30, 2024, all Class B Proportionate Voting Shares (370,370) were converted into 2,314,815 Subordinate Voting Shares.

&nbsp;&nbsp;&nbsp;&nbsp;b) Issued

In the year ended March 31, 2025, the following equity instruments were exercised for gross proceeds of $2,951,695:

---

| | | | |
|:---|:---|:---|:---|
| Quantity | Description | *Exercise Price*<br> *(CAD$)* | *Exercise Price*<br> *(USD$ <br> equivalent) <sup>(1)</sup>* |
| 36248 | Warrants | 21.60 | 15.02 |
| 25555 | Warrants | 18.90 | 13.15 |
| 57041 | Warrants | 27.00 | 18.78 |
| 1389 | Warrants | 32.40 | 22.54 |
| 2778 | Warrants | 40.50 | 28.17 |
| 37037 | Stock Options | 21.60 | 15.02 |
| 12964 | Stock Options | 27.00 | 18.78 |
| 1234 | Stock Options | 28.89 | 20.10 |

---

<sup>(1)</sup> Converted at balance sheet rate.

The reclassification from additional paid-in capital from the exercises of warrants and stock options was $1,075,242.

<u>On March 9, 2025</u>, the Company converted 133,333 Special Warrants Units into 133,333 Subordinate Voting Shares and 66,667 warrants (Note 12).

<u>On March 4, 2025</u>, 80,247 of the RSUs granted in December, 2024 were settled into Subordinate Voting Shares with a value of $1,615,018 based on the share price and exchange rate on the settlement date.

<u>On February 25, 2025</u>, in connection with the conversion of the convertible debentures, the Company issued 510,370 Subordinate Voting Shares and 257,312 warrants.

<u>On February 25, 2025</u>, 9,259 of the RSUs granted in December, 2024 were settled into Subordinate Voting Shares with a value of $211,731 based on the share price and exchange rate on the settlement date.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**11. SHARE CAPITAL (continued)**

<u>On January 9, 2025</u>, the Company closed an offering by way of prospectus supplement (the "Offering"). Pursuant to the Offering, the Company issued 471,809 Units of the Company (the "Units") at a price of $29.55 (CAD$42.39) per Unit for gross proceeds of approximately $13,947,001 (CAD$20,000,000). Each Unit is comprised of one Class A Subordinate Voting Share of the Company (a "Share") and one-half of one Share purchase warrant (each whole Share purchase warrant, a "Warrant"). Each Warrant shall entitle the holder to purchase one Share of the Company (a "Warrant Share") at an exercise price of CAD$52.92 ($36.81 at balance sheet rate) per Warrant Share at any time until January 9, 2028, subject to adjustment in certain events. The Offering was completed pursuant to an agency agreement dated January 9, 2025 between the Company and A.G.P. Canada Investments ULC ("A.G.P. Canada").

In connection with the Offering, the Company paid the A.G.P. Canada a cash commission equal to 8% of the gross proceeds of the Offering and issued to the A.G.P. Canada or such selling agents 26,420 compensation warrants as is equal to an aggregate of 8% of the number of Units sold pursuant to the Offering (the "Compensation Warrants"). Each Compensation Warrant is exercisable into a Unit at an exercise price of CAD$42.39 ($29.49 at balance sheet rate) per Unit until January 9, 2028. The cash commission and the number of Compensation Warrants was reduced to 2.0% in respect to the portion of aggregate gross proceeds of the Offering attributable to subscribers identified by the Company.

<u>On December 27, 2024</u>, 12,346 of the RSUs granted in the year ended March 31, 2023 were settled into Subordinate Voting Shares with a value of $284,417 based on the share price and exchange rate on the settlement date.

<u>In November and December 2024</u>, the Company closed the 3 additional tranches of the LIFE offering of 310,122 Units (the "Units") of the Company, for gross proceeds of $3,004,340 (the "LIFE Offering").

Each Unit was sold at a price of $9.69 (CAD$13.50) and consists of one Class A Subordinate Voting share of the Company (a "Share") and one-half of one share purchase warrant. Each Warrant will entitle the holder thereof to acquire one Share at an exercise price of CAD$18.90 ($13.15 at balance sheet rate) per Share, subject to adjustment in certain circumstances, for a period of 36 months from the closing date.

In connection with the Offering, the Company: (i) paid to certain finders and advisors an aggregate cash commission of $174,113; (ii) issued to certain finders and advisors an aggregate of 13,615 compensation warrants (the "Compensation Warrants"), and (iii) incurred in legal fees of $63,347. Each Compensation Warrant will be exercisable into one Unit at the Offering Price for a period of 36 months following the closing date into one unit at a price of CAD$13.50 ($9.39 at balance sheet rate).

<u>On September 26, 2024</u>, the Company closed the first tranche offering of 231,480 Units (the "Units") of the Company, for gross proceeds of $3,686,000 (the "LIFE Offering").

Each Unit was sold at a price of $15.93 (CAD$21.60) and of one Class A Subordinate Voting share of the Company (a "Share") and one-half of one Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one Share (each, a "Warrant Share") at an exercise price of CAD $32.40 ($22.54 at balance sheet rate) per Share, subject to adjustment in certain circumstances, for a period of 36 months from September 26, 2024.

In connection with the Offering, the Company: (i) paid to certain finders and advisors an aggregate cash commission of $278,772; (ii) issued to certain finders and advisors an aggregate of 10,562 compensation warrants (the "Compensation Warrants"), and (iii) incurred in legal fees of $41,257. Each Compensation Warrant will be exercisable into one Unit at the Offering Price for a period of 36 months following the Closing Date.

<u>In July and August 2024</u>, the Company converted 370,370 Special Warrants Units into 370,370 Subordinate Voting Shares and 185,181 warrants (Note 12).

<u>On April 9, 2024</u>, 1,852 shares were issued to a strategic consultant of the Company. The shares were fair valued at $49,714 considering the share price of $26.85 (CAD$36.45) stated in the consulting agreement.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**12.** **WARRANTS**

<u>On March 9, 2025</u>, the Company converted 133,333 Special Warrants Units into 133,333 Subordinate Voting Shares and 66,667 warrants.

<u>On February 2025</u>, the Company issued 257,312 warrants in connection with the conversion of the convertible debenture (Note 13). Each warrant is exercisable into one Subordinate Voting Share at a price of CAD$52.92 ($36.81 at balance sheet rate) per warrant.

<u>On January 9, 2025</u>, in connection with the Prospectus Supplement offering closed, the Company issued 235,904 warrants and 26,420 Compensation Warrants (Note 11).

The total fair value of the compensation warrants was $920,786, estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | CAD$ | $ |
| Share price at grant date | $46.17 | $32.20 |
| Risk-free interest rate | 2.88% | 2.88% |
| Expected life | 3 years | 3 years |
| Expected volatility | 121.6% | 121.6% |
| Expected dividends | Nil | Nil |
| Grant date fair value per warrant | $33.31 | $23.23 |

---

<u>On January 8, 2025</u>, 28 broker warrants were issued in connection with the exercise of broker Units.

<u>In November and December 2024</u>, in connection with the issuance of Life Offering, the Company issued 129,508 warrants and 13,615 Compensation Warrants (Note 11).

The total fair value of the broker warrants was $165,518, estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | CAD$ | $ |
| Weighted average share price at grant date | $12.35 | $8.87 |
| Weighted average risk-free interest rate | 3.01% | 3.01% |
| Expected life | 3 years | 3 years |
| Expected volatility | 100% | 100% |
| Expected dividends | Nil | Nil |
| Weighted average grant date fair value per warrant | $7.32 | $5.25 |

---

<u>On November 8, 2024</u>, the Company closed a non-brokered private placement of special warrants ("Special Warrants") for gross proceeds of up to $1,251,000 (CAD$1,800,000) through the sale of 133,333 Special Warrants at a price of $9.39 (CAD$13.50) per Special Warrant.

Each Special Warrant shall convert into one Unit of the Company (a "Unit") at no additional cost four months and a day after date of issuance of the Special Warrants.

Each Unit is comprised of one Subordinate Voting Share (a "Unit Share"), and one-half of one Class A Subordinate Voting Share purchase warrant (each full warrant, a "Unit Warrant"). Each Unit Warrant shall be exercisable into one Subordinate Voting Share (a "Unit Warrant Share") at a price of CAD$18.90 ($13.15 at balance sheet rate) per Unit Warrant Share for a period of three (3) years from the date of issue of the Unit Warrants.

In connection with the issuance of the Special Warrant, the Company issued 6,765 Compensation Warrants, which warrants are exercisable into one unit at CAD$13.50 ($9.39 at balance sheet rate) for a period of 36 months following the closing.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**12.** **WARRANTS (continued)** 

The total fair value of the broker warrants was $58,290, estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | CAD$ | $ |
| Weighted average share price at grant date | $13.23 | $9.49 |
| Weighted average risk-free interest rate | 3.05% | 3.05% |
| Expected life | 3 years | 3 years |
| Expected volatility | 100% | 100% |
| Expected dividends | Nil | Nil |
| Weighted average grant date fair value per warrant | $8.01 | $5.74 |

---

<u>In September 2024</u>, in connection with the issuance of Life Offering, the Company issued 115,739 warrants and 10,562 Compensation Warrants (Note 11).

The total fair value of the broker warrants was $134,813, estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | CAD$ | $ |
| Weighted average share price at grant date | $19.71 | $14.53 |
| Weighted average risk-free interest rate | 2.90% | 2.90% |
| Expected life | 3 years | 3 years |
| Expected volatility | 100% | 100% |
| Expected dividends | Nil | Nil |
| Weighted average grant date fair value per warrant | $11.54 | $8.51 |

---

<u>On April 18, 2024</u>, the Company announced a non-brokered private placement of special warrants ("Special Warrants") for gross proceeds of up to $7,306,000 (CAD$10,000,000) through the sale of 370,370 Special Warrants at a price of $19.74 (CAD$27.00) per Special Warrant.

Each Special Warrant shall convert into one Unit of the Company (a "Unit") at no additional cost upon the earlier of: (i) the Company obtaining a receipt from the applicable securities commission(s) in Canada for the final prospectus qualifying the distribution of the Units to be issued upon exercise or deemed exercise of the Special Warrants; and (ii) the date that is four months and a day after date of issuance of the Special Warrants.

Each Unit is comprised of one Subordinate Voting Share (a "Unit Share"), and one-half of one Class A Subordinate Voting Share purchase warrant (each full warrant, a "Unit Warrant"). Each Unit Warrant shall be exercisable into one Subordinate Voting Share (a "Unit Warrant Share") at a price of CAD$40.50 ($28.17 at balance sheet rate) per Unit Warrant Share for a period of two (2) years from the date of issue of the Unit Warrants.

The Company completed the issuance of 370,370 Units for gross proceeds of $7,306,000 (CAD$10,000,000) and paid fees to eligible finders consisting of: (i) $234,087 (CAD$320,404); and (ii) 11,720 finder warrants (the "Finder Warrants"). Each Finders Warrant will be exercisable into one unit (a "Finder Unit") at a price of CAD$27.00 ($18.78 at balance sheet rate) per Finder Unit until the date that is two (2) years from the date of issue of the Finder Warrants, which Finder Unit will be comprised of a Subordinate Voting Share and one-half of one Subordinate Voting Share purchase warrant (each, whole warrant, a "Finder Unit Warrant"). Each Finder Unit Warrant shall be exercisable into one Subordinate Voting Share (a "Finder Unit Warrant Share") at a price of CAD$40.50 ($28.17 at balance sheet rate) per Finder Unit Warrant Share for a period of two (2) years from the date of issue of the Finder Unit Warrants.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**12.** **WARRANTS (continued)** 

The total fair value of the broker warrants was $181,394, estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
|  | CAD$ | $ |
| Weighted average share price at grant date | $27.54 | $19.97 |
| Weighted average risk-free interest rate | 4.25% | 4.25% |
| Expected life | 2 years | 2 years |
| Expected volatility | 100% | 100% |
| Expected dividends | Nil | Nil |
| Weighted average grant date fair value per warrant | $14.12 | $10.32 |

---

In July and August 2024, the Company converted 370,370 Special Warrants Units into 370,370 Subordinate Voting Shares and 185,181 warrants (Note 11). Each warrant is exercisable at CAD$40.50 ($28.17 at balance sheet rate) within 2 years of the issuance date.

<u>On June 20, 2024</u>, in connection with the issuance of convertible debenture (Note 13) the Company issued 255,185 warrants.

Warrants outstanding as at March 31, 2025 are summarized below:

---

| | | | |
|:---|:---|:---|:---|
|  | Number of warrants | Weighted Average Exercise Price (CAD$) | *Exercise Price*<br> *(USD$ equivalent) <sup>(1)</sup>* |
| Balance, March 31, 2023 | 969941 | $26.73 | $18.59 |
| Issued | 338319 | 75.03 | 52.19 |
| Exercised | (430199) | 35.38 | 24.61 |
| Balance, March 31, 2024 | 878061 | $41.10 | $28.59 |
| Issued | 1340158 | 40.16 | 27.93 |
| Exercised | (122993) | 24.09 | 16.76 |
| Expired | (2) | 21.60 | 15.02 |
| Balance, March 31, 2025 | 2095224 | $41.50 | $28.86 |

---

<sup>(1)</sup> Converted at balance sheet rate.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**12.** **WARRANTS (continued)** 

As of March 31, 2025, the Company's outstanding share purchase warrants expire as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Expiry date | Weighted Average Remaining Contractual Life in Years | Exercise Price (CAD$) | *Exercise Price*<br> *(USD$ equivalent) <sup>(1)</sup>* | Outstanding |
| April 3, 2025 | 0.01 | 32.40 | 22.54 | 117 |
| April 20, 2025 | 0.05 | 32.40 | 22.54 | 194 |
| June 2, 2025 | 0.17 | 32.40 | 22.54 | 1149 |
| June 16, 2025 | 0.21 | 32.40 | 22.54 | 1017 |
| July 10, 2025 | 0.28 | 32.40 | 22.54 | 98 |
| August 15, 2025 | 0.38 | 32.40 | 22.54 | 8279 |
| August 15, 2025 | 0.38 | 21.60 | 15.02 | 42663 |
| August 15, 2025 <sup>(2)</sup> | 0.38 | 27.00 | 18.78 | 360098 |
| August 25, 2025 | 0.40 | 32.40 | 22.54 | 184 |
| April 15, 2026 | 1.04 | 10.80 | 7.51 | 46296 |
| April 17, 2026 | 1.05 | 27.00 | 18.78 | 3348 |
| April 29, 2026 | 1.08 | 27.00 | 18.78 | 6618 |
| May 16, 2026 | 1.13 | 27.00 | 18.78 | 1702 |
| July 6, 2026 | 1.27 | 55.35 | 38.50 | 29227 |
| July 6, 2026 <sup>(3)</sup> | 1.27 | 68.85 | 47.89 | 294694 |
| August 17, 2026 | 1.38 | 40.50 | 28.17 | 126853 |
| August 30, 2026 | 1.42 | 40.50 | 28.17 | 43062 |
| September 17, 2026 | 1.47 | 40.50 | 28.17 | 12494 |
| December 22, 2026 | 1.73 | 32.40 | 22.54 | 809 |
| January 8, 2027 | 1.78 | 40.50 | 28.17 | 28 |
| June 20, 2027 | 2.22 | 40.50 | 28.17 | 255185 |
| September 26, 2027 | 2.49 | 21.60 | 15.02 | 10562 |
| September 26, 2027 | 2.49 | 32.40 | 22.54 | 114354 |
| November 8, 2027 | 2.61 | 13.50 | 9.39 | 14444 |
| November 8, 2027 | 2.61 | 18.90 | 13.15 | 85699 |
| November 15, 2027 | 2.63 | 13.50 | 9.39 | 2229 |
| November 15, 2027 | 2.63 | 18.90 | 13.15 | 15290 |
| December 9, 2027 | 2.69 | 13.50 | 9.39 | 3707 |
| December 9, 2027 | 2.69 | 18.90 | 13.15 | 28519 |
| January 9, 2028 | 2.78 | 52.92 | 36.81 | 235906 |
| January 9, 2028 | 2.78 | 42.39 | 29.49 | 26420 |
| February 25, 2028 | 2.91 | 52.92 | 36.81 | 257312 |
| March 9, 2028 | 2.94 | 18.90 | 13.15 | 66667 |
|  | 1.83 | $41.50 | 28.86 | 2095224 |

---

Notes:

<sup>(1)</sup> Converted at balance sheet rate.

 

<sup>(2)</sup> Warrants expiring August 15, 2025:

Pre-Consolidation exercise terms: 1 warrant + CAD$1.00 ($0.6956 at balance sheet rate) = 1 Class A Subordinate Voting share.

Post-Consolidation Exercise Terms: 27 Warrants + CAD$27.00 ($18.78 at balance sheet rate) = 1 New Class A Subordinate Voting share.

For presentation purposes, the Company divided the total outstanding warrants by 27 to reflect 1 warrant + CAD$27.00 ($18.78 at balance sheet rate) = 1 New Class A Subordinate Voting share.

<sup>(3)</sup> Warrants expiring July 6, 2026

Pre-Consolidation Exercise Terms: 1 Warrant + CAD$2.55 ($1.77 at balance sheet rate) = 1 Class A Subordinate Voting share.

Post-Consolidation Exercise Terms: 27 Warrants + CAD$68.85 (47.89 at balance sheet rate) = 1 New Class A Subordinate Voting share.

For presentation purposes, the Company divided the total outstanding warrants by 27 to reflect 1 warrant + CAD$68.85 (47.89 at balance sheet rate) = 1 New Class A Subordinate Voting share.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**13.** **CONVERTIBLE DEBENTURE**

On June 20, 2024 the Company entered into a funding agreement with Group 42 Holding Ltd ("G42"), a leading UAE-based AI technology group (the "Strategic Investment").

Pursuant to the Strategic Investment, G42 has invested $10,000,000 via a private placement of unsecured convertible debenture units of VERSES (the "Units"). Each Unit will consist of: (i) CAD$1,000 ($696 at balance sheet rate) in principal amount of unsecured convertible debenture ("Convertible Debenture"); and (ii) 18 detachable share purchase warrants (the "Warrants") to purchase Subordinate Voting Shares. The Convertible Debenture shall bear interest at a rate of 10% per annum and mature on June 20, 2026 (the "Maturity Date").

The principal amount of the Convertible Debenture (the "Principal Amount"), together with all accrued interest (collectively, the "Convertible Amount"), shall be convertible, for no additional consideration, on the earliest to occur of: (A) the date on which the Company completes an equity financing, in one or more tranches, for aggregate gross proceeds of at least CAD$15,000,000 ($10,434,000 at balance sheet rate) at a price per Subordinate Voting Share of not less than CAD$27.00 ($18.78 at balance sheet rate) (an "Equity Financing"), or (B) the date on which G42 elects to convert the Convertible Debenture, or (C) the Maturity Date.

In the event of a conversion of the Convertible Debenture: (i) on the Maturity Date or at the election of G42, the Convertible Amount shall be converted into such number of Subordinate Voting Shares as is equal to the Convertible Amount divided by CAD$32.40 ($22.54 at balance sheet rate) per Share; and (ii) in connection with an Equity Financing, the Convertible Amount shall be converted into such number of Subordinate Voting Shares as is equal to the Convertible Amount divided by the issue price per Subordinate Voting Share sold pursuant to the Equity Financing, multiplied by 80%, provided that, in no event shall such conversion price be greater than CAD$32.40 ($22.54 at balance sheet rate).

If the conversion occurs prior to the Maturity Date, the Holder shall be entitled to all accrued and outstanding unpaid interest, plus an amount equal to the amount of interest that would have otherwise accrued on the Principal Amount to the Maturity Date but for such prior Conversion.

Each Warrant will be exercisable into one Subordinate Voting Share at a price of CAD$40.50 ($28.17 at balance sheet rate) per share until June 20, 2027 (the "Expiry Date"), subject to acceleration. If at any time prior to the Expiry Date, the volume-weighted average trading price of the Subordinate Voting Shares on CBOE Canada (or such other principal exchange or market where the Subordinate Voting Shares are then listed or quoted for trading) exceeds CAD$149.85 ($104.24 at balance sheet rate), as adjusted in accordance with the terms of the certificate representing the Warrants (the "Warrant Certificates"), for a period of 10 consecutive trading days, Verses may, at its option, accelerate the Expiry Date to the date that is 30 days following the written notice to G42, in the form of a press release or other form of notice permitted by the Warrant Certificates.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**13.** **CONVERTIBLE DEBENTURE (continued)** 

In connection with commercial agreements that may be entered into between VERSES and affiliates of G42, G42 will also receive 37,037 restricted stock units ("RSUs") of VERSES, each vested RSU to be settled through the issuance of one (1) Subordinate Voting Share. The RSUs will vest in installments of 370 RSUs for every CAD$100,000 ($69,560 at balance sheet rate) of revenue derived by VERSES from such commercial agreements.

On February 25, 2025, in connection with the prospectus supplement offering, the Convertible Debenture was converted into 510,370 Subordinate Voting Shares and 257,312 warrants exercisable at a price of CAD$52.92 ($36.81 at balance sheet rate) per share.

A reconciliation of convertible debenture is as follows:

---

| | | |
|:---|:---|:---|
|  | March 31, 2025 | March 31, 2024 |
| Balance, beginning of the year | $- | $4905334 |
| Issuance | 10000000 |  |
| Accretion expense |  | 203918 |
| Interest expense | 1941743 | 338011 |
| Issuance costs | (446682) |  |
| Foreign exchange effect on convertible debenture | (368197) | 154109 |
| Converted into Subordinate Voting Shares (1) | (11126864) | (5601372) |
| Balance, end of the year | $- | $- |

---

**14.** **PREPAID EXPENSES**

Prepaid expenses consisted of the following:

---

| | | |
|:---|:---|:---|
|  | March 31, 2025 | March 31, 2024 |
| Deposit | $10000 | $59535 |
| Retainer | 251983 | 126153 |
| Prepaid insurance | 106084 | 107663 |
| Subscriptions | 267997 | 501000 |
| Balance, end of the year | $636064 | $794351 |

---

**15.** **EQUIPMENT**

---

| | |
|:---|:---|
| Cost | Equipment |
| Balance, March 31, 2023 | 365017 |
| Additions | 185155 |
| Balance, March 31, 2024 | $550172 |
| Additions | 30579 |
| Balance, March 31, 2025 | $580751 |

---

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**15.** **EQUIPMENT (continued)** 

---

| | |
|:---|:---|
| Accumulated depreciation | Equipment |
| Balance, March 31, 2023 | 130177 |
| Additions | 152736 |
| Balance, March 31, 2024 | $282913 |
| Additions | 172425 |
| Balance, March 31, 2025 | $455338 |
| Net book value, March 31, 2024 | $267259 |
| Net book value, March 31, 2025 | $125413 |

---

**16.** **PROMISSORY NOTES**

On March 11, 2024, the Company's wholly owned subsidiary VTU, accepted an interest free loan in the amount of $2,000,000 from two arms-length investors for $1,000,000 each. The loan matures on the earlier of (i) March 10, 2025; or (ii) the date the Company completes a bona fide transaction or series of transactions with the principal purpose of raising capital, pursuant to which the Company issues and sells its securities to one or more bona fide third parties. On the maturity date, the Company may elect to repay loan by way of cash, or through the issuance of Subordinate Voting Shares in the capital of the Company at a per share price equal to the price of the securities issued in the Equity Financing, subject to the approval of CBOE Canada.

On April 18, 2024, the promissory notes were settled through the issuance of Special Warrants (Note 12).

**17.** **FINANCIAL INSTRUMENTS**

As of March 31, 2025, the Company's financial instruments consist of cash and restricted cash, accounts receivable, accounts payable and accrued liabilities, restricted share unit liability, provision for legal claim, convertible debenture, and loans payable.

In accordance with ASC 820, Fair Value Measurement, the Company categorizes financial assets and liabilities measured at fair value into a three-level hierarchy based on the inputs used in the valuation techniques. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3).

The levels of the fair value hierarchy are defined as follows:

● Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

● Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active or inactive markets.

● Level 3 – Unobservable inputs for the asset or liability, which are used to measure fair value to the extent that observable inputs are not available, and which are significant to the overall fair value measurement.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**17. FINANCIAL INSTRUMENTS (continued)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| As of March 31, 2025 | Level 1 | Level 2 | Level 3 | Total |
| Assets: |  |  |  |  |
| Cash and restricted cash | $4816906 | $- | $- | $4816906 |
| Due from related parties | $68080 | $- | $- | $68080 |
| Liabilities: |  |  |  |  |
| Accounts payable | $2036916 | $- | $- | $2036916 |
| Accrued liabilities | $41736 | $- | $- | $41736 |
| Provision for legal claim | $8948085 | $- | $- | $8948085 |
| Restricted share unit liability | $- | $3911823 | $- | $3911823 |
| Loans payable | $139039 | $- | $- | $139039 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| As of March 31, 2024 | Level 1 | Level 2 | Level 3 | Total |
| Assets: |  |  |  |  |
| Cash | $892727 | $- | $- | $892727 |
| Accounts receivable | $100000 | $- | $- | $100000 |
| Due from related parties | $64936 | $- | $- | $64936 |
| Liabilities: |  |  |  |  |
| Accounts payable | $2782502 | $- | $- | $2782502 |
| Accrued liabilities | $82500 | $- | $- | $82500 |
| Promissory notes | $2000000 | $- | $- | $2000000 |
| Provision for legal claim | $9921298 | $- | $- | $9921298 |
| Restricted share unit liability | $- | $576214 | $- | $576214 |
| Loans payable | $140904 | $- | $- | $140904 |

---

 

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

 

**17. FINANCIAL INSTRUMENTS (continued)**

*Credit risk*

Credit risk is the risk of loss associated with a counterparty's inability to fulfill its payment obligations. The financial instrument that potentially subjects the Company to concentrations of credit risk consists principally of cash, accounts receivable, and due from related parties. To minimize the credit risk, the Company places its cash with large financial institutions.

Amounts due from related parties of $68,080 as of March 31, 2025 (March 31, 2024 - $64,934) represent receivables from an unsecured loan to a key member of the management team. The loan has an annual interest rate of 5% and requires principal and interest to be paid in full by May 1, 2033 (Note 9).

As of March 31, 2025, management assessed that there is no need to provide a credit loss allowance.

*Liquidity risk*

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company has a planning and budgeting process in place to help determine the funds required to support the Company's operations on an ongoing basis. The Company strives to ensure that there are sufficient funds to meet its short-term business requirements, taking into account its anticipated cash flows from operations, cash holdings, and anticipated future financing transactions.

Contractual cash flow requirements as of March 31, 2025, were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | *<1 year*<br> *$* | *1-2 years*<br> *$* | *2-5 years*<br> *$* | *>5 years*<br> *$* | *Total*<br> *$* |
| Accounts payable | 2036916 |  |  |  | 2036916 |
| Accrued liabilities | 41736 |  |  |  | 41736 |
| Loans payable | 7752 | 7752 | 23256 | 15067532 | 15106292 |
| Total | 2086404 | 7752 | 23256 | 15067532 | 17184944 |

---

As of March 31, 2025, the Company had a working capital deficit of $8,923,210 (March 31, 2024 - $11,867,403).

*Foreign exchange risk*

Foreign exchange risk is the risk that the fair value or future cash flows will fluctuate due to changes in foreign exchange rates. The Company has financial assets denominated in Euros and Canadian dollars and is therefore exposed to exchange rate fluctuations. As of March 31, 2025, the Company had the equivalent of $223,534 (March 31, 2024 - $552,476) net financial liabilities denominated in Canadian dollars and $104,416 (March 31, 2024 - $117,648) in net financial assets denominated in Euros.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**17.** **FINANCIAL INSTRUMENTS (continued)** 

The foreign exchange risk exposure of the Company financial instruments as at March 31, 2025 is as below:

---

| | | |
|:---|:---|:---|
|  | | +/- 10% fluctuation |
|  |<br>Currency | Increase/(decrease) |
| Financial Instrument Type | CAD$ | $ impact |
| Cash | 5445994 | 378823 |
| Tax receivable | 870173 | 60529 |
| Prepaid expenses | 408202 | 28395 |
| Accounts payable | (1362055) | (94745) |
| Accrued liabilities | (60000) | (4174) |
| Restricted share unit liability | (5623668) | (391182) |
|  | (321354) | (22354) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | | +/- 10% fluctuation |
|  | Currency | | Increase/(decrease) |
| Financial Instrument Type | EURO | $ | $ impact |
| Restricted cash | 113701 |  | 12274 |
| Tax receivable | (352) |  | (38) |
| Accounts payable | (16622) |  | (1794) |
| Deferred Grant | (62615) |  | (6773) |
|  | 34111 |  | 3668 |

---

*Interest rate risk*

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The interest earned on cash balances approximate fair value rates, and the Company is not subject to significant risk due to fluctuating interest rates. As of March 31, 2025, the Company does not hold any liabilities that are subject to fluctuations in market interest rates.

*Price risk* 

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or currency risk. The Company is not exposed to other price risk.

**18.** **MANAGEMENT OF CAPITAL**

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to pursue the development of their technology. The Company considers the items in shareholders' equity as capital. There has been no change to what the Company considers capital from the prior year. The Company does not have any externally imposed capital requirements to which it is subject to.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may issue Subordinate Voting Shares, dispose of assets or adjust the amount of cash. There has been no change to how capital is managed from the prior year.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**19.** **SUPPLEMENTAL CASH FLOW INFORMATION**

The supplemental cash paid and received by the Company as at March 31, 2025 is as below:

---

| | | |
|:---|:---|:---|
| Non-cash Financing and Investing Activities | 2025 | 2024 |
| SAFE conversion to shares | $- | $1025000 |
| Fair value of finders and advisory warrants | $1402511 | $1488527 |

---

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Cash paid for interest | $5241 | $5325 |
| Cash received for interest | $119480 | $240393 |

---

**20.** **SEGMENT REPORTING**

Operating segments comprised of the components of an entity in which separate information is available for evaluation by the Company's chief operating decision maker, or group of decision makers, in determining how to allocate resources in evaluating performance.

The Company consists of a single reporting segment providing Software as a Service, which includes proof of concept and software implementation services.

The Company's chief operating decision maker ("CODM") is its Chief Executive Officer. The accounting policies of the services segment are as described in the summary of significant accounting policies. The CODM evaluates the performance of the services segment based on the Company's net income (loss) as reported in the Statements of Operations.

The CODM reviews performance based on gross profit, operating profit, and net earnings. Operating profit is reviewed to monitor the operating and administrative expenses of the Company. The Company does not have any operations or sources of revenue outside of the United States. Accordingly, the CODM considers the revenue, operating expenses, and other income (expenses) of our single operating segment as reported on the statement of operations and considers our current and total assets as recorded on the balance sheet. There are no additional expense or asset information that are supplemental to those disclosed in these consolidated financial statements that are regularly provided to the CODM.

**21.** **OTHER INCOME**

Other income consisted of the following:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Interest earned | $119480 | $240293 |
| R&D tax credits | 33933 |  |
| Credit card reward cash back | 60000 | - |
|  | $213413 | $240293 |

---

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**22.** **PROVISION FOR LEGAL CLAIM**

On July 13, 2022, David Thomson, a former independent contractor, filed a lawsuit against VTU, Cyberlab LLC, and two directors/officers of the Company in Los Angeles Superior Court. The claim alleged violations of various sections of the California Corporations code, breach of contract, breach of the implied covenant of good faith and fair dealing, and unjust enrichment. Plaintiff claimed as much as $5,000,000 in damages, subject to proof.

On September 1, 2022, the Company filed an answer denying any wrongdoing, and also made its own counterclaim against Mr. Thomson. The cross-claims against David Thomson included: (i) misappropriation of trade secrets; (ii) breach of contract; (iii) violation of the California Computer Data Access and Fraud Act ("CDAFA"); and (iv) violation of the Economic Espionage Act, along with three additional cross-claims (alleging violation of the Computer Fraud and Abuse Act, conversion, violation of the Stored Communications Act, respectively) that were subsequently dismissed by the Court. The Company, for its part, sought to recover both compensatory and punitive damages from Mr. Thomson, as well as restitution of any ill-gotten gains and an award of reasonable attorneys' fees.

The arbitration was conducted for a total of 13 days over a period from February 5 through April 3, 2024, via a single arbitrator at the American Arbitration Association. The CDAFA claim was dismissed by the Arbitrator, but the claims for trade secret misappropriation, breach of contract and unjust enrichment were allowed to move forward.

A final arbitration award was issued on May 17, 2024. It imposed liability against: (i) Verses Technologies USA, Inc. (VTU), a subsidiary of the Company, jointly and severally with Cyberlab, LLC (a company owned by the Company's president, Dan Mapes), in the amount of $6,307,258, inclusive of interest; and (ii) Cyberlab, VTU and its principals, Gabriel René and Daniel Mapes, jointly and severally, for damages in the amount of $1,900,000, interest of $709,973, costs of $64,303 and the fees of plaintiff's counsel totaling $920,231. To resolve their part of joint and several liability, Mr. René and Mr. Mapes are working toward satisfying the portion of the award that applies to them as individuals, including $1,666,000 proceeds from insurance. The remaining liability belongs to VTU, a subsidiary of the Company. Initial good faith payments of $1,791,000 have been made to the claimant. However, the likelihood of a favourable or unfavourable outcome, or an estimate of the amount or range of potential loss, which is isolated to VTU and Cyberlab, is not reasonably foreseeable at this time.

On January 24, 2025, Mr. Thompson filed a Petition to Confirm the Arbitration Award with the Los Angeles Superior Court. This is a necessary "first step" that must be undertaken before an arbitration award can be converted into an enforceable judgment. A hearing on the Petition is currently set for April 29, 2025. On May 8, 2025, the Petition was confirmed for the amounts listed below, including interest from the date of the Arbitration Award. Settlement discussions are ongoing.

---

| | |
|:---|:---|
| Arbitration award amount | 9921298 |
| Payments in the year | (1791000) |
| Interest | 817787 |
| Balance, end of the year | 8948085 |

---

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**23.** **PROVISION FOR LOSSES ON RELATED PARTY TRANSACTIONS**

Included in provision for losses on related party transactions in the year ended March 31, 2025 $479,808 (in the years ended March 31, 2024 - $1,872,334) are amounts due from companies controlled by key management personnel, Cyberlab LLC ("Cyberlab"), and the Spatial Web Foundation ("SWF"), an entity associated with the Company's founders.

The related expenses arose primarily from payments made by the Company on behalf of these related parties to third-party vendors.

<u>Cyberlab</u>

The expenses are mostly related to legal defense shared costs incurred in connection with the David Thomson litigation in which both the Company and Cyberlab were joint defendants. Under an internal arrangement, the Company paid for 100% of these legal costs, with the expectation of future reimbursement.

● Total payments made on behalf of Cyberlab amounted to $263,954 in the year ended March 31, 2025 (in the years ended March 31, 2024 – $954,150). The Company continues to pursue recovery of this amount through anticipated revenue that Cyberlab expects to generate from the commercialization of spatial domain royalties. The receivable from Cyberlab is unsecured, non-interest bearing, and its collection is subject to significant uncertainty.

SWF

The expenses are primarily related to professional services, consulting fees, and costs associated with the development and establishment of spatial web protocols and technical standards, including support for IEEE Standards Organization ("IEEE") working group initiatives.

● Total payments made on behalf of SWF totaled $215,854 as of March 31, 2025 (in the years ended March 31, 2024 – $918,184). The Company continues to pursue recovery of this amount through anticipated revenue that SWF expects the Company to receive as the preferred registrar of the special web domains. The receivable from SWF is unsecured, non-interest bearing, and its collection is subject to significant uncertainty.

No significant direct cash transfers were made to the individuals controlling these entities; rather, the amounts represent vendor payments made through the Company's normal accounts payable processes, with appropriate invoice review and approval by management.

Initially, it was anticipated that the amounts advanced would be repaid through revenues generated by the related parties from future commercial activities. However, management performed a credit risk assessment in accordance with the current expected credit loss. The assessment considered factors such as the financial condition of the related parties, the speculative nature of their anticipated revenues, the aging of the receivables, and the lack of enforceable repayment mechanisms.

Although these amounts are expected to be settled through future service agreements, management performed a credit assessment in accordance with the current expected credit loss ("CECL") model under ASC 326. Based on this assessment, management determined that there is significant uncertainty regarding the timing and collectability of these receivables. As of March 31, 2025, management concluded that full repayment is not probable within a reasonable timeframe.

The decision to establish a full allowance represents a change in accounting estimate as defined under ASC 250, Accounting Changes and Error Corrections. A change in accounting estimate results from new information or new developments and, in accordance with U.S. GAAP, is accounted for prospectively in the period of change and future periods, if applicable. This treatment does not require restatement of prior periods.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**24.** **INCOME TAXES**

As of March 31, 2025, the Company had estimated non-capital loss ("NCL") for US Federal income tax purposes of $72,000,000 (2024 - $45,682,000), NCL for Canadian income tax purposes of $25,418,000 (2024 - $13,696,000, and NCL for Netherlands income tax purposes of $520,000 (2024 - $416,000). These losses may be carried forward to reduce taxable income derived in future years and have expiry dates starting in 2040. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. Tax attributes are subject to review, and potential adjustment, by tax authorities.

The provision for Federal income tax consists of the following for the years ended March 31, 2025 and 2024:

SCHEDULE OF PROVISION FOR FEDERAL INCOME TAX

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Federal Income tax benefits attributed to : |  |  |
| Current operations: | $10299000 | $12583000 |
| Less: valuation allowance | (10299000) | (12580487) |
| Net provision for federal income taxes | $- | $2513 |

---

The cumulative tax effect at the expected rate of 27% (2024 - 27%) of significant items comprising our net deferred tax amount is as follows at March 31, 2025 and 2024:

SCHEDULE OF NET DEFERRED TAX

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Deferred tax asset attributable to: |  |  |
| Net operating loss carryover | $26444000 | $16145000 |
| Less: valuation allowance | (26444000) | (16145000) |
| Net deferred tax asset | $- | $- |

---

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $97,938,000 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.

**VERSES AI INC.**<br> Notes to the Consolidated Financial Statements<br> For the years ended March 31, 2025 and 2024<br> *(Expressed in United States dollars)*<br>

**25.** **SUBSEQUENT EVENTS**

On April 28, 2025, the Company announced the closing of securities offering in Canada under the base shelf prospectus (the "Offering"). Pursuant to the Offering, the Company raised gross proceeds of approximately US$7.9 million (CAD$11.0 million) by issuing 916,666 Units of the Company (the "Units") at a price of US$8.64 (CAD$12.00) per Unit.

Each Unit is comprised of one Class A Subordinate Voting Share of the Company (a "Share") and one-half of one Share purchase warrant (each whole Share purchase warrant, a "Warrant"). Each Warrant entitles the holder to purchase one Share of the Company (a "Warrant Share") at an exercise price of US$10.80 (CAD$15.00) per Warrant Share at any time until the date that is 36-month from the date of issuance, subject to adjustment in certain events.

The Offering was completed pursuant to an agency agreement dated April 23, 2025 between the Company, A.G.P. Canada Investments ULC, Clear Street LLC and A.G.P./Alliance Global Partners.

In connection with the Offering, the Company agreed to pay the agents up to a cash commission equal to 7% of the gross proceeds of the Offering and agreed to issue to the agents up to such number of compensation warrants as is equal to an aggregate of 3.5% of the number of Units sold pursuant to the Offering (the "Compensation Warrants"). Each Compensation Warrant is exercisable into a Share at an exercise price of US$8.64 (CAD$12.00) per Share until the date that is 36 months after the date of issuance. The cash commission and the number of Compensation Warrants was reduced to 2.0% in respect to the portion of aggregate gross proceeds of the Offering attributable to subscribers identified by the Company.

The Offering was completed in Canada pursuant to a prospectus supplement dated April 25, 2025 (the "Supplement") to the Company's base shelf prospectus receipted on September 26, 2024 (the "Base Shelf Prospectus").

On May 25, 2025, the Company granted 33,334 Option Shares and 33,333 RSUs to consultants of the Company.

---

| |
|:---|
| 33,334 Stock Options at an exercise price of CAD$12.57 ($8.74 at balance sheet rate), vesting on the grant date. |
| 33,333 RSUs, vesting on July 1, 2025. |

---

On June 20, 2025, the Company announced the consolidation of all of its issued and outstanding Class A Subordinate Voting Shares on the basis of one (1) post-consolidated Subordinate Voting Share for every three (3) pre-consolidated Subordinate Voting Shares held.

On July 11, 2025, the Company announced that the Company has closed its public offering of units (the "Offering"). Pursuant to the Offering, the Company raised gross proceeds of approximately C$9,573,758 (US$7,000,331) by issuing 1,007,764 units of the Company (the "Units") at a price of C$9.50 (US$6.946) per Unit.

Each Unit is comprised of one Class A Subordinate Voting Share of the Company (a "Share") and one-half of one Share purchase warrant (each whole Share purchase warrant, a "Warrant"). Each Warrant entitles the holder to purchase one Share of the Company (a "Warrant Share") at an exercise price of C$11.50 (US$8.409) per Warrant Share at any time until the date that is 36-month from the date of issuance, subject to adjustment in certain events.

The Offering was completed pursuant to an agency agreement dated July 9, 2025 between the Company, A.G.P. Canada Investments ULC and A.G.P./Alliance Global Partners,. Each of A.G.P. Canada Investments ULC and A.G.P./Alliance Global Partners acted as co-lead agents, on behalf of a syndicate of agents including Imperial Capital, LLC and Haywood Securities Inc.

In connection with the Offering, the Company agreed to pay the agents up to a cash commission equal to the greater of C$400,000 and 7% of the gross proceeds of the Offering, and further agreed to issue to the agents up to such number of compensation warrants as is equal to an aggregate of 3.5% of the number of Units sold pursuant to the Offering (the "Compensation Warrants"). Each Compensation Warrant is exercisable into a Share at an exercise price of C$11.50 (US$8.409) per Share until the date that is 36 months after the date of issuance. The cash commission and the number of Compensation Warrants was reduced to 2.0% in respect to the portion of aggregate gross proceeds of the Offering attributable to subscribers identified by the Company. In addition, the Company paid a cash fee of US$250,000 and issued 75,000 corporate finance fee warrants to a financial advisor, with such corporate finance fee warrants having identical terms to the Compensation Warrants.

**ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS AND FINANCIAL DISCLOSURE**

On December 10, 2024, Smythe LLP ("Smythe") resigned as the Company's independent registered public accounting firm as a result of a change in Smythe's policies to discontinue PCAOB audits. Smythe was appointed as auditor of the Company on February 15, 2023 and reported on the Company's financial statements for the fiscal years ended March 31, 2024 and 2023.

During the Company's two most recent fiscal years and subsequent interim period before the resignation of Smythe as certifying accountant, the reports on the Company's financial statements by Smythe for both years did not contain any adverse opinion or disclaimer of opinion, nor was either report qualified or modified as to audit scope, or accounting principles, except that the report contained an explanatory paragraph stating that there was significant doubt about the Company's ability to continue as a going concern; nor was there any disagreement between the Company and Smythe on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Smythe, would have caused Smythe to make reference to the subject matter of the disagreement in connection with its report issued in connection its audit of the Company's financial statement for those years. Furthermore, there were no reportable events (as described under Item 304(a)(1)(v)(A)-(D) of Regulation S-K) for the Company within the last two fiscal years nor subsequently up to the date of the termination of Smythe.

On December 10, 2024, the Company appointed M&K CPAS, PLLC ("M&K") as the Company's independent registered public accounting firm for the fiscal year ending March 31, 2025. During the two most recent fiscal years and the subsequent period through the appointment of M&K, the Company did not consult with M&K regarding any of the matters set forth in Item 304(a)(2)(i) or (ii) of Regulation S-K.

**ITEM 9A. CONTROLS AND PROCEDURES**

**Disclosure Controls and Procedures**

Our management, with the participation of our Principal Executive Officer and Principal Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of March 31, 2025, the end of the period covered by this Annual Report on Form 10-K. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost benefit relationship of possible controls and procedures. Based on such evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were not effective to ensure that the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in SEC's rules and forms and (ii) accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosures.

**Management's Report on Internal Control Over Financial Reporting**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the consolidated financial statements for external purposes in accordance with GAAP. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

As of March 31, 2025, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control Integrated Framework 2013. Based on this assessment, our management concluded that, as of March 31, 2025, our internal control over financial reporting was not effective based on the following material weaknesses:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Insufficient written policies and procedures to ensure the
correct application of accounting and financial reporting with respect to the current requirements of GAAP and SEC disclosure
requirements.

2. Due to the Company's size and nature, segregation of
all conflicting duties may not always be possible and may not be economically feasible.

3. Although the Company does have a written procedure for the
approval, identification and reporting of related-party transactions may be limited.

We are taking actions to remediate the material weakness described above by reviewing and updating our internal policies and human resources allocations.

This Report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Additionally, management's report was not subject to attestation by our registered public accounting firm pursuant to the exemption from Section 404(b) of the Sarbanes- Oxley Act of 2002 for non-accelerated filers.

**Changes in Internal Control Over Financial Reporting**

Other than as described above, there have been no changes in our internal control over financial reporting that occurred during our last fiscal quarter ended March 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**ITEM 9B. OTHER INFORMATION**

During our last fiscal quarter ended March 31, 2025, none of our directors or executive officers adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" as such terms are defined under Item 408 of Regulation S K.

**ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.**

Not applicable.

**PART III**

**ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE** 

The following table sets forth the name, age and positions of our executive officers and directors as of July 10, 2025.

---

| | | |
|:---|:---|:---|
| **NAME** | **AGE** | **POSITION** |
| Gabriel René | 51 | Chief Executive Officer and Director |
| Dan Mapes | 78 | President Emeritus and Global Ambassador and Director |
| James Hendrickson | 47 | President and Chief Operating Officer |
| James Christodoulou | 65 | Chief Financial Officer |
| Kevin Wilson | 67 | Chief Accounting Officer and Secretary |
| Hari Thiruvengada | 47 | Chief Technology Officer |
| Michael Blum | 49 | Chairman |
| Jonathan De Vos | 50 | Director |
| Gordan Scott Paterson | 61 | Director |

---

The business background and certain other information about our directors and executive officers are set forth below.

**Gabriel René, Chief Executive Officer and Director**

Gabriel René, the co-founder of the Company, has served as Chief Executive Officer of the Company since September 2018 and a director of the Company since July 2021. Mr. René is a technologist, entrepreneur, and author with a 25 year career in the technology, telecom and media industries specializing in emerging technologies such as augmented reality, virtual reality, AI, IoT and distributed computing technology and their applications for industrial, enterprise and consumer technology. He is the author of the #1 International bestseller "The Spatial Web - How Web 3.0 Connects Humans, Machines, and AI to Transform the World". Mr. René serves as the acting Executive Director of the Spatial Web Foundation, a non-profit organization developing standards for the ethical interoperability between AI, IoT, robotics and distributed computing technologies designed to power the Web 3.0 era and dedicated to the ethical, interoperable and equitable adoption of Spatial Web technologies across every major industry. We believe Mr. René is qualified to serve as a member of the board of directors of the Company because of his extensive experience in the technology sector, along with his in-depth knowledge of emerging technologies and their applications for use.

**Dan Mapes, President Emeritus and Global Ambassador and Director**

Dan Mapes, the co-founder of the Company, has served as President Emeritus and Director of Global Development since April 2025 and a member of the board of directors of the Company since July 2021. From July 2021 to April 2025, he served as President of the Company. For the past five years, Mr. Mapes has served as a founder and architect of the Spatial Web™, which is an open, hyper-connected, context-aware, governance-based network of humans, machines and AI. In 2017, Mr. Mapes co-founded the Silicon Valley Blockchain Society, and he currently serves as co-chairman of the Los Angeles Chapter. In addition, since May 2010, Mr. Mapes has also served as the founder and Chief Executive Officer of Cyberlab9.com - Global Deep Tech Lab ("Cyberlab 9"). Cyberlab 9 has a research focus on the Internet of Things blockchain, virtual reality and artificial intelligence. Mr. Mapes previously founded eCity Studios (computer gaming) which was sold to VSI Holdings, Deep Light 3D Displays which was sold to Korea Display Group and Digital Motors (Advanced Object Relational databases) which was sold to Arriba Software Corporation. Mr. Mapes received a Bachelor of Business Administration degree from the University of Cincinnati, and a Master of Business Administration degree from Thunderbird School of Global Management. We believe Mr. Mapes is qualified to serve as a member of the board of directors of the Company because of his extensive experience in the technology sector, along with his in-depth knowledge of emerging technologies and early-stage companies.

**James Christodoulou, Chief Financial Officer**

James Christodoulou has served as Chief Financial Officer of the Company since February 2025. From June 2024 to March 2025, Mr. Christodoulou served as Head of Capital Markets and Corporate Development at Exodus Movement, Inc., a multi-asset, self-custody, crypto currency wallet (NYSE: EXOD), and from June 2022 to March 2024, he served as Chief Financial Officer of Collectable, an early-stage private equity sponsored company that developed an innovative FINTECH business model that democratizes the ability to own high-end collectable art and memorabilia assets that were once only available to financial institutions, collectors, or high-net-worth individuals. From March 2021 to January 2023, Mr. Christodoulou served as Chief Financial Officer of Ryze Renewables, an independent renewable diesel refining company, and from August 2018 to April 2020, he served as President, Chief Operating Officer a director of Blink Charging (Nasdaq: BLNK), an owner, operator, provider, and manufacturer of electric vehicle charging equipment and networked electric vehicle charging services. Mr. Christodoulou's prior experiences include Chief Financial Officer of Galeon Navigation LLC, OceanFreight Inc. (Nasdaq: OCNF), EastWind Maritime, Inc. and General Maritime Corp., Inc. (NYSE: GMR); President of Angelmar Corp.; Chief Executive Officer and President of Industrial Shipping Enterprises Corp.; and Managing Director of Dahlman Rose & Co. Mr. Christodoulou attended Columbia Business School and received his Bachelor of Arts in psychology from Rutgers University.

**James Hendrickson, President and Chief Operating Officer**

James Hendrickson has served as the President of the Company since April 2025 and Chief Operating Officer of the Company since June 2024. In addition, he has served as President & General Manager of VERSES Logistics Inc. since January 2022, where he leads a team focused on launching VERSES' advanced AI products to enterprise customers across verticals such as supply chain, retail, IT services, transportation, and health care. Previously, he was Global Director of Strategic Partnerships and Alliances at Berkshire Grey from 2020 to 2022, a robotics startup where he led the partner strategy and helped with a Nasdaq listing in 2022. Prior to Berkshire Grey, he led new product development and marketing for a Honeywell business unit from 2018 to 2020. Mr. Hendrickson has more than 20 years of experience in sales, channel, marketing and product development roles focused on technology for supply chain and logistics. Mr. Hendrickson is a thought leader on spatial and ubiquitous computing, workflow mapping, neuromorphic compute, and end-to-end supply chain transformation. Mr. Hendrickson earned a Bachelor of Arts in English & Communications from Grove City College.

**Kevin Wilson, Chief Accounting Officer and Secretary**

Kevin Wilson served as Chief Financial Officer of the Company from September 2021 to February 2025, when he transitioned to be the Chief Accounting Officer of the Company. Since March 2025, he has been employed as Executive Vice President – Finance and Accounting of VERSES Solutions. He also continues to serve as the Secretary of the Company since he was appointed to that role in September 2021. Prior to that, Mr. Wilson acted as the part-time Chief Financial Officer of VTU. Mr. Wilson has held the role of Chief Financial Officer for a number of technical and service oriented entities. From 2007 until 2011, Mr. Wilson was Chief Financial Officer for ICANN, the coordinator of the policies for the Internet's unique identifiers, and from 2012 to 2016, Mr. Wilson was the initial Chief Financial Officer and VP Finance for Identity Digital (formerly called Donuts Inc.), the largest Top Level Domain registry operator. Mr. Wilson received an undergraduate degree from Stanford University, a Master of Business Administration degree from the University of California, Los Angeles and earned his Certified Public Accountant ("CPA") designation in 1989 while working for Kenneth Leventhal & Company, a predecessor of Ernst & Young. Mr. Wilson maintained his CPA designation until 2004 when he allowed his CPA license to lapse.

**Hari Thiruvengada, Chief Technology Officer**

Hari Thiruvengada has served as Chief Technology Officer of the Company since September 2024. Prior to that, he served as Chief Product Officer of the Company from March 2024 to July 2024 and VP of Product Enterprise from June 2023 to May 2024. From September 2022 to May 2023, Mr. Thiruvengada served as Head of Enterprise Product and UX of Opendoor, a real estate company, and from May 2021 to July 2022, he served as Senior Director of Product Management from Seegrid, an autonomous mobile robot solutions company. Prior to that, Mr. Thiruvengada was at Honeywell, an appliance, electrical and electronic manufacturing company, for over 13 years serving in various capacities including Global Head Of Product Management, Honeywell Voice Solutions; North America Design Director, User Experience Design, Honeywell Intelligrated and SPS; Global Strategic Design Director - User Experience, Workflow Solutions and Services; Director - User Experience, Honeywell Connected Buildings; UX Design Manager - Global Experience Design; and Research Scientist. Mr. Thiruvengada received his PhD and Masters in Science degree in industrial engineering and human factors from Penn State University, his Master's degree in human factors from Wright State University, his Masters in Science degree in computer science and engineering from the University of Buffalo, his Bachelor of Engineering degree from Sathyabama University and his Bachelor of Engineering degree from University of Madras.

**Michael Blum, Chairman**

Michael Blum has served as Chairman of the board of directors of the Company since September 2024. He co-founded and has served as President of Hedgeye Risk Management, an online financial media company and real-time research platform that brings transparency, accountability and trust to institutional and retail investors, since January 2008. Since 2024, Mr. Blum has served at President of Hedgeye Asset Management, a firm that provides access to distinguished institutional managers and their respective strategies in the form of ETFs. Since 2016, Mr. Blum has served as President of Seven7, LLC, a firm focused on identifying innovative companies across the consumer, tech, and media landscape. Since February 2014, Mr. Blum has served as a director of Hedgeye Cares, Inc., a charity organization that contributes to non-profits that assist with and address vital community needs, and since July 2013, he has served as managing director of Asia Leisure Capital, a south east Asia focused hotel and casino management and financing company. Previously, from February 2019 to August 2024, Mr. Blum served as President of Sierpinski Capital Management LLC, and Asset Manager, and from 2014 to 2017 he was Co-Founder and Chief Financial Officers of Firefly Space Systems, Inc., a space launch vehicle developer. Mr. Blum has held various other positions including Managing Director of Repulse Bay Capital Limited; Chief Executive Officer and Director of Magneto Sands Ltd.; Director of LFTG Holdings; Director and Acting Chief Executive Officer of XCOR Aerospace; and Senior manager of PayPal. We believe Mr. Blum is qualified to serve as a member of the board of directors of the Company because of his extensive executive, financial and entrepreneurial experience in the United States, Europe and Asia.

**Jonathan De Vos, Director**

Jonathan De Vos has served as a director of the Company since April 2022. Mr. De Vos is an investment professional based in London, UK. He is currently a Director at Federated Hermes where he oversees the ex-Asia assets within the firm's Global Emerging Market Fund. He was previously a generalist investment manager on the Asia & EM team at Invesco from May 2015 to May 2020, where he was responsible for analysis of companies across all sectors as well as portfolio management responsibilities on Latin American and Global Small Cap strategies. Prior to joining Invesco in 2015, Mr. De Vos spent 13 years at Raymond James & Associates, first as a sell-side equity analyst covering industrials and then as head of institutional equities for Raymond James Ltd. in Europe. Mr. De Vos has extensive knowledge of the European asset management industry with a particular emphasis on growth equities. Mr. De Vos holds an Honors Business Administration degree and an Honors Bachelor of Science degree in Pharmacology and Toxicology, both from the University of Western Ontario. We believe Mr. De Vos is qualified to serve as a member of the board of directors of the Company because of his extensive experience in investment and management.

**Gordan Scott Paterson, Director**

G Scott Paterson has served as a director of the Company since June 2022. Mr. Paterson is a Toronto-based technology and media venture capitalist who has been active for 40 years in the investment industry. Since January 2015, Mr. Paterson has served as Executive Chairman of FutureVault Inc, and since March 2017, he has served as Chairman of the Board of QYOU Media Inc (TSXV:QYOU). His career began working at Dominion Securities Pitfield as a retail broker in 1985 and in 1988 he moved into investment banking when at Richardson Greenshields. In April 1995, Mr. Paterson was recruited to Yorkton Securities where he led the firm's transformation from a mining-focused brokerage firm to becoming Canada's leading technology investment bank focused on technology, internet, biotechnology and film & television. Mr. Paterson served as CEO of Yorkton Securities from 1998 to 2001. In the late 90s and early 2000s, Mr. Paterson served as Chairman of the Canadian Venture Exchange (now Toronto Venture Exchange - TSXV), Vice Chairman of the Toronto Stock Exchange, a Director of the Investment Dealers Association of Canada (now CIRO) and was Series 7 and 24 licensed in the US. He obtained his ICD.d certification from the Institute of Corporate Directors at the Rotman Business School, University of Toronto in 2009. Mr. Paterson has served on Boards of Directors for companies listed on the NYSE, TSX, TSXV, CBOE Canada and UK's AIM market. He has served on Audit, Nominating, Governance, Risk and Compensation Committees. Mr. Paterson served on the Board of Directors of Lionsgate Entertainment for 21 years from 1997 until 2018 and now serves on two subsidiary Boards. Mr. Paterson was Chairman & CEO of JumpTV when Morgan Stanley took the company public in 2006. Mr. Paterson received a B.A. (Economics) in 1985 and completed the Executive Program in 1994, both at Western University. We believe Mr. Paterson is qualified to serve as a member of the board of directors of the Company because of his extensive experience in the technology sector along with his experience as a public company director.

**Family Relationships**

There are no family relationships among any of our executive officers or directors.

**Arrangements Between Officers and Directors**

Except as set forth herein, to our knowledge, there is no arrangement or understanding between any of our officers or directors and any other person pursuant to which the officer or director was selected to serve as an officer or director.

**Involvement in Certain Legal Proceedings**

We are not aware of any of our directors or officers being involved in any legal proceedings in the past ten years relating to any matters in bankruptcy, insolvency, criminal proceedings (other than traffic and other minor offenses), or being subject to any of the items set forth under Item 401(f) of Regulation S-K.

**Committees of Our Board of Directors**

Our board of directors directs the management of our business and affairs and conducts its business through meetings of the board of directors and its standing committees. We have a standing audit committee, compensation committee and nominating and corporate governance committee. In addition, from time to time, special committees may be established under the direction of the board of directors when necessary to address specific issues.

Our board of directors has determined that all of the members of the audit committee, the compensation committee and the nominating and corporate governance committee are independent as defined under the applicable rules of Nasdaq, including, in the case of all of the members of our audit committee, the independence requirements contemplated by Rule 10A-3 under the Exchange Act. In making such determination, the board of directors considered the relationships that each director has with our Company and all other facts and circumstances that the board of directors deemed relevant in determining director independence, including the beneficial ownership of our capital stock by each director.

**Audit Committee**

Our audit committee is responsible for, among other things:

● approving and retaining the independent registered public accounting firm to conduct the annual audit of our consolidated financial statements;

● reviewing the proposed scope and results of the audit;

● reviewing and pre-approval of audit and non-audit fees and services;

● reviewing accounting and financial controls with the independent registered public accounting firm and our financial and accounting staff;

● reviewing and approving transactions between us and our directors, officers and affiliates;

● establishing procedures for complaints received by us regarding accounting matters;

● overseeing internal audit functions, if any; and

● preparing the report of the audit committee that the rules of the Securities and Exchange Commission require to be included in our annual meeting proxy statement.

Our audit committee consists of Michael Blum, Jonathan De Vos and Gordan Scott Paterson, with Michael Blum serving as chair. Each member of our audit committee meets the financial literacy requirements of the Nasdaq rules. In addition, our board of directors has determined that Michael Blum qualifies as an "audit committee financial expert," as such term is defined in Item 407(d)(5) of Regulation S-K.

***Compensation Committee***

Our compensation committee is responsible for, among other things:

● reviewing and recommending the compensation arrangements for management, including the compensation for our president and chief executive officer;

● establishing and reviewing general compensation policies with the objective to attract and retain superior talent, to reward individual performance and to achieve our financial goals;

● administering our stock incentive plans; and

● preparing the report of the compensation committee that the rules of the Securities and Exchange Commission require to be included in our annual meeting proxy statement.

Our compensation committee currently consists of Michael Blum, Jonathan De Vos and Gordan Scott Paterson, with Jonathan De Vos serving as chair.

***Nominating and Governance Committee***

Our nominating and governance committee is responsible for, among other things:

● identifying and nominating members of the board of directors;

● developing and recommending to the board of directors a set of corporate governance principles applicable to our Company; and

● overseeing the evaluation of our board of directors.

Our nominating and corporate governance committee consists of Michael Blum, Jonathan De Vos and Gordan Scott Paterson, with Gordan Scott Paterson serving as chair.

**Code of Conduct and Ethics Policy**

We have adopted a written code of conduct and ethics policy that applies to our directors, officers and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. Disclosure regarding any amendments to, or waivers from, provisions of the code of conduct and ethics that apply to our directors, principal executive and financial officers will be included in a Current Report on Form 8-K, which we will file within four business days following the date of the amendment or waiver.

**Insider Trading Policy**

We have adopted an insider trading policy governing the purchase, sale, and/or any other disposition of our securities that applies to our directors, officers and employees, and other covered persons. We believe that our insider trading policy is reasonably designed to promote compliance with insider trading laws, rules and regulations, and listing standards applicable to our Company. A copy of our insider trading policy is filed as Exhibit 19.1 to this Annual Report on Form 10-K.

**Changes in Nominating Procedures**

None.

**ITEM 11. EXECUTIVE COMPENSATION**

*Summary Compensation Table*

The following table sets forth the compensation paid or accrued during the fiscal year ended March 31, 2025 and 2024 to the following officers (each, a "named executive officer" and collectively, the "named executive officers"):

● Gabriel René, Chief Executive Officer and Director;

● James Hendrickson, President and Chief Operating Officer; and

● Kevin Wilson, Chief Accounting Officer and Secretary.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary<br> ($)** | **Bonus<br> ($)(3)** | **Stock<br> Awards<br> ($)(4)** | **Option<br> Awards<br> ($)(5)** | **Non-Equity<br> Incentive Plan<br> Compensation<br> ($)** | **Nonqualified<br> deferred<br> compensation<br> earnings<br> ($)** | **All Other<br> Compensation<br> ($)** | **Total<br> ($)** |
| Gabriel René, <br> Chief Executive Officer and Director | 2025 | 405000 | 100000 |  |  |  |  |  | $505000 |
|  | 2024 | 435000 |  |  |  |  |  |  | 435000 |
| James Hendrickson,<br> President and Chief Operating Officer (1) | 2025 | 237917 | 243500 |  | 178247 |  |  |  | 659664 |
|  | 2024 | 200000 |  |  | 38203 |  |  |  | 238203 |
| Kevin Wilson,<br> Chief Accounting Officer and Secretary (2) | 2025 | 251167 | 40000 | 43051 | 29784 |  |  |  | 364002 |
|  | 2024 | 249000 |  |  | 335808 |  |  |  | 584808 |

---

(1) James Hendrickson was appointed as President of the Company on April 17, 2025.

(2) Kevin Wilson served as the Chief Financial Officer of the Company from
 September 2021 to March 24, 2025, and became the Chief Accounting Officer on March 24, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Includes
 cash discretionary bonuses paid to our named executive officers for the fiscal years ended March 31, 2025 and 2024

(4) On
 July 3, 2024, the Company granted time-based RSUs convertible into shares of Subordinate Voting Stock to Mr. Wilson. The amounts
 shown above reflect the aggregate grant date fair value of such awards computed in accordance with the FASB's ASC Topic 718.
 The assumptions used in calculating these amounts are incorporated herein by reference to Note 9, related party transactions and balances, to the
 Company's financial statements, set forth elsewhere in this report.

(5) In
 December 2023, July 2024, and December 2024, the Company granted stock options to Mr. Hendrickson and Mr. Wilson at exercise prices
 of CAD$36.45, CAD$28.89, and CAD$30.51 respectively, representing the closing price on the applicable date of grant. The amounts shown
 above reflect the aggregate grant date fair value of such awards computed in accordance with the FASB's ASC Topic 718. The
 assumptions used in calculating these amounts are incorporated herein by reference to Note 17. Stock based compensation, to the Company's
 financial statements, set forth elsewhere in this report.

**Employment Agreements**

**Gabriel René**

The Company entered into an employment contract through VERSES, Inc., an indirect subsidiary of the Company, with Gabriel René in connection with Mr. René's position as founder and Chief Executive Officer of the Company (the "CEO Contract"). The original term of the CEO Contract began on January 1, 2022 and ended on December 31, 2022, and the CEO Contract is subject to automatic annual renewal for additional twelve month terms thereafter, unless the CEO Contract is terminated by either party according to its terms. Pursuant to the CEO Contract, Mr. René is currently paid an annual salary of $420,000, and is also eligible to receive additional compensation in the form of equity incentive awards and discretionary performance bonuses. Mr. René is also eligible to participate in the Company's standard employee benefit plans, including health and welfare plans. In the event that Mr. René is subject to (A) an involuntary termination not encompassed by (i) felony conviction, (ii) Mr. René's willful, continued and unexcused failure to perform their duties in their position for a period of at least thirty days after having been notified in writing by the Company of said failure, (iii) gross or willful misconduct that results, or is substantially likely to result, in serious damage to the Company or its reputation, or (iv) any adjudicated and independently-verified violation of the confidentiality, non-disparagement and/or non-solicitation provisions contained in the CEO Contact or (B) the assignment to Mr. René of a job role or position duties materially inconsistent with those contemplated by the CEO Contract; (C) the interposition of any direct reporting supervisor or manager over Mr. René other than the Company's CEO and President; or (D) a change of control of the Company, Mr. René will be entitled to a severance package. The severance package will consist of: (i) a lump sum payment equal to 12 months' worth of Mr. René's base salary, payable within 30 days of said event; (ii) continuation for 12 months of Mr. René's medical and dental insurance under COBRA or similar procedural mechanisms; and (iii) immediate, accelerated vesting of all stock options, equity and related compensation subject to vesting requirements. Further, Mr. René's receipt of any severance benefits may be conditioned upon Mr. René's approval and execution of a written waiver and settlement of claims document absolving the Company and its subsidiaries, employees, directors, officers and assigns of any liability concerning Mr. René's employment with Company. Any severance package granted under the CEO Contract will be subject to the Company's executive severance policy at the time of termination, as approved by the Compensation Committee.

 ****

 ****

**James Hendrickson**

The Company entered into an employment contract through VERSES Logistics, Inc., an indirect subsidiary of the Company, with James Hendrickson in connection with Mr. Hendrickson's position as President and Chief Operating Officer of the Company (the "COO Contract"). The original term of the COO Contract began on January 1, 2022 and ended on February 28, 2022, and the COO Contract can be renewed for additional twelve month terms unless the COO Contract is terminated according to its terms. Pursuant to the COO Contract, Mr. Hendrickson is currently paid an annual salary of $265,000, and is also eligible to receive additional compensation in the form of equity incentive awards and discretionary performance bonuses. Mr. Hendrickson is also eligible to participate in the Company's standard employee benefit plans, including health and welfare plans.

**Kevin Wilson**

The Company has entered into an employment contract (the "CAO Contract"), through VERSES Solutions, Inc. ("VSI"), a direct subsidiary of VAI, with Kevin Wilson pursuant to which Mr. Wilson serves as the Chief Accounting Officer of the Company. The term of the CAO Contract began on March 1, 2025 for an initial term ending on March 31, 2026, and is subject to automatic annual renewals thereafter. Pursuant to the CAO Contract, Mr. Wilson will be paid an annual salary of $275,000, and will be eligible to receive additional compensation in the form of equity incentive awards, as well as annual performance bonuses and cash incentive awards, based on the achievement of annual performance objectives. Executive shall also be eligible to participate in the Company's standard benefit plans. Upon the occurrence of a Triggering Event (as described below), Mr. Wilson shall be entitled to receive a severance benefits consisting of: (i) a lump sum payment equal to thirty-six (36) months' worth of Mr. Wilson's base salary payable within thirty (30) days of said Triggering Event; (ii) continuation for 36 months of Mr. Wilson's medical and dental insurance under COBRA or similar procedural mechanisms (in the event the Triggering Event results in termination of Mr. Wilson's employment with the Company); and (iii) immediate, accelerated vesting of all stock options, equity and related compensation that would otherwise be subject to vesting requirements. For purposes of the CAO Contract, a "Triggering Event" shall consist of: (i) any termination of Mr. Wilson's employment by VSI without cause; (ii) any resignation by Mr. Wilson with cause; (iii) the assignment to Mr. Wilson of a job role or position duties materially inconsistent with those contemplated by the CAO Contract; (iv) the interposition of any direct reporting supervisor or manager over Mr. Wilson other than the Company's CFO, CEO and/or President; or (v) the Company's failure, within 30 days of the effective date of the CAO Contract, to execute that certain Indemnity Agreement described therein. Upon the occurrence of a Change in Control (as defined therein), Mr. Wilson shall be entitled to receive severance benefits consisting of: (i) a lump sum payment equal to sixty (60) months' worth of Mr. Wilson's base salary payable within thirty (30) days of such Change in Control; (ii) continuation for 60 months of Mr. Wilson's medical and dental insurance under COBRA or similar procedural mechanisms; and (iii) immediate, accelerated vesting of all stock options, equity and related compensation that would otherwise be subject to vesting requirements. In the event that Mr. Wilson's employment with the Company is terminated by VSI for Cause or by reason of Mr. Wilson's resignation without Cause, Mr. Wilson shall be entitled to receive a severance package consisting of: (i) a lump sum payment equal to twelve (12) months' worth of Mr. Wilson's base salary payable within thirty (30) days of Mr. Wilson's last day of employment; (ii) continuation for 12 months of Mr. Wilson's medical and dental insurance under COBRA or similar procedural mechanisms; and (iii) immediate, accelerated vesting of all stock options, equity and related compensation that would otherwise be subject to vesting requirements. Mr. Wilson's receipt of any severance benefits may be conditioned upon Mr. Wilson's execution of the written waiver and settlement of claims document.

**Outstanding Equity Awards at March 31, 2025**

The following table provides information regarding equity-based awards held by our named executive officers that were outstanding as of March 31, 2025.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Stock Awards** | **Stock Awards** | **Stock Awards** | **Stock Awards** |
| <br>**Name** | **Number of<br> Securities<br> Underlying<br> Unexercised<br> Options (#) Exercisable** | **Number of<br> Securities<br> Underlying<br> Unexercised<br> Options (#)<br> Unexercisable** | **Option<br> Exercise<br> Price ($)** | **Option<br> Expiration<br> Date** | **Number of shares or units of stock that have not vested<br> (#)** | **Market value of shares of units of stock that have not vested ($)** | **Equity<br> incentive<br> plan awards: Number of<br> unearned<br> shares, units or other rights that have not vested<br> (#)** | **Equity<br> incentive<br> plan awards: Market or payout value of<br> unearned<br> shares, units or other rights that have not vested<br> ($)** |
| Gabriel René, Chief Executive Officer and Director |  |  |  |  |  |  |  |  |
| James Hendrickson, President and Chief Operating Officer (1) | 1389 | 463 | 36.45 | December 15, 2028 |  |  |  |  |
|  |  | 3704 | 28.89 | July 3, 2029 |  |  |  |  |
|  |  | 7407 | 30.51 | December 23, 2028 |  |  |  |  |
| Kevin Wilson, Chief Accounting Officer and Secretary (2) | 16278 |  | 36.45 | December 15, 2028 |  |  |  |  |
|  |  | 1852 | 28.89 | July 3, 2029 |  |  |  |  |
|  |  |  |  |  | 1852 | 43059 |  |  |

---

(1) James Hendrickson was appointed as President of the Company in April 2025.

(2) Kevin Wilson served as the Chief Financial Officer of the Company from September 2021 to March 24, 2025, and became the Chief Accounting Officer on March 24, 2025.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Type** | **Quantity** | **Price** | **Grant Date** | **Expiry Date** | **Vesting** |
| &nbsp;&nbsp;James Hendrickson | &nbsp;&nbsp;Stock Options | 1852 | 36.45 | &nbsp;&nbsp;15-Dec-23 | &nbsp;&nbsp;15-Dec-28 | &nbsp;&nbsp;25% at Jan 1/23, and 6.25% at end of each full quarter thereafter. |
| &nbsp;&nbsp;James Hendrickson | &nbsp;&nbsp;Stock Options | 3704 | 28.89 | &nbsp;&nbsp;03-Jul-24 | &nbsp;&nbsp;03-Jul-29 | &nbsp;&nbsp;25% vests on the July 3, 2025 and 6.25% vests at the end of each full quarter thereafter |
| &nbsp;&nbsp;James Hendrickson | &nbsp;&nbsp;Stock Options | 7407 | 30.51 | &nbsp;&nbsp;23-Dec-24 | &nbsp;&nbsp;23-Dec-28 | &nbsp;&nbsp;25% vests on June 1, 2025, and 6.25% vests at the end of each full quarter thereafter |
| &nbsp;&nbsp;Kevin Wilson | &nbsp;&nbsp;Stock Options | 16278 | 36.45 | &nbsp;&nbsp;15-Dec-23 | &nbsp;&nbsp;15-Dec-28 | &nbsp;&nbsp;25% at Sep 1/19 , and 6.25% at end of each full quarter thereafter. |
| &nbsp;&nbsp;Kevin Wilson | &nbsp;&nbsp;Stock Options | 1852 | 28.89 | &nbsp;&nbsp;03-Jul-24 | &nbsp;&nbsp;03-Jul-29 | &nbsp;&nbsp;25% vests on the July 3, 2025 and 6.25% vests at the end of each full quarter thereafter |
| &nbsp;&nbsp;Kevin Wilson | &nbsp;&nbsp;RSUs | 1851 | n/a | &nbsp;&nbsp;03-Jul-24 | &nbsp;&nbsp;03-Jul-29 | &nbsp;&nbsp;1/3 vests on July 3, 2025, 1/3 vests on July 3, 2026, 1/3 vests on July 3, 2027 |

---

**Non-Employee Director Compensation**

The following table presents the total compensation for each person who served as a non-employee member of our board of directors and received compensation for such service during the fiscal year ended March 31, 2025. Other than as set forth in the table and described more fully below, we did not pay any compensation, make any equity awards or non-equity awards to, or pay any other compensation to any of the non-employee members of our board of directors during the fiscal year ended March 31, 2025.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Fees earned<br> or paid<br> in cash<br> ($)** | **Stock<br> Awards<br> ($)(1)** | **Option<br> Awards<br> ($)(1)** | **Non-Equity<br> Incentive Plan<br> Compensation<br> ($)** | **Nonqualified<br> deferred<br> compensation<br> earnings<br> ($)** | **All Other<br> Compensation<br> ($)** | **Total<br> ($)** |
| Michael Blum | 62500 | 1722221 |  |  |  |  | 1784721 |
| Jonathan De Vos |  | 215272 |  |  |  |  | 215272 |
| Gordan Scott Paterson |  | 215272 |  |  |  |  | 215272 |
| Jay Samit (1) | 84166 | 129162 | 143014 |  |  |  | 356342 |

---

(1) Jay Samit resigned as Chairman of the board on September 10, 2024.

(2) The amounts shown above reflect the aggregate grant date fair value of such awards computed in accordance with the FASB's ASC Topic 718. The assumptions used in calculating these amounts are incorporated herein by reference to Note 17. *Stock based compensation,* to the Company's consolidated financial statements, set forth elsewhere in this report.

**Narrative to Director Compensation Table**

There is no formal director compensation policy.

**Company Policies and Practices Related to the Grant of Certain Equity Awards Close in Time to the Release of Material Nonpublic Information**

The Company's Board of Directors last granted a stock option and RSUs on May 25, 2025. The Company does not grant stock options or similar awards to Section 16 Insiders, most SVPs, and other Vice Presidents and above who directly report to the CEO in anticipation of the release of material nonpublic information that is likely to result in changes to the price of the Company's stock, such as a significant positive or negative earnings announcement, or time the public release of such information based on stock option grant dates. In addition, the Company does not grant stock options or similar awards during the four business days prior to or the one business day following the filing of our periodic reports or the filing or furnishing of a Current Report on Form 8-K that discloses material nonpublic information. These restrictions do not apply to RSUs or other types of equity awards that do not include an exercise price related to the market price of the Company's stock on the date of grant.

The Company's executive officers would not be permitted to choose the grant date for any stock option grants.

During the year ended March 31, 2025, the Company's named executive officers were awarded stock options. The Company did not time the disclosure of material nonpublic information for the purpose of affecting the value of executive compensation.

**ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS**

The following table sets forth certain information regarding beneficial ownership of our Class A Subordinate Voting Shares as of July 11, 2025 by (i) each person known to beneficially own more than 5% of our Class A Subordinate Voting Shares, (ii) each of our directors, (iii) each of our named executive officers and (iv) all of our directors and executive officers as a group. Except as otherwise indicated, the persons named in the table below have sole voting and investment power with respect to all shares beneficially owned, subject to community property laws, where applicable.

---

| | | |
|:---|:---|:---|
| **Beneficial Owner<sup>(1)</sup>** | **Class A Subordinate Voting Shares Beneficially<br> Owned** | **Percentage<sup>(2)</sup>** |
| **Directors and Named Executive Officers:** |  |  |
| Gabriel René | 1158333 | 11.76% |
| Dan Mapes | 1158333 | 11.76% |
| James Hendrickson | 13 | \* |
| Kevin Wilson | 4659 | \* |
| Michael Blum |  |  |
| Jonathan De Vos | 9096 | \* |
| Gordan Scott Paterson | 23765 | \* |
| All Executive Officers and Directors as a Group (9 persons) |  |  |

---

\* Represents beneficial ownership of less than 1%.

(1) The address
 of each person is c/o Verses AI Inc., 2121 Avenue of the Stars, 8th Floor, Los Angeles, CA 90067 unless otherwise indicated herein.

(2) The calculation
 in this column is based upon 9,847,199 Class A Subordinate Voting Shares outstanding on July 11, 2025. Beneficial ownership is determined
 in accordance with the rules of the SEC and generally includes voting or investment power with respect to the subject securities.
 Class A Subordinate Voting Shares that are currently exercisable or convertible within 60 days of July 11, 2025 are deemed to be
 beneficially owned by the person holding such securities for the purpose of computing the percentage beneficial ownership of such
 person, but are not treated as outstanding for the purpose of computing the percentage beneficial ownership of any other person.

**Securities Authorized for Issuance Under Equity Compensation Plans**

The following table summarizes information about our equity compensation plans as of March 31, 2025.

---

| | | | |
|:---|:---|:---|:---|
| **Plan Category** | **Number of<br> securities<br> to be issued<br> upon<br> exercise of<br> outstanding<br> options,<br> warrants<br> and rights (a)** | **Weighted<br> average<br> exercise<br> price of<br> outstanding<br> options,<br> warrants<br> and rights** | **Number of<br> securities<br> remaining<br> available for<br> future<br> issuance<br> under equity<br> compensation<br> plans<br> (excluding<br> securities<br> reflected in<br> column (a))** |
| Equity compensation plans approved by security holders | 803712 CAD | $29.39 | 1032326 |
| Equity compensation plans not approved by security holders | 3235555 CAD | $31.31 | - |
| Total | 4039267 |  | 1032326 |

---

**ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

We did not have any transactions during our fiscal years ended March 31, 2025 and 2024 to which we have been a party, including transactions in which the amount involved in the transaction exceeds the lesser of $120,000 or 1% of the average of our total assets at year-end for the last two completed fiscal years, and in which any of our directors, executive officers or, to our knowledge, beneficial owners of more than 5% of our capital stock or any member of the immediate family of any of the foregoing persons had or will have a direct or indirect material interest, other than equity and other compensation, termination, change in control and other arrangements, which are described elsewhere in this Annual Report on Form 10-K.

**Related Person Transaction Policy**

We have adopted a formal policy regarding approval of transactions with related parties. For purposes of our policy only, a related person transaction is a transaction, arrangement or relationship, or any series of similar transactions, arrangements or relationships, in which we and any related person are, were or will be participants in which the amount involved exceeds $120,000 of our total assets in any fiscal year. Transactions involving compensation for services provided to us as an employee or director are not covered by this policy. A related person is any executive officer, director or beneficial owner of more than 5% of any class of our voting securities, including any of their immediate family members and any entity owned or controlled by such persons.

Under the policy, if a transaction has been identified as a related person transaction, including any transaction that was not a related person transaction when originally consummated or any transaction that was not initially identified as a related person transaction prior to consummation, our management must present information regarding the related person transaction to our audit committee, or, if audit committee approval would be inappropriate, to another independent body of our board of directors, for review, consideration and approval or ratification. The presentation must include a description of, among other things, the material facts, the interests, direct and indirect, of the related persons, the benefits to us of the transaction and whether the transaction is on terms that are comparable to the terms available to or from, as the case may be, an unrelated third-party or to or from employees generally. Under the policy, we will collect information that we deem reasonably necessary from each director, executive officer and, to the extent feasible, significant shareholder to enable us to identify any existing or potential related-person transactions and to effectuate the terms of the policy. In addition, under our code of business conduct and ethics, our employees and directors will have an affirmative responsibility to disclose any transaction or relationship that reasonably could be expected to give rise to a conflict of interest. In considering related person transactions, our audit committee, or other independent body of our board of directors, will take into account the relevant available facts and circumstances including, but not limited to:

● the risks, costs and benefits to us;

● the impact on a director's independence in the event that the related person is a director, immediate family member of a director or an entity with which a director is affiliated;

● the availability of other sources for comparable services or products; and

● the terms available to or from, as the case may be, unrelated third parties or to or from employees generally.

The policy requires that, in determining whether to approve, ratify or reject a related person transaction, our audit committee, or other independent body of our board of directors, must consider, in light of known circumstances, whether the transaction is in, or is not inconsistent with, our best interests and those of our shareholders, as our audit committee, or other independent body of our board of directors, determines in the good faith exercise of its discretion.

**Director Independence**

Our board of directors determined that a majority of the board during the year ended December 31, 2024 consisted of members who were "independent" as that term is defined under Nasdaq Listing Rule 5605(a)(2). The Board considered Michael Blum, Jonathan De Vos and Gordan Scott Paterson to be "independent."

**ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

The following table sets forth the aggregate fees billed by Smythe LLP as described below. Smythe LLP ("Smythe") was appointed as auditor of the Company on February 15, 2023 and resigned effective December 10, 2024.

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2024** |
| Audit Fees | $97167 | $78421 |
| Audit Related Fees | $30733 | $41801 |
| Tax Fees | $10215 | 765 |
| All Other Fees | $11794 | $5420 |
| &nbsp;&nbsp;&nbsp;Total | $149909 | $126407 |

---

**Audit Fees:** Audit fees consist of fees billed for professional services performed by Smythe for the audit of our annual consolidated financial statements, the review of interim consolidated financial statements, and related services that are normally provided in connection with registration statements. There were $97,167 and $78,421 of such fees incurred by the Company during the fiscal years ended March 31, 2025 and 2024, respectively.

**Audit-Related Fees:** Audit related fees consist of fees billed by an independent registered public accounting firm for assurance and related services that are reasonably related to the performance of the audit or review of our consolidated financial statements. There were $30,733 and $41,801 of such fees incurred by the Company during the fiscal years ended March 31, 2025 and 2024, respectively.

**Tax Fees:** Tax fees consist of fees for professional services, including tax compliance, performed by Smythe. There were $10,215 and $765 of such fees incurred by the Company during the fiscal years ended March 31, 2025 and 2024, respectively.

**All Other Fees:** There were $11,794 and $5,420 of such fees incurred by the Company during the fiscal years ended March 31, 2025 and 2024, respectively.

The following table sets forth the aggregate fees billed by M&K CPAS, PLLC ("M&K") as described below. M&K was appointed as auditor of the Company effective December 10, 2024.

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2024** |
| Audit Fees | $52000 |  |
| Audit Related Fees | $6000 |  |
| Tax Fees |  |  |
| All Other Fees | - | - |
| &nbsp;&nbsp;&nbsp;Total | $58000 | $&nbsp;&nbsp;&nbsp;&nbsp; - |

---

**Audit Fees:** Audit fees consist of fees billed for professional services performed by M&K for the audit of our annual consolidated financial statements, the review of interim consolidated financial statements, and related services that are normally provided in connection with registration statements. There were $52,000 of such fees incurred by the Company during the fiscal year ended March 31, 2025.

**Audit-Related Fees:** Audit related fees consist of fees billed by an independent registered public accounting firm for assurance and related services that are reasonably related to the performance of the audit or review of our consolidated financial statements. There were $6,000 of such fees incurred by the Company during the fiscal year ended March 31, 2025.

**Tax Fees:** Tax fees consist of fees for professional services, including tax compliance, performed by M&K. There were no of such fees incurred by the Company during the fiscal year ended March 31, 2025.

**All Other Fees:** There were no such fees incurred by the Company during the fiscal year ended March 31, 2025.

**Pre-Approval Policies and Procedures**

In accordance with Sarbanes-Oxley, our audit committee charter requires the audit committee to pre-approve all audit and permitted non-audit services provided by our independent registered public accounting firm, including the review and approval in advance of our independent registered public accounting firm's annual engagement letter and the proposed fees contained therein. The audit committee has the ability to delegate the authority to pre-approve non-audit services to one or more designated members of the audit committee. If such authority is delegated, such delegated members of the audit committee must report to the full audit committee at the next audit committee meeting all items pre-approved by such delegated members. In the fiscal years ended March 31, 2025 and 2024, all of the services performed by our independent registered public accounting firm were pre-approved by the audit committee.

**PART IV**

**ITEM 15. EXHIBIT AND FINANCIAL STATEMENT SCHEDULES**

**(a) The following documents are filed as part of this report:**

(1) Financial Statements:

---

| | |
|:---|:---|
| [Report of Independent Registered Public Accounting Firm](#F_001) (PCAOB ID: 2738) | F-2 |
| [Consolidated Balance Sheets as of March 31, 2025 and 2024](#F_002) | F-3 |
| [Consolidated Statements of Operations for the years ended March 31, 2025 and 2024](#F_003) | F-4 |
| [Consolidated Statements of Comprehensive Loss for the years ended March 31, 2025 and 2024](#F_004) | F-5 |
| [Consolidated Statements of Shareholders Deficiency for the years ended March 31, 2025 and 2024](#F_005) | F-6 |
| [Consolidated Statements of Cash Flows for the years ended March 31, 2025 and 2024](#F_006) | F-7 |
| [Notes to Consolidated Financial Statements](#af_002) | F-8 |

---

The consolidated financial statements required by this Item are included beginning at page F-1.

(1) Financial Statement Schedules:

All financial statement schedules have been omitted because they are not applicable, not required or the information required is shown in the consolidated financial statements or the notes thereto.

**(b) Exhibits**

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit Number** | **Exhibit** |
| 3.1 | [Notice of Articles of VERSES AI Inc. (Incorporated by reference to Exhibit 4.5 to the Company's Registration Statement on Form S-8 filed on December 16, 2024)](https://www.sec.gov/Archives/edgar/data/1879001/000149315224050058/ex4-5.htm) |
| 3.2 | [Articles of Verses AI Inc. dated November 19, 2020 (Incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-8 filed on December 16, 2024)](https://www.sec.gov/Archives/edgar/data/1879001/000149315224050058/ex4-1.htm) |
| 3.3 | [Amendment to the Articles of Verses AI Inc. dated June 17, 2021 (Incorporated by reference to Exhibit 4.2 to the Company's Registration Statement on Form S-8 filed on December 16, 2024)](https://www.sec.gov/Archives/edgar/data/1879001/000149315224050058/ex4-2.htm) |
| 3.4 | [Amendment to the Articles of Verses AI Inc. dated July 20, 2021 (Incorporated by reference to Exhibit 4.3 to the Company's Registration Statement on Form S-8 filed on December 16, 2024)](https://www.sec.gov/Archives/edgar/data/1879001/000149315224050058/ex4-3.htm) |
| 3.5 | [Amendment to the Articles of Verses AI Inc. dated March 31, 2023 (Incorporated by reference to Exhibit 4.4 to the Company's Registration Statement on Form S-8 filed on December 16, 2024)](https://www.sec.gov/Archives/edgar/data/1879001/000149315224050058/ex4-4.htm) |
| 4.1\* | [Specimen Stock Certificate evidencing the shares of Class A Subordinate Voting Stock](ex4-1.htm) |
| 4.2\* | [Warrant Indenture made by and between the Company and Endeavor Trust Corporation, dated as of December 16, 2022](ex4-2.htm) |
| 4.3\* | [First Supplemental Warrant Indenture made by and between the Company and Endeavor Trust Corporation, dated as of February 28, 2023](ex4-3.htm) |
| 4.4\* | [Second Supplemental Warrant Indenture made by and between the Company and Endeavor Trust Corporation, dated as of March 21, 2023](ex4-4.htm) |
| 4.5\* | [Third Supplemental Warrant Indenture made by and between the Company and Endeavor Trust Corporation, dated as of March 31, 2023](ex4-5.htm) |
| 4.6\* | [Warrant Indenture made by and between the Company and Endeavor Trust Corporation, dated as of July 6, 2023](ex4-6.htm) |
| 4.7 | [Warrant Indenture made by and between the Company and Endeavor Trust Corporation, dated as of April 28, 2025 (Incorporated by reference to Exhibit 4.1 to the Company's Form 8-K filed on April 28, 2025)](https://www.sec.gov/Archives/edgar/data/1879001/000164117225006505/ex4-1.htm) |
| 4.8\* | [Warrant Indenture made by and between the Company and Endeavor Trust Corporation, dated as of July 11, 2025](ex4-8.htm) |
| 10.1\*+ | [Employment Agreement made by and between VERSES Inc. and Gabriel René, dated as of December 31, 2021](ex10-1.htm) |
| 10.2\*+ | [Employment Agreement made by and between VERSES Solutions, Inc. and Kevin Wilson, dated as of March 1, 2025](ex10-2.htm) |
| 10.3\*+ | [Employment Offer Letter Agreement made by and between VERSES Technologies USA, Inc. and James Hendrickson, dated as of September 1, 2024](ex10-3.htm) |
| 10.4\* | [Director Compensation Agreement made by and between the Company and Jonathan De Vos, dated as of March 16, 2022](ex10-4.htm) |
| 10.5\* | [Director Compensation Agreement made by and between the Company and G. Scott Paterson, dated as of June 15, 2022](ex10-5.htm) |
| 10.6\* | [Director Compensation Agreement made by and between the Company and Michael Blum, dated as of September 9, 2024](ex10-6.htm) |
| 10.7 | [Verses AI Inc. Omnibus Equity Incentive Plan (Incorporated by reference to Exhibit 4.6 to the Company's Registration Statement on Form S-8 filed on December 16, 2024)](https://www.sec.gov/Archives/edgar/data/1879001/000149315224050058/ex4-6.htm) |
| 14.1\* | [Code of Conduct and Ethics Policy](ex14-1.htm) |
| 16.1 | [Letter from Smythe LLP (Incorporated by reference to Exhibit 99.3 to the Company's Form 6-K furnished on December 30, 2024)](https://www.sec.gov/Archives/edgar/data/1879001/000149315224052445/ex99-3.htm) |
| 19.1\* | [Insider Trading Policy](ex19-1.htm) |
| 21.1\* | [Subsidiaries of the Registrant](ex21-1.htm) |
| 23.1\* | [Consent of M&K CPAS, PLLC](ex23-1.htm) |
| 24.1\* | [Power of Attorney (included on the signature page hereto)](#p_001) |
| 31.1\* | [Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex31-1.htm) |
| 31.2\* | [Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex31-2.htm) |
| 32.1\*\* | [Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex32-1.htm) |
| 101.INS\* | Inline XBRL Instance Document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104\* | Cover Page Interactive Data File - the cover page of the Registrant's Annual Report on Form 10-K for the year ended March 31, 2025 is formatted in Inline XBRL |

---

\* Filed herewith.

\*\* Furnished herewith.

+ Indicates a management contract or any compensatory plan, contract or arrangement.

**ITEM 16. FORM 10-K SUMMARY**

Not applicable.

**SIGNATURES**

Pursuant to the requirements of Section 13 and 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized on this 14th day of July 2025.

