# EDGAR Filing Document

**Accession Number:** 0001947971
**File Stem:** 0001213900-23-009321
**Filing Date:** 2023-2
**Character Count:** 1676886
**Document Hash:** 9ab21049a3de5391d1e9a56d2d8026f7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-23-009321.hdr.sgml**: 20230209

**ACCESSION NUMBER**: 0001213900-23-009321

**CONFORMED SUBMISSION TYPE**: F-1

**PUBLIC DOCUMENT COUNT**: 44

**FILED AS OF DATE**: 20230208

**DATE AS OF CHANGE**: 20230209

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Droneify Holdings Ltd
- **CENTRAL INDEX KEY:** 0001947971
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** F-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-269652
- **FILM NUMBER:** 23600979

**BUSINESS ADDRESS:**
- **STREET 1:** 103-482 SOUTH SERVICE ROAD EAST
- **CITY:** OAKVILLE
- **STATE:** A6
- **ZIP:** L6J 2X6
- **BUSINESS PHONE:** 1-866-895-7466

**MAIL ADDRESS:**
- **STREET 1:** 103-482 SOUTH SERVICE ROAD EAST
- **CITY:** OAKVILLE
- **STATE:** A6
- **ZIP:** L6J 2X6

**As filed with the Securities and Exchange Commission on February 8, 2023**

**Registration No. 333-** 

 **UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br>WASHINGTON, D.C. 20549**

#### ______________

#### FORM F-1<br>REGISTRATION STATEMENT UNDER<br>THE SECURITIES ACT OF 1933

#### ______________

#### DRONEIFY HOLDINGS LIMITED
(Exact name of Registrant as specified in its charter)

#### ______________

#### Not Applicable<br> (Translation of Registrant's Name into English)

#### ______________

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| | | |
|:---|:---|:---|
|  **Cayman Islands** | **7374** | **Not Applicable** |
|  (State or other jurisdiction of <br>incorporation or organization) | (Primary Standard Industrial <br>Classification Code Number) | (I.R.S. Employer <br>Identification Number) |

---

#### 103-482 South Service Road East<br>Oakville, ON Canada L6J 2X6<br>1-866-895-7466<br> (Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices)

#### ______________

#### Cogency Global Inc.<br>122 East 42 <sup>nd</sup> Street, 18 <sup>th</sup> Floor<br>New York, NY 10168<br> (800) 221-0102<br> (Names, address, including zip code, and telephone number, including area code, of agent for service)

#### ______________

---

| | |
|:---|:---|
|  ***Copies to:*** | ***Copies to:*** |
|  Louis A. Bevilacqua, Esq. <br>**Bevilacqua PLLC**<br> 1050 Connecticut Avenue, NW, Suite 500<br>Washington, DC 20036<br>(202) 869-0888 | Joseph M. Lucosky, Esq.<br>**Lucosky Brookman LLP**<br> 111 Broadway, Suite 807<br>New York, NY 10006<br>(212) 417-8160 |

---

**Approximate date of commencement of proposed sale to public:** As soon as practicable after this Registration Statement becomes effective.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement the same offering. ☐

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933.

Emerging growth company ☒

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, 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 7(a)(2)(B) of the Securities Act. ☐

**The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.**

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#### EXPLANATORY NOTE
This registration statement contains two prospectuses, as set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Public Offering Prospectus.*** A prospectus to be used for the public offering of ordinary shares through the underwriter named on the cover page of this prospectus, which we refer to as Public Offering Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***The Resale Prospectus.*** A prospectus to be used for the resale by selling shareholders of 1,500,000 ordinary shares, which we refer to as the Resale Prospectus.

The Resale Prospectus is substantively identical to the Public Offering Prospectus, except for the following principal points:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• they contain different front and back covers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• they contain different Offering sections in the Prospectus Summary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• they contain different Use of Proceeds sections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Capitalization and Dilution sections are deleted from the Resale Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a Selling Shareholders section is included in the Resale Prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Underwriting section from the Public Offering Prospectus is deleted from the Resale Prospectus and a Plan of Distribution section is inserted in its place; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Legal Matters section in the Resale Prospectus deletes the reference to counsel for the underwriter.

The registrant has included in this registration statement a set of alternate pages after the back cover page of the Public Offering Prospectus, which we refer to as the Alternate Pages, to reflect the foregoing differences in the Resale Prospectus as compared to the Public Offering Prospectus. The Public Offering Prospectus will exclude the Alternate Pages and will be used for the public offering by the Registrant. The Resale Prospectus will be substantively identical to the Public Offering Prospectus except for the addition or substitution of the Alternate Pages and will be used for the resale offering by the selling shareholders.

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**The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.**

#### SUBJECT TO COMPLETION, DATED FEBRUARY 8, 2023

#### PRELIMINARY PROSPECTUS

#### Droneify Holdings Limited

#### 923,077 Ordinary Shares
This is the initial public offering of our ordinary shares. We are offering 923,077 ordinary shares, assuming an initial public offering price of $6.50 per share, which is the midpoint of the estimated range of the initial public offering price. We currently estimate that the initial public offering price will be between $6.00 and $7.00 per share. The actual number of shares we will offer will be determined based on the actual initial public offering price.

Currently, there is no public market for our ordinary shares. We have applied to list our ordinary shares on The Nasdaq Capital Market under the symbol "DRFY". We believe that upon the completion of this offering, we will meet the standards for listing, and the closing of this offering is contingent upon such listing.

We are an "emerging growth company," as that term is used in the Jumpstart Our Business Startups Act of 2012, and as such, have elected to comply with certain reduced public company reporting requirements for this prospectus and future filings. See "*Prospectus Summary — Implications of Being an Emerging Growth Company*."

**Investing in our ordinary shares involves a high degree of risk. Before buying any shares, you should carefully read the discussion of the material risks of investing in our ordinary shares under the heading "Risk Factors" beginning on page 12 of this prospectus.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

---

| | | |
|:---|:---|:---|
|  | **Per Share** | **Total** |
|  Initial public offering price | $6.500 | $6000000 |
|  Underwriting discounts and commissions<sup>(1)</sup> | $0.455 | $420000 |
|  Proceeds to us, before expenses<sup>(2)</sup> | $6.045 | $5580000 |

---

____________

(1) Does not include a non-accountable expense allowance equal to 1% of the gross proceeds of this offering payable to Boustead Securities, LLC, the representative of the underwriters. We have also agreed to issue warrants to the representative of the underwriters. See "*Underwriting*" for a complete description of the compensation arrangements.

(2) We estimate the total expenses payable by us, excluding the underwriting discount and non-accountable expense allowance, will be approximately $731,000.

We have granted the underwriters an option for a period of 45 days after the closing of this offering to purchase up to 15% of the total number of ordinary shares to be offered by us pursuant to this offering (excluding shares subject to this option), solely for the purpose of covering over-allotments, at the initial public offering price less the underwriting discounts and commissions.

The underwriters expect to deliver the shares against payment as set forth under "*Underwriting*" on or about , 2023.

BOUSTEAD SECURITIES, LLC

Prospectus dated , 2023

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[**Table of Contents**](#TOC001)

#### **TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
|  [Prospectus Summary](#T21) | 1 |
|  [Risk Factors](#T20) | 12 |
|  [Cautionary Statement Regarding Forward-Looking Statements](#T19) | 31 |
|  [Use of Proceeds](#T18) | 32 |
|  [Dividend Policy](#T17) | 33 |
|  [Capitalization](#T16) | 34 |
|  [Dilution](#T15) | 35 |
|  [Management's Discussion and Analysis of Financial Condition and Results of Operations](#T9901) | 37 |
|  [Business](#T14) | 48 |
|  [Management](#T13) | 58 |
|  [Principal Shareholders](#T12) | 66 |
|  [Related Party Transactions](#T11) | 67 |
|  [Description of Share Capital](#T10) | 68 |
|  [Shares Eligible for Future Sale](#T9) | 77 |
|  [Material Tax Considerations](#T8) | 79 |
|  [Enforceability of Civil Liabilities](#T7) | 86 |
|  [Underwriting](#T6) | 87 |
|  [Expenses Related to this Offering](#T5) | 91 |
|  [Legal Matters](#T4) | 92 |
|  [Experts](#T3) | 92 |
|  [Where You Can Find More Information](#T2) | 92 |
|  [Financial Statements](#T1) | F-1 |

---

**Through and including , 2023 (the 25<sup>th</sup> day after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.**

Neither we nor the underwriters have authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses prepared by or on behalf of us or to which we have referred you. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This prospectus is an offer to sell only the shares offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus is current only as of its date, regardless of the time of delivery of this prospectus or of any sale of our ordinary shares.

For investors outside of the United States: Neither we nor the underwriters have done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. You are required to inform yourself about, and to observe any restrictions relating to, this offering and the distribution of this prospectus outside of the United States.

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#### PROSPECTUS SUMMARY
*This summary highlights selected information contained elsewhere in this prospectus. This summary is not complete and does not contain all of the information that you should consider before deciding whether to invest in our ordinary shares. You should carefully read the entire prospectus, including the risks associated with an investment in our company discussed in the "Risk Factors" section of this prospectus, before making an investment decision. Some of the statements in this prospectus are forward*-looking *statements. See the section titled "Cautionary Statement Regarding Forward*-Looking *Statements."*

*In this prospectus, "we," "us," "our," "our company," and similar references refer to Droneify Holdings Limited and its consolidated subsidiaries.*

#### Our Company

#### Overview
We are a development stage technology company focused on designing, developing, and deploying drone-enabled solutions and technology for the purposes of capturing, analyzing, and reporting on data to assist customers in a variety of industries, allowing them to improve decision-making and reduce operational risks and costs. We offer leading-edge aerial intelligence solutions with an emphasis on automating complex, recurring operations that are required for compliance and growth.

We serve clients across a variety of industries, with a current emphasis on niche markets such as utilities, energy, construction, and infrastructure. We are actively developing an online-based drone operations, software, and hardware management system, with the goal of using this platform as the basis for a broader solution that integrates the collection, storage and analysis of data for end users within a platform-as-a-service, or PaaS, subscription model.

We have three main categories of business operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Drone Solutions.*** Our drone solutions division provides drone services, such as inspections, surveying, and marketing work to customers across a wide range of industries. The services are carried out by a network of drone pilots managed by us. Collected data is processed, analyzed, and delivered by us to our customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Data Analytics.*** Our drone analytics division will offer software tools for customers and drone market participants to source job opportunities, purchase hardware, analyze, manage, or store data, and more with software-as-a-service, or SaaS, features. The platform, called "Droneify", is still in the development stage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Drone Hardware.*** Our drone hardware division develops advanced drone hardware solutions for use in the military and heavy industry applications. This business segment is still in the development stage.

Our plan is to provide one platform with all the hardware, insurance, and software features needed to start, run, or grow a drone business. Through financial and insurance partners, we will offer comprehensive services for rent-to-own hardware, low monthly fee insurance, and software. This will provide anyone with a low-cost method of entering the drone market.

#### Our Corporate History and Structure
We were incorporated as a Cayman Islands exempted company on August 24, 2022. Our predecessor company, Droneify Ltd., or Droneify, was incorporated on March 20, 2015 in the Province of Ontario, Canada.

On September 23, 2022, we commenced a corporate restructuring pursuant to a share exchange agreement that we entered into with Droneify and its shareholders. Pursuant to the share exchange agreement, we have acquired 6,544,202 class A common shares of Droneify in exchange for which we issued 6,544,202 ordinary shares to the shareholders of Droneify. As a result of this restructuring, we own 84.15% of the issued and outstanding class A common shares of Droneify. One shareholder holds the remaining shares that have not yet been exchanged. Such shareholder has indicated that it will exchange its shares following the completion of this offering, at which time we would own 100% of Droneify. If such shareholder does not exchange its shares, Droneify would remain a majority-owned subsidiary rather than a wholly-owned subsidiary.

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In 2018, Droneify completed an internal reorganization transaction pursuant to which it incorporated 2659498 Ontario Ltd. as a wholly owned subsidiary and transferred its software to this entity on a taxable basis. The reorganization was completed to create a potential future Canadian tax benefit for participating Canadian shareholders by reducing income taxes on a future disposition of their shares.

We do not have any other subsidiaries.

#### Our Opportunity
According to Drone Industry Insights, a leading market research and analytics company for commercial drones, the global drone market was estimated at $20.9 billion in 2020 and is forecasted to grow from $26.3 billion in 2021 to $41.3 billion in 2026, or a compound annual growth rate, or CAGR, of 9.4%. It estimates that unit sales will grow from approximately 0.8 million in 2021 to almost 1.4 million in 2026, or a CAGR of 10.6%.

Drone applications are becoming more and more prevalent throughout all industries. Whether it is construction, energy, mining, transportation, or waste management, drones are often able to carry out tasks more safely and efficiently than people. According to Drone Industry Insights, in 2021 energy remained the industry with the highest adoption of drones, though cargo, courier services, intralogistics and warehousing have the highest CAGRs.

The most common drone applications are the ones making use of something almost every drone has: a built-in camera. Many industries such as energy and real estate make heavy use of drones for inspections while drones are used for mapping and surveying in several industries such as construction, transportation, agriculture and professional/scientific services, among others.

#### Our Solutions
We simplify the drone market into one powerful solution.

![](timage_002.jpg)

We currently generate revenue by providing in-field drone services — deploying commercially available drone platforms and software through our team of professional pilots and sensor operators. In addition to these existing services, we are targeting revenue generation from five additional product offerings centered around the development of the Droneify platform and our future analytical and reporting software, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• commission fees for the Droneify platform, whereby we will take commission fees from the gross value for any work that is transacted on the platform;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• subscription fees for the Droneify platform, whereby we will offer tiers of subscriptions in exchange for access to more features and reduced commission fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• training fees, offering multiple levels of drone pilot training programs related to both flight performance and data processing and analytics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales of drone hardware, offering world-leading hardware solutions from hardware manufacturers globally, through which we will act as distributor; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• subscriptions for future SaaS offerings, which will provide clients with our advanced analytical and reporting software and data management services for several industry verticals.

#### Drone Solutions
We deploy commercially available drone platforms and software through our team of professional pilots and sensor operators. In-field drone services are primarily focused on inspecting live or hard to reach assets and performing short-range aerial surveys within sectors such as oil and gas, power, utilities, construction, mining, infrastructure, and agriculture. We acquire a customer opportunity and assign the scope of work through service level agreements with professional pilots within the region where the work is required. We will then send the captured data for processing (3D model or map creation, inspection reporting, image editing) prior to client delivery. By this method, we have an efficient means of data collection not limited by physical presence and can grow our business more cost effectively.

#### Data Analytics
Our analytics software has been under development since October 2017 to provide AI-powered object detection and classification from photo and video data. The key features of the software include browser-based cloud-hosting, data management, and AI analytics capabilities independent of third-party software requirements. The software platform is being designed to allow customers to receive, visualize, analyze, and generate reports on large amounts of information being populated by our drone platforms, without having to overcome the currently cumbersome process of receiving and moving large datasets. Furthermore, the software platform is being developed to support a variety of applications, including job posting. The software platform will be made available to customers and pilots on a standalone basis or on a SaaS basis, whereby clients may post jobs and interact with our professional network directly to carry out work. We will capture fees on all transactions through the platform. We intend to launch the Droneify platform in the second quarter of 2023.

#### Drone Hardware
We own intellectual property related to our C$2.5 million (approximately US$1.9 million) development project of the DX-3 Vanguard, a rapidly deployable vertical takeoff and landing transition drone built for heavy industry and military applications. We have conducted all research and product development activities and intend to redevelop existing intellectual property into a small-scale, commercially viable platform for early adopters, and to integrate analytics and data management capabilities onboard the hardware.

We also plan to act as a distributor for world-leading hardware solutions from hardware manufacturers, although we have not yet entered into any agreements for the distribution of drone hardware.

#### Our Competitive Strengths
We believe that the following competitive strengths contribute to our success and differentiate us from our competitors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Advanced technology solutions.*** Our plan is to provide one platform with all the hardware, insurance, and software features needed to start, run, or grow a drone business. We believe that introduction of our combined hardware and software solution will create a full turnkey solution to pipeline operators, engineering firms, general contractors, government/defense agencies, and insurance companies for inspection, surveying, and mapping operations. At the same time, a SaaS product offering will allow us to generate revenue from customers who do not require a hardware solution, providing advanced analytical and reporting software. We believe that our platform is a major differentiator amongst the competition, who typically focus on one of hardware, software or service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Strong brand recognition.*** Since our founding in 2015, we have gained significant brand recognition in North America. In March 2018, we were ranked by Drone Industry Insights as one of the top 20 drone operators globally and the top drone operator in Canada for inspections, mapping and surveying.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***• Large pilot network.*** We have built a pilot network spanning across Canada, the United States, Australia, the United Kingdom, and Malaysia. As of June 30, 2022, this network included approximately 3,000 pilots.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***• Large geographic footprint.*** Our network of pilots, present in every province in Canada and over 40 states in the United States, allows us to have capabilities "at scale" without the costs typically associated with growing a business into new geographies.

#### Our Growth Strategies
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Focus on long***-term ***customers.*** We intend to focus on capturing long-term, recurring service contracts with firms across numerous market segments, building off existing ongoing strategic relationships. These relationships, which provide the ability to interface directly with end users, are expected to be critical building blocks for our long-term strategy. The ability to offer in-field drone services allows us to offer the whole value chain, from business problem to business solution via drone services, and in the future to amplify these solutions via continued hardware and software development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Geographic expansion.*** Leveraging our network pilots in North America, we believe that we are well positioned to provide oil and gas operators, engineering firms, general contractors, and insurance companies with various types of drone inspection and monitoring services (pipelines, refineries/plants, and offshore platforms), construction monitoring, surveying, mapping, and regulatory compliance scopes. Our network of pilots is expected to allow us to immediately service clients as we begin developing revenue generating client relationships in the United States, which will not only give us access to data streams that can be used to strengthen the development of our analytics software but also lay the foundation for anticipated future hardware deployments with those clients. We have a number of near-term business development opportunities of this nature that we are currently pursuing. Several key distribution relationships have been established in the past several years, further validating the platform and service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Rollout of Droneify platform.*** We believe that our existing business relationships will drive adoption of hardware and software once it becomes commercially available and facilitate the associated rollout of our Droneify SaaS platform. The introduction of our combined hardware and software solution would make available a robust and full turnkey solution to pipeline operators, engineering firms, general contractors, government/defense agencies, and insurance companies for inspection, surveying, and mapping operations. At the same time, a SaaS product offering will allow us to generate revenue from customers who do not require a hardware solution, providing advanced analytical and reporting software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Continued product development.*** The development and commercialization of a proprietary hardware offering and software platform, including our cloud-based, advanced AI-trained analytics software, is expected to lead to further opportunities both in terms of new applications within initial target markets as well as across new industry verticals.

#### Our Risks and Challenges
Our prospects should be considered in light of the risks, uncertainties, expenses and difficulties frequently encountered by similar companies. Our ability to realize our business objectives and execute our strategies is subject to risks and uncertainties, including, among others, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are an early-stage company with a limited operating history.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have incurred operating losses since our inception, and we may not be able to manage our businesses on a profitable basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The COVID-19 pandemic may cause a material adverse effect on our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our growth and financial health are subject to a number of economic risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We will need substantial additional funding and may be unable to raise capital when needed, which would force us to delay, curtail or eliminate one or more of our research and development programs or commercialization efforts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Successful technical development of our platform and hardware solutions does not guarantee successful commercialization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our software platform is at risk of unexpected technical failure due to the unavailability of a cellular connection or other technical issues with the software.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Product development is a long, expensive and uncertain process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we fail to protect our intellectual property rights, we could lose our ability to compete in the marketplace.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other companies may claim that we infringe their intellectual property, which could materially increase our costs and harm our ability to generate future revenue and profit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We face competition from other drone companies, many of which have substantially greater resources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If the drone markets do not experience significant growth, if we cannot expand our customer base or if our products and services do not achieve broad acceptance, then we may not be able to achieve our anticipated level of growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our major customers account for a significant portion of our revenue and the loss of any major customer could have a material adverse effect on our results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we are unable to manage the increasing complexity of our business or achieve or manage our expected growth, our business could be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we are unable to recruit and retain key management, technical and sales personnel, our business would be negatively affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Rapid technological changes may adversely affect the market acceptance of our products and services and could adversely affect our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our business is subject to seasonality, which causes our net revenue to fluctuate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Breaches of network or information technology security could have an adverse effect on our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our results could be adversely affected by natural disasters, public health crises, political crises, or other catastrophic events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Worldwide and domestic economic trends and financial market conditions, including an economic decline in the drone industry, may adversely affect our operating performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The operation of drone in urban environments may be subject to risks, such as accidental collisions and transmission interference, which may limit demand for our drone service in such environments and harm our business and operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For certain of the components included in our products there are a limited number of suppliers we can rely upon and if we are unable to obtain these components when needed we could experience delays in the manufacturing of our products and our financial results could be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Failure to obtain necessary regulatory approvals from Transport Canada or other governmental agencies, or limitations put on the use of drones in response to public privacy concerns, may prevent us from expanding the sales of our drone solutions to commercial and industrial customers in Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our business is subject to certain laws regarding data protection, privacy, and information security, as well as confidentiality obligations under various agreements, and our actual or perceived failure to comply with such obligations could damage our reputation, expose us to litigation risk and adversely affect our business and operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The ongoing conflict between Ukraine and Russia could adversely affect our business, consolidated financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The obligations associated with being a public company will require significant resources and management attention, and we will incur increased costs as a result of becoming a public company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There has been no public market for our ordinary shares prior to this offering, and an active market in which investors can resell their shares may not develop.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The market price of our ordinary shares may be highly volatile, and you could lose all or part of your investment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may not be able to maintain a listing of our ordinary shares on Nasdaq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We do not expect to declare or pay dividends in the foreseeable future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we are incorporated under Cayman Islands law.

In addition, we face other risks and uncertainties that may materially affect our business prospects, financial condition, and results of operations. You should consider the risks discussed in "*Risk Factors*" and elsewhere in this prospectus before investing in our ordinary shares.

#### Impact of Coronavirus Pandemic
In December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China. On March 11, 2020, the World Health Organization declared the outbreak a pandemic. On March 11, 2020, the federal government of Canada announced a C$1 billion (approximately US$777 million) package to help Canadians through the health crisis. To date, there have been a large number of temporary business closures, quarantines and a general reduction in consumer activity in Canada.

We are dependent on suppliers to provide us with the products and services that we sell. The pandemic has impacted and may continue to impact suppliers and manufacturers of certain products. As a result, we have faced and may continue to face delays or difficulty sourcing certain products and services, which could negatively affect the business and financial results. The cost to deliver such products and services may also increase as a result of increased compliance requirements, delivery times (social distancing) or needing to source alternative suppliers, which could adversely impact profitability and financial condition.

The spread of the virus in many countries continues to adversely impact global economic activity and has contributed to significant volatility and negative pressure in financial markets and supply chains. The pandemic has had, and could have a significantly greater, material adverse effect on the Canadian economy as a whole, as well as the local economy where we conduct our operations. The pandemic has resulted, and may continue to result for an extended period, in significant disruption of global financial markets, which may reduce our ability to access capital in the future, which could negatively affect our liquidity.

If the COVID-19 pandemic does not continue to slow and the spread of COVID-19 is not contained, our business operations, including those of our contract manufacturers and suppliers, could be further delayed or interrupted. We expect that government and health authorities may announce new or extend existing restrictions, which could require us to make further adjustments to our operations in order to comply with any such restrictions. We may also experience limitations in employee resources. In addition, our operations could be disrupted if any of our employees were suspected of having COVID-19, which could require quarantine of some or all such employees or closure of our facilities for disinfection. The duration of any business disruption cannot be reasonably estimated at this time but may materially affect our ability to operate our business and result in additional costs.

The extent to which the pandemic may impact our results will depend on future developments, which are highly uncertain and cannot be predicted as of the date of this prospectus, including the effectiveness of vaccines and other treatments for COVID-19, and other new information that may emerge concerning the severity of the pandemic and steps taken to contain the pandemic or treat its impact, among others. Nevertheless, the pandemic and the current financial, economic and capital markets environment, and future developments in the global supply chain and other areas present material uncertainty and risk with respect to our performance, financial condition, results of operations and cash flows. See also "*Risk Factors*" for more information.

#### Implications of Being an Emerging Growth Company
Upon the completion of this offering, we will qualify as an "emerging growth company" under the Jumpstart Our Business Act of 2012, as amended, or the JOBS Act. As a result, we will be permitted to, and intend to, rely on exemptions from certain disclosure requirements. These provisions include exemption from the auditor attestation requirement under Section 404 of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, in the assessment of the emerging growth company's internal control over financial reporting. In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in

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Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or 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 elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

We will remain an emerging growth company until the earliest of (i) the last day of the fiscal year during which we have total annual gross revenues of at least $1.235 billion; (ii) the last day of our fiscal year following the fifth anniversary of the completion of this offering; (iii) the date on which we have, during the preceding three year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which we are deemed to be a "large accelerated filer" under the Securities Exchange Act of 1934, as amended, or the Exchange Act, which could occur if the market value of our ordinary shares that are held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter. Once we cease to be an emerging growth company, we will not be entitled to the exemptions provided in the JOBS Act discussed above.

#### Implications of Being a Foreign Private Issuer
Once the registration statement of which this prospectus is a part is declared effective by the Securities and Exchange Commission, or the SEC, we will become subject to the information reporting requirements of the Exchange Act that are applicable to "foreign private issuers," and under those requirements we will file certain reports with the SEC. As a foreign private issuer, we will not be subject to the same requirements that are imposed upon U.S. domestic issuers by the SEC. Under the Exchange Act, we will be subject to reporting obligations that, in certain respects, are less detailed and less frequent than those of U.S. domestic reporting companies. For example, although we report our financial results on a quarterly basis, we will not be required to issue quarterly reports, proxy statements that comply with the requirements applicable to U.S. domestic reporting companies, or individual executive compensation information that is as detailed as that required of U.S. domestic reporting companies. We also will have four months after the end of each fiscal year to file our annual reports with the SEC and we will not be required to file current reports as frequently or promptly as U.S. domestic reporting companies. Furthermore, our officers, directors and principal shareholders will be exempt from the requirements to report transactions in our equity securities and from the short-swing profit liability provisions contained in Section 16 of the Exchange Act. As a foreign private issuer, we will also not be subject to the requirements of Regulation FD (Fair Disclosure) promulgated under the Exchange Act. In addition, as a foreign private issuer, we will be permitted to follow certain home country corporate governance practices instead of those otherwise required under the listing rules of The Nasdaq Stock Market, or Nasdaq, for domestic U.S. issuers. Although we do not currently intend to rely these home country exemptions, we may rely on some of these exemptions in the future. These exemptions and leniencies will reduce the frequency and scope of information and protections available to you in comparison to those applicable to a U.S. domestic reporting companies.

#### Corporate Information
Our corporate address is 103-482 South Service Road East, Oakville, ON Canada L6J 2X6. Our company email address is info@droneify.com.

Our registered office is located at c/o International Corporate Services Limited, Harbour Place, PO Box 472, 1103 South Church Street, Grand Cayman KY1-1106, Cayman Islands.

Our agent for service of process in the United States is Cogency Global Inc., located at 122 East 42<sup>nd</sup> Street, 18<sup>th</sup> Floor, New York, N.Y. 10168.

Our website can be found at *www.droneify.com*. The information contained on our website is not a part of this prospectus, nor is such content incorporated by reference herein, and should not be relied upon in determining whether to make an investment in our ordinary shares.

#### Notes on Prospectus Presentation
We are responsible for the disclosure in this prospectus. However, this prospectus includes industry data that we obtained from market research, industry publications and other publicly available information. We did not fund and are not otherwise affiliated with any of the sources cited in this prospectus. The information therein represents the most recently available data from the relevant sources and publications and we believe remains reliable. However, this

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data involves a number of assumptions and limitations regarding our industry which are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the section titled "*Risk Factors*." Forward-looking information obtained from these sources is also subject to the same qualifications and additional uncertainties regarding the other forward-looking statements in this prospectus.

We own or have rights to various trademarks, service marks and trade names that we use in connection with the operation of our businesses. This prospectus may also contain trademarks, service marks and trade names of third parties, which are the property of their respective owners. Our use or display of third parties' trademarks, service marks and trade names or products in this prospectus is not intended to, and does not imply a relationship with, or endorsement or sponsorship by us. Solely for convenience, the trademarks, service marks and trade names referred to in this prospectus may appear without the®, TM or SM symbols, but the omission of such references is 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 owner of these trademarks, service marks and trade names.

Our reporting currency is the U.S. dollar and our functional currency is the Canadian dollar. This prospectus contains translations of Canadian dollars into U.S. dollars at specific rates solely for the convenience of the reader. Unless otherwise noted, all translations from Canadian dollars into U.S. dollars in this prospectus were made at a rate of C$1.2871 per US$1.00, the noon buying rate as set forth in the H.10 statistical release of the U.S. Federal Reserve Board in effect as of June 30, 2022. On January 27, 2023, the noon buying rate for Canadian dollar was C$1.3314 per US$1.00. We make no representation that the Canadian dollar or U.S. dollar amounts referred to in this prospectus could have been or could be converted into U.S. dollars or Canadian dollar, as the case may be, at any particular rate or at all.

All references in the prospectus to "U.S. dollars," "dollars," "US$" and "$" are to the legal currency of the United States and all references to "C$" are to the legal currency of Canada.

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#### The Offering

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| | |
|:---|:---|
|  Shares offered: | 923,077 ordinary shares (or 1,061,539 ordinary shares if the underwriters exercise the over-allotment in full). |
|  Offering price: | We currently estimate that the initial public offering price will be between $6.00 and $7.00 per share. For purposes of this prospectus, the assumed initial public offering price per share is $6.50, the midpoint of the anticipated price range. The actual offering price per share will be as determined between the underwriters and us based on market conditions at the time of pricing and the actual number of shares we will offer will be determined based on the actual initial public offering price. Therefore, the assumed offering price used throughout this prospectus may not be indicative of the final offering price. |
|  Ordinary shares to be outstanding after this offering<sup>(1)</sup>: | 8,591,634 ordinary shares (or 8,730,096 ordinary shares if the underwriters exercise the over-allotment option in full), based on an assumed initial public offering price of $6.50 per share, which is the midpoint of the estimated range of the initial public offering price shown on the cover page of this prospectus. |
|  Over-allotment option: | We have granted to the underwriters a 45-day option to purchase from us up to an additional 15% of the ordinary shares sold in the offering (138,462 additional shares) at the initial public offering price, less the underwriting discounts and commissions. |
|  Representative's warrants: | We have agreed to issue to the representative of the underwriters (or its permitted assignees) warrants to purchase up to a total number of ordinary shares equal to 7% of the total number of shares sold in this offering at an exercise price equal to 125% of the initial public offering price of the ordinary shares sold in this offering (subject to adjustments). The representative's warrants will be exercisable at any time, and from time to time, in whole or in part, commencing from the closing of this offering and expiring on the fifth anniversary of the effective date of the registration statement of which this prospectus is a part. The representative's warrants will have a cashless exercise provision and will provide for immediate "piggyback" registration rights with respect to the registration of the shares underlying the warrants for a period of seven years from commencement of sales of this offering. The registration statement of which this prospectus forms a part also registers the representative's warrants and the ordinary shares issuable upon exercise of the representative's warrants. See the "*Underwriting*" section for more information. |
|  Use of proceeds: | We expect to receive net proceeds of approximately $4.8 million from this offering (or $5.6 million if the underwriters exercise the over-allotment option in full), based on an assumed initial public offering price of $6.50 per share, which is the midpoint of the estimated range of the initial public offering price shown on the cover page of this prospectus, after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. <br> We intend to use the net proceeds from this offering for product development, sales and marketing and working capital and general corporate purposes. See "*Use of Proceeds*." |

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| | |
|:---|:---|
|  Risk factors: | Investing in our ordinary shares involves a high degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully consider the information set forth in the "*Risk Factors*" section beginning on page 12. |
|  Lock-up: | We, and our officers, directors and holders of 5% or greater of our ordinary shares have agreed to be locked up for a period of twelve months from the date on which the trading of our ordinary shares commences. Holders of 1-4.99% of our ordinary have agreed to be locked up for a period of six months from the date on which the trading of our ordinary shares commences; provided that if the aggregate of such holders shares were to equal or exceed 20% of our issued and outstanding shares on a fully diluted basis prior to the completing of this offering, then their lock up period shall be for twelve months from the date of trading of our ordinary shares commences. Holders of less than 1% of our ordinary shares are not subject to any lock up; provided that if the aggregate of such holders shares were to equal or exceed 5% of our issued and outstanding shares on a fully diluted basis prior to the completing of this offering, then their lock up period shall be for six months from the date of trading of our ordinary shares commences. During the lock-up period, without the prior written consent of the underwriters, they shall not, directly or indirectly, (i) offer, pledge, assign, encumber, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, any ordinary shares or any securities convertible into or exercisable or exchangeable for ordinary shares, owned either of record or beneficially by any signatory of the lock-up agreement on the date of the prospectus or thereafter acquired; (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the ordinary shares or any securities convertible into or exercisable or exchangeable for ordinary shares, whether any such transaction described in clauses (i) or (ii) above is to be settled by delivery of ordinary shares or such other securities, in cash or otherwise, or publicly announce an intention to do any of the foregoing; and (iii) make any demand for or exercise any right with respect to, the registration of any ordinary shares or any security convertible into or exercisable or exchangeable for ordinary shares. See "*Underwriting*" for more information. |
|  Trading market and symbol: | We have applied to list our ordinary shares on The Nasdaq Capital Market under the symbol "DRFY". The closing of this offering is contingent upon such listing. |

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____________

(1) The number of ordinary shares outstanding immediately following this offering is based on 7,668,557 ordinary shares outstanding as of February 7, 2023 and excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 472,944 ordinary shares issuable upon the exercise of outstanding options at a weighted average exercise price of C$1.56 (approximately US$1.21) per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 500,000 ordinary shares that are reserved for future issuance under our equity incentive plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 63,700 ordinary shares issuable upon the exercise of outstanding warrants at an exercise price of $7.50; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• up to 74,308 ordinary shares issuable upon exercise of the representative's warrants issued in connection with this offering.

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#### Summary Consolidated Financial Information
The following summary historical financial information should be read in conjunction with our consolidated financial statements and related notes included elsewhere in the prospectus and the information contained in "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" below.

The following summary consolidated financial data as of December 31, 2021 and 2020 and for the years then ended have been derived from our audited consolidated financial statements included elsewhere in this prospectus. We derived our summary consolidated financial data as of June 30, 2022 and for the six months ended June 30, 2022 and 2021 from our unaudited consolidated financial statements included elsewhere in this prospectus.

All financial statements included in this prospectus are prepared and presented in accordance with generally accepted accounting principles in the United States, or U.S. GAAP. The summary financial information is only a summary and should be read in conjunction with the historical financial statements and related notes contained elsewhere herein. The financial statements contained elsewhere fully represent our financial condition and operations; however, they are not indicative of our future performance.

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| | | | | |
|:---|:---|:---|:---|:---|
|  **Statements of Operations Data** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
|  **Statements of Operations Data** | **2022** | **2021** | **2021** | **2020** |
|  | (unaudited) | (unaudited) |  |  |
|  Revenue | $118048 | $46964 | $704553 | $432263 |
|  Cost of revenue | 62329 | 43434 | 587177 | 382423 |
|  Gross profit | 55719 | 3530 | 117376 | 49840 |
|  Total operating expenses | 67429 | 214538 | 356499 | 569766 |
|  Total other income (expense) | 30867 | 129 | 33763 | (235252) |
|  Net income (loss) | 19157 | (210879) | (205360) | (755178) |
|  Less net income (loss) attributable to noncontrolling interests | 4205 | (46288) | (45077) | (165762) |
|  Net income (loss) attributable to shareholders | $14952 | $(164591) | $(160283) | $(589416) |
|  Basic and diluted income (loss) per share | $0.00 | $(0.04) | $(0.05) | $(0.18) |

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| | | | |
|:---|:---|:---|:---|
|  **Balance Sheet Data** | **As of<br>June 30,<br>2022** | **As of<br>December 31,<br>2021** | **As of<br>December 31,<br>2020** |
|  | (unaudited) |  |  |
|  Cash | $37608 | $34599 | $98312 |
|  Current assets | 133755 | 380448 | 132969 |
|  Total assets | 162947 | 424331 | 204694 |
|  Current liabilities | 552991 | 897220 | 1017155 |
|  Total liabilities | 552991 | 897220 | 1017155 |
|  Shareholders' deficit | (390044) | (472889) | (812461) |
|  Total liabilities and shareholders' deficit | 162947 | 424331 | 204694 |

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#### RISK FACTORS
*An investment in our ordinary shares involves a high degree of risk. You should carefully consider the following risk factors, together with the other information contained in this prospectus, before purchasing our ordinary shares. We have listed below (not necessarily in order of importance or probability of occurrence) what we believe to be the most significant risk factors applicable to us, but they do not constitute all of the risks that may be applicable to us. Any of the following factors could harm our business, financial condition, results of operations or prospects, and could result in a partial or complete loss of your investment. Some statements in this prospectus, including statements in the following risk factors, constitute forward*-looking *statements. Please refer to the section titled "Cautionary Statement Regarding Forward*-Looking *Statements."*

#### Risks Related to Our Business and Industry

#### We are an early-stage company with a limited operating history.
Founded in 2015, we have a limited history upon which you can evaluate our business and prospects. Our prospects must be considered in light of the risks encountered by companies in the early stages of development in highly competitive markets, particularly the markets for drone products and services. You should consider the frequency with which early-stage businesses encounter unforeseen expenses, difficulties, complications, delays and other adverse factors. These risks are described in more detail below.

#### We have incurred operating losses since our inception, and we may not be able to manage our businesses on a profitable basis.
We have incurred operating losses since inception and have relied on cash on hand, sales of securities, external bank lines of credit, and issuance of third-party and related party debt to support our operations. For the six months ended June 30, 2022 and 2021, we incurred operating losses of $11,710 and $211,008, respectively. We cannot assure you that we will achieve profitably or that we will have adequate working capital to meet our obligations as they become due, especially given that we will incur additional expenses relating to becoming a public reporting company. Management believes that our success will depend on our ability to successfully commercialize and market our products and services. We cannot assure you that we will obtain or maintain profitability for any period of time or that investors will not lose their entire investment.

#### The COVID-19 pandemic may cause a material adverse effect on our business.
The COVID-19 pandemic continues to rapidly evolve. At this time, there continues to be significant volatility and uncertainty relating to the full extent to which the COVID-19 pandemic and the various responses to it will impact our business, operations and financial results.

We are dependent on suppliers to provide us with the products and services that we sell. The pandemic has impacted and may continue to impact suppliers and manufacturers of certain products. As a result, we have faced and may continue to face delays or difficulty sourcing certain products and services, which could negatively affect the business and financial results. The cost to deliver such products and services may also increase as a result of increased compliance requirements, delivery times (social distancing) or needing to source alternative suppliers, which could adversely impact profitability and financial condition.

The spread of the virus in many countries continues to adversely impact global economic activity and has contributed to significant volatility and negative pressure in financial markets and supply chains. The pandemic has had, and could have a significantly greater, material adverse effect on the Canadian economy as a whole, as well as the local economy where we conduct our operations. The pandemic has resulted, and may continue to result for an extended period, in significant disruption of global financial markets, which may reduce our ability to access capital in the future, which could negatively affect our liquidity.

If the COVID-19 pandemic does not continue to slow and the spread of COVID-19 is not contained, our business operations, including those of our contract manufacturers and suppliers, could be further delayed or interrupted. We expect that government and health authorities may announce new or extend existing restrictions, which could require us to make further adjustments to our operations in order to comply with any such restrictions. We may also experience limitations in employee resources. In addition, our operations could be disrupted if any of our employees

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were suspected of having COVID-19, which could require quarantine of some or all such employees or closure of our facilities for disinfection. The duration of any business disruption cannot be reasonably estimated at this time but may materially affect our ability to operate our business and result in additional costs.

The extent to which the COVID-19 pandemic may impact our results will depend on future developments, which are highly uncertain and cannot be predicted as of the date of this prospectus, including the effectiveness of vaccines and other treatments for COVID-19, and other new information that may emerge concerning the severity of the pandemic and steps taken to contain the pandemic or treat its impact, among others. Nevertheless, the pandemic and the current financial, economic and capital markets environment, and future developments in the global supply chain and other areas present material uncertainty and risk with respect to our performance, financial condition, results of operations and cash flows.

To the extent the COVID-19 pandemic adversely affects our business and financial results, it may also have the effect of heightening many of the other risks described in this "*Risk Factors*" section.

#### Our growth and financial health are subject to a number of economic risks.
The financial markets in the United States have experienced substantial uncertainty during recent years, particularly following the COVID-19 outbreak. This uncertainty has included, among other things, extreme volatility in securities prices, reduced liquidity and credit availability, rating downgrades of certain investments and declining values with respect to others. If capital and credit markets continue to experience uncertainty and available funds remain limited, we may not be able to obtain debt or equity financing or to refinance our existing indebtedness on favorable terms or at all, which could affect our strategic operations and our financial performance and force modifications to our operations. These conditions currently have not precluded us from accessing credit markets or financing our operations, but there can be no assurance that financial markets and confidence in major economies will not deteriorate.

In addition, we are vulnerable to changes in market preferences or other market changes, such as general economic conditions, recession and fears of recession, interest rates, tax rates and policies, and inflation. The U.S. is currently experiencing unusually high rates of inflation, and we may experience a compression in our margins as a result. The U.S. and global economies have in the past, and will in the future, experience recessionary periods and periods of economic instability. During such periods, our existing and potential customers may choose not to expend the amounts that we anticipate based on our expectations with respect to the addressable market for the services we offer. There could also be a number of other effects from adverse general business and economic conditions on our business, including insolvency of any of our third-party suppliers or contractors, decreased market confidence, decreased interest in communications solutions, decreased discretionary spending and reduced customer demand for the services we offer, any of which could have a material adverse effect on our business, financial condition and results of operations.

***We will need substantial additional funding and may be unable to raise capital when needed, which would force us to delay, curtail or eliminate one or more of our research and development programs or commercialization efforts.***

Our operations have consumed substantial amounts of cash since inception. We expect to continue to spend substantial amounts on product development. We will require additional funds to support continued research and development activities, as well as the costs of commercializing, marketing and selling any new products resulting from those research and development activities. We estimate that we will need additional capital of approximately $15,000,000 to execute our business plan over the next three years. We have based this estimate, however, on assumptions that may prove to be wrong, and we could spend available financial resources much faster than we currently expect.

Until such time, if ever, that we can generate a sufficient amount of product revenue and achieve profitability, we expect to seek to finance future cash needs through equity or debt financings or corporate collaboration and strategic arrangements. We currently have no other commitments or agreements relating to any of these types of transactions and cannot be certain that additional funding will be available on acceptable terms, or at all. If we are unable to raise additional capital, we may have to delay, curtail or eliminate commercializing, marketing and selling one or more of our products.

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#### Successful technical development of our platform and hardware solutions does not guarantee successful commercialization.
We are still in the development stage of our "Droneify" platform and advanced drone hardware solutions, we may still fail to achieve commercial success for a number of reasons, including, among others, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to obtain the required regulatory approvals for their use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• rapid evolvement of the product due to new technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prohibitive production costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• competing products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lack of product innovation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unsuccessful distribution and marketing through our sales channels;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insufficient cooperation from our supply and distribution partners; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• product development that does not align with or meet customer needs.

Our success in the market for the solutions we develop will depend largely on our ability to properly demonstrate their capabilities. Upon demonstration, our solutions may not have the capabilities they were designed to have or that we believed they would have. Furthermore, even if we do successfully demonstrate our products' capabilities, potential customers may be more comfortable doing business with a competitor, or may not feel there is a significant need for the products we develop. As a result, significant revenue from our current and new product investments may not be achieved for a number of years, if at all.

***Our software platform is at risk of unexpected technical failure due to the unavailability of a cellular connection or other technical issues with the software.***

Our software platform is still in development stage and is pre-revenue. However, our platform may experience technical difficulties that prevent customers from collecting and processing data in real-time. The most common technical problem our customers may experience is the unavailability of a cellular connection, which is necessary in order to wirelessly process the collected data through the cloud. While this will not affect the performance of our platform or the collection of the data, it could potentially prevent customers and drone market participants from being able to access their completed data analysis in real-time.

#### Product development is a long, expensive and uncertain process.
The product development process, such as for the DX-3 Vanguard, is a costly, complex and time-consuming process, and investments in product development often involve a long wait until a return, if any, can be achieved on such investment. We might face difficulties or delays in the development process that will result in our inability to timely offer products that satisfy the market, which might allow competing products to emerge during the development and certification process. We anticipate making significant investments in research and development relating to our products and services, but such investments are inherently speculative and require substantial capital expenditures. Any unforeseen technical obstacles and challenges that we encounter in the research and development process could result in delays in or the abandonment of product commercialization, may substantially increase development costs, and may negatively affect our results of operations.

#### If we fail to protect our intellectual property rights, we could lose our ability to compete in the marketplace.
Our intellectual property and proprietary rights are important to our ability to remain competitive and successful in the development of our products and our business. Patent protection can be limited and not all intellectual property can be patented. We expect to rely on a combination of patent, trademark, copyright, and trade secret laws as well as confidentiality agreements and procedures, non-competition agreements and other contractual provisions to protect our intellectual property, other proprietary rights and our brand. As we currently do not have any granted patent, trademark or copyright protections, we must rely on trade secrets and nondisclosure agreements, which provide

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limited protections. Our intellectual property rights may be challenged, invalidated or circumvented by third parties. We may not be able to prevent the unauthorized disclosure or use of our technical knowledge or other trade secrets by employees or competitors.

Furthermore, our competitors may independently develop technologies and products that are substantially equivalent or superior to our technologies and products, which could result in decreased revenues. Litigation may be necessary to enforce our intellectual property rights, which could result in substantial costs to us and substantial diversion of management attention. If we do not adequately protect our intellectual property, our competitors could use it to enhance their products. Our inability to adequately protect our intellectual property rights could adversely affect our business and financial condition, and the value of our brand and other intangible assets.

***Other companies may claim that we infringe their intellectual property, which could materially increase our costs and harm our ability to generate future revenue and profit.***

We do not believe that our technologies infringe on the proprietary rights of any third party, but claims of infringement are becoming increasingly common and third parties may assert infringement claims against us. It may be difficult or impossible to identify, prior to receipt of notice from a third party, the trade secrets, patent position or other intellectual property rights of a third party, either in the United States or in foreign jurisdictions. Any such assertion may result in litigation or may require us to obtain a license for the intellectual property rights of third parties. If we are required to obtain licenses to use any third party technology, we would have to pay royalties, which may significantly reduce any profit on our products. In addition, any such litigation could be expensive and disruptive to our ability to generate revenue or enter into new market opportunities. If any of our products were found to infringe other parties' proprietary rights and we are unable to come to terms regarding a license with such parties, we may be forced to modify our products to make them non-infringing or to cease production of such products altogether.

#### The nature of our business involves significant risks and uncertainties that may not be covered by insurance or indemnification.
The drone industry is evolving rapidly. We may develop and sell products and services in circumstances where insurance or indemnification may not be available; for example, in connection with the collection and analysis of various types of information. In addition, our products and services raise questions with respect to issues of civil liberties, intellectual property, trespass, conversion and similar concepts, which may create legal issues. Indemnification to cover potential claims or liabilities resulting from the failure of any technologies that we develop or deploy may be available in certain circumstances but not in others. Currently, the drone industry lacks a formative insurance market. We may not be able to maintain insurance to protect against all operational risks and uncertainties that our customers confront. Substantial claims resulting from an accident, product failure, or personal injury or property liability arising from our products and services in excess of any indemnity or insurance coverage (or for which indemnity or insurance coverage is not available or is not obtained) could harm our financial condition, cash flows and operating results. Any accident, even if fully covered or insured, could negatively affect our reputation among our customers and the public, and make it more difficult for us to compete effectively.

#### We face competition from other drone companies, many of which have substantially greater resources.
The drone industry is evolving rapidly and is highly competitive. Our competitors include other providers of drone hardware, software and analytics and data management, such as DroneDeploy Inc., PrecisionHawk, AeroVironment, Inc. (AVAV), AgEagle Arial Systems Inc. (UAVS), DJI and Insitu Inc. Some of these firms have substantially greater financial, management, research and marketing resources than we have. Our drone business also faces competition from smaller businesses.

Our competitors may be able to provide customers with different or greater capabilities or benefits than we can provide in areas such as technical qualifications, past contract performance, geographic presence, price and the availability of key professional personnel, including those with security clearances. Furthermore, many of our competitors may be able to utilize their substantially greater resources and economies of scale to develop competing products and technologies, manufacture in high volumes more efficiently, divert sales away from us by winning broader contracts or hire away our employees by offering more lucrative compensation packages. Small business competitors may be able to offer more cost competitive solutions, due to their lower overhead costs, and take advantage of small business incentive and set-aside programs for which we are ineligible. The market for drone business is expanding,

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and competition intensifying as additional competitors enter the market and current competitors expand their product lines. In order to secure contracts successfully when competing with larger, well-financed companies, we may be forced to agree to contractual terms that provide for lower aggregate payments to us over the life of the contract, which could adversely affect our margins. In addition, larger diversified competitors serving as prime contractors may be able to supply underlying products and services from affiliated entities, which would prevent us from competing for subcontracting opportunities on these contracts. Our failure to compete effectively with respect to any of these or other factors could have a material adverse effect on our business, prospects, financial condition or operating results.

***If the drone markets do not experience significant growth, if we cannot expand our customer base or if our products and services do not achieve broad acceptance, then we may not be able to achieve our anticipated level of growth.***

We cannot accurately predict the future growth rates or sizes of the markets for our products and services. Demand for our products and services may not increase, or may decrease, either generally or in specific markets, for particular types of products and services or during particular time periods. We believe the drone market is nascent and we cannot assure you that our continued efforts to further increase our sales to customers will be successful. The expansion of the drone markets in general, and the market for our products and services in particular, depends on a number of factors, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• customer satisfaction with these types of systems as solutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost, performance and reliability of our products and products offered by our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• customer perceptions regarding the effectiveness and value of these types of systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limitations on our ability to market our products and services outside of Canada due to Canadian government regulations or regulations in foreign jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obtaining timely regulatory approvals, including, with respect to any of our unmanned systems, access to airspace and wireless spectrum; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• marketing efforts and publicity regarding these types of systems and services.

Our products and services may not adequately address market requirements and may not continue to gain market acceptance. If these types of systems generally, or our products and services specifically, do not gain wide market acceptance, then we may not be able to achieve our anticipated level of growth and our revenue and results of operations would decline.

***Our major customers account for a significant portion of our revenue and the loss of any major customer could have a material adverse effect on our results of operations.***

For the year ended December 31, 2021, one customer, Aerodyne Measure Inc., or Aerodyne, accounted for approximately 80% of our revenue, and for the year ended December 31, 2020, one customer, C&G Mining Company Ltd., accounted for approximately 58% of our revenue. For the six months ended June 30, 2022, three customers, Golder Associates Ltd., Slate Asset Management, Inc. and Distrikt, accounted for approximately 38%, 11% and 10%, respectively, of our revenue, and for the six months ended June 30, 2021, two customers, Stantec and Distrikt, accounted for approximately 25% and 22%, respectively, of our revenue. We do not have a long-term contract with any major customer that requires the customer to purchase our services, and the loss of any major customer could have a material adverse effect on our results of operations. In addition, our results of operations and ability to service our debt obligations would be impacted negatively to the extent that any major customer is unable to make payments to us or does not make timely payments on outstanding accounts receivables.

***If we are unable to manage the increasing complexity of our business or achieve or manage our expected growth, our business could be adversely affected.***

The complexity of our business has increased significantly over the last several years which will continue to place a strain on our management and our administrative, operational and financial infrastructure. We anticipate further growth of headcount and facilities will be required to address expansion in our product and service offerings and the geographic scope of our customer base. However, if we are unsuccessful in our efforts, our business could decline. Our success will depend in part upon the ability of our senior management to manage our increased complexity and

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expected growth effectively. To do so, we must continue to hire, train, manage and integrate a significant number of qualified personnel. If our new employees perform poorly, or if we are unsuccessful in hiring, training, managing and integrating these new employees, or retaining these or our existing employees, then our business may experience declines.

To support our expected growth, we must continue to improve our operational, financial and management information systems. If we are unable to manage our growth while maintaining our quality of service, or if new systems that we implement to assist in managing our growth do not produce the expected benefits, then our business, prospects, financial condition or operating results could be adversely affected.

#### If we are unable to recruit and retain key management, technical and sales personnel, our business would be negatively affected.
For our business to be successful, we need to attract and retain highly qualified technical, management and sales personnel. Our future success is substantially dependent on the continued service of our senior management team, and in particular, Adam Sax, our Chief Executive Officer, and Tom Hanson, our Chief Operating Officer. The failure to recruit additional key personnel when needed, with specific qualifications, on acceptable terms and with an ability to maintain positive relationships with our partners, might impede our ability to continue to develop, commercialize and sell our products and services. To the extent the demand for skilled personnel exceeds supply, we could experience higher labor, recruiting and training costs in order to attract and retain such employees. The loss of any members of our management team may also delay or impair achievement of our business objectives and result in business disruptions due to the time needed for their replacements to be recruited and become familiar with our business. We face competition for qualified personnel from other companies with significantly more resources available to them and thus may not be able to attract the level of personnel needed for our business to succeed.

#### If our proposed marketing efforts are unsuccessful, we may not earn enough revenue to become profitable.
Our future growth depends on our gaining market acceptance and regular production orders for our products and services. We plan to bring our technology and services to market via the following methods: targeting heavy industry and military/defense clients who require enterprise hardware capabilities and sophisticated services and analytics software; direct sales; leveraging the Droneify platform to develop superior software and AI, fueling the SaaS platform; and digital marketing campaigns both paid (pay per click, display ads) and organic (search engine optimization, blogs). We have launched a three year sales and marketing strategy focused on building a sales and distribution channels with key partners and customers, with a view towards eventually leveraging this channel to upsell customers on hardware and software offerings.

In the event we are not successful in obtaining a significant volume of orders for our products and services, we will face significant obstacles in expanding our business. We cannot give any assurance that our marketing efforts will be successful. If they are not, revenue may not be sufficient to cover our fixed costs and we may not become profitable.

#### We face a significant risk of failure because we cannot accurately forecast our future revenues and operating results.
The rapidly changing nature of the markets in which we compete makes it difficult to accurately forecast our revenues and operating results. Furthermore, we expect our revenues and operating results to fluctuate in the future due to a number of factors, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing of sales of our products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unexpected delays in introducing new products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased expenses, whether related to sales and marketing, or administration; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs related to possible acquisitions of businesses.

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***Rapid technological changes may adversely affect the market acceptance of our products and services and could adversely affect our business, financial condition and results of operations.***

The drone market in which we compete is subject to technological changes, introduction of new products, change in customer demands and evolving industry standards. Our future success will depend upon our ability to keep pace with technological developments and to timely address the increasingly sophisticated needs of our customers by supporting existing and new technologies and by developing and introducing enhancements to our current products and new products. We may not be successful in developing and marketing enhancements to our products that will respond to technological change, evolving industry standards or customer requirements. In addition, we may experience difficulties internally or in conjunction with key vendors and partners that could delay or prevent the successful development, introduction and sale of such enhancements and such enhancements may not adequately meet the requirements of the market and may not achieve any significant degree of market acceptance. If release dates of our new products or enhancements are delayed or, if when released, they fail to achieve market acceptance, our business, operating results and financial condition may be adversely affected.

#### Our business is subject to seasonality, which causes our net revenue to fluctuate.
Our business is subject to seasonality as sales can be seasonal within certain geographies. For example, drone marketing work is more common during the summer months in temperate climates, and less common in the winter months where snow may be present. Sales tend to correspondingly increase during these quarters and to significantly decrease in the fourth quarter of our fiscal year. We expect this seasonality to continue in future periods and, as a result, our operating results are likely to vary significantly from quarter to quarter.

#### We may pursue additional strategic transactions in the future, which could be difficult to implement, disrupt our business or change our business profile significantly.
We intend to consider potential strategic transactions, which could involve acquisitions of businesses or assets, joint ventures or investments in businesses, products or technologies that expand, complement or otherwise relate to our current or future business. As of the date of this prospectus, we have not entered into an any agreements for such acquisitions. We may also consider, from time to time, opportunities to engage in joint ventures or other business collaborations with third parties to address particular market segments. Should our relationships fail to materialize into significant agreements or should we fail to work efficiently with these companies, we may lose sales and marketing opportunities and our business, results of operations and financial condition could be adversely affected.

These activities, if successful, create risks such as, among others: (i) the need to integrate and manage the businesses and products acquired with our own business and products; (ii) additional demands on our resources, systems, procedures and controls; (iii) disruption of our ongoing business; and (iv) diversion of management's attention from other business concerns. Moreover, these transactions could involve: (a) substantial investment of funds or financings by issuance of debt or equity securities; (b) substantial investment with respect to technology transfers and operational integration; and (c) the acquisition or disposition of product lines or businesses. Also, such activities could result in one-time charges and expenses and have the potential to either dilute the interests of our existing shareholders or result in the issuance of, or assumption of debt. Such acquisitions, investments, joint ventures or other business collaborations may involve significant commitments of financial and other resources. Any such activities may not be successful in generating revenue, income or other returns, and any resources we committed to such activities will not be available to us for other purposes. Moreover, if we are unable to access the capital markets on acceptable terms or at all, we may not be able to consummate acquisitions, or may have to do so on the basis of a less than optimal capital structure. Our inability to take advantage of growth opportunities or address risks associated with acquisitions or investments in businesses may negatively affect our operating results.

Additionally, any impairment of goodwill or other intangible assets acquired in an acquisition or in an investment, or charges to earnings associated with any acquisition or investment activity, may materially reduce our earnings. Future acquisitions or joint ventures may not result in their anticipated benefits and we may not be able to properly integrate acquired products, technologies or businesses with our existing products and operations or successfully combine personnel and cultures. Failure to do so could deprive us of the intended benefits of those acquisitions.

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#### Breaches of network or information technology security could have an adverse effect on our business.
Cyber-attacks or other breaches of network or IT security may cause equipment failures or disrupt our systems and operations. We may be subject to attempts to breach the security of our networks and IT infrastructure through cyber-attack, malware, computer viruses and other means of unauthorized access. The potential liabilities associated with these events could exceed the insurance coverage we maintain, if any. Our inability to operate our facilities as a result of such events, even for a limited period of time, may result in significant expenses or loss of market share to other competitors in the defense electronics market. In addition, a failure to protect the privacy of customer and employee confidential data against breaches of network or IT security could result in damage to our reputation. To date, we have not been subject to cyber-attacks or other cyber incidents which, individually or in the aggregate, resulted in a material adverse effect on our business, operating results and financial condition.

#### Our results could be adversely affected by natural disasters, public health crises, political crises, or other catastrophic events.
Natural disasters, such as hurricanes, tornadoes, floods, earthquakes, and other adverse weather and climate conditions; unforeseen public health crises, such as pandemics and epidemics; political crises, such as terrorist attacks, war, labor unrest, and other political instability; or other catastrophic events, such as disasters occurring at our manufacturing facilities, could disrupt our operations or the operations of one or more of our vendors. In particular, these types of events could impact our supply chain from or to the impacted region and could impact our ability to operate. In addition, these types of events could negatively impact consumer spending in the impacted regions. To the extent any of these events occur, our operations and financial results could be adversely affected.

#### Worldwide and domestic economic trends and financial market conditions, including an economic decline in the drone industry, may adversely affect our operating performance.
Our long-term goal is to develop and commercialize of a proprietary hardware offering and software platform, including Droneify's cloud-based, advanced AI-trained analytics software, to lead to further opportunities both in terms of new applications within initial target markets as well as across new industry verticals. We intend to distribute in a number of countries and derive revenues from both inside and outside Canada. We expect our business will be subject to global competition and may be adversely affected by factors in Canada, the United States and other countries that are beyond our control, such as disruptions in financial markets, economic downturns in the form of either contained or widespread recessionary conditions, elevated unemployment levels, sluggish or uneven recovery, in specific countries or regions, or in the agricultural industry; social, political or labor conditions in specific countries or regions; natural and other disasters affecting our operations or our customers and suppliers; or adverse changes in the availability and cost of capital, interest rates, tax rates, or regulations in the jurisdictions in which we operate. Unfavorable global or regional economic conditions, including an economic decline in the agricultural industry, could adversely impact our business, liquidity, financial condition and results of operations.

***The operation of drone in urban environments may be subject to risks, such as accidental collisions and transmission interference, which may limit demand for our drone service in such environments and harm our business and operating results.***

Urban environments may present certain challenges to the operators of our drone service. Drones may accidentally collide with other aircraft, persons or property, which could result in injury, death or property damage and significantly damage the reputation of and support for drones in general. As the usage of drones has increased, particularly by military customers, the danger of such collisions has increased. Furthermore, the incorporation of our new technology into our drones has increased the number of vehicles which can operate simultaneously in a given area and with this increase has come an increase in the risk of accidental collision. In addition, obstructions to effective transmissions in urban environments, such as large buildings, may limit the ability of the operator to utilize the aircraft for its intended purpose. The risks or limitations of operating drones in urban environments may limit their value in such environments, which may limit demand for our drone services and consequently materially harm our business and operating results.

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***For certain of the components included in our products there are a limited number of suppliers we can rely upon and if we are unable to obtain these components when needed we could experience delays in the manufacturing of our products and our financial results could be adversely affected.***

We acquire most of the components for the manufacture of our products from suppliers and subcontractors. We have not entered into any agreements or arrangements with any potential suppliers or subcontractors. Suppliers of some of the components may require us to place orders with significant lead-times to assure supply in accordance with its manufacturing requirements. Our present lack of working capital may cause us to delay the placement of such orders and may result in delays in supply. Delays in supply may significantly hurt our ability to fulfill our contractual obligations and may significantly hurt our business and result of operations. In addition, we may not be able to continue to obtain such components from these suppliers on satisfactory commercial terms. Disruptions of our manufacturing operations would ensue if we were required to obtain components from alternative sources, which would have an adverse effect on our business, results of operations and financial condition.

***Failure to obtain necessary regulatory approvals from Transport Canada or other governmental agencies, or limitations put on the use of drones in response to public privacy concerns, may prevent us from expanding the sales of our drone solutions to commercial and industrial customers in Canada.***

Transport Canada is responsible for establishing, managing, and developing safety and security standards and regulations for civil aviation in Canada, and includes unmanned civil aviation. Civil operations include law enforcement, scientific research, or use by private sector companies for commercial purposes. The Canadian Aviation Regulations govern civil aviation safety and security in Canada, and by extension govern operation of drones in Canada to an acceptable level of safety.

Transport Canada continues to be a leader in the development of regulations for the commercial use of drones, and continues to move forward rapidly with its regulatory development. It is expected that new regulations permitting low-risk beyond visual line-of-sight, or BVLOS, operations will be published by Transport Canada in the fourth quarter of 2022. These rules will permit routine operations of more complex flights (including heavier aircraft, BVLOS operations, etc.) without requiring specific requirements, eliminating the need to request specific approvals for such operations. This will reduce the overall regulatory risk for such operations.

Although failure to obtain necessary regulatory approvals from Transport Canada or other governmental agencies, including the granting of certain permits, or limitations put on the use of drones in response to public safety concerns, may prevent us from testing or operating its aircraft and/or expanding its sales which could have an adverse impact on our business, prospects, results of operations and financial condition, it is anticipated that the advancement of Transport Canada's new regulations will mitigate these risks.

***Failure to obtain necessary regulatory approvals from the FAA or other governmental agencies, or limitations put on the use of drones in response to public privacy concerns, may prevent us from expanding the sales of our drone solutions to commercial and industrial customers in the United States.***

The regulation of unmanned aerial systems, or UAS, for commercial use in the United States is undergoing substantial change and the ultimate treatment is uncertain. On February 14, 2012, the FAA Modernization and Reform Act of 2012 was enacted, establishing various deadlines for the Federal Aviation Administration, or the FAA, to allow expanded use of small UAS for both public and commercial applications. On June 21, 2016, the FAA released its final rules regarding the routine use of certain small UAS (under 55 pounds) in the U.S. National Airspace System pursuant to the act, or the Part 107 Rules. The Part 107 Rules, which became effective in August 2016, provided safety regulations for small UAS conducting non-recreational operations and contain various limitations and restrictions for such operations, including a requirement that operators keep UAS within visual-line-of-sight and prohibiting flights over unprotected people on the ground who are not directly participating in the operation of the UAS. On December 28, 2020, the FAA announced final rules requiring remote identification of drones and allowing operators of small drones to fly over people and at night under certain conditions. We cannot assure you that any final rules enacted in furtherance of the FAA's announced proposals will result in the expanded use of our drones and drone solutions by commercial and industrial entities. In addition, there exists public concern regarding the privacy implications of U.S. commercial use of small UAS. This concern has included calls to develop explicit written policies and procedures establishing usage limitations. We cannot assure you that the response from regulatory agencies, customers and privacy advocates to these concerns will not delay or restrict the adoption of small UAS by the commercial use markets.

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On March 10, 2022, the FAA's Unmanned Aircraft Systems Beyond Visual Line of Sight Aviation Rulemaking Committee, or the ARC, issued its final report to the FAA. In terms of key recommendations, the ARC recommended that the FAA set an acceptable level of risk for UAS that is consistent across all types of operations being performed. The ARC envisioned that this approach would allow the FAA to adopt a common and consistent set of regulations and guidance, giving operators the flexibility to meet the acceptable level of risk through qualitative or quantitative methods, or a hybrid approach. Next, the ARC recommended a series of modifications to the right of way rules in low altitude shielded areas (within 100' of a structure or critical infrastructure as defined in 42 U.S.C. §5195c) and in low altitude non-shielded areas (below 400') to accommodate uncrewed aircraft, or UA, operations. Specifically, the ARC recommended several amendments to right of way rules to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• allow automatic means for see-and-avoid responsibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• give UA the right of way in shielded areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• give UA the right of way over crewed aircraft that are not equipped with an automatic dependent surveillance-broadcast, or ADS-B, transmitter or a traffic awareness beacon system, or TABS, in non-shielded low altitude areas; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• give crewed aircraft that are equipped with an ADS-B transmitter or TABS (and broadcasting their position) right of way in non-shielded low altitude areas.

The ARC also recommended an approach to operator qualification that would extend Part 107, Remote Pilot Certificate with Small UAS Rating, to cover topics associated with extended visual line of sight and shielded UAS operations. The recommendation creates a new remote pilot certificate rating to cover BVLOS operations beyond the scope of the extended Part 107 rating. The examination for both ratings would consist of a knowledge test on relevant areas, while practical training and qualifications would be tied to new remote air carrier and remote operating certificates, which would be required for most commercial operations. The qualifications would be based on specific UA systems, use cases, and operational restrictions.

In addition, the ARC recommended that the FAA establish a new BVLOS rule which includes a process for qualification of UA and UAS, applicable to aircraft up to 800,000 ft-lb of kinetic energy.

Finally, the ARC recommended that the FAA adopt a non-mandatory regulatory scheme for third party services to be used in support of UAS BVLOS operations. In addition to its recommendations, the ARC identified certain issues relevant to UAS BVLOS operations that are beyond this ARC's scope, but which are identified as considerations for future ARCs to address. Similarly, the ARC also identified several issues that are beyond the FAA's scope of authority. However, these recommendations are in the interest of providing a full framework of actions and policies to promote safe and widespread adoption of UAS BVLOS activities.

***Our business is subject to certain laws regarding data protection, privacy, and information security, as well as confidentiality obligations under various agreements, and our actual or perceived failure to comply with such obligations could damage our reputation, expose us to litigation risk and adversely affect our business and operating results.***

In connection with our business, we receive, collect, process and retain certain sensitive and confidential customer information. As a result, we are subject to increasingly rigorous laws regarding privacy and data protection. Personal privacy, data protection and information security are significant issues in Canada, the United States and the other jurisdictions where we plan to offer our products and services. The regulatory framework for privacy and security issues worldwide is rapidly evolving and is likely to remain uncertain for the foreseeable future. Our handling of data is subject to a variety of laws and regulations, including regulation by various government agencies, such as, in the United States, the United States Federal Trade Commission, and various state, local and foreign bodies and agencies, and in Canada, the Office of the Privacy Commissioner of Canada and various provincial bodies and agencies. We also execute confidentiality agreements with various parties under which we are required to protect their confidential information.

The Canadian federal and various state and foreign governments have adopted or proposed limitations on the collection, distribution, use and storage of personal information of individuals, including end-customers and employees. In Canada, the Office of the Privacy Commissioner of Canada and many state attorneys general are applying federal and state consumer protection laws to the online collection, use and dissemination of data. Additionally, many foreign countries and governmental bodies, and other jurisdictions in which we operate or conduct our business, have laws and regulations concerning the collection and use of personal information obtained from their residents or by businesses

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operating within their jurisdiction. These laws and regulations often are more restrictive than those in Canada. Such laws and regulations may require companies to implement new privacy and security policies, permit individuals to access, correct and delete personal information stored or maintained by such companies, inform individuals of security breaches that affect their personal information, and, in some cases, obtain individuals' consent to use personal information for certain purposes.

We also expect that there will continue to be new proposed laws, regulations and industry standards concerning privacy, data protection and information security in Canada, the United States, the European Union and other jurisdictions, and we cannot yet determine the impact of such future laws, regulations and standards may have on our business. Additionally, we expect that existing laws, regulations and standards may be interpreted differently in the future. There remains significant uncertainty surrounding the regulatory framework for the future of personal data transfers with regulations such as the recently adopted General Data Protection Regulation, or GDPR, which imposes more stringent E.U. data protection requirements, provides an enforcement authority, and imposes large penalties for noncompliance. Future laws, regulations, standards and other obligations, including the adoption of the GDPR, as well as changes in the interpretation of existing laws, regulations, standards and other obligations could impair our ability to collect, use or disclose information relating to individuals, which could decrease demand for our products, require us to restrict our business operations, increase our costs and impair our ability to maintain and grow our customer base and increase our revenue.

Although we are working to comply with those laws and regulations, industry standards, contractual obligations and other legal obligations that apply to us, such laws, regulations, standards and obligations are evolving and may be modified, interpreted and applied in an inconsistent manner from one jurisdiction to another, and may conflict with one another, other requirements or legal obligations, our practices or the features of our products. As such, we cannot assure ongoing compliance with all such laws or regulations, industry standards, contractual obligations and other legal obligations, and our efforts to do so may cause us to incur significant costs or require changes to our business practices, which could adversely affect our business and operating results. Any failure or perceived failure by us to comply with laws or regulations, industry standards, contractual obligations or other legal obligations, or any actual or suspected security incident, whether or not resulting in unauthorized access to, or acquisition, release or transfer of personal information or other data, may result in governmental enforcement actions and prosecutions, private litigation, fines and penalties or adverse publicity and could cause our customers to lose trust in us, which could have an adverse effect on our reputation and business. Any inability to adequately address privacy and security concerns, even if unfounded, or comply with applicable laws, regulations, policies, industry standards, contractual obligations or other legal obligations could result in additional cost and liability to us, damage our reputation, inhibit sales, and adversely affect our business and operating results.

***We may engage in transactions with businesses that may be affiliated with our officers, directors or significant shareholders, and which may involve actual or potential conflicts of interest.***

We may decide to make investments in one or more businesses affiliated with our officers, directors or significant shareholders. Such investment opportunities may compete with other opportunities for our investment dollars. Although we are not specifically focusing on, or targeting, any particular transaction with any affiliates or affiliated entities, we would pursue such a transaction if we determined that such an affiliated investment was attractive from a risk-adjusted return perspective, and such transaction were approved by a majority of our independent and disinterested directors. Any such activity would involve actual or potential conflicts of interest. Although we are confident that we can navigate these conflicts consistent with best practices and applicable law, the existence or appearance of such conflicts of interest could make our publicly traded securities less attractive and thereby reduce their trading prices.

#### The ongoing conflict between Ukraine and Russia could adversely affect our business, consolidated financial condition, and results of operations.
Russia's recent military actions against Ukraine have led to an unprecedented expansion of export restrictions and sanctions imposed by the United States, the European Union, the United Kingdom, and numerous other countries against Russia and Belarus. In addition, Russian authorities have imposed significant currency control measures, other sanctions, and imposed other economic and financial restrictions. The situation is rapidly evolving, and further sanctions and export restrictions could negatively impact the global economy and financial markets and could adversely affect our business, consolidated financial condition, and results of operations.

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The conflict may result in an increased likelihood of cyber-attacks that could directly or indirectly impact our operations. Any attempts by cyber attackers to disrupt our services or systems, or those of our vendors, suppliers, or customers, if successful, could harm our business both reputationally and financially. Measures to remediate such cyber-attacks may be costly and could have a material adverse effect on our business, financial condition and results of operations. To date, we have not experienced any material disruptions to our infrastructure, supplies, technology systems, or networks resulting from the situation in Ukraine.

We cannot predict the progress, outcome, or impact of the conflict in Ukraine, Russia, or Belarus as the conflict, and any resulting government reactions are beyond our control. We are actively monitoring the conflict in Ukraine to assess its impact on our business, as well as on our vendors, suppliers, customers, and other parties with whom we do business.

***The obligations associated with being a public company will require significant resources and management attention, and we will incur increased costs as a result of becoming a public company.***

As a public company, we will face increased legal, accounting, administrative and other costs and expenses that we have not incurred as a private company, and we expect to incur additional costs related to operating as a public company. After the completion of this offering, we will be subject to the reporting requirements of the Exchange Act, which requires that we file annual and other reports with respect to our business and financial condition, as well as the rules and regulations implemented by the SEC, the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Public Company Accounting Oversight Board, and the listing requirements of Nasdaq (if our ordinary shares are approved for listing), each of which imposes additional reporting and other obligations on public companies. As a public company, we will be required to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• prepare and file annual and other reports in compliance with the federal securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expand the roles and duties of our board of directors and committees thereof and management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• hire additional financial and accounting personnel and other experienced accounting and finance staff with the expertise to address complex accounting matters applicable to public companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• institute more comprehensive financial reporting and disclosure compliance procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• involve and retain, to a greater degree, outside counsel and accountants to assist us with the activities listed above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• build and maintain an investor relations function;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establish new internal policies, including those relating to trading in our securities and disclosure controls and procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• comply with the initial listing and maintenance requirements of Nasdaq; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• comply with the Sarbanes-Oxley Act.

We expect these rules and regulations, and any future changes in laws, regulations and standards relating to corporate governance and public disclosure, which have created uncertainty for public companies, to increase legal and financial compliance costs and make some activities more time consuming and costly. These laws, regulations and standards are subject to varying interpretations, in many cases, due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. Our investment in compliance with existing and evolving regulatory requirements will result in increased administrative expenses and a diversion of management's time and attention from revenue-generating activities to compliance activities, which could have a material adverse effect on our business, financial condition and results of operations.

We also expect that being a public company will make it more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These increased costs may require us to divert a significant amount of money that we could otherwise use to expand our business and achieve our strategic objectives.

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***We may not complete our analysis of our internal control over financial reporting in a timely manner, or these internal controls may not be determined to be effective.***

We will be required, pursuant to Section 404 of the Sarbanes-Oxley Act, to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting in the second annual report we file with the SEC. This assessment will need to include disclosure of any material weaknesses identified by our management in our internal control over financial reporting. However, our auditors will not be required to formally attest to the effectiveness of our internal control over financial reporting pursuant to Section 404 until we are no longer a non-accelerated filer or no longer an emerging growth company if we take advantage of the exemptions available to us through the JOBS Act.

We are in the very early stages of the costly and challenging process of compiling the system and process documentation necessary to perform the evaluation needed to comply with Section 404. In this regard, we will need to continue to dedicate internal resources, engage outside consultants and adopt a detailed work plan to assess and document the adequacy of internal control over financial reporting, continue steps to improve control processes as appropriate, validate through testing that controls are functioning as documented and implement a continuous reporting and improvement process for internal control over financial reporting. As we transition to the requirements of reporting as a public company, we may need to add additional finance staff. We may not be able to remediate any future material weaknesses, or to complete our evaluation, testing and any required remediation in a timely fashion. During the evaluation and testing process, if we identify one or more material weaknesses in our internal control over financial reporting, we will be unable to assert that our internal controls are effective. If we are unable to assert that our internal control over financial reporting is effective, or if our auditors are unable to express an opinion on the effectiveness of our internal controls when they are required to issue such opinion, investors could lose confidence in the accuracy and completeness of our financial reports, which could harm our share price.

#### Risks Related to This Offering and Ownership of Our Ordinary shares
***There has been no public market for our ordinary shares prior to this offering, and an active market in which investors can resell their shares may not develop.***

Prior to this offering, there has been no public market for our ordinary shares. We have applied to list our ordinary shares on The Nasdaq Capital Market under the symbol "DRFY". The closing of this offering is contingent upon such listing.

Even if our ordinary shares are approved for listing, a liquid public market for our ordinary shares may not develop. The initial public offering price for our ordinary shares has been determined by negotiation between us and the underwriters based upon several factors, including prevailing market conditions, our historical performance, estimates of our business potential and earnings prospects, and the market valuations of similar companies. The price at which the ordinary shares are traded after this offering may decline below the initial public offering price, meaning that you may experience a decrease in the value of your ordinary shares regardless of our operating performance or prospects.

#### The market price of our ordinary shares may be highly volatile, and you could lose all or part of your investment.
The market for our ordinary shares may be characterized by significant price volatility when compared to the shares of larger, more established companies that have large public floats, and we expect that our share price will be more volatile than the shares of such larger, more established companies for the indefinite future. The stock market in general has recently been highly volatile. Furthermore, there have been recent instances of extreme stock price run-ups followed by rapid price declines and stock price volatility following a number of recent initial public offerings, particularly among companies with relatively smaller public floats. We may also experience such volatility, including stock run-ups, upon completion of this offering, which may be unrelated to our actual or expected operating performance and financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of our ordinary shares.

The market price of our ordinary shares is likely to be volatile due to a number of factors. First, as noted above, our ordinary shares are likely to be more sporadically and thinly traded compared to the shares of such larger, more established companies. The price for our ordinary shares could, for example, decline precipitously in the event that a large number of shares is sold on the market without commensurate demand. Secondly, we are a speculative or "risky" investment due to our limited profits to date. As a consequence of this enhanced risk, more risk-adverse investors

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may, under the fear of losing all or most of their investment in the event of negative news or lack of progress, be more inclined to sell their shares on the market more quickly and at greater discounts than would be the case with the shares of a larger, more established company that has a large public float. Many of these factors are beyond our control and may decrease the market price of our ordinary shares regardless of our operating performance. The market price of our ordinary shares could also be subject to wide fluctuations in response to a broad and diverse range of factors, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or anticipated variations in our operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases in market interest rates that lead investors of our ordinary shares to demand a higher investment return;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in earnings estimates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in market valuations of similar companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions or announcements by our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse market reaction to any increased indebtedness we may incur in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additions or departures of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions by shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• speculation in the media, online forums, or investment community; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our intentions and ability to list our ordinary shares on Nasdaq and our subsequent ability to maintain such listing.

The public offering price of our ordinary shares has been determined by negotiations between us and the underwriters based upon many factors and may not be indicative of prices that will prevail following the closing of this offering. Volatility in the market price of our ordinary shares may prevent investors from being able to sell their ordinary shares at or above the initial public offering price. As a result, you may suffer a loss on your investment.

#### We may not be able to maintain a listing of our ordinary shares on Nasdaq.
If our ordinary shares are listed on Nasdaq, we must meet certain financial and liquidity criteria to maintain such listing. If we violate Nasdaq's listing requirements, our ordinary shares may be delisted. If we fail to meet any of Nasdaq's listing standards, our ordinary shares may be delisted. In addition, our board of directors may determine that the cost of maintaining our listing on a national securities exchange outweighs the benefits of such listing. A delisting of our ordinary shares may materially impair our shareholders' ability to buy and sell our ordinary shares and could have an adverse effect on the market price of, and the efficiency of the trading market for, our ordinary shares. The delisting of our ordinary shares could significantly impair our ability to raise capital and the value of your investment.

***We have considerable discretion as to the use of the net proceeds from this offering and we may use these proceeds in ways with which you may not agree.***

We intend to the proceeds from this offering for product development, sales and marketing and working capital and general corporate purposes. However, we have considerable discretion in the application of the proceeds. You will not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately. You must rely on the judgment of our management regarding the application of the net proceeds of this offering. The net proceeds may be used for corporate or other purposes with which you do not agree or that do not improve our profitability or increase our share price. The net proceeds from this offering may also be placed in investments that do not produce income or that lose value. Please see "*Use of Proceeds*" below for more information.

#### You will experience immediate and substantial dilution as a result of this offering.
As of June 30, 2022, our pro forma net tangible book value was approximately $321,738, or approximately $0.04 per share. Since the effective price per share of our ordinary shares being offered in this offering is substantially higher than the net tangible book value per share, you will suffer substantial dilution with respect to the net tangible

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book value of the ordinary shares you purchase in this offering. Based on the assumed initial public offering price of $6.50 per share being sold in this offering, which is the midpoint of the estimated range of the initial public offering price shown on the cover page of this prospectus, and our net tangible book value per share as of June 30, 2022, if you purchase shares in this offering, you will suffer immediate and substantial dilution of $5.91 per share (or $5.82 per share if the underwriters exercise the over-allotment option in full) with respect to the net tangible book value of the ordinary shares. See the section titled "*Dilution*" for a more detailed discussion of the dilution you will incur if you purchase shares in this offering.

#### We do not expect to declare or pay dividends in the foreseeable future.
We do not expect to declare or pay dividends in the foreseeable future, as we anticipate that we will invest future earnings in the development and growth of our business. Therefore, holders of our ordinary shares will not receive any return on their investment unless they sell their securities, and holders may be unable to sell their securities on favorable terms or at all.

***If securities industry analysts do not publish research reports on us, or publish unfavorable reports on us, then the market price and market trading volume of our ordinary shares could be negatively affected.***

Any trading market for our ordinary shares may be influenced in part by any research reports that securities industry analysts publish about us. We do not currently have and may never obtain research coverage by securities industry analysts. If no securities industry analysts commence coverage of us, the market price and market trading volume of our ordinary shares could be negatively affected. In the event we are covered by analysts, and one or more of such analysts downgrade our shares, or otherwise reports on us unfavorably, or discontinues coverage of us, the market price and market trading volume of our ordinary shares could be negatively affected.

***Future issuances of our ordinary shares or securities convertible into, or exercisable or exchangeable for, our ordinary shares, or the expiration of lock-up agreements that restrict the issuance of new ordinary shares or the trading of outstanding ordinary shares, could cause the market price of our ordinary shares to decline and would result in the dilution of your holdings.***

Future issuances of our ordinary shares or securities convertible into, or exercisable or exchangeable for, our ordinary shares, or the expiration of lock-up agreements that restrict the issuance of new ordinary shares or the trading of outstanding ordinary shares, could cause the market price of our ordinary shares to decline. We cannot predict the effect, if any, of future issuances of our securities, or the future expirations of lock-up agreements, on the price of our ordinary shares. In all events, future issuances of our ordinary shares would result in the dilution of your holdings. In addition, the perception that new issuances of our securities could occur, or the perception that locked-up parties will sell their securities when the lock-ups expire, could adversely affect the market price of our ordinary shares. In connection with this offering, we and our officers, directors and holders of 5% or greater of our ordinary shares have agreed to be locked up for a period of twelve months from the date on which the trading of our ordinary shares commences. Holders of 1-4.99% of our ordinary have agreed to be locked up for a period of six months from the date on which the trading of our ordinary shares commences; provided that if the aggregate of such holders shares were to equal or exceed 20% of our issued and outstanding shares on a fully diluted basis prior to the completing of this offering, then their lock up period shall be for twelve months from the date of trading of our ordinary shares commences. Holders of less than 1% of our ordinary shares are not subject to any lock up; provided that if the aggregate of such holders shares were to equal or exceed 5% of our issued and outstanding shares on a fully diluted basis prior to the completing of this offering, then their lock up period shall be for six months from the date of trading of our ordinary shares commences. During the lock-up period, without the prior written consent of the underwriters, they shall not, directly or indirectly, (i) offer, pledge, assign, encumber, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, any ordinary shares or any securities convertible into or exercisable or exchangeable for ordinary shares, owned either of record or beneficially by any signatory of the lock-up agreement on the date of the prospectus or thereafter acquired; (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the ordinary shares or any securities convertible into or exercisable or exchangeable for ordinary shares, whether any such transaction described in clauses (i) or (ii) above is to be settled by delivery of ordinary shares or such other securities, in cash or otherwise, or publicly announce an intention to do any of the foregoing; and (iii) make any demand for or exercise any right with respect to, the registration of any ordinary shares or any security convertible into or exercisable or exchangeable for ordinary shares.

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See "*Underwriting*" for more information. In addition to any adverse effects that may arise upon the expiration of these lock-up agreements, the lock-up provisions in these agreements may be waived, at any time and without notice. If the restrictions under the lock-up agreements are waived, our ordinary shares may become available for resale, subject to applicable law, including without notice, which could reduce the market price for our ordinary shares.

***Future issuances of debt securities, which would rank senior to our ordinary shares upon our bankruptcy or liquidation, and future issuances of preferred shares, which could rank senior to our ordinary shares for the purposes of dividends and liquidating distributions, may adversely affect the level of return you may be able to achieve from an investment in our ordinary shares.***

In the future, we may attempt to increase our capital resources by offering debt securities. Upon bankruptcy or liquidation, holders of our debt securities, and lenders with respect to other borrowings we may make, would receive distributions of our available assets prior to any distributions being made to holders of our ordinary shares. Moreover, if we issue preferred shares, the holders of such preferred shares could be entitled to preferences over holders of ordinary shares in respect of the payment of dividends and the payment of liquidating distributions. Because our decision to issue debt or preferred shares in any future offering, or borrow money from lenders, will depend in part on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of any such future offerings or borrowings. Holders of our ordinary shares must bear the risk that any future offerings we conduct or borrowings we make may adversely affect the level of return, if any, they may be able to achieve from an investment in our ordinary shares.

#### If our ordinary shares become subject to the penny stock rules, it would become more difficult to trade our shares.
The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or authorized for quotation on certain automated quotation systems, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. If we do not retain a listing on Nasdaq or another national securities exchange and if the price of our ordinary shares is less than $5.00, our ordinary shares could be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information. In addition, the penny stock rules require that before effecting any transaction in a penny stock not otherwise exempt from those rules, a broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive (i) the purchaser's written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks; and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our ordinary shares, and therefore shareholders may have difficulty selling their shares.

***You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we are incorporated under Cayman Islands law.***

We are an exempted company incorporated under the laws of the Cayman Islands. As a result, it may be difficult for investors to effect service of process within the United States upon our directors or officers.

Our corporate affairs are governed by our amended and restated memorandum and articles of association, the Companies Act (2022 Revision) of the Cayman Islands (as may be amended form time time) and the common law of the Cayman Islands. The rights of our shareholders to take action against our directors, actions by our minority shareholders and the fiduciary duties of our directors under Cayman Islands law are to a large extent governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands as well as from the common law of England and other Commonwealth countries, the decisions of whose courts are of persuasive authority, but are not binding, on a court in the Cayman Islands. The rights of our shareholders and the fiduciary duties of our directors under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedent in some jurisdictions in the United States. In particular, the Cayman Islands has a different body of securities laws than the United States. Some U.S. states, such as Delaware, may have more fully developed and judicially interpreted bodies of corporate law than the Cayman Islands. In addition, Cayman Islands companies may not have standing to initiate a shareholder derivative action in a federal court of the United States.

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Shareholders of Cayman Islands exempted companies have no general rights under Cayman Islands law to inspect corporate records or to obtain copies of lists of shareholders of these companies. Our directors have discretion under our amended and restated memorandum and articles of association to determine whether or not, and under what conditions, our corporate records may be inspected by our shareholders, but are not obliged to make them available to our shareholders. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder resolution or to solicit proxies from other shareholders in connection with a proxy contest.

As a result of all of the above, our public shareholders may have more difficulty in protecting their interests in the face of actions taken by our management, members of our board of directors or our controlling shareholders than they would as public shareholders of a company incorporated in the United States. For a discussion of significant differences between the provisions of the Companies Act (2022 Revision) of the Cayman Islands and the laws applicable to companies incorporated in the United States and their shareholders. See "*Description of Share Capital — Differences in Corporate Law*."

#### Certain judgments obtained against us by our shareholders may not be enforceable.
We are a company incorporated under the laws of the Cayman Islands. We conduct our operations outside the United States and substantially all of our assets are located outside the United States. In addition, a majority of our directors and executive officers are nationals or residents of jurisdictions other than the United States and all or a substantial portion of their assets are located outside the United States. As a result, it may be difficult or impossible for you to bring an action against us or against them in the United States in the event that you believe that your rights have been infringed under the U.S. federal securities laws or otherwise. Even if you are successful in bringing an action of this kind, the laws of the Cayman Islands, Canada or other relevant jurisdiction may render you unable to enforce a judgment against our assets or the assets of our directors and officers. For more information regarding the relevant laws of the Cayman Islands and Canada, see "*Enforceability of Civil Liabilities*."

***We are a foreign private issuer within the meaning of the rules under the Exchange Act, and as such we are exempt from certain provisions applicable to U.S. domestic public companies.***

Because we qualify as a foreign private issuer under the Exchange Act, we are exempt from certain provisions of the securities rules and regulations in the United States that are applicable to U.S. domestic issuers, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q or current reports on Form 8-K;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under the Exchange Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiders who profit from trades made in a short period of time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the selective disclosure rules by issuers of material nonpublic information under Regulation FD.

Upon the completion of this offering, we will be required to file an annual report on Form 20-F within four months of the end of each fiscal year. In addition, we intend to publish our results on a quarterly basis as press releases and material events will also be furnished to the SEC on Form 6-K. However, the information we are required to file with or furnish to the SEC will be less extensive and less timely compared to that required to be filed with the SEC by U.S. domestic issuers. As a result, you may not be afforded the same protections or information that would be made available to you were you investing in a U.S. domestic issuer.

***We will be subject to ongoing public reporting requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies and our shareholders could receive less information than they might expect to receive from more mature public companies.***

Upon the completion of this offering, we will qualify as an "emerging growth company" under the JOBS Act. As a result, we will be permitted to, and intend to, rely on exemptions from certain disclosure requirements. These provisions include exemption from the auditor attestation requirement under Section 404 of the Sarbanes-Oxley Act of 2002 in the assessment of the emerging growth company's internal control over financial reporting. In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended

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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 elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

We will remain an emerging growth company until the earliest of (i) the last day of the fiscal year during which we have total annual gross revenues of at least $1.235 billion; (ii) the last day of our fiscal year following the fifth anniversary of the completion of this offering; (iii) the date on which we have, during the preceding three year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which we are deemed to be a "large accelerated filer" under the Exchange Act, which could occur if the market value of our ordinary shares that are held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter. Once we cease to be an emerging growth company, we will not be entitled to the exemptions provided in the JOBS Act discussed above.

Because we will be subject to ongoing public reporting requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies, our shareholders could receive less information than they might expect to receive from more mature public companies. We cannot predict if investors will find our ordinary shares less attractive if we elect to rely on these exemptions, or if taking advantage of these exemptions would result in less active trading or more volatility in the price of our ordinary shares.

***As a foreign private issuer, we are permitted to rely on exemptions from certain Nasdaq corporate governance standards applicable to domestic U.S. issuers. This may afford less protection to holders of our shares.***

We are exempted from certain corporate governance requirements of Nasdaq by virtue of being a foreign private issuer. As a foreign private issuer, we are permitted to follow the governance practices of our home country in lieu of certain corporate governance requirements of Nasdaq. As result, the standards applicable to us are considerably different than the standards applied to domestic U.S. issuers. For instance, we are not required to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• have a majority of the board be independent (although all of the members of the audit committee must be independent under the Exchange Act);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• have a compensation committee and a nominating committee to be comprised solely of "independent directors"; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• hold an annual meeting of shareholders no later than one year after the end of our fiscal year.

Although we do not currently intend to rely these "home country" exemptions, we may rely on some of these exemptions in the future. As a result, our shareholders may not be provided with the benefits of certain corporate governance requirements of Nasdaq.

***Our amended and restated memorandum and articles of association contain anti-takeover provisions that could discourage a third party from acquiring us, which could limit our shareholders' opportunity to sell their shares at a premium.***

Our amended and restated memorandum and articles of association contain provisions to limit the ability of others to acquire control of our company or cause us to engage in change-of-control transactions. These provisions could have the effect of depriving our shareholders of an opportunity to sell their shares at a premium over prevailing market prices by discouraging third parties from seeking to obtain control of our company in a tender offer or similar transaction. For example, our board of directors has the authority, without further action by our shareholders, to issue preferred shares in one or more series and to fix their designations, powers, preferences, privileges, and relative participating, optional or special rights and the qualifications, limitations or restrictions, including dividend rights, conversion rights, voting rights, terms of redemption and liquidation preferences, any or all of which may be greater than the rights associated with our ordinary shares. Preferred shares could be issued quickly with terms calculated to delay or prevent a change in control of our company or make removal of management more difficult. If our board of directors decides to issue preferred shares, the price of our ordinary shares may fall and the voting and other rights of the holders of our ordinary

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shares may be materially and adversely affected. In addition, our amended and restated memorandum and articles of association contain other provisions that could limit the ability of third parties to acquire control of our company or cause us to engage in a transaction resulting in a change of control.

***There is a risk that we will be a passive foreign investment company for any taxable year, which could result in adverse U.S. federal income tax consequences to U.S. investors in our shares.***

In general, a non-U.S. corporation is a passive foreign investment company, or PFIC, for any taxable year in which (i) 75% or more of its gross income consists of passive income or (ii) 50% or more of the average quarterly value of its assets consists of assets that produce, or are held for the production of, passive income. For purposes of the above calculations, a non-U.S. corporation that owns at least 25% by value of the shares of another corporation is treated as if it held its proportionate share of the assets of the other corporation and received directly its proportionate share of the income of the other corporation. Passive income generally includes dividends, interest, rents, royalties and certain gains. Cash is a passive asset for these purposes.

Based on the expected composition of our income and assets and the value of our assets, including goodwill, which is based on the expected price of the shares in this offering, we do not expect to be a PFIC for our current taxable year. However, the proper application of the PFIC rules to a company with a business such as ours is not entirely clear. Because the proper characterization of certain components of our income and assets is not entirely clear, because we will hold a substantial amount of cash following this offering, and because our PFIC status for any taxable year will depend on the composition of our income and assets and the value of our assets from time to time (which may be determined, in part, by reference to the market price of our shares, which could be volatile), there can be no assurance that we will not be a PFIC for our current taxable year or any future taxable year.

If we were a PFIC for any taxable year during which a U.S. investor holds shares, certain adverse U.S. federal income tax consequences could apply to such U.S. investor. See "*Material Tax Considerations — U.S. Federal Income Taxation Considerations — Passive Foreign Investment Company Consequences*" for additional information.

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#### CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to us. All statements other than statements of historical facts are forward-looking statements. The forward-looking statements are contained principally in, but not limited to, the sections entitled "*Prospectus Summary*," "*Risk Factors*," "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and "*Business*." These statements relate to future events or to our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements include, but are not limited to, statements about:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our goals and strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our future business development, financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our projected revenues, profits, earnings and other estimated financial information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to secure additional funding necessary for the expansion of our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the growth of and competition trends in our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding demand for, and market acceptance of, our products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain strong relationships with our customers and suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectation regarding the use of proceeds from this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in general economic and business conditions in the markets in which we operate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• relevant government policies and regulations relating to our industry.

In some cases, you can identify forward-looking statements by terms such as "may," "could," "will," "should," "would," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "project" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under the heading "*Risk Factors*" and elsewhere in this prospectus. If one or more of these risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this prospectus, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

You should read this prospectus and the documents that we reference in this prospectus and have filed as exhibits to the registration statement of which this prospectus forms a part with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

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#### USE OF PROCEEDS
After deducting the estimated underwriters' commissions and offering expenses payable by us, we expect to receive net proceeds of approximately $4,789,000 from this offering (or approximately $5,617,000 if the underwriters exercise the over-allotment option in full), based on an assumed initial public offering price of $6.50 per share, which is the midpoint of the estimated range of the initial public offering price shown on the cover page of this prospectus.

We intend to use the net proceeds from this offering for product development, sales and marketing and working capital and general corporate purposes. The following table sets forth a breakdown of our estimated use of our net proceeds as we currently expect to use them.

---

| | | |
|:---|:---|:---|
|  | **Amount <br>without <br>Over-Allotment <br>Option** | **Amount <br>with <br>Over-Allotment Option** |
|  Product development | $711116 | $834065 |
|  Sales and marketing | 292425 | 342984 |
|  Working capital and general corporate | 3785459 | 4439951 |
|  Total use of proceeds | $4789000 | $5617000 |

---

The foregoing represents our current intentions to use and allocate the net proceeds of this offering based upon our present plans and business conditions. Our management, however, will have broad discretion in the way that we use the net proceeds of this offering. Pending the final application of the net proceeds of this offering, we intend to invest the net proceeds of this offering in short-term, interest-bearing, investment-grade securities. See "*Risk Factors — Risks Related to This Offering and Ownership of Our Ordinary shares — We have considerable discretion as to the use of the net proceeds from this offering and we may use these proceeds in ways with which you may not agree*."

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#### DIVIDEND POLICY
We have not previously declared or paid cash dividends, and we have no plan to declare or pay any dividends in the near future. We currently intend to retain most, if not all, of our available funds and future earnings to operate and expand our business. We are a holding company incorporated in the Cayman Islands. We rely principally on dividends from our subsidiaries for our cash requirements, including any payment of dividends to our shareholders. Our board of directors has discretion as to whether to distribute dividends, subject to certain restrictions under Cayman Islands law, namely that our company may only pay dividends out of profits or share premium, and provided that in no circumstances may a dividend be paid if this would result in our company being unable to pay its debts as they fall due in the ordinary course of business. In addition, our shareholders may by ordinary resolution declare a dividend, but no dividend may exceed the amount recommended by our board of directors. Even if our board of directors decides to pay dividends, the form, frequency and amount will depend upon our future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors that the board of directors may deem relevant. See also "*Risk Factors — Risks Related to This Offering and Ownership of Our Ordinary shares — We do not expect to declare or pay dividends in the foreseeable future*."

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#### CAPITALIZATION
The following table sets forth our cash and capitalization as of June 30, 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on an actual basis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma basis to reflect the issuance of (i) 910,000 ordinary shares in the private placement described elsewhere in this prospectus, which resulted in net proceeds of $711,782, (ii) 99,355 ordinary shares to certain consultants and advisors in consideration for services rendered to us, (iii) 115,000 ordinary shares to service providers as settlement for accounts payable in the amount of $115,000 owed to them and (iv) 474,535 ordinary shares upon the exchange of 474,535 class A common shares of Droneify pursuant to the share exchange agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on a pro forma as adjusted basis to reflect the sale of 923,077 ordinary shares by us in this offering at an assumed initial public offering price of $6.50 per share, which is the midpoint of the estimated range of the initial public offering price shown on the cover page of this prospectus, resulting in net proceeds to us of $4,789,000 after deducting (i) underwriter commissions of $420,000 and (ii) our estimated other offering expenses of $791,000.

The pro forma information below is illustrative only and our capitalization following the completion of this offering is subject to adjustment based on the initial public offering price of our ordinary shares and other terms of this offering determined at pricing. You should read this table together with our financial statements and the related notes included elsewhere in this prospectus and the information under "*Management's Discussion and Analysis of Financial Condition and Results of Operations*."

---

| | | | |
|:---|:---|:---|:---|
|  | **As of June 30, 2022** | **As of June 30, 2022** | **As of June 30, 2022** |
|  | **Actual** | **Pro Forma** | **As Adjusted** |
|  Cash | $37608 | $749390 | $5538390 |
|  Shareholders' equity (deficit): |  |  |  |
| &nbsp;&nbsp;&nbsp; Ordinary Shares, $0.0001 par value, 500,000,000 shares authorized, 6,069,667 shares issued and outstanding, actual; 7,668,557 shares issued and outstanding, pro forma; and 8,591,634 shares issued and outstanding, as adjusted | 607 | 767 | 859 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 4586605 | 5298227 | 10087135 |
| &nbsp;&nbsp;&nbsp; Accumulated deficit | (3755363) | (4049014) | (4049014) |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (129385) | (139502) | (139502) |
| &nbsp;&nbsp;&nbsp; Shareholders' equity attributable to shareholders | 702464  | 1110478 | 5899478 |
| &nbsp;&nbsp;&nbsp; Non-controlling interests | (1092508) | (788740) | (788740) |
|  Total shareholders' equity (deficit) | (390044) | 321738 | 5110738  |
|  **Total capitalization** | $(390044) | $321738  | $5110738 |

---

If the underwriters exercise the over-allotment option in full, each of our as adjusted cash, total shareholders' equity and total capitalization would be $6,366,390, $5,938,738 and $5,938,738, respectively.

Each $1.00 increase or decrease in the assumed initial public offering price of $6.50 per share, assuming no change in the number of shares to be sold, would increase or decrease the net proceeds that we receive in this offering and each of total shareholders' equity and total capitalization by approximately $849,231 (or $976,619 if the underwriters exercise the over-allotment option in full), after deducting (i) estimated underwriter commissions and (ii) offering expenses, in each case, payable by us.

The table above excludes the following shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 472,944 ordinary shares issuable upon the exercise of outstanding options at a weighted average exercise price of C$1.56 (approximately US$1.21) per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 500,000 ordinary shares that are reserved for future issuance under our equity incentive plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 63,700 ordinary shares issuable upon the exercise of outstanding warrants at an exercise price of $7.50; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• up to 74,308 ordinary shares issuable upon exercise of the representative's warrants issued in connection with this offering.

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#### DILUTION
If you invest in our ordinary shares in this offering, your ownership will be diluted immediately to the extent of the difference between the public offering price per share and the as adjusted net tangible book value per share immediately after this offering. Dilution in net tangible book value per share to new investors is the amount by which the offering price paid by the purchasers of the shares sold in this offering exceeds the pro forma as adjusted net tangible book value per share after this offering. Net tangible book value per share is determined at any date by subtracting our total liabilities from the total book value of our tangible assets and dividing the difference by the number of shares deemed to be outstanding at that date.

As of June 30, 2022, our net tangible book value (deficit) was approximately $(390,044), or approximately $(0.06) per share. After giving effect to the issuance of (i) 910,000 ordinary shares in the private placement described elsewhere in this prospectus, which resulted in net proceeds of $711,782, (ii) 99,355 ordinary shares to certain consultants and advisors in consideration for services rendered to us, (iii) 115,000 ordinary shares to service providers as settlement for accounts payable in the amount of $115,000 owed to them and (iv) 474,535 ordinary shares upon the exchange of 474,535 class A common shares of Droneify pursuant to the share exchange agreement, the pro forma net tangible book value of our ordinary shares as of June 30, 2022 is approximately $321,738, or approximately $0.04 per share.

After giving effect to our sale of 923,077 ordinary shares in this offering at an assumed initial public offering price of $6.50 per share, which is the midpoint of the estimated range of the initial public offering price shown on the cover page of this prospectus, and after deducting the estimated underwriting discounts and commissions and estimated offering expenses, our pro forma as adjusted net tangible book value as of June 30, 2022 would have been approximately $5,110,738, or approximately $0.59 per share. This amount represents an immediate increase in pro forma net tangible book value of $0.55 per share to existing shareholders and an immediate dilution in pro forma net tangible book value of $5.91 per share to purchasers of our ordinary shares in this offering, as illustrated in the following table.

---

| | | |
|:---|:---|:---|
|  Assumed initial public offering price per share |  | $6.50 |
| &nbsp;&nbsp;&nbsp; Historical net tangible book value (deficit) per share as of June 30, 2022 | $(0.06) |  |
| &nbsp;&nbsp;&nbsp; Increase per share attributable to the pro forma adjustments described <br>above | 0.11 |  |
| &nbsp;&nbsp;&nbsp; Pro forma net tangible book value per share as of June 30, 2022 | 0.04 |  |
| &nbsp;&nbsp;&nbsp; Increase in pro forma as adjusted net tangible book value per share attributable to new investors purchasing shares in this offering | $0.55 |  |
|  Pro forma as adjusted net tangible book value per share after this offering |  | $0.59 |
|  Dilution per share to new investors purchasing shares in this offering |  | $5.91 |

---

If the underwriters exercise their over-allotment option in full, the pro forma as adjusted net tangible book value per share, as adjusted to give effect to this offering, would be $0.68 per share, and the dilution in pro forma net tangible book value per share to new investors purchasing ordinary shares in this offering would be $5.82 per share.

A $1.00 increase or decrease in the assumed initial public offering price of $6.50 per share would increase or decrease the net tangible book value per share after giving effect to this offering by $0.01 per share and the dilution in net tangible book value per share to new investors in this offering by $0.99 per share, assuming no change to the number of ordinary shares offered by us as set forth on the cover page of this prospectus, no exercise of over-allotment option and after deducting underwriting commissions and estimated offering expenses payable by us.

The pro forma information discussed above is illustrative only. Our net tangible book value following the completion of this offering is subject to adjustment based on the actual initial public offering price of our ordinary shares and other terms of this offering determined at pricing.

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The following tables summarize the differences between our existing shareholders and the new investors with respect to the number of ordinary shares purchased from us in this offering, the total consideration paid and the average price per common share paid at an assumed initial public offering price of $6.50 per common share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, and before deducting estimated underwriting discounts and commissions and estimated offering expenses (assuming no exercise of the over-allotment option). As the table shows, new investors purchasing shares in this offering may in certain circumstances pay an average price per share substantially higher than the average price per share paid by our existing shareholders.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Share Purchased** | **Share Purchased** | **Total Consideration** | **Total Consideration** | **Average Price <br>Per Share** |
|  | **Number** | **%** | **Amount** | **%** | **Average Price <br>Per Share** |
|  Existing shareholders | 7668557 | 89% | $6407743 | 52% | $0.84 |
|  New investors | 923077 | 11% | $6000000 | 48% | $6.50 |
|  Total | 8591634 | 100% | $12407743 | 100% |  |

---

The table and discussion above exclude the following shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 472,944 ordinary shares issuable upon the exercise of outstanding options at a weighted average exercise price of C$1.56 (approximately US$1.21) per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 500,000 ordinary shares that are reserved for future issuance under our equity incentive plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 63,700 ordinary shares issuable upon the exercise of outstanding warrants at an exercise price of $7.50; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• up to 74,308 ordinary shares issuable upon exercise of the representative's warrants issued in connection with this offering.

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#### MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL<br>CONDITION AND RESULTS OF OPERATIONS
*The following discussion and analysis summarizes the significant factors affecting our operating results, financial condition, liquidity and cash flows of our company as of and for the periods presented below. The following discussion and analysis should be read in conjunction with our financial statements and the related notes thereto included elsewhere in this prospectus. The discussion contains forward*-looking *statements that are based on the beliefs of management, as well as assumptions made by, and information currently available to, our management. Actual results could differ materially from those discussed in or implied by forward*-looking *statements as a result of various factors, including those discussed below and elsewhere in this prospectus, particularly in the sections titled "Risk Factors" and "Cautionary Statement Regarding Forward*-Looking *Statements."*

#### Overview
We are a development stage technology company focused on designing, developing, and deploying drone-enabled solutions and technology for the purposes of capturing, analyzing, and reporting on data to assist customers in a variety of industries, allowing them to improve decision-making and reduce operational risks and costs. We offer leading-edge aerial intelligence solutions with an emphasis on automating complex, recurring operations that are required for compliance and growth.

We serve clients across a variety of industries, with a current emphasis on niche markets such as utilities, energy, construction, and infrastructure. We are actively developing an online-based drone operations, software, and hardware management system, with the goal of using this platform as the basis for a broader solution that integrates the collection, storage and analysis of data for end users within a PaaS subscription model.

We have three main categories of business operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Drone Solutions.*** Our drone solutions division provides drone services, such as inspections, surveying, and marketing work to customers across a wide range of industries. The services are carried out by a network of drone pilots managed by us. Collected data is processed, analyzed, and delivered by us to our customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Data Analytics.*** Our drone analytics division will offer software tools for customers and drone market participants to source job opportunities, purchase hardware, analyze, manage, or store data, and more with software-as-a-service, or SaaS, features. The platform, called "Droneify", is still in the development stage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Drone Hardware.*** Our drone hardware division develops advanced drone hardware solutions for use in the military and heavy industry applications. This business segment is still in the development stage.

Our plan is to provide one platform with all the hardware, insurance, and software features needed to start, run, or grow a drone business. Through financial and insurance partners, we will offer comprehensive services for rent-to-own hardware, low monthly fee insurance, and software. This will provide anyone with a low-cost method of entering the drone market.

#### Recent Developments
On September 23, 2022, we commenced a corporate restructuring pursuant to a share exchange agreement that we entered into with Droneify and its shareholders. Pursuant to the share exchange agreement, we have acquired 6,544,202 class A common shares of Droneify in exchange for which we issued 6,544,202 ordinary shares to the shareholders of Droneify. As a result of this restructuring, we own 84.15% of the issued and outstanding class A common shares of Droneify. One shareholder holds the remaining shares that have not yet been exchanged. Such shareholder has indicated that it will exchange its shares following the completion of this offering, at which time we would own 100% of Droneify. If such shareholder does not exchange its shares, Droneify would remain a majority-owned subsidiary rather than a wholly-owned subsidiary.

In August 2022, Droneify launched a private placement pursuant to which it is offering up to 1,500,000 class A common shares, at a purchase price of $1.00 per share, for total gross proceeds of up to $1,500,000. Boustead Securities, LLC, the representative of the underwriters for this offering, is acting as placement agent in connection with this private placement. As compensation for its services, it will receive (i) a cash commission equal to 7% of the gross proceeds, (ii) a 1% non-accountable expense allowance and (iii) warrants for the purchase of a number of class A common shares of Droneify equal to 7% of

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the number of shares issued in the private placement at an exercise price of $7.50 per share (subject to adjustments), which may be exercised on a cashless basis. Commencing on September 26, 2022, Droneify has completed multiple closings of this private placement in which it has issued an aggregate of 910,000 class A common shares for total gross proceeds of $910,000 and net proceeds of approximately $711,782. Droneify has also issued warrants for the purchase of 63,700 class A common shares to Boustead Securities, LLC. These shares were immediately exchanged for 910,000 ordinary shares of our company and the warrants were exchanged for warrants for 63,700 ordinary shares of our company pursuant to the share exchange agreement described above. We determined the initially issued Droneify warrants to be equity instruments pursuant to ASC 480 and ASC 815, as the warrants are indexed to the issuer's own stock and meet the conditions of equity classification. On exchange of warrants into our company, we recognize additional fair value, if any, as an equity issuance cost as a component of equity.

#### Impact of Coronavirus Pandemic
In December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China. On March 11, 2020, the World Health Organization declared the outbreak a pandemic. On March 11, 2020, the federal government of Canada announced a C$1 billion (approximately US$777 million) package to help Canadians through the health crisis. To date, there have been a large number of temporary business closures, quarantines and a general reduction in consumer activity in Canada.

We are dependent on suppliers to provide us with the products and services that we sell. The pandemic has impacted and may continue to impact suppliers and manufacturers of certain products. As a result, we have faced and may continue to face delays or difficulty sourcing certain products and services, which could negatively affect the business and financial results. The cost to deliver such products and services may also increase as a result of increased compliance requirements, delivery times (social distancing) or needing to source alternative suppliers, which could adversely impact profitability and financial condition.

The spread of the virus in many countries continues to adversely impact global economic activity and has contributed to significant volatility and negative pressure in financial markets and supply chains. The pandemic has had, and could have a significantly greater, material adverse effect on the Canadian economy as a whole, as well as the local economy where we conduct our operations. The pandemic has resulted, and may continue to result for an extended period, in significant disruption of global financial markets, which may reduce our ability to access capital in the future, which could negatively affect our liquidity.

If the COVID-19 pandemic does not continue to slow and the spread of COVID-19 is not contained, our business operations, including those of our contract manufacturers and suppliers, could be further delayed or interrupted. We expect that government and health authorities may announce new or extend existing restrictions, which could require us to make further adjustments to our operations in order to comply with any such restrictions. We may also experience limitations in employee resources. In addition, our operations could be disrupted if any of our employees were suspected of having COVID-19, which could require quarantine of some or all such employees or closure of our facilities for disinfection. The duration of any business disruption cannot be reasonably estimated at this time but may materially affect our ability to operate our business and result in additional costs.

The extent to which the pandemic may impact our results will depend on future developments, which are highly uncertain and cannot be predicted as of the date of this prospectus, including the effectiveness of vaccines and other treatments for COVID-19, and other new information that may emerge concerning the severity of the pandemic and steps taken to contain the pandemic or treat its impact, among others. Nevertheless, the pandemic and the current financial, economic and capital markets environment, and future developments in the global supply chain and other areas present material uncertainty and risk with respect to our performance, financial condition, results of operations and cash flows. See also "*Risk Factors*" for more information.

#### Principal Factors Affecting Our Financial Performance
Our operating results are primarily affected by the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to acquire new customers or retain existing customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to offer competitive pricing for our products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to broaden product and service offerings;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• industry demand and competition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market conditions and our market position.

#### Emerging Growth Company
Upon the completion of this offering, we will qualify as an "emerging growth company" under the JOBS Act. As a result, we will be permitted to, and intend to, rely on exemptions from certain disclosure requirements. These provisions include exemption from the auditor attestation requirement under Section 404 of the Sarbanes-Oxley Act of 2002 in the assessment of the emerging growth company's internal control over financial reporting. In addition, Section 107 of the JOBS Act also 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 elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

We will remain an emerging growth company until the earliest of (i) the last day of the fiscal year during which we have total annual gross revenues of at least $1.235 billion; (ii) the last day of our fiscal year following the fifth anniversary of the completion of this offering; (iii) the date on which we have, during the preceding three year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which we are deemed to be a "large accelerated filer" under the Exchange Act, which could occur if the market value of our ordinary shares that are held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter. Once we cease to be an emerging growth company, we will not be entitled to the exemptions provided in the JOBS Act discussed above.

#### Results of Operations

#### Comparison of Six Months Ended June 30, 2022 and 2021
The following table sets forth key components of our results of operations during the six months ended June 30, 2022 and 2021, both in U.S. dollars and as a percentage of our revenue.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2022** | **2022** | **2021** | **2021** |
|  | **Amount** | **% of <br>Revenue** | **Amount** | **% of <br>Revenue** |
|  Revenue | $118048 | 100.00% | $46964 | 100.00% |
|  Cost of revenue | 62329 | 52.80% | 43434 | 92.48% |
|  Gross profit | 55719 | 47.20% | 3530 | 7.52% |
|  Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative | 50543 | 42.82% | 193092 | 411.15% |
| &nbsp;&nbsp;&nbsp; Professional fees | 12994 | 11.01% | 13338 | 28.40% |
| &nbsp;&nbsp;&nbsp; Depreciation | 3789 | 3.21% | 3863 | 8.23% |
| &nbsp;&nbsp;&nbsp; Research and development | 103 | 0.09% | 4245 | 9.04% |
|  Total operating expenses | 67429 | 57.12% | 214538 | 456.81% |
|  Net loss from operations | (11710) | (9.92)% | (211008) | (449.30)% |
|  Other income (expenses) |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Other income | 30867 | 26.15% | 129 | 0.27% |
|  Total other income | 30867 | 26.15% | 129 | 0.27% |
|  Net income (loss) | 19157 | 16.23% | (210879) | (449.02)% |
| &nbsp;&nbsp;&nbsp; Less: Net income (loss) attributable to noncontrolling interests | 4205 | 3.56% | (46288) | (98.56)% |
|  Net income (loss) attributable to shareholders | $14952 | 12.67% | $(164591) | (350.46)% |

---

*Revenue.* We derive our revenue from service contracts using our drone technology to provide imaging and inspections to customers in a wide variety of industries. Our revenue increased by $71,084, or 151.36%, to $118,048 for the six months ended June 30, 2022 from $46,964 for the six months ended June 30, 2021. The primary driver

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of the significant increase in revenue for the six months ended June 30, 2022 as compared to the six months ended June 30, 2021 is the addition of two new significant customers and the expansion of current sales to our existing customers. For the six months ended June 30, 2022, we derived approximately 59% our revenue from three significant customers, Golder Associates Ltd., Slate Asset Management, Inc. and Distrikt, which accounted for approximately 38%, 11% and 10%, respectively, of our revenue. For the six months ended June 30, 2021, we derived approximately 47% our revenue from two significant customers, Stantec and Distrikt, which accounted for approximately 25% and 22%, respectively, of our revenue.

*Cost of revenue.* Our cost of revenue consists of direct labor, materials, drone depreciation and other direct costs. Our cost of revenue increased by $18,895, or 43.50%, to $62,329 for the six months ended June 30, 2022 from $43,434 for the six months ended June 30, 2021. As a percentage of revenue, cost of revenue was 52.80% and 92.48% for the six months ended June 30, 2022 and 2021, respectively. This significant decrease was primarily due to the realization of cost savings by transitioning from utilizing our own in-house drone pilots to subcontracting to independent drone operators.

*Gross profit.* As a result of the foregoing, our gross profit increased by $52,189, or 1,478.44%, to $55,719 for the six months ended June 30, 2022 from $3,530 for the six months ended June 30, 2021. Gross margin (percent of revenue) increased to 47.20% for the six months ended June 30, 2022 from 7.52% for the six months ended June 30, 2021.

*General and administrative expenses.* Our general and administrative expenses consist primarily of employee salaries and bonuses plus related payroll taxes, rent expense, advertising, bank fees and other expenses incurred in connection with general operations. Our general and administrative expenses decreased by $142,549, or 73.82%, to $50,543 for the six months ended June 30, 2022 from $193,092 for the six months ended June 30, 2021. As a percentage of revenue, general and administrative expenses were 42.82% and 411.15% for the six months ended June 30, 2022 and 2021, respectively. Such significant decrease was primarily due to a reduction in salaries and wages related to our Chief Executive Officer and Chief Operating Officer waiving a portion of their salaries during the six months ended June 30, 2022, and the forgiveness of $445,341 in accrued salaries by our executives from prior periods. During the six months ended June 30, 2022 and 2021, our Chief Executive Officer and Chief Operating Officer collectively accrued salaries and wages of $90,135 and $106,267, respectively. Subsequently, during the six months ended June 30, 2022 and 2021, our Chief Executive Officer and Chief Operating Officer collectively forgave accrued salaries and wages of $43,919 and $0, respectively. The forgiven salaries and wages were accounted for contributed capital.

*Professional fees.* Our professional fees consist primarily of fees paid to our legal and accounting advisors. Our professional fees decreased by $344, or 2.58%, to $12,994 for the six months ended June 30, 2022 from $13,338 for the six months ended June 30, 2021. As a percentage of revenue, professional fees were 11.01% and 28.40% for the six months ended June 30, 2022 and 2021, respectively. Such decrease was due to ordinary fluctuations in fees incurred in the course of our business.

*Depreciation.* Our total depreciation expense was $3,789, or 3.21% of revenue, for the six months ended June 30, 2022, as compared to $3,863, or 8.23% of revenue, for the six months ended June 30, 2022.

*Research and development expenses.* Our research and development expenses consist primarily of software development expenses. Our research and development expenses decreased by $4,142, or 97.57%, to $103 for the six months ended June 30, 2022 from $4,245 for the six months ended June 30, 2021. As a percentage of revenue, research and development expenses were 0.09% and 9.04% for the six months ended June 30, 2022 and 2021, respectively. Such decrease was primarily due to the completion of Phase I of our platform development and the subsequent temporary suspension of certain additional development activities during the six months ended June 30, 2022 so that we may gather real world feedback from our customers before beginning Phase II of the development.

*Total other income.* We had other income of $30,867 for the six months ended June 30, 2022, as compared to other income of $129 for the six months ended June 30, 2021. Other income for both periods consisted of gains and other adjustments related to the clearing of certain liabilities from our balance sheets.

*Net income (loss).* As a result of the cumulative effect of the factors described above, we had a net income of $19,157 for the six months ended June 30, 2022, as compared to a net loss of $210,879 for the six months ended June 30, 2021.

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#### Comparison of Years December 31, 2021 and 2020
The following table sets forth key components of our results of operations during the years ended December 31, 2021 and 2020, both in U.S. dollars and as a percentage of our revenue.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2021** | **2021** | **2020** | **2020** |
|  | **Amount** | **% of <br>Revenue** | **Amount** | **% of <br>Revenue** |
|  Revenue | $704553 | 100.00% | $432263 | 100.00% |
|  Cost of revenue | 587177 | 83.34% | 382423 | 88.47% |
|  Gross profit | 117376 | 16.66% | 49840 | 11.53% |
|  Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative | 318146 | 45.16% | 386500 | 89.41% |
| &nbsp;&nbsp;&nbsp; Professional fees | 25650 | 3.64% | 55508 | 12.84% |
| &nbsp;&nbsp;&nbsp; Depreciation | 7689 | 1.09% | 11139 | 2.58% |
| &nbsp;&nbsp;&nbsp; Research and development | 5014 | 0.71% | 116619 | 26.98% |
|  Total operating expenses | 356499 | 50.60% | 569766 | 131.81% |
|  Net loss from operations | (239123) | (33.94)% | (519926) | (120.28)% |
|  Other income (expenses) |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Other income | 33235 | 4.72% | 4867 | 1.13% |
| &nbsp;&nbsp;&nbsp; Interest income (expense) | 528 | 0.07% | (240119) | (55.55)% |
|  Total other income (expense) | 33763 | 4.79% | (235252) | (54.42)% |
|  Net loss | (205360) | (29.15)% | (755178) | (174.70)% |
| &nbsp;&nbsp;&nbsp; Less: Net loss attributable to noncontrolling interests | (45077) | (6.40)% | (165762) | (38.35)% |
|  Net loss attributable to shareholders | $(160283) | (22.75)% | $(589416) | (136.36)% |

---

***<u>Revenue.</u>* Our revenue increased by $272,290, or 62.99%, to $704,553 for the year ended December 31, 2021 from $432,263 for the year ended December 31, 2020. In addition to organic growth of our sales, such increase was primarily due to entering into a contract to provide services to a large commercial customer, Aerodyne, which accounted for approximately 80% of our revenue in 2021. In 2020, one customer, C&G Mining Company Ltd., accounted for approximately 58% of our revenue. No other customer accounted for more than 10% of our revenue during the years ended December 31, 2021 and 2020.***

*<u>Cost of revenue.</u>* Cost of revenue increased by $204,754, or 53.54%, to $587,177 for the year ended December 31, 2021 from $382,423 for the year ended December 31, 2020. As a percentage of revenue, cost of revenue was 83.34% and 88.47% for the years ended December 31, 2021 and 2020, respectively. This slight decrease was primarily due to the realization of cost savings in 2021 by transitioning from utilizing our own in-house drone pilots to subcontracting to independent drone operators.

*<u>Gross profit.</u>* As a result of the foregoing, our gross profit increased by $67,536, or 135.51%, to $117,376 for the year ended December 31, 2021 from $49,840 for the year ended December 31, 2020. Gross margin (percent of revenue) increased to 16.66% for the year ended December 31, 2021 from 11.53% for the year ended December 31, 2020.

*<u>General and administrative expenses.</u>* Our general and administrative expenses decreased by $68,354, or 17.69%, to $318,146 for the year ended December 31, 2021 from $386,500 for the year ended December 31, 2020. As a percentage of revenue, general and administrative expenses were 45.16% and 89.49% for the years ended December 31, 2021 and 2020, respectively. Such decrease was primarily due to the forgiveness of $445,341 in accrued salaries by our executives from prior periods and ordinary fluctuations in our corporate overhead. During the years ended December 31, 2020 and 2021, our Chief Executive Officer and Chief Operating Officer collectively accrued salaries and wages of $196,424 and $254,285, respectively. Subsequently, during the years ended December 31, 2021 and 2020, our Chief Executive Officer and Chief Operating Officer collectively forgave accrued salaries and wages of $445,341 and $0, respectively. The forgiven salaries and wages were accounted for contributed capital.

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*<u>Professional fees.</u>* Our professional fees decreased by $29,858, or 53.79%, to $25,650 for the year ended December 31, 2021 from $55,508 for the year ended December 31, 2020. As a percentage of revenue, professional fees were 3.64% and 12.84% for the years ended December 31, 2021 and 2020, respectively. Such decrease was primarily due to the preparation in 2020 by our accountants of an application for a 2019 Scientific Research and Experimental Development Tax Incentive program in which we were able to realize a refundable tax credit in 2020 on research and development activities undertaken in 2019. We did not undertake any research and development in 2020 that was eligible for this program.

*<u>Depreciation.</u>* Our total depreciation expense was $7,689, or 1.09% of revenue, for the year ended December 31, 2021, as compared to $11,139, or 2.58% of revenue, for the year ended December 31, 2020.

*<u>Research and development expenses.</u>* Our research and development expenses decreased by $111,605, or 95.70%, to $5,014 for the year ended December 31, 2021 from $116,619 for the year ended December 31, 2020. As a percentage of revenue, research and development expenses were 0.71% and 26.98% for the years ended December 31, 2021 and 2020, respectively. Such decrease was primarily due to decreased payments to Torinit Technologies Inc., or Torinit. In December 2019, we engaged Torinit to provide us with software development assistance for our platform. Most of the expenses were incurred in 2020, when the first stage of development was completed. The next stage of development is related to beta testing and launching the platform, which requires additional financing. For the years ended December 31, 2021 and 2020, we paid Torinit $0 and C$122,040 (approximately US$94,818), respectively.

*<u>Total other income (expense).</u>* We had $33,763 in total other income, net, for the year ended December 31, 2021, as compared to other expense, net, of $235,252 for the year ended December 31, 2020. Other income, net, for the year ended December 31, 2021 consisted of other income of $33,235 and interest income of $528, while other expense, net, for the year ended December 31, 2021 consisted of interest expense of $240,119, offset by other income of $4,867. Other income for both periods consisted of gains and other adjustments related to the clearing of certain liabilities from our balance sheets.

*<u>Net loss.</u>* As a result of the cumulative effect of the factors described above, our net loss was $205,360 for the year ended December 31, 2021, as compared to $755,178 for the year ended December 31, 2020.

#### Liquidity and Capital Resources
As of June 30, 2022, we had cash of $37,608. To date, we have financed our operations primarily through revenue generated from operations and private placements of our securities.

Management has prepared estimates of operations and believes that in addition to the funds raised in sales of equity, sufficient funds will be generated from operations to fund our operations and to service our debt obligations for at least the next twelve months. We may, however, in the future require additional cash resources due to changing business conditions, implementation of our strategy to expand our business, or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of additional equity securities could result in dilution to our shareholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.

The impact of COVID-19 on our business has been considered in these assumptions; however, it is too early to know the full impact of COVID-19 or its timing on a return to more normal operations.

The accompanying consolidated financial statements have been prepared on a going concern basis under which we are expected to be able to realize our assets and satisfy our liabilities in the normal course of business.

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#### Summary of Cash Flow
The following table provides detailed information about our net cash flow for all financial statement periods presented in this prospectus.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended <br>June 30,** | **Six Months Ended <br>June 30,** | **Years Ended <br>December 31,** | **Years Ended <br>December 31,** |
|  | **2022** | **2021** | **2021** | **2020** |
|  Net cash provided by (used in) operating activities | $4141 | $(52963) | $40124 | $(11239) |
|  Net cash used in investing activities |  |  |  | (2080) |
|  Net cash provided by (used in) financing activities | (617) |  |  | 44790 |
|  Effect of exchange rate changes on cash | (515) | 2456 | (103837) | 2654 |
|  Net change in cash | 3009 | (50507) | (63713) | 34125 |
|  Cash, beginning of period | 34599 | 98312 | 98312 | 64187 |
|  Cash, end of period | $37608 | $47805 | $34599 | $98312 |

---

Net cash provided by operating activities was $4,141 for the six months ended June 30, 2022, as compared to net cash used in operating activities of $52,963 for the six months ended June 30, 2021. For the six months ended June 30, 2022, the net income of $19,157 and an increase in accounts receivable of $255,253, offset by a decrease in accrued liabilities of $295,812, were the primary drivers of the net provided by in operating activities. For the six months ended June 30, 2021, the net loss of $210,879, offset by an increase in accrued liabilities of $116,274, were the primary drivers of the net cash used in operating activities.

Net cash provided by operating activities was $40,124 for the year ended December 31, 2021, as compared to net cash used in operating activities of $11,239 for the year ended December 31, 2020. For the year ended December 31, 2021, the net loss of $205,360 and a decrease in accounts receivable of $313,404, offset by an increase in accrued liabilities of $518,640, were the primary drivers of the net cash provided by operating activities. For the year ended December 31, 2020, the net loss of $755,178, offset by increases in accrued liabilities and accounts receivable of $497,841 and $185,274, respectively, were the primary drivers of the net cash used in operating activities. For the year ended December 31, 2021, accounts receivable of $313,404 represent more than 50% of our total revenue. In October 2021, we invoiced Aerodyne CAD$396,040 (approximately US$317,000). At December 31, 2021, the full amount was outstanding. Aerodyne paid its invoice in full during the six months ended June 30, 2022.

We had no investing activities for the six months ended June 30, 2022 and 2021 or for the year ended December 31, 2021. Net cash used in investing activities was $2,080 for the year ended December 31, 2020, which consisted entirely of purchases of property and equipment.

Net cash used in financing activities for the six months ended June 30, 2022 was $617, which consisted entirely of repayments of related party notes payable. We had no financing activities for the six months ended June 30, 2021.

We had no financing activities for the year ended December 31, 2021. Net cash provided by financing activities was $44,790 for the year ended December 31, 2020, which consisted entirely of loan proceeds.

#### CEBA Loans
As a result of the COVID-19 pandemic, the Canadian government made loans available to small businesses through a Canada Emergency Business Account, or CEBA. The CEBA program offered interest-free loans to small businesses and non-profits. Under the program, if the CEBA loans are repaid on or before December 31, 2022, 33% of the loans may be forgiven. As of December 4, 2020, approved CEBA applications were eligible to receive an additional C$20,000 (US$15,802). During 2022, the repayment date eligible for partial forgiveness was extended to December 31, 2023. CEBA loans that remain unpaid as of January 1, 2024 shall accrue interest at 5% per annum. CEBA loan holders shall only be required to make interest payments until December 31, 2025.

On April 29, 2020, we borrowed C$40,000 (US$28,465) via the CEBA loan program. On December 20, 2020, we borrowed an additional C$20,000 (US$15,802). As of June 30, 2022, the outstanding CEBA loan balance is C$60,000 (US$46,608).

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#### Contractual Obligations
Other than indicated above, at June 30, 2022, we did not have other long-term debt obligations, capital (finance) lease obligations, operating lease obligations, purchase obligations or other long-term liabilities reflected on our balance sheets.

#### Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

#### Quantitative and Qualitative Disclosures about Market Risk
Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily the result of fluctuations in interest rates and foreign exchange rates as well as, to a lesser extent, inflation.

#### Interest Rate Risk
We are exposed to market risks in the ordinary course of our business. Our cash and short-term investments include cash in readily available checking accounts and guaranteed investment certificates. These securities are not dependent on interest rate fluctuations that may cause the principal amount of these assets to fluctuate.

#### Foreign Currency Exchange Risk
The majority of our cash flows, financial assets and liabilities are denominated in Canadian dollars, which is our functional currency. We are exposed to financial risk related to the fluctuation of foreign exchange rates and the degree of volatility of those rates. Currency risk is limited to the proportion of our business transactions denominated in currencies other than the Canadian dollar, primarily for capital expenditures, debt and various operating expenses such as salaries and professional fees. We do not currently use derivative financial instruments to reduce our foreign exchange exposure and management does not believe our current exposure to currency risk to be significant.

We estimate that we will receive net proceeds of approximately $4,789,000 in this offering, based upon an assumed initial public offering price of $6.50 per share, which is the midpoint of the estimated range of the initial public offering price shown on the cover page of this prospectus, assuming no exercise of the over-allotment option and after deducting underwriting discounts and commissions and the estimated offering expenses payable by us. Assuming that we convert the full amount of the net proceeds from this offering into Canadian dollars, a 10.0% appreciation of the U.S. dollar against the Canadian dollar, from the exchange rate of C$1.2871 per US$1.00 as of June 30, 2022 to a rate of C$1.41581 per US$1.00, will result in an increase of approximately C$616,392 in our net proceeds from this offering. Conversely, a 10.0% depreciation of the U.S. dollar against the Canadian dollar, from the exchange rate of C$1.2871 per US$1.00 as of June 30, 2022 to a rate of C$1.15839 for US$1.00, will result in a decrease of C$616,392 in our net proceeds from this offering.

#### Inflation Risk
We do not believe that inflation has had a material effect on our business, financial condition or results of operations. If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could harm our business, financial condition and results of operations.

#### Critical Accounting Policies
The following discussion relates to critical accounting policies for our company. The preparation of financial statements in conformity with U.S. GAAP requires our management to make assumptions, estimates and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting policies are important for an understanding of our financial condition and results of operation.

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Critical accounting policies are those that are most important to the portrayal of our financial condition and results of operations and require management's difficult, subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management's current judgments. We believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our financial statements:

***Revenue Recognition.*** Revenue is recognized to the extent that it is probable that the economic benefits will flow to our company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. We assess our revenue arrangements against specific criteria in order to determine if we are acting as principal or agent. We have concluded that our company has acted as a principal in all of its existing revenue arrangements due to the fact that we have purchased services from suppliers, added other services and resoled those bundled services as a principal. We intend to act as principal and/or agent in the future, depending on the nature of the contemplated transaction. In the instance where we act as agent in our future transactions, only that income that is earned as commissions or booking fees for both pilots and clients will be recognized as revenue, net of any amounts due to or from the pilots and clients, respectively. In accordance with ASC 606, revenue is only recognized when pervasive evidence that the transaction has been completed and the commissions and fees are due and payable to us.

We derive revenue from service contracts using our drone technology to provide imaging and inspections to customers in a wide variety of industries. Our contracts are short-term, ranging from 5 – 7 days. Revenue is recognized by the us at the time services are rendered. Revenue earned from rendering services is recognized at the fair value of services provided in accordance with the customer contract. We recognize revenue net of variable consideration, which arises through the provision of discounts. Costs of fulfilling our performance obligations and revenue associated with these performance obligations are incurred simultaneously. We have not deferred any expenditures with regard to fulfilling our contracts.

***Foreign Currency Translation.*** Our financial statements are presented in U.S. dollars, and the functional currency is Canadian dollars. Monetary assets and liabilities denominated in foreign currencies are converted to U.S. dollars at the appropriate rates of exchange prevailing at the statement of financial position dates while other assets and liabilities are converted at the rates of exchange applicable at the dates acquired or incurred. Revenue and expenses are translated into U.S. dollars at rates of exchange applicable during the periods in which they were earned or expensed. All gains and losses are included in the statement of loss and comprehensive loss as they arise.

***Drone and Other Equipment.*** Drone and other equipment are stated at cost, net of accumulated depreciation or accumulated impairment losses, if any, in accordance with ASC 360-10-35-7 and ASC 360-10-50-1(d). Such cost includes the cost of replacing component parts of the property and equipment and any expenditures required to make the property and equipment ready for use. Repairs and maintenance are charged against income as incurred. Expenditures that extend the estimated life of an asset are capitalized. Depreciation is provided annually on property and equipment at rates designed to charge the cost of the assets over their estimated useful lives, as follows:

---

| | | |
|:---|:---|:---|
|  **Category** | **Method** | **Useful Life** |
|  Drone equipment | 20% declining balance | 5 years |
|  Furniture and fixtures | 20% declining balance | 5 years |
|  Computers | 55% declining balance | 5 years |

---

The assets' residual values, useful lives and methods of depreciation are reviewed at each fiscal year-end and adjusted prospectively, if appropriate. Due to the increase in maintenance costs in the latter years of service, depreciation of drone equipment is computed using the declining balance method of depreciation and is recognized in cost of revenue on the statement of loss and comprehensive loss. Depreciation of furniture, fixtures and computers is recognized in general and administrative expenses. An item of property and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is included in the statement of loss and comprehensive loss when the asset is derecognized.

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***Impairment of Non***-financial ***Assets.*** We determine at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, we estimate the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated for valuation multiples or other available fair value indicators. Impairment losses are recognized in the statement of loss and comprehensive loss in those expense categories consistent with the function of the impaired asset. An assessment is made at each reporting date of whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If an indication exists, we estimate the asset's recoverable amount.

***Fair Value Measurements.*** We use a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires us to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 — Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 — Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

Our financial instruments, including cash, accounts receivable, prepaid expense and other current assets, accounts payable and accrued liabilities, convertible notes, loans payable, and notes payable related party, are carried at historical cost. At June 30, 2022 and 2021, the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments.

***Leases.*** We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use, or ROU, assets, operating lease liabilities — current, and operating lease liabilities — noncurrent on the balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Leases with a lease term of 12 months or less at inception are not recorded on our balance sheet and are expensed on a straight-line basis over the lease term in our statement of operations.

***Stock***-based ***Compensation.*** We recognize compensation expense for stock-based compensation in accordance with ASC Topic 718. For employee and non-employee stock-based awards, we calculate the fair value of the award on the date of grant using the option-pricing model for options and the quoted price of our ordinary shares for unrestricted shares; the expense is recognized over the service period for awards expected to vest. We consider many factors when estimating expected forfeitures, including types of awards, employee class, and historical experience.

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#### Recent Changes in Accounting Policies
In June 2022, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2022-03, ASC Subtopic "Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions". These amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments in this update are effective for public business entities for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted. We are currently assessing the impact of the adoption of this standard on our consolidated financial statements.

In November 2021, the FASB issued ASU 2021-10, "Government Assistance (Topic 832)," which enhances disclosure of transactions with governments that are accounted for by applying a grant or contribution model. The new pronouncement requires entities to provide information about the nature of the transaction, terms and conditions associated with the transaction and financial statement line items affected by the transaction. The standard must be adopted for year ends beginning after December 15, 2021, with early adoption permitted. We adopted the standard on January 1, 2022, and do not expect the adoption of this standard to have any material impact on our financial statements.

In October 2021, the FASB issued ASU No. 2021-08, "Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805)." This ASU requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. At the acquisition date, the acquirer applies the revenue model as if it had originated the acquired contracts. The ASU is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the ASU should be applied prospectively. Early adoption is also permitted, including adoption in an interim period. If early adopted, the amendments are applied retrospectively to all business combinations for which the acquisition date occurred during the fiscal year of adoption. This ASU is currently not expected to have a material impact on our consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments Credit Losses — Measurement of Credit Losses on Financial Instruments." This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, which includes our accounts receivable. This ASU is effective for our company for reporting periods beginning after December 15, 2022. We are currently assessing the potential impact that the adoption of this ASU will have on our consolidated financial statements.

In May 2021, the FASB issued ASU 2021-04, "Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40): Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options." The amendments in ASU 2021-04 provide guidance to clarify and reduce diversity in an issuer's accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The guidance is effective for fiscal years beginning after December 15, 2021, including interim periods therein, and early adoption is permitted. The adoption of ASU 2021-04 by our company on January 1, 2022 did not have any impact on our consolidated financial statements.

We have considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on our consolidated financial statements.

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#### bUSINESS

#### Overview
We are a development stage technology company focused on designing, developing, and deploying drone-enabled solutions and technology for the purposes of capturing, analyzing, and reporting on data to assist customers in a variety of industries, allowing them to improve decision-making and reduce operational risks and costs. We offer leading-edge aerial intelligence solutions with an emphasis on automating complex, recurring operations that are required for compliance and growth.

We serve clients across a variety of industries, with a current emphasis on niche markets such as utilities, energy, construction, and infrastructure. We are actively developing an online-based drone operations, software, and hardware management system, with the goal of using this platform as the basis for a broader solution that integrates the collection, storage and analysis of data for end users within a PaaS subscription model.

We have three main categories of business operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Drone Solutions.*** Our drone solutions division provides drone services, such as inspections, surveying, and marketing work to customers across a wide range of industries. The services are carried out by a network of drone pilots managed by us. Collected data is processed, analyzed, and delivered by us to our customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Data Analytics.*** Our drone analytics division will offer software tools for customers and drone market participants to source job opportunities, purchase hardware, analyze, manage, or store data, and more with software-as-a-service, or SaaS, features. The platform, called "Droneify", is still in the development stage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Drone Hardware.*** Our drone hardware division develops advanced drone hardware solutions for use in the military and heavy industry applications. This business segment is still in the development stage.

Our plan is to provide one platform with all the hardware, insurance, and software features needed to start, run, or grow a drone business. Through financial and insurance partners, we will offer comprehensive services for rent-to-own hardware, low monthly fee insurance, and software. This will provide anyone with a low-cost method of entering the drone market.

#### Our Corporate History and Structure
We were incorporated as a Cayman Islands exempted company on August 24, 2022. Our predecessor company, Droneify, was incorporated on March 20, 2015 in the Province of Ontario, Canada.

On September 23, 2022, we commenced a corporate restructuring pursuant to a share exchange agreement that we entered into with Droneify and its shareholders. Pursuant to the share exchange agreement, we have acquired 6,544,202 class A common shares of Droneify in exchange for which we issued 6,544,202 ordinary shares to the shareholders of Droneify. As a result of this restructuring, we own 84.15% of the issued and outstanding class A common shares of Droneify. One shareholder holds the remaining shares that have not yet been exchanged. Such shareholder has indicated that it will exchange its shares following the completion of this offering, at which time we would own 100% of Droneify. If such shareholder does not exchange its shares, Droneify would remain a majority-owned subsidiary rather than a wholly-owned subsidiary.

In 2018, Droneify completed an internal reorganization transaction pursuant to which it incorporated 2659498 Ontario Ltd. as a wholly owned subsidiary and transferred its software to this entity on a taxable basis. The reorganization was completed to create a potential future Canadian tax benefit for participating Canadian shareholders by reducing income taxes on a future disposition of their shares.

We do not have any other subsidiaries.

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#### Our Industry
According to Drone Industry Insights, a leading market research and analytics company for commercial drones, the global drone market was estimated at $20.9 billion in 2020 and is forecasted to grow from $26.3 billion in 2021 to $41.3 billion in 2026, or a CAGR of 9.4%. It estimates that unit sales will grow from approximately 0.8 million in 2021 to almost 1.4 million in 2026, or a CAGR of 10.6%.

![](tbarchart_001.jpg)

<u>Source: Drone Industry Insights (August 2021)</u>

In 2021, the drone market was strongly driven by drone services. Drone Industry Insights estimates that drone services will remain the biggest segment with hardware growing rapidly.

![](tpiechart_001.jpg)

<u>Source: Drone Industry Insights (August 2021)</u>

In the past ten years, investments in the drone industry have increased dramatically, as demonstrated by the graphic below. In 2021, the amount of investments in the drone industry reached a new record of nearly $7 billion, and since 2020, over $9 billion has been invested in the drone industry, which has helped the industry push forward in spite of the COVID-19 pandemic.

![](tlinechart_001.jpg)

<u>Source: Drone Industry Insights (February 2022)</u>

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Drone applications are becoming more and more prevalent throughout all industries. Whether it is construction, energy, mining, transportation, or waste management, drones are often able to carry out tasks more safely and efficiently than people. According to Drone Industry Insights, in 2021 energy remained the industry with the highest adoption of drones, though cargo, courier services, intralogistics and warehousing have the highest CAGRs.

The most common drone applications are the ones making use of something almost every drone has: a built-in camera. Many industries such as energy and real estate make heavy use of drones for inspections while drones are used for mapping and surveying in several industries such as construction, transportation, agriculture and professional/scientific services, among others.

In August 2021, Drone Industry Insights conducted an industry survey of drone companies, including drone service providers (third-party service companies like us whose business is to offer drone services to clients from all kinds of industries) and business-internal services (companies operating drones inhouse and do not offer services to third parties). It found that inspection and mapping and surveying were the most used applications as demonstrated by the graphic below.

![](tbarchart_002.jpg)

<u>Source: Drone Industry Insights (September 2021)</u>

#### Our Solutions
We simplify the drone market into one powerful solution.

![](timage_002.jpg)

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We currently generate revenue by providing in-field drone services — deploying commercially available drone platforms and software through our team of professional pilots and sensor operators. In addition to these existing services, we are targeting revenue generation from five additional product offerings centered around the development of the Droneify platform and our future analytical and reporting software, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• commission fees for the Droneify platform, whereby we will take commission fees from the gross value for any work that is transacted on the platform;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• subscription fees for the Droneify platform, whereby we will offer tiers of subscriptions in exchange for access to more features and reduced commission fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• training fees, offering multiple levels of drone pilot training programs related to both flight performance and data processing and analytics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales of drone hardware, offering world-leading hardware solutions from hardware manufacturers globally, through which we will act as distributor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• subscriptions for future SaaS offerings, which will provide clients with our advanced analytical and reporting software and data management services for several industry verticals.

#### Drone Solutions
We deploy commercially available drone platforms and software through our team of professional pilots and sensor operators. In-field drone services are primarily focused on inspecting live or hard to reach assets and performing short-range aerial surveys within sectors such as oil and gas, power, utilities, construction, mining, infrastructure, and agriculture. We acquire a customer opportunity and assign the scope of work through service level agreements with professional pilots within the region where the work is required. We will then send the captured data for processing (3D model or map creation, inspection reporting, image editing) prior to client delivery. By this method, we have an efficient means of data collection not limited by physical presence and can grow our business more cost effectively.

We have been transitioning over time to a network model of drone operations, as opposed to physically scaling, by hiring drone pilots and opening offices in new geographies. As a company headquartered in Oakville, Ontario, it is not cost effective for us to conduct service in remote regions of Canada or the U.S. However, through service level agreements with pilots in those regions who may conduct those services on our behalf and under our brand, we are able to deploy the most efficient means of data collection. Furthermore, we intend to launch our Droneify platform in the second quarter of 2023, on which our clients and pilots will be able to set their own pricing.

The following chart summarizes a number of our recent client engagements:

---

| | |
|:---|:---|
|  **Client** | **Nature of Drone Services** |
|  Publicly traded international construction company | Quarterly progress tracking of public transportation/rail construction for project management purposes |
|  Publicly traded Canadian diversified freight company | Inspection of 550 telecommunications towers throughout 8 provinces in Canada and 15 states in the U.S. |
|  Private international insurance technology company | Residential roof inspections across Canada for the purpose of claim adjustments |
|  Publicly traded Canadian energy company | Inspection of wind turbine assets to assess damage and inform maintenance |

---

#### Data Analytics
Our analytics software has been under development since October 2017 to provide AI-powered object detection and classification from photo and video data. The key features of the software include browser-based cloud-hosting, data management, and AI analytics capabilities independent of third-party software requirements. The software platform is being designed to allow customers to receive, visualize, analyze, and generate reports on large amounts of information

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being populated by our drone platforms, without having to overcome the currently cumbersome process of receiving and moving large datasets. Furthermore, the software platform is being developed to support a variety of applications, including job posting. The software platform will be made available to customers and pilots on a standalone basis or on a SaaS basis, whereby clients may post jobs and interact with our professional network directly to carry out work. We will capture fees on all transactions through the platform. We intend to launch the Droneify platform in the second quarter of 2023.

#### Drone Hardware
We own intellectual property related to our C$2.5 million (approximately US$1.9 million) development project of the DX-3 Vanguard, a rapidly deployable vertical takeoff and landing transition drone built for heavy industry and military applications. We have conducted all research and product development activities and intend to redevelop existing intellectual property into a small-scale, commercially viable platform for early adopters, and to integrate analytics and data management capabilities onboard the hardware.

![](timage_003.jpg)

Redevelopment of existing hardware intellectual property will be completed via third party manufacturers and suppliers. We do not currently have agreements with any manufacturers or suppliers that obligate them to manufacture or supply hardware for us.

We also plan to act as a distributor for world-leading hardware solutions from hardware manufacturers, although we have not yet entered into any agreements for the distribution of drone hardware.

#### Competitive Strengths
We believe that the following competitive strengths contribute to our success and differentiate us from our competitors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Advanced technology solutions.*** Our plan is to provide one platform with all the hardware, insurance, and software features needed to start, run, or grow a drone business. We believe that introduction of our combined hardware and software solution will create a full turnkey solution to pipeline operators, engineering firms, general contractors, government/defense agencies, and insurance companies for inspection, surveying, and mapping operations. At the same time, a SaaS product offering will allow us to generate revenue from customers who do not require a hardware solution, providing advanced analytical and reporting software. We believe that our platform is a major differentiator amongst the competition, who typically focus on one of hardware, software or service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Strong brand recognition.*** Since our founding in 2015, we have gained significant brand recognition in North America. In March 2018, we were ranked by Drone Industry Insights as one of the top 20 drone operators globally and the top drone operator in Canada for inspections, mapping and surveying.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Large pilot network.*** We have built a pilot network spanning across Canada, the United States, Australia, the United Kingdom, and Malaysia. As of June 30, 2022, this network included approximately 3,000 pilots.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***• Large geographic footprint.*** Our network of pilots, present in every province in Canada and over 40 states in the United States, allows us to have capabilities "at scale" without the costs typically associated with growing a business into new geographies.

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#### Growth Strategies
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Focus on long***-term ***customers.*** We intend to focus on capturing long-term, recurring service contracts with firms across numerous market segments, building off existing ongoing strategic relationships. These relationships, which provide the ability to interface directly with end users, are expected to be critical building blocks for our long-term strategy. The ability to offer in-field drone services allows us to offer the whole value chain, from business problem to business solution via drone services, and in the future to amplify these solutions via continued hardware and software development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Geographic expansion.*** Leveraging our network pilots in North America, we believe that we are well positioned to provide oil and gas operators, engineering firms, general contractors, and insurance companies with various types of drone inspection and monitoring services (pipelines, refineries/plants, and offshore platforms), construction monitoring, surveying, mapping, and regulatory compliance scopes. Our network of pilots is expected to allow us to immediately service clients as we begin developing revenue generating client relationships in the United States, which will not only give us access to data streams that can be used to strengthen the development of our analytics software but also lay the foundation for anticipated future hardware deployments with those clients. We have a number of near-term business development opportunities of this nature that we are currently pursuing. Several key distribution relationships have been established in the past several years, further validating the platform and service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Rollout of Droneify platform.*** We believe that our existing business relationships will drive adoption of hardware and software once it becomes commercially available and facilitate the associated rollout of our Droneify SaaS platform. The introduction of our combined hardware and software solution would make available a robust and full turnkey solution to pipeline operators, engineering firms, general contractors, government/defense agencies, and insurance companies for inspection, surveying, and mapping operations. At the same time, a SaaS product offering will allow us to generate revenue from customers who do not require a hardware solution, providing advanced analytical and reporting software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Continued product development.*** The development and commercialization of a proprietary hardware offering and software platform, including our cloud-based, advanced AI-trained analytics software, is expected to lead to further opportunities both in terms of new applications within initial target markets as well as across new industry verticals.

#### Customers
Our current customers consist of companies in multiple commercial segments, including oil and gas, wind energy, electrical infrastructure, real estate, mining, construction, and media and entertainment. We have primarily sold our services directly to these types of customers in Canada and the United States.

For the year ended December 31, 2021, one customer, Aerodyne, accounted for approximately 80% of our revenue, and for the year ended December 31, 2020, one customer, C&G Mining Company Ltd., accounted for approximately 58% of our revenue. For the six months ended June 30, 2022, three customers, Golder Associates Ltd., Slate Asset Management, Inc. and Distrikt, accounted for approximately 38%, 11% and 10%, respectively, of our revenue, and for the six months ended June 30, 2021, two customers, Stantec and Distrikt, accounted for approximately 25% and 22%, respectively, of our revenue. No other customer accounted for more than 10% of our revenue during the years ended December 31, 2021 and 2020 or six months ended June 30, 2022 and 2021.

We generally do not have long-term contracts with our major customers. Most of our customers submit orders on a month-to-month basis. However, we have entered into agreements with two major customers that govern our relationships with them.

January 6, 2023, we entered into a teaming agreement with Aerodyne, pursuant to which we jointly pursue business opportunities related to both parties' solutions and services in Canada on the basis of individual projects. Neither party is required perform any specific service under this agreement, except under such individual projects. The agreement provides that the parties will submit proposals for projects and jointly execute the secured projects with the details of each project, including the scope of services, project duration and payment terms, set forth in a project schedule

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signed to by the parties. Once a project schedule is signed, the agreement provides that neither party will work with nor assist any other entities or bidders on the same projects and/or for the same customers. The agreement is for a term of two years and will terminate upon the parties executing a definitive service agreement or upon an equity investment in our company by Aerodyne. Either party may also terminate the agreement upon 30 days' notice (although such termination shall not terminate any existing project schedules). In addition, either party may terminate the agreement and/or any project schedule immediately if (i) the other party materially breaches any term of the agreement or any project schedule and such breach is not remedied within 30 days, or cannot by its nature be remedied, or (ii) the other party becomes or is deemed insolvent, makes or offers to make any arrangement or composition with creditors, winds up its business, or is subject to any proceeds which are equivalent to the foregoing.

On May 11, 2022, we entered into a master subcontract agreement with WSP Canada Inc., an affiliate of Golder Associates Ltd., pursuant to which we provide drone services to Golder Associates Ltd. on the basis of individual work orders. Golder Associates Ltd. is not obligated to request any services under this agreement, and we may reject any work order received. This agreement requires that we perform all services consistent with the level of care, skill and diligence ordinarily exercised by other qualified and experienced drone services companies operating under similar conditions and in accordance with applicable laws, rules and regulations. The agreement also specifies certain insurance coverage that we must maintain. The term of the agreement is for a period of two years and will automatically renew for successive one-year periods; provided that WSP Canada Inc. may terminate the agreement at any time.

As noted above, we do not have a long-term contract with any major customer that requires the customer to purchase our services and the loss of any major customer could have a material adverse effect on our results of operations. See also "*Risk Factors — Risks Related to our Business and Industry — Our major customers account for a significant portion of our revenue and the loss of any major customer could have a material adverse effect on our results of operations.*"

#### Seasonality
Our sales can be seasonal within certain geographies. For example, drone marketing work is more common during the summer months in temperate climates, and less common in the winter months where snow may be present.

#### Sales and Marketing
We plan to bring our technology and services to market via the following methods:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• targeting heavy industry clients who require enterprise hardware capabilities and sophisticated services and analytics software;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• direct sales via responding the request for proposals in various markets globally, and utilizing the growing pilot network to execute on those projects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• forming strategic partnerships in specific verticals such as wind and telco, or applications such as hardware or software;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• leveraging the Droneify platform to develop superior software and artificial intelligence, fueling the SaaS platform; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• digital marketing campaigns both paid (pay-per-click, display ads) and organic (search engine optimization, blogs).

We have launched a three year sales and marketing strategy focused on building a sales and distribution channels with key partners and customers, with a view towards eventually leveraging this channel to upsell customers on hardware and software offerings.

#### Competition
The drone industry is evolving rapidly and is highly competitive. Our competitors include other providers of drone hardware, software and analytics and data management, such as DroneDeploy Inc., PrecisionHawk, AeroVironment, Inc. (AVAV), AgEagle Arial Systems Inc. (UAVS), DJI and Insitu Inc.

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Our success depends, in part, on our ability to be efficient in all aspects of the business and achieve the appropriate cost structure. Some of our competitors have economic resources greater than ours and may have lower cost structures allowing them to better withstand volatility within the industry and throughout the economy as a whole, while retaining significantly greater operating and financial flexibility than our company.

The drone market is complex, with many components — pilots, software, analytics, storage, hardware, licensing, reporting, payments, laws and more. Our strategy is to provide a solution that includes all of those elements in an easy to understand and simple web-based platform.

#### Research and Development
For the years ended December 31, 2021 and 2020, we spent $5,014 and $116,619, respectively, on research and development activities related to software development costs of the Droneify platform.

In December 2019, we entered into a discovery engagement agreement with Torinit, a digital product development company, to provide us with software development assistance for our platform. The first stage of development — the discovery phase — was completed in 2020. Pursuant to the discovery engagement agreement, we paid Torinit C$122,040 (approximately US$94,818) upon completion of the discovery phase. The next stage of development is related to beta testing and launching the platform, which requires additional financing, and we plan to enter into a formal agreement with Torinit for that stage once we have such financing.

A core component of our business strategy is the focused development and commercialization of innovative solutions that we believe can become new products or services that enable us to create large new markets or accelerate the growth of our current markets. We cannot predict when, if ever, we will successfully commercialize any projects, or the exact level of capital expenditures they could require, which could be substantial.

#### Intellectual Property
Our success depends, in large part, on our ability to protect our intellectual property and other proprietary rights. We protect our proprietary rights through a combination of copyright, trademark and trade secret laws as well as contractual provisions. In particular, the source code for our software is protected under Canadian and U.S. copyright laws. We have not sought any patent protection for any of our intellectual property but, going forward, will evaluate opportunities to obtain patents on those aspects of our intellectual property that are eligible for this kind of protection.

We also protect our intellectual property and proprietary information by our practice of requiring employees and consultants to execute non-disclosure and assignment of intellectual property agreements. Such agreements require employees and consultants to assign to us all intellectual property developed in the course of their employment or engagement, as applicable. We also utilize non-disclosure agreements to govern interactions with business partners and prospective business partners and other relationships where disclosure of proprietary information may be necessary.

On August 1, 2015, we entered into a license arrangement with a third party based in Vancouver, Canada, pursuant to which the third party was granted an exclusive license to use the "Sky Guys" name within the Vancouver area in exchange for a specified licensing fee and an ongoing maintenance fee based on the gross sales generated by the third party licensee.

#### Facilities
Our corporate headquarters is located at 103-482 South Service Road East, Oakville, ON Canada L6J 2X6. We lease this facility pursuant to a lease agreement, dated March 29, 2021. The term of the lease commenced on June 1, 2021 and continues on a month-to-month basis until terminated by either party upon sixty (60) days' notice. The lease provides for a base rent of C$3,051 (approximately US$2,370) per month.

We believe that all our properties have been adequately maintained, are generally in good condition, and are suitable and adequate for our businesses.

#### Employees
As of June 30, 2022, we had 2 full-time employees and 3 part-time employees. None of our employees are represented by labor unions, and we believe that we have an excellent relationship with our employees.

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#### Legal Proceedings
From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, 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. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results.

#### Government Regulation
We are subject to various federal, state and local laws and governmental regulations relating to the operation of our business, including those related drone operations, labor and employment, data privacy and taxes. Compliance with any such laws and regulations has not had a material adverse effect on our operations to date. Below is a summary of some of the material regulations applicable to our business.

#### Drone Regulation in Canada
Transport Canada is responsible for establishing, managing, and developing safety and security standards and regulations for civil aviation in Canada, and includes unmanned civil aviation. Civil operations include law enforcement, scientific research, or use by private sector companies for commercial purposes. The Canadian Aviation Regulations govern civil aviation safety and security in Canada, and by extension govern operation of drones in Canada to an acceptable level of safety.

Transport Canada continues to be a leader in the development of regulations for the commercial use of drones and continues to move forward rapidly with its regulatory development. It is expected that new regulations permitting BVLOS operations will be published by Transport Canada in the fourth quarter of 2022. These rules will permit routine operations of more complex flights (including heavier aircraft, BVLOS operations, etc.) without requiring specific requirements, eliminating the need to request specific approvals for such operations. This will reduce the overall regulatory risk for such operations.

Although failure to obtain necessary regulatory approvals from Transport Canada or other governmental agencies, including the granting of certain permits, or limitations put on the use of drones in response to public safety concerns, may prevent us from testing or operating its aircraft and/or expanding its sales which could have an adverse impact on our business, prospects, results of operations and financial condition, it is anticipated that the advancement of Transport Canada's new regulations will mitigate these risks.

#### Drone Regulation in the United States
Our drone operations in the United States will be subject to regulations of the FAA. On June 21, 2016, the FAA announced it had finalized the first operational rules for routine commercial use of small UAS, which for purposes of the regulations are unmanned aircraft weighing less than 55 pounds that are conducting non-hobbyist operations. UAS operators-for-hire will have to pass a written test and be vetted by the Transportation Security Administration but no longer need to be airplane pilots as current law requires. The rules went into effect on August 20, 2016.

On March 10, 2022, the FAA's Unmanned Aircraft Systems BVLOS Aviation Rulemaking Committee, or the ARC, tendered its final report to the FAA, recommending significant changes to the FAA's regulations for UAS. The central mission of the ARC was to develop recommendations for regulations that would better support and promote the development of BVLOS operations.

To that end, the ARC suggested several broad changes to ensure the safe expansion of BVLOS UAS operations. First and foremost, the ARC proposed that the FAA reframe its regulations based on the level of risk acceptable in the use of UAS broadly, rather than trying to create regulations to address specific types of operations. The goal of this approach would be to eliminate the kind of inconsistencies and opacity that may result from the case-by-case waiver approach the FAA has adopted to date. Such an approach would provide clear guidance for regulators while allowing operators to determine the means of compliance that best fit their operations, whether that be through qualitative or quantitative methods, or a hybrid approach.

The ARC's proposal also includes new rules regarding the right of way. In areas considered "shielded" (within 100 feet of a structure or a critical infrastructure), UAS will have the right of way over other forms of aircraft. Under this proposed rule, UAS will enjoy an operational space that is largely free of crewed aircraft, as a UAS that is operating within the boundaries of a structure or obstacle would be considered part of the structure or obstacle.

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Separately, whether a crewed aircraft must yield to a UAS in "non-shielded" areas that are low altitude (below 400 feet) will depend on whether the crewed aircraft is equipped with an ADS-B transmitter or TABS broadcasting their position. If so, then the aircraft will have the right of way over drones in non-shielded low-altitude areas; but if the crewed aircraft is not equipped with ADS-B or TABS, then the drone maintains the right of way in those areas. The ARC stated that the purpose of this rule is to improve safety by encouraging the use of ADS-B and TABS systems in low-altitude areas.

While the FAA has recently imposed strict rules on drone operations by requiring they broadcast remote ID information, the ARC's proposal reflects a desire to loosen the regulations in other areas. Very soon, drone manufacturers and operators will be required to comply with the new Remote ID rule (there is a compliance date of September 16, 2022 for manufacturers and September 16, 2023 for operators). The ARC's proposal, if codified, will undoubtedly create exciting new opportunities for drone operators within the United States.

#### Data Privacy
In connection with our business, we receive, collect, process and retain certain sensitive and confidential customer information. As a result, we are subject to increasingly rigorous laws regarding privacy and data protection. Personal privacy, data protection and information security are significant issues in Canada, the United States and the other jurisdictions where we plan to offer our products and services. The regulatory framework for privacy and security issues worldwide is rapidly evolving and is likely to remain uncertain for the foreseeable future. Our handling of data is subject to a variety of laws and regulations, including regulation by various government agencies, such as, in the United States, the United States Federal Trade Commission, and various state, local and foreign bodies and agencies, and in Canada, the Office of the Privacy Commissioner of Canada and various provincial bodies and agencies.

The Canadian federal and various state and foreign governments have adopted or proposed limitations on the collection, distribution, use and storage of personal information of individuals, including end-customers and employees. In Canada, the Office of the Privacy Commissioner of Canada and many state attorneys general are applying federal and state consumer protection laws to the online collection, use and dissemination of data. Additionally, many foreign countries and governmental bodies, and other jurisdictions in which we operate or conduct our business, have laws and regulations concerning the collection and use of personal information obtained from their residents or by businesses operating within their jurisdiction. These laws and regulations often are more restrictive than those in Canada. Such laws and regulations may require companies to implement new privacy and security policies, permit individuals to access, correct and delete personal information stored or maintained by such companies, inform individuals of security breaches that affect their personal information, and, in some cases, obtain individuals' consent to use personal information for certain purposes.

We also expect that there will continue to be new proposed laws, regulations and industry standards concerning privacy, data protection and information security in Canada, the United States, the European Union and other jurisdictions, and we cannot yet determine the impact of such future laws, regulations and standards may have on our business. Additionally, we expect that existing laws, regulations and standards may be interpreted differently in the future. There remains significant uncertainty surrounding the regulatory framework for the future of personal data transfers with regulations such as the recently adopted GDPR, which imposes more stringent E.U. data protection requirements, provides an enforcement authority, and imposes large penalties for noncompliance. Future laws, regulations, standards and other obligations, including the adoption of the GDPR, as well as changes in the interpretation of existing laws, regulations, standards and other obligations could impair our ability to collect, use or disclose information relating to individuals, which could decrease demand for our products, require us to restrict our business operations, increase our costs and impair our ability to maintain and grow our customer base and increase our revenue.

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#### MANAGEMENT

#### Directors and Executive Officers
The following table sets forth certain information regarding our directors and executive officers.

---

| | | |
|:---|:---|:---|
|  **NAME** | **AGE** | **POSITION** |
|  Adam Sax | 37 | Chief Executive Officer, President and Director |
|  Tom Hanson | 34 | Chief Operating Officer and Director |
|  Scott J. Silverman | 53 | Chief Financial Officer |
|  Stuart W. Henderson | 60 | Director |
|  Ian M. Hull | 49 | Director |
|  Larry Goldman | 65 | Director<sup>(1)</sup> |

---

____________

(1) Appointed to our board of directors effective automatically upon the effectiveness of the registration statement of which this prospectus forms a part.

***Adam Sax.*** Mr. Sax has served as our Chief Executive Officer and President since January 2023, as a member of our board of directors since our inception and has served as the Chief Executive Officer, President and director of Droneify since its inception. Mr. Sax is an entrepreneur, technological visionary, investor, and speaker. With deep roots in technology, Mr. Sax started his first company at the age of 13 and has since founded and grown several successful companies ranging from internet businesses to real estate brokerages to global development firms. He has been featured on Dragons' Den, BNN, 24 Hours, Globe & Mail, Newstalk 1010, BetaKit, Toronto Star, BlogTO and BuzzBuzzHome, and is an ongoing contributor to Urban Toronto and Metro News.

***Tom Hanson.*** Mr. Hanson has served as our Chief Operating Officer and as a member of our board of directors since January 2023 and has served as the Chief Operating Officer of Droneify since July 2015. Mr. Hanson has over 10 years of experience in management, business development and high-growth service operations, having worked with national firms specializing in digital asset management, IT solutions and technology. Prior to joining us, his management experience included Workflow Manager of Wadetech Group of Companies (digital asset management for the architecture, engineering and construction industry), now part of Astley Gilbert Ltd. Mr. Hanson has been featured on Dragons' Den, CBC, BNN, 24 Hours, Globe & Mail, CP24, Newstalk 1010, BetaKit, Toronto Sun, Urban Toronto, Metro News and various industry journals. Mr. Hanson has a Bachelor of Science degree from the University of Guelph.

***Scott J. Silverman*.** Mr. Silverman has served as our Chief Financial Officer since January 2023 and has served as the Chief Financial Officer of Droneify since August 2022. Mr. Silverman has also been the Chief Executive Officer of EverAsia Financial Group, Inc., a business and accounting consulting company, since September 2007, and the Chief Financial Officer of Healthsnap, Inc., a private telehealth company, since September 2018. Since 2019, Mr. Silverman has also been a partner and Chief Executive Officer of JJL Capital Management, LLC, a private equity and corporate management firm. Mr. Silverman is in the process of winding down his consulting engagements with these companies and intends to devote his full business time to our company as soon as possible, but no later than the effective date of the registration statement of which this prospectus forms a part. From December 2019 to December 2022, he served as the Chief Financial Officer of Riverside Miami, LLC, a restaurant and entertainment complex. From August 2021 to April 2022, he served as the Chief Financial Officer of Sidus Space, Inc., a Nasdaq-listed vertically integrated provider of Space-as-a-Service solutions. From December 2018 to September 2020, Mr. Silverman was Chief Financial Officer of Jade Global Holdings, Inc., a jewelry and sales collectible company. Mr. Silverman is a member of the Board of Directors of China Xiangtai Food Co. Ltd. and is a director elect of Muliang Agritech, Inc and Li Bang International Corp, Inc. He has a bachelor's degree in finance from George Washington University and a Master's degree in accounting from NOVA Southeastern University.

***Stuart W. Henderson*.** Mr. Henderson has served as a member of our board of directors since January 2023 and has served as a member of the board of directors of Droneify since May 2017. Mr. Henderson is a lawyer based in Oakville, Ontario specializing in wills and estates, real estate, matrimonial and corporate commercial law. He founded his law firm, Stuart Henderson Law, in 1989. He obtained his Honours of History Degree from the University of Western Ontario and Law Degree from Queen's University along with his Mediation Certificate from the Harvard Negotiation Institute at Harvard Law School. His professional recognition includes being the past Chair of the Town of Oakville's Heritage Oakville and Heritage Review Committees and past Vice-Chair and Chair of the Conservation Review Board of Ontario. He is also a presiding Deputy Judge of the Ontario Small Claims Court, Provincial Division.

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***Ian M. Hull*.** Mr. Hull has served as a member of our board of directors since January 2023 and has served as a member of the board of directors of Droneify since September 2017. Mr. Hull is Co-Founding Partner of Hull & Hull LLP, a Toronto-based law firm focused on estate, trust and capacity litigation, mediation and estate planning, where he has worked since 1998. Mr. Hull is an Estates and Trusts Law Certified Specialist and Civil Litigation Certified Specialist and was admitted to the Ontario Bar in 1990. He has authored numerous legal texts and articles relating to trusts and estates and is a member of Canadian Bar Association, The Advocates' Society and the Editorial Advisory Board of the Canadian Estate Administration Guide and a former member of the Executive of the Trusts and Estates Section of the Ontario Bar Association, Metropolitan Toronto Lawyers Association, Halton County Law Association, Society of Trusts and Estates Practitioners (STEP) and fellow of the American College of Trust and Estate Counsel (ACTEC).

***Larry Goldman.*** Mr. Goldman has been appointed to our board of directors effective automatically upon the effectiveness of the registration statement of which this prospectus forms a part. Since September 2018, Mr. Goldman has served as the Chief Financial Officer of Lightbridge Corporation, a Nasdaq-listed nuclear fuel technology company. Prior to that, he worked with Lightbridge Corporation as a consultant since 2006 and served as its Chief Accounting Officer since 2015. From 1985 to 2004, Mr. Goldman was an Audit Assurance Partner for Livingston Wachtell & Co., LLP, a New York City CPA firm, with over 20 years' experience in assurance, tax and advisory services. Since September 2004, Mr. Goldman had also provided consulting services to numerous public companies on various financial projects and has government contracting accounting experience. Mr. Goldman has an M.S. degree in Taxation from Pace University and a Bachelor's degree in Business Administration with a concentration in Accounting. Mr. Goldman is a member of the New York State Society of CPAs and serves on its CFO Committee. He served on the SEC Practice Committee and the Management Consulting Committee. He has been published in the New York CPA Journal. He is a member of the American Institute of Certified Public Accountants.

No family relationship exists between any of our directors and executive officers. There are no arrangements or understandings with major shareholders, customers, suppliers or others pursuant to which any person referred to above was selected as a director or member of senior management.

#### Board of Directors
Nasdaq's listing rules generally require that a majority of an issuer's board of directors must consist of independent directors. Our board of directors currently consists of three (3) directors, two (2) of whom, Messrs. Henderson and Hull, are independent within the meaning of Nasdaq's rules. We have entered into an independent director agreement with Larry Goldman, pursuant to which he has been appointed to serve as an independent director effective automatically upon the effectiveness of the registration statement of which this prospectus forms a part. As a result of these appointments, our board of directors will consist of five (5) directors, three (3) of whom will be independent within the meaning of the Nasdaq's rules.

A director is not required to hold any shares in our company to qualify to serve as a director.

#### Board Committees
Prior to the effective date of the registration statement of which this prospectus forms a part, we plan to establish a standing audit committee, compensation committee and nominating and corporate governance committee of our board of directors. We intend to adopt a charter for each of the three committees. Each committee's members and functions are described below.

#### Audit Committee
Our audit committee will consist of Stuart W. Henderson, Ian M. Hull and Larry Goldman, each of whom will satisfy the "independence" requirements of Rule 10A-3 under the Exchange Act and Nasdaq's rules, with Mr. Goldman serving as chair of the audit committee. Our board has determined that Mr. Goldman qualifies as an "audit committee financial expert." The audit committee will oversee our accounting and financial reporting processes and the audits of the financial statements of our company.

The audit committee will be responsible for, among other things: (i) retaining and overseeing our independent accountants; (ii) assisting the board in its oversight of the integrity of our financial statements, the qualifications, independence and performance of our independent auditors and our compliance with legal and regulatory requirements;

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(iii) reviewing and approving the plan and scope of the internal and external audit; (iv) pre-approving any audit and non-audit services provided by our independent auditors; (v) approving the fees to be paid to our independent auditors; (vi) reviewing with our chief executive officer and chief financial officer and independent auditors the adequacy and effectiveness of our internal controls; (vii) reviewing and approving related party transactions (viii) reviewing hedging transactions; and (ix) reviewing and assessing annually the audit committee's performance and the adequacy of its charter.

#### Compensation Committee
Our compensation committee will consist of Stuart W. Henderson, Ian M. Hull and Larry Goldman, each of whom will satisfy the "independence" requirements of Rule 10A-3 under the Exchange Act and Nasdaq's rules, with Mr. Henderson serving as chair of the compensation committee. The compensation committee will assist the board in reviewing and approving the compensation structure, including all forms of compensation, relating to our directors and executive officers.

The compensation committee will be responsible for, among other things: (i) reviewing and approving the remuneration of our executive officers; (ii) making recommendations to the board regarding the compensation of our independent directors; (iii) making recommendations to the board regarding equity-based and incentive compensation plans, policies and programs; and (iv) reviewing and assessing annually the compensation committee's performance and the adequacy of its charter.

#### Nominating and Corporate Governance Committee
Our nominating and corporate governance committee will consist of Stuart W. Henderson, Ian M. Hull and Larry Goldman, each of whom will satisfy the "independence" requirements of Rule 10A-3 under the Exchange Act and Nasdaq's rules, with Mr. Hull serving as chair of the nominating and corporate governance committee. The nominating and corporate governance committee will assist the board of directors in selecting individuals qualified to become our directors and in determining the composition of the board and its committees.

The nominating and corporate governance committee will be responsible for, among other things: (i) identifying and evaluating individuals qualified to become members of the board by reviewing nominees for election to the board submitted by shareholders and recommending to the board director nominees for each annual meeting of shareholders and for election to fill any vacancies on the board; (ii) advising the board with respect to board organization, desired qualifications of board members, the membership, function, operation, structure and composition of committees (including any committee authority to delegate to subcommittees), and self-evaluation and policies; (iii) advising on matters relating to corporate governance and monitoring developments in the law and practice of corporate governance; and (iv) overseeing compliance with the our code of ethics.

The nominating and corporate governance committee's methods for identifying candidates for election to our board of directors will include the solicitation of ideas for possible candidates from a number of sources — members of our board of directors, our executives, individuals personally known to the members of our board of directors, and other research. The nominating and corporate governance committee may also, from time-to-time, retain one or more third-party search firms to identify suitable candidates.

In making director recommendations, the nominating and corporate governance committee may consider some or all of the following factors: (i) the candidate's judgment, skill, experience with other organizations of comparable purpose, complexity and size, and subject to similar legal restrictions and oversight; (ii) the interplay of the candidate's experience with the experience of other board members; (iii) the extent to which the candidate would be a desirable addition to the board and any committee thereof; (iv) whether or not the person has any relationships that might impair his or her independence; and (v) the candidate's ability to contribute to the effective management of our company, taking into account the needs of our company and such factors as the individual's experience, perspective, skills and knowledge of the industry in which we operate.

#### Duties of Directors
Under Cayman Islands law, our directors have a fiduciary duty to our company to act honestly, in good faith and with a view to our best interests. Our directors also owe to our company a duty to act with skill and care. It was previously considered that a director need not exhibit in the performance of his duties a greater degree of skill than may reasonably

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be expected from a person of his knowledge and experience. However, English and Commonwealth courts have moved towards an objective standard with regard to the required skill and care and these authorities are likely to be followed in the Cayman Islands. In fulfilling their duty of care to us, our directors must ensure compliance with our amended and restated memorandum and articles of association. Our company has the right to seek damages if a duty owed by our directors is breached. In limited exceptional circumstances, a shareholder may have the right to seek damages in our name if a duty owed by our directors is breached. You should refer to "*Description of Share Capital — Differences in Corporate Law*" for additional information on our standard of corporate governance under Cayman Islands law.

A director who is in any way, whether directly or indirectly, interested in a contract or proposed contract with our company is required to declare the nature of his interest at a meeting of our directors. A director may vote in respect of any contract, proposed contract, or arrangement notwithstanding that such director may be interested therein, and if such director does so, such director's vote shall be counted and such director may be counted in the quorum at any meeting of our directors at which any such contract or proposed contract or arrangement is considered.

Our board of directors may exercise all the powers of our company to borrow money, mortgage or charge its undertaking, property and uncalled capital, and to issue debentures, bonds and other securities whenever money is borrowed or as security for any debt, liability or obligation of the company or of any third party.

The functions and powers of our board of directors include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• convening shareholders' annual general meetings and reporting its work to shareholders at such meetings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• declaring dividends and distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• appointing officers and determining the term of office of officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exercising the borrowing powers of our company and mortgaging the property of our company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approving the transfer of shares of our company, including the registering of such shares in our share register.

#### Terms of Directors and Officers
Our officers are elected by and serve at the discretion of our board of directors. Our directors are not subject to a term of office and hold office until such time as they are removed from office by ordinary resolution of the shareholders or by the board of directors. A director will be removed from office automatically if, among other thing, the director (i) dies; (ii) becomes bankrupt or makes any arrangement or composition with his creditors generally; (iii) is found to be or becomes of unsound mind; (iv) resigns his office by notice in writing to our company; (v) is prohibited by law from being a director; and (vi) is removed from the office pursuant to any other provisions of our amended and restated memorandum of association and articles of association.

#### Employment, Consulting and Indemnification Agreements
On October 25, 2018, Droneify entered into an employment agreement with Adam Sax, our Chief Executive Officer, setting forth the terms of Mr. Sax's employment. Pursuant to the terms of the employment agreement, we agreed to pay Mr. Sax an annual base salary of $165,000 and he is eligible for an annual incentive bonus of up to $40,000, as determined by our board of directors. The term of the employment agreement is indefinite and may be terminated by us at any time or by Mr. Sax upon two (2) months' written notice. If Mr. Sax's employment is terminated by us without just cause (as defined in the employment agreement), then, subject to Mr. Sax's execution of a release in favor of our company and his compliance with all obligations set forth in the employment agreement, he will be entitled to severance equal to his base salary for a period equal to (6) months following the date of termination, plus one (1) additional month per year of his completed employment, up to a maximum of twelve (12) months in the aggregate, and he will be eligible for an annual incentive bonus prorated to the date of termination, as determined by the board in its sole discretion. The employment agreement contains customary confidentiality and invention assignment provisions and restrictive covenants prohibiting Mr. Sax from (i) providing services in any capacity (as an employee, consultant, independent contractor, partner, principal, agent or advisor), or having any financial interest in, any business that competes with our company for a period of six (6) months following termination of his employment or (ii) soliciting any person employed or engaged by our company and its affiliates, or any customers, clients or other business relationships of our company and its affiliates, for a period of twelve (12) months following the termination of his employment.

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On October 7, 2017, Droneify entered into an employment agreement with Tom Hanson, our Chief Operating Officer, setting forth the terms of Mr. Hanson's employment, which was amended on August 19, 2019. Pursuant to the terms of the employment agreement, as amended, we agreed to pay Mr. Hanson an annual base salary of C$150,000 (approximately US$116,541) and he is eligible for an annual incentive bonus of up to C$30,000 (approximately US$23,308), as determined by our board of directors and subject to certain criteria set forth in the employment agreement. The term of the employment agreement is indefinite and may be terminated by us at any time upon two (2) weeks' notice or by Mr. Hanson upon four (4) weeks' written notice. We may also terminate the employment agreement immediately for just cause (as defined in the employment agreement). The employment agreement contains customary confidentiality and invention assignment provisions and restrictive covenants prohibiting Mr. Hanson from (i) directly or indirectly, as employee, owner, sole proprietor, partner, director, member, consultant, agent, founder, co-venturer or otherwise, solely or jointly with others, engaging in, or giving advice or lending money to, any business that completes with our company or (ii) soliciting our employees, in each case for a period of two (2) years following termination of his employment.