---

| |
|:---|
| **VERSES AI INC.** |
| */s/ Gabriel René* |
| Gabriel René |
| Chief Executive Officer and Director |
| (Principal Executive Officer) |

---

**POWER OF ATTORNEY**

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Gabriel René as his attorney-in-fact, with full power of substitution and resubstitution, for him in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney-in-fact, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1934, this Annual Report on Form 10-K has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| */s/ Gabriel René* | Chief Executive Officer and Director | July 14, 2025 |
| Gabriel René | (Principal Executive Officer) |  |
| */s/ James Christodoulou* | Chief Financial Officer | July 14, 2025 |
| James Christodoulou | (Principal Financial Officer) |  |
| */s/ Kevin Wilson* | Chief Accounting Officer and Secretary | July 14, 2025 |
| Kevin Wilson | (Principal Accounting Officer) |  |
| */s/ Michael Blum* | Chairman | July 14, 2025 |
| Michael Blum |  |  |
| */s/ Jonathan De Vos* | Director | July 14, 2025 |
| Jonathan De Vos |  |  |
| */s/ Gordan Scott Paterson* | Director | July 14, 2025 |
| Gordan Scott Paterson |  |  |

---

## Exhibit 4.1

**Exhibit 4.1**

![](ex4-1_001.jpg)

![](ex4-1_002.jpg)

## Exhibit 4.2

**Exhibit 4.2**

**VERSES TECHNOLOGIES INC.**

as the Company

and

**ENDEAVOR TRUST CORPORATION**

as the Warrant Agent

**WARRANT INDENTURE**

**Providing for the Governance of up to 18,100,714 Warrants**

Dated as of December 16, 2022

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **Page No.** |
| **ARTICLE 1** | **ARTICLE 1** |  |
| **INTERPRETATION** | **INTERPRETATION** |  |
| Section 1.1 | Definitions | 3 |
| Section 1.2 | Gender and Number | 7 |
| Section 1.3 | Headings, Etc | 7 |
| Section 1.4 | Day not a Business Day | 7 |
| Section 1.5 | Time of the Essence | 7 |
| Section 1.6 | Monetary References | 7 |
| Section 1.7 | Applicable Law | 8 |
| Section 1.8 | Statutory References | 8 |
| **ARTICLE 2** | **ARTICLE 2** |  |
| **ISSUED WARRANTS** | **ISSUED WARRANTS** |  |
| Section 2.1 | Issued Warrants. | 8 |
| Section 2.2 | Terms of Warrants | 8 |
| Section 2.3 | Warrantholder not a Shareholder | 9 |
| Section 2.4 | Warrants to Rank Pari Passu | 9 |
| Section 2.5 | Form of Warrants, Warrant Certificates. | 9 |
| Section 2.6 | Book Entry Warrants | 10 |
| Section 2.7 | Warrant Certificate | 12 |
| Section 2.8 | Legends | 13 |
| Section 2.9 | Register of Warrants | 15 |
| Section 2.10 | Issue in Substitution for Warrant Certificates Lost, etc. | 16 |
| Section 2.11 | Exchange of Warrant Certificates | 16 |
| Section 2.12 | Transfer and Ownership of Warrants | 17 |
| Section 2.13 | Cancellation of Surrendered Warrants | 18 |
| **ARTICLE 3** | **ARTICLE 3** |  |
| **EXERCISE OF WARRANTS** | **EXERCISE OF WARRANTS** |  |
| Section 3.1 | Right of Exercise | 18 |
| Section 3.2 | Warrant Exercise | 18 |
| Section 3.3 | Prohibition on Exercise by U.S. Persons; Legended Certificates | 20 |
| Section 3.4 | Transfer Fees and Taxes | 21 |
| Section 3.5 | Warrant Agency | 22 |
| Section 3.6 | Effect of Exercise of Warrant Certificates | 22 |
| Section 3.7 | Partial Exercise of Warrants; Fractions. | 22 |
| Section 3.8 | Expiration of Warrants | 23 |
| Section 3.9 | Accounting and Recording | 23 |
| Section 3.10 | Securities Restrictions | 23 |

---

---

| | | |
|:---|:---|:---|
| **ARTICLE 4** | **ARTICLE 4** |  |
| **ADJUSTMENT OF NUMBER OF WARRANT SHARES AND EXERCISE PRICE** | **ADJUSTMENT OF NUMBER OF WARRANT SHARES AND EXERCISE PRICE** |  |
| Section 4.1 | Adjustment of Number of Warrant Shares and Exercise Price. | 24.0 |
| Section 4.2 | Entitlement to Warrant Shares on Exercise of Warrant | 27.0 |
| Section 4.3 | No Adjustment for Certain Transactions | 28.0 |
| Section 4.4 | Determination by Independent Firm | 28.0 |
| Section 4.5 | Proceedings Prior to any Action Requiring Adjustment | 28.0 |
| Section 4.6 | Certificate of Adjustment. | 28.0 |
| Section 4.7 | Notice of Special Matters | 28.0 |
| Section 4.8 | No Action after Notice | 29.0 |
| Section 4.9 | Other Action | 29.0 |
| Section 4.10 | Protection of Warrant Agent | 29.0 |
| Section 4.11 | Participation by Warrantholder. | 30.0 |
| **ARTICLE 5** | **ARTICLE 5** |  |
| **RIGHTS OF THE COMPANY AND COVENANTS** | **RIGHTS OF THE COMPANY AND COVENANTS** |  |
| Section 5.1 | Optional Purchases by the Company | 30.0 |
| Section 5.2 | General Covenants. | 30.0 |
| Section 5.3 | Warrant Agent's Remuneration and Expenses | 31.0 |
| Section 5.4 | Performance of Covenants by Warrant Agent | 31.0 |
| Section 5.5 | Enforceability of Warrants | 31.0 |
| **ARTICLE 6** | **ARTICLE 6** |  |
| **ENFORCEMENT** | **ENFORCEMENT** |  |
| Section 6.1 | Suits by Registered Warrantholders | 32.0 |
| Section 6.2 | Suits by the Company | 32.0 |
| Section 6.3 | Immunity of Shareholders, etc | 32.0 |
| Section 6.4 | Waiver of Default | 32.0 |
| **ARTICLE 7** | **ARTICLE 7** |  |
| **MEETINGS OF REGISTERED WARRANTHOLDERS** | **MEETINGS OF REGISTERED WARRANTHOLDERS** |  |
| Section 7.1 | Right to Convene Meetings | 33.0 |
| Section 7.2 | Notice | 33.0 |
| Section 7.3 | Chairman | 33.0 |
| Section 7.4 | Quorum. | 33.0 |
| Section 7.5 | Power to Adjourn | 34.0 |
| Section 7.6 | Show of Hands | 34.0 |
| Section 7.7 | Poll and Voting. | 34.0 |
| Section 7.8 | Regulations | 34.0 |
| Section 7.9 | Corporation and Warrant Agent May be Represented | 35.0 |
| Section 7.10 | Powers Exercisable by Extraordinary Resolution. | 35.0 |
| Section 7.11 | Meaning of Extraordinary Resolution | 36.0 |
| Section 7.12 | Powers Cumulative | 36.0 |
| Section 7.13 | Minutes | 37.0 |
| Section 7.14 | Instruments in Writing. | 37.0 |
| Section 7.15 | Binding Effect of Resolutions | 37.0 |
| Section 7.16 | Holdings by Company Disregarded | 37.0 |

---

---

| | | |
|:---|:---|:---|
| **ARTICLE 8** | **ARTICLE 8** |  |
| **SUPPLEMENTAL INDENTURES** | **SUPPLEMENTAL INDENTURES** |  |
| Section 8.1 | Provision for Supplemental Indentures for Certain Purposes | 38.0 |
| Section 8.2 | Successor Entities | 39.0 |
| **ARTICLE 9** | **ARTICLE 9** |  |
| **CONCERNING THE WARRANT AGENT** | **CONCERNING THE WARRANT AGENT** |  |
| Section 9.1 | Trust Indenture Legislation | 39.0 |
| Section 9.2 | Rights and Duties of Warrant Agent | 39.0 |
| Section 9.3 | Evidence, Experts and Advisers. | 40.0 |
| Section 9.4 | Documents, Monies, etc. Held by Warrant Agent | 41.0 |
| Section 9.5 | Actions by Warrant Agent to Protect Interest. | 41.0 |
| Section 9.6 | Warrant Agent Not Required to Give Security | 41.0 |
| Section 9.7 | Protection of Warrant Agent | 42.0 |
| Section 9.8 | Replacement of Warrant Agent; Successor by Merger. | 43.0 |
| Section 9.9 | Acceptance of Agency | 44.0 |
| Section 9.10 | Warrant Agent Not to be Appointed Receiver | 44.0 |
| Section 9.11 | Warrant Agent Not Required to Give Notice of Default. | 44.0 |
| Section 9.12 | Anti-Money Laundering. | 45.0 |
| Section 9.13 | Compliance with Privacy Code. | 45.0 |
| Section 9.14 | Securities Exchange Commission Certification | 46.0 |
| **ARTICLE 10** | **ARTICLE 10** |  |
| **GENERAL** | **GENERAL** |  |
| Section 10.1 | Notice to the Company and the Warrant Agent | 47.0 |
| Section 10.2 | Notice to Registered Warrantholders | 48.0 |
| Section 10.3 | Ownership of Warrants | 48.0 |
| Section 10.4 | Counterparts | 48.0 |
| Section 10.5 | Satisfaction and Discharge of Indenture | 49.0 |
| Section 10.6 | Provisions of Indenture and Warrants for the Sole Benefit of Parties and Registered Warrantholders | 49.0 |
| Section 10.7 | Class A Shares or Warrants Owned by the Company or its Subsidiaries - Certificate to be Provided | 49.0 |
| Section 10.8 | Severability | 50.0 |
| Section 10.9 | Force Majeure | 50.0 |
| Section 10.10 | Assignment, Successors and Assigns | 50.0 |
| Section 10.11 | Rights of Rescission and Withdrawal for Holders | 50.0 |

---

**SCHEDULES**

SCHEDULE "A" FORM OF WARRANT

SCHEDULE "B"

EXERCISE FORM

SCHEDULE "C"

FORM OF DECLARATION FOR REMOVAL OF LEGEND

SCHEDULE "D"

FORM OF U.S. PURCHASER CERTIFICATION UPON EXERCISE OF WARRANTS

**WARRANT INDENTURE**

**THIS WARRANT INDENTURE** is dated as of December 16, 2022.

**BETWEEN:**

**VERSES TECHNOLOGIES INC.**, a Company incorporated under the laws of the Province of British Columbia (the "**Company**"),

- AND -

**ENDEAVOR TRUST CORPORATION**, a Trust Company authorized in British Columbia, Alberta, Manitoba and Saskatchewan and incorporated under the laws of British Columbia, with its head office in the City of Vancouver, in the Province of British Columbia (the "**Warrant Agent**").

**WHEREAS:**

&nbsp;&nbsp;&nbsp;&nbsp;A. on
 February 22, 2022 the Company issued 6,591,631 share purchase warrants in connection with
 a private placement (the "**February Warrants** "), with each February Warrant
 entitling the holder to purchase one Class A Share at a price of $1.20 per share up to and
 including February 22, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;B. on
 March 3, 2022, the Company issued 3,909,906 share purchase warrants in connection with a
 private placement (the **"March Warrants** ", and together with the February
 Warrants, the "**Old Warrants** "), with each March Warrant entitling the holder
 to purchase one Class A Share at a price of $1.20 per share up to and including March 3,
 2024;

&nbsp;&nbsp;&nbsp;&nbsp;C. on
 August 10, 2022, August 17, 2022 and August 26, 2022 the Company issued 7,599,177 share purchase
 warrants in connection with a private placement (the "**August Warrants** "),
 with each August Warrant entitling the holder to purchase one Class A Share at a price of $1.20
per share up to and including August 15, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;D. the
 Company wishes to amend the Old Warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 reduce the exercise price of the Old Warrants to $1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to
 extend the expiration date of the Old Warrants to August 15, 2025; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to
 add the following acceleration clause:

"if at any time prior to the Expiry Date, the volume-weighted average trading price of the Class A Shares on the Neo Exchange Inc. (or such other principal exchange or market where the Class A Shares are then listed or quoted for trading) exceeds C$2.00, as adjusted in accordance with this certificate, for a period of 10 consecutive trading days, the Company may, at its option, accelerate the Expiry Date to the date that is 30 days following the written notice to the holders of the Warrants, in the form of a press release or other form of notice as permitted by this certificate"

(collectively the "**Old Warrant Amendments**");

&nbsp;&nbsp;&nbsp;&nbsp;E. the
 Company wishes to amend the August Warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 reduce the exercise price of the August Warrants to $1.00; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to
 replace the existing acceleration clause of the August Warrants in its entirety with the
 following acceleration clause:

"if at any time prior to the Expiry Date, the volume-weighted average trading price of the Class A Shares on the Neo Exchange Inc. (or such other principal exchange or market where the Class A Shares are then listed or quoted for trading) exceeds C$2.00, as adjusted in accordance with this certificate, for a period of 10 consecutive trading days, the Company may, at its option, accelerate the Expiry Date to the date that is 30 days following the written notice to the holders of the Warrants, in the form of a press release or other form of notice as permitted by this certificate"

(collectively the "**August Warrant Amendments**");

&nbsp;&nbsp;&nbsp;&nbsp;F. the
 Company obtained written consent ()"**Written Consent**") from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Warantholders
 holding an aggregate of 5,349,110 Old Warrants to implement the Old Warrant Amendments. The
 Old Warrant Amendments will be implemented in respect of the balance of the Old Warrants
 from time to time, up until the original expiry date of such Old Warrants, as and when the
 holders of such Old Warrants provide the Warrant Agent with their Written Consent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Warantholders
 holding an aggregate of 3,907,500 August Warrants to implement the August Warrant Amendments.
 The August Warrant Amendments will be implemented in respect of the balance of the August
 Warrants from time to time, up until the original expiry date of such August Warrants, as
 and when the holders of such August Warrants provide the Warrant Agent with their Written
 Consent;

&nbsp;&nbsp;&nbsp;&nbsp;G. subject
 to receipt of Written Consent from each Warrantholder, the Company now wishes to list the
 Warrants on the NEO (as defined herein) and in connection therewith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Company is entering into this Indenture with the Warrant Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject
 to receipt of Written Consent from each Warrantholder, the Warrants are, and from time to
 time will be, amended such that they are, and from time to time will be, governed by this
 Indenture and the certificates previously evidencing such Warrants will cease to represent
 any claim in the Company and will be of no further force and effect. For greater certainty,
 to the extent that Written Consent is not received by the Warrant Agent in respect of any
 Warrants: (a) such Warrants will not be amended as described in these recitals; (b) such
 Warrants will not be listed and will not be governed by this Indenture; and (c) the certificates
 evidencing such Warrants will remain valid and in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;H. pursuant
 to this Indenture, each Warrant shall, subject to adjustment, entitle the holder thereof
 to acquire one Class A Share (each, a "**Warrant Share**") upon payment of
 the Exercise Price prior to the Expiry Time upon the terms and conditions herein set forth;

&nbsp;&nbsp;&nbsp;&nbsp;I. all
 acts and deeds necessary have been done and performed to make the Warrants created and issued
 as legal, valid and binding upon the Company with the benefits and subject to the terms of
 this Indenture; and

&nbsp;&nbsp;&nbsp;&nbsp;J. the
 foregoing recitals are made as representations and statements of fact by the Company and
 not by the Warrant Agent.

**NOW THEREFORE**, in consideration of the premises and mutual covenants hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company hereby appoints the Warrant Agent as warrant agent to hold the rights, interests and benefits contained herein for and on behalf of those persons who are and from time to time become the holders of Warrants governed by this Indenture and the parties hereto agree as follows:

**ARTICLE 1**

**INTERPRETATION**

Section 1.1 Definitions.

In this Indenture, including the recitals and schedules hereto, and in all indentures supplemental hereto:

"**Acceleration Notice**" means the notice of acceleration deliverable to Registered Warrantholders upon the Company's exercise of the Acceleration Right, which notice of acceleration shall be delivered in accordance with section 10.2 hereof;

"**Acceleration Right**" means the right of the Company to accelerate the Expiry Date to the date that is 30 days following delivery of the Acceleration Notice to the Registered Warrantholders if, at any time prior to the Expiry Date, the volume-weighted average trading price of the Class A Shares on the NEO (or such other principal exchange or market where the Class A Shares are then listed or quoted for trading) exceeds $2.00, as adjusted in accordance with this Indenture, for a period of 10 consecutive trading days;

**"Adjustment Period**" means the period from the Effective Date up to and including the Expiry Time;

"**Applicable Legislation**" means any statute of Canada or a province thereof, and the regulations under any such named or other statute, relating to warrant indentures or to the rights, duties and obligations of warrant agents under warrant indentures, to the extent that such provisions are at the time in force and applicable to this Indenture;

"**Auditors**" means Crowe MacKay LLP, or such other firm of chartered accountants duly appointed as auditors of the Company, from time to time;

**"Authenticated**" means (a) with respect to the issuance of a Warrant Certificate, one which has been duly signed by the Company or on which the signatures of the Company have been printed, lithographed or otherwise mechanically reproduced and authenticated by manual signature of an authorized officer of the Warrant Agent, and (b) with respect to the issuance of an Uncertificated Warrant, one in respect of which the Warrant Agent has completed all Internal Procedures such that the particulars of such Uncertificated Warrant as required by Section 2.7 are entered in the register of holders of Warrants, "*Authenticate*", "*Authenticating*" and "*Authentication*" have the appropriate correlative meanings;

"**Book Entry Participants**" means institutions that participate directly or indirectly in the Depository's book entry registration system for the Warrants;

"**Book Entry Warrants**" means Warrants that are to be held only by or on behalf of the Depository;

"**Business Day**" means any day other than Saturday, Sunday or a statutory or civic holiday, or any other day on which banks are not open for business in the City of Vancouver**,** Province of British Columbia**,** and shall be a day on which the NEO is open for trading;

"**CDS Global Warrants**" means Warrants representing all or a portion of the aggregate number of Warrants issued in the name of the Depository and represented by an Uncertificated Warrant, or if requested by the Depository or the Company, by a Warrant Certificate;

"**CDSX**" means the settlement and clearing system of CDS Clearing and Depository Services Inc. for equity and debt securities in Canada;

"**Class A Shares**" means, subject to Article 4, fully paid Class A Subordinate Voting Shares in the capital of the Company as presently constituted;

"**Class A Share Reorganization**" has the meaning set forth in Section 4.1;

"**Counsel**" means a barrister and/or solicitor or a firm of barristers and/or solicitors retained by the Warrant Agent or retained by the Company, which may or may not be counsel for the Company;

"**Current Market Price**" means, at any date, the volume weighted average price per share at which the Class A Shares have traded:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on
 the NEO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if
 the Class A Shares are not listed on the NEO, on any stock exchange upon which the Class
 A Shares are listed as may be selected for this purpose by the board of directors of the
 Company, acting reasonably; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if
 the Class A Shares are not listed on any stock exchange, on any over-the-counter market on
 which the Class A Shares are trading, as may be selected for this purpose by the board of
 directors of the Company, acting reasonably;

"**Depository**" means CDS Clearing and Depository Services Inc. and Depository Trust Clearing Company or such other person as is designated in writing by the Company to act as depository in respect of the Warrants;

"**Dividends**" means any dividends paid by the Company;

"**Effective Date**" means the date of this Indenture;

"**Exchange Rate**" means the number of Warrant Shares subject to the right of purchase under each Warrant;

"**Exercise Date**" means, in relation to a Warrant, the Business Day on which such Warrant is validly exercised or deemed to be validly exercised in accordance with Article 3 hereof;

"**Exercise Notice**" has the meaning set forth in Section 3.2(1);

"**Exercise Price**" at any time means the price at which a whole Warrant Share may be purchased by the exercise of a whole Warrant, which is initially $1.00 per Warrant Share, payable in immediately available Canadian funds, subject to adjustment in accordance with the provisions of Section 4.1;

"**Expiry Date**" means the earlier of (i) August 15, 2025; and (ii) 30 days following the date of delivery of an Acceleration Notice;

"**Expiry Time**" means 4:00 p.m. (Vancouver time) on the Expiry Date;

"**Extraordinary Resolution**" has the meaning set forth in Section 7.11(1);

"**Internal Procedures**" means in respect of the making of any one or more entries to, changes in or deletions of any one or more entries in the register at any time (including without limitation, original issuance or registration of transfer of ownership) the minimum number of the Warrant Agent's internal procedures customary at such time for the entry, change or deletion made to be complete under the operating procedures followed at the time by the Warrant Agent;

"**Issue Date**" means (i) February 22, 2022 with respect to the 6,591,631 Warrants that expire on August 15, 2025; (ii) March 3, 2022 with respect to the 3,909,906 Warrants that expire on August 15, 2025; and (iii) August 10, 2022, August 17, 2022 and August 26, 2022 with respect to the 7,599,177 Warrants that expire on August 15, 2025;

"**NEO**" means the Neo Exchange Inc.;

"**person**" means an individual, body corporate, partnership, trust, warrant agent, executor, administrator, legal representative or any unincorporated organization;

"**register**" means the one set of records and accounts maintained by the Warrant Agent pursuant to Section 2.9:

"**Registered Warrantholders**" means the persons who are registered owners of Warrants as such names appear on the register, and for greater certainty, shall include the Depository as well as the holders of Uncertificated Warrants appearing on the register of the Warrant Agent;

"**Regulation D**" means Regulation D as promulgated by the United States Securities and Exchange Commission under the U.S. Securities Act;

"**Regulation S**" means Regulation S as promulgated by the United States Securities and Exchange Commission under the U.S. Securities Act;

"**Rights Offering**" has the meaning set forth in Section 4.1(b); "**Shareholders**" means holders of Class A Shares;

"**Tax Act**" means the *Income Tax Act* (Canada) and the regulations thereunder;

**"this Warrant Indenture**", "**this Indenture**", "**this Agreement**", "**hereto**" "**herein**", "**hereby**", "**hereof**" and similar expressions mean and refer to this Indenture and any indenture, deed or instrument supplemental hereto; and the expressions "**Article**", "**Section**", "**subsection**" and "**paragraph**" followed by a number, letter or both mean and refer to the specified article, section, subsection or paragraph of this Indenture;

"**Trading Day**" means, with respect to the NEO, a day on which such exchange is open for the transaction of business and with respect to another exchange or an over-the-counter market means a day on which such exchange or market is open for the transaction of business;

"**Uncertificated Warrant**" means any Warrant which is not evidenced by a Warrant Certificate;

"**United States**" means the United States of America, its territories and possessions, any state of the United States, and the District of Columbia;

"**U.S. Exchange Act**" means the United States Securities Exchange Act of 1934, as amended;

"**U.S. Person**" has the meaning set forth in Rule 902(k) of Regulation S;

"**U.S. Purchaser Letter**" means the U.S. Purchaser letter in substantially the form attached hereto as Schedule "D";

"**U.S. Securities Act**" means the *United States Securities Act of 1933*, as amended;

"**U.S. Warrantholder**" means any Warrantholder that is a U.S. Person, acquired Warrants in the United States or for the account or benefit of any U.S. Person or Person in the United States;

"**Warrants**" means up to 18,100,714 Class A Share purchase warrants created, authorized and issued by the Company on the applicable Issue Date and, subject to receipt of Written Consent in each case, governed by this Indenture to be Authenticated hereunder as a Warrant Certificate and /or Uncertificated Warrant held through the book entry registration system on a no certificate issued basis, entitling the holder or holders thereof to purchase up to 18,100,714 Warrant Shares (subject to adjustment as herein provided) at the Exercise Price prior to the Expiry Time. For greater certainty, every reference to the term "Warrants" herein shall refer to the Old Warrants and August Warrants in respect of which Written Consent has been obtained, from time to time;

"**Warrant Agency**" means the principal office of the Warrant Agent in the City of Vancouver, British Columbia or such other place as may be designated in accordance with Section 3.5;

"**Warrant Agent**" means ENDEAVOR TRUST CORPORATION, in its capacity as warrant agent of the Warrants, or its successors from time to time;

"**Warrant Certificate**" means a certificate, substantially in the form set forth in Schedule "A" hereto, to evidence those Warrants that will be evidenced by a certificate;

"**Warrantholders**", or "**holders**" without reference to Warrants, means the warrantholders as and in respect of Warrants registered in the name of the Depository and includes owners of Warrants who beneficially hold securities entitlements in respect of the Warrants through a Book Entry Participant or means, at a particular time, the persons entered in the register hereinafter mentioned as holders of Warrants outstanding at such time;

"**Warrantholders' Request**" means an instrument signed in one or more counterparts by Registered Warrantholders entitled to acquire in the aggregate not less than 50% of the aggregate number of Warrant Shares which could be acquired pursuant to all Warrants then unexercised and outstanding, requesting the Warrant Agent to take some action or proceeding specified therein;

"**written order of the Company**", "**written request of the Company**", "**written consent of the "Corporation**" and "**certificate of the Company**" mean, respectively, a written order, request, consent and certificate signed in the name of the Company by any two duly authorized signatories of the Company and may consist of one or more instruments so executed; and

"**Warrant Shares**" has the meaning, subject to Article 4, set forth in the preambles hereto.

Section 1.2 Gender and Number.

Words importing the singular number or masculine gender shall include the plural number or the feminine or neuter genders, and vice versa.

Section 1.3 Headings, Etc.

The division of this Indenture into Articles and Sections, the provision of a **Table of Contents** and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Indenture or of the Warrants.

Section 1.4 Day not a Business Day.

If any day on or before which any action or notice is required to be taken or given hereunder is not a Business Day, then such action or notice shall be required to be taken or given on or before the requisite time on the next succeeding day that is a Business Day.

Section 1.5 Time of the Essence.

Time shall be of the essence in this Indenture and each Warrant.

Section 1.6 Monetary References.

Whenever any amounts of money are referred to herein, such amounts shall be deemed to be in lawful money of Canada unless otherwise expressed.

Section 1.7 Applicable Law.

This Indenture, the Warrants, the Warrant Certificates (including all documents relating thereto, which by common accord have been and will be drafted in English) shall be construed in accordance with the laws of the Province of British Columbia, and the federal laws of Canada applicable therein and shall be treated in all respects as British Columbia contracts. Each of the parties hereto, which shall include the Warrantholders, irrevocably attorns to the exclusive jurisdiction of the courts of the Province of British Columbia with respect to all matters arising out of this Indenture and the transactions contemplated herein.

Section 1.8 Statutory References.

In this Indenture, unless something in the subject matter or context is inconsistent therewith or unless otherwise herein provided, a reference to any statute is to that statute as now enacted or as the same may from time to time be amended, re-enacted or replaced and includes any regulation made thereunder.

**ARTICLE 2**

**ISSUED WARRANTS**

Section 2.1 Issued Warrants.

The Company has issued a total of 18,100,714 Warrants on the dates and terms set out below. Subject to receipt of Written Consent in each case, each Warrant entitles the holder thereof to purchase one Warrant Share at the Exercise Price, as adjusted from time to time pursuant to this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Company issued 6,591,631 Warrants on February 22, 2022, which, subject to receipt of Written
 Consent in each case, expire on the Expiry Date.

&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Company issued 3,909,906 Warrants on March 3, 2022, which, subject to receipt of Written
 Consent in each case, expire on the Expiry Date; and

&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Company issued a total of 7,599,177 Warrants on August 10, 2022, August 17, 2022 and August
 26, 2022, which, subject to receipt of Written Consent in each case, expire on the Expiry
 Date.

By written order of the Company, the Warrant Agent shall deliver Warrants in certificate or uncertificated form pursuant to Section 2.5 hereof to Registered Warrantholders and record the name of the Registered Warrantholders on the Warrant register. Registration of interests in Warrants held by the Depository may be evidenced by a position appearing on the register for Warrants of the Warrant Agent for an amount representing the aggregate number of such Warrants outstanding from time to time.

Section 2.2 Terms of Warrants.

(1) Subject
 to the applicable conditions for exercise set out in Article 3 having been satisfied and
 subject to adjustment in accordance with Section 4.1, each whole Warrant shall entitle each
 Warrantholder thereof, upon exercise at any time after the applicable Issue Date and prior
 to the Expiry Time, to acquire one (1) Warrant Share upon payment of the Exercise Price.

(2) No
 fractional Warrants shall be provided for hereunder and Warrants may only be exercised in
 a sufficient number to acquire whole numbers of Warrant Shares.

(3) Each
 whole Warrant shall entitle the holder thereof to such other rights and privileges as are
 set forth in this Indenture. Any fractional Warrants shall be rounded down to the nearest
 whole number and no consideration shall be paid for any such fractional Warrant.

(4) The
 number of Warrant Shares which may be purchased pursuant to the Warrants and the Exercise
 Price therefor shall be adjusted upon the events and in the manner specified in Section 4.1.

(5) If,
 at any time prior to the Expiry Date, the volume-weighted average trading price of the Class
 A Shares on the NEO (or such other principal exchange or market where the Class A Shares
 are then listed or quoted for trading) exceeds $2.00, as adjusted in accordance with this
 Indenture, for a period of 10 consecutive trading days, the Company shall be entitled, at
 the option of the Company, to exercise the Acceleration Right by delivering an Acceleration
 Notice to the Registered Warrantholders. An Acceleration Notice shall be delivered to each
 Registered Warrantholder in the manner in Section 10.2.

(6) Neither
 the Company nor the Warrant Agent shall have any obligation to deliver Warrant Shares upon
 the exercise of any Warrant if the person to whom such shares are to be delivered is a resident
 of a country or political subdivision thereof in which the Warrant Shares may not lawfully
 be issued pursuant to applicable securities legislation. The Company or the Warrant Agent
 may require any person to provide proof of an applicable exemption from such securities legislation
 to the Company and Warrant Agent before Warrant Shares are delivered pursuant to the exercise
 of any Warrant.

Section 2.3 Warrantholder not a Shareholder.

Except as may be specifically provided herein, nothing in this Indenture or in the holding of a Warrant Certificate, entitlement to a Warrant or otherwise, shall, in itself, confer or be construed as conferring upon a Warrantholder any right or interest whatsoever as a Shareholder, including, but not limited to, the right to vote at, to receive notice of, or to attend, meetings of Shareholders or any other proceedings of the Company, or the right to Dividends and other allocations.

Section 2.4 Warrants to Rank Pari Passu.

All Warrants shall rank equally and without preference over each other, whatever may be the actual date of issue thereof.

Section 2.5 Form of Warrants, Warrant Certificates.

(1) The
 Warrants may be represented in both certificated and uncertificated form. Each Warrant originally
 issued to a U.S. Warrantholder will be evidenced in certificated form only and bear the applicable
 legends as set forth in Schedule "A" hereto. All Warrants issued in certificated
 form shall be evidenced by a Warrant Certificate (including all replacements issued in accordance
 with this Indenture), substantially in the form and bearing the applicable legends as set
 out in Schedule "A" hereto, which shall be dated as of the applicable Issue Date,
 shall bear such distinguishing letters and numbers as the Company may, with the approval
 of the Warrant Agent, prescribe, and shall be issuable in any denomination excluding fractions. All Warrants issued to the Depository may be in either a certificated
or uncertificated form, such uncertificated form being evidenced by a book position on the register of Warrantholders to be maintained
by the Warrant Agent in accordance with Section 2.6.

(2) Each
 Warrantholder by holding such Warrant acknowledges and agrees that the terms and conditions
 set forth in the form of the Warrant Certificate set out in Schedule "A" hereto
 shall apply to all Warrants and Warrantholders regardless of whether such Warrants are issued
 in certificated or uncertificated form or whether such Warrantholders are Registered Warrantholders
 or owners of Warrant who beneficially hold security entitlements in respect of the Warrants
 through a Depository.

Section 2.6 Book Entry Warrants.

(1) Reregistration
 of beneficial interests in and transfers of Warrants held by the Depository shall be made
 only through the book entry registration system and no Warrant Certificates shall be issued
 in respect of such Warrants except where physical certificates evidencing ownership in such
 securities are required or as set out herein or as may be requested by the Depository, as
 determined by the Company, from time to time. Except as provided in this Section 2.6, owners
 of beneficial interests in any CDS Global Warrants shall not be entitled to have Warrants
 registered in their names and shall not receive or be entitled to receive Warrants in definitive
 form or to have their names appear in the register referred to in Section 2.9 herein. Notwithstanding
 any terms set out herein, Warrants held in the name of the Depository having any legend set
 forth in Section 2.8 herein and may only be held in the form of Uncertificated Warrants with
 the prior consent of the Warrant Agent and in accordance Internal Procedures of the Warrant
 Agent.

(2) Notwithstanding
 any other provision in this Indenture, no CDS Global Warrants may be exchanged in whole or
 in part for Warrants registered, and no transfer of any CDS Global Warrants in whole or in
 part may be registered, in the name of any person other than the Depository for such CDS
 Global Warrants or a nominee thereof unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Depository notifies the Company that it is unwilling or unable to continue to act as depository
 in connection with the Book Entry Warrants and the Company is unable to locate a qualified
 successor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Company determines that the Depository is no longer willing, able or qualified to properly
 discharge its responsibilities as holder of the CDS Global Warrants and the Company is unable
 to locate a qualified successor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Depository ceases to be a clearing agency or otherwise ceases to be eligible to be a depository
 and the Company is unable to locate a qualified successor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Company determines that the Warrants shall no longer be held as Book Entry Warrants through
 the Depository;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) such
 right is required by Applicable Legislation, as determined by the Company and the Company's
 Counsel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 Warrant is to be Authenticated to or for the account or benefit of a person in the United
 States or a U.S. Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) such
 registration is effected in accordance with the Internal Procedures of the Depository and
 the Warrant Agent, following
which, Warrants for those holders requesting the same shall be registered and issued to the beneficial owners of such Warrants or their
nominees as directed by the holder. The Company shall provide a certificate executed by an officer of the Company giving notice to the
Warrant Agent of the occurrence of any event outlined in this Section 2.6(2).

(3) Subject
 to the provisions of this Section 2.6, any exchange of CDS Global Warrants for Warrants which
 are not CDS Global Warrants may be made in whole or in part in accordance with the provisions
 of Section 2.11, mutatis mutandis. All such Warrants issued in exchange for a CDS Global
 Warrant or any portion thereof shall be registered in such names as the Depository for such
 CDS Global Warrants shall direct and shall be entitled to the same benefits and be subject
 to the same terms and conditions (except insofar as they relate specifically to CDS Global
 Warrants) as the CDS Global Warrants or portion thereof surrendered upon such exchange.

(4) Every
 Warrant that is Authenticated upon registration or transfer of a CDS Global Warrant, or in
 exchange for or in lieu of a CDS Global Warrant or any portion thereof, whether pursuant
 to this Section 2.6, or otherwise, shall be Authenticated in the form of, and shall be, a
 CDS Global Warrant, unless such Warrant is registered in the name of a person other than
 the Depository for such CDS Global Warrant or a nominee thereof.

(5) Notwithstanding
 anything to the contrary in this Indenture, subject to Applicable Legislation, the CDS Global
 Warrant will be issued as an Uncertificated Warrant, unless otherwise requested in writing
 by the Depository or the Company.

(6) The
 rights of beneficial owners of Warrants who hold securities entitlements in respect of the
 Warrants through the book entry registration system shall be limited to those established
 by applicable law and agreements between the Depository and the Book Entry Participants and
 between such Book Entry Participants and the beneficial owners of Warrants who hold securities
 entitlements in respect of the Warrants through the book entry registration system, and such
 rights must be exercised through a Book Entry Participant in accordance with the rules and
 procedures of the Depository.

(7) Notwithstanding
 anything herein to the contrary, neither the Company nor the Warrant Agent nor any agent
 thereof shall have any responsibility or liability for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 electronic records maintained by the Depository relating to any ownership interests or any
 other interests in the Warrants or the depository system maintained by the Depository, or
 payments made on account of any ownership interest or any other interest of any person in
 any Warrant represented by an electronic position in the book entry registration system (other
 than the Depository or its nominee);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) maintaining,
 supervising or reviewing any records of the Depository or any Book Entry Participant relating
 to any such interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 advice or representation made or given by the Depository or those contained herein that relate
 to the rules and regulations of the Depository or any action to be taken by the Depository
 on its own direction or at the direction of any Book Entry Participant.

(8) The
 Company may terminate the application of this Section 2.6 in its sole discretion in which
 case all Warrants shall be evidenced by Warrant Certificates registered in the name of a
 Person other than the Depository.

Section 2.7 Warrant Certificate.

(1) For
 Warrants issued in certificated form, the form of certificate representing such Warrants
 shall be substantially as set out in Schedule "A" hereto or such other form as
 is authorized from time to time by the Warrant Agent. Each Warrant Certificate shall be Authenticated
 on behalf of the Warrant Agent. Each Warrant Certificate shall be signed by any two duly
 authorized signatories of the Company; whose signature shall appear on the Warrant Certificate
 and may be printed, lithographed or otherwise mechanically reproduced thereon and, in such
 event, certificates so signed are as valid and binding upon the Company as if it had been
 signed manually. Any Warrant Certificate which has two signatures duly executed by the Company
 as hereinbefore provided shall be valid notwithstanding that one or more of the persons whose
 signature is printed, lithographed or mechanically reproduced no longer holds office at the
 date of issuance of such Warrant Certificate. The Warrant Certificates may be engraved, printed
 or lithographed, or partly in one form and partly in another, as the Warrant Agent may determine.

(2) The
 Warrant Agent shall Authenticate Uncertificated Warrants (whether upon original issuance,
 exchange, registration of transfer, partial payment, or otherwise) by completing its Internal
 Procedures and the Company shall, and hereby acknowledges that it shall, thereupon be deemed
 to have duly and validly issued such Uncertificated Warrants under this Indenture. Such Authentication
 shall be conclusive evidence that such Uncertificated Warrant has been duly issued hereunder
 and that the holder or holders are entitled to the benefits of this Indenture. The register
 shall be final and conclusive evidence as to all matters relating to Uncertificated Warrants
 with respect to which this Indenture requires the Warrant Agent to maintain records or accounts.
 In case of differences between the register at any time and any other time the register at
 the later time shall be controlling, absent manifest error and such Uncertificated Warrants
 are binding on the Company.

(3) Any
 Warrant Certificate validly issued in accordance with the terms of this Indenture in effect
 at the time of issue of such Warrant Certificate shall, subject to the terms of this Indenture
 and Applicable Legislation, validly entitle the holder to acquire Warrant Shares, notwithstanding
 that the form of such Warrant Certificate may not be in the form currently required by this
 Indenture.

(4) No
 Warrant shall be considered issued and shall be valid or obligatory or shall entitle the
 holder thereof to the benefits of this Indenture, until it has been Authenticated by the
 Warrant Agent. Authentication by the Warrant Agent, including by way of entry on the register,
 shall not be construed as a representation or warranty by the Warrant Agent as to the validity
 of this Indenture or of such Warrant Certificates or Uncertificated Warrants (except
the due Authentication thereof) or as to the performance by the Company of its obligations under this Indenture and the Warrant Agent
shall in no respect be liable or answerable for the use made of the Warrants or any of them or of the consideration thereof. Authentication
by the Warrant Agent shall be conclusive evidence as against the Company that the Warrants so Authenticated have been duly issued and
that the holder thereof is entitled to the benefits of this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) No
 Warrant Certificate shall be considered issued and Authenticated or, if Authenticated, shall
 be obligatory or shall entitle the holder thereof to the benefits of this Indenture, until
 it has been Authenticated by manual signature by or on behalf of the Warrant Agent substantially
 in the form of the Warrant set out in Schedule "A" hereto. Such Authentication
 on any such Warrant Certificate shall be conclusive evidence that such Warrant Certificate
 is duly Authenticated and is valid and a binding obligation of the Company and that the holder
 is entitled to the benefits of this Indenture.

(6) No
 Uncertificated Warrant shall be considered issued and shall be obligatory or shall entitle
 the holder thereof to the benefits of this Indenture, until it has been Authenticated by
 entry on the register of the particulars of the Uncertificated Warrant. Such entry on the
 register of the particulars of an Uncertificated Warrant shall be conclusive evidence that
 such Uncertificated Warrant is a valid and binding obligation of the Company and that the
 holder is entitled to the benefits of this Indenture.

Section 2.8 Legends.

(1) Neither
 the Warrants nor the Warrant Shares have been or will be registered under the U.S. Securities
 Act or under any United States state securities laws. If required under United States securities
 laws, Warrant Certificates originally issued for the benefit or account of a U.S. Warrantholder
 and each Warrant Certificate issued in exchange therefor or in substitution thereof shall
 bear or be deemed to bear the following legends or such variations thereof as the Company
 may prescribe from time to time:

"THIS WARRANTS AND THE SECURITIES DELIVERABLE UPON THE EXERCISE THEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS, AND MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO VERSES TECHNOLOGIES INC. (THE "CORPORATION") (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, A LEGAL OPINION SATISFACTORY TO THE CORPORATION MUST FIRST BE PROVIDED TO ENDEAVOR TRUST CORPORATION TO THE EFFECT THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

THE SECURITIES EVIDENCED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OR U.S. STATE SECURITIES LAWS. THESE WARRANTS MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON UNLESS THIS SECURITY AND THE CLASS A SUBORDINATE VOTING SHARES ISSUABLE UPON EXERCISE OF THIS SECURITY HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LEGISLATION OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.";

provided that, if the Warrants are being sold outside the United States in accordance with Rule 904 of Regulation S under the U.S. Securities Act, and if the Company is a "foreign issuer" within the meaning of Regulation S at the time of sale, this legend may be removed by the transferor providing a declaration to the Warrant Agent in the form set forth in Schedule "C" attached hereto or as the Warrant Agent or the Company may prescribe from time to time, and if required by the Warrant Agent, including an opinion of counsel, of recognised standing reasonably satisfactory to the Company and the Warrant Agent, that the proposed transfer may be effected without registration under the U.S. Securities Act.

The Warrant Agent shall be entitled to request any other documents that it may require in accordance with its internal policies for the removal of the legend set forth above.

(2) Each
 CDS Global Warrant, if issued on a certificated basis, originally issued in Canada and held
 by the Depository, and each CDS Global Warrant issued in exchange therefor or in substitution
 thereof shall bear or be deemed to bear the following legend or such variations thereof as
 the Company may prescribe from time to time:

"UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY SERVICES INC. ("CDS") TO VERSES TECHNOLOGIES INC. (THE "ISSUER") OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF IS REGISTERED IN THE NAME OF CDS & CO, OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS (AND ANY PAYMENT IS MADE TO CDS & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED HOLDER HEREOF, CDS & CO., HAS A PROPERTY INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE HEREIN AND IT IS A VIOLATION OF ITS RIGHTS FOR ANOTHER PERSON TO HOLD, TRANSFER OR DEAL WITH THIS CERTIFICATE."

(3) Notwithstanding
 any other provisions of this Indenture, in processing and registering transfers of Warrants,
 no duty or responsibility whatsoever shall rest upon the Warrant Agent to determine the compliance
 by any transferor or transferee with the terms of the legend contained in Section 2.8(1)
 or Section 2.8(2), or with the relevant securities laws or regulations, including, without
 limitation, Regulation S, and the Warrant Agent shall be entitled to assume that all transfers
 are legal and proper.

Section 2.9 Register of Warrants

(1) The
 Warrant Agent shall maintain records and accounts concerning the Warrants, whether certificated
 or uncertificated, which shall contain the information called for below with respect to each
 Warrant, together with such other information as may be required by law or as the Warrant
 Agent may elect to record. All such information shall be kept in one set of accounts and
 records which the Warrant Agent shall designate (in such manner as shall permit it to be
 so identified as such by an unaffiliated party) as the register of the holders of Warrants.
 The information to be entered for each account in the register of Warrants at any time shall
 include (without limitation):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 name, address and e-mail address (if available) of the Registered Warrantholder, the date
 of Authentication thereof and the number of Warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whether
 such Warrant is a Warrant Certificate or an Uncertificated Warrant and, if a Warrant Certificate,
 the unique number or code assigned to and imprinted thereupon and, if an Uncertificated Warrant,
 the unique number or code assigned thereto if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) whether
 such Warrant has been cancelled;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a
 register of transfers in which all transfers of Warrants and the date and other particulars
 of each transfer shall be entered; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) if
 any portion thereof has been exercised, the date of such exercise, and the remaining balance
 of such Warrants.

The register shall be available for inspection by the Company and or any Warrantholder during the Warrant Agent's regular business hours on a Business Day and upon payment to the Warrant Agent of its reasonable fees. Any Warrantholder exercising such right of inspection shall first provide an affidavit in form satisfactory to the Company and the Warrant Agent stating the name and address of the Warrantholder and agreeing not to use the information therein except in connection with an effort to call a meeting of Warrantholders or to influence the voting of Warrantholders at any meeting of Warrantholders.

(2) Once
 an Uncertificated Warrant has been Authenticated, the information set forth in the register
 with respect thereto at the time of Authentication may be altered, modified, amended, supplemented
 or otherwise changed only to reflect exercise or proper instructions to the Warrant Agent
 from the holder as provided herein, except that the Warrant Agent may act unilaterally to
 make purely administrative changes internal to the Warrant Agent and changes to correct errors.
 Each person who becomes a holder of an Uncertificated Warrant, by his, her or its acquisition
 thereof shall be deemed to have irrevocably (i) consented to the foregoing authority of the
 Warrant Agent to make such minor error corrections and (ii) agreed to
pay to the Warrant Agent, promptly upon written demand, the full amount of all loss and expense (including without limitation reasonable
legal fees of the Company and the Warrant Agent plus interest, at an appropriate then prevailing rate of interest to the Warrant Agent),
sustained by the Company or the Warrant Agent as a proximate result of such error if but only if and only to the extent that such present
or former holder realized any benefit as a result of such error and could reasonably have prevented, forestalled or minimized such loss
and expense by prompt reporting of the error or avoidance of accepting benefits thereof whether or not such error is or should have been
timely detected and corrected by the Warrant Agent; provided, that no person who is a bona fide purchaser shall have any such obligation
to the Company or to the Warrant Agent.

Section 2.10 Issue in Substitution for Warrant Certificates Lost, etc.

(1) If
 any Warrant Certificate becomes mutilated or is lost, destroyed or stolen, the Company, subject
 to applicable law, shall issue and thereupon the Warrant Agent shall certify and deliver,
 a new Warrant Certificate of like tenor, and bearing the same legend, if applicable, as the
 one mutilated, lost, destroyed or stolen in exchange for and in place of and upon cancellation
 of such mutilated Warrant Certificate, or in lieu of and in substitution for such lost, destroyed
 or stolen Warrant Certificate, and the substituted Warrant Certificate shall be in a form
 approved by the Warrant Agent and the Warrants evidenced thereby shall be entitled to the
 benefits hereof and shall rank equally in accordance with its terms with all other Warrants
 issued or to be issued hereunder.

(2) The
 applicant for the issue of a new Warrant Certificate pursuant to this Section 2.10 shall
 bear the cost of the issue thereof and in case of loss, destruction or theft shall, as a
 condition precedent to the issuance thereof, furnish to the Company and to the Warrant Agent
 such evidence of ownership and of the loss, destruction or theft of the Warrant Certificate
 so lost, destroyed or stolen as shall be satisfactory to the Company and to the Warrant Agent,
 in their sole discretion, and such applicant shall also be required to furnish an indemnity
 and surety bond in amount and form satisfactory to the Company and the Warrant Agent, in
 their sole discretion, and shall pay the reasonable charges of the Company and the Warrant
 Agent in connection therewith.

Section 2.11 Exchange of Warrant Certificates.

(1) Any
 one or more Warrant Certificates representing any number of Warrants may, upon compliance
 with the reasonable requirements of the Warrant Agent (including compliance with applicable
 securities legislation), be exchanged for one or more other Warrant Certificates representing
 the same aggregate number of Warrants, and bearing the same legend, if applicable, as represented
 by the Warrant Certificate or Warrant Certificates so exchanged.

(2) Warrant
 Certificates may be exchanged only at the Warrant Agency or at any other place that is designated
 by the Company with the approval of the Warrant Agent. Any Warrant Certificate from the holder
 (or such other instructions, in form satisfactory to the Warrant Agent), tendered for exchange
 shall be surrendered to the Warrant Agency and cancelled by the Warrant Agent.

(3) Warrant
 Certificates exchanged for Warrant Certificates that bear the legend set forth in Section
 2.8(1) shall bear the same legend.

Section 2.12 Transfer and Ownership of Warrants.

(1) The
 Warrants may only be transferred on the register kept by the Warrant Agent at the Warrant
 Agency by the holder or its legal representatives or its attorney duly appointed by an instrument
 in writing in form and execution satisfactory to the Warrant Agent only upon (a) in the case
 of a Warrant Certificate, surrendering to the Warrant Agent at the Warrant Agency the Warrant
 Certificates representing the Warrants to be transferred together with a duly executed transfer
 form as set forth in Schedule "A" attached hereto, (b) in the case of Book Entry
 Warrants, in accordance with procedures prescribed by the Depository under the book entry
 registration system, and (c) upon compliance with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 conditions herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such
 reasonable requirements as the Warrant Agent may prescribe; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all
 applicable securities legislation and requirements of regulatory authorities;

and such transfer shall be duly noted in such register by the Warrant Agent. Upon compliance with such requirements, the Warrant Agent shall issue to the transferee of a Warrant Certificate, a Warrant Certificate and to the transferee of an Uncertificated Warrant, an Uncertificated Warrant, or the Warrant Agent shall Authenticate and deliver a Warrant Certificate upon request that part of the CDS Global Warrant be certificated. Transfers within the systems of the Depository are not the responsibility of the Warrant Agent and will not be noted on the register maintained by the Warrant Agent.

(2) If
 a Warrant Certificate tendered for transfer bears any of the legends set forth in Section
 2.8(1), the Warrant Agent shall not register such transfer unless the transferor has provided
 the Warrant Agent with the Warrant Certificate and (A) the transfer is made to the Company
 or (B) a declaration to the effect set forth in Schedule "C" to this Warrant
 Indenture, or in such other form as the Company may from time to time prescribe, is delivered
 to the Warrant Agent, and if required by the Warrant Agent, the transferor provides an opinion
 of counsel of recognized standing, reasonably satisfactory to the Company and the Warrant
 Agent that the proposed transfer is exempt from registration with applicable state laws and
 the U.S. Securities Act and that such legends may be removed.

(3) Subject
 to the provisions of this Indenture, Applicable Legislation and applicable law, the Warrantholder
 shall be entitled to the rights and privileges attaching to the Warrants, and the issue of
 Warrant Shares by the Company upon the exercise of Warrants in accordance with the terms
 and conditions herein contained shall discharge all responsibilities of the Company and the
 Warrant Agent with respect to such Warrants and neither the Company nor the Warrant Agent
 shall be bound to inquire into the title of any such holder.

Section 2.13 Cancellation of Surrendered Warrants.

All Warrant Certificates surrendered pursuant to Article 3 shall be cancelled by the Warrant Agent and upon such circumstances all such Uncertificated Warrants shall be deemed cancelled and so noted on the register by the Warrant Agent. Upon request by the Company, the Warrant Agent shall furnish to the Company a cancellation certificate identifying the Warrant Certificates so cancelled, the number of Warrants evidenced thereby, the number of Warrant Shares, if any, issued pursuant to such Warrants and the details of any Warrant Certificates issued in substitution or exchange for such Warrant Certificates cancelled.

**ARTICLE 3**

**EXERCISE OF WARRANTS**

Section 3.1 Right of Exercise.

Subject to the provisions hereof, each Registered Warrantholder may exercise the right conferred on such holder to subscribe for and purchase one Warrant Share for each Warrant after the applicable Issue Date and prior to the Expiry Time and in accordance with the conditions herein.

Section 3.2 Warrant Exercise.

(1) Other
 than Warrants held by the Depository, Registered Warrantholders of Warrant Certificates who
 wish to exercise the Warrants held by them in order to acquire Warrant Shares must complete
 the exercise form (the "**Exercise Notice**") attached to the Warrant Certificate(s)
 which form is attached hereto as Schedule "B", which may be amended by the Company
 with the consent of the Warrant Agent, if such amendment does not, in the reasonable opinion
 of the Company and the Warrant Agent, which may be based on the advice of Counsel, materially
 and adversely affect the rights, entitlements and interests of the Warrantholders, and deliver
 such certificate(s), the executed Exercise Notice and a certified cheque, bank draft or money
 order payable to or to the order of the Company for the aggregate Exercise Price to the Warrant
 Agent at the Warrant Agency. The Warrants represented by a Warrant Certificate shall be deemed
 to be surrendered upon personal delivery of such certificate, Exercise Notice and aggregate
 Exercise Price or, if such documents are sent by mail or other means of transmission, upon
 actual receipt thereof by the Warrant Agent at the office referred to above.

(2) In
 addition to completing the Exercise Notice attached to the Warrant Certificate(s), a Warrantholder
 who is a person in the United States, a U.S. Person, a person exercising for the account
 or benefit of a U.S. Person, or person requesting delivery of the Warrant Shares issuable
 upon the exercise of the Warrants in the United States must (a) provide a completed and executed
 U.S. Purchaser Letter or (b) an opinion of counsel of recognised standing in form and substance
 reasonably satisfactory to the Company and the Warrant Agent that the exercise is exempt
 from the registration requirements of applicable securities laws of any state of the United
 States and the U.S. Securities Act; *provided however* that in the case of a Warrantholder
 that is the original purchaser of Warrants and who delivered the U.S. Accredited Investor
 Certificate attached to the subscription agreement of the Company in connection with its
 purchase of Warrants pursuant to the applicable private placement offering under which the
 Warrants were issued, such Warrantholder will not be required to deliver
a U.S. Purchaser Letter or an opinion of counsel in connection with the due exercise of the Warrant at a time when the representations,
warranties and covenants made by the Warrantholder in the U.S. Accredited Investor Certificate remain true and correct and the Warrantholder
represents to the Company as such.

(3) A
 Registered Warrantholder of Uncertificated Warrants evidenced by a security entitlement in
 respect of Warrants must complete the Exercise Notice and deliver the executed Exercise Notice
 and a certified cheque, bank draft or money order payable to or to the order of the Company
 for the aggregate Exercise Price to the Warrant Agent at the Warrant Agency. The Uncertificated
 Warrants shall be deemed to be surrendered upon receipt of the Exercise Notice and aggregate
 Exercise Price or, if such documents are sent by mail or other means of transmission, upon
 actual receipt thereof by the Warrant Agent at the office referred to above.

(4) A
 beneficial owner of Uncertificated Warrants evidenced by a security entitlement in respect
 of Warrants in the book entry registration system who desires to exercise his or her Warrants
 must do so by causing a Book Entry Participant to deliver to the Depository on behalf of
 the entitlement holder, notice of the owner's intention to exercise Warrants in a manner
 acceptable to the Depository. Forthwith upon receipt by the Depository of such notice, as
 well as payment for the aggregate Exercise Price, the Depository shall deliver to the Warrant
 Agent confirmation of its intention to exercise Warrants (a "**Confirmation** ")
 in a manner acceptable to the Warrant Agent, including by electronic means through a book
 based registration system, including CDSX. An electronic exercise of the Warrants initiated
 by the Book Entry Participant through a book based registration system, including CDSX, shall
 constitute a representation to both the Company and the Warrant Agent that the beneficial
 owner at the time of exercise of such Warrants (a) is not in the United States; (b) is not
 a U.S. Person and is not exercising such Warrants on behalf of a U.S. Person or a person
 in the United States; and (c) did not execute or deliver the notice of the owner's
 intention to exercise such Warrants in the United States. If the Book Entry Participant is
 not able to make or deliver the foregoing representations by initiating the electronic exercise
 of the Warrants, then such Warrants shall be withdrawn from the book based registration system,
 including CDSX, by the Book Entry Participant and an individually registered Warrant Certificate
 shall be issued by the Warrant Agent to such beneficial owner or Book Entry Participant and
 the exercise procedures set forth in Section 3.2(1) shall be followed.

(5) Payment
 representing the aggregate Exercise Price must be provided to the appropriate office of the
 Book Entry Participant in a manner acceptable to it. A notice in form acceptable to the Book
 Entry Participant and payment from such beneficial holder should be provided to the Book
 Entry Participant suffi **c** iently in advance so as to permit the Book Entry Participant
 to deliver notice and payment to the Depository and for the Depository in turn to deliver
 notice and payment to the Warrant Agent prior to the Expiry Time. The Depository will initiate
 the exercise by way of the Confirmation and forward the aggregate Exercise Price electronically
 to the Warrant Agent and the Warrant Agent will execute the exercise by issuing to the Depository
 through the book entry registration system the Warrant Shares to which the exercising Warrantholder
 is entitled pursuant to the exercise. Any expense associated with the exercise process will
 be for the account of the entitlement holder exercising the Warrants and/or the Book Entry
 Participant exercising the Warrants on its behalf.

(6) By
 causing a Book Entry Participant to deliver notice to the Depository, a Warrantholder shall
 be deemed to have irrevocably surrendered his or her Warrants so exercised and appointed
 such Book Entry Participant to act as his or her exclusive settlement agent with respect
 to the exercise and the receipt of Warrant Shares in connection with the obligations arising
 from such exercise.

(7) Any
 notice which the Depository determines to be incomplete, not in proper form or not duly executed
 shall for all purposes be void and of no force and effect and the exercise to which it relates
 shall be considered for all purposes not to have been exercised thereby. A failure by a Book
 Entry Participant to exercise or to give effect to the settlement thereof in accordance with
 the Warrantholder's instructions will not give rise to any obligations or liability
 on the part of the Company or Warrant Agent to the Book Entry Participant or the Warrantholder.

(8) The
 Exercise Notice referred to in this Section 3.2 shall be signed by the Registered Warrantholder,
 or its executors or administrators or other legal representatives or an attorney of the Registered
 Warrantholder, duly appointed by an instrument in writing satisfactory to the Warrant Agent
 but such Exercise Notice need not be executed by the Depository.

(9) Any
 exercise referred to in this Section 3.2 shall require that the entire Exercise Price for
 Warrant Shares subscribed must be paid at the time of subscription and such Exercise Price
 and original Exercise Notice executed by the Registered Warrantholder or the Confirmation
 from the Depository must be received by the Warrant Agent prior to the Expiry Time.

(10) Warrants
 may only be exercised pursuant to this Section 3.2 by or on behalf of a Registered Warrantholder,
 as applicable, who makes the certifications set forth on the Exercise Notice set out in Schedule
 "B" or as provided herein.

(11) If
 the form of Exercise Notice set forth in the Warrant Certificate shall have been amended,
 the Company shall cause the amended Exercise Notice to be forwarded to all Registered Warrantholders.

(12) Exercise
 Notices and Confirmations must be delivered to the Warrant Agent at any time during the Warrant
 Agent's actual business hours on any Business Day prior to the Expiry Time. Any Exercise
 Notice or Confirmations received by the Warrant Agent after business hours on any Business
 Day other than the Expiry Date will be deemed to have been received by the Warrant Agent
 on the next following Business Day.

(13) Any
 Warrant with respect to which a Confirmation or Exercise Notice is not received by the Warrant
 Agent before the Expiry Time shall be deemed to have expired and become void and all rights
 with respect to such Warrants shall terminate and be cancelled.

Section 3.3 Prohibition on Exercise by U.S. Persons; Legended Certificates

(1) The
 Warrants have not been and will not be registered under the U.S. Securities Act or any United
 States state securities laws and may not be exercised in the United States or by or on behalf
 of, or for the account or benefit of, a U.S. Persons or a person in the United States unless
 an exemption from such registration requirements is available.

(2) Warrants
 may not be exercised except in compliance with the requirements set forth herein, in the
 Warrant Certificate and in the Exercise Notice attached thereto.

(3) Certificates
 representing Warrant Shares issued upon the exercise of Warrants which bear the legend set
 forth in Section 2.8(1) or which are issued and delivered pursuant to Section 3.3(2) shall
 bear the following legend:

"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS, AND MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO VERSES TECHNOLOGIES INC. (THE "CORPORATION") (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, A LEGAL OPINION SATISFACTORY TO THE CORPORATION MUST FIRST BE PROVIDED TO ENDEAVOR TRUST CORPORATION TO THE EFFECT THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA. PROVIDED THAT THE CORPORATION IS A "FOREIGN ISSUER" WITHIN THE MEANING OF REGULATION S UNDER THE U.S. SECURITIES ACT A THE TIME OF SALE, A NEW CERTIFICATE BEARING NO LEGEND, MAY BE OBTAINED FROM THE CORPORATION'S TRANSFER AGENT UPON DELIVERY OF THIS CERTIFICATE AND A DULY EXECUTED DECLARATION, IN A FORM SATISFACTORY TO THE CORPORATION'S TRANSFER AGENT AND THE CORPORATION TO THE EFFECT THAT THE SALE OF THE SECURITIES REPRESENTED HEREBY IS BEING MADE IN COMPLIANCE WITH RULE 904 OF REGULATION S OF THE U.S. SECURITIES ACT. THE CORPORATION'S TRANSFER AGENT MAY REQUIRE AN OPINION OF COUNSEL, OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO IT, IN CONNECTION WITH ANY OFFER, SALE OR TRANSFER OF THE SECURITIES BY THE HOLDER HEREOF."

Section 3.4 Transfer Fees and Taxes.

If any of the Warrant Shares subscribed for are to be issued to a person or persons other than the Registered Warrantholder, the Registered Warrantholder shall execute the form of transfer and will comply with such reasonable requirements as the Warrant Agent may stipulate and will pay to the Company or the Warrant Agent on behalf of the Company, all applicable transfer or similar taxes and the Company will not be required to issue or deliver certificates evidencing Warrant Shares unless or until such Warrantholder shall have paid to the Company or the Warrant Agent on behalf of the Company, the amount of such tax or shall have established to the satisfaction of the Company and the Warrant Agent that such tax has been paid or that no tax is due.

Section 3.5 Warrant Agency.

To facilitate the exchange, transfer or exercise of Warrants and compliance with such other terms and conditions hereof as may be required, the Company has appointed the Warrant Agency, as the agency at which Warrants may be surrendered for exchange or transfer or at which Warrants may be exercised and the Warrant Agent has accepted such appointment. The Company may from time to time designate alternate or additional places as the Warrant Agency (subject to the Warrant Agent's prior approval) and will give notice to the Warrant Agent of any proposed change of the Warrant Agency. Branch registers shall also be kept at such other place or places, if any, as the Company, with the approval of the Warrant Agent, may designate. The Warrant Agent will from time to time when requested to do so by the Company or any Registered Warrantholder, upon payment of the Warrant Agent's reasonable charges, furnish a list of the names and addresses of Registered Warrantholders showing the number of Warrants held by each such Registered Warrantholder.

Section 3.6 Effect of Exercise of Warrant Certificates.

(1) Upon
 the exercise of Warrants Certificates pursuant to and in compliance with Section 3.2 and
 subject to Section 3.3 and Section 3.4, the Warrant Shares to be issued pursuant to the Warrants
 exercised shall be deemed to have been issued and the person or persons to whom such Warrant
 Shares are to be issued shall be deemed to have become the holder or holders of such Warrant
 Shares within five Business Days of the Exercise Date unless the register shall be closed
 on such date, in which case the Warrant Shares subscribed for shall be deemed to have been
 issued and such person or persons deemed to have become the holder or holders of record of
 such Warrant Shares, on the date on which such register is reopened. It is hereby understood
 that in order for persons to whom Warrant Shares are to be issued, to become holders of Warrant
 Shares on record on the Exercise Date, beneficial holders must commence the exercise process
 sufficiently in advance so that the Warrant Agent is in receipt of all items of exercise
 at least one Business Day prior to such Exercise Date.

(2) Within
 five Business Days after the Exercise Date with respect to a Warrant, the Warrant Agent shall
 use commercially reasonable efforts to cause to be delivered or mailed to the person or persons
 in whose name or names the Warrant is registered or, if so specified in writing by the holder,
 cause to be delivered to such person or persons at the Warrant Agency where the Warrant Certificate
 was surrendered, a certificate or certificates for the appropriate number of Warrant Shares
 subscribed for, or any other appropriate evidence of the issuance of Warrant Shares to such
 person or persons in respect of Warrant Shares issued under the book entry registration system.

Section 3.7 Partial Exercise of Warrants; Fractions.

(1) The
 holder of any Warrants may exercise his right to acquire a number of whole Warrant Shares
 less than the aggregate number which the holder is entitled to acquire. In the event of any
 exercise of a number of Warrants less than the number which the holder is entitled to exercise,
 the holder of Warrants upon such exercise shall, in addition, be entitled to receive, without
 charge therefor, a new Warrant Certificate(s), bearing the same legend, if applicable, or
 other appropriate evidence of Warrants, in respect of the balance of the Warrants held by
 such holder and which were not then exercised.

(2) Notwithstanding
 anything herein contained including any adjustment provided for in Section 4.1, the Company
 shall not be required, upon the exercise of any Warrants, to issue fractions of Warrant Shares.
 Warrants may only be exercised in a sufficient number to acquire whole numbers of Warrant
 Shares. Any fractional Warrant Shares shall be rounded down to the nearest whole number and
 the holder of such Warrants shall not be entitled to any compensation in respect of any fractional
 Warrant Shares which is not issued.

Section 3.8 Expiration of Warrants.

Immediately after the Expiry Time, all rights under any Warrant in respect of which the right of acquisition provided for herein shall not have been exercised shall cease and terminate and each Warrant shall be void and of no further force or effect.

Section 3.9 Accounting and Recording.

(1) The
 Warrant Agent shall promptly account to the Company with respect to Warrants exercised, and
 shall promptly forward to the Company (or into an account or accounts of the Company with
 the bank or trust company designated by the Company for that purpose), all monies received
 by the Warrant Agent on the subscription of Warrant Shares through the exercise of Warrants.
 All such monies and any securities or other instruments, from time to time received by the
 Warrant Agent, shall be received in trust for, and shall be segregated and kept apart by
 the Warrant Agent, the Warrantholders and the Company as their interests may appear.

(2) The
 Warrant Agent shall record the particulars of Warrants exercised, which particulars shall
 include the names and addresses of the persons who become holders of Warrant Shares on exercise
 and the Exercise Date, in respect thereof. The Warrant Agent shall provide such particulars
 in writing to the Company within five Business Days of any request by the Company therefor.

**Section 3.10 Securities Restrictions.**

Notwithstanding anything herein contained, Warrant Shares will be issued upon exercise of a Warrant only in compliance with the securities laws of any applicable jurisdiction.

**ARTICLE 4**

**ADJUSTMENT OF NUMBER OF WARRANT SHARES AND EXERCISE PRICE**

Section 4.1 Adjustment of Number of Warrant Shares and Exercise Price.

The subscription rights in effect under the Warrants for Warrant Shares issuable upon the exercise of the Warrants shall be subject to adjustment from time to time as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if,
 at any time during the Adjustment Period, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) subdivide,
 re-divide or change its outstanding Class A Shares into a greater number of Class A Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) reduce,
 combine or consolidate its outstanding Class A Shares into a lesser number of Class A Shares;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) issue
 Class A Shares or securities exchangeable for, or convertible into, Class A Shares to all
 or substantially all of the holders of Class A Shares by way of stock dividend or other distribution
 (other than a distribution of Class A Shares upon the exercise of Warrants or any outstanding
 options);

(any of such events in Section 4.1(a) (i), (ii) or (iii) being called a "**Class A Share Reorganization**") then the Exercise Price shall be adjusted as of the effective date or record date of such Class A Share Reorganization, and shall in the case of the events referred to in (i) or (iii) above be decreased in proportion to the number of outstanding Class A Shares resulting from such subdivision, re-division, change or distribution, or shall, in the case of the events referred to in (ii) above, be increased in proportion to the number of outstanding Class A Shares resulting from such reduction, combination or consolidation by multiplying the Exercise Price in effect immediately prior to such effective date or record date by a fraction, the numerator of which shall be the number of Class A Shares outstanding on such effective date or record date before giving effect to such Class A Share Reorganization and the denominator of which shall be the number of Class A Shares outstanding as of the effective date or record date after giving effect to such Class A Share Reorganization (including, in the case where securities exchangeable for or convertible into Class A Shares are distributed, the number of Class A Share that would have been outstanding had such securities been exchanged for or converted into Class A Shares on such record date or effective date). Such adjustment shall be made successively whenever any event referred to in this Section 4.1(a) shall occur. Upon any adjustment of the Exercise Price pursuant to Section 4.1(a), the Exchange Rate shall be contemporaneously adjusted by multiplying the number of Class A Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the Exercise Price in effect immediately prior to such adjustment and the denominator shall be the Exercise Price resulting from such adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if
 and whenever at any time during the Adjustment Period, the Company shall fix a record date
 for the issuance of rights, options or warrants to all or substantially all the holders of
 its outstanding Class A Shares entitling them, for a period expiring not more than 45 days
 after such record date, to subscribe for or purchase Class A Shares (or securities convertible
 or exchangeable into Class A Shares) at a price per Class A Share (or having a conversion
 or exchange price per Class A Share) less than 95% of the Current Market Price on such record
 date (a "**Rights Offering** "), the Exercise Price shall be adjusted immediately
 after such record date so that it shall equal the amount determined by multiplying the Exercise
 Price in effect on such record date by a fraction, of which the numerator shall be the total
 number of Class A Shares outstanding on such record date plus a number of Class A Shares
 equal to the number arrived at by dividing the aggregate price of the total number of additional
 Class A Shares offered for subscription or purchase (or the aggregate conversion or exchange
 price of the convertible or exchangeable securities so offered) by the Current Market Price,
 and of which the denominator shall be the total number of Class A Shares outstanding on such
 record date plus the total number of additional Class A Shares offered
for subscription or purchase or into which the convertible or exchangeable securities so offered are convertible or exchangeable; any
Class A Shares owned by or held for the account of the Company shall be deemed not to be outstanding for the purpose of any such computation;
such adjustment shall be made successively whenever such a record date is fixed; to the extent that no such rights or warrants are exercised
prior to the expiration thereof, the Exercise Price shall be readjusted to the Exercise Price which would then be in effect if such record
date had not been fixed or, if any such rights or warrants are exercised, to the Exercise Price which would then be in effect based upon
the number of Class A Shares (or securities convertible or exchangeable into Class A Shares) actually issued upon the exercise of such
rights or warrants, as the case may be. Upon any adjustment of the Exercise Price pursuant to this Section 4.1(b), the Exchange Rate
will be adjusted immediately after such record date so that it will equal the rate determined by multiplying the Exchange Rate in effect
on such record date by a fraction, of which the numerator shall be the Exercise Price in effect immediately prior to such adjustment
and the denominator shall be the Exercise Price resulting from such adjustment. Such adjustment will be made successively whenever such
a record date is fixed, provided that if two or more such record dates or record dates referred to in this Section 4.1(b) are fixed within
a period of 25 Trading Days, such adjustment will be made successively as if each of such record dates occurred on the earliest of such
record dates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if
 and whenever at any time during the Adjustment Period the Company shall fix a record date
 for the making of a distribution to all or substantially all the holders of its outstanding
 Class A Shares of (i) securities of any class, whether of the Company or any other entity
 (other than Class A Shares), (ii) rights, options or warrants to subscribe for or purchase
 Class A Shares (or other securities convertible into or exchangeable for Class A Shares),
 other than pursuant to a Rights Offering; (iii) evidences of its indebtedness or (iv) any
 property or other assets then, in each such case, the Exercise Price shall be adjusted immediately
 after such record date so that it shall equal the price determined by multiplying the Exercise
 Price in effect on such record date by a fraction, of which the numerator shall be the total
 number of Class A Shares outstanding on such record date multiplied by the Current Market
 Price on such record date, less the excess, if any, of the fair market value on such record
 date, as determined by the Company (whose determination shall be conclusive), of such securities
 or other assets so issued or distributed over the fair market value of any consideration
 received therefor by the Company from the holders of the Class A Shares, and of which the
 denominator shall be the total number of Class A Shares outstanding on such record date multiplied
 by the Current Market Price; and Class A Shares owned by or held for the account of the Company
 shall be deemed not to be outstanding for the purpose of any such computation; such adjustment
 shall be made successively whenever such a record date is fixed; to the extent that such
 distribution is not so made, the Exercise Price shall be readjusted to the Exercise Price
 which would then be in effect if such record date had not been fixed. Upon any adjustment
 of the Exercise Price pursuant to this Section 4.1(c), the Exchange Rate will be adjusted
 immediately after such record date so that it will equal the rate determined by multiplying
 the Exchange Rate in effect on such record date by a fraction, of which the numerator shall
 be the Exercise Price in effect immediately prior to such adjustment
and the denominator shall be the Exercise Price resulting from such adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if
 and whenever at any time during the Adjustment Period, there is a reclassification of the
 Class A Shares or a capital reorganization of the Company other than as described in Section
 4.1(a) or a consolidation, amalgamation, arrangement or merger of the Company with or into
 any other body corporate, trust, partnership or other entity, or a sale or conveyance of
 the property and assets of the Company as an entirety or substantially as an entirety to
 any other body corporate, trust, partnership or other entity, any Registered Warrantholder
 who has not exercised its right of acquisition prior to the effective date of such reclassification,
 capital reorganization, consolidation, amalgamation, arrangement or merger, sale or conveyance,
 upon the exercise of such right thereafter, shall be entitled to receive upon payment of
 the Exercise Price and shall accept, in lieu of the number of Warrant Shares that prior to
 such effective date the Registered Warrantholder would have been entitled to receive, the
 number of shares or other securities or property of the Company or of the body corporate,
 trust, partnership or other entity resulting from such merger, amalgamation or consolidation,
 or to which such sale or conveyance may be made, as the case may be, that such Registered
 Warrantholder would have been entitled to receive on such reclassification, capital reorganization,
 consolidation, amalgamation, arrangement or merger, sale or conveyance, if, on the effective
 date thereof, as the case may be, the Registered Warrantholder had been the registered holder
 of the number of Warrant Shares to which prior to such effective date it was entitled to
 acquire upon the exercise of the Warrants. If determined appropriate by the Warrant Agent,
 relying on advice of Counsel, to give effect to or to evidence the provisions of this Section
 4.1(d), the Company, its successor, or such purchasing body corporate, partnership, trust
 or other entity, as the case may be, shall, prior to or contemporaneously with any such reclassification,
 capital reorganization, consolidation, amalgamation, arrangement, merger, sale or conveyance,
 enter into an indenture which shall provide, to the extent possible, for the application
 of the provisions set forth in this Indenture with respect to the rights and interests thereafter
 of the Registered Warrantholders to the end that the provisions set forth in this Indenture
 shall thereafter correspondingly be made applicable, as nearly as may reasonably be, with
 respect to any shares, other securities or property to which a Registered Warrantholder is
 entitled on the exercise of its acquisition rights thereafter. Any indenture entered into
 between the Company and the Warrant Agent pursuant to the provisions of this Section 4.1(d)
 shall be a supplemental indenture entered into pursuant to the provisions of Article 8 hereof.
 Any indenture entered into between the Company, any successor to the Company or such purchasing
 body corporate, partnership, trust or other entity and the Warrant Agent shall provide for
 adjustments which shall be as nearly equivalent as may be practicable to the adjustments
 provided in this Section 4.1 and which shall apply to successive reclassifications, capital
 reorganizations, amalgamations, consolidations, mergers, sales or conveyances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in
 any case in which this Section 4.1 shall require that an adjustment shall become effective
 immediately after a record date for an event referred to herein, the Company may defer, until
 the occurrence of such event, issuing to the Registered Warrantholder
of any Warrant exercised after the record date and prior to completion of such event the additional Warrant Shares issuable by reason
of the adjustment required by such event before giving effect to such adjustment; provided, however, that the Company shall deliver to
such Registered Warrantholder an appropriate instrument evidencing such Registered Warrantholder's right to receive such additional
Class A Shares upon the occurrence of the event requiring such adjustment and the right to receive any distributions made on such additional
Class A Shares declared in favour of holders of record of Class A Shares on and after the relevant date of exercise or such later date
as such Registered Warrantholder would, but for the provisions of this Section 4.1(d), have become the holder of record of such additional
Class A Shares pursuant to Section 4.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) in
 any case in which Section 4.1(a)(iii), Section 4.1(b) or Section 4.1(c) require that an adjustment
 be made to the Exercise Price, no such adjustment shall be made if the Registered Warrantholders
 of the outstanding Warrants receive, subject to any required stock exchange or regulatory
 approval, the rights or warrants referred to in Section 4.1(a)(iii), Section 4.1(b) or the
 shares, rights, options, warrants, evidences of indebtedness or assets referred to in Section
 4.1(c), as the case may be, in such kind and number as they would have received if they had
 been holders of Class A Shares on the applicable record date or effective date, as the case
 may be, by virtue of their outstanding Warrant having then been exercised into Class A Shares
 at the Exercise Price in effect on the applicable record date or effective date, as the case
 may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the
 adjustments provided for in this Section 4.1 are cumulative, and shall, in the case of adjustments
 to the Exercise Price be computed to the nearest whole cent and shall apply to successive
 subdivisions, re-divisions, reductions, combinations, consolidations, distributions, issues
 or other events resulting in any adjustment under the provisions of this Section 4.1, provided
 that, notwithstanding any other provision of this Section, no adjustment of the Exercise
 Price shall be required unless such adjustment would require an increase or decrease of at
 least 1% in the Exercise Price then in effect; provided, however, that any adjustments which
 by reason of this Section 4.1(g) are not required to be made shall be carried forward and
 taken into account in any subsequent adjustment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) after
 any adjustment pursuant to this Section 4.1, the term "**Class A Shares** "
 where used in this Indenture shall be interpreted to mean securities of any class or classes
 which, as a result of such adjustment and all prior adjustments pursuant to this Section
 4.1, the Registered Warrantholder is entitled to receive upon the exercise of his Warrant,
 and the number of Warrant Shares indicated by any exercise made pursuant to a Warrant shall
 be interpreted to mean the number of Warrant Shares or other property or securities a Registered
 Warrantholder is entitled to receive, as a result of such adjustment and all prior adjustments
 pursuant to this Section 4.1, upon the full exercise of a Warrant.

Section 4.2 Entitlement to Warrant Shares on Exercise of Warrant.

All Class A Shares or shares of any class or other securities, which a Registered Warrantholder is at the time in question entitled to receive on the exercise of its Warrant, whether or not as a result of adjustments made pursuant to this Article 4, shall, for the purposes of the interpretation of this Indenture, be deemed to be Warrant Shares which such Registered Warrantholder is entitled to acquire pursuant to such Warrant.

Section 4.3 No Adjustment for Certain Transactions.

Notwithstanding anything in this Article 4, no adjustment shall be made in the acquisition rights attached to the Warrants if the issue of Class A Shares is being made pursuant to this Indenture or in connection with (a) any share incentive plan or restricted share plan or share purchase plan in force from time to time for directors, officers, employees, consultants or other service providers of the Company; or (b) the satisfaction of existing instruments issued at the date hereof.

Section 4.4 Determination by Independent Firm.

In the event of any question arising with respect to the adjustments provided for in this Article 4 such question shall be conclusively determined by an independent firm of chartered public accountants other than the Auditors, who shall have access to all necessary records of the Company, and such determination shall be binding upon the Company, the Warrant Agent, all holders and all other persons interested therein.

Section 4.5 Proceedings Prior to any Action Requiring Adjustment.

As a condition precedent to the taking of any action which would require an adjustment in any of the acquisition rights pursuant to any of the Warrants, including the number of Warrant Shares which are to be received upon the exercise thereof, the Company shall take any action which may, in the opinion of Counsel, be necessary in order that the Company has unissued and reserved in its authorized capital and may validly and legally issue as fully paid all the Warrant Shares which the holders of such Warrants are entitled to receive on the full exercise thereof in accordance with the provisions hereof.

Section 4.6 Certificate of Adjustment.

The Company shall from time to time immediately after the occurrence of any event which requires an adjustment or readjustment as provided in Section 4.1, deliver a certificate of the Company to the Warrant Agent specifying the nature of the event requiring the same and the amount of the adjustment or readjustment necessitated thereby and setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based, which certificate may be supported by a certificate of the Company's Auditors verifying such calculation if requested by the Warrant Agent at their discretion. The Warrant Agent shall rely, and shall be protected in so doing, upon the certificate of the Company or of the Company's Auditor and any other document filed by the Company pursuant to this Article 4 for all purposes.

Section 4.7 Notice of Special Matters.

The Company covenants with the Warrant Agent that, so long as any Warrant remains outstanding, it will give notice to the Warrant Agent and to the Registered Warrantholders of its intention to fix a record date that is prior to the Expiry Date for any matter for which an adjustment may be required pursuant to Section 4.1 Such notice shall specify the particulars of such event and the record date for such event, provided that the Company shall only be required to specify in the notice such particulars of the event as shall have been fixed and determined on the date on which the notice is given. The notice shall be given in each case not less than 14 days prior to such applicable record date. If notice has been given and the adjustment is not then determinable, the Company shall promptly, after the adjustment is determinable, file with the Warrant Agent a computation of the adjustment and give notice to the Registered Warrantholders of such adjustment computation.

Section 4.8 No Action after Notice.

The Company covenants with the Warrant Agent that it will not close its transfer books or take any other corporate action which might deprive the Registered Warrantholder of the opportunity to exercise its right of acquisition pursuant thereto during the period of 14 days after the giving of the certificate or notices set forth in Section 4.6 and Section 4.7.

Section 4.9 Other Action.

If the Company, after the date hereof, shall take any action affecting the Class A Shares other than action described in Section 4.1, which in the reasonable opinion of the directors of the Company would materially affect the rights of Registered Warrantholders, the Exercise Price and/or Exchange Rate, the number of Warrant Shares which may be acquired upon exercise of the Warrants shall be adjusted in such manner and at such time, by action of the directors, acting reasonably and in good faith, in their sole discretion as they may determine to be equitable to the Registered Warrantholders in the circumstances, provided that no such adjustment will be made unless any requisite prior approval of any stock exchange on which the Class A Shares are listed for trading has been obtained.

Section 4.10 Protection of Warrant Agent.

The Warrant Agent shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at
 any time be under any duty or responsibility to any Registered Warrantholder to determine
 whether any facts exist which may require any adjustment contemplated by Section 4.1, or
 with respect to the nature or extent of any such adjustment when made, or with respect to
 the method employed in making the same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be
 accountable with respect to the validity or value (or the kind or amount) of any Warrant
 Shares or of any other securities or property which may at any time be issued or delivered
 upon the exercise of the rights attaching to any Warrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) be
 responsible for any failure of the Company to issue, transfer or deliver Warrant Shares or
 certificates for the same upon the surrender of any Warrants for the purpose of the exercise
 of such rights or to comply with any of the covenants contained in this Article; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) incur
 any liability or be in any way responsible for the consequences of any breach on the part
 of the Company of any of the representations, warranties or covenants herein contained or
 of any acts of the directors, officers, employees, agents or servants of the Company.

Section 4.11 Participation by Warrantholder.

No adjustments shall be made pursuant to this Article 4 if the Registered Warrantholders are entitled to participate in any event described in this Article 4 on the same terms, mutatis mutandis, as if the Registered Warrantholders had exercised their Warrants prior to, or on the effective date or record date of, such event and any such participation will be subject to the prior approval of the NEO.

**ARTICLE 5**

**RIGHTS OF THE COMPANY AND COVENANTS**

Section 5.1 Optional Purchases by the Company.

Subject to compliance with applicable securities legislation and approval of applicable regulatory authorities, if any, the Company may from time to time purchase by private contract or otherwise any of the Warrants. Any such purchase shall be made at the lowest price or prices at which, in the opinion of the directors of the Company, such Warrants are then obtainable, plus reasonable costs of purchase, and may be made in such manner, from such persons and on such other terms as the Company, in its sole discretion, may determine. In the case of Warrant Certificates, Warrant Certificates representing the Warrants purchased pursuant to this Section 5.1 shall forthwith be delivered to and cancelled by the Warrant Agent and reflected accordingly on the register of Warrants. In the case of Uncertificated Warrants, the Warrants purchased pursuant to this Section 5.1 shall be reflected accordingly on the register of Warrants and in accordance with procedures prescribed by the Depository under the book entry registration system. No Warrants shall be issued in replacement thereof.

Section 5.2 General Covenants.

The Company covenants with the Warrant Agent that so long as any Warrants remain outstanding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 will cause the Warrant Shares from time to time acquired pursuant to the exercise of the
 Warrants to be duly issued and delivered in accordance with the Warrants and the terms hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all
 Warrant Shares which shall be issued upon exercise of the right to acquire provided for herein
 shall be fully paid and non-assessable, free and clear of all encumbrances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it
 will use reasonable commercial efforts to maintain its existence and carry on its business
 in the ordinary course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it
 will use reasonable commercial efforts to ensure that all Class A Shares outstanding or issuable
 from time to time (including without limitation the Warrant Shares issuable on the exercise
 of the Warrants) continue to be or are listed and posted for trading on the NEO (or such
 other Canadian stock exchange acceptable to the Company), provided that this clause shall
 not be construed as limiting or restricting the Company from completing a consolidation,
 amalgamation, arrangement, takeover bid or merger that would result in the Class A Shares
 ceasing to be listed and posted for trading on the NEO, so long as the holders of Class A
 Shares receive securities of an entity which is listed on a stock exchange in Canada, or
 cash, or the holders
of the Class A Shares have approved the transaction in accordance with the requirements of applicable corporate and securities laws and
the policies of the NEO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it
 will make all requisite filings under applicable Canadian securities legislation including
 those necessary to remain a reporting issuer not in default in each of the provinces and
 other Canadian jurisdictions where it is or becomes a reporting issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) generally,
 it will well and truly perform and carry out all of the acts or things to be done by it as
 provided in this Indenture; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the
 Company will promptly notify the Warrant Agent and the Warrantholders in writing of any default
 under the terms of this Warrant Indenture which remains unrectified for more than five days
 following its occurrence.

Section 5.3 Warrant Agent's Remuneration and Expenses.

The Company covenants that it will pay to the Warrant Agent from time to time reasonable remuneration for its services hereunder and will pay or reimburse the Warrant Agent upon its request for all reasonable expenses, disbursements and advances incurred or made by the Warrant Agent in the administration or execution of its duties hereby created (including the reasonable compensation and the disbursements of its Counsel and all other advisers and assistants not regularly in its employ) both before any default hereunder and thereafter until all duties of the Warrant Agent hereunder shall be finally and fully performed. Any amount owing hereunder and remaining unpaid after 30 days from the invoice date will bear interest at the then current rate charged by the Warrant Agent against unpaid invoices and shall be payable upon demand. This Section shall survive the resignation or removal of the Warrant Agent and/or the termination of this Indenture.

Section 5.4 Performance of Covenants by Warrant Agent.

If the Company shall fail to perform any of its covenants contained in this Indenture, the Warrant Agent may notify the Registered Warrantholders of such failure on the part of the Company and may itself perform any of the covenants capable of being performed by it but, subject to Section 9.2, shall be under no obligation to perform said covenants or to notify the Registered Warrantholders of such performance by it. All sums expended or advanced by the Warrant Agent in so doing shall be repayable as provided in Section 5.3. No such performance, expenditure or advance by the Warrant Agent shall relieve the Company of any default hereunder or of its continuing obligations under the covenants herein contained.

Section 5.5 Enforceability of Warrants.

The Company covenants and agrees that it has duly created and issued the Warrants to be governed hereunder and that the Warrants, when Authenticated as herein provided, will be valid and enforceable against the Company in accordance with the provisions hereof and the terms hereof and that, subject to the provisions of this Indenture, the Company will cause the Warrant Shares from time to time acquired upon exercise of Warrants issued under this Indenture to be duly issued and delivered in accordance with the terms of this Indenture.

**ARTICLE 6**

**ENFORCEMENT**

Section 6.1 Suits by Registered Warrantholders.

All or any of the rights conferred upon any Registered Warrantholder by any of the terms of this Indenture may be enforced by the Registered Warrantholder by appropriate proceedings but without prejudice to the right which is hereby conferred upon the Warrant Agent to proceed in its own name to enforce each and all of the provisions herein contained for the benefit of the Registered Warrantholders.

Section 6.2 Suits by the Company.

The Company shall have the right to enforce full payment of the Exercise Price of all Warrant Shares issued by the Warrant Agent to a Registered Warrantholder hereunder and shall be entitled to demand such payment from the Registered Warrantholder or alternatively to instruct the Warrant Agent to cancel the share certificates representing such Warrant Shares and amend the securities register of the Company accordingly.

Section 6.3 Immunity of Shareholders, etc.

Subject to Applicable Legislation, the Warrant Agent and, by the acceptance of the Warrants and as part of the consideration for the issue of the Warrants, the Warrantholders hereby waive and release any right, cause of action or remedy now or hereafter existing in any jurisdiction against any incorporator or any past, present or future shareholder, trustee, employee or agent of the Company or any successor entity on any covenant, agreement, representation or warranty by the Company herein.

Section 6.4 Waiver of Default.

Upon the happening of any default hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Registered Warrantholders of not less than 51% of the Warrants then outstanding shall have
 power (in addition to the powers exercisable by Extraordinary Resolution) by requisition
 in writing to instruct the Warrant Agent to waive any default hereunder and the Warrant Agent
 shall thereupon waive the default upon such terms and conditions as shall be prescribed in
 such requisition; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Warrant Agent shall have power to waive any default hereunder upon such terms and conditions
 as the Warrant Agent may deem advisable, on the advice of Counsel, if, in the Warrant Agent's
 opinion, based on the advice of Counsel, the same shall have been cured or adequate provision
 made therefor;

provided that no delay or omission of the Warrant Agent or of the Registered Warrantholders to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein and provided further that no act or omission either of the Warrant Agent or of the Registered Warrantholders in the premises shall extend to or be taken in any manner whatsoever to affect any subsequent default hereunder of the rights resulting therefrom.

**ARTICLE 7**

**MEETINGS OF REGISTERED WARRANTHOLDERS**

Section 7.1 Right to Convene Meetings.

The Warrant Agent may at any time and from time to time, and shall on receipt of a written request of the Company or of a Warrantholders' Request and upon being indemnified and funded to its reasonable satisfaction by the Company or by the Registered Warrantholders signing such Warrantholders' Request against the costs which may be incurred in connection with the calling and holding of such meeting, convene a meeting of the Registered Warrantholders. If the Warrant Agent fails to so call a meeting within seven days after receipt of such written request of the Company or within 30 days after receipt of such Warrantholders' Request and the indemnity and funding given as aforesaid, the Company or such Registered Warrantholders, as the case may be, may convene such meeting. Every such meeting shall be held in the City of Vancouver or at such other place as may be approved or determined by the Warrant Agent and the Company. Any meeting held pursuant to this Article 7 may be done through a virtual or electronic meeting platform, subject to the Warrant Agent's capabilities at the time.

Section 7.2 Notice.

At least 21 days' prior written notice of any meeting of Registered Warrantholders shall be given to the Registered Warrantholders in the manner provided for in Section 10.2 and a copy of such notice shall be sent by mail to the Warrant Agent (unless the meeting has been called by the Warrant Agent) and to the Company (unless the meeting has been called by the Company). Such notice shall state the time when and the place where the meeting is to be held, shall state briefly the general nature of the business to be transacted thereat and shall contain such information as is reasonably necessary to enable the Registered Warrantholders to make a reasoned decision on the matter, but it shall not be necessary for any such notice to set out the terms of any resolution to be proposed or any of the provisions of this Section 7.2.

Section 7.3 Chairman.

An individual (who need not be a Registered Warrantholder) designated in writing by the Warrant Agent shall be chairman of the meeting and if no individual is so designated, or if the individual so designated is not present within fifteen minutes from the time fixed for the holding of the meeting, the Registered Warrantholders present in person or by proxy shall choose an individual present to be chairman.

Section 7.4 Quorum.

Subject to the provisions of Section 7.11, at any meeting of the Registered Warrantholders a quorum shall consist of Registered Warrantholder(s) present in person or by proxy and entitled to purchase at least 50% of the aggregate number of Warrant Shares which may be acquired pursuant to all the then outstanding Warrants. If a quorum of the Registered Warrantholders shall not be present within thirty minutes from the time fixed for holding any meeting, the meeting, if summoned by Registered Warrantholders or on a Warrantholders' Request, shall be dissolved; but in any other case the meeting shall be adjourned to the same day in the next week (unless such day is not a Business Day, in which case it shall be adjourned to the next following Business Day) at the same time and place and no notice of the adjournment need be given. Any business may be brought before or dealt with at an adjourned meeting which might have been dealt with at the original meeting in accordance with the notice calling the same. No business shall be transacted at any meeting unless a quorum be present at the commencement of business. At the adjourned meeting the Registered Warrantholders present in person or by proxy shall form a quorum and may transact the business for which the meeting was originally convened, notwithstanding that they may not be entitled to acquire at least 50% of the aggregate number of Warrant Shares which may be acquired pursuant to all then outstanding Warrants.

Section 7.5 Power to Adjourn.

The chairman of any meeting at which a quorum of the Registered Warrantholders is present may, with the consent of the meeting, adjourn any such meeting, and no notice of such adjournment need be given except such notice, if any, as the meeting may prescribe.

Section 7.6 Show of Hands.

Every question submitted to a meeting shall be decided in the first place by a majority of the votes given on a show of hands except that votes on an Extraordinary Resolution shall be given in the manner hereinafter provided. At any such meeting, unless a poll is duly demanded as herein provided, a declaration by the chairman that a resolution has been carried or carried unanimously or by a particular majority or lost or not carried by a particular majority shall be conclusive evidence of the fact.

Section 7.7 Poll and Voting.

(1) On
 every Extraordinary Resolution, and on any other question submitted to a meeting and after
 a vote by show of hands when demanded by the chairman or by one or more of the Registered
 Warrantholders acting in person or by proxy and entitled to acquire in the aggregate at least
 5% of the aggregate number of Warrant Shares which may be acquired pursuant to all the Warrants
 then outstanding, a poll shall be taken in such manner as the chairman shall direct. Questions
 other than those required to be determined by Extraordinary Resolution shall be decided by
 a majority of the votes cast on the poll.

(2) On
 a show of hands, every person who is present and entitled to vote, whether as a Registered
 Warrantholder or as proxy for one or more absent Registered Warrantholders, or both, shall
 have one vote. On a poll, each Registered Warrantholder present in person or represented
 by a proxy duly appointed by instrument in writing shall be entitled to one vote in respect
 of each Warrant then held or represented by it. A proxy need not be a Registered Warrantholder.
 The chairman of any meeting shall be entitled, both on a show of hands and on a poll, to
 vote in respect of the Warrants, if any, held or represented by him.

Section 7.8 Regulations.

(1) The
 Warrant Agent, or the Company with the approval of the Warrant Agent, may from time to time
 make and from time to time vary such regulations as it shall think fit for the setting of
 the record date for a meeting for the purpose of determining Registered Warrantholders entitled
 to receive notice of and to vote at the meeting.

(2) Any
 regulations so made shall be binding and effective and the votes given in accordance therewith
 shall be valid and shall be counted. Save as such regulations may provide, the only persons
 who shall be recognized at any meeting as a Registered Warrantholder, or be entitled to vote
 or be present at the meeting in respect thereof (subject to Section 7.9), shall be Registered
 Warrantholders or proxies of Registered Warrantholders.

Section 7.9 Corporation and Warrant Agent May be Represented.

The Company and the Warrant Agent, by their respective directors, officers, agents, and employees and the Counsel for the Company and for the Warrant Agent may attend any meeting of the Registered Warrantholders.