On February 6, 2023, we entered into an employment agreement with Scott Silverman, our Chief Financial Officer, setting for the terms of Mr. Silverman's employment, which will become effective on the effective date of the registration statement of which this prospectus forms a part. Pursuant to the terms of the employment agreement, we agreed to pay Mr. Silverman an annual base salary of $150,000 and he is eligible for an annual incentive bonus based on his performance and the performance of our company as determined by our board of directors. The term of the employment agreement is indefinite and may be terminated by us or Mr. Silverman at any time upon thirty (30) days' written notice or by us immediately for cause (as defined in the employment agreement). If we terminate the employment agreement without cause, then Mr. Silverman is entitled to severance in an amount equal to the base salary for three (3) months, payable in a lump sum on the termination date, and all previously earned, accrued, and unpaid benefits. The employment agreement contains customary confidentiality provisions and restrictive covenants prohibiting Mr. Silverman from competing with our business or soliciting our employees, consultants or customers for a period of one (1) year following termination of his employment. Prior to entering into the employment agreement, Mr. Silverman was a consultant of our company. See "*Related Party Transactions*" for a description of the consulting agreement.

We have entered into indemnification agreements with our directors and executive officers, pursuant to which we have agreed to indemnify our directors and executive officers against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being such a director or officer.

#### Compensation of Directors and Officers
Currently, there are no requirements for disclosure of the compensation of officers and directors on an individual basis for our most recently completed fiscal year under Cayman Islands law. For the fiscal year ended December 31, 2021, we paid aggregate cash compensation of C$75,684 (approximately US$58,802) to our directors and executive officers as a group. We did not pay any other cash compensation or benefits in kind to our directors and executive officers. We have not set aside or accrued any amount to provide pension, retirement or other similar benefits to our directors and executive officers. Our board of directors may determine compensation to be paid to the directors and the executive officers. The compensation committee will assist the directors in reviewing and approving the compensation structure for the directors and the executive officers. For information regarding share awards granted to our directors and executive officers, see "— *Share Options*" below.

#### Share Options
In connection with the restructuring that we completed on September 23, 2022, we assumed Droneify's share option plan and the options granted under such plan. As of the date of this prospectus, we have granted options for the purchase of 472,944 ordinary shares under this plan, including the following options to our directors and executive officers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 1, 2018, Droneify granted an option for the purchase of 56,171 shares at an exercise price of C$1.87 (approximately US$1.45) to Adam Sax, with 25% of the options vesting on the first anniversary of the date of grant and 1/48 of the options vesting monthly at the end of each month following the vesting start date, which such options expire on February 1, 2028.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 1, 2018, Droneify granted an option for the purchase of 56,171 shares at an exercise price of C$1.87 (approximately US$1.45) to Tom Hanson, with 25% of the options vesting on the first anniversary of the date of grant and 1/48 of the options vesting monthly at the end of each month following the vesting start date, which such options expire on February 1, 2028.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On June 15, 2022, Droneify granted an option for the purchase of 141,000 shares at an exercise price of C$1.37 (approximately US$1.06) to Adam Sax, with 25% of the options vesting on the first anniversary of the date of grant and 1/48 of the options vesting monthly at the end of each month following the vesting start date, which such options expire on June 15, 2032.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On June 15, 2022, Droneify granted an option for the purchase of 105,000 shares at an exercise price of C$1.37 (approximately US$1.06) to Tom Hanson, with 25% of the options vesting on the first anniversary of the date of grant and 1/48 of the options vesting monthly at the end of each month following the vesting start date, which such options expire on June 15, 2032.

#### 2022 Equity Incentive Plan
On December 30, 2022, our board of directors adopted the Droneify Holdings Limited 2022 Equity Incentive Plan, or the 2022 Plan. The following is a summary of certain significant features of the 2022 Plan. The information which follows is subject to, and qualified in its entirety by reference to, the 2022 Plan document itself, which is filed as an exhibit to the registration statement of which this prospectus forms a part.

***Purposes of Plan:*** The purposes of the 2022 Plan are to attract and retain officers, employees and directors for our company and its subsidiaries; motivate them by means of appropriate incentives to achieve long-range goals; provide incentive compensation opportunities; and further align their interests with those of our shareholders through compensation that is based on our ordinary shares.

***Types of Awards:*** Awards that may be granted include: (a) incentive share options, (b) non-qualified share options, (c) share appreciation rights, (d) restricted awards, (e) performance share awards, and (f) performance compensation awards. These awards offer our officers, employees, consultants and directors the possibility of future value, depending on the long-term price appreciation of our ordinary shares and the award holder's continuing service with our company.

***Administration of the Plan:*** The 2022 Plan is currently administered by our board of directors and will be administered by our compensation committee upon its establishment. Among other things, the administrator has the authority to select persons who will receive awards, determine the types of awards and the number of shares to be covered by awards, and to establish the terms, conditions, performance criteria, restrictions and other provisions of awards. The administrator has authority to establish, amend and rescind rules and regulations relating to the 2022 Plan.

***Eligible Recipients:*** Persons eligible to receive awards under the 2022 Plan will be those officers, employees, consultants, and directors of our company and its subsidiaries who are selected by the administrator.

***Shares Available Under the Plan:*** The maximum number of our ordinary shares that may be delivered to participants under the 2022 Plan is 500,000, subject to adjustment for certain corporate changes affecting the shares, such as share splits. Shares subject to an award under the 2022 Plan for which the award is canceled, forfeited or expires again become available for grants under the 2022 Plan. Shares subject to an award that is settled in cash will not again be made available for grants under the 2022 Plan.

***Share Options:***

*General.* Share options give the option holder the right to acquire from us a designated number of ordinary shares at a purchase price that is fixed upon the grant of the option. Share options granted may be either tax-qualified share options (so-called "incentive share options") or non-qualified share options. Subject to the provisions of the 2022 Plan, the administrator has the authority to determine all grants of options. That determination will include: (i) the number of shares subject to any option; (ii) the exercise price per share; (iii) the expiration date of the option; (iv) the manner, time and date of permitted exercise; (v) other restrictions, if any, on the option or the shares underlying the option; and (vi) any other terms and conditions as the administrator may determine.

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*Option Price.* The exercise price for share options will be determined at the time of grant. Normally, the exercise price will not be less than the fair market value on the date of grant. As a matter of tax law, the exercise price for any incentive share option awarded may not be less than the fair market value of the shares on the date of grant. However, incentive share option grants to any person owning more than 10% of our voting shares must have an exercise price of not less than 110% of the fair market value on the grant date.

*Exercise of Options.* An option may be exercised only in accordance with the terms and conditions for the option agreement as established by the administrator at the time of the grant. The option must be exercised by notice to us, accompanied by payment of the exercise price. Payments may be made in cash or, at the option of the administrator, by actual or constructive delivery of ordinary shares to the holder of the option based upon the fair market value of the shares on the date of exercise.

*Expiration or Termination.* Options, if not previously exercised, will expire on the expiration date established by the administrator at the time of grant. In the case of incentive share options, such term cannot exceed ten years provided that in the case of holders of more than 10% of our voting shares, such term cannot exceed five years. Options will terminate before their expiration date if the holder's service with our company or a subsidiary terminates before the expiration date. The option may remain exercisable for specified periods after certain terminations of employment, including terminations as a result of death, disability or retirement, with the precise period during which the option may be exercised to be established by the administrator and reflected in the grant evidencing the award.

*Incentive and Non*-Qualified *Options.* As described elsewhere in this summary, an incentive share option is an option that is intended to qualify under certain provisions of the U.S. Internal Revenue Code of 1986, as amended, or the Code, for more favorable tax treatment than applies to non-qualified share options. Any option that does not qualify as an incentive share option will be a non-qualified share option. Under the Code, certain restrictions apply to incentive share options. For example, the exercise price for incentive share options may not be less than the fair market value of the shares on the grant date and the term of the option may not exceed ten years. In addition, an incentive share option may not be transferred, other than by will or the laws of descent and distribution, and is exercisable during the holder's lifetime only by the holder. In addition, no incentive share options may be granted to a holder that is first exercisable in a single year if that option, together with all incentive share options previously granted to the holder that also first become exercisable in that year, relate to shares having an aggregate fair market value in excess of $100,000, measured at the grant date.

***Share Appreciation Rights:*** Share appreciation rights, or SARs, which may be granted alone or in tandem with options, have an economic value similar to that of options. When a SAR for a particular number of shares is exercised, the holder receives a payment equal to the difference between the market price of the shares on the date of exercise and the exercise price of the shares under the SAR. Again, the exercise price for SARs normally is the market price of the shares on the date the SAR is granted. Under the 2022 Plan, holders of SARs may receive this payment — the appreciation value — either in cash or ordinary shares valued at the fair market value on the date of exercise. The form of payment will be determined by us.

***Restricted Share Awards:*** Restricted shares are ordinary shares awarded to participants at no cost. Restricted shares can take the form of awards of restricted shares, which represent issued and outstanding ordinary shares subject to vesting criteria, or restricted share units, which represent the right to receive ordinary shares subject to satisfaction of the vesting criteria. Restricted shares are forfeitable and non-transferable until the shares vest. The vesting date or dates and other conditions for vesting are established when the shares are awarded. These awards will be subject to such conditions, restrictions and contingencies as the administrator shall determine at the date of grant. Those may include requirements for continuous service and/or the achievement of specified performance goals.

***Cash Awards:*** A cash award is an award that may be in the form of cash or ordinary shares or a combination, based on the attainment of pre-established performance goals and other conditions, restrictions and contingencies identified by the administrator.

***Performance Criteria:*** Under the 2022 Plan, one or more performance criteria will be used by the administrator in establishing performance goals. Any one or more of the performance criteria may be used on an absolute or relative basis to measure the performance of our company, as the administrator may deem appropriate, or as compared to the performance of a group of comparable companies, or published or special index that the administrator deems appropriate. In determining the actual size of an individual performance compensation award, the administrator may reduce or eliminate the amount of the award through the use of negative discretion if, in its sole judgment, such

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reduction or elimination is appropriate. The administrator shall not have the discretion to (i) grant or provide payment in respect of performance compensation awards if the performance goals have not been attained or (ii) increase a performance compensation award above the maximum amount payable under the 2022 Plan.

***Other Material Provisions:*** Awards will be evidenced by a written agreement, in such form as may be approved by the administrator. In the event of various changes to the capitalization of our company, such as share splits, share dividends and similar re-capitalizations, an appropriate adjustment will be made by the administrator to the number of shares covered by outstanding awards or to the exercise price of such awards. The administrator is also permitted to include in the written agreement provisions that provide for certain changes in the award in the event of a change of control of our company, including acceleration of vesting. Except as otherwise determined by the administrator at the date of grant, awards will not be transferable, other than by will or the laws of descent and distribution. Prior to any award distribution, we are permitted to deduct or withhold amounts sufficient to satisfy any employee withholding tax requirements. Our board also has the authority, at any time, to discontinue the granting of awards. The board also has the authority to alter or amend the 2022 Plan or any outstanding award or may terminate the 2022 Plan as to further grants, provided that no amendment that would adversely affect any outstanding award made under the 2022 Plan can be made without the consent of the holder of such award.

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#### PRINCIPAL SHAREHOLDERS
The following table sets forth certain information with respect to the beneficial ownership of our ordinary shares as of February 7, 2023 for (i) each of our executive officers and directors; (ii) all of our executive officers and directors as a group; and (iii) each other shareholder known by us to be the beneficial owner of more than 5% of our outstanding ordinary shares. The following table assumes that the underwriters have not exercised the over-allotment option.

Beneficial ownership is determined in accordance with SEC rules and generally includes voting or investment power with respect to securities. For purposes of this table, a person or group of persons is deemed to have "beneficial ownership" of any ordinary shares that such person or any member of such group has the right to acquire within sixty (60) days of February 7, 2023. For purposes of computing the percentage of outstanding shares held by each person or group of persons named above, any shares that such person or persons has the right to acquire within sixty (60) days of February 7, 2023 are deemed to be outstanding for such person, but not deemed to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion herein of any shares listed as beneficially owned does not constitute an admission of beneficial ownership by any person.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Name of Beneficial Owner** | **Ordinary Shares Beneficially Owned Prior to this Offering<sup>(1)</sup>** | **Ordinary Shares Beneficially Owned Prior to this Offering<sup>(1)</sup>** | **Ordinary Shares Beneficially Owned After this Offering<sup>(2)</sup>** | **Ordinary Shares Beneficially Owned After this Offering<sup>(2)</sup>** |
|  **Name of Beneficial Owner** | **Shares** | **%** | **Shares** | **%** |
|  Adam Sax, Chief Executive Officer and Director<sup>(3)</sup> | 968207 | 12.53% | 968207 | 11.20% |
|  Tom Hanson, Chief Operating Officer and Director<sup>(4)</sup> | 270424 | 3.50% | 270424 | 3.13% |
|  Scott J. Silverman, Chief Financial Officer | 0 | \* | 0 | \* |
|  Stuart W. Henderson, Director<sup>(5)</sup> | 368637 | 4.81% | 368637 | 4.29% |
|  Ian M. Hull, Director<sup>(6)</sup> | 125473 | 1.64% | 125473 | 1.46% |
|  Larry Goldman, Director Nominee | 0 | \* | 0 | \* |
|  All executive officers and directors<br>(6 persons) | 1732741 | 22.48% | 1732741 | 20.07% |
|  Kirk Eksyma | 1061636 | 13.84% | 1061636 | 12.36% |

---

____________

\* Less than 1%

(1) Based on 7,668,557 ordinary shares issued and outstanding as of February 7, 2023.

(2) Based on 8,591,634 ordinary shares issued and outstanding after this offering.

(3) Includes 912,036 ordinary shares and 56,171 ordinary shares which Mr. Sax has the right to acquire within 60 days through the exercise of vested options.

(4) Includes 214,253 ordinary shares and 56,171 ordinary shares which Mr. Hanson has the right to acquire within 60 days through the exercise of vested options.

(5) Includes 189,669 ordinary shares held directly, 109,424 ordinary shares held by Mr. Henderson's spouse, 37,447 ordinary shares held by The Gullane Corporation, of which Mr. Henderson is the President, 24,073 ordinary shares held by Ballymena Holdings Inc., of which Mr. Henderson is the President, and 8,024 ordinary shares held by Stuart W Henderson Prof Corp, of which Mr. Henderson is the President. Mr. Henderson has voting and investment power over the shares held by The Gullane Corporation, Ballymena Holdings Inc. and Stuart W Henderson Prof Corp; however, Mr. Henderson disclaims beneficial ownership of the shares held by these entities except to the extent of his pecuniary interest, if any, in such shares.

(6) Includes 109,424 ordinary shares held directly and 16,049 ordinary shares held by Ian M. Hull Prof Corp. Mr. Hull is the President of Ian M. Hull Prof Corp. and has voting and investment power over the shares held by it. Mr. Hull disclaims beneficial ownership of the shares held by Ian M. Hull Prof Corp. except to the extent of his pecuniary interest, if any, in such shares.

None of our major shareholders have different voting rights from other shareholders. We are not aware of any arrangement that may, at a subsequent date, result in a change of control of our company. See "*Description of Share Capital — History of Securities Issuances*" for historical changes in our shareholding.

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#### RELATED PARTY TRANSACTIONS
In addition to the compensation arrangements discussed under "*Management*," the following is a description of the material terms of those transactions with related parties to which we are party and which we are required to disclose pursuant to the disclosure rules of the SEC.

As of December 31, 2021 and 2020, we owed $620 and $615, respectively, in shareholder advances payable to Adam Sax, our Chief Executive Officer. These advances were repaid in full during the six months ended June 30, 2022.

On August 11, 2022, we entered into a consulting agreement with EverAsia Financial Group, Inc., or EverAsia, a business and accounting consulting company owned by Scott Silverman, pursuant to which we engaged Mr. Silverman to act as our Chief Financial Officer. Pursuant to the consulting agreement, we agreed to pay EverAsia a monthly fee of $12,500; provided that such monthly fees are deferred until such time as we raise $800,000 from one or more sources as follows: (i) for the first sixty days, EverAsia shall be compensated a total of $30,000 in equity and (ii) after such sixty day period, EverAsia shall be compensated a minimum of $5,000 per month, with the remaining monthly fees accrued until such time that we raise $800,000. Upon receipt of such financing, we must pay all accrued fees. We also agreed to reimburse EverAsia for all pre-approved business expenses. The term of the consulting agreement is for one (1) year and shall automatically renew for a three-month renewal term. Either party may terminate the renewal term upon thirty (30) days' notice and EverAsia may terminate the consulting agreement upon ten (10) days' notice in the event of non-payment. If the consulting agreement is terminated prior to the end of the initial term or renewal term, we must pay all fees and unpaid expenses through the termination date; provided that in the event that we terminate the consulting agreement without cause, the consulting agreement is terminated prior to the end of the renewal term, or EverAsia terminates the consulting agreement for non-payment, we must also pay an early termination fee equal to three (3) months of consulting fees. The consulting agreement contains customary confidentiality and indemnification provisions.

On December 30, 2022, we issued 30,000 ordinary shares to JJL Capital Management, LLC, a company controlled by Mr. Silverman, in accordance with the terms of the consulting agreement, and we issued 15,000 ordinary shares to JJL Capital Management, LLC as settlement for accounts payable in the amount of $15,000 owed to EverAsia.

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#### DESCRIPTION OF SHARE CAPITAL

#### General
We are a Cayman Islands exempted company and our affairs are governed by our memorandum and articles of association, as amended from time to time, and the Companies Act (2022 Revision) of the Cayman Islands, as amended and restated from time to time, which we refer to as the Companies Act below, and the common law of Cayman Islands.

We will adopt an amended and restated memorandum and articles of association, which will become effective and replace our current memorandum and articles of association in its entirety immediately prior to the completion of this offering. The following are summaries of material provisions of the amended and restated memorandum and articles of association and of the Companies Act, insofar as they relate to the material terms of our ordinary shares.

The following is a description of the material terms of our share capital and is not intended to be a complete summary of the rights and preferences of our shares which are set out in our amended and restated memorandum and articles of association. For more detailed information, please see the form of our amended and restated memorandum and articles of association, which are filed as exhibits to the registration statement of which this prospectus forms a part.

Our authorized share capital currently is $50,000 divided into 500,000,000 shares, par value of $0.0001 each, comprising of 500,000,000 shares of a single class. As of February 7, 2023, we had 7,668,557 ordinary shares issued and outstanding, which were held by approximately 105 shareholders of record. All of our shares issued and outstanding prior to the completion of this offering are fully paid, and all of our shares to be issued in this offering will be issued as fully paid.

#### Memorandum and Articles of Association
The following are summaries of material provisions of our amended and restated memorandum and articles of association and of the Companies Act, insofar as they relate to the material terms of our ordinary shares.

***Objects of Our Company.*** Under our amended and restated memorandum and articles of association, the objects of our company are unrestricted, and we are capable of exercising all the functions of a natural person of full capacity irrespective of any question of corporate benefit, as provided by section 27(2) of the Companies Act.

***Ordinary Shares.*** Our ordinary shares are issued in registered form and are issued when registered in our register of members. We may not issue shares to bearer. Our shareholders who are non-residents of the Cayman Islands may freely hold and vote their shares.

***Dividends.*** The holders of our ordinary shares are entitled to such dividends as may be declared by our board of directors. Our amended and restated memorandum and articles of association provide that dividends may be declared and paid out of the funds of our company lawfully available therefor. Under the laws of the Cayman Islands, our company may pay a dividend out of either profit or share premium account; provided that in no circumstances may a dividend be paid out of our share premium if this would result in our company being unable to pay its debts as they fall due in the ordinary course of business.

***Voting Rights.*** Voting at any meeting of shareholders is by way of a poll save that in the case of a physical meeting, the chairman of the meeting may decide that a vote be on a show of hands unless a poll is demanded by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• at least three shareholders present in person or by proxy or (in the case of a shareholder being a corporation) by its duly authorized representative for the time being entitled to vote at the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shareholder(s) present in person or by proxy or (in the case of a shareholder being a corporation) by its duly authorized representative representing not less than one-tenth of the total voting rights of all shareholders having the right to vote at the meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shareholder(s) present in person or by proxy or (in the case of a shareholder being a corporation) by its duly authorized representative and holding shares in us conferring a right to vote at the meeting being shares on which an aggregate sum has been paid up equal to not less than one-tenth of the total sum paid up on all shares conferring that right.

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An ordinary resolution to be passed at a meeting by the shareholders requires the affirmative vote of a simple majority of the votes attaching to the ordinary shares cast at a meeting, while a special resolution requires the affirmative vote of no less than two-thirds of the votes cast attaching to the issued and outstanding ordinary shares at a meeting. A special resolution will be required for important matters such as a change of name, making changes to our amended and restated memorandum and articles of association, a reduction of our share capital and the winding up of our company. Our shareholders may, among other things, divide or combine their shares by ordinary resolution.

***General Meetings of Shareholders.*** As a Cayman Islands exempted company, we are not obliged by the Companies Act to call shareholders' annual general meetings. Our amended and restated memorandum and articles of association provide that we may hold an annual general meeting and shall specify the meeting as such in the notices calling it, and the annual general meeting shall be held at such time and place as may be determined by our directors. All general meetings (including an annual general meeting, any adjourned general meeting or postponed meeting) may be held as a physical meeting at such times and in any part of the world and at one or more locations, as a hybrid meeting or as an electronic meeting, as may be determined by our board of directors in its absolute discretion.

Shareholders' general meetings may be convened by the chairperson of our board of directors or by a majority of our board of directors. Advance notice of not less than ten calendar days is required for the convening of our annual general shareholders' meeting (if any) and any other general meeting of our shareholders. A quorum required for any general meeting of shareholders consists of, at the time when the meeting proceeds to business, two shareholders holding shares which carry in aggregate (or representing by proxy) not less than one-third of all votes attaching to issued and outstanding shares in our company entitled to vote at such general meeting.

The Companies Act does not provide shareholders with any right to requisition a general meeting or to put any proposal before a general meeting. However, these rights may be provided in a company's articles of association. Our amended and restated memorandum and articles of association provide that upon the requisition of one or more of our shareholders holding not less than one-third of our share capital as at that date, our board will convene an extraordinary general meeting and put the resolutions so requisitioned to a vote at such meeting. However, our amended and restated memorandum and articles of association do not provide our shareholders with any right to put any proposals before annual general meetings or extraordinary general meetings not called by such shareholders.

***Transfer of Ordinary Shares.*** Subject to the restrictions set out below, any of our shareholders may transfer all or any of his or her ordinary shares by an instrument of transfer in the usual or common form or in a form designated by the relevant stock exchange or any other form approved by our board of directors. Notwithstanding the foregoing, ordinary shares may also be transferred in accordance with the applicable rules and regulations of the relevant stock exchange.

Our board of directors may, in its absolute discretion, decline to register any transfer of any ordinary share which is not fully paid up or on which we have a lien. Our board of directors may also decline to register any transfer of any ordinary share unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the instrument of transfer is lodged with us, accompanied by the certificate for the ordinary shares to which it relates and such other evidence as our board of directors may reasonably require to show the right of the transferor to make the transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the instrument of transfer is in respect of only one class of ordinary shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the instrument of transfer is properly stamped, if required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of a transfer to joint holders, the number of joint holders to whom the ordinary share is to be transferred does not exceed four; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a fee of such maximum sum as the relevant stock exchange may determine to be payable or such lesser sum as our directors may from time to time require is paid to us in respect thereof.

If our directors refuse to register a transfer they shall, within two months after the date on which the instrument of transfer was lodged, send to each of the transferor and the transferee notice of such refusal.

The registration of transfers may, after compliance with any notice required in accordance with the rules of the relevant stock exchange, be suspended and the register closed at such times and for such periods as our board of directors may from time to time determine; provided, however, that the registration of transfers shall not be suspended nor the register closed for more than 30 days in any year as our board may determine.

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***Liquidation.*** On the winding up of our company, if the assets available for distribution amongst our shareholders shall be more than sufficient to repay the whole of the share capital at the commencement of the winding up, the surplus shall be distributed amongst our shareholders in proportion to the par value of the shares held by them at the commencement of the winding up, subject to a deduction from those shares in respect of which there are monies due, of all monies payable to our company for unpaid calls or otherwise. If our assets available for distribution are insufficient to repay all of the paid-up capital, such the assets will be distributed so that, as nearly as may be, the losses are borne by our shareholders in proportion to the par value of the shares held by them.

***Calls on Shares and Forfeiture of Shares.*** Our board of directors may from time to time make calls upon shareholders for any amounts unpaid on their shares in a notice served to such shareholders at least 14 days prior to the specified time and place of payment. The shares that have been called upon and remain unpaid are subject to forfeiture.

***Redemption, Repurchase and Surrender of Shares.*** We may issue shares on terms that such shares are subject to redemption, at our option or at the option of the holders of these shares, on such terms and in such manner as may be determined by our board of directors. Our company may also repurchase any of our shares on such terms and in such manner as have been approved by our board of directors. Under the Companies Act, the redemption or repurchase of any share may be paid out of our company's profits, share premium account or out of the proceeds of a new issue of shares made for the purpose of such redemption or repurchase, or out of capital if our company can, immediately following such payment, pay its debts as they fall due in the ordinary course of business. In addition, under the Companies Act no such share may be redeemed or repurchased (a) unless it is fully paid up, (b) if such redemption or repurchase would result in there being no shares outstanding or (c) if the company has commenced liquidation. In addition, our company may accept the surrender of any fully paid share for no consideration.

***Variations of Rights of Shares.*** Whenever the capital of our company is divided into different classes the rights attached to any such class may, subject to any rights or restrictions for the time being attached to any class, only be varied with the sanction of a resolution passed by a majority of two-thirds of the votes cast at a separate meeting of the holders of the shares of that class. The rights conferred upon the holders of the shares of any class issued with preferred or other rights shall not, unless otherwise expressly provided by the terms of issue of the shares of that class, be deemed to be varied by the creation, allotment or issue of further shares ranking *pari passu* with such existing class of shares.

***Issuance of Additional Shares.*** Our amended and restated memorandum and articles of association authorizes our board of directors to issue additional ordinary shares from time to time as our board of directors shall determine, to the extent of available authorized but unissued shares.

Our amended and restated memorandum and articles of association also authorizes our board of directors to establish from time to time one or more series of preference shares and to determine, with respect to any series of preference shares, the terms and rights of that series, including, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the designation of the series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the number of shares of the series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the dividend rights, dividend rates, conversion rights and voting rights; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the rights and terms of redemption and liquidation preferences.

Our board of directors may issue preference shares without action by our shareholders to the extent of available authorized but unissued shares. Issuance of these shares may dilute the voting power of holders of ordinary shares.

***Inspection of Books and Records.*** Holders of our ordinary shares will have no general right under Cayman Islands law to inspect or obtain copies of our list of shareholders or our corporate records.

***Anti***-Takeover ***Provisions.*** Some provisions of our amended and restated memorandum and articles of association may discourage, delay or prevent a change of control of our company or management that shareholders may consider favorable, including provisions that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• authorize our board of directors to issue preferred shares in one or more series and to designate the price, rights, preferences, privileges and restrictions of such preference shares without any further vote or action by our shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limit the ability of shareholders to requisition and convene general meetings of shareholders.

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However, under Cayman Islands law, our directors may only exercise the rights and powers granted to them under our amended and restated memorandum and articles of association for a proper purpose and for what they believe in good faith to be in the best interests of our company.

***Exempted Company.*** We are an exempted company with limited liability under the Companies Act. The Companies Act distinguishes between ordinary resident companies and exempted companies. Any company that is registered in the Cayman Islands but conducts business mainly outside of the Cayman Islands may apply to be registered as an exempted company. The requirements for an exempted company are essentially the same as for an ordinary company except that an exempted company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not have to file an annual return of its shareholders with the Registrar of Companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• is not required to open its register of members for inspection;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not have to hold an annual general meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may issue shares with no par value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may obtain an undertaking against the imposition of any future taxation (such undertakings are usually given for 20 years in the first instance);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may register as an exempted limited duration company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may register as a segregated portfolio company.

"Limited liability" means that the liability of each shareholder is limited to the amount unpaid by the shareholder on that shareholder's shares of the company (except in exceptional circumstances, such as involving fraud, the establishment of an agency relationship or an illegal or improper purpose or other circumstances in which a court may be prepared to pierce or lift the corporate veil).

#### Differences in Corporate Law
Cayman Islands companies are governed by the Companies Act. The Companies Act is derived, to a large extent, from the companies acts of England & Wales but does not follow recent statutory enactments in England & Wales and accordingly there are significant differences between the Companies Act and the current companies act of England & Wales. In addition, the Companies Act differs from laws applicable to U.S. corporations and their shareholders. Set forth below is a summary of the significant differences between the provisions of the Companies Act applicable to us and the laws applicable to companies incorporated in the United States and their shareholders.

***Mergers and Similar Arrangements.*** The Companies Act permits mergers and consolidations between Cayman Islands companies and between Cayman Islands companies and non-Cayman Islands companies. For these purposes, (a) "merger" means the merging of two or more constituent companies and the vesting of their undertaking, property and liabilities in one of such companies as the surviving company, and (b) a "consolidation" means the combination of two or more constituent companies into a consolidated company and the vesting of the undertaking, property and liabilities of such companies to the consolidated company. In order to effect such a merger or consolidation, the directors of each constituent company must approve a written plan of merger or consolidation, which must then be authorized by (a) a special resolution of the shareholders of each constituent company, and (b) such other authorization, if any, as may be specified in such constituent company's articles of association. The plan must be filed with the Registrar of Companies of the Cayman Islands together with a declaration as to the solvency of the consolidated or surviving company, a list of the assets and liabilities of each constituent company and an undertaking that a copy of the certificate of merger or consolidation will be given to the members and creditors of each constituent company and that notification of the merger or consolidation will be published in the Cayman Islands Gazette. Court approval is not required for a merger or consolidation which is effected in compliance with these statutory procedures.

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A merger between a Cayman parent company and its Cayman subsidiary or subsidiaries does not require authorization by a resolution of shareholders of that Cayman subsidiary if a copy of the plan of merger is given to every member of that Cayman subsidiary to be merged unless that member agrees otherwise. For this purpose, a company is a "parent" of a subsidiary if it holds issued shares that together represent at least ninety percent (90%) of the votes at a general meeting of the subsidiary.

The consent of each holder of a fixed or floating security interest over a constituent company is required unless this requirement is waived by a court in the Cayman Islands.

Save in certain limited circumstances, a shareholder of a Cayman constituent company who dissents from the merger or consolidation is entitled to payment of the fair value of his shares (which, if not agreed between the parties, will be determined by the Cayman Islands court) upon dissenting to the merger or consolidation, provided the dissenting shareholder complies strictly with the procedures set out in the Companies Act. The exercise of dissenter rights will preclude the exercise by the dissenting shareholder of any other rights to which he or she might otherwise be entitled by virtue of holding shares, save for the right to seek relief on the grounds that the merger or consolidation is void or unlawful.

Separate from the statutory provisions relating to mergers and consolidations, the Companies Act also contains statutory provisions that facilitate the reconstruction and amalgamation of companies by way of schemes of arrangement, provided that the arrangement is approved by a majority in number of each class of shareholders and creditors with whom the arrangement is to be made, and who must in addition represent three-fourths in value of each such class of shareholders or creditors, as the case may be, that are present and voting either in person or by proxy at a meeting, or meetings, convened for that purpose. The convening of the meetings and subsequently the arrangement must be sanctioned by the Grand Court of the Cayman Islands. While a dissenting shareholder has the right to express to the court the view that the transaction ought not to be approved, the court can be expected to approve the arrangement if it determines that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the statutory provisions as to the required majority vote have been met;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the shareholders have been fairly represented at the meeting in question and the statutory majority are acting bona fide without coercion of the minority to promote interests adverse to those of the class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the arrangement is such that may be reasonably approved by an intelligent and honest man of that class acting in respect of his interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the arrangement is not one that would more properly be sanctioned under some other provision of the Companies Act.

The Companies Act also contains a statutory power of compulsory acquisition which may facilitate the "squeeze out" of a dissentient minority shareholder upon a tender offer. When a tender offer is made and accepted by holders of 90% of the shares affected within four months, the offeror may, within a two-month period commencing on the expiration of such four-month period, require the holders of the remaining shares to transfer such shares to the offeror on the terms of the offer. An objection can be made to the Grand Court of the Cayman Islands but this is unlikely to succeed in the case of an offer which has been so approved unless there is evidence of fraud, bad faith or collusion.

If an arrangement and reconstruction by way of scheme of arrangement is thus approved and sanctioned, or if a tender offer is made and accepted, in accordance with the foregoing statutory procedures, a dissenting shareholder would have no rights comparable to appraisal rights, save that objectors to a takeover offer may apply to the Grand Court of the Cayman Islands for various orders that the Grand Court of the Cayman Islands has a broad discretion to make, which would otherwise ordinarily be available to dissenting shareholders of Delaware corporations, providing rights to receive payment in cash for the judicially determined value of the shares.

***Shareholders' Suits.*** In principle, we will normally be the proper plaintiff and as a general rule a derivative action may not be brought by a minority shareholder. However, based on Cayman Islands authorities and English authorities, which would in all likelihood be of persuasive authority in the Cayman Islands, the Cayman Islands courts can be expected to follow and apply the common law principles (namely the rule in *Foss v. Harbottle* and the exceptions thereto) so that a non-controlling shareholder may be permitted to commence a class action against or derivative actions in the name of the company to challenge actions where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a company acts or proposes to act illegally or ultra vires;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the act complained of, although not ultra vires, could only be effected duly if authorized by more than the number of votes which have actually been obtained; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• those who control the company are perpetrating a "fraud on the minority."

A shareholder may have a direct right of action against us where the individual rights of that shareholder have been infringed or are about to be infringed.

***Indemnification of Directors and Executive Officers and Limitation of Liability.*** Cayman Islands law does not limit the extent to which a company's memorandum and articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against willful default, fraud or the consequences of committing a crime. Our amended and restated memorandum and articles of association provide that that we shall indemnify our directors and officers against any liability, action, proceeding, claim, demand, costs, damages or expenses, including legal expenses, whatsoever which they or any of them may incur as a result of any act or failure to act in carrying out their functions other than such liability (if any) that they may incur by reason of their own actual fraud or willful default. This standard of conduct is generally the same as permitted under the General Corporation Law of the State of Delaware, or the Delaware General Corporation Law, for a Delaware corporation.

In addition, we have entered into indemnification agreements with our directors and executive officers that provide such persons with additional indemnification beyond that provided in our amended and restated memorandum and articles of association.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers or persons controlling us under the foregoing provisions, we have been informed that in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

***Directors' Fiduciary Duties.*** Under Delaware corporate law, a director of a Delaware corporation has a fiduciary duty to the corporation and its shareholders. This duty has two components: the duty of care and the duty of loyalty. The duty of care requires that a director act in good faith, with the care that an ordinarily prudent person would exercise under similar circumstances. Under this duty, a director must inform himself or herself of, and disclose to shareholders, all material information reasonably available regarding a significant transaction. The duty of loyalty requires that a director acts in a manner he or she reasonably believes to be in the best interests of the corporation. The director must not use his or her corporate position for personal gain or advantage. This duty prohibits self-dealing by a director and mandates that the best interest of the corporation and its shareholders take precedence over any interest possessed by a director, officer or controlling shareholder and not shared by the shareholders generally. In general, actions of a director are presumed to have been made on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the corporation. However, this presumption may be rebutted by evidence of a breach of one of the fiduciary duties. Should such evidence be presented concerning a transaction by a director, the director must prove the procedural fairness of the transaction, and that the transaction was of fair value to the corporation.

As a matter of Cayman Islands law, a director of a Cayman Islands company is in the position of a fiduciary with respect to the company and therefore it is considered that he or she owes the following duties to the company — a duty to act in good faith in the best interests of the company, a duty not to make a personal profit based on his or her position as director (unless the company permits him to do so), a duty not to put himself or herself in a position where the interests of the company conflict with his or her personal interest or his or her duty to a third party and a duty to exercise powers for the purpose for which such powers were intended. A director of a Cayman Islands company owes to the company a duty to act with skill and care. It was previously considered that a director need not exhibit in the performance of his duties a greater degree of skill than may reasonably be expected from a person of his knowledge and experience. However, English and Commonwealth courts have moved towards an objective standard with regard to the required skill and care and these authorities are likely to be followed in the Cayman Islands.

***Shareholder Action by Written Consent.*** Under the Delaware General Corporation Law, a corporation may eliminate the right of shareholders to act by written consent by amendment to its certificate of incorporation. Our amended and restated articles of association provide that shareholders may approve corporate matters by way of a unanimous written resolution signed by or on behalf of each shareholder who would have been entitled to vote on such matter at a general meeting without a meeting being held.

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***Shareholder Proposals.*** Under the Delaware General Corporation Law, a shareholder has the right to put any proposal before the annual meeting of shareholders, provided it complies with the notice provisions in the governing documents. A special meeting may be called by the board of directors or any other person authorized to do so in the governing documents, but shareholders may be precluded from calling special meetings.

The Companies Act provides shareholders with only limited rights to requisition a general meeting, and does not provide any right to put any proposal before a general meeting. However, these rights may be provided in a company's articles of association. Our amended and restated articles of association allow our shareholders holding not less than one-third of our share capital to requisition an extraordinary general meeting of our shareholders, in which case our board is obliged to convene an extraordinary general meeting and to put the resolutions so requisitioned to a vote at such meeting. Other than this right to requisition a shareholders' meeting, our amended and restated articles of association do not provide our shareholders with any other right to put proposals before annual general meetings or extraordinary general meetings. As an exempted Cayman Islands company, we are not obliged by law to call shareholders' annual general meetings.

***Cumulative Voting.*** Under the Delaware General Corporation Law, cumulative voting for elections of directors is not permitted unless the corporation's certificate of incorporation specifically provides for it. Cumulative voting potentially facilitates the representation of minority shareholders on a board of directors since it permits the minority shareholder to cast all the votes to which the shareholder is entitled on a single director, which increases the shareholder's voting power with respect to electing such director. There are no prohibitions in relation to cumulative voting under the laws of the Cayman Islands but our amended and restated articles of association do not provide for cumulative voting. As a result, our shareholders are not afforded any less protections or rights on this issue than shareholders of a Delaware corporation.

***Removal of Directors.*** Under the Delaware General Corporation Law, a director of a corporation may be removed, with or without cause, by the holders of a majority of the shares then entitled to vote at an election of directors. Under our amended and restated articles of association, subject to certain restrictions as contained therein, directors may be removed with or without cause, by an ordinary resolution of our shareholders. An appointment of a director may be on terms that the director shall automatically retire from office (unless he has sooner vacated office) at the next or a subsequent annual general meeting or upon any specified event or after any specified period in a written agreement between our company and the director, if any; but no such term shall be implied in the absence of express provision. Under our amended and restated articles of association, a director's office shall be vacated if the director (i) becomes bankrupt or makes any arrangement or composition with his or her creditors; (ii) is found to be or becomes of unsound mind or dies; (iii) resigns his or her office by notice in writing to us; or (iv) is removed from office pursuant to the laws of the Cayman Islands or any other provisions of our amended and restated memorandum and articles of association.

***Transactions with Interested Shareholders.*** The Delaware General Corporation Law contains a business combination statute applicable to Delaware corporations whereby, unless the corporation has specifically elected not to be governed by such statute by amendment to its certificate of incorporation, it is prohibited from engaging in certain business combinations with an "interested shareholder" for three years following the date that such person becomes an interested shareholder. An interested shareholder generally is a person or a group who or which owns or owned 15% or more of the target's outstanding voting share within the past three years. This has the effect of limiting the ability of a potential acquirer to make a two-tiered bid for the target in which all shareholders would not be treated equally. The statute does not apply if, among other things, prior to the date on which such shareholder becomes an interested shareholder, the board of directors approves either the business combination or the transaction which resulted in the person becoming an interested shareholder. This encourages any potential acquirer of a Delaware corporation to negotiate the terms of any acquisition transaction with the target's board of directors.

Cayman Islands law has no comparable statute. As a result, we cannot avail ourselves of the types of protections afforded by the Delaware business combination statute. However, although Cayman Islands law does not regulate transactions between a company and its significant shareholders, it does provide that such transactions must be entered into bona fide in the best interests of the company and not with the effect of constituting a fraud on the minority shareholders.

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***Dissolution; Winding up.*** Under the Delaware General Corporation Law, unless the board of directors approves the proposal to dissolve, dissolution must be approved by shareholders holding 100% of the total voting power of the corporation. Only if the dissolution is initiated by the board of directors may it be approved by a simple majority of the corporation's outstanding shares. Delaware law allows a Delaware corporation to include in its certificate of incorporation a supermajority voting requirement in connection with dissolutions initiated by the board.

Under Cayman Islands law, a company may be wound up by either an order of the courts of the Cayman Islands or by a special resolution of its members or, if the company is unable to pay its debts as they fall due, by an ordinary resolution of its members. The court has authority to order winding up in a number of specified circumstances including where it is, in the opinion of the court, just and equitable to do so.

***Variation of Rights of Shares.*** Under the Delaware General Corporation Law, a corporation may vary the rights of a class of shares with the approval of a majority of the outstanding shares of such class, unless the certificate of incorporation provides otherwise. Under our amended and restated articles of association, if our share capital is divided into more than one class of shares, the rights attached to any such class may only be varied with the consent in writing of the holders of not less than two thirds of the issued shares of that class, or with the approval of a resolution passed by a majority of not less than two thirds of the votes cast at a separate meeting of the holders of the shares of that class.

***Amendment of Governing Documents.*** Under the Delaware General Corporation Law, a corporation's governing documents may be amended with the approval of a majority of the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise. Under Cayman Islands law, our amended and restated memorandum and articles of association may only be amended with a special resolution of our shareholders.

***Rights of Non***-resident ***or Foreign Shareholders.*** There are no limitations imposed by our amended and restated memorandum and articles of association on the rights of non-resident or foreign shareholders to hold or exercise voting rights on our shares. In addition, there are no provisions in our amended and restated memorandum and articles of association governing the ownership threshold above which shareholder ownership must be disclosed.

#### Convertible Securities

#### Options
Droneify has granted to employees, consultants and directors options to purchase 472,944 ordinary shares under its share option plan, which was assumed by us in connection with the corporate restructuring. See "*Management — Share Options*."

#### Warrants
Droneify has issued warrants for the purchase of 63,700 class A common shares to Boustead Securities, LLC in connection with the private placement described elsewhere in this prospectus. The warrants were immediately assumed by our company and exchanged for warrants for 63,700 ordinary shares of our company pursuant to the restructuring described elsewhere in this prospectus. The warrants are exercisable for a period of five years at an exercise price of $7.50 (subject to adjustment) and include a cashless exercise provision.

#### History of Securities Issuances
In the past three years, we have issued the following securities.

On September 23, 2022, we commenced a corporate restructuring pursuant to a share exchange agreement that we entered into with Droneify and its shareholders. Pursuant to the share exchange agreement, we have acquired 6,544,202 class A common shares of Droneify in exchange for which we issued 6,544,202 ordinary shares to the shareholders of Droneify. As a result of this restructuring, we own 84.15% of the issued and outstanding class A common shares of Droneify. One shareholder holds the remaining shares that have not yet been exchanged. Such shareholder has indicated that it will exchange its shares following the completion of this offering, at which time we would own 100% of Droneify. If such shareholder does not exchange its shares, Droneify would remain a majority-owned subsidiary rather than a wholly-owned subsidiary.

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In August 2022, Droneify launched a private placement pursuant to which it is offering up to 1,500,000 class A common shares, at a purchase price of $1.00 per share, for total gross proceeds of up to $1,500,000. Boustead Securities, LLC, the representative of the underwriters for this offering, is acting as placement agent in connection with this private placement. As compensation for its services, it will receive (i) a cash commission equal to 7% of the gross proceeds, (ii) a 1% non-accountable expense allowance and (iii) warrants for the purchase of a number of class A common shares of Droneify equal to 7% of the number of shares issued in the private placement at an exercise price of $7.50 per share (subject to adjustments), which may be exercised on a cashless basis. Commencing on September 26, 2022, Droneify has completed multiple closings of this private placement in which it has issued an aggregate of 910,000 class A common shares for total gross proceeds of $910,000 and net proceeds of approximately $711,782. Droneify has also issued warrants for the purchase of 63,700 class A common shares to Boustead Securities, LLC. These shares were immediately exchanged for 910,000 ordinary shares of our company and the warrants were exchanged for warrants for 63,700 ordinary shares of our company pursuant to the share exchange agreement described above. We determined the initially issued Droneify warrants to be equity instruments pursuant to ASC 480 and ASC 815, as the warrants are indexed to the issuer's own stock and meet the conditions of equity classification. On exchange of warrants into our company, we recognize additional fair value, if any, as an equity issuance cost as a component of equity.

On September 26, 2022, we issued 25,000 ordinary shares to Bevilacqua PLLC, our outside securities counsel, which it received as partial consideration for legal services previously provided to us.

On December 30, 2022, we issued an aggregate of 74,355 ordinary shares to certain consultants and advisors in consideration for services rendered to us.

On December 30, 2022, we issued 15,000 ordinary shares to JJL Capital Management, LLC as settlement for accounts payable in the amount of $15,000 owed to it.

On January 20, 2023, we issued 100,000 ordinary shares to LDR Credit Partners LLC as settlement for debt in the amount of $100,000 owed to it.

#### Listing
We have applied to list our ordinary shares on the Nasdaq Capital Market under the symbol "DRFY". The closing of this offering is contingent upon such listing.

#### Transfer Agent and Registrar
We are in the process of appointing Transhare Corporation, Bayside Center 1, 17755 US Highway 19 N, Suite 140, Clearwater FL 33764, telephone 303-662-1112, as the transfer agent for our ordinary shares.

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#### SHARES ELIGIBLE FOR FUTURE SALE
Before this offering, there has not been a public market for our ordinary shares. Future sales of substantial amounts of ordinary shares, including shares issued upon the conversion of convertible notes, the exercise of outstanding options and warrants, in the public market after this offering, or the possibility of these sales occurring, could cause the prevailing market price for our ordinary shares to fall or impair our ability to raise equity capital in the future.

Immediately following the closing of this offering, we will have 8,591,634 ordinary shares issued and outstanding, based on an assumed initial public offering price of $6.50 per share, which is the midpoint of the estimated range of the initial public offering price shown on the cover page of this prospectus. In the event the underwriters exercise the over-allotment option in full, we will have 8,730,096 ordinary shares issued and outstanding. The ordinary shares sold in this offering will be freely tradable without restriction or further registration or qualification under the Securities Act.

Previously issued ordinary shares that were not offered and sold in this offering, as well as shares issuable upon the exercise of warrants and subject to employee share options, are or will be upon issuance, "restricted securities," as that term is defined in Rule 144 under the Securities Act. These restricted securities are eligible for public sale only if such public resale is registered under the Securities Act or if the resale qualifies for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which are summarized below.

#### Rule 144
In general, a person who has beneficially owned restricted ordinary shares for at least twelve months, or at least six months in the event we have been a reporting company under the Exchange Act for at least ninety (90) days before the sale, would be entitled to sell such securities, provided that such person is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time during the ninety (90) days preceding the sale. A person who is an affiliate of ours at such time would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of shares that does not exceed the greater of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the number of ordinary shares then outstanding; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the average weekly trading volume of our ordinary shares during the four calendar weeks preceding the filing by such person of a notice on Form 144 with respect to the sale;

provided that, in each case, we are subject to the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply with the manner of sale, notice and other provisions of Rule 144, to the extent applicable.

#### Rule 701
In general, Rule 701 allows a shareholder who purchased shares pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate of ours during the immediately preceding 90 days to sell those shares in reliance upon Rule 144, but without being required to comply with the public information, holding period, volume limitation or notice provisions of Rule 144. All holders of Rule 701 shares, however, are required to wait until ninety (90) days after the date of this prospectus before selling shares pursuant to Rule 701.

#### Lock-Up Agreements
We and our officers, directors and holders of 5% or greater of our ordinary shares have agreed to be locked up for a period of twelve months from the date on which the trading of our ordinary shares commences. Holders of 1 – 4.99% of our ordinary have agreed to be locked up for a period of six months from the date on which the trading of our ordinary shares commences; provided that if the aggregate of such holders shares were to equal or exceed 20% of our issued and outstanding shares on a fully diluted basis prior to the completing of this offering, then their lock up period shall be for twelve months from the date of trading of our ordinary shares commences. Holders of less than 1% of our ordinary shares are not subject to any lock up; provided that if the aggregate of such holders shares were to equal or exceed 5% of our issued and outstanding shares on a fully diluted basis prior to the completing of this offering, then their lock up period shall be for six months from the date of trading of our ordinary shares commences. During the lock-up

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period, without the prior written consent of the underwriters, they shall not, directly or indirectly, (i) offer, pledge, assign, encumber, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, any ordinary shares or any securities convertible into or exercisable or exchangeable for ordinary shares, owned either of record or beneficially by any signatory of the lock-up agreement on the date of the prospectus or thereafter acquired; (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the ordinary shares or any securities convertible into or exercisable or exchangeable for ordinary shares, whether any such transaction described in clauses (i) or (ii) above is to be settled by delivery of ordinary shares or such other securities, in cash or otherwise, or publicly announce an intention to do any of the foregoing; and (iii) make any demand for or exercise any right with respect to, the registration of any ordinary shares or any security convertible into or exercisable or exchangeable for ordinary shares. See "*Underwriting*" for more information.

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#### MATERIAL TAX CONSIDERATIONS

#### Cayman Islands Tax Considerations
The Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, gains or appreciations and there is no taxation in the nature of inheritance tax or estate duty or withholding tax applicable to us or to any holder of our ordinary shares. There are no other taxes likely to be material to us levied by the Government of the Cayman Islands except for stamp duties which may be applicable on instruments executed in, or after execution brought within the jurisdiction of the Cayman Islands. No stamp duty is payable in the Cayman Islands on transfers of shares of Cayman Islands companies except those which hold interests in land in the Cayman Islands. The Cayman Islands are not party to any double tax treaties that are applicable to any payments made to or by the Company. There are no exchange control regulations or currency restrictions in the Cayman Islands.

Payments of dividends and capital in respect of ordinary shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of a dividend or capital to any holder of ordinary shares, nor will gains derived from the disposal of ordinary shares be subject to Cayman Islands income or corporation tax.

As an exempted company, we have applied for and received a tax exemption undertaking from the government of the Cayman Islands that, in accordance with Section 6 of the Tax Concessions Act (2018 Revision) of the Cayman Islands, for a period of 20 years from September 7, 2022, no law which is thereafter enacted in the Cayman Islands imposing any tax to be levied on profits, income, gains or appreciations will apply to us or our operations and, in addition, that no tax to be levied on profits, income, gains or appreciations or which is in the nature of estate duty or inheritance tax will be payable (i) on or in respect of our shares, debentures or other obligations or (ii) by way of the withholding in whole or in part of any relevant payment as defined in the Tax Concessions Act (2018 Revision).

#### Canadian Income Tax Considerations
The following summary describes the principal Canadian federal income tax considerations under the Income Tax Act (Canada) and the regulations thereunder, or the Regulations, in force on the date hereof (which we collectively refer to as the Tax Act) that generally apply to a purchaser who acquires as beneficial owner our ordinary shares pursuant to this offering and who, at all relevant times, for purposes of the Tax Act: (i) is, or is deemed to be, resident in Canada; (ii) deals at arm's length with our company and the underwriters; (iii) is not affiliated with our company or the underwriters; (iv) is not in a relationship with us such that we would be considered a "foreign affiliate" of such purchaser; and (v) acquires and holds our ordinary shares as capital property (which we refer to as a Canadian Holder). Generally, our ordinary shares will be capital property to a Canadian Holder provided the Canadian Holder does not acquire, use, or hold our ordinary shares in the course of carrying on a business or as part of an adventure or concern in the nature of trade.

This summary does not apply to a Canadian Holder (i) that is a "specified financial institution"; (ii) an interest in which is a "tax shelter investment"; (iii) that is a "financial institution" for purposes of the "mark-to-market property" rules contained in the Tax Act; (iv) that reports its "Canadian tax results" in a currency other than Canadian currency; (v) that has entered or will enter into, in respect of our ordinary shares, a "synthetic disposition arrangement" or a "derivative forward agreement", as such terms are defined for purposes of the Tax Act.; or (vi) that is a partnership or exempt from tax under Part I of the Tax Act. Such prospective Canadian Holders should consult their own tax advisors with respect to the consequences of acquiring our ordinary shares.

This summary is based on the current provisions of the Tax Act, and an understanding of the current administrative policies and assessing practices of the Canada Revenue Agency published in writing prior to the date hereof. This summary takes into account all specific proposals to amend the Tax Act publicly announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof, or the Proposed Amendments, and assumes that all Proposed Amendments will be enacted in the form proposed. However, no assurances can be given that the Proposed Amendments will be enacted as proposed, or at all. This summary does not otherwise take into account or anticipate any changes in law or administrative policy or assessing practice whether by legislative, administrative or judicial decision or action nor does it take into account tax legislation or considerations of any province, territory or foreign jurisdiction, which may differ from those discussed herein.

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**This summary is of a general nature only and is not, and is not intended to be, nor should it be construed to be, legal or tax advice to any prospective purchaser or Canadian Holder of our ordinary shares. This summary is not exhaustive of all Canadian federal income tax considerations. Accordingly, prospective purchasers of our ordinary shares should consult their own tax advisors having regard to their own particular circumstances.**

#### Currency Conversion
Generally, for purposes of the Tax Act, all relevant amounts relating to the acquisition, holding or disposition of our ordinary shares (including adjusted cost base, proceeds of disposition, interest and dividends, if any) must be expressed in Canadian dollars. Accordingly, amounts denominated in U.S. dollars must be converted into Canadian dollars generally based on the exchange rate quoted by the Bank of Canada on the date such amounts arise or such other rate of exchange as is acceptable to the Minister of National Revenue (Canada). The amount of dividends required to be included in the income of, and capital gains or capital losses realized by, a Canadian Holder may be affected by fluctuations in the Canadian / U.S. dollar exchange rate.

#### Dividends
A Canadian Holder will be required to include in computing its income for a taxation year the amount of any dividends received on our ordinary shares during such taxation year. In the case of a Canadian Holder that is an individual, such dividends will not be subject to the gross-up and dividend tax credit rules that apply to taxable dividends received from taxable Canadian corporations. In the case of a Canadian Holder that is a corporation, dividends received on our ordinary shares, including any amounts withheld for Cayman or other non-Canadian withholding tax, if any, will be included in computing the Canadian Holder's income, and such Canadian Holder will not be entitled to the inter-corporate dividend deduction in computing taxable income which generally applies to dividends received from taxable Canadian corporations. To the extent Cayman or other non-Canadian withholding tax is paid in respect of dividends paid on our common shares, the amount of such tax may be eligible for foreign tax credit or deduction treatment subject to the detailed rules and limitations under the Tax Act.

Canadian Holders are advised to consult their own tax advisors with respect to the availability of a foreign tax credit or deduction to them having regard to their particular circumstances.

#### Dispositions
Generally, on a disposition or deemed disposition of an ordinary share, a Canadian Holder will realize a capital gain (or capital loss) equal to the amount, if any, by which the proceeds of disposition, net of any reasonable costs of disposition, exceed (or are less than) the aggregate of the Canadian Holder's adjusted cost base of the share immediately before the disposition or deemed disposition.

The adjusted cost base to the Canadian Holder of an ordinary share acquired pursuant to this offering will be determined by averaging the cost of that share with the adjusted cost base (determined immediately before acquisition of the share) of all other ordinary shares held as capital property by the Canadian Holder immediately prior to such acquisition.

Generally, a Canadian Holder is required to include in computing its income for a taxation year one-half of the amount of any capital gain, or a taxable capital gain, realized in the year. Subject to and in accordance with the provisions of the Tax Act, a Canadian Holder is required to deduct one-half of the amount of any capital loss, or an allowable capital loss, realized in a taxation year from taxable capital gains realized by the Canadian Holder in the year. Allowable capital losses in excess of taxable capital gains realized in a taxation year may be carried back and deducted in any of the three preceding taxation years or carried forward and deducted in any subsequent taxation year against taxable capital gains realized in such years. Capital gains realized by a Canadian Holder that is an individual or certain types of trusts, may give rise to a liability for alternative minimum tax under the Tax Act.

To the extent Cayman or other non-Canadian tax is paid in respect of capital gains realized on the disposition or deemed disposition of an ordinary share, the amount of such tax may be eligible for foreign tax credit treatment subject to the detailed rules and limitations under the Tax Act. Canadian Holders are advised to consult their own tax advisors with respect to the availability of a credit to them having regard to their particular circumstances.

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#### Offshore Investment Fund Property
The Tax Act contains rules which may require a taxpayer to include in income in each taxation year an amount in respect of the holding of an "offshore investment fund property". These rules could apply to a Canadian Holder in respect of an ordinary share if two conditions are both satisfied.

The first condition for such rules to apply is that the value of such shares may reasonably be considered to be derived, directly or indirectly, primarily from portfolio investments in: (i) shares of one or more corporations, (ii) indebtedness or annuities, (iii) interests in one or more corporations, trusts, partnerships, organizations, funds or entities, (iv) commodities, (v) real estate, (vi) Canadian or foreign resource properties, (vii) currency of a country other than Canada, (viii) rights or options to acquire or dispose of any of the foregoing, or (ix) any combination of the foregoing (which we refer to as the Investment Assets).

The second condition for such rules to apply to a Canadian Holder is that it must be reasonable to conclude that one of the main reasons for the Canadian Holder acquiring or holding an ordinary share was to derive a benefit from portfolio investments in Investment Assets in such a manner that the taxes, if any, on the income, profits and gains from such Investment Assets for any particular year are significantly less than the tax that would have been applicable under Part I of the Tax Act had the income, profits and gains been earned directly by the Canadian Holder.

If applicable, these rules would generally require a Canadian Holder to include in income for each taxation year in which the Canadian Holder owns an ordinary share (i) an imputed return for the taxation year computed on a monthly basis and determined by multiplying the Canadian Holder's "designated cost" (as defined in the Tax Act) of such share at the end of the month by 1/12<sup>th</sup> of the applicable prescribed rate, plus two per cent, for the period that includes such month, less (ii) the Canadian Holder's income for the year (other than a capital gain) from such share determined without reference to these rules. Any amount required to be included in computing a Canadian Holder's income under these provisions will be added to the adjusted cost base to the Canadian Holder of their share in our ordinary shares.

The application of these rules depends, in part, on the reasons for a Canadian Holder acquiring or holding our ordinary shares. Canadian Holders are urged to consult their own tax advisors regarding the application and consequences of these rules, in their own particular circumstances.

#### Additional Refundable Tax
A Canadian Holder that is throughout the relevant taxation year, a "Canadian-controlled private corporation" or at any time in the relevant taxation year a "substantive CCPC" (each as defined in the Tax Act) may be liable to pay a refundable tax on its "aggregate investment income" (as defined in the Tax Act), including amounts in respect of net taxable capital gains and certain dividends.

#### Foreign Property Information Reporting
In general, a Canadian Holder that is a "specified Canadian entity" for a taxation year or fiscal period and whose total "cost amount" of "specified foreign property" (as such terms are defined in the Tax Act) including our ordinary shares at any time in the taxation year or fiscal period exceeds C$100,000 (approximately US$77,694) will be required to file an information return with the Canada Revenue Agency for the taxation year or fiscal period disclosing certain prescribed information in respect of such property. Subject to certain exceptions, a Canadian Holder will generally be a specified Canadian entity. Our ordinary shares will come within the definition of "specified foreign property" of a Canadian Holder for the purposes of the Tax Act. Penalties may apply where a Canadian Holder fails to file the required information return in respect of such Canadian Holder's "specified foreign property" on a timely basis in accordance with the Tax Act.

The reporting rules in the Tax Act are complex and this summary does not purport to explain all circumstances in which reporting may be required. Canadian Holders should consult their own tax advisors regarding whether they must comply with these reporting requirements.

#### U.S. Federal Income Taxation Considerations
The following discussion describes the material U.S. federal income tax consequences relating to the ownership and disposition of ordinary shares by U.S. Holders (as defined below). This discussion applies to U.S. Holders that purchase our ordinary shares pursuant to this prospectus and hold such ordinary shares as capital assets. This discussion is

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based on the U.S. Internal Revenue Code of 1986, as amended, or the Code, U.S. Treasury regulations promulgated thereunder and administrative and judicial interpretations thereof, all as in effect on the date hereof and all of which are subject to change, possibly with retroactive effect. This discussion does not address all of the U.S. federal income tax consequences that may be relevant to specific U.S. Holders in light of their particular circumstances or to U.S. Holders subject to special treatment under U.S. federal income tax law (such as certain financial institutions, insurance companies, currency or securities dealers and traders in securities or other persons that generally mark their securities to market for U.S. federal income tax purposes, tax-exempt entities, retirement plans, regulated investment companies, real estate investment trusts, certain former citizens or residents of the United States, persons who hold our ordinary shares as part of a "straddle", "hedge", "conversion transaction", "synthetic security" or integrated investment, persons that have a "functional currency" other than the U.S. dollar, persons that own directly, indirectly or through attribution 10% or more of the voting power of our shares, corporations that accumulate earnings to avoid U.S. federal income tax, persons subject to special tax accounting rules under Section 451(b) of the Code, partnerships and other pass-through entities, and investors in such pass-through entities). This discussion does not address any U.S. state or local or non-U.S. tax consequences or any U.S. federal estate, gift or alternative minimum tax consequences.

As used in this discussion, the term "U.S. Holder" means a beneficial owner of our ordinary shares that is, for U.S. federal income tax purposes, (i) an individual who is a citizen or resident of the United States, (ii) a corporation (or entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state thereof, or the District of Columbia, (iii) an estate the income of which is subject to U.S. federal income tax regardless of its source or (iv) a trust (x) with respect to which a court within the United States is able to exercise primary supervision over its administration and one or more United States persons have the authority to control all of its substantial decisions or (y) that has elected under applicable U.S. Treasury regulations to be treated as a domestic trust for U.S. federal income tax purposes.

If an entity treated as a partnership for U.S. federal income tax purposes holds our ordinary shares, the U.S. federal income tax consequences relating to an investment in our ordinary shares will depend in part upon the status and activities of such entity and the particular partner. Any such entity should consult its own tax advisor regarding the U.S. federal income tax consequences applicable to it and its partners of the purchase, ownership and disposition of our ordinary shares. Persons considering an investment in our ordinary shares should consult their own tax advisors as to the particular tax consequences applicable to them relating to the purchase, ownership and disposition of our ordinary shares, including the applicability of U.S. federal, state and local tax laws and non-U.S. tax laws.

#### Passive Foreign Investment Company Consequences
In general, a corporation organized outside the United States will be treated as a passive foreign investment company, or PFIC, for any taxable year in which either (1) at least 75% of its gross income is "passive income" or (2) on average at least 50% of its assets, determined on a quarterly basis, are assets that produce passive income or are held for the production of passive income. Passive income for this purpose generally includes, among other things, dividends, interest, royalties, rents, and gains from the sale or exchange of property that gives rise to passive income. Assets that produce or are held for the production of passive income generally include cash, even if held as working capital or raised in a public offering, marketable securities, and other assets that may produce passive income. Generally, in determining whether a non-U.S. corporation is a PFIC, a proportionate share of the income and assets of each corporation in which it owns, directly or indirectly, at least a 25% interest (by value) is taken into account.

Although we do not believe that we were a PFIC for the year ending December 31, 2021, our determination is based on an interpretation of complex provisions of the law, which are not addressed in a significant number of administrative pronouncements or rulings by the Internal Revenue Service, or IRS. Accordingly, there can be no assurance that our conclusions regarding our status as a PFIC for the 2021 taxable year will not be challenged by the IRS and, if challenged, upheld in appropriate proceedings. In addition, because PFIC status is determined on an annual basis and generally cannot be determined until the end of the taxable year, there can be no assurance that we will not be a PFIC for the current taxable year. Because we may continue to hold a substantial amount of cash and cash equivalents, and because the calculation of the value of our assets may be based in part on the value of our ordinary shares, which may fluctuate considerably, we may be a PFIC in future taxable years. Even if we determine that we are not a PFIC for a taxable year, there can be no assurance that the IRS will agree with our conclusion and that the IRS would not successfully challenge our position. Our status as a PFIC is a fact-intensive determination made on an annual basis.

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If we are a PFIC in any taxable year during which a U.S. Holder owns our ordinary shares, the U.S. Holder could be liable for additional taxes and interest charges under the "PFIC excess distribution regime" upon (1) a distribution paid during a taxable year that is greater than 125% of the average annual distributions paid in the three preceding taxable years, or, if shorter, the U.S. Holder's holding period for our ordinary shares, and (2) any gain recognized on a sale, exchange or other disposition, including a pledge, of our ordinary shares, whether or not we continue to be a PFIC. Under the PFIC excess distribution regime, the tax on such distribution or gain would be determined by allocating the distribution or gain ratably over the U.S. Holder's holding period for our ordinary shares. The amount allocated to the current taxable year (i.e., the year in which the distribution occurs or the gain is recognized) and any year prior to the first taxable year in which we are a PFIC will be taxed as ordinary income earned in the current taxable year. The amount allocated to other taxable years will be taxed at the highest marginal rates in effect for individuals or corporations, as applicable, to ordinary income for each such taxable year, and an interest charge, generally applicable to underpayments of tax, will be added to the tax.

If we are a PFIC for any year during which a U.S. Holder holds our ordinary shares, we must generally continue to be treated as a PFIC by that holder for all succeeding years during which the U.S. Holder holds our ordinary shares, unless we cease to meet the requirements for PFIC status and the U.S. Holder makes a "deemed sale" election with respect to our ordinary shares. If the election is made, the U.S. Holder will be deemed to sell our ordinary shares it holds at their fair market value on the last day of the last taxable year in which we qualified as a PFIC, and any gain recognized from such deemed sale would be taxed under the PFIC excess distribution regime. After the deemed sale election, the U.S. Holder's ordinary shares would not be treated as shares of a PFIC unless we subsequently become a PFIC.

If we are a PFIC for any taxable year during which a U.S. Holder holds our ordinary shares and one of our non-U.S. corporate subsidiaries is also a PFIC (i.e., a lower-tier PFIC), such U.S. Holder would be treated as owning a proportionate amount (by value) of the shares of the lower-tier PFIC and would be taxed under the PFIC excess distribution regime on distributions by the lower-tier PFIC and on gain from the disposition of shares of the lower-tier PFIC even though such U.S. Holder would not receive the proceeds of those distributions or dispositions. Each U.S. Holder is advised to consult its tax advisors regarding the application of the PFIC rules to our non-U.S. subsidiaries.

If we are a PFIC, a U.S. Holder will not be subject to tax under the PFIC excess distribution regime on distributions or gain recognized on our ordinary shares if such U.S. Holder makes a valid "mark-to-market" election for our ordinary shares. A mark-to-market election is available to a U.S. Holder only for "marketable stock".

Our ordinary shares will be marketable stock so long as they remain listed on Nasdaq and are regularly traded, other than in de minimis quantities, on at least 15 days during each calendar quarter. If a mark-to-market election is in effect, a U.S. Holder generally would take into account, as ordinary income each year, the excess of the fair market value of our ordinary shares held at the end of such taxable year over the adjusted tax basis of such ordinary shares. The U.S. Holder would also take into account, as an ordinary loss each year, the excess of its adjusted tax basis in our ordinary shares over the fair market value of those ordinary shares at the end of the taxable year, but only to the extent of the excess of amounts previously included in income over ordinary losses deducted as a result of the mark-to-market election. The U.S. Holder's tax basis in our ordinary shares would be adjusted to reflect any income or loss recognized as a result of the mark-to-market election. Any gain from a sale, exchange or other taxable disposition of our ordinary shares in any taxable year in which we are a PFIC would be treated as ordinary income and any loss from such sale, exchange or other disposition would be treated first as ordinary loss (to the extent of any net mark-to-market gains previously included in income) and thereafter as capital loss.

A mark-to-market election will not apply to our ordinary shares for any taxable year during which we are not a PFIC, but it will remain in effect with respect to any subsequent taxable year in which we become a PFIC. Such an election will not apply to any non-U.S. subsidiaries that we may organize or acquire in the future. Accordingly, a U.S. Holder may continue to be subject to tax under the PFIC excess distribution regime with respect to any lower-tier PFICs that we may organize or acquire in the future, notwithstanding the U.S. Holder's mark-to-market election for our ordinary shares.

The tax consequences that would apply if we are a PFIC would also be different from those described above if a U.S. Holder were able to make a valid qualified electing fund, or QEF, election. At this time, we do not expect to provide U.S. Holders with the information necessary for a U.S. Holder to make a QEF election. Consequently, prospective investors should assume that a QEF election will not be available.

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Each U.S. person investing in a PFIC is generally required to file an annual information return on IRS Form 8621 setting forth such information as the U.S. Treasury Department may require. The failure to file IRS Form 8621 could result in the imposition of penalties and the extension of the statute of limitations with respect to U.S. federal income tax.

**The U.S. federal income tax rules relating to PFICs are very complex. Prospective U.S. investors are strongly urged to consult their own tax advisors with respect to the impact of our potential PFIC status on the purchase, ownership and disposition of our ordinary shares, the consequences to them of an investment in a PFIC, any elections available with respect to our ordinary shares, and the IRS information reporting obligations with respect to the purchase, ownership and disposition of the ordinary shares of a PFIC.**

#### Distributions
Subject to the discussion above under "*— Passive Foreign Investment Company Consequences*", a U.S. Holder that receives a distribution with respect to our ordinary shares generally will be required to include the gross amount of such distribution in gross income as a dividend when actually or constructively received to the extent of the U.S. Holder's pro rata share of our current and/or accumulated earnings and profits (as determined under U.S. federal income tax principles). To the extent a distribution received by a U.S. Holder is not a dividend because it exceeds the U.S. Holder's pro rata share of our current and accumulated earnings and profits, it will be treated first as a tax-free return of capital and reduce (but not below zero) the adjusted tax basis of the U.S. Holder's ordinary shares. To the extent the distribution exceeds the adjusted tax basis of the U.S. Holder's ordinary shares, the remainder will be taxed as capital gain. Because we may not account for our earnings and profits in accordance with U.S. federal income tax principles, U.S. Holders should expect all distributions to be reported to them as dividends. Distributions on our ordinary shares that are treated as dividends generally will constitute income from sources outside the United States for foreign tax credit purposes and generally will constitute passive category income. Such dividends will not be eligible for the "dividends received" deduction generally allowed to corporate shareholders with respect to dividends received from U.S. corporations.

A U.S. Holder receiving a distribution from which the 25% Canadian withholding tax (as described above in "*— Canadian Income Tax Considerations — Dividends"*) has been deducted may be entitled to a foreign tax credit in determining the U.S. Holder's federal income tax liability for the year in which the distribution is received. The availability of a full or partial foreign tax credit in respect of such Canadian withholding tax is determined under rules of considerable complexity, and the foreign tax credit may not be available in all cases**. Prospective U.S. investors are strongly urged to consult their own tax advisors with respect to the availability of the foreign tax credit with respect to distributions received from which Canadian tax has been withheld at source.**

Provided that certain requirements are met, dividends paid by a "qualified foreign corporation" to certain non-corporate U.S. Holders are eligible for taxation at a reduced capital gains rate rather than at the marginal tax rates generally applicable to ordinary income, However, if we are a PFIC for the taxable year in which the dividend is paid or the preceding taxable year (see discussion above under "*— Passive Foreign Investment Company Consequences*"), we will not be treated as a qualified foreign corporation, and consequently the reduced capital gains tax rate described above will not apply. Each U.S. Holder is advised to consult its tax advisors regarding the availability of the reduced tax rate on dividends in light of its particular circumstances.

A non-U.S. corporation (other than a corporation classified as a PFIC for the taxable year in which the dividend is paid or the preceding taxable year) generally will be considered to be a qualified foreign corporation (a) if it is eligible for the benefits of a comprehensive tax treaty with the United States which the U.S. Secretary of .the Treasury determines is satisfactory for purposes of this provision and which includes an exchange of information provision, or (b) with respect to any dividend it pays on our ordinary shares that are readily tradable on an established securities market in the United States. We believe that we qualify as a resident of Canada for purposes of, and are eligible for, the benefits of, the U.S.-Canada Treaty, although there can be no assurance in this regard. The IRS has determined that the U.S.-Canada Treaty is satisfactory for purposes of the qualified dividend rules and that it includes an exchange of information provision. Therefore, subject to the discussion above under "*— Passive Foreign Investment Company Consequences*", if the U.S.-Canada Treaty is applicable, such dividends will generally be "qualified dividend income" in the hands of individual U.S. Holders, provided that certain conditions are met, including holding period and the absence of certain risk reduction transactions.

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#### Sale, Exchange or Other Disposition of our Ordinary shares
Subject to the discussion above under "*— Passive Foreign Investment Company Consequences*", a U.S. Holder generally will recognize capital gain or loss for U.S. federal income tax purposes upon the sale, exchange or other taxable disposition of our ordinary shares in an amount equal to the difference, if any, between the amount realized (i.e., the amount of cash plus the fair market value of any property received) on the sale, exchange or other taxable disposition and such U.S. Holder's adjusted tax basis in our ordinary shares. Such capital gain or loss generally will be long-term capital gain taxable at a reduced rate for noncorporate U.S. Holders or long-term capital loss if, on the date of sale, exchange or other taxable disposition, our ordinary shares were held by the U.S. Holder for more than one year. Any capital gain of a non-corporate U.S. Holder that is not long-term capital gain is taxed at ordinary income rates. The deductibility of capital losses is subject to limitations. Any gain or loss recognized from the sale or other disposition of our ordinary shares will generally be gain or loss from sources within the United States for U.S. foreign tax credit purposes.

#### Medicare Tax
Certain U.S. Holders that are individuals, estates or trusts and whose income exceeds certain thresholds generally are subject to a 3.8% tax on all or a portion of their net investment income, which may include their gross dividend income and net gains from the disposition of our ordinary shares. If you are a United States person that is an individual, estate or trust, you are encouraged to consult your tax advisors regarding the applicability of this Medicare tax to your income and gains in respect of your investment in our ordinary shares.

#### Information Reporting
U.S. Holders may be required to file certain U.S. information reporting returns with the IRS to declare an investment in our ordinary shares, including, among others, IRS Form 8938 - Statement of Specified Foreign Financial Assets. As described above under "*Passive Foreign Investment Company Consequences*", each U.S. Holder who is a shareholder of a PFIC must file with the IRS an annual report containing certain information. U.S. Holders paying more than $100,000 for our ordinary shares may be required to file IRS Form 926 - Return by a U.S. Transferor of Property to a Foreign Corporation — reporting this payment. Substantial penalties may be imposed upon a U.S. Holder failing to comply with the required information reporting.

U.S. Holders should consult their own tax advisors regarding the information reporting rules.

**EACH PROSPECTIVE INVESTOR IS URGED TO CONSULT ITS OWN TAX ADVISOR ABOUT THE TAX CONSEQUENCES TO IT OF AN INVESTMENT IN ORDINARY SHARES IN LIGHT OF THE INVESTOR'S OWN CIRCUMSTANCES.**

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#### ENFORCEABILITY OF CIVIL LIABILITIES

#### Cayman Islands
We are incorporated under the laws of the Cayman Islands as an exempted company with limited liability. We are incorporated in the Cayman Islands because of certain benefits associated with being a Cayman Islands company, such as political and economic stability, an effective judicial system, a favorable tax system, the absence of foreign exchange control or currency restrictions and the availability of professional and support services. However, the Cayman Islands has a less developed body of securities laws as compared to the United States and may provide less protection for investors. In addition, Cayman Islands companies may not have standing to sue before the federal courts of the United States.

Our constitutional documents do not contain provisions requiring that disputes, including those arising under the securities laws of the United States, between us, our officers, directors and shareholders, be subject to arbitration.

Substantially all of our assets are located outside the United States. In addition, a majority of our directors and executive officers are nationals or residents of jurisdictions other than the United States and all or a substantial portion of their assets are located outside the United States. As a result, it may be difficult for investors to effect service of process within the United States upon us or these persons, or to enforce judgments obtained in U.S. courts against us or them, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States. It may also be difficult for you to enforce judgments obtained in U.S. courts based on the civil liability provisions of the U.S. federal securities laws against us and our officers and directors.

We have appointed Cogency Global Inc. as our agent to receive service of process with respect to any action brought against us in the U.S. District Court for the Southern District of New York in connection with this offering under the federal securities laws of the United States or of any State in the United States or any action brought against us in the Supreme Court of the State of New York in the County of New York in connection with this offering under the securities laws of the State of New York.

Travers Thorp Alberga, our counsel as to Cayman Islands law, has advised us that the courts of the Cayman Islands are unlikely to (i) recognize or enforce judgments of U.S. courts obtained against us or our directors or officers that are predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States, or (ii) in original actions brought in the Cayman Islands, to impose liabilities against us or our directors or officers that are predicated upon the securities laws of the United States or any state in the United States, so far as the liabilities impose by those provisions are penal in nature.

Travers Thorp Alberga has informed us that although there is no statutory enforcement in the Cayman Islands of judgments obtained in the federal or state courts of the United States, the courts of the Cayman Islands would recognize as a valid judgment, a final and conclusive foreign money judgment of a foreign court of competent jurisdiction without retrial on the merits based on the principle that a judgement of a competent foreign court imposes upon the judgment debtor an obligation to pay the sum for which judgement has been given provided certain conditions are met. For a foreign judgment to be enforced in the Cayman Islands, such judgement must be final and conclusive and for a liquidated sum, and must not be in respect of taxes or a fine or a penalty, inconsistent with a Cayman Islands judgement in respect of the same matter, impeachable on the grounds of fraud or obtained in a manner, or be of a kind the enforcement of which is contrary to natural justice or the public policy of the Cayman Islands. Awards of punitive or multiple damages may well be held to be contrary to public policy. A Cayman Islands court my stay enforcement proceedings if concurrent proceedings are brought elsewhere.

#### Canada
It may be difficult for holders of securities who reside in the United States to effect service within the United States upon our directors and officers. It may also be difficult for holders of securities who reside in the United States to realize in the United States upon judgments of courts of the United States predicated upon our civil liability and the civil liability of our directors and officers under the United States federal securities laws. We have been advised that a judgment of a U.S. court predicated solely upon civil liability under U.S. federal securities laws or the securities or "blue sky" laws of any state within the United States, would likely be enforceable in Canada if the United States court in which the judgment was obtained has a basis for jurisdiction in the matter that would be recognized by a Canadian court for the same purposes. We have also been advised, however, that there is substantial doubt whether an action could be brought in Canada in the first instance on the basis of the liability predicated solely upon U.S. federal securities laws.

[**Table of Contents**](#TOC001)

#### UNDERWRITING
In connection with this offering, we expect to enter an underwriting agreement with Boustead Securities, LLC, as representative of the underwriters named in this prospectus, with respect to the ordinary shares in this offering. Under the terms and subject to the conditions contained in the underwriting agreement, the representative will agree to purchase from us on a firm commitment basis the respective number of ordinary shares at the public price less the underwriting discounts and commissions set forth on the cover page of this prospectus, and each of the underwriters has severally agreed to purchase, and we have agreed to sell to the underwriters, at the public offering price per shares less the underwriting discounts and commissions set forth on the cover page of this prospectus, the number of ordinary shares listed next to its name in the following table.

---

| | |
|:---|:---|
|  **Underwriter** | **Number of <br>Shares** |
|  Boustead Securities, LLC |  |
|  Total | 923077 |

---

The ordinary shares sold by the underwriters to the public will initially be offered at the initial public offering price set forth on the cover page of this prospectus. Any ordinary shares sold by the underwriters to securities dealers may be sold at a discount from the initial public offering price not to exceed $ per share. If all of the shares are not sold at the initial offering price, the representative may change the offering price and the other selling terms. The representative has advised us that the underwriters do not intend to make sales to discretionary accounts. The underwriting agreement will provide that the obligations of the underwriters to pay for and accept delivery of the shares are subject to the passing upon certain legal matters by counsel and certain conditions such as confirmation of the accuracy of representations and warranties by us about our financial condition and operations and other matters. The obligation of the underwriters to purchase the ordinary shares is conditioned upon our receiving approval to list the ordinary shares on Nasdaq.

#### Over-Allotment Option
If the underwriters sell more shares than the total number set forth in the table above, we have granted to the underwriters an option, exercisable one or more times in whole or in part, not later than 45 days after the date of this prospectus, to purchase up to 138,462 additional ordinary shares at the public offering price less the underwriting discounts and commissions set forth on the cover page of this prospectus, constituting 15% of the total number of shares to be offered in this offering (excluding shares subject to this option). The underwriters may exercise this option solely for the purpose of covering over-allotments in connection with this offering. This offering is being conducted on a firm commitment basis. Any shares issued or sold under the option will be issued and sold on the same terms and conditions as the other shares that are the subject of this offering.

#### Discounts and Commissions; Expenses
The underwriting discounts and commissions are a cash fee equal to 7% of gross proceeds from the sale of securities in this offering. We have been advised by the representative that the underwriters propose to offer the ordinary shares to the public at the public offering price set forth on the cover of this prospectus and to dealers at a price that represents a concession not in excess of $ per share under the public offering price. After the offering, the representative may change the public offering price and other selling terms.

The following table summarizes the public offering price and the underwriting discounts and commissions payable to the underwriters by us in connection with this offering (assuming an initial public offering price of $6.50 per share, which is the midpoint of the estimated range of the initial public offering price shown on the cover page of this prospectus, and assuming both the exercise and non-exercise of the over-allotment option that we have granted to the underwriters):

---

| | | | |
|:---|:---|:---|:---|
|  | **Per Share** | **Without <br>Over-Allotment <br>Option** | **With <br>Over-Allotment <br>Option** |
|  Initial public offering price | $6.500 | $6000000 | $6900000 |
|  Underwriting discounts and commissions (7%) | 0.455 | 420000 | 483000 |
|  Non-accountable expense allowance (1%) | 0.065 | 60000 | 69000 |
|  Proceeds to us, before expenses | $5.980 | $5520000 | $6348000 |

---

[**Table of Contents**](#TOC001)

We have agreed to pay the representative a non-accountable expense allowance equal to 1% of the gross proceeds received at the closing of this offering.

We have agreed to reimburse the representative for reasonable out-of-pocket expenses incurred by the representative in connection with this offering, regardless of whether the offering is consummated, up to $283,000. The representative out-of-pocket expenses include but are not limited to: (i) road show and travel expenses, (ii) reasonable fees of representative's legal counsel, (iii) the cost of background check on our officers, directors and major shareholders and (iv) due diligence expenses. Any out-of-pocket expenses above $5,000 are to be pre-approved by us. As of the date of this prospectus, we have paid the representative refundable advances of $119,915, which shall be applied against its actual out-of-pocket accountable expenses. Such advance payments will be returned to us to the extent any portion of the advance is not actually incurred, in accordance with FINRA Rule 5110(g)(4)(A).

We estimate that our total expenses of this offering, exclusive of the underwriting discounts and commissions and the non-accountable expense allowance, will be approximately $731,000.

#### Representative's Warrants
We have agreed to issue to the representative (or its permitted assignees) warrants to purchase up to a total number of ordinary shares equal to 7% of the total number of shares sold in this offering at an exercise price equal to 125% of the initial public offering price of the ordinary shares sold in this offering (subject to adjustments). The representative's warrants will be exercisable at any time, and from time to time, in whole or in part, commencing from the closing of this offering and expiring on the fifth anniversary of the effective date of the registration statement of which this prospectus is a part. The representative's warrants will have a cashless exercise provision and will provide for immediate "piggyback" registration rights with respect to the registration of the shares underlying the warrants for a period of seven years from commencement of sales of this offering. The registration statement of which this prospectus forms a part also registers the representative's warrants and the ordinary shares issuable upon exercise of the representative's warrants.

The representative's warrants and the underlying shares are deemed to be compensation by FINRA, and therefore will be subject to a 180-day lock-up period pursuant to FINRA Rule 5110(e)(1). In accordance with FINRA Rule 5110(e)(1), neither the representative's warrants nor any of our ordinary shares issued upon exercise of the representative's warrants may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of such securities by any person, for a period of 180 days immediately following commencement of sale of this offering subject to certain exceptions permitted by FINRA Rule 5110(e)(2).

#### Indemnification
We have agreed to indemnify the underwriters against liabilities relating to this offering arising under the Securities Act and the Exchange Act, liabilities arising from breaches of some, or all of the representations and warranties contained in the underwriting agreement, and to contribute to payments that the underwriters may be required to make for these liabilities.

#### Right of First Refusal
The representative has the right of first refusal for two (2) years following the consummation of this offering or the termination or expiration of the engagement with the representative to act as financial advisor or to act as joint financial advisor on at least equal economic terms on any public or private financing (debt or equity), merger, business combination, recapitalization or sale of some or all of our equity or our assets, whether in conjunction with another broker-dealer or on our own volition. In the event that we engage the representative to provide such services, the representative will be compensated consistent with the engagement agreement with the representative, unless we mutually agree otherwise. To the extent we are approached by a third party to lead any public or private financing (debt or equity), merger, business combination, recapitalization or sale of some or all of our equity or assets, the representative will be notified of the transaction and be granted the right to participate in such transaction under any syndicate formed by such third party.

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#### No Sales of Similar Securities
We have agreed not to offer, issue, sell, contract to sell, encumber, grant any option for the sale of or otherwise dispose of any of our ordinary shares or other securities convertible into or exercisable or exchangeable for our ordinary shares at a price per share that is less than the price per share in this offering, or modify the terms of any existing securities, whether in conjunction with another broker-dealer or on our own volition, for a period of twelve months following date on which our ordinary shares are trading on Nasdaq, without the prior written consent of the representative.

#### Lock-Up Agreements
Our officers, directors and holders of 5% or greater of our ordinary shares have agreed to be locked up for a period of twelve months from the date on which the trading of our ordinary shares commences. Holders of 1 – 4.99% of our ordinary have agreed to be locked up for a period of six months from the date on which the trading of our ordinary shares commences; provided that if the aggregate of such holders shares were to equal or exceed 20% of our issued and outstanding shares on a fully diluted basis prior to the completing of this offering, then their lock up period shall be for twelve months from the date of trading of our ordinary shares commences. Holders of less than 1% of our ordinary shares are not subject to any lock up; provided that if the aggregate of such holder's shares were to equal or exceed 5% of our issued and outstanding shares on a fully diluted basis prior to the completing of this offering, then their lock up period shall be for six months from the date of trading of our ordinary shares commences. During the lock-up period, without the prior written consent of the underwriters, they shall not, directly or indirectly, (i) offer, pledge, assign, encumber, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, any ordinary shares or any securities convertible into or exercisable or exchangeable for ordinary shares, owned either of record or beneficially by any signatory of the lock-up agreement on the date of the prospectus or thereafter acquired; (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the ordinary shares or any securities convertible into or exercisable or exchangeable for ordinary shares, whether any such transaction described in clauses (i) or (ii) above is to be settled by delivery of ordinary shares or such other securities, in cash or otherwise, or publicly announce an intention to do any of the foregoing; and (iii) make any demand for or exercise any right with respect to, the registration of any ordinary shares or any security convertible into or exercisable or exchangeable for ordinary shares.

#### Price Stabilization, Short Positions and Penalty Bids
In connection with the offering, the underwriters may purchase and sell shares in the open market. Purchases and sales in the open market may include short sales, purchases to cover short positions, which may include purchases pursuant to the over-allotment option, and stabilizing purchases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Short sales involve secondary market sales by an underwriter of a greater number of shares than they are required to purchase in the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Covered" short sales are sales of shares in an amount up to the number of shares represented by the over-allotment option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Naked" short sales are sales of shares in an amount in excess of the number of shares represented by the over-allotment option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Covering transactions involve purchases of shares either pursuant to the over-allotment option or in the open market after the distribution has been completed in order to cover short positions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To close a naked short position, an underwriter must purchase shares in the open market after the distribution has been completed. A naked short position is more likely to be created if an underwriter is concerned that there may be downward pressure on the price of the shares in the open market after pricing that could adversely affect investors who purchase in the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To close a covered short position, an underwriter must purchase shares in the open market after the distribution has been completed or must exercise the over-allotment option. In determining the source of shares to close the covered short position, the underwriter will consider, among other things, the price of shares available for purchase in the open market as compared to the price at which they may purchase shares through the over-allotment option.

[**Table of Contents**](#TOC001)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stabilizing transactions involve bids to purchase shares so long as the stabilizing bids do not exceed a specified maximum.

Purchases to cover short positions and stabilizing purchases, as well as other purchases by an underwriter for its own account, may have the effect of preventing or retarding a decline in the market price of the ordinary shares. They may also cause the price of the ordinary shares to be higher than the price that would otherwise exist in the open market in the absence of these transactions. The underwriters may conduct these transactions in the over-the-counter market or otherwise. If the underwriters commence any of these transactions, they may discontinue them at any time.

#### Determination of Offering Price
In determining the initial public offering price, we and the representative have considered a number of factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the information set forth in this prospectus and otherwise available to the representative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our prospects and the history and prospects for the industry in which we compete;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an assessment of our management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our prospects for future revenues and earnings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the general condition of the securities markets at the time of this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the recent market prices of, and demand for, publicly traded securities of generally comparable companies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other factors deemed relevant by the representative and us.

The estimated initial public offering price set forth on the cover page of this preliminary prospectus is subject to change as a result of market conditions and other factors. Neither we nor the representative can assure investors that an active trading market will develop for our ordinary shares, or that the shares will trade in the public market at or above the initial public offering price.

#### Electronic Offer, Sale and Distribution of Ordinary shares
A prospectus in electronic format may be delivered to potential investors by one or more of the underwriters participating in this offering. In addition, shares may be sold by the representative to securities dealers who resell our ordinary shares to online brokerage account holders. The prospectus in electronic format will be identical to the paper version of such prospectus. Other than the prospectus in electronic format, the information on any underwriter's website and any information contained in any other website maintained by an underwriter is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or the representative in its capacity as representative and should not be relied upon by investors.

#### Offer Restrictions Outside the United States
Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to this offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful. In particular, our ordinary shares have not been qualified for distribution by prospectus in Canada and may not be offered or sold in Canada during the course of their distribution hereunder except pursuant to a Canadian prospectus or prospectus exemption.

[**Table of Contents**](#TOC001)

#### EXPENSES RELATED TO THIS OFFERING
Set forth below is an itemization of our total expenses, excluding underwriting discounts and commissions, which are expected to be incurred in connection with the offer and sale of the ordinary shares by us. With the exception of the SEC registration fee, the FINRA filing fee and the Nasdaq listing fee, all amounts are estimates.

---

| | |
|:---|:---|
|  | **Amount** |
|  SEC registration fee | $1984.01 |
|  FINRA filing fee | 3182.45 |
|  Nasdaq listing fee | 75000.00 |
|  Accounting fees and expenses | 100000.00 |
|  Legal fees and expenses | 247500.00 |
|  Transfer agent fees and expenses | 10000.00 |
|  Printing fees and expenses | 5000.00 |
|  Miscellaneous | 5333.54 |
|  **TOTAL** | $**448000.00** |

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[**Table of Contents**](#TOC001)

#### LEGAL MATTERS
Certain legal matters as to the United States federal and New York law in connection with this offering will be passed upon for us by Bevilacqua PLLC. Certain legal matters as to the United States federal and New York law in connection with this offering will be passed upon for the underwriters by Lucosky Brookman LLP. The validity of the ordinary shares offered in this offering and certain other legal matters as to Cayman Islands law will be passed upon for us by Travers Thorp Alberga. Legal matters as to Canadian laws will be passed upon for us by Fish LPC. Bevilacqua PLLC may rely upon Travers Thorp Alberga with respect to matters governed by Cayman Islands law and may rely upon Fish LPC with respect to matters governed by Canadian law.

Bevilacqua PLLC holds 25,000 ordinary shares, which it received as partial consideration for legal services previously provided to us.

#### EXPERTS
Our consolidated financial statements as of December 31, 2021 and 2020 and for the years then ended included in this prospectus have been audited by BF Borgers CPA PC, an independent registered public accounting firm, as stated in their report appearing herein. Such financial statements are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The offices of BF Borgers CPA PC are located at 5400 W. Cedar Avenue, Lakewood, CO 80226.

#### WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration statement on Form F-1, including relevant exhibits and schedules, under the Securities Act with respect to the ordinary shares to be sold in this offering. This prospectus, which constitutes a part of the registration statement, does not contain all of the information contained in the registration statement. You should read the registration statement on Form F-1 and its exhibits and schedules for further information with respect to us and the ordinary shares.

Immediately upon completion of this offering, we will become subject to periodic reporting and other informational requirements of the Exchange Act as applicable to foreign private issuers. Accordingly, we will be required to file reports, including annual reports on Form 20-F, and other information with the SEC. The SEC maintains a website that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address of the website is *www.sec.gov*. Additionally, we will make these filings available, free of charge, on our website at *www.droneify.com* as soon as reasonably practicable after we electronically file such materials with, or furnish them to, the SEC. The information on our website, other than these filings, is not, and should not be, considered part of this prospectus and is not incorporated by reference into this document.

As a foreign private issuer, we are exempt from the rules of the Exchange Act prescribing the furnishing and content of proxy statements to shareholders, and our executive officers, directors and principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act. In addition, we will not be required under the Exchange Act to file periodic reports and financial statements with the SEC as frequently or as promptly as U.S. companies whose securities are registered under the Exchange Act.

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#### FINANCIAL STATEMENTS

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| | |
|:---|:---|
|  | **Page** |
|  [**Unaudited Consolidated Financial Statements for the Six Months Ended June 30, <br>2022 and 2021**](#T008) | **F-2** |
|  [Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021](#T009) | F-3 |
|  [Consolidated Statements of Operations for the Six Months Ended June 30, 2022 and 2021](#T010) | F-4 |
|  [Consolidated Statements of Changes in Shareholders' Deficit for the Six Months Ended June 30, 2022](#T011) | F-5 |
|  [Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021](#T012) | F-6 |
|  [Notes to the Unaudited Consolidated Financial Statements](#T013) | F-7 |
|  [**Audited Consolidated Financial Statements for the Years Ended December 31, <br>2021 and 2020**](#T001) | **F-17** |
|  [Independent Auditor's Report](#T002) | F-18 |
|  [Consolidated Balance Sheets as of December 31, 2021 and 2020](#T003) | F-19 |
|  [Consolidated Statements of Operations for the Years Ended December 31, 2021 and 2020](#T004) | F-20 |
|  [Consolidated Statements of Changes in Shareholders' Equity (Deficit) for Years Ended December 31, 2021 and 2020](#T005) | F-21 |
|  [Consolidated Statements of Cash Flows for the Years Ended December 31, 2021 and 2020](#T006) | F-22 |
|  [Notes to the Consolidated Financial Statements](#T007) | F-23 |

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[**Table of Contents**](#TOC001)

**DRONEIFY HOLDINGS LIMITED<br>UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>SIX MONTHS ENDED JUNE 30, 2022 AND 2021**

[**Table of Contents**](#TOC001)

#### Droneify Holdings Limited<br>Consolidated Balance Sheets<br>(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  **Assets** |  |  |
|  Current assets |  |  |
| &nbsp;&nbsp;&nbsp; Cash | $37608 | $34599 |
| &nbsp;&nbsp;&nbsp; Accounts receivable, net | 79640 | 337490 |
| &nbsp;&nbsp;&nbsp; Prepaid and other current assets | 16507 | 8359 |
|  Total current assets | 133755 | 380448 |
| &nbsp;&nbsp;&nbsp; Property and equipment, net | 29192 | 43883 |
|  Total assets | $162947 | $424331 |
|  **Liabilities and Shareholders' Deficit** |  |  |
|  Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payable | $497052 | $491207 |
| &nbsp;&nbsp;&nbsp; Accrued liabilities | 9331 | 315322 |
| &nbsp;&nbsp;&nbsp; Convertible notes |  | 42665 |
| &nbsp;&nbsp;&nbsp; Loans payable | 46608 | 47406 |
| &nbsp;&nbsp;&nbsp; Notes payable – related party |  | 620 |
|  Total current liabilities | 552991 | 897220 |
|  Total liabilities | 552991 | 897220 |
|  Commitments and contingencies |  |  |
|  Shareholders' deficit |  |  |
| &nbsp;&nbsp;&nbsp; Authorized Capital: 500,000,000 shares authorized; $0.0001 par value; 6,069,667 and 6,034,710 shares issued and outstanding, respectively | 607 | 603 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 4586605 | 4530076 |
| &nbsp;&nbsp;&nbsp; Accumulated deficit | (3755363) | (3770315) |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (129385) | (134969) |
|  Shareholders' equity attributable to shareholders of Droneify Holdings Limited | 702464 | 625395 |
| &nbsp;&nbsp;&nbsp; Non-controlling interests | (1092508) | (1098284) |
|  Total shareholders' deficit | (390044) | (472889) |
|  Total liabilities and Shareholders' deficit | $162947 | $424331 |

---

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

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#### Droneify Holdings Limited<br>Consolidated Statements of Operations<br>(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended <br>June 30,** | **Six Months Ended <br>June 30,** |
|  | **2022** | **2021** |
|  Revenue | $118048 | $46964 |
|  Cost of revenue | 62329 | 43434 |
|  Gross profit | 55719 | 3530 |
|  Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative expense | 50543 | 193092 |
| &nbsp;&nbsp;&nbsp; Professional fees | 12994 | 13338 |
| &nbsp;&nbsp;&nbsp; Depreciation | 3789 | 3863 |
| &nbsp;&nbsp;&nbsp; Research and development | 103 | 4245 |
|  Total operating expenses | 67429 | 214538 |
|  Net loss from operations | (11710) | (211008) |
|  Other income (expenses) |  |  |
| &nbsp;&nbsp;&nbsp; Other income | 30867 | 129 |
|  Total other income | 30867 | 129 |
|  Income (loss) before income taxes | 19157 | (210879) |
| &nbsp;&nbsp;&nbsp; Provision for income taxes |  |  |
|  Net income (loss) | $19157 | $(210879) |
| &nbsp;&nbsp;&nbsp; Less: Net income (loss) attributable to noncontrolling interests | 4205 | (46288) |
|  Net income (loss) attributable to shareholders of Droneify Holdings Limited | $14952 | $(164591) |
|  Comprehensive income (loss) |  |  |
| &nbsp;&nbsp;&nbsp; Other comprehensive income (loss) | 7155 | (24528) |
|  Comprehensive income (loss) | $26312 | (235407) |
| &nbsp;&nbsp;&nbsp; Less: Comprehensive income (loss) attributable to noncontrolling interests | 5776 | (51672) |
|  Net comprehensive income (loss) attributed to shareholders of Droneify Holdings Limited | $20536 | $(183735) |
|  Basic income (loss) per ordinary share | $0.00 | $(0.04) |
|  Diluted income (loss) per ordinary share | $0.00 | $(0.04) |
|  Basic weighted average number of ordinary shares outstanding | 5984188 | 5956897 |
|  Diluted weighted average number of ordinary shares outstanding | 5984188 | 5956897 |

---

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

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#### Droneify Holdings Limited<br>Consolidated Statements of Changes in Shareholders' Deficit<br>(Unaudited)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Capital** | **Capital** | **Additional <br>Paid-In <br>Capital** | **Accumulated <br>Deficit** | **Accumulated <br>Other <br>Comprehensive <br>Loss** | **Non- <br>Controlling <br>Interests** | **Total** |
|  | **Shares** | **Amount** | **Additional <br>Paid-In <br>Capital** | **Accumulated <br>Deficit** | **Accumulated <br>Other <br>Comprehensive <br>Loss** | **Non- <br>Controlling <br>Interests** | **Total** |
|  **Balance – December 31, 2021** | 6034710 | $603 | $4530076 | $(3770315) | $(134969) | $(1098284) | $(472889) |
|  Shares issued for conversion of debt | 34957 | 4 | 51005 |  |  |  | 51009 |
|  Stock option expense |  |  | 5524 |  |  |  | 5524 |
|  Net income |  |  |  | 14952 |  | 4205 | 19157 |
|  Other comprehensive loss |  |  |  |  | 5584 | 1571 | 7155 |
|  **Balance – June 30, 2022** | 6069667 | $607 | $4586605 | $(3755363) | $(129385) | $(1092508) | $(390044) |

---

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

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#### Droneify Holdings Limited<br>Consolidated Statements of Cash Flows<br>(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended <br>June 30,** | **Six Months Ended <br>June 30,** |
|  | **2022** | **2021** |
|  Cash Flows From Operating Activities: |  |  |
| &nbsp;&nbsp;&nbsp; Net income (loss) | $19157 | $(210879) |
| &nbsp;&nbsp;&nbsp; Adjustments to reconcile net income (loss) to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock based compensation | 5524 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 14123 | 14404 |
| &nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 255253 | 10134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other assets | (8390) | (180) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 14286 | 17284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | (295812) | 116274 |
|  Net cash provided by (used in) operating activities | 4141 | (52963) |
|  Cash Flows From Financing Activities: |  |  |
| &nbsp;&nbsp;&nbsp; Repayment of notes payable – related party | (617) |  |
|  Net cash used in financing activities | (617) |  |
|  Effect of exchange rate changes on cash | (515) | 2456 |
|  Net change in cash | 3009 | (50507) |
|  Cash, beginning of period | 34599 | 98312 |
|  Cash, end of period | $37608 | $47805 |
|  Supplemental cash flow information |  |  |
| &nbsp;&nbsp;&nbsp; Cash paid for interest | $— | $— |
| &nbsp;&nbsp;&nbsp; Cash paid for taxes | $— | $— |
|  Non-cash investing and financing transactions: |  |  |
| &nbsp;&nbsp;&nbsp; Conversion of debt into capital | $51009 | $105206 |

---

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

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#### Droneify Holdings Limited<br>Notes to the Unaudited Consolidated Financial Statements<br>June 30, 2022 and 2021

#### Note 1. Nature of Business and Going Concern

#### Nature of B usiness
Droneify Holdings Limited ("Droneify Holdings") was incorporated as a Cayman Islands exempted company on August 24, 2022. Its predecessor company, Droneify Ltd. ("Droneify"), was incorporated on March 20, 2015 in the Province of Ontario, Canada.

Droneify Holdings and its subsidiaries (collectively known as the "Company") is a development stage technology company focused on designing, developing, and deploying drone-enabled solutions and technology for the purposes of capturing, analyzing, and reporting on data to assist customers in a variety of industries, allowing them to improve decision-making and reduce operational risks and costs. The Company offers leading-edge aerial intelligence solutions with an emphasis on automating complex, recurring operations that are required for compliance and growth.

The Company serves clients across a variety of industries, with a current emphasis on niche markets such as utilities, energy, construction, and infrastructure. The Company is actively developing an online-based drone operations, software, and hardware management system, with the goal of using this platform as the basis for a broader solution that integrates the collection, storage and analysis of data for end users within a platform-as-a-service subscription model.

On September 23, 2022, the Company commenced a corporate restructuring pursuant to a share exchange agreement that Droneify Holdings entered into with Droneify and its shareholders. Pursuant to the share exchange agreement, Droneify Holdings acquired 6,069,667 class A common shares of Droneify in exchange for which it issued 6,069,667 ordinary shares to the shareholders of Droneify. As a result of this restructuring, Droneify Holdings owns 78.05% of the issued and outstanding class A common shares of Droneify. Droneify Holdings is continuing to exchange shares from Droneify's shareholders as it receives additional signatures to the share exchange agreement with plans to acquire all shares of Droneify, making it a wholly-owned subsidiary of Droneify Holdings.

In 2018, Droneify completed an internal reorganization transaction pursuant to which it incorporated 2659498 Ontario Ltd. as a wholly owned subsidiary and transferred its software to this entity on a taxable basis. The reorganization was completed to create a potential future Canadian tax benefit for participating Canadian shareholders by reducing income taxes on a future disposition of their shares.

The Company does not have any other subsidiaries.

#### Reorganization
The corporate restructuring transaction between Droneify Holdings and Droneify is considered as a merger of entities under common control. Under the guidance in ASC 805-50, for transactions between entities under common control, the assets, liabilities and results of operations, are recognized at their carrying amounts on the date of the share exchange agreement, which required retrospective combination of Droneify Holdings and Droneify for all periods presented. The consolidated financial statements have been prepared as if the existing corporate structure had been in existence throughout all periods. This includes a retrospective presentation for all equity related disclosures, including issued shares and earnings per share, which have been revised to reflect the effects of the reorganization.

#### Going Concern Uncertainty
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. The Company had minimal cash as of June 30, 2022, had limited gross profit and incurred a loss from operations for the six months ended June 30, 2022 and past few years. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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#### Droneify Holdings Limited<br>Notes to the Unaudited Consolidated Financial Statements<br>June 30, 2022 and 2021

#### Note 1. Nature of Business and Going Concern (cont.)
The Company proposes to fund operations through sales of its products and equity financing arrangements. However, because of the lack of sales and the absence of any active trading market for its ordinary shares, its financial condition and its lack of an operating history, the Company may not be able to raise funds for capital expenditures, working capital and other cash requirements and will have to rely on advances from a minority shareholder and officer. If the Company cannot generate revenue from its products, it may not be able to continue in its business.

#### Note 2. Summary of Significant Accounting Policies

#### Basis of Presentation and Consolidation
The financial statements have been prepared in accordance with Generally Accepted Accounting Principles of the United States of America ("GAAP").

The consolidated financial statements include the financial statements of the Company and all its majority-owned subsidiaries from the dates they were incorporated. All intercompany balances and transactions have been eliminated in consolidation.

#### Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

#### Functional and Presentation Currency
These financial statements are presented in U.S dollars and the Company's functional currency is Canadian dollars.

#### Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The Company assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. The Company has concluded that it has acted as a principal in all of its existing revenue arrangements due to the fact that the Company has purchased services from suppliers, added other services and resold those bundled services as a principal. The Company intends to act as principal and/or agent in the future, depending on the nature of the contemplated transaction. In the instance where the Company acts as agent in its future transactions, only that income that is earned as commissions or booking fees for both pilots and clients will be recognized as revenue, net of any amounts due to or from the pilots and clients, respectively. In accordance with ASC 606, revenue is only recognized when pervasive evidence that the transaction has been completed and the commissions and fees are due and payable to the Company.

The Company derives its revenue from service contracts using its Unmanned Aerial Vehicle ("UAV") technology to provide imaging and inspections to customers in a wide variety of industries. The Company's contracts are short-term, ranging from 5 – 7 days.

Revenue is recognized by the Company at the time services are rendered. Revenue earned from rendering UAV services is recognized at the fair value of services provided in accordance with the customer contract. The Company recognizes revenue net of variable consideration, which arises through the provision of discounts.

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#### Droneify Holdings Limited<br>Notes to the Unaudited Consolidated Financial Statements<br>June 30, 2022 and 2021

#### Note 2. Summary of Significant Accounting Policies (cont.)
Costs of fulfilling the Company's performance obligations and revenue associated with these performance obligations are incurred simultaneously. The Company has not deferred any expenditures with regard to fulfilling its contracts.

#### Cost of Revenue
Costs are recognized when incurred. Cost of revenue consists of direct labor, materials, drone depreciation and other direct costs.

#### Research and Development
The Company incurs research and development costs during the process of researching and developing the Company's software, algorithms, information technologies and other intellectual properties. The Company's research and development costs consist primarily of data acquisition and personnel costs of scientists and laboratory technicians. The Company expenses these costs as incurred until the resulting product has been completed, tested, validated and made ready for commercial use.

#### Foreign Currency Translation
The Company's financial statements are presented in United States dollars, and the functional currency is Canadian dollars (CAD). Monetary assets and liabilities denominated in foreign currencies are converted to U.S. dollars ($) at the appropriate rates of exchange prevailing at the statement of financial position dates while other assets and liabilities are converted at the rates of exchange applicable at the dates acquired or incurred. Revenue and expenses are translated into U.S. dollars at rates of exchange applicable during the periods in which they were earned or expensed. All gains and losses are included in the statement of loss and comprehensive loss as they arise.

#### Cash and Cash Equivalents
For purposes of balance sheet presentation and reporting of cash flows, the Company considers all unrestricted demand deposits, money market funds and highly liquid debt instruments with an original maturity of less than 90 days to be cash and cash equivalents. The Company had no cash equivalents at June 30, 2022 and December 31, 2021.

#### Accounts Receivable
Accounts receivable are recorded in accordance with ASC 310, "Receivables." Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in its existing accounts receivable. The Company does not currently have any amount recorded as an allowance for doubtful accounts. Based on management's estimate and based on all accounts being current, the Company has not deemed it necessary to reserve for doubtful accounts at this time.

During the six months ended June 30, 2022 and 2021, the Company recorded bad debt of $0.

#### Drone and Other Equipment
Drone and other equipment are stated at cost, net of accumulated depreciation or accumulated impairment losses, if any, in accordance with ASC 360-10-35-7 and ASC 360-10-50-1(d). Such cost includes the cost of replacing component parts of the property and equipment and any expenditures required to make the property and equipment ready for use. Repairs and maintenance are charged against income as incurred. Expenditures that extend the estimated life of an asset are capitalized.

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#### Droneify Holdings Limited<br>Notes to the Unaudited Consolidated Financial Statements<br>June 30, 2022 and 2021

#### Note 2. Summary of Significant Accounting Policies (cont.)
Depreciation is provided annually on property and equipment at rates designed to charge the cost of the assets over their estimated useful lives, as follows:

---

| | | |
|:---|:---|:---|
|  **Category** | **Method** | **Useful Life** |
|  Drone equipment | 20% declining balance | 5 years |
|  Furniture and fixtures | 20% declining balance | 5 years |
|  Computers | 55% declining balance | 5 years |

---

The assets' residual values, useful lives and methods of depreciation are reviewed at each fiscal year-end and adjusted prospectively, if appropriate. Due to the increase in maintenance costs in the latter years of service, depreciation of drone equipment is computed using the declining balance method of depreciation and is recognized in cost of revenue on the statement of loss and comprehensive loss. Depreciation of furniture, fixtures and computers is recognized in general and administrative expenses.

An item of property and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is included in the statement of loss and comprehensive loss when the asset is derecognized.

#### Impairment of Non-financial Assets
The Company determines at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, the Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated for valuation multiples or other available fair value indicators. Impairment losses are recognized in the statement of loss and comprehensive loss in those expense categories consistent with the function of the impaired asset.

An assessment is made at each reporting date of whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If an indication exists, the Company estimates the asset's recoverable amount.

#### Fair Value Measurements
The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 — Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 — Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

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#### Droneify Holdings Limited<br>Notes to the Unaudited Consolidated Financial Statements<br>June 30, 2022 and 2021

#### Note 2. Summary of Significant Accounting Policies (cont.)
The Company's financial instruments, including cash, accounts receivable, prepaid expense and other current assets, accounts payable and accrued liabilities, convertible notes, loans payable, and notes payable related party, are carried at historical cost. At June 30, 2022 and December 31, 2021, the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments.

#### Leases
The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, operating lease liabilities — current, and operating lease liabilities — noncurrent on the balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in the balance sheets.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Leases with a lease term of 12 months or less at inception are not recorded on the balance sheet and are expensed on a straight-line basis over the lease term in the statement of operations.

#### Stock-based Compensation
The Company recognizes compensation expense for stock-based compensation in accordance with ASC Topic 718. For employee and non-employee stock-based awards, the Company calculates the fair value of the award on the date of grant using the option-pricing model for options and the quoted price of its ordinary shares for unrestricted shares; the expense is recognized over the service period for awards expected to vest. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class, and historical experience.

#### Deferred Income Taxes and Valuation Allowance
The Company accounts for income taxes under ASC 740 "Income Taxes." Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

#### Recent Accounting Pronouncements
In June 2022, the Financial Accounting Standards Board (the "FASB") issued ASU 2022-03, ASC Subtopic "Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions". These amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments in this update are effective for public business entities for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements

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#### Droneify Holdings Limited<br>Notes to the Unaudited Consolidated Financial Statements<br>June 30, 2022 and 2021

#### Note 2. Summary of Significant Accounting Policies (cont.)
In November 2021, the Financial Accounting Standards Board (the "FASB") issued ASU 2021-10, "Government Assistance (Topic 832)" which enhances disclosure of transactions with governments that are accounted for by applying a grant or contribution model. The new pronouncement requires entities to provide information about the nature of the transaction, terms and conditions associated with the transaction and financial statement line items affected by the transaction. The standard must be adopted for year ends beginning after December 15, 2021, with early adoption permitted. The Company adopted the standard on January 1, 2022, and does not expect the adoption of this standard to have any material impact on its consolidated financial statements.

In October 2021, the FASB issued ASU No. 2021-08, "Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805)." This ASU requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. At the acquisition date, the acquirer applies the revenue model as if it had originated the acquired contracts. The ASU is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the ASU should be applied prospectively. Early adoption is also permitted, including adoption in an interim period. If early adopted, the amendments are applied retrospectively to all business combinations for which the acquisition date occurred during the fiscal year of adoption. This ASU is currently not expected to have a material impact on the Company's consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments Credit Losses — Measurement of Credit Losses on Financial Instruments." This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, which includes the Company's accounts receivable. This ASU is effective for the Company for reporting periods beginning after December 15, 2022. The Company is currently assessing the potential impact that the adoption of this ASU will have on its consolidated financial statements.

In May 2021, the FASB issued ASU 2021-04, "Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40): Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options." The amendments in ASU 2021-04 provide guidance to clarify and reduce diversity in an issuer's accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The guidance is effective for fiscal years beginning after December 15, 2021, including interim periods therein, and early adoption is permitted. The adoption of ASU 2021-04 by the Company on January 1, 2022 did not have any impact on the consolidated financial statements.

The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements.

#### Note 3. Property and Equipment
Property and equipment consist of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  Drones | $102088 | $103836 |
|  Computers | 50770 | 51639 |
|  Office equipment | 37432 | 38072 |
|  | 190290 | 193547 |
|  Accumulated depreciation | (161098) | (149664) |
|  Property and equipment, net of accumulated depreciation | $29192 | $43883 |

---

Depreciation expense of property and equipment for the six months ended June 30, 2022 and 2021 is $14,123 and $14,404, of which $10,334 and $10,541 is included in cost of revenue, respectively.

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#### Droneify Holdings Limited<br>Notes to the Unaudited Consolidated Financial Statements<br>June 30, 2022 and 2021

#### Note 4. Accrued Liabilities and Other Current Liabilities
Accrued liabilities and other current liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  Accrued liabilities | $4650 | $268088 |
|  Payroll liabilities |  | 39558 |
|  Credit cards | 3922 | 7676 |
|  Other liabilities | 759 |  |
|  | $9331 | $315322 |

---

#### Note 5. Convertible Notes
During the year ended December 31, 2018, the Company issued convertible notes to 44 holders with a face value of CAD1,725,500 ($1,363,318). The notes had an interest rate of 4% per annum, matured on May 31, 2020, and could be converted at a price equal to the product of (x) eighty percent (80%) and (y) the price per share at which equity securities are issued by the Company if the note converted any time after October 31, 2018.

During the year ended December 31, 2020, the Company converted 40 convertible notes with a face value and accrued interest of $1,437,877 into 1,239,652 ordinary shares.

On May 20, 2020, the holders of 4 convertible notes extended the maturity dates until May 20, 2021.

On May 31, 2021, the Company converted 4 convertible notes with a face value and accrued interest of $105,206 into 93,893 ordinary shares.

In January 2022, the Company converted 1 convertible note with a face value and accrued interest of $51,009 into 34,957 ordinary shares.

As of June 30, 2022 and December 31, 2021, the Company had convertible notes of $0 and $42,665, respectively.

#### Note 6. Loans Payable
As a result of the Covid-19 global pandemic, the Canadian government made loans available to small businesses through a Canada Emergency Business Account ("CEBA"). The CEBA program offered interest-free loans to small businesses and non-profits. Under the program, if the CEBA loans are repaid on or before December 31, 2022, 33% of the loans may be forgiven. As of December 4, 2020, approved CEBA applications were eligible to receive an additional CAD20,000 ($15,802). During 2022, the repayment date eligible for partial forgiveness was extended to December 31, 2023. CEBA loans that remain unpaid as of January 1, 2024 shall accrue interest at 5% per annum. CEBA loan holders shall only be required to make interest payments until December 31, 2025.

On April 29, 2020, the Company borrowed CAD40,000 ($28,465) via the CEBA loan program. On December 20, 2020, the Company borrowed an additional CAD20,000 ($15,802). As of June 30, 2022 and December 31, 2021, the outstanding CEBA loan balance is CAD60,000 ($46,608) and CAD60,000 ($47,406) respectively.

#### Note 7. Equity

#### Authorized Capital
The Company's authorized capital consists of 500,000,000 ordinary shares with a par value of $0.0001 per share.

During the six months ended June 30, 2022, the Company issued 34,957 ordinary shares for conversion of debt.

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#### Droneify Holdings Limited<br>Notes to the Unaudited Consolidated Financial Statements<br>June 30, 2022 and 2021

#### Note 7. Equity (cont.)

#### Share-based Payments
The directors of Droneify have established a stock option plan (the "Plan") to advance the interests of Droneify and its shareholders by providing to the directors, officers, employees and consultants of Droneify a performance incentive for continued and improved services with Droneify and its affiliates. The terms of the Plan shall govern each option issued. The Plan is effective on March 21, 2017. Options may be granted under the Plan until the earlier of (i) the 10<sup>th</sup> anniversary of the effective date of the Plan, or (ii) the date on which the board terminates the Plan. The shares that may be issued pursuant to the exercise of options granted under the Plan are common shares of Droneify. The aggregate number of shares reserved for issuance under the Plan is 492,130 shares.

If options granted under this Plan expire, terminate or cease to be exercisable without having been exercised in full, the shares which were reserved for issue pursuant to such options, but which were not issued become available for issue pursuant to the exercise of other options under the Plan. Subject to any accelerated termination under the Plan, each option shall be exercisable until the tenth anniversary of the date on which it is granted. Each option that has not been exercised pursuant thereto on or before the close of business on such tenth anniversary shall forthwith expire and terminate and be of no further force or effect whatsoever. Unless otherwise specified by the board at the time of granting options and except as otherwise provided in the Plan, each option will vest and be exercisable as follows: (i) 25% (1/4) of the option (rounded down to the nearest whole share) shall vest on the first anniversary of the earlier of the following dates (the "Cliff Date"): (x) the date of grant, and (y) any other earlier vesting start date that is approved by the board, and (ii) 2.08333% (1/48) of the option (rounded down to the nearest whole share) shall vest at the end of each month following the Cliff Date, and the vested options shall be exercisable to and including the tenth anniversary of the date of grant, subject to the terms and conditions of the Plan.

In connection with the restructuring (see Note 1), Droneify Holdings has assumed the obligations of Droneify under the Plan.

On June 15, 2022, the Company granted 294,000 ordinary shares in the form of stock options valued at $334,739. The exercise price per share is $1.37 and the stock options expire on June 15, 2027. The shares vest 1/4<sup>th</sup> annually over a period of four years from the grant date.

The Company utilizes the Black-Scholes model to value its stock options. The Company utilized the following assumptions:

---

| | |
|:---|:---|
|  | **June 30, <br>2022** |
|  Expected term | 3.00 – 4.50 years |
|  Expected average volatility | 156% – 163% |
|  Expected dividend yield |  |
|  Risk-free interest rate | 3.35% – 3.38% |

---

During the six months ended June 30, 2022, the Company recognized stock option expense of $5,601, and as of June 30, 2022, $327,572 remains unamortized.

The following is a summary of stock option activity during the six months ended June 30, 2022.

---

| | | | |
|:---|:---|:---|:---|
|  | **Share Options <br>Outstanding** | **Weighted-<br>Average <br>Exercise Price** | **Weighted-<br>Average Life <br>(years)** |
|  Balance as of December 31, 2021 | 178944 | $1.87 | 6.09 |
|  Grants | 294000 | 1.37 | 5.00 |
|  Exercised |  |  |  |
|  Expiry |  |  |  |
|  Balance as of June 30, 2022 | 472944 | $1.56 | 5.20 |
|  Exercisable as of June 30, 2022 | 178944 | $1.87 | 5.59 |

---

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#### Droneify Holdings Limited<br>Notes to the Unaudited Consolidated Financial Statements<br>June 30, 2022 and 2021

#### Note 8. Related Parties
During the six months ended June 30, 2022 and 2021, the Company recorded $0 and $49,871 respectively, in salaries and benefits paid to Adam Sax, CEO and Director. At June 30, 2022 and December 31, 2021, $0 and $25,643 in salaries payable were due to Mr. Sax. As of January 1, 2022, Mr. Sax has chosen to waive his salary until further notice.

During the six months ended June 30, 2022 and 2021, the Company recorded $0 and $37,217 respectively, in salaries and benefits paid to Thomas Hanson, COO and Director. At June 30, 2022 and December 31, 2021, $0 and $18,276 in salaries payable were due to Mr. Hanson. As of January 1, 2022, Mr. Hanson has chosen to waive his salary until further notice.

During the six months ended June 30, 2022 and 2021, the Company recorded $0 and $19,179, respectively, in salaries and benefits paid to Dallyce Sax, VP of Client Relations. At June 30, 2022 and December 31, 2021 $0 and $0 in salaries payable were due to Ms. Sax. As of June 30, 2021, Ms. Sax is no longer employed by the Company.

On June 30, 2022, the parties forgave $43,919 in accrued wages, including salaries payable of $43,919 as of December 31, 2021, which was accounted for as a capital contribution to additional paid in capital.

During the six months ended June 30, 2022, the Company repaid $617 in shareholder advances from Adam Sax. As of June 30, 2022 and December 31, 2021, the Company owed $0 and $620, respectively, in loans payable to Adam Sax.

The following is a summary of wages accrued and forgiven by related parties during the six months ended June 30, 2022 and 2021:

---

| | | | |
|:---|:---|:---|:---|
|  | **Adam Sax** | **Tom Hanson** | **Dallyce Sax** |
|  Balance as of January 1, 2021 | $154690 | $81268 | $56900 |
|  Paid |  |  |  |
|  Accrued | 49871 | 37217 | 19179 |
|  Forgiven |  |  |  |
|  Balance as of June 30, 2021 | $204561 | $118485 | $76079 |
|  Accrued | 50908 | 39227 |  |
|  Forgiven (2020 wages) | (154690) | (81268) | (56900) |
|  Forgiven (2021 wages) | (75136) | (58168) | (19179) |
|  Balance as of December 31, 2021 | 25643 | 18276 |  |
|  Accrued |  |  |  |
|  Forgiven (2021 wages) | (25643) | (18276) |  |
|  Forgiven (2022 wages) |  |  |  |
|  Balance as of June 30, 2022 | $— | $— | $— |

---

During the six months ended June 30, 2022, the Company repaid $617 in shareholder advances from Adam Sax. As of June 30, 2022 and December 31, 2021, the Company owed $0 and $620, respectively, in loans payable to Adam Sax.

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#### Droneify Holdings Limited<br>Notes to the Unaudited Consolidated Financial Statements<br>June 30, 2022 and 2021

#### Note 9. Significant Estimates and Concentrations
The Company's top customers that individually represented over ten percent of its total sales accounted for 59% and 47% of sales for the six months ended June 30, 2022 and 2021, respectively. The loss of any of these top three customers could have a significant impact on the Company's sales and results of operations.

For the six months ended June 30, 2022 and 2021, customer concentrations (more than 10%) were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Percentage of Revenue <br>Six Months Ended June 30,** | **Percentage of Revenue <br>Six Months Ended June 30,** | **Percentage of <br>Accounts Receivable <br>As of June 30,** | **Percentage of <br>Accounts Receivable <br>As of June 30,** |
|  | **2022** | **2021** | **2022** | **2021** |
|  Golder Associates Ltd | 38% |  | 43% |  |
|  Stantec |  | 25% |  | 69% |
|  Slate Asset Management, Inc. | 11% |  | 5% |  |
|  Distrikt | 10% | 22% | 11% | 2% |
|  Total (as a group) | 59% | 47% | 59% | 71% |

---

#### Note 10. Subsequent Events
In August 2022, Droneify launched a private placement pursuant to which it is offering up to 1,500,000 class A common shares, at a purchase price of $1.00 per share, for total gross proceeds of up to $1,500,000. Boustead Securities, LLC is acting as placement agent in connection with this private placement. As compensation for its services, it will receive (i) a cash commission equal to 7% of the gross proceeds, (ii) a 1% non-accountable expense allowance and (iii) warrants for the purchase of a number of class A common shares of Droneify equal to 7% of the number of shares issued in the private placement at an exercise price of $1.00 per share (subject to adjustments), which may be exercised on a cashless basis.

On September 26, 2022, Droneify completed an initial closing of this private placement in which it issued an aggregate of 250,000 class A common shares for total gross proceeds of $250,000 and net proceeds of approximately $144,980. Droneify also issued a warrant for the purchase of 17,500 class A common shares to Boustead Securities, LLC. These shares were immediately exchanged for 250,000 ordinary shares of Droneify Holdings and the warrant was exchanged for a warrant for 17,500 ordinary shares of Droneify Holdings pursuant to the restructuring.

On October 21, 2022, Droneify completed an additional closing of this private placement in which it issued an aggregate of 135,000 class A common shares for total gross proceeds of $135,000 and net proceeds of approximately $99,122. Droneify also issued a warrant for the purchase of 9,450 class A common shares to Boustead Securities, LLC. These shares were immediately exchanged for 135,000 ordinary shares of Droneify Holdings and the warrant was exchanged for a warrant for 9,450 ordinary shares of Droneify Holdings pursuant to the restructuring.

The Company determined the initially issued Droneify warrants to be equity instruments pursuant to ASC 480 and ASC 815, as the warrants are indexed to the issuer's own stock and meet the conditions of equity classification. On exchange of warrants into Droneify Holdings, the Company recognizes additional fair value, if any, as an equity issuance cost as a component of equity.

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**DRONEIFY HOLDINGS LIMITED<br>AUDITED CONSOLIDATED FINANCIAL STATEMENTS<br>YEARS ENDED DECEMBER 31, 2021 AND 2020**

[**Table of Contents**](#TOC001)

#### Report of Independent Registered Public Accounting Firm
To the shareholders and the board of directors of Droneify Holdings Limited

#### Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Droneify Holdings Limited as of December 31, 2021 and 2020, the related statements of operations, stockholders' equity (deficit), and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States.

#### Substantial Doubt about the Company's Ability to Continue as a Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has suffered recurring losses from operations and has a significant accumulated deficit. In addition, the Company continues to experience negative cash flows from operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

#### Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. 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 audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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 audit included performing procedures to assess the risks of material misstatement of the 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 financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/S/ BF Borgers CPA PC

#### BF Borgers CPA PC (PCAOB ID 5041)
We have served as the Company's auditor since 2022

Lakewood, CO

December 16, 2022

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#### Droneify Holdings Limited<br>Consolidated Balance Sheets

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2021** | **December 31, <br>2020** |
|  **Assets** |  |  |
|  Current assets |  |  |
| &nbsp;&nbsp;&nbsp; Cash | $34599 | $98312 |
| &nbsp;&nbsp;&nbsp; Accounts receivable, net | 337490 | 26909 |
| &nbsp;&nbsp;&nbsp; Prepaid and other current assets | 8359 | 7748 |
|  Total current assets | 380448 | 132969 |
| &nbsp;&nbsp;&nbsp; Property and equipment, net | 43883 | 71725 |
|  Total assets | $424331 | $204694 |
|  **Liabilities and Shareholders' Deficit** |  |  |
|  Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payable | $491207 | $475599 |
| &nbsp;&nbsp;&nbsp; Accrued liabilities | 315322 | 348130 |
| &nbsp;&nbsp;&nbsp; Convertible notes | 42665 | 145759 |
| &nbsp;&nbsp;&nbsp; Loans payable | 47406 | 47052 |
| &nbsp;&nbsp;&nbsp; Notes payable – related party | 620 | 615 |
|  Total current liabilities | 897220 | 1017155 |
|  Total liabilities | 897220 | 1017155 |
|  Commitments and contingencies |  |  |
|  Shareholders' deficit |  |  |
| &nbsp;&nbsp;&nbsp; Authorized Capital: 500,000,000 ordinary shares authorized; $0.0001 par value; 6,034,710 I and 5,940,817 shares issued and outstanding, respectively | 603 | 594 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 4530076 | 3975693 |
| &nbsp;&nbsp;&nbsp; Accumulated deficit | (3770315) | (3610032) |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (134969) | (127585) |
|  Shareholders' Equity attributable to shareholders of Droneify Holdings <br>Limited | 625395 | 238670 |
| &nbsp;&nbsp;&nbsp; Non-controlling interests | (1098284) | (1051131) |
|  Total shareholders' deficit | (472889) | (812461) |
|  Total liabilities and Shareholders' deficit | $424331 | $204694 |

---

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

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#### Droneify Holdings Limited<br>Consolidated Statements of Operations

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2021** | **2020** |
|  Revenue | $704553 | $432263 |
|  Cost of revenue | 587177 | 382423 |
|  Gross profit | 117376 | 49840 |
|  Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative expense | 318146 | 386500 |
| &nbsp;&nbsp;&nbsp; Professional fees | 25650 | 55508 |
| &nbsp;&nbsp;&nbsp; Depreciation | 7689 | 11139 |
| &nbsp;&nbsp;&nbsp; Research and development | 5014 | 116619 |
|  Total operating expenses | 356499 | 569766 |
|  Net loss from operations | (239123) | (519926) |
|  Other income (expenses) |  |  |
| &nbsp;&nbsp;&nbsp; Other income | 33235 | 4867 |
| &nbsp;&nbsp;&nbsp; Interest income (expense) | 528 | (240119) |
|  Total other income (expenses) | 33763 | (235252) |
|  Loss before income taxes | (205360) | (755178) |
| &nbsp;&nbsp;&nbsp; Provision for income taxes |  |  |
|  Net loss | $(205360) | $(755178) |
| &nbsp;&nbsp;&nbsp; Less: Net loss attributable to noncontrolling interests | (45077) | (165762) |
|  Net loss attributable to shareholders of Droneify Holdings Limited | $(160283) | $(589416) |
|  Comprehensive income (loss) |  |  |
| &nbsp;&nbsp;&nbsp; Other comprehensive income (loss) | (9460) | 9495 |
|  Comprehensive loss | $(214820) | (745683) |
| &nbsp;&nbsp;&nbsp; Less: Comprehensive loss attributable to noncontrolling interests | (47153) | (163678) |
|  Net comprehensive loss attributed to shareholders of Droneify Holdings Limited | $(167667) | $(582005) |
|  Basic and diluted loss per ordinary share | $(0.05) | $(0.18) |
|  Basic and diluted weighted average number of ordinary shares outstanding | 5910717 | 5561700 |

---

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

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**Droneify Holdings Limited<br>Consolidated Statements of Changes in Shareholders' Equity (Deficit)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **<br>Capital** | **<br>Capital** | **Additional <br>Paid-In<br>Capital** | **Accumulated<br>Deficit** | **Accumulated <br>Other <br>Comprehensive<br>Loss** | **Non- <br>Controlling<br>Interests** | **Total** |
|  | **Shares** | **Amount** | **Additional <br>Paid-In<br>Capital** | **Accumulated<br>Deficit** | **Accumulated <br>Other <br>Comprehensive<br>Loss** | **Non- <br>Controlling<br>Interests** | **Total** |
|  **Balance – December 31, 2019** | 4701165 | $470 | $2537940 | $(3020616) | $(134996) | $(887453) | $(1504655) |
|  Shares issued for conversion of debt | 1239652 | 124 | 1437753 |  |  |  | 1437877 |
|  Net loss |  |  |  | (589416) |  | (165762) | (755178) |
|  Other comprehensive loss |  |  |  |  | 7411 | 2084 | 9495 |
|  **Balance – December 31, 2020** | 5940817 | 594 | 3975693 | (3610032) | (127585) | (1051131) | (812461) |
|  Forgiveness of accrued salary |  |  | 449186 |  |  |  | 449186 |
|  Shares issued for conversion of debt | 93893 | 9 | 105197 |  |  |  | 105206 |
|  Net loss |  |  |  | (160283) |  | (45077) | (205360) |
|  Other comprehensive loss |  |  |  |  | (7384) | (2076) | (9460) |
|  **Balance – December 31, 2021** | 6034710 | $603 | $4530076 | $(3770315) | $(134969) | $(1098284) | $(472889) |

---

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

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#### Droneify Holdings Limited<br>Consolidated Statements of Cash Flows

---

| |
|:---|
|  Cash Flows From Operating Activities: |
| &nbsp;&nbsp;&nbsp; Net loss |
| &nbsp;&nbsp;&nbsp; Adjustments to reconcile net loss to net cash used in operating activities: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization |
| &nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other assets |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities |
|  Net cash provided by (used in) operating activities |
|  Cash Flows From Investing Activities: |
| &nbsp;&nbsp;&nbsp; Purchase of property and equipment |
|  Net cash used in investing activities |
|  Cash Flows From Financing Activities: |
| &nbsp;&nbsp;&nbsp; Proceeds from loan payable |
|  Net cash provided by financing activities |
|  Effect of exchange rate changes on cash |
|  Net change in cash |
|  Cash, beginning of period |
|  Cash, end of period |
|  Supplemental cash flow information |
| &nbsp;&nbsp;&nbsp; Cash paid for interest |
| &nbsp;&nbsp;&nbsp; Cash paid for taxes |
|  Non-cash Investing and financing transactions: |
| &nbsp;&nbsp;&nbsp; Forgiveness of accrued salary |
| &nbsp;&nbsp;&nbsp; Conversion of debt into capital |

---

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

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#### Droneify Holdings Limited<br>Notes to the Consolidated Financial Statements<br>December 31, 2021 and 2020

#### Note 1. Nature of Business and Going Concern

#### Nature of Business
Droneify Holdings Limited ("Droneify Holdings") was incorporated as a Cayman Islands exempted company on August 24, 2022. Its predecessor company, Droneify Ltd. ("Droneify"), was incorporated on March 20, 2015 in the Province of Ontario, Canada.

Droneify Holdings and its subsidiaries (collectively known as the "Company") is a development stage technology company focused on designing, developing, and deploying drone-enabled solutions and technology for the purposes of capturing, analyzing, and reporting on data to assist customers in a variety of industries, allowing them to improve decision-making and reduce operational risks and costs. The Company offers leading-edge aerial intelligence solutions with an emphasis on automating complex, recurring operations that are required for compliance and growth.

The Company serves clients across a variety of industries, with a current emphasis on niche markets such as utilities, energy, construction, and infrastructure. The Company is actively developing an online-based drone operations, software, and hardware management system, with the goal of using this platform as the basis for a broader solution that integrates the collection, storage and analysis of data for end users within a platform-as-a-service subscription model.

On September 23, 2022, the Company commenced a corporate restructuring pursuant to a share exchange agreement that Droneify Holdings entered into with Droneify and its shareholders. Pursuant to the share exchange agreement, Droneify Holdings acquired 6,069,667 class A common shares of Droneify in exchange for which it issued 6,069,667 ordinary shares to the shareholders of Droneify. As a result of this restructuring, Droneify Holdings owns 78.05% of the issued and outstanding class A common shares of Droneify. Droneify Holdings is continuing to exchange shares from Droneify's shareholders as it receives additional signatures to the share exchange agreement with plans to acquire all shares of Droneify, making it a wholly-owned subsidiary of Droneify Holdings.

In 2018, Droneify completed an internal reorganization transaction pursuant to which it incorporated 2659498 Ontario Ltd. as a wholly owned subsidiary and transferred its software to this entity on a taxable basis. The reorganization was completed to create a potential future Canadian tax benefit for participating Canadian shareholders by reducing income taxes on a future disposition of their shares.

The Company does not have any other subsidiaries.

#### Reorganization
The corporate restructuring transaction between Droneify Holdings and Droneify is considered as a merger of entities under common control. Under the guidance in ASC 805-50, for transactions between entities under common control, the assets, liabilities and results of operations, are recognized at their carrying amounts on the date of the share exchange agreement, which required retrospective combination of Droneify Holdings and Droneify for all periods presented. The consolidated financial statements have been prepared as if the existing corporate structure had been in existence throughout all periods. This includes a retrospective presentation for all equity related disclosures, including issued shares and earnings per share, which have been revised to reflect the effects of the reorganization, as of December 31, 2021 and 2020. As of November 2022, the Company has approximately 78% of the common shares of Droneify.

#### Going Concern Uncertainty
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. The Company had minimal cash as of December 31, 2021, had limited gross profit and incurred a loss from operations for the year ended December 31, 2021 and past few years. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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#### Droneify Holdings Limited<br>Notes to the Consolidated Financial Statements<br>December 31, 2021 and 2020

#### Note 1. Nature of Business and Going Concern (cont.)
The Company proposes to fund operations through sales of its products and equity financing arrangements. However, because of the lack of sales and the absence of any active trading market for its ordinary shares, its financial condition and its lack of an operating history, the Company may not be able to raise funds for capital expenditures, working capital and other cash requirements and will have to rely on advances from a minority shareholder and officer. If the Company cannot generate revenue from its products, it may not be able to continue in its business.

#### Note 2. Summary of Significant Accounting Policies

#### Basis of Presentation and Consolidation
The financial statements have been prepared in accordance with Generally Accepted Accounting Principles of the United States of America ("GAAP").

The consolidated financial statements include the financial statements of the Company and all its majority-owned subsidiaries from the dates they were incorporated. All intercompany balances and transactions have been eliminated in consolidation.

#### Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

#### Functional and Presentation Currency
These financial statements are presented in U.S dollars and the Company's functional currency is Canadian dollars.

#### Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The Company assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. The Company has concluded that it is acting as a principal in all of its existing revenue arrangements due to the fact that the Company has purchased services from suppliers, added other services and resold those bundled services as a principal. The Company intends to act as principal and/or agent in the future, depending on the nature of the contemplated transaction. In the instance where the Company acts as agent in its future transactions, only that income that is earned as commissions or booking fees for both pilots and clients will be recognized as revenue, net of any amounts due to or from the pilots and clients, respectively. In accordance with ASC 606, revenue is only recognized when pervasive evidence that the transaction has been completed and the commissions and fees are due and payable to the Company.

The Company derives its revenue from service contracts using its Unmanned Aerial Vehicle ("UAV") technology to provide imaging and inspections to customers in a wide variety of industries. The Company's contracts are short-term, ranging from 5 – 7 days.

Revenue is recognized by the Company at the time services are rendered. Revenue earned from rendering UAV services is recognized at the fair value of services provided in accordance with the customer contract. The Company recognizes revenue net of variable consideration, which arises through the provision of discounts.

Costs of fulfilling the Company's performance obligations and revenue associated with these performance obligations are incurred simultaneously. The Company has not deferred any expenditures with regard to fulfilling its contracts.

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#### Droneify Holdings Limited<br>Notes to the Consolidated Financial Statements<br>December 31, 2021 and 2020

#### Note 2. Summary of Significant Accounting Policies (cont.)

#### Cost of Revenue
Costs are recognized when incurred. Cost of revenue consists of direct labor, materials, drone depreciation and other direct costs.

#### Research and Development
The Company incurs research and development costs during the process of researching and developing the Company's software, algorithms, information technologies and other intellectual properties. The Company's research and development costs consist primarily of data acquisition and personnel costs of scientists and laboratory technicians. The Company expenses these costs as incurred until the resulting product has been completed, tested, validated and made ready for commercial use.

#### Foreign Currency Translation
The Company's financial statements are presented in United States dollars, and the functional currency is Canadian dollars (CAD). Monetary assets and liabilities denominated in foreign currencies are converted to U.S. dollars ($) at the appropriate rates of exchange prevailing at the statement of financial position dates while other assets and liabilities are converted at the rates of exchange applicable at the dates acquired or incurred. Revenue and expenses are translated into U.S. dollars at rates of exchange applicable during the periods in which they were earned or expensed. All gains and losses are included in the statement of loss and comprehensive loss as they arise.

#### Cash and Cash Equivalents
For purposes of balance sheet presentation and reporting of cash flows, the Company considers all unrestricted demand deposits, money market funds and highly liquid debt instruments with an original maturity of less than 90 days to be cash and cash equivalents. The Company had no cash equivalents at December 31, 2021 and 2020.

#### Accounts Receivable
Accounts receivable are recorded in accordance with ASC 310, "Receivables." Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in its existing accounts receivable. The Company does not currently have any amount recorded as an allowance for doubtful accounts. Based on management's estimate and based on all accounts being current, the Company has not deemed it necessary to reserve for doubtful accounts at this time.

During the years ended December 31, 2021 and 2020, the Company recorded bad debt of $0.

#### Drone and Other Equipment
Drone and other equipment are stated at cost, net of accumulated depreciation or accumulated impairment losses, if any, in accordance with ASC 360-10-35-7 and ASC 360-10-50-1(d). Such cost includes the cost of replacing component parts of the property and equipment and any expenditures required to make the property and equipment ready for use. Repairs and maintenance are charged against income as incurred. Expenditures that extend the estimated life of an asset are capitalized.

Depreciation is provided annually on property and equipment at rates designed to charge the cost of the assets over their estimated useful lives, as follows:

---

| | | |
|:---|:---|:---|
|  **Category** | **Method** | **Useful Life** |
|  Drone equipment | 20% declining balance | 5 years |
|  Furniture and fixtures | 20% declining balance | 5 years |
|  Computers | 55% declining balance | 5 years |

---

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#### Droneify Holdings Limited<br>Notes to the Consolidated Financial Statements<br>December 31, 2021 and 2020

#### Note 2. Summary of Significant Accounting Policies (cont.)
The assets' residual values, useful lives and methods of depreciation are reviewed at each fiscal year-end and adjusted prospectively, if appropriate. Due to the increase in maintenance costs in the latter years of service, depreciation of drone equipment is computed using the declining balance method of depreciation and is recognized in cost of revenue on the statement of loss and comprehensive loss. Depreciation of furniture, fixtures and computers is recognized in general and administrative expenses.

An item of property and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is included in the statement of loss and comprehensive loss when the asset is derecognized.

#### Impairment of Non-financial Assets
The Company determines at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, the Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated for valuation multiples or other available fair value indicators. Impairment losses are recognized in the statement of loss and comprehensive loss in those expense categories consistent with the function of the impaired asset.

An assessment is made at each reporting date of whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If an indication exists, the Company estimates the asset's recoverable amount.

#### Fair Value Measurements
The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 — Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 — Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

The Company's financial instruments, including cash, accounts receivable, prepaid expense and other current assets, accounts payable and accrued liabilities, convertible notes, loans payable, and notes payable related party, are carried at historical cost. At December 31, 2021 and 2020, the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments.

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#### Droneify Holdings Limited<br>Notes to the Consolidated Financial Statements<br>December 31, 2021 and 2020

#### Note 2. Summary of Significant Accounting Policies (cont.)

#### Leases
The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, operating lease liabilities — current, and operating lease liabilities — noncurrent on the balance sheets. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in the balance sheets.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

Leases with a lease term of 12 months or less at inception are not recorded on the balance sheet and are expensed on a straight-line basis over the lease term in the statement of operations.

#### Stock-based Compensation
The Company recognizes compensation expense for stock-based compensation in accordance with ASC Topic 718. For employee and non-employee stock-based awards, the Company calculates the fair value of the award on the date of grant using the option-pricing model for options and the quoted price of its ordinary shares for unrestricted shares; the expense is recognized over the service period for awards expected to vest. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class, and historical experience.

#### Deferred Income Taxes and Valuation Allowance
The Company accounts for income taxes under ASC 740 "Income Taxes." Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

#### Recent Accounting Pronouncements
In November 2021, the Financial Accounting Standards Board (the "FASB") issued ASU 2021-10, "Government Assistance (Topic 832)" which enhances disclosure of transactions with governments that are accounted for by applying a grant or contribution model. The new pronouncement requires entities to provide information about the nature of the transaction, terms and conditions associated with the transaction and financial statement line items affected by the transaction. The standard must be adopted for year ends beginning after December 15, 2021, with early adoption permitted. The Company plans to adopt the standard on January 1, 2022, and does not expect the adoption of this standard to have any material impact on its consolidated financial statements.

In October 2021, the FASB issued ASU No. 2021-08, "Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805)." This ASU requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. At the acquisition date, the acquirer applies the revenue model as if it had originated the acquired contracts. The ASU is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the ASU should be applied prospectively. Early adoption is also permitted,

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#### Droneify Holdings Limited<br>Notes to the Consolidated Financial Statements<br>December 31, 2021 and 2020

#### Note 2. Summary of Significant Accounting Policies (cont.)
including adoption in an interim period. If early adopted, the amendments are applied retrospectively to all business combinations for which the acquisition date occurred during the fiscal year of adoption. This ASU is currently not expected to have a material impact on the Company's consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity." The ASU simplifies the accounting for convertible instruments by removing certain separation models in ASC 470-20, "Debt — Debt with Conversion and Other Options," for convertible instruments. The ASU updates the guidance on certain embedded conversion features that are not required to be accounted for as derivatives under Topic 815, "Derivatives and Hedging," or that do not result in substantial premiums accounted for as paid-in capital, such that those features are no longer required to be separated from the host contract. The convertible debt instruments will be accounted for as a single liability measured at amortized cost. This will also result in the interest expense recognized for convertible debt instruments to be typically closer to the coupon interest rate when applying the guidance in Topic 835, "Interest." Further, the ASU made amendments to the EPS guidance in Topic 260 for convertible debt instruments, the most significant impact of which is requiring the use of the if-converted method for diluted EPS calculation, and no longer allowing the net share settlement method. The ASU also made revisions to Topic 815-40, which provides guidance on how an entity must determine whether a contract qualifies for a scope exception from derivative accounting. The amendments to Topic 815-40 change the scope of contracts that are recognized as assets or liabilities. The ASU is effective for interim and annual periods beginning after December 15, 2021, with early adoption permitted for periods beginning after December 15, 2020. Adoption of the ASU can either be on a modified retrospective or full retrospective basis. The Company adopted the new standard effective January 1, 2021 and does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In December 2019, FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which simplifies the accounting for income taxes. This guidance will be effective for entities for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 on a prospective basis, with early adoption permitted. The Company adopted the new standard effective January 1, 2021 and does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments Credit Losses — Measurement of Credit Losses on Financial Instruments." This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, which includes the Company's accounts receivable. This ASU is effective for the Company for reporting periods beginning after December 15, 2022. The Company is currently assessing the potential impact that the adoption of this ASU will have on its consolidated financial statements.

The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements.

#### Note 3. Property and Equipment
Property and equipment consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br>2021** | **December 31, <br>2020** |
|  Drones | $103836 | $103060 |
|  Computers | 51639 | 51253 |
|  Office equipment | 38072 | 37788 |
|  | 193547 | 192101 |
|  Accumulated depreciation | (149664) | (120376) |
|  Property and equipment, net of accumulated depreciation | $43883 | $71725 |

---

Depreciation expense of property and equipment for the years ended December 31, 2021 and 2020 is $28,659 and $30,553, of which $20,970 and $19,414 is included in cost of revenue, respectively.

During the years ended December 31, 2021 and 2020, the Company purchased assets of $0 and $2,080, respectively.

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#### Droneify Holdings Limited<br>Notes to the Consolidated Financial Statements<br>December 31, 2021 and 2020

#### Note 4. Accrued Liabilities and Other Current Liabilities
Accrued liabilities and other current liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Accrued liabilities | $268088 | $48821 |
|  Payroll liabilities | 39558 | 293826 |
|  Credit cards | 7676 | 5483 |
|  | $315322 | $348130 |

---

#### Note 5. Convertible Notes
During the year ended December 31, 2018, the Company issued convertible notes to 44 holders with a face value of CAD1,725,500 ($1,363,318). The notes had an interest rate of 4% per annum, matured on May 31, 2020, and could be converted at a price equal to the product of (x) eighty percent (80%) and (y) the price per share at which equity securities are issued by the Company if the note converted any time after October 31, 2018.

During the year ended December 31, 2020, the Company converted 40 convertible notes with a face value and accrued interest of $1,437,877 into 1,239,652 ordinary shares.

On May 20, 2020, the holders of 4 convertible notes extended the maturity dates until May 20, 2021.

On May 31, 2021, the Company converted 4 convertible notes with a face value and accrued interest of $105,206 into 93,893 ordinary shares.

#### Note 6. Loans Payable
As a result of the Covid-19 global pandemic, the Canadian government made loans available to small businesses through a Canada Emergency Business Account ("CEBA"). The CEBA program offered interest-free loans to small businesses and non-profits. Under the program, if the CEBA loans are repaid on or before December 31, 2022, 33% of the loans may be forgiven. As of December 4, 2020, approved CEBA applications were eligible to receive an additional CAD20,000 ($15,802). During 2022, the repayment date eligible for partial forgiveness was extended to December 31, 2023. CEBA loans that remain unpaid as of January 1, 2024 shall accrue interest at 5% per annum. CEBA loan holders shall only be required to make interest payments until December 31, 2025.

On April 29, 2020, the Company borrowed CAD40,000 ($28,465) via the CEBA loan program. On December 20, 2020, the Company borrowed an additional $20,000 ($15,802). As of December 31, 2021 and 2020, the outstanding CEBA loan balance is CAD60,000 ($47,406) and CAD60,000 ($47,052) respectively.

#### Note 7. Equity

#### Authorized Capital
The Company's authorized capital consists of 500,000,000 ordinary shares with a par value of $0.0001 per share.

#### Share-based Payments
The directors of Droneify have established a stock option plan (the "Plan") to advance the interests of Droneify and its shareholders by providing to the directors, officers, employees and consultants of Droneify a performance incentive for continued and improved services with Droneify and its affiliates. The terms of the Plan shall govern each option issued. The Plan is effective on March 21, 2017. Options may be granted under the Plan until the earlier of (i) the 10<sup>th</sup> anniversary of the effective date of the Plan, or (ii) the date on which the board terminates the Plan. The shares that may be issued pursuant to the exercise of options granted under the Plan are common shares of Droneify. The aggregate number of shares reserved for issuance under the Plan is 492,130 shares.

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#### Droneify Holdings Limited<br>Notes to the Consolidated Financial Statements<br>December 31, 2021 and 2020

#### Note 7. Equity (cont.)
If options granted under this Plan expire, terminate or cease to be exercisable without having been exercised in full, the shares which were reserved for issue pursuant to such options, but which were not issued become available for issue pursuant to the exercise of other options under the Plan. Subject to any accelerated termination under the Plan, each option shall be exercisable until the tenth anniversary of the date on which it is granted. Each option that has not been exercised pursuant thereto on or before the close of business on such tenth anniversary shall forthwith expire and terminate and be of no further force or effect whatsoever. Unless otherwise specified by the board at the time of granting options and except as otherwise provided in the Plan, each option will vest and be exercisable as follows: (i) 25% (1/4) of the option (rounded down to the nearest whole share) shall vest on the first anniversary of the earlier of the following dates (the "Cliff Date"): (x) the date of grant, and (y) any other earlier vesting start date that is approved by the board, and (ii) 2.08333% (1/48) of the option (rounded down to the nearest whole share) shall vest at the end of each month following the Cliff Date, and the vested options shall be exercisable to and including the tenth anniversary of the date of grant, subject to the terms and conditions of the Plan.

In connection with the restructuring (see Note 1), Droneify Holdings has assumed the obligations of Droneify under the Plan.

The following is a summary of stock option activity during the year ended December 31, 2021 and 2020.

---

| | | | |
|:---|:---|:---|:---|
|  | **Share <br>Options <br>Outstanding** | **Weighted-<br>Average <br>Exercise <br>Price** | **Weighted-Average <br>Life <br>(years)** |
|  Balance as of January 1, 2020 | 178944 | $1.87 | 8.09 |
|  Grants |  |  |  |
|  Exercised |  |  |  |
|  Expiry |  |  |  |
|  Balance as of December 31, 2020 | 178944 | $1.87 | 7.09 |
|  Grants |  |  |  |
|  Exercised |  |  |  |
|  Expiry |  |  |  |
|  Balance as of December 31, 2021 | 178944 | $1.87 | 6.09 |
|  Exercisable as of December 31, 2021 | 178944 | $1.87 | 6.09 |

---

#### Note 8. Income taxes
The Company has not made provision for income taxes for the years ended December 31, 2021, and 2020 since the Company has the benefit of net operating losses in these periods.

Due to uncertainties surrounding the Company's ability to generate future taxable income to realize deferred income tax assets arising as a result of net operating losses carried forward, the Company has not recorded any deferred income tax assets as of December 31, 2021. The Company has incurred a net operating loss of $1,835,644, the net operating loss carry forwards will begin to expire in varying amounts from year 2038 subject to its eligibility as determined by respective tax regulating authorities. The Company's net operating loss carry forwards may be subject to annual limitations, which could eliminate, reduce or defer the utilization of the losses because of an ownership change. The status of tax examinations varies due to the numerous legal entities and jurisdictions in which the Company operates.

Net deferred tax assets consist of the following components as of:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Non-operating loss carryforward | $1835644 | $1757607 |
|  Valuation allowance | (1835644) | (1757607) |
|  Net deferred tax asset | $— | $— |

---

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#### Droneify Holdings Limited<br>Notes to the Consolidated Financial Statements<br>December 31, 2021 and 2020

#### Note 9. Related Parties
During the years ended December 31, 2021 and 2020, the Company recorded $143,465 and $111,975 respectively, in salaries and benefits paid to Adam Sax, CEO and Director. At December 31, 2021 and 2020, $25,643 and $154,690 in salaries payable were due to Mr. Sax.

During the years ended December 31, 2021 and 2020, the Company recorded $137,254 and $111,975 respectively, in salaries and benefits paid to Thomas Hanson, COO and Director. At December 31, 2021 and 2020, $18,277 and $81,268 in salaries payable were due to Mr. Hanson.

During the years ended December 31, 2021 and 2020, the Company recorded $57,267 and $146,136, respectively, in salaries and benefits paid to Dallyce Sax, VP of Client Relations. At December 31, 2021 and 2020 $0 and $56,900 in salaries payable were due to Mr. Sax.

On September 30, 2021, the parties forgave $449,186 in accrued wages, including salaries payable of $292,859 as of December 31, 2020, which was accounted for as a capital contribution to additional paid in capital.

As of December 31, 2021 and 2020, the Company owed $620 and $615, respectively, in shareholder advances payable to Adam Sax.

The following is a summary of wages accrued and forgiven by related parties during the years ended December 31, 2021 and 2020:

---

| | | | |
|:---|:---|:---|:---|
|  | **Adam Sax** | **Tom Hanson** | **Dallyce Sax** |
|  Balance as of January 1, 2020 | $53216 | $— | $— |
|  Paid | (14643) |  |  |
|  Accrued | 116117 | 81268 | 56900 |
|  Forgiven |  |  |  |
|  Balance as of December 31, 2020 | $154690 | $81268 | 56900 |
|  Accrued | 100779 | 76446 | 19179 |
|  Forgiven (2020 wages) | (154690) | (81268) | (56900) |
|  Forgiven (2021 wages) | (75136) | (58168) | (19179) |
|  Balance as of December 31, 2021 | $25643 | $18276 | $— |

---

#### Note 10. Significant Estimates and Concentrations
For the years ended December 31, 2021 and 2020, customer concentrations (more than 10%) were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Percentage of Revenue <br>Year Ended December 31,** | **Percentage of Revenue <br>Year Ended December 31,** | **Percentage of <br>Accounts Receivable <br>As of December 31,** | **Percentage of <br>Accounts Receivable <br>As of December 31,** |
|  | **2021** | **2020** | **2021** | **2020** |
|  Aerodyne Measure | 80% | 1% | 93% |  |
|  CG Mining Company Ltd |  | 58% |  |  |
|  Stantec | 4% | 3% | 2% | 20% |
|  Total (as a group) | 84% | 62% | 95% | 20% |

---

[**Table of Contents**](#TOC001)

#### Droneify Holdings Limited<br>Notes to the Consolidated Financial Statements<br>December 31, 2021 and 2020
**Note 11. Subsequent Events**

Subsequent to December 31, 2021, the Company issued 34,957 ordinary shares.

In August 2022, Droneify launched a private placement pursuant to which it is offering up to 1,500,000 class A common shares, at a purchase price of $1.00 per share, for total gross proceeds of up to $1,500,000. Boustead Securities, LLC is acting as placement agent in connection with this private placement. As compensation for its services, it will receive (i) a cash commission equal to 7% of the gross proceeds, (ii) a 1% non-accountable expense allowance and (iii) warrants for the purchase of a number of class A common shares of Droneify equal to 7% of the number of shares issued in the private placement at an exercise price of $1.00 per share (subject to adjustments), which may be exercised on a cashless basis.

On September 26, 2022, Droneify completed an initial closing of this private placement in which it issued an aggregate of 250,000 class A common shares for total gross proceeds of $250,000 and net proceeds of approximately $144,980. Droneify also issued a warrant for the purchase of 17,500 class A common shares to Boustead Securities, LLC. These shares were immediately exchanged for 250,000 ordinary shares of Droneify Holdings and the warrant was exchanged for a warrant for 17,500 ordinary shares of Droneify Holdings pursuant to the restructuring. The Company determined the initially issued Droneify warrants to be equity instruments pursuant to ASC 480 and ASC 815, as the warrants are indexed to the issuer's own stock and meet the conditions of equity classification. On exchange of warrants into Droneify Holdings, the Company recognizes additional fair value, if any, as an equity issuance cost as a component of equity.

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#### 923,077 Ordinary shares

#### DRONEIFY HOLDINGS LIMITED

#### ___________________

#### PROSPECTUS

#### ___________________
*Underwriter*

BOUSTEAD SECURITIES, LLC

#### _____________, 2023
Until , 2023, 25 days after the date of this prospectus, all dealers that buy, sell or trade our securities, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.

------

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#### [Alternate Page for Resale Prospectus]
**The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.**

#### SUBJECT TO COMPLETION, DATED FEBRUARY 8, 2023

#### PRELIMINARY PROSPECTUS

#### Droneify Holdings Limited

#### 1,500,000 Ordinary Shares
This prospectus relates to 1,500,000 ordinary shares of Droneify Holdings Limited that may be sold from time to time by the selling shareholders named in this prospectus.

We will not receive any proceeds from the sales of outstanding common shares by the selling shareholders.

Currently, there is no public market for our ordinary shares. We have applied to list our ordinary shares on The Nasdaq Capital Market under the symbol "DRFY". There can be no assurance that we will be able to meet Nasdaq's initial listing requirements or that we will otherwise be approved for listing.

We are an "emerging growth company," as that term is used in the Jumpstart Our Business Startups Act of 2012, and as such, have elected to comply with certain reduced public company reporting requirements for this prospectus and future filings. See "*Prospectus Summary — Implications of Being an Emerging Growth Company*."

The selling shareholders may offer and sell the ordinary shares being offered by this prospectus from time to time in public or private transactions, or both. These sales will occur at a fixed price of $6.50 per share until our ordinary shares are quoted on the OTCQB or OTCQX marketplace, or listed on a national securities exchange. Thereafter, these sales will occur at fixed prices, at market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices. The selling shareholders may sell shares to or through underwriters, broker-dealers or agents, who may receive compensation in the form of discounts, concessions or commissions from the selling shareholders, the purchasers of the shares, or both. Any participating broker-dealers and any selling shareholders who are affiliates of broker-dealers may be deemed to be "underwriters" within the meaning of the Securities Act of 1933, as amended, and any commissions or discounts given to any such broker-dealer or affiliates of a broker-dealer may be regarded as underwriting commissions or discounts under the Securities Act of 1933, as amended. The selling shareholders have informed us that they do not have any agreement or understanding, directly or indirectly, with any person to distribute their ordinary shares. See "*Plan of Distribution*" for a more complete description of the ways in which the shares may be sold.

**Investing in our ordinary shares involves a high degree of risk. Before buying any shares, you should carefully read the discussion of the material risks of investing in our ordinary shares under the heading "Risk Factors" beginning on page 12 of this prospectus.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

The date of this prospectus is , 2023

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#### [Alternate Page for Resale Prospectus]

#### THE OFFERING

---

| | |
|:---|:---|
|  Shares offered by the selling shareholders: | This prospectus relates to 1,500,000 ordinary shares that may be sold from time to time by the selling shareholders named in this prospectus. |
|  Shares outstanding<sup>(1)</sup>: | 8,591,634 ordinary shares (or 8,730,096 ordinary shares if the underwriters exercise the over-allotment option in full). |
|  Use of proceeds: | We will not receive any proceeds from the sales of outstanding ordinary shares by the selling shareholders. |
|  Risk factors: | Investing in our ordinary shares involves a high degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully consider the information set forth in the "*Risk Factors*" section beginning on page 12. |
|  Trading market and symbol: | We have applied to list our ordinary shares on The Nasdaq Capital Market under the symbol "DRFY". There can be no assurance that we will be able to meet Nasdaq's initial listing requirements or that we will otherwise be approved for listing. |

---

____________

(1) The number of ordinary shares outstanding assumes the issuance by us of ordinary shares pursuant to the Public Offering Prospectus filed contemporaneously herewith and excludes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 472,944 ordinary shares issuable upon the exercise of outstanding options at a weighted average exercise price of C$1.56 (approximately US$1.21) per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 500,000 ordinary shares that are reserved for future issuance under our equity incentive plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 63,700 ordinary shares issuable upon the exercise of outstanding warrants at an exercise price of $7.50; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• up to 74,308 ordinary shares issuable upon exercise of the representative's warrants issued in connection with the initial public offering.

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#### [Alternate Page for Resale Prospectus]

#### USE OF PROCEEDS
We will not receive any proceeds from the sale of ordinary shares by the selling shareholders.

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#### [Alternate Page for Resale Prospectus]

#### SELLING SHAREHOLDERS
The ordinary shares being offered by the selling shareholders are those restricted shares previously issued to the selling shareholders. We are registering the shares in order to permit the selling shareholders to offer the shares for resale from time to time. Except for the ownership of these shares, the selling shareholders have not had any material relationship with us within the past three years and based on the information provided to us by the selling shareholders, no selling shareholder is a broker-dealer or an affiliate of a broker-dealer.

The table below lists the selling shareholders and other information regarding the ownership of the ordinary shares by each of the selling shareholders. The second column lists the number of ordinary shares owned by each selling shareholder. The third column lists the ordinary shares being offered by this prospectus by the selling shareholders. The fourth column assumes the sale of all of the ordinary shares offered by the selling shareholders pursuant to this prospectus.

The selling shareholders may sell all, some or none of their shares in this offering. See "*Plan of Distribution*."

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Name of Selling Shareholder** | **Ordinary<br>Shares<br>Beneficially<br>Owned<br>Prior to this<br>Offering** | **Number of<br>Shares<br>Being<br>Offered** | **<br>Ordinary Shares<br>Beneficially Owned<br>After this Offering** | **<br>Ordinary Shares<br>Beneficially Owned<br>After this Offering** |
|  **Name of Selling Shareholder** | **Ordinary<br>Shares<br>Beneficially<br>Owned<br>Prior to this<br>Offering** | **Number of<br>Shares<br>Being<br>Offered** | **Shares** | **Percent<sup>(1)</sup>** |
|  Alessandro Sax | 379598 | 379598 |  |  |
|  BaseStones, Inc. | 75000 | 75000 |  |  |
|  Chris Etherington | 25000 | 25000 |  |  |
|  Dallyce Sax | 93618 | 93618 |  |  |
|  Don Reid | 218848 | 18848 | 200000 | 2.61% |
|  Eternal Horizon International Company Limited | 50000 | 50000 |  |  |
|  Iman Shafiei | 50000 | 50000 |  |  |
|  Jason Kennedy | 25000 | 25000 |  |  |
|  Jeffrey Stephen Moore | 41216 | 41216 |  |  |
|  John Domsy | 50000 | 50000 |  |  |
|  Mark Matthews | 50000 | 50000 |  |  |
|  Oleta Investments, LLC | 50000 | 50000 |  |  |
|  Petros Nomikos | 100000 | 100000 |  |  |
|  Pietro-Fillipppo Jr. Riccio | 5349 | 5349 |  |  |
|  Robert Helina | 25000 | 25000 |  |  |
|  Robert Smith | 100000 | 100000 |  |  |
|  Sequence Nine Ltd. | 25000 | 25000 |  |  |
|  Solly Erwin Sax | 51356 | 51356 |  |  |
|  The Gilbert Matthews Family Trust DTD 4/25/12 | 25000 | 25000 |  |  |
|  Varkes Churukian | 25000 | 25000 |  |  |
|  Vertical Holdings, LLC | 100000 | 100000 |  |  |
|  William Hanson | 35015 | 35015 |  |  |
|  William Harty | 50000 | 50000 |  |  |
|  Wing Kai Lam | 50000 | 50000 |  |  |

---

____________

(1) Applicable percentage ownership after to this offering is based on 7,668,557 ordinary shares outstanding as of February 7, 2023. As noted above, for purposes of computing percentage ownership after this offering, we have assumed that all ordinary shares offered by the selling shareholders will be sold in this offering.

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#### [Alternate Page for Resale Prospectus]

#### PLAN OF DISTRIBUTION
Each selling shareholder and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their shares covered hereby on any stock exchange, market or trading facility on which the ordinary shares are traded or in private transactions. These sales will occur at a fixed price of $6.50 per share until our ordinary shares are quoted on the OTCQB or OTCQX marketplace, or listed on a national securities exchange. Thereafter, these sales will occur at fixed prices, at market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices. A selling shareholder may use any one or more of the following methods when selling the shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• block trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion of the block as principal to facilitate the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exchange distribution in accordance with the rules of the applicable exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• privately negotiated transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• settlement of short sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in transactions through broker-dealers that agree with the selling shareholders to sell a specified number of such securities at a stipulated price per security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a combination of any such methods of sale; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any other method permitted pursuant to applicable law.

The selling shareholders may also sell shares under Rule 144 of the Securities Act, if available, rather than under this prospectus. The selling shareholders shall have the sole and absolute discretion not to accept any purchase offer or make any sale of shares if it deems the purchase price to be unsatisfactory at any particular time.

The selling shareholders or their respective pledgees, donees, transferees or other successors in interest, may also sell the shares directly to market makers acting as principals and/or broker-dealers acting as agents for themselves or their customers. Such broker-dealers may receive compensation in the form of discounts, concessions or commissions from the selling shareholders and/or the purchasers of shares for whom such broker-dealers may act as agents or to whom they sell as principal or both, which compensation as to a particular broker-dealer might be in excess of customary commissions. Market makers and block purchasers purchasing the shares will do so for their own account and at their own risk. It is possible that a selling shareholder will attempt to sell shares in block transactions to market makers or other purchasers at a price per share which may be below the then existing market price. We cannot assure that all or any of the shares offered in this prospectus will be issued to, or sold by, the selling shareholders. The selling shareholders and any brokers, dealers or agents, upon effecting the sale of any of the shares offered in this prospectus, may be deemed to be "underwriters" as that term is defined under the Securities Act, the Exchange Act and the rules and regulations of such acts. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.

We are required to pay all fees and expenses incident to the registration of the shares, including fees and disbursements of counsel to the selling shareholders, but excluding brokerage commissions or underwriter discounts.

The selling shareholders, alternatively, may sell all or any part of the shares offered in this prospectus through an underwriter. The selling shareholders have not entered into any agreement with a prospective underwriter and there is no assurance that any such agreement will be entered into.

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#### [Alternate Page for Resale Prospectus]
The selling shareholders may pledge their shares to their brokers under the margin provisions of customer agreements. If a selling shareholder defaults on a margin loan, the broker may, from time to time, offer and sell the pledged shares. The selling shareholders and any other persons participating in the sale or distribution of the shares will be subject to applicable provisions of the Exchange Act, and the rules and regulations under such act, including, without limitation, Regulation M. These provisions may restrict certain activities of, and limit the timing of purchases and sales of any of the shares by, the selling shareholders or any other such person. In the event that any of the selling shareholders are deemed an affiliated purchaser or distribution participant within the meaning of Regulation M, then the selling shareholders will not be permitted to engage in short sales of common shares. Furthermore, under Regulation M, persons engaged in a distribution of securities are prohibited from simultaneously engaging in market making and certain other activities with respect to such securities for a specified period of time prior to the commencement of such distributions, subject to specified exceptions or exemptions. In addition, if a short sale is deemed to be a stabilizing activity, then the selling shareholders will not be permitted to engage in a short sale of our shares. All of these limitations may affect the marketability of the shares.

If a selling shareholder notifies us that it has a material arrangement with a broker-dealer for the resale of the shares, then we would be required to amend the registration statement of which this prospectus is a part, and file a prospectus supplement to describe the agreements between the selling shareholder and the broker-dealer.

[**Table of Contents**](#TOC001)

#### LEGAL MATTERS
The validity of the ordinary shares covered by this prospectus will be passed upon by Travers Thorp Alberga.

[**Table of Contents**](#TOC001)

#### PART II <br> INFORMATION NOT REQUIRED IN THE PROSPECTUS

#### Item 6. Indemnification of Directors and Officers.
Cayman Islands law does not limit the extent to which a company's memorandum and articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against fraud, willful default or the consequences of committing a crime. Our amended and restated memorandum and articles of association provide that that we shall indemnify our directors and officers against any liability, action, proceeding, claim, demand, costs, damages or expenses, including legal expenses, whatsoever which they or any of them may incur as a result of any act or failure to act in carrying out their functions other than such liability (if any) that they may incur by reason of their own actual fraud or willful default.

Under the form of indemnification agreement filed as an exhibit to this registration statement, we will agree to indemnify our directors and executive officers against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being such a director or executive officer.

The form of underwriting agreement filed as an exhibit to this registration statement will also provide for indemnification of us and our officers and directors.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us under the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

#### Item 7. Recent Sales of Unregistered Securities.
In the past three years, we have issued and sold the securities described below without registering the securities under the Securities Act.

On September 23, 2022, we commenced a corporate restructuring pursuant to a share exchange agreement that we entered into with Droneify and its shareholders. Pursuant to the share exchange agreement, we have acquired 6,544,202 class A common shares of Droneify in exchange for which we issued 6,544,202 ordinary shares to the shareholders of Droneify. As a result of this restructuring, we own 84.15% of the issued and outstanding class A common shares of Droneify. One shareholder holds the remaining shares that have not yet been exchanged. Such shareholder has indicated that it will exchange its shares following the completion of this offering, at which time we would own 100% of Droneify. If such shareholder does not exchange its shares, Droneify would remain a majority-owned subsidiary rather than a wholly-owned subsidiary.

In August 2022, Droneify launched a private placement pursuant to which it is offering up to 1,500,000 class A common shares, at a purchase price of $1.00 per share, for total gross proceeds of up to $1,500,000. Boustead Securities, LLC, the representative of the underwriters for this offering, is acting as placement agent in connection with this private placement. As compensation for its services, it will receive (i) a cash commission equal to 7% of the gross proceeds, (ii) a 1% non-accountable expense allowance and (iii) warrants for the purchase of a number of class A common shares of Droneify equal to 7% of the number of shares issued in the private placement at an exercise price of $7.50 per share (subject to adjustments), which may be exercised on a cashless basis. Commencing on September 26, 2022, Droneify has completed multiple closings of this private placement in which it has issued an aggregate of 910,000 class A common shares for total gross proceeds of $910,000 and net proceeds of approximately $711,782. Droneify has also issued warrants for the purchase of 63,700 class A common shares to Boustead Securities, LLC. These shares were immediately exchanged for 910,000 ordinary shares of our company and the warrants were exchanged for warrants for 63,700 ordinary shares of our company pursuant to the share exchange agreement described above. We determined the initially issued Droneify warrants to be equity instruments pursuant to ASC 480 and ASC 815, as the warrants are indexed to the issuer's own stock and meet the conditions of equity classification. On exchange of warrants into our company, we recognize additional fair value, if any, as an equity issuance cost as a component of equity.

On September 26, 2022, we issued 25,000 ordinary shares to Bevilacqua PLLC, our outside securities counsel, which it received as partial consideration for legal services previously provided to us.

[**Table of Contents**](#TOC001)

On December 30, 2022, we issued an aggregate of 74,355 ordinary shares to certain consultants and advisors in consideration for services rendered to us.

On December 30, 2022, we issued 15,000 ordinary shares to JJL Capital Management, LLC as settlement for accounts payable in the amount of $15,000 owed to it.

On January 20, 2023, we issued 100,000 ordinary shares to LDR Credit Partners LLC as settlement for debt in the amount of $100,000 owed to it.

No underwriters were involved in these issuances. We believe that each of the above issuances was exempt from registration under the Securities Act in reliance on Regulation S under the Securities Act or pursuant to Section 4(2) of the Securities Act regarding transactions not involving a public offering.

#### Item 8. Exhibits and Financial Statement Schedules.
(a) Exhibits

---

| | |
|:---|:---|
|  **Exhibit No.** | **Description** |
|  1.1\* | Form of Underwriting Agreement |
| 3.1 | [Form of Amended and Restated Memorandum and Articles of Association of Droneify Holdings Limited](ff12023ex3-1_droneify.htm) |
|  4.1\* | Form of Representative's Warrant (included in Exhibit 1.1) |
| 4.2 | [Warrant issued by Droneify Ltd. to Boustead Securities, LLC on September 26, 2022](ff12023ex4-2_droneify.htm) |
| 4.3 | [Warrant issued by Droneify Ltd. to Boustead Securities, LLC on October 21, 2022](ff12023ex4-3_droneify.htm) |
| 4.4 | [Warrant issued by Droneify Ltd. to Boustead Securities, LLC on December 7, 2022](ff12023ex4-4_droneify.htm) |
| 4.5 | [Warrant issued by Droneify Ltd. to Boustead Securities, LLC on January 30, 2023](ff12023ex4-5_droneify.htm) |
| 4.6 | [Warrant issued by Droneify Ltd. to Boustead Securities, LLC on February 1, 2023](ff12023ex4-6_droneify.htm) |
| 4.7 | [Warrant issued by Droneify Ltd. to Boustead Securities, LLC on February 3, 2023](ff12023ex4-7_droneify.htm) |
|  5.1\* | Opinion of Travers Thorp Alberga regarding the legality of the ordinary shares |
|  5.2\* | Opinion of Bevilacqua PLLC regarding the enforceability of the representative warrants |
|  8.1\* | Opinion of Potomac Law Group regarding certain U.S. tax matters |
| 10.1 | [Form of Share Exchange Agreement, dated September 23, 2022, among Droneify Holdings Limited, Droneify Ltd. and the shareholders of Droneify Ltd.](ff12023ex10-1_droneify.htm) |
| 10.2 | [Form of Subscription Agreement relating to 2022 private placement](ff12023ex10-2_droneify.htm) |
| 10.3 | [Form of Service Agreement between Droneify Ltd. and pilots](ff12023ex10-3_droneify.htm) |
| 10.4 | [Teaming Agreement, dated January 6, 2023, between Droneify Ltd. and Aerodyne Measure Inc.](ff12023ex10-4_droneify.htm) |
| 10.5 | [Master Subcontract Agreement, dated May 11, 2022, between Droneify Ltd. and WSP Canada Inc.](ff12023ex10-5_droneify.htm) |
| 10.6 | [License Agreement, dated August 1, 2015, between Droneify Ltd. and 1040227 BC Ltd.](ff12023ex10-6_droneify.htm) |
| 10.7 | [Lease Agreement, dated March 29, 2021, between Droneify Ltd. and 2026324 Ontario Inc.](ff12023ex10-7_droneify.htm) |
| 10.8 | [Executive Employment Agreement, dated October 25, 2018, between Droneify Ltd. and Adam Sax](ff12023ex10-8_droneify.htm) |
| 10.9 | [Employment Agreement, dated October 7, 2017, between Droneify Ltd. and Thomas Hanson](ff12023ex10-9_droneify.htm) |
| 10.10 | [Amendment to Employment Agreement, dated August 19, 2019, between Droneify Ltd. and Thomas Hanson](ff12023ex10-10_droneify.htm) |
| 10.11 | [Employment Agreement, dated February 6, 2023, between Droneify Holdings Limited and Scott J. Silverman](ff12023ex10-11_droneify.htm) |
| 10.12 | [Consulting Agreement, dated August 11, 2022, between EverAsia Financing Group, Inc. and Droneify Ltd.](ff12023ex10-12_droneify.htm) |
| 10.13 | [Form of Independent Director Agreement](ff12023ex10-13_droneify.htm) |
| 10.14 | [Form of Indemnification Agreement](ff12023ex10-14_droneify.htm) |
| 10.15 | [Droneify Holdings Limited 2022 Equity Incentive Plan](ff12023ex10-15_droneify.htm) |
| 10.16 | [Form of Share Option Agreement (2022 Equity Incentive Plan)](ff12023ex10-16_droneify.htm) |
| 10.17 | [Form of Restricted Share Award Agreement (2022 Equity Incentive Plan)](ff12023ex10-17_droneify.htm) |
| 10.18 | [Form of Restricted Share Unit Award Agreement (2022 Equity Incentive Plan)](ff12023ex10-18_droneify.htm) |
| 10.19 | [Droneify Ltd. Stock Option Plan and Form of Stock Option Agreement](ff12023ex10-19_droneify.htm) |
| 21.1 | [List of Subsidiaries](ff12023ex21-1_droneify.htm) |
| 23.1 | [Consent of BF Borgers CPA PC](ff12023ex23-1_droneify.htm) |

---

[**Table of Contents**](#TOC001)

---

| | |
|:---|:---|
|  **Exhibit No.** | **Description** |
|  23.2\* | Consent of Travers Thorp Alberga (included in Exhibit 5.1) |
|  23.3\* | Consent of Bevilacqua PLLC (included in Exhibit 5.2) |
|  23.4\* | Consent of Potomac Law Group (included in Exhibit 8.1) |
| 24.1 | [Power of Attorney (included on the signature page of this registration statement)](#T500) |
| 99.1 | [Consent of Larry Goldman](ff12023ex99-1_droneify.htm) |
| 107 | [Exhibit Filing Fees](ff12023ex-fee_droneify.htm) |

---

____________

\* To be filed by amendment

(b) Financial Statement Schedules

Schedules have been omitted because the information required to be set forth therein is not applicable or is shown in the financial statements or the notes thereto.

#### Item 9. Undertakings.
The undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement, certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For purposes of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

[**Table of Contents**](#TOC001)

#### SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-1 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oakville, Canada on February 8, 2023.

---

| | |
|:---|:---|
|  **DRONEIFY HOLDINGS LIMITED** | **DRONEIFY HOLDINGS LIMITED** |
|  By: | /s/ Adam Sax |
|  Name: | Adam Sax |
|  Title: | Chief Executive Officer |

---

#### POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Adam Sax and Scott J. Silverman, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments, including post-effective amendments, to this registration statement, and any registration statement relating to the offering covered by this registration statement and filed pursuant to Rule 462(b) under the Securities Act of 1933, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that each of said attorneys in fact and agents or their substitute or substitutes may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
|  **Signature** | **Title** | **Date** |
|  /s/ Adam Sax | Chief Executive Officer and Director | February 8, 2023 |
|  Adam Sax | (Principal Executive Officer) |  |
|  /s/ Scott J. Silverman | Chief Financial Officer (Principal Financial and | February 8, 2023 |
|  Scott J. Silverman | Accounting Officer) |  |
|  /s/ Tom Hanson | Chief Operating Officer and Director | February 8, 2023 |
|  Tom Hanson |  |  |
|  /s/ Stuart W. Henderson | Director | February 8, 2023 |
|  Stuart W. Henderson |  |  |
|  /s/ Ian M. Hull | Director | February 8, 2023 |
|  Ian M. Hull |  |  |

---

[**Table of Contents**](#TOC001)

#### SIGNATURE OF AUTHORIZED REPRESENTATIVE IN THE UNITED STATES
Pursuant to the Securities Act of 1933, the undersigned, the duly authorized representative in the United States of Droneify Holdings Limited has signed this registration statement or amendment thereto in New York on February 8, 2023.

---

| | |
|:---|:---|
|  **Authorized U.S. Representative** | **Authorized U.S. Representative** |
|  By: | /s/ Colleen A. De Vries |
|  Name: | Colleen A. De Vries |
|  Title: | Sr. Vice President on behalf of Cogency Global Inc. |

---

## Exhibit 3.1

**Exhibit 3.1**

**THE COMPANIES ACT (REVISED)<br> OF THE CAYMAN ISLANDS<br> COMPANY LIMITED BY SHARES**

**AMENDED AND RESTATED**

**MEMORANDUM OF ASSOCIATION<br>OF<br>DRONEIFY HOLDINGS LIMITED**

(adopted by a Special Resolution passed on [ ] and<br> effective immediately upon completion of the Company's initial public offering of shares)

1. The name of the Company is Droneify Holdings Limited.

2. The registered office of the Company shall be at the offices of International Corporation Services Ltd.,
Harbour Place 2nd Floor, 103 South Church Street, P.O. Box 472, George Town, Grand Cayman KYI-1106, Cayman Islands or at such other place
as the Directors may from time to time decide.

3. The objects for which the Company is established are unrestricted and the Company shall have full power
and authority to carry out any object not prohibited by the Companies Act (Revised) or as the same may be revised from time to time, or
any other law of the Cayman Islands.