Section 7.10 Powers Exercisable by Extraordinary Resolution.

In addition to all other powers conferred upon them by any other provisions of this Indenture or by law, the Registered Warrantholders at a meeting shall, subject to the provisions of Section 7.11, have the power exercisable from time to time by Extraordinary Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to
 agree to any modification, abrogation, alteration, compromise or arrangement of the rights
 of Registered Warrantholders or the Warrant Agent in its capacity as warrant agent hereunder
 (subject to the Warrant Agent's prior consent, acting reasonably) or on behalf of the
 Registered Warrantholders against the Company whether such rights arise under this Indenture
 or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to
 amend, alter or repeal any Extraordinary Resolution previously passed or sanctioned by the
 Registered Warrantholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to
 direct or to authorize the Warrant Agent, subject to Section 9.2(2) hereof, to enforce any
 of the covenants on the part of the Company contained in this Indenture or to enforce any
 of the rights of the Registered Warrantholders in any manner specified in such Extraordinary
 Resolution or to refrain from enforcing any such covenant or right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to
 waive, and to direct the Warrant Agent to waive, any default on the part of the Company in
 complying with any provisions of this Indenture either unconditionally or upon any conditions
 specified in such Extraordinary Resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) to
 restrain any Registered Warrantholder from taking or instituting any suit, action or proceeding
 against the Company for the enforcement of any of the covenants on the part of the Company
 in this Indenture or to enforce any of the rights of the Registered Warrantholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) to
 direct any Registered Warrantholder who, as such, has brought any suit, action or proceeding
 to stay or to discontinue or otherwise to deal with the same upon payment of the costs, charges
 and expenses reasonably and properly incurred by such Registered Warrantholder in connection
 therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to
 assent to any change in or omission from the provisions contained in this Indenture or any
 ancillary or supplemental instrument which may be agreed to by the Company, and
to authorize the Warrant Agent to concur in and execute any ancillary or supplemental indenture embodying the change or omission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) with
 the consent of the Company, such consent not to be unreasonably withheld, to remove the Warrant
 Agent or its successor in office and to appoint a new warrant agent or warrant agents to
 take the place of the Warrant Agent so removed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 assent to any compromise or arrangement with any creditor or creditors or any class or classes
 of creditors, whether secured or otherwise, and with holders of any shares or other securities
 of the Company.

Section 7.11 Meaning of Extraordinary Resolution.

(1) The
 expression "**Extraordinary Resolution**" when used in this Indenture means,
 subject as hereinafter provided in this Section 7.11 and in Section 7.14, a resolution proposed
 at a meeting of Registered Warrantholders duly convened for that purpose and held in accordance
 with the provisions of this Article 7 at which there are present in person or by proxy Registered
 Warrantholders holding at least 20% of the aggregate number of Warrant Shares that may be
 acquired on exercise of the Warrants and passed by the affirmative votes of Registered Warrantholders
 holding not less than 66 2/3% of the aggregate number of Warrant Shares that may be acquired
 on exercise of the Warrants at the meeting and voted on the poll upon such resolution.

(2) If,
 at the meeting at which an Extraordinary Resolution is to be considered, Registered Warrantholders
 holding at least 20% of the aggregate number of Warrant Shares that may be acquired are not
 present in person or by proxy within 30 minutes after the time appointed for the meeting,
 then the meeting, if convened by Registered Warrantholders or on a Warrantholders'
 Request, shall be dissolved; but in any other case it shall stand adjourned to such day,
 being not less than 15 or more than 60 days later, and to such place and time as may be appointed
 by the chairman. Not less than 14 days' prior notice shall be given of the time and
 place of such adjourned meeting in the manner provided for in Section 10.2. Such notice shall
 state that at the adjourned meeting the Registered Warrantholders present in person or by
 proxy shall form a quorum but it shall not be necessary to set forth the purposes for which
 the meeting was originally called or any other particulars. At the adjourned meeting the
 Registered Warrantholders present in person or by proxy shall form a quorum and may transact
 the business for which the meeting was originally convened and a resolution proposed at such
 adjourned meeting and passed by the requisite vote as provided in Section 7.11(1) shall be
 an Extraordinary Resolution within the meaning of this Indenture notwithstanding that Registered
 Warrantholders entitled to acquire at least 25% of the aggregate number of Warrant Shares
 which may be acquired pursuant to all the then outstanding Warrants are not present in person
 or by proxy at such adjourned meeting.

(3) Subject
 to Section 7.14, votes on an Extraordinary Resolution shall always be given on a poll and
 no demand for a poll on an Extraordinary Resolution shall be necessary.

Section 7.12 Powers Cumulative.

Any one or more of the powers or any combination of the powers in this Indenture stated to be exercisable by the Registered Warrantholders by Extraordinary Resolution or otherwise may be exercised from time to time and the exercise of any one or more of such powers or any combination of powers from time to time shall not be deemed to exhaust the right of the Registered Warrantholders to exercise such power or powers or combination of powers then or thereafter from time to time.

Section 7.13 Minutes.

Minutes of all resolutions and proceedings at every meeting of Registered Warrantholders shall be made and duly recorded in the books and such minutes as aforesaid, if signed by the chairman or the secretary of the meeting at which such resolutions were passed or proceedings had shall be prima facie evidence of the matters therein stated and, until the contrary is proved, every such meeting in respect of the proceedings of which minutes shall have been made shall be deemed to have been duly convened and held, and all resolutions passed thereat or proceedings taken shall be deemed to have been duly passed and taken.

Section 7.14 Instruments in Writing.

All actions which may be taken and all powers that may be exercised by the Registered Warrantholders at a meeting held as provided in this Article 7 may also be taken and exercised by Registered Warrantholders holding at least 66 2/3% of the aggregate number of the then outstanding Warrants by an instrument in writing signed in one or more counterparts by such Registered Warrantholders in person or by attorney duly appointed in writing, and the expression "**Extraordinary Resolution**" when used in this Indenture shall include an instrument so signed.

Section 7.15 Binding Effect of Resolutions.

Every resolution and every Extraordinary Resolution passed in accordance with the provisions of this Article 7 at a meeting of Registered Warrantholders shall be binding upon all the Warrantholders, whether present at or absent from such meeting, and every instrument in writing signed by Registered Warrantholders in accordance with Section 7.14 shall be binding upon all the Warrantholders, whether signatories thereto or not, and each and every Warrantholder and the Warrant Agent (subject to the provisions for indemnity herein contained) shall be bound to give effect accordingly to every such resolution and instrument in writing.

Section 7.16 Holdings by Company Disregarded.

In determining whether Registered Warrantholders holding Warrants evidencing the entitlement to acquire the required number of Warrant Shares are present at a meeting of Registered Warrantholders for the purpose of determining a quorum or have concurred in any consent, waiver, Extraordinary Resolution, Warrantholders' Request or other action under this Indenture, Warrants owned legally or beneficially by the Company shall be disregarded in accordance with the provisions of Section 10.7.

**ARTICLE 8**

**SUPPLEMENTAL INDENTURES**

Section 8.1 Provision for Supplemental Indentures for Certain Purposes.

From time to time, the Company (when authorized by action of the directors of the Company) and the Warrant Agent may, subject to the provisions hereof and subject to the prior approval of the NEO, as need be, and they shall, when so directed in accordance with the provisions hereof, execute and deliver by their proper officers, indentures or instruments supplemental hereto, which thereafter shall form part hereof, for any one or more or all of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) setting
 forth any adjustments resulting from the application of the provisions of Article 4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) adding
 to the provisions hereof such additional covenants and enforcement provisions as, in the
 opinion of Counsel, are necessary or advisable in the premises, provided that the same are
 not in the opinion of the Warrant Agent, relying on the advice of Counsel, prejudicial to
 the interests of the Registered Warrantholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) giving
 effect to any Extraordinary Resolution passed as provided in Section 7.11;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) making
 such provisions not inconsistent with this Indenture as may be necessary or desirable with
 respect to matters or questions arising hereunder or for the purpose of obtaining a listing
 or quotation of the Warrants on any stock exchange or quotation system, provided that such
 provisions are not, in the opinion of the Warrant Agent, relying on the advice of Counsel,
 prejudicial to the interests of the Registered Warrantholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) adding
 to or altering the provisions hereof in respect of the transfer of Warrants, making provision
 for the exchange of Warrants, and making any modification in the form of the Warrant Certificates
 which does not affect the substance thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) modifying
 any of the provisions of this Indenture, including relieving the Company from any of the
 obligations, conditions or restrictions herein contained, provided that such modification
 or relief shall be or become operative or effective only if, in the opinion of the Warrant
 Agent, relying on the advice of Counsel, such modification or relief in no way prejudices
 any of the rights of the Registered Warrantholders or of the Warrant Agent, and provided
 further that the Warrant Agent may in its sole discretion decline to enter into any such
 supplemental indenture which in its opinion may not afford adequate protection to the Warrant
 Agent when the same shall become operative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) providing
 for the issuance of additional Warrants hereunder, including Warrants in excess of the number
 set out in Section 2.1 and any consequential amendments hereto as may be required by the
 Warrant Agent relying on the advice of Counsel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) for
 any other purpose not inconsistent with the terms of this Indenture, including the correction
 or rectification of any ambiguities, defective or inconsistent provisions, errors,
mistakes or omissions herein, provided that in the opinion of the Warrant Agent, relying on the advice of Counsel, the rights of the
Warrant Agent and of the Registered Warrantholders are in no way prejudiced thereby.

Section 8.2 Successor Entities.

In the case of the consolidation, amalgamation, arrangement, merger or transfer of the undertaking or assets of the Company as an entirety or substantially as an entirety to or with another entity ("**successor entity**"), the successor entity resulting from such consolidation, amalgamation, arrangement, merger or transfer (if not the Company) shall expressly assume, by supplemental indenture satisfactory in form to the Warrant Agent and executed and delivered to the Warrant Agent, the due and punctual performance and observance of each and every covenant and condition of this Indenture to be performed and observed by the Company.

**ARTICLE 9**

**CONCERNING THE WARRANT AGENT**

Section 9.1 Trust Indenture Legislation.

(1) If
 and to the extent that any provision of this Indenture limits, qualifies or conflicts with
 a mandatory requirement of Applicable Legislation, such mandatory requirement shall prevail.

(2) The
 Company and the Warrant Agent agree that each will, at all times in relation to this Indenture
 and any action to be taken hereunder, observe and comply with and be entitled to the benefits
 of Applicable Legislation.

Section 9.2 Rights and Duties of Warrant Agent.

(1) In
 the exercise of the rights and duties prescribed or conferred by the terms of this Indenture,
 the Warrant Agent shall exercise that degree of care, diligence and skill that a reasonably
 prudent warrant agent would exercise in comparable circumstances. No provision of this Indenture
 shall be construed to relieve the Warrant Agent from liability for its own gross negligence,
 wilful misconduct, bad faith or fraud under this Indenture.

(2) The
 obligation of the Warrant Agent to commence or continue any act, action or proceeding for
 the purpose of enforcing any rights of the Warrant Agent or the Registered Warrantholders
 hereunder shall be conditional upon the Registered Warrantholders furnishing, when required
 by notice by the Warrant Agent, sufficient funds to commence or to continue such act, action
 or proceeding and an indemnity reasonably satisfactory to the Warrant Agent to protect and
 to hold harmless the Warrant Agent and its officers, directors, employees and agents, against
 the costs, charges and expenses and liabilities to be incurred thereby and any loss and damage
 it may suffer by reason thereof. None of the provisions contained in this Indenture shall
 require the Warrant Agent to expend or to risk its own funds or otherwise to incur financial
 liability in the performance of any of its duties or in the exercise of any of its rights
 or powers unless indemnified and funded as aforesaid.

(3) The
 Warrant Agent may, before commencing or at any time during the continuance of any such act,
 action or proceeding, require the Registered Warrantholders, at whose instance it is acting
to deposit with the Warrant Agent the Warrants Certificates held by them, for which Warrants the Warrant Agent shall issue receipts.

(4) Every
 provision of this Indenture that by its terms relieves the Warrant Agent of liability or
 entitles it to rely upon any evidence submitted to it is subject to the provisions of Applicable
 Legislation.

Section 9.3 Evidence, Experts and Advisers.

(1) In
 addition to the reports, certificates, opinions and other evidence required by this Indenture,
 the Company shall furnish to the Warrant Agent such additional evidence of compliance with
 any provision hereof, and in such form, as may be prescribed by Applicable Legislation or
 as the Warrant Agent may reasonably require by written notice to the Company.

(2) In
 the exercise of its rights and duties hereunder, the Warrant Agent may, if it is acting in
 good faith, rely as to the truth of the statements and the accuracy of the opinions expressed
 in statutory declarations, opinions, reports, written requests, consents, or orders of the
 Company, certificates of the Company or other evidence furnished to the Warrant Agent pursuant
 to a request of the Warrant Agent, provided that such evidence complies with Applicable Legislation
 and that the Warrant Agent complies with Applicable Legislation and that the Warrant Agent
 examines the same and determines that such evidence complies with the applicable requirements
 of this Indenture. The Warrant Agent shall be under no responsibility in respect of the validity
 of this Indenture or the execution and delivery hereof by or on behalf of the Company, or
 in respect of the validity or the execution of any Warrant Certificate by the Company and
 issued hereunder, nor shall it be responsible for any breach by the Company of any covenant
 or condition contained in this Indenture or in any such Warrant Certificate; nor shall it
 by any act hereunder be deemed to make any representation or warranty as to the authorization
 or reservation of any securities to be issued upon the right to acquire provided for in this
 Indenture and/or in any Warrant or as to whether any securities will when issued be duly
 authorized or be validly issued and fully paid and non-assessable.

(3) Proof
 of execution of any document or instrument in writing, including a Warrantholders'
 Request, by a Warrantholder may be made by the certificate of a notary public, or other officer
 with similar powers, that the Person signing such instrument acknowledged to him the execution
 thereof, or by an affidavit of a witness to such execution, or in any other manner that the
 Warrant Agent considers adequate and in respect of a corporate Warrantholder, shall include
 a certificate of incumbency of such Warrantholder together with a certified resolution authorizing
 the Person who signs such instrument to sign such instrument.

(4) Whenever
 it is provided in this Indenture or under Applicable Legislation that the Company shall deposit
 with the Warrant Agent resolutions, certificates, reports, opinions, requests, orders or
 other documents, it is intended that the truth, accuracy and good faith on the effective
 date thereof and the facts and opinions stated in all such documents so deposited shall,
 in each and every such case, be conditions precedent to the right of the Company to have
 the Warrant Agent take the action to be based thereon.

(5) The
 Warrant Agent may employ or retain such Counsel, accountants, appraisers or other experts
 or advisers as it may reasonably require for the purpose of determining and discharging its
 rights and duties hereunder and may pay reasonable remuneration for all services
so performed by any of them, and will not be responsible for any misconduct or negligence on the part of any such experts or advisers
who have been appointed with due care by the Warrant Agent. The Company shall pay or reimburse the Warrant Agent for any reasonable fees
of such counsel, accountants, appraisers, or other experts or advisors.

(6) The
 Warrant Agent may act and rely and shall be protected in acting and relying in good faith
 on the opinion or advice of or information obtained from any Counsel, accountant, appraiser,
 engineer or other expert or adviser, whether retained or employed by the Company or by the
 Warrant Agent, in relation to any matter arising in the administration of the agency hereof.

(7) The
 Warrant Agent may, as a condition precedent to any action to be taken by it under this Indenture,
 require such opinions, statutory declarations, reports, certificates or other evidence as
 it, acting reasonably, considers necessary or advisable in the circumstances.

(8) The
 Warrant Agent is not required to expend or place its own funds at risk in executing its duties
 and obligations.

Section 9.4 Documents, Monies, etc. Held by Warrant Agent.

Until released in accordance with this Indenture, any funds received hereunder shall be kept in segregated records of the Warrant Agent and the Warrant Agent shall place the funds in segregated trust accounts of the Warrant Agent at one or more of the Canadian Chartered Banks listed in Schedule 1 of the Bank Act (Canada) ("**Approved Bank**"). All amounts held by the Warrant Agent pursuant to this Agreement shall be held by the Warrant Agent for the Company and the delivery of the funds to the Warrant Agent shall not give rise to a debtor-creditor or other similar relationship. The amounts held by the Warrant Agent pursuant to this Agreement are at the sole risk of the Company and, without limiting the generality of the foregoing, the Warrant Agent shall have no responsibility or liability for any diminution of the funds which may result from any deposit made with an Approved Bank pursuant to this section, including any losses resulting from a default by the Approved Bank or other credit losses (whether or not resulting from such a default). The parties hereto acknowledge and agree that the Warrant Agent will have acted prudently in depositing the funds at any Approved Bank, and that the Warrant Agent is not required to make any further inquiries in respect of any such bank. The Warrant Agent may hold cash balances constituting part or all of such monies and need not, invest the same; the Warrant Agent shall not be liable to account for any profit to any parties to this Indenture or to any other person or entity.

Section 9.5 Actions by Warrant Agent to Protect Interest.

The Warrant Agent shall have power to institute and to maintain such actions and proceedings as it may consider necessary or expedient to preserve, protect or enforce its interests and the interests of the Registered Warrantholders.

Section 9.6 Warrant Agent Not Required to Give Security.

The Warrant Agent shall not be required to give any bond or security in respect of the execution of the agency and powers of this Indenture or otherwise in respect of the premises.

Section 9.7 Protection of Warrant Agent.

By way of supplement to the provisions of any law for the time being relating to the Warrant Agent it is expressly declared and agreed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Warrant Agent shall not be liable for or by reason of any statements of fact or recitals
 in this Indenture or in the Warrant Certificates (except the representation contained in
 Section 9.9 or in the Authentication of the Warrant Agent on the Warrant Certificates) or
 be required to verify the same, but all such statements or recitals are and shall be deemed
 to be made by the Company;

(b) nothing
 herein contained shall impose any obligation on the Warrant Agent to see to or to require
 evidence of the registration or filing (or renewal thereof) of this Indenture or any instrument
 ancillary or supplemental hereto;

(c) the
 Warrant Agent shall not be bound to give notice to any person or persons of the execution
 hereof;

(d) the
 Warrant Agent shall not be liable for any error in judgment or for any act done or step taken
 or omitted by it in good faith or for any mistake, in fact or law, or for anything which
 it may do or refrain from doing in connection herewith except arising out of its own gross
 negligence, wilful misconduct or fraud;

(e) the
 Warrant Agent shall not incur any liability or responsibility whatever or be in any way responsible
 for the consequence of any breach on the part of the Company of any of its covenants herein
 contained or of any acts of any directors, officers, employees, agents or servants of the
 Company;

(f) the
 Warrant Agent shall incur no liability with respect to the delivery or non-delivery of any
 certificate or certificates whether delivered by hand, mail or any other means provided that
 they are sent in accordance with the provisions hereof;

(g) if
 the Warrant Agent delivers any cheque as required hereunder, the Warrant Agent shall have
 no further obligation or liability for the amount represented thereby, unless any such cheque
 is not honoured on presentation, provided that in the event of the non-receipt of such cheque
 by the payee, or the loss or destruction thereof, the Warrant Agent, upon being furnished
 with reasonable evidence of such non- receipt, loss or destruction and, if required by the
 Warrant Agent, an indemnity reasonably satisfactory to it, shall issue to such payee a replacement
 cheque for the amount of such cheque;

(h) the
 Warrant Agent will disburse funds in accordance with the provisions hereof only to the extent
 that funds have been deposited with it. The Warrant Agent shall not under any circumstances
 be required to disburse funds in excess of the amounts on deposit with the Warrant Agent
 at the time of disbursement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 Company shall at all times indemnify the Warrant Agent and its affiliates, their successors
 and assigns, and each of their directors, officers, employees and agents (collectively, the
 "**Indemnified Parties**" and any one of them, an "**Indemnified Party**") and
save them harmless from and against all claims, demands, losses, actions, causes of action, suits, proceedings, liabilities, damages,
costs, charges, assessments, judgments and expenses (including expert consultant and legal fees and disbursements on a solicitor and
client basis and expenses incurred in connection with the enforcement of this indemnity) (collectively "**Losses** "),
which the Indemnified Parties, or any of them, may suffer or incur, whether at law or in equity, in any way caused by or arising, directly
or indirectly, in respect of any act, deed, matter or thing whatsoever made, done, acquiesced in or omitted in or about or in relation
to the execution of the Warrant Agent's duties, and including any services that the Warrant Agent may provide in connection with
or in any way relating to this Indenture including, without limitation, those arising out of or related to actions taken or omitted to
be taken by the Indemnified Parties and any action or liability brought against or incurred by the Indemnified Parties in relation to
or arising out of any breach by the Company, provided however that the Company shall not be required to indemnify the Indemnified Parties
(or any one of them) for any Losses arising, directly or indirectly, from an Indemnified Party's gross negligence, wilful misconduct
or bad faith. Notwithstanding any other provision hereof, the Company agrees that its liability hereunder shall be absolute and unconditional
regardless of the correctness of any representations of any third parties and regardless of any liability of third parties to the Indemnified
Parties, and shall accrue and become enforceable without prior demand or any other precedent action or proceeding. Notwithstanding any
other provision hereof, this indemnity shall survive the resignation or removal of the Warrant Agent and the termination or discharge
of this Indenture; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) notwithstanding
 the foregoing or any other provision of this Indenture, any liability of the Warrant Agent
 shall be limited, in the aggregate, to the amount of annual retainer fees paid by the Company
 to the Warrant Agent under this Indenture in the twelve (12) months immediately prior to
 the Warrant Agent receiving the first notice of the claim. Notwithstanding any other provision
 of this Indenture, and whether such losses or damages are foreseeable or unforeseeable, the
 Warrant Agent shall not be liable under any circumstances whatsoever for any (a) breach by
 any other party of securities law or other rule of any securities regulatory authority, (b)
 lost profits or (c) special, indirect, incidental, consequential, exemplary, aggravated or
 punitive losses or damages.

Section 9.8 Replacement of Warrant Agent; Successor by Merger.

(1) The
 Warrant Agent may resign its agency and be discharged from all further duties and liabilities
 hereunder, subject to this Section 9.8, by giving to the Company not less than 60 days'
 prior notice in writing or such shorter prior notice as the Company may accept as sufficient.
 The Registered Warrantholders by Extraordinary Resolution shall have power at any time to
 remove the existing Warrant Agent and to appoint a new warrant agent. In the event of the
 Warrant Agent resigning or being removed as aforesaid or being dissolved, becoming bankrupt,
 going into liquidation or otherwise becoming incapable of acting hereunder, the Company shall
 forthwith appoint a new warrant agent unless a new warrant agent has already been appointed
 by the Registered Warrantholders; failing such appointment by the Company, the retiring Warrant
 Agent or any Registered Warrantholder may
apply to a judge of the Province of British Columbia on such notice as such judge may direct, for the appointment of a new warrant agent;
but any new warrant agent so appointed by the Company or by the Court shall be subject to removal as aforesaid by the Registered Warrantholders.
Any new warrant agent appointed under any provision of this Section 9.8 shall be an entity authorized to carry on the business of a trust
company in the Province of British Columbia and, if required by the Applicable Legislation for any other provinces, in such other provinces.
On any such appointment the new warrant agent shall be vested with the same powers, rights, duties and responsibilities as if it had
been originally named herein as Warrant Agent hereunder.

(2) Upon
 the appointment of a successor warrant agent, the Company shall promptly notify the Registered
 Warrantholders thereof in the manner provided for in Section 10.2.

(3) Any
 Warrant Certificates Authenticated but not delivered by a predecessor Warrant Agent may be
 Authenticated by the successor Warrant Agent in the name of the successor Warrant Agent.

(4) Any
 Company into which the Warrant Agent may be merged or consolidated or amalgamated, or any
 Company resulting therefrom to which the Warrant Agent shall be a party, or any Company succeeding
 to substantially the corporate trust business of the Warrant Agent shall be the suc **c** essor
 to the Warrant Agent hereunder without any further act on its part or any of the parties
 hereto, provided that such Company would be eligible for appointment as successor Warrant
 Agent under Section 9.8(1).

Section 9.9 Acceptance of Agency

The Warrant Agent hereby accepts the agency in this Indenture declared and provided for and agrees to perform the same upon the terms and conditions herein set forth.

Section 9.10 Warrant Agent Not to be Appointed Receiver.

The Warrant Agent and any person related to the Warrant Agent shall not be appointed a receiver, a receiver and manager or liquidator of all or any part of the assets or undertaking of the Company.

Section 9.11 Warrant Agent Not Required to Give Notice of Default.

The Warrant Agent shall not be bound to give any notice or do or take any act, action or proceeding by virtue of the powers conferred on it hereby unless and until it shall have been required so to do under the terms hereof; nor shall the Warrant Agent be required to take notice of any default hereunder, unless and until notified in writing of such default, which notice shall distinctly specify the default desired to be brought to the attention of the Warrant Agent and in the absence of any such notice the Warrant Agent may for all purposes of this Indenture conclusively assume that no default has been made in the observance or performance of any of the representations, warranties, covenants, agreements or conditions contained herein. Any such notice shall in no way limit any discretion herein given to the Warrant Agent to determine whether or not the Warrant Agent shall take action with respect to any default.

Section 9.12 Anti-Money Laundering.

(1) The
 Company hereby represents to the Warrant Agent that any account to be opened by, or interest
 to be held by the Warrant Agent in connection with this Agreement, for or to the credit of
 the Company, either (i) is not intended to be used by or on behalf of any third party; or
 (ii) is intended to be used by or on behalf of a third party, in which case the Company hereto
 agrees to complete and execute forthwith a declaration in the Warrant Agent's prescribed
 form as to the particulars of such third party.

(2) The
 Warrant Agent shall retain the right not to act and shall not be liable for refusing to act
 if, due to a lack of information or for any other reason whatsoever, the Warrant Agent, in
 its sole judgment, determines that such act might cause it to be in non-compliance with any
 applicable anti-money laundering, anti-terrorist or economic sanctions legislation, regulation
 or guideline. Further, should the Warrant Agent, in its sole judgment, determine at any time
 that its acting under this Indenture has resulted in its being in non-compliance with any
 applicable anti-money laundering, anti-terrorist or economic sanctions legislation, regulation
 or guideline, then it shall have the right to resign on ten days written notice to the other
 parties to this Indenture, provided (i) that the Warrant Agent's written notice shall
 describe the circumstances of such non-compliance; and (ii) that if such circumstances are
 rectified to the Warrant Agent's satisfaction within such ten day period, then such
 resignation shall not be effective.

Section 9.13 Compliance with Privacy Code.

The Company acknowledges that the Warrant Agent may, in the course of providing services hereunder, collect or receive financial and other personal information about the Company and/or their representatives, as individuals, or about other individuals related to the subject matter hereof, and use such information for the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to
 provide the services required under this Indenture and other services that may be requested
 from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to
 help the Warrant Agent manage its servicing relationships with such individuals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to
 meet the Warrant Agent's legal and regulatory requirements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if
 Social Insurance Numbers are collected by the Warrant Agent, to perform tax reporting and
 to assist in verification of an individual's identity for security purposes.

The Company acknowledges and agrees that the Warrant Agent may receive, collect, use and disclose personal information provided to it or acquired by it in the course of its acting as agent hereunder for the purposes described above and, generally, in the manner and on the terms described in its privacy code, which the Warrant Agent shall make available on its website, https://www.endeavortrust.com/, or upon request, including revisions thereto. The Warrant Agent may transfer personal information to other companies in or outside of Canada that provide data processing and storage or other support in order to facilitate the services it provides.

Further, the Company agrees that it shall not provide or cause to be provided to the Warrant Agent any personal information relating to an individual who is not a party to this Indenture unless the Company has assured itself that such individual understands and has consented to the aforementioned uses and disclosures.

Section 9.14 Securities Exchange Commission Certification.

The Company confirms that as at the date of execution of this Agreement it does not have a class of securities registered pursuant to Section 12 of the U.S. Securities and Exchange Act of 1934, as amended (the "**Act**") or have a reporting obligation pursuant to Section 15(d) of the Act

The Company covenants that in the event that (i) any class of its securities shall become registered pursuant to Section 12 of the Act or Company shall incur a reporting obligation pursuant to Section 15(d) of the Act, or (ii) any such registration or reporting obligation shall be terminated by the Company in accordance with the Act, the Company shall promptly deliver to the Warrant Agent an officers' certificate (in a form provided by the Warrant Agent notifying the Warrant Agent of such registration or termination and such other information as the Warrant Agent may require at the time. The Company acknowledges that Warrant Agent is relying upon the foregoing representation and covenants in order to meet certain United States Securities and Exchange Commission ("**SEC**") obligations with respect to those clients who are filing with the SEC.

Section 9.15 Conflict of Interest.

The Warrant Agent represents to the Company that to the best of its knowledge at the time of the execution and delivery hereof, no material conflict of interest exists between its role as a fiduciary and as a custodian, bailee and agent hereunder and its role in any other capacity and if a material conflict of interest arises hereafter it will, within ninety (90) days after ascertaining that it has such material conflict of interest, either eliminate the conflict of interest or resign its duties and obligations hereunder. If any such material conflict of interest exists or hereafter shall exist, the validity and enforceability of this Indenture and the Warrants shall not be affected in any manner whatsoever by reason thereof.

**ARTICLE 10**

**GENERAL**

Section 10.1 Notice to the Company and the Warrant Agent.

(1) Unless
 herein otherwise expressly provided, any notice to be given hereunder to the Company or the
 Warrant Agent shall be deemed to be validly given if delivered, sent by registered letter,
 postage prepaid or if faxed or emailed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 to the Company:

VERSES TECHNOLOGIES INC.

205 - 810 Quayside Drive

New Westminster, British Columbia

V3M 6B9

Email: kevin.w@verses.io <br> Attention: <u>mailto:kevin.w@verses.io</u>Kevin Wilson, <br> Chief Financial Officer and Secretary

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 to the Warrant Agent:

ENDEAVOR TRUST CORPORATION

Suite 702, 777 Hornby Street

Vancouver, British Columbia

V6Z 1S4

Attention: Securities Processing <br> Email: admin@endeavortrust.com

and any such notice delivered in accordance with the foregoing shall be deemed to have been received and given on the date of delivery or, if mailed, on the fifth Business Day following the date of mailing such notice or, if faxed, on the next Business Day following the date of transmission.

(2) The
 Company or the Warrant Agent, as the case may be, may from time to time notify the other
 in the manner provided in Section 10.1(1) of a change of address which, from the effective
 date of such notice and until changed by like notice, shall be the address of the Company
 or the Warrant Agent, as the case may be, for all purposes of this Indenture.

(3) If,
 by reason of a strike, lockout or other work stoppage, actual or threatened, involving postal
 employees, any notice to be given to the Warrant Agent or to the Company hereunder could
 reasonably be considered unlikely to reach its destination, such notice shall be valid and
 effective only if it is delivered to the named officer of the party to which it is addressed,
 as provided in Section 10.1(1), or given by facsimile or other means of prepaid, transmitted
 and recorded communication.

Section 10.2 Notice to Registered Warrantholders.

(a) Unless
 otherwise provided herein, notice to the Registered Warrantholders under the provisions of
 this Indenture shall be valid and effective if: (i) delivered or sent by ordinary prepaid
 post addressed to such holders at their post office addresses appearing on the register hereinbefore
 mentioned; (ii) sent by e-mail or functionally equivalent electronic means of communication
 to such holders at their e-mail addresses appearing on the register hereinbefore mentioned,
 as applicable, with charges (if any) prepaid; or (iii) given in a news release disseminated
 through a newswire service and filed on the Company's issuer profile on SEDAR at www.sedar.com.
 Such notice shall be deemed to have been effectively received and given on the date it is
 sent, published or, if mailed, on the third Business Day following the date of mailing such
 notice. In the event that Warrants are held in the name of the Depository, a copy of such
 notice shall also be sent by e-mail or functionally equivalent electronic means of communication
 to the Depository and shall be deemed received and given on the day it is so sent.

(b) If,
 by reason of a strike, lockout or other work stoppage, actual or threatened, involving postal
 employees, any notice to be given to the Registered Warrantholders hereunder could reasonably
 be considered unlikely to reach its destination, such notice may be given in a news release
 disseminated through a newswire service, filed on the Company's issuer profile on SEDAR
 at www.sedar.com, and posted on the Company's website; provided that in the case of
 a notice convening a meeting of the Warrantholders, the Warrant Agent may require such additional
 publications of that notice, in Vancouver, British Columbia or in other cities or both, as
 it may deem necessary for the reasonable notification of the holders of Warrants or to comply
 with any applicable requirement of law or any stock exchange. Any notice so given shall be
 deemed to have been given on the day on which it has been published in all of the cities
 in which publication was required.

Section 10.3 Ownership of Warrants.

The Company and the Warrant Agent may deem and treat the Registered Warrantholders as the absolute owner thereof for all purposes, and the Company and the Warrant Agent shall not be affected by any notice or knowledge to the contrary except where the Company or the Warrant Agent is required to take notice by statute or by order of a court of competent jurisdiction. The receipt of any such Registered Warrantholder of the Warrant Shares which may be acquired pursuant thereto shall be a good discharge to the Company and the Warrant Agent for the same and neither the Company nor the Warrant Agent shall be bound to inquire into the title of any such holder except where the Company or the Warrant Agent is required to take notice by statute or by order of a court of competent jurisdiction.

Section 10.4 Counterparts.

This Indenture may be executed in several counterparts, each of which when so executed shall be deemed to be an original and such counterparts together shall constitute one and the same instrument and notwithstanding their date of execution they shall be deemed to be dated as of the date hereof. Delivery of an executed copy of the Indenture by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Indenture as of the date hereof.

**Section 10.5 Satisfaction and Discharge of Indenture.**

Upon the earlier of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 date by which there shall have been delivered to the Warrant Agent for exercise or cancellation
 all Warrants theretofore Authenticated hereunder, in the case of Warrant Certificates (or
 such other instructions, in a form satisfactory to the Warrant Agent), in the case of Uncertificated
 Warrants, or by way of standard processing through the book entry system in the case of a
 CDS Global Warrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Expiry Date;

and if all certificates or other entry on the register representing Warrant Shares required to be issued in compliance with the provisions hereof have been issued and delivered hereunder or to the Warrant Agent in accordance with such provisions, this Indenture shall cease to be of further effect and the Warrant Agent, on demand of and at the cost and expense of the Company and upon delivery to the Warrant Agent of a certificate of the Company stating that all conditions precedent to the satisfaction and discharge of this Indenture have been complied with, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture. Notwithstanding the foregoing, the indemnities provided to the Warrant Agent by the Company hereunder shall remain in full force and effect and survive the termination of this Indenture.

Section 10.6 Provisions of Indenture and Warrants for the Sole Benefit of Parties and Registered Warrantholders.

Nothing in this Indenture or in the Warrants, expressed or implied, shall give or be construed to give to any person other than the parties hereto and the Registered Warrantholders, as the case may be, any legal or equitable right, remedy or claim under this Indenture, or under any covenant or provision herein or therein contained, all such covenants and provisions being for the sole benefit of the parties hereto and the Registered Warrantholders.

---

| | |
|:---|:---|
| Section 10.7 | Class A Shares or Warrants Owned by the Company or its Subsidiaries - Certificate to be Provided. |

---

For the purpose of disregarding any Warrants owned legally or beneficially by the Company in Section 7.16, the Company shall provide to the Warrant Agent, from time to time, a certificate of the Company setting forth as at the date of such certificate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 names (other than the name of the Company) of the Registered Warrantholders which, to the
 knowledge of the Company, are owned by or held for the account of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 number of Warrants owned legally or beneficially by the Company;

and the Warrant Agent, in making the computations shall be entitled to rely on such certificate without any additional evidence.

Section 10.8 Severability

If, in any jurisdiction, any provision of this Indenture or its application to any party or circumstance is restricted, prohibited or unenforceable, such provision will, as to such jurisdiction, be ineffective only to the extent of such restriction, prohibition or unenforceability without invalidating the remaining provisions of this Indenture and without affecting the validity or enforceability of such provision in any other jurisdiction or without affecting its application to other parties or circumstances.

Section 10.9 Force Majeure

No party shall be liable to the other, or held in breach of this Indenture, if prevented, hindered, or delayed in the performance or observance of any provision contained herein by reason of act of God, riots, terrorism, acts of war, epidemics, governmental action or judicial order, earthquakes, or any other similar causes (including, but not limited to, mechanical, electronic or communication interruptions, disruptions or failures). Performance times under this Indenture shall be extended for a period of time equivalent to the time lost because of any delay that is excusable under this Section.

Section 10.10 Assignment, Successors and Assigns

Neither of the parties hereto may assign its rights or interest under this Indenture, except as provided in Section 9.8 in the case of the Warrant Agent, or as provided in Section 8.2 in the case of the Company. Subject thereto, this Indenture shall enure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

Section 10.11 Rights of Rescission and Withdrawal for Holders

Should a holder of Warrants exercise any legal, statutory, contractual or other right of withdrawal or rescission that may be available to it, and the holder's funds which were paid on exercise have already been released to the Company by the Warrant Agent, the Warrant Agent shall not be responsible for ensuring the exercise is cancelled and a refund is paid back to the holder. In such cases, the holder shall seek a refund directly from the Company and subsequently, the Company, upon surrender to the Company or the Warrant Agent of any underlying Warrant Shares or other securities that may have been issued, or such other procedure as agreed to by the parties hereto, shall instruct the Warrant Agent in writing, to cancel the exercise transaction and any such underlying Warrant Shares or other securities on the register, which may have already been issued upon the Warrant exercise. In the event that any payment is received from the Company by virtue of the holder being a shareholder for such Warrants that were subsequently rescinded, such payment must be returned to the Company by such holder. The Warrant Agent shall not be under any duty or obligation to take any steps to ensure or enforce the return of the funds pursuant to this section, nor shall the Warrant Agent be in any other way responsible in the event that any payment is not delivered or received pursuant to this section. Notwithstanding the foregoing, in the event that the Company provides the refund to the Warrant Agent for distribution to the holder, the Warrant Agent shall return such funds to the holder as soon as reasonably practicable, and in so doing, the Warrant Agent shall incur no liability with respect to the delivery or non-delivery of any such funds.

**IN WITNESS WHEREOF** the parties hereto have executed this Indenture under the hands of their proper officers in that behalf as of the date first written above.

---

| | |
|:---|:---|
| **VERSES TECHNOLOGIES INC.** | **VERSES TECHNOLOGIES INC.** |
| By: | *"Gabriel Rene"* |
| Name: | Gabriel Rene |
| Title: | Chief Executive Officer and Director |
| By: | *"Kevin Wilson"* |
| Name: | Kevin Wilson |
| Title: | Chief Financial Officer and Secretary |
| **ENDEAVOR TRUST CORPORATION** | **ENDEAVOR TRUST CORPORATION** |
| By: | *"David Eppert"* |
| Name: | David Eppert |
| Title: | Chief Executive Officer |
| By: | *"Catherine Wang"* |
| Name: | Catherine Wang |
| Title: | Chief Financial Officer |

---

**SCHEDULE "A"**

**FORM OF WARRANT**

SUBJECT TO THE COMPANY'S ACCELERATION RIGHT, THE WARRANTS EVIDENCED HEREBY ARE EXERCISABLE AT OR BEFORE 4:00 P.M. (VANCOUVER TIME) ON AUGUST 15, 2025, AFTER WHICH TIME THE WARRANTS EVIDENCED HEREBY SHALL BE DEEMED TO BE VOID AND OF NO FURTHER FORCE OR EFFECT.

*All Warrants registered in the name of the Depository shall also include the following legend*:

**<u>(INSERT IF BEING ISSUED TO CDS)</u>**UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY SERVICES INC. ("**CDS**") TO VERSES TECHNOLOGIES INC. (THE "**ISSUER**") OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF IS REGISTERED IN THE NAME OF CDS & CO., OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS (AND ANY PAYMENT IS MADE TO CDS & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED HOLDER HEREOF, CDS & CO., HAS A PROPERTY INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE HEREIN AND IT IS A VIOLATION OF ITS RIGHTS FOR ANOTHER PERSON TO HOLD, TRANSFER OR DEAL WITH THIS CERTIFICATE.

*Warrants sold in the United States shall also include the following legends*:

THIS WARRANT AND THE SECURITIES DELIVERABLE UPON EXERCISE HEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS, AND MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO VERSES TECHNOLOGIES INC. (THE "CORPORATION") (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, A LEGAL OPINION SATISFACTORY TO THE CORPORATION MUST FIRST BE PROVIDED TO ENDEAVOR TRUST CORPORATION TO THE EFFECT THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

THE SECURITIES EVIDENCED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER U.S. SECURITIES ACT OR U.S. STATE SECURITIES LAWS. THESE WARRANTS MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON UNLESS THIS SECURITY AND THE CLASS A SUBORDINATE VOTING SHARES ISSUABLE UPON EXERCISE OF THIS SECURITY HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LEGISLATION OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.

**WARRANT**

To acquire Class A Shares of VERSES TECHNOLOGIES INC.

(incorporated pursuant to the laws of the Province of British Columbia)

 CUSIP: [●]

 ISIN: [●]

**THIS IS TO CERTIFY THAT**, for value received,

(the "**Warrantholder**") is the registered holder of the number of share purchase warrants (the "**Warrants**") of VERSES TECHNOLOGIES INC. (the "**Company**") specified above, and is entitled, on exercise of these Warrants upon and subject to the terms and conditions set forth herein and in the Warrant Indenture, to purchase at any time prior to 4:00 p.m. (Vancouver time) (the "**Expiry Time**") on August 15, 2025 (the "**Expiry Date**"), subject to the Acceleration Right, one fully paid Class A Subordinate Voting Share of the Company as constituted on the date hereof (a "**Class A Share**") for each Warrant subject to adjustment in accordance with the terms of the Warrant Indenture.

Any capitalized term in this Warrant Certificate that is not otherwise defined herein, shall have the meaning ascribed thereto in the Warrant Indenture.

If, at any time prior to the Expiry Date, the volume-weighted average trading price of the Class A Shares on the NEO (or such other principal exchange or market where the Class A Shares are then listed or quoted for trading) exceeds $2.00, as adjusted in accordance with the Warrant Indenture, for a period of 10 consecutive trading days, the Company shall be entitled, at the option of the Company, to exercise the Acceleration Right by delivering an Acceleration Notice to the Registered Warrantholders, in accordance with the Warrant Indenture.

The right to purchase Class A Shares may only be exercised by the Warrantholder within the time set forth above by:

(a) duly completing and executing the exercise form (the "**Exercise Form**") attached hereto; and

(b) surrendering this warrant certificate (the "**Warrant Certificate**"), with the Exercise Form to the Warrant Agent at the principal office of the Warrant Agent, in the city of Vancouver, British Columbia, together with a certified cheque, bank draft or money order in the lawful money of Canada payable to or to the order of the Company in an amount equal to the purchase price of the Class A Shares so subscribed for.

The surrender of this Warrant Certificate, the duly completed Exercise Form and payment as provided above will be deemed to have been effected only on personal delivery thereof to, or if sent by mail or other means of transmission on actual receipt thereof by, the Warrant Agent at its principal office as set out above.

Subject to adjustment thereof in the events and in the manner set forth in the Warrant Indenture hereinafter referred to, the exercise price payable for each Class A Share upon the exercise of Warrants shall be $1.00 per Class A Share (the "**Exercise Price**").

Certificates for the Class A Shares subscribed for will be mailed to the persons specified in the Exercise Form at their respective addresses specified therein or, if so specified in the Exercise Form, delivered to such persons at the office where this Warrant Certificate is surrendered. If fewer Class A Shares are purchased than the number that can be purchased pursuant to this Warrant Certificate, the holder hereof will be entitled to receive without charge a new Warrant Certificate in respect of the balance of the Class A Shares not so purchased. No fractional Class A Shares will be issued upon exercise of any Warrant.

This Warrant Certificate evidences Warrants of the Company governed by the provisions of a warrant indenture (which indenture together with all other instruments supplemental or ancillary thereto is herein referred to as the "**Warrant Indenture**") dated as of December 16, 2022 between the Company and ENDEAVOR TRUST CORPORATION, as Warrant Agent, to which Warrant Indenture reference is hereby made for particulars of the rights of the holders of Warrants, the Company and the Warrant Agent in respect thereof and the terms and conditions on which the Warrants are issued and held, all to the same effect as if the provisions of the Warrant Indenture were herein set forth, to all of which the holder, by acceptance hereof, assents. The Company will furnish to the holder, on request and without charge, a copy of the Warrant Indenture.

On presentation at the principal office of the Warrant Agent as set out above, subject to the provisions of the Warrant Indenture and on compliance with the reasonable requirements of the Warrant Agent, one or more Warrant Certificates may be exchanged for one or more Warrant Certificates entitling the holder thereof to purchase in the aggregate an equal number of Class A Shares as are purchasable under the Warrant Certificate(s) so exchanged.

Neither the Warrants nor the Class A Shares issuable upon exercise hereof have been or will be registered under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"), or U.S. state securities laws. Other than by an original U.S. purchaser that purchased the Warrants directly from the Company, these Warrants may not be exercised in the United States or by or on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States unless this security and the Class A Shares issuable upon exercise of this security have been registered under the U.S. Securities Act and the applicable state securities legislation or an exemption from such registration requirements is available.

The Warrant Indenture contains provisions for the adjustment of the Exercise Price payable for each Class A Share upon the exercise of Warrants and the number of Class A Shares issuable upon the exercise of Warrants in the events and in the manner set forth therein.

The Warrant Indenture also contains provisions making binding on all holders of Warrants outstanding thereunder resolutions passed at meetings of holders of Warrants held in accordance with the provisions of the Warrant Indenture and instruments in writing signed by Warrantholders of Warrants entitled to purchase a specific majority of the Class A Shares that can be purchased pursuant to such Warrants.

Nothing contained in this Warrant Certificate, the Warrant Indenture or elsewhere shall be construed as conferring upon the holder hereof any right or interest whatsoever as a holder of Class A Shares or any other right or interest except as herein and in the Warrant Indenture expressly provided. In the event of any discrepancy between anything contained in this Warrant Certificate and the terms and conditions of the Warrant Indenture, the terms and conditions of the Warrant Indenture shall govern.

Warrants may only be transferred in compliance with the conditions of the Warrant Indenture on the register to be kept by the Warrant Agent in Vancouver, British Columbia, or such other registrar as the Company, with the approval of the Warrant Agent, may appoint at such other place or places, if any, as may be designated, upon surrender of this Warrant Certificate to the Warrant Agent or other registrar accompanied by a written instrument of transfer in form and execution satisfactory to the Warrant Agent or other registrar and upon compliance with the conditions prescribed in the Warrant Indenture and with such reasonable requirements as the Warrant Agent or other registrar may prescribe and upon the transfer being duly noted thereon by the Warrant Agent or other registrar. Time is of the essence hereof.

This Warrant Certificate will not be valid for any purpose until it has been countersigned by or on behalf of the Warrant Agent from time to time under the Warrant Indenture.

This Warrant Certificate may be signed by facsimile or other electronic means, which shall be deemed to be an original and shall be deemed to have the same legal effect and validity as a certificate bearing an original signature.

The parties hereto have declared that they have required that these presents and all other documents related hereto be in the English language. Les parties aux présentes déclarent qu'elles ont exigé que la présente convention, de même que tous les documents s'y rapportant, soient rédigés en anglais.

**IN WITNESS WHEREOF** the Company has caused this Warrant Certificate to be duly executed as of:

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| | | | |
|:---|:---|:---|:---|
|  |  | By: | **VERSES TECHNOLOGIES INC.** |
|  |  | By: | Authorized Signatory |
|  |  |  | Authorized Signatory |
| Countersigned and Registered by: | Countersigned and Registered by: |  |  |
| **ENDEAVOR TRUST CORPORATION** | **ENDEAVOR TRUST CORPORATION** |  |  |
| By: |  |  |  |
|  | Authorized Signatory |  |  |

---

**FORM OF TRANSFER**

To: ENDEAVOR TRUST CORPORATION

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers to ________________________________________________________________________________________________

______________________________________________________________________ (print name and address) the Warrants represented by this Warrants Certificate and hereby irrevocably constitutes and appoints as its attorney with full power of substitution to transfer the said securities on the appropriate register of the Warrant Agent.

In the case of a warrant certificate that contains a U.S. restrictive legend, the undersigned hereby represents, warrants and certifies that (one (only) of the following must be checked):

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| |
|:---|
| £(A) the transfer is being made only to the Company; |
| £(B) the transfer is being made outside the United States in accordance with Rule 904 of Regulation S under the U.S. Securities Act, and in compliance with any applicable local securities laws and regulations and the holder has provided herewith the Declaration for Removal of Legend attached as Schedule "C" to the Warrant Indenture, or<br>|
| £(C) the transfer is being made within the United States or to, or for the account or benefit of, U.S. Persons, in accordance with a transaction that does not require registration under the U.S. Securities Act or any applicable state securities laws and the undersigned has furnished to the Company and the Warrant Agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and the Warrant Agent to such effect. |

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In the case of a warrant certificate that does not contain a U.S. restrictive legend, if the proposed transfer is to, or for the account or benefit of a U.S. Person or to a person in the United States, the undersigned hereby represents, warrants and certifies that the transfer of the Warrants is being completed pursuant to an exemption from the registration requirements of the U.S. Securities Act and any applicable state securities laws, in which case the undersigned has furnished to the Company and the Warrant Agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and the Warrant Agent to such effect.

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| | |
|:---|:---|
| £| If transfer is to a U.S. Person, check this box. |

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DATED this ___day of _________________, 20__ .

Signature of Transferor

Name of Transferor

**REASON FOR TRANSFER – For US Residents only (where the individual(s) or Company receiving the securities is a US resident). Please select only one (see instructions below).**

☐ **Gift Estate ☐ Private Sale ☐ Other (or no change in ownership)**

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| | | |
|:---|:---|:---|
| **Date of Event (Date of gift, death or sale):** | **Value per Warrant on the date of event:** |  |
| ![](ex4-2_001.jpg) | ![](ex4-2_002.jpg) | **☐ CAD <u>OR</u> ☐ USD** |

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**CERTAIN REQUIREMENTS RELATING TO TRANSFERS – READ CAREFULLY**

The signature(s) of the transferor(s) must correspond with the name(s) as written upon the face of this certificate(s), in every particular, without alteration or enlargement, or any change whatsoever. All securityholders or a legally authorized representative must sign this form. The signature(s) on this form must be guaranteed in accordance with the transfer agent's then current guidelines and requirements at the time of transfer. Notarized or witnessed signatures are not acceptable as guaranteed signatures. As at the time of closing, you may choose one of the following methods (although subject to change in accordance with industry practice and standards):

● **Canada and the USA:** A Medallion Signature Guarantee obtained from a member of an acceptable Medallion Signature Guarantee Program (STAMP, SEMP, NYSE, MSP). Many commercial banks, savings banks, credit unions, and all broker dealers participate in a Medallion Signature Guarantee Program. The Guarantor must affix a stamp bearing the actual words "Medallion Guaranteed", with the correct prefix covering the face value of the certificate.

● **Canada:** A Signature Guarantee obtained from an authorized officer of the Royal Bank of Canada, Scotia Bank or TD Canada Trust. The Guarantor must affix a stamp bearing the actual words "Signature Guaranteed", sign and print their full name and alpha numeric signing number. Signature Guarantees are not accepted from Treasury Branches, Credit Unions or Caisse Populaires unless they are members of a Medallion Signature Guarantee Program. For corporate holders, corporate signing resolutions, including certificate of incumbency, are also required to accompany the transfer, unless there is a "Signature & Authority to Sign Guarantee" Stamp affixed to the transfer (as opposed to a "Signature Guaranteed" Stamp) obtained from an authorized officer of the Royal Bank of Canada, Scotia Bank or TD Canada Trust or a Medallion Signature Guarantee with the correct prefix covering the face value of the certificate.

● **Outside North America:** For holders located outside North America, present the certificates(s) and/or document(s) that require a guarantee to a local financial institution that has a corresponding Canadian or American affiliate which is a member of an acceptable Medallion Signature Guarantee Program. The corresponding affiliate will arrange for the signature to be over-guaranteed.

**OR**

The signature(s) of the transferor(s) must correspond with the name(s) as written upon the face of this certificate(s), in every particular, without alteration or enlargement, or any change whatsoever. The signature(s) on this form must be guaranteed by an authorized officer of Royal Bank of Canada, Scotia Bank or TD Canada Trust whose sample signature(s) are on file with the transfer agent, or by a member of an acceptable Medallion Signature Guarantee Program (STAMP, SEMP, NYSE, MSP). Notarized or witnessed signatures are not acceptable as guaranteed signatures. The Guarantor must affix a stamp bearing the actual words: "SIGNATURE GUARANTEED", "MEDALLION GUARANTEED" OR "SIGNATURE & AUTHORITY TO SIGN GUARANTEE", all in accordance with the transfer agent's then current guidelines and requirements at the time of transfer. For corporate holders, corporate signing resolutions, including certificate of incumbency, will also be required to accompany the transfer unless there is a "SIGNATURE & AUTHORITY TO SIGN GUARANTEE" Stamp affixed to the Form of Transfer obtained from an authorized officer of the Royal Bank of Canada, Scotia Bank or TD Canada Trust or a "MEDALLION GUARANTEED" Stamp affixed to the Form of Transfer, with the correct prefix covering the face value of the certificate.

**<u>REASON FOR TRANSFER – FOR US RESIDENTS ONLY</u>**

Consistent with US IRS regulations, ENDEAVOR TRUST CORPORATION is required to request cost basis information from US securityholders. Please indicate the reason for requesting the transfer as well as the date of event relating to the reason. The event date is not the day in which the transfer is finalized, but rather the date of the event which led to the transfer request (i.e. date of gift, date of death of the securityholder, or the date the private sale took place).

**SCHEDULE "B" EXERCISE FORM**

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| | |
|:---|:---|
| **TO:** | **VERSES TECHNOLOGIES INC.** |
| **AND TO:** | **ENDEAVOR TRUST CORPORATION** |
|  | 777 Hornby St. Ste 702 |
|  | Vancouver, British Columbia |
|  | V6Z 1S4 |

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The undersigned holder of the Warrants evidenced by this Warrant Certificate hereby exercises the right to acquire<u> </u>_______ (A) Class A Shares of VERSES TECHNOLOGIES INC.

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| | |
|:---|:---|
| Exercise Price Payable: |  |
|  | ((A) multiplied by $1.00, subject to adjustment) |

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The undersigned hereby exercises the right of such holder to be issued, and hereby subscribes for, Class A Shares that are issuable pursuant to the exercise of such Warrants on the terms specified in such Warrant Certificate and in the Warrant Indenture.

The undersigned hereby acknowledges that the undersigned is aware that the Class A Shares received on exercise may be subject to restrictions on resale under applicable securities legislation.

**Any capitalized term in this Warrant Certificate that is not otherwise defined herein, shall have the meaning ascribed thereto in the Warrant Indenture.**

The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):

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| | |
|:---|:---|
| £| (A) the undersigned holder at the time of exercise of the Warrants (i) is not in the United States, (ii) is not a U.S. Person , (iii) is not exercising the Warrants for the account or benefit of a U.S. Person or a person in the United States, (iv) did not execute or deliver this exercise form in the United States and (v) delivery of the underlying Class A Shares will not be to an address in the United States; OR |

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£(B) the undersigned holder (a) is the original U.S. purchaser who purchased the Warrants pursuant to the applicable private placement offering who delivered the Certificate of U.S. Purchaser attached to the subscription agreement in connection with its purchase of the Warrants, (b) is exercising the Warrants for its own account or for the account of a disclosed principal that was named in the subscription agreement pursuant to which it purchased such Warrants, and (c) is, and such disclosed principal, if any, is an institutional "accredited investor" as defined in Rule 501(a)(1),(2),(3)or (7) of Regulation D under the U.S. Securities Act of 1933, as amended (the "**U.S. Securities Act**") at the time of exercise of these Warrants and the representations and warranties of the holder made in the original subscription agreement including the Certificate of U.S. Purchaser remain true and correct as of the date of exercise of these Warrants; OR

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| | |
|:---|:---|
| £| (C) if the undersigned holder is (i) a holder in the United States, (ii) a U.S. Person, (iii) a person exercising for the account or benefit of a U.S. Person, (iv) executing or delivering this exercise form in the United States or (v) requesting delivery of the underlying Class A Shares in the United States, the undersigned holder has delivered to the Company and the Company's transfer agent (a) a completed and executed U.S. Purchaser Letter in substantially the form attached to the Warrant Indenture as Schedule "D" or (b) an opinion of counsel (which will not be sufficient unless it is in form and substance reasonably satisfactory to the Company and Warrant Agent) or such other evidence reasonably satisfactory to the Company and Warrant Agent to the effect that with respect to the Class A Shares to be delivered upon exercise of the Warrants, the issuance of such securities has been registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration requirements is available. |

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It is understood that the Company and ENDEAVOR TRUST CORPORATION may require evidence to verify the foregoing representations.

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| | |
|:---|:---|
| Notes: | (1) Certificates will not be registered or delivered to an address in the United States unless Box B or C above is checked. |
|  | (2) If Box C above is checked, holders are encouraged to consult with the Company and the Warrant Agent in advance to determine that the legal opinion tendered in connection with the exercise will be satisfactory in form and substance to the Company and the Warrant Agent. |
|  | "United States" and "U.S. Person" are as defined in Rule 902 of Regulation S under the U.S. Securities Act. |

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The undersigned hereby irrevocably directs that the said Class A Shares be issued, registered and delivered as follows:

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| | | |
|:---|:---|:---|
| **Name(s) in Full and Social**<br> **Insurance Number(s)**<br> **(if applicable)** | **Address(es)** | **Number of Class A**<br> **Shares** |

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Please print full name in which certificates representing the Class A Shares are to be issued. If any Class A Shares are to be issued to a person or persons other than the registered holder, the registered holder must pay to the Warrant Agent all eligible transfer taxes or other government charges, if any, and the Form of Transfer must be duly executed.

Once completed and executed, this Exercise Form must be mailed or delivered to **ENDEAVOR TRUST CORPORATION, c/o Corporate Trust**.

**DATED** this____<u> </u>day of<u> </u>____, 20___.

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| |
|:---|
| (Signature of Warrantholder, to be the same as |
| appears on the face of this Warrant Certificate) |
| Name of Registered Warrantholder |

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£ Please check if the certificates representing the Class A Shares are to be delivered at the office where this Warrant Certificate is surrendered, failing which such certificates will be mailed to the address set out above. Certificates will be delivered or mailed as soon as practicable after the surrender of this Warrant Certificate to the Warrant Agent.

**SCHEDULE "C"**

**FORM OF DECLARATION FOR REMOVAL OF LEGEND**

TO: ENDEAVOR TRUST CORPORATION

as registrar and transfer agent for the Warrants and Class A Shares issuable upon exercise of the Warrants of VERSES TECHNOLOGIES INC.

The undersigned (a) acknowledges that the sale of the securities of VERSES TECHNOLOGIES INC. (the "Corporation") to which this declaration relates is being made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and (b) certifies that (1) the undersigned is not an affiliate of the Company as that term is defined in the 1933 Act, (2) the offer of such securities was not made to a person in the United States and either (A) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believed that the buyer was outside the United States, or (B) the transaction was executed in, on or through the facilities of The Vancouver Stock Exchange or any other designated offshore securities market as defined in Regulation S under the U.S. Securities Act and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States, (3) neither the seller nor any affiliate of the seller nor any person acting on any of their behalf has engaged or will engage in any directed selling efforts in the United States in connection with the offer and sale of such securities, (4) the sale is bona fide and not for the purpose of "washing off" the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144(a)(3) under the U.S. Securities Act), (5) the seller does not intend to replace the securities sold in reliance on Rule 904 of the U.S. Securities Act with fungible unrestricted securities and (6) the contemplated sale is not a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the U.S. Securities Act. Terms used herein have the meanings given to them by Regulation S.

**DATED** this____ day of____ , 20__ .

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| |
|:---|
| (Name of Seller) |
| By: |
| Name: |
| Title: |

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**SCHEDULE "D"**

**FORM OF U.S. PURCHASER CERTIFICATION UPON EXERCISE OF WARRANTS**

VERSES TECHNOLOGIES INC.

205 - 810 Quayside Drive

New Westminster, British Columbia

V3M 6B9

**Attention: Chief Executive Officer**

- and to -

ENDEAVOR TRUST CORPORATION.

as Warrant Agent

Dear Sirs:

We are delivering this letter in connection with the purchase of Class A Subordinate Voting Shares (the "Class A Shares") of VERSES TECHNOLOGIES INC., a Company incorporated under the laws of the Province of British Columbia (the "Company") upon the exercise of warrants of the Company ("Warrants"), issued under the warrant indenture dated as of December 16, 2022 between the Company and ENDEAVOR TRUST CORPORATION.

We hereby confirm that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) we
 are an institutional "accredited investor" (satisfying one or more of the criteria
 set forth in Rule 501 (a)(1),(2),(3) or (7) of Regulation D under the United States Securities
 Act of 1933 (the "U.S. Securities Act")) who is also a "Qualified Purchaser"
 (as defined in Section 2(a) (51) of, and related rules under, the *United States Investment Company Act of 1940*, as amended (the "1940 Act")) ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) we
 are purchasing the Class A Shares for our own account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) we
 have such knowledge and experience in financial and business matters that we are capable
 of evaluating the merits and risks of purchasing the Class A Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) we
 are not acquiring the Class A Shares with a view to distribution thereof or with any present
 intention of offering or selling any of the Class A Shares, except (A) to the Company, (B)
 outside the United States in accordance with Rule 904 under the U.S. Securities Act or (C)
 inside the United States in accordance with Rule 144 under the U.S. Securities Act, if applicable,
 and in compliance with applicable state securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) we
 acknowledge that we have had access to such financial and other information as we deem necessary
 in connection with our decision to exercise the Warrants and purchase the Class A Shares;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) we
 acknowledge that we are not purchasing the Class A Shares as a result of any general solicitation
 or general advertising, including advertisements, articles, notices or other communications
 published in any newspaper, magazine or similar media or broadcast over radio, television,
 or any seminar or meeting whose attendees have been invited by general solicitation or general
 advertising.

We understand that the Class A Shares are being offered in a transaction not involving any offering within the United States within the meaning of the U.S. Securities Act and that the Class A Shares have not been and will not be registered under the U.S. Securities Act. We further understand that any Class A Shares acquired by us will be in the form of definitive physical certificates and that such certificates will bear a legend reflecting the fact that we will not offer, sell or otherwise transfer any of the Class A Shares, directly or indirectly, unless (i) the sale is to the Company; (ii) the sale is made outside the United States in compliance with the requirements of Rule 904 of Regulation S under the U.S. Securities Act; or (iii) the sale is made in the United States (A) pursuant to an exemption from registration under the U.S. Securities Act provided by Rule 144 thereunder, if available, and in compliance with any applicable state securities laws or (B) pursuant to a transaction that does not require registration under the U.S. Securities Act or applicable state securities laws, and in the case of each of (A) and (B), the purchaser meets the definition of Qualified Purchaser and the seller has furnished to the Company an opinion to such effect from counsel of recognized standing reasonably satisfactory to the Company prior to such offer, sale or transfer.

We acknowledge that you will rely upon our confirmations, acknowledgements and agreements set forth herein, and we agree to notify you promptly in writing if any of our representations or warranties herein ceases to be accurate or complete.

**DATED** this ______day of ____, 20__ .

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| |
|:---|
| (Name of U.S. Purchaser) |
| By: |
| Name: |
| Title: |

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## Exhibit 4.3

**Exhibit 4.3**

**THIS FIRST SUPPLEMENTAL WARRANT INDENTURE** is made as of the 28<sup>th</sup> day of February, 2023.

BETWEEN:

**VERSES TECHNOLOGIES INC.**, a company incorporated under the laws of the Province of British Columbia

(the "**Company**")

AND:

**ENDEAVOR TRUST CORPORATION**, a Trust Company authorized in British Columbia, Alberta, Manitoba and Saskatchewan and incorporated under the laws of the Province of British Columbia

(the "**Warrant Agent**")

**WHEREAS:**

A. The Company and the Warrant Agent executed a warrant indenture (the "**Warrant Indenture**") dated as of December 16, 2022 providing for the issue of up to 18,100,714 Warrants (as such term is defined in the Warrant Indenture), with each Warrant entitling the holder thereof to acquire one Class A Subordinate Voting Shares in the capital of the Company at an exercise price of $1.00 (the "**Exercise Price**") per common share until the earlier of: (i) August 15, 2025; and (ii) 30 days following the date of delivery of an Acceleration Notice (as such term is defined in the Warrant Indenture) (the "**Expiry Date**");

B. Section 8.1(g) of the Warrant Indenture provides for the creation of indentures supplemental to the Warrant Indenture for the purposes of providing for the issuance of additional Warrants in excess of the number set out in Section 2.1 of the Warrant Indenture;

C. The Company has determined to amend the Warrant Indenture to increase the number of Warrants issuable thereunder from 18,100,714 to up to 19,843,693 Warrants; and

D. The Warrant Agent is authorized and directed to enter into this First Supplemental Indenture and to hold all rights, interests and benefits contained herein for and on behalf of those persons who are holders of Warrants issued pursuant to the Warrant Indenture as modified by this First Supplemental Indenture from time to time.

**NOW THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSES** that for good and valuable consideration mutually given and received, the receipt and sufficiency of which is hereby acknowledged, and the parties hereto agree as follows:

1. Except
 as defined in this First Supplemental Warrant Indenture, or in the recitals or description
 of the parties herein, all capitalized terms used in this First Supplemental Warrant Indenture
 shall have the meanings given to them in the Warrant Indenture.

2. This
 First Supplemental Indenture is supplemental to the Warrant Indenture and the Warrant Indenture
 will henceforth be read in conjunction with this First Supplemental Indenture and all the
 provisions of the Warrant Indenture, except only insofar as the same may be inconsistent
 with the express provisions hereof, will apply and have the same effect as if all the provisions
 of the Warrant Indenture and of this First Supplemental Indenture were contained in one instrument
 and the expressions used herein will have the same meaning as is ascribed to the corresponding
 expressions in the Warrant Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. On
 and after the date hereof, each reference to the Warrant Indenture, as amended by this First
 Supplemental Indenture, "this indenture", "herein", "hereby",
 and similar references, and each reference to the Warrant Indenture in any other agreement,
 certificate, document or instrument relating thereto, will mean and refer to the Warrant
 Indenture as amended hereby. Except as specifically amended by this First Supplemental Indenture,
 all other terms and conditions of the Warrant Indenture will remain in full force and unchanged.

4. The
 Warrant Indenture is hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) amending
 the definition of "Warrants" in Section 1.1 of the Warrant Indenture by deleting
 references to "18,100,714" and replacing such references with "19,843,693";

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| | |
|:---|:---|
| (b) | deleting the definition of "Issue Date" in Section 1.1 of the Warrant Indenture and replacing such definition with the following: |
|  | ""**Issue Date**" means (i) February 22, 2022 with respect to the 6,591,631 Warrants that expire on August 15, 2025; (ii) March 3, 2022 with respect to the 3,909,906 Warrants that expire on August 15, 2025; (iii) August 10, 2022, August 17, 2022 and August 26, 2022 with respect to the 7,599,177 Warrants that expire on August 15, 2025; and (iv) February 28, 2023 with respect to the 1,742,979 Warrants that expire on August 15, 2025;"; |

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| | |
|:---|:---|
| (c) | adding the following definition in Section 1.1 of the Warrant Indenture: |
|  | ""**First Supplemental Indenture**" means the first supplemental warrant indenture between the Company and the Warrant Agent dated as of February 28, 2023;"; |

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| | |
|:---|:---|
| (d) | amending Section 2.1. of the Warrant Indenture by adding the following paragraph immediately after subsection (c) of Section 2.1: |
|  | "In addition to those Warrant issuances set out in subsections (a) to (c) of this Section 2.1, the Company may issue up to an additional 1,742,979 Warrants, each of which when issued shall expire on the Expiry Date."; |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) amending
 Section 2.8. of the Warrant Indenture by adding the following paragraph as subsection (3)
 immediately after subsection (2) and renumbering the prior subsection (3) as subsection (4):

"Each Warrant Certificate originally issued in Canada or to a Canadian holder and each CDS Global Warrant originally issued in Canada and held by the Depository, in each case prior to the date that is four months and one day after the applicable Issue Date of such Warrant Certificate (and each such Warrant Certificate or CDS Global Warrant, as the case may be, issued in exchange therefore or in substitution thereof prior to the date that is four months and a day after the applicable Issue Date of the originally issued Warrant Certificate) shall bear or be deemed to bear the following legend or such variations thereof as the Corporation may prescribe from time to time:

"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE [**INSERT DATE THAT IS 4 MONTHS AND A DAY AFTER THE ISSUE DATE OF THE SECURITY**]".";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) amending
 Section 3.3 of the Warrant Indenture by adding the following paragraph as subsection (4)
 immediately after subsection (3):

"Certificates representing Warrant Shares issued upon the exercise of Warrant Certificates (and issued in substitution or exchange therefor) prior to the date that is four months and one day after the applicable Issue Date shall bear the following legend:

"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE [**INSERT DATE THAT IS 4 MONTHS AND A DAY AFTER THE ISSUE DATE OF THE SECURITY**]".".

5. The
 Warrants issued and outstanding shall be deemed to include the amendments as set forth herein,
 without any further action of the Warrantholders or surrender or exchange of their Warrant
 Certificates.

6. The
 Warrant Indenture is and continues to be in full force and effect, unamended, except as provided
 herein, and the Company hereby confirms the Warrant Indenture in all other respects.

7. This
 First Supplemental Indenture will be governed by and construed in accordance with the laws
 of the Province of British Columbia and the federal laws of Canada applicable therein and
 is binding upon the parties hereto and their respective successors and assigns.

8. This
 First Supplemental Indenture may be simultaneously executed in several counterparts, and
 by facsimile or other electronic reproduction, each of which when so executed shall be deemed
 to be an original and such counterparts together shall constitute one and the same instrument
 and notwithstanding their date of execution shall be deemed to bear the date set out at the
 top of the first page of this First Supplemental Indenture.

**[signature page follows]**

**IN WITNESS WHEREOF** the parties have executed this First Supplemental Indenture under the hands of their proper officers in that behalf.

**VERSES TECHNOLOGIES INC.**

Per: <u>(Signed) *"Gabriel Rene"*</u> <br> Name: Gabriel Rene <br> Title: Chief Executive Officer and Director

Per: <u>(Signed) *"Kevin Wilson"*</u> <br> Name: Kevin Wilson <br> Title: Chief Financial Officer and Secretary

**ENDEAVOR TRUST CORPORATION**

Per: <u>(Signed) *"David Eppert"*</u> <br> Name: David Eppert <br> Title: Chief Executive Officer

Per: <u>(Signed) *"Catherine Wang"*</u> <br> Name: Catherine Wang <br> Title: Chief Financial Officer

## Exhibit 4.4

**Exhibit 4.4**

**THIS SECOND SUPPLEMENTAL WARRANT INDENTURE** is made as of the 21<sup>st</sup> day of March, 2023.

BETWEEN:

**VERSES TECHNOLOGIES INC.**, a company incorporated under the laws of the Province of British Columbia

(the "**Company**")

AND:

**ENDEAVOR TRUST CORPORATION**, a Trust Company authorized in British Columbia, Alberta, Manitoba and Saskatchewan and incorporated under the laws of the Province of British Columbia

(the "**Warrant Agent**")

**WHEREAS:**

A. The Company and the Warrant Agent executed a warrant indenture (the "**Warrant Indenture**") dated as of December 16, 2022 providing for the issue of up to 18,100,714 Warrants (as such term is defined in the Warrant Indenture), with each Warrant entitling the holder thereof to acquire one Class A Subordinate Voting Shares in the capital of the Company at an exercise price of $1.00 (the "**Exercise Price**") per common share until the earlier of: (i) August 15, 2025; and (ii) 30 days following the date of delivery of an Acceleration Notice (as such term is defined in the Warrant Indenture) (the "**Expiry Date**");

B. Section 8.1(g) of the Warrant Indenture provides for the creation of indentures supplemental to the Warrant Indenture for the purposes of providing for the issuance of additional Warrants in excess of the number set out in Section 2.1 of the Warrant Indenture;

C. The Company and the Warrant Agent executed a first supplemental warrant indenture (the "**First Supplemental Indenture**") dated as of February 28, 2023 providing for the increase of the number of Warrants issuable under the Warrant Indenture from 18,100,714 to up to 19,843,693 Warrants;

D. The Company has determined to further amend the Warrant Indenture to increase the number of Warrants issuable thereunder from up to 19,843,693 Warrants to up to 20,508,553 Warrants; and

E. The Warrant Agent is authorized and directed to enter into this Second Supplemental Indenture and to hold all rights, interests and benefits contained herein for and on behalf of those persons who are holders of Warrants issued pursuant to the Warrant Indenture as modified by this Second Supplemental Indenture from time to time.

**NOW THEREFORE, THIS SECOND SUPPLEMENTAL INDENTURE WITNESSES** that for good and valuable consideration mutually given and received, the receipt and sufficiency of which is hereby acknowledged, and the parties hereto agree as follows:

1. Except
 as defined in this Second Supplemental Warrant Indenture, or in the recitals or description
 of the parties herein, all capitalized terms used in this Second Supplemental Warrant Indenture
 shall have the meanings given to them in the Warrant Indenture.

2. This
 Second Supplemental Indenture is supplemental to the Warrant Indenture and the Warrant Indenture
 will henceforth be read in conjunction with this Second Supplemental Indenture, the First
 Supplemental Indenture and all the provisions of the Warrant Indenture, except only insofar
 as the same may be inconsistent with the express provisions hereof, will apply and have the
 same effect as if all the provisions of the Warrant Indenture , of the First Supplemental
 Indenture and of this Second Supplemental Indenture were contained in one instrument and
 the expressions used herein will have the same meaning as is ascribed to the corresponding
 expressions in the Warrant Indenture.

3. On
 and after the date hereof, each reference to the Warrant Indenture, as amended by the First
 Supplemental Indenture and by this Second Supplemental Indenture, "this indenture",
 "herein", "hereby", and similar references, and each reference to
 the Warrant Indenture in any other agreement, certificate, document or instrument relating
 thereto, will mean and refer to the Warrant Indenture as amended hereby. Except as specifically
 amended by the First Supplemental Indenture and this Second Supplemental Indenture, all other
 terms and conditions of the Warrant Indenture will remain in full force and unchanged.

4. The
 Warrant Indenture is hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) amending
 the definition of "Warrants" in Section 1.1 of the Warrant Indenture by deleting
 references to "19,843,693" and replacing such references with "20,508,553";

(b) deleting
 the definition of "Issue Date" in Section 1.1 of the Warrant Indenture and replacing
 such definition with the following:

""**Issue Date**" means (i) February 22, 2022 with respect to the 6,591,631 Warrants that expire on August 15, 2025; (ii) March 3, 2022 with respect to the 3,909,906 Warrants that expire on August 15, 2025; (iii) August 10, 2022, August 17, 2022 and August 26, 2022 with respect to the 7,599,177 Warrants that expire on August 15, 2025; (iv) February 28, 2023 with respect to the 1,742,979 Warrants that expire on August 15, 2025; and (v) March 21, 2023 with respect to the 664,860 Warrants that expire on August 15, 2025";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) adding
the following definition in Section 1.1 of the Warrant Indenture:

""**Second Supplemental Indenture**" means the second supplemental warrant indenture between the Company and the Warrant Agent dated as of March 21, 2023;";

and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) amending
 Section 2.1. of the Warrant Indenture by replacing the paragraph immediately after subsection
 (c) of Section 2.1 with the following:

"In addition to those Warrant issuances set out in subsections (a) to (c) of this Section 2.1, the Company may issue up to an additional 664,860 Warrants, each of which when issued shall expire on the Expiry Date."

5. The
 Warrants issued and outstanding shall be deemed to include the amendments as set forth herein,
 without any further action of the Warrantholders or surrender or exchange of their Warrant
 Certificates.

6. The
 Warrant Indenture is and continues to be in full force and effect, unamended, except as provided
 herein, and the Company hereby confirms the Warrant Indenture in all other respects.

7. This
 Second Supplemental Indenture will be governed by and construed in accordance with the laws
 of the Province of British Columbia and the federal laws of Canada applicable therein and
 is binding upon the parties hereto and their respective successors and assigns.

8. This
 Second Supplemental Indenture may be simultaneously executed in several counterparts, and
 by facsimile or other electronic reproduction, each of which when so executed shall be deemed
 to be an original and such counterparts together shall constitute one and the same instrument
 and notwithstanding their date of execution shall be deemed to bear the date set out at the
 top of the first page of this Second Supplemental Indenture.

**[signature page follows]**

**IN WITNESS WHEREOF** the parties have executed this Second Supplemental Indenture under the hands of their proper officers in that behalf.

---

| | |
|:---|:---|
| **VERSES TECHNOLOGIES INC.** | **VERSES TECHNOLOGIES INC.** |
| Per: | (Signed) "*Gabriel Rene*" |
| Name: | Gabriel Rene |
| Title: | Chief Executive Officer and Director |
| Per: | (Signed) "*Kevin Wilson*" |
| Name: | Kevin Wilson |
| Title: | Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **ENDEAVOR TRUST CORPORATION** | **ENDEAVOR TRUST CORPORATION** |
| Per: | (Signed) "*David Eppert*" |
| Name: | David Eppert |
| Title: | Chief Executive Officer |
| Per: | (Signed) "*Catherine Wang*" |
| Name: | Catherine Wang |
| Title: | Chief Financial Officer |

---

## Exhibit 4.5

**Exhibit 4.5**

**THIS THIRD SUPPLEMENTAL WARRANT INDENTURE** is made as of **the 31st day** of March, 2023.

BETWEEN:

**VERSES AI INC.**, a company incorporated under the laws of the Province of British Columbia

(the "**Company**")

AND:

**ENDEAVOR TRUST CORPORATION**, a Trust Company authorized in British Columbia, Alberta, Manitoba and Saskatchewan and incorporated under the laws of the Province of British Columbia

(the "**Warrant Agent**")

**WHEREAS**:

A. The Company and the Warrant Agent executed a warrant indenture (the "**Warrant Indenture**") dated as of December 16, 2022 providing for the issue of up to 18,100,714 Warrants (as such term is defined in the Warrant Indenture), with each Warrant entitling the holder thereof to acquire one Class A Subordinate Voting Shares in the capital of the Company at an exercise price of $1.00 (the "**Exercise Price**") per common share until the earlier of: (i) August 15, 2025; and (ii) 30 days following the date of delivery of an Acceleration Notice (as such term is defined in the Warrant Indenture) (the "**Expiry Date**");

B. Section 8.1(g) of the Warrant Indenture provides for the creation of indentures supplemental to the Warrant Indenture for the purposes of providing for the issuance of additional Warrants in excess of the number set out in Section 2.1 of the Warrant Indenture;

C. The Company and the Warrant Agent executed a first supplemental warrant indenture (the "**First Supplemental Indenture**") dated as of February 28, 2023 providing for the increase of the number of Warrants issuable under the Warrant Indenture from 18,100,714 to up to 19,843,693 Warrants;

D. The Company and the Warrant Agent executed a second supplemental warrant indenture (the "**Second Supplemental Indenture**") dated as of March 21, 2023 providing for the increase of the number of Warrants issuable under the Warrant Indenture from 19,843,693 to up to 20,508,553 Warrants;

E. The Company has determined to further amend the Warrant Indenture to increase the number of Warrants issuable thereunder from up to 20,508,553 Warrants to up to 20,718,553 Warrants; and

F. The Warrant Agent is authorized and directed to enter into this Third Supplemental Indenture and to hold all rights, interests and benefits contained herein for and on behalf of those persons who are holders of Warrants issued pursuant to the Warrant Indenture as modified by this Third Supplemental Indenture from time to time.

**NOW THEREFORE, THIS THIRD SUPPLEMENTAL INDENTURE WITNESSES** that for good and valuable consideration mutually given and received, the receipt and sufficiency of which is hereby acknowledged, and the parties hereto agree as follows:

1. Except
 as defined in this Third Supplemental Warrant Indenture, or in the recitals or description
 of the parties herein, all capitalized terms used in this Third Supplemental Warrant Indenture
 shall have the meanings given to them in the Warrant Indenture.

2. This
 Third Supplemental Indenture is supplemental to the Warrant Indenture and the Warrant Indenture
 will henceforth be read in conjunction with this Second Supplemental Indenture, the First
 Supplemental Indenture and all the provisions of the Warrant Indenture, except only insofar
 as the same may be inconsistent with the express provisions hereof, will apply and have the
 same effect as if all the provisions of the Warrant Indenture , of the First Supplemental
 Indenture and of this Third Supplemental Indenture were contained in one instrument and the
 expressions used herein will have the same meaning as is ascribed to the corresponding expressions
 in the Warrant Indenture.

3. On
 and after the date hereof, each reference to the Warrant Indenture, as amended by the First
 Supplemental Indenture and by this Second Supplemental Indenture, "this indenture",
 "herein", "hereby", and similar references, and each reference to
 the Warrant Indenture in any other agreement, certificate, document or instrument relating
 thereto, will mean and refer to the Warrant Indenture as amended hereby. Except as specifically
 amended by the First Supplemental Indenture and this Second Supplemental Indenture, all other
 terms and conditions of the Warrant Indenture will remain in full force and unchanged.

4. The
 Warrant Indenture is hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) amending
 the definition of "Warrants" in Section 1.1 of the Warrant Indenture by deleting
 references to "20,508,553" and replacing such references with "20,718,553";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) deleting
 the definition of "Issue Date" in Section 1.1 of the Warrant Indenture and replacing
 such definition with the following:

""**Issue Date**" means (i) February 22, 2022 with respect to the 6,591,631 Warrants that expire on August 15, 2025; (ii) March 3, 2022 with respect to the 3,909,906 Warrants that expire on August 15, 2025; (iii) August 10, 2022, August 17, 2022 and August 26, 2022 with respect to the 7,599,177 Warrants that expire on August 15, 2025; (iv) February 28, 2023 with respect to the 1,742,979 Warrants that expire on August 15, 2025; (v) March 21, 2023 with respect to the 664,860 Warrants that expire on August 15, 2025; and (vi) March 31, 2023 with respect to the 210,000 Warrants that expire on August 15, 2025";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) adding the following definition
 in Section 1.1 of the Warrant Indenture:

""**Third Supplemental Indenture**" means the third supplemental warrant indenture between the Company and the Warrant Agent dated as of March 31, 2023;"; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) amending
 Section 2.1. of the Warrant Indenture by replacing the paragraph immediately after subsection
 (c) of Section 2.1 with the following:

"In addition to those Warrant issuances set out in subsections (a) to (c) of this Section 2.1, the Company may issue up to an additional 2,617,839 Warrants, each of which when issued shall expire on the Expiry Date."

5. The
 Warrants issued and outstanding shall be deemed to include the amendments as set forth herein,
 without any further action of the Warrantholders or surrender or exchange of their Warrant
 Certificates.

6. The
 Warrant Indenture is and continues to be in full force and effect, unamended, except as provided
 herein, and the Company hereby confirms the Warrant Indenture in all other respects.

7. This
 Third Supplemental Indenture will be governed by and construed in accordance with the laws
 of the Province of British Columbia and the federal laws of Canada applicable therein and
 is binding upon the parties hereto and their respective successors and assigns.

8. This
 Third Supplemental Indenture may be simultaneously executed in several counterparts, and
 by facsimile or other electronic reproduction, each of which when so executed shall be deemed
 to be an original and such counterparts together shall constitute one and the same instrument
 and notwithstanding their date of execution shall be deemed to bear the date set out at the
 top of the first page of this Second Supplemental Indenture.

[**signature page follows**]

**IN WITNESS WHEREOF** the parties have executed this Third Supplemental Indenture under the hands of their proper officers in that behalf.

---

| | |
|:---|:---|
| **VERSES AI INC.** | **VERSES AI INC.** |
| Per: | (Signed) "*Gabriel Rene*" |
| Name: | Gabriel Rene |
| Title: | Chief Executive Officer and Director |
| Per: | (Signed) "*Kevin Wilson*" |
| Name: | Kevin Wilson |
| Title: | Chief Financial Officer and Secretary |
| **ENDEAVOR TRUST CORPORATION** | **ENDEAVOR TRUST CORPORATION** |
| Per: | (Signed) "*David Eppert*" |
| Name: | David Eppert |
| Title: | Chief Executive Officer |
| Per: | (Signed) "*Catherine Wang*" |
| Name: | Catherine Wang |
| Title: | Chief Financial Officer |

---

## Exhibit 4.6

**Exhibit 4.6**

**VERSES AI INC.**

as the Company

and

**ENDEAVOR TRUST CORPORATION**

as the Warrant Agent

**WARRANT INDENTURE**

**Providing for the Governance of up to 8,712,463 Warrants**

Dated as of July 6, 2023

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **<u>Page No.</u>** |
|  | **Article 1** |  |
|  | **INTERPRETATION** |  |
| Section 1.1 | Definitions. | 3 |
| Section 1.2 | Gender and Number. | 8 |
| Section 1.3 | Headings, Etc. | 8 |
| Section 1.4 | Day not a Business Day. | 8 |
| Section 1.5 | Time of the Essence. | 8 |
| Section 1.6 | Monetary References. | 8 |
| Section 1.7 | Applicable Law. | 8 |
| Section 1.8 | Statutory References. | 8 |
|  | **Article 2** |  |
|  | **ISSUED WARRANTS** |  |
| Section 2.1 | Creation and Issue of Warrants. | 9 |
| Section 2.2 | Terms of Warrants. | 9 |
| Section 2.3 | Warrantholder not a Shareholder. | 10 |
| Section 2.4 | Warrants to Rank Pari Passu. | 10 |
| Section 2.5 | Form of Warrants, Warrant Certificates. | 10 |
| Section 2.6 | Book Entry Warrants. | 10 |
| Section 2.7 | Warrant Certificate. | 12 |
| Section 2.8 | Legends. | 14 |
| Section 2.9 | Register of Warrants | 15 |
| Section 2.10 | Issue in Substitution for Warrant Certificates Lost, etc. | 17 |
| Section 2.11 | Exchange of Warrant Certificates. | 17 |
| Section 2.12 | Transfer and Ownership of Warrants. | 17 |
| Section 2.13 | Cancellation of Surrendered Warrants. | 18 |
|  | **Article 3** |  |
|  | **EXERCISE OF WARRANTS** |  |
| Section 3.1 | Right of Exercise. | 18 |
| Section 3.2 | Warrant Exercise. | 19 |
| Section 3.3 | Limitations on Exercise; Legended Certificates | 21 |
| Section 3.4 | Transfer Fees and Taxes. | 22 |
| Section 3.5 | Warrant Agency. | 22 |
| Section 3.6 | Effect of Exercise of Warrant Certificates. | 23 |
| Section 3.7 | Partial Exercise of Warrants; Fractions. | 23 |
| Section 3.8 | Expiration of Warrants. | 23 |
| Section 3.9 | Accounting and Recording. | 24 |
| Section 3.10 | Securities Restrictions. | 24 |

---

---

| | | |
|:---|:---|:---|
|  | **Article 4** |  |
|  | **ADJUSTMENT OF NUMBER OF Warrant SHARES** |  |
|  | **AND EXERCISE PRICE** |  |
| Section 4.1 | Adjustment of Number of Warrant Shares and Exercise Price. | 24.0 |
| Section 4.2 | Entitlement to Warrant Shares on Exercise of Warrant. | 28.0 |
| Section 4.3 | No Adjustment for Certain Transactions. | 28.0 |
| Section 4.4 | Determination by Independent Firm. | 28.0 |
| Section 4.5 | Proceedings Prior to any Action Requiring Adjustment. | 29.0 |
| Section 4.6 | Certificate of Adjustment. | 29.0 |
| Section 4.7 | Notice of Special Matters. | 29.0 |
| Section 4.8 | No Action after Notice. | 29.0 |
| Section 4.9 | Other Action. | 30.0 |
| Section 4.10 | Protection of Warrant Agent. | 30.0 |
| Section 4.11 | Participation by Warrantholder. | 30.0 |
|  | **Article 5** |  |
|  | **RIGHTS OF THE Company AND COVENANTS** |  |
| Section 5.1 | Optional Purchases by the Company. | 31.0 |
| Section 5.2 | General Covenants. | 31.0 |
| Section 5.3 | Warrant Agent's Remuneration and Expenses. | 32.0 |
| Section 5.4 | Performance of Covenants by Warrant Agent. | 32.0 |
| Section 5.5 | Enforceability of Warrants. | 32.0 |
|  | **Article 6** |  |
|  | **ENFORCEMENT** |  |
| Section 6.1 | Suits by Registered Warrantholders. | 32.0 |
| Section 6.2 | Suits by the Company. | 33.0 |
| Section 6.3 | Immunity of Shareholders, etc. | 33.0 |
| Section 6.4 | Waiver of Default. | 33.0 |
|  | **Article 7** |  |
|  | **MEETINGS OF REGISTERED WARRANTHOLDERS** |  |
| Section 7.1 | Right to Convene Meetings. | 34.0 |
| Section 7.2 | Notice. | 34.0 |
| Section 7.3 | Chairman. | 34.0 |
| Section 7.4 | Quorum. | 34.0 |
| Section 7.5 | Power to Adjourn. | 35.0 |
| Section 7.6 | Show of Hands. | 35.0 |
| Section 7.7 | Poll and Voting. | 35.0 |
| Section 7.8 | Regulations. | 35.0 |
| Section 7.9 | Corporation and Warrant Agent May be Represented. | 36.0 |
| Section 7.10 | Powers Exercisable by Extraordinary Resolution. | 36.0 |
| Section 7.11 | Meaning of Extraordinary Resolution. | 37.0 |
| Section 7.12 | Powers Cumulative. | 37.0 |
| Section 7.13 | Minutes. | 38.0 |
| Section 7.14 | Instruments in Writing. | 38.0 |
| Section 7.15 | Binding Effect of Resolutions. | 38.0 |
| Section 7.16 | Holdings by Company Disregarded. | 38.0 |

---

****

<br> ---

| | | |
|:---|:---|:---|
|  | **Article 8** |  |
|  | **SUPPLEMENTAL INDENTURES** |  |
| Section 8.1 | Provision for Supplemental Indentures for Certain Purposes. | 38.0 |
| Section 8.2 | Successor Entities. | 39.0 |
|  | **Article 9** |  |
|  | **CONCERNING THE WARRANT Agent** |  |
| Section 9.1 | Trust Indenture Laws. | 40.0 |
| Section 9.2 | Rights and Duties of Warrant Agent. | 40.0 |
| Section 9.3 | Evidence, Experts and Advisers. | 41.0 |
| Section 9.4 | Documents, Monies, etc. Held by Warrant Agent. | 42.0 |
| Section 9.5 | Actions by Warrant Agent to Protect Interest. | 42.0 |
| Section 9.6 | Warrant Agent Not Required to Give Security. | 42.0 |
| Section 9.7 | Protection of Warrant Agent. | 42.0 |
| Section 9.8 | Replacement of Warrant Agent; Successor by Merger. | 44.0 |
| Section 9.9 | Acceptance of Agency | 45.0 |
| Section 9.10 | Warrant Agent Not to be Appointed Receiver. | 45.0 |
| Section 9.11 | Warrant Agent Not Required to Give Notice of Default. | 45.0 |
| Section 9.12 | Anti-Money Laundering. | 45.0 |
| Section 9.13 | Compliance with Privacy Code. | 46.0 |
| Section 9.14 | Securities Exchange Commission Certification. | 46.0 |
| Section 9.15 | Representations of the Warrant Agent | 47.0 |
|  | **Article 10** |  |
|  | **GENERAL** |  |
| Section 10.1 | Notice to the Company and the Warrant Agent. | 48.0 |
| Section 10.2 | Notice to Registered Warrantholders. | 49.0 |
| Section 10.3 | Ownership of Warrants. | 49.0 |
| Section 10.4 | Counterparts. | 49.0 |
| Section 10.5 | Satisfaction and Discharge of Indenture. | 50.0 |
| Section 10.6 | Provisions of Indenture and Warrants for the Sole Benefit of Parties and Registered Warrantholders. | 50.0 |
| Section 10.7 | Class A Shares or Warrants Owned by the Company or its Subsidiaries - Certificate to be Provided. | 50.0 |
| Section 10.8 | Severability | 51.0 |
| Section 10.9 | Force Majeure | 51.0 |
| Section 10.10 | Assignment, Successors and Assigns | 51.0 |
| Section 10.11 | Rights of Rescission and Withdrawal for Holders | 51.0 |

---

**SCHEDULES**

SCHEDULE "A" FORM OF WARRANT

SCHEDULE "B"

EXERCISE FORM

SCHEDULE "C"

FORM OF DECLARATION FOR REMOVAL OF LEGEND

SCHEDULE "D"

FORM OF U.S. PURCHASER CERTIFICATION UPON EXERCISE OF WARRANTS

**WARRANT INDENTURE**

**THIS WARRANT INDENTURE** (the "**Indenture**") is dated as of July 6, 2023.

**BETWEEN:** 

**VERSES AI INC.**, a Company incorporated under the laws of the Province of British Columbia (the "**Company**"),

- AND -

**ENDEAVOR TRUST CORPORATION**, a Trust Company authorized in British Columbia, Alberta, Manitoba and Saskatchewan and incorporated under the laws of British Columbia, with its head office in the City of Vancouver, in the Province of British Columbia (the "**Warrant Agent**").

**WHEREAS:**

A. pursuant
 to the terms of an underwriting and agency agreement dated July 6, 2023 (the "**UA Agreement** "), entered into among
 the Company and Canaccord Genuity Corp. and ATB Capital Markets Inc. (the "**Lead Brokers** "), as co-lead underwriters
 and co-lead agents, and a syndicate consisting of Cormark Securities Inc., Haywood Securities Inc. and PI Financial Corp., the Company
 proposes to issue 4,878,048 units (the "**Units**") pursuant to the Listed Issuer Financing Exemption (as defined
 below), each Unit consisting of one Class A Subordinate Voting share of the Company (each, a "**Class A Share** ")
 and one-half of one Class A Share purchase warrant (each whole warrant, a "**Warrant** "), at a price of $2.05 per
 Unit for gross proceeds of $9,999,998.40 (the "**LIFE Offering** ").

B. pursuant
 to the terms of the UA Agreement and the special warrant indenture dated July 6, 2023 (the "**Special Warrant Indenture** ")
 entered into between the Company and the Special Warrant Agent (as defined in the Special Warrant Indenture), the Company proposes
 to issue to 6,612,849 special warrants (each, a "**Special Warrant**") pursuant to applicable exemptions from the
 ‎prospectus requirements other than the Listed Issuer ‎Financing Exemption, at a price of $2.05 per Special Warrant for
 gross proceeds of up to $13,556,340.45 (the "**Special Warrant Offering** ", and together with the LIFE Offering, the
 "**Offering** "), which Special Warrants will be automatically exercisable into up to 7,274,134 Units in accordance
 with the terms of the Special Warrant Indenture, subject to adjustment in accordance with the terms of the Special Warrant Indenture,
 without payment of additional consideration;

C. pursuant
 to terms of the UA Agreement, the Company proposes to issue 383,744 compensation warrants (the "**Broker Warrants** ")
 to: (i) the underwriters and agents under the UA Agreement; (ii) certain finders under the Offering; and (iii) Triview Capital Ltd.
 (collectively, the "**Compensation Group** "), with each Broker Warrant entitling the holder thereof to acquire one
 Unit at a price of $2.05 per Unit;

D. pursuant
 to terms of the UA Agreement, the Company also proposes to issue 405,383 compensation special warrants (the "**Broker Special Warrants**") to the Compensation Group, which Broker Special Warrants will be automatically exercisable into up to 445,921
 compensation warrants (the "**SW Broker Warrants** "), on terms identical to the Broker Warrants;

E. pursuant
 to the terms of a fiscal advisory agreement dated July 6, 2023 (the "**Fiscal Advisory Agreement** "), entered into
 among the Company and the Lead Brokers, the Company proposes to issue 50,000 fiscal advisory units (the "**FA Units** ")
 to the Lead Brokers, which FA Units will be issued on the same terms of the Units;

F. on
 February 28, 2023, March 21, 2023 and March 31, 2023, the Company completed three tranches of a non-brokered private placement of
 convertible debenture units, pursuant to which, among other things, it sold convertible debentures (the "**Convertible Debentures** ")
 in the aggregate principal amount of C$7,504,845.30;

G. pursuant
 to the terms of the Convertible Debentures, the principal amount and accrued interest of each Convertible Debenture shall be converted,
 upon the Company completing a bona fide transaction pursuant to which the Company issues and sells securities (the "**Conversion Financing**") for aggregate gross proceeds of at least C$10,000,000 before the maturity date of the Convertible Debentures,
 into that number of equivalent securities sold under the Conversion Financing as is equal to the principal amount and accrued interest
 divided by the applicable selling price of the Conversion Financing;

H. the
 Offering will constitute a Conversion Financing, and the Convertible Debentures will convert into up to 4,393,080 Units upon completion
 of the Offering;

I. pursuant
 to this Indenture: (i) each Warrant comprising the Units sold under the LIFE Offering; (ii) each Warrant comprising the Units issued
 pursuant to the automatic exercise of the Special Warrants; (iii) each Warrant comprising the Units issued pursuant to the exercise
 of the Broker Warrants; (iv) each Warrant comprising the Units issued pursuant to the exercise of the SW Broker Warrants; (v) each
 Warrant comprising the FA Units issued to the Lead Brokers, as applicable; and (vi) each Warrant comprising the Units issued pursuant
 to the conversion of the Convertible Debentures, shall, subject to adjustment, entitle the holder thereof to acquire one Class A
 Share (each, a "**Warrant Share**") upon payment of the Exercise Price (as defined below) prior to the Expiry Time
 (as defined below) upon the terms and conditions herein set forth;

J. the
 Company is proposing to issue up to a maximum of 8,712,463 Warrants pursuant to this Indenture;

K. each
 Warrant issued in the LIFE Offering pursuant to the Listed Issuer Financing Exemption shall not be subject to a statutory hold period;

L. all
 acts and deeds necessary have been done and performed to make the Warrants created and issued as legal, valid and binding upon the
 Company with the benefits and subject to the terms of this Indenture; and

M. the
 foregoing recitals are made as representations and statements of fact by the Company and not by the Warrant Agent.

**NOW THEREFORE**, in consideration of the premises and mutual covenants hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company hereby appoints the Warrant Agent as warrant agent to hold the rights, interests and benefits contained herein for and on behalf of those persons who are and from time to time become the holders of Warrants governed by this Indenture and the parties hereto agree as follows:

**Article 1<br> INTERPRETATION**

---

| | |
|:---|:---|
| **Section 1.1** | **Definitions.** |

---

In this Indenture, including the recitals and schedules hereto, and in all indentures supplemental hereto:

"**Acceleration Notice**" means the notice of acceleration deliverable to Registered Warrantholders upon the Company's exercise of the Acceleration Right, which notice of acceleration shall be delivered in accordance with Section 10.2 hereof;

"**Acceleration Right**" means the right of the Company to accelerate the Expiry Date to the date that is 30 days following delivery of the Acceleration Notice to the Registered Warrantholders if, at any time prior to the Expiry Date, the volume-weighted average trading price of the Class A Shares on the NEO (or such other principal exchange or market where the Class A Shares are then listed or quoted for trading) exceeds $5.55, as adjusted in accordance with this Indenture, for a period of 10 consecutive trading days;

**"Adjustment Period**" means the period from the Effective Date up to and including the Expiry Time;

"**Applicable Laws**" means any statute of Canada or a province thereof, and the regulations under any such named or other statute, relating to warrant indentures or to the rights, duties and obligations of warrant agents under warrant indentures, to the extent that such provisions are at the time in force and applicable to this Indenture;

"**Auditors**" means Smythe LLP, or such other firm of chartered accountants duly appointed as auditors of the Company, from time to time;

**"Authenticated**" means (a) with respect to the issuance of a Warrant Certificate, one which has been duly signed by the Company or on which the signatures of the Company have been printed, lithographed or otherwise mechanically reproduced and authenticated by manual or electronic signature of an authorized officer of the Warrant Agent, and (b) with respect to the issuance of an Uncertificated Warrant, one in respect of which the Warrant Agent has completed all Internal Procedures such that the particulars of such Uncertificated Warrant as required by Section 2.7 are entered in the register of holders of Warrants, "*Authenticate*", "*Authenticating*" and "*Authentication*" have the appropriate correlative meanings;

"**Book Entry Participants**" means institutions that participate directly or indirectly in the Depository's book entry registration system for the Warrants;

"**Book Entry Warrants**" means Warrants that are to be held only by or on behalf of the Depository;

"**Business Day**" means any day other than Saturday, Sunday or a statutory or civic holiday, or any other day on which banks are not open for business in the City of Vancouver**,** Province of British Columbia**,** and shall be a day on which the NEO is open for trading;

"**CDS Global Warrants**" means Warrants representing all or a portion of the aggregate number of Warrants issued in the name of the Depository and represented by an Uncertificated Warrant, or if requested by the Depository or the Company, by a Warrant Certificate;

"**CDSX**" means the settlement and clearing system of CDS Clearing and Depository Services Inc. for equity and debt securities in Canada;

"**Class A Shares**" means, subject to Article 4, fully paid Class A Subordinate Voting Shares in the capital of the Company as presently constituted;

"**Class A Share Reorganization**" has the meaning set forth in Section 4.1;

"**Counsel**" means a barrister and/or solicitor or a firm of barristers and/or solicitors retained by the Warrant Agent or retained by the Company, which may or may not be counsel for the Company;

"**Current Market Price**" means, at any date, the volume weighted average price per share at which the Class A Shares have traded:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on
 the NEO;

(b) if
 the Class A Shares are not listed on the NEO, on any stock exchange upon which the Class A Shares are listed as may be selected for
 this purpose by the board of directors of the Company, acting reasonably; or

(c) if
 the Class A Shares are not listed on any stock exchange, on any over-the-counter market on which the Class A Shares are trading,
 as may be selected for this purpose by the board of directors of the Company, acting reasonably;

"**Depository**" means CDS Clearing and Depository Services Inc. and Depository Trust Clearing Company or such other person as is designated in writing by the Company to act as depository in respect of the Warrants;

"**Dividends**" means any dividends paid by the Company;

"**Effective Date**" means the date of this Indenture;

"**Exchange Rate**" means the number of Warrant Shares subject to the right of purchase under each Warrant;

"**Exercise Date**" means, in relation to a Warrant, the Business Day on which such Warrant is validly exercised or deemed to be validly exercised in accordance with Article 3 hereof;

"**Exercise Notice**" has the meaning set forth in Section 3.2(1);

"**Exercise Price**" at any time means the price at which a whole Warrant Share may be purchased by the exercise of a whole Warrant, which is initially $2.55 per Warrant Share, payable in immediately available Canadian funds, subject to adjustment in accordance with the provisions of Section 4.1;

"**Expiry Date**" means the earlier of (i) July 6, 2026; and (ii) 30 days following the date of delivery of an Acceleration Notice;

"**Expiry Time**" means 4:00 p.m. (Vancouver time) on the Expiry Date;

"**Extraordinary Resolution**" has the meaning set forth in Section 7.11(1);

"**Internal Procedures**" means in respect of the making of any one or more entries to, changes in or deletions of any one or more entries in the register at any time (including without limitation, original issuance or registration of transfer of ownership) the minimum number of the Warrant Agent's internal procedures customary at such time for the entry, change or deletion made to be complete under the operating procedures followed at the time by the Warrant Agent;

"**Issue Date**" means (i) with respect to Warrants issued under the LIFE Offering, July 6, 2023; (ii) for a particular Warrant issuable upon automatic exercise of the Special Warrants, such date on which the Special Warrant(s) pursuant to which such Warrant is/are exercised or deemed exercised in accordance with the Special Warrant Indenture; (iii) for a particular Warrant issuable upon exercise of the Broker Warrants, such date on which the Broker Warrant(s) pursuant to which such Warrant is/are exercised pursuant to the certificates governing the Broker Warrant(s); (iv) for a particular Warrant issuable upon exercise of the SW Broker Warrants, such date on which the SW Broker Warrant(s) pursuant to which such Warrant is/are exercised pursuant to the certificates governing the SW Broker Warrant(s); (v) for a particular Warrant issuable under the Fiscal Advisory Agreement, such date on which the FA Units are to be issued pursuant to the terms of the Fiscal Advisory Agreement; and (vi) for a particular Warrant issuable upon conversion of the Convertible Debentures, such date on which the principal amount of the Convertible Debentures is deemed to be converted into Units pursuant to the certificates governing the Convertible Debentures;

"**Listed Issuer Financing Exemption**" means the exemption from the prospectus requirements under Canadian securities laws pursuant to part 5A of National Instrument 45-106 – *Prospectus Exemptions*;

"**NEO**" means the Neo Exchange Inc.;

"**Original QIB Purchaser**" means an original purchaser of Warrants who, as a U.S. Purchaser that qualifies as a Qualified Institutional Buyer, has executed and delivered a U.S. QIB Letter;

"**person**" means an individual, body corporate, partnership, trust, warrant agent, executor, administrator, legal representative or any unincorporated organization;

"**Qualified Institutional Buyer**" means a "qualified institutional buyer" as defined in Rule 144A of the U.S. Securities Act;

"**register**" means the one set of records and accounts maintained by the Warrant Agent pursuant to Section 2.9:

"**Registered Warrantholders**" means the persons who are registered owners of Warrants as such names appear on the register, and for greater certainty, shall include the Depository as well as the holders of Uncertificated Warrants appearing on the register of the Warrant Agent;

"**Regulation D**" means Regulation D as promulgated by the United States Securities and Exchange Commission under the U.S. Securities Act;

"**Regulation S**" means Regulation S as promulgated by the United States Securities and Exchange Commission under the U.S. Securities Act;

"**Rights Offering**" has the meaning set forth in Section 4.1(b);

"**Shareholders**" means holders of Class A Shares;

"**Tax Act**" means the *Income Tax Act* (Canada) and the regulations thereunder;

**"this Warrant Indenture**", "**this Indenture**", "**this Agreement**", "**hereto**" "**herein**", "**hereby**", "**hereof**" and similar expressions mean and refer to this Indenture and any indenture, deed or instrument supplemental hereto; and the expressions "**Article**", "**Section**", "**subsection**" and "**paragraph**" followed by a number, letter or both mean and refer to the specified article, section, subsection or paragraph of this Indenture;

"**Trading Day**" means, with respect to the NEO, a day on which such exchange is open for the transaction of business and with respect to another exchange or an over-the-counter market means a day on which such exchange or market is open for the transaction of business;

"**Uncertificated Warrant**" means any Warrant which is not evidenced by a Warrant Certificate;

"**United States**" means the United States of America, its territories and possessions, any state of the United States, and the District of Columbia;

"**U.S. Accredited Investor Certificate**" means a United States Accredited Investor Letter executed by a U.S. Purchaser in connection with its acquisition of the Units or Special Warrants, as applicable, in the form provided to such U.S. Purchaser, wherein the U.S. Purchaser has represented and warranted that it qualifies as an "accredited investor" as defined in Rule 501(a) of Regulation D and is making the covenants, representations and warranties set forth in the U.S. Accredited Investor Certificate;

"**U.S. Exchange Act**" means the United States Securities Exchange Act of 1934, as amended;

"**U.S. Person**" has the meaning set forth in Rule 902(k) of Regulation S;

"**U.S. Purchaser**" means (i) any U.S. Person or person in the United States that purchased Units in the LIFE Offering or purchased Special Warrants in the Special Warrant Offering, (ii) any person that purchased Units in the LIFE Offering or Special Warrants in the Special Warrant Offering for the account or benefit of any U.S. Person or any person in the United States, (iii) any purchaser of Units that received an offer of the Units or Special Warrants while in the United States, or (iv) any person that was in the United States at the time such person's buy order was made for Units or Special Warrants was executed or delivered;

"**U.S. Purchaser Letter**" means the U.S. Purchaser letter in substantially the form attached hereto as Schedule "D";

"**U.S. QIB Letter**" means a Qualified Institutional Buyer Letter executed by an Original QIB Purchaser in connection with its acquisition of the Units or Special Warrants, as applicable, in the form provided to such Original QIB Purchaser, wherein the Original QIB Purchaser has represented and warranted that it qualifies as a Qualified Institutional Buyer and is making the covenants, representations and warranties set forth in the U.S. QIB Letter;

"**U.S. Securities Act**" means the *United States Securities Act of 1933*, as amended;

"**U.S. Warrantholder**" means any Warrantholder that is a U.S. Person, acquired Warrants in the United States or for the account or benefit of any U.S. Person or Person in the United States;

"**Warrants**" means up to 8,712,463 Class A Share purchase warrants created, authorized and issued by the Company on the Issue Date and governed by this Indenture to be Authenticated hereunder as a Warrant Certificate and /or Uncertificated Warrant held through the book entry registration system on a no certificate issued basis, entitling the holder or holders thereof to purchase up to 8,712,463 Warrant Shares (subject to adjustment as herein provided) at the Exercise Price prior to the Expiry Time;

"**Warrant Agency**" means the principal office of the Warrant Agent in the City of Vancouver, British Columbia or such other place as may be designated in accordance with Section 3.5;

"**Warrant Agent**" means Endeavor Trust Corporation, in its capacity as warrant agent of the Warrants, or its successors from time to time;

"**Warrant Certificate**" means a certificate, substantially in the form set forth in Schedule "A" hereto, to evidence those Warrants that will be evidenced by a certificate;

"**Warrantholders**", or "**holders**" without reference to Warrants, means the warrantholders as and in respect of Warrants registered in the name of the Depository and includes owners of Warrants who beneficially hold securities entitlements in respect of the Warrants through a Book Entry Participant or means, at a particular time, the persons entered in the register hereinafter mentioned as holders of Warrants outstanding at such time;

"**Warrantholders' Request**" means an instrument signed in one or more counterparts by Registered Warrantholders entitled to acquire in the aggregate not less than 50% of the aggregate number of Warrant Shares which could be acquired pursuant to all Warrants then unexercised and outstanding, requesting the Warrant Agent to take some action or proceeding specified therein;

"**written order of the Company**", "**written request of the Company**", "**written consent of the "Corporation**" and "**certificate of the Company**" mean, respectively, a written order, request, consent and certificate signed in the name of the Company by any two duly authorized signatories of the Company and may consist of one or more instruments so executed; and

"**Warrant Shares**" has the meaning, subject to Article 4, set forth in the preambles hereto.

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|:---|:---|
| **Section 1.2** | **Gender and Number.** |

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Words importing the singular number or masculine gender shall include the plural number or the feminine or neuter genders, and vice versa.

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|:---|:---|
| **Section 1.3** | **Headings, Etc.** |

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The division of this Indenture into Articles and Sections, the provision of a **Table of Contents** and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Indenture or of the Warrants.

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|:---|:---|
| **Section 1.4** | **Day not a Business Day.** |

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If any day on or before which any action or notice is required to be taken or given hereunder is not a Business Day, then such action or notice shall be required to be taken or given on or before the requisite time on the next succeeding day that is a Business Day.

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|:---|:---|
| **Section 1.5** | **Time of the Essence.** |

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Time shall be of the essence in this Indenture and each Warrant.

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|:---|:---|
| **Section 1.6** | **Monetary References.** |

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Whenever any amounts of money are referred to herein, such amounts shall be deemed to be in lawful money of Canada unless otherwise expressed.

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|:---|:---|
| **Section 1.7** | **Applicable Law.** |

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This Indenture, the Warrants, the Warrant Certificates (including all documents relating thereto, which by common accord have been and will be drafted in English) shall be construed in accordance with the laws of the Province of British Columbia, and the federal laws of Canada applicable therein and shall be treated in all respects as British Columbia contracts. Each of the parties hereto, which shall include the Warrantholders, irrevocably attorns to the exclusive jurisdiction of the courts of the Province of British Columbia with respect to all matters arising out of this Indenture and the transactions contemplated herein.

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| | |
|:---|:---|
| **Section 1.8** | **Statutory References.** |

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In this Indenture, unless something in the subject matter or context is inconsistent therewith or unless otherwise herein provided, a reference to any statute is to that statute as now enacted or as the same may from time to time be amended, re-enacted or replaced and includes any regulation made thereunder.

**Article 2<br> ISSUED WARRANTS**

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| | |
|:---|:---|
| **Section 2.1** | **Creation and Issue of Warrants.** |

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A maximum of up to 8,712,463 Warrants (subject to adjustment as herein provided) are hereby authorized to be created and issued in accordance with the terms and conditions hereof. The Warrant Agent shall deliver Authenticated Warrants to Warrantholders upon: (a) closing of the LIFE Offering; (ii) the exercise or deemed exercise of the Special Warrants; (iii) the exercise of the Broker Warrants; (iv) the exercise of the SW Broker Warrants; (v) the issuance of the FA Units pursuant to the terms of the Fiscal Advisory Agreement; and (vi) the conversion of the Convertible Debentures, in each case in accordance with the written direction of the Corporation delivered to the Warrant Agent and record the name of the Warrantholders on the Warrant register. Registration of interests in Warrants held by the Depository may be evidenced by a position appearing on the register for Warrants for an amount representing the aggregate number of such Warrants outstanding from time to time.

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|:---|:---|
| **Section 2.2** | **Terms of Warrants.** |

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(1) Subject
 to the applicable conditions for exercise set out in Article 3 having been satisfied and subject to adjustment in accordance with
 Section 4.1, each whole Warrant shall entitle each Warrantholder thereof, upon exercise at any time after the applicable Issue Date
 and prior to the Expiry Time, to acquire one (1) Warrant Share upon payment of the Exercise Price.

(2) No
 fractional Warrants shall be issued or otherwise provided for hereunder and Warrants may only be exercised in a sufficient number
 to acquire whole numbers of Warrant Shares.

(3) Each
 whole Warrant shall entitle the holder thereof to such other rights and privileges as are set forth in this Indenture. Any fractional
 Warrants shall be rounded down to the nearest whole number and no consideration shall be paid for any such fractional Warrant.

(4) The
 number of Warrant Shares which may be purchased pursuant to the Warrants and the Exercise Price therefor shall be adjusted upon the
 events and in the manner specified in Section 4.1.

(5) If,
 at any time prior to the Expiry Date, the volume-weighted average trading price of the Class A Shares on the NEO (or such other principal
 exchange or market where the Class A Shares are then listed or quoted for trading) exceeds $5.55, as adjusted in accordance with
 this Indenture, for a period of 10 consecutive trading days, the Company shall be entitled, at the option of the Company, to exercise
 the Acceleration Right by delivering an Acceleration Notice to the Registered Warrantholders. An Acceleration Notice shall be delivered
 to each Registered Warrantholder in the manner in Section 10.2.

(6) Neither
 the Company nor the Warrant Agent shall have any obligation to deliver Warrant Shares upon the exercise of any Warrant if the person
 to whom such shares are to be delivered is a resident of a country or political subdivision thereof in which the Warrant Shares may
 not lawfully be issued pursuant to applicable securities laws. The Company or the Warrant Agent may require any person to provide
 proof of an applicable exemption from such securities laws to the Company and Warrant Agent before Warrant Shares are delivered pursuant
 to the exercise of any Warrant.

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|:---|:---|
| **Section 2.3** | **Warrantholder not a Shareholder.** |

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Except as may be specifically provided herein, nothing in this Indenture or in the holding of a Warrant Certificate, entitlement to a Warrant or otherwise, shall, in itself, confer or be construed as conferring upon a Warrantholder any right or interest whatsoever as a Shareholder, including, but not limited to, the right to vote at, to receive notice of, or to attend, meetings of Shareholders or any other proceedings of the Company, or the right to Dividends and other allocations.

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| | |
|:---|:---|
| **Section 2.4** | **Warrants to Rank Pari Passu.** |

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All Warrants shall rank equally and without preference over each other, whatever may be the actual date of issue thereof.

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|:---|:---|
| **Section 2.5** | **Form of Warrants, Warrant Certificates.** |

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(1) The
 Warrants may be issued in both certificated and uncertificated form. Each Warrant originally issued to a U.S. Warrantholder who is
 not a Qualified Institutional Buyer who executed a QIB Certificate will be evidenced in certificated form only and bear the applicable
 legends as set forth in Schedule "A" hereto. All Warrants issued in certificated form shall be evidenced by a Warrant
 Certificate (including all replacements issued in accordance with this Indenture), substantially in the form and bearing the applicable
 legends as set out in Schedule "A" hereto, which shall be dated as of the applicable Issue Date, shall bear such distinguishing
 letters and numbers as the Company may, with the approval of the Warrant Agent, prescribe, and shall be issuable in any denomination
 excluding fractions. All Warrants issued to the Depository may be in either a certificated or uncertificated form, such uncertificated
 form being evidenced by a book position on the register of Warrantholders to be maintained by the Warrant Agent in accordance with
 Section 2.6.

(2) Each
 Warrantholder by holding such Warrant acknowledges and agrees that the terms and conditions set forth in the form of the Warrant
 Certificate set out in Schedule "A" hereto shall apply to all Warrants and Warrantholders regardless of whether such
 Warrants are issued in certificated or uncertificated form or whether such Warrantholders are Registered Warrantholders or owners
 of Warrants who beneficially hold security entitlements in respect of the Warrants through a Depository.

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|:---|:---|
| **Section 2.6** | **Book Entry Warrants.** |

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(1) Reregistration
 of beneficial interests in and transfers of Warrants held by the Depository shall be made only through the book entry registration
 system and no Warrant Certificates shall be issued in respect of such Warrants except where physical certificates evidencing ownership
 in such securities are required or as set out herein or as may be requested by the Depository, as determined by the Company, from
 time to time. Except as provided in this Section 2.6, owners of beneficial interests in any CDS Global Warrants shall not be entitled
 to have Warrants registered in their names and shall not receive or be entitled to receive Warrants in definitive form or to have
 their names appear in the register referred to in Section 2.9 herein. Notwithstanding any terms set out herein, Warrants held in
 the name of the Depository having any legend set forth in Section 2.8 herein and may only be held in the form of Uncertificated Warrants
 with the prior consent of the Warrant Agent and in accordance with the Internal Procedures of the Warrant Agent.

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| | |
|:---|:---|
| (2) | Notwithstanding any other provision in this Indenture, no CDS Global Warrants may be exchanged in whole or in part for Warrants registered, and no transfer of any CDS Global Warrants in whole or in part may be registered, in the name of any person other than the Depository for such CDS Global Warrants or a nominee thereof unless: |
| (a) | the Depository notifies the Company that it is unwilling or unable to continue to act as depository in connection with the Book Entry Warrants and the Company is unable to locate a qualified successor; |
| (b) | the Company determines that the Depository is no longer willing, able or qualified to properly discharge its responsibilities as holder of the CDS Global Warrants and the Company is unable to locate a qualified successor; |
| (c) | the Depository ceases to be a clearing agency or otherwise ceases to be eligible to be a depository and the Company is unable to locate a qualified successor; |
| (d) | the Company determines that the Warrants shall no longer be held as Book Entry Warrants through the Depository; |
| (e) | such right is required by Applicable Laws, as determined by the Company and the Company's Counsel; |
| (f) | the Warrant is to be Authenticated to or for the account or benefit of a person in the United States or a U.S. Person; or |
| (g) | such registration is effected in accordance with the Internal Procedures of the Depository and the Warrant Agent, |
|  | following which, Warrants for those holders requesting the same shall be registered and issued to the beneficial owners of such Warrants or their nominees as directed by the holder. The Company shall provide a certificate executed by an officer of the Company giving notice to the Warrant Agent of the occurrence of any event outlined in this Section 2.6(2). |
| (3) | Subject to the provisions of this Section 2.6, any exchange of CDS Global Warrants for Warrants which are not CDS Global Warrants may be made in whole or in part in accordance with the provisions of Section 2.11, mutatis mutandis. All such Warrants issued in exchange for a CDS Global Warrant or any portion thereof shall be registered in such names as the Depository for such CDS Global Warrants shall direct and shall be entitled to the same benefits and be subject to the same terms and conditions (except insofar as they relate specifically to CDS Global Warrants) as the CDS Global Warrants or portion thereof surrendered upon such exchange. |

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(4) Every
 Warrant that is Authenticated upon registration or transfer of a CDS Global Warrant, or in exchange for or in lieu of a CDS Global
 Warrant or any portion thereof, whether pursuant to this Section 2.6, or otherwise, shall be Authenticated in the form of, and shall
 be, a CDS Global Warrant, unless such Warrant is registered in the name of a person other than the Depository for such CDS Global
 Warrant or a nominee thereof.

(5) Notwithstanding
 anything to the contrary in this Indenture, subject to Applicable Laws, the CDS Global Warrant will be issued as an Uncertificated
 Warrant, unless otherwise requested in writing by the Depository or the Company.

(6) The
 rights of beneficial owners of Warrants who hold securities entitlements in respect of the Warrants through the book entry registration
 system shall be limited to those established by applicable law and agreements between the Depository and the Book Entry Participants
 and between such Book Entry Participants and the beneficial owners of Warrants who hold securities entitlements in respect of the
 Warrants through the book entry registration system, and such rights must be exercised through a Book Entry Participant in accordance
 with the rules and procedures of the Depository.

(7) Notwithstanding
 anything herein to the contrary, neither the Company nor the Warrant Agent nor any agent thereof shall have any responsibility or
 liability for:

(a) the
 electronic records maintained by the Depository relating to any ownership interests or any other interests in the Warrants or the
 depository system maintained by the Depository, or payments made on account of any ownership interest or any other interest of any
 person in any Warrant represented by an electronic position in the book entry registration system (other than the Depository or its
 nominee);

(b) maintaining,
 supervising or reviewing any records of the Depository or any Book Entry Participant relating to any such interest; or

(c) any
 advice or representation made or given by the Depository or those contained herein that relate to the rules and regulations of the
 Depository or any action to be taken by the Depository on its own direction or at the direction of any Book Entry Participant.

(8) The
 Company may terminate the application of this Section 2.6 in its sole discretion in which case all Warrants shall be evidenced by
 Warrant Certificates registered in the name of a Person other than the Depository.

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|:---|:---|
| **Section 2.7** | **Warrant Certificate.** |

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(1) For
 Warrants issued in certificated form, the form of certificate representing such Warrants shall be substantially as set out in Schedule
 "A" hereto or such other form as is authorized from time to time by the Warrant Agent. Each Warrant Certificate shall
 be Authenticated on behalf of the Warrant Agent. Each Warrant Certificate shall be signed by any one duly authorized signatory of
 the Company; whose signature shall appear on the Warrant Certificate and may be printed, lithographed or otherwise mechanically reproduced
 thereon and, in such event, certificates so signed are as valid and binding upon the Company as if it had been signed manually. Any
 Warrant Certificate which has one signature duly executed by the Company as hereinbefore provided shall be valid notwithstanding
 that one or more of the persons whose signature is printed, lithographed or mechanically reproduced no longer holds office at the
 date of issuance of such Warrant Certificate. The Warrant Certificates may be engraved, printed or lithographed, or partly in one
 form and partly in another, as the Warrant Agent may determine.

(2) The
 Warrant Agent shall Authenticate Uncertificated Warrants (whether upon original issuance, exchange, registration of transfer, partial
 payment, or otherwise) by completing its Internal Procedures and the Company shall, and hereby acknowledges that it shall, thereupon
 be deemed to have duly and validly issued such Uncertificated Warrants under this Indenture. Such Authentication shall be conclusive
 evidence that such Uncertificated Warrant has been duly issued hereunder and that the holder or holders are entitled to the benefits
 of this Indenture. The register shall be final and conclusive evidence as to all matters relating to Uncertificated Warrants with
 respect to which this Indenture requires the Warrant Agent to maintain records or accounts. In case of differences between the register
 at any time and any other time the register at the later time shall be controlling, absent manifest error and such Uncertificated
 Warrants are binding on the Company.

(3) Any
 Warrant Certificate validly issued in accordance with the terms of this Indenture in effect at the time of issue of such Warrant
 Certificate shall, subject to the terms of this Indenture and Applicable Laws, validly entitle the holder to acquire Warrant Shares,
 notwithstanding that the form of such Warrant Certificate may not be in the form currently required by this Indenture.

(4) No
 Warrant shall be considered issued and shall be valid or obligatory or shall entitle the holder thereof to the benefits of this Indenture,
 until it has been Authenticated by the Warrant Agent. Authentication by the Warrant Agent, including by way of entry on the register,
 shall not be construed as a representation or warranty by the Warrant Agent as to the validity of this Indenture or of such Warrant
 Certificates or Uncertificated Warrants (except the due Authentication thereof) or as to the performance by the Company of its obligations
 under this Indenture and the Warrant Agent shall in no respect be liable or answerable for the use made of the Warrants or any of
 them or of the consideration thereof. Authentication by the Warrant Agent shall be conclusive evidence as against the Company that
 the Warrants so Authenticated have been duly issued and that the holder thereof is entitled to the benefits of this Indenture.

(5) No
 Warrant Certificate shall be considered issued and Authenticated or, if Authenticated, shall be obligatory or shall entitle the holder
 thereof to the benefits of this Indenture, until it has been Authenticated by manual or electronic signature by or on behalf of the
 Warrant Agent substantially in the form of the Warrant set out in Schedule "A" hereto. Such Authentication on any such
 Warrant Certificate shall be conclusive evidence that such Warrant Certificate is duly Authenticated and is valid and a binding obligation
 of the Company and that the holder is entitled to the benefits of this Indenture.

(6) No
 Uncertificated Warrant shall be considered issued and shall be obligatory or shall entitle the holder thereof to the benefits of
 this Indenture, until it has been Authenticated by entry on the register of the particulars of the Uncertificated Warrant. Such entry
 on the register of the particulars of an Uncertificated Warrant shall be conclusive evidence that such Uncertificated Warrant is
 a valid and binding obligation of the Company and that the holder is entitled to the benefits of this Indenture.

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|:---|:---|
| **Section 2.8** | **Legends.** |

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(1) Neither
 the Warrants nor the Warrant Shares have been or will be registered under the U.S. Securities Act or under any United States state
 securities laws. Warrant Certificates originally issued to, or for the benefit or account of, a U.S. Warrantholder who did not execute
 a U.S. QIB Letter and each Warrant Certificate issued in exchange therefor or in substitution thereof shall bear or be deemed to
 bear the following legends or such variations thereof as the Company may prescribe from time to time:

"THIS WARRANT AND THE SECURITIES DELIVERABLE UPON THE EXERCISE THEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS, AND MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO VERSES AI INC. (THE "CORPORATION") (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, A LEGAL OPINION REASONABLY SATISFACTORY TO THE CORPORATION MUST FIRST BE PROVIDED TO ENDEAVOR TRUST CORPORATION TO THE EFFECT THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON UNLESS THE CLASS A SUBORDINATE VOTING SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LEGISLATION OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.";

provided that, if the Warrants are being sold outside the United States in accordance with Rule 904 of Regulation S under the U.S. Securities Act, and if the Company was a "foreign issuer" within the meaning of Regulation S at the time the Warrants were issued, this legend may be removed by the transferor providing a declaration to the Warrant Agent in the form set forth in Schedule "C" attached hereto or as the Warrant Agent or the Company may prescribe from time to time, and if required by the Warrant Agent, including an opinion of counsel, of recognised standing reasonably satisfactory to the Company and the Warrant Agent, that the proposed transfer may be effected without registration under the U.S. Securities Act.

The Warrant Agent shall be entitled to request any other documents that it may require in accordance with its internal policies for the removal of the legend set forth above.

(2) Each
 CDS Global Warrant, if issued on a certificated basis, originally issued in Canada and held by the Depository, and each CDS Global
 Warrant issued in exchange therefor or in substitution thereof shall bear or be deemed to bear the following legend or such variations
 thereof as the Company may prescribe from time to time:

"UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY SERVICES INC. ("CDS") TO VERSES AI INC. (THE "ISSUER") OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF IS REGISTERED IN THE NAME OF CDS & CO, OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS (AND ANY PAYMENT IS MADE TO CDS & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED HOLDER HEREOF, CDS & CO., HAS A PROPERTY INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE HEREIN AND IT IS A VIOLATION OF ITS RIGHTS FOR ANOTHER PERSON TO HOLD, TRANSFER OR DEAL WITH THIS CERTIFICATE."

(3) Notwithstanding
 any other provisions of this Indenture, in processing and registering transfers of Warrants, no duty or responsibility whatsoever
 shall rest upon the Warrant Agent to determine the compliance by any transferor or transferee with the terms of the legend contained
 in Section 2.8(1) or Section 2.8(2), or with the relevant securities laws or regulations, including, without limitation, Regulation
 S, and the Warrant Agent shall be entitled to assume that all transfers are legal and proper.

Section 2.9 Register of Warrants

(1) The Warrant Agent shall maintain records and accounts concerning the Warrants, whether certificated or uncertificated, which shall contain the information called for below with respect to each Warrant, together with such other information as may be required by law or as the Warrant Agent may elect to record. All such information shall be kept in one set of accounts and records which the Warrant Agent shall designate (in such manner as shall permit it to be so identified as such by an unaffiliated party) as the register of the holders of Warrants. The information to be entered for each account in the register of Warrants at any time shall include (without limitation):

(a) the
 name, address and e-mail address (if available) of the Registered Warrantholder, the date of Authentication thereof and the number
 of Warrants;

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|:---|:---|:---|
|  | (b) | whether such Warrant is a Warrant Certificate or an Uncertificated Warrant and, if a Warrant Certificate, the unique number or code assigned to and imprinted thereupon and, if an Uncertificated Warrant, the unique number or code assigned thereto if any; |
|  | (c) | whether such Warrant has been cancelled; |
|  | (d) | a register of transfers in which all transfers of Warrants and the date and other particulars of each transfer shall be entered; and |
|  | (e) | if any portion thereof has been exercised, the date of such exercise, and the remaining balance of such Warrants. |
|  | The register shall be available for inspection by the Company and or any Warrantholder during the Warrant Agent's regular business hours on a Business Day and upon payment to the Warrant Agent of its reasonable fees. Any Warrantholder exercising such right of inspection shall first provide an affidavit in form satisfactory to the Company and the Warrant Agent stating the name and address of the Warrantholder and agreeing not to use the information therein except in connection with an effort to call a meeting of Warrantholders or to influence the voting of Warrantholders at any meeting of Warrantholders. | The register shall be available for inspection by the Company and or any Warrantholder during the Warrant Agent's regular business hours on a Business Day and upon payment to the Warrant Agent of its reasonable fees. Any Warrantholder exercising such right of inspection shall first provide an affidavit in form satisfactory to the Company and the Warrant Agent stating the name and address of the Warrantholder and agreeing not to use the information therein except in connection with an effort to call a meeting of Warrantholders or to influence the voting of Warrantholders at any meeting of Warrantholders. |
| (2) | Once an Uncertificated Warrant has been Authenticated, the information set forth in the register with respect thereto at the time of Authentication may be altered, modified, amended, supplemented or otherwise changed only to reflect exercise or proper instructions to the Warrant Agent from the holder as provided herein, except that the Warrant Agent may act unilaterally to make purely administrative changes internal to the Warrant Agent and changes to correct errors. Each person who becomes a holder of an Uncertificated Warrant, by his, her or its acquisition thereof shall be deemed to have irrevocably (i) consented to the foregoing authority of the Warrant Agent to make such minor error corrections and (ii) agreed to pay to the Warrant Agent, promptly upon written demand, the full amount of all loss and expense (including without limitation reasonable legal fees of the Company and the Warrant Agent plus interest, at an appropriate then prevailing rate of interest to the Warrant Agent), sustained by the Company or the Warrant Agent as a proximate result of such error if but only if and only to the extent that such present or former holder realized any benefit as a result of such error and could reasonably have prevented, forestalled or minimized such loss and expense by prompt reporting of the error or avoidance of accepting benefits thereof whether or not such error is or should have been timely detected and corrected by the Warrant Agent; provided, that no person who is a bona fide purchaser shall have any such obligation to the Company or to the Warrant Agent. | Once an Uncertificated Warrant has been Authenticated, the information set forth in the register with respect thereto at the time of Authentication may be altered, modified, amended, supplemented or otherwise changed only to reflect exercise or proper instructions to the Warrant Agent from the holder as provided herein, except that the Warrant Agent may act unilaterally to make purely administrative changes internal to the Warrant Agent and changes to correct errors. Each person who becomes a holder of an Uncertificated Warrant, by his, her or its acquisition thereof shall be deemed to have irrevocably (i) consented to the foregoing authority of the Warrant Agent to make such minor error corrections and (ii) agreed to pay to the Warrant Agent, promptly upon written demand, the full amount of all loss and expense (including without limitation reasonable legal fees of the Company and the Warrant Agent plus interest, at an appropriate then prevailing rate of interest to the Warrant Agent), sustained by the Company or the Warrant Agent as a proximate result of such error if but only if and only to the extent that such present or former holder realized any benefit as a result of such error and could reasonably have prevented, forestalled or minimized such loss and expense by prompt reporting of the error or avoidance of accepting benefits thereof whether or not such error is or should have been timely detected and corrected by the Warrant Agent; provided, that no person who is a bona fide purchaser shall have any such obligation to the Company or to the Warrant Agent. |

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|:---|:---|
| **Section 2.10** | **Issue in Substitution for Warrant Certificates Lost, etc.** |

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(1) If
 any Warrant Certificate becomes mutilated or is lost, destroyed or stolen, the Company, subject to applicable law, shall issue and
 thereupon the Warrant Agent shall certify, Authenticate and deliver, a new Warrant Certificate of like tenor, and bearing the same
 legend, if applicable, as the one mutilated, lost, destroyed or stolen in exchange for and in place of and upon cancellation of such
 mutilated Warrant Certificate, or in lieu of and in substitution for such lost, destroyed or stolen Warrant Certificate, and the
 substituted Warrant Certificate shall be in a form approved by the Warrant Agent and the Warrants evidenced thereby shall be entitled
 to the benefits hereof and shall rank equally in accordance with its terms with all other Warrants issued or to be issued hereunder.

(2) The
 applicant for the issue of a new Warrant Certificate pursuant to this Section 2.10 shall bear the cost of the issue thereof and in
 case of loss, destruction or theft shall, as a condition precedent to the issuance thereof, furnish to the Company and to the Warrant
 Agent such evidence of ownership and of the loss, destruction or theft of the Warrant Certificate so lost, destroyed or stolen as
 shall be satisfactory to the Company and to the Warrant Agent, in their sole discretion, and such applicant shall also be required
 to furnish an indemnity and surety bond in amount and form satisfactory to the Company and the Warrant Agent, in their sole discretion,
 and shall pay the reasonable charges of the Company and the Warrant Agent in connection therewith.

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|:---|:---|
| **Section 2.11** | **Exchange of Warrant Certificates.** |

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(1) Any
 one or more Warrant Certificates representing any number of Warrants may, upon compliance with the reasonable requirements of the
 Warrant Agent (including compliance with applicable securities laws), be exchanged for one or more other Warrant Certificates representing
 the same aggregate number of Warrants, and bearing the same legend, if applicable, as represented by the Warrant Certificate or Warrant
 Certificates so exchanged.

(2) Warrant
 Certificates may be exchanged only at the Warrant Agency or at any other place that is designated by the Company with the approval
 of the Warrant Agent. Any Warrant Certificate from the holder (or such other instructions, in form satisfactory to the Warrant Agent),
 tendered for exchange shall be surrendered to the Warrant Agency and cancelled by the Warrant Agent.

(3) Warrant
 Certificates exchanged for Warrant Certificates that bear the legend set forth in Section 2.8(1) shall bear the same legend.

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|:---|:---|
| **Section 2.12** | **Transfer and Ownership of Warrants.** |

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(1) The
 Warrants may only be transferred on the register kept by the Warrant Agent at the Warrant Agency by the holder or its legal representatives
 or its attorney duly appointed by an instrument in writing in form and execution satisfactory to the Warrant Agent only upon (a)
 in the case of a Warrant Certificate, surrendering to the Warrant Agent at the Warrant Agency the Warrant Certificates representing
 the Warrants to be transferred together with a duly executed transfer form as set forth in Schedule "A" attached hereto,
 (b) in the case of Book Entry Warrants, in accordance with procedures prescribed by the Depository under the book entry registration
 system, and (c) upon compliance with:

(i) the
 conditions herein;

(ii) such
 reasonable requirements as the Warrant Agent may prescribe; and

(iii) all
 applicable securities laws and requirements of regulatory authorities;

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|:---|:---|
|  | and such transfer shall be duly noted in such register by the Warrant Agent. Upon compliance with such requirements, the Warrant Agent shall issue to the transferee of a Warrant Certificate, a Warrant Certificate and to the transferee of an Uncertificated Warrant, an Uncertificated Warrant, or the Warrant Agent shall Authenticate and deliver a Warrant Certificate upon request that part of the CDS Global Warrant be certificated. Transfers within the systems of the Depository are not the responsibility of the Warrant Agent and will not be noted on the register maintained by the Warrant Agent. |
| (2) | If a Warrant Certificate tendered for transfer bears any of the legends set forth in Section 2.8(1), the Warrant Agent shall not register such transfer unless the transferor has provided the Warrant Agent with the Warrant Certificate and (A) the transfer is made to the Company or (B) a declaration to the effect set forth in Schedule "C" to this Warrant Indenture, or in such other form as the Company may from time to time prescribe, is delivered to the Warrant Agent, and/or if required by the Warrant Agent, the transferor provides an opinion of counsel of recognized standing, reasonably satisfactory to the Company and the Warrant Agent that the proposed transfer is exempt from registration with applicable state laws and the U.S. Securities Act and that such legends may be removed. |
| (3) | Subject to the provisions of this Indenture, Applicable Laws and applicable law, the Warrantholder shall be entitled to the rights and privileges attaching to the Warrants, and the issue of Warrant Shares by the Company upon the exercise of Warrants in accordance with the terms and conditions herein contained shall discharge all responsibilities of the Company and the Warrant Agent with respect to such Warrants and neither the Company nor the Warrant Agent shall be bound to inquire into the title of any such holder. |

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|:---|:---|
| **Section 2.13** | **Cancellation of Surrendered Warrants.** |

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All Warrant Certificates surrendered pursuant to Article 3 shall be cancelled by the Warrant Agent and upon such circumstances all such Uncertificated Warrants shall be deemed cancelled and so noted on the register by the Warrant Agent. Upon request by the Company, the Warrant Agent shall furnish to the Company a cancellation certificate identifying the Warrant Certificates so cancelled, the number of Warrants evidenced thereby, the number of Warrant Shares, if any, issued pursuant to such Warrants and the details of any Warrant Certificates issued in substitution or exchange for such Warrant Certificates cancelled.

**Article 3<br> EXERCISE OF WARRANTS**

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|:---|:---|
| **Section 3.1** | **Right of Exercise.** |

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Subject to the provisions hereof, each Registered Warrantholder may exercise the right conferred on such holder to subscribe for and purchase one Warrant Share for each Warrant after the applicable Issue Date and prior to the Expiry Time and in accordance with the conditions herein.

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|:---|:---|
| **Section 3.2** | **Warrant Exercise.** |

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(1) Other
 than Warrants held by the Depository, Registered Warrantholders of Warrant Certificates who wish to exercise the Warrants held by
 them in order to acquire Warrant Shares must complete the exercise form (the "**Exercise Notice**") attached to the
 Warrant Certificate(s) which form is attached hereto as Schedule "B", which may be amended by the Company with the consent
 of the Warrant Agent, if such amendment does not, in the reasonable opinion of the Company and the Warrant Agent, which may be based
 on the advice of Counsel, materially and adversely affect the rights, entitlements and interests of the Warrantholders, and deliver
 such certificate(s), the executed Exercise Notice and a certified cheque, bank draft or money order payable to or to the order of
 the Company for the aggregate Exercise Price to the Warrant Agent at the Warrant Agency. The Warrants represented by a Warrant Certificate
 shall be deemed to be surrendered upon personal delivery of such certificate, Exercise Notice and aggregate Exercise Price or, if
 such documents are sent by mail or other means of transmission, upon actual receipt thereof by the Warrant Agent at the office referred
 to above.

(2) In
 addition to completing the Exercise Notice attached to the Warrant Certificate(s), a Warrantholder who is a person in the United
 States, a U.S. Person, a person exercising for the account or benefit of a U.S. Person, or person requesting delivery of the Warrant
 Shares issuable upon the exercise of the Warrants in the United States must (a) provide a completed and executed U.S. Purchaser Letter
 or (b) an opinion of counsel of recognised standing in form and substance reasonably satisfactory to the Company and the Warrant
 Agent that the exercise is exempt from the registration requirements of applicable securities laws of any state of the United States
 and the U.S. Securities Act; *provided however* that in the case of a Warrantholder that is the original purchaser of Warrants
 and who delivered either a U.S. Accredited Investor Certificate or a U.S. QIB Letter in connection with its purchase of Warrants
 pursuant to the applicable private placement offering under which the Warrants were issued, such Warrantholder will not be required
 to deliver a U.S. Purchaser Letter or an opinion of counsel in connection with the due exercise of the Warrant at a time when the
 representations, warranties and covenants made by the Warrantholder in the U.S. Accredited Investor Certificate or the U.S. QIB Letter
 remain true and correct and the Warrantholder represents to the Company as such.

(3) A
 Registered Warrantholder of Uncertificated Warrants evidenced by a security entitlement in respect of Warrants must complete the
 Exercise Notice and deliver the executed Exercise Notice and a certified cheque, bank draft or money order payable to or to the order
 of the Company for the aggregate Exercise Price to the Warrant Agent at the Warrant Agency. The Uncertificated Warrants shall be
 deemed to be surrendered upon receipt of the Exercise Notice and aggregate Exercise Price or, if such documents are sent by mail
 or other means of transmission, upon actual receipt thereof by the Warrant Agent at the office referred to above.

(4) A
 beneficial owner of Uncertificated Warrants evidenced by a security entitlement in respect of Warrants in the book entry registration
 system who desires to exercise his or her Warrants must do so by causing a Book Entry Participant to deliver to the Depository on
 behalf of the entitlement holder, notice of the owner's intention to exercise Warrants in a manner acceptable to the Depository.
 Forthwith upon receipt by the Depository of such notice, as well as payment for the aggregate Exercise Price, the Depository shall
 deliver to the Warrant Agent confirmation of its intention to exercise Warrants (a "**Confirmation**") in a manner
 acceptable to the Warrant Agent, including by electronic means through a book based registration system, including CDSX. An electronic
 exercise of the Warrants initiated by the Book Entry Participant through a book based registration system, including CDSX, shall
 constitute a representation to both the Company and the Warrant Agent that the beneficial owner at the time of exercise of such Warrants
 (a) is not in the United States; (b) is not a U.S. Person and is not exercising such Warrants on behalf of a U.S. Person or a person
 in the United States; and (c) did not execute or deliver the notice of the owner's intention to exercise such Warrants in the
 United States. If the Book Entry Participant is not able to make or deliver the foregoing representations by initiating the electronic
 exercise of the Warrants, then such Warrants shall be withdrawn from the book based registration system, including CDSX, by the Book
 Entry Participant and an individually registered Warrant Certificate shall be issued by the Warrant Agent to such beneficial owner
 or Book Entry Participant and the exercise procedures set forth in Section 3.2(1) shall be followed.

(5) Payment
 representing the aggregate Exercise Price must be provided to the appropriate office of the Book Entry Participant in a manner acceptable
 to it. A notice in form acceptable to the Book Entry Participant and payment from such beneficial holder should be provided to the
 Book Entry Participant suffi **c** iently in advance so as to permit the Book Entry Participant to deliver notice and payment to
 the Depository and for the Depository in turn to deliver notice and payment to the Warrant Agent prior to the Expiry Time. The Depository
 will initiate the exercise by way of the Confirmation and forward the aggregate Exercise Price electronically to the Warrant Agent
 and the Warrant Agent will execute the exercise by issuing to the Depository through the book entry registration system the Warrant
 Shares to which the exercising Warrantholder is entitled pursuant to the exercise. Any expense associated with the exercise process
 will be for the account of the entitlement holder exercising the Warrants and/or the Book Entry Participant exercising the Warrants
 on its behalf.

(6) By
 causing a Book Entry Participant to deliver notice to the Depository, a Warrantholder shall be deemed to have irrevocably surrendered
 his or her Warrants so exercised and appointed such Book Entry Participant to act as his or her exclusive settlement agent with respect
 to the exercise and the receipt of Warrant Shares in connection with the obligations arising from such exercise.

(7) Any
 notice which the Depository determines to be incomplete, not in proper form or not duly executed shall for all purposes be void and
 of no force and effect and the exercise to which it relates shall be considered for all purposes not to have been exercised thereby.
 A failure by a Book Entry Participant to exercise or to give effect to the settlement thereof in accordance with the Warrantholder's
 instructions will not give rise to any obligations or liability on the part of the Company or Warrant Agent to the Book Entry Participant
 or the Warrantholder.

(8) The
 Exercise Notice referred to in this Section 3.2 shall be signed by the Registered Warrantholder, or its executors or administrators
 or other legal representatives or an attorney of the Registered Warrantholder, duly appointed by an instrument in writing satisfactory
 to the Warrant Agent but such Exercise Notice need not be executed by the Depository.

(9) Any
 exercise referred to in this Section 3.2 shall require that the entire Exercise Price for Warrant Shares subscribed for must be paid
 at the time of subscription and such Exercise Price and original Exercise Notice executed by the Registered Warrantholder or the
 Confirmation from the Depository must be received by the Warrant Agent prior to the Expiry Time.

(10) Warrants
 may only be exercised pursuant to this Section 3.2 by or on behalf of a Registered Warrantholder, as applicable, who makes the certifications
 set forth on the Exercise Notice set out in Schedule "B" or as provided herein.

(11) If
 the form of Exercise Notice set forth in the Warrant Certificate shall have been amended, the Company shall cause the amended Exercise
 Notice to be forwarded to all Registered Warrantholders.

(12) Exercise
 Notices and Confirmations must be delivered to the Warrant Agent at any time during the Warrant Agent's actual business hours
 on any Business Day prior to the Expiry Time. Any Exercise Notice or Confirmations received by the Warrant Agent after business hours
 on any Business Day other than the Expiry Date will be deemed to have been received by the Warrant Agent on the next following Business
 Day.

(13) Any
 Warrant with respect to which a Confirmation or Exercise Notice is not received by the Warrant Agent before the Expiry Time shall
 be deemed to have expired and become void and all rights with respect to such Warrants shall terminate and be cancelled.

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|:---|:---|
| **Section 3.3** | **Limitations on Exercise; Legended Certificates** |

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(1) The
 Warrants have not been and will not be registered under the U.S. Securities Act or any United States state securities laws and may
 not be exercised unless an exemption from such registration requirements is available.

(2) Warrants
 may not be exercised except in compliance with the requirements set forth herein, in the Warrant Certificate and in the Exercise
 Notice attached thereto.

(3) Certificates
 representing Warrant Shares issued upon the exercise of Warrants (a) which bear the legend set forth in Section 2.8(1) or (b) which
 are issued to a U.S. Person or a person in the United States who is not the Original QIB Purchaser who executed a U.S. QIB Letter,
 or (c) which are otherwise determined by the Company to require a legend reflecting restrictions under the U.S. Securities Act shall
 bear the following legend:

"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS, AND MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO VERSES AI INC. (THE "CORPORATION") (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, A LEGAL OPINION SATISFACTORY TO THE CORPORATION MUST FIRST BE PROVIDED TO ENDEAVOR TRUST CORPORATION TO THE EFFECT THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

Provided that if the Company is a "foreign issuer" within the meaning of Regulation S at the time the Warrant Shares are issued, a new certificate bearing no legend may be obtained from the Company's transfer agent upon delivery of a duly executed declaration, in a form satisfactory to the Company's transfer agent and the Company, to the effect that the sale of the Warrant Shares is being made in compliance with Rule 904 of Regulation S. The Company's transfer agent may require an opinion of counsel of recognized standing in form and substance reasonably satisfactory to it in connection with any offer, sale or transfer of the Warrant Shares.

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|:---|:---|
| **Section 3.4** | **Transfer Fees and Taxes.** |

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If any of the Warrant Shares subscribed for are to be issued to a person or persons other than the Registered Warrantholder, the Registered Warrantholder shall execute the form of transfer and will comply with such reasonable requirements as the Warrant Agent may stipulate and will pay to the Company or the Warrant Agent on behalf of the Company, all applicable transfer or similar taxes and the Company will not be required to issue or deliver certificates evidencing Warrant Shares unless or until such Warrantholder shall have paid to the Company or the Warrant Agent on behalf of the Company, the amount of such tax or shall have established to the satisfaction of the Company and the Warrant Agent that such tax has been paid or that no tax is due.

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|:---|:---|
| **Section 3.5** | **Warrant Agency.** |

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To facilitate the exchange, transfer or exercise of Warrants and compliance with such other terms and conditions hereof as may be required, the Company has appointed the Warrant Agency, as the agency at which Warrants may be surrendered for exchange or transfer or at which Warrants may be exercised and the Warrant Agent has accepted such appointment. The Company may from time to time designate alternate or additional places as the Warrant Agency (subject to the Warrant Agent's prior approval) and will give notice to the Warrant Agent of any proposed change of the Warrant Agency. Branch registers shall also be kept at such other place or places, if any, as the Company, with the approval of the Warrant Agent, may designate. The Warrant Agent will from time to time when requested to do so by the Company or any Registered Warrantholder, upon payment of the Warrant Agent's reasonable charges, furnish a list of the names and addresses of Registered Warrantholders showing the number of Warrants held by each such Registered Warrantholder.

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|:---|:---|
| **Section 3.6** | **Effect of Exercise of Warrant Certificates.** |

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(1) Upon
 the exercise of Warrants Certificates pursuant to and in compliance with Section 3.2 and subject to Section 3.3 and Section 3.3,
 the Warrant Shares to be issued pursuant to the Warrants exercised shall be deemed to have been issued and the person or persons
 to whom such Warrant Shares are to be issued shall be deemed to have become the holder or holders of such Warrant Shares within five
 Business Days of the Exercise Date unless the register shall be closed on such date, in which case the Warrant Shares subscribed
 for shall be deemed to have been issued and such person or persons deemed to have become the holder or holders of record of such
 Warrant Shares, on the date on which such register is reopened. It is hereby understood that in order for persons to whom Warrant
 Shares are to be issued, to become holders of Warrant Shares on record on the Exercise Date, beneficial holders must commence the
 exercise process sufficiently in advance so that the Warrant Agent is in receipt of all items of exercise at least one Business Day
 prior to such Exercise Date.

(2) Within
 five Business Days after the Exercise Date with respect to a Warrant, the Warrant Agent shall deliver or cause to be delivered or
 mailed to the person or persons in whose name or names the Warrant is registered or, if so specified in writing by the holder, cause
 to be delivered to such person or persons at the Warrant Agency where the Warrant Certificate was surrendered, a certificate or certificates
 for the appropriate number of Warrant Shares subscribed for, or any other appropriate evidence of the issuance of Warrant Shares
 to such person or persons in respect of Warrant Shares issued under the book entry registration system.

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|:---|:---|
| **Section 3.7** | **Partial Exercise of Warrants; Fractions.** |

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(1) The
 holder of any Warrants may exercise his right to acquire a number of whole Warrant Shares less than the aggregate number which the
 holder is entitled to acquire. In the event of any exercise of a number of Warrants less than the number which the holder is entitled
 to exercise, the holder of Warrants upon such exercise shall, in addition, be entitled to receive, without charge therefor, a new
 Warrant Certificate(s), bearing the same legend, if applicable, or other appropriate evidence of Warrants, in respect of the balance
 of the Warrants held by such holder and which were not then exercised.

(2) Notwithstanding
 anything herein contained including any adjustment provided for in Section 4.1, the Company shall not be required, upon the exercise
 of any Warrants, to issue fractions of Warrant Shares. Warrants may only be exercised in a sufficient number to acquire whole numbers
 of Warrant Shares. Any fractional Warrant Shares shall be rounded down to the nearest whole number and the holder of such Warrants
 shall not be entitled to any compensation in respect of any fractional Warrant Shares which is not issued.

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|:---|:---|
| **Section 3.8** | **Expiration of Warrants.** |

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Immediately after the Expiry Time, all rights under any Warrant in respect of which the right of acquisition provided for herein shall not have been exercised shall cease and terminate and each Warrant shall be void and of no further force or effect.

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|:---|:---|
| **Section 3.9** | **Accounting and Recording.** |

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(1) The
 Warrant Agent shall promptly account to the Company with respect to Warrants exercised, and shall promptly forward to the Company
 (or into an account or accounts of the Company with the bank or trust company designated by the Company for that purpose), all monies
 received by the Warrant Agent on the subscription of Warrant Shares through the exercise of Warrants. All such monies and any securities
 or other instruments, from time to time received by the Warrant Agent, shall be received in trust for, and shall be segregated and
 kept apart by the Warrant Agent, the Warrantholders and the Company as their interests may appear.

(2) The
 Warrant Agent shall record the particulars of Warrants exercised, which particulars shall include the names and addresses of the
 persons who become holders of Warrant Shares on exercise and the Exercise Date, in respect thereof. The Warrant Agent shall provide
 such particulars in writing to the Company within five Business Days of any request by the Company therefor.

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|:---|:---|
| **Section 3.10** | **Securities Restrictions.** |

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Notwithstanding anything herein contained, Warrant Shares will be issued upon exercise of a Warrant only in compliance with the securities laws of any applicable jurisdiction.

**Article 4<br> ADJUSTMENT OF NUMBER OF Warrant SHARES<br> AND EXERCISE PRICE**

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|:---|:---|
| **Section 4.1** | **Adjustment of Number of Warrant Shares and Exercise Price.** |

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The subscription rights in effect under the Warrants for Warrant Shares issuable upon the exercise of the Warrants shall be subject to adjustment from time to time as follows:

(a) if,
 at any time during the Adjustment Period, the Company shall:

(i) subdivide,
 re-divide or change its outstanding Class A Shares into a greater number of Class A Shares;

(ii) reduce,
 combine or consolidate its outstanding Class A Shares into a lesser number of Class A Shares; or

(iii) issue
 Class A Shares or securities exchangeable for, or convertible into, Class A Shares to all or substantially all of the holders of
 Class A Shares by way of stock dividend or other distribution (other than a distribution of Class A Shares upon the exercise of Warrants
 or any outstanding options);

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| | |
|:---|:---|
|  | (any of such events in Section 4.1(a) (i), (ii) or (iii), a "**Class A Share Reorganization**") then the Exercise Price shall be adjusted as of the effective date or record date of such Class A Share Reorganization, and shall in the case of the events referred to in (i) or (iii) above be decreased in proportion to the number of outstanding Class A Shares resulting from such subdivision, re-division, change or distribution, or shall, in the case of the events referred to in (ii) above, be increased in proportion to the number of outstanding Class A Shares resulting from such reduction, combination or consolidation by multiplying the Exercise Price in effect immediately prior to such effective date or record date by a fraction, the numerator of which shall be the number of Class A Shares outstanding on such effective date or record date before giving effect to such Class A Share Reorganization and the denominator of which shall be the number of Class A Shares outstanding as of the effective date or record date after giving effect to such Class A Share Reorganization (including, in the case where securities exchangeable for or convertible into Class A Shares are distributed, the number of Class A Share that would have been outstanding had such securities been exchanged for or converted into Class A Shares on such record date or effective date). Such adjustment shall be made successively whenever any event referred to in this Section 4.1(a) shall occur. Upon any adjustment of the Exercise Price pursuant to Section 4.1(a), the Exchange Rate shall be contemporaneously adjusted by multiplying the number of Class A Shares theretofore obtainable on the exercise thereof by a fraction of which the numerator shall be the Exercise Price in effect immediately prior to such adjustment and the denominator shall be the Exercise Price resulting from such adjustment; |
| (b) | if and whenever at any time during the Adjustment Period, the Company shall fix a record date for the issuance of rights, options or warrants to all or substantially all the holders of its outstanding Class A Shares entitling them, for a period expiring not more than 45 days after such record date, to subscribe for or purchase Class A Shares (or securities convertible or exchangeable into Class A Shares) at a price per Class A Share (or having a conversion or exchange price per Class A Share) less than 95% of the Current Market Price on such record date (a "**Rights Offering**"), the Exercise Price shall be adjusted immediately after such record date so that it shall equal the amount determined by multiplying the Exercise Price in effect on such record date by a fraction, of which the numerator shall be the total number of Class A Shares outstanding on such record date plus a number of Class A Shares equal to the number arrived at by dividing the aggregate price of the total number of additional Class A Shares offered for subscription or purchase (or the aggregate conversion or exchange price of the convertible or exchangeable securities so offered) by the Current Market Price, and of which the denominator shall be the total number of Class A Shares outstanding on such record date plus the total number of additional Class A Shares offered for subscription or purchase or into which the convertible or exchangeable securities so offered are convertible or exchangeable; any Class A Shares owned by or held for the account of the Company shall be deemed not to be outstanding for the purpose of any such computation; such adjustment shall be made successively whenever such a record date is fixed; to the extent that no such rights or warrants are exercised prior to the expiration thereof, the Exercise Price shall be readjusted to the Exercise Price which would then be in effect if such record date had not been fixed or, if any such rights or warrants are exercised, to the Exercise Price which would then be in effect based upon the number of Class A Shares (or securities convertible or exchangeable into Class A Shares) actually issued upon the exercise of such rights or warrants, as the case may be. Upon any adjustment of the Exercise Price pursuant to this Section 4.1(b), the Exchange Rate will be adjusted immediately after such record date so that it will equal the rate determined by multiplying the Exchange Rate in effect on such record date by a fraction, of which the numerator shall be the Exercise Price in effect immediately prior to such adjustment and the denominator shall be the Exercise Price resulting from such adjustment. Such adjustment will be made successively whenever such a record date is fixed, provided that if two or more such record dates or record dates referred to in this Section 4.1(b) are fixed within a period of 25 Trading Days, such adjustment will be made successively as if each of such record dates occurred on the earliest of such record dates; |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if
 and whenever at any time during the Adjustment Period the Company shall fix a record date for the making of a distribution to all
 or substantially all the holders of its outstanding Class A Shares of (i) securities of any class, whether of the Company or any
 other entity (other than Class A Shares), (ii) rights, options or warrants to subscribe for or purchase Class A Shares (or other
 securities convertible into or exchangeable for Class A Shares), other than pursuant to a Rights Offering; (iii) evidences of its
 indebtedness or (iv) any property or other assets then, in each such case, the Exercise Price shall be adjusted immediately after
 such record date so that it shall equal the price determined by multiplying the Exercise Price in effect on such record date by a
 fraction, of which the numerator shall be the total number of Class A Shares outstanding on such record date multiplied by the Current
 Market Price on such record date, less the excess, if any, of the fair market value on such record date, as determined by the Company
 (whose determination shall be conclusive), of such securities or other assets so issued or distributed over the fair market value
 of any consideration received therefor by the Company from the holders of the Class A Shares, and of which the denominator shall
 be the total number of Class A Shares outstanding on such record date multiplied by the Current Market Price; and Class A Shares
 owned by or held for the account of the Company shall be deemed not to be outstanding for the purpose of any such computation; such
 adjustment shall be made successively whenever such a record date is fixed; to the extent that such distribution is not so made,
 the Exercise Price shall be readjusted to the Exercise Price which would then be in effect if such record date had not been fixed.
 Upon any adjustment of the Exercise Price pursuant to this Section 4.1(c), the Exchange Rate will be adjusted immediately after such
 record date so that it will equal the rate determined by multiplying the Exchange Rate in effect on such record date by a fraction,
 of which the numerator shall be the Exercise Price in effect immediately prior to such adjustment and the denominator shall be the
 Exercise Price resulting from such adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if
 and whenever at any time during the Adjustment Period, there is a reclassification of the Class A Shares or a capital reorganization
 of the Company other than as described in Section 4.1(a) or a consolidation, amalgamation, arrangement or merger of the Company with
 or into any other body corporate, trust, partnership or other entity, or a sale or conveyance of the property and assets of the Company
 as an entirety or substantially as an entirety to any other body corporate, trust, partnership or other entity, any Registered Warrantholder
 who has not exercised its right of acquisition prior to the effective date of such reclassification, capital reorganization, consolidation,
 amalgamation, arrangement or merger, sale or conveyance, upon the exercise of such right thereafter, shall be entitled to receive
 upon payment of the Exercise Price and shall accept, in lieu of the number of Warrant Shares that prior to such effective date the
 Registered Warrantholder would have been entitled to receive, the number of shares or other securities or property of the Company
 or of the body corporate, trust, partnership or other entity resulting from such merger, amalgamation or consolidation, or to which
 such sale or conveyance may be made, as the case may be, that such Registered Warrantholder would have been entitled to receive on
 such reclassification, capital reorganization, consolidation, amalgamation, arrangement or merger, sale or conveyance, if, on the
 effective date thereof, as the case may be, the Registered Warrantholder had been the registered holder of the number of Warrant
 Shares to which prior to such effective date it was entitled to acquire upon the exercise of the Warrants. If determined appropriate
 by the Warrant Agent, relying on advice of Counsel, to give effect to or to evidence the provisions of this Section 4.1(d), the Company,
 its successor, or such purchasing body corporate, partnership, trust or other entity, as the case may be, shall, prior to or contemporaneously
 with any such reclassification, capital reorganization, consolidation, amalgamation, arrangement, merger, sale or conveyance, enter
 into an indenture which shall provide, to the extent possible, for the application of the provisions set forth in this Indenture
 with respect to the rights and interests thereafter of the Registered Warrantholders to the end that the provisions set forth in
 this Indenture shall thereafter correspondingly be made applicable, as nearly as may reasonably be, with respect to any shares, other
 securities or property to which a Registered Warrantholder is entitled on the exercise of its acquisition rights thereafter. Any
 indenture entered into between the Company and the Warrant Agent pursuant to the provisions of this Section 4.1(d) shall be a supplemental
 indenture entered into pursuant to the provisions of Article 8 hereof. Any indenture entered into between the Company, any successor
 to the Company or such purchasing body corporate, partnership, trust or other entity and the Warrant Agent shall provide for adjustments
 which shall be as nearly equivalent as may be practicable to the adjustments provided in this Section 4.1 and which shall apply to
 successive reclassifications, capital reorganizations, amalgamations, consolidations, mergers, sales or conveyances;

(e) in
 any case in which this Section 4.1 shall require that an adjustment shall become effective immediately after a record date for an
 event referred to herein, the Company may defer, until the occurrence of such event, issuing to the Registered Warrantholder of any
 Warrant exercised after the record date and prior to completion of such event the additional Warrant Shares issuable by reason of
 the adjustment required by such event before giving effect to such adjustment; provided, however, that the Company shall deliver
 to such Registered Warrantholder an appropriate instrument evidencing such Registered Warrantholder's right to receive such
 additional Class A Shares upon the occurrence of the event requiring such adjustment and the right to receive any distributions made
 on such additional Class A Shares declared in favour of holders of record of Class A Shares on and after the relevant date of exercise
 or such later date as such Registered Warrantholder would, but for the provisions of this Section 4.1(d), have become the holder
 of record of such additional Class A Shares pursuant to Section 4.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) in
 any case in which Section 4.1(a)(iii), Section 4.1(b) or Section 4.1(c) require that an adjustment be made to the Exercise Price,
 no such adjustment shall be made if the Registered Warrantholders of the outstanding Warrants receive, subject to any required stock
 exchange or regulatory approval, the rights or warrants referred to in Section 4.1(a)(iii), Section 4.1(b) or the shares, rights,
 options, warrants, evidences of indebtedness or assets referred to in Section 4.1(c), as the case may be, in such kind and number
 as they would have received if they had been holders of Class A Shares on the applicable record date or effective date, as the case
 may be, by virtue of their outstanding Warrant having then been exercised into Class A Shares at the Exercise Price in effect on
 the applicable record date or effective date, as the case may be;

(g) the
 adjustments provided for in this Section 4.1 are cumulative, and shall, in the case of adjustments to the Exercise Price be computed
 to the nearest whole cent and shall apply to successive subdivisions, re-divisions, reductions, combinations, consolidations, distributions,
 issues or other events resulting in any adjustment under the provisions of this Section 4.1, provided that, notwithstanding any other
 provision of this Section, no adjustment of the Exercise Price shall be required unless such adjustment would require an increase
 or decrease of at least 1% in the Exercise Price then in effect; provided, however, that any adjustments which by reason of this
 Section 4.1(g) are not required to be made shall be carried forward and taken into account in any subsequent adjustment; and

(h) after
 any adjustment pursuant to this Section 4.1, the term "**Class A Shares**" where used in this Indenture shall be interpreted
 to mean securities of any class or classes which, as a result of such adjustment and all prior adjustments pursuant to this Section
 4.1, the Registered Warrantholder is entitled to receive upon the exercise of his Warrant, and the number of Warrant Shares indicated
 by any exercise made pursuant to a Warrant shall be interpreted to mean the number of Warrant Shares or other property or securities
 a Registered Warrantholder is entitled to receive, as a result of such adjustment and all prior adjustments pursuant to this Section
 4.1, upon the full exercise of a Warrant.

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| | |
|:---|:---|
| **Section 4.2** | **Entitlement to Warrant Shares on Exercise of Warrant.** |

---

All Class A Shares or shares of any class or other securities, which a Registered Warrantholder is at the time in question entitled to receive on the exercise of its Warrant, whether or not as a result of adjustments made pursuant to this Article 4, shall, for the purposes of the interpretation of this Indenture, be deemed to be Warrant Shares which such Registered Warrantholder is entitled to acquire pursuant to such Warrant.

---

| | |
|:---|:---|
| **Section 4.3** | **No Adjustment for Certain Transactions.** |

---

Notwithstanding anything in this Article 4, no adjustment shall be made in the acquisition rights attached to the Warrants if the issue of Class A Shares is being made pursuant to this Indenture or in connection with (a) any share incentive plan or restricted share plan or share purchase plan in force from time to time for directors, officers, employees, consultants or other service providers of the Company; or (b) the satisfaction of existing instruments issued at the date hereof.

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| | |
|:---|:---|
| **Section 4.4** | **Determination by Independent Firm.** |

---

In the event of any question arising with respect to the adjustments provided for in this Article 4 such question shall be conclusively determined by an independent firm of chartered public accountants other than the Auditors, who shall have access to all necessary records of the Company, and such determination shall be binding upon the Company, the Warrant Agent, all holders and all other persons interested therein.

---

| | |
|:---|:---|
| **Section 4.5** | **Proceedings Prior to any Action Requiring Adjustment.** |

---

As a condition precedent to the taking of any action which would require an adjustment in any of the acquisition rights pursuant to any of the Warrants, including the number of Warrant Shares which are to be received upon the exercise thereof, the Company shall take any action which may, in the opinion of Counsel, be necessary in order that the Company has unissued and reserved in its authorized capital and may validly and legally issue as fully paid all the Warrant Shares which the holders of such Warrants are entitled to receive on the full exercise thereof in accordance with the provisions hereof.

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| | |
|:---|:---|
| **Section 4.6** | **Certificate of Adjustment.** |

---

The Company shall from time to time immediately after the occurrence of any event which requires an adjustment or readjustment as provided in Section 4.1, deliver a certificate of the Company to the Warrant Agent specifying the nature of the event requiring the same and the amount of the adjustment or readjustment necessitated thereby and setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based, which certificate may be supported by a certificate of the Company's Auditors verifying such calculation if requested by the Warrant Agent at their discretion. The Warrant Agent shall rely, and shall be protected in so doing, upon the certificate of the Company or of the Company's Auditor and any other document filed by the Company pursuant to this Article 4 for all purposes.

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| | |
|:---|:---|
| **Section 4.7** | **Notice of Special Matters.** |

---

The Company covenants with the Warrant Agent that, so long as any Warrant remains outstanding, it will give notice to the Warrant Agent and to the Registered Warrantholders of its intention to fix a record date that is prior to the Expiry Date for any matter for which an adjustment may be required pursuant to Section 4.1 Such notice shall specify the particulars of such event and the record date for such event, provided that the Company shall only be required to specify in the notice such particulars of the event as shall have been fixed and determined on the date on which the notice is given. The notice shall be given in each case not less than 14 days prior to such applicable record date. If notice has been given and the adjustment is not then determinable, the Company shall promptly, after the adjustment is determinable, file with the Warrant Agent a computation of the adjustment and give notice to the Registered Warrantholders of such adjustment computation.

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| | |
|:---|:---|
| **Section 4.8** | **No Action after Notice.** |

---

The Company covenants with the Warrant Agent that it will not close its transfer books or take any other corporate action which might deprive the Registered Warrantholder of the opportunity to exercise its right of acquisition pursuant thereto during the period of 14 days after the giving of the certificate or notices set forth in Section 4.6 and Section 4.7.

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| | |
|:---|:---|
| **Section 4.9** | **Other Action.** |

---

If the Company, after the date hereof, shall take any action affecting the Class A Shares other than action described in Section 4.1, which in the reasonable opinion of the directors of the Company would materially affect the rights of Registered Warrantholders, the Exercise Price and/or Exchange Rate, the number of Warrant Shares which may be acquired upon exercise of the Warrants shall be adjusted in such manner and at such time, by action of the directors, acting reasonably and in good faith, in their sole discretion as they may determine to be equitable to the Registered Warrantholders in the circumstances, provided that no such adjustment will be made unless any requisite prior approval of any stock exchange on which the Class A Shares are listed for trading has been obtained.

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| | |
|:---|:---|
| **Section 4.10** | **Protection of Warrant Agent.** |

---

The Warrant Agent shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at
 any time be under any duty or responsibility to any Registered Warrantholder to determine whether any facts exist which may require
 any adjustment contemplated by Section 4.1, or with respect to the nature or extent of any such adjustment when made, or with respect
 to the method employed in making the same;

(b) be
 accountable with respect to the validity or value (or the kind or amount) of any Warrant Shares or of any other securities or property
 which may at any time be issued or delivered upon the exercise of the rights attaching to any Warrant;

(c) be
 responsible for any failure of the Company to issue, transfer or deliver Warrant Shares or certificates for the same upon the surrender
 of any Warrants for the purpose of the exercise of such rights or to comply with any of the covenants contained in this Article;
 and

(d) incur
 any liability or be in any way responsible for the consequences of any breach on the part of the Company of any of the representations,
 warranties or covenants herein contained or of any acts of the directors, officers, employees, agents or servants of the Company.

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| | |
|:---|:---|
| **Section 4.11** | **Participation by Warrantholder.** |

---

No adjustments shall be made pursuant to this Article 4 if the Registered Warrantholders are entitled to participate in any event described in this Article 4 on the same terms, mutatis mutandis, as if the Registered Warrantholders had exercised their Warrants prior to, or on the effective date or record date of, such event and any such participation will be subject to the prior approval of the NEO.

**Article 5<br> RIGHTS OF THE Company AND COVENANTS**

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| | |
|:---|:---|
| **Section 5.1** | **Optional Purchases by the Company.** |

---

Subject to compliance with applicable securities laws and approval of applicable regulatory authorities, if any, the Company may from time to time purchase by private contract or otherwise any of the Warrants. Any such purchase shall be made at the lowest price or prices at which, in the opinion of the directors of the Company, such Warrants are then obtainable, plus reasonable costs of purchase, and may be made in such manner, from such persons and on such other terms as the Company, in its sole discretion, may determine. In the case of Warrant Certificates, Warrant Certificates representing the Warrants purchased pursuant to this Section 5.1 shall forthwith be delivered to and cancelled by the Warrant Agent and reflected accordingly on the register of Warrants. In the case of Uncertificated Warrants, the Warrants purchased pursuant to this Section 5.1 shall be reflected accordingly on the register of Warrants and in accordance with procedures prescribed by the Depository under the book entry registration system. No Warrants shall be issued in replacement thereof.

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| | |
|:---|:---|
| **Section 5.2** | **General Covenants.** |

---

The Company covenants with the Warrant Agent that so long as any Warrants remain outstanding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 will reserve and keep available a sufficient number of Class A Shares for the purpose of enabling it to satisfy its obligations to
 issue Warrant Shares upon the exercise of the Warrants;

(b) it
 will cause the Warrant Shares from time to time acquired pursuant to the exercise of the Warrants to be duly issued and delivered
 in accordance with the Warrants and the terms hereof;

(c) all
 Warrant Shares which shall be issued upon exercise of the right to acquire provided for herein shall be fully paid and non-assessable,
 free and clear of all encumbrances;

(d) it
 will use reasonable commercial efforts to maintain its existence and carry on its business in the ordinary course;

(e) it
 will use reasonable commercial efforts to ensure that all Class A Shares outstanding or issuable from time to time (including without
 limitation the Warrant Shares issuable on the exercise of the Warrants) continue to be or are listed and posted for trading on the
 NEO (or such other Canadian stock exchange acceptable to the Company), provided that this clause shall not be construed as limiting
 or restricting the Company from completing a consolidation, amalgamation, arrangement, takeover bid or merger that would result in
 the Class A Shares ceasing to be listed and posted for trading on the NEO, so long as the holders of Class A Shares receive securities
 of an entity which is listed on a stock exchange in Canada, or cash, or the holders of the Class A Shares have approved the transaction
 in accordance with the requirements of applicable corporate and securities laws and the policies of the NEO;

(f) it
 will make all requisite filings under applicable Canadian securities laws including those necessary to remain a reporting issuer
 not in default in each of the provinces and other Canadian jurisdictions where it is or becomes a reporting issuer;

(g) generally,
 it will well and truly perform and carry out all of the acts or things to be done by it as provided in this Indenture; and

(h) the
 Company will promptly notify the Warrant Agent and the Warrantholders in writing of any default under the terms of this Warrant Indenture
 which remains unrectified for more than five days following its occurrence.

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| | |
|:---|:---|
| **Section 5.3** | **Warrant Agent's Remuneration and Expenses.** |

---

The Company covenants that it will pay to the Warrant Agent from time to time reasonable remuneration for its services hereunder and will pay or reimburse the Warrant Agent upon its request for all reasonable expenses, disbursements and advances incurred or made by the Warrant Agent in the administration or execution of its duties hereby created (including the reasonable compensation and the disbursements of its Counsel and all other advisers and assistants not regularly in its employ) both before any default hereunder and thereafter until all duties of the Warrant Agent hereunder shall be finally and fully performed. Any amount owing hereunder and remaining unpaid after 30 days from the invoice date will bear interest at the then current rate charged by the Warrant Agent against unpaid invoices and shall be payable upon demand. This Section shall survive the resignation or removal of the Warrant Agent and/or the termination of this Indenture.

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| | |
|:---|:---|
| **Section 5.4** | **Performance of Covenants by Warrant Agent.** |

---

If the Company shall fail to perform any of its covenants contained in this Indenture, the Warrant Agent may notify the Registered Warrantholders of such failure on the part of the Company and may itself perform any of the covenants capable of being performed by it but, subject to Section 9.2, shall be under no obligation to perform said covenants or to notify the Registered Warrantholders of such performance by it. All sums expended or advanced by the Warrant Agent in so doing shall be repayable as provided in Section 5.3. No such performance, expenditure or advance by the Warrant Agent shall relieve the Company of any default hereunder or of its continuing obligations under the covenants herein contained.

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| | |
|:---|:---|
| **Section 5.5** | **Enforceability of Warrants.** |

---

The Company covenants and agrees that it has duly created and issued the Warrants to be governed hereunder and that the Warrants, when Authenticated as herein provided, will be valid and enforceable against the Company in accordance with the provisions hereof and the terms hereof and that, subject to the provisions of this Indenture, the Company will cause the Warrant Shares from time to time acquired upon exercise of Warrants issued under this Indenture to be duly issued and delivered in accordance with the terms of this Indenture.

**Article 6<br> ENFORCEMENT**

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| | |
|:---|:---|
| **Section 6.1** | **Suits by Registered Warrantholders.** |

---

All or any of the rights conferred upon any Registered Warrantholder by any of the terms of this Indenture may be enforced by the Registered Warrantholder by appropriate proceedings but without prejudice to the right which is hereby conferred upon the Warrant Agent to proceed in its own name to enforce each and all of the provisions herein contained for the benefit of the Registered Warrantholders.

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| | |
|:---|:---|
| **Section 6.2** | **Suits by the Company.** |

---

The Company shall have the right to enforce full payment of the Exercise Price of all Warrant Shares issued by the Warrant Agent to a Registered Warrantholder hereunder and shall be entitled to demand such payment from the Registered Warrantholder or alternatively to instruct the Warrant Agent to cancel the share certificates representing such Warrant Shares and amend the securities register of the Company accordingly.

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| | |
|:---|:---|
| **Section 6.3** | **Immunity of Shareholders, etc.** |

---

Subject to Applicable Laws, the Warrant Agent and, by the acceptance of the Warrants and as part of the consideration for the issue of the Warrants, the Warrantholders hereby waive and release any right, cause of action or remedy now or hereafter existing in any jurisdiction against any incorporator or any past, present or future shareholder, trustee, employee or agent of the Company or any successor entity on any covenant, agreement, representation or warranty by the Company herein.

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| | |
|:---|:---|
| **Section 6.4** | **Waiver of Default.** |

---

Upon the happening of any default hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Registered Warrantholders of not less than 51% of the Warrants then outstanding shall have power (in addition to the powers exercisable
 by Extraordinary Resolution) by requisition in writing to instruct the Warrant Agent to waive any default hereunder and the Warrant
 Agent shall thereupon waive the default upon such terms and conditions as shall be prescribed in such requisition; or

(b) the
 Warrant Agent shall have power to waive any default hereunder upon such terms and conditions as the Warrant Agent may deem advisable,
 on the advice of Counsel, if, in the Warrant Agent's opinion, based on the advice of Counsel, the same shall have been cured
 or adequate provision made therefor;

provided that no delay or omission of the Warrant Agent or of the Registered Warrantholders to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein and provided further that no act or omission either of the Warrant Agent or of the Registered Warrantholders in the premises shall extend to or be taken in any manner whatsoever to affect any subsequent default hereunder of the rights resulting therefrom.

**Article 7<br> MEETINGS OF REGISTERED WARRANTHOLDERS**

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| | |
|:---|:---|
| **Section 7.1** | **Right to Convene Meetings.** |

---

The Warrant Agent may at any time and from time to time, and shall on receipt of a written request of the Company or of a Warrantholders' Request and upon being indemnified and funded to its reasonable satisfaction by the Company or by the Registered Warrantholders signing such Warrantholders' Request against the costs which may be incurred in connection with the calling and holding of such meeting, convene a meeting of the Registered Warrantholders. If the Warrant Agent fails to so call a meeting within seven days after receipt of such written request of the Company or within 30 days after receipt of such Warrantholders' Request and the indemnity and funding given as aforesaid, the Company or such Registered Warrantholders, as the case may be, may convene such meeting. Every such meeting shall be held in the City of Vancouver or at such other place as may be approved or determined by the Warrant Agent and the Company. Any meeting held pursuant to this Article 7 may be done through a virtual or electronic meeting platform, subject to the Warrant Agent's capabilities at the time.

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| | |
|:---|:---|
| **Section 7.2** | **Notice.** |

---

At least 21 days' prior written notice of any meeting of Registered Warrantholders shall be given to the Registered Warrantholders in the manner provided for in Section 10.2 and a copy of such notice shall be sent by mail to the Warrant Agent (unless the meeting has been called by the Warrant Agent) and to the Company (unless the meeting has been called by the Company). Such notice shall state the time when and the place where the meeting is to be held, shall state briefly the general nature of the business to be transacted thereat and shall contain such information as is reasonably necessary to enable the Registered Warrantholders to make a reasoned decision on the matter, but it shall not be necessary for any such notice to set out the terms of any resolution to be proposed or any of the provisions of this Section 7.2.

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| | |
|:---|:---|
| **Section 7.3** | **Chairman.** |

---

An individual (who need not be a Registered Warrantholder) designated in writing by the Warrant Agent shall be chairman of the meeting and if no individual is so designated, or if the individual so designated is not present within fifteen minutes from the time fixed for the holding of the meeting, the Registered Warrantholders present in person or by proxy shall choose an individual present to be chairman.

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| | |
|:---|:---|
| **Section 7.4** | **Quorum.** |

---

Subject to the provisions of Section 7.11, at any meeting of the Registered Warrantholders a quorum shall consist of Registered Warrantholder(s) present in person or by proxy and entitled to purchase at least 25% of the aggregate number of Warrant Shares which may be acquired pursuant to all the then outstanding Warrants. If a quorum of the Registered Warrantholders shall not be present within thirty minutes from the time fixed for holding any meeting, the meeting, if summoned by Registered Warrantholders or on a Warrantholders' Request, shall be dissolved; but in any other case the meeting shall be adjourned to the same day in the next week (unless such day is not a Business Day, in which case it shall be adjourned to the next following Business Day) at the same time and place and no notice of the adjournment need be given. Any business may be brought before or dealt with at an adjourned meeting which might have been dealt with at the original meeting in accordance with the notice calling the same. No business shall be transacted at any meeting unless a quorum be present at the commencement of business. At the adjourned meeting the Registered Warrantholders present in person or by proxy shall form a quorum and may transact the business for which the meeting was originally convened, notwithstanding that they may not be entitled to acquire at least 25% of the aggregate number of Warrant Shares which may be acquired pursuant to all then outstanding Warrants.

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| | |
|:---|:---|
| **Section 7.5** | **Power to Adjourn.** |

---

The chairman of any meeting at which a quorum of the Registered Warrantholders is present may, with the consent of the meeting, adjourn any such meeting, and no notice of such adjournment need be given except such notice, if any, as the meeting may prescribe.

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| | |
|:---|:---|
| **Section 7.6** | **Show of Hands.** |

---

Every question submitted to a meeting shall be decided in the first place by a majority of the votes given on a show of hands except that votes on an Extraordinary Resolution shall be given in the manner hereinafter provided. At any such meeting, unless a poll is duly demanded as herein provided, a declaration by the chairman that a resolution has been carried or carried unanimously or by a particular majority or lost or not carried by a particular majority shall be conclusive evidence of the fact.

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| | |
|:---|:---|
| **Section 7.7** | **Poll and Voting.** |

---

(1) On
 every Extraordinary Resolution, and on any other question submitted to a meeting and after a vote by show of hands when demanded
 by the chairman or by one or more of the Registered Warrantholders acting in person or by proxy and entitled to acquire in the aggregate
 at least 5% of the aggregate number of Warrant Shares which may be acquired pursuant to all the Warrants then outstanding, a poll
 shall be taken in such manner as the chairman shall direct. Questions other than those required to be determined by Extraordinary
 Resolution shall be decided by a majority of the votes cast on the poll.

(2) On
 a show of hands, every person who is present and entitled to vote, whether as a Registered Warrantholder or as proxy for one or more
 absent Registered Warrantholders, or both, shall have one vote. On a poll, each Registered Warrantholder present in person or represented
 by a proxy duly appointed by instrument in writing shall be entitled to one vote in respect of each Warrant then held or represented
 by it. A proxy need not be a Registered Warrantholder. The chairman of any meeting shall be entitled, both on a show of hands and
 on a poll, to vote in respect of the Warrants, if any, held or represented by him.

---

| | |
|:---|:---|
| **Section 7.8** | **Regulations.** |

---

(1) The
 Warrant Agent, or the Company with the approval of the Warrant Agent, may from time to time make and from time to time vary such
 regulations as it shall think fit for the setting of the record date for a meeting for the purpose of determining Registered Warrantholders
 entitled to receive notice of and to vote at the meeting.

(2) Any
 regulations so made shall be binding and effective and the votes given in accordance therewith shall be valid and shall be counted.
 Save as such regulations may provide, the only persons who shall be recognized at any meeting as a Registered Warrantholder, or be
 entitled to vote or be present at the meeting in respect thereof (subject to Section 7.9), shall be Registered Warrantholders or
 proxies of Registered Warrantholders.

---

| | |
|:---|:---|
| **Section 7.9** | **Corporation and Warrant Agent May be Represented.** |

---

The Company and the Warrant Agent, by their respective directors, officers, agents, and employees and the Counsel for the Company and for the Warrant Agent may attend any meeting of the Registered Warrantholders.

---

| | |
|:---|:---|
| **Section 7.10** | **Powers Exercisable by Extraordinary Resolution.** |

---

In addition to all other powers conferred upon them by any other provisions of this Indenture or by law, the Registered Warrantholders at a meeting shall, subject to the provisions of Section 7.11, have the power exercisable from time to time by Extraordinary Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to
 agree to any modification, abrogation, alteration, compromise or arrangement of the rights of Registered Warrantholders or the Warrant
 Agent in its capacity as warrant agent hereunder (subject to the Warrant Agent's prior consent, acting reasonably) or on behalf
 of the Registered Warrantholders against the Company whether such rights arise under this Indenture or otherwise;

(b) to
 amend, alter or repeal any Extraordinary Resolution previously passed or sanctioned by the Registered Warrantholders;

(c) to
 direct or to authorize the Warrant Agent, subject to Section 9.2(2) hereof, to enforce any of the covenants on the part of the Company
 contained in this Indenture or to enforce any of the rights of the Registered Warrantholders in any manner specified in such Extraordinary
 Resolution or to refrain from enforcing any such covenant or right;

(d) to
 waive, and to direct the Warrant Agent to waive, any default on the part of the Company in complying with any provisions of this
 Indenture either unconditionally or upon any conditions specified in such Extraordinary Resolution;

(e) to
 restrain any Registered Warrantholder from taking or instituting any suit, action or proceeding against the Company for the enforcement
 of any of the covenants on the part of the Company in this Indenture or to enforce any of the rights of the Registered Warrantholders;

(f) to
 direct any Registered Warrantholder who, as such, has brought any suit, action or proceeding to stay or to discontinue or otherwise
 to deal with the same upon payment of the costs, charges and expenses reasonably and properly incurred by such Registered Warrantholder
 in connection therewith;

(g) to
 assent to any change in or omission from the provisions contained in this Indenture or any ancillary or supplemental instrument which
 may be agreed to by the Company, and to authorize the Warrant Agent to concur in and execute any ancillary or supplemental indenture
 embodying the change or omission;

(h) with
 the consent of the Company, such consent not to be unreasonably withheld, to remove the Warrant Agent or its successor in office
 and to appoint a new warrant agent or warrant agents to take the place of the Warrant Agent so removed; and

(i) to
 assent to any compromise or arrangement with any creditor or creditors or any class or classes of creditors, whether secured or otherwise,
 and with holders of any shares or other securities of the Company.

---

| | |
|:---|:---|
| **Section 7.11** | **Meaning of Extraordinary Resolution.** |

---

(1) The
 expression "**Extraordinary Resolution**" when used in this Indenture means, subject as hereinafter provided in this
 Section 7.11 and in Section 7.14, a resolution proposed at a meeting of Registered Warrantholders duly convened for that purpose
 and held in accordance with the provisions of this Article 7 at which there are present in person or by proxy Registered Warrantholders
 holding at least 25% of the aggregate number of Warrant Shares that may be acquired on exercise of the Warrants and passed by the
 affirmative votes of Registered Warrantholders holding not less than 66 2/3% of the aggregate number of Warrant Shares that may be
 acquired on exercise of the Warrants at the meeting and voted on the poll upon such resolution.