4. The liability of each Member is limited to the amount from time to time unpaid on such Member's
shares.

5. The authorized share capital of the Company is US$50,000 divided into 500,000,000 shares of a nominal
or par value of US$0.0001 each. The Company has the power to redeem or purchase any of its shares and to increase or reduce the said capital
subject to the provisions of the Companies Act (Revised) and the Articles of Association and to issue any part of its capital, whether
original, redeemed or increased with or without any preference, priority or special privilege or subject to any postponement of rights
or to any conditions or restrictions and so that unless the conditions of issue shall otherwise expressly declare every issue of shares
whether declared to be preference or otherwise shall be subject to the powers hereinbefore contained.

6. The Company has the power to register by way of continuation as a body corporate limited by shares under
the laws of any jurisdiction outside the Cayman Islands and to be deregistered in the Cayman Islands.

7. Capitalized terms that are not defined in this Memorandum of Association bear the same meaning as those
given in the Articles of Association of the Company.

**THE COMPANIES ACT (REVISED)<br> OF THE CAYMAN ISLANDS<br> COMPANY LIMITED BY SHARES**

**SECOND AMENDED AND RESTATED**

**ARTICLES OF ASSOCIATION<br>OF<br>DRONEIFY HOLDINGS LIMITED**

(adopted by a Special Resolution passed on [ ] and<br> effective immediately upon completion of the Company's initial public offering of shares)

**INTERPRETATION**

1. In these Articles, Table A in the Schedule in the Companies Act does not apply and unless otherwise defined,
the defined terms shall have the meanings assigned to them as follows:

---

| | |
|:---|:---|
| <br> "**Articles**" | these Articles of Association of the Company as altered or added to, from time to time; |
| "**Board**" or "**Board of Directors**" | the board of Directors for the time being of the Company; |
| "**Business Day**" | a day (excluding Saturdays or Sundays), on which banks in the Cayman Islands, Canada and New York are open for general banking business throughout their normal business hours; |
| "**Chairman**" | the Chairman appointed pursuant to Article 83; |
| "**Commission**" | Securities and Exchange Commission of the United States of America or any other federal agency for the time being administering the Securities Act; |
| "**Companies Act**" | the Companies Act (Revised) of the Cayman Islands and any statutory amendment or re-enactment thereof. Where any provision of the Companies Act is referred to, the reference is to that provision as amended by any law for the time being in force; |
| "**Company**" | Droneify Holdings Limited, a Cayman Islands company limited by shares; |
| "**Company's Website**" | the website of the Company, the address or domain name of which has been notified to Members; |
| "**Designated Stock Exchange**" | The Nasdaq Stock Market (any tier), The New York Stock Exchange, NYSE American or any other internationally recognized stock exchange where the Company's securities are traded; |

---

---

| | |
|:---|:---|
| "**Directors**" | the directors of the Company for the time being, or as the case may be, the Directors assembled as a Board or as a committee thereof; |
| "**electronic**" | the meaning given to it in the Electronic Transactions Act; |
| "**electronic communication**" | electronic posting to the Company's Website, transmission to any number, address or internet website or other electronic delivery methods as otherwise decided and approved by not less than two-thirds of the vote of the Board; |
| "**Electronic Record**" | has the same meaning as in the Electronic Transactions Act; |
| "**Electronic Transactions Law**" | the Electronic Transactions Act (Revised) of the Cayman Islands and any statutory amendment or re-enactment thereof. Where any provision of the Electronic Transactions Act is referred to, the reference is to that provision as amended by any law for the time being in force; |
| "**in writing**" | includes writing, printing, lithograph, photograph, type-writing and every other mode of representing words or figures in a legible and non-transitory form and, only where used in connection with a notice served by the Company on Members or other persons entitled to receive notices hereunder, shall also include a record maintained in an electronic medium which is accessible in visible form so as to be useable for subsequent reference; |
| "**Member**" | the meaning given to it in the Companies Act; |
| "**Memorandum of Association**" | the Memorandum of Association of the Company, as amended and re-stated from time to time; |
| "**month**" | calendar month; |
| "**Ordinary Resolution**" | a resolution:<br>(a) passed by a simple majority of votes cast by such Members as, being entitled to do so, vote in person or, in the case of any Member being an organization, by its duly authorized representative or, where proxies are allowed, by proxy at a general meeting of the Company; or<br>(b) approved in writing by all of the Members entitled to vote at a general meeting of the Company in one or more instruments each signed by one or more of the Members and the effective date of the resolution so adopted shall be the date on which the instrument, or the last of such instruments if more than one, is executed; |
| "**paid up**" | paid up as to the par value and any premium payable in respect of the issue of any shares and includes credited as paid up; |
| "**Register of Members**" | the register to be kept by the Company in accordance with the Companies Act; |

---

---

| | |
|:---|:---|
| "S**eal**" | the Common Seal of the Company (if adopted) including any facsimile thereof; |
| "**Securities Act**" | the Securities Act of 1933 of the United States of America, as amended, or any similar federal statute and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time; |
| "**share**" | any share in the capital of the Company and includes a fraction of a share; |
| "**signed**" | includes a signature or representation of a signature affixed by mechanical means or an electronic symbol or process attached to or logically associated with an electronic communication and executed or adopted by a person with the intent to sign the electronic communication; |
| "**Special Resolution**" | the meaning given to it in the Companies Act and includes a unanimous written resolution; |
| "**Statutes**" | the Companies Act and every other laws and regulations of the Cayman Islands for the time being in force concerning companies and affecting the Company; |
| "**Treasury Share**" | means a share held in the name of the Company as a treasury share in accordance with the Companies Act; |
| "**year**" | calendar year. |

---

2. In these Articles, save where the context requires otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words importing the singular number shall include the plural number and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) words importing the masculine gender only shall include the feminine gender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) words importing persons only shall include companies or associations or bodies of persons, whether corporate
or not;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "written" and "in writing" include all modes of representing or reproducing words
in visible form, including in the form of an Electronic Record;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "may" shall be construed as permissive and "shall" shall be construed as imperative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a reference to a dollar or dollars (or $) is a reference to dollars of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) references to provisions of any law or regulation shall be construed as references to those provisions
as amended, modified, re-enacted or replaced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any phrase introduced by the terms "including", "include", "in particular"
or any similar expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the term "and/or" is used herein to mean both "and" as well as "or."
The use of "and/or" in certain contexts in no respects qualifies or modifies the use of the terms "and" or "or"
in others. The term "or" shall not be interpreted to be exclusive and the term "and" shall not be interpreted
to require the conjunctive (in each case, unless the context otherwise requires);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) headings are inserted for reference only and shall be ignored in construing the Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any requirements as to delivery under the Articles include delivery in the form of an Electronic Record;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) any requirements as to execution or signature under the Articles including the execution of the Articles
themselves can be satisfied in the form of an electronic signature as defined in the Electronic Transactions Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Section 8 and 19(3) of the Electronic Transactions Act shall not reply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) the term "clear days" in relation to the period of a notice means that period excluding the
day when the notice is received or deemed to be received and the day for which it is given or on which it is to take effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) the term "holder" in relation to a share means a person whose name is entered in the Register
of Members as the holder of such share.

3. Subject to the last two preceding Articles, any words defined in the Companies Act shall, if not inconsistent
with the subject or context, bear the same meaning in these Articles.

**PRELIMINARY**

4. The business of the Company may be conducted as the Directors see fit.

5. The registered office of the Company shall be at such address in the Cayman Islands as the Directors shall
from time to time determine. The Company may in addition establish and maintain such other offices and places of business and agencies
in such places as the Directors may from time to time determine.

**ISSUE OF SHARES**

6. Subject to the provisions, if any, in the Memorandum of Association, these Articles and to any direction
that may be given by the Company in a general meeting, the Directors may, in their absolute discretion and without approval of the existing
Members, issue shares, grant rights over existing shares or issue other securities in one or more series as they deem necessary and appropriate
and determine designations, powers, preferences, privileges and other rights, including dividend rights, conversion rights, terms of redemption
and liquidation preferences, any or all of which may be greater than the powers and rights associated with the shares held by existing
Members, at such times and on such other terms as they think proper. The Company shall not issue shares in bearer form.

7. The Directors may provide, out of the unissued shares, for series of preferred shares. Before any preferred
shares of any such series are issued, the Directors shall fix, by resolution or resolutions, the following provisions of the preferred
shares thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the designation of such series, the number of preferred shares to constitute such series and the subscription
price thereof if different from the par value thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whether the shares of such series shall have voting rights, in addition to any voting rights provided
by law, and, if so, the terms of such voting rights, which may be general or limited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the dividends, if any, payable on such series, whether any such dividends shall be cumulative, and, if
so, from what dates, the conditions and dates upon which such dividends shall be payable, the preference or relation which such dividends
shall bear to the dividends payable on any shares of any other class or any other series of preferred shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) whether the preferred shares of such series shall be subject to redemption by the Company, and, if so,
the times, prices and other conditions of such redemption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the amount or amounts payable upon preferred shares of such series upon, and the rights of the holders
of such series in, a voluntary or involuntary liquidation, dissolution or winding up, or upon any distribution of the assets, of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) whether the preferred shares of such series shall be subject to the operation of a retirement or sinking
fund and, if so, the extent to and manner in which any such retirement or sinking fund shall be applied to the purchase or redemption
of the preferred shares of such series for retirement or other corporate purposes and the terms and provisions relative to the operation
thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) whether the preferred shares of such series shall be convertible into, or exchangeable for, shares of
any other class or any other series of preferred shares or any other securities and, if so, the price or prices or the rate or rates of
conversion or exchange and the method, if any, of adjusting the same, and any other terms and conditions of conversion or exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the limitations and restrictions, if any, to be effective while any preferred shares of such series are
outstanding upon the payment of dividends or the making of other distributions on, and upon the purchase, redemption or other acquisition
by the Company of, the existing shares or shares of any other class of shares or any other series of preferred shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the conditions or restrictions, if any, upon the creation of indebtedness of the Company or upon the issue
of any additional shares, including additional shares of such series or of any other class of shares or any other series of preferred
shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any other powers, preferences and relative, participating, optional and other special rights, and any
qualifications, limitations and restrictions thereof.

Without limiting the foregoing and subject to Article 83, the voting powers of any series of preferred shares may include the right, in the circumstances specified in the resolution or resolutions providing for the issuance of such preferred shares, to elect one or more Directors who shall serve for such term and have such voting powers as shall be stated in the resolution or resolutions providing for the issuance of such preferred shares. The term of office and voting powers of any Director elected in the manner provided in the immediately preceding sentence of this Article 7 may be greater than or less than those of any other Director or class of Directors.

8. The powers, preferences and relative, participating, optional and other special rights of each series
of preferred shares, and the qualifications, limitations or restrictions thereof, if any, may differ from those of any and all other series
at any time outstanding. All shares of any one series of preferred shares shall be identical in all respects with all other shares of
such series, except that shares of any one series issued at different times may differ as to the dates from which dividends thereon shall
be cumulative.

**REGISTER OF MEMBERS AND SHARE CERTIFICATES**

9. The Company shall maintain a Register of its Members and a Member shall only be entitled to a share certificate
if the Directors resolve that share certificates shall be issued. Share certificates (if any) shall specify the share or shares held by
that person and the amount paid up thereon, provided that in respect of a share or shares held jointly by several persons the Company
shall not be bound to issue more than one certificate, and delivery of a certificate for a share to one of several joint holders shall
be sufficient delivery to all. All certificates for shares shall be delivered personally or sent through the post addressed to the Member
entitled thereto at the Member's registered address as appearing in the register.

10. All share certificates shall bear legends required under the applicable laws, including the Securities
Act.

11. Any two or more certificates representing shares of any one class held by any Member may at the Member's
request be cancelled and a single new certificate for such shares issued in lieu on payment (if the Directors shall so require) of US$1.00
or such smaller sum as the Directors shall determine.

12. If a share certificate shall be damaged or defaced or alleged to have been lost, stolen or destroyed,
a new certificate representing the same shares may be issued to the relevant Member upon request subject to delivery up of the old certificate
or (if alleged to have been lost, stolen or destroyed) compliance with such conditions as to evidence and indemnity and the payment of
out-of-pocket expenses of the Company in connection with the request as the Directors may think fit.

13. In the event that shares are held jointly by several persons, any request may be made by any one of the
joint holders and if so made shall be binding on all of the joint holders.

**TRANSFER OF SHARES**

14. (a) Shares are transferable by an instrument of transfer in the usual or common form or in a form designated
by the Designated Stock Exchange or any other form approved by the Board of Directors. subject to the approval of the Board or the written
consent of a Director authorized by the Board in writing to approve share transfers and the Board may, in its sole discretion, decline
to register any transfer of any share which is not fully paid up or on which the Company has a lien. Notwithstanding the foregoing, shares
may also be transferred in accordance with the applicable rules and regulations of the Designated Stock Exchange

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Directors may in their absolute discretion also decline to register any transfer of any share unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the instrument of transfer is lodged with the Company, accompanied by the certificate for the shares to
which it relates and such other evidence as the Board may reasonably require to show the right of the transferor to make the transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the instrument of transfer is in respect of only one class of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the instrument of transfer is properly stamped, if required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the case of a transfer to joint holders, the number of joint holders to whom the share is to be transferred
does not exceed four;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the shares conceded are free of any lien in favor of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a fee of such maximum sum as the Designated Stock Exchange may determine to be payable, or such lesser
sum as the Board may from time to time require, is paid to the Company in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Directors refuse to register a transfer they shall, within two months after the date on which the
instrument of transfer was lodged, send to each of the transferor and the transferee notice of such refusal.

15. The registration of transfers may, after compliance with any notice required in accordance with the rules
and regulations of the Designated Stock Exchange, be suspended and the register closed at such times and for such periods as the Board
may from time to time determine, provided, however, that the registration of transfers shall not be suspended nor the register closed
for more than 30 days in any year.

16. The instrument of transfer of any share shall be in writing and executed by or on behalf of the transferor
(and if the Directors so require, signed by the transferee). The transferor shall be deemed to remain a holder of the share until the
name of the transferee is entered in the Register of Members.

17. All instruments of transfer that shall be registered shall be retained by the Company.

**REDEMPTION AND PURCHASE OF OWN SHARES**

18. Subject to the provisions of the Companies Act, the Company may issue shares that are to be redeemed or
are liable to be redeemed at the option of the Member or the Company. The redemption of such shares shall be effected in such manner and
upon such other terms as has been approved by the Board of Directors.

19. Subject to the provisions of the Companies Act, the Company may purchase its own shares (including any
redeemable shares) in such manner and on such other terms as has been approved by the Board of Directors.

20. The Company may make a payment in respect of the redemption or purchase of its own shares in any manner permitted by the Companies
Act, including out of capital.

21. The Directors may accept the surrender for no consideration of any fully paid share.

**TREASURY SHARES**

22. The Directors may, prior to the purchase, redemption or surrender of any share, determine that such share
shall be held as a Treasury Share.

23. The Directors may determine to cancel a Treasury Share or transfer a Treasury Share on such terms as they
think proper (including, without limitation, for nil consideration).

**VARIATION OF RIGHTS ATTACHING TO SHARES**

24. If at any time the share capital of the Company is divided into different classes of shares, all or any
of the rights attached to any class (unless otherwise provided by the terms of issue of the shares of that class) may, whether or not
the Company is being wound up, be varied with the consent in writing of the holders of not less than two thirds of the issued shares of
that class, or with the approval of a resolution passed by a majority of not less than two thirds of the votes cast at a separate meeting
of the holders of the shares of that class.

25. The provisions of these Articles relating to general meetings shall apply to every such general meeting
of the holders of one class or series of shares except the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) separate general meetings of the holders of a class or series of shares may be called only by (i) the
Chairman of the Board, or (ii) a majority of the entire Board of Directors (unless otherwise specifically provided by the terms of
issue of the shares of such class or series). Nothing in this Article 25 or Article 24 shall be deemed to give any Member or Members the
right to call a class or series meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the necessary quorum shall be one or more persons holding or representing by proxy at least one-third
of the issued shares of the class or series and that any holder of shares of the class or series present in person or by proxy may demand
a poll.

26. The rights conferred upon the holders of the shares of any class or series shall not, unless otherwise
expressly provided by the terms of issue of the shares of that class or series, be deemed to be varied by the creation or issue of further
shares ranking in priority thereto or pari passu therewith.

**COMMISSION ON SALE OF SHARES**

27. The Company may in so far as the Statutes from time to time permit pay a commission to any person in consideration
of his subscribing or agreeing to subscribe whether absolutely or conditionally for any shares of the Company. Such commissions may be
satisfied by the payment of cash or the lodgement of fully or partly paid-up shares or partly in one way and partly in the other. The
Company may also on any issue of shares pay such brokerage as may be lawful.

**NON-RECOGNITION OF TRUSTS**

28. No person shall be recognised by the Company as holding any share upon any trust and the Company shall
not be bound by or be compelled in any way to recognise (even when having notice thereof) any equitable, contingent, future, or partial
interest in any share, or any interest in any fractional part of a share, or (except only as is otherwise provided by these Articles or
the Statutes) any other rights in respect of any share except an absolute right to the entirety thereof in the registered holder.

**LIEN ON SHARES**

29. The Company shall have a first and paramount lien and charge on all shares (whether fully paid-up or not)
registered in the name of a Member (whether solely or jointly with others) for all debts, liabilities or engagements to or with the Company
(whether presently payable or not) by such Member or his estate, either alone or jointly with any other person, whether a Member or not,
but the Directors may at any time declare any share to be wholly or in part exempt from the provisions of this Article. The registration
of a transfer of any such share shall operate as a waiver of the Company's lien (if any) thereon. The Company's lien (if any)
on a share shall extend to all dividends or other monies payable in respect thereof.

30. The Company may sell, in such manner as the Directors think fit, any shares on which the Company has a
lien, but no sale shall be made unless some sum in respect of which the lien exists is presently payable nor until the expiration of 14
calendar days after a notice in writing, stating and demanding payment of such part of the amount in respect of which the lien exists
as is presently payable, has been given to the registered holder for the time being of the share, or the persons entitled thereto by reason
of his death or bankruptcy.

31. For giving effect to any such sale the Directors may authorise some person to transfer the shares sold
to the purchaser thereof. The purchaser shall be registered as the holder of the shares comprised in any such transfer and he shall not
be bound to see to the application of the purchase money, nor shall his title to the shares be affected by any irregularity or invalidity
in the proceedings in reference to the sale.

32. The proceeds of the sale shall be received by the Company and applied in payment of such part of the amount
in respect of which the lien exists as is presently payable, and the residue shall (subject to a like lien for sums not presently payable
as existed upon the shares prior to the sale) be paid to the person entitled to the shares at the date of the sale.

**CALLS ON SHARES**

33. Subject to the terms of allotment, the Directors may from time to time make calls upon the Members in
respect of any money unpaid on their shares, and each Member shall (subject to receiving at least 14 calendar days notice specifying the
time or times of payment) pay to the Company at the time or times so specified the amount called on his shares. A call shall be deemed
to have been made at the time when the resolution of the Directors authorising such call was passed.

34. The joint holders of a share shall be jointly and severally liable to pay calls in respect thereof.

35. If a sum called in respect of a share is not paid before or on the day appointed for payment thereof,
the person from whom the sum is due shall pay interest upon the sum at the rate of eight percent per annum from the day appointed for
the payment thereof to the time of the actual payment, but the Directors shall be at liberty to waive payment of that interest wholly
or in part.

36. The provisions of these Articles as to the liability of joint holders and as to payment of interest shall
apply in the case of non-payment of any sum which, by the terms of issue of a share, becomes payable at a fixed time, whether on account
of the amount of the share, or by way of premium, as if the same had become payable by virtue of a call duly made and notified.

37. The Directors may make arrangements on the issue of shares for a difference between the Members, or the
particular shares, in the amount of calls to be paid and in the times of payment.

38. The Directors may, if they think fit, receive from any Member willing to advance the same all or any part
of the monies uncalled and unpaid upon any shares held by him, and upon all or any of the monies so advanced may (until the same would,
but for such advance, become presently payable) pay interest at such rate (not exceeding without the sanction of an Ordinary Resolution,
eight percent per annum) as may be agreed upon between the Member paying the sum in advance and the Directors. No such sum paid in advance
of calls shall entitle the Member paying such sum to any portion of a dividend declared in respect of any period prior to the date upon
which such sum would, but for such payment, become presently payable.

**FORFEITURE OF SHARES**

39. If a Member fails to pay any call or instalment of a call on the day appointed for payment thereof, the
Directors may, at any time thereafter during such time as any part of such call or instalment remains unpaid, serve a notice on him requiring
payment of such much of the call or instalment as is unpaid, together with any interest which may have accrued.

40. The notice shall name a further day (not earlier than the expiration of 14 calendar days from the date
of the notice) on or before which the payment required by the notice is to be made, and shall state that in the event of non-payment at
or before the time appointed the shares in respect of which the call was made will be liable to be forfeited.

41. If the requirements of any such notice as aforesaid are not complied with, any share in respect of which
the notice has been given may at any time thereafter, before the payment required by notice has been made, be forfeited by a resolution
of the Directors to that effect.

42. A forfeited share may be sold or otherwise disposed of on such terms and in such manner as the Directors
think fit, and at any time before a sale or disposition the forfeiture may be cancelled on such terms as the Directors think fit.

43. A person whose shares have been forfeited shall cease to be a Member in respect of the forfeited shares,
but shall, notwithstanding, remain liable to pay to the Company all monies which at the date of forfeiture were payable by him to the
Company in respect of the shares, but his liability shall cease if and when the Company receives payment in full of the fully paid up
amount of the shares.

44. A certificate in writing under the hand of a Director of the Company, which certifies that a share has
been forfeited on a date stated in the certificate, shall be conclusive evidence of the facts therein stated as against all persons claiming
to be entitled to the share. The Company may receive the consideration, if any, given for the share or any sale or disposition thereof
and may execute a transfer of the share in favour of the person to whom the share is sold or disposed of and he shall thereupon be registered
as the holder of the share, and shall not be bound to see to the application of the purchase money, if any, nor shall his title to the
share be affected by any irregularity or invalidity in the proceedings in reference to the forfeiture, sale or disposal of the share.

45. The provisions of these Articles as to forfeiture shall apply in the case of non-payment of any sum which
by the terms of issue of a share becomes due and payable, whether on account of the amount of the share, or by way of premium, as if the
same had been payable by virtue of a call duly made and notified.

**REGISTRATION OF EMPOWERING INSTRUMENTS**

46. The Company shall be entitled to charge a fee not exceeding one dollar (US$1.00) on the registration of
every probate, letters of administration, certificate of death or marriage, power of attorney, notice in lieu of distringas, or other
instrument.

**TRANSMISSION OF SHARES**

47. The legal personal representative of a deceased sole holder of a share shall be the only person recognised
by the Company as having any title to the share. In the case of a share registered in the name of two or more holders, the survivors or
survivor, or the legal personal representatives of the deceased survivor, shall be the only person recognised by the Company as having
any title to the share.

48. Any person becoming entitled to a share in consequence of the death or bankruptcy of a Member shall upon
such evidence being produced as may from time to time be properly required by the Directors, have the right either to be registered as
a Member in respect of the share or, instead of being registered himself, to make such transfer of the share as the deceased or bankrupt
person could have made. If the person so becoming entitled shall elect to be registered himself as holder he shall deliver or send to
the Company a notice in writing signed by him stating that he so elects.

49. A person becoming entitled to a share by reason of the death or bankruptcy of the holder shall be entitled
to the same dividends and other advantages to which he would be entitled if he were the registered holder of the share, except that he
shall not, before being registered as a Member in respect of the share, be entitled in respect of it to exercise any right conferred by
membership in relation to meetings of the Company, provided however, that the Directors may at any time give notice requiring any such
person to elect either to be registered himself or to transfer the share, and if the notice is not complied with within 90 calendar days,
the Directors may thereafter withhold payment of all dividends, bonuses or other monies payable in respect of the share until the requirements
of the notice have been complied with.

**ALTERATION OF CAPITAL**

50. The Company may by Ordinary Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase the share capital by such sum, to be divided into shares of such classes and amount, as the resolution
shall prescribe;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of its share capital into shares of larger amount than its existing
shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) sub-divide its existing shares or any of them into shares of a smaller amount provided that in the subdivision
the proportion between the amount paid and the amount, if any, unpaid on each reduced share shall be the same as it was in case of the
share from which the reduced share is derived;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) cancel any shares which, at the date of the passing of the resolution, have not been taken or agreed to
be taken by any person and diminish the amount of its share capital by the amount of the shares so cancelled.

51. Subject to the provisions of the Statutes and these Articles as regards to the matters to be dealt with
by Ordinary Resolution, the Company may by Special Resolution reduce its share capital and any capital redemption reserve in any manner
authorized by law.

52. All new shares created hereunder shall be subject to the same provisions with reference to the payment
of calls, liens, transfer, transmission, forfeiture and otherwise as the shares in the original share capital.

**CLOSING REGISTER OF MEMBERS OR FIXING RECORD DATE**

53. For the purpose of determining those Members that are entitled to receive notice of, attend or vote at
any meeting of Members or any adjournment thereof, or those Members that are entitled to receive payment of any dividend, or in order
to make a determination as to who is a Member for any other purpose, the Directors may provide that the Register of Members shall be closed
for transfers for a stated period but not to exceed in any case 30 calendar days. If the Register of Members shall be so closed for the
purpose of determining those Members that are entitled to receive notice of, attend or vote at a meeting of Members such register shall
be so closed for at least 10 calendar days immediately preceding such meeting and the record date for such determination shall be the
date of the closure of the Register of Members.

54. In lieu of or apart from closing the Register of Members, the Directors may fix in advance a date as the
record date for any such determination of those Members that are entitled to receive notice of, attend or vote at a meeting of the Members
and for the purpose of determining those Members that are entitled to receive payment of any dividend, the Directors may, at or within
90 calendar days prior to the date of declaration of such dividend fix a subsequent date as the record date of such determination.

55. If the Register of Members is not so closed and no record date is fixed for the determination of those
Members entitled to receive notice of, attend or vote at a meeting of Members or those Members that are entitled to receive payment of
a dividend, the date on which notice of the meeting is posted or the date on which the resolution of the Directors declaring such dividend
is adopted, as the case may be, shall be the record date for such determination of Members. When a determination of those Members that
are entitled to receive notice of, attend or vote at a meeting of Members has been made as provided in this section, such determination
shall apply to any adjournment thereof.

**GENERAL MEETINGS**

56. All general meetings of the Company other than annual general meetings shall be called extraordinary general
meetings.

57. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may hold an annual general meeting and shall specify the meeting as such in the notices calling
it. The annual general meeting shall be held at such time and place as the Directors shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At these meetings the report of the Directors (if any) shall be presented.

58. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Chairman of the Board of Directors or a majority of the Directors may call general meetings, and they
shall on a Members requisition forthwith proceed to convene an extraordinary general meeting of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Members requisition is a requisition of one or more Members holding at the date of deposit of the requisition
not less than one-third of the share capital of the Company as at that date carries the right of voting at general meetings of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The requisition must state the objects of the meeting and must be signed by the requisitionists and deposited
at the principal place of business of the Company (with a copy forwarded to the registered office), and may consist of several documents
in like form each signed by one or more requisitionists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Directors do not within 21 calendar days from the date of the deposit of the requisition duly proceed
to convene a general meeting to be held within a further 21 calendar days, the requisitionists, or any of them representing more than
one half of the total voting rights of all of them, may themselves convene a general meeting, but any meeting so convened shall not be
held after the expiration of three months after the expiration of the second said 21 calendar days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) A general meeting convened as aforesaid by requisitionists shall be convened in the same manner as nearly
as possible as that in which general meetings are to be convened by Directors.

**NOTICE OF GENERAL MEETINGS**

59. At least ten calendar days' notice shall be given for any general meeting. Every notice shall be
exclusive of the day on which it is given or deemed to be given and of the day for which it is given and shall specify the place, the
day and the hour of the meeting and the general nature of the business and shall be given in the manner hereinafter mentioned or in such
other manner if any as may be prescribed by the Company, provided that a general meeting of the Company shall, whether or not the notice
specified in this regulation has been given and whether or not the provisions of these Articles regarding general meetings have been complied
with, be deemed to have been duly convened if it is so agreed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of an annual general meeting by all the Members (or their proxies) entitled to attend and
vote thereat; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of an extraordinary general meeting by a majority in number of the Members (or their proxies)
having a right to attend and vote at the meeting, being a majority together holding not less than ninety five percent in par value of
the shares giving that right.

60. The accidental omission to give notice of a meeting to or the non-receipt of a notice of a meeting by
any Member shall not invalidate the proceedings at any meeting.

**PROCEEDINGS AT GENERAL MEETINGS**

61. No business shall be transacted at any general meeting unless a quorum of Members is present at the time
when the meeting proceeds to business. Two or more Members holding not less than an aggregate of one-third of all voting share capital
of the Company in issue present in person or by proxy and entitled to vote shall be a quorum for all purposes.

62. If provided for by the Company, a person may participate at a general meeting by conference telephone
or other communications equipment by means of which all the persons participating in the meeting can communicate with each other. Participation
by a person in a general meeting in this manner is treated as presence in person at that meeting.

63. If within half an hour from the time appointed for the meeting a quorum is not present, the meeting, if
convened upon the requisition of Members, shall be dissolved. In any other case it shall stand adjourned to the same day in the next week,
at the same time and place, and if at the adjourned meeting a quorum is not present within half an hour from the time appointed for the
meeting, the meeting shall be dissolved.

64. The Chairman of the Board of Directors shall preside as chairman at every general meeting of the Company.

65. If at any meeting the Chairman of the Board of Directors is not present within fifteen minutes after the
time appointed for holding the meeting or is unwilling to act as chairman, the Directors present shall elect one of their members to be
chairman of the meeting, or, if no Director is so elected and willing to be chairman of the meeting, the Members present shall choose
a chairman of the meeting.

66. The Chairman may with the consent of any meeting at which a quorum is present (and shall if so directed
by the meeting) adjourn a meeting from time to time and from place to place, but no business shall be transacted at any adjourned meeting
other than the business left unfinished at the meeting from which the adjournment took place. When a meeting is adjourned for 10 calendar
days or more, not less than 7 Business Days' notice of the adjourned meeting shall be given as in the case of an original meeting.
Save as aforesaid it shall not be necessary to give any notice of an adjournment or of the business to be transacted at an adjourned meeting.

67. At any general meeting a resolution put to the vote of the meeting shall be decided by way of a poll save that in the case of a physical meeting, the chairman of the meeting may decide that a vote be on a show of hands, unless a poll is demanded by;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at least three Members present in person or by proxy (or in the case of a Member being a corporation)
by its duly authorised representative for the time being entitled to vote at the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Members present in person or by proxy (or in the case of a Member being a corporation) by its duly authorised
representative for the time being entitled to vote at the meeting representing not less than one-tenth of the total voting rights of all
of the Members having the right to vote at the meeting,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Members present in person or by proxy (or in the case of a Member being a corporation) by its duly authorised
representative and holding shares conferring a right to vote at the meeting being shares for the time being entitled to vote at the meeting
representing not less than one-tenth of the total voting rights of all of the Members having the right to vote at the meeting being shares
on which an aggregate sum has been paid up equal to not less than one-tenth of the total sum paid up on all shares conferring that right,

and unless a poll is so demanded, a declaration by the chairman that a resolution has, on a show of hands, been carried, or carried unanimously, or by a particular majority, or lost, and an entry to that effect in the book of the proceedings of the Company, shall be conclusive evidence of the fact, without proof of the number or proportion of the votes recorded in favour of, or against, that resolution.

68. If a poll is duly demanded it shall be taken in such manner as the chairman directs, and the result of
the poll shall be deemed to be the resolution of the meeting at which the poll was demanded. The demand for a poll may be withdrawn.

69. In the case of an equality of votes, whether on a show of hands or on a poll, the chairman of the meeting
at which the show of hands takes place or at which the poll is demanded, shall be entitled to a second or casting vote.

70. A poll demanded on the election of a chairman or on a question of adjournment shall be taken forthwith.
A poll demanded on any other question shall be taken at such time as the chairman of the meeting directs.

**VOTES OF MEMBERS**

71. Subject to any rights and restrictions for the time being attached to any class or classes of shares,
every Member present in person and every person representing a Member by proxy at a general meeting of the Company shall have one vote
for each share registered in his name in the Register of Members.

72. In the case of joint holders the vote of the senior who tenders a vote whether in person or by proxy shall
be accepted to the exclusion of the votes of the joint holders and for this purpose seniority shall be determined by the order in which
the names stand in the Register of Members.

73. A Member of unsound mind, or in respect of whom an order has been made by any court having jurisdiction
in lunacy, may vote, whether on a show of hands or on a poll, by his committee, or other person in the nature of a committee appointed
by that court, and any such committee or other person, may on a poll, vote by proxy.

74. No Member shall be entitled to vote at any general meeting unless all calls or other sums presently payable
by him in respect of shares in the Company have been paid.

75. On a poll, votes may be given either personally or by proxy.

76. The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney
duly authorized in writing or, if the appointor is a corporation, either under seal or under the hand of an officer or attorney duly authorized.
A proxy need not be a Member of the Company.

77. An instrument appointing a proxy may be in any usual or common form or such other form as the Directors
may approve. The instrument appointing a proxy shall be deemed to confer authority to demand or join in demanding a poll.

78. The instrument appointing a proxy shall be deposited at the registered office or at such other place as
is specified for that purpose in the notice convening the meeting, or in any instrument of proxy sent out by the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not less than 48 hours before the time for holding the meeting or adjourned meeting at which the person
named in the instrument proposes to vote; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of a poll taken more than 48 hours after it is demanded, be deposited as aforesaid after the
poll has been demanded and not less than 24 hours before the time appointed for the taking of the poll; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) where the poll is not taken forthwith but is taken not more than 48 hours after it was demanded, be delivered
at the meeting at which the poll was demanded to the chairman or to the secretary or to any Director;

provided that the Directors may in the notice convening the meeting, or in an instrument of proxy sent out by the Company, direct that the instrument appointing a proxy may be deposited (no later than the time for holding the meeting or adjourned meeting) at the registered office or at such other place as is specified for that purpose in the notice convening the meeting, or in any instrument of proxy sent out by the Company. The chairman may in any event at his discretion direct that an instrument of proxy shall be deemed to have been duly deposited. An instrument of proxy that is not deposited in the manner permitted shall be invalid.

79. Votes given in accordance with the terms of an instrument of proxy shall be valid notwithstanding the
previous death or insanity of the principal or revocation of the proxy or of the authority under which the proxy was executed, or the
transfer of the share in respect of which the proxy is given unless notice in writing of such death, insanity, revocation or transfer
was received by the Company before the commencement of the general meeting, or adjourned meeting at which it is sought to use the proxy.

**CORPORATIONS ACTING BY REPRESENTATIVES AT MEETING**

80. Any corporation or other non-natural person which is a Member may in accordance with its constitutional
documents, or in the absence of such provision by resolution of its directors or other governing body, authorise such person as it thinks
fit to act as its representative at any meeting of the Company or of any class of Members, and the person so authorised shall be entitled
to exercise the same powers on behalf of the corporation which he represents as the corporation could exercise if it were an individual
Member.

**DEPOSITARY AND CLEARING HOUSES**

81. If a recognised clearing house (or its nominee(s)) or depositary (or its nominee(s)) is a Member of the
Company it may, by resolution of its directors or other governing body or by power of attorney, authorise such Person(s) as it thinks
fit to act as its representative(s) at any general meeting of the Company or of any Class of Shareholders of the Company provided that,
if more than one Person is so authorised, the authorisation shall specify the number and Class of Shares in respect of which each such
Person is so authorised. A Person so authorised pursuant to this Article shall be entitled to exercise the same powers on behalf of the
recognised clearing house (or its nominee(s)) or depositary (or its nominee(s)) which he represents as that recognised clearing house
(or its nominee(s)) or depositary (or its nominee(s)) could exercise if it were an individual Member holding the number and Class of Shares
specified in such authorisation, including the right to vote individually on a show of hands.

**SHARES THAT MAY NOT BE VOTED**

82. Shares in the Company that are beneficially owned by the Company shall not be voted, directly or indirectly,
at any meeting and shall not be counted in determining the total number of outstanding shares at any given time.

**CLEARING HOUSES**

83. If a clearing house (or its nominee) is a Member of the Company it may, by resolution of its directors
or other governing body or by power of attorney, authorise such person or persons as it thinks fit to act as its representative or representatives
at any general meeting of the Company or at any general meeting of any class of Members of the Company provided that, if more than one
person is so authorized, the authorisation shall specify the number and class of shares in respect of which each such person is so authorized.
A person so authorized pursuant to this provision shall be entitled to exercise the same powers on behalf of the clearing house (or its
nominee) which he represents as that clearing house (or its nominee) could exercise if it were an individual Member of the Company holding
the number and class of shares specified in such authorisation.

**DIRECTORS**

84. (a) Unless otherwise determined by the Company in general meeting, the number of Directors shall not
be less than one or more than ten Directors. The Directors shall be elected or appointed in the first place by the subscribers to the
Memorandum of Association or by a majority of them and thereafter by the Members at general meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Director shall hold office until the expiration of his term and until his successor shall have been
elected and qualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Board of Directors shall have a chairman (the "**Chairman**") elected and appointed
by a majority of the Directors then in office. The Directors may also elect a Co-Chairman or a Vice-Chairman of the Board of Directors
(the "**Co-Chairman** "). The Chairman shall preside as chairman at every meeting of the Board of Directors. To the extent
the Chairman is not present at a meeting of the Board of Directors, the Co-Chairman, or in his absence, the attending Directors may choose
one Director to be the chairman of the meeting. The Chairman's voting right as to the matters to be decided by the Board of Directors
shall be the same as other Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company may by Ordinary Resolution elect any person to be a Director either to fill a casual vacancy
on the Board or as an addition to the existing Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Directors by the affirmative vote of a simple majority of the remaining Directors present and voting
at a Board meeting, or the sole remaining Director, shall have the power from time to time and at any time to appoint any person as a
Director to fill a casual vacancy on the Board or as an addition to the existing Board, subject to the Company's compliance with
director nomination procedures required under applicable corporate governance rules of the Designated Stock Exchange, as long as the Company's
securities are traded on the Designated Stock Exchange.

85. Subject to Article 83, a Director may be removed from office by Ordinary Resolution or by the Board at
any time before the expiration of his term.

be filled by the election or appointment by Ordinary Resolution at the meeting at which such Director is removed or by the affirmative
vote of a simple majority of the remaining Directors present and voting at a Board meeting.

87. The Board may, from time to time, and except as required by applicable law or the listing rules of the
Designated Stock Exchange where the Company's securities are traded, adopt, institute, amend, modify or revoke the corporate governance
policies or initiatives, which shall be intended to set forth the policies of the Company and the Board on various corporate governance
related matters as the Board shall determine by resolution from time to time.

88. A Director shall not be required to hold any shares in the Company by way of qualification. A Director
who is not a Member of the Company shall nevertheless be entitled to receive notice of and to attend and speak at general meetings of
the Company and all classes of shares of the Company.

**DIRECTORS' FEES AND EXPENSES**

89. The Directors may receive such remuneration as the Board may from time to time determine. The Directors
may be entitled to be repaid all travelling, hotel and incidental expenses reasonably incurred or expected to be incurred by him in attending
meetings of the Board or committees of the Board or general meetings or separate meetings of any class of shares or of debentures of the
Company or otherwise in connection with the discharge of his duties as a Director.

90. Any Director who, by request, goes or resides abroad for any purpose of the Company or who performs services
which in the opinion of the Board go beyond the ordinary duties of a Director may be paid such extra remuneration (whether by way of salary,
commission, participation in profits or otherwise) as the Board may determine and such extra remuneration shall be in addition to or in
substitution for any ordinary remuneration provided for by or pursuant to any other Article.

**ALTERNATE DIRECTOR**

91. Any Director may in writing appoint another person to be his alternate to act in his place at any meeting
of the Directors at which he is unable to be present. Every such alternate shall be entitled to notice of meetings of the Directors and
to attend and vote thereat as a Director when the person appointing him is not personally present and, where he is a Director, to have
a separate vote on behalf of the Director he is representing in addition to his own vote. A Director may at any time in writing revoke
the appointment of an alternate appointed by him. Such alternate shall be deemed for all purposes to be a Director and shall not be deemed
to be the agent of the Director appointing him. An alternate Director shall cease to be an alternate Director if his appointor ceases
to be a Director.

92. Any Director may appoint any person, whether or not a Director, to be the proxy of that Director to attend
and vote on his behalf, in accordance with instructions given by that Director, or in the absence of such instructions at the discretion
of the proxy, at a meeting or meetings of the Directors which that Director is unable to attend personally. The instrument appointing
the proxy shall be in writing under the hand of the appointing Director and shall be in any usual or common form or such other form as
the Directors may approve, and must be lodged with the chairman of the meeting at which such proxy is to be used, or first used, prior
to the commencement of the meeting.

**POWERS AND DUTIES OF DIRECTORS**

93. Subject to the provisions of the Companies Act, these Articles and to any resolutions made in a general
meeting, the business of the Company shall be managed by the Directors, who may pay all expenses incurred in setting up and registering
the Company and may exercise all powers of the Company. No resolution made by the Company in a general meeting shall invalidate any prior
act of the Directors that would have been valid if that resolution had not been made.

94. Subject to these Articles, the Directors may from time to time appoint any person, whether or not a Director
of the Company, to hold such office in the Company as the Directors may think necessary for the administration of the Company, including
without prejudice to the foregoing generality, the office of the Chief Executive Officer, Chief Operating Officer, Chief Technology Officer,
Chief Financial Officer, one or more Vice Presidents, Manager or Controller, and for such term and at such remuneration (whether by way
of salary or commission or participation in profits or partly in one way and partly in another), and with such powers and duties as the
Directors may think fit. The Directors may also appoint one or more of their body (but not an alternate Director) to the office of Managing
Director upon like terms, but any such appointment shall ipso facto determine if any Managing Director ceases from any cause to be a Director,
or if the Company by Ordinary Resolution resolves that his tenure of office be terminated.

95. The Directors may delegate any of their powers to committees consisting of such member or members of their
body as they think fit; any committee so formed shall in the exercise of the powers so delegated conform to any regulations that may be
imposed on it by the Directors.

96. The Directors may from time to time and at any time by power of attorney appoint any company, firm or
person or body of persons, whether nominated directly or indirectly by the Directors, to be the attorney or attorneys of the Company for
such purposes and with such powers, authorities and discretion (not exceeding those vested in or exercisable by the Directors under these
Articles) and for such period and subject to such conditions as they may think fit, and any such power of attorney may contain such provisions
for the protection and convenience of persons dealing with any such attorney as the Directors may think fit, and may also authorise any
such attorney to delegate all or any of the powers, authorities and discretion vested in him.

97. The Directors may from time to time provide for the management of the affairs of the Company in such manner
as they shall think fit and the provisions contained in the following paragraphs shall be without prejudice to the general powers conferred
by this paragraph.

98. The Directors from time to time and at any time may establish any committees, local boards or agencies
for managing any of the affairs of the Company and may appoint any persons to be members of such committees or local boards and may appoint
any managers or agents of the Company and may fix the remuneration of any of the aforesaid.

99. The Directors from time to time and at any time may delegate to any such committee, local board, manager
or agent any of the powers, authorities and discretions for the time being vested in the Directors and may authorise the members for the
time being of any such local board, or any of them to fill up any vacancies therein and to act notwithstanding vacancies and any such
appointment or delegation may be made on such terms and subject to such conditions as the Directors may think fit and the Directors may
at any time remove any person so appointed and may annul or vary any such delegation, but no person dealing in good faith and without
notice of any such annulment or variation shall be affected thereby.

100. Any such delegates as aforesaid may be authorised by the Directors to sub-delegate all or any of the powers,
authorities, and discretions for the time being vested to them.

101. The Directors may exercise all the powers of the Company to borrow money and to mortgage or charge its
undertaking, property and uncalled capital or any part thereof, to issue debentures, debenture stock and other securities whenever money
is borrowed or as security for any debt, liability or obligation of the Company or of any third party.

**DISQUALIFICATION OF DIRECTORS**

102. Notwithstanding anything in these Articles, the office of Director shall be vacated, if the Director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) dies, becomes bankrupt or makes any arrangement or composition with his creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is found to be or becomes of unsound mind;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) resigns his office by notice in writing to the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) shall be removed from office pursuant to Article 84 or the Statutes.

**PROCEEDINGS OF DIRECTORS**

103. The Directors may meet together (whether within or outside the Cayman Islands) for the dispatch of business,
adjourn, and otherwise regulate their meetings and proceedings as they think fit.

104. A Board meeting may be called by a Director by giving notice in writing to the Board specifying a date,
time and agenda for such meeting. The Board shall upon receipt of such notice give a copy of such notice of such meeting to all Directors
and their respective alternates (if any).

105. (a) At least one (1) Business Day notice shall be given to all Directors and their respective alternates
(if any) for a Board meeting, provided that such notice period may be reduced or waived with the consent of all the Directors or their
respective alternates (if any).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) An agenda identifying in reasonable detail the issues to be considered by the Directors at any such meeting
and copies (in printed or electronic form) of any relevant papers to be discussed at the meeting together with all relevant information
shall be provided to and received by all Directors and their alternates (if any) at least one (1) Business Day prior to the date for such
meeting. The agenda for each meeting shall include any matter submitted to the Company by any Director at least one (1) Business Day prior
to the date for such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Unless approved by all Directors (whether or not present or represented at such meeting), matters not
set out in the agenda need not be considered at a Board meeting.

106. A Director or Directors may participate in any meeting of the Board, or of any committee appointed by
the Board of which such Director or Directors are members, by means of conference telephone, video conference or similar communication
equipment by way of which all persons participating in such meeting can hear each other and such participation shall be deemed to constitute
presence in person at the meeting.

107. The quorum necessary for the transaction of the business of the Directors may be fixed by the Directors
and unless so fixed shall be a majority of the Directors then in office, provided that a Director and his appointed alternate Director
shall be considered only one person for this purpose **.** 

108. If a quorum is not present at a Board meeting within thirty (30) minutes following the time appointed
for such Board meeting, the relevant meeting shall be adjourned for a period of at least three (3) Business Days and the presence of any
three (3) Directors shall constitute a quorum at such adjourned meeting. A meeting of the Directors at which a quorum is present when
the meeting proceeds to business shall be competent to exercise all powers and discretions for the time being exercisable by the Directors.

109. Questions arising at any meeting of the Directors shall be decided by a majority of votes and each Director
shall be entitled to one (1) vote in deciding matters deliberated at any meeting of the Directors.

110. In case of equality of votes, the Chairman shall have a second or casting vote.

111. A Director who is in any way, whether directly or indirectly, interested in a contract or proposed contract
with the Company shall declare the nature of his interest at a meeting of the Directors. A general notice given to the Directors by any
Director to the effect that he is a member of any specified company or firm and is to be regarded as interested in any contract which
may thereafter be made with that company or firm shall be deemed a sufficient declaration of interest in regard to any contract so made.
A Director may vote in respect of any contract or proposed contract or arrangement notwithstanding that he may be interested therein and
if he does so his vote shall be counted and he may be counted in the quorum at any meeting of the Directors at which any such contract
or proposed contract or arrangement shall come before the meeting for consideration.

112. A Director may hold any other office or place of profit under the Company (other than the office of auditor)
in conjunction with his office of Director for such period and on such terms (as to remuneration and otherwise) as the Directors may determine
and no Director or intending Director shall be disqualified by his office from contracting with the Company either with regard to his
tenure of any such other office or place of profit or as vendor, purchaser or otherwise, nor shall any such contract or arrangement entered
into by or on behalf of the Company in which any Director is in any way interested, be liable to be avoided, nor shall any Director so
contracting or being so interested be liable to account to the Company for any profit realised by any such contract or arrangement by
reason of such Director holding that office or of the fiduciary relation thereby established. A Director, notwithstanding his interest,
may be counted in the quorum present at any meeting whereat he or any other Director is appointed to hold any such office or place of
profit under the Company or whereat the terms of any such appointment are arranged and he may vote on any such appointment or arrangement.

113. Any Director may act by himself or his firm in a professional capacity for the Company, and he or his
firm shall be entitled to remuneration for professional services as if he were not a Director; provided that nothing herein contained
shall authorise a Director or his firm to act as auditor to the Company.

114. The Directors shall cause minutes to be made in books or loose-leaf folders provided for the purpose of
recording:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all appointments of officers made by the Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the names of the Directors present at each meeting of the Directors and of any committee of the Directors;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all resolutions and proceedings at all meetings of the Company, and of the Directors and of committees
of Directors.

115. When the chairman of a meeting of the Directors signs the minutes of such meeting, the same shall be deemed
to have been duly held notwithstanding that all the Directors have not actually come together or that there may have been a technical
defect in the proceedings.

116. A resolution signed by all the Directors shall be as valid and effectual as if it had been passed at a
meeting of the Directors duly called and constituted and when signed, a resolution may consist of several documents each signed by one
or more of the Directors.

117. The continuing Directors may act, notwithstanding any vacancy in their body, but if their number is reduced
below the number fixed pursuant to these Articles as the necessary quorum of Directors, then the continuing Directors may act only to
increase the number or to summon a general meeting of the Company, but for no other purpose.

118. A committee appointed by the Directors may elect a chairman of its meetings. If no such chairman is elected,
or if at any meeting the chairman is not present within five minutes after the time appointed for holding the same, the members present
may choose one of their number to be chairman of the meeting.

119. A committee appointed by the Directors may meet and adjourn as it thinks proper. Questions arising at
any meeting shall be determined by a majority of votes of the committee members present and in case of an equality of votes the chairman
shall have a second or casting vote.

120. All acts done by any meeting of the Directors or of a committee of Directors, or by any person acting
as a Director, shall notwithstanding that it be afterwards discovered that there was some defect in the appointment of any such Director
or person acting as aforesaid, or that they or any of them were disqualified, be as valid as if every such person had been duly appointed
and was qualified to be a Director.

**PRESUMPTION OF ASSENT**

121. A Director who is present at a meeting of the Board at which action on any Company matter is taken shall
be presumed to have assented to the action taken unless his dissent shall be entered in the minutes of the meeting or unless he shall
file his written dissent from such action with the person acting as the chairman or secretary of the meeting before the adjournment thereof
or shall forward such dissent by registered post to such person immediately after the adjournment of the meeting. Such right to dissent
shall not apply to a Director who voted in favour of such action.

**DIRECTORS' INTERESTS**

122. (a) A Director or alternate Director may hold any other office or place of profit under the Company
(other than the office of Auditor) in conjunction with his office of Director for such period and on such terms as to remuneration and
otherwise as the Directors may determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A Director or alternate Director may act by himself or by, through or on behalf of his firm in a professional
capacity for the Company and he or his firm shall be entitled to remuneration for professional services as if he were not a Director or
alternate Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A Director or alternate Director may be or become a director or other officer of or otherwise interested
in any company promoted by the Company or in which the Company may be interested as a shareholder, a contracting party or otherwise, and
no such Director or alternate Director shall be accountable to the Company for any remuneration or other benefits received by him as a
director or officer of, or from his interest in, such other company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No person shall be disqualified from the office of Director or alternate Director or prevented by such
office from contracting with the Company, either as vendor, purchaser or otherwise, nor shall any such contract or any contract or transaction
entered into by or on behalf of the Company in which any Director or alternate Director shall be in any way interested be or be liable
to be avoided, nor shall any Director or alternate Director so contracting or being so interested be liable to account to the Company
for any profit realised by or arising in connection with any such contract or transaction by reason of such Director or alternate Director
holding office or of the fiduciary relationship thereby established. A Director (or his alternate Director in his absence) shall be at
liberty to vote in respect of any contract or transaction in which he is interested provided that the nature of the interest of any Director
or alternate Director in any such contract or transaction shall be disclosed by him at or prior to its consideration and any vote thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) A general notice that a Director or alternate Director is a shareholder, director, officer or employee
of any specified firm or company and is to be regarded as interested in any transaction with such firm or company shall be sufficient
disclosure for the purposes of voting on a resolution in respect of a contract or transaction in which he has an interest, and after such
general notice it shall not be necessary to give special notice relating to any particular transaction.

**DIVIDENDS, DISTRIBUTIONS AND RESERVE**

123. Subject to any rights and restrictions for the time being attached to any class or classes of shares and
these Articles, the Directors may from time to time declare dividends (including interim dividends) and other distributions on shares
in issue and authorise payment of the same out of the funds of the Company lawfully available therefor.

124. Subject to any rights and restrictions for the time being attached to any class or classes of shares and
these Articles, the Company by Ordinary Resolution may declare dividends, but no dividend shall exceed the amount recommended by the Directors.

125. The Directors may, before recommending or declaring any dividend, set aside out of the funds legally available
for distribution such sums as they think proper as a reserve or reserves which shall, at the discretion of the Directors, be applicable
for meeting contingencies, or for equalising dividends or for any other purpose to which those funds may be properly applied and pending
such application may, at the like discretion, either be employed in the business of the Company or be invested in such investments (other
than shares of the Company) as the Directors may from time to time think fit.

126. Any dividend may be paid by cheque or wire transfer to the registered address of the Member or person
entitled thereto, or in the case of joint holders, to any one of such joint holders at his registered address or to such person and such
address as the Member or person entitled, or such joint holders as the case may be, may direct. Every such cheque shall be made payable
to the order of the person to whom it is sent or to the order of such other person as the Member or person entitled, or such joint holders
as the case may be, may direct.

127. The Directors when paying dividends to the Members in accordance with the foregoing provisions may make
such payment either in cash or in specie.

128. No dividend shall be paid otherwise than out of profits or, subject to the restrictions of the Companies
Act, the share premium account.

129. Subject to the rights of persons, if any, entitled to shares with special rights as to dividends, all
dividends shall be declared and paid according to the amounts paid or credited as fully paid on the shares, but if and so long as nothing
is paid up on any of the shares in the Company dividends may be declared and paid according to the amounts of the shares. No amount paid
on a share in advance of calls shall, while carrying interest, be treated for the purposes of this Article as paid on the share.

130. If several persons are registered as joint holders of any share, any of them may give effectual receipts
for any dividend or other monies payable on or in respect of the share.

131. No dividend shall bear interest against the Company.

132. Any dividend or other distribution which cannot be paid to a Member and/or which remains unclaimed after
six months from the date on which such dividend or other distribution becomes payable may, in the discretion of the Directors, be paid
into a separate account in the Company's name, provided that the Company shall not be constituted as a trustee in respect of that
account and the dividend or other distribution shall remain as a debt due to the Member. Any dividend or other distribution which remains
unclaimed after a period of six years from the date on which such dividend or other distribution becomes payable shall be forfeited and
shall revert to the Company.

**CAPITALISATION**

133. The Directors may at any time capitalise any sum standing to the credit of any of the Company's
reserve accounts or funds (including the share premium account and capital redemption reserve fund) or any sum standing to the credit
of the profit and loss account or otherwise available for distribution; appropriate such sum to Members in the proportions in which such
sum would have been divisible amongst such Members had the same been a distribution of profits by way of dividend or other distribution;
and apply such sum on their behalf in paying up in full unissued Shares for allotment and distribution credited as fully paid-up to and
amongst them in the proportion aforesaid. In such event the Directors shall do all acts and things required to give effect to such capitalisation,
with full power given to the Directors to make such provisions as they think fit in the case of Shares becoming distributable in fractions
(including provisions whereby the benefit of fractional entitlements accrue to the Company rather than to the Members concerned). The
Directors may authorise any person to enter on behalf of all of the Members interested into an agreement with the Company providing for
such capitalisation and matters incidental or relating thereto and any agreement made under such authority shall be effective and binding
on all such Members and the Company.

**BOOK OF ACCOUNTS**

134. The Directors shall cause proper books of account (including, where applicable, material underlying documentation
including contracts and invoices) to be kept with respect to all sums of money received and expended by the Company and the matters in
respect of which the receipt or expenditure takes place, all sales and purchases of goods by the Company and the assets and liabilities
of the Company. Such books of account must be retained for a minimum period of five years from the date on which they are prepared. Proper
books shall not be deemed to be kept if there are not kept such books of account as are necessary to give a true and fair view of the
state of the Company's affairs and to explain its transactions.

135. The Directors shall determine whether and to what extent and at what times and places and under what conditions
or regulations the accounts and books of the Company or any of them shall be open to the inspection of Members not being Directors without
charge and no Member (not being a Director) shall have any right of inspecting any account or book or document of the Company except as
conferred by Statutes or authorised by the Directors or by the Company in general meeting.

136. The Directors may cause to be prepared and to be laid before the Company in general meeting profit and
loss accounts, balance sheets, group accounts (if any) and such other reports and accounts as may be required by law.

137. Subject to the requirements of applicable law and the listing rules of the Designated Stock Exchange,
the accounts relating to the Company's affairs shall be audited in such manner and with such financial year end as may be determined
from time to time by the Company by Ordinary Resolution or failing any such determination by the Directors or failing any determination
as aforesaid shall not be audited.

**ANNUAL RETURNS AND FILINGS**

138. The Board shall make the requisite annual returns and any other requisite filings in accordance with the
Companies Act.

**AUDIT**

139. The Directors may appoint an Auditor of the Company who shall hold office until removed from office by
a resolution of the Directors and may fix his or their remuneration.

140. Every Auditor of the Company shall have a right of access at all times to the books and accounts and vouchers
of the Company and shall be entitled to require from the Directors and officers of the Company such information and explanation as may
be necessary for the performance of the duties of the auditors.

141. Auditors shall, if so required by the Directors, make a report on the accounts of the Company during their
tenure of office at the next annual general meeting following their appointment in the case of a company which is registered with the
Registrar of Companies as an ordinary company, and at the next special meeting following their appointment in the case of a company which
is registered with the Registrar of Companies as an exempted company, and at any time during their term of office, upon request of the
Directors at any general meeting of the Members.

**THE SEAL**

142. The Seal of the Company shall not be affixed to any instrument except by the authority of a resolution
of the Board of Directors provided always that such authority may be given prior to or after the affixing of the Seal and if given after
may be in general form confirming a number of affixings of the Seal. The Seal shall be affixed in the presence of any one or more persons
as the Directors may appoint for the purpose and every person as aforesaid shall sign every instrument to which the Seal of the Company
is so affixed in their presence.

143. The Company may maintain a facsimile of its Seal in such countries or places as the Directors may appoint
and such facsimile Seal shall not be affixed to any instrument except by the authority of a resolution of the Board provided always that
such authority may be given prior to or after the affixing of such facsimile Seal and if given after may be in general form confirming
a number of affixings of such facsimile Seal. The facsimile Seal shall be affixed in the presence of such person or persons as the Directors
shall for this purpose appoint, and such person or persons as aforesaid shall sign every instrument to which the facsimile Seal of the
Company is so affixed in their presence .

144. Notwithstanding the foregoing, a Director shall have the authority to affix the Seal, or the facsimile
Seal, to any instrument for the purposes of attesting authenticity of the matter contained therein but which does not create any obligation
binding on the Company.

**OFFICERS**

145. Subject to Article 91, the Company may have a Chief Executive Officer, Chief Operating Officer, Chief
Technology Officer, Chief Financial Officer, one or more Vice Presidents, Manager or Controller, appointed by the Directors. The Directors
may also from time to time appoint such other officers as they consider necessary, all for such terms, at such remuneration and to perform
such duties, and subject to such provisions as to disqualification and removal as the Directors from time to time subscribe.

**CAPITALISATION OF PROFITS**

146. Subject to the Companies Act and these Articles, the Board may, with the authority of an Ordinary Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) resolve to capitalise an amount standing to the credit of reserves (including a share premium account,
capital redemption reserve and profit and loss account), whether or not available for distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) appropriate the sum resolved to be capitalised to the Members in proportion to the nominal amount of shares
(whether or not fully paid) held by them respectively and apply that sum on their behalf in or towards:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) paying up the amounts (if any) for the time being unpaid on shares held by them respectively; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) paying up in full unissued shares or debentures of a nominal amount equal to that sum,

and allot the shares or debentures, credited as fully paid, to the Members (or as they may direct) in those proportions, or partly in one way and partly in the other, but the share premium account, the capital redemption reserve and profits which are not available for distribution may, for the purposes of this Article, only be applied in paying up unissued shares to be allotted to Members credited as fully paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) make any arrangements it thinks fit to resolve a difficulty arising in the distribution of a capitalised
reserve and in particular, without limitation, where shares or debentures become distributable in fractions the Board may deal with the
fractions as it thinks fit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) authorise a person to enter (on behalf of all the Members concerned) an agreement with the Company providing
for either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the allotment to the Members respectively, credited as fully paid, of shares or debentures to which they
may be entitled on the capitalisation, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the payment by the Company on behalf of the Members (by the application of their respective operations
of the reserves resolved to be capitalised) of the amounts or part of the amounts remaining unpaid on their existing shares,

an agreement made under the authority being effective and binding on all those Members; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) generally do all acts and things required to give effect to the resolution.

**NOTICES**

147. Except as otherwise provided in these Articles, any notice or document may be served by the Company or
by the person entitled to give notice to any Member either personally, by facsimile or by sending it through the post in a prepaid letter
or via a recognised courier service, fees prepaid, addressed to the Member at his address as appearing in the Register of Members or,
to the extent permitted by all applicable laws and regulations, by electronic means by transmitting it to any electronic number or address
or website supplied by the Member to the Company or by placing it on the Company's Website. In the case of joint holders of a share,
all notices shall be given to that one of the joint holders whose name stands first in the Register of Members in respect of the joint
holding, and notice so given shall be sufficient notice to all the joint holders.

148. Notices posted to addresses outside the Cayman Islands shall be forwarded by prepaid airmail.

149. Any Member present, either personally or by proxy, at any meeting of the Company shall for all purposes
be deemed to have received due notice of such meeting and, where requisite, of the purposes for which such meeting was convened.

150. Any notice or other document, if served by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) post, service of the notice shall be deemed to have been served five calendar days after the time when
the letter containing the same is posted (in proving such service it shall be sufficient to prove that the letter containing the notice
or document was properly addressed and duly posted);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) cable, telex or fax, service of the notice shall be deemed to be effected by properly addressing and sending
such notice and shall be deemed to have been received on the same day that it was transmitted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) recognised courier service, service of the notice shall be deemed to have been served 48 hours after the
time when the letter containing the same is delivered to the courier service and in proving such service it shall be sufficient to prove
that the letter containing the notice or documents was properly addressed and duly delivered to the courier; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) e-mail, service of the notice shall be deemed to be effected by transmitting the e-mail to the e-mail
address provided by the intended recipient and shall be deemed to have been received on the same day that it was sent, and it shall not
be necessary for the receipt of the e-mail to be acknowledged by the recipient.

151. Any notice or document delivered or sent to any Member in accordance with the terms of these Articles
shall notwithstanding that such Member be then dead or bankrupt, and whether or not the Company has notice of his death or bankruptcy,
be deemed to have been duly served in respect of any share registered in the name of such Member as sole or joint holder, unless his name
shall at the time of the service of the notice or document, have been removed from the Register of Members as the holder of the share,
and such service shall for all purposes be deemed a sufficient service of such notice or document on all persons interested (whether jointly
with or as claiming through or under him) in the share.

152. Notice of every general meeting shall be given to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Members who have supplied to the Company an address for the giving of notices to them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) every person entitled to a share in consequence of the death or bankruptcy of a Member, who but for his
death or bankruptcy would be entitled to receive notice of the meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each Director and Alternate Director.

No other person shall be entitled to receive notices of general meetings.

**INFORMATION**

153. No Member shall be entitled to require discovery of any information in respect of any detail of the Company's
trading or any information which is or may be in the nature of a trade secret or secret process which may relate to the conduct of the
business of the Company and which in the opinion of the Board would not be in the interests of the Members of the Company to communicate
to the public.

154. The Board shall be entitled to release or disclose any information in its possession, custody or control
regarding the Company or its affairs to any of its members including, without limitation, information contained in the Register of Members
and transfer books of the Company.

**INDEMNITY**

155. Every Director and officer of the Company (which for the avoidance of doubt, shall not include auditors
of the Company), together with every former Director and former officer of the Company (each an "**Indemnified Person** ")
shall be indemnified out of the assets of the Company against any liability, action, proceeding, claim, demand, costs, damages or expenses,
including legal expenses, whatsoever which they or any of them may incur as a result of any act or failure to act in carrying out their
functions other than such liability (if any) that they may incur by reason of their own actual fraud or wilful default. No Indemnified
Person shall be liable to the Company for any loss or damage incurred by the Company as a result (whether direct or indirect) of the carrying
out of their functions unless that liability arises through the actual fraud or wilful default of such Indemnified Person. No person shall
be found to have committed actual fraud or wilful default under this Article unless or until a court of competent jurisdiction shall have
made a finding to that effect.

156. The Company shall advance to each Indemnified Person reasonable attorneys' fees and other costs
and expenses incurred in connection with the defence of any action, suit, proceeding or investigation involving such Indemnified Person
for which indemnity will or could be sought. In connection with any advance of any expenses hereunder, the Indemnified Person shall execute
an undertaking to repay the advanced amount to the Company if it shall be determined by final judgment or other final adjudication that
such Indemnified Person was not entitled to indemnification pursuant to this Article. If it shall be determined by a final judgment or
other final adjudication that such Indemnified Person was not entitled to indemnification with respect to such judgment, costs or expenses,
then such party shall not be indemnified with respect to such judgment, costs or expenses and any advancement shall be returned to the
Company (without interest) by the Indemnified Person.

157. The Directors, on behalf of the Company, may purchase and maintain insurance for the benefit of any Director
or other officer of the Company against any liability which, by virtue of any rule of law, would otherwise attach to such person in respect
of any negligence, default, breach of duty or breach of trust of which such person may be guilty in relation to the Company.

**FINANCIAL YEAR**

158. Unless the Directors otherwise prescribe, the financial year of the Company shall end on December 31st
in each year and shall begin on January 1st in each year.

**WINDING UP**

159. If the Company shall be wound up the liquidator shall apply the assets of the Company in satisfaction
of creditors' claims in such manner and order as such liquidator thinks fit. Subject to the rights attaching to any shares, in a
winding up:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the assets available for distribution amongst the Members shall be insufficient to repay the whole
of the Company's issued share capital, such assets shall be distributed so that, as nearly as may be, the losses shall be borne
by the Members in proportion to the par value of the shares held by them; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the assets available for distribution amongst the Members shall be more than sufficient to repay the
whole of the Company's issued share capital at the commencement of the winding up, the surplus shall be distributed amongst the
Members in proportion to the par value of the shares held by them at the commencement of the winding up subject to a deduction from those
shares in respect of which there are monies due, of all monies payable to the Company for unpaid calls or otherwise.

160. If the Company shall be wound up the liquidator may, subject to the rights attaching to any shares and
with the approval of a Special Resolution of the Company and any other approval required by the Statutes, divide amongst the Members in
kind the whole or any part of the assets of the Company (whether such assets shall consist of property of the same kind or not) and may
for that purpose value any assets and determine how the division shall be carried out as between the Members or different classes of Members.
The liquidator may, with the like approval, vest the whole or any part of such assets in trustees upon such trusts for the benefit of
the Members as the liquidator, with the like approval, shall think fit, but so that no Member shall be compelled to accept any asset upon
which there is a liability.

**AMENDMENT OF MEMORANDUM AND ARTICLES OF ASSOCIATION AND<br> NAME OF COMPANY**

161. The Company may at any time and from time to time by Special Resolution alter or amend these Articles
or the Memorandum of Association of the Company, in whole or in part, or change the name of the Company.

**REGISTRATION BY WAY OF CONTINUATION**

162. The Company may by Special Resolution resolve to be registered by way of continuation in a jurisdiction
outside the Cayman Islands or such other jurisdiction in which it is for the time being incorporated, registered or existing. In furtherance
of a resolution adopted pursuant to this Article, the Directors may cause an application to be made to the Registrar of Companies to deregister
the Company in the Cayman Islands or such other jurisdiction in which it is for the time being incorporated, registered or existing and
may cause all such further steps as they consider appropriate to be taken to effect the transfer by way of continuation of the Company.

**Mergers and Consolidations**

163. The Company shall have the power to merge or consolidate with one or more other constituent companies
(as defined in the Companies Act) upon such terms as the Directors may determine and (to the extent required by the Companies Act) with
the approval of a Special Resolution.

## Exhibit 4.2

**Exhibit 4.2**

**THESE WARRANTS AND ANY SHARES ACQUIRED UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE WARRANTS AND SUCH SHARES AND ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE WARRANTS AND SUCH SHARES MAY NOT BE EXERCISED OR TRANSFERRED EXCEPT UPON THE CONDITIONS SPECIFIED IN THIS WARRANT CERTIFICATE, AND NO EXERCISE OR TRANSFER OF THESE WARRANTS OR TRANSFER OF SUCH SHARES SHALL BE VALID OR EFFECTIVE UNLESS AND UNTIL SUCH CONDITIONS SHALL HAVE BEEN COMPLIED WITH.**

**Droneify Ltd.**

**Warrant To Purchase Common Stock**

Warrant No.: PA-1

Date of Issuance: September 26, 2022 ("**Issuance Date**")

**Droneify Ltd.**, a Province of Ontario, Canada corporation (the "**Company**"), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, _________<u> </u>, the registered holder hereof or its permitted assigns (the "**Holder**"), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, Company class A common shares, no par value ("**Common Stock**") (including any Warrants to purchase shares issued in exchange, transfer or replacement hereof, the "**Warrant**"), at any time or times on or after the date hereof, to the extent permitted by the applicable SEC and FINRA rules, but not after 11:59 p.m., Eastern Time, on the Expiration Date (as defined below), 17,500 (subject to adjustment as provided herein) fully paid and non-assessable shares of Common Stock (the "**Warrant Shares**").

1. <u>EXERCISE OF WARRANT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Mechanics of Exercise</u>. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after the date hereof, to the extent permitted by the applicable SEC and FINRA rules, in whole or in part, by delivery (whether via facsimile, email, or otherwise) of a written notice, in the form attached hereto as **Exhibit A** (the "**Exercise Notice**"), of the Holder's election to exercise this Warrant, by submitting information including the then- applicable Exercise Price, number of Warrant Shares purchased equal to or lower than the then- applicable number of Warrant Shares and the FMV (collectively, the "**Exercise Information**"). Within one (1) Trading Day following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the Company of an amount equal to the Exercise Price in effect on the date of such exercise multiplied by the number of Warrant Shares as to which this Warrant was so exercised (the "**Aggregate Exercise Price**") in cash or via wire transfer of immediately available funds if, subject to the provisions of Section 1(d), the Holder has not notified the Company in such Exercise Notice that such exercise is made pursuant to a Cashless Exercise (as defined in Section 1(d)) at a time and under circumstances which permit a Cashless Exercise. The Holder shall not be required to deliver the original of this Warrant in order to effect an exercise hereunder. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original of this Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining Warrant Shares shall have the same effect as cancellation of the original of this Warrant after delivery of the Warrant Shares in accordance with the terms hereof. On or before the first (1<sup>st</sup>) Trading Day following the date on which the Company has received an Exercise Notice, upon checking that the Exercise Information supplied by the Holder is accurate, the Company shall transmit by facsimile or email an acknowledgment of confirmation of receipt of such Exercise Notice, in the form attached hereto as **<u>Exhibit B</u>**, to the Holder and the Company's transfer agent (the "**Transfer Agent**"). On or before the third (3<sup>rd</sup>) Trading Day following the date on which the Company has received such Exercise Notice and, in the event that the Holder has chosen to exercise in cash, the receipt of the payment of the Aggregate Exercise Price, the Company shall instruct the Transfer Agent to issue to the Holder the number of Warrant Shares to which the Holder is entitled pursuant to such exercise and to, at the sole direction of the Holder pursuant to the Exercise Notice, hold such Warrant Shares in electronic form at the Transfer Agent registered in the Company's share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice), or mail to the Holder or, at the Holder's instruction pursuant to the Exercise Notice, the Holder's agent or designee, in each case, sent by reputable overnight courier to the address as specified in the applicable Exercise Notice, a certificate, registered in the Company's share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice). Upon delivery of an Exercise Notice and in the event that the Holder has chosen to exercise in cash, the Company's receipt of the payment of the Aggregate Exercise Price, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such Warrant Shares (as the case may be). If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the total number of Warrant Shares represented by this Warrant is greater than the number of Warrant Shares being acquired by the Holder upon an exercise, then, at the request of the Holder, the Company shall as soon as practicable and in no event later than three (3) Business Days after any exercise and at its own expense, issue and deliver to the Holder (or its designee) a new Warrant (in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional Warrant Shares are to be issued upon the exercise of this Warrant, but rather the number of Warrant Shares to be issued shall be rounded up to the nearest whole number. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company in respect of the issuance or delivery of Warrant Shares upon the exercise of this Warrant, but the Company shall not be obligated to pay any transfer taxes in respect of this Warrant or such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Price</u>. For purposes of this Warrant, "**Exercise Price**" initially means $7.50, subject to further adjustment as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Company's Failure to Timely Deliver Securities</u>. If the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) Trading Days after receipt of the applicable Exercise Notice, a certificate for the number of Warrant Shares to which the Holder is entitled (or, at the option of the Holders, a book-entry confirmation of the issuance of such Warrant Shares) and register such Warrant Shares on the Company's share register, the Holder will have the right to rescind such exercise. In addition to any other rights available to the Holder, if the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) Trading Days after receipt of the applicable Exercise Notice, a certificate for the number of Warrant Shares to which the Holder is entitled (or, at the option of the Holders, a book-entry confirmation of the issuance of such Warrant Shares) and register such Warrant Shares on the Company's share register and if on or after such third (3<sup>rd</sup>) Trading Day the Holder (or any other Person in respect, or on behalf, of the Holder) purchases (in an open market transaction or otherwise) Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of Warrant Shares, or a sale of a number of Warrant Shares equal to all or any portion of the number of Warrant Shares, issuable upon such exercise that the Holder so anticipated receiving from the Company, then, in addition to all other remedies available to the Holder, the Company shall, within three (3) Business Days after the Holder's request and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price (including reasonable brokerage commissions and other reasonable out-of-pocket expenses, if any) for the Warrant Shares so purchased (including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the "**Buy-In Price**"), at which point the Company's obligation to so issue and deliver such certificate or credit the Holder's balance account with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder's exercise hereunder (as the case may be) (and to issue such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to so issue and deliver to the Holder a certificate or certificates representing such Warrant Shares or credit the Holder's balance account with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder's exercise hereunder (as the case may be) and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of Warrant Shares multiplied by (B) the lowest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date of the applicable Exercise Notice and ending on the date of such issuance and payment under this clause (ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Cashless Exercise</u>. Notwithstanding anything contained herein to the contrary, the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the "Net Number" of Warrant Shares determined according to the following formula (a "**Cashless Exercise**"), provided that the Holder may elect to cashless exercise pursuant to this Section 1(d) only if B as set forth in the following formula is higher than C as set forth in the following formula:

Net Number = <u>(A x B) - (A x C)</u>

B

For purposes of the foregoing formula:

A= the total number of shares with respect to which this Warrant is then being exercised.

B= the FMV

C= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Disputes</u>. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with Section 14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f) <u>Intentionally Left Blank</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Insufficient Authorized Shares</u>. The Company shall at all times keep reserved for issuance under this Warrant a number of shares of Common Stock as shall be necessary to satisfy the Company's obligation to issue Warrant Shares hereunder (without regard to any limitation otherwise contained herein with respect to the number of Warrant Shares that may be acquirable upon exercise of this Warrant). If, notwithstanding the foregoing, and not in limitation thereof, at any time while the Warrant remains outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of the Warrant at least a number of shares of Common Stock equal to the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the Warrant then outstanding (the "**Required Reserve Amount**") (an "**Authorized Share Failure**"), then the Company shall immediately take all action necessary to increase the Company's authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Warrant then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than sixty (60) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders' approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal.

2. <u>ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES</u>. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Dividends and Splits</u>. Without limiting any provision of Section 4, if the Company, at any time on or after the date hereof, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares of Common Stock into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more classes of its then outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under this paragraph occurs during the period that an Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately to reflect such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) <u>Intentionally Left Blank</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Number of Warrant Shares</u>. Simultaneously with any adjustment to the Exercise Price pursuant to only paragraph (a) of this Section 2, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Other Events</u>. In the event that the Company (or any subsidiary) shall take any action to which the provisions hereof are not strictly applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then the Company's board of directors shall in good faith determine and implement an appropriate adjustment in the Exercise Price and the number of Warrant Shares (if applicable) so as to protect the rights of the Holder, provided that no such adjustment pursuant to this Section 2(d) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2, provided further that if the Holder does not accept such adjustments as appropriately protecting its interests hereunder against such dilution, then the Company's board of directors and the Holder shall agree, in good faith, upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose determination shall be final and binding and whose fees and expenses shall be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Calculations</u>. All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest 1/100<sup>th</sup> of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

3. <u>RIGHTS UPON DISTRIBUTION OF ASSETS</u>. In addition to any adjustments pursuant to Section 2 above, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "**Distribution**"), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon a complete exercise of this Warrant (without regard to any limitations on exercise hereof) immediately before the date on which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution.

4. <u>PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Purchase Rights</u>. In addition to any adjustments pursuant to Section 2 above, if at any time while the Warrant remains outstanding and before the Expiration Date, the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the "**Purchase Rights**"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon a complete exercise of this Warrant (without regard to any limitations on exercise hereof) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Fundamental Transactions</u>. During the term of this Warrant, the Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 4(b) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder prior to such Fundamental Transaction, such approval not to be unreasonably withheld, conditioned or delayed, including agreements to deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, which is exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock 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 shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such adjustments to the 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). Upon the consummation of each Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of the applicable Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents 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 this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein. Upon consummation of each Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of this Warrant prior to the applicable Fundamental Transaction, such shares of publicly traded Common Stock (or its equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant), as adjusted in accordance with the provisions of this Warrant. Notwithstanding the foregoing, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this Section 4(b) to permit the Fundamental Transaction without the assumption of this Warrant. In addition to and not in substitution for any other rights hereunder, prior to the consummation of each Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a "**Corporate Event**"), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction but prior to the Expiration Date, in lieu of the shares of the Common Stock Shares (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory to the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Application</u>. The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and Corporate Events and shall be applied as if this Warrant (and any such subsequent warrants) were fully exercisable and without regard to any limitations on the exercise of this Warrant.

5. <u>NONCIRCUMVENTION</u>. The Company hereby covenants and agrees that the Company will not, by amendment of its certificate of incorporation, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (a) shall not increase the par value of the Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (b) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon the exercise of this Warrant, and (c) shall, so long as the Warrant is outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of the Warrant, the maximum number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the Warrant then outstanding (without regard to any limitations on exercise).

6. <u>WARRANT HOLDER NOT DEEMED A STOCKHOLDER</u>. Except as otherwise specifically provided herein, the Holder, solely in its capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in its capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

7. <u>REISSUANCE OF WARRANTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transfer of Warrant</u>. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Lost, Stolen or Mutilated Warrant</u>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Exchangeable for Multiple Warrants</u>. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no warrants for fractional shares of Common Stock shall be given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Issuance of New Warrants</u>. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

8. <u>NOTICES;PAYMENTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon each adjustment of the Exercise Price and the number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of such adjustment(s) and (ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of <u>Common Stock</u>, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to holders of shares of <u>Common Stock</u> or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder and (iii) at least ten (10) Trading Days prior to the consummation of any Fundamental Transaction. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its subsidiaries, the Company shall simultaneously file such notice with the SEC pursuant to a Current Report on Form 8-K. It is expressly understood and agreed that the time of execution specified by the Holder in each Exercise Notice shall be definitive and may not be disputed or challenged by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payments</u>. Whenever any payment is to be made by the Company to any Person pursuant to this Warrant, such payment shall be made in lawful money of the United States of America via wire transfer of U.S. Dollars in immediately available funds in accordance with the Holder's wire transfer instructions delivered to the Company on or prior to such payment date or, in the absence of such instructions, by a certified check drawn on the account of the Company and sent via overnight courier service to such Person at such address as previously provided to the Company in writing.

9. <u>AMENDMENT AND WAIVER</u>. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

10. <u>SEVERABILITY</u>. If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

11. <u>GOVERNING LAW</u>. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdiction other than the State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company's obligations to the Holder or to enforce a judgment or other court ruling in favor of the Holder. If service of process is effected pursuant to the above sentence, such service will be deemed sufficient under New York law and the Company shall not assert otherwise. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. **THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.**

12. <u>Reserved</u>.

13. <u>CONSTRUCTION; HEADINGS</u>. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant. Terms used in this Warrant but defined in the other Transaction Documents shall have the meanings ascribed to such terms on the Closing Date in such other Transaction Documents unless otherwise consented to in writing by the Holder.

14. <u>DISPUTE RESOLUTION</u>. In the case of a dispute as to the determination of the Exercise Price or FMV or the arithmetic calculation of the Warrant Shares (as the case may be), the Company or the Holder (as the case may be) shall submit the disputed determinations or arithmetic calculations (as the case may be) via facsimile (a) within two (2) Business Days after receipt of the applicable notice giving rise to such dispute to the Company or the Holder (as the case may be) or (b) if no notice gave rise to such dispute, at any time after the Holder learned of the circumstances giving rise to such dispute (including, without limitation, as to whether any issuance or sale or deemed issuance or sale was an issuance or sale or deemed issuance or sale of Excluded Securities). If the Holder and the Company are unable to agree upon such determination or calculation (as the case may be) of the Exercise Price, or FMV or the number of Warrant Shares (as the case may be) within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the Company or the Holder (as the case may be), then the Company shall, within two (2) Business Days submit via facsimile (i) the disputed determination of the Exercise Price or FMV (as the case may be) to an independent, reputable investment bank selected by the Holder or (ii) the disputed arithmetic calculation of the Warrant Shares to the Company's independent, outside accountant. The Company shall cause at its expense the investment bank or the accountant (as the case may be) to perform the determinations or calculations (as the case may be) and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations or calculations (as the case may be). Such investment bank's or accountant's determination or calculation (as the case may be) shall be binding upon all parties absent demonstrable error.

15. <u>REMEDIES, CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF</u>. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant and the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, exercises and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company's compliance with the terms and conditions of this Warrant (including, without limitation, compliance with Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby upon the exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs in respect thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

16. <u>TRANSFER</u>. This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company.

17. <u>CERTAIN DEFINITIONS</u>. For purposes of this Warrant, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) "**Bloomberg**" means Bloomberg, L.P.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Business Day**" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Closing Sale Price**" means, for any security as of any date, the last closing trade price for such security on the Eligible Market, as reported by Bloomberg, or, if the Eligible Market begins to operate on an extended hours basis and does not designate the closing trade price, then the last trade price of such security prior to 4:00 p.m., New York time, as reported by Bloomberg, or, if the Eligible Market is not the principal securities exchange or trading market for such security, the last trade price of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing does not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for such security by Bloomberg, the average of the ask prices of any market makers for such security as reported in the "pink sheets" by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 14. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Convertible Securities**" means any stock or other security (other than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Eligible Market**" means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Expiration Date**" means the date that is five years from the Issuance Date, or, if such date falls on a day other than a Business Day or on which trading does not take place on the Eligible Market (a "**Holiday**"), the next date that is not a Holiday.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**FINRA**" means the Financial Industry Regulatory Authority, Inc. in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Fundamental Transaction**" means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related transactions, (A) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation) any other Person, or (B) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its respective properties or assets to any other Person, or (C) allow any other Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (D) consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other Person whereby such other Person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination), or (E) (1) reorganize, recapitalize or reclassify the Common Stock, (2) effect or consummate a stock combination, reverse stock split or other similar transaction involving the Common Stock or (3) make any public announcement or disclosure with respect to any stock combination, reverse stock split or other similar transaction involving the Common Stock (including, without limitation, any public announcement or disclosure of (a) any potential, possible or actual stock combination, reverse stock split or other similar transaction involving the Common Stock or (b) board or stockholder approval thereof, or the intention of the Company to seek board or stockholder approval of any stock combination, reverse stock split or other similar transaction involving the Common Stock), or (ii) any "person" or "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder) is or shall become the "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Options**" means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Parent Entity**" of a Person means an entity that, directly or indirectly, controls the applicable Person and whose Common Stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Person**" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (m) "**SEC**" means the United States Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Successor Entity**" means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Trading Day**" means any day on which the Common Stock is traded on the Eligible Market, or, if the Eligible Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded, provided that "Trading Day" shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Voting Stock**" of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers or trustees of such Person (irrespective of whether or not at the time capital stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**FMV**" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Eligible Market, the value shall be deemed to be the highest intra-day or closing price on any trading day on such Eligible Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, (b) if OTCQB or OTCQX is not an Eligible Market, the value shall be deemed to be the highest intra-day or closing price on any trading day on the OTCQB or OTCQX on which the Common Stock is then quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the "Pink Sheets" published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the "OTC Markets Group", the value shall be deemed to be the highest intra-day or closing price on any trading day on the Pink Sheets on which the Common Stock is then quoted as reported by OTC Markets Group (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

[*signature page follows*]

**IN WITNESS WHEREOF,** the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

**Droneify Ltd.**

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| | |
|:---|:---|
| By: | /s/ Adam Sax |
| Name: | Adam Sax |
| Title: | CEO |

---

**EXHIBIT A**

**EXERCISE NOTICE**

**TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT TO PURCHASE COMMON STOCK**

**Droneify Ltd.**

The undersigned holder hereby exercises the right to purchase _____________ Common Stock ("**Warrant Shares**") of **Droneify Ltd.**, a Province of Ontario, Canada corporation (the "**Company**"), evidenced by Warrant to Purchase Common Stock No. ________ (the "**Warrant**"). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as:

  a "<u>Cash Exercise</u>" with respect to <br> Warrant Shares; and/or

  a "<u>Cashless Exercise</u>" with respect to <br> Warrant Shares.

In the event that the Holder has elected a Cashless Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder hereby represents and warrants that (i) this Exercise Notice was executed by the Holder on the date set forth below and (ii) if applicable, the FMV as of the date prior to the date of the Exercise Notice was $____________.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as a "Cash Exercise".]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment of Exercise Price</u>. In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder shall pay the Aggregate Exercise Price in the sum of $<u> </u>____________to the Company in accordance with the terms of the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Delivery of Warrant Shares</u>. The Company shall deliver to Holder, or its designee or agent as specified below,<u> </u>____________Warrant Shares in accordance with the terms of the Warrant. Delivery shall be made to Holder, or for its benefit, as follows:

☐ Check here if requesting delivery as a certificate to the following name and to the following address:

Issue to: _________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

☐ Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

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| |
|:---|
| DTC Participant: |
| DTC Number: |
| Account Number: |

---

Date:<u> </u>__________, ______

_______________________

Name of Registered Holder

---

| |
|:---|
| Name: |
| Title: |
| Tax ID: |
| Facsimile: |

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**EXHIBIT B**

**ACKNOWLEDGMENT**

The Company hereby acknowledges this Exercise Notice and hereby directs ____________to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated ____________, 20____ , from the Company and acknowledged and agreed to by ____________.

---

| |
|:---|
| **Droneify Ltd.** |
| By: |
| <u> </u> Name: |
| Title: |

---

## Exhibit 4.3

**Exhibit 4.3**

**THESE WARRANTS AND ANY SHARES ACQUIRED UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE WARRANTS AND SUCH SHARES AND ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE WARRANTS AND SUCH SHARES MAY NOT BE EXERCISED OR TRANSFERRED EXCEPT UPON THE CONDITIONS SPECIFIED IN THIS WARRANT CERTIFICATE, AND NO EXERCISE OR TRANSFER OF THESE WARRANTS OR TRANSFER OF SUCH SHARES SHALL BE VALID OR EFFECTIVE UNLESS AND UNTIL SUCH CONDITIONS SHALL HAVE BEEN COMPLIED WITH.**

**Droneify Ltd.**

**Warrant To Purchase Common Stock**

Warrant No.: <u>PA-2</u>

Date of Issuance: October 21, 2022 ("**Issuance Date**")

**Droneify Ltd.**, a Province of Ontario, Canada corporation (the "**Company**"), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, ____________________, the registered holder hereof or its permitted assigns (the "**Holder**"), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, Company class A common shares, no par value ("**Common Stock**") (including any Warrants to purchase shares issued in exchange, transfer or replacement hereof, the "**Warrant**"), at any time or times on or after the date hereof, to the extent permitted by the applicable SEC and FINRA rules, but not after 11:59 p.m., Eastern Time, on the Expiration Date (as defined below), 9,450 (subject to adjustment as provided herein) fully paid and non-assessable shares of Common Stock (the "**Warrant Shares**").

1. <u>EXERCISE OF WARRANT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Mechanics of Exercise</u>. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after the date hereof, to the extent permitted by the applicable SEC and FINRA rules, in whole or in part, by delivery (whether via facsimile, email, or otherwise) of a written notice, in the form attached hereto as **Exhibit A** (the "**Exercise Notice**"), of the Holder's election to exercise this Warrant, by submitting information including the then- applicable Exercise Price, number of Warrant Shares purchased equal to or lower than the then- applicable number of Warrant Shares and the FMV (collectively, the "**Exercise Information**"). Within one (1) Trading Day following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the Company of an amount equal to the Exercise Price in effect on the date of such exercise multiplied by the number of Warrant Shares as to which this Warrant was so exercised (the "**Aggregate Exercise Price**") in cash or via wire transfer of immediately available funds if, subject to the provisions of Section 1(d), the Holder has not notified the Company in such Exercise Notice that such exercise is made pursuant to a Cashless Exercise (as defined in Section 1(d)) at a time and under circumstances which permit a Cashless Exercise. The Holder shall not be required to deliver the original of this Warrant in order to effect an exercise hereunder. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original of this Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining Warrant Shares shall have the same effect as cancellation of the original of this Warrant after delivery of the Warrant Shares in accordance with the terms hereof. On or before the first (1<sup>st</sup>) Trading Day following the date on which the Company has received an Exercise Notice, upon checking that the Exercise Information supplied by the Holder is accurate, the Company shall transmit by facsimile or email an acknowledgment of confirmation of receipt of such Exercise Notice, in the form attached hereto as **<u>Exhibit B</u>**, to the Holder and the Company's transfer agent (the "**Transfer Agent**"). On or before the third (3<sup>rd</sup>) Trading Day following the date on which the Company has received such Exercise Notice and, in the event that the Holder has chosen to exercise in cash, the receipt of the payment of the Aggregate Exercise Price, the Company shall instruct the Transfer Agent to issue to the Holder the number of Warrant Shares to which the Holder is entitled pursuant to such exercise and to, at the sole direction of the Holder pursuant to the Exercise Notice, hold such Warrant Shares in electronic form at the Transfer Agent registered in the Company's share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice), or mail to the Holder or, at the Holder's instruction pursuant to the Exercise Notice, the Holder's agent or designee, in each case, sent by reputable overnight courier to the address as specified in the applicable Exercise Notice, a certificate, registered in the Company's share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice). Upon delivery of an Exercise Notice and in the event that the Holder has chosen to exercise in cash, the Company's receipt of the payment of the Aggregate Exercise Price, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such Warrant Shares (as the case may be). If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the total number of Warrant Shares represented by this Warrant is greater than the number of Warrant Shares being acquired by the Holder upon an exercise, then, at the request of the Holder, the Company shall as soon as practicable and in no event later than three (3) Business Days after any exercise and at its own expense, issue and deliver to the Holder (or its designee) a new Warrant (in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional Warrant Shares are to be issued upon the exercise of this Warrant, but rather the number of Warrant Shares to be issued shall be rounded up to the nearest whole number. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company in respect of the issuance or delivery of Warrant Shares upon the exercise of this Warrant, but the Company shall not be obligated to pay any transfer taxes in respect of this Warrant or such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Price</u>. For purposes of this Warrant, "**Exercise Price**" initially means $7.50, subject to further adjustment as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Company's Failure to Timely Deliver Securities</u>. If the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) Trading Days after receipt of the applicable Exercise Notice, a certificate for the number of Warrant Shares to which the Holder is entitled (or, at the option of the Holders, a book-entry confirmation of the issuance of such Warrant Shares) and register such Warrant Shares on the Company's share register, the Holder will have the right to rescind such exercise. In addition to any other rights available to the Holder, if the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) Trading Days after receipt of the applicable Exercise Notice, a certificate for the number of Warrant Shares to which the Holder is entitled (or, at the option of the Holders, a book-entry confirmation of the issuance of such Warrant Shares) and register such Warrant Shares on the Company's share register and if on or after such third (3<sup>rd</sup>) Trading Day the Holder (or any other Person in respect, or on behalf, of the Holder) purchases (in an open market transaction or otherwise) Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of Warrant Shares, or a sale of a number of Warrant Shares equal to all or any portion of the number of Warrant Shares, issuable upon such exercise that the Holder so anticipated receiving from the Company, then, in addition to all other remedies available to the Holder, the Company shall, within three (3) Business Days after the Holder's request and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price (including reasonable brokerage commissions and other reasonable out-of-pocket expenses, if any) for the Warrant Shares so purchased (including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the "**Buy-In Price**"), at which point the Company's obligation to so issue and deliver such certificate or credit the Holder's balance account with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder's exercise hereunder (as the case may be) (and to issue such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to so issue and deliver to the Holder a certificate or certificates representing such Warrant Shares or credit the Holder's balance account with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder's exercise hereunder (as the case may be) and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of Warrant Shares multiplied by (B) the lowest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date of the applicable Exercise Notice and ending on the date of such issuance and payment under this clause (ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Cashless Exercise</u>. Notwithstanding anything contained herein to the contrary, the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the "Net Number" of Warrant Shares determined according to the following formula (a "**Cashless Exercise**"), provided that the Holder may elect to cashless exercise pursuant to this Section 1(d) only if B as set forth in the following formula is higher than C as set forth in the following formula:

Net Number = <u>(A x B) - (A x C)</u>

B

For purposes of the foregoing formula:

A= the total number of shares with respect to which this Warrant is then being exercised.

B= the FMV

C= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Disputes</u>. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with Section 14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f) <u>Intentionally Left Blank</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Insufficient Authorized Shares</u>. The Company shall at all times keep reserved for issuance under this Warrant a number of shares of Common Stock as shall be necessary to satisfy the Company's obligation to issue Warrant Shares hereunder (without regard to any limitation otherwise contained herein with respect to the number of Warrant Shares that may be acquirable upon exercise of this Warrant). If, notwithstanding the foregoing, and not in limitation thereof, at any time while the Warrant remains outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of the Warrant at least a number of shares of Common Stock equal to the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the Warrant then outstanding (the "**Required Reserve Amount**") (an "**Authorized Share Failure**"), then the Company shall immediately take all action necessary to increase the Company's authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Warrant then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than sixty (60) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders' approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal.

2. <u>ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES</u>. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Dividends and Splits</u>. Without limiting any provision of Section 4, if the Company, at any time on or after the date hereof, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares of Common Stock into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more classes of its then outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under this paragraph occurs during the period that an Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately to reflect such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) <u>Intentionally Left Blank</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Number of Warrant Shares</u>. Simultaneously with any adjustment to the Exercise Price pursuant to only paragraph (a) of this Section 2, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Other Events</u>. In the event that the Company (or any subsidiary) shall take any action to which the provisions hereof are not strictly applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then the Company's board of directors shall in good faith determine and implement an appropriate adjustment in the Exercise Price and the number of Warrant Shares (if applicable) so as to protect the rights of the Holder, provided that no such adjustment pursuant to this Section 2(d) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2, provided further that if the Holder does not accept such adjustments as appropriately protecting its interests hereunder against such dilution, then the Company's board of directors and the Holder shall agree, in good faith, upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose determination shall be final and binding and whose fees and expenses shall be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Calculations</u>. All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest 1/100<sup>th</sup> of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

3. <u>RIGHTS UPON DISTRIBUTION OF ASSETS</u>. In addition to any adjustments pursuant to Section 2 above, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "**Distribution**"), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon a complete exercise of this Warrant (without regard to any limitations on exercise hereof) immediately before the date on which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution.

4. <u>PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Purchase Rights</u>. In addition to any adjustments pursuant to Section 2 above, if at any time while the Warrant remains outstanding and before the Expiration Date, the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the "**Purchase Rights**"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon a complete exercise of this Warrant (without regard to any limitations on exercise hereof) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Fundamental Transactions</u>. During the term of this Warrant, the Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 4(b) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder prior to such Fundamental Transaction, such approval not to be unreasonably withheld, conditioned or delayed, including agreements to deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, which is exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock 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 shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such adjustments to the 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). Upon the consummation of each Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of the applicable Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents 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 this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein. Upon consummation of each Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of this Warrant prior to the applicable Fundamental Transaction, such shares of publicly traded Common Stock (or its equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant), as adjusted in accordance with the provisions of this Warrant. Notwithstanding the foregoing, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this Section 4(b) to permit the Fundamental Transaction without the assumption of this Warrant. In addition to and not in substitution for any other rights hereunder, prior to the consummation of each Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a "**Corporate Event**"), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction but prior to the Expiration Date, in lieu of the shares of the Common Stock Shares (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory to the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Application</u>. The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and Corporate Events and shall be applied as if this Warrant (and any such subsequent warrants) were fully exercisable and without regard to any limitations on the exercise of this Warrant.

5. <u>NONCIRCUMVENTION</u>. The Company hereby covenants and agrees that the Company will not, by amendment of its certificate of incorporation, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (a) shall not increase the par value of the Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (b) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon the exercise of this Warrant, and (c) shall, so long as the Warrant is outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of the Warrant, the maximum number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the Warrant then outstanding (without regard to any limitations on exercise).

6. <u>WARRANT HOLDER NOT DEEMED A STOCKHOLDER</u>. Except as otherwise specifically provided herein, the Holder, solely in its capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in its capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

7. <u>REISSUANCE OF WARRANTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transfer of Warrant</u>. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Lost, Stolen or Mutilated Warrant</u>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Exchangeable for Multiple Warrants</u>. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no warrants for fractional shares of Common Stock shall be given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Issuance of New Warrants</u>. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

8. <u>NOTICES;PAYMENTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon each adjustment of the Exercise Price and the number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of such adjustment(s) and (ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of <u>Common Stock</u>, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to holders of shares of <u>Common Stock</u> or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder and (iii) at least ten (10) Trading Days prior to the consummation of any Fundamental Transaction. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its subsidiaries, the Company shall simultaneously file such notice with the SEC pursuant to a Current Report on Form 8-K. It is expressly understood and agreed that the time of execution specified by the Holder in each Exercise Notice shall be definitive and may not be disputed or challenged by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payments</u>. Whenever any payment is to be made by the Company to any Person pursuant to this Warrant, such payment shall be made in lawful money of the United States of America via wire transfer of U.S. Dollars in immediately available funds in accordance with the Holder's wire transfer instructions delivered to the Company on or prior to such payment date or, in the absence of such instructions, by a certified check drawn on the account of the Company and sent via overnight courier service to such Person at such address as previously provided to the Company in writing.

9. <u>AMENDMENT AND WAIVER</u>. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

10. <u>SEVERABILITY</u>. If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

11. <u>GOVERNING LAW</u>. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdiction other than the State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company's obligations to the Holder or to enforce a judgment or other court ruling in favor of the Holder. If service of process is effected pursuant to the above sentence, such service will be deemed sufficient under New York law and the Company shall not assert otherwise. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. **THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.**

12. <u>Reserved</u>.

13. <u>CONSTRUCTION; HEADINGS</u>. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant. Terms used in this Warrant but defined in the other Transaction Documents shall have the meanings ascribed to such terms on the Closing Date in such other Transaction Documents unless otherwise consented to in writing by the Holder.

14. <u>DISPUTE RESOLUTION</u>. In the case of a dispute as to the determination of the Exercise Price or FMV or the arithmetic calculation of the Warrant Shares (as the case may be), the Company or the Holder (as the case may be) shall submit the disputed determinations or arithmetic calculations (as the case may be) via facsimile (a) within two (2) Business Days after receipt of the applicable notice giving rise to such dispute to the Company or the Holder (as the case may be) or (b) if no notice gave rise to such dispute, at any time after the Holder learned of the circumstances giving rise to such dispute (including, without limitation, as to whether any issuance or sale or deemed issuance or sale was an issuance or sale or deemed issuance or sale of Excluded Securities). If the Holder and the Company are unable to agree upon such determination or calculation (as the case may be) of the Exercise Price, or FMV or the number of Warrant Shares (as the case may be) within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the Company or the Holder (as the case may be), then the Company shall, within two (2) Business Days submit via facsimile (i) the disputed determination of the Exercise Price or FMV (as the case may be) to an independent, reputable investment bank selected by the Holder or (ii) the disputed arithmetic calculation of the Warrant Shares to the Company's independent, outside accountant. The Company shall cause at its expense the investment bank or the accountant (as the case may be) to perform the determinations or calculations (as the case may be) and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations or calculations (as the case may be). Such investment bank's or accountant's determination or calculation (as the case may be) shall be binding upon all parties absent demonstrable error.

15. <u>REMEDIES, CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND</u> <u>INJUNCTIVE RELIEF</u>. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant and the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, exercises and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company's compliance with the terms and conditions of this Warrant (including, without limitation, compliance with Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby upon the exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs in respect thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

16. <u>TRANSFER</u>. This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company.

17. <u>CERTAIN DEFINITIONS</u>. For purposes of this Warrant, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) "**Bloomberg**" means Bloomberg, L.P.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Business Day**" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Closing Sale Price**" means, for any security as of any date, the last closing trade price for such security on the Eligible Market, as reported by Bloomberg, or, if the Eligible Market begins to operate on an extended hours basis and does not designate the closing trade price, then the last trade price of such security prior to 4:00 p.m., New York time, as reported by Bloomberg, or, if the Eligible Market is not the principal securities exchange or trading market for such security, the last trade price of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing does not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for such security by Bloomberg, the average of the ask prices of any market makers for such security as reported in the "pink sheets" by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 14. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Convertible Securities**" means any stock or other security (other than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Eligible Market**" means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Expiration Date**" means the date that is five years from the Issuance Date, or, if such date falls on a day other than a Business Day or on which trading does not take place on the Eligible Market (a "**Holiday**"), the next date that is not a Holiday.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**FINRA**" means the Financial Industry Regulatory Authority, Inc. in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Fundamental Transaction**" means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related transactions, (A) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation) any other Person, or (B) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its respective properties or assets to any other Person, or (C) allow any other Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (D) consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other Person whereby such other Person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination), or (E) (1) reorganize, recapitalize or reclassify the Common Stock, (2) effect or consummate a stock combination, reverse stock split or other similar transaction involving the Common Stock or (3) make any public announcement or disclosure with respect to any stock combination, reverse stock split or other similar transaction involving the Common Stock (including, without limitation, any public announcement or disclosure of (a) any potential, possible or actual stock combination, reverse stock split or other similar transaction involving the Common Stock or (b) board or stockholder approval thereof, or the intention of the Company to seek board or stockholder approval of any stock combination, reverse stock split or other similar transaction involving the Common Stock), or (ii) any "person" or "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder) is or shall become the "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Options**" means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Parent Entity**" of a Person means an entity that, directly or indirectly, controls the applicable Person and whose Common Stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Person**" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (m) "**SEC**" means the United States Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Successor Entity**" means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Trading Day**" means any day on which the Common Stock is traded on the Eligible Market, or, if the Eligible Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded, provided that "Trading Day" shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Voting Stock**" of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers or trustees of such Person (irrespective of whether or not at the time capital stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**FMV**" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Eligible Market, the value shall be deemed to be the highest intra-day or closing price on any trading day on such Eligible Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, (b) if OTCQB or OTCQX is not an Eligible Market, the value shall be deemed to be the highest intra-day or closing price on any trading day on the OTCQB or OTCQX on which the Common Stock is then quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the "Pink Sheets" published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the "OTC Markets Group", the value shall be deemed to be the highest intra-day or closing price on any trading day on the Pink Sheets on which the Common Stock is then quoted as reported by OTC Markets Group (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

[*signature page follows*]

**IN WITNESS WHEREOF,** the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

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| | |
|:---|:---|
| **Droneify Ltd.** | **Droneify Ltd.** |
| By: | /s/ Adam Sax |
| Name: | Adam Sax |
| Title: | CEO |

---

**EXHIBIT A**

**EXERCISE NOTICE**

**TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT TO PURCHASE COMMON STOCK**

**Droneify Ltd.**

The undersigned holder hereby exercises the right to purchase <u>____________</u> Common Stock ("**Warrant Shares**") of **Droneify Ltd.**, a Province of Ontario, Canada corporation (the "**Company**"), evidenced by Warrant to Purchase Common Stock No. <u>__________</u>(the "**Warrant**"). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as:

  a "<u>Cash Exercise</u>" with respect to   <br> Warrant Shares; and/or

  a "<u>Cashless Exercise</u>" with respect to   <br> Warrant Shares.

In the event that the Holder has elected a Cashless Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder hereby represents and warrants that (i) this Exercise Notice was executed by the Holder on the date set forth below and (ii) if applicable, the FMV as of the date prior to the date of the Exercise Notice was $________ .]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as a "Cash Exercise".]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment of Exercise Price</u>. In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder shall pay the Aggregate Exercise Price in the sum of $________<u> </u>to the Company in accordance with the terms of the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Delivery of Warrant Shares</u>. The Company shall deliver to Holder, or its designee or agent as specified below,<u> </u>Warrant Shares in accordance with the terms of the Warrant. Delivery shall be made to Holder, or for its benefit, as follows:

☐ Check here if requesting delivery as a certificate to the following name and to the following address:

Issue to: _________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

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| |
|:---|
| ☐ Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows: |
| DTC Participant: |
| DTC Number: |
| Account Number: |

---

Date: ______________<u> </u> ,_____<u> </u>

_________________________

Name of Registered Holder

---

| |
|:---|
| Name: |
| Title: |
| Tax ID: |
| Facsimile: |

---

**EXHIBIT B**

**ACKNOWLEDGMENT**

The Company hereby acknowledges this Exercise Notice and hereby directs ____________to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated ___________, 20 ____, from the Company and acknowledged and agreed to by ________________.

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| |
|:---|
| **Droneify Ltd.** |
| By: |
| Name: |
| Title: |

---

## Exhibit 4.4

**Exhibit 4.4**

**THESE WARRANTS AND ANY SHARES ACQUIRED UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE WARRANTS AND SUCH SHARES AND ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE WARRANTS AND SUCH SHARES MAY NOT BE EXERCISED OR TRANSFERRED EXCEPT UPON THE CONDITIONS SPECIFIED IN THIS WARRANT CERTIFICATE, AND NO EXERCISE OR TRANSFER OF THESE WARRANTS OR TRANSFER OF SUCH SHARES SHALL BE VALID OR EFFECTIVE UNLESS AND UNTIL SUCH CONDITIONS SHALL HAVE BEEN COMPLIED WITH.**

**Droneify Ltd.**

**Warrant To Purchase Common Stock**

Warrant No.: <u>PA-3</u>

Date of Issuance: December 7, 2022 ("**Issuance Date**")

**Droneify Ltd.**, a Province of Ontario, Canada corporation (the "**Company**"), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,___________________, the registered holder hereof or its permitted assigns (the "**Holder**"), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, Company class A common shares, no par value ("**Common Stock**") (including any Warrants to purchase shares issued in exchange, transfer or replacement hereof, the "**Warrant**"), at any time or times on or after the date hereof, to the extent permitted by the applicable SEC and FINRA rules, but not after 11:59 p.m., Eastern Time, on the Expiration Date (as defined below), 7,350 (subject to adjustment as provided herein) fully paid and non-assessable shares of Common Stock (the "**Warrant Shares**").

1. <u>EXERCISE OF WARRANT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Mechanics of Exercise</u>. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after the date hereof, to the extent permitted by the applicable SEC and FINRA rules, in whole or in part, by delivery (whether via facsimile, email, or otherwise) of a written notice, in the form attached hereto as **Exhibit A** (the "**Exercise Notice**"), of the Holder's election to exercise this Warrant, by submitting information including the then- applicable Exercise Price, number of Warrant Shares purchased equal to or lower than the then- applicable number of Warrant Shares and the FMV (collectively, the "**Exercise Information**"). Within one (1) Trading Day following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the Company of an amount equal to the Exercise Price in effect on the date of such exercise multiplied by the number of Warrant Shares as to which this Warrant was so exercised (the "**Aggregate Exercise Price**") in cash or via wire transfer of immediately available funds if, subject to the provisions of Section 1(d), the Holder has not notified the Company in such Exercise Notice that such exercise is made pursuant to a Cashless Exercise (as defined in Section 1(d)) at a time and under circumstances which permit a Cashless Exercise. The Holder shall not be required to deliver the original of this Warrant in order to effect an exercise hereunder. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original of this Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining Warrant Shares shall have the same effect as cancellation of the original of this Warrant after delivery of the Warrant Shares in accordance with the terms hereof. On or before the first (1<sup>st</sup>) Trading Day following the date on which the Company has received an Exercise Notice, upon checking that the Exercise Information supplied by the Holder is accurate, the Company shall transmit by facsimile or email an acknowledgment of confirmation of receipt of such Exercise Notice, in the form attached hereto as **<u>Exhibit B</u>**, to the Holder and the Company's transfer agent (the "**Transfer Agent**"). On or before the third (3<sup>rd</sup>) Trading Day following the date on which the Company has received such Exercise Notice and, in the event that the Holder has chosen to exercise in cash, the receipt of the payment of the Aggregate Exercise Price, the Company shall instruct the Transfer Agent to issue to the Holder the number of Warrant Shares to which the Holder is entitled pursuant to such exercise and to, at the sole direction of the Holder pursuant to the Exercise Notice, hold such Warrant Shares in electronic form at the Transfer Agent registered in the Company's share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice), or mail to the Holder or, at the Holder's instruction pursuant to the Exercise Notice, the Holder's agent or designee, in each case, sent by reputable overnight courier to the address as specified in the applicable Exercise Notice, a certificate, registered in the Company's share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice). Upon delivery of an Exercise Notice and in the event that the Holder has chosen to exercise in cash, the Company's receipt of the payment of the Aggregate Exercise Price, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such Warrant Shares (as the case may be). If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the total number of Warrant Shares represented by this Warrant is greater than the number of Warrant Shares being acquired by the Holder upon an exercise, then, at the request of the Holder, the Company shall as soon as practicable and in no event later than three (3) Business Days after any exercise and at its own expense, issue and deliver to the Holder (or its designee) a new Warrant (in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional Warrant Shares are to be issued upon the exercise of this Warrant, but rather the number of Warrant Shares to be issued shall be rounded up to the nearest whole number. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company in respect of the issuance or delivery of Warrant Shares upon the exercise of this Warrant, but the Company shall not be obligated to pay any transfer taxes in respect of this Warrant or such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Price</u>. For purposes of this Warrant, "**Exercise Price**" initially means $7.50, subject to further adjustment as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Company's Failure to Timely Deliver Securities</u>. If the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) Trading Days after receipt of the applicable Exercise Notice, a certificate for the number of Warrant Shares to which the Holder is entitled (or, at the option of the Holders, a book-entry confirmation of the issuance of such Warrant Shares) and register such Warrant Shares on the Company's share register, the Holder will have the right to rescind such exercise. In addition to any other rights available to the Holder, if the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) Trading Days after receipt of the applicable Exercise Notice, a certificate for the number of Warrant Shares to which the Holder is entitled (or, at the option of the Holders, a book-entry confirmation of the issuance of such Warrant Shares) and register such Warrant Shares on the Company's share register and if on or after such third (3<sup>rd</sup>) Trading Day the Holder (or any other Person in respect, or on behalf, of the Holder) purchases (in an open market transaction or otherwise) Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of Warrant Shares, or a sale of a number of Warrant Shares equal to all or any portion of the number of Warrant Shares, issuable upon such exercise that the Holder so anticipated receiving from the Company, then, in addition to all other remedies available to the Holder, the Company shall, within three (3) Business Days after the Holder's request and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price (including reasonable brokerage commissions and other reasonable out-of-pocket expenses, if any) for the Warrant Shares so purchased (including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the "**Buy-In Price**"), at which point the Company's obligation to so issue and deliver such certificate or credit the Holder's balance account with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder's exercise hereunder (as the case may be) (and to issue such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to so issue and deliver to the Holder a certificate or certificates representing such Warrant Shares or credit the Holder's balance account with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder's exercise hereunder (as the case may be) and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of Warrant Shares multiplied by (B) the lowest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date of the applicable Exercise Notice and ending on the date of such issuance and payment under this clause (ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Cashless Exercise</u>. Notwithstanding anything contained herein to the contrary, the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the "Net Number" of Warrant Shares determined according to the following formula (a "**Cashless Exercise**"), provided that the Holder may elect to cashless exercise pursuant to this Section 1(d) only if B as set forth in the following formula is higher than C as set forth in the following formula:

Net Number = <u>(A x B) - (A x C)</u>

B

For purposes of the foregoing formula:

A= the total number of shares with respect to which this Warrant is then being exercised.

B= the FMV

C= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Disputes</u>. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with Section 14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Intentionally Left Blank</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Insufficient Authorized Shares</u>. The Company shall at all times keep reserved for issuance under this Warrant a number of shares of Common Stock as shall be necessary to satisfy the Company's obligation to issue Warrant Shares hereunder (without regard to any limitation otherwise contained herein with respect to the number of Warrant Shares that may be acquirable upon exercise of this Warrant). If, notwithstanding the foregoing, and not in limitation thereof, at any time while the Warrant remains outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of the Warrant at least a number of shares of Common Stock equal to the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the Warrant then outstanding (the "**Required Reserve Amount**") (an "**Authorized Share Failure**"), then the Company shall immediately take all action necessary to increase the Company's authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Warrant then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than sixty (60) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders' approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal.

2. <u>ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES</u>. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Dividends and Splits</u>. Without limiting any provision of Section 4, if the Company, at any time on or after the date hereof, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares of Common Stock into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more classes of its then outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under this paragraph occurs during the period that an Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately to reflect such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Intentionally Left Blank</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Number of Warrant Shares</u>. Simultaneously with any adjustment to the Exercise Price pursuant to only paragraph (a) of this Section 2, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Other Events</u>. In the event that the Company (or any subsidiary) shall take any action to which the provisions hereof are not strictly applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then the Company's board of directors shall in good faith determine and implement an appropriate adjustment in the Exercise Price and the number of Warrant Shares (if applicable) so as to protect the rights of the Holder, provided that no such adjustment pursuant to this Section 2(d) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2, provided further that if the Holder does not accept such adjustments as appropriately protecting its interests hereunder against such dilution, then the Company's board of directors and the Holder shall agree, in good faith, upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose determination shall be final and binding and whose fees and expenses shall be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Calculations</u>. All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest 1/100<sup>th</sup> of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

3. <u>RIGHTS UPON DISTRIBUTION OF ASSETS</u>. In addition to any adjustments pursuant to Section 2 above, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "**Distribution**"), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon a complete exercise of this Warrant (without regard to any limitations on exercise hereof) immediately before the date on which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution.

4. <u>PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Purchase Rights</u>. In addition to any adjustments pursuant to Section 2 above, if at any time while the Warrant remains outstanding and before the Expiration Date, the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the "**Purchase Rights**"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon a complete exercise of this Warrant (without regard to any limitations on exercise hereof) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Fundamental Transactions</u>. During the term of this Warrant, the Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 4(b) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder prior to such Fundamental Transaction, such approval not to be unreasonably withheld, conditioned or delayed, including agreements to deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, which is exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock 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 shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such adjustments to the 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). Upon the consummation of each Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of the applicable Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents 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 this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein. Upon consummation of each Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of this Warrant prior to the applicable Fundamental Transaction, such shares of publicly traded Common Stock (or its equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant), as adjusted in accordance with the provisions of this Warrant. Notwithstanding the foregoing, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this Section 4(b) to permit the Fundamental Transaction without the assumption of this Warrant. In addition to and not in substitution for any other rights hereunder, prior to the consummation of each Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a "**Corporate Event**"), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction but prior to the Expiration Date, in lieu of the shares of the Common Stock Shares (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory to the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Application</u>. The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and Corporate Events and shall be applied as if this Warrant (and any such subsequent warrants) were fully exercisable and without regard to any limitations on the exercise of this Warrant.

5. <u>NONCIRCUMVENTION</u>. The Company hereby covenants and agrees that the Company will not, by amendment of its certificate of incorporation, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (a) shall not increase the par value of the Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (b) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon the exercise of this Warrant, and (c) shall, so long as the Warrant is outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of the Warrant, the maximum number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the Warrant then outstanding (without regard to any limitations on exercise).

6. <u>WARRANT HOLDER NOT DEEMED A STOCKHOLDER</u>. Except as otherwise specifically provided herein, the Holder, solely in its capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in its capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

7. <u>REISSUANCE OF WARRANTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transfer of Warrant</u>. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Lost, Stolen or Mutilated Warrant</u>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Exchangeable for Multiple Warrants</u>. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no warrants for fractional shares of Common Stock shall be given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Issuance of New Warrants</u>. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

8. <u>NOTICES;PAYMENTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon each adjustment of the Exercise Price and the number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of such adjustment(s) and (ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of <u>Common Stock</u>, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to holders of shares of <u>Common Stock</u> or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder and (iii) at least ten (10) Trading Days prior to the consummation of any Fundamental Transaction. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its subsidiaries, the Company shall simultaneously file such notice with the SEC pursuant to a Current Report on Form 8-K. It is expressly understood and agreed that the time of execution specified by the Holder in each Exercise Notice shall be definitive and may not be disputed or challenged by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payments</u>. Whenever any payment is to be made by the Company to any Person pursuant to this Warrant, such payment shall be made in lawful money of the United States of America via wire transfer of U.S. Dollars in immediately available funds in accordance with the Holder's wire transfer instructions delivered to the Company on or prior to such payment date or, in the absence of such instructions, by a certified check drawn on the account of the Company and sent via overnight courier service to such Person at such address as previously provided to the Company in writing.

9. <u>AMENDMENT AND WAIVER</u>. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

10. <u>SEVERABILITY</u>. If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

11. <u>GOVERNING LAW</u>. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdiction other than the State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company's obligations to the Holder or to enforce a judgment or other court ruling in favor of the Holder. If service of process is effected pursuant to the above sentence, such service will be deemed sufficient under New York law and the Company shall not assert otherwise. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. **THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.**

12. <u>Reserved</u>.

13. <u>CONSTRUCTION; HEADINGS</u>. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant. Terms used in this Warrant but defined in the other Transaction Documents shall have the meanings ascribed to such terms on the Closing Date in such other Transaction Documents unless otherwise consented to in writing by the Holder.

14. <u>DISPUTE RESOLUTION</u>. In the case of a dispute as to the determination of the Exercise Price or FMV or the arithmetic calculation of the Warrant Shares (as the case may be), the Company or the Holder (as the case may be) shall submit the disputed determinations or arithmetic calculations (as the case may be) via facsimile (a) within two (2) Business Days after receipt of the applicable notice giving rise to such dispute to the Company or the Holder (as the case may be) or (b) if no notice gave rise to such dispute, at any time after the Holder learned of the circumstances giving rise to such dispute (including, without limitation, as to whether any issuance or sale or deemed issuance or sale was an issuance or sale or deemed issuance or sale of Excluded Securities). If the Holder and the Company are unable to agree upon such determination or calculation (as the case may be) of the Exercise Price, or FMV or the number of Warrant Shares (as the case may be) within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the Company or the Holder (as the case may be), then the Company shall, within two (2) Business Days submit via facsimile (i) the disputed determination of the Exercise Price or FMV (as the case may be) to an independent, reputable investment bank selected by the Holder or (ii) the disputed arithmetic calculation of the Warrant Shares to the Company's independent, outside accountant. The Company shall cause at its expense the investment bank or the accountant (as the case may be) to perform the determinations or calculations (as the case may be) and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations or calculations (as the case may be). Such investment bank's or accountant's determination or calculation (as the case may be) shall be binding upon all parties absent demonstrable error.

15. <u>REMEDIES, CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF</u>. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant and the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, exercises and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company's compliance with the terms and conditions of this Warrant (including, without limitation, compliance with Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby upon the exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs in respect thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

16. <u>TRANSFER</u>. This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company.

17. <u>CERTAIN DEFINITIONS</u>. For purposes of this Warrant, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Bloomberg**" means Bloomberg, L.P.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Business Day**" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Closing Sale Price**" means, for any security as of any date, the last closing trade price for such security on the Eligible Market, as reported by Bloomberg, or, if the Eligible Market begins to operate on an extended hours basis and does not designate the closing trade price, then the last trade price of such security prior to 4:00 p.m., New York time, as reported by Bloomberg, or, if the Eligible Market is not the principal securities exchange or trading market for such security, the last trade price of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing does not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for such security by Bloomberg, the average of the ask prices of any market makers for such security as reported in the "pink sheets" by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 14. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Convertible Securities**" means any stock or other security (other than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Eligible Market**" means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Expiration Date**" means the date that is five years from the Issuance Date, or, if such date falls on a day other than a Business Day or on which trading does not take place on the Eligible Market (a "**Holiday**"), the next date that is not a Holiday.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**FINRA**" means the Financial Industry Regulatory Authority, Inc. in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Fundamental Transaction**" means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related transactions, (A) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation) any other Person, or (B) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its respective properties or assets to any other Person, or (C) allow any other Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (D) consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other Person whereby such other Person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination), or (E) (1) reorganize, recapitalize or reclassify the Common Stock, (2) effect or consummate a stock combination, reverse stock split or other similar transaction involving the Common Stock or (3) make any public announcement or disclosure with respect to any stock combination, reverse stock split or other similar transaction involving the Common Stock (including, without limitation, any public announcement or disclosure of (a) any potential, possible or actual stock combination, reverse stock split or other similar transaction involving the Common Stock or (b) board or stockholder approval thereof, or the intention of the Company to seek board or stockholder approval of any stock combination, reverse stock split or other similar transaction involving the Common Stock), or (ii) any "person" or "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder) is or shall become the "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Options**" means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Parent Entity**" of a Person means an entity that, directly or indirectly, controls the applicable Person and whose Common Stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Person**" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**SEC**" means the United States Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Successor Entity**" means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Trading Day**" means any day on which the Common Stock is traded on the Eligible Market, or, if the Eligible Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded, provided that "Trading Day" shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Voting Stock**" of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers or trustees of such Person (irrespective of whether or not at the time capital stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**FMV**" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Eligible Market, the value shall be deemed to be the highest intra-day or closing price on any trading day on such Eligible Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, (b) if OTCQB or OTCQX is not an Eligible Market, the value shall be deemed to be the highest intra-day or closing price on any trading day on the OTCQB or OTCQX on which the Common Stock is then quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the "Pink Sheets" published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the "OTC Markets Group", the value shall be deemed to be the highest intra-day or closing price on any trading day on the Pink Sheets on which the Common Stock is then quoted as reported by OTC Markets Group (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

[*signature page follows*]

**IN WITNESS WHEREOF,** the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

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| | |
|:---|:---|
| **Droneify Ltd.** | **Droneify Ltd.** |
| By: | /s/ Adam Sax |
| Name: | Adam Sax |
| Title: | CEO |

---

**EXHIBIT A**

**EXERCISE NOTICE**

**TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS**

**WARRANT TO PURCHASE COMMON STOCK**

**Droneify Ltd.**

The undersigned holder hereby exercises the right to purchase ______________ Common Stock ("**Warrant Shares**") of **Droneify Ltd.**, a Province of Ontario, Canada corporation (the "**Company**"), evidenced by Warrant to Purchase Common Stock No. ___________ (the "**Warrant**"). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as:

  a "<u>Cash Exercise</u>" with respect to <br> Warrant Shares; and/or

  a "<u>Cashless Exercise</u>" with respect to <br> Warrant Shares.

In the event that the Holder has elected a Cashless Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder hereby represents and warrants that (i) this Exercise Notice was executed by the Holder on the date set forth below and (ii) if applicable, the FMV as of the date prior to the date of the Exercise Notice was $________.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as a "Cash Exercise".]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment of Exercise Price</u>. In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder shall pay the Aggregate Exercise Price in the sum of $________ to the Company in accordance with the terms of the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Delivery of Warrant Shares</u>. The Company shall deliver to Holder, or its designee or agent as specified below, ___________ Warrant Shares in accordance with the terms of the Warrant. Delivery shall be made to Holder, or for its benefit, as follows:

☐ Check here if requesting delivery as a certificate to the following name and to the following address:

Issue to: _________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

☐ Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

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| |
|:---|
| DTC Participant: |
| DTC Number: |
| Account Number: |

---

Date: ______________<u> </u> ,_____<u> </u>

_________________________

Name of Registered Holder

---

| |
|:---|
| Name: |
| Title: |
| Tax ID: |
| Facsimile: |

---

**EXHIBIT B**

**ACKNOWLEDGMENT**

The Company hereby acknowledges this Exercise Notice and hereby directs________________ to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated __________ , 20_______ , from the Company and acknowledged and agreed to by __________.

---

| |
|:---|
| **Droneify Ltd.** |
| By: |
| Name: |
| Title: |

---

## Exhibit 4.5

**Exhibit 4.5**

**THESE WARRANTS AND ANY SHARES ACQUIRED UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE WARRANTS AND SUCH SHARES AND ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE WARRANTS AND SUCH SHARES MAY NOT BE EXERCISED OR TRANSFERRED EXCEPT UPON THE CONDITIONS SPECIFIED IN THIS WARRANT CERTIFICATE, AND NO EXERCISE OR TRANSFER OF THESE WARRANTS OR TRANSFER OF SUCH SHARES SHALL BE VALID OR EFFECTIVE UNLESS AND UNTIL SUCH CONDITIONS SHALL HAVE BEEN COMPLIED WITH.**

**D** **RONEIFY LTD.**

**W** **ARRANT TO PURCHASE COMMON STOCK**

Warrant No.: <u>PA-4</u>

Date of Issuance: January 30, 2023 ("**Issuance Date**")

**Droneify Ltd.**, a Province of Ontario, Canada corporation (the "**Company**"), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,________________________, the registered holder hereof or its permitted assigns (the "**Holder**"), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, Company class A common shares, no par value ("**Common Stock**") (including any Warrants to purchase shares issued in exchange, transfer or replacement hereof, the "**Warrant**"), at any time or times on or after the date hereof, to the extent permitted by the applicable SEC and FINRA rules, but not after 11:59 p.m., Eastern Time, on the Expiration Date (as defined below), 15,400 (subject to adjustment as provided herein) fully paid and non-assessable shares of Common Stock (the "**Warrant Shares**").

1. <u>EXERCISE OF WARRANT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Mechanics of Exercise</u>. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after the date hereof, to the extent permitted by the applicable SEC and FINRA rules, in whole or in part, by delivery (whether via facsimile, email, or otherwise) of a written notice, in the form attached hereto as **Exhibit A** (the "**Exercise Notice**"), of the Holder's election to exercise this Warrant, by submitting information including the then- applicable Exercise Price, number of Warrant Shares purchased equal to or lower than the then- applicable number of Warrant Shares and the FMV (collectively, the "**Exercise Information**"). Within one (1) Trading Day following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the Company of an amount equal to the Exercise Price in effect on the date of such exercise multiplied by the number of Warrant Shares as to which this Warrant was so exercised (the "**Aggregate Exercise Price**") in cash or via wire transfer of immediately available funds if, subject to the provisions of Section 1(d), the Holder has not notified the Company in such Exercise Notice that such exercise is made pursuant to a Cashless Exercise (as defined in Section 1(d)) at a time and under circumstances which permit a Cashless Exercise. The Holder shall not be required to deliver the original of this Warrant in order to effect an exercise hereunder. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original of this Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining Warrant Shares shall have the same effect as cancellation of the original of this Warrant after delivery of the Warrant Shares in accordance with the terms hereof. On or before the first (1st) Trading Day following the date on which the Company has received an Exercise Notice, upon checking that the Exercise Information supplied by the Holder is accurate, the Company shall transmit by facsimile or email an acknowledgment of confirmation of receipt of such Exercise Notice, in the form attached hereto as **<u>Exhibit B</u>**, to the Holder and the Company's transfer agent (the "**Transfer Agent**"). On or before the third (3rd) Trading Day following the date on which the Company has received such Exercise Notice and, in the event that the Holder has chosen to exercise in cash, the receipt of the payment of the Aggregate Exercise Price, the Company shall instruct the Transfer Agent to issue to the Holder the number of Warrant Shares to which the Holder is entitled pursuant to such exercise and to, at the sole direction of the Holder pursuant to the Exercise Notice, hold such Warrant Shares in electronic form at the Transfer Agent registered in the Company's share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice), or mail to the Holder or, at the Holder's instruction pursuant to the Exercise Notice, the Holder's agent or designee, in each case, sent by reputable overnight courier to the address as specified in the applicable Exercise Notice, a certificate, registered in the Company's share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice). Upon delivery of an Exercise Notice and in the event that the Holder has chosen to exercise in cash, the Company's receipt of the payment of the Aggregate Exercise Price, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such Warrant Shares (as the case may be). If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the total number of Warrant Shares represented by this Warrant is greater than the number of Warrant Shares being acquired by the Holder upon an exercise, then, at the request of the Holder, the Company shall as soon as practicable and in no event later than three (3) Business Days after any exercise and at its own expense, issue and deliver to the Holder (or its designee) a new Warrant (in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional Warrant Shares are to be issued upon the exercise of this Warrant, but rather the number of Warrant Shares to be issued shall be rounded up to the nearest whole number. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company in respect of the issuance or delivery of Warrant Shares upon the exercise of this Warrant, but the Company shall not be obligated to pay any transfer taxes in respect of this Warrant or such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Price</u>. For purposes of this Warrant, "**Exercise Price**" initially means$7.50, subject to further adjustment as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Company's Failure to Timely Deliver Securities</u>. If the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) Trading Days after receipt of the applicable Exercise Notice, a certificate for the number of Warrant Shares to which the Holder is entitled (or, at the option of the Holders, a book-entry confirmation of the issuance of such Warrant Shares) and register such Warrant Shares on the Company's share register, the Holder will have the right to rescind such exercise. In addition to any other rights available to the Holder, if the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) Trading Days after receipt of the applicable Exercise Notice, a certificate for the number of Warrant Shares to which the Holder is entitled (or, at the option of the Holders, a book-entry confirmation of the issuance of such Warrant Shares) and register such Warrant Shares on the Company's share register and if on or after such third (3rd) Trading Day the Holder (or any other Person in respect, or on behalf, of the Holder) purchases (in an open market transaction or otherwise) Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of Warrant Shares, or a sale of a number of Warrant Shares equal to all or any portion of the number of Warrant Shares, issuable upon such exercise that the Holder so anticipated receiving from the Company, then, in addition to all other remedies available to the Holder, the Company shall, within three (3) Business Days after the Holder's request and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price (including reasonable brokerage commissions and other reasonable out-of-pocket expenses, if any) for the Warrant Shares so purchased (including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the "**Buy-In Price**"), at which point the Company's obligation to so issue and deliver such certificate or credit the Holder's balance account with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder's exercise hereunder (as the case may be) (and to issue such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to so issue and deliver to the Holder a certificate or certificates representing such Warrant Shares or credit the Holder's balance account with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder's exercise hereunder (as the case may be) and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of Warrant Shares multiplied by (B) the lowest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date of the applicable Exercise Notice and ending on the date of such issuance and payment under this clause (ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Cashless Exercise</u>. Notwithstanding anything contained herein to the contrary, the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the "Net Number" of Warrant Shares determined according to the following formula (a "**Cashless Exercise**"), provided that the Holder may elect to cashless exercise pursuant to this Section 1(d) only if B as set forth in the following formula is higher than C as set forth in the following formula:

Net Number = <u>(A x B) - (A x C)</u>

B

For purposes of the foregoing formula:

A= the total number of shares with respect to which this Warrant is then being exercised.

B= the FMV

C= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Disputes</u>. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with Section 14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Intentionally Left Blank</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Insufficient Authorized Shares</u>. The Company shall at all times keep reserved for issuance under this Warrant a number of shares of Common Stock as shall be necessary to satisfy the Company's obligation to issue Warrant Shares hereunder (without regard to any limitation otherwise contained herein with respect to the number of Warrant Shares that may be acquirable upon exercise of this Warrant). If, notwithstanding the foregoing, and not in limitation thereof, at any time while the Warrant remains outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of the Warrant at least a number of shares of Common Stock equal to the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the Warrant then outstanding (the "**Required Reserve Amount**") (an "**Authorized Share Failure**"), then the Company shall immediately take all action necessary to increase the Company's authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Warrant then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than sixty (60) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders' approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal.

2. <u>ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES</u>. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Dividends and Splits</u>. Without limiting any provision of Section 4, if the Company, at any time on or after the date hereof, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares of Common Stock into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more classes of its then outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under this paragraph occurs during the period that an Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately to reflect such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Intentionally Left Blank</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Number of Warrant Shares</u>. Simultaneously with any adjustment to the Exercise Price pursuant to only paragraph (a) of this Section 2, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Other Events</u>. In the event that the Company (or any subsidiary) shall take any action to which the provisions hereof are not strictly applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then the Company's board of directors shall in good faith determine and implement an appropriate adjustment in the Exercise Price and the number of Warrant Shares (if applicable) so as to protect the rights of the Holder, provided that no such adjustment pursuant to this Section 2(d) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2, provided further that if the Holder does not accept such adjustments as appropriately protecting its interests hereunder against such dilution, then the Company's board of directors and the Holder shall agree, in good faith, upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose determination shall be final and binding and whose fees and expenses shall be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Calculations</u>. All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

3. <u>RIGHTS UPON DISTRIBUTION OF ASSETS</u>. In addition to any adjustments pursuant to Section 2 above, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "**Distribution**"), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon a complete exercise of this Warrant (without regard to any limitations on exercise hereof) immediately before the date on which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution.

4. <u>PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Purchase Rights</u>. In addition to any adjustments pursuant to Section 2 above, if at any time while the Warrant remains outstanding and before the Expiration Date, the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the "**Purchase Rights**"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon a complete exercise of this Warrant (without regard to any limitations on exercise hereof) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Fundamental Transactions</u>. During the term of this Warrant, the Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 4(b) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder prior to such Fundamental Transaction, such approval not to be unreasonably withheld, conditioned or delayed, including agreements to deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, which is exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock 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 shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such adjustments to the 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). Upon the consummation of each Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of the applicable Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents 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 this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein. Upon consummation of each Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of this Warrant prior to the applicable Fundamental Transaction, such shares of publicly traded Common Stock (or its equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant), as adjusted in accordance with the provisions of this Warrant. Notwithstanding the foregoing, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this Section 4(b) to permit the Fundamental Transaction without the assumption of this Warrant. In addition to and not in substitution for any other rights hereunder, prior to the consummation of each Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a "**Corporate Event**"), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction but prior to the Expiration Date, in lieu of the shares of the Common Stock Shares (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory to the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Application</u>. The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and Corporate Events and shall be applied as if this Warrant (and any such subsequent warrants) were fully exercisable and without regard to any limitations on the exercise of this Warrant.

5. <u>NONCIRCUMVENTION</u>. The Company hereby covenants and agrees that the Company will not, by amendment of its certificate of incorporation, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (a) shall not increase the par value of the Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (b) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon the exercise of this Warrant, and (c) shall, so long as the Warrant is outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of the Warrant, the maximum number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the Warrant then outstanding (without regard to any limitations on exercise).

6. <u>WARRANT HOLDER NOT DEEMED A STOCKHOLDER</u>. Except as otherwise specifically provided herein, the Holder, solely in its capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in its capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

7. <u>REISSUANCE OF WARRANTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transfer of Warrant</u>. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Lost, Stolen or Mutilated Warrant</u>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Exchangeable for Multiple Warrants</u>. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no warrants for fractional shares of Common Stock shall be given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Issuance of New Warrants</u>. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

8. <u>NOTICES;PAYMENTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon each adjustment of the Exercise Price and the number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of such adjustment(s) and (ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of <u>Common Stock</u>, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to holders of shares of <u>Common Stock</u> or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder and (iii) at least ten (10) Trading Days prior to the consummation of any Fundamental Transaction. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its subsidiaries, the Company shall simultaneously file such notice with the SEC pursuant to a Current Report on Form 8-K. It is expressly understood and agreed that the time of execution specified by the Holder in each Exercise Notice shall be definitive and may not be disputed or challenged by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payments</u>. Whenever any payment is to be made by the Company to any Person pursuant to this Warrant, such payment shall be made in lawful money of the United States of America via wire transfer of U.S. Dollars in immediately available funds in accordance with the Holder's wire transfer instructions delivered to the Company on or prior to such payment date or, in the absence of such instructions, by a certified check drawn on the account of the Company and sent via overnight courier service to such Person at such address as previously provided to the Company in writing.

9. <u>AMENDMENT AND WAIVER</u>. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

10. <u>SEVERABILITY</u>. If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

11. <u>GOVERNING LAW</u>. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdiction other than the State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company's obligations to the Holder or to enforce a judgment or other court ruling in favor of the Holder. If service of process is effected pursuant to the above sentence, such service will be deemed sufficient under New York law and the Company shall not assert otherwise. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. **THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.**

12. <u>Reserved</u>.

13. <u>CONSTRUCTION; HEADINGS</u>. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant. Terms used in this Warrant but defined in the other Transaction Documents shall have the meanings ascribed to such terms on the Closing Date in such other Transaction Documents unless otherwise consented to in writing by the Holder.

14. <u>DISPUTE RESOLUTION</u>. In the case of a dispute as to the determination of the Exercise Price or FMV or the arithmetic calculation of the Warrant Shares (as the case may be), the Company or the Holder (as the case may be) shall submit the disputed determinations or arithmetic calculations (as the case may be) via facsimile (a) within two (2) Business Days after receipt of the applicable notice giving rise to such dispute to the Company or the Holder (as the case may be) or (b) if no notice gave rise to such dispute, at any time after the Holder learned of the circumstances giving rise to such dispute (including, without limitation, as to whether any issuance or sale or deemed issuance or sale was an issuance or sale or deemed issuance or sale of Excluded Securities). If the Holder and the Company are unable to agree upon such determination or calculation (as the case may be) of the Exercise Price, or FMV or the number of Warrant Shares (as the case may be) within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the Company or the Holder (as the case may be), then the Company shall, within two (2) Business Days submit via facsimile (i) the disputed determination of the Exercise Price or FMV (as the case may be) to an independent, reputable investment bank selected by the Holder or (ii) the disputed arithmetic calculation of the Warrant Shares to the Company's independent, outside accountant. The Company shall cause at its expense the investment bank or the accountant (as the case may be) to perform the determinations or calculations (as the case may be) and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations or calculations (as the case may be). Such investment bank's or accountant's determination or calculation (as the case may be) shall be binding upon all parties absent demonstrable error.

15. <u>REMEDIES, CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF</u>. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant and the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, exercises and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company's compliance with the terms and conditions of this Warrant (including, without limitation, compliance with Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby upon the exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs in respect thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

16. <u>TRANSFER</u>. This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company.

17. <u>CERTAIN DEFINITIONS</u>. For purposes of this Warrant, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Bloomberg**" means Bloomberg, L.P.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Business Day**" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Closing Sale Price**" means, for any security as of any date, the last closing trade price for such security on the Eligible Market, as reported by Bloomberg, or, if the Eligible Market begins to operate on an extended hours basis and does not designate the closing trade price, then the last trade price of such security prior to 4:00 p.m., New York time, as reported by Bloomberg, or, if the Eligible Market is not the principal securities exchange or trading market for such security, the last trade price of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing does not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for such security by Bloomberg, the average of the ask prices of any market makers for such security as reported in the "pink sheets" by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 14. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Convertible Securities**" means any stock or other security (other than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Eligible Market**" means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Expiration Date**" means the date that is five years from the Issuance Date, or, if such date falls on a day other than a Business Day or on which trading does not take place on the Eligible Market (a "**Holiday**"), the next date that is not a Holiday.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**FINRA**" means the Financial Industry Regulatory Authority, Inc. in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Fundamental Transaction**" means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related transactions, (A) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation) any other Person, or (B) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its respective properties or assets to any other Person, or (C) allow any other Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (D) consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other Person whereby such other Person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination), or (E) (1) reorganize, recapitalize or reclassify the Common Stock, (2) effect or consummate a stock combination, reverse stock split or other similar transaction involving the Common Stock or (3) make any public announcement or disclosure with respect to any stock combination, reverse stock split or other similar transaction involving the Common Stock (including, without limitation, any public announcement or disclosure of (a) any potential, possible or actual stock combination, reverse stock split or other similar transaction involving the Common Stock or (b) board or stockholder approval thereof, or the intention of the Company to seek board or stockholder approval of any stock combination, reverse stock split or other similar transaction involving the Common Stock), or (ii) any "person" or "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder) is or shall become the "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Options**" means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Parent Entity**" of a Person means an entity that, directly or indirectly, controls the applicable Person and whose Common Stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Person**" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (m) "**SEC**" means the United States Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Successor Entity**" means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Trading Day**" means any day on which the Common Stock is traded on the Eligible Market, or, if the Eligible Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded, provided that "Trading Day" shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Voting Stock**" of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers or trustees of such Person (irrespective of whether or not at the time capital stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**FMV**" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Eligible Market, the value shall be deemed to be the highest intra-day or closing price on any trading day on such Eligible Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, (b) if OTCQB or OTCQX is not an Eligible Market, the value shall be deemed to be the highest intra-day or closing price on any trading day on the OTCQB or OTCQX on which the Common Stock is then quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the "Pink Sheets" published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the "OTC Markets Group", the value shall be deemed to be the highest intra-day or closing price on any trading day on the Pink Sheets on which the Common Stock is then quoted as reported by OTC Markets Group (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

[*signature page follows*]

**IN WITNESS WHEREOF,** the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

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| | |
|:---|:---|
| **Droneify Ltd.** | **Droneify Ltd.** |
| By: | /s/ Adam Sax |
| Name: | Adam Sax |
| Title: | CEO |

---

**EXHIBIT A**

**EXERCISE NOTICE**

**TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT TO PURCHASE COMMON STOCK**

**Droneify Ltd.**

The undersigned holder hereby exercises the right to purchase <u>______________</u>Common Stock ("**Warrant Shares**") of **Droneify Ltd.**, a Province of Ontario, Canada corporation (the "**Company**"), evidenced by Warrant to Purchase Common Stock No. <u>___________</u> (the "**Warrant**"). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as:

  a "<u>Cash Exercise</u>" with respect to <br> Warrant Shares; and/or

  a "<u>Cashless Exercise</u>" with respect to <br> Warrant Shares.

In the event that the Holder has elected a Cashless Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder hereby represents and warrants that (i) this Exercise Notice was executed by the Holder on the date set forth below and (ii) if applicable, the FMV as of the date prior to the date of the Exercise Notice was $__________________.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as a "Cash Exercise".]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment of Exercise Price</u>. In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder shall pay the Aggregate Exercise Price in the sum of $_______________to the Company in accordance with the terms of the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Delivery of Warrant Shares</u>. The Company shall deliver to Holder, or its designee or agent as specified below,_____________ Warrant Shares in accordance with the terms of the Warrant. Delivery shall be made to Holder, or for its benefit, as follows:

☐ Check here if requesting delivery as a certificate to the following name and to the following address:

Issue to: _________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

☐ Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

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| |
|:---|
| DTC Participant: |
| DTC Number: |
| Account Number: |

---

Date: ______________<u> </u> ,_____<u> </u>

_________________________

Name of Registered Holder

---

| |
|:---|
| Name: |
| Title: |
| Tax ID: |
| Facsimile: |

---

**EXHIBIT B**

**ACKNOWLEDGMENT**

The Company hereby acknowledges this Exercise Notice and hereby directs________________ to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated __________ , 20___________ , from the Company and acknowledged and agreed to by______________ .

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| |
|:---|
| **Droneify Ltd.** |
| By: |
| Name: |
| Title: |

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## Exhibit 4.6

**Exhibit 4.6**

**THESE WARRANTS AND ANY SHARES ACQUIRED UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE WARRANTS AND SUCH SHARES AND ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE WARRANTS AND SUCH SHARES MAY NOT BE EXERCISED OR TRANSFERRED EXCEPT UPON THE CONDITIONS SPECIFIED IN THIS WARRANT CERTIFICATE, AND NO EXERCISE OR TRANSFER OF THESE WARRANTS OR TRANSFER OF SUCH SHARES SHALL BE VALID OR EFFECTIVE UNLESS AND UNTIL SUCH CONDITIONS SHALL HAVE BEEN COMPLIED WITH.**

**D** **RONEIFY LTD.**

**W** **ARRANT TO PURCHASE COMMON STOCK**

Warrant No.: <u>PA-5</u>

Date of Issuance: February 1, 2023 ("**Issuance Date**")

**Droneify Ltd.**, a Province of Ontario, Canada corporation (the "**Company**"), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, <u>________________</u>, the registered holder hereof or its permitted assigns (the "**Holder**"), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, Company class A common shares, no par value ("**Common Stock**") (including any Warrants to purchase shares issued in exchange, transfer or replacement hereof, the "**Warrant**"), at any time or times on or after the date hereof, to the extent permitted by the applicable SEC and FINRA rules, but not after 11:59 p.m., Eastern Time, on the Expiration Date (as defined below), 7,000 (subject to adjustment as provided herein) fully paid and non-assessable shares of Common Stock (the "**Warrant Shares**").

1. <u>EXERCISE OF WARRANT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Mechanics of Exercise</u>. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after the date hereof, to the extent permitted by the applicable SEC and FINRA rules, in whole or in part, by delivery (whether via facsimile, email, or otherwise) of a written notice, in the form attached hereto as **Exhibit A** (the "**Exercise Notice**"), of the Holder's election to exercise this Warrant, by submitting information including the then- applicable Exercise Price, number of Warrant Shares purchased equal to or lower than the then- applicable number of Warrant Shares and the FMV (collectively, the "**Exercise Information**"). Within one (1) Trading Day following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the Company of an amount equal to the Exercise Price in effect on the date of such exercise multiplied by the number of Warrant Shares as to which this Warrant was so exercised (the "**Aggregate Exercise Price**") in cash or via wire transfer of immediately available funds if, subject to the provisions of Section 1(d), the Holder has not notified the Company in such Exercise Notice that such exercise is made pursuant to a Cashless Exercise (as defined in Section 1(d)) at a time and under circumstances which permit a Cashless Exercise. The Holder shall not be required to deliver the original of this Warrant in order to effect an exercise hereunder. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original of this Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining Warrant Shares shall have the same effect as cancellation of the original of this Warrant after delivery of the Warrant Shares in accordance with the terms hereof. On or before the first (1st) Trading Day following the date on which the Company has received an Exercise Notice, upon checking that the Exercise Information supplied by the Holder is accurate, the Company shall transmit by facsimile or email an acknowledgment of confirmation of receipt of such Exercise Notice, in the form attached hereto as **<u>Exhibit B</u>**, to the Holder and the Company's transfer agent (the "**Transfer Agent**"). On or before the third (3rd) Trading Day following the date on which the Company has received such Exercise Notice and, in the event that the Holder has chosen to exercise in cash, the receipt of the payment of the Aggregate Exercise Price, the Company shall instruct the Transfer Agent to issue to the Holder the number of Warrant Shares to which the Holder is entitled pursuant to such exercise and to, at the sole direction of the Holder pursuant to the Exercise Notice, hold such Warrant Shares in electronic form at the Transfer Agent registered in the Company's share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice), or mail to the Holder or, at the Holder's instruction pursuant to the Exercise Notice, the Holder's agent or designee, in each case, sent by reputable overnight courier to the address as specified in the applicable Exercise Notice, a certificate, registered in the Company's share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice). Upon delivery of an Exercise Notice and in the event that the Holder has chosen to exercise in cash, the Company's receipt of the payment of the Aggregate Exercise Price, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such Warrant Shares (as the case may be). If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the total number of Warrant Shares represented by this Warrant is greater than the number of Warrant Shares being acquired by the Holder upon an exercise, then, at the request of the Holder, the Company shall as soon as practicable and in no event later than three (3) Business Days after any exercise and at its own expense, issue and deliver to the Holder (or its designee) a new Warrant (in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional Warrant Shares are to be issued upon the exercise of this Warrant, but rather the number of Warrant Shares to be issued shall be rounded up to the nearest whole number. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company in respect of the issuance or delivery of Warrant Shares upon the exercise of this Warrant, but the Company shall not be obligated to pay any transfer taxes in respect of this Warrant or such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Price</u>. For purposes of this Warrant, "**Exercise Price**" initially means$7.50, subject to further adjustment as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Company's Failure to Timely Deliver Securities</u>. If the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) Trading Days after receipt of the applicable Exercise Notice, a certificate for the number of Warrant Shares to which the Holder is entitled (or, at the option of the Holders, a book-entry confirmation of the issuance of such Warrant Shares) and register such Warrant Shares on the Company's share register, the Holder will have the right to rescind such exercise. In addition to any other rights available to the Holder, if the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) Trading Days after receipt of the applicable Exercise Notice, a certificate for the number of Warrant Shares to which the Holder is entitled (or, at the option of the Holders, a book-entry confirmation of the issuance of such Warrant Shares) and register such Warrant Shares on the Company's share register and if on or after such third (3rd) Trading Day the Holder (or any other Person in respect, or on behalf, of the Holder) purchases (in an open market transaction or otherwise) Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of Warrant Shares, or a sale of a number of Warrant Shares equal to all or any portion of the number of Warrant Shares, issuable upon such exercise that the Holder so anticipated receiving from the Company, then, in addition to all other remedies available to the Holder, the Company shall, within three (3) Business Days after the Holder's request and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price (including reasonable brokerage commissions and other reasonable out-of-pocket expenses, if any) for the Warrant Shares so purchased (including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the "**Buy-In Price**"), at which point the Company's obligation to so issue and deliver such certificate or credit the Holder's balance account with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder's exercise hereunder (as the case may be) (and to issue such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to so issue and deliver to the Holder a certificate or certificates representing such Warrant Shares or credit the Holder's balance account with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder's exercise hereunder (as the case may be) and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of Warrant Shares multiplied by (B) the lowest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date of the applicable Exercise Notice and ending on the date of such issuance and payment under this clause (ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Cashless Exercise</u>. Notwithstanding anything contained herein to the contrary, the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the "Net Number" of Warrant Shares determined according to the following formula (a "**Cashless Exercise**"), provided that the Holder may elect to cashless exercise pursuant to this Section 1(d) only if B as set forth in the following formula is higher than C as set forth in the following formula:

Net Number = <u>(A x B) - (A x C)</u>

<u> </u>

B

For purposes of the foregoing formula:

A= the total number of shares with respect to which this Warrant is then being exercised.

B= the FMV

C= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Disputes</u>. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with Section 14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Intentionally Left Blank</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Insufficient Authorized Shares</u>. The Company shall at all times keep reserved for issuance under this Warrant a number of shares of Common Stock as shall be necessary to satisfy the Company's obligation to issue Warrant Shares hereunder (without regard to any limitation otherwise contained herein with respect to the number of Warrant Shares that may be acquirable upon exercise of this Warrant). If, notwithstanding the foregoing, and not in limitation thereof, at any time while the Warrant remains outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of the Warrant at least a number of shares of Common Stock equal to the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the Warrant then outstanding (the "**Required Reserve Amount**") (an "**Authorized Share Failure**"), then the Company shall immediately take all action necessary to increase the Company's authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Warrant then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than sixty (60) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders' approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal.

2. <u>ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES</u>. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Dividends and Splits</u>. Without limiting any provision of Section 4, if the Company, at any time on or after the date hereof, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares of Common Stock into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more classes of its then outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under this paragraph occurs during the period that an Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately to reflect such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Intentionally Left Blank</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Number of Warrant Shares</u>. Simultaneously with any adjustment to the Exercise Price pursuant to only paragraph (a) of this Section 2, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Other Events</u>. In the event that the Company (or any subsidiary) shall take any action to which the provisions hereof are not strictly applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then the Company's board of directors shall in good faith determine and implement an appropriate adjustment in the Exercise Price and the number of Warrant Shares (if applicable) so as to protect the rights of the Holder, provided that no such adjustment pursuant to this Section 2(d) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2, provided further that if the Holder does not accept such adjustments as appropriately protecting its interests hereunder against such dilution, then the Company's board of directors and the Holder shall agree, in good faith, upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose determination shall be final and binding and whose fees and expenses shall be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Calculations</u>. All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

3. <u>RIGHTS UPON DISTRIBUTION OF ASSETS</u>. In addition to any adjustments pursuant to Section 2 above, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "**Distribution**"), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon a complete exercise of this Warrant (without regard to any limitations on exercise hereof) immediately before the date on which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution.

4. <u>PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Purchase Rights</u>. In addition to any adjustments pursuant to Section 2 above, if at any time while the Warrant remains outstanding and before the Expiration Date, the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the "**Purchase Rights**"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon a complete exercise of this Warrant (without regard to any limitations on exercise hereof) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Fundamental Transactions</u>. During the term of this Warrant, the Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 4(b) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder prior to such Fundamental Transaction, such approval not to be unreasonably withheld, conditioned or delayed, including agreements to deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, which is exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock 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 shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such adjustments to the 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). Upon the consummation of each Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of the applicable Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents 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 this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein. Upon consummation of each Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of this Warrant prior to the applicable Fundamental Transaction, such shares of publicly traded Common Stock (or its equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant), as adjusted in accordance with the provisions of this Warrant. Notwithstanding the foregoing, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this Section 4(b) to permit the Fundamental Transaction without the assumption of this Warrant. In addition to and not in substitution for any other rights hereunder, prior to the consummation of each Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a "**Corporate Event**"), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction but prior to the Expiration Date, in lieu of the shares of the Common Stock Shares (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory to the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Application</u>. The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and Corporate Events and shall be applied as if this Warrant (and any such subsequent warrants) were fully exercisable and without regard to any limitations on the exercise of this Warrant.

5. <u>NONCIRCUMVENTION</u>. The Company hereby covenants and agrees that the Company will not, by amendment of its certificate of incorporation, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (a) shall not increase the par value of the Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (b) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon the exercise of this Warrant, and (c) shall, so long as the Warrant is outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of the Warrant, the maximum number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the Warrant then outstanding (without regard to any limitations on exercise).

6. <u>WARRANT HOLDER NOT DEEMED A STOCKHOLDER</u>. Except as otherwise specifically provided herein, the Holder, solely in its capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in its capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

7. <u>REISSUANCE OF WARRANTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transfer of Warrant</u>. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Lost, Stolen or Mutilated Warrant</u>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Exchangeable for Multiple Warrants</u>. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no warrants for fractional shares of Common Stock shall be given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Issuance of New Warrants</u>. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

8. <u>NOTICES;PAYMENTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon each adjustment of the Exercise Price and the number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of such adjustment(s) and (ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of <u>Common Stock</u>, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to holders of shares of <u>Common Stock</u> or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder and (iii) at least ten (10) Trading Days prior to the consummation of any Fundamental Transaction. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its subsidiaries, the Company shall simultaneously file such notice with the SEC pursuant to a Current Report on Form 8-K. It is expressly understood and agreed that the time of execution specified by the Holder in each Exercise Notice shall be definitive and may not be disputed or challenged by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payments</u>. Whenever any payment is to be made by the Company to any Person pursuant to this Warrant, such payment shall be made in lawful money of the United States of America via wire transfer of U.S. Dollars in immediately available funds in accordance with the Holder's wire transfer instructions delivered to the Company on or prior to such payment date or, in the absence of such instructions, by a certified check drawn on the account of the Company and sent via overnight courier service to such Person at such address as previously provided to the Company in writing.

9. <u>AMENDMENT AND WAIVER</u>. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

10. <u>SEVERABILITY</u>. If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

**11.** <u>GOVERNING LAW</u>. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdiction other than the State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company's obligations to the Holder or to enforce a judgment or other court ruling in favor of the Holder. If service of process is effected pursuant to the above sentence, such service will be deemed sufficient under New York law and the Company shall not assert otherwise. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. **THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.**

12. <u>Reserved</u>.

13. <u>CONSTRUCTION; HEADINGS</u>. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant. Terms used in this Warrant but defined in the other Transaction Documents shall have the meanings ascribed to such terms on the Closing Date in such other Transaction Documents unless otherwise consented to in writing by the Holder.

14. <u>DISPUTE RESOLUTION</u>. In the case of a dispute as to the determination of the Exercise Price or FMV or the arithmetic calculation of the Warrant Shares (as the case may be), the Company or the Holder (as the case may be) shall submit the disputed determinations or arithmetic calculations (as the case may be) via facsimile (a) within two (2) Business Days after receipt of the applicable notice giving rise to such dispute to the Company or the Holder (as the case may be) or (b) if no notice gave rise to such dispute, at any time after the Holder learned of the circumstances giving rise to such dispute (including, without limitation, as to whether any issuance or sale or deemed issuance or sale was an issuance or sale or deemed issuance or sale of Excluded Securities). If the Holder and the Company are unable to agree upon such determination or calculation (as the case may be) of the Exercise Price, or FMV or the number of Warrant Shares (as the case may be) within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the Company or the Holder (as the case may be), then the Company shall, within two (2) Business Days submit via facsimile (i) the disputed determination of the Exercise Price or FMV (as the case may be) to an independent, reputable investment bank selected by the Holder or (ii) the disputed arithmetic calculation of the Warrant Shares to the Company's independent, outside accountant. The Company shall cause at its expense the investment bank or the accountant (as the case may be) to perform the determinations or calculations (as the case may be) and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations or calculations (as the case may be). Such investment bank's or accountant's determination or calculation (as the case may be) shall be binding upon all parties absent demonstrable error.

15. <u>REMEDIES, CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF</u>. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant and the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, exercises and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company's compliance with the terms and conditions of this Warrant (including, without limitation, compliance with Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby upon the exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs in respect thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

16. <u>TRANSFER</u>. This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company.

17. <u>CERTAIN DEFINITIONS</u>. For purposes of this Warrant, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Bloomberg**" means Bloomberg, L.P.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Business Day**" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Closing Sale Price**" means, for any security as of any date, the last closing trade price for such security on the Eligible Market, as reported by Bloomberg, or, if the Eligible Market begins to operate on an extended hours basis and does not designate the closing trade price, then the last trade price of such security prior to 4:00 p.m., New York time, as reported by Bloomberg, or, if the Eligible Market is not the principal securities exchange or trading market for such security, the last trade price of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing does not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for such security by Bloomberg, the average of the ask prices of any market makers for such security as reported in the "pink sheets" by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 14. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Convertible Securities**" means any stock or other security (other than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Eligible Market**" means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Expiration Date**" means the date that is five years from the Issuance Date, or, if such date falls on a day other than a Business Day or on which trading does not take place on the Eligible Market (a "**Holiday**"), the next date that is not a Holiday.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**FINRA**" means the Financial Industry Regulatory Authority, Inc. in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Fundamental Transaction**" means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related transactions, (A) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation) any other Person, or (B) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its respective properties or assets to any other Person, or (C) allow any other Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (D) consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other Person whereby such other Person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination), or (E) (1) reorganize, recapitalize or reclassify the Common Stock, (2) effect or consummate a stock combination, reverse stock split or other similar transaction involving the Common Stock or (3) make any public announcement or disclosure with respect to any stock combination, reverse stock split or other similar transaction involving the Common Stock (including, without limitation, any public announcement or disclosure of (a) any potential, possible or actual stock combination, reverse stock split or other similar transaction involving the Common Stock or (b) board or stockholder approval thereof, or the intention of the Company to seek board or stockholder approval of any stock combination, reverse stock split or other similar transaction involving the Common Stock), or (ii) any "person" or "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder) is or shall become the "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Options**" means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Parent Entity**" of a Person means an entity that, directly or indirectly, controls the applicable Person and whose Common Stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Person**" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (m) "**SEC**" means the United States Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Successor Entity**" means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Trading Day**" means any day on which the Common Stock is traded on the Eligible Market, or, if the Eligible Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded, provided that "Trading Day" shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Voting Stock**" of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers or trustees of such Person (irrespective of whether or not at the time capital stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**FMV**" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Eligible Market, the value shall be deemed to be the highest intra-day or closing price on any trading day on such Eligible Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, (b) if OTCQB or OTCQX is not an Eligible Market, the value shall be deemed to be the highest intra-day or closing price on any trading day on the OTCQB or OTCQX on which the Common Stock is then quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the "Pink Sheets" published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the "OTC Markets Group", the value shall be deemed to be the highest intra-day or closing price on any trading day on the Pink Sheets on which the Common Stock is then quoted as reported by OTC Markets Group (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

[*signature page follows*]

**IN WITNESS WHEREOF,** the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

**Droneify Ltd.**

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| | |
|:---|:---|
| By: | /s/ Adam Sax |
| Name: | Adam Sax |
| Title: | CEO |

---

**EXHIBIT A**

**EXERCISE NOTICE**

**TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT TO PURCHASE COMMON STOCK**

**Droneify Ltd.**

The undersigned holder hereby exercises the right to purchase _____________ Common Stock ("**Warrant Shares**") of **Droneify Ltd.**, a Province of Ontario, Canada corporation (the "**Company**"), evidenced by Warrant to Purchase Common Stock No. ________ (the "**Warrant**"). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as:

  a "<u>Cash Exercise</u>" with respect to <br> Warrant Shares; and/or

  a "<u>Cashless Exercise</u>" with respect to <br> Warrant Shares.

In the event that the Holder has elected a Cashless Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder hereby represents and warrants that (i) this Exercise Notice was executed by the Holder on the date set forth below and (ii) if applicable, the FMV as of the date prior to the date of the Exercise Notice was $_____________.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as a "Cash Exercise".]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment of Exercise Price</u>. In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder shall pay the Aggregate Exercise Price in the sum of $_________ to the Company in accordance with the terms of the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Delivery of Warrant Shares</u>. The Company shall deliver to Holder, or its designee or agent as specified below, __________Warrant Shares in accordance with the terms of the Warrant. Delivery shall be made to Holder, or for its benefit, as follows:

☐ Check here if requesting delivery as a certificate to the following name and to the following address:

Issue to: _________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

☐ Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

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| |
|:---|
| DTC Participant: |
| DTC Number: |
| Account Number: |

---

Date:<u> </u>__________, ______

_______________________

Name of Registered Holder

---

| |
|:---|
| Name: |
| Title: |
| Tax ID: |
| Facsimile: |

---

**EXHIBIT B**

**ACKNOWLEDGMENT**

The Company hereby acknowledges this Exercise Notice and hereby directs ____________to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated ____________, 20____ , from the Company and acknowledged and agreed to by ____________.

---

| |
|:---|
| **Droneify Ltd.** |
| By: |
| <u> </u> Name: |
| Title: |

---

## Exhibit 4.7

**Exhibit 4.7**

**THESE WARRANTS AND ANY SHARES ACQUIRED UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE WARRANTS AND SUCH SHARES AND ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE WARRANTS AND SUCH SHARES MAY NOT BE EXERCISED OR TRANSFERRED EXCEPT UPON THE CONDITIONS SPECIFIED IN THIS WARRANT CERTIFICATE, AND NO EXERCISE OR TRANSFER OF THESE WARRANTS OR TRANSFER OF SUCH SHARES SHALL BE VALID OR EFFECTIVE UNLESS AND UNTIL SUCH CONDITIONS SHALL HAVE BEEN COMPLIED WITH.**

**Droneify Ltd.**

**Warrant To Purchase Common Stock**

Warrant No.: <u>PA-6</u>

Date of Issuance: February 3, 2023 ("**Issuance Date**")

**Droneify Ltd.**, a Province of Ontario, Canada corporation (the "**Company**"), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, ___________, the registered holder hereof or its permitted assigns (the "**Holder**"), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, Company class A common shares, no par value ("**Common Stock**") (including any Warrants to purchase shares issued in exchange, transfer or replacement hereof, the "**Warrant**"), at any time or times on or after the date hereof, to the extent permitted by the applicable SEC and FINRA rules, but not after 11:59 p.m., Eastern Time, on the Expiration Date (as defined below), 7,000 (subject to adjustment as provided herein) fully paid and non-assessable shares of Common Stock (the "**Warrant Shares**").

1. <u>EXERCISE OF WARRANT</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Mechanics of Exercise</u>. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after the date hereof, to the extent permitted by the applicable SEC and FINRA rules, in whole or in part, by delivery (whether via facsimile, email, or otherwise) of a written notice, in the form attached hereto as **Exhibit A** (the "**Exercise Notice**"), of the Holder's election to exercise this Warrant, by submitting information including the then- applicable Exercise Price, number of Warrant Shares purchased equal to or lower than the then- applicable number of Warrant Shares and the FMV (collectively, the "**Exercise Information**"). Within one (1) Trading Day following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the Company of an amount equal to the Exercise Price in effect on the date of such exercise multiplied by the number of Warrant Shares as to which this Warrant was so exercised (the "**Aggregate Exercise Price**") in cash or via wire transfer of immediately available funds if, subject to the provisions of Section 1(d), the Holder has not notified the Company in such Exercise Notice that such exercise is made pursuant to a Cashless Exercise (as defined in Section 1(d)) at a time and under circumstances which permit a Cashless Exercise. The Holder shall not be required to deliver the original of this Warrant in order to effect an exercise hereunder. Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original of this Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining Warrant Shares shall have the same effect as cancellation of the original of this Warrant after delivery of the Warrant Shares in accordance with the terms hereof. On or before the first (1<sup>st</sup>) Trading Day following the date on which the Company has received an Exercise Notice, upon checking that the Exercise Information supplied by the Holder is accurate, the Company shall transmit by facsimile or email an acknowledgment of confirmation of receipt of such Exercise Notice, in the form attached hereto as **<u>Exhibit B</u>**, to the Holder and the Company's transfer agent (the "**Transfer Agent**"). On or before the third (3<sup>rd</sup>) Trading Day following the date on which the Company has received such Exercise Notice and, in the event that the Holder has chosen to exercise in cash, the receipt of the payment of the Aggregate Exercise Price, the Company shall instruct the Transfer Agent to issue to the Holder the number of Warrant Shares to which the Holder is entitled pursuant to such exercise and to, at the sole direction of the Holder pursuant to the Exercise Notice, hold such Warrant Shares in electronic form at the Transfer Agent registered in the Company's share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice), or mail to the Holder or, at the Holder's instruction pursuant to the Exercise Notice, the Holder's agent or designee, in each case, sent by reputable overnight courier to the address as specified in the applicable Exercise Notice, a certificate, registered in the Company's share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice). Upon delivery of an Exercise Notice and in the event that the Holder has chosen to exercise in cash, the Company's receipt of the payment of the Aggregate Exercise Price, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates evidencing such Warrant Shares (as the case may be). If this Warrant is submitted in connection with any exercise pursuant to this Section 1(a) and the total number of Warrant Shares represented by this Warrant is greater than the number of Warrant Shares being acquired by the Holder upon an exercise, then, at the request of the Holder, the Company shall as soon as practicable and in no event later than three (3) Business Days after any exercise and at its own expense, issue and deliver to the Holder (or its designee) a new Warrant (in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional Warrant Shares are to be issued upon the exercise of this Warrant, but rather the number of Warrant Shares to be issued shall be rounded up to the nearest whole number. The Company will from time to time promptly pay all taxes and charges that may be imposed upon the Company in respect of the issuance or delivery of Warrant Shares upon the exercise of this Warrant, but the Company shall not be obligated to pay any transfer taxes in respect of this Warrant or such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Price</u>. For purposes of this Warrant, "**Exercise Price**" initially means $7.50, subject to further adjustment as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Company's Failure to Timely Deliver Securities</u>. If the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) Trading Days after receipt of the applicable Exercise Notice, a certificate for the number of Warrant Shares to which the Holder is entitled (or, at the option of the Holders, a book-entry confirmation of the issuance of such Warrant Shares) and register such Warrant Shares on the Company's share register, the Holder will have the right to rescind such exercise. In addition to any other rights available to the Holder, if the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) Trading Days after receipt of the applicable Exercise Notice, a certificate for the number of Warrant Shares to which the Holder is entitled (or, at the option of the Holders, a book-entry confirmation of the issuance of such Warrant Shares) and register such Warrant Shares on the Company's share register and if on or after such third (3<sup>rd</sup>) Trading Day the Holder (or any other Person in respect, or on behalf, of the Holder) purchases (in an open market transaction or otherwise) Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of Warrant Shares, or a sale of a number of Warrant Shares equal to all or any portion of the number of Warrant Shares, issuable upon such exercise that the Holder so anticipated receiving from the Company, then, in addition to all other remedies available to the Holder, the Company shall, within three (3) Business Days after the Holder's request and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price (including reasonable brokerage commissions and other reasonable out-of-pocket expenses, if any) for the Warrant Shares so purchased (including, without limitation, by any other Person in respect, or on behalf, of the Holder) (the "**Buy-In Price**"), at which point the Company's obligation to so issue and deliver such certificate or credit the Holder's balance account with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder's exercise hereunder (as the case may be) (and to issue such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to so issue and deliver to the Holder a certificate or certificates representing such Warrant Shares or credit the Holder's balance account with DTC for the number of Warrant Shares to which the Holder is entitled upon the Holder's exercise hereunder (as the case may be) and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of Warrant Shares multiplied by (B) the lowest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date of the applicable Exercise Notice and ending on the date of such issuance and payment under this clause (ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Cashless Exercise</u>. Notwithstanding anything contained herein to the contrary, the Holder may, in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the "Net Number" of Warrant Shares determined according to the following formula (a "**Cashless Exercise**"), provided that the Holder may elect to cashless exercise pursuant to this Section 1(d) only if B as set forth in the following formula is higher than C as set forth in the following formula:

Net Number = <u>(A x B) - (A x C)</u>

B

For purposes of the foregoing formula:

A= the total number of shares with respect to which this Warrant is then being exercised.

B= the FMV

C= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Disputes</u>. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with Section 14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Intentionally Left Blank</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Insufficient Authorized Shares</u>. The Company shall at all times keep reserved for issuance under this Warrant a number of shares of Common Stock as shall be necessary to satisfy the Company's obligation to issue Warrant Shares hereunder (without regard to any limitation otherwise contained herein with respect to the number of Warrant Shares that may be acquirable upon exercise of this Warrant). If, notwithstanding the foregoing, and not in limitation thereof, at any time while the Warrant remains outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of the Warrant at least a number of shares of Common Stock equal to the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the Warrant then outstanding (the "**Required Reserve Amount**") (an "**Authorized Share Failure**"), then the Company shall immediately take all action necessary to increase the Company's authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Warrant then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than sixty (60) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders' approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal.

2. <u>ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES</u>. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Dividends and Splits</u>. Without limiting any provision of Section 4, if the Company, at any time on or after the date hereof, (i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares of Common Stock into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more classes of its then outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under this paragraph occurs during the period that an Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately to reflect such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Intentionally Left Blank</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Number of Warrant Shares</u>. Simultaneously with any adjustment to the Exercise Price pursuant to only paragraph (a) of this Section 2, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Other Events</u>. In the event that the Company (or any subsidiary) shall take any action to which the provisions hereof are not strictly applicable, or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features), then the Company's board of directors shall in good faith determine and implement an appropriate adjustment in the Exercise Price and the number of Warrant Shares (if applicable) so as to protect the rights of the Holder, provided that no such adjustment pursuant to this Section 2(d) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2, provided further that if the Holder does not accept such adjustments as appropriately protecting its interests hereunder against such dilution, then the Company's board of directors and the Holder shall agree, in good faith, upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose determination shall be final and binding and whose fees and expenses shall be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Calculations</u>. All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest 1/100<sup>th</sup> of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

3. <u>RIGHTS UPON DISTRIBUTION OF ASSETS</u>. In addition to any adjustments pursuant to Section 2 above, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "**Distribution**"), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon a complete exercise of this Warrant (without regard to any limitations on exercise hereof) immediately before the date on which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution.

4. <u>PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Purchase Rights</u>. In addition to any adjustments pursuant to Section 2 above, if at any time while the Warrant remains outstanding and before the Expiration Date, the Company grants, issues or sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the "**Purchase Rights**"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon a complete exercise of this Warrant (without regard to any limitations on exercise hereof) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Fundamental Transactions</u>. During the term of this Warrant, the Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 4(b) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder prior to such Fundamental Transaction, such approval not to be unreasonably withheld, conditioned or delayed, including agreements to deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, which is exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock 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 shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such adjustments to the 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). Upon the consummation of each Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of the applicable Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents 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 this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein. Upon consummation of each Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of this Warrant prior to the applicable Fundamental Transaction, such shares of publicly traded Common Stock (or its equivalent) of the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant), as adjusted in accordance with the provisions of this Warrant. Notwithstanding the foregoing, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this Section 4(b) to permit the Fundamental Transaction without the assumption of this Warrant. In addition to and not in substitution for any other rights hereunder, prior to the consummation of each Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common Stock (a "**Corporate Event**"), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction but prior to the Expiration Date, in lieu of the shares of the Common Stock Shares (or other securities, cash, assets or other property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of this Warrant). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory to the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Application</u>. The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and Corporate Events and shall be applied as if this Warrant (and any such subsequent warrants) were fully exercisable and without regard to any limitations on the exercise of this Warrant.

5. <u>NONCIRCUMVENTION</u>. The Company hereby covenants and agrees that the Company will not, by amendment of its certificate of incorporation, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (a) shall not increase the par value of the Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (b) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of Common Stock upon the exercise of this Warrant, and (c) shall, so long as the Warrant is outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of the Warrant, the maximum number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the Warrant then outstanding (without regard to any limitations on exercise).

6. <u>WARRANT HOLDER NOT DEEMED A STOCKHOLDER</u>. Except as otherwise specifically provided herein, the Holder, solely in its capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in its capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

7. <u>REISSUANCE OF WARRANTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transfer of Warrant</u>. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Lost, Stolen or Mutilated Warrant</u>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Exchangeable for Multiple Warrants</u>. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no warrants for fractional shares of Common Stock shall be given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Issuance of New Warrants</u>. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

8. <u>NOTICES;PAYMENTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon each adjustment of the Exercise Price and the number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of such adjustment(s) and (ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of <u>Common Stock</u>, (B) with respect to any grants, issuances or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to holders of shares of <u>Common Stock</u> or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder and (iii) at least ten (10) Trading Days prior to the consummation of any Fundamental Transaction. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its subsidiaries, the Company shall simultaneously file such notice with the SEC pursuant to a Current Report on Form 8-K. It is expressly understood and agreed that the time of execution specified by the Holder in each Exercise Notice shall be definitive and may not be disputed or challenged by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payments</u>. Whenever any payment is to be made by the Company to any Person pursuant to this Warrant, such payment shall be made in lawful money of the United States of America via wire transfer of U.S. Dollars in immediately available funds in accordance with the Holder's wire transfer instructions delivered to the Company on or prior to such payment date or, in the absence of such instructions, by a certified check drawn on the account of the Company and sent via overnight courier service to such Person at such address as previously provided to the Company in writing.

9. <u>AMENDMENT AND WAIVER</u>. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holder. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

10. <u>SEVERABILITY</u>. If any provision of this Warrant is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

11. <u>GOVERNING LAW</u>. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdiction other than the State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company's obligations to the Holder or to enforce a judgment or other court ruling in favor of the Holder. If service of process is effected pursuant to the above sentence, such service will be deemed sufficient under New York law and the Company shall not assert otherwise. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. **THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.**

12. <u>Reserved</u>.

13. <u>CONSTRUCTION; HEADINGS</u>. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any Person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant. Terms used in this Warrant but defined in the other Transaction Documents shall have the meanings ascribed to such terms on the Closing Date in such other Transaction Documents unless otherwise consented to in writing by the Holder.

14. <u>DISPUTE RESOLUTION</u>. In the case of a dispute as to the determination of the Exercise Price or FMV or the arithmetic calculation of the Warrant Shares (as the case may be), the Company or the Holder (as the case may be) shall submit the disputed determinations or arithmetic calculations (as the case may be) via facsimile (a) within two (2) Business Days after receipt of the applicable notice giving rise to such dispute to the Company or the Holder (as the case may be) or (b) if no notice gave rise to such dispute, at any time after the Holder learned of the circumstances giving rise to such dispute (including, without limitation, as to whether any issuance or sale or deemed issuance or sale was an issuance or sale or deemed issuance or sale of Excluded Securities). If the Holder and the Company are unable to agree upon such determination or calculation (as the case may be) of the Exercise Price, or FMV or the number of Warrant Shares (as the case may be) within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the Company or the Holder (as the case may be), then the Company shall, within two (2) Business Days submit via facsimile (i) the disputed determination of the Exercise Price or FMV (as the case may be) to an independent, reputable investment bank selected by the Holder or (ii) the disputed arithmetic calculation of the Warrant Shares to the Company's independent, outside accountant. The Company shall cause at its expense the investment bank or the accountant (as the case may be) to perform the determinations or calculations (as the case may be) and notify the Company and the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations or calculations (as the case may be). Such investment bank's or accountant's determination or calculation (as the case may be) shall be binding upon all parties absent demonstrable error.

15. <u>REMEDIES, CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF</u>. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant and the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, exercises and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required. The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company's compliance with the terms and conditions of this Warrant (including, without limitation, compliance with Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby upon the exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs in respect thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

16. <u>TRANSFER</u>. This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company.

17. <u>CERTAIN DEFINITIONS</u>. For purposes of this Warrant, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Bloomberg**" means Bloomberg, L.P.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Business Day**" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Closing Sale Price**" means, for any security as of any date, the last closing trade price for such security on the Eligible Market, as reported by Bloomberg, or, if the Eligible Market begins to operate on an extended hours basis and does not designate the closing trade price, then the last trade price of such security prior to 4:00 p.m., New York time, as reported by Bloomberg, or, if the Eligible Market is not the principal securities exchange or trading market for such security, the last trade price of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing does not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for such security by Bloomberg, the average of the ask prices of any market makers for such security as reported in the "pink sheets" by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 14. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Convertible Securities**" means any stock or other security (other than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Eligible Market**" means The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Expiration Date**" means the date that is five years from the Issuance Date, or, if such date falls on a day other than a Business Day or on which trading does not take place on the Eligible Market (a "**Holiday**"), the next date that is not a Holiday.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**FINRA**" means the Financial Industry Regulatory Authority, Inc. in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Fundamental Transaction**" means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related transactions, (A) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation) any other Person, or (B) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its respective properties or assets to any other Person, or (C) allow any other Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (D) consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other Person whereby such other Person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination), or (E) (1) reorganize, recapitalize or reclassify the Common Stock, (2) effect or consummate a stock combination, reverse stock split or other similar transaction involving the Common Stock or (3) make any public announcement or disclosure with respect to any stock combination, reverse stock split or other similar transaction involving the Common Stock (including, without limitation, any public announcement or disclosure of (a) any potential, possible or actual stock combination, reverse stock split or other similar transaction involving the Common Stock or (b) board or stockholder approval thereof, or the intention of the Company to seek board or stockholder approval of any stock combination, reverse stock split or other similar transaction involving the Common Stock), or (ii) any "person" or "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder) is or shall become the "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Options**" means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Parent Entity**" of a Person means an entity that, directly or indirectly, controls the applicable Person and whose Common Stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Person**" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**SEC**" means the United States Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Successor Entity**" means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Trading Day**" means any day on which the Common Stock is traded on the Eligible Market, or, if the Eligible Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded, provided that "Trading Day" shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00 p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Voting Stock**" of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers or trustees of such Person (irrespective of whether or not at the time capital stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**FMV**" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Eligible Market, the value shall be deemed to be the highest intra-day or closing price on any trading day on such Eligible Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, (b) if OTCQB or OTCQX is not an Eligible Market, the value shall be deemed to be the highest intra-day or closing price on any trading day on the OTCQB or OTCQX on which the Common Stock is then quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the "Pink Sheets" published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the "OTC Markets Group", the value shall be deemed to be the highest intra-day or closing price on any trading day on the Pink Sheets on which the Common Stock is then quoted as reported by OTC Markets Group (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) during the five trading days preceding the exercise, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

[*signature page follows*]

**IN WITNESS WHEREOF,** the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

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| | |
|:---|:---|
| **Droneify Ltd.** | **Droneify Ltd.** |
| By: | /s/ Adam Sax |
| Name: | Adam Sax |
| Title: | CEO |

---

**EXHIBIT A**

**EXERCISE NOTICE**

**TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS**

**WARRANT TO PURCHASE COMMON STOCK**

**Droneify Ltd.**

The undersigned holder hereby exercises the right to purchase ________ Common Stock ("**Warrant Shares**") of **Droneify Ltd.**, a Province of Ontario, Canada corporation (the "**Company**"), evidenced by Warrant to Purchase Common Stock No _______. (the "**Warrant**"). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as:

  a "<u>Cash Exercise</u>" with respect to <br> Warrant Shares; and/or

  a "<u>Cashless Exercise</u>" with respect to <br> Warrant Shares.