(2) If,
 at the meeting at which an Extraordinary Resolution is to be considered, Registered Warrantholders holding at least 25% of the aggregate
 number of Warrant Shares that may be acquired are not present in person or by proxy within 30 minutes after the time appointed for
 the meeting, then the meeting, if convened by Registered Warrantholders or on a Warrantholders' Request, shall be dissolved;
 but in any other case it shall stand adjourned to such day, being not less than 15 or more than 60 days later, and to such place
 and time as may be appointed by the chairman. Not less than 14 days' prior notice shall be given of the time and place of such
 adjourned meeting in the manner provided for in Section 10.2. Such notice shall state that at the adjourned meeting the Registered
 Warrantholders present in person or by proxy shall form a quorum but it shall not be necessary to set forth the purposes for which
 the meeting was originally called or any other particulars. At the adjourned meeting the Registered Warrantholders present in person
 or by proxy shall form a quorum and may transact the business for which the meeting was originally convened and a resolution proposed
 at such adjourned meeting and passed by the requisite vote as provided in Section 7.11(1) shall be an Extraordinary Resolution within
 the meaning of this Indenture notwithstanding that Registered Warrantholders entitled to acquire at least 25% of the aggregate number
 of Warrant Shares which may be acquired pursuant to all the then outstanding Warrants are not present in person or by proxy at such
 adjourned meeting.

(3) Subject
 to Section 7.14, votes on an Extraordinary Resolution shall always be given on a poll and no demand for a poll on an Extraordinary
 Resolution shall be necessary.

---

| | |
|:---|:---|
| **Section 7.12** | **Powers Cumulative.** |

---

Any one or more of the powers or any combination of the powers in this Indenture stated to be exercisable by the Registered Warrantholders by Extraordinary Resolution or otherwise may be exercised from time to time and the exercise of any one or more of such powers or any combination of powers from time to time shall not be deemed to exhaust the right of the Registered Warrantholders to exercise such power or powers or combination of powers then or thereafter from time to time.

---

| | |
|:---|:---|
| **Section 7.13** | **Minutes.** |

---

Minutes of all resolutions and proceedings at every meeting of Registered Warrantholders shall be made and duly recorded in the books and such minutes as aforesaid, if signed by the chairman or the secretary of the meeting at which such resolutions were passed or proceedings had shall be prima facie evidence of the matters therein stated and, until the contrary is proved, every such meeting in respect of the proceedings of which minutes shall have been made shall be deemed to have been duly convened and held, and all resolutions passed thereat or proceedings taken shall be deemed to have been duly passed and taken.

---

| | |
|:---|:---|
| **Section 7.14** | **Instruments in Writing.** |

---

All actions which may be taken and all powers that may be exercised by the Registered Warrantholders at a meeting held as provided in this Article 7 may also be taken and exercised by Registered Warrantholders holding at least 66 2/3% of the aggregate number of the then outstanding Warrants by an instrument in writing signed in one or more counterparts by such Registered Warrantholders in person or by attorney duly appointed in writing, and the expression "**Extraordinary Resolution**" when used in this Indenture shall include an instrument so signed.

---

| | |
|:---|:---|
| **Section 7.15** | **Binding Effect of Resolutions.** |

---

Every resolution and every Extraordinary Resolution passed in accordance with the provisions of this Article 7 at a meeting of Registered Warrantholders shall be binding upon all the Warrantholders, whether present at or absent from such meeting, and every instrument in writing signed by Registered Warrantholders in accordance with Section 7.14 shall be binding upon all the Warrantholders, whether signatories thereto or not, and each and every Warrantholder and the Warrant Agent (subject to the provisions for indemnity herein contained) shall be bound to give effect accordingly to every such resolution and instrument in writing.

---

| | |
|:---|:---|
| **Section 7.16** | **Holdings by Company Disregarded.** |

---

In determining whether Registered Warrantholders holding Warrants evidencing the entitlement to acquire the required number of Warrant Shares are present at a meeting of Registered Warrantholders for the purpose of determining a quorum or have concurred in any consent, waiver, Extraordinary Resolution, Warrantholders' Request or other action under this Indenture, Warrants owned legally or beneficially by the Company shall be disregarded in accordance with the provisions of Section 10.7.

**Article 8<br> SUPPLEMENTAL INDENTURES**

---

| | |
|:---|:---|
| **Section 8.1** | **Provision for Supplemental Indentures for Certain Purposes.** |

---

From time to time, the Company (when authorized by action of the directors of the Company) and the Warrant Agent may, subject to the provisions hereof and subject to the prior approval of the NEO, as need be, and they shall, when so directed in accordance with the provisions hereof, execute and deliver by their proper officers, indentures or instruments supplemental hereto, which thereafter shall form part hereof, for any one or more or all of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) setting
 forth any adjustments resulting from the application of the provisions of Article 4;

(b) adding
 to the provisions hereof such additional covenants and enforcement provisions as, in the opinion of Counsel, are necessary or advisable
 in the premises, provided that the same are not in the opinion of the Warrant Agent, relying on the advice of Counsel, prejudicial
 to the interests of the Registered Warrantholders;

(c) giving
 effect to any Extraordinary Resolution passed as provided in Section 7.11;

(d) making
 such provisions not inconsistent with this Indenture as may be necessary or desirable with respect to matters or questions arising
 hereunder or for the purpose of obtaining a listing or quotation of the Warrants on any stock exchange or quotation system, provided
 that such provisions are not, in the opinion of the Warrant Agent, relying on the advice of Counsel, prejudicial to the interests
 of the Registered Warrantholders;

(e) adding
 to or altering the provisions hereof in respect of the transfer of Warrants, making provision for the exchange of Warrants, and making
 any modification in the form of the Warrant Certificates which does not affect the substance thereof;

(f) modifying
 any of the provisions of this Indenture, including relieving the Company from any of the obligations, conditions or restrictions
 herein contained, provided that such modification or relief shall be or become operative or effective only if, in the opinion of
 the Warrant Agent, relying on the advice of Counsel, such modification or relief in no way prejudices any of the rights of the Registered
 Warrantholders or of the Warrant Agent, and provided further that the Warrant Agent may in its sole discretion decline to enter into
 any such supplemental indenture which in its opinion may not afford adequate protection to the Warrant Agent when the same shall
 become operative;

(g) providing
 for the issuance of additional Warrants hereunder, including Warrants in excess of the number set out in Section 2.1 and any consequential
 amendments hereto as may be required by the Warrant Agent relying on the advice of Counsel; and

(h) for
 any other purpose not inconsistent with the terms of this Indenture, including the correction or rectification of any ambiguities,
 defective or inconsistent provisions, errors, mistakes or omissions herein, provided that in the opinion of the Warrant Agent, relying
 on the advice of Counsel, the rights of the Warrant Agent and of the Registered Warrantholders are in no way prejudiced thereby.

---

| | |
|:---|:---|
| **Section 8.2** | **Successor Entities.** |

---

In the case of the consolidation, amalgamation, arrangement, merger or transfer of the undertaking or assets of the Company as an entirety or substantially as an entirety to or with another entity ("**successor entity**"), the successor entity resulting from such consolidation, amalgamation, arrangement, merger or transfer (if not the Company) shall expressly assume, by supplemental indenture satisfactory in form to the Warrant Agent and executed and delivered to the Warrant Agent, the due and punctual performance and observance of each and every covenant and condition of this Indenture to be performed and observed by the Company.

**Article 9<br> CONCERNING THE WARRANT Agent**

---

| | |
|:---|:---|
| **Section 9.1** | **Trust Indenture Laws.** |

---

(1) If
 and to the extent that any provision of this Indenture limits, qualifies or conflicts with a mandatory requirement of Applicable
 Laws, such mandatory requirement shall prevail.

(2) The
 Company and the Warrant Agent agree that each will, at all times in relation to this Indenture and any action to be taken hereunder,
 observe and comply with and be entitled to the benefits of Applicable Laws.

---

| | |
|:---|:---|
| **Section 9.2** | **Rights and Duties of Warrant Agent.** |

---

(1) In
 the exercise of the rights and duties prescribed or conferred by the terms of this Indenture, the Warrant Agent shall act honestly
 and in good faith with a view to the best interests of the Warrantholders and shall exercise that degree of care, diligence and skill
 that a reasonably prudent warrant agent would exercise in comparable circumstances. No provision of this Indenture shall be construed
 to relieve the Warrant Agent from liability for its own gross negligence, wilful misconduct, bad faith or fraud under this Indenture.

(2) The
 obligation of the Warrant Agent to commence or continue any act, action or proceeding for the purpose of enforcing any rights of
 the Warrant Agent or the Registered Warrantholders hereunder shall be conditional upon the Registered Warrantholders furnishing,
 when required by notice by the Warrant Agent, sufficient funds to commence or to continue such act, action or proceeding and an indemnity
 reasonably satisfactory to the Warrant Agent to protect and to hold harmless the Warrant Agent and its officers, directors, employees
 and agents, against the costs, charges and expenses and liabilities to be incurred thereby and any loss and damage it may suffer
 by reason thereof. None of the provisions contained in this Indenture shall require the Warrant Agent to expend or to risk its own
 funds or otherwise to incur financial liability in the performance of any of its duties or in the exercise of any of its rights or
 powers unless indemnified and funded as aforesaid.

(3) The
 Warrant Agent may, before commencing or at any time during the continuance of any such act, action or proceeding, require the Registered
 Warrantholders, at whose instance it is acting to deposit with the Warrant Agent the Warrants Certificates held by them, for which
 Warrants the Warrant Agent shall issue receipts.

(4) Every
 provision of this Indenture that by its terms relieves the Warrant Agent of liability or entitles it to rely upon any evidence submitted
 to it is subject to the provisions of Applicable Laws.

---

| | |
|:---|:---|
| **Section 9.3** | **Evidence, Experts and Advisers.** |

---

(1) In
 addition to the reports, certificates, opinions and other evidence required by this Indenture, the Company shall furnish to the Warrant
 Agent such additional evidence of compliance with any provision hereof, and in such form, as may be prescribed by Applicable Laws
 or as the Warrant Agent may reasonably require by written notice to the Company.

(2) In
 the exercise of its rights and duties hereunder, the Warrant Agent may, if it is acting in good faith, rely as to the truth of the
 statements and the accuracy of the opinions expressed in statutory declarations, opinions, reports, written requests, consents, or
 orders of the Company, certificates of the Company or other evidence furnished to the Warrant Agent pursuant to a request of the
 Warrant Agent, provided that such evidence complies with Applicable Laws and that the Warrant Agent complies with Applicable Laws
 and that the Warrant Agent examines the same and determines that such evidence complies with the applicable requirements of this
 Indenture. The Warrant Agent shall be under no responsibility in respect of the validity of this Indenture or the execution and delivery
 hereof by or on behalf of the Company, or in respect of the validity or the execution of any Warrant Certificate by the Company and
 issued hereunder, nor shall it be responsible for any breach by the Company of any covenant or condition contained in this Indenture
 or in any such Warrant Certificate; nor shall it by any act hereunder be deemed to make any representation or warranty as to the
 authorization or reservation of any securities to be issued upon the right to acquire provided for in this Indenture and/or in any
 Warrant or as to whether any securities will when issued be duly authorized or be validly issued and fully paid and non-assessable.

(3) Proof
 of execution of any document or instrument in writing, including a Warrantholders' Request, by a Warrantholder may be made
 by the certificate of a notary public, or other officer with similar powers, that the Person signing such instrument acknowledged
 to him the execution thereof, or by an affidavit of a witness to such execution, or in any other manner that the Warrant Agent considers
 adequate and in respect of a corporate Warrantholder, shall include a certificate of incumbency of such Warrantholder together with
 a certified resolution authorizing the Person who signs such instrument to sign such instrument.

(4) Whenever
 it is provided in this Indenture or under Applicable Laws that the Company shall deposit with the Warrant Agent resolutions, certificates,
 reports, opinions, requests, orders or other documents, it is intended that the truth, accuracy and good faith on the effective date
 thereof and the facts and opinions stated in all such documents so deposited shall, in each and every such case, be conditions precedent
 to the right of the Company to have the Warrant Agent take the action to be based thereon.

(5) The
 Warrant Agent may employ or retain such Counsel, accountants, appraisers or other experts or advisers as it may reasonably require
 for the purpose of determining and discharging its rights and duties hereunder and may pay reasonable remuneration for all services
 so performed by any of them, and will not be responsible for any misconduct or negligence on the part of any such experts or advisers
 who have been appointed with due care by the Warrant Agent. The Company shall pay or reimburse the Warrant Agent for any reasonable
 fees of such counsel, accountants, appraisers, or other experts or advisors.

(6) The
 Warrant Agent may act and rely and shall be protected in acting and relying in good faith on the opinion or advice of or information
 obtained from any Counsel, accountant, appraiser, engineer or other expert or adviser, whether retained or employed by the Company
 or by the Warrant Agent, in relation to any matter arising in the administration of the agency hereof.

(7) The
 Warrant Agent may, as a condition precedent to any action to be taken by it under this Indenture, require such opinions, statutory
 declarations, reports, certificates or other evidence as it, acting reasonably, considers necessary or advisable in the circumstances.

(8) The
 Warrant Agent is not required to expend or place its own funds at risk in executing its duties and obligations.

---

| | |
|:---|:---|
| **Section 9.4** | **Documents, Monies, etc. Held by Warrant Agent.** |

---

Until released in accordance with this Indenture, any funds received hereunder shall be kept in segregated records of the Warrant Agent and the Warrant Agent shall place the funds in segregated trust accounts of the Warrant Agent at one or more of the Canadian Chartered Banks listed in Schedule 1 of the Bank Act (Canada) ("**Approved Bank**"). All amounts held by the Warrant Agent pursuant to this Agreement shall be held by the Warrant Agent for the Company and the delivery of the funds to the Warrant Agent shall not give rise to a debtor-creditor or other similar relationship. The amounts held by the Warrant Agent pursuant to this Agreement are at the sole risk of the Company and, without limiting the generality of the foregoing, the Warrant Agent shall have no responsibility or liability for any diminution of the funds which may result from any deposit made with an Approved Bank pursuant to this section, including any losses resulting from a default by the Approved Bank or other credit losses (whether or not resulting from such a default). The parties hereto acknowledge and agree that the Warrant Agent will have acted prudently in depositing the funds at any Approved Bank, and that the Warrant Agent is not required to make any further inquiries in respect of any such bank. The Warrant Agent may hold cash balances constituting part or all of such monies and need not, invest the same; the Warrant Agent shall not be liable to account for any profit to any parties to this Indenture or to any other person or entity.

---

| | |
|:---|:---|
| **Section 9.5** | **Actions by Warrant Agent to Protect Interest.** |

---

The Warrant Agent shall have power to institute and to maintain such actions and proceedings as it may consider necessary or expedient to preserve, protect or enforce its interests and the interests of the Registered Warrantholders.

---

| | |
|:---|:---|
| **Section 9.6** | **Warrant Agent Not Required to Give Security.** |

---

The Warrant Agent shall not be required to give any bond or security in respect of the execution of the agency and powers of this Indenture or otherwise in respect of the premises.

---

| | |
|:---|:---|
| **Section 9.7** | **Protection of Warrant Agent.** |

---

By way of supplement to the provisions of any law for the time being relating to the Warrant Agent it is expressly declared and agreed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Warrant Agent shall not be liable for or by reason of any statements of fact or recitals in this Indenture or in the Warrant Certificates
 (except the representation contained in Section 9.9 or in the Authentication of the Warrant Agent on the Warrant Certificates) or
 be required to verify the same, but all such statements or recitals are and shall be deemed to be made by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) nothing
 herein contained shall impose any obligation on the Warrant Agent to see to or to require evidence of the registration or filing
 (or renewal thereof) of this Indenture or any instrument ancillary or supplemental hereto;

(c) the
 Warrant Agent shall not be bound to give notice to any person or persons of the execution hereof;

(d) the
 Warrant Agent shall not be liable for any error in judgment or for any act done or step taken or omitted by it in good faith or for
 any mistake, in fact or law, or for anything which it may do or refrain from doing in connection herewith except arising out of its
 own gross negligence, wilful misconduct or fraud;

(e) the
 Warrant Agent shall not incur any liability or responsibility whatever or be in any way responsible for the consequence of any breach
 on the part of the Company of any of its covenants herein contained or of any acts of any directors, officers, employees, agents
 or servants of the Company;

(f) the
 Warrant Agent shall incur no liability with respect to the delivery or non-delivery of any certificate or certificates whether delivered
 by hand, mail or any other means provided that they are sent in accordance with the provisions hereof;

(g) if
 the Warrant Agent delivers any cheque as required hereunder, the Warrant Agent shall have no further obligation or liability for
 the amount represented thereby, unless any such cheque is not honoured on presentation, provided that in the event of the non-receipt
 of such cheque by the payee, or the loss or destruction thereof, the Warrant Agent, upon being furnished with reasonable evidence
 of such non-receipt, loss or destruction and, if required by the Warrant Agent, an indemnity reasonably satisfactory to it, shall
 issue to such payee a replacement cheque for the amount of such cheque;

(h) the
 Warrant Agent will disburse funds in accordance with the provisions hereof only to the extent that funds have been deposited with
 it. The Warrant Agent shall not under any circumstances be required to disburse funds in excess of the amounts on deposit with the
 Warrant Agent at the time of disbursement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 Company shall at all times indemnify the Warrant Agent and its affiliates, their successors and assigns, and each of their directors,
 officers, employees and agents (collectively, the "**Indemnified Parties**" and any one of them, an "**Indemnified Party**") and save them harmless from and against all claims, demands, losses, actions, causes of action, suits, proceedings,
 liabilities, damages, costs, charges, assessments, judgments and expenses (including expert consultant and legal fees and disbursements
 on a solicitor and client basis and expenses incurred in connection with the enforcement of this indemnity) (collectively "**Losses** "),
 which the Indemnified Parties, or any of them, may suffer or incur, whether at law or in equity, in any way caused by or arising,
 directly or indirectly, in respect of any act, deed, matter or thing whatsoever made, done, acquiesced in or omitted in or about
 or in relation to the execution of the Indemnified Parties' duties, and including any services that the Warrant Agent may provide
 in connection with or in any way relating to this Indenture including, without limitation, those arising out of or related to actions
 taken or omitted to be taken by the Indemnified Parties and any action or liability brought against or incurred by the Indemnified
 Parties in relation to or arising out of any breach by the Company, provided however that the Company shall not be required to indemnify
 the Indemnified Parties (or any one of them) for any Losses arising, directly or indirectly, from an Indemnified Party's gross
 negligence, wilful misconduct or bad faith. Notwithstanding any other provision hereof, the Company agrees that its liability hereunder
 shall be absolute and unconditional regardless of the correctness of any representations of any third parties and regardless of any
 liability of third parties to the Indemnified Parties, and shall accrue and become enforceable without prior demand or any other
 precedent action or proceeding. Notwithstanding any other provision hereof, this indemnity shall survive the resignation or removal
 of the Warrant Agent and the termination or discharge of this Indenture; and

(f) notwithstanding
 the foregoing or any other provision of this Indenture, any liability of the Warrant Agent shall be limited, in the aggregate, to
 the amount of annual retainer fees paid by the Company to the Warrant Agent under this Indenture in the twelve (12) months immediately
 prior to the Warrant Agent receiving the first notice of the claim. Notwithstanding any other provision of this Indenture, and whether
 such losses or damages are foreseeable or unforeseeable, the Warrant Agent shall not be liable under any circumstances whatsoever
 for any (a) breach by any other party of securities law or other rule of any securities regulatory authority, (b) lost profits or
 (c) special, indirect, incidental, consequential, exemplary, aggravated or punitive losses or damages.

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| | |
|:---|:---|
| **Section 9.8** | **Replacement of Warrant Agent; Successor by Merger.** |

---

(1) The
 Warrant Agent may resign its agency and be discharged from all further duties and liabilities hereunder, subject to this Section
 9.8, by giving to the Company not less than 60 days' prior notice in writing or such shorter prior notice as the Company may
 accept as sufficient. The Registered Warrantholders by Extraordinary Resolution shall have power at any time to remove the existing
 Warrant Agent and to appoint a new warrant agent. In the event of the Warrant Agent resigning or being removed as aforesaid or being
 dissolved, becoming bankrupt, going into liquidation or otherwise becoming incapable of acting hereunder, the Company shall forthwith
 appoint a new warrant agent unless a new warrant agent has already been appointed by the Registered Warrantholders; failing such
 appointment by the Company, the retiring Warrant Agent or any Registered Warrantholder may apply to a judge of the Province of British
 Columbia on such notice as such judge may direct, for the appointment of a new warrant agent; but any new warrant agent so appointed
 by the Company or by the Court shall be subject to removal as aforesaid by the Registered Warrantholders. Any new warrant agent appointed
 under any provision of this Section 9.8 shall be an entity authorized to carry on the business of a trust company in the Province
 of British Columbia and, if required by the Applicable Laws for any other provinces, in such other provinces. On any such appointment
 the new warrant agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named
 herein as Warrant Agent hereunder.

(2) Upon
 the appointment of a successor warrant agent, the Company shall promptly notify the Registered Warrantholders thereof in the manner
 provided for in Section 10.2.

(3) Any
 Warrant Certificates Authenticated but not delivered by a predecessor Warrant Agent may be Authenticated by the successor Warrant
 Agent in the name of the successor Warrant Agent.

(4) Any
 company into which the Warrant Agent may be merged or consolidated or amalgamated, or any company resulting therefrom to which the
 Warrant Agent shall be a party, or any company succeeding to substantially the corporate trust business of the Warrant Agent shall
 be the suc **c** essor to the Warrant Agent hereunder without any further act on its part or any of the parties hereto, provided
 that such company would be eligible for appointment as successor Warrant Agent under Section 9.8(1).

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| | |
|:---|:---|
| **Section 9.9** | **Acceptance of Agency** |

---

The Warrant Agent hereby accepts the agency in this Indenture declared and provided for and agrees to perform the same upon the terms and conditions herein set forth.

---

| | |
|:---|:---|
| **Section 9.10** | **Warrant Agent Not to be Appointed Receiver.** |

---

The Warrant Agent and any person related to the Warrant Agent shall not be appointed a receiver, a receiver and manager or liquidator of all or any part of the assets or undertaking of the Company.

---

| | |
|:---|:---|
| **Section 9.11** | **Warrant Agent Not Required to Give Notice of Default.** |

---

The Warrant Agent shall not be bound to give any notice or do or take any act, action or proceeding by virtue of the powers conferred on it hereby unless and until it shall have been required so to do under the terms hereof; nor shall the Warrant Agent be required to take notice of any default hereunder, unless and until notified in writing of such default, which notice shall distinctly specify the default desired to be brought to the attention of the Warrant Agent and in the absence of any such notice the Warrant Agent may for all purposes of this Indenture conclusively assume that no default has been made in the observance or performance of any of the representations, warranties, covenants, agreements or conditions contained herein. Any such notice shall in no way limit any discretion herein given to the Warrant Agent to determine whether or not the Warrant Agent shall take action with respect to any default.

Section 9.12 Anti-Money Laundering.

(1) The
 Company hereby represents to the Warrant Agent that any account to be opened by, or interest to be held by the Warrant Agent in connection
 with this Agreement, for or to the credit of the Company, either (i) is not intended to be used by or on behalf of any third party;
 or (ii) is intended to be used by or on behalf of a third party, in which case the Company hereto agrees to complete and execute
 forthwith a declaration in the Warrant Agent's prescribed form as to the particulars of such third party.

(2) The
 Warrant Agent shall retain the right not to act and shall not be liable for refusing to act if, due to a lack of information or for
 any other reason whatsoever, the Warrant Agent, in its sole judgment, determines that such act might cause it to be in non-compliance
 with any applicable anti-money laundering, anti-terrorist or economic sanctions laws, regulation or guideline. Further, should the
 Warrant Agent, in its sole judgment, determine at any time that its acting under this Indenture has resulted in its being in non-compliance
 with any applicable anti-money laundering, anti-terrorist or economic sanctions laws, regulation or guideline, then it shall have
 the right to resign on ten days written notice to the other parties to this Indenture, provided (i) that the Warrant Agent's
 written notice shall describe the circumstances of such non-compliance; and (ii) that if such circumstances are rectified to the
 Warrant Agent's satisfaction within such ten day period, then such resignation shall not be effective.

---

| | |
|:---|:---|
| **Section 9.13** | **Compliance with Privacy Code.** |

---

The Company acknowledges that the Warrant Agent may, in the course of providing services hereunder, collect or receive financial and other personal information about the Company and/or their representatives, as individuals, or about other individuals related to the subject matter hereof, and use such information for the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to
 provide the services required under this Indenture and other services that may be requested from time to time;

(b) to
 help the Warrant Agent manage its servicing relationships with such individuals;

(c) to
 meet the Warrant Agent's legal and regulatory requirements; and

(d) if
 Social Insurance Numbers are collected by the Warrant Agent, to perform tax reporting and to assist in verification of an individual's
 identity for security purposes.

The Company acknowledges and agrees that the Warrant Agent may receive, collect, use and disclose personal information provided to it or acquired by it in the course of its acting as agent hereunder for the purposes described above and, generally, in the manner and on the terms described in its privacy code, which the Warrant Agent shall make available on its website, https://www.endeavortrust.com/, or upon request, including revisions thereto. The Warrant Agent may transfer personal information to other companies in or outside of Canada that provide data processing and storage or other support in order to facilitate the services it provides.

Further, the Company agrees that it shall not provide or cause to be provided to the Warrant Agent any personal information relating to an individual who is not a party to this Indenture unless the Company has assured itself that such individual understands and has consented to the aforementioned uses and disclosures.

---

| | |
|:---|:---|
| **Section 9.14** | **Securities Exchange Commission Certification.** |

---

The Company confirms that as at the date of execution of this Agreement it does not have a class of securities registered pursuant to Section 12 of the U.S. Exchange Act or have a reporting obligation pursuant to Section 15(d) of the U.S. Exchange Act

The Company covenants that in the event that (i) any class of its securities shall become registered pursuant to Section 12 of the U.S. Exchange Act or the Company shall incur a reporting obligation pursuant to Section 15(d) of the U.S. Exchange Act, or (ii) any such registration or reporting obligation shall be terminated by the Company in accordance with the U.S. Exchange Act, the Company shall promptly deliver to the Warrant Agent an officers' certificate (in a form provided by the Warrant Agent notifying the Warrant Agent of such registration or termination and such other information as the Warrant Agent may require at the time. The Company acknowledges that Warrant Agent is relying upon the foregoing representation and covenants in order to meet certain United States Securities and Exchange Commission ("**SEC**") obligations with respect to those clients who are filing with the SEC.

---

| | |
|:---|:---|
| **Section 9.15** | **Representations of the Warrant Agent** |

---

The Warrant Agent represents to the Company that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to
 the best of its knowledge at the time of the execution and delivery hereof, no material conflict of interest exists between its role
 as a fiduciary and as a custodian, bailee and agent hereunder and its role in any other capacity and if a material conflict of interest
 arises hereafter it will, within ninety (90) days after ascertaining that it has such material conflict of interest, either eliminate
 the conflict of interest or resign its duties and obligations hereunder. If any such material conflict of interest exists or hereafter
 shall exist, the validity and enforceability of this Indenture and the Warrants shall not be affected in any manner whatsoever by
 reason thereof; and

(b) it
 is registered to carry on business under Applicable Laws in the Province of British Columbia.

**Article 10<br> GENERAL**

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| | |
|:---|:---|
| **Section 10.1** | **Notice to the Company and the Warrant Agent.** |

---

---

| | | |
|:---|:---|:---|
| (1) | Unless herein otherwise expressly provided, any notice to be given hereunder to the Company or the Warrant Agent shall be deemed to be validly given if delivered, sent by registered letter, postage prepaid or if faxed or emailed: | Unless herein otherwise expressly provided, any notice to be given hereunder to the Company or the Warrant Agent shall be deemed to be validly given if delivered, sent by registered letter, postage prepaid or if faxed or emailed: |
| (a) | If to the Company: | If to the Company: |
|  | VERSES AI INC. | VERSES AI INC. |
|  | 205 - 810 Quayside Drive | 205 - 810 Quayside Drive |
|  | New Westminster, British Columbia | New Westminster, British Columbia |
|  | V3M 6B9 | V3M 6B9 |
|  | Email: | <u>kevin.w@verses.io</u> |
|  | Attention: | Kevin Wilson, Chief Financial Officer |
|  |  | and Secretary |
| (b) | If to the Warrant Agent: | If to the Warrant Agent: |
|  | ENDEAVOR TRUST CORPORATION | ENDEAVOR TRUST CORPORATION |
|  | Suite 702, 777 Hornby Street | Suite 702, 777 Hornby Street |
|  | Vancouver, British Columbia | Vancouver, British Columbia |
|  | V6Z 1S4 | V6Z 1S4 |
|  | Attention: | Securities Processing |
|  | Email: | admin@endeavortrust.com |
|  | and any such notice delivered in accordance with the foregoing shall be deemed to have been received and given on the date of delivery or, if mailed, on the fifth Business Day following the date of mailing such notice or, if faxed, on the next Business Day following the date of transmission. | and any such notice delivered in accordance with the foregoing shall be deemed to have been received and given on the date of delivery or, if mailed, on the fifth Business Day following the date of mailing such notice or, if faxed, on the next Business Day following the date of transmission. |
| (2) | The Company or the Warrant Agent, as the case may be, may from time to time notify the other in the manner provided in Section 10.1(1) of a change of address which, from the effective date of such notice and until changed by like notice, shall be the address of the Company or the Warrant Agent, as the case may be, for all purposes of this Indenture. | The Company or the Warrant Agent, as the case may be, may from time to time notify the other in the manner provided in Section 10.1(1) of a change of address which, from the effective date of such notice and until changed by like notice, shall be the address of the Company or the Warrant Agent, as the case may be, for all purposes of this Indenture. |
| (3) | If, by reason of a strike, lockout or other work stoppage, actual or threatened, involving postal employees, any notice to be given to the Warrant Agent or to the Company hereunder could reasonably be considered unlikely to reach its destination, such notice shall be valid and effective only if it is delivered to the named officer of the party to which it is addressed, as provided in Section 10.1(1), or given by facsimile or other means of prepaid, transmitted and recorded communication. | If, by reason of a strike, lockout or other work stoppage, actual or threatened, involving postal employees, any notice to be given to the Warrant Agent or to the Company hereunder could reasonably be considered unlikely to reach its destination, such notice shall be valid and effective only if it is delivered to the named officer of the party to which it is addressed, as provided in Section 10.1(1), or given by facsimile or other means of prepaid, transmitted and recorded communication. |

---

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| | |
|:---|:---|
| **Section 10.2** | **Notice to Registered Warrantholders.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless
 otherwise provided herein, notice to the Registered Warrantholders under the provisions of this Indenture shall be valid and effective
 if: (i) delivered or sent by ordinary prepaid post addressed to such holders at their post office addresses appearing on the register
 hereinbefore mentioned; (ii) sent by e-mail or functionally equivalent electronic means of communication to such holders at their
 e-mail addresses appearing on the register hereinbefore mentioned, as applicable, with charges (if any) prepaid; or (iii) given in
 a news release disseminated through a newswire service and filed on the Company's issuer profile on SEDAR at www.sedar.com.
 Such notice shall be deemed to have been effectively received and given on the date it is sent, published or, if mailed, on the third
 Business Day following the date of mailing such notice. In the event that Warrants are held in the name of the Depository, a copy
 of such notice shall also be sent by e-mail or functionally equivalent electronic means of communication to the Depository and shall
 be deemed received and given on the day it is so sent.

(b) If,
 by reason of a strike, lockout or other work stoppage, actual or threatened, involving postal employees, any notice to be given to
 the Registered Warrantholders hereunder could reasonably be considered unlikely to reach its destination, such notice may be given
 in a news release disseminated through a newswire service, filed on the Company's issuer profile on SEDAR at www.sedar.com,
 and posted on the Company's website; provided that in the case of a notice convening a meeting of the Warrantholders, the Warrant
 Agent may require such additional publications of that notice, in Vancouver, British Columbia or in other cities or both, as it may
 deem necessary for the reasonable notification of the holders of Warrants or to comply with any applicable requirement of law or
 any stock exchange. Any notice so given shall be deemed to have been given on the day on which it has been published in all of the
 cities in which publication was required.

---

| | |
|:---|:---|
| **Section 10.3** | **Ownership of Warrants.** |

---

The Company and the Warrant Agent may deem and treat the Registered Warrantholders as the absolute owner thereof for all purposes, and the Company and the Warrant Agent shall not be affected by any notice or knowledge to the contrary except where the Company or the Warrant Agent is required to take notice by statute or by order of a court of competent jurisdiction. The receipt of any such Registered Warrantholder of the Warrant Shares which may be acquired pursuant thereto shall be a good discharge to the Company and the Warrant Agent for the same and neither the Company nor the Warrant Agent shall be bound to inquire into the title of any such holder except where the Company or the Warrant Agent is required to take notice by statute or by order of a court of competent jurisdiction.

---

| | |
|:---|:---|
| **Section 10.4** | **Counterparts.** |

---

This Indenture may be executed in several counterparts, each of which when so executed shall be deemed to be an original and such counterparts together shall constitute one and the same instrument and notwithstanding their date of execution they shall be deemed to be dated as of the date hereof. Delivery of an executed copy of the Indenture by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Indenture as of the date hereof.

---

| | |
|:---|:---|
| **Section 10.5** | **Satisfaction and Discharge of Indenture.** |

---

---

| | |
|:---|:---|
| Upon the earlier of: | Upon the earlier of: |
| (a) | the date by which there shall have been delivered to the Warrant Agent for exercise or cancellation all Warrants theretofore Authenticated hereunder, in the case of Warrant Certificates (or such other instructions, in a form satisfactory to the Warrant Agent), in the case of Uncertificated Warrants, or by way of standard processing through the book entry system in the case of a CDS Global Warrant; and |
| (b) | the Expiry Date; |

---

and if all certificates or other entry on the register representing Warrant Shares required to be issued in compliance with the provisions hereof have been issued and delivered hereunder or to the Warrant Agent in accordance with such provisions, this Indenture shall cease to be of further effect and the Warrant Agent, on demand of and at the cost and expense of the Company and upon delivery to the Warrant Agent of a certificate of the Company stating that all conditions precedent to the satisfaction and discharge of this Indenture have been complied with, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture. Notwithstanding the foregoing, the indemnities provided to the Warrant Agent by the Company hereunder shall remain in full force and effect and survive the termination of this Indenture.

---

| | |
|:---|:---|
| **Section 10.6** | **Provisions of Indenture and Warrants for the Sole Benefit of Parties and Registered Warrantholders.** |

---

Nothing in this Indenture or in the Warrants, expressed or implied, shall give or be construed to give to any person other than the parties hereto and the Registered Warrantholders, as the case may be, any legal or equitable right, remedy or claim under this Indenture, or under any covenant or provision herein or therein contained, all such covenants and provisions being for the sole benefit of the parties hereto and the Registered Warrantholders.

---

| | |
|:---|:---|
| **Section 10.7** | **Class A Shares or Warrants Owned by the Company or its Subsidiaries - Certificate to be Provided.** |

---

For the purpose of disregarding any Warrants owned legally or beneficially by the Company in Section 7.16, the Company shall provide to the Warrant Agent, from time to time, a certificate of the Company setting forth as at the date of such certificate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 names (other than the name of the Company) of the Registered Warrantholders which, to the knowledge of the Company, are owned by
 or held for the account of the Company; and

(b) the
 number of Warrants owned legally or beneficially by the Company;

and the Warrant Agent, in making the computations shall be entitled to rely on such certificate without any additional evidence.

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| | |
|:---|:---|
| **Section 10.8** | **Severability** |

---

If, in any jurisdiction, any provision of this Indenture or its application to any party or circumstance is restricted, prohibited or unenforceable, such provision will, as to such jurisdiction, be ineffective only to the extent of such restriction, prohibition or unenforceability without invalidating the remaining provisions of this Indenture and without affecting the validity or enforceability of such provision in any other jurisdiction or without affecting its application to other parties or circumstances.

---

| | |
|:---|:---|
| **Section 10.9** | **Force Majeure** |

---

No party shall be liable to the other, or held in breach of this Indenture, if prevented, hindered, or delayed in the performance or observance of any provision contained herein by reason of act of God, riots, terrorism, acts of war, epidemics, governmental action or judicial order, earthquakes, or any other similar causes (including, but not limited to, mechanical, electronic or communication interruptions, disruptions or failures). Performance times under this Indenture shall be extended for a period of time equivalent to the time lost because of any delay that is excusable under this Section.

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| | |
|:---|:---|
| **Section 10.10** | **Assignment, Successors and Assigns** |

---

Neither of the parties hereto may assign its rights or interest under this Indenture, except as provided in Section 9.8 in the case of the Warrant Agent, or as provided in Section 8.2 in the case of the Company. Subject thereto, this Indenture shall enure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

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| | |
|:---|:---|
| **Section 10.11** | **Rights of Rescission and Withdrawal for Holders** |

---

Should a holder of Warrants exercise any legal, statutory, contractual or other right of withdrawal or rescission that may be available to it, and the holder's funds which were paid on exercise have already been released to the Company by the Warrant Agent, the Warrant Agent shall not be responsible for ensuring the exercise is cancelled and a refund is paid back to the holder. In such cases, the holder shall seek a refund directly from the Company and subsequently, the Company, upon surrender to the Company or the Warrant Agent of any underlying Warrant Shares or other securities that may have been issued, or such other procedure as agreed to by the parties hereto, shall instruct the Warrant Agent in writing, to cancel the exercise transaction and any such underlying Warrant Shares or other securities on the register, which may have already been issued upon the Warrant exercise. In the event that any payment is received from the Company by virtue of the holder being a shareholder for such Warrants that were subsequently rescinded, such payment must be returned to the Company by such holder. The Warrant Agent shall not be under any duty or obligation to take any steps to ensure or enforce the return of the funds pursuant to this section, nor shall the Warrant Agent be in any other way responsible in the event that any payment is not delivered or received pursuant to this section. Notwithstanding the foregoing, in the event that the Company provides the refund to the Warrant Agent for distribution to the holder, the Warrant Agent shall return such funds to the holder as soon as reasonably practicable, and in so doing, the Warrant Agent shall incur no liability with respect to the delivery or non-delivery of any such funds.

**IN WITNESS WHEREOF** the parties hereto have executed this Indenture under the hands of their proper officers in that behalf as of the date first written above.

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| | |
|:---|:---|
| **VERSES AI INC.** | **VERSES AI INC.** |
| By: | (signed) *"Gabriel Rene"* |
|  | Name: Gabriel Rene |
|  | Title: Chief Executive Officer and Director |
| By: | (signed) *"Kevin Wilson"* |
|  | Name: Kevin Wilson |
|  | Title: Chief Financial Officer and Secretary |

---

---

| | |
|:---|:---|
| **ENDEAVOR TRUST CORPORATION** | **ENDEAVOR TRUST CORPORATION** |
| By: | (signed) *"David Eppert"* |
|  | Name: David Eppert |
|  | Title: Chief Executive Officer |
| By: | (signed) *"Catherine Wang"* |
|  | Name: Catherine Wang |
|  | Title: Chief Financial Officer |

---

**Schedule "A"**

**Form of Warrant**

SUBJECT TO THE COMPANY'S ACCELERATION RIGHT, THE WARRANTS EVIDENCED HEREBY ARE EXERCISABLE AT OR BEFORE 4:00 P.M. (VANCOUVER TIME) ON JULY 6, 2026, AFTER WHICH TIME THE WARRANTS EVIDENCED HEREBY SHALL BE DEEMED TO BE VOID AND OF NO FURTHER FORCE OR EFFECT.

 

*All Warrants registered in the name of the Depository shall also include the following legend*:

**<u>(INSERT IF BEING ISSUED TO CDS)</u>**UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY SERVICES INC. ("**CDS**") TO VERSES AI INC. (THE "**ISSUER**") OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF IS REGISTERED IN THE NAME OF CDS & CO., OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS (AND ANY PAYMENT IS MADE TO CDS & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED HOLDER HEREOF, CDS & CO., HAS A PROPERTY INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE HEREIN AND IT IS A VIOLATION OF ITS RIGHTS FOR ANOTHER PERSON TO HOLD, TRANSFER OR DEAL WITH THIS CERTIFICATE.

 

*Warrants sold in the United States to U.S. Purchasers who are not Qualified Institutional Buyers that execute a U.S. QIB Letter shall also include the following legends*:

THIS WARRANT AND THE SECURITIES DELIVERABLE UPON EXERCISE HEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS, AND MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO VERSES AI INC. (THE "CORPORATION") (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, A LEGAL OPINION SATISFACTORY TO THE CORPORATION MUST FIRST BE PROVIDED TO ENDEAVOR TRUST CORPORATION TO THE EFFECT THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON UNLESS THE CLASS A SUBORDINATE VOTING SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LEGISLATION OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.

**WARRANT**

To acquire Class A Shares of

VERSES AI INC.

(incorporated pursuant to the laws of the Province of British Columbia)

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| | |
|:---|:---|
| Warrant | Certificate for |
| Certificate No. **[\*]** | Warrants, each entitling the holder to acquire one Class A Share (subject to adjustment as provided for in the Warrant Indenture (as defined below)<br>CUSIP: 92539Q125<br>ISIN: CA92539Q1256 |

---

**THIS IS TO CERTIFY THAT**, for value received,

(the "**Warrantholder**") is the registered holder of the number of share purchase warrants (the "**Warrants**") of VERSES AI INC. (the "**Company**") specified above, and is entitled, on exercise of these Warrants upon and subject to the terms and conditions set forth herein and in the Warrant Indenture, to purchase at any time prior to 4:00 p.m. (Vancouver time) (the "**Expiry Time**") on July 6, 2026 (the "**Expiry Date**"), subject to the Acceleration Right, one fully paid Class A Subordinate Voting Share of the Company as constituted on the date hereof (a "**Class A Share**") for each Warrant subject to adjustment in accordance with the terms of the Warrant Indenture.

Any capitalized term in this Warrant Certificate that is not otherwise defined herein, shall have the meaning ascribed thereto in the Warrant Indenture.

If, at any time prior to the Expiry Date, the volume-weighted average trading price of the Class A Shares on the NEO (or such other principal exchange or market where the Class A Shares are then listed or quoted for trading) exceeds $5.55, as adjusted in accordance with the Warrant Indenture, for a period of 10 consecutive trading days, the Company shall be entitled, at the option of the Company, to exercise the Acceleration Right by delivering an Acceleration Notice to the Registered Warrantholders, in accordance with the Warrant Indenture.

The right to purchase Class A Shares may only be exercised by the Warrantholder within the time set forth above by:

(a) duly completing and executing the exercise form (the "**Exercise Form**") attached hereto; and

(b) surrendering this warrant certificate (the "**Warrant Certificate**"), with the Exercise Form to the Warrant Agent at the principal office of the Warrant Agent, in the city of Vancouver, British Columbia, together with a certified cheque, bank draft or money order in the lawful money of Canada payable to or to the order of the Company in an amount equal to the purchase price of the Class A Shares so subscribed for.

The surrender of this Warrant Certificate, the duly completed Exercise Form and payment as provided above will be deemed to have been effected only on personal delivery thereof to, or if sent by mail or other means of transmission on actual receipt thereof by, the Warrant Agent at its principal office as set out above.

Subject to adjustment thereof in the events and in the manner set forth in the Warrant Indenture hereinafter referred to, the exercise price payable for each Class A Share upon the exercise of Warrants shall be $2.55 per Class A Share (the "**Exercise Price**").

Certificates for the Class A Shares subscribed for will be mailed to the persons specified in the Exercise Form at their respective addresses specified therein or, if so specified in the Exercise Form, delivered to such persons at the office where this Warrant Certificate is surrendered. If fewer Class A Shares are purchased than the number that can be purchased pursuant to this Warrant Certificate, the holder hereof will be entitled to receive without charge a new Warrant Certificate in respect of the balance of the Class A Shares not so purchased. No fractional Class A Shares will be issued upon exercise of any Warrant.

This Warrant Certificate evidences Warrants of the Company governed by the provisions of a warrant indenture (which indenture together with all other instruments supplemental or ancillary thereto is herein referred to as the "**Warrant Indenture**") dated as of July 6, 2023, between the Company and ENDEAVOR TRUST CORPORATION, as Warrant Agent, to which Warrant Indenture reference is hereby made for particulars of the rights of the holders of Warrants, the Company and the Warrant Agent in respect thereof and the terms and conditions on which the Warrants are issued and held, all to the same effect as if the provisions of the Warrant Indenture were herein set forth, to all of which the holder, by acceptance hereof, assents. The Company will furnish to the holder, on request and without charge, a copy of the Warrant Indenture.

On presentation at the principal office of the Warrant Agent as set out above, subject to the provisions of the Warrant Indenture and on compliance with the reasonable requirements of the Warrant Agent, one or more Warrant Certificates may be exchanged for one or more Warrant Certificates entitling the holder thereof to purchase in the aggregate an equal number of Class A Shares as are purchasable under the Warrant Certificate(s) so exchanged.

Neither the Warrants nor the Class A Shares issuable upon exercise hereof have been or will be registered under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"), or U.S. state securities laws. Other than by an original U.S. purchaser that purchased the Warrants directly from the Company, these Warrants may not be exercised in the United States or by or on behalf of, or for the account or benefit of, a U.S. Person or a person in the United States unless the Class A Shares issuable upon exercise of the Warrants being exercised have been registered under the U.S. Securities Act and the applicable state securities laws or an exemption from such registration requirements is available.

The Warrant Indenture contains provisions for the adjustment of the Exercise Price payable for each Class A Share upon the exercise of Warrants and the number of Class A Shares issuable upon the exercise of Warrants in the events and in the manner set forth therein.

The Warrant Indenture also contains provisions making binding on all holders of Warrants outstanding thereunder resolutions passed at meetings of holders of Warrants held in accordance with the provisions of the Warrant Indenture and instruments in writing signed by Warrantholders of Warrants entitled to purchase a specific majority of the Class A Shares that can be purchased pursuant to such Warrants.

Nothing contained in this Warrant Certificate, the Warrant Indenture or elsewhere shall be construed as conferring upon the holder hereof any right or interest whatsoever as a holder of Class A Shares or any other right or interest except as herein and in the Warrant Indenture expressly provided. In the event of any discrepancy between anything contained in this Warrant Certificate and the terms and conditions of the Warrant Indenture, the terms and conditions of the Warrant Indenture shall govern.

Warrants may only be transferred in compliance with the conditions of the Warrant Indenture on the register to be kept by the Warrant Agent in Vancouver, British Columbia, or such other registrar as the Company, with the approval of the Warrant Agent, may appoint at such other place or places, if any, as may be designated, upon surrender of this Warrant Certificate to the Warrant Agent or other registrar accompanied by a written instrument of transfer in form and execution satisfactory to the Warrant Agent or other registrar and upon compliance with the conditions prescribed in the Warrant Indenture and with such reasonable requirements as the Warrant Agent or other registrar may prescribe and upon the transfer being duly noted thereon by the Warrant Agent or other registrar. Time is of the essence hereof.

This Warrant Certificate will not be valid for any purpose until it has been countersigned by or on behalf of the Warrant Agent from time to time under the Warrant Indenture.

This Warrant Certificate may be signed by facsimile or other electronic means, which shall be deemed to be an original and shall be deemed to have the same legal effect and validity as a certificate bearing an original signature.

The parties hereto have declared that they have required that these presents and all other documents related hereto be in the English language. Les parties aux présentes déclarent qu'elles ont exigé que la présente convention, de même que tous les documents s'y rapportant, soient rédigés en anglais.

**IN WITNESS WHEREOF** the Company has caused this Warrant Certificate to be duly executed as of:

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| | | | |
|:---|:---|:---|:---|
| | | **VERSES AI INC.** | **VERSES AI INC.** |
| | | By: | |
| | |  | Authorized Signatory |
| Countersigned and Registered by: | Countersigned and Registered by: |  |  |
| **ENDEAVOR TRUST CORPORATION** | **ENDEAVOR TRUST CORPORATION** |  |  |
| By: |  |  |  |
|  | Authorized Signatory |  |  |

---

**FORM OF TRANSFER**

To: ENDEAVOR TRUST CORPORATION

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers to ___________________________________________________________________________________________(print name and address) the Warrants represented by this Warrants Certificate and hereby irrevocably constitutes and appoints ____________________ as its attorney with full power of substitution to transfer the said securities on the appropriate register of the Warrant Agent.

In the case of a warrant certificate that contains a U.S. restrictive legend, the undersigned hereby represents, warrants and certifies that (one (only) of the following must be checked):

☐ (A) the transfer is being made only to the Company;

☐ (B) the transfer is being made outside the United States in accordance with Rule 904 of Regulation S under the U.S. Securities Act, and in compliance with any applicable local securities laws and regulations and the holder has provided herewith the Declaration for Removal of Legend attached as Schedule "C" to the Warrant Indenture, or

☐ (C) the transfer is being made within the United States or to, or for the account or benefit of, U.S. Persons, in accordance with a transaction that does not require registration under the U.S. Securities Act or any applicable state securities laws and the undersigned has furnished to the Company and the Warrant Agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and the Warrant Agent to such effect.

In the case of a warrant certificate that does not contain a U.S. restrictive legend, if the proposed transfer is to, or for the account or benefit of a U.S. Person or to a person in the United States, the undersigned hereby represents, warrants and certifies that the Warrant does not contain a U.S. restrictive legend as a result of their delivery of a U.S. QIB Letter in the Offering, and that the transfer of the Warrants is being completed pursuant to an exemption from the registration requirements of the U.S. Securities Act and any applicable state securities laws, in which case the undersigned has furnished to the Company and the Warrant Agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and the Warrant Agent to such effect.

---

| | |
|:---|:---|
| £| If transfer is to a U.S. Person, check this box. |

---

DATED this ____ day of_________________, 20____.

---

| |
|:---|
| Signature of Transferor |
| Name of Transferor |

---

**REASON FOR TRANSFER – For US Residents only (where the individual(s) or Company receiving the securities is a US resident). Please select only one (see instructions below).**

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**☐** Gift** | &nbsp;&nbsp;**☐ Estate** | &nbsp;&nbsp;**☐ Private Sale** | &nbsp;&nbsp;**☐ Other (or no change in ownership)** |

---

Date of Event (Date of gift, death or sale): Value per Warrant on the date of event:

**☐ CAD <u>OR</u> ☐ USD**

**CERTAIN REQUIREMENTS RELATING TO TRANSFERS – READ CAREFULLY**

The signature(s) of the transferor(s) must correspond with the name(s) as written upon the face of this certificate(s), in every particular, without alteration or enlargement, or any change whatsoever. All securityholders or a legally authorized representative must sign this form. The signature(s) on this form must be guaranteed in accordance with the transfer agent's then current guidelines and requirements at the time of transfer. Notarized or witnessed signatures are not acceptable as guaranteed signatures. As at the time of closing, you may choose one of the following methods (although subject to change in accordance with industry practice and standards):

● **Canada and the USA:** A Medallion Signature Guarantee obtained from a member of an acceptable Medallion Signature Guarantee Program (STAMP, SEMP, NYSE, MSP). Many commercial banks, savings banks, credit unions, and all broker dealers participate in a Medallion Signature Guarantee Program. The Guarantor must affix a stamp bearing the actual words "Medallion Guaranteed", with the correct prefix covering the face value of the certificate.

● **Canada:** A Signature Guarantee obtained from an authorized officer of the Royal Bank of Canada, Scotia Bank or TD Canada Trust. The Guarantor must affix a stamp bearing the actual words "Signature Guaranteed", sign and print their full name and alpha numeric signing number. Signature Guarantees are not accepted from Treasury Branches, Credit Unions or Caisse Populaires unless they are members of a Medallion Signature Guarantee Program. For corporate holders, corporate signing resolutions, including certificate of incumbency, are also required to accompany the transfer, unless there is a "Signature & Authority to Sign Guarantee" Stamp affixed to the transfer (as opposed to a "Signature Guaranteed" Stamp) obtained from an authorized officer of the Royal Bank of Canada, Scotia Bank or TD Canada Trust or a Medallion Signature Guarantee with the correct prefix covering the face value of the certificate.

● **Outside North America:** For holders located outside North America, present the certificates(s) and/or document(s) that require a guarantee to a local financial institution that has a corresponding Canadian or American affiliate which is a member of an acceptable Medallion Signature Guarantee Program. The corresponding affiliate will arrange for the signature to be over-guaranteed.

**OR**

The signature(s) of the transferor(s) must correspond with the name(s) as written upon the face of this certificate(s), in every particular, without alteration or enlargement, or any change whatsoever. The signature(s) on this form must be guaranteed by an authorized officer of Royal Bank of Canada, Scotia Bank or TD Canada Trust whose sample signature(s) are on file with the transfer agent, or by a member of an acceptable Medallion Signature Guarantee Program (STAMP, SEMP, NYSE, MSP). Notarized or witnessed signatures are not acceptable as guaranteed signatures. The Guarantor must affix a stamp bearing the actual words: "SIGNATURE GUARANTEED", "MEDALLION GUARANTEED" OR "SIGNATURE & AUTHORITY TO SIGN GUARANTEE", all in accordance with the transfer agent's then current guidelines and requirements at the time of transfer. For corporate holders, corporate signing resolutions, including certificate of incumbency, will also be required to accompany the transfer unless there is a "SIGNATURE & AUTHORITY TO SIGN GUARANTEE" Stamp affixed to the Form of Transfer obtained from an authorized officer of the Royal Bank of Canada, Scotia Bank or TD Canada Trust or a "MEDALLION GUARANTEED" Stamp affixed to the Form of Transfer, with the correct prefix covering the face value of the certificate.

**<u>REASON FOR TRANSFER – FOR US RESIDENTS ONLY</u>**

Consistent with US IRS regulations, ENDEAVOR TRUST CORPORATION is required to request cost basis information from US securityholders. Please indicate the reason for requesting the transfer as well as the date of event relating to the reason. The event date is not the day in which the transfer is finalized, but rather the date of the event which led to the transfer request (i.e. date of gift, date of death of the securityholder, or the date the private sale took place).

**SCHEDULE "B"**

**EXERCISE FORM**

---

| | |
|:---|:---|
| **TO:** | **VERSES AI INC.** |
| **AND TO:** | ENDEAVOR TRUST CORPORATION |
|  | 777 Hornby St. Ste 702 |
|  | Vancouver, British Columbia |
|  | V6Z 1S4 |

---

The undersigned holder of the Warrants evidenced by this Warrant Certificate hereby exercises the right to acquire ____________ (A) Class A Shares of VERSES AI INC.

---

| | |
|:---|:---|
| Exercise Price Payable: |  |
|  | ((A) multiplied by $2.55, subject to adjustment) |

---

The undersigned hereby exercises the right of such holder to be issued, and hereby subscribes for, Class A Shares that are issuable pursuant to the exercise of such Warrants on the terms specified in such Warrant Certificate and in the Warrant Indenture dated July 6, 2023, between Verses AI Inc. and Endeavor Trust Corporation (the "Warrant Indenture").

The undersigned hereby acknowledges that the undersigned is aware that the Class A Shares received on exercise may be subject to restrictions on resale under applicable securities laws.

**Any capitalized term in this Exercise Form that is not otherwise defined herein, shall have the meaning ascribed thereto in the Warrant Indenture.**

The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):

☐ (A) the undersigned holder at the time of exercise of the Warrants (i) is not in the United States, (ii) is not a U.S. Person , (iii) is not exercising the Warrants for the account or benefit of a U.S. Person or a person in the United States, (iv) did not execute or deliver this exercise form in the United States and (v) delivery of the underlying Class A Shares will not be to an address in the United States; OR

☐ (B) the undersigned holder (a) is the original U.S. purchaser who purchased the Warrants pursuant to the applicable private placement offering who delivered either a U.S. QIB Letter or a U.S. Accredited Investor Certificate in connection with its purchase of the Units or the Special Warrants, as applicable, (b) is exercising the Warrants for its own account or for the account of a disclosed principal that was named in the subscription documents pursuant to which it acquired such Warrants, and (c) is, and such disclosed principal, if any, is an "accredited investor" as defined in Rule 501(a) of Regulation D under the U.S. Securities Act of 1933, as amended (the "**U.S. Securities Act**") at the time of exercise of these Warrants and the representations and warranties of the holder made in the either the U.S. QIB Letter or the U.S. Accredited Investor Certificate remain true and correct as of the date of exercise of these Warrants; OR

☐ (C) if the undersigned holder is (i) a holder in the United States, (ii) a U.S. Person, (iii) a person exercising for the account or benefit of a U.S. Person, (iv) executing or delivering this exercise form in the United States or (v) requesting delivery of the underlying Class A Shares in the United States, the undersigned holder (a) represents that it currently qualifies as an "accredited investor" as defined in Rule 501(a) of Regulation D under the U.S. Securities Act and has delivered to the Company and the Company's transfer agent a completed and executed U.S. Purchaser Letter in substantially the form attached to the Warrant Indenture as Schedule "D" or (b) has delivered to the Company and the Company's transfer agent an opinion of counsel (which will not be sufficient unless it is in form and substance reasonably satisfactory to the Company and Warrant Agent) or such other evidence reasonably satisfactory to the Company and Warrant Agent to the effect that with respect to the Class A Shares to be delivered upon exercise of the Warrants, the issuance of such securities has been registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration requirements is available.

It is understood that the Company and ENDEAVOR TRUST CORPORATION may require evidence to verify the foregoing representations.

---

| | |
|:---|:---|
| Notes: | (1) Certificates will not be registered or delivered to an address in the United States unless Box B or C above is checked. |
|  | (2) If Box C above is checked, holders are encouraged to consult with the Company and the Warrant Agent in advance to determine that the legal opinion tendered in connection with the exercise will be satisfactory in form and substance to the Company and the Warrant Agent. |
|  | (3) Unless Box A above is checked, the Class A shares delivered will be "restricted securities" under the U.S. Securities Act, will be subject to transfer restrictions under the U.S. Securities Act and any applicable securities laws of any state of the United States and unless Box B above is checked and the holder was the Original QIB Purchaser who executed the U.S. QIB Letter, the Class A Shares delivered will bear a legend to such effect. |

---

"United States" and "U.S. Person" are as defined in Rule 902 of Regulation S under the U.S. Securities Act.

The undersigned hereby irrevocably directs that the said Class A Shares be issued, registered and delivered as follows:

---

| | | |
|:---|:---|:---|
| **Name(s) in Full and Social<br> Insurance Number(s)<br> (if applicable)** | **Address(es)** | **Number of Class A<br> Shares** |

---

---

| | | |
|:---|:---|:---|
| **Name(s) in Full and Social<br> Insurance Number(s)<br> (if applicable)** | **Address(es)** | **Number of Class A<br> Shares** |

---

Please print full name in which certificates representing the Class A Shares are to be issued. If any Class A Shares are to be issued to a person or persons other than the registered holder, the registered holder must pay to the Warrant Agent all eligible transfer taxes or other government charges, if any, and the Form of Transfer must be duly executed.

Once completed and executed, this Exercise Form must be mailed or delivered to **ENDEAVOR TRUST CORPORATION, c/o Corporate Trust**.

**DATED** this ____day of _____, 20__.

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| |
|:---|
| (Signature of Warrantholder, to be the same as |
| appears on the face of this Warrant Certificate) |
| Name of Registered Warrantholder |

---

**☐** Please check if the certificates representing the Class A Shares are to be delivered at the office where this Warrant Certificate is surrendered, failing which such certificates will be mailed to the address set out above. Certificates will be delivered or mailed as soon as practicable after the surrender of this Warrant Certificate to the Warrant Agent.

**SCHEDULE "C"**

**FORM OF DECLARATION FOR REMOVAL OF LEGEND**

TO: VERSES AI INC. (the "Company") <br>TO: ENDEAVOR TRUST CORPORATION

as registrar and transfer agent for the Warrants and Class A Shares issuable upon exercise of the Warrants of the Company.

The undersigned (a) acknowledges that the sale of ____________ Class A Subordinated Voting Shares of the Company to which this declaration relates, represented by certificate or book entry account number _______________, is being made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and (b) certifies that (1) the undersigned is not (i) an "affiliate" of the Company as that term is defined in the 1933 Act, (ii) a "distributor" (as defined in Regulation S under the U.S. Securities Act), (iii) an affiliate of a distributor or (iv) acting on behalf of any of the persons set forth in (i), (ii) or (iii) above; (2) the offer of such securities was not made to a person in the United States and either (A) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believed that the buyer was outside the United States, or (B) the transaction was executed in, on or through the facilities of a designated offshore securities market as defined in Regulation S under the U.S. Securities Act and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States, (3) neither the seller nor any affiliate of the seller nor any person acting on any of their behalf has engaged or will engage in any directed selling efforts in the United States in connection with the offer and sale of such securities, (4) the sale is bona fide and not for the purpose of "washing off" the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144(a)(3) under the U.S. Securities Act), (5) the seller does not intend to replace the securities sold in reliance on Rule 904 of the U.S. Securities Act with fungible unrestricted securities and (6) the contemplated sale is not a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the U.S. Securities Act. Terms used herein have the meanings given to them by Regulation S under the U.S. Securities Act.

**DATED** this ____day of _____, 20__.

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| |
|:---|
| **X** |
| Signature of individual (if Seller is an individual) |
| **X** |
| Authorized signatory (if Seller is not an individual) |
| Name of Seller (please print) |
| Name of authorized signatory (please print) |
| Official capacity of authorized signatory (please print) |

---

**Affirmation by Seller's Broker-Dealer**

We have read the declaration for removal of legend of our customer, _________________________ (the "Seller") dated _______________________, with regard to the sale of the securities pursuant to Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") (the "sale"), for such Seller's account, of the _________________ represented by certificate or book entry account number ______________ of the Company described therein (the "securities"), and we hereby affirm that, to the best of our knowledge and belief, the facts set forth therein are full, true and correct and on behalf of ourselves we certify and affirm that (A) no offer to sell the securities was made to a person in the United States and we have no knowledge that the transaction had been prearranged with a buyer in the United States, (B) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the TSX Venture Exchange, the Canadian Securities Exchange, the NEO Exchange or other designated offshore securities market, (C) neither we, nor any person acting on our behalf, engaged in any directed selling efforts in connection with the offer and sale of such securities and (D) we have done no more than execute the order or orders to sell the securities as agent for the Seller and will receive no more than the usual and customary broker's commission that would be received by a person executing such transaction as agent.

Terms used herein have the meanings given to them by Regulation S under the U.S. Securities Act.

Dated: _____________, 20__.

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| |
|:---|
| Print Name of Firm |
| By: |
| Print Name and Title |

---

**SCHEDULE "D"**

**FORM OF U.S. PURCHASER CERTIFICATION UPON EXERCISE OF WARRANTS**

VERSES AI INC.<br> 205 - 810 Quayside Drive<br> New Westminster, British Columbia<br> V3M 6B9

**Attention: Chief Executive Officer**

- and to -

ENDEAVOR TRUST CORPORATION.

as Warrant Agent

Dear Sirs:

We are delivering this letter in connection with the purchase of Class A Subordinate Voting Shares (the "Class A Shares") of VERSES AI INC., a Company incorporated under the laws of the Province of British Columbia (the "Company") upon the exercise of warrants of the Company ("Warrants"), issued under the warrant indenture dated as of July 6, 2023, between the Company and Endeavor Trust Corporation (the "Warrant Indenture").

Any capitalized term in this U.S. Purchaser Certification that is not otherwise defined herein, shall have the meaning ascribed thereto in the Warrant Indenture.

We hereby confirm that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) we
 are an "accredited investor" (satisfying one or more of the criteria set forth in Rule 501 (a) of Regulation D under
 the United States Securities Act of 1933 (the "U.S. Securities Act")) ;

(b) we
 are purchasing the Class A Shares for our own account;

(c) we
 have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of purchasing
 the Class A Shares;

(d) we
 are not acquiring the Class A Shares with a view to distribution thereof or with any present intention of offering or selling any
 of the Class A Shares, except (A) to the Company, (B) outside the United States in accordance with Rule 904 under the U.S. Securities
 Act or (C) inside the United States in accordance with Rule 144 under the U.S. Securities Act, if available, and in compliance with
 applicable state securities laws;

(e) we
 acknowledge that the financial statements of the Company have been prepared in accordance with International Financial Reporting
 Standards, which differ in some respects from United States generally accepted accounting principles, and thus may not be comparable
 to financial statements of United States companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) we
 acknowledge that the Company is not obligated to remain qualified as a "foreign issuer" as defined in the U.S. Securities
 Act;

(g) we
 understand that (i) the Company may be deemed to be an issuer that is, or that has been at any time previously, an issuer with no
 or nominal operations and no or nominal assets other than cash and cash equivalents (a "Shell Company"), (ii) if the
 Company is deemed to be, or to have been at any time previously, a Shell Company, Rule 144 under the U.S. Securities Act may not
 be available for resales of the Class A Shares and (iii) the Company is not obligated to make Rule 144 under the U.S. Securities
 Act available for resales of the Class A Shares.

(h) we
 acknowledge that there may be material tax consequences to the undersigned of an acquisition or disposition of the Class A Shares;

(i) funds
 representing the exercise price for the Class A Shares which will be advanced by the undersigned to the Company upon exercise of
 the Warrant will not represent proceeds of crime for the purposes of the Uniting and Strengthening America by Providing Appropriate
 Tools Required to Intercept and Obstruct Terrorism Act (the "PATRIOT Act"), and the undersigned acknowledges that the
 Company may in the future be required by law to disclose the undersigned's name and other information relating to this exercise
 form and the undersigned's subscription hereunder, on a confidential basis, pursuant to the PATRIOT Act. No portion of the
 exercise price to be provided by the undersigned (i) has been or will be derived from or related to any activity that is deemed criminal
 under the laws of the United States of America, or any other jurisdiction, or (ii) is being tendered on behalf of a person or entity
 who has not been identified to or by the undersigned, and it shall promptly notify the Company if the undersigned discovers that
 any of such representations ceases to be true and provide the Company with appropriate information in connection therewith;

(j) we
 acknowledge that we have had access to such financial and other information as we deem necessary in connection with our decision
 to exercise the Warrants and purchase the Class A Shares; and

(k) we
 acknowledge that we are not purchasing the Class A Shares as a result of any "general solicitation" or "general
 advertising" (as those terms are used in Regulation D under the U.S. Securities Act), including advertisements, articles, notices
 or other communications published in any newspaper, magazine or similar media or broadcast over radio, television, the internet,
 or any seminar or meeting whose attendees have been invited by general solicitation or general advertising.

We understand that the Class A Shares are being offered in a transaction not involving any public offering within the United States within the meaning of the U.S. Securities Act and that the Class A Shares have not been and will not be registered under the U.S. Securities Act. We further understand that any Class A Shares acquired by us will be in the form of definitive physical certificates and that such certificates will bear a legend reflecting the fact that we will not offer, sell or otherwise transfer any of the Class A Shares, directly or indirectly, unless (i) the sale is to the Company; (ii) the sale is made outside the United States in compliance with the requirements of Rule 904 of Regulation S under the U.S. Securities Act; or (iii) the sale is made in the United States (A) pursuant to an exemption from registration under the U.S. Securities Act provided by Rule 144 thereunder, if available, and in compliance with any applicable state securities laws or (B) pursuant to a transaction that does not require registration under the U.S. Securities Act or applicable state securities laws, and in the case of each of (A) and (B), the purchaser meets the definition of "Qualified Purchaser" (as defined in Section 2(a) (51) of, and related rules under, the United States Investment Company Act of 1940, as amended) and the seller has furnished to the Company an opinion to such effect from counsel of recognized standing reasonably satisfactory to the Company prior to such offer, sale or transfer.

We acknowledge that you will rely upon our confirmations, acknowledgements and agreements set forth herein, and we agree to notify you promptly in writing if any of our representations or warranties herein ceases to be accurate or complete.

**DATED** this ____day of _____, 20__.

---

| |
|:---|
| (Name of U.S. Purchaser) |
| By: |
| Name: |
| Title: |

---

## Exhibit 4.8

**Exhibit 4.8**

**VERSES AI INC.**

- and -

**ENDEAVOR TRUST CORPORATION**

**WARRANT INDENTURE**

July 9, 2025

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| ARTICLE 1 INTERPRETATION | ARTICLE 1 INTERPRETATION | 6.0 |
| 1.1 | Definitions. | 6.0 |
| 1.2 | Words Importing the Singular | 11.0 |
| 1.3 | Interpretation not Affected by Headings | 11.0 |
| 1.4 | Day not a Business Day | 11.0 |
| 1.5 | Time of the Essence | 11.0 |
| 1.6 | Governing Law | 11.0 |
| 1.7 | Meaning of "outstanding" for Certain Purposes | 11.0 |
| 1.8 | Currency | 12.0 |
| 1.9 | Termination | 12.0 |
| 1.10 | Calculations. | 12.0 |
| ARTICLE 2 APPOINTMENT OF WARRANT AGENT | ARTICLE 2 APPOINTMENT OF WARRANT AGENT | 12.0 |
| 2.1 | Appointment of Warrant Agent | 12.0 |
| ARTICLE 3 ISSUE OF WARRANTS | ARTICLE 3 ISSUE OF WARRANTS | 12.0 |
| 3.1 | Issue of Warrants | 12.0 |
| 3.2 | Form and Terms of Warrants | 13.0 |
| 3.3 | Signing of Warrant Certificates | 14.0 |
| 3.4 | Authentication or Certification by the Warrant Agent | 14.0 |
| 3.5 | Warrantholder not a Shareholder, etc | 15.0 |
| 3.6 | Warrants to Rank Pari Passu | 15.0 |
| 3.7 | Issue in Substitution for Lost Warrant Certificates | 15.0 |
| 3.8 | Warrant Agency, Registration and Transfer of Warrants | 16.0 |
| 3.9 | Registers Open for Inspection | 17.0 |
| 3.10 | Exchange of Warrant Certificates | 17.0 |
| 3.11 | Ownership of Warrants | 17.0 |
| 3.12 | Book-Based System Warrants | 18.0 |
| 3.13 | Adjustment of Number of Subordinate Voting Shares and Exercise Price | 20.0 |
| 3.14 | Rules Regarding Calculation of Adjustment of Exchange Basis For the purposes of Section 3.13: | 25.0 |
| 3.15 | Postponement of Subscription | 26.0 |
| 3.16 | Notice of Adjustment | 27.0 |
| 3.17 | No Action after Notice | 27.0 |
| 3.18 | Optional Purchases by the Company | 28.0 |
| 3.19 | Protection of Warrant Agent | 28.0 |
| ARTICLE 4 EXERCISE OF WARRANTS | ARTICLE 4 EXERCISE OF WARRANTS | 28.0 |
| 4.1 | Method of Exercise of Warrants | 28.0 |
| 4.2 | Cashless Exercise | 30.0 |

---

---

| | | |
|:---|:---|:---|
| 4.3 | No Fractional Warrant Shares | 31.0 |
| 4.4 | Effect of Exercise of Warrants | 31.0 |
| 4.5 | Cancellation of Warrants | 33.0 |
| 4.6 | Subscription for less than Entitlement | 33.0 |
| 4.7 | Expiration of Warrant | 33.0 |
| 4.8 | U.S. Securities Law Matters | 33.0 |
| 4.9 | Securities Restrictions | 34.0 |
| ARTICLE 5 COVENANTS | ARTICLE 5 COVENANTS | 35.0 |
| 5.1 | General Covenants of the Company | 35.0 |
| 5.2 | Securities Qualification Requirements | 36.0 |
| 5.3 | Warrant Agent's Remuneration and Expenses | 37.0 |
| 5.4 | Performance of Covenants by Warrant Agent | 37.0 |
| ARTICLE 6 ENFORCEMENT | ARTICLE 6 ENFORCEMENT | 37.0 |
| 6.1 | Suits by Warrantholders | 37.0 |
| 6.2 | Suits by the Company | 37.0 |
| 6.3 | Limitation of Liability | 37.0 |
| ARTICLE 7 MEETINGS OF WARRANTHOLDERS | ARTICLE 7 MEETINGS OF WARRANTHOLDERS | 38.0 |
| 7.1 | Right to Convene Meetings | 38.0 |
| 7.2 | Notice | 38.0 |
| 7.3 | Chairman | 38.0 |
| 7.4 | Quorum | 38.0 |
| 7.5 | Power to Adjourn | 39.0 |
| 7.6 | Show of Hands | 39.0 |
| 7.7 | Poll and Voting | 39.0 |
| 7.8 | Regulations | 39.0 |
| 7.9 | Company, Warrant Agent and Counsel may be Represented | 40.0 |
| 7.10 | Powers Exercisable by Extraordinary Resolution | 40.0 |
| 7.11 | Meaning of "Extraordinary Resolution" | 41.0 |
| 7.12 | Powers Cumulative | 42.0 |
| 7.13 | Minutes | 42.0 |
| 7.14 | Instruments in Writing | 42.0 |
| 7.15 | Binding Effect of Resolutions | 43.0 |
| 7.16 | Holdings by the Company or Subsidiaries of the Company Disregarded | 43.0 |
| ARTICLE 8 SUPPLEMENTAL INDENTURES AND SUCCESSOR COMPANIES | ARTICLE 8 SUPPLEMENTAL INDENTURES AND SUCCESSOR COMPANIES | 43.0 |
| 8.1 | Provision for Supplemental Indentures for Certain Purposes | 43.0 |
| 8.2 | Successor Companies | 44.0 |

---

---

| | | |
|:---|:---|:---|
| ARTICLE 9 CONCERNING THE WARRANT AGENT | ARTICLE 9 CONCERNING THE WARRANT AGENT | 45.0 |
| 9.1 | Indenture Legislation | 45.0 |
| 9.2 | Rights and Duties of Warrant Agent | 45.0 |
| 9.3 | Evidence, Experts and Advisers | 46.0 |
| 9.4 | Securities, Documents and Monies Held by Warrant Agent | 48.0 |
| 9.5 | Actions by Warrant Agent to Protect Interests | 48.0 |
| 9.6 | Warrant Agent not Required to Give Security | 48.0 |
| 9.7 | Protection of Warrant Agent | 49.0 |
| 9.8 | Replacement of Warrant Agent | 50.0 |
| 9.9 | Acceptance of Duties and Obligations | 51.0 |
| 9.10 | Warrant Agent not to be Appointed Receiver | 51.0 |
| 9.11 | Authorization to Carry on Business | 51.0 |
| 9.12 | Securities Exchange Commission Certification | 51.0 |
| ARTICLE 10 GENERAL | ARTICLE 10 GENERAL | 51.0 |
| 10.1 | Notice to the Company and the Warrant Agent | 51.0 |
| 10.2 | Notice to the Warrantholders | 53.0 |
| 10.3 | Privacy | 53.0 |
| 10.4 | Third Party Interests | 54.0 |
| 10.5 | Discretion of Directors | 54.0 |
| 10.6 | Satisfaction and Discharge of Indenture | 54.0 |
| 10.7 | Provisions of Indenture and Warrants for the Sole Benefit of Parties and Warrantholders | 54.0 |
| 10.8 | Ownership of Warrants | 55.0 |
| 10.9 | Indenture to Prevail | 55.0 |
| 10.10 | Assignment | 55.0 |
| 10.11 | Counterparts and Formal Date | 55.0 |
| 10.12 | Force Majeure | 55.0 |
| 10.13 | Severability | 55.0 |
| 10.14 | Rights of Rescission and Withdrawal for Holders | 55.0 |

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**<u>WARRANT INDENTURE</u>**

**THIS WARRANT INDENTURE** dated as of July 9, 2025

B E T W E E N:

**VERSES AI INC.**

a corporation incorporated under the laws of the Province of British Columbia (hereinafter called the "**Company**")

A N D

**ENDEAVOR TRUST CORPORATION**

a trust company authorized in British Columbia, Alberta, Manitoba and Saskatchewan and incorporated under the laws of British Columbia, with its head office in the City of Vancouver, in the Province of British Columbia (hereinafter called the "**Warrant Agent**")

<u>RECITALS</u>

**WHEREAS:**

A. The
 Company is proposing to issue a maximum of 503,882 Warrants in accordance with the terms
 of this Indenture;

B. Pursuant
 to this Indenture, each Warrant shall, subject to adjustments, entitle the holder thereof
 to acquire the number of Class A Subordinate Voting share (each, a "**Warrant Share** ")
 upon a "cashless exercise" prior to the Time of Expiry (as defined below) upon
 the terms and conditions herein set forth;

C. For
 such purpose the Company deems it necessary to create and issue Warrants and Warrant Certificates
 to be constituted and issued in the manner hereinafter set forth;

D. The
 Company is duly authorized to create and issue the Warrants to be issued as herein provided;

E. All
 things necessary have been done and performed by the Company to make the Warrants, when Authenticated
 or certified by the Warrant Agent and issued as provided in this Indenture, legal, valid
 and binding obligations of the Company that are entitled to the benefits of and subject to
 the terms of this Indenture;

F. The
 foregoing recitals are made as statements of fact by the Company and not by the Warrant Agent;

G. The
 Warrant Agent has agreed to enter into this Indenture and to hold all rights, interests and
 benefits contained herein for and on behalf of those persons who become holders of Warrants
 issued pursuant to this Indenture from time to time;

**NOW THEREFORE THIS INDENTURE WITNESSES** that for good and valuable consideration mutually given and received, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed and declared as follows:

**ARTICLE 1** 

**INTERPRETATION**

1.1 <u>Definitions</u> 

In this Indenture, unless there is something in the subject matter or context inconsistent therewith: "**Alternate Consideration**" has the meaning ascribed to that term in Section 3.13(4);

"**Applicable Legislation**" means the provisions of the statutes of Canada and its provinces and the regulations under those statutes relating to warrant indentures and/or the rights, duties or obligations of issuers and warrant agents under warrant indentures as are from time to time in force and applicable to this Indenture;

"**Approved Bank**" has the meaning ascribed to that term in Section 9.4;

"**Attribution Parties**" has the meaning ascribed to that term in Section 4.9;

"**Authenticated**" means with respect to the issuance of an Uncertificated Warrant, that all Internal Procedures required to be completed by the Warrant Agent have been so completed such that the particulars of such Uncertificated Warrant are entered in the register of Warrantholders, and "**Authenticate**", "**Authenticating**" and "**Authentication**" have the appropriate correlative meanings;

"**Beneficial Owner**" means a person that has a beneficial interest in a Warrant; "**Beneficial Ownership Limitation**" has the meaning ascribed to that term in Section 4.9;

"**Black Scholes Value**" has the meaning ascribed to that term in Section 3.13(4);

"**Bloomberg**" has the meaning ascribed to that term in Section 3.13(4);

"**Book-Based System**" means the book-based securities system administered by a Depository in accordance with its operating rules and procedures in force from time to time;

"**Business Day**" means a day that is not a Saturday, Sunday, or a day on which banks are closed or which is a civic or statutory holiday in the City of Vancouver, British Columbia, and shall be a day on which the Cboe Canada is open for trading;

"**Buy-In**" has the meaning ascribed to that term in subsection 4.4(5);

"**Cboe Canada**" means Cboe Canada Inc.;

"**CDS**" means CDS Clearing and Depository Services Inc. and its successors in interest;

"**CDS Participant**" means a person recognized by CDS as a participant;

"**Company**" means Verses AI Inc., a corporation incorporated under the laws of the Province of British Columbia, and its lawful successors from time to time;

"**Company's Auditors**" means the chartered (professional) accountant or firm of chartered (professional) accountants duly appointed as auditor or auditors of the Company from time to time;

"**Confirmation**" means that the Depository shall deliver to the Warrant Agent confirmation of its intention to exercise Warrants in a manner acceptable to the Warrant Agent, including by electronic means through the Book-Based System;

"**counsel**" means a barrister and solicitor or lawyer or a firm of barristers and solicitors or lawyers (who may be counsel to the Company), in both cases acceptable to the Warrant Agent;

"**Current Market Price**" means, at any date, the volume weighted average price per share at which the Subordinate Voting Shares have traded:

a. on
 the Cboe Canada;

b. if
 the Subordinate Voting Shares are not listed on the Cboe Canada, on any stock exchange upon
 which the Subordinate Voting Shares are listed as may be selected for this purpose by the
 board of directors of the Company, acting reasonably; or

c. if
 the Subordinate Voting Shares are not listed on any stock exchange, on any over-the-counter
 market on which the Subordinate Shares are trading, as may be selected for this purpose by
 the board of directors of the Company, acting reasonably;

during the five (5) consecutive trading days immediately before such date and the weighted average price shall be determined by dividing the aggregate sale price of all Subordinate Voting Shares sold in board lots on the exchange or market, as the case may be, during the five (5) consecutive trading days by the number of Subordinate Voting Shares sold or, if not traded on any recognized exchange or market, as determined by the directors of the Company, acting reasonably; provided that, if such trading price is in a currency other than United States dollars, the volume weighted average price in such currency will be converted into United States dollars using the applicable daily exchange rate(s) published by the Bank of Canada on the last Trading Day during the applicable measurement period or, if no such rate was published on such date, the next preceding daily exchange rate(s) published by the Bank of Canada; and provided, further, that if the Bank of Canada no longer publishes such rates, the volume weighted average price will be converted into United States dollars using the then applicable exchange rate as determined by the directors of the Company;

"**Depository**" means CDS or such other persons designated in writing by the Company to act as depository in respect of the Warrants;

"**Depository Participant**" means a CDS Participant;

"**director**" means a member of the board of directors of the Company for the time being, and unless otherwise specified herein, reference to "**action by the board of directors**" means action by the board of directors of the Company as a board or, whenever duly empowered, action by a committee of the board;

"**Equity Shares**" means the Subordinate Voting Shares and any shares of any other class or series of the Company which may from time to time be authorized for issue if by their terms such shares confer on the holders thereof the right to participate in the distribution of assets upon the voluntary or involuntary liquidation, dissolution or winding up of the Company beyond a fixed sum or a fixed sum plus accrued dividends;

"**Exchange Basis**" means, at any time, the number of Warrant Shares or other classes of shares or securities which a Warrantholder is entitled to receive upon the exercise of the rights attached to the Warrants pursuant to the terms of this Indenture, as the number may be adjusted pursuant to Section 3.13 hereof, such number being equal to one Warrant Share per Warrant as of the date hereof;

"**Exercise Date**" with respect to any Warrant means the Business Day on which such Warrant is validly exercised or deemed to be validly exercised in accordance with the provisions of ARTICLE 4 hereof;

"**Exercise Price**" means C$11.50 for each Warrant Share, subject to adjustment in accordance with the provisions of this Indenture;

"**extraordinary resolution**" has the meaning ascribed to that term in Sections 7.11 and 7.14; "**Fundamental Transaction**" has the meaning ascribed to that term in subsection 3.13(4);

"**Governmental Authority**" or "**Governmental Authorities**" means any of the governments of Canada, the United States of America, any other nation or any political subdivision thereof, whether provincial, state, territorial or local, and any agency, authority, instrumentality, regulatory body, court, central bank, fiscal or monetary authority or other authority regulating financial institutions, and any other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government;

"**Internal Procedures**" means in respect of the making of any one or more entries to, changes in or deletions of any one or more entries in the register of Warrantholders at any time (including without limitation, original issuance or registration of transfer of ownership) the minimum number of the Warrant Agent's internal procedures customary at such time for the entry, change or deletion made to be complete under the operating procedures followed at the time by the Warrant Agent;

"**NCI**" has the meaning ascribed to that term in subsection 3.12(1);

"**person**" means an individual, a corporation, a partnership, a syndicate, a trustee or any unincorporated organization and words importing persons that are intended to have a similarly extended meaning;

"**Rights Offering**" has the meaning ascribed to that term in subsection 3.12(2);

"**Rights Offering Price**" has the meaning ascribed to that term in subsection 3.14(9);

"**SEC**" means the United States Securities and Exchange Commission;

"**Securities Laws**" means, collectively, the applicable securities laws of each of the provinces and territories of Canada, the United States and each of the states of the United States, as applicable, and the respective regulations made and forms prescribed thereunder together with all applicable published rules, policy statements, notices and blanket orders and rulings of the securities commissions or similar regulatory authorities in each of the provinces and territories of Canada;

"**Share Delivery Date**" has the meaning ascribed to that term in subsection 4.4(3);

"**shareholder**" means an owner of record of one or more Subordinate Voting Shares or shares of any other class or series of the Company;

"**Special Distribution**" has the meaning ascribed to that term in subsection 3.13(3);

"**Subordinate Voting Share Reorganization**" has the meaning ascribed to that term in subsection 3.13(1);

"**Subordinate Voting Shares**" means, subject to Section 3.13, fully paid Class A Subordinate Voting Shares in the capital of the Company as presently constituted;

"**Subsidiary**" means a corporation, a majority of the outstanding voting shares of which are owned, directly or indirectly, by the Company or by one or more subsidiaries of the Company and, as used in this definition, "**voting shares**" means shares of a class or classes ordinarily entitled to vote for the election of the majority of the directors of a corporation irrespective of whether or not shares of any other class or classes shall have or might have the right to vote for directors by reason of the happening of any contingency;

"**successor company**" has the meaning ascribed to that term in Section 8.2;

"**Successor Entity**" has the meaning ascribed to that term in Section 3.13(4);

"**this Indenture**", "**herein**", "**hereby**" and similar expressions mean or refer to this Subordinate Voting Share purchase warrant indenture and any indenture, deed or instrument supplemental or ancillary hereto; and the expressions "**Article**", "**Section**", "**subsection**" or "**paragraph**" followed by a number or letter mean and refer to the specified Article, Section, subsection or paragraph of this Indenture;

"**Time of Expiry**" means 5:00 p.m. (Vancouver time) on July 11, 2028;

"**trading day**" means a day on which the Cboe Canada (or such other exchange on which the Subordinate Voting Shares are listed and which forms the primary trading market for such shares) is open for trading, and if the Subordinate Voting Shares are not listed on a stock exchange, a day on which an over-the-counter market where such shares are traded is open for business;

"**transaction instruction**" means a written order signed by the holder or the Depository, entitled to request that one or more actions be taken, or such other form as may be reasonably acceptable to the Warrant Agent, requesting one or more such actions to be taken in respect of an Uncertificated Warrant;

"**Transfer Agent**" means the transfer agent or agents of the Company for the time being for the Subordinate Voting Shares;

"**U.S. Exchange Act**" means the United States Securities Exchange Act of 1934, as amended and the rules and regulations promulgated thereunder;

"**U.S. Securities Act**" means the United States Securities Act of 1933, as amended and the rules and regulations promulgated thereunder;

"**Uncertificated Warrant**" means any Warrant which is issued under the Book-Based System;

"**United States**" means the United States of America, its territories and possessions, any state of the United States, and the District of Columbia;

"**Warrant Agency**" means the principal offices of the Warrant Agent in the City of Vancouver, British Columbia and/or such other place as may be designated in accordance with Section 3.8;

"**Warrant Agent**" means Endeavor Trust Corporation, in its capacity as warrant agent of the Warrants, or any lawful successor thereto including through the operation of Section 9.8;

"**Warrant Certificates**" means the certificates representing Warrants substantially in the form attached as Schedule A hereto or such other form as may be approved by the Company and the Warrant Agent;

"**Warrant Shares**" means the Subordinate Voting Shares or other securities or property issuable upon the exercise of the Warrants as a result of any adjustment to the subscription rights pursuant to Section 3.13 hereof;

"**Warrantholders**" or "**holders**" means the persons whose names are entered for the time being in the register maintained pursuant to Section 3.8 which terms shall also include, if the Warrants are held in the Book-Based System, a Depository Participant or a designee appointed by such Depository Participant;

"**Warrantholders' Request**" means an instrument, signed in one or more counterparts by Warrantholders representing, in the aggregate, at least 25% of the aggregate number of Warrants then outstanding, which requests the Warrant Agent or the Company to take some action or proceeding specified therein;

"**Warrants**" means the Subordinate Voting Share purchase warrants of the Company issued and Authenticated hereunder as Uncertificated Warrants or to be issued and countersigned in the form of Warrant Certificates, in either case, entitling the holders thereof to purchase Warrant Shares on the basis of one Warrant Share for each whole Warrant upon a "cashless exercise" at any time prior to the Time of Expiry pursuant to Section 4.2 hereof; provided that in each case the number and/or class of shares or securities receivable on the exercise of the Warrants may be subject to increase or decrease or change in accordance with the terms and provisions hereof; and

"**written direction of the Company**", "**written request of the Company**", "**written consent of the Company**" and "**certificate of the Company**" and any other document required to be signed by the Company, means, respectively, a written direction, request, consent, certificate or other document signed in the name of the Company by any executive officer or director and may consist of one or more instruments so executed.

1.2 <u>Words Importing the Singular</u> 

Unless elsewhere otherwise expressly provided, or unless the context otherwise requires, words importing the singular include the plural and *vice versa* and words importing the masculine gender include the feminine and neuter genders.

1.3 <u>Interpretation not Affected by Headings</u> 

The division of this Indenture into Articles, Sections, subsections and paragraphs, the provision of a table of contents and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Indenture.

1.4 <u>Day not a Business Day</u> 

If any day on or before which any action is required or permitted to be taken hereunder is not a Business Day, then such action shall be required or permitted to be taken on or before the requisite time on the next succeeding day that is a Business Day.

1.5 <u>Time of the Essence</u> 

Time shall be of the essence in all respects of this Indenture and the Warrants issued hereunder.

1.6 <u>Governing Law</u> 

This Indenture, the Warrants, the Warrant Certificates (including all documents relating thereto, which by common accord have been and will be drafted in English) shall be construed in accordance with the laws of the Province of British Columbia and the federal laws applicable therein. Each of the parties hereto, which shall include the Warrantholders, irrevocably attorns to the exclusive jurisdiction of the courts of the Province of British Columbia with respect to all matters arising out of this Indenture and the transactions contemplated herein.

1.7 <u>Meaning of "outstanding" for Certain Purposes</u> 

Every Warrant Authenticated or certified by the Warrant Agent hereunder shall be deemed to be outstanding until it shall be cancelled or delivered to the Warrant Agent for cancellation, exercised pursuant to Section 4.1 or until the Time of Expiry; provided that where a new Warrant Certificate has been issued pursuant to Section 3.7 hereof to replace one which is lost, mutilated, stolen or destroyed, the Warrants represented by only one of such Warrant Certificates shall be counted for the purpose of determining the aggregate number of Warrants outstanding.

1.8 <u>Currency</u> 

Unless otherwise stated, all dollar amounts referred to in this Indenture are in United States dollars.

1.9 <u>Termination</u> 

This Indenture shall continue in full force and effect until the earlier of: (a) the Time of Expiry; and (b) the date that no Warrants are outstanding hereunder; provided that this Indenture shall continue in effect thereafter, if applicable, until the Company and the Warrant Agent have fulfilled all of their respective obligations under this Indenture.

1.10 <u>Calculations</u> 

All calculations called for hereunder including, without limitation, calculations of Current Market Price shall be as determined by the Company or, at the Warrantholders Request, such firm of independent chartered accountants as may be selected by the directors of the Company, acting reasonably, and in good faith in their sole discretion for these purposes. Such calculations made in good faith and, absent manifest error, shall be final and binding on holders and the Warrant Agent. The Company will provide a schedule of its calculations to the holders and the Warrant Agent. The Warrant Agent shall be entitled to rely conclusively on the accuracy of such calculations without independent verification.

**ARTICLE 2**

**APPOINTMENT OF WARRANT AGENT**

2.1 <u>Appointment of Warrant Agent</u> 

The Company hereby appoints the Warrant Agent as the warrant agent and registrar for the Warrants and the Warrant Agent hereby accepts such appointment and agrees to enter into this Indenture and to hold all rights, interests and benefits contained herein for and on behalf of those persons who become holders of Warrants issued pursuant to this Indenture from time to time.

**ARTICLE 3**

**ISSUE OF WARRANTS**

3.1 <u>Issue of Warrants</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Up
 to 503,882 Warrants are hereby created and authorized to be issued hereunder entitling the
 registered holders thereof to acquire an aggregate of up to 503,882 Warrant Shares (subject
 to adjustment in accordance with Section 3.13) at the Exercise Price upon the terms and conditions
 herein set forth. Uncertificated Warrants shall be Authenticated by the Warrant Agent by
 completing its Internal Procedures and deposited in the name of the Depository and Warrant
 Certificates evidencing the Warrants, if any, shall be executed by the Company, certified
 by or on behalf of the Warrant Agent and delivered by the Warrant Agent to the Company, as
 applicable, in accordance with a written direction of the Company, all in accordance with
 Sections 3.3 and 3.4. Subject to adjustment in accordance with the provisions of this Indenture,
 each of the Warrants issued hereunder shall entitle the holder thereof to receive from the
 Company, upon a "cashless exercise" of the Warrants outlined in Section 4.2 below,
 the number of Warrant Shares equal to the Exchange Basis in effect on the Exercise Date.

3.2 <u>Form and Terms of Warrants</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Warrants may be issued in either certificated or uncertificated form. The Warrant Certificates
 shall be substantially in the form attached as Schedule A hereto and dated as of the date
 of issue, subject to the provisions of this Indenture, with such additions, variations and
 changes as may be required or permitted by the terms of this Indenture, and to give effect
 to any Warrants not being issued as Uncertificated Warrants, and which may from time to time
 be agreed upon by the Warrant Agent and the Company, and shall have such distinguishing letters
 and numbers as the Company may, with the approval of the Warrant Agent, prescribe. Except
 as hereinafter provided in this ARTICLE 3, all Warrants shall, save as to denominations,
 be of like tenor and effect. The Warrant Certificates may be engraved, printed, lithographed,
 photocopied or be partially in one form or another, as the Company may determine. No change
 in the form of the Warrant Certificate shall be required by reason of any adjustment made
 pursuant to this ARTICLE 3 in the number and/or class of securities or type of securities
 or other property that may be acquired pursuant to the exercise of Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Each
 Warrant authorized to be issued hereunder shall entitle the registered holder thereof to
 acquire (subject to Sections 3.13, 3.14 and 3.15) upon due exercise and upon the transaction
 instruction or due execution of the exercise form endorsed on the Warrant Certificate, as
 applicable, or other instrument of exercise in such form as the Warrant Agent and/or the
 Company may from time to time prescribe and pursuant to the "cashless exercise"
 procedure outlined in Section 4.2, below, one Warrant Share or such other kind and amount
 of shares or securities or property, calculated pursuant to the provisions of Sections 3.13,
 and 3.14, as the case may be, after the date of issuance of such Warrants and prior to the
 Time of Expiry, in accordance with the provisions of this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Fractional
 Warrants shall not be issued or otherwise provided for and shall be disregarded for all purposes
 and no cash amount will be payable in lieu thereof. If the exercise of any Warrant would
 result in a fraction of a Subordinate Voting Share being issued to any person, any such fraction
 shall be rounded down to the next whole number of Subordinate Voting Shares and no cash amount
 will be payable in lieu thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Neither
 the Company nor the Warrant Agent shall have any obligation to deliver Warrant Shares upon
 the exercise of any Warrant if the person to whom such shares are to be delivered is a resident
 of a country or political subdivision thereof in which the Warrant Shares may not lawfully
 be issued pursuant to applicable Securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) All
 Warrants shall be substantially identical, except as may otherwise be established herein
 or in an indenture supplemental hereto. All Warrants need not be issued at the same time
 and may be issued from time to time, consistent with the terms of this Indenture, if so provided
 herein, or in an indenture supplemental hereto.