In the event that the Holder has elected a Cashless Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder hereby represents and warrants that (i) this Exercise Notice was executed by the Holder on the date set forth below and (ii) if applicable, the FMV as of the date prior to the date of the Exercise Notice was $_______ .]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as a "Cash Exercise".]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment of Exercise Price</u>. In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder shall pay the Aggregate Exercise Price in the sum of $_______ to the Company in accordance with the terms of the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Delivery of Warrant Shares</u>. The Company shall deliver to Holder, or its designee or agent as specified below, _________Warrant Shares in accordance with the terms of the Warrant. Delivery shall be made to Holder, or for its benefit, as follows:

☐ Check here if requesting delivery as a certificate to the following name and to the following address:

Issue to: _________________________________________________________________________________

_________________________________________________________________________________

_________________________________________________________________________________

☐ Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

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| |
|:---|
| DTC Participant: |
| DTC Number: |
| Account Number: |

---

---

| | |
|:---|:---|
| Date: | , |
| Name of Registered Holder | Name of Registered Holder |

---

---

| |
|:---|
| Name: |
| Title: |
| Tax ID: |
| Facsimile: |

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**EXHIBIT B**

**ACKNOWLEDGMENT**

The Company hereby acknowledges this Exercise Notice and hereby directs________________ to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated __________ , 20_______ , from the Company and acknowledged and agreed to by __________.

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| |
|:---|
| **Droneify Ltd.** |
| By: |
| Name: |
| Title: |

---

## Exhibit 10.1

**Exhibit 10.1**

**SHARE EXCHANGE AGREEMENT**

This Share Exchange Agreement, dated as of September 23, 2022 (this "**Agreement**"), is entered into by and among:

&nbsp;&nbsp;&nbsp;&nbsp;(1) **Droneify Holdings Limited**, a Cayman Islands exempted
company (the "**Company**") with registered office address c/o International Corporation Services Limited, Harbour Place,
P.O Box 472, 103 South Church Street, Grand Cayman KY1-1106, Cayman Islands;

&nbsp;&nbsp;&nbsp;&nbsp;(2) **Droneify Ltd.**, a company incorporated in the Province
of Ontario, Canada ()"**Droneify** "); and

&nbsp;&nbsp;&nbsp;&nbsp;(3) the shareholders of Droneify (each a "**Droneify Shareholder**" and together the "**Droneify Shareholders**") who have executed a counterpart signature page to this Agreement.

**BACKGROUND** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Droneify Shareholders own the number of issued and outstanding class A common shares of Droneify (the "**Droneify Shares**") set forth on Exhibit A hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Company is willing to acquire all of the Droneify Shares, making Droneify a wholly owned subsidiary of the Company, and the Droneify Shareholders desire to exchange all of their Droneify Shares for such number of the Company's authorized but unissued ordinary shares as hereinafter provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Company shall acquire all of the issued and outstanding Droneify Shares held by the Droneify Shareholders in exchange for ordinary shares in the Company (the "**Company Shares**") on a one Droneify Share for one Company Share basis (such exchange of the Company Shares for the Droneify Shares is referred to in this Agreement as the "**Exchange**" and the ratio of Droneify Shares for Company Shares being the "**Exchange Ratio**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. It is the intention of the parties hereto that the Exchange shall qualify as a transaction in securities exempt from registration or qualification under the Securities Act of 1933, as amended, (the "**Securities Act**"), under the applicable securities laws of the state or jurisdiction where the Droneify Shareholders reside and will be made in reliance on an exemption from the registration and prospectus filing requirements contained in Section 2.16 of NI 45-106 – *Prospectus Exemptions* ("**NI 45-106**").

**AGREEMENT** 

NOW, THEREFORE, in consideration of the mutual covenants, agreements, representations and warranties contained in this Agreement, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. EXCHANGE OF SHARES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Exchange of Shares</u>. The Company and each of the Droneify Shareholders hereby agree that each of the Droneify Shareholders shall, on the date hereof or as soon as practicable after the date hereof (the "**Closing Date**"), transfer to the Company all of its Droneify Shares as set out in Exhibit A, and the Company shall allot and issue to each of the Droneify Shareholders the number of the Company Shares set forth in Exhibit A hereto and based upon the Exchange Ratio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Delivery of Droneify Shares and Company Shares</u>. On the Closing Date, automatically, and without any action on the part of the Droneify Shareholders, the Company shall become the sole owner of all of the Droneify Shares and any outstanding certificates representing the Droneify Shares shall cease to so represent Droneify Shares and shall only represent the right to receive Company Shares pursuant to this Agreement. If any Droneify Shares are currently represented by certificates the Droneify Shareholder holding such certificate shall promptly deliver the certificate to the Company's secretary and the physical delivery of such certificate shall be a condition precedent to the Company's obligation to issue the Company Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Exchange of Convertible Securities</u>. The Company shall take such action as is necessary to adopt any and all outstanding equity incentive or similar share plans of Droneify such that each award under any such plan (whether an option, restricted share grant, restricted share unit or otherwise and whether vested or unvested), which is outstanding immediately prior to the Closing Date shall be assumed by the Company and shall be deemed to constitute an award for number of Company Shares receivable for the Droneify Shares subject to such award based upon the Exchange Ratio. The Company shall also take such action as is necessary such that each option, warrant and convertible note or other security exercisable or exchangeable for, or convertible into Droneify Shares, whether vested or unvested, which is outstanding immediately prior to the Closing Date (each, a "**Droneify Convertible Security**"), shall be assumed by the Company and shall be deemed to constitute an option, warrant or convertible security, as the case may be, to acquire the appropriate number of Company Shares based upon the Exchange Ratio. All terms and conditions of such Company options, warrants and/or convertible securities shall be the same as the Droneify Convertible Securities that have been converted, as such Droneify Convertible Securities existed immediately prior to the date hereof, with full credit being given for any vesting that has occurred prior to the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. REPRESENTATIONS AND WARRANTIES OF THE DRONEIFY SHAREHOLDERS.

Each of the Droneify Shareholders hereby severally (and not jointly) represents and warrants to the Company with respect to itself, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Good Title</u>. The Droneify Shareholder is the record and beneficial owner, and has good title to its Droneify Shares, with the right and authority to sell and deliver such Droneify Shares. Upon delivery of the certificate or certificates duly assigned, representing the same as herein contemplated and/or upon registering of the Company as the new owner of such Droneify Shares in the share register of Droneify, the Company will receive good title to such Droneify Shares, free and clear of all liens, security interests, pledges, equities and claims of any kind, voting trusts, shareholder agreements and other encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Organization</u>. If an entity, the Droneify Shareholder is duly organized and validly existing in its jurisdiction of organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Power and Authority</u>. The Droneify Shareholder has the legal power and authority to execute and deliver this Agreement and to perform its obligations hereunder. All acts required to be taken by the Droneify Shareholder to enter into this Agreement and to carry out the Exchange have been properly taken. This Agreement constitutes a legal, valid and binding obligation of the Droneify Shareholder, enforceable against the Droneify Shareholder in accordance with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Conflicts</u>. The execution and delivery of this Agreement by the Droneify Shareholder and the performance by the Droneify Shareholder of its obligations hereunder in accordance with the terms hereof: (i) will not require the consent of any third party or any federal, state, local or foreign government or any court of competent jurisdiction, administrative agency or commission or other governmental authority or instrumentality, domestic or foreign under any statute, law, ordinance, rule, regulation, order, writ, injunction, judgment, or decree; (ii) will not violate any laws applicable to the Droneify Shareholder; and (iii) will not violate or breach any contractual obligation to which the Droneify Shareholder is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Litigation</u>. There is no pending proceeding against the Droneify Shareholder that involves the Droneify Shares or that challenges, or may have the effect of preventing, delaying or making illegal, or otherwise interfering with, the Exchange and, to the knowledge of the Droneify Shareholder, no such proceeding has been threatened, and no event or circumstance exists that is reasonably likely to give rise to or serve as a basis for the commencement of any such proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Purchase Entirely for Own Account</u>. The Droneify Shareholder is acquiring the Company Shares proposed to be acquired hereunder for investment for its own account and not with a view to the resale or distribution of any part thereof, and the Droneify Shareholder has no present intention of selling or otherwise distributing the Company Shares, except in compliance with applicable securities laws.

&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) <u>Available Information</u>. The Droneify Shareholder has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of investment in the Company and has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect to the Company Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Non-Registration</u>. The Droneify Shareholder understands that the Company Shares have not been registered under the Securities Act and, if issued in accordance with the provisions of this Agreement, will be issued by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Droneify Shareholder's representations as expressed herein. The non-registration shall have no prejudice with respect to any rights, interests, benefits and entitlements attached to the Company Shares in accordance with the Company's memorandum and articles of association or the laws of its jurisdiction of incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Restricted Securities</u>. The Droneify Shareholder understands that the Company Shares are characterized as "restricted securities" under the Securities Act in as much as this Agreement contemplates that, if acquired by the Droneify Shareholder pursuant hereto, the Company Shares would be acquired in a transaction not involving a public offering. The issuance of the Company Shares hereunder is being effected in reliance upon an exemption from registration afforded under Section 4(a)(2) of the Securities Act for transactions by an issuer not involving a public offering. The Droneify Shareholder further acknowledges that if the Company Shares are issued to the Droneify Shareholder in accordance with the provisions of this Agreement, such Company Shares may not be resold without registration under the Securities Act or the existence of an exemption therefrom. The Droneify Shareholder represents that it is familiar with Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Legends</u>. It is understood that the Company Shares, if certificated, will bear the following legend or one that is substantially similar to the following legend and if not certificated a book entry note with the following legend relating to the Company Shares shall be included in the official ledger of the Company:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR (2) PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, IN WHICH CASE THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE COMPANY AN OPINION OF COUNSEL, WHICH COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED IN THE MANNER CONTEMPLATED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Additional Legend</u>. Additionally, the Company Shares will bear any legend required by the "blue sky" laws of any state to the extent such laws are applicable to the securities represented by the certificate so legended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Investment Representations</u>. Each of the Droneify Shareholders represents and warrants to the Company as follows: The Company Shares are being acquired by the Droneify Shareholder for its account, for investment purposes and not with a view to the sale or distribution of all or any part of the Company Shares, nor with any present intention to sell or in any way distribute the same, as those terms are used in the Securities Act, and the rules and regulations promulgated thereunder. The Droneify Shareholder has sufficient knowledge and experience in financial matters so as to be capable of evaluating the merits and risks of purchasing the Company Shares. The Droneify Shareholder has reviewed copies of such documents and other information as the Droneify Shareholder has deemed necessary in order to make an informed investment decision with respect to its acquisition of the Company Shares. The Droneify Shareholder understands that the Company Shares may not be sold, transferred or otherwise disposed of without registration under the Securities Act or the availability of an exemption therefrom, and that in the absence of an effective registration statement covering the Company Shares or an available exemption from registration under the Securities Act, the Company Shares must be held indefinitely. Further, the Droneify Shareholder understands and has the financial capability of assuming the economic risk of an investment in the Company Shares for an indefinite period of time. The Droneify Shareholder has been advised by the Company that the Droneify Shareholder will not be able to dispose of the Company Shares, or any interest therein, without first complying with the relevant provisions of the Securities Act and any applicable state securities laws. The Droneify Shareholder understands that the provisions of Rule 144 promulgated under the Securities Act, permitting the routine sales of the securities of certain issuers subject to the terms and conditions thereof, are not currently, and may not hereafter be, available with respect to the Company Shares. The Droneify Shareholder acknowledges that the Company is under no obligation to register the Company Shares or to furnish any information or take any other action to assist the undersigned in complying with the terms and conditions of any exemption which might be available under the Securities Act or any state securities laws with respect to sales of the Company Shares in the future. The Droneify Shareholder is an "Accredited Investor" as defined in rule 501(a) of Regulation D of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Market Standoff</u>. In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act, including the Company's initial public offering, each Droneify Shareholder agrees that no Droneify Shareholder shall directly or indirectly sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose of or transfer, or agree to engage in any of the foregoing transactions with respect to, any Company Shares without the prior written consent of the Company or its managing underwriter. Such restriction shall be in effect for such period of time following the date of the final prospectus for the offering as may be requested by the Company or such underwriter. In no event, however, shall such period exceed twelve (12) months plus such additional period as may reasonably be requested by the Company or such underwriter to accommodate regulatory restrictions on (i) the publication or other distribution of research reports or (ii) analyst recommendations and opinions. Each Droneify Shareholder, in its capacity as a security holder of the Company as a result of the Exchange, agrees to execute and deliver any lock up agreement required by the underwriter for the Company's initial public offering and all other documents and instruments and take all other actions necessary in connection with any such lock up agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Droneify Shareholders that are Not United States Persons</u>. If the Droneify Shareholder is not a "U.S. Person," as such term is defined in Regulation S promulgated under the Securities Act, the Droneify Shareholder hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Company Shares or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the exchange of the Company Shares, (ii) any foreign exchange restrictions applicable to such exchange, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the exchange, holding, redemption, sale, or transfer of the Company Shares. The Droneify Shareholder's subscription and payment for and continued beneficial ownership of the Company Shares will not violate any applicable securities or other laws of the Droneify Shareholder's jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Further Documentation</u>. The Droneify Shareholders shall, upon request by Droneify, provide any additional certificates or representations required to establish an exemption from applicable securities legislation (including those exemptions promulgated under NI 45-106) prior to the transfer of any Droneify Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. REPRESENTATIONS AND WARRANTIES OF DRONEIFY.

Droneify hereby represents and warrants to the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization, Standing and Power</u>. Droneify is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is organized and is entitled to own or lease its properties and to carry on its business as and in the places where such properties are now owned, leased, or operated and such business is now conducted. Droneify is duly licensed or qualified and in good standing as a foreign corporation where the character of the properties owned by it or the nature of the business transacted by it make such licenses or qualifications necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Authority; Execution and Delivery; Enforceability</u>. Droneify has all requisite corporate power and authority to execute and deliver this Agreement and to consummate the Exchange. The execution and delivery by Droneify of this Agreement and the consummation by Droneify of the Exchange have been duly authorized and approved by the board of directors of Droneify and no other corporate proceedings on the part of Droneify are necessary to authorize this Agreement and the Exchange. When executed and delivered, this Agreement will be enforceable against Droneify in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Breach</u>. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby will not (i) violate any provision of the articles of incorporation, bylaws or other constituent instruments of Droneify; (ii) violate, conflict with or result in the breach of any of the terms of, result in a material modification of, otherwise give any other contracting party the right to terminate, or constitute (or with notice or lapse of time or both constitute) a default under, any contract or other agreement to which Droneify is a party or by or to which Droneify or any of its assets or properties may be bound or subject; (iii) violate any order, judgment, injunction, award or decree of any court, arbitrator or governmental or regulatory body against, or binding upon Droneify, or upon the properties or business of Droneify; or (iv) violate any statute, law or regulation of any jurisdiction applicable to the transactions contemplated herein which could have a materially adverse effect on the business or operations of Droneify.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Actions and Proceedings</u>. There is no action, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition) or investigation pending or threatened in writing before or by any court, arbitrator, governmental or administrative agency, regulatory authority (federal, state, county, local or foreign), stock market, stock exchange or trading facility against or affecting Droneify or any of its respective properties which adversely affects or challenges the legality, validity or enforceability of any of this Agreement or the Droneify Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

The Company hereby represents and warrants to Droneify and the Droneify Shareholders as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization, Standing and Power</u>. The Company is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is organized and is entitled to own or lease its properties and to carry on its business as and in the places where such properties are now owned, leased, or operated and such business is now conducted. The Company is duly licensed or qualified and in good standing as a foreign corporation where the character of the properties owned by it or the nature of the business transacted by it make such licenses or qualifications necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Authority; Execution and Delivery; Enforceability</u>. The Company has all requisite corporate power and authority to execute and deliver this Agreement and to consummate the Exchange. The execution and delivery by the Company of this Agreement and the consummation by the Company of the Exchange have been duly authorized and approved by the board of directors of the Company and no other corporate proceedings on the part of the Company are necessary to authorize this Agreement and the Exchange. When executed and delivered, this Agreement will be enforceable against the Company in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Capital Structure</u>. The authorized capitalization of the Company consists of 500,000,000 shares, one (1) of which will be issued and outstanding immediately prior to the Closing Date. Except as set forth above, no shares or other voting securities of the Company are issued, reserved for issuance or outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Breach</u>. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby will not (i) violate any provision of the memorandum and articles of association or other constituent instruments of the Company; (ii) violate, conflict with or result in the breach of any of the terms of, result in a material modification of, otherwise give any other contracting party the right to terminate, or constitute (or with notice or lapse of time or both constitute) a default under, any contract or other agreement to which the Company is a party or by or to which the Company or any of its assets or properties may be bound or subject; (iii) violate any order, judgment, injunction, award or decree of any court, arbitrator or governmental or regulatory body against, or binding upon the Company, or upon the properties or business of the Company; or (iv) violate any statute, law or regulation of any jurisdiction applicable to the transactions contemplated herein which could have a materially adverse effect on the business or operations of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Actions and Proceedings</u>. There is no action, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition) or investigation pending or threatened in writing before or by any court, arbitrator, governmental or administrative agency, regulatory authority (federal, state, county, local or foreign), stock market, stock exchange or trading facility against or affecting the Company or any of its respective properties which adversely affects or challenges the legality, validity or enforceability of any of this Agreement or the Company Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. MISCELLANEOUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>New Shareholders Agreement</u>. Each Droneify Shareholder acknowledges that it is currently a party to that certain Shareholders Agreement, dated as of March 31, 2017, as amended (the "**Existing Shareholders Agreement**"), among the Droneify Shareholders and Droneify. In connection with the Exchange, each Droneify Shareholder will be entering into a new shareholders agreement with the Company in the form previously distributed to the Droneify Shareholders (the "**New Shareholders Agreement**"). The New Shareholders Agreement is substantially similar to the Existing Shareholders Agreement, but it is being entered into with the Company instead of Droneify. Each Droneify Shareholder acknowledges receipt of a copy of the New Shareholders Agreement attached as Exhibit B and agrees to execute and deliver the New Shareholders Agreement and to execute all other documents and instruments and take all other actions necessary in connection with the New Shareholders Agreement and hereby agrees to be bound by the terms and conditions of the New Shareholders Agreement as a "Shareholder" thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Waivers</u>. The waiver of a breach of this Agreement or the failure of any party hereto to exercise any right under this Agreement shall in no event constitute waiver as to any future breach whether similar or dissimilar in nature or as to the exercise of any further right under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Amendment</u>. This Agreement may be amended or modified only by an instrument of equal formality signed by Company, a majority in interest of the Droneify Shareholders and Droneify.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Assignment</u>. This Agreement is not assignable except by operation of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Notices</u>. Until otherwise specified in writing, the mailing addresses of the parties of this Agreement shall be as set forth on the signature pages to this Agreement. Any notice or statement given under this Agreement shall be deemed to have been given if sent by registered mail addressed to the other party at the address indicated above or at such other address which shall have been furnished in writing to the addressor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Governing Law</u>. This Agreement shall be construed, and the legal relations among the parties determined, in accordance with the laws of the Cayman Islands, thereby precluding any choice of law rules which may direct the application of the laws of any other jurisdiction.

&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) <u>Publicity</u>. Save for any publication or other information requiring disclosure as part of the Company's initial public offering or thereafter, no publicity release or announcement concerning this Agreement or the transactions contemplated hereby shall be issued by any party hereto at any time from the signing hereof without advance approval in writing of the form and substance thereof by the other parties, which in the case of the Droneify Shareholders, shall mean a majority of them in interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Entire Agreement</u>. This Agreement (including the exhibits hereto) contains the entire agreement among the parties with respect to the Exchange and related transactions, and supersedes all prior agreements, written or oral, with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Headings</u>. The headings in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Severability of Provisions</u>. The invalidity or unenforceability of any term, phrase, clause, paragraph, restriction, covenant, agreement or other provision of this Agreement shall in no way affect the validity or enforcement of any other provision or any part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Counterparts; Facsimile or Email Execution</u>. This Agreement may be executed in any number of counterparts, each of which when so executed, shall constitute an original copy hereof, but all of which together shall consider but one and the same document. Facsimile, email or other means of electronic transmission execution and delivery of this Agreement is legal, valid and binding for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Expenses</u>. Each party hereto agrees to pay its own costs and expenses incurred in negotiating this Agreement and consummating the transactions described herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Further Assurances</u>. Each of the parties shall execute such documents and other papers and take such further actions as may be required or desirable to carry out the provisions hereof and the transactions contemplated hereby. Each of the parties hereto understands and acknowledges that the Exchange is being effected in connection with a proposed firm commitment underwritten initial public offering (the "**Public Offering**") of the Company's ordinary shares and each Droneify Shareholder agrees to cooperate and facilitate such Public Offering, including by completing any required director and officer questionnaires, FINRA questionnaires or similar questionnaires, providing consents and background information to permit background checks to be conducted by the underwriter for the Public Offering, providing information to satisfy the underwriter's due diligence requirements, including the underwriter's know your client and anti-money laundering obligations and take all such similar action and providing all such similar information as may be requested by the Company or its underwriter in connection with the Public Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Consent to Receive Notices by Electronic Transmission</u>. Each Droneify Shareholder hereby consents to the delivery of any corporate notices relating to the Company by electronic transmission to their email address as set forth on the signature page to this Agreement for all purposes and to the fullest extent permitted by law, including Section 8(1) of the Electronic Transactions Act (2003) Revision and the Company's memorandum and articles of association. This consent applies to any and all notices required to be given to the Droneify Shareholders for any purpose, including under the 8(1) of the Electronic Transactions Act (2003) Revision and/or the Company's memorandum and articles of association or otherwise. All notices sent by electronic mail will be considered given and received in accordance with the Company's memorandum and articles of association.

[*Signature page follows*]

&nbsp;&nbsp;&nbsp;&nbsp;**IN WITNESS WHEREOF**, the parties have executed this Share Exchange Agreement on the date first above written.

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|:---|:---|
| **DRONEIFY HOLDINGS LIMITED** | **DRONEIFY HOLDINGS LIMITED** |
| By: |  |
| Name: | Adam Sax |
| Title: | Chief Executive Officer |

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|:---|
| Address: |
| Email: |

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| | |
|:---|:---|
| **DRONEIFY LTD.** | **DRONEIFY LTD.** |
| By: |  |
| Name: | Adam Sax |
| Title: | Chief Executive Officer |

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|:---|
| Address: |
| Email: |

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|:---|
| **DRONEIFY SHAREHOLDERS:** |
| Print Name Above |
| Sign Above |

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*If signer is an entity, specify name and title of authorized signer below:*

Name:   <br> Title:  

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|:---|
| Address: |
| Email: |

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## Exhibit 10.2

**Exhibit 10.2**

**THE SECURITIES TO BE ISSUED PURSUANT TO THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("<u>SECURITIES ACT</u>"), OR ANY OTHER APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD UNLESS REGISTERED THEREUNDER OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.**

**THE SECURITIES TO BE ISSUED PURSUANT TO THIS AGREEMENT HAVE NOT BEEN QUALIFIED BY A PROSPECTUS IN CANADA AND THERE ARE RESTRICTIONS WITH RESPECT TO TRADING IN, AND THE RESTRICTED PERIOD OR STATUTORY HOLD PERIOD APPLICABLE TO THE SECURITIES IMPOSED BY CANADIAN SECURITIES LEGISLATION AND REGULATIONS OF, AND THE INSTRUMENTS, POLICIES, RULES, ORDERS, CODES, NOTICES AND INTERPRETATION NOTES OF THE CANADIAN SECURITIES REGULATORY AUTHORITIES IN EACH OF THE PROVINCES AND TERRITORIES OF CANADA, AS APPLICABLE.**

**SUBSCRIPTION AGREEMENT**

**(This "Agreement")**

Droneify Ltd.

103-482 South Service Road East

Oakville, ON Canada L6J 2X6

Attn: Adam Sax, CEO

Ladies and Gentlemen:

**<u>Subscription</u>**. The undersigned (sometimes referred to herein as the "<u>Investor</u>" or "<u>I</u>" or "<u>me</u>") hereby subscribes for and agrees to purchase the Securities (as defined below) of Droneify Ltd., a Province of Ontario, Canada corporation (the "<u>Company</u>"), for the purchase price (the "<u>Purchase Price</u>") set forth on the signature page hereto, on the terms and conditions described herein, in the investor package of which this Agreement forms a part (the "<u>Investor Package</u>") and in the other exhibits to the Investor Package (collectively, the "<u>Offering Documents</u>"). Terms not defined herein are as defined elsewhere in the Offering Documents. The Company is seeking to raise a minimum of $250,000 (the "<u>Minimum Offering Amount</u>") and maximum of $1,500,000 (the "<u>Maximum Offering Amount</u>") in this Offering. The minimum amount of investment required from any one subscriber to participate in this Offering is $25,000, however, the Company reserves the right, in its sole discretion, to accept subscriptions in an amount less than this amount. All references to $ mean United States dollars. Boustead Securities, LLC ("<u>Boustead</u>") and the Company, in their sole discretion, may accept subscriptions in excess of the Maximum Offering Amount. All references to $ means United States dollars. The undersigned acknowledges that the Company has engaged Boustead as its exclusive placement agent in connection with this Offering.

**1. <u>Description of Securities; Risk Factors</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Description of Securities</u>. The Company is offering (the " <u>Offering</u> ") to the Investor
 Class A common shares, no par value per share, of the Company ("Class A Common Shares"
 or " <u>Shares</u> " or " <u>Securities</u> ") at a purchase price of
 $1.00 per Share. For a more detailed description of the Securities see the Term Sheet attached
 as <u>Exhibit C</u> to the Subscription Package.

This Offering is being conducted in advance of the Company's intended initial public offering ("<u>IPO</u>") of Ordinary Shares ("Ordinary Shares") of Cayman Holdco (as defined herein) and listing such Ordinary Shares for trading on the Nasdaq Capital Market or other national securities exchange.

Under the Company's engagement letter with Boustead, dated June 21, 2022 (the "<u>Engagement Letter</u>"), Boustead has been engaged as our exclusive financial advisor for the 18-month term of the Engagement Letter. In addition, Boustead has expressed its intent to enter into an Underwriting Agreement with the Company to act as the lead underwriter for the proposed IPO on a "firm commitment" basis. There can be no assurance that we and Boustead will be able to agree on the terms of such Underwriting Agreement or that our proposed IPO will be successfully consummated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Risks Related to the Investment in the Securities</u>. Investing in the Securities involves a high
 degree of risk. Before investing, Investors should carefully consider the Business Summary
 of the Company (<u>Exhibit D</u> to the Investor Package), the Risk Factors related to the
 Company's business (<u>Exhibit E</u> to the Investor Package) and the Company Investor
 Presentation (<u>Exhibit F</u> to the Investor Package) together with the other information
 contained in Offering Documents.

**2. <u>Purchase</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. I
 hereby agree to tender to Sutter Securities, Inc. (the " <u>Escrow Agent</u> "),
 (i) by check or wire transfer of immediately available funds (to a bank account and related
 wire instructions provided in the Investor Package or otherwise provided to me upon my request)
 made payable to "Sutter Securities, Inc., as Escrow Agent for Droneify Ltd."
 for such number of Shares indicated on the signature page hereto, (ii) an executed copy of
 this Subscription Agreement, and (iii) an executed copy of my Investor Representation and
 Suitability Questionnaire<sup>1</sup>, attached as <u>Exhibit B</u> to the Investor Package.
 Funds will be held in an escrow account maintained by the Escrow Agent (the " <u>Escrow Account</u> "), as set forth in more detail below pending the initial Closing of the
 Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The
 Offering is for a minimum offering amount of $250,000 (the " <u>Minimum Offering Amount</u> ")
 and a maximum offering of $1,500,000 (the " <u>Maximum Offering Amount</u> ").
 All subscriptions to purchase Securities will be held in the Escrow Account, which is a noninterest-bearing
 maintained by the Escrow Agent. The subscriptions will remain in the Escrow Account until
 subscriptions for the Minimum Offering Amount are raised. Boustead and the Company, in their
 sole discretion, may accept subscriptions in excess of the Maximum Offering Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. This
 Offering will continue until the earlier of (a) the sale of 1,500,000 Shares for $1,500,000
 of gross proceeds being the Maximum Offering Amount, or (b) September 30, 2022, unless such
 date is extended by the Company and Boustead in their sole discretion (the " <u>Termination Date</u> "). Upon the earlier of a Closing (defined below) on my subscription or completion
 of the Offering, I will be notified promptly by the Company as to whether my subscription
 has been accepted by the Company.

**3. <u>Acceptance or Rejection of Subscription</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. I
 understand and agree that the Company reserves the right to reject this subscription for
 the Securities, in whole or in part, for any reason and at any time prior to the Closing
 (defined below) of my subscription.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. In
 the event the Company rejects this subscription, my subscription payment will be promptly
 returned to me without interest or deduction and this Subscription Agreement shall be of
 no force or effect. In the event my subscription is accepted and the Offering is completed,
 the subscription funds submitted by me shall be released to the Company.

1 Investors other than Canadian Investors shall complete the "Investor Representation and Suitability Questionnaire (for non-Canadian Subscribers)". Canadian investors shall complete the "Investor Representation and Suitability Questionnaire (for Canadian Subscribers).

**4. <u>Closing</u>**. The closing ("<u>Closing</u>") of this Offering may occur at any time and from time to time on or before the Termination Date. The Company must achieve the $250,000 Minimum Offering Amount prior to conducting an initial Closing (the "<u>Initial Closing</u>"). Upon receipt of the Minimum Amount, an Initial Closing will be held, and all funds will be released from the Escrow Account and paid to the Company, less professional fees and compensation paid to Boustead and syndicate members, if any. Thereafter, additional Closings will be held as funds are received up to the earlier to occur of receipt of the $1,500,000 Maximum Offering Amount (or increased amount agreed to by the Company and Boustead) or the Termination Date. Boustead and the Company, in their sole discretion, may accept subscriptions in excess of the Maximum Offering Amount. Pending receipt of the Minimum Offering Amount, all subscription funds will be placed in escrow with the Escrow Agent. If, for any reason, the Minimum Offering Amount of subscriptions are not received by the Termination Date (as the same may be extended by Boustead and the Company), all escrowed funds will be returned to subscribers, without interest or deduction. The Securities subscribed for herein shall not be deemed issued to or owned by me until one copy of this Subscription Agreement has been executed by me and countersigned by the Company and the Closing with respect to such Securities has occurred. Affiliates of the Company or Boustead, including officers, directors and existing stockholders of the Company and representatives of Boustead, may invest in this Offering and their funds will be counted toward the Company achieving the Minimum Amount. In addition, the Company may allow affiliates of the Company, Boustead or other investors to pay the subscription price through the cancellation of indebtedness or other obligations owed to such investors by the Company and such investment amount would also be counted toward achieving the Minimum Amount. ***I acknowledge and agree that Boustead and the Company may unilaterally, without my consent, agree to extend the Termination Date by which the Minimum Offering Amount must be raised for an Initial Closing to occur and Boustead and the Company shall not be required to return the escrowed funds to me if there is any such extension.***

**5. <u>Disclosure</u>**. Because this offering is limited to "accredited investors" as defined in Section 2(15) of the Securities Act, and Rule 501 promulgated thereunder, in reliance upon the exemption contained in Section 4(a)(2) of the Securities Act and applicable state securities laws, or as defined under National Instrument 45-106 – *Prospectus Exemptions* ("**NI 45-106**"), the Securities are being sold without registration under the Securities Act. I acknowledge receipt of the Offering Documents and represent that I have carefully reviewed and understand the Offering Documents, including all exhibits attached hereto. I have received all information and materials regarding the Company that I have requested. I fully understand that the Company has a limited financial and operating history and that the Securities are speculative investments which involve a high degree of risk, including the potential loss of my entire investment. I fully understand the nature of the risks involved in purchasing the Securities and I am qualified to make such investment based on my knowledge of and experience in investing in securities of this type. I have carefully considered the potential risks relating to the Company and purchase of its Securities and have, in particular, reviewed each of the risks set forth in the Offering Documents. Both my advisors and I have had the opportunity to ask questions of and receive answers from representatives of the Company or persons acting on its behalf concerning the Company and the terms and conditions of a proposed investment in the Company and my advisors and I have also had the opportunity to obtain additional information necessary to verify the accuracy of information furnished about the Company. Accordingly, I have independently evaluated the risks of purchasing the Securities.

**6. <u>Investor Representations and Warranties</u>**. I acknowledge, represent and warrant to, and agree with, the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. I
 am aware that my investment involves a high degree of risk as disclosed in the Offering Documents
 and have carefully read the Offering Documents, and I understand that by signing this Subscription
 Agreement I am agreeing to be bound by all of the terms and conditions of the Offering Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. I
 acknowledge and am aware that there is no assurance as to the future performance of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. I
 acknowledge that there may be certain adverse tax consequences to me in connection with my
 purchase of Securities, and the Company has advised me to seek the advice of experts in such
 areas prior to making this investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. I
 am purchasing the Securities for my own account for investment purposes only and not with
 a view to or for sale in connection with the distribution of the Securities, nor with any
 present intention of selling or otherwise disposing of all or any part of the foregoing securities.
 I agree that I must bear the entire economic risk of my investment for an indefinite period
 of time because, among other reasons, the Securities have not been registered under the Securities
 Act or under the securities laws of any state and, therefore, cannot be resold, pledged,
 assigned or otherwise disposed of unless they are subsequently registered under the Securities
 Act and under applicable securities laws of certain states or an exemption from such registration
 is available. I hereby authorize the Company to place a restrictive legend on the Securities
 that are issued to me.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. I
 recognize that the Securities, as an investment, involve a high degree of risk including,
 but not limited to, the risk of economic losses from operations of the Company and the total
 loss of my investment. I believe that the investment in the Securities is suitable for me
 based upon my investment objectives and financial needs, and I have adequate means for providing
 for my current financial needs and contingencies and have no need for liquidity with respect
 to my investment in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. I
 have been given access to full and complete information regarding the Company and have utilized
 such access to my satisfaction for the purpose of obtaining information in addition to, or
 verifying information included in, the Offering Documents, and I have either met with or
 been given reasonable opportunity to meet with officers of the Company for the purpose of
 asking questions of, and receiving answers from, such officers concerning the terms and conditions
 of the offering of the Securities and the business and operations of the Company and to obtain
 any additional information, to the extent reasonably available.

&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. I
 have such knowledge and experience in financial and business matters as to be capable of
 evaluating the merits and risks of an investment in the Securities and have obtained, in
 my judgment, sufficient information from the Company to evaluate the merits and risks of
 an investment in the Company. I have not utilized any person as my purchaser representative
 as defined in Regulation D under the Securities Act in connection with evaluating such merits
 and risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. I
 have relied solely upon my own investigation in deciding to invest in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. I
 have received no representation or warranty from the Company or any of its officers, directors,
 employees or agents in respect of my investment in the Company and I have received no information
 (written or otherwise) from them relating to the Company or its business other than as set
 forth in the Offering Documents. I am not participating in the offer as a result of or subsequent
 to (but not limited to): (i) any advertisement, article, notice or other communication published
 in any newspaper, magazine or similar media or on the Internet or broadcast over television,
 radio or the Internet or (ii) any seminar or meeting whose attendees have been invited by
 any general solicitation or general advertising.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. I
 have had full opportunity to ask questions and to receive satisfactory answers concerning
 the offering and other matters pertaining to my investment and all such questions have been
 answered to my full satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. I
 have been provided an opportunity to obtain any additional information concerning the offering
 and the Company and all other information to the extent the Company possesses such information
 or can acquire it without unreasonable effort or expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. I
 am an "accredited investor" as defined in Section 2(15) of the Securities Act
 and in Rule 501 promulgated thereunder and have attached the completed Investor Questionnaire
 to indicate my "accredited investor" status. I can bear the entire economic risk
 of the investment in the Securities for an indefinite period of time and I am knowledgeable
 about and experienced in making investments in the equity securities of non-publicly traded
 companies, including early stage companies. I am not acting as an underwriter or a conduit
 for sale to the public or to others of unregistered securities, directly or indirectly, on
 behalf of the Company or any person with respect to such securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m. I
 understand that (1) the Securities have not been registered under the Securities Act, or
 the securities laws of certain states, in reliance on specific exemptions from registration,
 (2) no securities administrator of any state or the federal government has recommended or
 endorsed this offering or made any finding or determination relating to the fairness of an
 investment in the Company, and (3) the Company is relying on my representations and agreements
 for the purpose of determining whether this transaction meets the requirements of certain
 exemptions from registration afforded by the Securities Act and certain state securities
 laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n. I
 understand that since neither the offer nor sale of the Securities has been registered under
 the Securities Act or the securities laws of any state, the Securities may not be sold, assigned,
 pledged or otherwise disposed of unless they are so registered or an exemption from such
 registration is available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o. I
 have had the opportunity to seek independent advice from my professional advisors relating
 to the suitability of an investment in the Company in view of my overall financial needs
 and with respect to the legal and tax implications of such investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p. If
 the Investor is a corporation, company, trust, employee benefit plan, individual retirement
 account, Keogh Plan, or other tax-exempt entity, it is authorized and qualified to become
 an Investor in the Company and the person signing this Subscription Agreement on behalf of
 such entity has been duly authorized by such entity to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q. To
 the extent the undersigned Subscriber is not a "U.S. Person," as such term is
 defined in Rule 902(k) of Regulation S, the undersigned has initialed the following representation
 (please initial below if applicable) and made the following representations below:

_____ The undersigned Subscriber is not a "U.S. Person," as such term is defined in Rule 902(k) of Regulation S.<sup>2</sup>

<sup>2</sup> Regulation S provides in part as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. "U.S.
person" means: (i) any natural person resident in the United States; (ii) any partnership or corporation organized or incorporated
under the laws of the United States; (iii) any estate of which any executor or administrator is a U.S. person; (iv) any trust of which
any trustee is a U.S. person; (v) any agency or branch of a foreign entity located in the United States; (vi) any non-discretionary account
or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person; (vii)
any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated,
or (if an individual) resident in the United States; and (viii) any partnership or corporation if: (A) organized or incorporated under
the laws of any foreign jurisdiction; and (B) formed by a U.S. person principally for the purpose of investing in securities not registered
under the Securities Act of 1933, as amended, unless it is organized or incorporated, and owned, by accredited investors (as defined
in Rule 501(a)) who are not natural persons, estates or trusts.

&nbsp;&nbsp;&nbsp;&nbsp;2. The
following are not "U.S. persons": (i) any discretionary account or similar account (other than an estate or trust) held for
the benefit or account of a non-U.S. person by a dealer or other professional fiduciary organized, incorporated, or (if an individual)
resident in the United States; (ii) any estate of which any professional fiduciary acting as executor or administrator is a U.S. person
if: (A) an executor or administrator of the estate who is not a U.S. person has sole or shared investment discretion with respect to
the assets of the estate; and (B) the estate is governed by foreign law; (iii) any trust of which any professional fiduciary acting as
trustee is a U.S. person, if a trustee who is not a U.S. person has sole or shared investment discretion with respect to the trust assets,
and no beneficiary of the trust (and no settlor if the trust is revocable) is a U.S. person; (iv) an employee benefit plan established
and administered in accordance with the law of a country other than the United States and customary practices and documentation of such
country; (v) any agency or branch of a U.S. person located outside the United States if: (A) the agency or branch operates for valid
business reasons; and (B) the agency or branch is engaged in the business of insurance or banking and is subject to substantive insurance
or banking regulation, respectively, in the jurisdiction where located; and (vi) the International Monetary Fund, the International Bank
for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, the
United Nations, and their agencies, affiliates and pension plans, and any other similar international organizations, their agencies,
affiliates and pension plans.

&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;i. The
 undersigned is not acquiring the Securities for the account or benefit of a U.S. Person.

&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;ii. If
 the undersigned is a legal entity, it has not been formed specifically for the purpose of
 investing in the Company.

&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;iii. The
 undersigned hereby represents that he, she or it has satisfied and fully observed the laws
 of the jurisdiction in which he, she or it is located or domiciled, in connection with the
 acquisition of the Securities, including (i) the legal requirements of the undersigned's
 jurisdiction for the acquisition of the Securities, (ii) any foreign exchange restrictions
 applicable to such acquisition, (iii) any governmental or other consents that may need to
 be obtained, and (iv) the income tax and other tax consequences, if any, which may be relevant
 to the holding, redemption, sale, or transfer of the Securities; and further, the undersigned
 agrees to continue to comply with such laws as long as he, she or it shall hold the Securities.

&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;iv. To
 the knowledge of the undersigned, without having made any independent investigation, neither
 the Company nor any person acting for the Company, has conducted any "directed selling
 efforts" in the United States as the term "directed selling efforts" is
 defined in Rule 902 of Regulation S, which, in general, means any activity undertaken for
 the purpose of, or that could reasonably be expected to have the effect of, conditioning
 the marketing in the United States for any of the Securities being offered. Such activity
 includes, without limitation, the mailing of printed material to investors residing in the
 United States, the holding of promotional seminars in the United States, and the placement
 of advertisements with radio or television stations broadcasting in the United States or
 in publications with a general circulation in the United States, which discuss the offering
 of the Securities. To the knowledge of the undersigned, the Securities were not offered to
 the undersigned through, and the undersigned is not aware of, any form of general solicitation
 or general advertising, including without limitation, (i) any advertisement, article, notice
 or other communication published in any newspaper, magazine or similar media or broadcast
 over television or radio, and (ii) any seminar or meeting whose attendees have been invited
 by any general solicitation or general advertising.

&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;v. The
 undersigned will offer, sell or otherwise transfer the Securities, only (A) pursuant to a
 registration statement that has been declared effective under the Securities Act, (B) pursuant
 to offers and sales that occur outside the United States within the meaning of Regulation
 S in a transaction meeting the requirements of Rule 904 (or other applicable Rule) under
 the Securities Act, or (C) pursuant to another available exemption from the registration
 requirements of the Securities Act, subject to the Company's right prior to any offer,
 sale or transfer pursuant to clauses (B) or (C) to require the delivery of an opinion of
 counsel, certificates or other information reasonably satisfactory to the Company for the
 purpose of determining the availability of an exemption.

&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;vi. The
 undersigned will not engage in hedging transactions involving the Securities unless such
 transactions are in compliance with the Securities Act.

&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;vii. The
 undersigned represents and warrants that the undersigned is not a citizen of the United States
 and is not, and has no present intention of becoming, a resident of the United States (defined
 as being any natural person physically present within the United States for at least 183
 days in a 12-month consecutive period or any entity who maintained an office in the United
 States at any time during a 12-month consecutive period). The undersigned understands that
 the Company may rely upon the representations and warranty of this paragraph as a basis for
 an exemption from registration of the Securities under the Securities Act of 1933, as amended,
 and the provisions of relevant state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r. I,
 or others for whom I am contracting hereunder, am aware that the Company is not now a "reporting
 issuer" under Canadian Securities Laws and there is no guarantee that it will become
 a reporting issuer in the future and have been independently advised as to or am aware of
 the restrictions with respect to trading in, and the restricted period or statutory hold
 period applicable to the Securities imposed by securities legislation in Canada and the regulations
 of, and the instruments, policies, rules, orders, codes, notices and interpretation notes
 of the Canadian securities regulatory authorities in each of the provinces and territories
 of Canada, as applicable (collectively the "**Canadian Securities Laws** "),
 that a suitable legend or legends will be placed on the certificates representing the Securities
 to reflect the applicable restricted period and hold period to which the Securities are subject,
 and I, or others for whom I am contracting hereunder, are solely responsible (and the Company
 is in no way responsible) for compliance with applicable resale restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;s. I
 acknowledge and agree that the certificates representing the Securities may bear the following
 legend:

"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (i) [DATE OF DISTRIBUTION], AND (ii) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;t. I,
 or others for whom I am contracting hereunder, am basing my investment decision solely on
 the Offering Documents and other publicly available information concerning the Company and
 not on any other information concerning the Company, and I, or others for whom I am contracting
 hereunder acknowledge that the Company has not made any written representations, warranties
 or covenants in respect of such publicly available information, except as set forth in the
 Offering Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;u. I,
 or others for whom I am contracting hereunder, acknowledge that the Company is a private
 company and does not have any of its securities listed on a stock exchange, and there is
 no assurance that its securities will ever become publicly listed and that there is currently
 no market for the Securities and no market may ever develop.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. I,
 or others for whom I am contracting hereunder, acknowledge that as a consequence of the sale
 being exempt from the prospectus requirements of Canadian Securities Laws: (A) certain protections,
 rights and remedies provided by Canadian Securities Laws, including statutory rights of rescission
 and certain statutory remedies against an issuer, underwriters, auditors, directors and officers
 that are available to investors who acquire securities offered by a prospectus, will not
 be available to me, or, if applicable, others for whom I am contracting hereunder; (B) the
 common law may not provide investors with an adequate remedy in the event that they suffer
 investment losses in connection with securities acquired in a private placement; (C) I, or,
 if applicable, others for whom I am contracting hereunder, may not receive information that
 would otherwise be required to be given under Canadian Securities Laws; and (D) the Company
 is relieved from certain obligations that would otherwise apply under Canadian Securities
 Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;w. I,
 or others for whom I am contracting hereunder, represent and warrant that no person has made
 any written or oral representation: (A) that any person will resell or repurchase any of
 the Securities; (B) that any person will refund the purchase price for the Securities; or
 (C) as to the future price or value of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. I,
 or others for whom I am contracting hereunder, acknowledge that there is no government or
 other insurance covering the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;y. I,
 or others for whom I am contracting hereunder, represent and warrant that the funds representing
 the aggregate purchase price in respect of the Securities which will be advanced by me or
 on my behalf to the Company hereunder will not represent proceeds of crime for the purposes
 of the *Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada)* (for
 the purposes of this paragraph the "PCMLTFA") and I acknowledge that the Company
 may in the future be required by law to disclose my name and other information relating to
 this Agreement and the subscription hereunder, on a confidential basis, pursuant to the PCMLTFA.
 (a) None of the subscription funds provided by me: (i) have been or will be derived directly
 or indirectly from or related to any activity that is deemed criminal under the laws of Canada,
 the United States of America, or any other jurisdiction; or (ii) are being tendered on behalf
 of a person or entity who has not been identified to me; and (b) I will promptly notify the
 Company if I discover that any of such representations cease to be true, and to provide the
 Company with appropriate information in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;z. I,
 and, if applicable, others for whom I am contracting hereunder, acknowledge that we have
 not received, nor have we requested nor had any need to receive, or been provided with a
 prospectus, offering memorandum (within the meaning of Canadian Securities Laws) or any document
 purporting to describe the business and affairs of the Company which has been prepared for
 review by prospective purchasers to assist in making an investment decision in respect of
 the Securities, other than the Offering Documents and that my decision, or, if applicable,
 the decision of others for whom I am contracting hereunder, to enter into this Agreement
 and to purchase the Securities from the Company is based entirely upon the Offering Documents
 and not upon any other verbal or written representation as to fact or otherwise made by or
 on behalf of the Company.

aa. I agree not to sell the Securities except in accordance with any applicable Canadian resale restrictions.

---

| | |
|:---|:---|
| bb. | If required by applicable securities laws or stock exchange rules, I will execute, deliver and file or assist the Company in obtaining and filing such reports, undertakings and other documents relating to the purchase of the Securities as may be required by applicable securities law, any securities commission, stock exchange or other regulatory authority. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cc. I
 acknowledge that I have consented to and requested that all documents evidencing or relating
 in any way to the sale of the Securities be drawn up in the English language only. *Le souscripteur reconnaît par les présentes avoir consenti et exigé que tous les documents faisant foi ou se rapportant de quelque manière à la vente des bons de unités soient rédigés en anglais seulement.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;dd. The
 information contained in my Investor Questionnaire, as well as any information which I have
 furnished to the Company with respect to my financial position and business experience, is
 correct and complete as of the date of this Subscription Agreement and, if there should be
 any material change in such information prior to the Closing of the offering, I will furnish
 such revised or corrected information to the Company. I hereby acknowledge and am aware that
 except for any rescission rights that may be provided under applicable laws, I am not entitled
 to cancel, terminate or revoke this subscription and any agreements made in connection herewith
 shall survive my death or disability.

**7. Placement Agent.** The Company has engaged Boustead, a broker-dealer licensed with FINRA, as placement agent for the Offering on a reasonable best-efforts basis. The Company anticipates that Boustead and its sub-agents or syndicate members will be paid at each Closing from the proceeds in the Escrow Account, fees including and not to exceed: a cash commission of seven percent (7%) of the gross Purchase Price paid by Investors in the Offering, a non-accountable expense allowance equal to one percent (1%) of the gross proceeds raised in the Offering. Any sub-agent or syndicate member of Boustead that introduces investors to the Offering will be entitled to share in the cash fees and Boustead Warrants attributable to those investors as described above, pursuant to the terms of an executed sub-agent or selected dealer agreement. The Company will also pay certain expenses of Boustead. The Company have agreed to issue to the representative of the underwriters (or its permitted assignees) warrants to purchase up to a total number of ordinary shares equal to 7% of the total number of shares sold in this offering at an exercise price equal to 100% of the initial public offering price of the ordinary shares sold in this offering. The representative's warrants will be exercisable at any time, and from time to time, in whole or in part, commencing from the closing of this offering and expiring on the fifth anniversary of the effective date of the registration statement. The representative's warrants will have a cashless exercise provision and will provide for customary anti-dilution provisions and immediate "piggyback" registration rights with respect to the registration of the shares underlying the warrants for a period of seven years from commencement of sales of this offering. The registration statement also registers the representative's warrants and the ordinary shares issuable upon exercise of the representative's warrants.

**8. Representations and Warranties of the Company**. When used in this Section 8, unless the context indicates otherwise, all references to the "Company" also mean and include the direct and indirect subsidiaries of the Company. The Company hereby represents and warrants to the Subscriber, as of the date hereof and on each Closing Date, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Organization and Qualification</u>. The Company and each of its subsidiaries, if any, is a corporation
 or other business entity duly organized, validly existing and in good standing under the
 laws of the jurisdiction of its formation and has the requisite corporate power to own its
 properties and to carry on its business as now being conducted. The Company and each of its
 subsidiaries is duly qualified as a foreign corporation to do business and is in good standing
 in every jurisdiction in which the nature of the business conducted by it makes such qualification
 necessary, except to the extent that the failure to be so qualified or be in good standing
 would not have a material adverse effect on the assets, business, financial condition, results
 of operations or future prospects of the Company and its subsidiaries taken as a whole (a
 " <u>Material Adverse Effect</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Authorization, Enforcement, Compliance with Other Instruments</u>. (i) The Company has the requisite corporate
 power and authority to enter into and perform its obligations under this Agreement, and each
 of the Offering Documents and to issue the Securities in accordance with the terms hereof,
 (ii) the execution and delivery by the Company of each of the Offering Documents and the
 consummation by it of the transactions contemplated hereby and thereby, including, without
 limitation, the issuance of the Securities have been, or will be at the time of execution
 of such Offering Document, duly authorized by the Company's Board of Directors, and
 no further consent or authorization is, or will be at the time of execution of such Offering
 Document, required by the Company, its respective Board of Directors or its stockholders,
 (iii) each of the Offering Documents will be duly executed and delivered by the Company,
 (iv) the Offering Documents when executed and delivered by the Company and each other party
 thereto will constitute the valid and binding obligations of the Company enforceable against
 the Company in accordance with their terms, except as such enforceability may be limited
 by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
 liquidation or similar laws relating to, or affecting generally, the enforcement of creditors'
 rights and remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Capitalization</u>.
 Immediately prior to the Initial Closing, the authorized equity capital of the Company consists
 of an unlimited number of Class A Common Shares, no par value per share, of which 8,328,684
 Class A Common Shares were issued and outstanding. The Company has reserved 19,186 Class
 A Common Shares for issuance to officers, directors, employees and consultants of the Company
 pursuant to its Stock Option Plan duly adopted by the Board of Directors and approved by
 the Company stockholders (the " <u>Stock Plan</u> "). . The Company has also reserved
 79,195 Class A Common Shares issuable upon conversion of a SAFE agreement entered into on
 December 16, 2019. In addition, a representative's warrant to purchase 7% of the total
 number of Class A Common Shares issued in the IPO are expected to be granted at or around
 the time of the consummation of the IPO. Except as aforesaid, there are no outstanding options,
 warrants, script rights to subscribe to, calls or commitments of any character whatsoever
 relating to, or securities, rights or obligations convertible into or exercisable or exchangeable
 for, or giving any person any right to subscribe for or acquire, any Class A Common Shares,
 or contracts, commitments, understandings or arrangements by which the Company or any subsidiary
 is or may become bound to issue additional Class A Common Shares, or securities or rights
 convertible or exchangeable into Class A Common Shares. All of the outstanding Class A Common
 Shares and Preferred Stock of the Company and all of the share capital of each of the Company's
 subsidiaries have been or will be, as of the Initial Closing, duly authorized, validly issued
 and are fully paid and nonassessable. At the Initial Closing, (i) no shares of capital stock
 of the Company or any of its subsidiaries will be subject to preemptive rights or any other
 similar rights or any liens or encumbrances suffered or permitted by the Company; (ii) there
 will be no agreements or arrangements under which the Company or any of its subsidiaries
 is obligated to register the sale of any of their securities under the Securities Act, and
 (iii) there are no securities or instruments of the Company or any of its subsidiaries containing
 anti-dilution or similar provisions, including the right to adjust the exercise, exchange
 or reset price under such securities, that will be triggered by the issuance of the Securities
 as described in this Agreement. The Company may, prior to the closing of the Offering, ratify
 certain changes to its authorized share capital at a meeting of shareholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Subsidiaries</u>.
 The Company currently has a wholly owned subsidiary called 1040227 BC Ltd., a Canada corporation.
 1040227 BC Ltd was initially formed in 2018. Except for the above-described subsidiary, the
 Company does not currently own or control, directly or indirectly, any interest in any other
 corporation, partnership, trust, joint venture, limited liability company, association, or
 other business entity. The Company is not a participant in any joint venture, partnership
 or similar arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Issuance of Securities</u>. The Securities are duly authorized and, upon issuance in accordance with
 the terms hereof, shall be duly issued, fully paid and nonassessable, and will be free and
 clear of all taxes, liens and charges with respect to the issue thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. <u>No Conflicts</u>. The execution, delivery and performance of each of the Offering Documents
 by the Company, and the consummation by the Company of the transactions contemplated hereby
 and thereby will not (i) result in a violation of the Articles of Incorporation, Articles
 of Amendment or the By-laws (or equivalent constitutive document) of the Company or any of
 its subsidiaries or (ii) violate or conflict with, or result in a breach of any provision
 of, or constitute a default (or an event which with notice or lapse of time or both would
 become a default) under, or give to others any rights of termination, amendment, acceleration
 or cancellation of, any agreement, indenture or instrument to which the Company or any subsidiary
 is a party, except for those which would not reasonably be expected to have a Material Adverse
 Effect, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree
 (including U.S. federal and state securities laws and regulations) applicable to the Company
 or any subsidiary or by which any property or asset of the Company or any subsidiary is bound
 or affected except for those which could not reasonably be expected to have a Material Adverse
 Effect. Except those which could not reasonably be expected to have a Material Adverse Effect,
 neither the Company nor any subsidiary is in violation of any term of or in default under
 its constitutive documents. Except those which could not reasonably be expected to have a
 Material Adverse Effect, neither the Company nor any subsidiary is in violation of any term
 of or in default under any material contract, agreement, mortgage, indebtedness, indenture,
 instrument, judgment, decree or order or any statute, rule or regulation applicable to the
 Company or any subsidiary. The business of the Company and its subsidiaries is not being
 conducted, and shall not be conducted in violation of any law, ordinance, or regulation of
 any governmental entity, except for any violation which could not reasonably be expected,
 individually or in the aggregate, to have a Material Adverse Effect. Except as specifically
 contemplated by this Agreement and as required under the Securities Act and any applicable
 state securities laws, neither the Company nor any of its subsidiaries is required to obtain
 any consent, authorization or order of, or make any filing or registration with, any court
 or governmental agency in order for it to execute, deliver or perform any of its obligations
 under or contemplated by this Agreement or the other Offering Documents in accordance with
 the terms hereof or thereof. Neither the execution and delivery by the Company of the Offering
 Documents, nor the consummation by the Company of the transactions contemplated hereby or
 thereby, will require any notice, consent or waiver under any contract or instrument to which
 the Company or any subsidiary is a party or by which the Company or any subsidiary is bound
 or to which any of their assets is subject, except for any notice, consent or waiver the
 absence of which would not reasonably be expected, individually or in the aggregate, to have
 a Material Adverse Effect and would not adversely affect the consummation of the transactions
 contemplated hereby or thereby. All consents, authorizations, orders, filings and registrations
 which the Company or any of its subsidiaries is required to obtain pursuant to the preceding
 two sentences have been or will be obtained or effected on or prior to the Closing.

&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. <u>Absence of Litigation</u>. There is no action, suit, claim, inquiry, notice of violation, proceeding
 (including any partial proceeding such as a deposition) or investigation before or by any
 court, public board, governmental or administrative agency, self-regulatory organization,
 arbitrator, regulatory authority, stock market, stock exchange or trading facility (an " <u>Action</u> ")
 now pending or, to the knowledge of the Company, threatened, against or affecting the Company
 or any of its subsidiaries, wherein an unfavorable decision, ruling or finding would (i)
 adversely affect the validity or enforceability of, or the authority or ability of the Company
 to perform its obligations under this Agreement or any of the other Offering Documents, or
 (ii) have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. <u>Acknowledgment Regarding Subscriber's Purchase of the Securities</u>. The Company acknowledges and
 agrees that each Subscriber is acting solely in the capacity of an arm's length purchaser
 with respect to the Offering Documents and the transactions contemplated hereby and thereby.
 The Company further acknowledges that each Subscriber is not acting as a financial advisor
 or fiduciary of the Company (or in any similar capacity) with respect to the Offering Documents
 and the transactions contemplated hereby and thereby and any advice given by such Subscriber
 or any of their respective representatives or agents in connection with the Offering Documents
 and the transactions contemplated hereby and thereby is merely incidental to such Subscriber's
 purchase of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>No General Solicitation</u>. Neither the Company, nor any of its "affiliates" (as
 defined in Rule 144 under the Securities Act), nor, to the knowledge of the Company, any
 person acting on its or their behalf, has engaged in any form of general solicitation or
 general advertising (within the meaning of Regulation D) in connection with the offer or
 sale of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. <u>No Integrated Offering</u>. Neither the Company, nor any of its affiliates, nor to the knowledge
 of the Company, any person acting on its or their behalf has, directly or indirectly, made
 any offers or sales of any security or solicited any offers to buy any security, under circumstances
 that would require registration of the Securities under the Securities Act or cause this
 offering of the Securities to be integrated with prior offerings by the Company for purposes
 of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. <u>Employee Relations</u>. Neither the Company nor any subsidiary is involved in any labor dispute nor,
 to the knowledge of the Company, is any such dispute threatened. Neither the Company nor
 any subsidiary is party to any collective bargaining agreement. The Company's and/or
 its subsidiaries' employees are not members of any union, and the Company believes
 that its and its subsidiaries' relationship with their respective employees is good.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. <u>Permits</u>.
 The Company and its subsidiaries have all authorizations, approvals, clearances, licenses,
 permits, certificates or exemptions (including manufacturing approvals and authorizations,
 pricing and reimbursement approvals, labeling approvals, registration notifications or their
 foreign equivalent) issued by any regulatory authority or governmental agency (collectively,
 " <u>Permits</u> ") required to conduct their respective businesses as currently
 conducted except to the extent that the failure to have such Permits would not have a Material
 Adverse Effect. The Company or its subsidiaries have fulfilled and performed in all material
 respects their obligations under each Permit, and, as of the date hereof, to the knowledge
 of the Company, no event has occurred or condition or state of facts exists which would constitute
 a breach or default or would cause revocation or termination of any such Permit except to
 the extent that such breach, default, revocation or termination would not have a Material
 Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m. <u>Title</u>.
 Each of the Company and its subsidiaries has good and marketable title to all of its real
 and personal property and assets, free and clear of any material restriction, mortgage, deed
 of trust, pledge, lien, security interest or other charge, claim or encumbrance which would
 have a Material Adverse Effect. With respect to properties and assets it leases, each of
 the Company and its subsidiaries is in material compliance with such leases and holds a valid
 leasehold interest free of any liens, claims or encumbrances which would have a Material
 Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n. <u>Rights of First Refusal</u>. The Company is not obligated to offer the Securities offered hereunder
 on a right of first refusal basis or otherwise to any third parties including, but not limited
 to, current or former stockholders of the Company, underwriters, brokers, agents or other
 third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o. <u>Brokers' Fees</u>. The Company does not have any liability or obligation to pay any fees or commissions
 to any broker, finder or agent with respect to the transactions contemplated by this Agreement,
 except for the payment of fees to Boustead as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p. <u>Off-Balance Sheet Arrangements</u>. There is no transaction, arrangement, or other relationship between
 the Company or any subsidiary and an unconsolidated or other off-balance sheet entity that
 is required to be disclosed by the Company in the Financial Statements and is not so disclosed
 or that otherwise would have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q. <u>Investment Company</u>. The Company is not required to be registered as, and is not an affiliate of,
 and immediately following the Closing will not be required to register as, an "investment
 company" within the meaning of the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r. <u>Patents and Trademarks</u>. The Company and its subsidiaries, if any, have, or have rights to use,
 all patents, patent applications, trademarks, trademark applications, service marks, trade
 names, copyrights, licenses and other similar rights that are necessary or material for use
 in connection with their respective businesses as described in the Investor Package and which
 the failure to so have could have a Material Adverse Effect (collectively, the " <u>Intellectual Property Rights</u> "). Neither the Company nor any subsidiary has received a written
 notice that the Intellectual Property Rights used by the Company, or any subsidiary violates
 or infringes upon the rights of any Person. To the knowledge of the Company, all such Intellectual
 Property Rights are enforceable and there is no existing infringement by another Person of
 any of the Intellectual Property Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;s. <u>Transactions With Affiliates and Employees</u>. Except as set forth in the Investor Package, none of the
 executive officers or directors of the Company and, to the knowledge of the Company, none
 of the employees of the Company is presently a party to any transaction with the Company
 or any subsidiary (other than for services as employees, officers and directors), including
 any contract, agreement or other arrangement providing for the furnishing of services to
 or by, providing for rental of real or personal property to or from, or otherwise requiring
 payments to or from any executive officer, director or such employee or, to the knowledge
 of the Company, any entity in which any executive officer, director, or any such employee
 has a substantial interest or is an officer, director, trustee or partner, in each case in
 excess of $120,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;t. <u>Investor Package; Disclosure</u>. The Company has made available to each Investor the Investor Package.
 As of the date set forth on the Investor Package, the Investor Package did not contain any
 untrue statement of a material fact or omit to state a material fact required to be stated
 therein or necessary in order to make the statements therein, in the light of the circumstances
 under which they were made, not misleading. The Company has made available to you all the
 information reasonably available to the Company that you have requested for deciding whether
 to acquire the Securities. No representation or warranty of the Company contained in this
 Agreement and no certificate furnished or to be furnished to you at the Closing contains
 any untrue statement of a material fact or, to the Company's knowledge, omits to state
 a material fact necessary in order to make the statements contained herein or therein not
 misleading in light of the circumstances under which they were made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;u. <u>Material Changes</u>. Since the Balance Sheet Date, except as specifically disclosed in the Investor
 Package, (i) there has been no event, occurrence or development that, individually or in
 the aggregate, has had or that could result in a Material Adverse Effect, (ii) the Company
 has not altered its method of accounting or the identity of its auditors, except as disclosed
 in the Investor Package, (iv) the Company has not declared or made any dividend or distribution
 of cash or other property to its stockholders or purchased, redeemed or made any agreements
 to purchase or redeem any shares of its capital stock, and (v) the Company has not issued
 any equity securities to any officer, director or Affiliate, except pursuant to existing
 Company stock-based plans or agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>Reliance</u>.
 The Company acknowledges that the Investor is relying on the representations and warranties
 made by the Company hereunder and that such representations and warranties are a material
 inducement to the Investor purchasing the Securities. The Company further acknowledges that
 without such representations and warranties of the Company made hereunder, the Investors
 would not enter into this Agreement.

**9. <u>Other Covenants and Agreements of the Parties</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Indemnification</u>.

I hereby agree to indemnify and hold harmless the Company and its officers, directors, shareholders, employees, agents, advisors and counsel, and Boustead and its officers, directors, shareholders, employees, agents, advisors and counsel, against any and all losses, claims, demands, liabilities and expenses (including reasonable legal or other expenses, including reasonable attorneys' fees) incurred by each such person in connection with defending or investigating any such claims or liabilities, whether or not resulting in any liability to such person, to which any such indemnified party may become subject under the Securities Act, under any other statute, at common law or otherwise, insofar as such losses, claims, demands, liabilities and expenses (a) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact made by me and contained in this Subscription Agreement or my Investor Questionnaire, or (b) arise out of or are based upon any breach by me of any representation, warranty, or agreement made by me contained herein or therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Lock-Up</u>.

In connection with this Offering, the Investor agrees to the following lock-up agreement with respect to the Securities:

&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;1. From and after the date hereof and until the 180th day after the date the Ordinary Shares are first listed for trading on a national securities exchange (such first trading day, the "**Lock-Up Trigger Date**"), the Investor agrees not to sell, transfer or otherwise dispose of the Securities or the Shares.

&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;2. Between the 181st and 270th day after the Lock-Up Trigger Date, the Investor agrees not to sell, transfer or otherwise dispose of more than one-third of the Shares, subject to a maximum sale on any trading day of 3% of the daily volume.

&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;3. Between the 271st and 365th day after the Lock-Up Trigger Date, the Investor agrees not to sell, transfer or otherwise dispose of more than one-third of the Shares, subject to a maximum sale on any trading day of 3% of the daily volume.

&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;4. After the 365th day after the Lock-Up Trigger Date, the Investor will be entitled to sell the remaining Shares purchased hereunder without contractual restriction, but subject to any restrictions arising under applicable law, including the Securities Act.

&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;5. Notwithstanding the above, commencing 90 days after the Lock-Up Trigger Date, if the price per share of the Ordinary Shares are at least 50% higher than the IPO Price (as defined below) per share and trades at least 100,000 shares daily, both for ten (10) consecutive trading days, the Investor may sell one-third of its shares subject to a maximum sale on any trading day of 3% of the daily volume; and if the Common Share price is at least 100% higher than the IPO Price per share and trades at least 100,000 shares daily, both for ten (10) consecutive trading days, the Investor may sell up to an additional one-third of its shares subject to a maximum sale on any trading day of 3% of the daily volume; and if the Common Share price is at least 150% higher than the IPO Price per share and trades at least 100,000 shares daily, both for ten (10) consecutive trading days, the Investor may sell an additional one-third constituting a maximum total of all of its shares subject to a maximum sale on any trading day of 3% of the daily volume. For purpose of this term, the "IPO Price" shall mean the price the Ordinary Shares are first sold to the public pursuant to an underwritten registered offering resulting in a listing of its Ordinary Shares on the NASDAQ Stock Market or another national stock exchange.

&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;6. In connection with the foregoing lockup, the Investor agrees that the Company may direct the Company's transfer agent to issue the Shares in certificated form and deposit the same in an escrow account with an escrow agent to be selected by the Company and Boustead. The escrow account would be governed by an escrow agreement among the Company such escrow agent and Boustead. The Shares would remain in the escrow account as and to the extent that they are locked up hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Cayman Islands Restructuring; Limited Power of Attorney</u>.

Each Investor acknowledges that in order to facilitate the IPO the Company intends to restructure into a Cayman Islands Holding Company (the "<u>Cayman Holdco</u>") through a share exchange agreement pursuant to which each existing shareholder of the Company, including the Investor, will exchange (the "<u>Exchange</u>") such shareholder's Class A Common Shares for ordinary shares of the Cayman Holdco. The relative percentage interests of the shareholders in the outstanding equity capital of the Company will remain the same before and after the Exchange. Each Investor will retain all rights of such Investor set forth in this Agreement and the other Offering Documents following the Exchange. The Investor hereby appoints the Chief Executive Officer of the Company to act as his, her or its true and lawful attorney with full power and authority on their behalf to execute and deliver all documents and instruments, including the aforementioned share exchange agreement and the shareholders' agreement being entered into by the shareholders of Cayman Holdco upon the Exchange, and take all other actions necessary in connection with the Exchange. This appointment is coupled with an interest and irrevocable. This appointment shall be for the limited purposes set forth above.

**10. <u>Transfer Restrictions.</u>** None of the Shares have been registered under the Securities Act. As such, any Shares purchased pursuant to this Subscription Agreement constitute "restricted securities" under the Securities Act. Such Shares may not be sold or otherwise transferred unless they are registered under the Securities Act and applicable foreign or state laws or unless exemptions from registration are available under such laws. Any certificates evidencing the Shares will bear a legend restricting the distribution, resale, transfer, pledge, hypothecation or other disposition of such securities unless and until such securities are registered under the Securities Act or an opinion of counsel acceptable to the Company is received concluding that registration is not required under the Securities Act. The Company is also not a reporting issuer in any jurisdiction of Canada and the Shares are not currently listed on any stock exchange. Accordingly, pursuant to Canadian securities laws, the Shares will be subject to a statutory hold period in Canada expiring on the date which is four months and a day after the later of (i) the issuance date, and (ii) the date that the Company becomes a reporting issuer in any province or territory of Canada.

**11. <u>Collection of Personal Information.</u>** I, on my own behalf and, if applicable, on behalf of each beneficial purchaser for whom I am contracting hereunder, acknowledge and consent to the fact that the Company is collecting our personal information (as that term is defined under applicable privacy legislation, including, without limitation, the *Personal Information Protection and Electronic Documents Act* (Canada) and any other applicable similar, replacement or supplemental provincial or federal legislation or laws in effect from time to time), and, if applicable, that of each beneficial purchaser for whom I am contracting hereunder, for the purpose of completing this Agreement and the transaction contemplated herein. I, on my own behalf, and, if applicable, on behalf of each beneficial purchaser for whom I am contracting hereunder, acknowledge and consent to the Company retaining such personal information for as long as permitted or required by law or business practices. I, on my own behalf, and, if applicable, on behalf of each beneficial purchaser for whom I am contracting hereunder, further acknowledge and consent to the fact that the Company may be required by Canadian Securities Laws, the rules and policies of any stock exchange or the rules of the Investment Industry Regulatory Organization of Canada or otherwise by applicable law to provide regulatory authorities with any personal information provided under this Agreement. I represent and warrant, as applicable, that I have the authority to provide the consents and acknowledgements set out in this paragraph on behalf of each beneficial purchaser for whom I am contracting hereunder. In addition to the foregoing, I agree and acknowledge that the Company may use and disclose my personal information, or that of each beneficial purchaser for whom I am contracting hereunder, as follows:

● for internal use with respect to managing the relationships between and contractual obligations of the Company and me or any beneficial purchaser for whom I am contracting hereunder;

● for use and disclosure for income tax related purposes, including without limitation, where required by law, disclosure to Canada Revenue Agency;

● for disclosure to stock exchanges, securities regulatory authorities and other regulatory bodies with jurisdiction with respect to reports of trades and similar regulatory filings;

● for disclosure to a governmental or other authority to which the disclosure is required by court order or subpoena compelling such disclosure and where there is no reasonable alternative to such disclosure;

● for disclosure to professional advisers of the Corporation in connection with the performance of their professional services;

● for disclosure to any person where such disclosure is necessary for legitimate business reasons and is made with my prior written consent;

● for disclosure to a court determining the rights of the parties under this Agreement; or

● for use and disclosure as otherwise required or permitted by law.

The information provided by me in this Agreement identifying my name, address, and telephone number, the number of Securities being purchased hereunder, the aggregate purchase price and the closing date, will be disclosed to the securities regulatory authority or regulator in each of the provinces and territories of Canada in which Securities are distributed by the Company, and such information is being collected by such securities regulatory authorities and regulators under the authority granted to each of them under securities legislation. This information is being collected for the purposes of the administration and enforcement of the securities legislation of such selling jurisdictions. I hereby authorize the indirect collection of such information by such securities regulatory authorities and regulators. In the event I have any questions with respect to the indirect collection of such information by such securities regulatory authorities and regulators, I should contact the applicable securities regulatory authority or regulator using the contact information set out below:

● British Columbia Securities Commission, P.O. Box 10142, Pacific Centre, 701 West Georgia Street, Vancouver, British Columbia V7Y 1L2, Inquiries: (604) 899-6854, Toll free in Canada: 1-800-373-6393, Facsimile: (604) 899-6581, Email: inquiries@bcsc.bc.ca;

● Alberta Securities Commission, Suite 600, 250 – 5th Street, SW Calgary, Alberta T2P 0R4, Telephone: (403) 297-6454, Toll free in Canada: 1-877-355-0585, Facsimile: (403) 297-2082;

● Financial and Consumer Affairs Authority of Saskatchewan, Suite 601 - 1919 Saskatchewan Drive, Regina, Saskatchewan S4P 4H2, Telephone: (306) 787-5879, Facsimile: (306) 787-5899;

● The Manitoba Securities Commission, 500 – 400 St. Mary Avenue, Winnipeg, Manitoba R3C 4K5, Telephone: (204) 945-2548, Toll free in Manitoba 1-800-655-5244, Facsimile: (204) 945-0330;

● Ontario Securities Commission, 20 Queen Street West, 22nd Floor Toronto, Ontario M5H 3S8, Telephone: (416) 593- 8314, Toll free in Canada: 1-877-785-1555, Facsimile: (416) 593-8122, Email: exemptmarketfilings@osc.gov.on.ca, Public official contact regarding indirect collection of information: Inquiries Officer;

● Autorité des marchés financiers, 800, Square Victoria, 22e étage, C.P. 246, Tour de la Bourse, Montréal, Québec H4Z 1G3, Telephone: (514) 395-0337 or 1-877-525-0337, Facsimile: (514) 873-6155 (For filing purposes only), Facsimile: (514) 864-6381 (For privacy requests only), Email: financementdessocietes@lautorite.qc.ca (For corporate finance issuers); fonds_dinvestissement@lautorite.qc.ca (For investment fund issuers);

● Financial and Consumer Services Commission (New Brunswick), 85 Charlotte Street,, Suite 300 Saint John, New Brunswick E2L 2J2, Telephone: (506) 658-3060, Toll free in Canada: 1-866-933-2222, Facsimile: (506) 658-3059, Email: info@fcnb.ca

● Nova Scotia Securities Commission, Suite 400, 5251 Duke Street, Duke Tower, P.O. Box 458 Halifax, Nova Scotia B3J 2P8, Telephone: (902) 424-7768, Facsimile: (902) 424-4625;

● Prince Edward Island Securities Office, 95 Rochford Street, 4th Floor Shaw Building, P.O. Box 2000 Charlottetown, Prince Edward Island C1A 7N8, Telephone: (902) 368-4569, Facsimile: (902) 368-5283;

● Government of Newfoundland and Labrador, Financial Services Regulation Division, P.O. Box 8700, Confederation Building 2nd Floor, West Block, Prince Philip Drive, St. John's, Newfoundland and Labrador A1B 4J6, Attention: Director of Securities, Telephone: (709) 729-4189, Facsimile: (709) 729-6187;

● Government of Yukon, Department of Community Services Law Centre, 3rd Floor, 2130 Second Avenue, Whitehorse, Yukon Y1A 5H6, Telephone: (867) 667-5314, Facsimile: (867) 393-6251;

● Government of the Northwest Territories, Office of the Superintendent of Securities, P.O. Box 1320 Yellowknife, Northwest Territories X1A 2L9 Attention: Deputy Superintendent, Legal & Enforcement, Telephone: (867) 920-8984, Facsimile: (867) 873-0243; and

● Government of Nunavut, Department of Justice, Legal Registries Division, P.O. Box 1000, Station 570, 1st Floor, Brown Building, Iqaluit, Nunavut X0A 0H0, Telephone: (867) 975-6590, Facsimile: (867) 975-6594.

**12. <u>Severability</u>**. In the event any parts of this Subscription Agreement are found to be void, the remaining provisions of this Subscription Agreement shall nevertheless be binding with the same effect as though the void parts were deleted.

**13. <u>Choice of Law and Jurisdiction</u>**. This Subscription Agreement shall be governed by the laws of the State of New York as applied to contracts entered into and be performed entirely within the State of New York. Any action arising out of this Subscription Agreement shall be brought exclusively in a court of competent jurisdiction in the New York and the parties hereby irrevocably waive any objections they may have to venue in New York.

**14. <u>Counterparts</u>**. This Subscription Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The execution of this Subscription Agreement may be by actual or facsimile signature.

**15. <u>Third Party Beneficiaries</u>.** This Agreement shall be binding upon and inure to the benefit of the parties hereto. Boustead is an intended third-party beneficiary of this Agreement, including the representations and warranties made by both the Company and the Investor herein and the indemnification provided by the Investor herein and may directly enforce this Agreement and its rights hereunder.

**16. <u>Notices and Addresses</u>**. All notices, offers, acceptance and any other acts under this Subscription Agreement (except payment) shall be in writing, and shall be sufficiently given if delivered to the addresses in person, by Federal Express or similar courier delivery, as follows:

Investor: At the address designated on the signature page of this Subscription Agreement. <br>The Company: Adam Sax CEO Droneify Ltd. 103-482 South Service Road East Oakville, ON Canada L6J 2X6

or to such other address as any of them, by notice to the others may designate from time to time. The transmission confirmation receipt from the sender's facsimile machine shall be conclusive evidence of successful facsimile delivery. Time shall be counted to, or from, as the case may be, the delivery in person or by mailing.

**17. <u>Entire Agreement</u>**. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior oral and written agreements between the parties hereto with respect to the subject matter hereof. This Agreement may not be changed, waived, discharged, or terminated orally but, rather, only by a statement in writing signed by the Company the party or parties against which enforcement of the change, waiver, discharge, or termination is sought.

**18. <u>Section Headings</u>**. Section headings herein have been inserted for reference only and shall not be deemed to limit or otherwise affect, in any matter, or be deemed to interpret in whole or in part, any of the terms or provisions of this Subscription Agreement.

**19. <u>Survival of Representations, Warranties and Agreements</u>**. The representations, warranties and agreements contained herein shall survive the delivery of, and the payment for, the Securities.

**20. <u>Acceptance of Subscription</u>**. The Company may accept this Subscription Agreement at any time for all or any portion of the Securities subscribed for by executing a copy hereof as provided and notifying me within a reasonable time thereafter.

**<u>United States Disclaimers</u>**

<u>RESIDENTS OF ALL STATES</u>: THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER SAID ACT AND SUCH LAWS PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE OFFERING DOCUMENTS. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

<u>SALES IN FLORIDA</u>: THE SECURITIES OFFERED HEREBY WILL BE SOLD, AND ACQUIRED, IN A TRANSACTION EXEMPT UNDER SECTION 517.061(11) OF THE FLORIDA SECURITIES AND INVESTOR PROTECTION ACT. THE SECURITIES HAVE NOT BEEN REGISTERED UNDER SAID ACT IN THE STATE OF FLORIDA. PURSUANT TO SECTION 517.061(11) OF THE FLORIDA SECURITIES AND INVESTOR PROTECTION ACT, WHEN SALES ARE MADE TO FIVE (5) OR MORE PERSONS IN THE STATE OF FLORIDA, ANY SALE IN THE STATE OF FLORIDA MADE PURSUANT TO SECTION 517.061(11) OF SUCH ACT IS VOIDABLE BY THE PURCHASER IN SUCH SALE (WITHOUT INCURRING ANY LIABILITY TO THE COMPANY OR TO ANY OTHER PERSON OR ENTITY) EITHER WITHIN THREE (3) DAYS AFTER THE FIRST TENDER OF CONSIDERATION IS MADE BY SUCH PURCHASER TO THE ISSUER, AN AGENT OF THE ISSUER, OR AN ESCROW AGENT OR WITHIN THREE (3) DAYS AFTER THE AVAILABILITY OF THAT PRIVILEGE IS COMMUNICATED TO SUCH PURCHASER, WHICHEVER OCCURS LATER. TO VOID HIS OR HER PURCHASE, THE PURCHASER NEED ONLY SEND A LETTER OR TELEGRAM TO THE COMPANY AT THE ADDRESS INDICATED HEREIN. ANY SUCH LETTER OR TELEGRAM SHOULD BE SENT AND POSTMARKED PRIOR TO THE END OF THE AFOREMENTIONED THREE (3) DAY PERIOD. IT IS PRUDENT TO SEND ANY SUCH LETTER BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO ASSURE THAT IT IS RECEIVED AND ALSO TO HAVE EVIDENCE OF THE TIME THAT IT WAS MAILED. SHOULD A PURCHASER MAKE THIS REQUEST ORALLY, THAT PURCHASER MUST ASK FOR WRITTEN CONFIRMATION THAT THE REQUEST HAS BEEN RECEIVED. IF NOTICE IS NOT RECEIVED WITHIN THE TIME LIMIT SPECIFIED HEREIN, THE FOREGOING RIGHT TO VOID THE PURCHASE SHALL BE NULL AND VOID.

**<u>Canadian Disclaimers</u>**

**The Offering Documents may constitute an offering memorandum under Canadian Securities Laws. Securities legislation in certain of the provinces of Canada provides purchasers with rights of rescission or damages, or both, where an offering memorandum or any amendment to it contains a misrepresentation. A "misrepresentation" is an untrue statement of a material fact or an omission to state a material fact that is required to be stated or that is necessary to make any statement not misleading or false in the light of the circumstances in which it was made.** 

**These remedies must be commenced by the purchaser within the time limits prescribed and are subject to the defences contained in the applicable securities legislation. Each purchaser should refer to the provisions of the applicable securities laws for the particulars of these rights or consult with a legal advisor.** 

**The following rights will only apply to a purchaser of securities of the Company in the event that the Offering Documents are deemed to be an offering memorandum pursuant to applicable securities legislation in certain provinces of Canada and are in addition to and without derogation from any other right or remedy which purchasers may have at law and are intended to correspond to the provisions of the relevant Canadian Securities Laws and are subject to the defences contained therein. The following summaries are subject to the express provisions of the applicable securities statutes and instruments in the below-referenced provinces and the regulations, rules and policy statements thereunder and reference is made thereto for the complete text of such provisions.**

FOR ONTARIO RESIDENTS: UNDER ONTARIO SECURITIES LEGISLATION, CERTAIN PURCHASERS WHO PURCHASE SECURITIES OFFERED BY AN OFFERING MEMORANDUM DURING THE PERIOD OF DISTRIBUTION WILL HAVE A STATUTORY RIGHT OF ACTION FOR DAMAGES, OR WHILE STILL THE OWNER OF THE SECURITIES, FOR RESCISSION AGAINST THE ISSUER OR ANY SELLING SECURITY HOLDER IF THE OFFERING MEMORANDUM CONTAINS A MISREPRESENTATION WITHOUT REGARD TO WHETHER THE PURCHASERS RELIED ON THE MISREPRESENTATION. THE RIGHT OF ACTION FOR DAMAGES IS EXERCISABLE NOT LATER THAN THE EARLIER OF 180 DAYS FROM THE DATE THE PURCHASER FIRST HAD KNOWLEDGE OF THE FACTS GIVING RISE TO THE CAUSE OF ACTION AND THREE YEARS FROM THE DATE ON WHICH PAYMENT IS MADE FOR THE SECURITIES. THE RIGHT OF ACTION FOR RESCISSION IS EXERCISABLE NOT LATER THAN 180 DAYS FROM THE DATE ON WHICH PAYMENT IS MADE FOR THE SECURITIES. IF A PURCHASER ELECTS TO EXERCISE THE RIGHT OF ACTION FOR RESCISSION, THE PURCHASER WILL HAVE NO RIGHT OF ACTION FOR DAMAGES AGAINST THE ISSUER OR ANY SELLING SECURITY HOLDER. IN NO CASE WILL THE AMOUNT RECOVERABLE IN ANY ACTION EXCEED THE PRICE AT WHICH THE SECURITIES WERE OFFERED TO THE PURCHASER AND IF THE PURCHASER IS SHOWN TO HAVE PURCHASED THE SECURITIES WITH KNOWLEDGE OF THE MISREPRESENTATION, THE ISSUER AND ANY SELLING SECURITY HOLDER WILL HAVE NO LIABILITY. IN THE CASE OF AN ACTION FOR DAMAGES, THE ISSUER AND ANY SELLING SECURITY HOLDER WILL NOT BE LIABLE FOR ALL OR ANY PORTION OF THE DAMAGES THAT ARE PROVEN TO NOT REPRESENT THE DEPRECIATION IN VALUE OF THE SECURITIES AS A RESULT OF THE MISREPRESENTATION RELIED UPON. THESE RIGHTS ARE NOT AVAILABLE FOR A PURCHASER THAT IS (A) A CANADIAN FINANCIAL INSTITUTION OR A SCHEDULE III BANK (EACH AS DEFINED IN NATIONAL INSTRUMENT 45-106 – PROSPECTUS EXEMPTIONS), (B) THE BUSINESS DEVELOPMENT BANK OF CANADA INCORPORATED UNDER THE BUSINESS DEVELOPMENT BANK OF CANADA ACT (CANADA), OR (C) A SUBSIDIARY OF ANY PERSON REFERRED TO IN PARAGRAPHS (A) AND (B), IF THE PERSON OWNS ALL OF THE VOTING SECURITIES OF THE SUBSIDIARY, EXCEPT THE VOTING SECURITIES REQUIRED BY LAW TO BE OWNED BY DIRECTORS OF THAT SUBSIDIARY. THESE RIGHTS ARE IN ADDITION TO, AND WITHOUT DEROGATION FROM, ANY OTHER RIGHTS OR REMEDIES AVAILABLE AT LAW TO AN ONTARIO PURCHASER. THE FOREGOING IS A SUMMARY OF THE RIGHTS AVAILABLE TO AN ONTARIO PURCHASER. NOT ALL DEFENCES UPON WHICH AN ISSUER, SELLING SECURITY HOLDER OR OTHERS MAY RELY ARE DESCRIBED HEREIN. ONTARIO PURCHASERS SHOULD REFER TO THE COMPLETE TEXT OF THE RELEVANT STATUTORY PROVISIONS.

<u>FOR ALBERTA AND BRITISH COLUMBIA RESIDENTS:</u> BY PURCHASING SECURITIES OF THE COMPANY, PURCHASERS IN ALBERTA AND BRITISH COLUMBIA ARE NOT ENTITLED TO THE STATUTORY RIGHTS DESCRIBED ABOVE. IN CONSIDERATION OF THEIR PURCHASE OF SECURITIES IN THE COMPANY AND UPON ACCEPTING A PURCHASE CONFIRMATION IN RESPECT THEREOF, THESE PURCHASERS ARE HEREBY GRANTED BY THE COMPANY, A CONTRACTUAL RIGHT OF ACTION FOR DAMAGES OR RESCISSION THAT IS SUBSTANTIALLY THE SAME AS THE STATUTORY RIGHT OF ACTION PROVIDED TO RESIDENTS OF ONTARIO WHO PURCHASE SECURITIES.

<u>FOR SASKATCHEWAN RESIDENTS:</u> UNDER SASKATCHEWAN SECURITIES LEGISLATION, CERTAIN PURCHASERS WHO PURCHASE SECURITIES OFFERED BY AN OFFERING MEMORANDUM DURING THE PERIOD OF DISTRIBUTION WILL HAVE A STATUTORY RIGHT OF ACTION FOR DAMAGES AGAINST THE ISSUER, EVERY DIRECTOR AND PROMOTER OF THE ISSUER OR ANY SELLING SECURITY HOLDER AS OF THE DATE OF THE OFFERING MEMORANDUM, EVERY PERSON OR COMPANY WHOSE CONSENT HAS BEEN FILED UNDER THE OFFERING MEMORANDUM, EVERY PERSON OR COMPANY THAT SIGNED THE OFFERING MEMORANDUM OR THE AMENDMENT TO THE OFFERING MEMORANDUM AND EVERY PERSON OR COMPANY WHO SELLS THE SECURITIES ON BEHALF OF THE ISSUER OR SELLING SECURITY HOLDER UNDER THE OFFERING MEMORANDUM, OR WHILE STILL THE OWNER OF THE SECURITIES, FOR RESCISSION AGAINST THE ISSUER OR SELLING SECURITY HOLDER IF THE OFFERING MEMORANDUM CONTAINS A MISREPRESENTATION WITHOUT REGARD TO WHETHER THE PURCHASERS RELIED ON THE MISREPRESENTATION. THE RIGHT OF ACTION FOR DAMAGES IS EXERCISABLE NOT LATER THAN THE EARLIER OF ONE YEAR FROM THE DATE THE PURCHASER FIRST HAD KNOWLEDGE OF THE FACTS GIVING RISE TO THE CAUSE OF ACTION AND SIX YEARS FROM THE DATE ON WHICH PAYMENT IS MADE FOR THE SECURITIES. THE RIGHT OF ACTION FOR RESCISSION IS EXERCISABLE NOT LATER THAN 180 DAYS FROM THE DATE ON WHICH PAYMENT IS MADE FOR THE SECURITIES. IF A PURCHASER ELECTS TO EXERCISE THE RIGHT OF ACTION FOR RESCISSION, THE PURCHASER WILL HAVE NO RIGHT OF ACTION FOR DAMAGES AGAINST THE ISSUER OR THE OTHERS LISTED ABOVE. IN NO CASE WILL THE AMOUNT RECOVERABLE IN ANY ACTION EXCEED THE PRICE AT WHICH THE SECURITIES WERE OFFERED TO THE PURCHASER AND IF THE PURCHASER IS SHOWN TO HAVE PURCHASED THE SECURITIES WITH KNOWLEDGE OF THE MISREPRESENTATION, THE ISSUER AND THE OTHERS LISTED ABOVE WILL HAVE NO LIABILITY. IN THE CASE OF AN ACTION FOR DAMAGES, THE ISSUER AND THE OTHERS LISTED ABOVE WILL NOT BE LIABLE FOR ALL OR ANY PORTION OF THE DAMAGES THAT ARE PROVEN TO NOT REPRESENT THE DEPRECIATION IN VALUE OF THE SECURITIES AS A RESULT OF THE MISREPRESENTATION RELIED UPON.

OTHER DEFENCES IN SASKATCHEWAN LEGISLATION INCLUDE THAT NO PERSON OR COMPANY, OTHER THAN THE ISSUER, WILL BE LIABLE IF THE PERSON OR COMPANY PROVES THAT (A) THE OFFERING MEMORANDUM OR ANY AMENDMENT TO IT WAS SENT OR DELIVERED WITHOUT THE PERSON'S OR COMPANY'S KNOWLEDGE OR CONSENT AND THAT, ON BECOMING AWARE OF IT BEING SENT OR DELIVERED, THAT PERSON OR COMPANY IMMEDIATELY GAVE REASONABLE GENERAL NOTICE THAT IT WAS SO SENT OR DELIVERED, OR (B) WITH RESPECT TO ANY PART OF THE OFFERING MEMORANDUM OR ANY AMENDMENT TO IT PURPORTING TO BE MADE ON THE AUTHORITY OF AN EXPERT, OR PURPORTING TO BE A COPY OF, OR AN EXTRACT FROM, A REPORT, AN OPINION OR A STATEMENT OF AN EXPERT, THAT PERSON OR COMPANY HAD NO REASONABLE GROUNDS TO BELIEVE AND DID NOT BELIEVE THAT THERE HAD BEEN A MISREPRESENTATION, THE PART OF THE OFFERING MEMORANDUM OR ANY AMENDMENT TO IT DID NOT FAIRLY REPRESENT THE REPORT, OPINION OR STATEMENT OF THE EXPERT.