3.3 <u>Signing of Warrant Certificates</u> 

Warrant Certificates shall be signed by any one of the directors or executive officers of the Company and may, but need not be under the corporate seal of the Company or a reproduction thereof. The signature of any such director or officer may be mechanically reproduced in facsimile or other electronic format and Warrant Certificates bearing such facsimile or other electronic format signatures shall be binding upon the Company as if they had been manually signed by such director or officer. Notwithstanding that the person whose manual or electronic signature appears on any Warrant Certificate as a director or executive officer may no longer hold office at the date of issue of the Warrant Certificate or at the date of certification or delivery thereof, any Warrant Certificate signed as aforesaid shall, subject to Section 3.4, be valid and binding upon the Company and the registered holder thereof will be entitled to the benefits of this Indenture.

3.4 <u>Authentication or Certification by the Warrant Agent</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) No
 Warrant Certificate shall be issued or, if issued, shall be valid for any purpose or entitle
 the registered holder to the benefit hereof or thereof until it has been certified by signature
 by or on behalf of the Warrant Agent and such certification by the Warrant Agent shall be
 conclusive evidence as against the Company that the Warrant so certified has been duly issued
 hereunder and the holder is entitled to the benefits hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) No
 NCI deposit in the Book-Based System shall be made or, if made, shall be valid for any purposes
 or entitle the holder to the benefits hereof and thereof until it has been Authenticated
 by the Warrant Agent and such Authentication shall be conclusive evidence as against the
 Company that the NCI deposit so made has been duly issued hereunder and that the holder is
 entitled to the benefits hereof and thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 certification of the Warrant Agent on the Warrant Certificates issued hereunder, or the Authentication
 of the Warrant Agent of the NCI deposit in the Book-Based System made hereunder, as applicable,
 shall not be construed as a representation or warranty by the Warrant Agent as to the validity
 of this Indenture or the Warrant Certificates (except the due certification thereof) or the
 NCI deposit (except the due Authentication thereof) as applicable, and the Warrant Agent
 shall in no respect be liable or answerable for the use made of the Warrant Certificate or
 NCI deposit, as applicable, or any of them or of the consideration therefor except as otherwise
 specified herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The
 register shall be final and conclusive evidence as to all matters relating to Uncertificated
 Warrants with respect to which this Indenture requires the Warrant Agent to maintain records
 or accounts. In case of differences between the register at any time and any other time,
 the register at the later time shall be controlling, absent manifest error and such Uncertificated
 Warrants are binding on the Company.

3.5 <u>Warrantholder not a Shareholder, etc.</u> 

Nothing in this Indenture or the holding of a Warrant evidenced by a Warrant Certificate shall be construed as conferring upon a Warrantholder any right or interest whatsoever as a shareholder, including but not limited to the right to vote at, to receive notice of, or to attend meetings of shareholders or any other proceedings of the Company, nor entitle the holder to any right or interest in respect thereof except as herein and in the Warrants expressly provided.

3.6 <u>Warrants to Rank *Pari Passu.*</u> 

 

All Warrants shall rank equally and without preference over each other, whatever may be the actual date of issue thereof.

3.7 <u>Issue in Substitution for Lost Warrant Certificates</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If
 any Warrant Certificates issued and certified under this Indenture shall become mutilated
 or be lost, destroyed or stolen, the Company, subject to Applicable Legislation, and subsection
 3.7(2), shall issue and thereupon the Warrant Agent shall certify and deliver a new Warrant
 Certificate of like denomination, date and tenor as the one mutilated, lost, destroyed or
 stolen in exchange for, in place of and upon cancellation of such mutilated Warrant Certificate,
 or in lieu of and in substitution for such lost, destroyed or stolen Warrant Certificate,
 and the substituted Warrant Certificate shall be substantially in the form set out in Schedule
 A hereto and Warrants evidenced by it will entitle the holder thereof to the benefits hereof
 and shall rank equally in accordance with its terms with all other Warrant Certificates issued
 or to be issued hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 applicant for the issue of a new Warrant Certificate pursuant to this Section 3.7 shall bear
 the reasonable cost of the issue thereof and in the case of mutilation shall, as a condition
 precedent to the issue thereof, deliver to the Warrant Agent the mutilated Warrant Certificate,
 and in the case of loss, destruction or theft shall, as a condition precedent to the issue
 thereof, furnish to the Company and to the Warrant Agent such evidence of ownership and of
 the loss, destruction or theft of the Warrant Certificate so lost, destroyed or stolen as
 shall be satisfactory to the Company and to the Warrant Agent in their sole discretion and
 such applicant may be required to furnish an indemnity and surety bond in amount and form
 satisfactory to the Company and the Warrant Agent in their sole discretion and shall pay
 the reasonable charges of the Company and the Warrant Agent in connection therewith.

3.8 <u>Warrant Agency, Registration and Transfer of Warrants</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To
 facilitate the exchange, transfer or exercise of Warrants and compliance with such other
 terms and conditions hereof as may be required, the Company has appointed the Warrant Agency,
 as the agency at which Warrants may be surrendered for exchange or transfer or at which Warrants
 may be exercised and the Warrant Agent has accepted such appointment. The Company may from
 time to time designate alternate or additional places as the Warrant Agency (subject to the
 Warrant Agent's prior approval) and will give notice to the Warrant Agent of any proposed
 change of the Warrant Agency. Branch registers shall also be kept at such other place or
 places, if any, as the Company, with the approval of the Warrant Agent, may designate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 Warrant Agent will create and keep at the Warrant Agency:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 register of holders in which shall be entered with the names and addresses of the holders
 of Warrants and particulars of the Warrants held by them and the Warrant Agent shall be entitled
 to rely on such register in connection with the exchange, transfer or exercise of any Warrant(s)
 pursuant to the terms of this Indenture or the terms thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 register of transfers in which all transfers of Warrants and the date and other particulars
 of each such transfer shall be entered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) No
 transfer of any Warrant will be valid unless entered on the register of transfers referred
 to in subsection 3.8(1), and, in the case of a Warrant Certificate, upon surrender to the
 Warrant Agent of the Warrant Certificate evidencing such Warrant, and a duly completed and
 executed transfer form endorsed on the Warrant Certificate executed by the registered holder
 or his executors, administrators or other legal representatives or his attorney duly appointed
 by an instrument in writing in form and execution satisfactory to the Warrant Agent, if applicable,
 and, upon compliance with such requirements and such other reasonable requirements as the
 Warrant Agent may prescribe, such transfer will be recorded on the register of transfers
 by the Warrant Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) In
 the case of a Warrant Certificate, the transferee of any Warrant will, after surrender to
 the Warrant Agent of the Warrant Certificate evidencing such Warrant as required by subsection
 3.8(3) and upon compliance with all other conditions in respect thereof required by this
 Indenture or by law, be entitled to be entered on the register of holders referred to in
 subsection 3.8(1) as the owner of such Warrant free from all equities or rights of set-off
 or counterclaim between the Company and the transferor or any previous holder of such Warrant,
 except in respect of equities or rights of which the Company is required to take notice by
 statute or by order of a court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The
 Company will be entitled, and may direct the Warrant Agent, to refuse to recognize any transfer,
 or enter the name of any transferee, of any Warrant on the registers referred to in subsection
 3.8(1), if such transfer would constitute a violation of the Securities Laws of any applicable
 jurisdiction or the rules, regulations or policies of any regulatory authority having jurisdiction.
 The Warrant Agent is entitled to assume compliance with all applicable Securities Laws unless
 otherwise notified in writing by the Company. No duty shall rest with the Warrant Agent to
 determine compliance of the transferee or transferor of any Warrant with applicable Securities
 Laws.

3.9 <u>Registers Open for Inspection</u> 

The registers referred to in subsection 3.8(1) shall be open at all reasonable times during business hours on a Business Day for inspection by the Company or any Warrantholder. The Warrant Agent shall, from time to time when requested to do so in writing by the Company and upon payment of its reasonable fees, furnish the Company with a list of the names and addresses of holders of Warrants entered in the register of holders kept by the Warrant Agent and showing the number of Warrants held by each such holder.

3.10 <u>Exchange of Warrant Certificates</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Warrant
 Certificates may, upon compliance with the reasonable requirements of the Warrant Agent (including
 compliance with applicable Securities Laws), be exchanged for Warrant Certificates in any
 other authorized denomination representing in the aggregate an equal number of Warrants as
 the number of Warrants represented by the Warrant Certificates being exchanged. The Company
 shall sign and the Warrant Agent shall certify, in accordance with Sections 3.3 and 3.4,
 all Warrant Certificates necessary to carry out the exchanges contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Warrant
 Certificates may be exchanged only at the Warrant Agency. Any Warrant Certificates tendered
 for exchange shall be surrendered to the Warrant Agent and cancelled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Except
 as otherwise herein provided, the Warrant Agent may charge Warrantholders requesting an exchange
 a reasonable sum for each Warrant Certificate issued; and payment of such charges and reimbursement
 of the Warrant Agent or the Company for any and all taxes or governmental or other charges
 required to be paid shall be made by the party requesting such exchange as a condition precedent
 to such exchange.

3.11 <u>Ownership of Warrants</u> 

The Company and the Warrant Agent and their respective agents may deem and treat the registered holder of any Warrant as the absolute owner of the Warrant represented thereby for all purposes and the Company and the Warrant Agent and their respective agents shall not be affected by any notice or knowledge to the contrary except as required by statute or order of a court of competent jurisdiction. The holder of any Warrant shall be entitled to the rights evidenced by that Warrant free from all equities or rights of set-off or counterclaim between the Company and the original or any intermediate holder thereof and all persons may act accordingly and the receipt by any holder of the Warrant Shares or monies obtainable pursuant to the exercise of the Warrant shall be a good discharge to the Company and the Warrant Agent for the same and neither the Company nor the Warrant Agent shall be bound to inquire into the title of any holder.

3.12 <u>Book-Based System Warrants</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Except
 as described above or as may be directed by the Company, registration of interests in and
 transfers of Warrants shall be made only through the Book-Based System. Other than as may
 be directed by the Company, the Warrants will be evidenced by a non-certificated inventory
 ()"**NCI**") deposit though the Book-Based System for an amount representing
 the aggregate number of such Warrants outstanding from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Transfers
 of beneficial ownership in any Warrant represented by an NCI deposit will be effected only
 (i) with respect to the interest of a Depository Participant, through records maintained
 by the Depository or its nominee for such Warrants, and (ii) with respect to the interest
 of any person other than a Depository Participant, through records maintained by the Depository
 Participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 rights of Beneficial Owners who hold security entitlements in respect of Warrants through
 the Book-Based System shall be limited to those established by Applicable Legislation and
 agreements between the Depository and the Depository Participants and between such Depository
 Participants and Beneficial Owners who hold security entitlements in respect of Warrants
 through the Book-Based System and must be exercised through a Depository Participant in accordance
 with the rules and procedures of the Depository.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) If
 any of the following events occurs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Depository or the Company has notified the Warrant Agent that (A) the Depository is unwilling
 or unable to continue as depository or (B) the Depository ceases to be a clearing agency
 in good standing under Applicable Legislation and, in either case, the Company is unable
 to locate a qualified successor depository within 90 days of delivery of such notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Company has determined, in its sole discretion, to terminate the Book- Based System in respect
 of such Uncertificated Warrants and has communicated such determination to the Warrant Agent
 in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Company or the Depository is required by Applicable Legislation to take the action contemplated
 in this subsection; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Book-Based System administered by the Depository ceases to exist,

then one or more definitive fully registered Warrant Certificates shall be executed by the Company and certified and delivered by the Warrant Agent to the Depository in exchange for the Uncertificated Warrants held by the Depository. The Company shall provide an Officer's Certificate giving notice to the Warrant Agent of the occurrence of any event outlined in this Section 3.12(4).

Fully registered Warrant Certificates issued and exchanged pursuant to this subsection shall be registered in such names and in such denominations as the Depository shall instruct the Warrant Agent, provided that the aggregate number of Warrants represented by such Warrant Certificates shall be equal to the aggregate number of Uncertificated Warrants so exchanged. Upon exchange of Uncertificated Warrants for one or more Warrant Certificates in definitive form, such Uncertificated Warrants shall be cancelled by the Warrant Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Notwithstanding
 anything to the contrary in this Indenture, subject to Applicable Legislation, the Warrants
 represented by a NCI deposit will be issued as an Uncertificated Warrant, unless otherwise
 requested in writing by the Depository or the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The
 rights of beneficial owners of Warrants who hold securities entitlements in respect of the
 Warrants through the Book-Based System shall be limited to those established by Applicable
 Legislation and agreements between the Depository and the Depository Participant and between
 such Depository Participants and the Beneficial Owners of Warrants who hold securities entitlements
 in respect of the Warrants through the Book-Based System, and such rights must be exercised
 through a Depository Participant in accordance with the rules and procedures of the Depository.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Notwithstanding
 anything in this Indenture in terms of a NCI deposit, neither the Company nor the Warrant
 Agent nor any agent thereof shall have any responsibility or liability for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 records maintained by the Depository relating to any ownership interests or any other interests
 in the Warrants or the depository system maintained by the Depository, or payments made on
 account of any ownership interest or any other interest of any person in any Warrant represented
 by any NCI deposit (other than the Depository or its nominee);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) maintaining,
 supervising or reviewing any records of the Depository or any the Depository Participant
 relating to any such interest; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 advice or representation made or given by the Depository or those contained in this Indenture
 that relate to the rules and regulations of the Depository or any action to be taken by the
 Depository on its own direction or at the direction of any the Depository Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Notwithstanding
 any provisions made in this Indenture with respect to expiry dates, payment dates or other
 acts that may be required to be done in connection with this Indenture, may be altered due
 to the internal procedures and processes with respect to cut-off times of the Depository.
 It is understood and agreed to by the parties hereto that the Warrant Agent shall have no
 responsibility in connection with any cut-off time imposed by the Depository.

3.13 <u>Adjustment of Number of Subordinate Voting Shares and Exercise Price.</u> 

Subject to Section 3.14, the subscription rights in effect under the Warrants for Subordinate Voting Shares issuable upon the exercise of the Warrants shall be subject to adjustment from time to time as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If
 and whenever, at any time after the date hereof and prior to the Time of Expiry, the Company
 shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) issue
 Subordinate Voting Shares or securities exchangeable for or convertible into Subordinate
 Voting Shares to all or substantially all the holders of the Subordinate Voting Shares as
 a stock dividend or other distribution (other than a distribution of Warrant Shares upon
 exercise of the Warrants or pursuant to the exercise, conversion or exchange of securities
 of the Company outstanding as of the date hereof), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subdivide,
 redivide or change its then outstanding Subordinate Voting Shares into a greater number of
 Subordinate Voting Shares, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) reduce,
 combine or consolidate its then outstanding Subordinate Voting Shares into a lesser number
 of Subordinate Voting Shares,

(any of such events in these paragraphs (i), (ii) or (iii) being called a "**Subordinate Voting Share Reorganization**"), then the Exchange Basis in effect on the effective date of such subdivision, redivision or change, or reduction, combination or consolidation, or on the record date of such stock dividend or other distribution, as the case may be, shall be adjusted by multiplying the Exchange Basis in effect immediately prior to such effective date or record date by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 numerator of which shall be the total number of Subordinate Voting Shares outstanding on
 such date immediately after giving effect to such Subordinate Voting Share Reorganization
 (including, in the case where securities exercisable, exchangeable for or convertible into
 Subordinate Voting Shares are distributed, the number of Subordinate Voting Shares that would
 have been outstanding had such securities been exercised, or exchanged for or converted into
 Subordinate Voting Shares on such record date, assuming in any case where such securities
 are not then convertible, exercisable or exchangeable but subsequently become so, that they
 were convertible, exercisable or exchangeable on the record date on the basis upon which
 they first become convertible, exercisable or exchangeable), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 denominator of which shall be the total number of Subordinate Shares outstanding on such
 date before giving effect to such Subordinate Share Reorganization.

The resulting product, adjusted to the nearest 1/100<sup>th</sup>, shall thereafter be the Exchange Basis until further adjusted as provided in this ARTICLE 3.

Any Subordinate Voting Shares owned by or held for the account of the Company's or any of its Subsidiaries or a partnership in which the Company is directly or indirectly a party to will be deemed not to be outstanding for the purposes of any computation.

To the extent that any adjustment in the Exchange Basis occurs pursuant to this subsection 3.13(1) as a result of the fixing by the Company of a record date for the distribution of securities exchangeable or exercisable for or convertible into Subordinate Voting Shares and the Subordinate Voting Share Reorganization does not occur or any conversion, exercise or exchange rights are not fully converted, exercised or exchanged, the Exchange Basis shall be readjusted immediately after the expiry of any relevant exchange or conversion right or the termination of the Subordinate Voting Share Reorganization, as the case may be, to the Exchange Basis that would then be in effect, based upon the number of Subordinate Voting Shares actually issued and remaining issuable after such expiry and shall be further readjusted in such manner upon the expiry of any further such right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If
 and whenever, at any time after the date hereof and prior to the Time of Expiry, the Company
 shall fix a record date for the distribution to all or substantially all of the holders of
 its outstanding Subordinate Voting Shares of rights, options or warrants entitling them,
 for a period expiring not more than 45 days after such record date, to subscribe for or purchase
 Subordinate Voting Shares, or securities exchangeable or exercisable for or convertible into
 Subordinate Voting Shares, at a price per share to the holder (or at an exchange, exercise
 or conversion price per share) of less than 95% of the Current Market Price on such record
 date (any of such events being called a "**Rights Offering** "), then the Exchange
 Basis shall be adjusted effective immediately after such record date for the Rights Offering
 by multiplying the Exchange Basis in effect immediately prior to such record date by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 numerator of which shall be the number of Subordinate Voting Shares which would be outstanding
 after giving effect to the Rights Offering (assuming the exercise of all of the rights, options
 or warrants under the Rights Offering and assuming the exchange, exercise or conversion into
 Subordinate Voting Shares of all exchangeable, exercisable or convertible securities issued
 upon exercise of such rights, options or warrants, if any), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 denominator of which shall be the aggregate of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 total number of Subordinate Voting Shares outstanding as of the record date for the Rights
 Offering, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a
 number of Subordinate Voting Shares determined by dividing:

---

| | |
|:---|:---|
| A | the amount equal to the aggregate consideration payable on the exercise of all of the rights, options and warrants under the Rights Offering plus the aggregate consideration, if any, payable on the exchange, exercise or conversion of the exchangeable or convertible securities issued upon exercise of such rights, options or warrants (assuming the exercise of all rights, options and warrants under the Rights Offering and assuming the exchange or conversion of all exchangeable or convertible securities issued upon exercise of such rights, options and warrants); |

---

by

B the Current Market Price as of the record date for the Rights Offering.

The resulting product, adjusted to the nearest 1/100th, shall thereafter be the Exchange Basis until further adjusted as provided in this ARTICLE 3. Any Subordinate Voting Shares owned by or held for the account of the Company or any of its Subsidiaries or a partnership in which the Company is directly or indirectly a party to will be deemed not to be outstanding for the purposes of any computation. If, at the date of expiry of the rights, options or warrants subject to the Rights Offering, less than all the rights, options or warrants have been exercised, then the Exchange Basis shall be readjusted effective immediately after the date of expiry to the Exchange Basis which would have been in effect on the date of expiry if only the rights, options or warrants issued had been those exercised. If at the date of expiry of the rights of exchange, exercise or conversion of any securities issued pursuant to the Rights Offering less than all of such securities have been exchanged or exercised for, or converted into, Subordinate Voting Shares, then the Exchange Basis shall be readjusted effective immediately after the date of such expiry to the Exchange Basis which would have been in effect on the date of expiry if only the exchangeable, exercisable or convertible securities issued had been those securities actually exchanged or exercised for or converted into Subordinate Voting Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If
 and whenever, at any time after the date hereof and prior to the Time of Expiry, the Company
 shall fix a record date for the issuance or distribution to all or substantially all the
 holders of its outstanding Subordinate Voting Shares of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shares
 of the Company of any class other than Subordinate Voting Shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) rights,
 options or warrants to acquire Subordinate Voting Shares or securities exchangeable or exercisable
 for or convertible into Subordinate Voting Shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) evidences
 of indebtedness; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) cash,
 securities or any property or other assets,

and if such issuance or distribution does not constitute a Subordinate Voting Share Reorganization or a Rights Offering (any of such non-excluded events being herein called a "**Special Distribution**"), the Exchange Basis shall be adjusted effective immediately after the record date for the Special Distribution by multiplying the Exchange Basis in effect on such record date by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 numerator of which shall be the number of Subordinate Voting Shares outstanding on such record
 date multiplied by the Current Market Price on such record date, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 denominator of which shall be:

A the product of the number of Subordinate Voting Shares outstanding on such record date and the Current Market Price on such record date,

less

---

| | |
|:---|:---|
| B | the fair market value, as determined by action by the board of directors acting reasonably and in good faith (whose determination shall, absent manifest error, be conclusive), to the holders of the Subordinate Voting Shares of the shares, rights, options, warrants, evidences of indebtedness or property or other assets issued or distributed in the Special Distribution, |

---

provided that no such adjustment shall be made if the result of such adjustment would be to decrease the Exchange Basis in effect immediately before such record date. The resulting product, adjusted to the nearest 1/100th, shall thereafter be the Exchange Basis until further adjusted as provided in this ARTICLE 3. Any Subordinate Voting Shares owned by or held for the account of the Company or any of its Subsidiaries or a partnership in which the Company is directly or indirectly a party to will be deemed not to be outstanding for the purposes of any computation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) If,
 at any time while Warrants are outstanding (i) the Company effects any merger or consolidation
 of the Company with or into another person, in which the Company is not the surviving entity
 or the shareholders of the Company immediately prior to such merger or consolidation do not
 own, directly or indirectly, at least 50% of the voting power of the surviving entity immediately
 after such merger or consolidation, (ii) the Company effects any sale to another person of
 all or substantially all of its assets in one or a series of related transactions, (iii)
 pursuant to any tender offer or exchange offer (whether by the Company or another person),
 shareholders who tender shares representing more than 50% of the voting power of the Subordinate
 Voting Shares and the Company or such other person, as applicable, accepts such tender for
 payment, (iv) the Company consummates a share purchase agreement or other business combination
 (including, without limitation, a reorganization, recapitalization, spin-off, merger or plan
 of arrangement) with another person whereby such other person acquires more than the 50%
 of the voting power of the Subordinate Voting Shares or (v) the Company effects any reclassification
 of the Subordinate Voting Shares or any compulsory share exchange pursuant to which the Subordinate
 Voting Shares are effectively converted into or exchanged for other securities, cash or property
 (other than as a result of a subdivision or combination of Subordinate Voting Shares covered
 by Section 3.13(1) above) (in any such case, a "**Fundamental Transaction** "),
 then following such Fundamental Transaction the holder shall have the right to receive, upon
 exercise of the Warrants, the same amount and kind of securities, cash, other property or
 any combination thereof as it would have been entitled to receive upon the occurrence of
 such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction,
 the holder of the number of Warrant Shares then issuable upon exercise in full of the Warrants
 without regard to any limitations on exercise contained herein (the "**Alternate Consideration** ").For
 purposes of any such exercise, the determination of the Exercise Price shall be appropriately
 adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
 issuable in respect of one Subordinate Voting Shares in such Fundamental Transaction, and
 the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable
 manner reflecting the relative value of any different components of the Alternate Consideration.
 If holders of Subordinate Voting Shares are given any choice as to the securities, cash or
 property to be received in a Fundamental Transaction, then the Warrantholder shall be given
 the same choice as to the Alternate Consideration it receives upon any exercise of their
 Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary,
 in the event of a Fundamental Transaction (other than a Fundamental Transaction in which
 the Company is the surviving entity), subject to approval by the Cboe Canada Exchange, the
 Company or any Successor Entity (as defined below) shall, at the Warrantholder's option,
 exercisable at any time concurrently with, or within 30 days after, the consummation of the
 Fundamental Transaction (or, if later, the date of the public announcement of the applicable
 Fundamental Transaction), purchase the Warrantholder's Warrant from the Warrantholder
 by paying to the Warrantholder an amount of cash equal to the Black Scholes Value (as defined
 below) of the remaining unexercised portion of the Warrantholder's Warrant on the date
 of the consummation of such Fundamental Transaction; provided, however, if the Fundamental
 Transaction is not within the Company's control, including not approved by the Company's
 Board of Directors, Warrantholders shall only be entitled to receive from the Company or
 any Successor Entity, as of the date of consummation of such Fundamental Transaction, the
 same type or form of consideration (and in the same proportion), at the Black Scholes Value
 of the unexercised portion of the Warrantholder's Warrant, that is being offered and
 paid to the holders of Subordinate Voting Shares of the Company in connection with the Fundamental
 Transaction, whether that consideration be in the form of cash, stock or any combination
 thereof, or whether the holders of Subordinate Voting Shares are given the choice to receive
 from among alternative forms of consideration in connection with the Fundamental Transaction;
 provided, further, that if holders of Subordinate Voting Shares of the Company are not offered
 or paid any consideration in such Fundamental Transaction, such holders of Subordinate Voting
 Shares will be deemed to have received Subordinate Voting Shares of the Successor Entity
 (which may be the Company following such Fundamental Transaction) in such Fundamental Transaction.
 "**Black Scholes Value**" means the value of each Warrant based on the Black-Scholes
 Option Pricing Model obtained from the "OV" function on Bloomberg, L.P. ()"**Bloomberg** ")
 determined as of the day of consummation of the applicable Fundamental Transaction for pricing
 purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury
 rate for a period equal to the time between the date of the public announcement of the applicable
 contemplated Fundamental Transaction and the Time of Expiry, (B) an expected volatility equal
 to the 100 day volatility obtained from the HVT function on Bloomberg (determined utilizing
 a 365 day annualization factor) as of the trading day immediately following the public announcement
 of the applicable contemplated Fundamental Transaction, (C) the underlying price per share
 used in such calculation shall be the sum of the price per share being offered in cash, if
 any, plus the value of any non-cash consideration, if any, being offered in such Fundamental
 Transaction and (D) a remaining option time equal to the time between the date of the public
 announcement of the applicable contemplated Fundamental Transaction and the Time of Expiry
 and (E) a zero cost of borrow. The payment of the Black Scholes Value will be made by wire
 transfer of immediately available funds within the later of (i) five Business Days of the
 Warrantholder's election and (ii) the date of consummation of the Fundamental Transaction.
 The Company shall cause any successor entity in a Fundamental Transaction in which the Company
 is not the survivor (the "Successor Entity") to assume in writing all of the
 obligations of the Company under this Indenture in accordance with the provisions of this
 Section 3.13(4) pursuant to written agreements in form and substance reasonably satisfactory
 to the Company prior to such Fundamental Transaction and shall, at the option of the Warrantholder,
 deliver to the Warrant holder in exchange for the Warrantholder's Warrant a security
 of the Successor Entity evidenced by a written instrument substantially similar in form and
 substance to the Warrantholder's Warrant which is exercisable for a corresponding number
 of shares of capital stock of such Successor Entity (or its parent entity) equivalent to
 the Subordinate Voting Shares acquirable and receivable upon exercise of this Warrant (without
 regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction,
 and with an exercise price which applies the exercise price hereunder to such shares of capital
 stock (but taking into account the relative value of the Subordinate Voting Shares pursuant
 to such Fundamental Transaction and the value of such shares of capital stock, such number
 of shares of capital stock and such exercise price being for the purpose of protecting the
 economic value of this Warrant immediately prior to the consummation of such Fundamental
 Transaction), and which is reasonably satisfactory in form and substance to the Warrantholder.
 Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed
 to, and be substituted for (so that from and after the date of such Fundamental Transaction,
 the provisions of the Warrantholder's Warrant referring to the "Company"
 shall refer instead to the Successor Entity), and may exercise every right and power of the
 Company and shall assume all of the obligations of the Company under the Warrantholder's
 Warrant and this Indenture with respect to the Warrantholder's Warrant with the same
 effect as if such Successor Entity had been named as the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Any
 adjustment to the Exchange Basis as set forth herein shall also include a corresponding adjustment
 to the Exercise Price which shall be calculated by multiplying the Exercise Price by a fraction:
 (a) the numerator of which shall be the Exchange Basis prior to the adjustment, and (b) the
 denominator of which shall be the Exchange Basis after the adjustment.

3.14 <u>Rules Regarding Calculation of Adjustment of Exchange Basis For the purposes of Section 3.13:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 adjustments provided for in Section 3.13 shall be cumulative and such adjustments shall be
 made successively whenever an event referred to in Section <u>3.13 shall occur, subject to the following subsections of this Section 3.14.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) No
 adjustment in the: (a) Exchange Basis shall be required unless such adjustment would result
 in a change of at least 0.01 of a Warrant Share based on the prevailing Exchange Basis; or
 (b) Exercise Price shall be required unless such adjustment would result in a change of at
 least 1%, provided that any adjustments which, except for the provisions of this subsection,
 would otherwise have been required to be made, shall be carried forward and taken into account
 in any subsequent adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) No
 adjustment in the Exchange Basis shall be made in respect of any event described in Section
 3.13, other than the events referred to in paragraphs (ii) and (iii) of subsection (1) thereof,
 if Warrantholders are entitled to participate in such event on the same terms, *mutatis mutandis*, as if Warrantholders had exercised their Warrants prior to or on the effective
 date or record date of such event, any such participation being subject to regulatory approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) No
 adjustment in the Exchange Basis shall be made pursuant to Section 3.13 in respect of the
 issue from time to time of Warrant Shares purchasable on exercise of the Warrants or pursuant
 to the exercise, conversion or exchange of securities of the Company outstanding as of the
 date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The
 Company shall from time to time immediately after the occurrence of any event which requires
 an adjustment or readjustment as provided in Section 3.13, deliver a certificate of the Company
 to the Warrant Agent specifying the nature of the event requiring the same and the amount
 of the adjustment or readjustment necessitated thereby and setting forth in reasonable detail
 the method of calculation and the facts upon which such calculation is based, which certificate
 shall be supported by a certificate of the Company's Auditors verifying such calculation.
 The Warrant Agent shall rely, and shall be protected in so doing, upon the certificate of
 the Company or of the Company's Auditor and any other document filed by the Company
 pursuant to this Section 3.13 for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) If
 a dispute shall at any time arise with respect to adjustments provided for in Section 3.13,
 such dispute shall, absent manifest error, be conclusively determined by the Company's
 Auditors, or if they are unable or unwilling to act, by such other firm of independent chartered
 professional accountants as may be selected by the directors and any further determination,
 absent manifest error, shall be binding upon the Company, the Warrant Agent and the Warrantholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) If
 the Company shall set a record date to determine the holders of the Subordinate Voting Shares
 for the purpose of entitling them to receive any dividend or distribution or any subscription
 or purchase rights and shall, thereafter and before the distribution to such shareholders
 of any such dividend, distribution, or subscription or purchase rights, legally abandon its
 plan to pay or deliver such dividend, distribution, or subscription or purchase rights, then
 no adjustment in the Exchange Basis shall be required by reason of the setting of such record
 date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) In
 the absence of a resolution of the directors fixing a record date for a Rights Offering or
 Special Distribution, the Company shall be deemed to have fixed as the record date therefor
 the date on which the Rights Offering or Special Distribution is effected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) If
 the purchase price provided for in any Rights Offering (the "**Rights Offering Price** ")
 is decreased, the Exchange Basis shall forthwith be changed so as to increase the Exchange
 Basis to such Exchange Basis as would have been obtained had the adjustment to the Exchange
 Basis made pursuant to subsection 3.13(2) upon the issuance of such Rights Offering been
 made upon the basis of the Rights Offering Price as so decreased, provided that the provisions
 of this subsection shall not apply to any decrease in the Rights Offering Price resulting
 from provisions in any such Rights Offering designed to prevent dilution if the event giving
 rise to such decrease in the Rights Offering Price itself requires an adjustment to the Exchange
 Basis pursuant to the provisions of Section 3.13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) As
 a condition precedent to the taking of any action that would require any adjustment in any
 of the subscription rights pursuant to any of the Warrants, including the Exchange Basis,
 the Company shall take any corporate action which may, in the opinion of counsel, be necessary
 in order that the Company have unissued and reserved in its authorized capital and may validly
 and legally issue as fully paid and non-assessable all the shares or other securities that
 all the holders of such Warrants are entitled to receive on the exercise of all the subscription
 rights attaching thereto in accordance with the provisions thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) The
 Warrant Agent shall be entitled to act and rely on any adjustment calculations by the Company
 or the Company's Auditors.

3.15 <u>Postponement of Subscription</u> 

In any case where the application of Section 3.13 results in an increase in the number of Subordinate Voting Shares that are issuable upon exercise of the Warrants taking effect immediately after the record date for a specific event, if any Warrant is exercised after that record date and prior to completion of such specific event, the Company may postpone the issuance to the Warrantholder of the Warrant Shares to which he is entitled by reason of such adjustment, but such Warrant Shares shall be so issued and delivered to that holder upon completion of that event, with the number of such Warrant Shares calculated on the basis of the number of Warrant Shares on the date that the Warrant was exercised, adjusted for completion of that event and the Company shall deliver to the person or persons in whose name or names the Warrant Shares are to be issued an appropriate instrument evidencing the right of such person or persons to receive such Warrant Shares and the right to receive any dividends or other distributions which, but for the provisions of this Section 3.15, such person or persons would have been entitled to receive in respect of such Warrant Shares from and after the date that the Warrant was exercised in respect thereof.

3.16 <u>Notice of Adjustment</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) At
 least 14 days prior to the effective date or record date, as the case may be, of any event
 which requires or might require adjustment pursuant to Section 3.13, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) file
 with the Warrant Agent a certificate of the Company specifying the particulars of such event
 (including the record date or the effective date for such event) and, if determinable, the
 required adjustment and the computation of such adjustment and the facts upon which such
 calculation is based, which certificate may be supported by a certificate of the Company's
 Auditors verifying such calculation if requested by the Warrant Agent at their discretion
 and the Warrant Agent shall rely, and shall be protected in so doing, upon the certificate
 of the Company or of the Company's Auditor and any other document filed by the Company
 pursuant to this ARTICLE 3 for all purposes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) give
 notice to the Warrantholders of the particulars of such event (including the record date
 or the effective date for such event) and, if determinable, the required adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In
 case any adjustment for which a notice in subsection 3.16(1) has been given is not then determinable,
 the Company shall promptly after such adjustment is determinable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) file
 with the Warrant Agent a computation of such adjustment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) give
 notice to the Warrantholders of the adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 Warrant Agent may, absent manifest error, act and rely upon certificates and other documents
 filed by the Company pursuant to this Section 3.16 for all purposes of the adjustment.

3.17 <u>No Action after Notice</u> 

The Company covenants with the Warrant Agent that it will not close its transfer books or take any other corporate action which might deprive a Warrantholder of the opportunity of exercising the rights of acquisition pursuant thereto during the period of 10 days after the giving of the notice set forth in subsection 3.16(1) and paragraph (b) of subsection 3.16(2).

3.18 <u>Optional Purchases by the Company</u> 

Subject to Applicable Legislation and prior approval of the Cboe Canada, if required, the Company may from time to time purchase on any stock exchange (if then listed), in the open market, by private agreement or otherwise any of the Warrants. Any such purchase shall be made at the lowest price or prices at which, in the opinion of the board of directors of the Company, such Warrants are then obtainable, plus reasonable costs of purchase, and may be made in such manner, from such persons, and on such other terms as the Company in its sole discretion may determine. The Warrant Certificates representing the Warrants purchased pursuant to this Section 3.18 shall forthwith be delivered to and cancelled by the Warrant Agent.

3.19 <u>Protection of Warrant Agent</u> The
 Warrant Agent shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at
 any time be under any duty or responsibility to any Warrantholder to determine whether any
 facts exist that may require any adjustment contemplated by this ARTICLE 3, nor to verify
 the nature and extent of any such adjustment when made or the method employed in making the
 same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be
 accountable with respect to the validity or value or the kind or amount of any Warrant Shares
 that may at any time be issued or delivered upon the exercise of the Warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) be
 responsible for any failure of the Company to make any cash payment upon the surrender of
 any Warrants for the purpose of the exercise of such rights or to comply with any of the
 covenants contained in this ARTICLE 3; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) incur
 any liability or responsibility whatsoever or be in any way responsible for the consequence
 of any breach on the part of the Company of any of the representations, warranties or covenants
 of the Company or any acts or deeds of the agents or servants of the Company.

**ARTICLE 4**

**EXERCISE OF WARRANTS**

4.1 <u>Method of Exercise of Warrants</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 registered holder of any Warrant may exercise the rights thereby conferred on him to acquire
 all or any part of the Warrant Shares to which such Warrant entitles the holder, by surrendering
 the Warrant Certificate representing such Warrants to the Warrant Agent prior to the Time
 of Expiry at the Warrant Agency, with a duly completed and executed exercise form (the "**Exercise Form**") of the registered holder or his executors, administrators or other legal
 representative or his attorney duly appointed by an instrument in writing in the form and
 manner satisfactory to the Warrant Agent, substantially in the form endorsed on the Warrant
 Certificate as Schedule "A", specifying the number of Warrant Shares subscribed
 for. A Warrant Certificate with the duly completed and executed Exercise Form shall be deemed
 to be surrendered only upon personal delivery thereof to or, if sent by mail or other means
 of transmission, upon actual receipt thereof by the Warrant Agent. No Warrantholder will
 be permitted to exercise Warrants other than pursuant to a "cashless exercise"
 as described in Section 4.2 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 Exercise Form shall be signed by the Warrantholder, or his executors, or administrators or
 other legal representative or his attorney duly appointed by an instrument in writing in
 the form and manner satisfactory to the Warrant Agent, shall specify the person(s) in whose
 name such Warrant Shares are to be issued, the address(es) of such person(s) and the number
 of Warrant Shares to be issued to each person, if more than one is so specified. If any of
 the Warrant Shares subscribed for are to be issued to (a) person(s) other than the Warrantholder,
 the signatures set out in the Exercise Form shall be guaranteed by a Canadian Schedule I
 chartered bank or a medallion signature guarantee from a member of a recognized Signature
 Medallion Guarantee Program and (b) the Warrantholder shall pay to the Company or the Warrant
 Agent all applicable transfer or similar taxes and the Company shall not be required to issue
 or deliver certificates evidencing Warrant Shares unless or until such Warrantholder shall
 have paid to the Company or the Warrant Agent on behalf of the Company the amount of such
 tax or shall have established to the reasonable satisfaction of the Company that such tax
 has been paid or that no tax is due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If,
 at the time of exercise of the Warrants, in accordance with the provisions of subsections
 4.1(1) or 4.1(4), there are any trading restrictions on the Warrant Shares pursuant to Securities
 Laws or stock exchange requirements, the Company shall, on the advice of counsel, endorse
 any certificates or book-entry positions representing the Warrant Shares to such effect.
 The Warrant Agent is entitled to assume compliance with all Securities Laws unless otherwise
 notified in writing by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) A
 Beneficial Owner of Uncertificated Warrant evidenced by a security entitlement in respect
 of Warrants in the Book-Based System who desires to exercise his Warrants, must do so by
 causing a Depository Participant to deliver to the Depository, on behalf of the Beneficial
 Owner prior to the Time of Expiry, a written notice of the Beneficial Owner's intention
 to exercise Warrants (the "**Exercise Notice**") in a manner acceptable to
 the Depository. Forthwith upon receipt by the Depository of such notice, the Depository shall
 deliver to the Warrant Agent confirmation of its intention to exercise Warrants (the "**Confirmation** ")
 in a manner acceptable to the Warrant Agent, including by electronic means through the Book-Based
 System. The Beneficial Owner will initiate the electronic exercise through the Book-Based
 System, by way of the Confirmation the Warrant Agent will execute the exercise by issuing
 to the Depository through the Book-Based System the Warrant Shares to which the exercising
 Beneficial Owner is entitled pursuant to the exercise. Any expense associated with the preparation
 and delivery of Exercise Notices will be for the account of the Beneficial Owner exercising
 the Warrants and the Warrant Agent will execute the exercise by issuing to the Depository
 through the Book-Based System the Warrant Shares to which the exercising Warrantholder is
 entitled pursuant to the exercise. Any expense associated with the exercise process will
 be for the account of the entitlement holder exercising the Warrants and/or the Depository
 Participant exercising the Warrants on its behalf. Issuance of Warrant Shares shall be made
 without charge to the Holder for any expense or fee of the Warrant Agent and transfer agent
 in respect of the issuance of such Warrant Shares, which expenses and fees shall be paid
 by the Company. Solely for purposes of Canadian Universal Market Rules and Regulation SHO,
 the Beneficial Owner shall be deemed to have exercised Warrants upon the delivery to its
 Depository Participant of irrevocable instructions to exercise the Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) By
 causing a Depository Participant to deliver notice to the Depository, a Beneficial Owner
 shall be deemed to have irrevocably surrendered his Warrants so exercised and appointed such
 Depository Participant to act as his or her exclusive settlement agent with respect to the
 exercise and the receipt of Warrant Shares in connection with the obligations arising from
 such exercise.

Any notice which the Depository determines to be incomplete, not in proper form or not duly executed shall for all purposes be void and of no effect and the exercise to which it relates shall be considered for all purposes not to have been exercised thereby. A failure by a Depository Participant to exercise or to give effect to the settlement thereof in accordance with the Beneficial Owner's instructions will not give rise to any obligations or liability on the part of the Company or Warrant Agent to the Depository Participant or the Beneficial Owner.

If the Exercise Form set forth in the Warrant Certificate shall have been amended, the Company shall cause the amended Exercise Form to be forwarded to all registered Warrantholders.

Exercise Forms and Confirmations must be delivered to the Warrant Agent at any time during the Warrant Agent's actual business hours on any Business Day prior to the Time of Expiry. Any Exercise Form or Confirmations received by the Warrant Agent after business hours on any Business Day other than the Expiry Date will be deemed to have been received by the Warrant Agent on the next following Business Day.

Any Warrant with respect to which a Confirmation or Exercise Form is not received by the Warrant Agent before the Time of Expiry shall be deemed to have expired and become void and all rights with respect to such Warrants shall terminate and be cancelled.

4.2 <u>Cashless Exercise</u> 

If the Current Market Price exceeds the Exercise Price, the Warrant may be exercised by means of a "cashless exercise" in which the Warrantholder shall be entitled to surrender a Warrant to the Company in exchange for the issuance (following the due exercise of Warrants pursuant to Section 4.1) of the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

A = the Current Market Price on the trading day immediately preceding the date of the receipt by the Warrant Agent of the notice of exercise;

B = the Exercise Price per Warrant Share of such Warrant, as adjusted; and

X = the number of Warrant Shares that would otherwise be issuable upon exercise of such Warrant in accordance with its terms by means of a cash exercise rather than a cashless exercise.

The issue price for each such Warrant Share to be issued pursuant to the cashless exercise of a Warrant will be equal to (B), as defined above, and the total issue price for the aggregate number of Warrant Shares issued pursuant to the cashless exercise of a Warrant will be paid and satisfied in full by the surrender to the Company of such Warrant.

The Company shall deliver to the Warrant Agent, an officer's certificate setting out the particulars of the Warrants to be exercised and the name and address of the Warrantholder, the number of Warrant Shares to be issued, and setting out the basis of the calculations pursuant to this Section 4.2.

4.3 <u>No Fractional Warrant Shares; Partial Exercise of Warrants</u> 

Under no circumstances shall the Company be obliged to issue any fractional Warrant Shares or any cash or other consideration in lieu thereof upon the exercise of one or more Warrants. To the extent that the holder of one or more Warrants would otherwise have been entitled to receive on the exercise or partial exercise thereof a fraction of a Warrant Share, that holder may exercise that right in respect of the fraction only in combination with another Warrant or Warrants that in the aggregate entitle the holder to purchase a whole number of Warrant Shares; otherwise fractional Warrant Shares shall be rounded down to the nearest whole number of Warrant Shares without compensation therefor. The holder of any Warrants may exercise their right to acquire a number of whole Warrant Shares less than the aggregate number which the holder is entitled to acquire. In the event of any exercise of a number of Warrants less than the number which the holder is entitled to exercise, the holder of Warrants upon such exercise shall, in addition, be entitled to receive, without charge therefor, a new Warrant Certificate(s), or other appropriate evidence of Warrants, in respect of the balance of the Warrants held by such holder and which were not then exercised.

4.4 <u>Effect of Exercise of Warrants</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Upon
 compliance by the Warrantholder with the provisions of Section 4.1 or Section 4.2, the Warrant
 Shares subscribed for shall be deemed to have been issued and the person to whom such Warrant
 Shares are to be issued shall be deemed to have become the holder of record of such Warrant
 Shares on the Exercise Date unless the transfer registers of the Company for the Subordinate
 Voting Shares shall be closed on such date, in which case the Warrant Shares subscribed for
 shall be deemed to have been issued and such person shall be deemed to have become the holder
 of record of such Warrant Shares on the date on which such transfer registers are reopened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Within
 two Business Days following the due exercise of a Warrant pursuant to Section 4.1 and forthwith
 after the Time of Expiry, the Warrant Agent shall deliver to the Company a notice setting
 forth the particulars of all Warrants exercised, if any, and the persons in whose names the
 Warrant Shares are to be issued (as applicable) and the addresses of such holders of the
 Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Within
 three Business Days of the due exercise of a Warrant pursuant to Section 4.1 (the "**Share Delivery Date** "), the Company shall cause the Transfer Agent to issue, on or prior
 to the Share Delivery Date, to the Depository through the Book- Based System the Warrant
 Shares to which the exercising Warrantholder is entitled pursuant to the exercise or mail
 to the person in whose name the Warrant Shares so subscribed for are to be issued, as specified
 in the Exercise Form completed on the Warrant Certificate, at the address specified in the
 Exercise Form, a certificate or certificates for the Warrant Shares to which the Warrantholder
 is entitled and, if applicable, shall cause the Warrant Agent to mail a Warrant Certificate
 representing any Warrants not then exercised. The Warrant Agent will not be liable to the
 Company for any payment made by the Company under Section 4.4(5) of this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) If
 the Company fails to cause the Warrant Agent to deliver to the Warrantholder the Warrant
 Shares issuable pursuant to Section 4.4(3) by the Share Delivery Date, then the Warrantholder
 will have the right to rescind such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) In
 addition to any other rights available to a Warrantholder, if the Company fails to cause
 the Warrant Agent to deliver to the Warrantholder the Subordinate Voting Shares issuable
 in accordance with Section 4.4(3) pursuant to an exercise on or before the Share Delivery
 Date and, if after such date, the Warrantholder is required by its broker to purchase (in
 an open market transaction or otherwise) or the Warrantholder's brokerage firm otherwise
 purchases, Subordinate Voting Shares to deliver in satisfaction of a sale by the Warrantholder
 of the Warrant Shares that the Warrantholder anticipated receiving upon such exercise (a
 "**Buy-In** "), then the Company shall (A) pay in cash to the Warrantholder
 the amount, if any, by which (x) the Warrantholder's total purchase price (including
 brokerage commissions, if any) for the Subordinate Voting Shares so purchased exceeds (y)
 the amount obtained by multiplying (1) the number of Subordinate Voting Shares that the Company
 was required to deliver to the Warrantholder in connection with the exercise at issue, times
 (2) the price at which the sell order giving rise to such purchase obligation was executed,
 and (B) at the option of the Warrantholder, either reinstate the portion of the Warrant and
 equivalent number of Warrant Shares for which such exercise was not honoured (in which case
 such exercise shall be deemed rescinded) or deliver to the Warrantholder the number of Subordinate
 Voting Shares that would have been issued had the Company timely complied with its delivery
 obligations under Section 4.4(3). For example, if the Warrantholder purchases Subordinate
 Voting Shares having a total purchase price of $11,000 to cover a Buy-In with respect to
 an attempted exercise of Subordinate Voting Shares with an aggregate sale price giving rise
 to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence,
 the Company shall be required to pay to the Warrantholder $1,000. In addition, if the Warrantholder
 incurs any fees and expenses (including those charged by CDS) because of the Company's
 failure to cause the Warrant Agent to deliver to the Warrantholder on or before the Share
 Delivery Date the Subordinate Voting Shares issuable in accordance with Section 4.4(3) pursuant
 to an exercise (the "**Late Fees** "), the Company shall promptly reimburse
 the Warrantholder for any and all such Late Fees. The Warrantholder shall provide the Company
 written notice indicating the amounts payable to the Warrantholder in respect of the Buy-In
 and/or Late Fees and, upon request of the Company, evidence of the amount of such loss. Nothing
 herein shall limit a Warrantholder's right to pursue any other remedies available to
 it under this Indenture, at law or in equity including, without limitation, a decree of specific
 performance and/or injunctive relief with respect to the Company's failure to timely
 deliver Warrant Shares as required under Section 4.4(3) following the valid exercise of Warrants
 under this Indenture.

4.5 <u>Cancellation of Warrants</u> 

All Warrants surrendered to the Warrant Agent pursuant to Sections 3.7, 3.8(3), 3.10, 3.18 or 4.1 shall be cancelled by the Warrant Agent and the Warrant Agent shall record the cancellation of such Warrants on the register of holders maintained by the Warrant Agent pursuant to subsection 3.8(1). The Warrant Agent shall, if required by the Company, furnish the Company with a certificate identifying the Warrants so cancelled. All Warrants that have been duly cancelled shall be without further force or effect whatsoever.

4.6 <u>Subscription for less than Entitlement</u> 

The holder of any Warrant may subscribe for and purchase a whole number of Warrant Shares that is less than the number that the holder is entitled to purchase pursuant to a surrendered Warrant. In such event, the holder thereof shall be entitled to receive a new Warrant Certificate, if applicable, in respect of the balance of Warrants that were not then exercised.

4.7 <u>Expiration of Warrant</u> 

After the Time of Expiry, all rights under any Warrant in respect of which the right of subscription and purchase herein and therein provided for shall not theretofore have been exercised shall wholly cease and terminate and such Warrant shall be void and of no effect.

4.8 <u>U.S. Securities Law Matters</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Notwithstanding
 any provision of this Indenture to the contrary, the Warrants may only be exercised in a
 "cashless exercise" as described in Section 4.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If
 any person shall fail to deliver customary representations and other documentation requested
 by the Company or Warrant Agent, the holder of the applicable Warrant shall be notified by
 the Warrant Agent within three Business Days that the evidence provided has been deemed insufficient
 to permit the exercise of such Warrant and providing a description of the nature of such
 deficiency. In the case where the Company is not satisfied with the provided evidence, it
 shall furnish to the Warrant Agent either (i) the form of proper notice to be delivered to
 establish the required evidence or (ii) a description of the deficiency. Until such time
 as the Company or Warrant Agent, as the case may be, acting reasonably, is satisfied with
 the evidence provided, the holder of the Warrant shall not be permitted to exercise the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Notwithstanding
 any provisions herein, a beneficial owner of Warrants issued in uncertificated form evidenced
 by a security entitlement in respect of Warrants in a book entry registration system who
 desires to exercise his or her Warrants must do so by causing a Depository Participant to
 deliver to a Depository on behalf of the entitlement holder, an irrevocable notice of the
 owner's intention to exercise Warrants in a manner acceptable to the Depository prior
 to the Time of Expiry. Forthwith upon receipt by the Depository of such notice, the Depository
 shall deliver such notice forthwith to the Warrant Agent if the Depository is CDS. Upon receipt
 by the Warrant Agent such notice , which may be delivered up to four (4) Business Days after
 the Time of Expiry, the Warrant Agent shall issue the resulting shares.

4.9 <u>Securities Restrictions</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Warrant Agent shall be entitled to assume that Warrant Shares will be issued pursuant to
 the exercise of any Warrant without violating the securities laws of any applicable jurisdiction
 and without legending any certificate representing the Warrant Shares unless the Warrant
 Agent has received notice in writing from the Company stating otherwise and setting forth
 the restrictions on the exercise of the Warrants.

(2) Neither
 the Company nor the Warrant Agent shall effect any exercise of a Warrant, and a Warrantholder
 shall not have the right to exercise any portion of a Warrant, pursuant to ARTICLE 4 or otherwise,
 to the extent that, after giving effect to such issuance after exercise as set forth on the
 Exercise Form, the Warrantholder (and with respect to any Warrantholder, collectively, any
 such Warrantholder's affiliates, any persons or entities acting as a "group"
 together with such Warrantholder with respect to the Subordinate Voting Shares for purposes
 of Section 13(d) of the Exchange Act, and any other Persons whose beneficial ownership of
 the Subordinate Voting Shares would be aggregated with such Warrantholder for purposes of
 Section 13(d) off the Exchange Act (such persons, "**Attribution Parties** ")),
 would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).
 For purposes of the foregoing sentence, the number of Subordinate Voting Shares beneficially
 owned by the Warrantholder and its Attribution Parties shall include the number of Subordinate
 Voting Shares issuable upon exercise of a Warrant with respect to which such determination
 is being made, but shall exclude the number of Subordinate Voting Shares that would be issuable
 upon (i) exercise of the remaining, non-exercised portion of a Warrant beneficially owned
 by the Warrantholder or any of its Attribution Parties, and (ii) exercise or conversion of
 the unexercised or unconverted portion of any other securities of the Company (including,
 without limitation, any other Equity Share equivalents), subject to a limitation on conversion
 or exercise analogous to the limitation contained herein, beneficially owned by the Warrantholder
 or any of its Attribution Parties. Except as set forth in the preceding sentence, for purposes
 of this Section 4.9(2), beneficial ownership shall be calculated in accordance with Section
 13(d) of the U.S. Exchange Act and the rules and regulations promulgated thereunder, it being
 acknowledged by the Warrantholder that neither the Warrant Agent nor the Company is representing
 to the Warrantholder that such calculation is in compliance with Section 13(d) of the U.S.
 Exchange Act and the Warrantholder further acknowledges that it is solely responsible for
 any schedules required to be filed in accordance therewith. To the extent that the limitation
 contained in this Section 4.9(2) applies, the determination of whether a Warrant is exercisable
 (in relation to other securities owned by the Warrantholder together with any Attribution
 Parties) and of which portion of a Warrant is exercisable shall be in the sole discretion
 and at the sole responsibility of the Warrantholder, and the submission of an Exercise Form
 shall be deemed to be the Warrantholder's determination of whether a Warrant is exercisable
 (in relation to other securities owned by the Warrantholder together with any Attribution
 Parties) and of which portion of a Warrant is exercisable, in each case subject to the Beneficial
 Ownership Limitation, and neither the Warrant Agent nor the Company shall have any obligation
 to verify or confirm the accuracy of such determination. In addition, a determination as
 to any group status as contemplated above shall be determined in accordance with Section
 13(d) of the U. S. Exchange Act and the rules and regulations promulgated thereunder. For
 purposes of this Section 4.9(2) in determining the number of outstanding Subordinate Voting
 Shares, a Warrantholder may rely on the number of outstanding Subordinate Voting Shares as
 reflected in (A) the Company's most recent periodic or annual report filed with the
 SEC or on SEDAR, as the case may be, (B) a more recent public announcement by the Company,
 or (C) a more recent written notice by the Company or the Company's transfer agent
 setting forth the number of Subordinate Voting Shares outstanding. Upon the written or oral
 request of a Warrantholder, the Company shall, within two trading days, confirm orally and
 in writing to the Warrantholder the number of Subordinate Voting Shares then outstanding.
 In any case, the number of outstanding Subordinate Voting Shares shall be determined after
 giving effect to the conversion or exercise of securities of the Company, including the Warrant
 being exercised, by the Warrantholder or its Attribution Parties since the date as of which
 such number of outstanding Subordinate Voting Shares was reported. The "**Beneficial Ownership Limitation**" shall be 4.99% of the number of Subordinate Voting Shares
 outstanding immediately after giving effect to the issuance of Warrant Shares issuable upon
 exercise of the Warrant in question. The Warrantholder, upon written notice to the Company,
 may increase or decrease the Beneficial Ownership Limitation provisions of this Section 4.9(2),
 provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number
 of Subordinate Voting Shares outstanding immediately after giving effect to the issuance
 of Warrant Shares upon exercise of the Warrant in question held by the Warrantholder and
 the provisions of this Section 4.9(2) shall continue to apply. Any increase in the Beneficial
 Ownership Limitation will not be effective until the sixty-first (61<sup>st</sup>) day after
 such notice is delivered to the Company. The provisions of this paragraph shall be construed
 and implemented in a manner otherwise than in strict conformity with the terms of this Section
 4.9(2) to correct this paragraph (or any portion hereof) that may be defective or inconsistent
 with the intended Beneficial Ownership Limitation herein contained or to make changes or
 supplements necessary or desirable to properly give effect to such limitation. The limitations
 contained in this Section 4.9(2) shall apply to a successor holder of a Warrant. For greater
 certainty, the Warrant Agent will have no responsibility for monitoring the beneficial ownership
 level of the Subordinate Voting Shares held by Warrantholders or their Attribution Parties
 and will have no liability in regards to the determinations made of whether or not a Warrantholder
 or their Attribution Parties would become a beneficial holder in excess of the Beneficial
 Ownership Limitation of the issued and outstanding Subordinate Voting Shares upon exercise
 of their Warrants.

**ARTICLE 5**

**COVENANTS**

5.1 <u>General Covenants of the Company</u> 

The Company represents, warrants and covenants with the Warrant Agent for the benefit of the Warrant Agent and the Warrantholders that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Company will at all times, so long as any Warrants remain outstanding, maintain its existence, unless otherwise inconsistent with
 the fiduciary duties of the board of directors of the Company.

(2) The
 Company is duly authorized to create and issue the Warrants to be issued hereunder and the Warrants, when issued, Authenticated and
 certified, as applicable, will be legal, valid, binding and enforceable obligations of the Company.

(3) The
 Company will use reasonable commercial efforts to ensure that all Subordinate Voting Shares outstanding or issuable from time to
 time (including without limitation the Subordinate Voting Shares issuable on the exercise of the Warrants) continue to be or are
 listed and posted for trading on the Cboe Canada (or such other Canadian stock exchange acceptable to the Company), and to take all
 such reasonable steps and actions to do all such reasonable things that may be required to maintain its status as a "reporting
 issuer" not in default of the requirements of Securities Laws where it is or may, from time to time, be a reporting issuer,
 provided that the Company shall not be required to comply with this Section following the completion of, and this Section shall not
 be construed as limiting or restricting the Company to agree to, a merger, amalgamation, arrangement, business combination, take-over
 bid or like transaction even if the consideration being offered are not securities that are so listed and posted for trading that
 would result in the Company ceasing to be a reporting issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The
 Company will use reasonable commercial efforts to obtain any approval or consent of the Cboe Canada required pursuant to Section
 3.13(4), including seeking shareholder approval, if required, and in connection with such efforts shall execute, file and/or deliver,
 as applicable, all necessary documents, instruments and submissions and take all such other steps as may be necessary under applicable
 Securities Laws or Cboe Canada requirements to obtain such approval or consent.

(5) Subject
 to Section 3.13, the Company will allot and reserve and keep available a sufficient number of Warrant Shares for issuance upon the
 exercise of Warrants issued by the Company.

(6) The
 Company will cause the Warrant Shares from time to time subscribed for pursuant to the Warrants issued by the Company hereunder,
 in the manner herein provided, to be duly issued in accordance with the Warrants and the terms hereof.

(7) The
 Company will cause any certificates representing the Warrant Shares from time to time to be acquired, pursuant to the Warrants in
 the manner herein provided, to be duly issued and delivered in accordance with the Warrants and the terms hereof.

(8) All
 Warrant Shares that shall be issued by the Company upon exercise of the rights provided for herein shall be issued as fully paid
 and non-assessable Subordinate Voting Shares.

(9) The
 Company will perform and carry out all of the acts or things to be done by it as provided in this Indenture.

(10) The
 Company will use its commercially reasonable efforts to cause the Warrant Agent to keep open the register of Warrantholders during
 the Warrant Agent's regular business hours and will not take any action or omit to take any action which would have the effect
 of preventing the Warrantholders from receiving any of the Warrant Shares issuable upon exercise of the Warrants.

(11) The
 Company will promptly notify the Warrant Agent and the Warrantholders in writing of any default under the terms of this Indenture
 which remains unrectified for more than 10 Business Days following its occurrence.

5.2 <u>Securities Qualification Requirements</u> 

If, in the opinion of counsel, any instrument is required to be filed with, or any permission, order or ruling is required to be obtained from, any securities regulatory authority or any other step is required under any federal or provincial law of Canada before the Warrant Shares may be issued or delivered to a Warrantholder, the Company covenants that it will use its commercially reasonable efforts to file such instrument, obtain such permission, order or ruling or take all such other actions, at its expense, as is required or appropriate in the circumstances.

5.3 <u>Warrant Agent's Remuneration and Expenses</u> 

The Company covenants that it will pay to the Warrant Agent from time to time reasonable remuneration for its services hereunder and will pay or reimburse the Warrant Agent upon its request for all reasonable expenses and disbursements of the Warrant Agent in the administration or execution of the duties and obligations hereby created (including the reasonable compensation and the disbursements of its counsel and all other advisers, experts, accountants and assistants not regularly in its employ) both before any default hereunder and thereafter until all duties of the Warrant Agent hereunder shall be finally and fully performed. Any amount owing hereunder and

remaining unpaid after 30 days from the invoice date will bear interest at the then current rate charged by the Warrant Agent against unpaid invoices and shall be payable upon demand. This Section shall survive the resignation or removal of the Warrant Agent and/or the termination of this Indenture.

5.4 <u>Performance of Covenants by Warrant Agent</u> 

Subject to Section 9.7, if the Company shall fail to perform any of its covenants contained in this Indenture and the Company has not rectified such failure within 10 Business Days after receiving written notice from the Warrant Agent of such failure, the Warrant Agent may notify the Warrantholders of such failure on the part of the Company or may itself perform any of the said covenants capable of being performed by it, but shall be under no obligation to perform said covenants. All reasonable sums expended or disbursed by the Warrant Agent in so doing shall be repayable as provided in Section 5.3. No such performance, expenditure or advance by the Warrant Agent shall be deemed to relieve the Company of any default hereunder or of its continuing obligations under the covenants herein contained.

**ARTICLE 6**

**ENFORCEMENT**

6.1 <u>Suits by Warrantholders</u> 

Subject to Section 7.10, all or any of the rights conferred upon a Warrantholder by the terms of the Warrants held by him and/or this Indenture may be enforced by such Warrantholder by appropriate legal proceedings but without prejudice to the right that is hereby conferred upon the Warrant Agent to proceed in its own name to enforce each and all of the provisions herein contained for the benefit of the holders of the Warrants from time to time outstanding.

6.2 <u>Limitation of Liability</u> 

The obligations hereunder (including without limitation under subsection 9.7(5)) are not personally binding upon, nor shall resort hereunder be had to, the private property of any of the past, present or future directors or shareholders of the Company or any of the past, present or future officers, employees or agents of the Company, and only the property of the Company (or any successor person) shall be bound in respect hereof.

**ARTICLE 7**

**MEETINGS OF WARRANTHOLDERS**

7.1 <u>Right to Convene Meetings</u> 

The Warrant Agent may at any time and from time to time, and shall on receipt of a written request of the Company or of a Warrantholders' Request, convene a meeting of the Warrantholders provided that the Warrant Agent has been provided with sufficient funds and is indemnified to its reasonable satisfaction by the Company or by the Warrantholders signing such Warrantholders' Request against the costs, charges, expenses and liabilities that may be incurred in connection with the calling and holding of such meeting. If within 10 Business Days after the receipt of a written request of the Company or a Warrantholders' Request, and receipt of funding and indemnity given as aforesaid, the Warrant Agent fails to give the requisite notice specified in Section 7.2 to convene a meeting, the Company or such Warrantholders, as the case may be, may convene such meeting. Every such meeting shall be held in the City of Vancouver, British Columbia or at such other place as may be approved or determined by the Warrant Agent.

7.2 <u>Notice</u> 

At least 21 days' prior notice of any meeting of Warrantholders shall be given to the Warrantholders at the expense of the Company in the manner provided for in Section 10.2 and a copy of such notice shall be delivered to the Warrant Agent unless the meeting has been called by it, and to the Company unless the meeting has been called by it.

Such notice shall state the date, time and place of the meeting, the general nature of the business to be transacted and shall contain such information as is reasonably necessary to enable the Warrantholders to make a reasoned decision on the matter, but it shall not be necessary for any such notice to set out the terms of any resolution to be proposed or any of the provisions of this ARTICLE 7. The notice convening any such meeting may be signed by an appropriate officer of the Warrant Agent or of the Company or the person designated by such Warrantholders, as the case may be.

7.3 <u>Chairman</u> 

The Warrant Agent and the Company may nominate in writing an individual (who need not be a Warrantholder) to be chairman of the meeting and if no individual is so nominated, or if the individual so nominated is not present within 15 minutes after the time fixed for the holding of the meeting, the Warrantholders present in person or by proxy shall appoint an individual present to be chairman of the meeting. The chairman of the meeting need not be a Warrantholder.

7.4 <u>Quorum</u> 

Subject to the provisions of Section 7.11, at any meeting of the Warrantholders a quorum shall consist of at least two Warrantholders present in person or represented by proxy and representing at least 25% of the aggregate number of Warrants then outstanding. If a quorum of the Warrantholders shall not be present within one-half hour from the time fixed for holding any meeting, the meeting, if summoned by the Warrantholders or on a Warrantholders' Request, shall be dissolved; but in any other case the meeting shall be adjourned to the same day in the next week (unless such day is not a Business Day in which case it shall be adjourned to the next following Business Day) at the same time and place to the extent possible and, subject to the provisions of Section 7.11, no notice of the adjournment need be given. Any business may be brought before or dealt with at an adjourned meeting that might have been dealt with at the original meeting in accordance with the notice calling the same. At the adjourned meeting the Warrantholders present in person or represented by proxy shall form a quorum and may transact the business for which the meeting was originally convened, notwithstanding that they may not represent at least 20% of the aggregate number of Warrants then unexercised and outstanding. No business shall be transacted at any meeting, except an adjourned meeting as described above, unless a quorum is present at the commencement of business.

7.5 <u>Power to Adjourn</u> 

The chairman of any meeting at which a quorum of the Warrantholders is present may, with the consent of the meeting, adjourn any such meeting, and no notice of such adjournment need be given except such notice, if any, as the meeting may prescribe.

7.6 <u>Show of Hands</u> 

Every question submitted to a meeting shall be decided in the first place by a majority of the votes given on a show of hands except that votes on an extraordinary resolution shall be given in the manner hereinafter provided. At any such meeting, unless a poll is duly demanded as herein provided, a declaration by the chairman that a resolution has been carried or carried unanimously or by a particular majority or lost or not carried by a particular majority shall be conclusive evidence of the fact.

7.7 <u>Poll and Voting</u> 

On every extraordinary resolution, and when demanded by the chairman or by one or more of the Warrantholders acting in person or by proxy on any other question submitted to a meeting and after a vote by show of hands, a poll shall be taken in such manner as the chairman shall direct. Questions other than those required to be determined by extraordinary resolution shall be decided by a majority of the votes cast on the poll. On a show of hands, every person who is present and entitled to vote, whether as a Warrantholder or as proxy for one or more absent Warrantholders, or both, shall have one vote. On a poll, each Warrantholder present in person or represented by a proxy duly appointed by instrument in writing shall be entitled to one vote in respect of each whole Warrant then held by him. A proxy need not be a Warrantholder. The chairman of any meeting shall be entitled, both on a show of hands and on a poll, to vote in respect of the Warrants, if any, held or represented by him.

7.8 <u>Regulations</u> 

Subject to the provisions of this Indenture, the Warrant Agent or the Company with the approval of the Warrant Agent may from time to time make and from time to time vary such regulations as it shall consider necessary or appropriate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for
 the deposit of instruments appointing proxies at such place and time as the Warrant Agent, the Company or the Warrantholders convening
 the meeting, as the case may be, may in the notice convening the meeting direct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for
 the deposit of instruments appointing proxies at some approved place other than the place at which the meeting is to be held and
 enabling particulars of such instruments appointing proxies to be mailed or forwarded via facsimile before the meeting to the Company
 or to the Warrant Agent at the place where the same is to be held and for the voting of proxies so deposited as though the instruments
 themselves were produced at the meeting;

(c) for
 the form of instrument appointing a proxy and the manner in which the form of proxy may be executed; and

(d) generally
 for the calling of meetings of Warrantholders and the conduct of business thereat including setting a record date for Warrantholders
 entitled to receive notice of or to vote at such meeting.

Any regulations so made shall be binding and effective and the votes given in accordance therewith shall be valid and shall be counted. Save as such regulations may provide, the only persons who shall be recognized at any meeting as a Warrantholder, or be entitled to vote or be present at the meeting in respect thereof (subject to Section 7.9), shall be Warrantholders or persons holding proxies of Warrantholders.

7.9 <u>Company, Warrant Agent and Counsel may be Represented</u> 

The Company, the Warrantholders and the Warrant Agent, by their respective directors, officers and employees and the counsel for each of the Company, the Warrantholders and the Warrant Agent may attend any meeting of the Warrantholders and speak thereat but shall not be entitled to vote unless in their capacities as Warrantholders or proxies therefor.

7.10 <u>Powers Exercisable by Extraordinary Resolution</u> 

In addition to all other powers conferred upon them by any other provisions of this Indenture or by law, the Warrantholders at a meeting shall have the power, subject to the Cboe Canada's approval (if applicable), exercisable from time to time by extraordinary resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to
 agree to any modification, alteration, compromise or arrangement of the rights of Warrantholders and/or the Warrant Agent in its
 capacity as warrant agent hereunder (subject to the Warrant Agent's approval) or on behalf of the Warrantholders against the
 Company, whether such rights arise under this Indenture or the Warrants or otherwise;

(b) to
 amend, modify or repeal any extraordinary resolution previously passed or sanctioned by the Warrantholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to
 direct or authorize the Warrant Agent (subject to the Warrant Agent receiving funding and indemnity to its satisfaction) to enforce
 any of the covenants on the part of the Company contained in this Indenture or the Warrants or to enforce any of the rights of the
 Warrantholders in any manner specified in such extraordinary resolution or to refrain from enforcing any such covenant or right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to
 waive, authorize and direct the Warrant Agent to waive any default on the part of the Company in complying with any provisions of
 this Indenture or the Warrants either unconditionally or upon any conditions specified in such extraordinary resolution;

(e) to
 restrain any Warrantholder from taking or instituting any suit, action or proceeding against the Company for the enforcement of any
 of the covenants on the part of the Company contained in this Indenture or the Warrants or to enforce any of the rights of the Warrantholders;

(f) to
 direct any Warrantholder who, as such, has brought any suit, action or proceeding to stay or discontinue or otherwise deal with any
 such suit, action or proceeding, upon payment of the costs, charges and expenses reasonably and properly incurred by such Warrantholder
 in connection therewith;

(g) to
 assent to any change in or omission from the provisions contained in this Indenture or any ancillary or supplemental instrument which
 may be agreed to by the Company, and to authorize the Warrant Agent to concur in and execute any ancillary or supplemental indenture
 embodying the change or omission;

(h) with
 the consent of the Company, such consent not to be unreasonably withheld, to remove the Warrant Agent or its successor in office
 and to appoint a new warrant agent or warrant agents to take the place of the Warrant Agent so removed; and

(i) to
 assent to any compromise or arrangement with any creditor or creditors or any class or classes of creditors, whether secured or otherwise,
 and with holders of any shares or other securities of the Company.

7.11 <u>Meaning of "Extraordinary Resolution"</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 expression "**extraordinary resolution**" when used in this Indenture means,
 subject as hereinafter in this Section 7.11 and in Section 7.14 provided, a resolution proposed
 at a meeting of Warrantholders duly convened for that purpose and held in accordance with
 the provisions of this ARTICLE 7 at which there are present in person or by proxy at least
 two Warrantholders representing at least 25% of the aggregate number of all the then outstanding
 Warrants and passed by the affirmative votes of Warrantholders representing not less than
 66<sup>⅔</sup>% of the aggregate number of all the then outstanding Warrants represented
 at the meeting and voted on the poll for such resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If,
 at any meeting called for the purpose of passing an extraordinary resolution, Warrantholders
 representing at least 20% of the aggregate number of all the then outstanding Warrants are
 not present in person or by proxy within one-half hour after the time appointed for the meeting,
 then the meeting, if convened by Warrantholders or on a Warrantholders' Request, shall
 be dissolved; but in any other case it shall stand adjourned to such day, being not less
 than 10 Business Days later, and to such place and time as may be appointed by the chairman.
 Not less than three Business Days prior notice shall be given of the time and place of such
 adjourned meeting provided by press release of the Company. Such notice shall state that
 at the adjourned meeting the Warrantholders present in person or represented by proxy shall
 form a quorum but it shall not be necessary to set forth the purposes for which the meeting
 was originally called or any other particulars. At the adjourned meeting the Warrantholders
 present in person or represented by proxy shall form a quorum and may transact the business
 for which the meeting was originally convened and a resolution proposed at such adjourned
 meeting and passed by the requisite vote as provided in subsection 7.11(1) shall be an extraordinary
 resolution within the meaning of this Indenture notwithstanding that Warrantholders representing
 at least 20% of all the then outstanding Warrants are not present in person or represented
 by proxy at such adjourned meeting.

(3) Votes
 on an extraordinary resolution shall always be given on a poll and no demand for a poll on
 an extraordinary resolution shall be necessary.

7.12 <u>Powers Cumulative</u> 

It is hereby declared and agreed that any one or more of the powers or any combination of the powers in this Indenture stated to be exercisable by the Warrantholders by extraordinary resolution or otherwise may be exercised from time to time and the exercise of any one or more of such powers or any combination of powers from time to time shall not be deemed to exhaust the right of the Warrantholders to exercise such powers or combination of powers then or thereafter from time to time.

7.13 <u>Minutes</u> 

Minutes of all resolutions and proceedings at every meeting of Warrantholders as aforesaid shall be made and duly entered in books to be provided for that purpose by the Company and any minutes as aforesaid, if signed by the chairman of the meeting at which resolutions were passed or proceedings had, or by the chairman of the next succeeding meeting of the Warrantholders, shall be prima facie evidence of the matters therein stated and, until the contrary is proved, every meeting, in respect of the proceedings of which minutes shall have been made, shall be deemed to have been duly convened and held, and all resolutions passed thereat or proceedings taken, to have been duly passed and taken.

7.14 <u>Instruments in Writing</u> 

All actions that may be taken and all powers that may be exercised by the Warrantholders at a meeting held as provided in this Article 7 also may be taken and exercised by Warrantholders representing a majority, or in the case of an extraordinary resolution at least 66<sup>⅔</sup>%, of the aggregate number of all the then outstanding Warrants by an instrument in writing signed in one or more counterparts by such Warrantholders in person or by attorney duly appointed in writing, and the expression "extraordinary resolution" when used in this Indenture shall include an instrument so signed.

7.15 <u>Binding Effect of Resolutions</u> 

Every resolution and every extraordinary resolution passed in accordance with the provisions of this ARTICLE 7 at a meeting of Warrantholders shall be binding upon all Warrantholders, whether present at or absent from such meeting, and every instrument in writing signed by Warrantholders in accordance with Section 7.14 shall be binding upon all the Warrantholders, whether signatories thereto or not, and each and every Warrantholder and the Warrant Agent (subject to the provisions for indemnity herein contained) shall be bound to give effect accordingly to every such resolution and instrument in writing.

7.16 <u>Holdings by the Company or Subsidiaries of the Company Disregarded</u> 

In determining whether Warrantholders are present at a meeting of Warrantholders for the purpose of determining a quorum or have concurred in any consent, waiver, extraordinary resolution, Warrantholders' Request or other action under this Indenture, Warrants owned legally or beneficially by the Company or its Subsidiaries or in partnership of which the Company is directly or indirectly a party to shall be disregarded. The Company shall provide, upon the written request of the Warrant Agent, a certificate as to the registration particulars of any Warrants held by the Company or its Subsidiaries or in partnership of which the Company is directly or indirectly a party.

**ARTICLE 8**

**SUPPLEMENTAL INDENTURES AND SUCCESSOR COMPANIES**

8.1 <u>Provision for Supplemental Indentures for Certain Purposes</u> 

From time to time the Company and the Warrant Agent may, subject to the provisions hereof and the Cboe Canada's approval (if applicable), and they shall, when so required hereby, execute and deliver by their proper officers, indentures or instruments supplemental hereto, which thereafter shall form part hereof, for any one or more or all of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) providing
 for the issuance of additional Warrants hereunder and any consequential amendments hereto as may be required by the Warrant Agent,
 relying on the advice of counsel;

(b) setting
 forth or giving effect to adjustments in the application of ARTICLE 3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) adding
 to the provisions hereof such additional covenants and enforcement provisions as, in the opinion of counsel are necessary or advisable,
 provided that the same are not in the opinion of the Warrant Agent, relying on the advice of counsel, prejudicial to the interests
 of the Warrantholders as a group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) giving
 effect to any extraordinary resolution passed as provided in ARTICLE 7;

(e) making
 such provisions not inconsistent with this Indenture as may be necessary or desirable with respect to matters or questions arising
 hereunder provided that such provisions are not, in the opinion of the Warrant Agent, relying on the advice of counsel, prejudicial
 to the interests of the Warrantholders as a group;

(f) adding
 to or amending the provisions hereof in respect of the transfer of Warrants, making provision for the exchange of Warrants and making
 any modification in the form of the Warrant Certificate that does not affect the substance thereof;

(g) amending
 any of the provisions of this Indenture or relieving the Company from any of the obligations, conditions or restrictions herein contained,
 provided that no such amendment or relief shall be or become operative or effective if, in the opinion of the Warrant Agent, relying
 on the advice of counsel, such amendment or relief impairs any of the rights of the Warrantholders as a group or of the Warrant Agent,
 and provided further that the Warrant Agent may in its sole discretion decline to enter into any supplemental indenture that in its
 opinion may not afford adequate protection to the Warrant Agent when the same shall become operative;

(h) providing
 added protection or benefit to the Company or the Warrantholders (as a group); and

(i) for
 any other purpose not inconsistent with the terms of this Indenture, including the correction or rectification of any ambiguities,
 defective or inconsistent provisions, errors, mistakes or clerical omissions herein, provided that, in the opinion of the Warrant
 Agent, relying on the advice of counsel, the rights of the Warrant Agent and the Warrantholders as a group are in no way prejudiced
 thereby.

8.2 <u>Successor Companies</u> 

In the case of the amalgamation, consolidation, arrangement, merger or transfer of the undertaking or assets of the Company as an entirety or substantially as an entirety to another person (a "**successor company**"), the successor company resulting from the amalgamation, consolidation, arrangement, merger or transfer (if not the Company) shall be bound by the provisions hereof and all obligations for the due and punctual performance and observance of each and every covenant and obligation contained in this Indenture to be performed by the Company and the successor company shall by supplemental indenture satisfactory in form and substance to the Warrant Agent and executed and delivered by the successor company to the Warrant Agent, expressly assume those obligations.

**ARTICLE 9**

**CONCERNING THE WARRANT AGENT**

9.1 <u>Indenture Legislation</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If
 and to the extent that any provision of this Indenture limits, qualifies or conflicts with a mandatory requirement of Applicable
 Legislation, such mandatory requirement shall prevail.

(2) The
 Company and the Warrant Agent agree that each will at all times in relation to this Indenture and any action to be taken hereunder
 observe and comply with and be entitled to the benefit of Applicable Legislation.

9.2 <u>Rights and Duties of Warrant Agent</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Warrant Agent accepts the duties and responsibilities under this Indenture, solely as custodian, bailee and agent. No trust is intended
 to be, or is or will be, created hereby and the Warrant Agent shall owe no duties hereunder as a trustee.

(2) In
 the exercise of the rights and duties prescribed or conferred by the terms of this Indenture, the Warrant Agent shall act honestly
 and in good faith and shall exercise the degree of care, diligence and skill that a reasonably prudent warrant agent would exercise
 in comparable circumstances. No provision of this Indenture shall be construed to relieve the Warrant Agent from liability for its
 own gross negligence, wilful misconduct, bad faith or fraud.

(3) The
 Warrant Agent shall not be bound to do or take any act, action or proceeding for the enforcement of any of the obligations of the
 Company under this Indenture unless and until it shall have received a Warrantholders' Request specifying the act, action or
 proceeding that the Warrant Agent is requested to take. The obligation of the Warrant Agent to commence or continue any act, action
 or proceeding for the purpose of enforcing any rights of the Warrant Agent or the Warrantholders hereunder shall be conditional upon
 the Warrantholders furnishing, when required by notice in writing by the Warrant Agent, sufficient funds to commence or continue
 such act, action or proceeding and an indemnity reasonably satisfactory to the Warrant Agent and its counsel to protect and hold
 harmless the Warrant Agent, its officers, directors, employees, agents, successors and assigns against the costs, charges and expenses
 and liabilities to be incurred thereby and any loss and damage it may suffer by reason thereof. None of the provisions contained
 in this Indenture shall require the Warrant Agent to expend or risk its own funds or otherwise incur financial liability in the performance
 of any of its duties or in the exercise of any of its rights or powers unless indemnified and funded as aforesaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The
 Warrant Agent may, before commencing any act, action or proceeding, or at any time during the continuance thereof require the Warrantholders
 at whose instance it is acting to deposit with the Warrant Agent the Warrants held by them, for which Warrants the Warrant Agent
 shall issue receipts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Every
 provision of this Indenture that, by its terms, relieves the Warrant Agent of liability or entitles it to rely upon any evidence
 submitted to it is subject to the provisions of Applicable Legislation.

(6) The
 Warrant Agent shall not be bound to give any notice or do or take any act, action or proceeding by virtue of the powers conferred
 on it hereunder unless and until it shall have been required to do so under the terms hereof; nor shall the Warrant Agent be required
 to take notice of any default hereunder, unless and until notified in writing of such default, which notice shall specifically set
 out the default desired to be brought to the attention of the Warrant Agent and in the absence of such notice the Warrant Agent may
 for all purposes of this Indenture conclusively assume that no default has occurred or been made in the performance or observance
 of the representations, warranties and covenants, agreements or conditions herein contained. Any such notice shall in no way limit
 any discretion herein given to the Warrant Agent to determine whether or not the Warrant Agent shall take action with respect to
 any default.

(7) In
 this Indenture, whenever confirmations or instructions are required to be given to the Warrant Agent, in order to be valid, such
 confirmations and instructions shall be in writing.

9.3 <u>Evidence, Experts and Advisers</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) In
 addition to the reports, certificates, opinions and other evidence required by this Indenture, the Company shall furnish to the Warrant
 Agent such additional evidence of compliance with any provision hereof and in such form as may be prescribed by Applicable Legislation
 or as the Warrant Agent may reasonably require by written notice to the Company.

(2) In
 the exercise of its rights and duties hereunder, the Warrant Agent may, if it is acting in good faith, act and rely absolutely as
 to the truth of the statements and the accuracy of the opinions expressed therein, upon statutory declarations, opinions, reports,
 written requests, consents, or orders of the Company, certificates of the Company or other evidence furnished to the Warrant Agent
 pursuant to any provision hereof or of Applicable Legislation or pursuant to a request of the Warrant Agent. The Warrant Agent shall
 be under no responsibility in respect of the validity of this Indenture or the execution and delivery hereof by or on behalf of the
 Company or in respect of the validity or the execution of any Warrant Certificate by the Company and issued hereunder, nor shall
 it be responsible for any breach by the Company of any covenant or condition contained in this Indenture or in any such Warrant Certificate;
 nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any
 securities to be issued upon the right to acquire provided for in this Indenture and/or in any Warrant or as to whether any securities
 will when issued be duly authorized or be validly issued and fully paid and non-assessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Whenever
 it is provided in this Indenture or under Applicable Legislation that the Company shall deposit with the Warrant Agent resolutions,
 certificates, reports, opinions, requests, orders or other documents, it is intended that the truth, accuracy and good faith on the
 effective date thereof and the facts and opinions stated in all such documents so deposited shall, in each and every such case, be
 conditions precedent to the right of the Company to have the Warrant Agent take the action to be based thereon.

(4) Whenever
 Applicable Legislation requires that evidence referred to in subsection 9.3(1) be in the form of a statutory declaration, the Warrant
 Agent may accept the statutory declaration in lieu of a certificate of the Company required by any provision hereof. Any such statutory
 declaration may be made by one or more duly authorized representatives of the Company and may be relied upon by the Warrant Agent
 in good faith without further inquiry.

(5) Proof
 of the execution of an instrument in writing, including a Warrantholders' Request, by any Warrantholder may be made by a certificate
 of a notary public or other person with similar powers that the person signing such instrument acknowledged to him the execution
 thereof, or by an affidavit of a witness to such execution or in any other manner which the Warrant Agent may consider adequate and
 in respect of a corporate Warrantholder, shall include a certificate of incumbency of such Warrantholder together with a certified
 resolution authorizing the person who signs such instrument to sign such instrument.

(6) The
 Warrant Agent may act and rely and shall be protected in acting and relying upon any resolution, certificate, statement, instrument,
 opinion, report, notice, request, consent, order, letter, or other paper document believed by it to be genuine and to have been signed,
 sent or presented by or on behalf of the proper party or parties. The Warrant Agent has sole discretion and shall be protected in
 acting and relying upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, letter
 or other paper document received in facsimile or e-mail form.

(7) The
 Warrant Agent may employ or retain such counsel, accountants, engineers, appraisers or other experts or advisers as it may reasonably
 require for the purpose of determining and discharging its duties hereunder and may pay reasonable remuneration for all services
 so performed by any of them, without taxation of costs of any counsel and shall not be responsible for any misconduct or negligence
 on the part of any of them who has been selected with due care by the Warrant Agent. Any reasonable remuneration paid by the Warrant
 Agent shall be paid by the Company in accordance with Section 5.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) The
 Warrant Agent may act and rely and shall be protected in acting and relying in good faith on the opinion or advice of or information
 obtained from any counsel, accountant, appraiser, engineer or other expert or advisor, whether retained or employed by the Company
 or the Warrant Agent, in relation to any matter arising in fulfilling its duties and obligations hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) The
 Warrant Agent may, as a condition precedent to any action to be taken by it under this Indenture,
 require such opinions, statutory declarations, reports, certificates or other evidence as
 it, acting reasonably, considers necessary or advisable in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) The
 Warrant Agent is not required to expend or place its own funds at risk in executing its duties
 and obligations.

9.4 <u>Securities, Documents and Monies Held by Warrant Agent</u> 

Any securities, documents of title, monies or other instruments that may at any time be held by the Warrant Agent subject to the duties and obligations hereof, for the benefit of the Company, may be placed in the deposit vaults of the Warrant Agent or of any Schedule I Canadian chartered bank for safekeeping with any such bank (an "**Approved Bank**"). All interest or other income received from the Warrant Agent in respect of such deposits and investments shall, subject to Section 5.3, belong to the Company and shall be paid to the Company upon discharge of this Indenture. All amounts held by the Warrant Agent pursuant to this Agreement shall be held by the Warrant Agent for the Company and the delivery of the funds to the Warrant Agent shall not give rise to a debtor-creditor or other similar relationship. The amounts held by the Warrant Agent are at the sole risk of the Company and, without limiting the generality of the foregoing, but subject to Section 9.2(2), the Warrant Agent shall have no responsibility or liability for any diminution of the funds which may result from any deposit made with an Approved Bank pursuant to this Section, including any losses resulting from a default by the Approved Bank or other credit losses (whether or not resulting from such a default). The parties hereto acknowledge and agree that the Warrant Agent will have acted prudently in depositing the funds at any Approved Bank, and that the Warrant Agent is not required to make further inquiries in respect of any such bank. The Warrant Agent may hold cash balances constituting part or all such monies and need not invest same. The Warrant Agent shall not be liable to account for any profit to any parties to this Indenture or to any other person or entity.

9.5 <u>Actions by Warrant Agent to Protect Interests</u> 

Subject to the provisions of this Indenture and Applicable Legislation, the Warrant Agent shall have the power to institute and to maintain such actions and proceedings as it may consider necessary or expedient to preserve, protect or enforce its interests and the interests of the Warrantholders.

9.6 <u>Warrant Agent not Required to Give Security</u> 

The Warrant Agent shall not be required to give any bond or security in respect of the execution of the duties and obligations of this Indenture or otherwise.

9.7 <u>Protection of Warrant Agent</u> 

By way of supplement to the provisions of any law for the time being relating to warrant agents, it is expressly declared and agreed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Warrant Agent shall not be liable for or by reason of any representations, statements of
 fact or recitals in this Indenture or in the Warrants (except the representation contained
 in Section 9.9 or in the certificate of the Warrant Agent on the Warrants) or be required
 to verify the same and all such statements of fact or recitals are and shall be deemed to
 be made by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Nothing
 herein contained shall impose any obligation on the Warrant Agent to see to or to require
 evidence of the registration or filing (or renewal thereof) of this Indenture or any instrument
 ancillary or supplemental hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 Warrant Agent shall not be bound to give notice to any person or persons of the execution
 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The
 Warrant Agent shall not incur any liability or responsibility whatsoever or be in any way
 responsible for the consequence of any breach on the part of the Company of any of the covenants
 or warranties herein contained or of any acts of any directors, officers, employees, agents
 or servants of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Without
 limiting any protection or indemnity of the Warrant Agent under any other provision hereof,
 or otherwise at law, the Company hereby agrees to indemnify and hold harmless the Warrant
 Agent, its affiliates and their current and former directors, officers, agents, employees,
 successors and assigns (the "**Indemnified Parties**") from and against any
 and all liabilities whatsoever, losses, damages, penalties, claims, demands, actions, suits,
 proceedings, costs, charges, assessments, judgments, expenses and disbursements, including
 reasonable legal or advisor fees and disbursements, of whatever kind and nature which may
 at any time be imposed on, incurred by or asserted against the Indemnified Parties, or any
 of them, whether at law or in equity, in any way caused by or arising, directly or indirectly,
 in respect of any act, deed, matter or thing whatsoever made, done acquiesced in or omitted
 in or about or in relation to the execution of the Indemnified Parties' duties, or
 any other services that Warrant Agent may provide in connection with or in any way relating
 to this Indenture. The Company agrees that its liability hereunder shall be absolute and
 unconditional regardless of the correctness of any representations of any third parties and
 regardless of any liability of third parties to the Indemnified Parties, and shall accrue
 and become enforceable without prior demand or any other precedent action or proceeding;
 provided that the Company shall not be required to indemnify the Indemnified Parties in the
 event of the gross negligence, wilful misconduct, bad faith or fraud of the Warrant Agent.
 This provision shall survive the resignation or removal of the Warrant Agent, or the termination
 or discharge of this Indenture. The Warrant Agent shall not be under any obligation to prosecute
 or defend any action or suit in respect of this Indenture which, in the opinion of its counsel,
 may involve it in expense or liability, unless the Company shall, so often as required, furnish
 the Warrant Agent with satisfactory indemnity and funding against such expense or liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The
 Warrant Agent shall retain the right not to act and shall not be liable for refusing to act
 if, due to a lack of information or for any other reason whatsoever, the Warrant Agent, in
 its sole judgement, determines that such act might cause it to be in non-compliance with
 any applicable anti-money laundering, anti-terrorist or economic sanctions legislation, regulation
 or guideline. Further, should the Warrant Agent, in its sole judgement, determine at any
 time that its acting under this Warrant Indenture has resulted in its being in non-compliance
 with any applicable anti- money laundering, anti-terrorist or economic sanctions legislation,
 regulation or guideline, then it shall have the right to resign on 10 days' written
 notice to the Company provided: (i) that the Warrant Agent's written notice shall describe
 the circumstances of such non-compliance; and (ii) that if such circumstances are rectified
 to the Warrant Agent's satisfaction within such 10-day period, then such resignation
 shall not be effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The
 Warrant Agent shall not be liable for any error in judgment or for any act done or step taken
 or omitted by it in good faith or for any mistake, in fact or law, or for anything which
 it may do or refrain from doing in connection herewith except arising out of its own gross
 negligence, bad faith, willful misconduct or fraud.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Notwithstanding
 the foregoing, or any other provision of this Indenture, any liability of the Warrant Agent
 shall be limited, in the aggregate, to the amount of annual retainer fees paid by the Company
 to the Warrant Agent under this Indenture in the 12 months immediately prior to the Warrant
 Agent receiving the first notice of the claim. Notwithstanding any other provision of this
 Indenture, and whether such losses or damages are foreseeable or unforeseeable, the Warrant
 Agent shall not be liable under any circumstances whatsoever for any (a) breach by any other
 party of Securities Laws or other rule of any securities regulatory authority, (b) lost profits
 or (c) special, indirect, incidental, consequential, exemplary, aggravated or punitive losses
 or damages.

9.8 <u>Replacement of Warrant Agent</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Warrant Agent may resign its appointment and be discharged from all further duties and liabilities
 hereunder by giving to the Company not less than 60 days prior notice in writing or such
 shorter prior notice as the Company may accept as sufficient. The Warrantholders by extraordinary
 resolution shall have the power at any time to remove the existing Warrant Agent and to appoint
 a new Warrant Agent. In the event of the Warrant Agent resigning or being removed as aforesaid
 or being dissolved, becoming bankrupt, going into liquidation or otherwise becoming incapable
 of acting hereunder, the Company shall forthwith appoint a new Warrant Agent unless a new
 Warrant Agent has already been appointed by the Warrantholders; failing such appointment
 by the Company, the retiring Warrant Agent or any Warrantholder may apply to a judge of the
 Province of British Columbia at the Company's expense, on such notice as such judge
 may direct, for the appointment of a new Warrant Agent; but any new Warrant Agent so appointed
 by the Company or by the Court shall be subject to removal as aforesaid by the Warrantholders.
 Any new Warrant Agent appointed under any provision of this Section 9.8 shall be a Company
 authorized to carry on the business of a transfer agent or a trust company in the Province
 of British Columbia and, if required by Applicable Legislation of any other province, in
 such other province. On any such appointment the new Warrant Agent shall be vested with the
 same powers, rights, duties and responsibilities as if it had been originally named herein
 as Warrant Agent without any further assurance, conveyance, act or deed; but there shall
 be immediately executed, at the expense of the Company, all such conveyances or other instruments
 as may, in the opinion of counsel, be necessary or advisable for the purpose of assuring
 the same to the new Warrant Agent, provided that any resignation or removal of the Warrant
 Agent and appointment of a successor Warrant Agent shall not become effective until the successor
 Warrant Agent shall have executed an appropriate instrument accepting such appointment and,
 at the request of the Company, the predecessor Warrant Agent, upon payment of its outstanding
 remuneration and expenses, shall execute and deliver to the successor Warrant Agent an appropriate
 instrument transferring to such successor Warrant Agent all rights and powers of the Warrant
 Agent hereunder and all securities, documents of title and other instruments and all monies
 and properties held by the Warrant Agent hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Upon
 the appointment of a successor Warrant Agent, the Company shall promptly notify the Warrantholders
 thereof in the manner provided for in Section 10.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any
 Company into or with which the Warrant Agent may be merged or consolidated or amalgamated,
 or to which all or substantially all of the corporate trust business is sold or any Company
 succeeding to the stock transfer business of the Warrant Agent, shall be the successor to
 the Warrant Agent hereunder without any further act on its part or of any of the parties
 hereto, provided that such Company would be eligible for appointment as a new Warrant Agent
 under subsection 9.8(1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Any
 Warrants Authenticated or certified but not delivered by a predecessor Warrant Agent may
 be Authenticated or certified by the new or successor Warrant Agent in the name of the new
 or successor Warrant Agent.

9.9 <u>Acceptance of Duties and Obligations</u> 

The Warrant Agent hereby accepts the duties and obligations in this Indenture declared and provided for and agrees to perform the same upon the terms and conditions herein set forth and agrees to hold all rights, interests and benefits contained herein on behalf of those persons who become holders of Warrants from time to time issued under this Indenture.

9.10 <u>Warrant Agent not to be Appointed Receiver</u> 

The Warrant Agent and any person related to the Warrant Agent shall not be appointed a receiver or receiver and manager or liquidator of all or any part of the assets or undertaking of the Company or any Subsidiary or any partnership of which the Company is directly or indirectly involved.

9.11 <u>Authorization to Carry on Business</u> 

The Warrant Agent represents to the Company that it is registered to carry on the business of a transfer agent and warrant agent under Applicable Legislation in the Province of British Columbia.

9.12 <u>Securities Exchange Commission Certification</u> 

The Company represents and warrants that it is filing with the SEC and has delivered to the Warrant Agent an Officers' Certificate certifying such "reporting issuer" status and other information as the Warrant Agent has requested, including, but not limited to, the Central Index Key that has been assigned for filing purposes. The Company understands that the Warrant Agent is relying upon the foregoing representation, warranty and covenant in order to meet certain SEC obligations with respect to those clients who are filing with the SEC.

**ARTICLE 10**

**GENERAL**

10.1 <u>Notice to the Company and the Warrant Agent</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Unless
 herein otherwise expressly provided, any notice to be given hereunder to the Company or the
 Warrant Agent shall be deemed to be validly given if delivered, if sent by registered letter,
 postage prepaid or if transmitted by facsimile or email to the following addresses or facsimile
 numbers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 to the Company, to:

VERSES AI INC.

205 - 810 Quayside Drive

New Westminster, British Columbia

V3M 6B9

Attention: James Christodoulou, Chief Financial Officer

Email: <u>james.christodoulou@verses.ai</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 to the Warrant Agent, to:

ENDEAVOR TRUST CORPORATION

Suite 702, 777 Hornby Street,

Vancouver, British Columbia

V6Z 1S4

Attention: Securities Processing

Email: <u>admin@endeavortrust.com</u>

and any notice given in accordance with the foregoing shall be deemed to have been received on the date of delivery if that date is a Business Day or, if mailed, on the fifth Business Day following the date of the postmark on such notice or, if transmitted by facsimile or email, on the next Business Day following the date of transmission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 Company or the Warrant Agent, as the case may be, may from time to time notify the other
 in the manner provided in subsection 10.1(1) of a change of address which, from the effective
 date of such notice and until changed by like notice, shall be the address of the Company
 or the Warrant Agent, as the case may be, for all purposes of this Indenture. A copy of any
 notice of change of address given pursuant to this subsection 10.1(2) shall be available
 for inspection at the principal office of the Warrant Agent in the City of Vancouver, British
 Columbia by Warrantholders during normal business hours.

(3) If,
 by reason of a strike, lockout or other work stoppage, actual or threatened, involving postal
 employees, any notice to be given to the Warrant Agent or to the Company hereunder could
 reasonably be considered unlikely to reach its destination, the notice shall be valid and
 effective only if it is delivered to an officer of the party to which it is addressed or
 if it is delivered to that party at the appropriate address provided in subsection 10.1(1)
 by facsimile, email or other means of prepaid, transmitted or recorded communication and
 any notice delivered in accordance with the foregoing shall be deemed to have been received
 on the date of delivery to the officer or if delivered by facsimile, email or other means
 of prepaid, transmitted, recorded communication on the first Business Day following the date
 of the sending of the notice by the person giving the notice.

10.2 <u>Notice to the Warrantholders</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any
 notice to the Warrantholders under the provisions of this Indenture shall be deemed to be
 validly given if the notice is sent by prepaid mail or, if delivered by hand, to the holders
 at their addresses appearing in the register of holders or if otherwise given in the manner
 specified herein. Any notice so delivered shall be deemed to have been received on the date
 of delivery if that date is a Business Day or the Business Day following the date of delivery
 if such date is not a Business Day or on the third Business Day if delivered by mail. All
 notices may be given to whichever one of the Warrantholders (if more than one) is named first
 in the appropriate register hereinbefore mentioned, and any notice so given shall be sufficient
 notice to all Warrantholders and any other persons (if any) interested in such Warrants.
 Accidental error or omission in giving notice or accidental failure to mail notice to any
 Warrantholder will not invalidate any action or proceeding founded thereon.

(2) If,
 by reason of strike, lockout or other work stoppage, actual or threatened, involving postal
 employees, any notice to be given to the Warrantholders could reasonably be considered unlikely
 to reach its destination, the notice may be given in a news release disseminated through
 a newswire service, filed on SEDAR and posted on the Company's website; provided that
 in the case of a notice convening a meeting of the holders of Warrants, the Warrant Agent
 may require such additional publications of that notice, in Montréal, Québec
 or in other cities or both, as it may deem necessary for the reasonable notification of the
 holders of Warrants or to comply with any applicable requirement of law or any stock exchange.
 Any notice so given shall be deemed to have been given on the day on which it has been published
 in all of the cities in which publication was required.

10.3 <u>Privacy</u> 

The Company acknowledges that the Warrant Agent may, in the course of providing services hereunder, collect or receive financial and other personal information about such parties and/or their representatives, as individuals, or about other individuals related to the subject matter hereof, and use such information for the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to
 provide the services required under this Indenture and other services that may be requested
 from time to time;

(b) to
 help the Warrant Agent manage its servicing relationships with such individuals;

(c) to
 meet the Warrant Agent's legal and regulatory requirements; and

(d) if
 Social Insurance Numbers are collected by the Warrant Agent, to perform tax reporting and
 to assist in verification of an individual's identity for security purposes.

The Company acknowledges and agrees that the Warrant Agent may receive collect, use and disclose personal information provided to it or acquired by it in the course of its acting as agent hereunder for the purposes described above and, generally, in the manner and on the terms described in its privacy code, which the Warrant Agent shall make available on its website, <u>www.endeavortrust.com</u>, or upon request, including revisions thereto. The Warrant Agent may transfer personal information to other companies in or outside of Canada that provide data processing and storage or other support in order to facilitate the services it provides.

Further, the Company agrees that it shall not provide or cause to be provided to the Warrant Agent any personal information relating to an individual who is not a party to this Indenture unless that party has assured itself that such individual understands and has consented to the aforementioned uses and disclosures.

10.4 <u>Third Party Interests</u> 

The Company represents to the Warrant Agent that any account to be opened by, or interest to be held by the Warrant Agent in connection with this Indenture, for or to the credit of such party, either (i) is not intended to be used by or on behalf of any third party; or (ii) is intended to be used by or on behalf of a third party, in which case such party hereto agrees to complete and execute forthwith a declaration in the Warrant Agent prescribed form as to the particulars of such third party.

10.5 <u>Discretion of Directors</u> 

Any matter provided herein to be determined by the directors in their sole discretion and determination so made will be conclusive.

10.6 <u>Satisfaction and Discharge of Indenture</u> 

Upon the earlier of the Time of Expiry or the date by which there shall have been delivered to the Warrant Agent for exercise or cancellation in accordance with the provisions hereof all Warrants theretofore Authenticated or certified hereunder, this Indenture, except to the extent that Warrant Shares and any certificates therefor have not been issued and delivered hereunder or the Company has not performed any of its obligations hereunder, shall cease to be of further effect in respect of the Company, and the Warrant Agent, on written demand of and at the cost and expense of the Company, and upon delivery to the Warrant Agent of a certificate of the Company stating that all conditions precedent to the satisfaction and discharge of this Indenture have been complied with and upon payment to the Warrant Agent of the expenses, fees and other remuneration payable to the Warrant Agent, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture. Notwithstanding the foregoing, the indemnities provided to the Warrant Agent by the Company hereunder shall remain in full force and effect and survive the termination of this Indenture.

10.7 <u>Provisions of Indenture and Warrants for the Sole Benefit of Parties and Warrantholders</u> 

Nothing in this Indenture or the Warrant Certificates, expressed or implied, shall give or be construed to give to any person other than the parties hereto and the holders from time to time of the Warrants any legal or equitable right, remedy or claim under this Indenture, or under any

covenant or provision therein contained, all such covenants and provisions being for the sole benefit of the parties hereto and the Warrantholders.

10.8 <u>Ownership of Warrants</u> 

The Company and the Warrant Agent may deem and treat the Warrantholders as the absolute owner thereof for all purposes, and the Company and the Warrant Agent shall not be affected by any notice or knowledge to the contrary except where the Company or the Warrant Agent is required to take notice by statute or by order of a court of competent jurisdiction. The receipt of any such Warrantholder of the Warrant Shares which may be acquired pursuant thereto shall be a good discharge to the Company and the Warrant Agent for the same and neither the Company nor the Warrant Agent shall be bound to inquire into the title of any such holder except where the Company or the Warrant Agent is required to take notice by statute or by order of a court of competent jurisdiction.

10.9 <u>Indenture to Prevail</u> 

To the extent of any discrepancy or inconsistency between the terms and conditions of this Indenture and the Warrant Certificate, the terms of this Indenture will prevail.

10.10 <u>Assignment</u> 

Except as provided in subsection 9.8(3), this Indenture nor any benefits or burdens under this Indenture shall be assignable by the Company or the Warrant Agent without the prior written consent of the other party, such consent not to be unreasonably withheld. Subject to the foregoing, this Indenture shall enure to the benefit of and be binding upon the Company and the Warrant Agent and their respective successors (including any successor by reason of amalgamation) and permitted assigns.

10.11 <u>Counterparts and Formal Date</u> 

This Indenture may be simultaneously executed in several counterparts and by electronic means, each of which when so executed shall be deemed to be an original and such counterparts together shall constitute one and the same instrument and notwithstanding their date of execution shall be deemed to bear the date set out at the top of the first page of this Indenture.

10.12 <u>Force Majeure</u> 

No party shall be liable to the other, or held in breach of this Indenture, if prevented, hindered, or delayed in the performance or observance of any provision contained herein by reason of act of God, riots, terrorism, acts of war, epidemics, pandemics, governmental action or judicial order, earthquakes, or any other similar causes (including, but not limited to, mechanical, electronic or communication interruptions, disruptions or failures). Performance times under this Indenture shall be extended for a period of time equivalent to the time lost because of any delay that is excusable under this Section.

10.13 <u>Severability</u> 

If, in any jurisdiction, any provision of this Indenture or its application to any party or circumstance is restricted, prohibited or unenforceable, such provision will, as to such jurisdiction, be ineffective only to the extent of such restriction, prohibition or unenforceability without invalidating the remaining provisions of this Indenture and without affecting the validity or enforceability of such provision in any other jurisdiction or without affecting its application to other parties or circumstances.

10.14 <u>Rights of Rescission and Withdrawal for Holders</u> 

Should a Warrantholder exercise any legal, statutory, contractual or other right of withdrawal or rescission that may be available to it, the Warrant Agent shall not be responsible for ensuring the exercise is cancelled. In such cases, the Company, upon surrender to the Company or the Warrant Agent of any underlying Warrant Shares or other securities that may have been issued, or such other procedure as agreed to by the parties hereto, shall instruct the Warrant Agent in writing, to cancel the exercise transaction and any such underlying Warrant Shares or other securities on the register, which may have already been issued upon the Warrant exercise. In the event that any payment is received from the Company by virtue of the holder being a shareholder for such Warrants that were subsequently rescinded, such payment must be returned to the Company by such Warrantholder. The Warrant Agent shall not be under any duty or obligation to take any steps to ensure or enforce the return of the funds pursuant to this Section, nor shall the Warrant Agent be in any other way responsible in the event that any payment is not delivered or received pursuant to this Section.

*(Signature page follows)*

 

**IN WITNESS WHEREOF** the parties hereto have executed this Indenture under the hands of their proper officers in that behalf as of the date first written above.

---

| | |
|:---|:---|
| **VERSES AI INC.** | **VERSES AI INC.** |
| By: | */s/ James Christodoulou* |
| Name: | James Christodoulou |
| Title: | Chief Financial Officer |

---

---

| | |
|:---|:---|
| By: | */s/ Gabriel René* |
| Name: | Gabriel René |
| Title: | Chief Executive Officer |

---

---

| | |
|:---|:---|
| **ENDEAVOR TRUST CORPORATION** | **ENDEAVOR TRUST CORPORATION** |
| By: | */s/ David Eppert* |
| Name: | David Eppert |
| Title: | Chief Executive Officer |

---

---

| | |
|:---|:---|
| By: | */s/ Catherine Wang* |
| Name: | Catherine Wang |
| Title: | Chief Financial Officer |

---

**<u>SCHEDULE A</u>**

**FORM OF WARRANT CERTIFICATE**

**WARRANTS TO PURCHASE SUBORDINATE**

**VOTING SHARES OF VERSES AI INC.**

(a Company incorporated under the laws of British Columbia)

CUSIP No. 92539Q174

Warrant Certificate Number: ________________Representing ______________Warrants to purchase Subordinate Voting Shares

THIS CERTIFIES that, for value received, the registered holder hereof, ___________________ (the "**holder**") is entitled, at any time at or before 5:00 p.m. (Vancouver time) on July 11, 2028 (the "**Time of Expiry**"), to acquire, subject to adjustment in certain events, the number of Subordinate Voting Shares ("**Subordinate Voting Shares**") of Verses AI Inc. (the "**Company**") specified above, as presently constituted, by surrendering to Endeavor Trust Corporation (the "**Warrant Agent**") at its principal office in Vancouver, British Columbia this Warrant Certificate with the duly completed and executed Exercise Form endorsed on the back of this Warrant Certificate, at the exercise price of C$11.50 per Warrant Share (subject to adjustment in certain events) (the "**Exercise Price**") pursuant to the "cashless exercise", only if permitted pursuant to Section 4.2 of the Warrant Indenture (as defined below).

The holder of this Warrant Certificate may purchase less than the number of Subordinate Voting Shares which he is entitled to purchase on the exercise of the Warrants represented by this Warrant Certificate, in which event a new Warrant Certificate representing the Warrants not then exercised will be issued to the holder.

The Warrants evidenced hereby are exercisable on or before the Time of Expiry, after which time the Warrants evidenced hereby shall be deemed to be void and of no further force or effect.

This Warrant Certificate represents Warrants of the Company issued or issuable under the provisions of a warrant indenture (which indenture together with all other instruments supplemental or ancillary thereto is herein referred to as the "**Warrant Indenture**") dated as of July 9, 2025, between the Company and the Warrant Agent, as may be amended from time to time, which contains particulars of the rights of the holders of the Warrants and the Company and of the Warrant Agent in respect thereof and the terms and conditions upon which the Warrants are issued and held, all to the same effect as if the provisions of the Warrant Indenture were herein set forth, to all of which the holder of this Warrant Certificate by acceptance hereof assents. Unless otherwise defined herein, all capitalized terms shall have the meanings ascribed to them in the Warrant Indenture. A copy of the Warrant Indenture will be available for inspection at the principal office of the Company in the City of Vancouver, British Columbia. In the event of any conflict between the provisions contained in this Warrant Certificate and the provisions of the Warrant Indenture, the provisions of the Warrant Indenture shall prevail. For the avoidance of doubt, the exercise of Warrants represented by this Warrant Certificate shall at all times be subject to S.4.9(2) of the Warrant Indenture.

Upon acceptance hereof, the holder hereof hereby expressly waives the right to receive any fractional Subordinate Voting Shares upon the exercise hereof in full or in part and further waives the right to receive any cash or other consideration in lieu thereof. The Warrants represented by this Warrant Certificate shall be deemed to have been surrendered only upon personal delivery thereof or, if sent by post or other means of transmission, upon actual receipt thereof by the Warrant Agent at its office in the City of Vancouver, British Columbia.

Upon due exercise of the Warrants represented by this Warrant Certificate upon a "cashless exercise", the Company shall cause to be issued to the person(s) in whose name(s) the Subordinate Voting Shares so subscribed for (provided that if the Subordinate Voting Shares are to be issued to a person other than the registered holder of this Warrant Certificate, the holder's signature on the Exercise Form herein shall be guaranteed by a Schedule I Canadian chartered bank, or by a medallion signature guarantee from a member of a recognized Signature Medallion Guarantee Program and the holder shall pay to the Company or the Warrant Agent all applicable transfer or similar taxes and the Company shall not be required to issue or deliver certificates evidencing the Subordinate Voting Shares unless or until the holder shall have paid the Company or the Warrant Agent the amount of such tax (or shall have satisfied the Company that such tax has been paid or that no tax is due)), the number of Subordinate Voting Shares to be issued to such person(s) and such person(s) shall become a holder in respect of such Subordinate Voting Shares with effect from the date of such exercise, and upon due surrender of this Warrant Certificate and all other documentation required, the Warrant Agent shall cause the issuance of a certificate(s) representing such Subordinate Voting Shares to be issued within three Business Days after the exercise of the Warrants (or portion thereof) represented hereby.

Pursuant to Section 4.2 of the Warrant Indenture, no Warrantholder will be permitted to exercise Warrants other than pursuant to a "cashless exercise" as described herein. If the Current Market Price exceeds the Exercise Price, the Warrant may be exercised by means of a "cashless exercise" in which the holder of Warrants shall be entitled to surrender a Warrant to the Company in exchange for the issuance of the number of Subordinate Voting Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where: (a) (A) equals the Current Market Price on the trading day immediately preceding the date of the receipt by the Warrant Agent of the notice of exercise; (b) (B) equals the Exercise Price per Subordinate Voting Share of such Warrant, as adjusted; and (c) (X) equals the number of Subordinate Voting Shares that would otherwise be issuable upon exercise of such Warrant in accordance with its terms by means of a cash exercise rather than a cashless exercise.

The issue price for each such Subordinate Voting Share to be issued pursuant to the cashless exercise of a Warrant will be equal to (B), as defined above, and the total issue price for the aggregate number of Subordinate Voting Shares issued pursuant to the cashless exercise of a Warrant will be paid and satisfied in full by the surrender to the Company of such Warrant.

The holder acknowledges that the Warrants represented by this Warrant Certificate and the Subordinate Voting Shares issuable upon exercise hereof may be offered, sold or otherwise transferred only in compliance with all applicable securities laws.

No transfer of any Warrant will be valid unless entered on the register of transfers, upon surrender to the Warrant Agent of the Warrant Certificate evidencing such Warrant, duly endorsed by, or accompanied by a transfer form or other written instrument of transfer in form satisfactory to the Warrant Agent executed by the registered holder or his executors, administrators or other legal representatives or his or their attorney duly appointed by an instrument in writing in form and execution satisfactory to the Warrant Agent. Subject to the provisions of the Warrant Indenture and upon compliance with the reasonable requirements of the Warrant Agent, Warrant Certificates may be exchanged for Warrant Certificates representing in the aggregate an equal number of Warrants. The Company and the Warrant Agent may treat the registered holder of this Warrant Certificate for all purposes as the absolute owner hereof. The holding of the Warrants represented by this Warrant Certificate shall not constitute the holder hereof a holder of Subordinate Voting Shares nor entitle him to any right or interest in respect thereof except as herein and in the Warrant Indenture expressly provided.

The Warrant Indenture provides for adjustment in the number of Subordinate Voting Shares to be delivered upon exercise of the right of purchase hereby granted and to the Exercise Price in certain events therein set forth.

The Warrant Indenture contains provisions making binding upon all holders of Warrants outstanding thereunder resolutions passed at meetings of such holders held in accordance with such provisions and instruments in writing signed by the Warrantholders holding a specified percentage of the then outstanding Warrants.

The Warrants and the Warrant Indenture shall be governed by and performed, construed and enforced in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein. Time shall be of the essence hereof and of the Warrant Indenture.

The Company may from time to time at any time prior to the Time of Expiry purchase any of the Warrants by private agreement or otherwise.

This Warrant Certificate shall not be valid for any purpose until it has been certified by or on behalf of the Warrant Agent for the time being under the Warrant Indenture.

This Warrant Certificate may be signed by facsimile or other electronic means, which shall be deemed to be an original and shall be deemed to have the same legal effect and validity as a certificate bearing an original signature.

*(Signature page follows)*

 

**IN WITNESS WHEREOF** the Company has caused this Warrant Certificate to be duly executed as of

_____________________________

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| | |
|:---|:---|
| **VERSES AI INC.** | **VERSES AI INC.** |
| By: |  |
|  | Authorized Signatory |

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Countersigned and Registered by:

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| | |
|:---|:---|
| **ENDEAVOR TRUST CORPORATION** | **ENDEAVOR TRUST CORPORATION** |
| By: |  |
|  | Authorized Signatory |

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**<u>EXERCISE FORM</u>**

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| | |
|:---|:---|
| TO: | VERSES AI INC. |
| AND TO: | ENDEAVOR TRUST CORPORATION |
|  | Suite 702, 777 Hornby Street |

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Vancouver, British Columbia

V6Z 1S4

The undersigned holder of the Warrants evidenced by this Warrant Certificate hereby exercises the right to acquire __________ Subordinate Voting Shares of Verses AI Inc., only if permitted pursuant to Section 4.2 of the Warrant Indenture, by means of a "cashless exercise" in which the holder of Warrants shall be entitled to receive a certificate for the number of Subordinate Voting Shares equal to the quotient obtained by dividing [(A- B) (X)] by (A), where (i) (A) equals the Current Market Price on the trading day immediately preceding the date of the receipt by the Warrant Agent of the notice of exercise; (ii) (B) equals the Exercise Price per Subordinate Voting Share of each Warrant, as adjusted; and (iii) (X) equals the number of Subordinate Voting Shares that would otherwise be issuable upon exercise of the Warrants in accordance with their terms by means of a cash exercise rather than a cashless exercise, and the undersigned hereby agrees that the issue price for each such Subordinate Voting Share pursuant to this cashless exercise of such Warrants is equal to (B), as defined above, and the undersigned hereby surrenders all such Warrants to Verses AI Inc. in full payment and satisfaction of the total issue price for such Subordinate Voting Shares pursuant to this cashless exercise of such Warrants.

Unless otherwise defined herein, all capitalized terms shall have the meanings ascribed to them in the warrant indenture between Verses AI Inc. and Endeavor Trust Corporation dated July [ ], 2025 (the "**Warrant Indenture**").

The undersigned hereby acknowledges that the undersigned is aware that the Subordinate Voting Shares received on exercise may be subject to restrictions on resale under applicable Securities Laws.

The undersigned hereby irrevocably directs that the said Subordinate Voting Shares be issued, registered and delivered as follows:

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| | | |
|:---|:---|:---|
| **NAME(S) IN FULL** | **ADDRESS(ES)** | **NUMBER OF COMMON SHARES** |

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Once completed and executed, this Exercise Form must be mailed or delivered to **Endeavor Trust Corporation, c/o Securities Processing**.

DATED this _____day of _____________, 20__ .)

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| |
|:---|
| (Signature of Warrantholder, to be the same as appears on the face of this Warrant Certificate) |
| Name of Registered Warrantholder |

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☐ Please check if the certificates or DRS representing the Subordinate Voting Shares are to be delivered at the office where this Warrant Certificate is surrendered, failing which such certificates or DRS will be mailed to the address set out above. Certificates or DRS will be delivered or mailed as soon as practicable after the surrender of this Warrant Certificate to the Warrant Agent.

**<u>TRANSFER FORM</u>**

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| | | |
|:---|:---|:---|
| TO: | Verses AI Inc. (the "**Company**") | Verses AI Inc. (the "**Company**") |
|  | AND TO: | ENDEAVOR TRUST CORPORATION |
|  |  | Suite 702, 777 Hornby Street |
|  |  | Vancouver, British Columbia |
|  |  | V6Z 1S4 |

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ANY TRANSFER OF WARRANTS WILL REQUIRE COMPLIANCE WITH APPLICABLE SECURITIES LEGISLATION. TRANSFERORS AND TRANSFEREES ARE URGED TO CONTACT LEGAL COUNSEL BEFORE EFFECTING ANY SUCH TRANSFER.

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers to

________________________________________________________________________________________

________________________________________________________________________________________

____________________(print name and address) the Warrants represented by this Warrants Certificate and hereby irrevocable constitutes and appoints as its attorney with full power of substitution to transfer the said securities on the appropriate register of the Warrant Agent.

(Please print. If securities are issued to a person other than the registered Warrantholder, the holder must pay to the Warrant Agent all applicable taxes and the signature of the holder must be guaranteed by a Schedule I Canadian chartered bank, or by a medallion signature guarantee from a member of a recognized Signature Medallion Guarantee Program).

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| |
|:---|
| Signature of Transferor |
| Name of Transferor |

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**REASON FOR TRANSFER – For US Residents only (where the individual(s) or Company receiving the securities is US resident). Please select only one (see instructions below).**

☐ Gift ☐ Estate ☐ Private Sale ☐ Other (or no change in ownership)

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| | | |
|:---|:---|:---|
| Date of Event (Date of gift, death or sale): | Value per Warrant on the date of event: |  |
| ![](ex4-8_001.jpg) | ![](ex4-8_001.jpg) | ☐ CAD <u>OR</u> ☐ USD |

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**CERTAIN REQUIREMENTS RELATING TO TRANSFERS – READ CAREFULLY**

The signature(s) of the transferor(s) must correspond with the name(s) as written upon the face of this certificate(s), in every particular, without alteration or enlargement, or any change whatsoever. All securityholders or a legally authorized representative must sign this form. The signature(s) on this form must be guaranteed in accordance with the transfer agent's then current guidelines and requirements at the time of transfer. Notarized or witnessed signatures are not acceptable as guaranteed signatures. As at the time of closing, you may choose one of the following methods (although subject to change in accordance with industry practice and standards):

● **Canada and the USA:** A Medallion Signature Guarantee obtained from a member of an acceptable
 Medallion Signature Guarantee Program (STAMP, SEMP, NYSE, MSP). Many commercial banks, savings
 banks, credit unions, and all broker dealers participate in a Medallion Signature Guarantee
 Program. The Guarantor must affix a stamp bearing the actual words "Medallion Guaranteed",
 with the correct prefix covering the face value of the certificate.

● **Canada:** A Signature Guarantee obtained from an authorized officer of the Royal Bank of Canada, Scotia
 Bank or TD Canada Trust. The Guarantor must affix a stamp bearing the actual words "Signature
 Guaranteed", sign and print their full name and alpha numeric signing number. Signature
 Guarantees are not accepted from Treasury Branches, Credit Unions or Caisse Populaires unless
 they are members of a Medallion Signature Guarantee Program. For corporate holders, corporate
 signing resolutions, including certificate of incumbency, are also required to accompany
 the transfer, unless there is a "Signature & Authority to Sign Guarantee"
 Stamp affixed to the transfer (as opposed to a "Signature Guaranteed" Stamp)
 obtained from an authorized officer of the Royal Bank of Canada, Scotia Bank or TD Canada
 Trust or a Medallion Signature Guarantee with the correct prefix covering the face value
 of the certificate.

● **Outside North America:** For holders located outside North America, present the certificates(s)
 and/or document(s) that require a guarantee to a local financial institution that has a corresponding
 Canadian or American affiliate which is a member of an acceptable Medallion Signature Guarantee
 Program. The corresponding affiliate will arrange for the signature to be over-guaranteed.

OR

The signature(s) of the transferor(s) must correspond with the name(s) as written upon the face of this certificate(s), in every particular, without alteration or enlargement, or any change whatsoever. The signature(s) on this form must be guaranteed by an authorized officer of Royal Bank of Canada, Scotia Bank or TD Canada Trust whose sample signature(s) are on file with the transfer agent, or by a member of an acceptable Medallion Signature Guarantee Program (STAMP, SEMP, NYSE, MSP). Notarized or witnessed signatures are not acceptable as guaranteed signatures. The Guarantor must affix a stamp bearing the actual words: "SIGNATURE GUARANTEED", "MEDALLION GUARANTEED" OR "SIGNATURE & AUTHORITY TO SIGN

GUARANTEE", all in accordance with the transfer agent's then current guidelines and requirements at the time of transfer. For corporate holders, corporate signing resolutions, including certificate of incumbency, will also be required to accompany the transfer unless there is a "SIGNATURE & AUTHORITY TO SIGN GUARANTEE" Stamp affixed to the Form of Transfer obtained from an authorized officer of the Royal Bank of Canada, Scotia Bank or TD Canada Trust or a "MEDALLION GUARANTEED" Stamp affixed to the Form of Transfer, with the correct prefix covering the face value of the certificate.

**<u>REASON FOR TRANSFER – FOR US RESIDENTS ONLY</u>**

Consistent with US IRS regulations, Endeavor Trust Corporation is required to request cost basis information from US securityholders. Please indicate the reason for requesting the transfer as well as the date of event relating to the reason. The event date is not the day in which the transfer is finalized, but rather the date of the event which led to the transfer request (i.e. date of gift, date of death of the securityholder, or the date the private sale took place).

**<u>NOTES:</u>**

1. The
 signature to this transfer must correspond with the name as recorded on the Warrants in every
 particular without alteration or enlargement or any change whatever. The signature of the
 person executing this transfer must be guaranteed by a Schedule I Canadian chartered bank,
 or by a medallion signature guarantee from a member of a recognized Signature Medallion Guarantee
 Program.

2. Warrants
 shall only be transferable in accordance with the Warrant Indenture between Verses AI Inc.
 (the "**Company**") and Endeavor Trust Company of Canada (the "**Warrant Agent**") dated as of July 9, 2025, Applicable Legislation and the rules and policies
 of any applicable stock exchange.

## Exhibit 10.1

**Exhibit 10.1**

**<u>EMPLOYMENT CONTRACT<br> (Executive)</u>**

This Employment Contract (the "Contract") is entered into by and between **VERSES, INC.**, a Wyoming for-profit corporation with a principal place of business at 5877 Obama Blvd., Ste. 133, Los Angeles, CA U.S.A. ("Company"); and **Gabriel René** ("Executive"), an individual resident of the State of California, U.S.A. as of this 31st day of December, 2021 (the "Effective Date").

❖ WHEREAS the Company is an Information Technology company formed to, *inter alia,* develop various technologies;

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| | |
|:---|:---|
| ❖ | WHEREAS, Company is developing a team of employees, executives and independent contractors, in order to secure lucrative government and private-sector contracts involving millions of dollars of potential revenue and high investment returns for future investors; |

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❖ WHEREAS, Executive has extensive qualifications and experience that can benefit the Company;

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| | |
|:---|:---|
| ❖ | WHEREAS, Company recognizes that the Executive's qualifications, skills and abilities have been integral to its initial development to a much higher level than that of other non-Executive staff members; |

---

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| | |
|:---|:---|
| ❖ | WHEREAS, Company and Executive (each a "Party" and collectively the "Parties") both agree that, due to Executive's aforementioned unique skills, abilities and contributions, any employment arrangement with said Executive should be structured in a manner tailored to that Executive's particular situation; and |

---

❖ WHEREAS, the Parties have drafted the provisions of this employment Contract as a means to fairly compensate said Executive, while protecting the Company's various interests.

**NOW, THEREFORE**, in consideration of the promises, covenants, conditions and restrictions outlined below, and for other good and valuable consideration, the receipt and sufficiency of which being hereby specifically acknowledged, the Parties agree as follows:

**1.0 <u>EMPLOYMENT</u>**. From and after the Effective Date, the Company hereby agrees to employ the Executive, and the Executive hereby accepts such employment, on the terms and conditions detailed herein and as set forth in the "Offer Letter" letter agreement entered into by the Parties on or about 31, December 2021, plus all included attachments and exhibits thereto (collectively referred to as simply the "Offer Letter"). The Parties intend for this Agreement to supplement and further define the provisions of the Offer Letter, and for the two contracts to function as a single integrated document. Executive agrees to, at all times, faithfully and to the best of his skills, experience, and ability, perform each of the duties required of the Position (as defined below) and fully abide by the terms of this Agreement and the Offer Letter.

**2.0 <u>POSITION</u>**. For the duration of this Agreement, Executive's job title shall be that of **Founder and Chief Executive Officer** (the "Position"). As part of the Position, Executive is required to perform all necessary job functions and duties, in addition to all other duties and tasks that may be assigned from time to time by the Company.

**3.0 <u>COMPENSATION</u>**. As consideration for employment services rendered while performing the Position, Executive shall be compensated in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1. Base Salary**. Executive's Base Salary is enumerated in the Offer Letter, subject to periodic review by the Board in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2. Equity**. In addition to any other stock, equity or other related compensation that Executive may receive, Executive shall also be provided an opportunity to acquire, without limitation, stock options, bonuses and additional items to be provided by related parties, as articulated in Attachment A to the Offer Letter ("Incentive Compensation Program information").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3. Benefits**. In addition to the Salary and other compensation listed above, Company will provide an opportunity for Executive to participate in employee benefit plans that include, but are not limited to, medical and dental coverage for Executive and immediate family members, retirement (e.g. "401[k]") plans, as well as paid time off for vacation, sick leave, maternity/paternity leave, as appropriate. Further information concerning said benefit plans can be found in the Offer Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5. Performance Bonus**. In addition to the Salary described above, and as an added incentive to work diligently and industriously for Company during this Agreement, the Executive shall be entitled to a performance bonus as detailed in Attachment A of the Offer Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.6. Severance**. Upon the occurrence of a Triggering Event (as defined below) Executive shall be entitled to receive a Severance Package consisting of: (i) a monetary payment equal to twelve (12) months' worth of Executive's Base Salary within thirty (30) days of said Triggering Event; (ii) continuation for 12 months of Executive's medical and dental insurance under COBRA or similar procedural mechanisms; and (iii) immediate, accelerated vesting of all stock options, equity and related compensation subject to vesting requirements.

● *Triggering Event:* A "Triggering Event" shall consist of: (i) any Involuntary Termination of Executive not encompassing the circumstances enumerated in Section 5.1(b), (d), (e) or (f); or (ii) the assignment to Executive of a job role or position duties materially inconsistent with those contemplated by this Agreement; (iii) the interposition of any direct reporting supervisor or manager over Executive other than the Company's CEO and President; or (iv) a Change of Control, as defined below.

 

● *Change of Control Defined:* (A) Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company; or (B) the consummation of a reorganization, merger, sale, share exchange, consolidation or other disposition of all or substantially all of the stock and/or assets of the Company (a "Business Combination") unless, after such Business Combination: (i) all or substantially all of the individuals and entities who were the actual or beneficial owners, respectively, of the outstanding stock and voting securities of the Company immediately prior to such Business Combination still own, directly or indirectly, more than 50% of, respectively, the then-outstanding shares of stock or the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of Directors of the Company (or companies) resulting from such Business Combination in substantially the same proportions as their ownership was immediately prior to such Business Combination; or (ii) at least a majority of the members of the Board of said company (or companies) resulting from such Business Combination were members of the Board of Directors of the Company as constituted immediately prior to such Business Combination, with each Board member having identical or substantially similar voting power as he/she had prior to said Combination. Further, for purposes of Subsection (B), any Business Combination implemented by the Company's parent organization (Verses Technologies, Inc., a British Columbia corporation) or jointly by its CEO and President (Gabriel Rene and Dan Mapes) acting together shall not constitute a "Change of Control" or Triggering Event as defined herein.

For purposes of clarity, no Severance shall be available if Executive voluntarily terminates this Agreement under Section 5.2, *infra.* Further, Executive's receipt of any Severance Package may be conditioned upon Executive's approval and execution of a written waiver and settlement of claims document absolving the Company and its subsidiaries, employees, directors, officers and assigns of any liability concerning Executive's employment with Company, with said Severance Package serving as liquidated damages for any termination of employment by the Company. Any Severance Package granted under this Agreement shall be subject to the Company's Executive Severance Policy at the time of Termination, as approved by the Board's Compensation Committee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.7. Cumulative Structure**. Nothing in this Agreement is intended to preclude, substitute for, waive, alter, amend, or be provided in lieu of any other compensation Executive is entitled to.

The Parties may revise the Compensation and other facets of this Agreement via a written amendment or addendum signed by both Executive and Company prior to the expiration of the Initial Term or any applicable Renewal Term (as defined below).

**4.0 <u>DURATION; RENEWAL</u>**. This Employment Contract shall begin on the Effective Date and end on December 31, 2022 (the "Initial Term") subject to any earlier termination as provided below. Unless otherwise earlier terminated according to the terms of Section 5.0 below, Executive's employment shall be renewed under these same parameters for an additional twelve (12) months. Each subsequent employment period shall be referred to as a "Renewal Term."

**5.0 <u>TERMINATION</u>**. Subject to the provisions of Section 3.6, *supra,* this Agreement may be terminated by either Party, voluntarily or involuntarily, as the case may be, under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1. Involuntarily By Company**. Company may only terminate this Agreement prior to the end of the Initial Term (or any Renewal Term) in the event of Executive's: (a) death; (b) felony conviction; (c) severe disability, which for purposes of this Agreement refers to an independently-verifiable medical condition that prevents or significantly hinders Executive's meaningful participation in Executive's performance in the Position; (d) Executive's willful, continued and unexcused failure to perform his duties in the Position for a period of at least thirty (30) days after having been notified in writing by Company of said failure; (e) gross or willful misconduct that results, or is substantially likely to result, in serious damage to the Company or its reputation; or (f) any adjudicated and independently-verified violation of the Confidentiality Non-Disparagement and/or Non-Solicitation provisions found herein. Involuntary termination by Company may only be effectuated via a formal resolution adopted by the Company Board and served Upon Executive (of, if applicable, his estate or duly authorized representative) in accordance with the Notice provisions herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2. Involuntarily By Executive**. Executive may terminate this Agreement at any time by serving written notice upon the Company or, if applicable, its successor(s) or assignee(s) under the following conditions: (i) any material breach of this Agreement that remains uncured for at least 30 days after having been notified in writing by Executive of said breach; or (ii) the assignment to Executive of a job role or position duties materially inconsistent with those contemplated by this Agreement. Involuntary termination by Executive shall be effectuated by serving written notice upon Company using the Notice provisions herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3. Voluntarily By Mutual Agreement**. Executive and Company may jointly terminate this Agreement by memorializing their intention to so terminate in a writing signed by each Party. Said writing will include the date of termination and note any variations in the termination procedures listed herein (if any).

Termination (whether voluntary or involuntary) shall have no effect on any compensation or benefit that Executive earned prior to said termination, including without limitation wages, health insurance coverage, stock options (if vested) and retirement benefits, which shall be paid to Executive in accordance with any timetables imposed by applicable law. In addition, if Company involuntarily terminates Executive's employment for any reason other than those specifically enumerated in Section 5.1, Executive shall also be entitled to any other rights, compensation and/or benefits as may be due to Executive in accordance with the terms and provisions of any agreements, contracts, grants, plans or programs of the Company (other than formalized severance packages specifically designed to be paid in lieu of compensation owed). Company shall pay Executive all such compensation and/or benefits to Executive within the timeframes mandated by law.

**6.0 <u>CONFIDENTIALITY: NON-DISPARAGEMENT: IP ASSIGNMENT</u>**. Executive acknowledged having read and agreeing to fully abide by the terms of the "EMPLOYEE CONFIDENTIAL INFORMATION, INVENTION ASSIGNMENT AND ARBITRATION AGREEMENT" distributed to Executive with the Offer Letter, the contents of which being incorporated herein by reference.

**7.0 <u>REPRESENTATIONS AND WARRANTIES</u>**. The Parties hereto make the following representations and warranties to one another:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1. By Company:**

● It is a corporation, duly organized, validly existing, and in good standing under the laws of the State of Wyoming, U.S.A.

● It has full power and authority to carry on its business as it is now being conducted, and for performing the activities contemplated by this Agreement, with no additional permissions, resolutions, orders or contingencies required.

● The individual signing on its behalf below has sufficient authority to legally bind the Company to contract.

● No proceeding is either currently pending, or reasonably likely to be asserted in the near future, by any third party concerning, or that would have a material adverse effect upon, Company's ability to enter into and perform its obligations under this Agreement.

● The Company shall comply with all pertinent policies and procedures, and all applicable laws, rules, regulations and court decisions concerning this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2. By Executive:**

● Executive shall comply with all Company policies and procedures, as well as all applicable laws, rules, regulations and court decisions concerning this Agreement and Executive's Position generally.

● No proceeding is either currently pending, or reasonably likely to be asserted in the near future, by any third party concerning, or that would have a material adverse effect upon, Executive's ability to enter into and perform his obligations under this Agreement.

**8.0 <u>INDEMNIFICATION</u>**. The Parties have certain indemnification obligations toward one another, consisting as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1. Mutual Indemnity for Breach:** Each Party (the "Indemnifying Party") agrees to indemnify and hold harmless the other Party and, in the case of Company, its subsidiaries, officers, directors, employees, contractors and agents (each an "Indemnified Party") from and against any Claim (as defined below) involving a material breach by the Indemnifying Party of this Agreement, or the gross negligence, willful misconduct or fraud or violation of law on the part of said Indemnifying Party, or any of its respective officers, directors, employees, agents or other representatives in connection herewith. The Indemnifying Party will indemnify and hold harmless the Indemnified Party from any liabilities, losses, damages, judgments, awards, fines, penalties, costs and expenses (including reasonable attorneys' fees and costs of suit) incurred by such Indemnified Party as a result of such Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2. Indemnification of Executive by Company:** Company shall indemnify and hold harmless Executive for any Claim brought against Executive by a third party involving a Claim that Executive violated the rights of said third party, or any law, statute, rule, regulation or court decision, by virtue of Executive's legitimate performance of his duties under the Position, or when following instructions given by the Company's senior management or its Board of Directors during the Term of Executive's employment with Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3. Generally**. If an Indemnified Party seeks indemnification under this Section, the Indemnifying Party's obligations are conditioned upon the Indemnified Party: (a) providing timely written notice to the Indemnifying Party within thirty (30) days after said Indemnified Party has knowledge of a valid Claim, except that failure to timely provide such notice will relieve the Indemnifying Party of its obligations only to the extent the Indemnifying Party is materially prejudiced as a direct result of such delay; and (b) giving the Indemnifying Party sole control over the defense thereof and any related settlement negotiations; and (c) cooperating and, at the Indemnifying Party's request and expense, assisting in such defense. Notwithstanding the foregoing, the Indemnified Party may participate at his/its own expense in the defense and any settlement discussions and shall have the right to approve any settlement agreement that involves admission(s) of fault by, or imposes substantial monetary or injunctive relief upon, the Indemnified Party provided such approval is not unreasonably withheld.

**9.0 <u>AUDIT RIGHTS</u>**. Once per calendar year, Executive, or Executive's estate or duly appointed representative, may, at Executive's own expense, during regular business hours and upon reasonable advance notice to the Company, during any period for which the Executive (or his estate) is entitled to any payments or other forms of compensation hereunder and for one (1) year thereafter, audit the Company's books and records to examine and copy all documents and materials relating to Executive's compensation under this Agreement. Notwithstanding the foregoing, if any audit finds that Company underpaid or under-compensated Executive by at least five percent (5%) or more, and such findings are independently corroborated by a licensed CPA, Company shall reimburse the Executive for all costs and expenses incurred by Executive during said audit, plus interest calculated at the then-current legal rate.

**10.0 <u>DISPUTES: ARBITRATION</u>**. Each of Company and Executive mutually consent to the resolution by binding arbitration of all past, present, or future claims or controversies, actions or choses in action, whether or not arising out of or related to Executive's application for employment, or the terms of this Agreement, or the Contract's termination (collectively "Claims") that may arise. The Parties each agree that said arbitration recognize that it is in the interest of both the Company and Executive that disputes be resolved in a manner that is fair, confidential, expeditious, economical, final and less burdensome or adversarial than court litigation. The Parties each agree to that Claim resolution shall be handled by a neutral arbitrator at the American Arbitration Forum ("AAA") using its then-current commercial arbitration rules (the "AAA Rules"). Each Party, by signing below, hereby irrevocably waives, to the fullest extent permitted by law, his right to a trial by jury for claims arising under the foregoing provision. Executive further acknowledges and agrees that he may file administrative charges with the Equal Opportunity Commission (EEOC) or similar federal, state or local agency, but that upon receipt of a "right-to-sue letter" or similar administrative determination, Executive must submit any pursued claims to binding arbitration as described above. This Section shall survive termination or expiration of the Agreement.

**11.0 <u>SECTION 409A COMPLIANCE</u>**. The Parties intend for this Agreement and any payments, compensation, remuneration and benefits provided hereunder, fully comply with Section 409A of the U.S. Internal Revenue Code of 1986, as amended ("Section 409A") and, accordingly, to the maximum extent permitted, all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under that Section. Notwithstanding the foregoing, the Executive has been afforded an opportunity to seek independent legal and/or tax advice from an independent attorney or advisors of his choosing concerning this Agreement. Executive acknowledges and agrees that Company does not and cannot guarantee the tax treatment of any payments or benefits provided hereunder, whether pursuant to the Internal Revenue Code, or any other federal, state, local or foreign tax laws or regulations.

**12.0 <u>MISCELLANEOUS</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.1. Entire Agreement**. This Agreement, coupled with all annexes, attachments, amendments and addendums hereto, including without limitation the Offer Letter and all of its respective attached materials, collectively constitute the entire agreement by the Parties, and is intended to supersede and replace any prior agreements, arrangements, accords and understandings between them concerning the subject matter referenced herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2. Amendments; Waiver**. This Agreement shall only be amended or modified via a written instrument signed by both Parties hereto. Further, the failure of any Party to exercise or enforce any right or provision of this Agreement shall not constitute a waiver of such right or provision unless clearly and explicitly stated in a signed writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.3. Severability**. The Parties hereby agree that in the event any article or part thereof of this Contract is held to be unenforceable or invalid, then said article or part shall be struck, and all remaining provisions shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.4. Choice of Law**. This Agreement shall be governed, interpreted, and construed in accordance with the laws of the State of California, with the exception of its Choice of Law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.5. Further Assurances**. Each of the Parties will, from time to time, at the request of the other Party and without further consideration, execute and deliver other documents and take other actions as the other Party may reasonably request to perform as contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.6. Interpretation**. No provision of this Agreement shall be construed against any Party merely because that Party (or its counsel) drafted or revised the provision in question. Rather, this Agreement shall be deemed to be "jointly" prepared by the Parties and therefore any ambiguity, omission or uncertainty shall be interpreted accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.7. Survival**. Any provision of this Agreement which expressly states that it is to continue in effect following the termination or expiration thereof, or which by its very nature would reasonably be deemed to survive said termination or expiration, shall so survive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.8. Force Majeure**. Neither Party shall be liable for any material delay or failure of performance caused by catastrophic events that occur after the Effective Date and are beyond the reasonable control of the Parties, including without limitation: labor strikes, insurrection, war, pandemic, fire, flood, earthquake, tornado, tsunami or Acts of God. Each Party shall be responsible for notifying the other within a reasonable time if it is unable to perform due to the circumstances referenced in this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.9. Third-Party Beneficiaries**. This Agreement is made and entered into for the sole protection and benefit of the Parties and is not intended to convey any rights or benefits upon a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.10. Assignments**. No Party may assign this Agreement in whole or in part without the other Party's prior written consent, which shall in no event be unreasonably withheld or delayed. Notwithstanding the foregoing restriction, any material change in the ownership or control of a Party resulting from a merger, consolidation, major financing event, or transfer or sale of all or substantially all of a Party's equity or assets, shall not be considered an assignment for purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.11. Headings**. Headings are offered for illustration purposes only and are not intended to serve as material components of this Agreement.

**IN WITNESS WHEREOF**, each of Company and Executive have caused this Agreement to be executed by its duly authorized officers as of the date first above written and intend that it be an enforceable agreement binding upon each of them.

---

| | |
|:---|:---|
| **FOR VERSES, INC. (Company)** |  |
| <br> /s/ Steven Swanson | <br> /s/ Dan Mapes |
| Steven Swanson, | Dan Mapes |
| Chief Administration Office |  |
| **EXECUTIVE:** |  |
| /s/ Gabriel René |  |
| Signature |  |
| Gabriel René |  |

---

**ANNEX A**

(Offer Letter)

![](ex10-1_001.jpg)

Gabriel René

6415 W. Olympic Blvd.

Los Angeles CA 9004

Email: <u>[\*\*\*]</u>

December 31, 2021

Welcome to your next adventure with VERSES, Inc!

Hi Gabriel,

We are very excited to have you continue leading the VERSES evolution! We look forward to our future success as you transition over to the status of employee of VERSES, Inc. This is your offer letter of employment, and in the following pages you will find the details of this exciting new chapter, including compensation, title, benefits, equity, and some additional information to know before your official hire date.

If you have any questions, please reach out to Lynda Ryan, Sr. Manager, People Operations, directly at any time at [\*\*\*].

We look forward to receiving your YES and continuing with us on this exciting adventure!

---

| | |
|:---|:---|
| */s/ Steven Swanson* | */s/ Dan Mapes* |
| *Steven Swanson* | *Dan Mapes*<br>|
| *Chief Administration Officer* |  |

---

 

SUMMARY OF EMPLOYMENT OFFER

Company: VERSES, Inc. (the "Company").

Start Date: January 1, 2022

Position: Founder and Chief Executive Officer which will report directly to the Board of Directors. This a regular full-time role; classified as exempt, which means you are not overtime eligible.

Base Compensation: Annual Salary: Three Hundred Thousand Dollars ($300,000), (less applicable taxes and withholdings) paid per standard company payroll practices. We currently pay on a semi-monthly basis. (24 pay periods per year).

Incentive Compensation: You will be eligible to earn additional incentive compensation which may include stock options, bonus incentives or other programs. Please see the Attachment A Incentive Compensation Program information., and incorporated herein.

Location & Hours: As a global remote workforce, you will be working from your home office in the State of California. We generally work standard business hours, please check with your manager about what hours are expected and in which time zone.. You may be eligible for other reimbursement programs such as cell phone & Internet and we will review these programs with you as part of your new hire orientation.

As part of your role, you can anticipate a reasonable amount of travel and all travel expenses are reimbursable per company policies.

Benefits: You will be eligible to participate in the Company's benefit plan on the 1st of the month following your start date. The Company offers generous health insurance plans, and financial and wellbeing programs which have been designed to be one of the most competitive in the industry. We believe you will appreciate VERSES' decisions on this important aspect of the compensation plan. We know you will be working hard, and we want you to know that the Company wants to do everything it can to make that hard work be fairly compensated. Details of the Company's benefit program will be reviewed with you as part of new hire orientation.

Paid Time Off, as provided in our Responsible Time Off policy, includes vacation time, sick leave hours that meet or exceed State and Federal requirements, and paid holidays each year. Details regarding our Responsible Time Off Policy shall be provided during your new hire orientation.

TERMS OF YOUR EMPLOYMENT WITH VERSES

***Obligations to the Company****.* You agree to the best of your ability and experience that you will at all times loyally and conscientiously perform all of the duties and obligations required of and from you pursuant to the terms hereof. While you are employed with the Company (the "Employment Period"), you further agree that (i) you will devote all of your business time and attention to the business of the Company, you will not render during work hours commercial or professional services of any nature to any other person or organization, whether or not for compensation, without the prior written consent of the Company, (H) you will not directly or indirectly engage or participate in any business that is competitive in any manner with the business or proposed business of the Company, and (iii) you will not assist any other person or organization in competing with the Company or in preparing to engage in competition with the business or proposed business of the Company. Nothing in this Letter Agreement will prevent you from accepting speaking engagements in exchange for honoraria, from serving on boards of charitable organizations, or from investing in other businesses provided you are not actively participating in any such business as a director, employee, independent contractor, partner, principal, agent or otherwise, and provided further that any such business is not competitive with the business or proposed business conducted by the Company (as conducted now or during the Employment Period), and no consent from the Company shall be required for any such activities. You will comply with and be bound by the Company's operating policies, procedures and practices from time to time in effect during the Employment Period.

 

 

Your acceptance of this offer and commencement of employment with the Company is contingent upon the execution and delivery of the Employee Confidential Information, Invention Assignment and Arbitration Agreement (the "Proprietary Information Agreement") in the DOCUMENT PROVIDED TO YOU AS PART OF THE TERMS OF THIS OFFER OF EMPLOYMENT. You hereby agree to continue to abide by the terms of the Proprietary Information Agreement and further agree that the provisions of the Proprietary Information Agreement shall survive any termination of this offer Letter or of your employment relationship with the Company. You agree that compliance with our Proprietary Information Agreement , requires, among other provisions, the assignment of rights to any inventions and other forms of intellectual property ("IP") made during your employment with the Company and non-disclosure of company IP and information. Any violation of the terms of the Proprietary Information Agreement may result in immediate termination of your employment with the company, and could also result in legal action being taken against you.

***Your employment is at-will****.* Either you or VERSES may terminate your employment at any time, with or without notice. I UNDERSTAND AND ACKNOWLEDGE THAT MY EMPLOYMENT WITH VERSES IS FOR AN UNSPECIFIED DURATION AND CONSTITUTES "AT-WILL" EMPLOYMENT. I ALSO UNDERSTAND THAT ANY REPRESENTATION TO THE CONTRARY IS UNAUTHORIZED AND NOT VALID UNLESS OBTAINED IN WRITING AND SIGNED BY AN AUTHORIZED OFFICER OF THE COMPANY. I ACKNOWLEDGE THAT THIS EMPLOYMENT RELATIONSHIP MAY BE TERMINATED AT ANY TIME, WITH OR WITHOUT GOOD CAUSE OR FOR ANY OR NO CAUSE, AT THE OPTION EITHER OF THE COMPANY OR MYSELF, WITH OR WITHOUT PRIOR NOTICE. For the avoidance of doubt, nothing in this At-will Employment Section is intended to interfere with rights to engage in protected concerted organizing activity under Section 7 of the National Labor Relations Act.

 

***Employment Conditions****.* Prior to your employment, and as a condition of you starting, you will be required to pass a background check, and (where applicable) provide documentation sufficient to comply with US Work Authorization I-9 requirements confirming your eligibility to be employed by VERSES in the U.S.A.

 

Additional conditions of your employment include: signing and acknowledging our Employee Handbook and any other documents presented to you as part of your onboarding process or as part of your ongoing employment with VERSES.

**SIGNING ON THE DOTTED LINE:**

We hope this Offer letter is helpful in explaining the opportunity. We look forward to receiving your signed acceptance and joining the team! Please be sure to review and accept no later than January 1, 2022.

This offer, once accepted, constitutes the entire agreement between you and VERSES with respect to the subject matter hereof and supersedes all prior offers, negotiations and agreements, if any, whether written or oral, relating to such subject matter. You acknowledge that neither VERSES nor its agents have made any promise, representation or warranty whatsoever, either express or implied, written or oral, which is not contained in this agreement for the purpose of inducing you to execute the agreement, and you acknowledge that you have executed this agreement in reliance only upon such promises, representations and warranties as are contained herein.

I have read and understood this Offer of Employment and its terms. I acknowledge, and accept this Offer of Employment with VERSES, Inc.

---

| | | |
|:---|:---|:---|
| Signature: | /s/ Gabriel René  | Date: <u>Jan 13, 2022</u> |
|  | Gabriel René |  |

---

*Emailed with this letter and per terms of employment*

 

*EMPLOYEE CONFIDENTIAL INFORMATION, INVENTION ASSIGNMENT AND ARBITRATION AGREEMENT*

 

**Attachment A to Offer of Employment for Gabriel Rene**

**PRE-EXISTING (NON-COMPENSATORY) SHARES**

*Shares in VTL* As a Co-Founder of VERSES Technologies Inc. ("VW) you currently hold the number of Class B shares in that entity referenced below. These Class B Shares have already been awarded to you via a previous arrangement with VTI and are subject to their own terms and restrictions. As such, they will be treated as separate from any equity compensation discussed herein.

 

*Founder's Class B Shares in VT1*: 5,000,000<sup>1</sup>

**INCENTIVE COMPENSATION**

*Variable Compensation.* You may be eligible to earn additional incentive compensation based on your meeting measurable objectives and outcomes, all as set forth in a separate plan document (the "Variable Compensation Plan"). Performance against the Variable Compensation Plan will be measured and paid out on an annual basis. The Variable Compensation Plan will be developed jointly by you and the Board of Directors of the Company<sup>2</sup> (the "Board") within 90 days of the Start Date, and your annual bonus will be prorated for the year based on your start date.

 

*Stock Options.* In connection with the commencement of your employment, commensurate with your role, and subject to approval by the Board, you may be granted options to purchase or acquire additional shares of stock of the Company (collectively referred to as the "Options") under the terms of the Company's then-current Equity Incentive Plan(s) (the "Plan" or "Plans") subject to applicable law and the approval of such Plan by government securities regulators and the stock exchange(s) that such shares are (or will be) listed upon.

1 Per your prior arrangement with VII, the 5 million Class B Shares may be converted to a total of 31,250,000 shares, using a multiple of 6.25 per Founder Share.

2 in addition to VERSES, Inc., the term "Company" may, unless otherwise specified, also refer to any one or more of the following entities: (i) Verses Logistics, Inc., a Wyoming, USA Corporation; (ii) VERSES Technologies, Inc., a Canadian corporation (the successor in interest to VERSES Labs, Inc.); (iii) VERSES Health, inc., a Wyoming USA Corporation; or (iv) such other VERSES-related entity as the Company shall designate in writing via an amendment or addendum to this Attachment A, subject to regulatory compliance and stock exchange listing requirements as appropriate.

**ACKNOWLEDGEMENT:**

---

| |
|:---|
| /s/ Gabriel René |
| Gabriel Rene |

---

**ANNEX B**

**Executive Severance Policy**

**ANNEX C**

**ICA Release**

**ANNEX D**

EMPLOYEE CONFIDENTIAL INFORMATION, INVENTION ASSIGNMENT AND ARBITRATION AGREEMENT

**<u>Annex C</u>**

SEPARATION CERTIFICATION

**<u>Annex D</u>**

CONFLICT OF INTEREST GUIDELINES

## Exhibit 10.2

**Exhibit 10.2**

**Employment Contract**

 **Executive: Kevin Wilson**

This Employment Contract (the "Contract") is entered into by and between VERSES Solutions, Inc., a Wyoming for-profit corporation with a principal place of business at 2121 Avenue of the Stars, 8th Floor, Los Angeles, CA 90067. ("Company"); and Kevin Wilson ("Executive"), an individual resident of the State of California, U.S.A., as of March 1st, 2025 {the "Effective Date").

● WHEREAS, the Company is an Information Technology company formed to, *inter alia,* progress on technical research and development, develop technical products and services expected to yield significant value to future customers with the intention to create and/or capture significant value for its investors;

● WHEREAS, the Company is a wholly owned subsidiary of VERSES Technologies USA Inc (VTU) which in turn is a wholly owned subsidiary of VERSES Al Inc., a Canadian Company which a principal place of business at 205 - 810 Quayside Drive, New Westminster, BC, V3M 6B9 Canada ("VAI").

● WHEREAS, starting in 2018, VTU engaged with Executive via a series of Independent Contractor Agreements ("ICA's") for the Executive to provide Chief Financial Officer ("CFO") services.

● WHEREAS, in September 2021, the Board of Directors for VERSES Al, Inc. ("VAI") legally appointed Executive to be its Chief Financial Officer ("CFO") and Secretary.;

● WHEREAS, in January 2022, VERSES Inc (VINC) employed Executive to be the full time CFO for VAI and all of its subsidiaries.

● WHEREAS, in June 2022, VAI was listed on the CBOE.CA (formerly called the NEO), a mid-size stock exchange in Canada (with a ticker symbol of VERS) and in September 2022 was cross listed on the OTCX and later OTCQB (with a ticker symbol of VRSSF);

● WHEREAS, Company recognizes that the Executive's qualifications, skills, abilities and efforts have been integral to its development to date and recognizes that Executive will be indispensable to the Company's future progress;

● WHEREAS, VAI intends to uplist to the NASDAQ in order to better access capital markets to fund operations, and thus plans to legally appoint an outward-facing capital marketsoriented CFO and plans to legally appoint Executive to be its Chief Accounting Officer and continue to perform vital functions for VAI and its subsidiaries;

● WHEREAS, the Parties have agreed to the provisions of this Agreement with the intention to appropriately align the incentives of Executive and the Company for their mutual benefit.

NOW, THEREFORE, in consideration of the promises, covenants, conditions and restrictions outlined below, and for other good and valuable consideration, the receipt and sufficiency of which being hereby specifically acknowledged, the Parties agree effective March 1, 2025 as follows:

1. <u>EMPLOYMENT</u>.
 From and after the Effective Date, the Company hereby agrees to employ the Executive as the
 Chief Accounting Officer and Executive Vice President of Finance and Accounting, and the
 Executive hereby accepts such employment, on the terms and conditions detailed herein including
 the attachments and exhibits hereto. As a part of his duties for the Company, the Executive
 agrees that the Board of Directors for the parent company, VERSES Al Inc. (VAI) intends to
 appoint him as its Chief Accounting Officer (CAO) and Secretary, and, as such, the Executive
 and VAI will enter into a separate indemnity agreement to cover the risks associated with
 that appointment. The Executive agrees to faithfully and to the best of his skills, experience,
 and ability, perform the duties required of his position and abide by the terms of this Agreement.

2. <u>COMPENSATION</u>.
 As consideration for employment services rendered while performing the Position, Executive
 shall be compensated in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **Base Salary.** Executive's Base Salary shall be $275,000 per year, paid throughout the year on the Company's regular payroll cycle.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **Performance Bonus Compensation.** To ensure the Executive is incentivized to complete critical activities of specific benefit to the Company, the Executive shall be eligible to earn performance bonuses by achieving specific objectives and milestones. See more details of the Performance Bonus in Attachment A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **Variable Incentive compensation.** To ensure the Executive is motivated to work with and help ensure the executive team achieve certain goals, the Executive shall be eligible to earn Variable Incentive compensation as set forth in Attachment B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. **Equity Compensation.** The executive shall be eligible to receive equity compensation in the form described in the Equity Incentive Plan as adopted by the Company. See more details of the Executive's equity incentive opportunities in Attachment C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. **Benefits.** Company will provide benefits for Executive commensurate with benefits provided to all executives and employees of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. **Reimbursement of Expenses.** Company shall reimburse the Executive for reasonable, documented, out-of-pocket approved expenses incurred in connection with the performance of Executive's duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. **Severance Compensation.** Executive shall be entitled to receive severance compensation, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Upon
 the occurrence of a Triggering Event (as defined below), Executive shall be entitled to receive
 a Severance Package consisting of: (i) a monetary payment equal to thirty-six (36) months'
 worth of Executive's Base Salary within thirty (30) days of said Triggering Event;
 (ii) continuation for 36 months of Executive's medical and dental insurance under COBRA
 or similar procedural mechanisms (in the event the Triggering Event results in termination
 of Executive's employment with the Company); and (iii) immediate, accelerated vesting
 of all stock options, equity and related compensation that would otherwise be subject to
 vesting requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Triggering
 Event: A "Triggering Event" shall consist of: (i) any Termination of Executive
 by the Company, Without Cause, as described in Section 4(b); (ii) any Termination of employment
 by the Executive, With Cause, as described in Section 4(c); (iii) the assignment to Executive
 of a job role or position duties materially inconsistent with those contemplated by this
 Agreement; (iv) the interposition of any direct reporting supervisor or manager over Executive
 other than the Company's CFO, CEO and/or President; or (v) VAI's failure, within
 30 days of the Effective Date, to execute the Indemnity Agreement described in Section 7
 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Upon
 the occurrence of a Change in Control (as defined below), Executive shall be entitled to
 receive a Severance Package consisting of: (i) a monetary payment equal to sixty (60) months'
 worth of Executive's Base Salary within thirty (30) days of such Change in Control;
 (ii) continuation for 60 months of Executive's medical and dental insurance under COBRA
 or similar procedural mechanisms (in the event the Change in Control results in termination
 of Executive's employment with the Company); and (iii) immediate, accelerated vesting
 of all stock options, equity and related compensation that would otherwise be subject to
 vesting requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Change
 of Control Defined: (a) Approval by the shareholders of the Company of a complete liquidation
 or dissolution of the Company; or (B) the consummation of a reorganization, merger, sale,
 share exchange, consolidation or other disposition of all or substantially all of the stock
 and/or assets of the Company (a "Business Combination") unless, after such Business
 Combination: (i) all or substantially all of the individuals and entities who were the actual
 or beneficial owners, respectively, of the outstanding stock and voting securities of the
 Company immediately prior to such Business Combination still own, directly or indirectly,
 more than 50% of, respectively, the then-outstanding shares of stock or the combined voting
 power of the then-outstanding voting securities entitled to vote generally in the election
 of Directors of the Company (or companies) resulting from such Business Combination in substantially
 the same proportions as tehri ownership was immediately prior to such Business Combination;
 and (ii) at least a majority of the members of the Board of Directors of the Company as constituted
 immediately prior to such Business Combination, with each Board member having identical or
 substantially similar voting power as he/she had prior to said Combination. Further, for
 purposes of Subsection (B), any business Combination implemented by the Company's parent
 organization (Verses) or jointly by its CEO and President (Gabriel Rene and Dan Mapes) acting
 together shall not constitute a "Change of Control" or Triggering Event as defined
 herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Should
 Executive's employment with the Company terminate for any reason described in Sections
 4(a) (By Company, With Cause) or 4(d) (By Executive, Without Cause), Executive shall be entitled
 to receive a severance package consisting of: (i) a monetary payment equal to twelve (12)
 months' worth of Executive's Base Salary within thirty (30) days of Executive's
 last day of employment; (ii) continuation for 12 months of Executive's medical and
 dental insurance under COBRA or similar procedural mechanisms; and (iii) immediate, accelerated
 vesting of all stock options, equity and related compensation that would otherwise be subject
 to vesting requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Executive's
 receipt of any Severance Package may be conditioned upon Executive's execution of the
 written waiver and settlement of claims document attached hereto as Attachment E.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. **Cumulative Structure.** Nothing in this Agreement is intended to preclude, substitute for, waive, alter, amend, or be provided in lieu of any other compensation to which Executive is entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. **Further Revision.** The Parties may revise the Compensation and other facets of this Agreement via a written amendment or addendum signed by both Executive and Company prior to the expiration of the Initial Term or any applicable Renewal Term (as defined below).

3. <u>DURATION; RENEWAL</u>. This Employment Contract shall begin on the Effective Date and end on March
 31 of the following year (the "Initial Term"), subject to any earlier termination
 as provided in Section 4 below. Unless otherwise earlier terminated according to the terms
 of Section 4 below, Executive's employment shall be renewed under the same terms for
 an additional twelve (12) months. Each subsequent employment period shall be referred to
 as a "Renewal Term."

4. <u>TERM NATION</u>. Subject to the provisions of Section 2(g), Executive's employment with
 Company may be terminated by either Party, voluntarily or involuntarily, as the case may
 be, under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. By Company, For Cause: Company may terminate Executive's employment prior the end of the Initial Term (or any Renewal Term) in the event of the Executive's: (a) felony conviction; (b) Executive's willful, continued and unexcused failure to perform his duties in the Position for a period of at least thirty (30) days after having been notified in writing by Company of said failure and been given a reasonable opportunity to cure; (c) gross or willful misconduct that results, or is substantially likely to result, in serious damage to the Company or its reputation, but only if the Executive fails to cure the damage or misconduct after the Company has provided written notice of such misconduct and provided a period of at least thirty (30) days to cure after the notice; or (d) any violation of the Confidentiality, Non-Disparagement and/or Non-Solicitation provisions found herein, but only where such violations have been adjudicated and independently verified by a neutral third party selected and consented to by both Parties. Such adjudication and verification shall be made only following a meaningful opportunity for the Executive to present evidence to, and be heard by, such neutral third party. Involuntary termination by Company may only be effectuated via a formal resolution adopted by the Company Board and served upon Executive (or, if applicable, his estate or duly authorized representative) in accordance with the Notice provisions herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. By Company, Without Cause. Company may terminate Executive's employment for any reason other than those set forth in Section 4(a) upon 30 days' written notice to Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. By Executive, With Cause. Executive may terminate his employment with the Company at any time by serving written notice upon the Company or, if applicable, its successor(s) or assignee(s) of any material breach of this Agreement that remains uncured for at least 30 days after having been notified in writing by Executive of said breach. As the sole exception to the foregoing, In the event that VAI fails to provide a binding indemnification as contemplated by this agreement, within 30 days of the execution of this agreement, such failure shall be grounds for Executive to terminate with cause without any further notice Any termination by Executive shall be effectuated by serving written notice upon Company using the Notice provisions herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. By Executive, Without Cause. Executive may terminate his employment with the Company at any time by serving written notice on the Company advising of such termination.

Termination (whether voluntary or involuntary) shall have no effect on any compensation or benefit that Executive earned prior to said termination, including without limitation wages, health insurance coverage, stock options (if vested) and retirement benefits, which shall be paid to Executive in accordance with any timetables imposed by applicable law. In addition, if Company involuntarily terminates Executive's employment on any grounds other than those specifically enumerated in Section 4(a), Executive shall also be entitled to any other rights, compensation and/or benefits as may be due to Executive in accordance with the terms and provisions of any agreements, contracts, grants, plans, or programs of the Company. Company shall pay Executive all such compensation and/or benefits to Executive within the timeframes mandated by law.

5. <u>CONFIDENTIALITY; NON-DISPARAGEMENT; IP ASSIGNMENT</u>. Executive acknowledges having read and agreeing to
 fully abide by the terms of Attachment D, "Employee Confidential Information and Inventions
 Agreement," distributed to Executive, the contents of which are incorporated herein
 by reference.

6. <u>REPRESENTATIONS AND WARRANTIES</u>. The Parties hereto make the following representations and warranties
 to one another:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. By Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. is
 a corporation, duly organized, validly existing, and in good standing under the laws of the
 State of Wyoming, U.S.A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. It
 has full power and authority to carry on its business as it is now being conducted, and for
 performing the activities contemplated by this Agreement, with no additional permissions,
 resolutions, orders, or contingencies required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The
 individual signing on its behalf below has sufficient authority to legally bind the Company
 to contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. No
 proceeding is either currently pending, or reasonably likely to be asserted in the near future,
 by any third party concerning, or that would have a material adverse effect upon, Company's
 ability to enter into and perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. The
 Company shall comply with all pertinent policies and procedures, and all applicable laws,
 rules, regulations and court decisions concerning this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. By Executive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. No
 proceeding is either currently pending, or reasonably likely to be asserted in the near future,
 by any third party concerning, or that would have a material adverse effect upon, Executive's
 ability to enter into and perform his obligations under this Agreement.

7. <u>INDEMNIFICATION</u>.
 Company and Executive contemplate execution of an agreement with VAI, whereby VAI shall provide
 indemnification to Executive as set forth below ("Indemnity Agreement"). The
 terms set forth below shall constitute the minimum indemnification to be provided by VAI,
 but VAI and Executive may separately agree, in writing, to provide additional indemnity protection
 for Executive. VAI shall execute such Indemnity Agreement within 30 days of the Effective
 Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Indemnification to be provided. VAI shall indemnify and hold harmless Executive for any claim brought against Executive by a third party involving a claim that Executive violated the rights of said third party, or any law, statute, rule, regulation or court decision, by virtue of Executive's performance of his duties under the Position, under any employment position Executive has ever previously held or when following instructions given by the senior management or Board of Directors of VAI or any of its subsidiaries during the term of Executive's employment with the Company or any of those entities. VAI shall indemnify and hold harmless Executive from any liabilities, losses, damages, judgments, awards, fines, penalties, costs and expenses (including reasonable attorneys' fees and costs of suit) incurred by Executive as a result of such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Terms of Indemnification. If Executive seeks indemnification under this Section, VAI's indemnification obligations are conditioned upon Executive: (a) providing timely written notice to VAI within thirty (30) days after Executive has knowledge of a valid claim, except that failure to timely provide such notice will relieve VAI of its obligations to the extent: that 1) VAI was not independently aware of the claim with the foregoing timeframe; and 2) VAI is materially prejudiced as a direct result of Executive's delay in providing notice of the claim. Executive shall cooperate and, at VAI's request and expense, assist in defense of the claim for which Company is providing indemnification. Executive shall have the right to direct his own defense of the claim, as well as any related settlement negotiations. Executive shall have the right to approve or reject any settlement agreement that involves admission(s) of fault by, or imposes substantial monetary or injunctive relief upon Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Insurance. VAI shall maintain a policy of Directors and Officers Insurance for benefit of the Executive, with amounts reserved for coverage exclusively for claims made against Executive. Such amount to be negotiated with the insurance broker in coordination with the Board of Directors and other covered officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Notwithstanding the foregoing, Executive shall be afforded the maximum indemnity rights afforded to any Executive or Board Member by VAI. If VAI provides indemnity rights to any Executive or Board member that exceeds the rights set forth in this Agreement, such superior rights shall automatically be conferred upon Executive without any further action on the part of any party.

8. <u>AUDIT RIGHTS</u>. Once per calendar year, Executive, or Executive's estate or duly appointed
 representative, may, at Executive's own expense, during regular business hours and
 upon reasonable advance notice to the Company, during any period for which the Executive
 (or his estate) is entitled to any payments or other forms of compensation hereunder and
 for one (1) year thereafter, audit the Company's books and records to examine and copy
 all documents and materials relating to Executive's compensation under this Agreement.
 Notwithstanding the foregoing, if any audit finds that Company underpaid or under-compensated
 Executive by at least five percent (5%) or more, and such findings are independently corroborated
 by a licensed accountant, Company shall reimburse the Executive for all costs and expenses
 incurred by Executive during said audit, plus interest calculated at the then-current legal
 rate.

9. <u>SECTION 409A COMPLIANCE</u>. The Parties intend for this Agreement and any payments, compensation,
 remuneration and benefits provided hereunder, to fully comply with section 409A of the U.S.
 Internal Revenue Code of 1986, as amended ("Section 409A") and, accordingly,
 to the maximum extent permitted, all provisions of this Agreement shall be construed in a
 manner consistent with the requirements for avoiding taxes or penalties under that Section.
 Notwithstanding the foregoing, the Executive has been afforded an opportunity to seek independent
 legal and/or tax advice from an independent attorney or advisors of his choosing concerning
 this Agreement. Executive acknowledges and agrees that Company does not and cannot guarantee
 the tax treatment of any payments or benefits provided hereunder, whether pursuant to the
 Internal Revenue Code, or any other federal, state, local or foreign tax laws or regulations.

10. <u>MISCELLANEOUS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Entire Agreement. This Agreement, coupled with all annexes, attachments, amendments and addendums hereto, collectively constitute the entire agreement by the Parties, and is intended to supersede and replace any prior agreements, arrangements, accords and understandings between them concerning the subject matter referenced herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Amendments; Waiver. This Agreement shall only be amended or modified via written instrument signed by both Parties hereto. Further, the failure of any Party to exercise or enforce any right or provision of this Agreement shall not constitute a waiver of such right or provision unless clearly and explicitly stated in a signed writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Severability. The Parties hereby agree that in the event any article or part thereof of this Agreement is held to be unenforceable or invalid, then said article or part shall be struck, and all remaining provisions shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Choice of Law. This Agreement shall be governed, interpreted, and construed in accordance with the laws of the State of California, with the exception of its Choice of Law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Further Assurances. Each of the Parties will, from time to time, at the request of the other Party and without further consideration, execute and deliver other documents and take other actions as the other Party may reasonably request to perform as contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Interpretation. No provision of this Agreement shall be construed against any Party merely because that Party (or its counsel) drafted or revised the provision in question. Rather, this Agreement shall be deemed to be "jointly" prepared by the Parties and therefore any ambiguity, omission or uncertainty shall be interpreted accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Survival. Any provision of this Agreement which expressly states that it is to continue in effect following the termination or expiration thereof, or which by its very nature would reasonably be deemed to survive said termination or expiration, shall so survive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Third-Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the Parties and is not intended to convey any rights or benefits upon a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Assignments. No Party may assign this Agreement in whole or in part without the other Party's prior written consent, which shall in no event be unreasonably withheld or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Notwithstanding the foregoing restriction, any material change in the ownership or control of a Party resulting from a merger, consolidation, major financing event, or transfer or sale of all or substantially all of a Party's equity or assets, shall not be considered an assignment for purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Headings. Headings are offered for illustration purposes only and are not intended to serve as material components of this Agreement.

IN WITNESS WHEREOF, each of Company and Executive have caused this Agreement to be executed by its duly authorized officers as of the date first above written and intend that it be an enforceable agreement binding upon each of them.

---

| | |
|:---|:---|
| /s/ Gabriel Rene | /s/ Kevin Wilson |
| For Company | Kevin Wilson |
| <u>3/10/2025</u> | <u>3/10/2025</u> |
| Date | Date |

---

**ATTACHMENT A**

**Performance Bonus Compensation**

*Annual Performance Bonus.* Executive is eligible to earn additional compensation based on achieving specific measurable objectives and outcomes tailored to the Executive.

At least once per year, the Executive's manager and the Executive shall collaboratively determine the performance goals and compensation amounts for the Executive's Performance Bonus for the upcoming fiscal year in substantially the same format as described in the table below.

The achievement of the Goals shall be confirmed by the Executive and the Executive's manager.

The Chief Executive Officer and/or the Board of Directors shall have the discretion to increase or reduce the performance bonus amounts as set forth in the BOD/CEO adjustment factors as set forth in the table below.

The Executive's achievement of the performance goals set forth in the Performance Bonus Plan shall be measured no later than by the end of the fiscal year in which the bonus is to be earned. If earned, the Performance Bonus shall be paid to Executive no later than the close of the quarter following the quarter in which the bonus is earned.

**FYE 3/31/2026 Performance Bonus Compensation Goals for Kevin Wilson**

---

| | | |
|:---|:---|:---|
| **Performance Bonus Goals** | **Eligible Bonus** | **BOD Adjustment Factor<br>(overage x% / underage x%)** |
| NASDAQ readiness project complete and uplist requirements met. Prepare and file FYE 3/31/2025 FS's Form 10k on time. | $50000 | 200%/25% |
| Set up Genius billing and collections systems and revenue recognition policies | $25000 | 150%/50% |
| Set up Spatial Domain billing and collections systems and revenue recognition policies | $25000 | 400%/20% |
| $10 million in revenue for Spatial Domains | $50000 | 400%/20% |
| $100 million in revenue for Spatial Domains | $250000 | 200%/25% |

---

**ATTACHMENT B**

**Variable Incentive Compensation**

*Annual Variable Incentive Compensation.* Executive shall be eligible, on an annual basis, to receive Variable Incentive Compensation based upon achievement of Company goals. For purposes of the Variable Incentive Compensation goals, "Company" shall mean and include VAI as well as its subsidiaries and affiliated entities. The goals shall be set by the Executive, the entire Executive team, the CEO and/or the Board of Directors. The goals are stretch goals for the Company which require extraordinary team performance and as such are separate from the Performance Goals.

For example, the Variable Incentive Compensation goals might include funds raised through capital fundraising and/or revenue generated by contracted sales of the Company's products/services sold to customers.

Prior to the close of the fourth quarter of each fiscal year, Executive's direct supervisor or manager, in collaboration with Executive, shall determine the fundraising and revenue goals, and compensation amounts, for the Executive's Variable Incentive Compensation for the upcoming fiscal year.

The Chief Executive Officer and/or the Board of Directors shall have the discretion to increase or reduce the Variable Incentive Compensation amounts as set forth in the BOD/CEO adjustment factors as set forth in the table below.

At least once per year, the executive team, the CEO and/or the Board of Directors shall collaboratively determine the Company goals to set for the Variable Incentive Compensation as well as the available bonus pool and the% available to each Executive as shown in the table below.

The Chief Executive Officer and/or the Board of Directors shall have the discretion to increase or reduce the variable incentive compensation as indicated in the table below.

**FYE 3/31/2026 Variable Incentive Compensation for Kevin Wilson**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Variable Incentive Goals** | **Goal Amount** | **Available Pool for Executive Team** | **% of pool Available<br> to Executive**  | **BOD Adjustment Factor<br>(overage x% / underage x%)**  |
| Fund Raising | $100<br> million | $1 million (1%) | 10% | 150%/50% |
| Genius Revenue | $10<br> million | $500,000 (5%) | 10% | 200%/25% |

---

**ATTACHMENT C**

**Equity Incentive Compensation**

Executive is eligible to receive equity incentive compensation as set forth in the Omnibus Equity Plan adopted by VAI in June 2022.

The Executive shall be eligible to receive grants of equity as follows:

● Periodicity: Quarterly is preferred but at least annually

● Executive's annual allocation% of the option pool: 1%

● Estimated annual grant for 2025: 500,000 shares

**ATTACHMENT D**

**EMPLOYEE CONFIDENTIAL INFORMATION AND INVENTIONS AGREEMENT**

## Exhibit 10.3

**Exhibit 10.3**

![](ex10-3_001.jpg)

James Hendrickson

Email: <u>james.hendrickson@verses.ai</u>

September 1, 2024

Hi James,

On behalf of the VERSES team, I'd like to express our deepest gratitude for your many contributions to our journey to date! Per our discussion, we are thrilled to offer you the promotion to the new position of Chief Operating Officer. In addition to accomplishing a significant body of work, your ability to help move our mission forward by living our values and your focused personal commitment have had a significant impact on the team and in shaping VERSES.

Our mission is no small task, but with your continued example and contributions, we have even more confidence in our ability to make an impact. In the following pages you will find the details concerning this exciting opportunity.

If you have any questions at all, please reach out to Lynda Ryan, Sr. Manager, People Operations, at <u>lynda.ryan@verses.a</u>i directly at any time.

Congratulations on a job well done and here's to our bright future together!

---

| |
|:---|
| */s/ Gabriel René* |
| Gabriel René |
| Co-Founder & CEO |

---

**SUMMARY OF OFFER**

Company Name: **VERSES Technologies USA Inc. ("VERSES" or the "Company")**

Promotion Effective Date: **June 1, 2024**

Position: **Chief Operating Officer,** which will report directly to **Gabriel René, Founder & CEO.** This is a regular full-time role; classified as exempt, which means you are not eligible for overtime pay.

Base Compensation:

Annual Salary: **Two Hundred Sixty Five Thousand Dollars ($265,000),** (less applicable taxes and withholdings) paid per standard company payroll practices. We currently pay on a semi-monthly basis (24 pay periods per year).

verses.ai \| 5877 Obama Blvd Los Angeles, CA 90230 \| (310) 988-1944

![](ex10-3_001.jpg)

Incentive Compensation: You will be eligible to earn additional incentive compensation which may include stock options, bonus incentives or other programs. Please see the Attachment A Incentive Compensation Program information., and incorporated herein.

Location & Hours: As a global remote workforce, you will be working from your home office in the State of Pennsylvania. We generally work standard business hours, please check with your manager about what hours are expected and in which time zone.. You may be eligible for other reimbursement programs (such as cell phone and Internet) and we will review these programs with you as they become available.

Benefits: You will continue to be eligible to participate in the Company's benefit programs. We believe you will appreciate VERSES' choices on this important aspect of the compensation plan. We know you will be working hard, and we want you to know that VERSES wants to do everything it can to make that hard work be fairly compensated. Paid Time Off, as provided in our Responsible Time Off policy, includes vacation time, sick leave hours that meet or exceed State and Federal requirements, and paid holidays each year. Details regarding our Paid Time Off programs are located on our Confluence page "start here".

**TERMS OF YOUR EMPLOYMENT WITH VERSES**

***Obligations to the Company.*** You agree that you will at all times, to the best of your ability and experience, loyally and conscientiously perform all of the duties and obligations required of and from you pursuant to the terms hereof. While you are employed with the Company (the "Employment Period") you further agree that: (i) you will devoteyour business time and attention to the business of the Company, you will not render during work hours commercial or professional services of any nature to any other person or organization, whether or not for compensation, without the prior written consent of the Company, (ii) you will not directly or indirectly engage or participate in any business that is competitive in any manner with the business or proposed business of the Company, and (iii) you will not assist any other person or organization in competing with the Company or in preparing to engage in competition with the business or proposed business of the Company. Nothing in this Letter Agreement will prevent you from accepting speaking engagements in exchange for honoraria, from serving on boards of charitable organizations, boards of non-competitive companies, participating as a professional advisor or coach, as an adjunct professor, or from investing in other businesses provided you are not actively participating in any such business as a director, employee, independent contractor, partner, principal, agent or otherwise, and provided further that any such business is not competitive with the business or proposed business conducted by the Company (as conducted now or during the Employment Period), and no consent from the Company shall be required for any such activities. You will comply with and be bound by the Company's operating policies, procedures and practices from time to time in effect during the Employment Period.

Your acceptance of this Promotional Offer with the Company is contingent upon your acknowledgement of continued compliance under the Employee Confidential Proprietary Information, Invention Assignment and Arbitration Agreement (the **"CPIIAA")** in the document provided to you as part of the terms of your original Offer of Employment. You hereby agree to continue to abide by the terms of the CPIIAA and further agree that the provisions of said CPIIAA shall survive any termination of your employment relationship with the Company. You agree that compliance with our CPIIAA requires, among other things, the assignment of rights to any inventions and other forms of intellectual property ("IP") made during your employment with the Company, as well as an agreement not to disclose or use company IP and information except as expressly authorized by the Company as part of your official duties. Any violation of the terms of the CPIIAA may result in immediate termination of your employment with the Company, and could also result in legal action being taken against you.

verses.ai \| 5877 Obama Blvd Los Angeles, CA 90230 \| (310) 988-1944

![](ex10-3_001.jpg)

***Your employment is at-will.*** Either you or VERSES may terminate your employment at any time, with or without notice. BY SIGNING BELOW, YOU ACKNOWLEDGE THAT YOU UNDERSTAND AND AGREE THAT YOUR EMPLOYMENT WITH VERSES IS FOR AN UNSPECIFIED DURATION AND CONSTITUTES "AT-WILL" EMPLOYMENT. YOU ALSO ACKNOWLEDGE AND UNDERSTAND THAT ANY REPRESENTATION TO THE CONTRARY IS UNAUTHORIZED AND NOT VALID UNLESS OBTAINED IN WRITING AND SIGNED BY AN AUTHORIZED OFFICER OF THE COMPANY. YOU FURTHER ACKNOWLEDGE AND AGREE THAT THIS EMPLOYMENT RELATIONSHIP MAY BE TERMINATED AT ANY TIME, WITH OR WITHOUT GOOD CAUSE, OR FOR ANY OR NO CAUSE, AT THE OPTION EITHER OF THE COMPANY OR YOURSELF, WITH OR WITHOUT PRIOR NOTICE. For the avoidance of doubt, nothing in this At-will Employment Section is intended to interfere with rights to engage in protected concerted organizing activity under Section 7 of the National Labor Relations Act.

***Employment Conditions.*** Additional conditions of your employment include signing and acknowledging our Employee Handbook and any other documents presented to you as part of your ongoing employment with VERSES.

**SIGNING ON THE DOTTED LINE:**

We hope this Promotion letter is helpful in explaining the opportunity. We look forward to receiving your signed acceptance!

Once accepted, this constitutes the entire agreement between you and VERSES with respect to the subject matter hereof and supersedes all prior offers, negotiations and agreements, if any, whether written or oral, relating to such subject matter. You acknowledge that neither VERSES nor its agents have made any promise, representation or warranty whatsoever, either express or implied, written or oral, which is not contained in this agreement for the purpose of inducing you to execute the agreement, and you acknowledge that you have executed this agreement in reliance only upon such promises, representations and warranties as are contained herein.

By signing below, I acknowledge having read and understood this Promotional Letter and agreeing to its terms. This constitutes my acceptance of continued Employment with VERSES.

---

| | | | |
|:---|:---|:---|:---|
| Signature: | */s/ James Hendrickson* | Date: | **Sep 10, 2024** |
|  | James Hendrickson |  |  |

---

verses.ai \| 5877 Obama Blvd Los Angeles, CA 90230 \| (310) 988-1944

![](ex10-3_001.jpg)

**Attachment A to Promotion Offer for James Hendrickson**

**INCENTIVE COMPENSATION**

***Bonus/Incentive Plans.*** In addition, you may be eligible to participate in the Company's bonus and/or incentive plan(s) (the "Bonus/Incentive Plans") as may be established by the Company from time to time and subject to approval by the Board of Directors annually. you would be eligible to participate in an annual bonus and/or incentive plan as is in place in any current calendar year beginning in the year you are hired. While the % of bonus rate may vary, it is anticipated that you will be eligible for a rate of up to 20% of your then base compensation rate, paid in any combination of cash, equities, or digital options. You acknowledge and agree that the Company's Bonus/Incentive Plans are entirely discretionary and that the Company retains the right to amend or discontinue the Bonus/Incentive Plans at its sole discretion at any time and that such changes shall not constitute any breach of this Employment Agreement or a constructive dismissal of your employment. Performance against the "Bonus/Incentive Plans" is intended to be measured on an annual basis and based on individual and company goals. Your measurable objectives and outcomes will be developed jointly by you and your direct supervisor or manager during each calendar year.

***Stock Options.*** In connection with the commencement of your promotion, commensurate with your role, and subject to approval by the Board of Directors, Company\* recommends that you receive a grant of stock options in the Company\* (the "Option" or "Options") under the terms of Company's\* then-current Equity Incentive Plan(s) ("Plan" or "Plans"), subject to applicable law and the approval of such Plan by government securities regulators and the stock exchange(s) that the shares are (or will be) listed on.

Such Options shall be made at a strike price per share equal to the fair market value of the Company's\* common stock on the date of grant, as determined by the Board in its discretion.

Your options shall vest (and thus shall become exercisable) over a four year period starting on May 28, 2024. There is a 12 month cliff with quarterly steps such that 25% of the Options vest after 12 months, and thereafter one sixteenth (1/16) will vest in each subsequent quarter. You may be eligible to receive additional incentives from time to time, on such terms and subject to such conditions as management and the Board shall determine.

**Options in VERSES Al Inc (VERS.NE) 200,000** (not yet approved but recommended to be granted)

verses.ai \| 5877 Obama Blvd Los Angeles, CA 90230 \| (310) 988-1944

![](ex10-3_001.jpg)

**Accelerated Vesting upon Change of Control.** Provided no Good Cause event (defined below) shall then have occurred, in the event of a Change of Control (also defined below) of VERSES, Inc. all unvested Options shall immediately vest and thereafter be deemed vested Options. ·For purposes of this Promotional Letter, a "Change of Control" of VERSES, Inc. shall mean and refer to either: (i) approval by the shareholders of the Company of a complete liquidation or dissolution of the Company; or (B) the consummation of a reorganization, merger, sale, share exchange, consolidation or other disposition of all or substantially all of the stock and/or assets of the Company (a "Business Combination") unless, after such Business Combination: (i) all or substantially all of the individuals and entities who were the actual or beneficial owners, respectively, of the outstanding stock and voting securities of the Company immediately prior to such Business Combination still own, directly or indirectly, more than 50% of, respectively, the then-outstanding shares of stock or the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of Directors of the Company (or companies) resulting from such Business Combination in substantially the same proportions as their ownership was immediately prior to such Business Combination; or (ii) at least a majority of the members of the Board of said company (or companies) resulting from such Business Combination were members of the Board of Directors of the Company as constituted immediately prior to such Business Combination, with each Board member having identical or substantially similar voting power as he/she had prior to said Combination. Further, for purposes of Subsection (B), any Business Combination implemented by the Company's parent organization (Verses Technologies, Inc., a British Columbia corporation) or jointly by its CEO and President (Gabriel Rene and Dan Mapes) acting together shall not constitute a "Change of Control" or Triggering Event as defined herein.

Also, for purposes of this Letter, "Good Cause" or a "Good Cause Event" shall include, (i) Recipient's failure to perform Recipient's duties or material breach of the terms of the Services Agreement; (ii) Recipient's failure to comply with the policies of the Company or the Company; (iii) Recipient's conviction of, or the entry of a plea of guilty or no contest to, a felony or misdemeanor involving moral turpitude or fraud; (iv) gross negligence in the course of the rendering of services which has a material adverse impact on the Company or the Company; (v) commission by Recipient of an act or fraud, embezzlement, misappropriation, or theft or breach of fiduciary duty (whether or not involving the Company or the Company); or (vi) Recipient's engagement in conduct which, in the Company or Company's reasonable business judgment, is detrimental to Company's or Company's business, goodwill or good name. Notwithstanding the foregoing, an event under clauses (i), (ii), (iv) or (vi) shall not be considered "Good Cause" unless such breach is material and Recipient failed to cure within ten (10) business days after being served written notice thereof.

verses.ai \| 5877 Obama Blvd Los Angeles, CA 90230 \| (310) 988-1944

## Exhibit 10.4

**Exhibit 10.4**

**<u>DIRECTOR COMPENSATION AGREEMENT</u>**

THIS DIRECTOR COMPENSATION AGREEMENT ("**Agreement**") is made and entered into as of March 16, 2022, (the "**Effective Date**") between Verses Technologies, Inc., a corporation formed under the laws of British Columbia, Canada ("**VTI**" or the "**Company**") and Jonathan De Vos (the "**Director**"). Each of Company and Director may be referred to herein as a "Party" or collectively as the "Parties."

WHEREAS the Company's shareholders have decided to elect the Director to the board of directors ("**Board**") of the Company;

WHEREAS, the Director is amenable to accepting the position within the Company's Board, subject to the terms and conditions outlined herein; and

WHEREAS the Company and the Director desire to enter into this Agreement to memorialize the method by which the Director shall be compensated for his role as director of the Company, and for providing services to the Company in such capacity (collectively, the "**Services**").

NOW, THEREFORE, in consideration for the promises, obligations, terms, conditions and restrictions set forth herein, and for such other good and valuable consideration, the receipt and sufficiency of which being hereby expressly acknowledged, the Parties agree as follows:

1. **Term.** This Agreement shall commence on the Effective Date and remain in effect until the termination thereof, in accordance with the provisions
 outlined in Section 3 below.

2. **Compensation.** As compensation for the Director serving on the Board and for providing services to the Company in connection therewith, the Company
 agrees to grant the Director such number of stock options, restricted share units and/or deferred share units (collectively the "**Compensation Securities**") that will allow the Director to purchase an aggregate of 1,000,000 Class A Subordinate Voting Shares in the
 share capital of the Company at an exercise price of $0.80 CAD per share, the terms and conditions set forth in this Agreement and
 in accordance with the Company's then-current stock option plan (the "**Option Plan** "), as amended, restated,
 replaced or superseded from time to time. Said Compensation Securities are subject to the escrow periods imposed by the exchange
 that the securities are to be listed upon (/.e. NEO) with said escrow period ending according to the following schedule:

● Date of Listing with NEO: 25% released

● 6 months from NEO Listing: 25% released (for a total of 50%)

● 12 months from NEO Listing: 25% released (for a total of 75%)

● 18 months from NEO Listing: 25% released (for a total of 100%)

---

| | |
|:---|:---|
| 3. | **Indemnity Agreement.** On the Effective Date, the Company and the Director agree to execute an indemnity agreement substantially in the form attached hereto as Schedule A. |
| 4. | **Termination.** This Agreement shall terminate automatically on the date that the Director ceases to be a director of the Company. Upon termination, the Director shall not be entitled to receive notice, lump sum payment, pay in lieu of notice or severance, or any other compensation of any nature. |
| 5. | **General.** |
|  | <u>Notices:</u> Any notice required or permitted to be given to one Party by the other Party pursuant to this Agreement shall be in writing and shall be sent by: (i) eMail to the contact address designated by each Party; or (ii) personal delivery; or (iii) postal mail, return receipt requested, first class postage and charges prepaid, addressed to the Parties as set forth below, or at such other address as shall be designated in writing from time to time. Notices sent by eMail or delivered in person shall be effective on the date of delivery. Notices sent by registered mail shall be effective on the third (3rd) business day following its posting. |

---

---

| |
|:---|
| **The Director:** |
| Jonathan De Vos |

---

---

| |
|:---|
| **The** **Company:** |
| Verses Technologies, Inc. |
| #304-1808 West 1<sup>st</sup> Ave. |
| Vancouver, BC V6J 0B3 |
| Attn: Jeff McCann |
| eMail: [\*\*\*] |
| (cc to: legal@verses.io) |

---

<u>Rights and Duties:</u> All rights and duties of the Company under this Agreement shall extend to its respective successors and assigns.

<u>Assignment</u>: The Director may not assign his rights or obligations under this Agreement without the prior written consent of the Company, which shall not be unreasonably withheld.

<u>Severable Provisions</u>: The provisions of this Agreement are severable and if any one or more provisions may be determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions, and any partially enforceable provision to the extent enforceable, shall nevertheless be binding and enforceable.

<u>Waiver</u>: The waiver by one Party of a breach of any provision of this Agreement by the other Party shall not operate or be construed as a waiver of any subsequent breach of the same or any other provision by the other Party.

<u>Entire Agreement</u>: This Agreement constitutes the entire agreement of the Parties with respect to its subject matter, and may not be changed orally, but only by an agreement in writing signed by the party against whom the enforcement of any waiver, change, modification, extension or discharge is sought.

<u>Governing Law</u>: This Agreement is governed in accordance with the laws of the Province of British Columbia, Canada.

<u>Disputes</u>. The Company and the Director mutually consent to the resolution of all claims or controversies, actions or choses in action arising out of or related to this Agreement or the terms thereof (collectively "Claims") that may arise between them via binding, confidential arbitration. The Parties agree that arbitration is in the interest of both Parties in that disputes may be resolved in a manner that is fair, confidential, expeditious, economical, final and less burdensome or adversarial than standard court litigation. Arbitration shall be conducted by a neutral arbitrator at the American Arbitration Association ("AAA") that is selected mutually by the Parties, with the AAA making any and all such elections to the extent that the Parties have each made a good faith effort to so choose, but after a period of forty-five (45) days have still failed to do so. Said arbitration shall be governed by the AAA's then-current commercial arbitration rules (the "Rules"). Each Party, by signing below, hereby irrevocably waives, to the fullest extent permitted by law, any right to a trial by jury for Claims arising under the foregoing provision. Each party shall bear its own expenses with respect to its participation in the Arbitration. The arbitrator's final judgment shall be in writing, with written findings of fact and shall be final and non-appealable, and the Arbitrator shall be permitted to award reasonable attorneys' fees and costs (including, where applicable, time spent by in-house counsel) to the prevailing Party in said dispute. All hearings, proceedings, and written and oral submissions made with respect to the Arbitration shall be in English, and the "seat" for the Arbitration shall be Los Angeles, California, U.S.A. Final judgment may be entered in any court having jurisdiction over the Parties. This Section shall survive termination or expiration of this Agreement.

**Miscellaneous.** Headings are offered for illustration and clarity purposes only, and are not intended to constitute material parts of this Agreement. This Agreement is made and entered into for the sole protection and benefit of the Parties hereto, and is not intended to convey any rights or benefits to any third party. Any provision of this Agreement which expressly states that it is to continue in effect after the termination or expiration thereof, or which by its very nature would reasonably be deemed to survive said termination or expiration, as the case may be, shall so survive. Waivers and amendments to this Agreement must be memorialized in a writing signed by both Parties, except as otherwise provided herein. No delay or omission by either Party in exercising any right or remedy hereunder, or otherwise existing at law or equity, shall be considered a waiver of such right or remedy. This Agreement may be executed in two or more counterparts, each of which when executed and delivered shall constitute an original, but all of which together shall constitute one and the same document. Counterparts may be delivered via facsimile, electronic mail, including Adobe Acrobat (.PDF) format, or any "electronic signature" complying with the U.S. federal e-SIGN Act of 2000 *(e.g.,* HelloSign, DocuSign, etc.).

Any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date.

---

| |
|:---|
| **VERSES TECHNOLOGIES, INC.** |
| /s/ Gabriel Rene |
| Gabriel Rene |
| Board Chairperson |
| **THE DIRECTOR** |
| /s/ Jonathan De Vos |
| Jonathan De Vos |

---

 ****

**Schedule A**

**INDEMNITY AGREEMENT**

## Exhibit 10.5

**Exhibit 10.5**

**<u>DIRECTOR COMPENSATION AGREEMENT</u>**

THIS DIRECTOR COMPENSATION AGREEMENT ("**Agreement**") is made and entered into as of June 15 2022 (the "**Effective Date**") between Verses Technologies, Inc., a corporation formed under the laws of British Columbia, Canada ("**VTI**" or the "**Company**") and G. Scott Paterson (the "**Director**"). Company and Director may be referred to herein as a "Party" or collectively as the "Parties."

WHEREAS the Company's shareholders have decided to elect the Director to the board of directors ("**Board**") of the Company;

WHEREAS, the Director is amenable to accepting the position within the Company's Board, subject to the terms and conditions outlined herein; and

WHEREAS the Company and the Director desire to enter into this Agreement to memorialize the method by which the Director shall be compensated for his role as director of the Company, and for providing services to the Company in such capacity (collectively, the "**Services**").

NOW, THEREFORE, in consideration for the promises, obligations, terms, conditions and restrictions set forth herein, and for such other good and valuable consideration, the receipt and sufficiency of which being hereby expressly acknowledged, the Parties agree as follows:

1. **Term**.
 This Agreement shall commence on the Effective Date and remain in effect until the termination thereof, in accordance with the provisions
 outlined in Section 3 below.

2. **Compensation**.
 As compensation for the Director serving on the Board and for providing services to the Company in connection therewith, the Company
 agrees to grant the Director such number of stock options, restricted share units and/or deferred share units (collectively the "**Compensation Securities**") that will allow the Director to purchase an aggregate of 1,000,000 Class A Subordinate Voting Shares in the
 share capital of the Company at an exercise price of $0.80 CAD per share, the terms and conditions set forth in this Agreement and
 in accordance with the Company's then-current stock option plan (the "**Option Plan**") as amended, restated,
 replaced or superseded from time to time. Said Compensation Securities are subject to the escrow periods imposed by the exchange
 that the securities are to be listed upon (*i.e.* NEO) with said escrow period ending according to the following schedule:

● *Date of Listing with NEO:* 25% released

● 6 months from NEO Listing: 25% released (for a total of 50%)

● 12 months from NEO Listing: 25% released (for a total of 75%)

● 18 months from NEO Listing: 25% released (for a total of 100%)

---

| | |
|:---|:---|
| 3. | **Indemnity Agreement.** On the Effective Date, the Company and the Director agree to execute an indemnity agreement substantially in the form attached hereto as Schedule A. |
| 4. | **Termination**. This Agreement shall terminate automatically on the date that the Director ceases to be a director of the Company. Upon termination, the Director shall not be entitled to receive notice, lump sum payment, pay in lieu of notice or severance, or any other compensation of any nature. |
| 5. | **General**. |
|  | <u>Notices</u>*:* Any notice required or permitted to be given to one Party by the other Party pursuant to this Agreement shall be in writing and shall be sent by: (i) eMail to the contact address designated by each Party; or (ii) personal delivery; or (iii) postal mail, return receipt requested, first class postage and charges prepaid, addressed to the Parties as set forth below, or at such other address as shall be designated in writing from time to time. Notices sent by eMail or delivered in person shall be effective on the date of delivery. Notices sent by registered mail shall be effective on the third (3rd) business day following its posting. |

---

**The Director:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Scott Paterson

[ADDRESS] [\*\*\*]

[PHONE #] [\*\*\*]

[EMAIL] [\*\*\*]

**The Company**:

Verses Technologies, Inc.

#304 1808 West 1<sup>st</sup> Ave.

Vancouver, BC V6J 0B3

Attn: Jeff McCann

eMail: [\*\*\*]

(cc to: legal@verses.io)

<u>Rights and Duties</u>: All rights and duties of the Company under this Agreement shall extend to its respective successors and assigns.

<u>Assignment</u>: The Director may not assign his rights or obligations under this Agreement without the prior written consent of the Company, which shall not be unreasonably withheld.

<u>Severable Provisions</u>: The provisions of this Agreement are severable and if any one or more provisions may be determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions, and any partially enforceable provision to the extent enforceable, shall nevertheless be binding and enforceable.

<u>Waiver</u>: The waiver by one Party of a breach of any provision of this Agreement by the other Party shall not operate or be construed as a waiver of any subsequent breach of the same or any other provision by the other Party.

<u>Entire Agreement</u>: This Agreement constitutes the entire agreement of the Parties with respect to its subject matter, and may not be changed orally, but only by an agreement in writing signed by the party against whom the enforcement of any waiver, change, modification, extension or discharge is sought.

<u>Governing Law</u>: This Agreement is governed in accordance with the laws of the Province of British Columbia, Canada.

<u>Disputes</u>. The Company and the Director mutually consent to the resolution of all claims or controversies, actions or choses in action arising out of or related between them via binding, confidential arbitration. The Parties agree that arbitration is in the interest of both Parties in that disputes may be resolved in a manner that is fair, confidential, expeditious, economical, final and less burdensome or adversarial than standard court litigation. Arbitration shall be conducted by a neutral arbitrator at the American Arbitration Association all such elections to the extent that the Parties have each made a good faith effort to so choose, but after a period of forty-five (45) days have still failed to do so. Said arbitration shall be governed by the AAA's then-current commercial arbitration waives, to the fullest extent permitted by law, any right to a trial by jury for Claims arising under the foregoing provision. Each party shall bear its own expenses with respect to judgment shall be in writing, with written findings of fact and shall be final and non-appealable, and the Arbitrator shall be permitted to award reasonable g, where applicable, time spent by in-house counsel) to the prevailing Party in said dispute. All hearings, proceedings, and written and oral submissions made with respect to the Arbitration shall be in English, and the "seat" for the Arbitration shall be Los Angeles, California, U.S.A. Final judgment may be entered in any court having jurisdiction over the Parties. This Section shall survive termination or expiration of this Agreement.

6. **Miscellaneous.** Headings are offered for illustration and clarity purposes only, and are not intended to constitute material parts of this Agreement.
 This Agreement is made and entered into for the sole protection and benefit of the Parties hereto, and is not intended to convey
 any rights or benefits to any third party. Any provision of this Agreement which expressly states that it is to continue in effect
 after the termination or expiration thereof, or which by its very nature would reasonably be deemed to survive said termination or
 expiration, as the case may be, shall so survive. Waivers and amendments to this Agreement must be memorialized in a writing signed
 by both Parties, except as otherwise provided herein. No delay or omission by either Party in exercising any right or remedy hereunder,
 or otherwise existing at law or equity, shall be considered a waiver of such right or remedy. This Agreement may be executed in two
 or more counterparts, each of which when executed and delivered shall constitute an original, but all of which together shall constitute
 one and the same document. Counterparts may be delivered via facsimile, electronic mail, including Adobe Acrobat (.PDF) format, or
 any "electronic signature" complying with the U.S. federal e-SIGN Act of 2000 (e.g., HelloSign, DocuSign, etc.). Any
 counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date.

---

| |
|:---|
| **VERSES TECHNOLOGIES, INC.** |
| Gabriel Rene, CEO |
| **THE DIRECTOR** |
| /s/ G. Scott Paterson |
| G. Scott Paterson |

---

**Schedule A**

**INDEMNITY AGREEMENT**

## Exhibit 10.6

**Exhibit 10.6**

**<u>DIRECTOR COMPENSATION AGREEMENT</u>**

THIS DIRECTOR COMPENSATION AGREEMENT **("Agreement")** is made and entered into as of September 9, 2024 (the **"Effective Date")** between Verses Al, Inc., a corporation formed under the laws of British Columbia, Canada (the **"Company")** and Michael Blum (the **"Director")**. Each of Company and Director may be referred to herein as a "Party" or collectively as the "Parties."

WHEREAS the Company's shareholders have decided to elect the Director to the board of directors **("Board")** of the Company;

WHEREAS, the Director is amenable to accepting the position within the Company's Board, subject to the terms and conditions outlined herein; and

WHEREAS the Company and the Director desire to enter into this Agreement to memorialize the method by which the Director shall be compensated for his role as director of the Company, and for providing services to the Company in such capacity (collectively, the **"Services").**

NOW, THEREFORE, in consideration for the promises, obligations, terms, conditions and restrictions set forth herein, and for such other good and valuable consideration, the receipt and sufficiency of which being hereby expressly acknowledged, the Parties agree as follows:

1. **Term.** This Agreement shall commence on the Effective
Date and remain in effect until the termination thereof, in accordance with the provisions outlined in Section 3 below.

2. **Compensation.** As compensation for the Director serving
on the Board and for providing services to the Company in connection therewith, the Company agrees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to pay the Director a monthly payment of $7,500 during the
term, which shall increase to $20,000 beginning on the date the Company lists on a major US exchange or 1 March 2025, whichever occurs
first;

(b) to grant the Director the amount of 2,000,000 RSUs or DSUs
or other similar instrument as determined by the Board of Directors (collectively the **"Compensation Securities")** at
an exercise price equaling the final trading price of $VERS (CBOE.ca) on the date of grant **("Grant Date")** or, if the
Grant Date is a holiday where the operative exchange is closed or trading is otherwise unavailable, the next trading day immediately
following the Grant Date. Notwithstanding anything to the contrary in the Option Plan (as defined below): (A), the Compensation Securities
will be subject to a three (3) year vesting schedule of which (i) the 666,672 shares shall vest on the first anniversary of the Effective
Date; and (ii) the remaining 1,333,328 shares shall vest in a series of eight (8) successive equal installments measured from the first
anniversary of the Effective Date; and (B) the vesting schedule for the Compensation Securities shall accelerate and the Compensation
Securities shall vest immediately prior to any change of control transaction involving the Company, including any transaction that results
in a change of control or direction over 50%, a merger, arrangement, amalgamation or similar business combination or the sale, lease,
exchange or similar transfer of all or substantially all of the assets of the Company.

The Compensation Securities shall be subject to Board approval and compliance with: (i) applicable law; (ii) the terms and conditions set forth in this Agreement; (iii) the then- current Rules and Policies imposed by the exchange(s) that the securities are to be listed upon *(e.g.* CBOE.ca, NASDAQ, etc.) and (iv) except as otherwise set out in this Agreement, the Company's then-current stock option plan (the **"Option Plan"),** as amended, restated, replaced or superseded from time to time.

The Director will be solely responsible for withholding and paying his own taxes, whether income taxes or otherwise, and regardless of whether assessed at the federal, state or local level.

---

| | |
|:---|:---|
| 3. | **Indemnity Agreement.** On the Effective Date, the Company and the Director agree to execute an indemnity agreement substantially in the form attached hereto as **Schedule A.** |
| 4. | **Termination.** This Agreement shall terminate automatically on the date that the Director ceases to be a director of the Company. |
| 5. | **General**. |
|  | <u>Notices</u>:<u> </u>Any notice required or permitted to be given to a Party pursuant to this Agreement shall be in writing and sent electronically via eMail message to the contact eMail address designated by each Party or, for paper copies: (i) copy personal delivery; or (ii) postal mail, return receipt requested, first class postage and charges prepaid, addressed to the Parties as set forth below, or at such other address as shall be designated in writing from time to time. Notices sent by eMail or delivered in person shall be effective on the date of delivery. Notices sent by registered mail shall be effective on the third (3rd) business day following its posting. |

---

---

| |
|:---|
| *The Director:* |
| Michael Blum |
| [\*\*\*] |
| Phone: [\*\*\*] |
| eMail: [\*\*\*] |
| *The Company:* |
| Verses Al, Inc. |
| 205 - 810 Quayside Drive |
| New Westminster, BC V3M 6B9 Canada |
| eMail: [\*\*\*] |
| (cc to: <u>legal@verses.ai</u>) |

---

<u>Rights and Duties</u>: All rights and duties of the Company under this Agreement shall extend to its respective successors and assigns.

<u>Assignment</u>: The Director may not assign his rights or obligations under this Agreement without the prior written consent of the Company, which shall not be unreasonably withheld.

<u>Severable Provisions</u>: The provisions of this Agreement are severable. If one or more provisions may be determined to be illegal or otherwise wholly or partially unenforceable, the remaining provisions, and any partially enforceable provision to the extent enforceable, shall nevertheless be binding and enforceable.

<u>Waiver</u>: The waiver by one Party of a breach of any provision of this Agreement by the other Party shall not operate or be construed as a waiver of any subsequent breach of the same or any other provision by the other Party.

<u>Entire Agreement</u>: This Agreement constitutes the entire agreement of the Parties with respect to its subject matter, and may not be changed orally, but only by an agreement in writing signed by the party against whom the enforcement of any waiver, change, modification, extension or discharge is sought.

<u>Governing Law</u>: This Agreement is governed in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein.

<u>Disputes</u>. All disputes arising out of or in connection with the present contract shall be finally settled under the then-current Rules of Commercial Arbitration of the American Arbitration Association ("AAA") by one or three arbitrators appointed in accordance with said Rules, as appropriate. The Parties shall bear their respective arbitration expenses equally. The Arbitrator(s) may conduct limited discovery. Under no circumstances shall any Arbitrator award any form of special, consequential or punitive damages as part of the final award. This Section shall survive termination or expiration of this Agreement.

<u>Miscellaneous</u>. Headings are offered for illustration and clarity purposes only, and are not intended to constitute material parts of this Agreement. This Agreement is made and entered into for the sole protection and benefit of the Parties hereto, and is not intended to convey any rights or benefits to any third party. Any provision of this Agreement which expressly states that it is to continue in effect after the termination or expiration thereof, or which by its very nature would reasonably be deemed to survive said termination or expiration, as the case may be, shall so survive. Waivers and amendments to this Agreement must be memorialized in a writing signed by both Parties, except as otherwise provided herein. No delay or omission by either Party in exercising any right or remedy hereunder, or otherwise existing at law or equity, shall be considered a waiver of such right or remedy. This Agreement may be executed in two or more counterparts, each of which when executed and delivered shall constitute an original, but all of which together shall constitute one and the same document. Counterparts may be delivered via electronic mail, including Adobe Acrobat (.PDF) format, or any "electronic signature" complying with the U.S. federal e-SIGN Act of 2000 *(e.g.,* DocuSign, etc.). Any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

[Remainder of page intentionally left blank]

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date.

---

| |
|:---|
| **VERSES AI, INC.** |
| /s/Gabriel René |
| *Gabriel Rene, CEO* |
| **THE DIRECTOR** |
| /s/ Michael Blum |
| *Michael Blum* |

---

**Schedule A**

**INDEMNITY AGREEMENT**

## Exhibit 14.1

**Exhibit 14.1**

![](ex14-1_001.jpg)

**Code of Conduct and Ethics Policy**

---

| | | |
|:---|:---|:---|
| **Doc Title:** Code of Conduct Policy | **Doc Title:** Code of Conduct Policy | **Department: People Operations** |
| **Doc Filename:** CODE_OF_CONDUCT_POLICY_ADM_ | **Doc Filename:** CODE_OF_CONDUCT_POLICY_ADM_ | **Rev.** 1.2 |
| **Last Revised by: People Operations** | **Reviewed by: [Steven Swanson]** | **Manager Approval:** |
| **Last Revision Date:** 03/[17]/2025 | **Review Date:** March 2025 | **Manager Approval Date:** |

---

---

| | |
|:---|:---|
| **1** | **Purpose** |

---

This document establishes the basic principles and concepts to guide VERSES AI Inc. ("**VERSES**" or the "**Company**") staff's professional conduct. This Code of Conduct and Ethics Policy, referred to as the "**Code**," is intended to provide our associates, as defined below, with a clear understanding of the principles of business conduct and ethics that are expected of them. The standards set forth in the Code apply to us all. Every associate of VERSES must acknowledge his or her review of this Code, and their commitment to comply with the Code as a condition of their relationship with the Company. The term "**associate**" means every full and part-time employee<sup>1</sup> of the Company and its subsidiaries, all members of the Company's senior management, including the Company's Chief Executive Officer ("**CEO**") and Chief Financial Officer ("**CFO**"), and every member of the Company's Board of Directors, even if such member is not employed by the Company.

Many of the standards outlined on the following pages will be familiar as they reflect the fundamental values of fairness and integrity that are a part of our daily lives. Applying these standards to our business lives is an extension of the values by which we are known as individuals and by which we want to be known as a company.

It is our responsibility to conduct ourselves in an ethical business manner and to ensure that others do the same. If any one of us violates these standards without permission, he or she can expect a disciplinary response, up to and including termination of any employment or other relationship with the Company, and possibly other legal action. If any breach of the Code is known to you, you are obligated to report violations to any member of the Company's People Operations department (or other representative appointed by the Chief Administration Officer ("**CAO**")).

The provisions of the Code regarding the actions the Company will take are guidelines which the Company intends to follow. There may be circumstances, however, that in the Company's judgment, require different measures or actions, and in such cases, the Company may act accordingly while still attempting to fulfill the principles underlying this Code. While it is impossible for this Code to describe every situation that may arise, the standards explained in this Code are guidelines that should govern our conduct at all times. If you are confronted with situations not covered by this Code, or have questions regarding the matters that are addressed in the Code, you are urged to consult with the Company's General Counsel ("**General Counsel**"), or People Operations.

People Operations will provide a summary of all matters considered under the Code to the Board of Directors or a committee thereof at each regular meeting thereof or sooner if warranted by the severity of the matter. All proceedings and the identity of the person reporting will be kept confidential to the extent required by or possible under applicable law.

<sup>1</sup> <u>Definition of Terms</u>

"Employee" refers to individuals working for VERSES who are paid with tax withholdings and directly by VERSES. Such individuals have completed a US W2, Canada T4 or outside of North America are engaged through Employer of Record Services. "Staff" refers to ALL individuals who are engaged to perform work at VERSES.

---

| | |
|:---|:---|
| **2** | **General Requirements** |

---

The Board of Directors of the Company has adopted this Code in order to:

● promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest;

● promote full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with, or submits to, the Securities and Exchange Commission (the "**SEC**") and in other public communications made by the Company;

● promote compliance with applicable governmental laws, rules and regulations;

● promote the protection of Company assets, including corporate opportunities and confidential information;

● promote fair dealing practices;

● deter wrongdoing; and

● ensure accountability for adherence to the Code.

---

| | |
|:---|:---|
| **3** | **Honest and Ethical Conduct** |

---

The Company's policy is to promote high standards of integrity by conducting its affairs honestly and ethically.

Each associate must endeavor to act with integrity and observe the highest ethical standards of business conduct in their dealings with the Company's customers, suppliers, partners, service providers, competitors, employees and anyone else with whom they have contact in the course of performing their job.

---

| | |
|:---|:---|
| **4** | **Compliance Standards and Procedures** |

---

***Compliance Resources***

 ****

To facilitate compliance with this Code, we have implemented a program of Code awareness, training and review that is part of our broader compliance programs overseen by our Audit Committee. Currently, People Operations oversees this program. You can address any questions or concerns related to this Code or any other matters relating to legal or regulatory compliance to People Operations. In addition to fielding questions or concerns with respect to potential violations of this Code or any other matters relating to legal or regulatory compliance, People Operations is responsible for:

● investigating possible violations of the Code;

● training new employees in Code policies;

● conducting annual training sessions to refresh employees' familiarity with the Code;

● distributing copies of the Code annually via e-mail to each employee with a reminder that each employee is responsible for reading, understanding and complying with the Code;

● updating the Code as needed and alerting employees to any updates, with appropriate approval of the Audit Committee, to reflect changes in the law, the Company's operations and in recognized best practices, and to reflect the Company's experience;

● overseeing the Company's compliance program and reporting to the Audit Committee material matters that may arise relating to the Company's legal and regulatory compliance efforts; and

● otherwise promoting an atmosphere of responsible and ethical conduct.

Your most immediate resource for any matter related to the Code is your supervisor. He or she may have the information you need, or may be able to refer the question to another appropriate source. There may, however, be times when you prefer not to go to your supervisor. In these instances, you should feel free to discuss your concern with People Operations. If you are uncomfortable speaking with People Operations, please contact the CEO.

***Clarifying Question and Concerns; Reporting Possible Violations***

 ****

If you encounter a situation or are considering a course of action and its appropriateness is unclear, discuss the matter promptly with your supervisor or People Operations; even the appearance of impropriety can be very damaging and should be avoided.

If you are aware of a suspected or actual violation of Code standards by others, you have a responsibility to report it. You are expected to promptly provide a compliance resource with a specific description of the violation that you believe has occurred, including any information you have about the persons involved and the time of the violation. We have included a list of potential "questionable activities" (which are examples of violations of this Code that should be reported) below for your knowledge. Whether you choose to speak with your supervisor or th People Operations, you should do so without fear of any form of retaliation. We will take prompt disciplinary action against any employee who retaliates against you, up to and including termination of employment.

Supervisors must promptly report any complaints or observations of Code violations to People Operations or other persons as set forth in Section 4.2. If you believe your supervisor has not taken appropriate action, you should contact People Operations directly.

With respect to any complaints or observations of Code violations, including, but not limited to matters that may involve accounting, internal accounting controls and auditing concerns, People Operations shall promptly inform the chair of the Audit Committee, and the Audit Committee or such other persons as the Audit Committee determines to be appropriate under the circumstances shall be responsible for supervising and overseeing the inquiry and any investigation that is undertaken. In addition, any matters involving accounting, internal accounting controls and auditing concerns that are reported shall be routed to both People Operations and the Audit Committee.

If any investigation indicates that a violation of the Code has probably occurred, we will take such action as we believe to be appropriate under the circumstances. If we determine that an employee is responsible for a Code violation, he or she will be subject to disciplinary action up to, and including, termination of employment and, in appropriate cases, civil legal action or referral for regulatory or criminal prosecution. Appropriate action may also be taken to deter any future Code violations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1** **Examples of Questionable Activities to be Reported** 

● Fraudulent activities

● Deficiencies in or non-compliance with internal controls

● Misrepresentation or false statements regarding a matter contained in the financial records, financial reports, or audit reports of VERSES

● Non-compliance with all applicable laws, regulations and rules

● Embezzlement

● Conflicts of interest

● Theft

● Unsafe workplace

● Substance abuse

● Discrimination

● Sexual harassment<sup>2</sup>

● Policy and procedure violations

<sup>2</sup> *For additional information please see VERSES Prevention of Harassment and Bullying Policy.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2** **How to Report Questionable Activities** 

● VERSES staff should report questionable activities to People Operations via slack channel at PeopleOps_Support; to VERSES' General Counsel; and/or to Executive Management.

● Reports can be made in person, via telephone, video meeting, e-mail, or any other written format.

● If the matter concerns a member of the People Operations Department, report the questionable activities to the CEO, CFO, Chief Operating Officer ()"**COO** "), CAO or other C-level executive of VERSES.

● Report only the facts that you are aware of rather than rumor or speculation.

● At a minimum, provide the following information:

○ Description of the nature of the suspected or actual questionable activity;

○ Name(s) of the individual(s) and department(s) engaging in the suspected or actual questionable activity; and

○ The approximate or actual date the activity took place.

● If a VERSES employee reporting a questionable activity chooses to identify themselves, their identity will be kept strictly confidential and will only be shared with any member of management that has a legitimate need to know and/or that may be involved with the investigation, with appropriate members of law enforcement, or with other individuals or agencies pursuant to a subpoena or other legal process of discovery.

● Reporting a knowingly false or malicious complaint is a violation of VERSES policy and will be treated as a violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3** **Responses to Reports of Questionable Activities** 

People Operations or other appointed representative by the CAO will investigate all reported possible Code violations promptly and with the highest degree of confidentiality that is possible under the specific circumstances. Neither you nor your supervisor may conduct any preliminary investigation, unless authorized to do so by People Operations. Your cooperation in the investigation will be expected. As needed, People Operations will consult with outside legal counsel and/or the Audit Committee. People Operations will provide a summary of the reported activity to the COO or CAO and the Company's General Counsel. It is our policy to employ a fair process by which to determine violations of the Code. Further action will be taken as warranted by each specific situation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4** **Protection from Retaliation** 

● Anyone who in good faith seeks advice, raises a concern, or reports misconduct is following the Code of Conduct and deemed as "doing the right thing."

● VERSES takes claims of retaliation very seriously and will not allow retaliation against a person speaking up in good faith.

● Allegations of retaliation shall be investigated and appropriate action will be taken.

● Individuals engaging in retaliatory behavior will be subject to disciplinary action, which may include termination.

● If a VERSES employee suspects that they, or someone they know, have been retaliated against for raising an issue, they should immediately contact a member of the People Operations Department.

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| **5** | **Scope** |

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● The Code provides basic principles and concepts to guide VERSES employees when conducting VERSES business and all of VERSES staff interactions in their capacity of engagement while at VERSES. VERSES staff have no rights to conduct business on behalf of VERSES.

● The Code is intended to guide accepted standards of professional behavior; it is not intended to address every issue or situation that may arise.

● VERSES staff need to maintain common sense, good judgment, and integrity in all situations to maintain a positive and productive work environment.

● VERSES employees are obligated to inform People Operations or VERSES' General Counsel If they have any questions, concerns, or knowledge of activities that may be in violation of the Code.

● VERSES staff are required to cooperate with any appropriately authorized internal or external investigations.

● In the case of a proven violation by staff, People Operations may take such disciplinary or preventative action as it deems appropriate, including termination of employment or ending an engagement.

● VERSES staff have a continuing obligation to familiarize themselves with the laws, regulations, rules, and VERSES policies/procedures applicable to their respective positions with VERSES.

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| **6** | **Conflicts of Interest** |

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Associates should avoid, without permission, any situation that involves, and should endeavor to avoid, without permission, any situation that may involve, or even appear to involve, a conflict between their personal interests and the interests of the Company. A conflict of interest is any situation in which an employee is engaged in two or more activities or relationships that are mutually incompatible or competitive to the interests of VERSES. In dealings with current or potential customers, suppliers, contractors, and competitors, each associate should endeavor to act in the best interest of the Company to the exclusion of personal advantage. VERSES staff must not engage in any activities, transactions or relationships that are incompatible with the impartial, objective, and effective performance of their duties to VERSES.

Associates are prohibited, without permission, from any of the following activities which could represent an actual or perceived conflict of interest:

● No associate or immediate family member of an associate shall have a significant financial interest in, or obligation to, any outside enterprise which known to do or to seek to do business with the Company or which is known to be an actual or potential competitor of the Company, without prior approval of People Operations, or in the case of executive officers or members of the Board of Directors, the full Board of Directors or the Audit Committee thereof.

● No associate shall conduct business on the Company's behalf with an outside enterprise if an immediate family member of the associate is a principal, officer or employee of such enterprise.

● No associate or immediate family member of an associate shall serve as a director, officer or in any other management or consulting capacity of any actual or potential competitor of the Company without prior approval of People Operations, or in the case of executive officers or members of the Board of Directors, the full Board of Directors or a committee thereof.

● No associate shall use any Company property or information or his or her position at the Company for his or her personal gain.

● No associate shall engage in activities that are directly competitive with those in which the Company is engaged.

● No associate shall divert a business opportunity from the Company to such individual's own benefit. If an associate becomes aware of an opportunity to acquire or profit from a business opportunity or investment in which the Company is or may become involved or in which the Company may have an existing interest, the associate should disclose the relevant facts to People Operations. The associate may proceed to take advantage of such opportunity only if the Company is unwilling or unable to take advantage of such opportunity as notified in writing by People Operations.

● No associate or immediate family member of an associate shall receive any loan or advance from the Company, or be the beneficiary of a guarantee by the Company of a loan or advance from a third party, except for customary advances or corporate credit in the ordinary course of business. Please see Section 7.5 below, "Corporate Advances", for more information on permitted corporate advances.

In addition, the Audit Committee or the Board of Directors will review and approve all related-party transactions as required by the SEC, the Nasdaq Stock Market or any other regulatory body to which the Company is subject.

Each associate should make prompt and full disclosure in writing to People Operations of any situation that may involve a conflict of interest. Failure to disclose any conflict of interest is a violation of the Code.

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| **7** | **Protection and Proper Use of Company Assets** |

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Proper protection and use of Company assets, including proprietary information, is a fundamental responsibility of each associate of the Company. Associates must comply with the Company's security programs to safeguard assets against unauthorized use or removal, as well as against loss by criminal act or breach of trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1** **Proper Use of Company Property** 

The removal from the Company's facilities of the Company's property is prohibited, unless authorized by the Company. This applies to furnishings, equipment, computers and supplies, as well as property created or obtained by the Company for its exclusive use – such as client and customer lists, files, personnel information, reference materials and reports, computer software, data processing programs and data bases. Neither originals nor copies of these materials may be removed from the Company's premises or used for purposes other than the Company's business without prior written authorization from People Operations.

The Company's products and services are its property; contributions made by any associate to their development and implementation are the Company's property and remain the Company's property even if the individual's employment or directorship terminates.

Each associate has an obligation to endeavor to use the time for which he or she receives compensation from the Company productively. Work hours should be devoted to activities directly related to the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2** **Confidential Information** 

The Company provides its associates with confidential information relating to the Company and its business with the understanding that such information is to be held in confidence and not communicated to anyone who is not authorized to see it, except as may be required by law. The type of information that each associate must safeguard includes (but is not limited to) the Company's plans and business strategy, unannounced products, promotions and/or contracts, sales data, significant projects, customer and supplier lists, patents, trade secrets, manufacturing techniques and sensitive financial information, whether in electronic or conventional format. These are costly, valuable resources developed for the exclusive benefit of the Company. No associate shall, without permission, disclose the Company's confidential information to an unauthorized third party or use the Company's confidential information for his or her own personal benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3** **Accurate Records and Reporting** 

Under law, the Company is required to keep books, records and accounts that accurately and fairly reflect all transactions, disposition of assets and other events that are the subject of specific regulatory record keeping requirements, including safety and inspection reports, routing and scheduling information, generally accepted accounting principles and other applicable rules, regulations and criteria for preparing financial statements. All Company financial reports, accounting records, sales reports, expense accounts, invoices, purchase orders, and other documents must accurately and clearly represent the relevant facts and the true nature of transactions. Under no circumstance may there be any unrecorded liability or fund of the Company, regardless of the purposes for which the liability or fund may have been intended, or any improper or inaccurate entry knowingly made on the books or records of the Company. No payment on behalf of the Company may be approved or made with the intention, understanding or awareness that any part of the payment is to be used for any purpose other than that described by the documentation supporting the payments. In addition, intentional accounting misclassifications (e.g., expense versus capital) and improper acceleration or deferrals of expenses or revenues are unacceptable reporting practices that are expressly prohibited.

The Company has developed and maintains a system of internal controls to provide reasonable assurance that transactions are executed in accordance with management's authorization, are properly recorded and posted, and is in compliance with regulatory requirements. The system of internal controls within the Company includes written policies and procedures, budgetary controls, supervisory review and monitoring, and various other checks and balances, and safeguards such as password protection to access certain computer systems. Associates are expected to be familiar with, and to adhere strictly to, these control policies.

The Company has also developed and maintains a set of disclosure controls and procedures to ensure that all of the information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified by the SEC's rules and forms.

Associates are expected to be familiar with, and to adhere strictly to, these internal controls and disclosure controls and procedures.

Responsibility for compliance with these principles rests with all associates, and not solely with the Company's accounting personnel. All associates involved in approving transactions, supplying documentation for transactions, and determining account classifications are responsible for complying with these standards. Because the integrity of the Company's external reports to shareholders and the SEC depends on the integrity of the Company's internal reports and record-keeping, all associates must endeavor to adhere to the highest standards of care with respect to our internal records and reporting. The Company is committed to full, fair, accurate, timely, and understandable disclosure in the periodic reports required to be filed by it with the SEC, and it expects each associate to work diligently towards that goal. All associates shall, as requested, assist the Company in gathering, analyzing and summarizing relevant information for such periodic reports.

Any associate who believes the Company's books and records are not in accord with these requirements should immediately report the matter to People Operations or as set forth below. The Company has adopted explicit non-retaliation policies with respect to these matters, as described in Section 13 below.

In addition to reporting violations of the Code as described above, the Board of Directors encourages associates to report, on a confidential and anonymous basis to the extent legally possible, any concerns regarding questionable accounting or auditing matters. The procedures identified below may be amended or supplemented from time to time in order to comply with the listing requirements of the exchange, market or quotation system upon which the Company may be listed at such time.

Also, associates may contact People Operations or Board of Directors directly to report any questionable accounting or auditing matters. The explicit non-retaliation procedures described in Section 13 below will apply to any associate who reports any questionable accounting or auditing matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4** **Records Management** 

The Company requires honest and accurate recording and reporting of information in order to make reasonable business decisions. All Company business data, records and reports must be prepared truthfully and accurately. Numerous federal and state statutes require the proper retention of many categories of records and documents that are commonly maintained by companies. All of the Company's books, records, accounts and financial statements must be maintained in reasonable detail, must appropriately reflect the Company's transactions and conform to the applicable legal requirements and the Company's system of internal controls for retention and destruction.

In addition, any record, in paper of electronic format, relevant to a threatened, anticipated or actual internal or external inquiry, investigation, matter or lawsuit may not be discarded, concealed, falsified, altered, or otherwise made unavailable, once an associate has become aware of the existence of such threatened, anticipated or actual internal or external inquiry, investigation, matter or lawsuit. Associates must handle such records in accordance with the procedures outlined in the Company's Records Management Policy.

When in doubt regarding retention of any record, an associate must not discard or alter the record in question and should seek guidance from People Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.5** **Corporate Advances** 

Under law, the Company may not loan money to associates except in limited circumstances. It shall be a violation of the Code for any associate, without permission of the Board of Directors or People Operations, to advance Company funds to any other associate or to himself or herself except for small business advances for legitimate corporate purposes which are approved by a supervisor or pursuant to a corporate credit card for legitimate business purposes.

Company credit cards are to be used only for authorized, legitimate business purposes. An associate will be responsible for any unauthorized charges to a Company credit card.

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| **8** | **Fair Dealing with Customers, Suppliers, Competitors and Associates** |

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The Company does not seek to gain any advantage through the improper use of favors or other inducements. Good judgment and moderation should be exercised to avoid misinterpretation and adverse effect on the reputation of the Company or its associates. Offering, giving, soliciting or receiving any form of bribe to or from an employee of a customer or supplier to influence that employee's conduct is strictly prohibited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1** **Giving Gifts** 

Cash or cash-equivalent gifts must not be given by an associate to any person or organization. Gifts, favors and entertainment may be given to persons other than government officials if such items:

● are consistent with customary business practice;

● are not excessive in value and cannot be construed as a bribe or pay-off;

● are not in violation of applicable law or ethical standards;

● will not embarrass the Company or the associate if publicly disclosed; and

● do not directly or indirectly benefit any government official in a manner inconsistent with the letter or spirit of Section 8.6 or Section 9.1 of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2** **Accepting Gifts and Entertainment** 

● To avoid situations of improper relations, VERSES employees shall not seek or accept, directly or indirectly, any personal gifts or entertainment opportunities or other types of personal gain from anyone soliciting or doing business with VERSES or from any person or firm in business competition with VERSES.

● The only exception would be items of moderate value ($200 or less) and  ***only if acceptance of the item will not adversely affect the employee's objectivity*** to perform in VERSES best interest.

● VERSES employees shall not  ***accept cash or cash equivalent*** gifts from a vendor, supplier, or customer.

● An especially strict standard applies when suppliers are involved. If a gift unduly influences or makes an associate feel obligated to "pay back" the other party with business, receipt of the gift is unacceptable

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3** **Corporate Opportunities/Outside Activities** 

● VERSES staff shall not use VERSES information and resources for direct or indirect personal gain, whether the benefit is financial or otherwise.

● VERSES staff shall not use their contacts or position with VERSES to advance their own private business or financial interests, whether or not at VERSES' expense.

● VERSES staff may have responsibilities and duties that include access to nonpublic information about other companies, such as customers, vendors and business partners. VERSES staff that possess information that is not general public knowledge shall not make any transactions that take personal advantage of such information.

● VERSES staff shall not disclose the existence or content of such information to others outside VERSES, including family members, social acquaintances or business associates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4** **Unfair Competition** 

Although the free enterprise system is based upon competition, rules have been imposed stating what can and what cannot be done in a competitive environment. The following practices can lead to liability for "unfair competition" and should be avoided. They are violations of the Code.

● *Disparagement of Competitors*. It is not illegal to point out weaknesses in a competitor's service, product or operation and the use of any such information should be only in accordance with standards set forth by the Board of Directors. However, associates may not spread false rumors about competitors or make representations about their businesses. For example, an associate may not pass on anecdotal or unverified stories about a competitor's product as the absolute truth (e.g., the statement that "our competitors' products break after three weeks of use").

● *Disrupting a Competitor's Business*. This includes bribing a competitor's employees, posing as prospective customers or using deceptive practices such as enticing away employees in order to obtain secrets or destroy a competitor's organization. For example, it is not a valid form of "market research" to visit a competitor's place of business posing as a customer.

● *Misrepresentations of Price and Product*. Lies or misrepresentations about the nature, quality or character of the Company's services and products are both illegal and contrary to Company policy. An associate may only describe our products based on their documented specifications, not based on anecdote or his or her belief that our specifications are too conservative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5** **Antitrust Concerns** 

Federal and state antitrust laws are intended to preserve the free enterprise system by ensuring that competition is the primary regulator of the economy. Every corporate decision that involves customers, competitors, and business planning with respect to output, sales and pricing raises antitrust issues. Compliance with the antitrust laws is in the public interest, in the interest of the business community at large, and in our Company's interest.

Failing to recognize antitrust risk is costly. Antitrust litigation can be very expensive and time- consuming. Moreover, violations of the antitrust laws can, among other things, subject you and the Company to the imposition of injunctions, punitive damages, and heavy fines. Criminal penalties may also be imposed, and individual employees can receive heavy fines or even be imprisoned. For this reason, antitrust issues should be taken seriously at all levels within the Company.

A primary focus of antitrust laws is on dealings between competitors. All associates must follow the following rules in all interactions with actual or potential competitors:

● Never agree with a competitor or a group of competitors to charge the same prices or to use the same pricing methods, to allocate services, customers, private or governmental payor contracts or territories among yourselves, to boycott or refuse to do business with a provider, vendor, payor or any other third party, or to refrain from the sale or marketing of, or limit the supply of, particular products or services.

● Never discuss past, present, or future prices, pricing policies, bundling, discounts or allowances, royalties, terms or conditions of sale, costs, choice of customers, territorial markets, production quotas, allocation of customers or territories, or bidding on a job with a competitor.

● Be careful of your conduct. An "agreement" that violates the antitrust laws may be not only a written or oral agreement, but also a "gentlemen's agreement" or a tacit understanding. Such an "agreement" need not be in writing. It can be inferred from conduct, discussions or communications of any sort with a representative of a competitor.

● Make every output-related decision (pricing, volume, etc.) independently, in light of costs and market conditions and competitive prices.

● Carefully monitor trade association activity. These forums frequently create an opportunity for competitors to engage in antitrust violations.

Another focus of antitrust law is how a company deals with customers, suppliers, contractors and other third parties. The following practices could raise issues, and associates should always consult with People Operations before doing any of the following:

● Refuse to sell, on the Company's standard terms, to any customers or prospective customer;

● When in contact with VERSES competitors, VERSES staff shall avoid entering into agreements (or circumstances that appear suspicious) relating to how VERSES conducts its business.

● Enter into any new distribution or supply agreement which differs in any respect from those previously approved;

● Condition a sale on the customer's purchasing another product or service, or on not purchasing the product of a competitor;

● Agree with a customer on a minimum or maximum resale price of our products;

● Impose restrictions on the geographic area to which our customers may resell our products;

● Require a supplier to purchase products from the Company as a condition of purchasing products from that supplier;

● Enter into an exclusive dealing arrangement with a supplier or customer; or

● Offer different prices, terms, services or allowances to different customers who compete or whose customers compete in the distribution of commodities.

If our Company has a dominant or potentially dominant position with respect to a particular product or market, especially rigorous standards of conduct must be followed. In these circumstances, all associates should:

● Consult People Operations before selling at unreasonably low prices or engaging in any bundling practices; and

● Keep People Operations fully informed of competitive strategies and conditions in any areas where the Company may have a significant market position.

Finally, always immediately inform People Operations if local, state, provincial or federal law enforcement officials request information from the Company concerning its operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.6** **Illegal Practices in International Business** 

**Under the Foreign Corrupt Practices Act of 1977 (the "FCPA"), associates of the Company are prohibited from directly or indirectly making corrupt payments to foreign officials. "Foreign officials" include not only persons acting in an official capacity on behalf of a foreign government, agency, department or instrumentality, but also representatives of international organizations, foreign political parties and candidates for foreign public office. The payment is "corrupt" under the FCPA if it is made for the purpose of:**

● Influencing any act or decision of a foreign official in his official capacity;

● Inducing a foreign official to do or omit to do any act in violation of his lawful duty;

● Inducing a foreign official to use his influence with a foreign government or instrumentality to affect or influence any act or decision of the government or instrumentality in order to assist in obtaining, retaining or directing business; or

● Inducing a foreign official to secure any "improper advantage."

A payment is still "corrupt" even when paid through a vendor, consultant, intermediary or other third party instead of directly. No officer, director or associate of the Company shall make any payment to facilitate routine governmental action, regardless of whether the payment is "corrupt" as defined above, without first obtaining written approval of the Board of Directors.

Any officer, director or associate who has any questions whatsoever as to whether a particular payment might be permissible under both the FCPA and this Code should contact People Operations.

The Company shall comply fully with the FCPA's recordkeeping and controls provisions. Specifically, the Company shall make and keep books, records and accounts that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the Company. Further, the Company shall devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management's general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements as required by law and regulation and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

Before undertaking any acquisition of any company that does business directly or indirectly with any foreign government or foreign government official, the Company will have preliminary due diligence commensurate with the risks posed by the particular target in question performed with respect to corruption and compliance with the FCPA. If warranted by the results of preliminary FCPA due diligence, the Company will have additional due diligence or investigation performed as necessary. The Company shall, informing the Board of Directors as necessary, address before an acquisition any potential indicators discovered during due diligence of past or current activity that might materially violate the FCPA by taking steps reasonably designed to comply with the FCPA Employment of Customer Representatives

No employees shall solicit a client interface for employment by the Company and no employee of the Company shall hire a client interface unless the following steps have been taken to protect the Company's client relationship:

● The client interface approached the Company with interest or made himself/herself available for candidacy at his/her own request.

● The employee notifies the People Operations department of the client interface's interest in pursuing employment with the Company. People Operations will advise the appropriate members of senior management of this interest and collectively a decision will be made as to the appropriate measures to take to protect the client relationship with the Company.

● Once mutual interest has been determined, the interface must inform his/her management that conversations are being pursued with the Company.

● In the event of controversy surrounding the interface and his/her candidacy, it may become necessary for a member of senior management to initiate a conversation with the candidate's management.

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| **9** | **Government and Investor Relations** |

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Associates must endeavor to adhere to the highest standards of ethical conduct in all relationships with government employees and must not improperly attempt to influence the actions of any public official.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1** **Payments to Officials** 

Payments or gifts shall not be made directly or indirectly to any government official or known associate of a government official if the gift or payment is illegal under the laws of any country (or, if applicable, subdivision, territory or protectorate thereof) having jurisdiction over the transaction, or if it is for one of the types of "corrupt" purposes described in Section 8.6 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2** **Political Contributions** 

Company funds, property or services may not be contributed to any political party or committee, or to any candidate for or holder of any office of any government. This policy does not preclude, where lawful, Company expenditures to support or oppose public referendum or separate ballot issues, or, where lawful and when reviewed and approved in advance by People Operations, the formation and operation of a political action committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3** **Investor Relations** 

The Company's employees are expected to endeavor to create a good impression at all times and to endeavor to project a positive and supportive attitude about the Company and its products and services. The Company needs to maintain a single line of contact with the investment community and with the media and press. Employees should not make derogatory comments about the Company, its products, services, management, employees and systems. Additionally, without authorization, no employees should discuss the Company's plans, strategies or results with clients, securities analysts, investors or members of the press. Unless authorized to respond to inquiries, you should refer all inquiries to press@verses.ai.

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| **10** | **Compliance with Laws, Regulations, and Rules** |

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● Respect for the law and adherence to VERSES' policies and procedures are essential to the maintenance of VERSES reputation and its ability to serve its customers.

● VERSES staff are expected to be familiar with all documents that relate to the performance of their responsibilities.

● VERSES also requires staff to perform their services in an ethical manner, whether or not such behaviors are specifically described.

● Associates should endeavor to comply, both in letter and spirit, with all applicable laws, rules and regulations in the cities, states and countries in which VERSES operates.

● Although not all associates are expected to know the details of all applicable laws, rules and regulations, it is important to know enough to determine when to seek advice from appropriate personnel. Questions about compliance should be addressed to People Operations or the General Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1** **Insider Trading Policy** 

The Company expressly forbids any associate from trading in the Company's stock, or the stock of others, based on material non-public information or communicating material non-public information to others in violation of the law. This conduct is frequently referred to as "insider trading." This policy applies to every associate of the Company and extends to activities both within and outside their duties to the Company, including trading for a personal account.

The concept of who is an "insider" is broad. It includes officers, directors and employees of a Company. In addition, a person can be a "temporary insider" if he or she enters into a special confidential relationship in the conduct of a Company's affairs and as a result is given access to information solely for the Company's purpose. A temporary insider can include, among others, a Company's investment advisors, agents, attorneys, accountants and lending institutions, as well as the employees of such organizations. The Company may become a temporary insider of another Company with which it has a contractual relationship, to which it has made a loan, to which it provides advice or for which it performs other services.

Trading on inside information is not a basis for liability unless the information is material. This is information that a reasonable investor would consider important in making his or her investment decisions, or information that is likely to have a significant effect on the price of a Company's securities.

Information is non-public until it has been effectively communicated to the marketplace. Tangible evidence of such dissemination is the best indication that the information is public. For example, information found in a report filed with the SEC or appearing in a national newspaper would be considered public.

Each associate should be familiar with and abide by the Company's Disclosure, Confidentiality & Insider Trading Policy A copy of this policy is available from the People Operations Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2** **Equal Employment Opportunity** 

Subject to federal, state and provincial regulations governing the Company's business and operations, the Company makes employment-related decisions without regard to a person's race, color, religious creed, age, sex, marital status, national origin, ancestry, present or past history of mental disorder, mental retardation, learning disability or physical disability, including, but not limited to, blindness and genetic predisposition, or any other factor unrelated to a person's ability to perform the person's job. "Employment decisions" generally mean decisions relating to hiring, recruiting, training, promotions and compensation, but the term may encompass other employment actions as well.

The Company encourages its associates to bring any problem, complaint or concern regarding any alleged employment discrimination to the attention of People Operations. Associates who have concerns regarding conduct they believe is discriminatory should also feel free to make any such reports to People Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3** **Non-Harassment Policy** 

The Company is committed to maintaining a collegial work environment in which all individuals are treated with respect and dignity and which is free of harassment. In keeping with this commitment, the Company will not tolerate any form of harassment of associates prohibited by law or Company policy, including sexual harassment, in violation of this policy by anyone, including any supervisor, co-worker, vendor, client or customer, whether in the workplace, at assignments outside the workplace, at Company-sponsored social functions or elsewhere.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4** **Health, Safety & Environmental Laws** 

Health, safety, and environmental responsibilities are fundamental to the Company's values. Associates are responsible for ensuring that the Company complies with all provisions of the health, safety, and environmental laws of Canada, the United States and of other countries where the Company does business.

The penalties that can be imposed against the Company and its associates for failure to comply with health, safety, and environmental laws can be substantial, and include imprisonment and fines.

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| **11** | **Accounting** |

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● The integrity of VERSES financial information is of utmost importance. VERSES seeks to maintain transparent, accurate financial information.

● Financial records must accurately and fairly reflect, in reasonable detail, VERSES assets, liabilities, revenues and expenses.

● Financial transactions between VERSES and outside individuals and organizations must be promptly and accurately entered in our accounting and financial records.

---

| | |
|:---|:---|
| **12** | **Fiduciary Responsibility** |

---

● VERSES employees and management may only procure or use company funds or property for approved business-related purposes. All requests falling outside such parameters must be approved in writing by VERSES CFO, CAO (Chief Administration Officer), COO, or CEO.

---

| | |
|:---|:---|
| **13** | **Reporting Violations Under the Code; Non-Retaliation Policy** |

---

Any associate of the Company having any information or knowledge regarding the existence of any violation or suspected violation of the Code has a duty to report the violation or suspected violation to People Operations or the Board of Directors. Additionally, any associate may report, on a confidential and anonymous basis, to the extent legally possible, any concerns regarding questionable accounting or auditing matters in accordance with the procedures set forth in Section 4.2 above.

After receiving a report of an alleged prohibited action, People Operations or the Board of Directors must promptly take all appropriate actions it deems reasonably necessary to investigate the report. All associates are expected to cooperate in any internal investigation of misconduct.

Any associate who reports a suspected violation under the Code which the associate reasonably believes constitutes a violation of a federal criminal statute by the Company, or its agents acting on behalf of the Company, to a federal law enforcement officer or the appropriate officer of the Company identified above, may not be fired, demoted or otherwise harmed for, or because of, the reporting of the suspected violation, regardless of whether the suspected violation involves the associate, the associate's supervisor or senior management of the Company. Every report made will be treated as confidential to the extent allowed by law. In addition, any attorney working for the Company shall report evidence of a material violation of securities law or breach of fiduciary duty or similar violation by the Company or any of its agents to the Board of Directors or the CEO of the Company (or a person acting in an equivalent capacity).

---

| | |
|:---|:---|
| **14** | **Waiver Procedures** |

---

If any situation should arise where a course of action would likely result in a violation of the Code but for which the associate thinks that a valid reason for the course of action exists, the associate should contact People Operations to obtain a waiver **prior to the time the action is taken**.

People Operations will review all the facts surrounding the proposed course of action and will make a recommendation to the independent members of the Board of Directors as to whether a waiver from any policy in the Code should be granted. If a majority of the independent directors on the Board of Directors agree that a waiver should be granted, it will be granted in writing and signed by two Executive Officers, one of which must be an independent Board member. All waiver grants will be disclosed to the executive officers and to the directors. If the waiver is granted for actions to be taken by or for the benefit of an executive officer or member of the Board of Directors, the Company will disclose the nature and reasons for the waiver in a Current Report on Form 8-K to be filed with the SEC. If a majority of the independent directors deny the request for a waiver, the waiver will not be granted and the associate may not pursue the intended course of action.

**It is the Company's policy only to grant waivers from the Code in limited and compelling circumstances.**

---

| | |
|:---|:---|
| **15** | **Acknowledgment of Code of Conduct and Ethics Policy** |

---

I acknowledge receiving a copy of VERSES Code of Conduct and Ethics Policy. I have read the policy and agree to adhere to and follow the guidance set forth in this document.

Name _____________________________________________________________

Signature __________________________________________________________

Date: _____________________________________________________________

*Verses AI Inc. – Code of Conduct and Ethics Policy Acknowledgment*

## Exhibit 19.1

**Exhibit 19.1**

**DISCLOSURE, CONFIDENTIALITY & INSIDER TRADING POLICY**

![](ex19-1_001.jpg)

**The Policy**

This Policy establishes procedures that are designed to (i) permit the disclosure of information about Verses Technologies Inc. ("**Verses**" or the "**Company**") to the public in an informative, timely and broadly disseminated manner, (ii) ensure that non-publicly disclosed information remains confidential, and (iii) ensure that trading of the Company's securities by directors, officers and employees of the Company remains in compliance with applicable securities laws. The implementation of such policies and procedures is important in developing sound disclosure practices and maintaining investor confidence, as well as complying with securities laws and the Exchange's rules on disclosure and trading.

The directors of the Company have approved this Policy.

**Definitions Used in this Policy**

Certain defined terms used in this Policy are set out in **Schedule "A"**.

**Terms of this Policy**

If there is any question or concern with respect to the application of this Policy to any Employee or to any particular circumstance, a **Disclosure Officer** (Parts I and II) or an **Information Officer** (Part III), as applicable, should be contacted for guidance.

**PART I**

**DISCLOSURE**

**1.** **Timely Disclosure** 

The Company will publicly disclose Material Information immediately upon it becoming apparent that the information is material except in restricted circumstances where immediate release of the information would be unduly detrimental to the interests of the Company (and where the Company complies with any confidential filing obligations and maintains confidentiality of the information). In addition to being illegal if conducted in breach of applicable laws, unusual trading marked by significant changes in the price or trading volumes of the Company's securities prior to the announcement of Material Information may embarrass the Company and may damage its reputation with the investing public and lead to investigations by regulatory authorities.

![](ex19-1_001.jpg)

**2.** **Disclosure Officers** 

For purposes of this Policy, the Chief Financial Officer of the Company has been designated as the Disclosure Officer and can be contacted at kevin.w@verses.io.

Generally, the Disclosure Officer, and employees/contractors engaged in investor relations activities are the only individuals authorized to communicate with analysts and investors about information concerning the Company. Employees who are not Disclosure Officers should refer all calls or other communications from shareholders and holders of other securities of the Company, the financial community and media which relate to the Company to the Disclosure Officer. If an Employee has any doubt as to whether any calls or other communications may relate to Company policies, Undisclosed Material Information or legal issues, the Employee should refrain from responding and should refer the communication to the Disclosure Officer. Employees should err on the side of caution. If it is appropriate for an Employee to discuss information about the Company, the Employee should, if possible, first advise a Disclosure Officer of the nature of the information to be discussed and, afterwards, advise the Disclosure Officer of what actually was discussed. Employees may not communicate Undisclosed Material Information unless they have prior permission from a Disclosure Officer, which permission will not be given unless the provisions of Part II of this Policy are complied with.

The Disclosure Officer, as well as corporate counsel, must continue to be fully apprised of Company developments, in order that they be in a position to evaluate and discuss those events that may impact on the disclosure process (e.g., the status of any merger activities, material operational developments, extraordinary transactions, management changes, etc.). The directors must also be kept aware of all material developments and significant information disseminated to the public. If it is deemed that Material Information should remain confidential, the Disclosure Officer will determine how that information will be controlled. In addition, if any Employee becomes aware of any information that may constitute Material Information, the Employee must advise a Disclosure Officer as soon as possible.

**3.** **What Constitutes Material Information?** 

Information is material if it would reasonably be expected to result in a significant change in the market price or value of any of the Company's securities. Materiality judgements involve taking into account a number of factors, including the nature of the information itself, the volatility of the Company's securities and prevailing market conditions. The materiality of a particular event or piece of information varies between companies according to their size, the nature of their operations and many other factors. An event which is "significant" or "major" for a smaller company may not be material to a larger company. The Company will attempt to monitor the market's reaction to information that is publicly disclosed by it. Ongoing monitoring and assessment of market reaction will be helpful when making materiality judgements in the future.

![](ex19-1_001.jpg)

A good rule of thumb is that if the information would influence an Employee's decision to buy or sell securities of the Company, the information is probably material. If an Employee is unsure whether or not information is material, the Employee should immediately contact a Disclosure Officer before disclosing it to anyone. Employees should err on the side of caution in such matters. If the Disclosure Officer is unable to determine whether or not the information is material, the Disclosure Officer may convene a meeting of senior management and, if necessary, the directors, to determine, with the assistance of the Company's legal counsel, if appropriate, if the information is material, whether or not it should be disclosed or remain confidential, and if the information needs to be disclosed, the method for disseminating the information.

Developments, whether actual or proposed, which are likely to give rise to material information and thus to require prompt disclosure may include, but are not limited to, those events listed on Schedule "B".

**4.** **Basic Disclosure Rules** 

All public disclosure of Material Information pursuant to this Policy must be made by way of press release disseminated through a widely circulated newswire service company.

In order to maintain consistent and accurate disclosure about the Company, the following principles should generally be followed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) disclosure
 should be factual and balanced, neither over-emphasizing favourable news nor under-emphasizing
 unfavourable news. Disclosure must include any information without which the rest of the
 disclosure would be misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) unfavourable
 information must be disclosed as promptly and completely as favourable information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) avoid
 unnecessary detail, exaggerated reports or promotional commentary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) no
 selective disclosure. Previously undisclosed information may not be disclosed to selected
 persons; if there is disclosure it must be made widely (i.e., by way of a press release);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) disclosure
 must be updated if earlier disclosure has become misleading as a result of intervening events;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) if
 Material Information is to be announced at an analyst or securityholders' meeting or
 a press conference or other forum, any such announcement must be co- ordinated with an advance
 general public announcement by a press release containing the relevant information.

![](ex19-1_001.jpg)

The Company has developed and intends to maintain a routine procedure for all corporate communications. The procedure consists of drafting a press release, circulating it for review to the Disclosure Officers and directors, and other officers as appropriate, alerting the Exchange if required by the policies of the Exchange and disseminating the release through a national wire service and other distribution channels so as to effect broad dissemination to the public. A similar review process applies to all other corporate communications, including brochures, web presentations, videos or other electronic communications used for promotional or investor relations purposes. Any significant changes to these communications should go through the same process. The Company will keep a record of the approval of these communications and make sure that only the currently approved version can be obtained.

The following general guidelines should be considered for the preparation and dissemination of news releases: (a) be clear and specific with assumptions and numbers; (b) do not hide negative facts; and (c) with the exception of Material Changes requiring immediate disclosure, news releases should be released prior to the market opening whenever possible.

Any news release containing financial information based on the Company's financial statements (prior to the release of such financial statements) must be approved by the audit committee of the Company prior to dissemination.

**5.** **Conference Calls; Industry Conferences** 

Conference calls may be held to discuss quarterly and annual results and major corporate developments, where discussion of key aspects is accessible simultaneously to all interested parties. Such calls will be preceded by a press release containing all relevant Material Information. At the beginning of the call, a Company spokesperson will provide appropriate cautionary language with respect to any forward-looking information and direct participants to publicly available documents containing, if applicable, the assumptions, sensitivities and a discussion of the risks and uncertainties.

The Company will provide advance public notice of the conference call by issuing a press release announcing the date and time, the subject matter of the call and providing information on how interested parties may access the call. In addition, the Company may send invitations to analysts, institutional investors, the media and others to participate. A tape recording of the conference call and/or an archived audio webcast or transcript on the Internet will be made available following the call for a reasonable period of time (generally a minimum of 30 days), for anyone interested in listening to a replay.

In advance of an analyst conference call or industry conference, to the extent practicable, the Company will endeavour to script comments and responses to anticipated questions in order to identify Undisclosed Material Information that should be publicly disclosed and will limit comments and responses to non-material information and Material Information that has previously been publicly disclosed. After the call or presentation, a debriefing should be conducted to review what was actually said and a record of what was said should be filed in the disclosure record referred to in section 12 below. If there was any unintentional selective disclosure, immediate steps should be taken to make a full public announcement.

![](ex19-1_001.jpg)

**6.** **Forward-Looking Information** 

Subject to the approval and disclosure procedures provided elsewhere in this Policy, the Company may provide limited forward-looking information to enable securityholders and the investment community to better evaluate the Company and its prospects, provided the Company has a reasonable basis for the forward-looking information. The Company will ensure that such statements are identified as forward-looking. Moreover, meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the statements and a description of the factors or assumptions that were used in making the forward-looking statements will accompany such statements. The Company will seek the assistance of its legal counsel as appropriate to ensure that securities laws that relate to disclosure of forward-looking information are complied with.

The Company undertakes no obligations to update forward-looking statements, except as required by applicable law.

The Company, to the extent practicable in the circumstances, will update forward-looking statements that continue to be material and that change materially.

**7.** **Correction of Selective Disclosure** 

If previously Undisclosed Material Information has been inadvertently disclosed to an analyst or any other person, the information must be publicly disclosed immediately by way of press release. The Exchange should be contacted and a halt in trading in the Company's securities should be requested pending the issuance of the press release. Pending the public release of the Material Information, the parties who have knowledge of the information should be advised that the information is material and has not been generally disclosed.

Selective disclosure most often occurs in one-on-one discussions (such as analyst meetings) and in industry conferences and other types of private meetings and break-out sessions, but it can occur elsewhere. For example, the Company should not discuss Undisclosed Material Information at its annual general meeting of shareholders.

**8.** **Rumours** 

Rumours can cause unusual market activity. The Company will respond consistently to market rumours in the following manner: "it is our policy not to comment on market rumours or speculation". If market activity indicates that trading is being unduly influenced by rumours, the Exchange may request, or the Company may determine, that a clarifying statement be made through a press release. A trading halt may be instituted or requested pending an announcement by the Company. If the rumour is true, either in whole or in part, immediate disclosure will generally be required. The determination to make disclosure will be made by the Disclosure Officer.

![](ex19-1_001.jpg)

**9.** **Contact with Analysts and Others; Analyst Reports** 

The Company recognizes that meetings with analysts and significant investors are an important element of the Company's investor relations program. The Company, with the approval of either the Chief Financial Officer or Chief Executive Officer or the board of directors of the Company, will meet with analysts and investors on an individual or small group basis (including participating in industry conferences) as needed and will initiate contacts or respond to calls in a timely, consistent and accurate fashion in accordance with the requirements of this Policy. The Company recognizes, however, that private meetings with analysts and other small group meetings carry with them the risk of inadvertent selective disclosure, which should be avoided. After an interview, press conference, discussion with an analyst or visit to the Company's office by an analyst, a debriefing should be conducted to review what was actually said and a record of what was said should be filed in the disclosure record referred to in section 12 below.

The Chief Financial Officer and Chief Executive Officer should avoid getting involved in the contents of an analyst's report, except to correct factual errors. Confirmation of or attempting to influence an analyst's opinions or conclusions may be considered to be selective disclosure by the Company. "No comment" is an acceptable answer to questions that cannot be answered without violating the rule against selective disclosure. With regard to responding to financial models or drafts of analysts' reports, it is the Company's policy to review, on request, the model or report for publicly disclosed factual content only (not "soft" information) and to give guidance only when assumptions have been made on the basis of incorrect public data that render unrealistic conclusions. It is imperative that the control of this process be centralized through the Chief Financial Officer or Chief Executive Officer of the Company. The Company should confirm in writing that its review has been limited to publicly available factual information and detail what information (if any) has been provided by the Company to the analyst. The Company will not confirm, or attempt to influence, an analyst's opinions or conclusions and will not express comfort with an analyst's model. Meetings with analysts may include general discussions regarding the Company's prospects, business environment, management philosophy and long-term strategy, but should avoid discussions regarding Undisclosed Material Information.

The Company will generally not redistribute analyst reports to persons outside of the Company (including by posting such reports on its website). The Company will consider including in its regular periodic disclosures (such as its quarterly and annual management's discussion and analysis disclosure) details about topics of interest to analysts, investors and other market participants as a means of providing more information to the marketplace generally and limiting its "selective disclosure" risks. The Company will ensure that disclosure will be consistent among all audiences, including the investment community, the media and investors.

![](ex19-1_001.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Quiet Periods** 

In order to limit the potential for selective disclosure (and the perception or appearance of selective disclosure), the Company will observe a "quiet period" during which time there will be no comment on analysts' estimates or any other comments with respect to the current financial period's operations or expected results. The quiet period will normally commence on the last day of an interim or annual financial period and end on the trading day following the issuance of a press release or other document disclosing the results for the period.

**11.** **Notification of Market Surveillance** 

When the Exchange is open for trading, advance notice of a press release announcing Material Information must be provided to the market surveillance department (or similar department or regulation service provider) of the Exchange to determine if a halt in trading is necessary to provide time for the market to digest the news. When a press release announcing Material Information is issued outside of trading hours, the market surveillance department of the Exchange should be notified before the market opens. Copies of all press releases should be supplied to the market surveillance department of the Exchange and to the relevant securities regulators immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Disclosure Record** 

The Company will maintain a file containing all public information about the Company. This includes news releases, approved corporate communications, brokerage research reports, reports in the press and notes from meetings with analysts, securityholders and other market participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.** **Electronic Communications; Company Website** 

This Policy also applies to electronic communications, including the Company's website. Accordingly, officers and personnel responsible for written and oral public disclosures will also be responsible for electronic communications.

The Chief Financial Officer of the Company is responsible for monitoring all information placed on the website to ensure that it is accurate, complete, up-to-date and in compliance with relevant securities laws. Disclosure on the Company's website alone does not constitute adequate disclosure of information that is considered Undisclosed Material Information. Any disclosure of Material Information on the website will be preceded by the issuance of a press release. The Company will, however, endeavour to concurrently post to its website (or provide a link to) all documents filed on SEDAR by the Company in an effort to improve investor access to its information. Where practicable, the Company will also endeavour to post on its website all supplemental information that is given to analysts, institutional investors and other market professionals such as data books, fact sheets, slides of investor presentations or other relevant materials.

![](ex19-1_001.jpg)

The Company will not link to or post analysts reports on its website. The Chief Financial Officer is also principally responsible for responses to electronic inquiries. Only public information or information which could otherwise be provided in accordance with this Policy will be utilized in responding to electronic inquiries.

In order to ensure that no Undisclosed Material Information is inadvertently disclosed, Employees may not participate in Internet chat rooms or newsgroup discussions on matters pertaining to the Company's activities or its securities. Employees who encounter a discussion pertaining to the Company should advise one of the Disclosure Officers promptly, so that the discussion may be monitored, if determined appropriate. The Company will not host or link to chat rooms, bulletin boards or news groups.

**PART II**

**CONFIDENTIALITY**

**1.** **When Disclosure of Material Information May Be Delayed** 

Where the immediate disclosure of Material Information, as is typically required by securities laws, would be unduly detrimental to the interests of the Company, securities laws may permit its disclosure may be delayed and kept confidential temporarily. Keeping Material Information confidential can only be justified where the potential harm to the Company, its business partners (including any entities related to the Company's streams and royalties) or to investors caused by immediate disclosure may reasonably be considered to outweigh the undesirable consequences of delaying disclosure and where confidentiality of the information is maintained.

Examples of circumstances in which disclosure might be unduly detrimental to the interests of the Company include: (a) where the release of information would prejudice the ability of the Company to pursue specific and limited objectives or to complete a transaction or series of transactions that are underway; (b) where the disclosure of the information would provide competitors with confidential corporate information that would be of significant benefit to them; and (c) where the disclosure of information concerning the status of ongoing negotiations would prejudice the successful completion of those negotiations.

All decisions to delay disclosure of Material Information must be made by the Disclosure Officer in the first instance and thereafter by the board of directors. In such circumstances, the Company will comply with any obligation to make a confidential filing with applicable securities regulators and to notify the Exchange and market surveillance and, if applicable, the obligation to advise the applicable securities regulatory authorities of continued confidential treatment. The Company should also maintain confidentiality of the information, and market activity in the Company's securities should be carefully monitored to assess whether any of the confidential information may have been leaked. Upon the Company becoming aware, or having reasonable grounds to believe, that persons or companies are purchasing or selling the Company's securities with knowledge of Material Information, the Company must promptly generally disclose the Material Information.

![](ex19-1_001.jpg)

**2.** **Access to Confidential Information** 

Employees will be given access to confidential information about the Company and its business partners on an "as needed" basis only and must not disclose that information to anyone except with the prior approval of a Disclosure Officer and where such disclosure is in the necessary course of business (e.g., discussions with the Company's bankers or advisers where the disclosure of the confidential information is necessary and the persons receiving it understand that it is to be kept confidential). Other circumstances where disclosure may be considered in the "necessary course of business" may include communications with: (i) vendors, suppliers or strategic partners; (ii) employees, officers and directors; (iii) lenders, legal counsel, auditors, underwriters and financial and other professional advisors to the Company; (iv) parties to negotiations (e.g., in connection with a private placement or acquisition); (v) labour unions and industry associations; (vi) government agencies in non-governmental regulators; and (vii) credit rating agencies. However, determining what confidential information can be disclosed in the "necessary course of business" is difficult, and the assistance of legal counsel to the Company should be sought. Selective disclosure of Material Information to analysts, institutional investors or other market professionals is not generally considered in the "necessary course of business". Employees must not discuss confidential information in situations where they may be overheard or participate in discussions regarding decisions by others about investments in the Company.

**3.** **Disclosure of Confidential Information** 

In the event that material confidential information, or rumours respecting the same, is divulged in any manner (other than in the necessary course of business), the Company is required to make an immediate announcement on the matter. The Exchange must be notified of the announcement in advance in the usual manner and a halt in trading in the Company's securities may be required.

**4.** **Disclosure of Information to Outsiders** 

Before a meeting with other parties at which Undisclosed Material Information of the Company may be discussed in compliance with this Policy, the other parties should be told that they must not divulge that information to anyone else, other than in the necessary course of business, and that they may not trade in the Company's securities until after the information is publicly disclosed and a reasonable period of time for its dissemination has passed. In such circumstances, the feasibility of having such parties enter into a confidentiality agreement with the Company should be considered.

![](ex19-1_001.jpg)

**PART III**

**INSIDER TRADING POLICY**

**1.** **General Prohibition** 

No Employees or Restricted Persons may Trade in the securities of the Company when they are aware of Undisclosed Material Information until the information is publicly disclosed and a reasonable period of time for its dissemination has passed. Generally, "a reasonable period of time" will be two (2) trading days; however, it may be shorter or longer depending on the market following of the Company. An Information Officer should be consulted to determine what would be a "reasonable period of time" in the circumstances.

In addition, Employees or Restricted Persons are prohibited from informing, or "tipping", anyone else about that Undisclosed Material Information unless it is necessary in the course of the Company's business (as discussed in Part II, section 2 above). It is also illegal for Employees or Restricted Persons with knowledge of Undisclosed Material Information to recommend or encourage another person to Trade securities of the Company. These prohibitions extend to other securities whose price or value may reasonably be expected to be affected by changes in the price of the Company's securities and includes the granting or exercise of options. Rapid buying and selling by Employees and Restricted Persons of the Company's securities is strongly discouraged because of the possible perception of trading on Undisclosed Material Information.

**2.** **Information Officer** 

For purposes of this Policy, the Chief Financial Officer of the Company has been designated as the Information Officer. Employees or Restricted Persons must contact the Information Officer to obtain permission before Trading any securities of the Company (which includes exercise of options or other convertible securities such as warrants).

**3.** **Requirement to Obtain Permission to Trade** 

Employees or Restricted Persons must contact an Information Officer to obtain permission before Trading any securities of the Company (which includes exercise of options or other convertible securities such as warrants).

**4.** **Undisclosed Material Information of Other Companies** 

Where Employees or Restricted Persons become aware of Undisclosed Material Information concerning another public company, they may not Trade the securities of that company until the information is publicly disclosed and a reasonable period of time for its dissemination has passed. Generally, a "reasonable period of time" will be two (2) trading days; however, it may be shorter or longer depending upon the particular market following of that other company. An Information Officer should be consulted to determine what would be a "reasonable period of time" in the circumstances.

![](ex19-1_001.jpg)

**5.** **Restricted Persons** 

Restricted Persons are prohibited from Trading whenever there are Pending Material Developments, even if they are unaware of the details of the same. In the circumstances where there is a Pending Material Development with respect to the Company, a confidential memo will be sent to all Restricted Persons, as well as to other Employees if it is determined appropriate, informing them of the Blackout Period with respect to such Pending Material Development at which time they shall cease Trading until further notice. No reason for the Trading restriction will be provided.

During a Blackout Period, the board of directors of the Company may determine that special circumstances warrant permitting a specific Trade to occur during the Blackout Period and may approve that Trade. If Employees or Restricted Persons believe that such circumstances may apply to them in a particular instance, they may request that an Information Officer present their circumstances to the board of directors.

The board of directors of the Company is responsible for making the determination as to when a pending transaction constitutes a Pending Material Development. As guidance, a Blackout Period must at least commence once negotiations on a proposed transaction have progressed to a point where it reasonably could be expected that the market price of the Company's securities would be significantly affected if the status of the transaction were publicly disclosed.

**6.** **Blackout Periods** 

The Information Officer, in consultation with senior management, may prescribe Blackout Periods from time to time during which all Employees and Restricted Persons will be generally restricted from Trading the Company's securities. The purpose of such Blackout Periods is to prevent Employees and Restricted Persons who may be aware of Undisclosed Material Information from Trading the Company's securities until such information has been disclosed and for a reasonable period of time following the disclosure of that information. Generally, a "reasonable period of time" will be two (2) trading days; however, it may be shorter or longer. The Information Officer, in consultation with senior management, will be responsible for setting the length of Blackout Periods and notifying Employees and Restricted Persons of Blackout Periods in effect.

For example, a Blackout Period may commence on the last day of an interim or annual financial period and end on the trading day following the issuance of a press release or financial statements and MD&A disclosing the results for the period.

The fact that a Blackout Period has been imposed must be kept strictly confidential.

![](ex19-1_001.jpg)

**7.** **Insider Trading Reports** 

"Reporting insiders" of the Company are required to file insider trading reports within five (5) days of a change in their ownership position in any securities of the Company (this includes the grant of options or other convertible securities to such persons or the exercise by them of such options or convertible securities). Reporting insiders are also required to file an "initial" insider report within ten days of the date on which the person or the Company became a reporting insider (an initial report is not required, however, when a person becomes a reporting insider if he/she has no direct or indirect beneficial ownership, control or direction over securities of the Company). These reports are to be filed electronically using the SEDI system.

**Schedule "C"** sets out those persons who are "reporting insiders".

**8.** **Penalties** 

When Employees or Restricted Persons violate this Policy, it causes embarrassment and other harm to the Company. As a result, the Company may take its own disciplinary actions, which could result in termination of employment or implementation of a probationary period. The Company is also entitled to pursue legal remedies through the courts. If appropriate, the Company will also report the matter to the appropriate regulatory authorities.

The prohibition against Trading on (or informing others with respect to) Undisclosed Material Information as set forth in Canadian securities legislation can be enforced through a wide range of penalties, including: (a) fines and penal sanctions; (b) civil actions for damages; (c) an accounting to the Company for any benefit or advantage received; and (d) administrative sanctions by securities commissions, such as cease trade orders and removal of exemptions.

In particular, a contravention of the insider trading rules can result in penalties including possible civil damages to sellers or purchasers of shares, imprisonment for up to three years and fines equal to an amount that is: (a) not less than any profit made by all persons because of the contravention; and

(b) not more than the greater of $3 million and an amount equal to triple any profit made by all persons because of the contravention. Insiders, affiliates or associates of the Company who contravene the insider trading rules may also be liable to pay to the Company an amount equal to:

(a) the benefit that the person received as a result of the contravention; and (b) the benefit that all persons received as a result of the contravention.

A defence may be available if the person can show that, at the time of the purchase, sale or "tipping", as the case may be, the person reasonably believed that the inside information had been generally disclosed.

![](ex19-1_001.jpg)

**9.** **Policy Review and Oversight** 

The board of directors of the Company will review this Policy as required from time to time to ensure that it is achieving its purpose. Based on the results of the review, the policy may be revised accordingly. The chairman of the board of directors of the Company shall be responsible for initiating the review.

The Chief Financial Officer, subject to the approval of the directors of the Company, shall have overall responsibility for developing and implementing this Policy, monitoring the effectiveness of and compliance with this Policy and educating the Company's directors, officers and employees about this Policy.

Dated <u>_________________</u>, 2022

**SCHEDULE "A"**

**DEFINITIONS**

**"Blackout Period"** means a period during which Employees and Restricted Persons are restricted by the Company from Trading the Company's securities;

**"Company"** means Verses Technologies Inc. and its subsidiaries;

**"Disclosure Officers"** means the individuals who are responsible for communicating with analysts, the news media and investors and ensuring that Employees do not communicate confidential information about the Company;

**"Employees"** means all directors, officers, and other individuals currently employed or engaged as a consultant by the Company or those authorized to speak on the Company's behalf who may become aware of Undisclosed Material Information;

**"Exchange"** means the NEO Exchange Inc. and any other stock exchange on which securities of the Company are listed from time to time;

**"Information Officers"** means the individuals whom Employees or Restricted Persons may contact to determine whether or not they may Trade the Company's securities or reveal Undisclosed Material Information in the necessary course of business;

**"insider"** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) a
 director or an officer of an issuer,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) director or an officer of a person that is itself an insider
or a subsidiary of an issuer,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) a
 person that has

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) beneficial ownership of, or control or direction over, directly
or indirectly, or,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a combination of beneficial ownership of, and control or direction
over, directly or indirectly,

securities of an issuer carrying more than 10% of the voting rights attached to all the issuer's outstanding voting securities, excluding, for the purpose of the calculation of the percentage held, any securities held by the person as underwriter in the course of a distribution,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) an issuer that has purchased, redeemed or otherwise acquired
a security of its own issue, for so long as it continues to hold that security,

**"Material Change"** means a change in the business, operations or capital of the Company that would reasonably be expected to have a significant effect on the market price or value of any of the securities of the Company and includes a decision by the directors or senior management of the Company to implement a change, when confirmation of the decision by the directors or senior management, as applicable, is probable;

**"Material Fact"** means a fact that significantly affects or would reasonably be expected to have a significant effect on the market price or value of the Company's securities;

**"Material Information"** means any information (Material Fact or Material Change) relating to the business and affairs of the Company that results in or would reasonably be expected to result in a significant change in the market price or value of any of the Company's securities;

**"Pending Material Developments"** means a proposed transaction of the Company that would constitute Material Information; however, a decision to proceed with the transaction has not been made by the directors or by senior management, although there is an expectation of occurrence from the directors;

**"Restricted Persons"** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) directors,
 officers and senior management of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Employees
 who are routinely in possession of Undisclosed Material Information;

**"Trade"** (and variants thereof including **"Trading"**) means entering into a transaction involving, including buying or selling, a security; and

**"Undisclosed Material Information"** means Material Information pertaining to the Company or its subsidiaries that has not been publicly disclosed or information that has been publicly disclosed, but a reasonable period of time for its dissemination has not passed.

**SCHEDULE "B"**

**EXAMPLES OF POTENTIALLY MATERIAL INFORMATION**

The following are examples of the types of events or information that may be material. This list is not exhaustive.

**Changes in Company Structure**

● changes in security ownership that may affect control of the Company

● major reorganizations, amalgamations, or mergers

● take-over bids, issuer bids, or insider bids

**Changes in Capital Structure**

● the public or private sale of additional securities

● planned repurchases or redemptions of securities

● planned splits of securities or offerings of warrants or rights to buy securities

● any security consolidation, security exchange, or security dividend or distribution

● changes in the Company's dividend payments (if any) or policies

● the possible initiation of a proxy fight

● material modifications to rights of security holders

**Changes in Financial Results**

● unexpected changes in the financial results for any periods

● shifts in financial circumstances, such as cash flow reductions, major asset write- offs or write-downs

● changes in the value or composition of the Company's assets

● any material change in the Company's accounting policy

**Changes in Business and Operations**

● significant results of business development or other similar activities

● a significant change in capital investment plans or corporate objectives

● major labour disputes or disputes with major contractors or suppliers

● significant new contracts or losses of significant contracts

● changes to the board of directors or senior management, including the departure of the CEO, CFO, or Vice President (or persons in equivalent positions)

● the commencement of, or developments in, material legal proceedings or regulatory matters

● waivers of corporate ethics and conduct rules for directors, officers and other key employees

● any notice that reliance on a prior audit is no longer permissible

● de-listing of the Company's securities or their movement from one exchange or quotation system to another

● any oral or written agreement to enter into any management contract, investor relations agreement, service agreement not in the normal course of business, or related party transaction

**Acquisitions and Dispositions**

● significant acquisitions or dispositions of assets, property or joint venture interests

● acquisitions of other companies, including a take-over bid for, or merger with, another company

**Changes in Credit Arrangements**

● the borrowing or lending of a significant amount of money

● any mortgaging or encumbering of the Company's assets

● defaults under debt obligations, agreements to restructure debt, or planned enforcement procedures by a bank or any other creditors

● changes in rating agency decisions

● significant new credit arrangements

**Other**

● any other developments relating to the business and affairs of the Company that would reasonably be expected to significantly affect the market price or value of any of the Company's securities or that would reasonably be expected to have a significant influence on a reasonable investor's investment decisions.

**SCHEDULE "C"**

An insider of a reporting issuer will be a "reporting insider" if the insider is:

a) the
 CEO, CFO or COO of the reporting issuer, of a "significant shareholder" of the
 reporting issuer or of a "major subsidiary" of the reporting issuer (as such
 terms are defined below);

b) a
 director of the reporting issuer, of a significant shareholder of the reporting issuer or
 of a major subsidiary of the reporting issuer;

c) a
 person or company responsible for a principal business unit, division or function of the
 reporting issuer;

d) a
 significant shareholder of the reporting issuer;

e) a
 management company that provides significant management or administrative services to the
 reporting issuer or a "major subsidiary" of the reporting issuer, and the CEO,
 CFO, COO and every director of the management company, and every significant shareholder
 of the management company;

f) an
 individual performing functions similar to the functions performed by any of the insiders
 described in paragraphs (a) to (e);

g) the
 reporting issuer itself, if it has purchased, redeemed or otherwise acquired a security of
 its own issue, for so long as it continues to hold that security; or

h) any
 other insider that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. in
 the ordinary course receives or has access to information as to material facts or material
 changes concerning the reporting issuer before the material facts or material changes are
 generally disclosed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. directly
 or indirectly exercises, or has the ability to exercise, significant power or influence over
 the business, operations, capital or development of the reporting issuer.

In determining whether an insider satisfies the "significant influence" criterion, the insider should consider whether he or she exercises, or has the ability to exercise, significant influence over the business, operations, capital or development of the issuer that is reasonably comparable to that exercised by one or more of the enumerated positions in the definition of "reporting insider".

For the purposes of the definition of a reporting issuer, a subsidiary of an issuer will be considered a "major subsidiary" of a reporting issuer if the assets or revenues of the subsidiary represent 30% or more of the consolidated assets or revenues of the reporting issuer on its most recent financial statements. This requirement will increase the threshold required to be considered a "major subsidiary" from the current threshold of 20%.

**Receipt of Disclosure, Confidentiality & Insider Trading Policy**

Complete form and return to:

VERSES TECHNOLOGIES INC.

E-mail: kevin.w@verses.io

I, <u>____________________________________</u>acknowledge that I have received, read, understand, accept and agree to be bound by the conditions outlined in Disclosure, Confidentiality & Insider Trading Policy dated _________________, 2022.

---

| | |
|:---|:---|
| Employee Signature | Date |
| (print employee name) |  |

---

## Exhibit 21.1

**Exhibit 21.1**

**LIST OF SUBSIDIARIES OF VERSES AI INC.**

---

| | |
|:---|:---|
| **Name** | **State/Country of Organization or Incorporation** |
| Verses Technologies USA, Inc. | Wyoming |
| Verses Operations Canada Inc. | Canada |
| Verses Logistics Inc. | Wyoming |
| Verses Realities Inc. | Wyoming |
| Verses Inc. | Wyoming |
| Verses Health Inc. | Wyoming |
| Verses Global BV | Netherlands |
| Verses Solutions Inc | Wyoming |

---

## Exhibit 23.1

**Exhibit 23.1**

**<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**

We hereby consent to the incorporation by reference in the Registration Statement on Form S-8, of our report dated June 30, 2025, except for Note 25, as to which the date is July 14, 2025, relating to the consolidated financial statements which appeared in Verses AI, Inc.'s Annual Report on Form 10-K as of and for the years ended March 31, 2025 and 2024.

*/s/ M&K CPA's, PLLC*

The Woodlands, TX

July 14, 2025

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER OF VERSES AI INC.<br> PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Gabriel René, certify that:

1. I
 have reviewed this Annual Report on Form 10-K of Verses AI Inc.;

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
 to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
 the period covered by this report;

3. Based
 on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
 respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
 this report;

4. The
 registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures
 (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange
 Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;a. Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
 to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

b. Designed such
 internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,
 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
 external purposes in accordance with generally accepted accounting principles;

c. Evaluated the
 effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the
 effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
 and

d. Disclosed in
 this report any change in the registrant's internal control over financial reporting that occurred during the registrant's
 most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected,
 or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's
 other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting,
 to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the
 equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;a. All significant
 deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
 likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud,
 whether or not material, that involves management or other employees who have a significant role in the registrant's internal
 control over financial reporting.

---

| | |
|:---|:---|
| Date: July 14, 2025 | */s/ Gabriel René* |
|  | Gabriel René |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER OF VERSES AI INC.**

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, James Christodoulou, certify that:

1. I
 have reviewed this Annual Report on Form 10-K of Verses AI Inc.;

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
 to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
 the period covered by this report;

3. Based
 on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
 respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
 this report;

4. The
 registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures
 (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange
 Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;a. Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
 to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

b. Designed such
 internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,
 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
 external purposes in accordance with generally accepted accounting principles;

c. Evaluated the
 effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the
 effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
 and

d. Disclosed in
 this report any change in the registrant's internal control over financial reporting that occurred during the registrant's
 most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected,
 or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's
 other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting,
 to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the
 equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;a. All significant
 deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
 likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud,
 whether or not material, that involves management or other employees who have a significant role in the registrant's internal
 control over financial reporting.

---

| | |
|:---|:---|
| Date: July 14, 2025 | */s/ James Christodoulou* |
|  | James Christodoulou |
|  | Chief Financial Officer |
|  | (Principal Financial Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**STATEMENT OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER**

**PURSUANT TO SECTION 1350 OF TITLE 18 OF THE UNITED STATES CODE**

Pursuant to Section 1350 of Title 18 of the United States Code as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Gabriel René and James Christodoulou, the, Chief Executive Officer and Chief Financial Officer, respectively, of Verses AI Inc. (the "Company"), hereby certifies that based on the undersigned's knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;1. The Company's
 Annual Report on Form 10-K for the year ended March 31, 2025 (the "Report") fully complies with the requirements of Section
 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained
 in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Date: July 14, 2025 | */s/ Gabriel René* |
|  | Gabriel René |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |
| Date: July 14, 2025 | */s/ James Christodoulou* |
|  | James Christodoulou |
|  | Chief Financial Officer |
|  | (Principal Financial Officer) |

---