NO PERSON OR COMPANY, OTHER THAN THE ISSUER, IS LIABLE FOR ANY PART OF THE OFFERING MEMORANDUM OR THE AMENDMENT TO THE OFFERING MEMORANDUM NOT PURPORTING TO BE MADE ON THE AUTHORITY OF AN EXPERT AND NOT PURPORTING TO BE A COPY OF OR AN EXTRACT FROM A REPORT, OPINION OR STATEMENT OF AN EXPERT, UNLESS THE PERSON OR COMPANY (A) FAILED TO CONDUCT A REASONABLE INVESTIGATION SUFFICIENT TO PROVIDE REASONABLE GROUNDS FOR A BELIEF THAT THERE HAD BEEN NO MISREPRESENTATION, OR (B) BELIEVED THERE HAD BEEN A MISREPRESENTATION.

SIMILAR RIGHTS OF ACTION FOR DAMAGES AND RESCISSION ARE PROVIDED IN SASKATCHEWAN LEGISLATION IN RESPECT OF A MISREPRESENTATION IN ADVERTISING AND SALES LITERATURE DISSEMINATED IN CONNECTION WITH AN OFFERING OF SECURITIES.

SASKATCHEWAN LEGISLATION ALSO PROVIDES THAT WHERE AN INDIVIDUAL MAKES A VERBAL STATEMENT TO A PROSPECTIVE PURCHASER THAT CONTAINS A MISREPRESENTATION RELATING TO THE SECURITY PURCHASED AND THE VERBAL STATEMENT IS MADE EITHER BEFORE OR CONTEMPORANEOUSLY WITH THE PURCHASE OF THE SECURITY, THE PURCHASER HAS, WITHOUT REGARD TO WHETHER THE PURCHASER RELIED ON THE MISREPRESENTATION, A RIGHT OF ACTION FOR DAMAGES AGAINST THE INDIVIDUAL WHO MADE THE VERBAL STATEMENT.

IN ADDITION, SASKATCHEWAN LEGISLATION PROVIDES A PURCHASER WITH THE RIGHT TO VOID THE PURCHASE AGREEMENT AND TO RECOVER ALL MONEY AND OTHER CONSIDERATION PAID BY THE PURCHASER FOR THE SECURITIES IF THE SECURITIES ARE SOLD BY A VENDOR WHO IS TRADING IN SASKATCHEWAN IN CONTRAVENTION OF SASKATCHEWAN SECURITIES LEGISLATION, REGULATIONS OR A DECISION OF THE FINANCIAL AND CONSUMER AFFAIRS AUTHORITY OF SASKATCHEWAN.

THE SASKATCHEWAN LEGISLATION ALSO PROVIDES A RIGHT OF ACTION FOR RESCISSION OR DAMAGES TO A PURCHASER OF SECURITIES TO WHOM AN OFFERING MEMORANDUM OR ANY AMENDMENT TO IT WAS NOT SENT OR DELIVERED PRIOR TO OR AT THE SAME TIME AS THE PURCHASER ENTERS INTO AN AGREEMENT TO PURCHASE THE SECURITIES, AS REQUIRED BY THE SASKATCHEWAN LEGISLATION.

A PURCHASER WHO RECEIVES AN AMENDED OFFERING MEMORANDUM HAS THE RIGHT TO WITHDRAW FROM THE AGREEMENT TO PURCHASE THE SECURITIES BY DELIVERING A NOTICE TO THE ISSUER OR SELLING SECURITY HOLDER WITHIN TWO BUSINESS DAYS OF RECEIVING THE AMENDED OFFERING MEMORANDUM.

THESE RIGHTS ARE IN ADDITION TO, AND WITHOUT DEROGATION FROM, ANY OTHER RIGHTS OR REMEDIES AVAILABLE AT LAW TO A SASKATCHEWAN PURCHASER. THE FOREGOING IS A SUMMARY OF THE RIGHTS AVAILABLE TO A SASKATCHEWAN PURCHASER. NOT ALL DEFENCES UPON WHICH AN ISSUER OR OTHERS MAY RELY ARE DESCRIBED HEREIN. SASKATCHEWAN PURCHASERS SHOULD REFER TO THE COMPLETE TEXT OF THE RELEVANT STATUTORY PROVISIONS.

<u>FOR MANITOBA RESIDENTS</u>: IF AN OFFERING MEMORANDUM OR ANY AMENDMENT THERETO, SENT OR DELIVERED TO A PURCHASER CONTAINS A MISREPRESENTATION, THE PURCHASER WHO PURCHASES THE SECURITY IS DEEMED TO HAVE RELIED ON THE MISREPRESENTATION IF IT WAS A MISREPRESENTATION AT THE TIME OF THE PURCHASE AND HAS A STATUTORY RIGHT OF ACTION FOR DAMAGES AGAINST THE ISSUER, EVERY DIRECTOR OF THE ISSUER AT THE DATE OF THE OFFERING MEMORANDUM, AND EVERY PERSON OR COMPANY WHO SIGNED THE OFFERING MEMORANDUM. ALTERNATIVELY, THE PURCHASER MAY ELECT TO EXERCISE A STATUTORY RIGHT OF RESCISSION AGAINST THE ISSUER, IN WHICH CASE THE PURCHASER WILL HAVE NO RIGHT OF ACTION FOR DAMAGES AGAINST ANY OF THE AFOREMENTIONED PERSONS.

UNLESS OTHERWISE PROVIDED UNDER APPLICABLE SECURITIES LEGISLATION, NO ACTION SHALL BE COMMENCED TO ENFORCE ANY OF THE FOREGOING RIGHTS MORE THAN: (A) IN THE CASE OF AN ACTION FOR RESCISSION, 180 DAYS FROM THE DATE OF THE TRANSACTION THAT GAVE RISE TO THE CAUSE OF ACTION, OR (B) IN THE CASE OF AN ACTION FOR DAMAGES, THE EARLIER OF (I) 180 DAYS AFTER THE PURCHASER FIRST HAD KNOWLEDGE OF THE FACTS GIVING RISE TO THE CAUSE OF ACTION, OR (II) TWO YEARS AFTER THE DATE OF THE TRANSACTION THAT GAVE RISE TO THE CAUSE OF ACTION.

A PURCHASER TO WHOM THE OFFERING MEMORANDUM IS REQUIRED TO BE SENT MAY RESCIND THE CONTRACT TO PURCHASE THE SECURITIES BY SENDING A WRITTEN NOTICE OF RESCISSION TO THE ISSUER NOT LATER THAN MIDNIGHT ON THE SECOND DAY, EXCLUDING SATURDAYS, SUNDAY AND HOLIDAYS, AFTER THE PURCHASER SIGNS THE AGREEMENT TO PURCHASE THE SECURITIES.

SECURITIES LEGISLATION IN MANITOBA PROVIDES A NUMBER OF LIMITATIONS AND DEFENCES TO SUCH ACTIONS, INCLUDING:

A) IN AN ACTION FOR RESCISSION OR DAMAGES, NO PERSON OR COMPANY WILL BE LIABLE IF IT PROVES THAT THE PURCHASER PURCHASED THE SECURITIES WITH KNOWLEDGE OF THE MISREPRESENTATION;

B) IN AN ACTION FOR DAMAGES, NO PERSON OR COMPANY WILL BE LIABLE FOR ALL OR ANY PORTION OF THE DAMAGES THAT IT PROVES DO NOT REPRESENT THE DEPRECIATION IN VALUE OF THE SECURITIES AS A RESULT OF THE MISREPRESENTATION RELIED UPON; AND

C) IN NO CASE WILL THE AMOUNT RECOVERABLE UNDER THE RIGHT OF ACTION DESCRIBED ABOVE EXCEED THE PRICE AT WHICH THE SECURITIES WERE OFFERED UNDER THE OFFERING MEMORANDUM.

<u>FOR NEW BRUNSWICK RESIDENTS</u>: UNDER NEW BRUNSWICK SECURITIES LEGISLATION, CERTAIN PURCHASERS WHO PURCHASE SECURITIES OFFERED BY AN OFFERING MEMORANDUM DURING THE PERIOD OF DISTRIBUTION WILL HAVE A STATUTORY RIGHT OF ACTION FOR DAMAGES, OR WHILE STILL THE OWNER OF THE SECURITIES, FOR RESCISSION AGAINST THE ISSUER AND ANY SELLING SECURITY HOLDER IN THE EVENT THAT THE OFFERING MEMORANDUM, OR A DOCUMENT INCORPORATED BY REFERENCE IN OR DEEMED INCORPORATED INTO THE OFFERING MEMORANDUM, CONTAINS A MISREPRESENTATION WITHOUT REGARD TO WHETHER THE PURCHASERS RELIED ON THE MISREPRESENTATION. THE RIGHT OF ACTION FOR DAMAGES IS EXERCISABLE NOT LATER THAN THE EARLIER OF ONE YEAR FROM THE DATE THE PURCHASER FIRST HAD KNOWLEDGE OF THE FACTS GIVING RISE TO THE CAUSE OF ACTION AND SIX YEARS FROM THE DATE ON WHICH PAYMENT IS MADE FOR THE SECURITIES. THE RIGHT OF ACTION FOR RESCISSION IS EXERCISABLE NOT LATER THAN 180 DAYS FROM THE DATE ON WHICH PAYMENT IS MADE FOR THE SECURITIES. IF A PURCHASER ELECTS TO EXERCISE THE RIGHT OF ACTION FOR RESCISSION, THE PURCHASER WILL HAVE NO RIGHT OF ACTION FOR DAMAGES AGAINST THE ISSUER OR ANY SELLING SECURITY HOLDER. IN NO CASE WILL THE AMOUNT RECOVERABLE IN ANY ACTION EXCEED THE PRICE AT WHICH THE SECURITIES WERE OFFERED TO THE PURCHASER AND IF THE PURCHASER IS SHOWN TO HAVE PURCHASED THE SECURITIES WITH KNOWLEDGE OF THE MISREPRESENTATION, THE ISSUER AND ANY SELLING SECURITY HOLDER WILL HAVE NO LIABILITY. IN THE CASE OF AN ACTION FOR DAMAGES, THE ISSUER AND ANY SELLING SECURITY HOLDER WILL NOT BE LIABLE FOR ALL OR ANY PORTION OF THE DAMAGES THAT ARE PROVEN TO NOT REPRESENT THE DEPRECIATION IN VALUE OF THE SECURITIES AS A RESULT OF THE MISREPRESENTATION RELIED UPON.

THESE RIGHTS ARE IN ADDITION TO, AND WITHOUT DEROGATION FROM, ANY OTHER RIGHTS OR REMEDIES AVAILABLE AT LAW TO A NEW BRUNSWICK PURCHASER. THE FOREGOING IS A SUMMARY OF THE RIGHTS AVAILABLE TO A NEW BRUNSWICK PURCHASER. NOT ALL DEFENCES UPON WHICH AN ISSUER, SELLING SECURITY HOLDER OR OTHERS MAY RELY ARE DESCRIBED HEREIN. NEW BRUNSWICK PURCHASERS SHOULD REFER TO THE COMPLETE TEXT OF THE RELEVANT STATUTORY PROVISIONS.

<u>FOR NOVA SCOTIA RESIDENTS</u>: UNDER NOVA SCOTIA SECURITIES LEGISLATION, CERTAIN PURCHASERS WHO PURCHASE SECURITIES OFFERED BY AN OFFERING MEMORANDUM DURING THE PERIOD OF DISTRIBUTION WILL HAVE A STATUTORY RIGHT OF ACTION FOR DAMAGES AGAINST THE ISSUER OR OTHER SELLER AND THE DIRECTORS OF THE ISSUER AS OF THE DATE THE OFFERING MEMORANDUM, OR WHILE STILL THE OWNER OF THE SECURITIES, FOR RESCISSION AGAINST THE ISSUER OR OTHER SELLER IF THE OFFERING MEMORANDUM, OR A DOCUMENT INCORPORATED BY REFERENCE IN OR DEEMED INCORPORATED INTO THE OFFERING MEMORANDUM, CONTAINS A MISREPRESENTATION WITHOUT REGARD TO WHETHER THE PURCHASERS RELIED ON THE MISREPRESENTATION. THE RIGHT OF ACTION FOR DAMAGES OR RESCISSION IS EXERCISABLE NOT LATER THAN 120 DAYS FROM THE DATE ON WHICH PAYMENT IS MADE FOR THE SECURITIES OR AFTER THE DATE ON WHICH THE INITIAL PAYMENT FOR THE SECURITIES WAS MADE WHERE PAYMENTS SUBSEQUENT TO THE INITIAL PAYMENT ARE MADE PURSUANT TO A CONTRACTUAL COMMITMENT ASSUMED PRIOR TO, OR CONCURRENTLY WITH, THE INITIAL PAYMENT. IF A PURCHASER ELECTS TO EXERCISE THE RIGHT OF ACTION FOR RESCISSION, THE PURCHASER WILL HAVE NO RIGHT OF ACTION FOR DAMAGES AGAINST THE ISSUER OR OTHER SELLER OR THE DIRECTORS OF THE ISSUER. IN NO CASE WILL THE AMOUNT RECOVERABLE IN ANY ACTION EXCEED THE PRICE AT WHICH THE SECURITIES WERE OFFERED TO THE PURCHASER AND IF THE PURCHASER IS SHOWN TO HAVE PURCHASED THE SECURITIES WITH KNOWLEDGE OF THE MISREPRESENTATION, THE ISSUER OR OTHER SELLER AND THE DIRECTORS OF THE ISSUER WILL HAVE NO LIABILITY. IN THE CASE OF AN ACTION FOR DAMAGES, THE ISSUER OR OTHER SELLER AND THE DIRECTORS OF THE ISSUER WILL NOT BE LIABLE FOR ALL OR ANY PORTION OF THE DAMAGES THAT ARE PROVEN TO NOT REPRESENT THE DEPRECIATION IN VALUE OF THE SECURITIES AS A RESULT OF THE MISREPRESENTATION RELIED UPON.

IN ADDITION, A PERSON OR COMPANY, OTHER THAN THE ISSUER, IS NOT LIABLE WITH RESPECT TO ANY PART OF THE OFFERING MEMORANDUM OR ANY AMENDMENT TO THE OFFERING MEMORANDUM NOT PURPORTING (A) TO BE MADE ON THE AUTHORITY OF AN EXPERT OR (B) TO BE A COPY OF, OR AN EXTRACT FROM, A REPORT, OPINION OR STATEMENT OF AN EXPERT, UNLESS THE PERSON OR COMPANY (I) FAILED TO CONDUCT A REASONABLE INVESTIGATION TO PROVIDE REASONABLE GROUNDS FOR A BELIEF THAT THERE HAD BEEN NO MISREPRESENTATION OR (II) BELIEVED THAT THERE HAD BEEN A MISREPRESENTATION.

A PERSON OR COMPANY, OTHER THAN THE ISSUER, WILL NOT BE LIABLE IF THAT PERSON OR COMPANY PROVES THAT (A) THE OFFERING MEMORANDUM OR ANY AMENDMENT TO THE OFFERING MEMORANDUM WAS SENT OR DELIVERED TO THE PURCHASER WITHOUT THE PERSON'S OR COMPANY'S KNOWLEDGE OR CONSENT AND THAT, ON BECOMING AWARE OF ITS DELIVERY, THE PERSON OR COMPANY GAVE REASONABLE GENERAL NOTICE THAT IT WAS DELIVERED WITHOUT THE PERSON'S OR COMPANY'S KNOWLEDGE OR CONSENT, (B) AFTER DELIVERY OF THE OFFERING MEMORANDUM OR ANY AMENDMENT TO THE OFFERING MEMORANDUM AND BEFORE THE PURCHASE OF THE SECURITIES BY THE PURCHASER, ON BECOMING AWARE OF ANY MISREPRESENTATION IN THE OFFERING MEMORANDUM OR ANY AMENDMENT TO THE OFFERING MEMORANDUM, THE PERSON OR COMPANY WITHDREW THE PERSON'S OR COMPANY'S CONSENT TO THE OFFERING MEMORANDUM OR ANY AMENDMENT TO THE OFFERING MEMORANDUM, AND GAVE REASONABLE GENERAL NOTICE OF THE WITHDRAWAL AND THE REASON FOR IT, OR (C) WITH RESPECT TO ANY PART OF THE OFFERING MEMORANDUM OR ANY AMENDMENT TO THE OFFERING MEMORANDUM PURPORTING (I) TO BE MADE ON THE AUTHORITY OF AN EXPERT, OR (II) TO BE A COPY OF, OR AN EXTRACT FROM, A REPORT, AN OPINION OR A STATEMENT OF AN EXPERT, THE PERSON OR COMPANY HAD NO REASONABLE GROUNDS TO BELIEVE AND DID NOT BELIEVE THAT (A) THERE HAD BEEN A MISREPRESENTATION, OR (B) THE RELEVANT PART OF THE OFFERING MEMORANDUM OR ANY AMENDMENT TO THE OFFERING MEMORANDUM DID NOT FAIRLY REPRESENT THE REPORT, OPINION OR STATEMENT OF THE EXPERT, OR WAS NOT A FAIR COPY OF, OR AN EXTRACT FROM, THE REPORT, OPINION OR STATEMENT OF THE EXPERT.

THESE RIGHTS ARE IN ADDITION TO, AND WITHOUT DEROGATION FROM, ANY OTHER RIGHTS OR REMEDIES AVAILABLE AT LAW TO A NOVA SCOTIA PURCHASER. THE FOREGOING IS A SUMMARY OF THE RIGHTS AVAILABLE TO A NOVA SCOTIA PURCHASER. NOT ALL DEFENCES UPON WHICH AN ISSUER OR OTHER SELLER OR OTHERS MAY RELY ARE DESCRIBED HEREIN. NOVA SCOTIA PURCHASERS SHOULD REFER TO THE COMPLETE TEXT OF THE RELEVANT STATUTORY PROVISIONS.

FOR PRINCE EDWARD ISLAND RESIDENTS: IF AN OFFERING MEMORANDUM, TOGETHER WITH ANY AMENDMENT THERETO, IS DELIVERED TO A PURCHASER AND THE OFFERING MEMORANDUM, OR ANY AMENDMENT THERETO, CONTAINS A MISREPRESENTATION, A PURCHASER HAS, WITHOUT REGARD TO WHETHER THE PURCHASER RELIED ON THE MISREPRESENTATION, A STATUTORY RIGHT OF ACTION FOR DAMAGES AGAINST (A) THE ISSUER, (B) SUBJECT TO CERTAIN ADDITIONAL DEFENCES, AGAINST EVERY DIRECTOR OF THE ISSUER AT THE DATE OF THE OFFERING MEMORANDUM AND (C) EVERY PERSON OR COMPANY WHO SIGNED THE OFFERING MEMORANDUM, BUT MAY ELECT TO EXERCISE THE RIGHT OF RESCISSION AGAINST THE ISSUER (IN WHICH CASE THE PURCHASER SHALL HAVE NO RIGHT OF ACTION FOR DAMAGES AGAINST THE AFOREMENTIONED PERSONS OR COMPANY).

NO ACTION SHALL BE COMMENCED TO ENFORCE THE RIGHT OF ACTION DISCUSSED ABOVE MORE THAN: (A) IN THE CASE OF AN ACTION FOR RESCISSION, 180 DAYS AFTER THE DATE OF THE TRANSACTION THAT GAVE RISE TO THE CAUSE OF ACTION; OR (B) IN THE CASE OF ANY ACTION FOR DAMAGES, THE EARLIER OF: (I) 180 DAYS AFTER THE PURCHASER FIRST HAD KNOWLEDGE OF THE FACTS GIVING RISE TO THE CAUSE OF ACTION; OR (II) THREE YEARS AFTER THE DATE OF THE TRANSACTION THAT GAVE RISE TO THE CAUSE OF ACTION.

SECURITIES LEGISLATION IN PRINCE EDWARD ISLAND PROVIDES A NUMBER OF LIMITATIONS AND DEFENCES TO SUCH ACTIONS, INCLUDING:

A) NO PERSON OR COMPANY WILL BE LIABLE IF IT PROVES THAT THE PURCHASER PURCHASED THE SECURITIES WITH KNOWLEDGE OF THE MISREPRESENTATION;

B) IN AN ACTION FOR DAMAGES, THE DEFENDANT IS NOT LIABLE FOR ALL OR ANY PORTION OF THE DAMAGES THAT IT PROVES DOES NOT REPRESENT THE DEPRECIATION IN VALUE OF THE SECURITIES AS A RESULT OF THE MISREPRESENTATION RELIED UPON; AND

C) IN NO CASE SHALL THE AMOUNT RECOVERABLE UNDER THE RIGHT OF ACTION DESCRIBED HEREIN EXCEED THE PRICE AT WHICH THE SECURITIES WERE OFFERED UNDER THE OFFERING MEMORANDUM, OR ANY AMENDMENT THERETO.

<u>FOR NEWFOUNDLAND AND LABRADOR RESIDENTS:</u> IF AN OFFERING MEMORANDUM, TOGETHER WITH ANY AMENDMENT THERETO, CONTAINS A MISREPRESENTATION, A PURCHASER HAS, WITHOUT REGARD TO WHETHER THE PURCHASER RELIED ON THE MISREPRESENTATION, A STATUTORY RIGHT OF ACTION FOR DAMAGES AGAINST (A) THE ISSUER, (B) SUBJECT TO CERTAIN ADDITIONAL DEFENCES, AGAINST EVERY DIRECTOR OF THE ISSUER AT THE DATE OF THE OFFERING MEMORANDUM AND (C) EVERY PERSON WHO SIGNED THE OFFERING MEMORANDUM, BUT MAY ELECT TO EXERCISE THE RIGHT OF RESCISSION AGAINST THE ISSUER (IN WHICH CASE THE PURCHASER SHALL HAVE NO RIGHT OF ACTION FOR DAMAGES AGAINST THE AFOREMENTIONED PERSONS).

NO ACTION SHALL BE COMMENCED TO ENFORCE THE RIGHT OF ACTION DISCUSSED ABOVE MORE THAN: (A) IN THE CASE OF AN ACTION FOR RESCISSION, 180 DAYS AFTER THE DATE OF THE TRANSACTION THAT GAVE RISE TO THE CAUSE OF ACTION; OR (B) IN THE CASE OF ANY ACTION FOR DAMAGES, THE EARLIER OF: (I) 180 DAYS AFTER THE PURCHASER FIRST HAD KNOWLEDGE OF THE FACTS GIVING RISE TO THE CAUSE OF ACTION; OR (II) THREE YEARS AFTER THE DATE OF THE TRANSACTION THAT GAVE RISE TO THE CAUSE OF ACTION. SECURITIES LEGISLATION IN NEWFOUNDLAND AND LABRADOR PROVIDES A NUMBER OF LIMITATIONS AND DEFENCES TO SUCH ACTIONS, INCLUDING:

A) NO PERSON WILL BE LIABLE IF IT PROVES THAT THE PURCHASER PURCHASED THE SECURITIES WITH KNOWLEDGE OF THE MISREPRESENTATION;

B) IN AN ACTION FOR DAMAGES, THE DEFENDANT IS NOT LIABLE FOR ALL OR ANY PORTION OF THE DAMAGES THAT IT PROVES DOES NOT REPRESENT THE DEPRECIATION IN VALUE OF THE SECURITIES AS A RESULT OF THE MISREPRESENTATION RELIED UPON; AND

C) IN NO CASE SHALL THE AMOUNT RECOVERABLE UNDER THE RIGHT OF ACTION DESCRIBED HEREIN EXCEED THE PRICE AT WHICH THE SECURITIES WERE OFFERED UNDER THE OFFERING MEMORANDUM, OR ANY AMENDMENT THERETO.

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**THE AGGREGATE AMOUNT SUBSCRIBED FOR HEREBY IS:**

**$__________ Shares at a per Share Purchase Price of $1.00 per share** 

Manner in Which Title is to be Held. (check one)

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| | |
|:---|:---|
| Individual Ownership | Community Property |
| Joint Tenant with Right of Survivorship (both parties must sign) | Joint Tenant with Right of Survivorship (both parties must sign) |
| Partnership | Tenants in common |
| Corporation or Trust | IRA or Keogh |
| Other (please indicate) |  |

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| | |
|:---|:---|
| INDIVIDUAL INVESTORS | ENTITY INVESTORS |
|  | Name of entity, if any |
| Signature (Individual) | By: |
|  | \*Signature |
|  | Its: |
| Signature (Joint) | Title: |
| (all record holders must sign) |  |
| Name(s) Typed or Printed | Name Typed or Printed |
| Address to Which Correspondence Should be Directed | Address to Which Correspondence Should be Directed |
| City, State and Zip Code | City, State and Zip Code |
| Email Address for Notification | Email Address for Notification |
| Name(s) Typed or Tax Identification or <br> Social Security Number | Name(s) Typed or Tax Identification or <br> Social Security Number |

---

\* *If Securities are being subscribed for by any entity, the Certificate of Signatory on the next page must also be completed*

The foregoing subscription is accepted and the Company hereby agrees to be bound by its terms on _____ day of _________________, 202__.

---

| | | |
|:---|:---|:---|
|  | **Droneify Ltd.** | **Droneify Ltd.** |
| Dated: | By: |  |
|  |  | Name: |
|  |  | Its: |

---

**CERTIFICATE OF SIGNATORY**

(To be completed if Securities are being subscribed for by an entity)

---

| | |
|:---|:---|
| I, _____________________________, the _____________________________________ | I, _____________________________, the _____________________________________ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(name of signatory****)* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(title)*** |

---

---

| | |
|:---|:---|
| Of ______________________________________________("Entity"), a ____________________________________ | Of ______________________________________________("Entity"), a ____________________________________ |
| &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;***(name of entity)*** | &nbsp;&nbsp;&nbsp;***(type of entity)*** |

---

Organized under the laws of _______________, hereby certify that I am empowered and duly authorized by the Entity to execute the Subscription Agreement and to purchase the Securities, and certify further that the Subscription Agreement has been duly and validly executed on behalf of the Entity and constitutes a legal and binding obligation of the Entity.

IN WITNESS WHEREOF, I have set my hand this ______ day of ___________, 2022.

***(Signature)***

## Exhibit 10.3

**Exhibit 10.3**

![](ex10-3_001.jpg)

**FORM OF SERVICE AGREEMENT**

**THE AGREEMENT** (the "Agreement") made and entered into this ____ day of __________, ___ (the "Execution Date").

**BETWEEN**

**Droneify Ltd. ("Droneify")** of **103-482 South Service Road East, Oakville, ON, Canada, L6J 2X6**,

and

**-_____________________________ ("RECIPIENT")** of **_____________________________________________________**

(individually the "Party" and collectively the "Parties").

**BACKGROUND**

&nbsp;&nbsp;&nbsp;&nbsp;A. The Parties wish to enter into an Agreement of mutual benefit.

&nbsp;&nbsp;&nbsp;&nbsp;B. The terms and conditions of this Agreement sets out the terms and conditions governing this association.

**IN CONSIDERATION OF** the matters described above, and of the mutual benefits and obligations set forth in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, **Droneify** and **Recipient** agree as follows:

1. **Scope of Work** 

&nbsp;&nbsp;&nbsp;&nbsp;a) The RECIPIENT hereby agrees to conduct RPAS/UAV/Drone flights and services (the "Services") in _______________ (region)
on behalf of Droneify and its Client, ______________________________ (the "Client") upon acceptance of a provided Scope
of Work.

&nbsp;&nbsp;&nbsp;&nbsp;b) The Services will include:

i. &nbsp;&nbsp;&nbsp;&nbsp;c) To the extent possible, RECIPIENT will source, assign, and fulfill data collection services utilizing RPAS pilots and platforms within
its network.

&nbsp;&nbsp;&nbsp;&nbsp;d) The RECIPIENT will only conduct flights with individuals holding an Advanced Operations Pilot Certificate issued by Transport Canada
and will abide by the rules and regulations listed on the certificate and set out under the Canadian Aviation Regulations (CARs).

103-482 SOUTH SERVICE RD E **•** OAKVILLE, ONTARIO, CANADA **•** L6J 2X6

**T** 1-866-895-7466 **• E** INFO@DRONEIFY.COM

&nbsp;&nbsp;&nbsp;&nbsp;e) The RECIPIENT will conduct flights with one of the following RPAS platforms:

i. &nbsp;&nbsp;&nbsp;&nbsp;f) The RECIPIENT will complete the Droneify Client onboarding to become an approved drone operator and receive assignments (roughly 1-hour).

&nbsp;&nbsp;&nbsp;&nbsp;g) The RECIPIENT will complete an orientation meeting via WebEx and subsequently receive a training project to complete at a property
of their choosing.

2. **Compensation** 

&nbsp;&nbsp;&nbsp;&nbsp;a) The Parties agree to enter into the Agreement without a formal pricing structure established.

&nbsp;&nbsp;&nbsp;&nbsp;b) Droneify will be invoiced when the services are complete and will be offered Net 30 terms.

&nbsp;&nbsp;&nbsp;&nbsp;c) The RECIPIENT will not invoice nor discuss compensation structure with the Client directly at any time.

&nbsp;&nbsp;&nbsp;&nbsp;d) The Parties agree to collaborate on pricing according to competition and Client feedback.

&nbsp;&nbsp;&nbsp;&nbsp;e) The Parties agree to discuss opportunities for pricing optimization if warranted and under circumstances that are mutually agreed
upon.

3. **Term** 

&nbsp;&nbsp;&nbsp;&nbsp;a) The term of this Agreement (the "Term") will begin on the date of this Agreement and will remain in full force and effect
for a period of (1) year. The Term of this Agreement may be extended with the written consent of the Parties.

4. **Service Level Expectations** 

&nbsp;&nbsp;&nbsp;&nbsp;a) RECIPIENT agrees to perform Services at the specified date and time of the Client service request, whenever possible, and in consideration
that some Services will require Client coordination, additional regulatory approvals, pilot and equipment constraints. In all cases, the
Parties agree to do everything within their power to fulfill services according to Client requirements.

&nbsp;&nbsp;&nbsp;&nbsp;b) RECIPIENT will staff Services conducted on behalf of Droneify and its Client with appropriately trained, licensed, and qualified pilots
as dictated by the needs of the missions.

&nbsp;&nbsp;&nbsp;&nbsp;c) RECIPIENT agrees to disclose pilot and equipment details to Droneify for any Services performed on behalf of Droneify Clients.

&nbsp;&nbsp;&nbsp;&nbsp;d) RECIPIENT agrees to archive all relevant documentation completed on behalf of Droneify and its Client for a period of (2) years and
will provide copies to Droneify upon request.

&nbsp;&nbsp;&nbsp;&nbsp;e) RECIPIENT will provide the data within the job assignment specified time frame, upon flight completion, wherever possible and in consideration
that some projects may require an extension of data delivery. The Parties agree to do everything within their power to deliver data in
a timely manner according to Client requirements.

&nbsp;&nbsp;&nbsp;&nbsp;f) RECIPIENT will deliver data via the Client online platform.

page 1 of 4

Droneify Form of Service Agreement

Version 1.1a

5. **Responsibility** 

&nbsp;&nbsp;&nbsp;&nbsp;a) Most projects undertaken by Droneify include various forms of professional service agreements between Droneify and its Client. These
agreements often include clauses and provisions requiring that Droneify take responsibility, and indemnify the Client, for claims or costs
arising from Droneify's services on the project. RECIPIENT acknowledges that Droneify is relying upon RECIPIENT to provide services
that do not cause such claims by the Client, or any other third-party against Droneify.

&nbsp;&nbsp;&nbsp;&nbsp;b) RECIPIENT may, upon its request, obtain a copy of those parts of Droneify's agreement with its Client that describes Droneify's
responsibilities and indemnification to the Client on the project, pertaining to RECIPIENT's services.

6. **Insurance** 

&nbsp;&nbsp;&nbsp;&nbsp;a) RECIPIENT to provide insurance as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Commercial General Liability or Aviation General Liability with minimum limits of $1MM per occurrence and in the aggregate, inclusive
for bodily injury, death and damage to property including loss of use thereof. The liability policy shall name Droneify as additional
insured thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. RECIPIENT further agrees that all flights conducted on behalf of Droneify and its Clients will be carried out by pilots with minimum
$1MM general liability insurance, not accepting verifly or other on-demand insurance methods.

&nbsp;&nbsp;&nbsp;&nbsp;b) RECIPIENT shall provide Droneify proof of the insurance required under this section by means of a COI. All subsequent renewal certificates,
during the term of this Agreement, shall be provided within 30 days of the policy renewal date.

c)

7. **Indemnification** 

&nbsp;&nbsp;&nbsp;&nbsp;a) The RECIPIENT shall indemnify, defend, pay on behalf of and hold harmless Droneify Ltd., its officers, officials, agents, representatives,
employees, and volunteers from and against all loss, claims, demands, costs (including solicitor client costs), damages, actions, suits,
or proceedings arising out of or in connection with the activities or performance by the Contractor, his agents, representatives, employees,
or subcontractors. The liability of the Contractor shall survive the termination of this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;b) Nothing in the agreement documents or any approval, expressed or implied, by the Droneify shall relieve the Contractor of any liability
for latent defects or inherent vice which may be imposed by law.

8. **Co-Selling and Joint Proposals** 

&nbsp;&nbsp;&nbsp;&nbsp;a) The Parties agree to seek and identify RFPs where they can collaborate and execute on a joint offering to win new customers or projects.

&nbsp;&nbsp;&nbsp;&nbsp;b) The Parties agree to seek and identify gaps in current Client relationships to add value in offering Services either Party is capable
of fulfilling.

page 2 of 4

Droneify Form of Service Agreement

Version 1.1a

9. **Customer Ownership & Branding** 

&nbsp;&nbsp;&nbsp;&nbsp;a) The Droneify and Client brand and name will take prominence in customer interactions wherever possible (deliverables, reports, e-mails,
physical customer interactions).

10. **Non-Compete** 

&nbsp;&nbsp;&nbsp;&nbsp;a) RECIPIENT agrees to not pursue the Client(s) introduced by Droneify, or in any way compete or threaten existing agreements between
Droneify and its Client(s) while this Agreement is in effect.

&nbsp;&nbsp;&nbsp;&nbsp;b) The RECIPIENT will disclose if a relationship with the Client can be proven to exist prior to the execution of this Agreement. A relationship
in this context includes a signed service agreement and contractual history including financial compensation for services rendered.

11. **Data Ownership** 

&nbsp;&nbsp;&nbsp;&nbsp;a) Droneify and its Client will have exclusive ownership and rights to the data acquired through Services conducted for Droneify and
its Clients.

&nbsp;&nbsp;&nbsp;&nbsp;b) RECIPIENT will have access to all metadata garnered through Services fulfilled by Droneify, in consideration that access to such metadata
will improve the operational efficiency of Droneify, unless a specific Client request prevents this.

&nbsp;&nbsp;&nbsp;&nbsp;c) In all cases, the Parties agree to abide by any Client requirements with respect to data transmission and hosting.

12. **Future Collaboration** 

&nbsp;&nbsp;&nbsp;&nbsp;a) Both Parties agree to explore future opportunities to collaborate on projects, research and development, training, custom solutions
for large Clients / problems, possible geographic and vertical expansion, cross-selling or other opportunities mutually agreed upon.

13. **Governing Law** 

&nbsp;&nbsp;&nbsp;&nbsp;a) This Agreement is governed by, and construed in accordance with, the laws and exclusive jurisdiction of the province of Ontario and
the laws of Canada applicable therein. Each Party hereby: (i) submits and attorns to the exclusive jurisdiction of the courts of the province
of Ontario; and (ii) waives trial by jury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) **Modification** 

&nbsp;&nbsp;&nbsp;&nbsp;a) This Agreement may not be modified or amended without the mutual written agreement of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;c) **Execution and Signatures** 

&nbsp;&nbsp;&nbsp;&nbsp;a) This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed an original, but such
counterparts shall together constitute one and the same Agreement. The Parties agree that electronic signatures are acceptable and enforceable.
An electronic signature can be a wet signature that is scanned and sent electronically to the other Part in a portable document format
(PDF).

page 3 of 4

Droneify Form of Service Agreement

Version 1.1a

**IN WITNESS WHEREOF**, the Parties have executed this Agreement as of the day and year first written above.

---

| |
|:---|
| By: |
| Name: |
| Title: |
| Date: |

---

---

| |
|:---|
| **Droneify Ltd.** |
| By: |
| Name: |
| Title: |
| Date: |

---

page 4 of 4

## Exhibit 10.4

**Exhibit 10.4**

**TEAMING AGREEMENT**

**THIS TEAMING AGREEMENT** is made on the **6<sup>th</sup> of January 2023**

**BETWEEN**

**Aerodyne Measure Inc. (Aerodyne) (Company Registration No. 7612090)** a company incorporated under the laws of United States of America, having its business address at **1930 Sir Isaac Newton Square, Suite 240, Reston VA 20191, USA**

**AND**

**Droneify Ltd. (Droneify) (Corporation No. 2458798)**, a company incorporated under the laws of the Province of Ontario, having its registered principal office at the address **103-482 South Service Road East, Oakville, Ontario, Canada L6J 2X6**

Aerodyne and Droneify and may be referred to individually as a "Party" and shall be referred to collectively as the "Parties."

**BACKGROUND**

**WHEREAS,** Aerodyne is part of Aerodyne Group, a leading International drone-based managed solutions provider that offers bespoke AI-driven solutions & services for the Critical Infrastructure Asset Inspection & Management, Project Monitoring & Reporting, Engineering & Survey, Precision Agriculture, Security & Surveillance, Advanced Drone Delivery and other services related to the Drone Technology, Data Technology and Digital Transformation.

**WHEREAS**, Aerodyne is desirous of providing Aerodyne's solutions and services to the potential clients in Canada

**WHEREAS,** Droneify is a Drone Service Provider based in Canada that offer industrial inspections to the Oil & Gas, Architecture, Engineering & Construction, Renewables (Wind Turbine & Solar), Utilities (Telco & Power line) and Precision Agriculture sectors. Droneify also sells drones and provides drone related consultancy, related to the Canadian Civil Aviation Authority to its clients in Canada.

**WHEREAS**, Aerodyne and Droneify propose to enter into this Agreement enabling both Aerodyne and Droneify to jointly pursue the business opportunities related to both Party's solutions and services, that Aerodyne that Droneify shall jointly market and to the potential clients in Canada and other countries. Aerodyne and Droneify may also explore a subsequent equity investment by Aerodyne into Droneify, and will enter into separate agreements should both Parties decide to do so.

Page 1 of 11

**NOW, THEREFORE,** in order to collectively obtain a contract award from the Customers of Droneify, the Parties agree to enter into this Agreement, subject to the following terms and conditions;

**1.** **DEFINITIONS** 

In this Agreement, the following words shall have the following meanings:

"Services" means services provided by Aerodyne and/or Droneify to the Customer;

"Customer" means existing or prospective end users or clients within the Territory for the Services;

"Proposal" means joint submissions and/or proposals of the Services submitted by Droneify to the Customers in response to Customer's requirement;

"Project" means Customer's opportunities that the Parties mutually agree to cooperate and jointly execute;

" Project Schedule" means schedule with detail terms and conditions of the Project to be undertaken by the Parties;

"Project Term" means period of cooperation and term of the Project execution;

"Territory" means Canada

"Business Day" means working days, Monday to Friday.

2. SCOPE OF COOPERATION

2.1 Droneify and Aerodyne agree to submit the Proposals and execute the secured Projects within the Territory
jointly, in the manner set forth below. The details of each Project will be specifically set forth in a Project Schedule which shall detail
the Customer, the Scope of Services to be performed by each Party, the Payment Terms, the Project duration and any other terms and conditions
related to the Project.

2.2 Aerodyne may by itself or through its subsidiaries and or affiliates perform the roles & responsibilities,
which shall be :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Provide the global experience & capabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Jointly identify and qualify the potential Customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Jointly prepare the Project Proposals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Assist to secure the Projects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Fund the Projects if required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Provide additional and/or specialised hardware as and when required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. Manage and execute the data processing activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. Provide and manage the software platform.

2.3 Droneify's role and responsibilities shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Jointly identify and qualify the potential Customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Jointly prepare the Project Proposals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Submit the Proposal to the Customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Secure the Projects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Secure the approval and permit to operate commercial drone operations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Manage and execute the data capture activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. Account Management including collection of payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. Customers Relationship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. Provide additional expertise as and when required

Page 2 of 11

2.4 Aerodyne shall prepare the joint Proposals for the Customers and Droneify shall submit such Proposals
to the Customers as Aerodyne and Droneify's joint solutions. Droneify shall take the lead to secure the Projects with the assistance
from Aerodyne.

2.5 The Parties will perform reasonable additional efforts to secure the Projects, including attending site
visit and/or meetings with the Customers and responding promptly to Customer's requests, at their own costs.

2.6 The Projects may be awarded by the Customers either to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Aerodyne and Droneify Teaming; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Aerodyne; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Droneify.

Regardless of the awards, the Projects shall be executed jointly by Aerodyne and Droneify as per the Clause 2.2, Clause 2.3 and the terms & conditions that are mutually agreed in the Project Schedule.

2.7 Subject to such terms and conditions that Aerodyne may agree the Parties may extend the geographical scope
of this Agreement to the areas other than the Territory, on project basis.

2.8 Droneify understands and acknowledges that drone and drone related services in Canada are under the supervision
and control of Transport Canada's Canadian Civil Aviation Authority in addition to the other relevant regulatory authorities and
for other parts of , it will be under the supervision and control of the Civil Aviation Authority of the respective countries. Accordingly,
Droneify warrants that it will comply with all the regulatory requirements including obtaining necessary registrations, approval and/or
permissions to operate commercial drone services from appropriate regulatory/statutory authorities within the Territory that are applicable
to the proper and lawful provision of the Projects. Droneify warrants that it will ensure that all the regulatory approvals/permissions
are obtained prior to commencement of operations of drone related solutions/services within the Territory.

2.9 The Parties shall comply with the data protection laws, rules, regulations including the Information Technology
Act 2000 and any amendments/notifications issued thereunder. Parties shall not be responsible or liable for any compliance or non-compliance
of regulatory framework by each other or any consequences arising from provision of drone related solutions or services in Canada including
both civil and criminal.

**3.** **RELATIONSHIP OF THE PARTIES** 

3.1 The Parties are independent contractors and neither Party shall make any commitments for or on behalf
of the other Party, without the other Party's prior written consent.

3.2 During the Project Terms, both Parties will work exclusively for the Projects and Customers. Neither Party
will work with nor assist any other entities or bidders on the same Projects and/or for the same Customers.

Page 3 of 11

3.3 During the Project Term, the Parties agree to cooperate in mutual good faith in order to maximise the
likelihood of the Customers awarding the Projects either to Aerodyne and Droneify Team, to Aerodyne directly or to Droneify directly.

3.4 Droneify will conduct and lead all the communications with the Customers relating to the Proposals together
with Aerodyne, unless direct communications between the Customers and Aerodyne are necessary in order to secure contract award.

3.5 Once the discussions regarding the Projects have been initiated between the Parties, the Proposal has
been submitted and/or the Project Schedules for the said Customers are signed by both Parties, the Parties agree and acknowledge that
they shall not directly or indirectly approach any Customers identified by the other Party, on its own without the other Party's
prior approval.

3.6 This Agreement does not create any legally binding obligations, except for the limitation of liability
set forth in Clause 3.2 and Clause 3.5, confidentiality obligations referred to in Clause 17 below and the intellectual property obligations
referred to in Clause 6 below. This Agreement merely expresses the Parties' intentions in principle to cooperate together on the
Projects.

3.7 If the Parties mutually agree to pursue particular Projects as a result of their cooperation based on
this Agreement, the Parties will negotiate in good faith with an aim to conclude the Project Schedules and accordingly, Aerodyne may wilfully
agree to revise the Proposals (including revision of the pricing) if so required to meet the Customers' requirements.

3.8 Once such Project Schedules are agreed and signed by the Parties, the Parties are bound by the Project
Schedules to cooperate for such Projects and Customers, till the Projects are completed.

3.9 In the event of occurrence of any of the event stated in Clause 5, the Parties shall in the spirit of
the arrangement, agree and acknowledge that they shall not directly or indirectly approach any Customers identified by the other Party
directly or indirectly for at least for 6 months from happening of the aforementioned events.

3.10 Except for the obligation to pay money properly due and owing, either party shall be excused from any
delay or failure in performance under this Agreement caused by reason of force majeure. For the purposes of this clause "force majeure"
means the occurrence of an event or contingency beyond the reasonable control of the relevant party including but not limited to failure
of performance by the other Party due to acts of God, earthquake, power failure, labour disputes, riots, legal consents and governmental
requirements, outbreaks of diseases, epidemic or pandemic. The Party whose performance is affected by the occurrence of the force majeure
event undertakes during such period of suspension of its obligations to take such action as may be necessary to prevent, limit or mitigate
any damage or loss which might arise or be incurred as a result of or in connection with such suspension and to use its best endeavours
to avoid, limit, mitigate or remove the effect of such force majeure event. If a Party is excused performance of substantially all of
its obligations under this Agreement for a continuous period of two (2) months, then the other Party may at any time after such period
terminate this Agreement.

3.11 All Proposals submitted to the Customers will be submitted as a joint proposal of the Parties.

Page 4 of 11

3.12 Droneify warrant that it shall inform Aerodyne and keep Aerodyne informed of all communication and correspondence
relating to the Proposals and Projects with the Customers.

3.13 Droneify warrants that it shall ensure that Aerodyne shall be named as a joint awardee or is made a party
as the case may be, in all Projects awarded by the Customers. In the event that the Projects awarded by the Customers are exclusively
for Droneify and Aerodyne is not named as a joint awardee or a be a party of the said Projects, then Droneify shall, unless Clause 4 below
applies, appoint Aerodyne as the sub-contractor on an exclusive basis to undertake the whole value of the contract. Both Parties then
shall execute the Project as per the Project Schedule.

3.14 Aerodyne warrants that it shall ensure that Droneify shall
be named as a joint awardee or is made a party as the case may be, in all Projects awarded by the Customers. In the event that the Projects
awarded by the Customers are exclusively for Aerodyne and Droneify is not named as a joint awardee or a be a party of the said Projects,
then Aerodyne shall, unless Clause 4 below applies, appoint Droneify as the sub-contractor on an exclusive basis to undertake the whole
value of the contract. Both Parties then shall execute the Project as per the Project Schedule.

**4.** **SUB-CONTRACT** 

4.1 If the Projects are awarded directly to Droneify, Droneify shall consult Aerodyne before accepting the
Projects. The Parties will negotiate in good faith a final definitive agreement or as the case may be a sub-contract agreement ("Sub-contract
Agreement") covering the terms outlining the relationship between the Parties. Additionally, the Sub-contract Agreement or an addendum/amendment
to the Sub-contract Agreement, will contain those flow down provisions that are required to be flowed down to Aerodyne in corresponding
to the Project Schedule agreed by the Parties, and such other prime contract clauses and provisions applicable to the Aerodyne's
services and are agreeable by Aerodyne.

4.2 Unless the scope of the Projects have materially altered, the Sub-contract Agreement will contain a fair
price no greater than that agreed to by the Parties at the time the Proposals were prepared and submitted to the Customers.

5. TERMINATION OF AGREEMENT

5.1 Either Party may terminate this Agreement and/or any Project Schedule
immediately upon written notice to the other Party if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the other Party materially breaches any term of this Agreement and/or
any Project Schedule and it is not possible to remedy that breach; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. the other Party materially breaches any term of this Agreement and/or
any Project Schedule and it is possible to remedy that breach, but the other Party fails to do so within 30 days of being asked to do
so.

For the purposes of this clause 5.1, in order for it to be possible to remedy a breach it must be possible to take steps so as to put the other Party into the same position which (save as to the date) it would have been in if the breach had never occurred.

Page 5 of 11

5.2 Either Party may terminate this Agreement and any existing Project Schedules
immediately upon written notice to the other if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the other Party becomes or is deemed insolvent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. any distress or execution is levied on any of the other Party's property
or assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. the other Party makes or offers to make any arrangement or composition
with creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. any resolution or petition to wind up the other's business (other
than for the purpose of amalgamation or reconstruction) is passed or presented or if a receiver or administrative receiver of the other
Party's undertaking, property or assets is appointed or a petition presented for the appointment of an administrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. the other Party is subject to any proceedings which are equivalent
or substantially similar to any of the proceedings under sub-clause (a), (b), (c) or (d) under any applicable jurisdiction.

5.3 This Agreement shall automatically terminate on the passing of two (2) years from the date of this Agreement
("Term") or upon the Parties executing a final definitive agreement ("Services Agreement"), or upon an equity
investment by Aerodyne into Droneify , whichever event is the earlier. Either Party may also terminate this Agreement without cause by
giving the other Party a prior written notice of 30 days. For the avoidance of doubt, termination under this Clause 5.3 shall not terminate
any existing Project Schedules, Services Agreements nor Subcontract Agreements. Such Project Schedules, Services Agreements and/or Subcontract
Agreements shall continue in force until the expiry of the Project Schedules, the Services Agreements and/or the Subcontract Agreements
respectively. Termination of this Agreement arising in the circumstance shall be independent of the existing Project Schedules, Services
Agreements or the Subcontract Agreements.

5.4 A Project Schedule will automatically expire upon the first of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Announcement by the Customer that it will not award the contract for the Project to Aerodyne nor Droneify;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Announcement by the Customer that it will award the contract for the Project to a bidder(s) or third party
other than Aerodyne or Droneify;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Response by the Customer that it is not interested in the Proposal submitted by Aerodyne and Droneify.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Response by the Customer that it is not interested in any unsolicited Proposal related to the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Cancellation of the Request for Proposal/Request for Information by Customer related to the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. The expiration of the Project Term.

5.5 Termination of this Agreement for any reason shall be without prejudice to any rights which may have accrued
up to the effective date of the termination. Unless specified otherwise in this Agreement, rights to terminate this Agreement are not
exclusive rights and shall be in addition to every other remedy entitled under the law right now or hereafter existing.<br>

Page 6 of 11

**6.** **INTELLECTUAL PROPERTY** 

6.1 All rights in any patents, copyrights, trademarks, trade names, service marks, registered designs or any
other intellectual property rights existing now or in the future ("IPR") shall belong to and shall remain the exclusive property
of the originating Party and this Agreement does not grant either Party any rights in any IPR of the other Party. Each Party shall retain
any copyright notices on the other Party's material.

6.2 In the event that the Parties have agreed to jointly develop any intellectual properties, all right(s),
title(s) and interest(s) to the jointly developed intellectual properties together with all application rights, other than all confidential
information or intellectual property materials owned by the respective Parties prior to the joint development, shall be jointly owned
by the Parties to this Agreement. Each Party may enjoy all rights and privileges accorded to the joint ownership of jointly developed
Intellectual Properties without accounting to the other Provided Always that each shall not assign its ownership of such jointly developed
intellectual property to any third Party without the written consent of the other Party. The third party envisaged in this Clause shall
exclude entities directly or indirectly control, controlled by, or under common control of the Party to this Agreement.

**7.** **COMPETITIVE PRODUCTS & SERVICES** 

This Agreement does not prevent either Party from independently developing, acquiring or marketing products or services that may be competitive with the other Party's products or services.

**8.** **PERFORMANCE & RIGHTS** 

Failure by either Party to insist on strict performance or to exercise a right when entitled does not prevent either Party from doing so at a later time, either in relation to that default or any subsequent one.

**9.** **NOTICE** 

9.1 All notices required or permitted to be given hereunder shall be in writing and shall be valid and sufficient
if dispatched by hand or prepaid registered post to the address below or to the addresses given by the Parties or the elected representatives
of the Parties hereof from to time of any changes thereof. A notice, demand or communication sent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. by hand, shall be deemed to have been served on the date of delivery shown on the copy acknowledged receipt
by the Receiving Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. by prepaid registered post, shall be deemed to have been served on the date of delivery shown on the copy
acknowledged receipt by the Receiving Party.

Page 7 of 11

9.2 The Parties agree that the signature of the signatory transmitted by email means shall be deemed to be
its original signature for the purposes of this Agreement. The exchange of copies for this Agreement and of the signature page thereto
by email shall constitute effective execution and delivery of this Agreement and may be used in lieu of the original Agreement for all
purposes.

**Aerodyne Measure Inc.**

---

| | |
|:---|:---|
| Address: | **Aerodyne Measure Inc.** |
|  | 1930 Isaac Newton Square, |
|  | Suite 240, Reston, |
|  | Virginia, 20190, |
|  | USA. |
| **Attn:** | **Rossi Jaafar, Group COO** |
| Phone No.: | +1.667.888.7469 |
| Email: | rossi@aerodyne.group |
| **<u>Droneify Ltd.</u>** | **<u>Droneify Ltd.</u>** |
| Address: | **Droneify Ltd.** |
|  | 103-482 South Service Road East, |
|  | Oakville, Ontario, Canada L6J 2X6 |
| **Attn:** | **Tom Hanson, COO** |
| Phone No.: | 416.931.8046 |
| email: | tom@droneify.com |

---

**10.0** **GOVERNING LAW AND DISPUTES** 

The construction, validity and performance of this Agreement shall be governed by the laws of England. If any controversy or claim arises relating to this Agreement the parties will attempt in good faith to negotiate a solution to the differences, including progressively escalating any controversy or claim through senior levels of management. If such negotiation does not result in a resolution within 30 business days of when one party first notifies the other of the controversy or claim, the parties will participate in good faith mediation. The mediator shall be jointly appointed by the parties ("Mediator"). The Mediator may propose non-binding decisions or recommendations for the resolution of the controversy or claim. If both parties fail to agree on the selection of the Mediator or if either party disagrees with the decisions or recommendations made by the Mediator, then such party may initiate legal proceedings in any competent Court in the jurisdiction of the Court of Singapore. Notwithstanding the foregoing, either party may seek an injunction in court to prevent misuse of its intellectual property and the threatened breach / continuing breach of confidential obligation pending or amid any mediation proceedings.

**11.** **COMPLIANCE WITH ANTI-CORRUPTION LAW** 

In performing this Agreement, the Parties warrant to each other that they must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. comply with all applicable anti-bribery and anti-corruption laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. not offer any bribe or facilitation payment to any public official or other person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. not do anything that may cause the other party or any of its affiliates to breach any anti-bribery or
anti-corruption law.

Each Party to this Agreement must promptly notify the other Party in writing of any actual or potential breach of this Clause. If any Party breaches or appears to breach this Clause, the other Party may immediately terminate this Agreement without liability.

Page 8 of 11

12. LIMITATIONS

12.1 The Parties agree that the terms intended by the Parties to survive termination or expiration of this
Agreement, including but not limited to provisions in Clause 5 and Clause 6 above will survive the termination / expiry of this Agreement.

12.2 Save for any liability that cannot be excluded at law, neither Party shall be liable to the other Party
whether in contract, tort (including negligence), product liability, statute, equity or otherwise for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. any loss of profits or revenue, loss of contracts, loss of business, loss of opportunity, loss of data,
loss of reputation or loss of goodwill, whether caused directly or indirectly; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. any direct, indirect, economic, incidental, consequential, special or punitive/statutory damages, loss,
cost or expense whatsoever.

12.3 Notwithstanding the above a Party's liability (a) for violating the other's intellectual property
rights in Clause 6 is not limited by this Agreement; or (b) for intentionally breaching the provisions of Confidentiality in Clause 18
is not limited by this Agreement.

**13.** **WAIVER** 

No delay or failure by any of the Parties to exercise or enforce at any time any right or provision of this Agreement will be considered a waiver thereof, unless made in writing. No single waiver will constitute a continuing or subsequent waiver.

**14.** **SEVERABILITY** 

14.1. If any part of any provision of this Agreement is void or unenforceable under applicable law, such part
will be ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining provisions of
this Agreement.

14.2 Notwithstanding the foregoing, the Parties hereto shall thereupon negotiate in good faith in order to
agree to the terms of a mutually satisfactory provision to be substituted for the provisions so found to be void or unenforceable.

**15.** **TIME** 

Time wherever mentioned shall be of the essence of this Agreement.

Page 9 of 11

16. COSTS

Unless otherwise agreed in writing, each Party will bear its own costs and expenses related to this Agreement. Costs arising from the Project will be dealt with in the Project Schedule, if applicable.

17. CONFIDENTIALITY

The Mutual Non-Disclosure Agreement signed by the Parties shall govern the confidentiality for the Parties. Parties shall not disclose any confidentiality information envisaged in this Agreement to any third Party without prior consent of the other Party in writing. The Parties shall execute the Mutual Non-Disclosure Agreement as soon as possible in the event that it has not been executed.

18. PUBLICITY

Neither Party will issue a news release, public announcement, advertisement, or other form of publicity concerning its efforts in connection with this Agreement or any Project without the prior approval of the other Party.

**19.** **ASSIGNMENT** 

Neither Party shall assign its rights or delegate or subcontract its duties under this Agreement to third parties without the prior written consent of the other Party, such consent is not to be unreasonably withheld or delayed. Any unauthorised assignment of this Agreement is void.

**20.** **AMENDMENTS** 

This Agreement may not be varied or amended unless such variation or amendment has been expressly agreed to in writing by the Parties.

**21.** **ENTIRE AGREEMENT** 

This Agreement comprises the full and complete agreement of the Parties and cancels all prior communications, understandings and agreements between the Parties hereto, whether written or oral, expressed or implied.

No oral representation or change to this Agreement will be binding upon either Party unless agreed to in writing and signed by the authorised representatives of both Parties.

This Agreement may be executed in any number of counterparts, which shall together constitute one Agreement. Any Party may enter into this Agreement by signing any such counterpart

*(The rest of this page has been intentionally left blank)*

 

Page 10 of 11

**IN WITNESS WHEREOF** the parties hereto have set their hands on the day and year hereinbefore appearing.

---

| | |
|:---|:---|
| Signed by |  |
| for and on behalf of |  |
| **Aerodyne Measure Inc.** |  |
| (Company Reg. No. xx) |) /s/ Rossi Jaafar |
|  | Rossi Jaafar |

---

Designation: Group COO <br> Date:

---

| | |
|:---|:---|
| Signed |  |
| in the presence of |  |
| Witness |  |
|  |) /s/ Ashwin Genesh |
|  | Ashwin Genesh |

---

Designation: Senior Sales Engineer <br> Date:

---

| | |
|:---|:---|
| Signed by |  |
| for and on behalf of |  |
| **Droneify Ltd.** |  |
| (Company Reg. No. xx) |) /s/ Tom Hanson |
|  | Tom Hanson |

---

Designation: COO, Droneify <br> Date:

Page 11 of 11

## Exhibit 10.5

**Exhibit 10.5**

---

| | |
|:---|:---|
| ![](ex10-5_001.jpg) | MASTER SUBCONTRACT AGREEMENT ● PROFESSIONAL SERVICES |

---

THIS MASTER SUBCONTRACT AGREEMENT ("Agreement") is entered into by and between WSP CANADA INC. (hereinafter referred to as "WSP") and Droneify Ltd (hereinafter referred to as "Consultant'') as of May 11, 2022 to cover services to be provided by Consultant For good and valuable consideration, the parties agree as follows:

1) **Master Agreement for Services**. The parties desire to create a master agreement whereby WSP or any of its affiliates, including without limitation, Golder Associates Ltd., may from time to time request the Consultant to perform professional services through use of a task orders) or a work order(s) issued and signed by WSP or any of its affiliates to Consultant the form of which is attached hereto as Exhibit "A" ("Task Order" or "Work Order", as applicable). Each Task Order will include: (i) a description of the scope of services to be performed by Consultant including any limitations or special requirements (the "Services"); (ii) the compensation to be paid to Consultant for the proper performance of the Services ("Compensation"); (iii) the schedule for the performance and completion of the Services ("Schedule"); (iv) the location of the project site ("Site"); (v) the responsible manager for WSP; (vi) the Consultant's point of contact; (vii) the names of Consultant's employees who will be performing the Services; and, (viii) the prime agreement entered into between WSP and its Client ("Client") for the overall project ("Prime Contract"). Each Task Order shall apply to the Services described in the Task Order and shall be subject to and governed by the terms and conditions of this Agreement except to the extent expressly modified in the Task Order. Only the named signatory entity or affiliate that issues the Work Order or Task Order shall be liable for its obligations thereunder. Any other legal entity or affiliate that is not a signatory entity or affiliate hereto shall not be liable for another legal entity or affiliate's obligations under a Work order or Task Order. The use of "WSP" shall be interpreted as the applicable affiliate that has issued a Work Order or Task Order.

WSP is not obligated under this Agreement to request any services of the Consultant and exclusivity of supply is neither implied nor intended. If WSP sends Consultant a Task Order, Consultant will accept or reject the requested Services promptly and in writing. If Consultant commences performance of any services under a Task Order, Consultant shall be deemed to have accepted the Task Order. The Consultant is not authorized to perform any services under this Agreement other than the Services agreed to in a Task Order or a Change Order, each of which must be signed by WSP.

To the extent that Consultant's proposal, or any Exhibit or Attachment to this Agreement prepared or generated by Consultant (including, but not limited to purchase orders) shall not be binding on the parties hereto if such term, condition or limitation conflicts with any term, condition or, limitation contained in this Agreement.

2) **Relationship of the Parties**. The Services contemplated by this Agreement shall be carried out in accordance with the terms hereof and for all purposes it is deemed conclusively that in performing any Services under this Agreement or in doing anything in the course of performing this Agreement, Consultant is an independent consultant and not an employee, or agent of WSP or Client. Nothing contained in this Agreement shall be construed as constituting a joint venture or partnership between WSP or the Client and the Consultant. Neither WSP nor Client are to be considered the employer or co-employer of Consultant or Consultant's employees and in no event will Consultant be authorized to enter into any agreements or undertakings for or on behalf of WSP. Consultant shall not subcontract all or any portion of the Services without WSP's prior written approval. Consultant is solely responsible for the payment of all contributions or taxes to be paid on behalf of or to persons employed by Consultant on the Services performed hereunder and will indemnify and hold harmless WSP and Client from any such liability. Consultant shall not assign, subcontract or sublet the Services assigned hereunder or any part of its obligations under this Agreement without the prior written consent of WSP, said consent not to be unreasonably withheld. WSP reserves its right to review, validate and pre-approve any subcontractor engaged by Subcontractor to perform any part of the Services or obligations under the Agreement. Such consent, review, validation and/or pre-approval shall not relieve Subcontractor from its responsibilities as set out in this Agreement. Consultant shall ensure that its proposed subcontractor accepts the same responsibilities, obligations and liabilities towards Consultant as Consultant accepts towards WSP hereunder. In no event shall any such subcontracting relieve Consultant from its responsibilities as set out in this Agreement. Consultant shall not at any time contact or communicate with Client in regards to the Services, this Agreement or the Prime Contract, without the prior written consent of WSP. If Client directly contacts or communicates with Consultant, Consultant shall promptly notify WSP of the communication.

---

| | |
|:---|:---|
| ![](ex10-5_002.jpg) | Page **1** of **10** |

---

<u>MASTER SUBCONTRACT AGREEMENT ● PROFESSIONAL SERVICES</u>

3) **Performance**. Consultant shall comply with all laws, rules and regulations applicable to the Services. Consultant shall be properly licensed, equipped, organized, and financed to perform the Services, and shall pay all sales, consumer, use, value added and other similar taxes required by law, and shall secure all permits, fees and licenses necessary for the execution of the Services, including, without limitation, workers' compensation registrations. Without limiting the foregoing, if the Services are to be rendered in the Province of Quebec, the Consultant shall, when required, hold an authorization to enter into public contracts and subcontracts duly issued by the *Autorité des Marches Financiers* ("AMF"). The Consultant shall ensure of its renewal, if the authorization expires before the end of the Agreement. In addition, the Consultant undertakes to inform WSP upon receipt of a notice of revocation of its authorization, refusal by the AMF to issue such authorization or of its registration on the *Registre des entreprises non admissibles aux contrats publics* ("RENA"). Consultant shall provide and pay for all equipment, personnel, materials, supplies and any other items required for the proper execution and completion of the Services, and any and all costs, charges and expenses associated therewith are included in the Compensation. Consultant shall be responsible for investigating and familiarizing itself with the location of, and all conditions relating to, the Site. Any failure by Consultant to discover matters which affect or could affect the Services will not relieve Consultant from its obligations under the Agreement. Specifically, and except to the extent specified in the Task Order, Consultant accepts the Site and acknowledges that it has investigated and satisfied itself as to: (a) the nature of the Services; (b) the location of, and all conditions relating to, the Site, including, but not limited to, accessibility, transportation, general character, surface conditions, utilities, facilities, roads, uncertainties of seasonal weather and all other physical, topographical and geographical conditions; (c) general character, quality, quantity and availability of equipment and materials required to execute and complete the Services; (d) all environmental risks, conditions, laws, regulations, standards, and restrictions applicable to Consultant, or the Services, that might affect the Services; and, (e) all conditions affecting labour, including, but not limited to, availability, productivity and administrative practices, including those relating to safety, prevailing at or applicable to the Services. Any Information provided by WSP or Client about site conditions, above or below surface, is not guaranteed. Consultant's access to the Site will be limited to specified and designated times, roadway(s), docking facilities and/or other access points. Consultant will be responsible for all damage to the Site which results from utilizing non-designated access. Consultant, all times, will keep the premises free from accumulation of waste materials or rubbish caused by its operations. Upon completion of the Services, Consultant will remove from the site of the Services all rubbish, unused materials, buildings, equipment, and other like materials belonging to Consultant or used under Consultant's direction; and, in the event of any failure to do so, the same may be removed by WSP at the sole risk and expense of Consultant.

WSP may award other contracts for additional work and the Consultant shall fully cooperate with such other contractors and carefully fit its own Services to that provided under the other contracts, as may be directed by WSP. The Consultant shall not commit or permit any act which will unreasonably interfere with the performance of work by another. Consultant will comply with security requirements for Site and will cooperate with WSP on all security matters and arrangements. Such compliance will not relieve Consultant of its responsibility for maintaining proper security for its Services.

Consultant agrees to promptly inform WSP of any errors, omissions or inconsistencies in this Agreement of which it becomes aware ("Errors"). If Consultant discovers any Errors, it will resolve all Errors with WSP before proceeding with the affected portion of the Services. Should Consultant proceed with any Services without Informing WSP of any Errors, or proceeds with any Services before resolving the Errors, then Consultant proceeds with the Services at its own risk and expense. Consultant is hereby given notice that WSP and Client are relying on the accuracy, competence and completeness of the Services.

4) **Personnel**. Consultant shall ensure that all persons who perform the Services shall be professionally competent and properly qualified. If any employees of Consultant are specifically referenced in the Task Order, such employees shall not be removed or replaced from the Services without WSP's prior written consent. Consultant shall be fully responsible for the acts and omissions of employees, sub-consultants, sub-contractors, suppliers, invitees or other personnel or entities retained by Consultant ("Personnel"). Consultant is solely responsible for the payment of all contributions or taxes to be paid on or to persons employed by Consultant for Services performed hereunder and will indemnify and hold harmless WSP from any such liability. Consultant will remove, at Consultant's expense, from the Services any person WSP deems incompetent, careless or otherwise objectionable. Consultant will supervise and limit its activities and Personnel to the immediate vicinity of Consultant's current operations.

---

| | |
|:---|:---|
| ![](ex10-5_002.jpg) | Page **2** of **10** |

---

<u>MASTER SUBCONTRACT AGREEMENT ● PROFESSIONAL SERVICES</u>

5) **Compensation**. Compensation for Services will be as set forth In the Task Order. WSP shall only be obligated to reimburse Consultant for the performance of Services, which are authorized in writing by WSP in a Task Order or a Change Order, up to the total authorized compensation amount authorized by WSP in such Task Order or Change Order. Unless otherwise specified in the Task Order, the frequency of invoicing shall be monthly and Consultant shall submit Invoices to WSP by no later than the fifteenth (15th) day of the month after completion of the portion of the Services performed during the prior month.

Invoices shall be submitted to WSP's accounts payable department and WSP's project manager, itemized and documented to WSP's reasonable satisfaction, including references to the project number, phase, task, contract, project manager, and project coordinator, as applicable. WSP will review such invoice and if the invoice is deemed complete and approved, WSP will include Consultant's invoice in WSP's invoice submission to Client. Unless otherwise agreed and approved within a Task Order and subject lo any holdbacks and set-off, WSPWSP will make payment of approved invoice amounts within seven (7) working days of WSP's receipt of the corresponding payment from Client. Payment by Client is a condition precedent to payment to Consultant, and WSP's obligation to pay Consultant is conditioned on payment by Client. As a condition of payment, each invoice received by WSP will be accompanied by a lien and claim waiver, in WSP's standard form, and a clearance letter from the governing body of the applicable workers' compensation legislation, in the jurisdiction where the Site is located, acknowledging Consultant's full compliance therewith.

Consultant shall provide all necessary information on actual fees earned and allowable costs incurred on a monthly basis, including any requested progress reporting, for WSP's cost control and reporting purposes. Consultant shall notify WSP forthwith upon Consultant's forecasting that the total authorized compensation amount will be exceeded. No additional payments will be made to Consultant without prior written modification of this Agreement otherwise any such excess will be for Consultant's cost and account. Final invoices must be submitted to WSP no later than thirty (30) days after the completion of the Services (or sooner as necessary to comply with Prime Contract requirements); WSP shall have no liability to make payment of any invoices received after that date; and, Consultant expressly waives and releases any and all right to make a claim or demand or to take any action or proceeding against WSP for any liability in respect of any work completed and not invoiced within the time required by this Agreement. No interest will be payable on any amount not paid to Consultant on the due date. Consultant expressly waives and releases any and all right to make a claim or demand or to take any action or proceeding against WSP for any liability in respect of such invoices.

It is understood by Consultant that compensation shall only be payable to Consultant under this Agreement when the Services have been performed to the satisfaction of WSP and Client and payment for the Services has been received by WSP from Client. Payment of any invoice by WSP shall not imply inspection, approval or acceptance of the Services by WSP or Client.

Notwithstanding any other provision of the Agreement, an amount otherwise due to Consultant may be withheld, without payment of interest, if, in the reasonable opinion of WSP, it is necessary to protect WSP from loss on account of: (a) Consultant, in the reasonable opinion of WSP, failing to complete the Services, not making satisfactory progress with the Work or being in material default of any condition of the Agreement, including without limitation, quality assurance and health and safety requirements;(b) Consultant not promptly remedying defective or deficient Services; (c) Consultant failing to promptly and satisfactorily pay any claim for labour performed or materials or equipment furnished; or (d) loss or damage to the work, property or facilities of other contractors, subcontract or suppliers of Consultant, WSP or Client, for which Consultant is responsible; and if and when the cause of the withholding of any amount is removed and satisfactory evidence of such removal is furnished to WSP, WSP will promptly pay the amount withheld to Consultant pertaining to such cause less any reasonable costs incurred by WSP associated therewith. WSP may deduct and set-off against any payment due to Consultant under this Agreement. The foregoing provision will not prevent WSP from separately recovering from Consultant any debt owed by Consultant to WSP under this Agreement or otherwise.

---

| | |
|:---|:---|
| ![](ex10-5_002.jpg) | Page **3** of **10** |

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<u>MASTER SUBCONTRACT AGREEMENT ● PROFESSIONAL SERVICES</u>

The acceptance by Consultant of the final payment under a Task Order shall operate as a release to Client and WSP for all claims and liability to Consultant and its Personnel for any compensation or payment relating to any and all things done or furnished relating to the performance of the Services. Final payment shall in no way relieve Consultant of liability for its obligations or for faulty or defective Services discovered after final payment.

6) **Insurance**. Consultant represents and warrants that it now carries and shall continue to carry for the duration of the Services or the term of this Agreement, whichever is longer, and at any time when Consultant is on Site, with such insurers and under such forms or policies as are acceptable to WSP, insurance with at least the following provisions, coverages and limits. Consultant acknowledges that if the Prime Contract requires higher limits or additional endorsements, such higher limits and additional endorsements shall be required to be provided and evidenced by Consultant.

---

| | |
|:---|:---|
| Worker's Compensation | Statutory |
| Employer's Liability or Contingent Employer's Liability |  |
| &nbsp;&nbsp;&nbsp;Each accident | $1000000 |
| Commercial General Liability *(including contractual liability insurance and cross-liability clause)* |  |
| &nbsp;&nbsp;&nbsp;Each Occurrence | $3000000 |
| &nbsp;&nbsp;&nbsp;General Aggregate | $5000000 |
| &nbsp;&nbsp;&nbsp;Bodily Injury | $1000000 |
| &nbsp;&nbsp;&nbsp;Property Damage | $1000000 |
| &nbsp;&nbsp;&nbsp;Products/Completed Operations | $1000000 |
| Comprehensive or Commercial Automobile Liability *(covering all owned, hired and non-owned vehicles)* |  |
| &nbsp;&nbsp;&nbsp;Each Accident | $3000000 |
| &nbsp;&nbsp;&nbsp;Aggregate | $5000000 |
| Professional Liability |  |
| &nbsp;&nbsp;&nbsp;Any One Claim | $3000000 |
| &nbsp;&nbsp;&nbsp;Aggregate | $5000000 |
| Pollution Liability |  |
| &nbsp;&nbsp;&nbsp;Each Claim | $3000000 |
| &nbsp;&nbsp;&nbsp;Aggregate | $5000000 |

---

WSP, together with its Client and each of their subsidiaries, divisions and affiliated companies shall be listed as additional insureds on the Consultant's Commercial General Liability insurance policy, the Pollution Liability policy and any excess liability policies if required to satisfy the insurance requirements. The Commercial General Liability policy shall include a provision providing a waiver of insurer's right of subrogation against WSP, together with its Client and each of their subsidiaries, divisions and affiliated companies. Any insurance required to be provided by Consultant shall be regarded as primary and non contributory to any other insurance in effect for WSP.

Consultant shall furnish WSP with certificates of insurance evidencing the above coverage and including the additional insured and waiver of subrogation requirements and shall evidence that the insurance covers all Services under this Agreement. Such certificates shall be issued by an insurance carrier(s) reasonably acceptable to WSP and shall state that the insurer shall provide thirty (30) days prior written notice of cancellation of any of the policies. Payment of any invoices otherwise owing to Consultant shall not be made until such certif1cates of insurance are received by WSP. Consultant is responsible to pay all deductibles and self-insured retentions.

The foregoing requirements do not in any way limit or qualify the liabilities and obligations assumed by Consultant under this Agreement Failure on the part of Consultant to procure or maintain required insurance shall constitute a material breach of this Agreement upon which WSP may immediately stop all payments, terminate, or suspend this Agreement. Failure by WSP to insist upon any requirement in this Section shall not relieve Consultant of its obligation to fully comply with the requirements set out herein.

7) **Tax Responsibility**. Consultant will promptly collect, remit, pay and discharge all assessments, duties, taxes, charges, statutory fees, hold-backs and payments whatsoever (including, but not limited to, turnover, sales, consumption, use, property, payroll, harmonized sales, goods and services, income and excess profit taxes) assessed, levied or imposed upon, or required to be collected and/or remitted by Consultant to any governmental authority by reason of or in connection with the performance, completion or undertaking by Consultant of the Agreement and the Services. Consultant represents and warrants that it is not a non-resident of Canada for the purposes of the Income Tax Act(Canada). Consultant will promptly withhold, collect, remit, pay and discharge all assessments, taxes, charges, duties and source deductions (including, but not limited to, withholding tax, income tax, payroll tax, employment/unemployment insurance and Canada Pension Plan deductions) assessed, levied or imposed upon, or required to be deducted from payments to Personnel. Consultant shall defend, indemnify and save harmless WSP and Client, and each of their respective affiliates, heirs, executors, personnel and legal representatives, administrators, successors and assigns, of and from and against all claims, liability, costs, expenses and penalties whatsoever arising out of or in connection with any failure or inability of Consultant to comply in whole or in part with its responsibilities described in this Section 7. Should any portion of the Services performed by Consultant be eligible for the Scientific Research and Experimental Development Tax Incentive Program (as such program Is defined by the Canada Revenue Agency) or any other equivalent tax credit or grant program which may be awarded in Canada, WSP retains the exclusive right to claim such incentive, tax credit or grant.

---

| | |
|:---|:---|
| ![](ex10-5_002.jpg) | Page **4** of **10** |

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<u>MASTER SUBCONTRACT AGREEMENT ● PROFESSIONAL SERVICES</u>

8) **Term; Termination**. This Agreement will be for an initial term from the date hereof and extending to two (2) years and shall thereafter be automatically renewed for successive periods of one year each; provided however, this Agreement shall remain in effect until Services under all Task Orders which were executed during the effective period of this Agreement are complete. WSP may, upon written notice to Consultant, terminate all or any part of the Services or this Agreement, for convenience; provided however, that Services under any existing Task Order will not terminate except to the extent set out in the termination notice, and completed Services under all terminated Task Orders will be promptly and separately invoiced. In the event of termination as described above, WSP shall pay Consultant for all Services satisfactorily completed as of the date of termination upon corresponding payment from Client. Consultant shall not be entitled to receive any greater amount than WSP may, on behalf of the Consultant, recover from the Client for such termination.

9) **Suspension**. Consultant understands and agrees that the Services will automatically be suspended or terminated, as appropriate, if the Prime Contract is suspended or terminated. In addition, WSP may, at any time, suspend or delay all or any part of the Services. In the event of any suspension, delay or termination, Consultant shall solicit and comply with all directions given by WSP and shall resume suspended Services promptly after written notice from WSP. In the event of a suspension, delay or termination, Consultant shall only be entitled to compensation to the extent allowed by the Prime Contract and upon corresponding payment from Client.

10) **Prime Contract**. The Prime Contract shall be incorporated into and made part of this Agreement by this reference. Consultant shall be responsible for complying with and satisfying any terms of the Prime Contract, as it may relate to Consultant's performance or Services, including any indemnification provisions. By executing any related Task Order, the Consultant acknowledges having reviewed a copy of the Prime Contract relating to that Task Order, such copy may be redacted to preserve the confidentiality of information not affecting the Services. With respect to the Services, Consultant shall be responsible for complying with and satisfying any terms of the Prime Contract, in addition to the terms and conditions of the Agreement. Consultant agrees to be bound to WSP at least in the same manner and to the same extent as WSP is bound to Client under the Prime Contract, as if the term for WSP in the Prime Contract had been replaced with "Consultant", and WSP shall be entitled to exercise any rights of Client set out in the Prime Contract as against the Consultant as if the term for Client in the Prime Contract had been replaced with "WSP". To the extent any provisions of the Prime Contract are inconsistent or contrary to this Agreement or a related Task Order, then the provisions creating the greater obligation on the Consultant shall govern.

11) **Health & Safety and Environment ("HSE")**. Consultant will at all limes carry out the Services in a safe manner and will be diligent in monitoring its Services to discover any conditions that might cause risk to personnel or property, and will promptly correct such conditions. Consultant shall be responsible for the health and safety, and shall provide and maintain a safe working environment for its Personnel. Consultant shall adopt, supervise and enforce reasonable and adequate safety requirements, including the site safety rules (if any) and any HSE requirements which may be established by WSP and/or the Client and which may change from time to time. Prior to commencement of the Services, Consultant will: (a) furnish WSP with proof that Consultant's provincial worker's compensation payments and dues have been paid up to date and provide WSP with a copy of all applicable health and safety training records and equipment maintenance records (if applicable), and (b) review WSP and Client's health and safety rules and regulations, including any health and safety plans for the Site and alcohol and drug testing (if applicable), and promptly notify WSP of any deficiencies, gaps or errors in such plans as they may relate to, or not properly take into account, any health and safety risks, concerns or issues with respect to the Services. Consultant shall develop and implement a response plan pertaining to a pandemic (including without limitation COVID-19), accompanied by business continuity measures, that comply with the requirements of all applicable public health authorities, WSP and the Client.

Consultant shall be responsible for the HSE impact of all its employees, agents, subcontractors and invitees, and shall ensure that they have completed the appropriate training in order to be aware and effectively mitigate the hazards and environmental aspects associated with their activities and the Site. Consultant shall provide evidence of such training upon request by WSP. WSP retains the right to review the Consultant's HSE plan in order to monitor the Consultant's compliance, but such review is solely for the benefit of WSP and shall not relieve the Consultant of its representations and obligations related to the Services.

---

| | |
|:---|:---|
| ![](ex10-5_002.jpg) | Page **5** of **10** |

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<u>MASTER SUBCONTRACT AGREEMENT ● PROFESSIONAL SERVICES</u>

12) **Standard of Care**. Services performed by Consultant pursuant to any Task Order shall be performed in a manner consistent with that level of care, skill and diligence ordinarily exercised by other qualified and experienced members of the Consultant's profession, operating under similar conditions. Consultant understands that WSP will rely on the data, findings, opinions and recommendations provided by Consultant under this Agreement. All Services not strictly conforming to the standards, terms and conditions of this Agreement, including, without limitation, the Prime Contract, may be considered defective by WSP. Without prejudice to any other right or remedy of WSP and at no additional cost to WSP, Consultant shall promptly and satisfactorily correct all Services considered defective, including, without limitation, repairs, replacements and/or remedial work. In no event will any failure on the part of WSP to conduct are view or inspection, or to discover or reject Services not in accordance with this Agreement, be construed as acceptance by WSP thereof or a waiver of any of Consultant's obligations. If Consultant fails to promptly remedy any defective Services, WSP may do so and use any means to recover the cost from Consultant including but not limited to set-off against amounts owed on other Task Orders. WSP's right to remedy such defects in addition to any other rights or remedies available to WSP and is not to be considered an obligation. Consultant will immediately comply with every direction, order, decision and determination by WSP. Notwithstanding the foregoing, Consultant will perform the Services in accordance with its own means and methods and will have complete control over and responsibility for all Personnel, including their acts and omissions. In the event that Consultant does not agree with a direction, order, decision or determination of WSP, Consultant will immediately comply with the same. but may, no later than five (5) days of receipt of the direction, order, decision or determination, appeal such direction, order, decision or determination in accordance with Section 24.

13) **Changes**. WSP may make changes within the general scope of work under this Agreement, including, but not limited to, increasing or decreasing the Services or directing an acceleration in the performance of the Services, by written notice, or by oral notice subsequently confirmed by WSP in writing within ten (10) days thereafter, lo Consultant ("Change Order"). Any such written Change Order shall be incorporated herein by reference. Where practicable, WSP and Consultant shall make good and reasonable efforts to negotiate prior to the issuance of a Change Order the amount of any Compensation or Schedule change related to the Change Order and to arrive at a mutually acceptable Change Order. In the event that the parties cannot agree, Consultant will proceed with performance of the Services set out in the Change Order, notwithstanding any dispute regarding any adjustment. If, to the extent arising from a Change Order, Consultant wishes to claim that it is entitled to an adjustment in the schedule or compensation under this Agreement, Consultant shall give WSP written notice thereof within three (3) days after receipt of WSP's Change Order. Such notice shall be given by Consultant before proceeding with any Services with respect to such claim, and shall be a condition precedent to recovery for any such claim. Consultant understands and agrees that in the event that the Prime Contract specifies a shorter time or notice period for submittal of claims or responding to Change Orders, such shorter notice period will apply to Consultant's claim. In such even the shorter notice period will be further reduced so as to grant WSP sufficient time (no less than a minimum of one (1) business day) to submit Consultant's claim to the Client within the applicable time period required by the Prime Contract.

Failure to provide any notices to WSP required herein within the time specified will be considered a full release and waiver of Consultant's right to seek, and WSP's obligation lo recognize, any change or adjustment in the Compensation, Schedule, or other term of the Agreement. Should Consultant perform services which are not part of the Services described in a Task Order or Change Order, such services will be at Consultant's own risk and expense.

14) **Schedule**. Time is of the essence with respect to the performance of Consultant's obligations under this Agreement. Consultant shall perform the Services in strict accordance with the Schedule and Consultant acknowledges that the timely performance of the Services is a matter of paramount importance to WSP. Consultant will report regularly on the progress achieved, in such frequency, format and manner as may be required by WSP or Client. WSP has the right to determine the sequence in which Consultant performs its Services. Consultant shall notify WSP immediately by telephone, and confirm in writing within three (3) days, of any event or condition impairing its ability to meet the Schedule, together with proposed revisions to the Services to regain the Schedule. In no circumstances will Consultant be entitled to any compensation with respect to additional services or an acceleration of the Services required to regain the Schedule.

15) **Force Majeure**. If either Consultant or WSP is delayed at any time in the progress of the Services by Force Majeure, then the Schedule will be extended to the extent of such Force Majeure and for such reasonable time as WSP in its sole discretion determines. In no circumstances shall Consultant be entitled to any compensation as a result of Force Majeure. in the event Consultant's performance of the Services is materially and adversely affected by an event of Force Majeure. Consultant will immediately upon discovery give written notice to WSP and such notice will specify: (a) the nature of the event or condition of Force Majeure; (b) how performance is affected; (c) the estimated period of delay and the commercial impact; and, (d) measures undertaken or to be undertaken to mitigate the adverse effects. The term "Force Majeure" means an event or circumstance, not reasonably within the control or a party, of such impact that it materially and adversely delays, disrupts or renders impossible the performance by a party of its obligations under this Agreement, and which by the exercise of due diligence and planning, the party was, or is, unable to prevent or overcome. Notwithstanding the generality of the foregoing, "Force Majeure' shall not include: (a) strikes, lockouts or other industrial concerted action by workers of Consultant or its Personnel; (b) lack of finances or other financial hardship; (c) failure of equipment or shortage of labour, materials, equipment or transportation; or (d) climatic, weather, tidal or seasonal conditions reasonably expected to occur within the geographic area where the Site is located.

16) **Liens**. Consultant will pay its employees, agents and vendors promptly and will use only goods free of security interests, liens and other encumbrances. Consultant will defend, indemnify and hold harmless WSP and its Client, and each of their respective directors, officers, employees and affiliates, from any loss or expense (including legal fees and other costs of litigation) on account of any lien or claim of lien asserted against any property owned, leased or used by WSP or Client and related to Services performed or to be performed under any Task Order. Consultant agrees that each Task Order will be an independent and separate contract in relation to any applicable lien legislation. In addition, this Agreement will not create nor be deemed to create a prevenient arrangement between WSP and Consultant.

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<u>MASTER SUBCONTRACT AGREEMENT ● PROFESSIONAL SERVICES</u>

17) **Liability**. To the fullest extent permitted by law, Consultant hereby releases and agrees to defend, indemnify and hold harmless WSP, Client and their respective affiliates, including the directors, officers, employees, contractors and agents of each of the foregoing, from and against any and all actions, injury, claims, liabilities, losses, harm, damages, demands, penalties, fines, expenses (including, without limitation, all legal expenses on a solicitor and its own client basis) arising out of or in connection with the acts, errors, omissions, negligence, willful acts, fraud, criminal acts or strict liability of Consultant or any of its Personnel, or(b) the breach of any representation, warranty, term, provision or condition of this Agreement by Consultant or any of its Personnel. In addition to the foregoing indemnification obligations, Consultant shall defend, indemnify and hold WSP harmless to the extent that WSP is required to indemnify Client under the Prime Contract as its relates to the Services, if such duty to indemnify is greater than that set forth herein. Except for Consultant's indemnification obligations with respect to third party claims or for which WSP is required to indemnify Client pursuant to the Prime Contract, neither party shall be liable to the other for any loss of profits. loss of use, or any other indirect or consequential damages arising out of or related to this Agreement. Consultant shall not make, assign, or pursue any claim related to the performance of Services under this Agreement against individuals employed, engaged, or retained by WSP.

18) **Nondisclosure**. Any data, materials, records or other information disclosed by WSP to Consultant ("Confidential Information") will be held by Consultant in strict confidence and will only be disclosed to those employees of Consultant who are actively involved in the performance of the Services and only to the extent strictly necessary for performance of the Services. Consultant will not at any time, directly or indirectly, disclose to third parties (including, but not limited to, any of its sub-consultants or sub-contractors) without the prior written consent of WSP, the Confidential Information or any information produced, developed or obtained by Consultant in connection with the performance of this Agreement. If so requested by WSP, Consultant will require its Personnel to execute a non-disclosure agreement in a form approved by WSP. Consultant agrees that Confidential Information will be disclosed to Consultant "as is" and WSP makes no warranties or representations concerning the accuracy, timeliness or sufficiency of Confidential Information. Unless otherwise specified by WSP in the applicable Task Order, Consultant will rely upon such Confidential Information at its own risk. Consultant acknowledges that in the event of a breach of Consultant's confidentiality obligations herein, WSP would suffer irreparable harm for which remedies at law, including damages, would be inadequate, and that WSP will be entitled to seek equitable relief therefor by injunction, in addition to any and all rights and remedies available to it at law and in equity. The confidentiality obligations set out herein will survive the expiration or termination of this Agreement for a period of five (5) years (or such longer period as set out in the Prime Contract) following the termination of this Agreement

19) **Title to Property, Intellectual Property**. All legal interest and title to data, materials, information, patents, trademarks, copyrights, processes, models, trade secrets, inventions, discoveries, designs, specifications, reports, samples, photographs, notes, calculations, techniques, developments or other documents which may arise or are prepared, accumulated or developed in connection with the Services ("Work Product") shall be the sole property of and vest in WSP and shall be delivered to WSP upon request or upon the completion, termination, suspension or cancellation of this Agreement Consultant hereby assigns, and will cause each of its Personnel to assign to WSP, all right, title and Interest in any such Work Product. Consultant shall maintain all such Work Product for a period of not less than three (3) years after completion of the Services (or such longer time as may be required by the Prime Contract or by law), and shall deliver copies to WSP upon request Consultant agrees to defend, Indemnify and hold harmless WSP and Client, including each of their respective officers, directors, employees, agents and affiliates, from and against any and all claims, liabilities, costs, expenses, damages or penalties in any way connected with or arising from any claim of infringement of any patent, copyright or other intellectual property right in connection with the Work Product or Services performed by Consultant or its Personnel.

20) **Audit**. Consultant shall comply with all accounting and auditing requirements of the Prime Contract. Consultant shall at a minimum, keep and maintain proper books, records and accounts, prepared in accordance with generally accepted accounting principles (GAAP) or International financial reporting standards (IFRS), which reflect the nature of every transaction related to the provision of the Services or this Agreement Representatives of WSP and Client shall have access to and the right to examine, copy and audit any and all of Consultant's books, records, documents, papers, correspondence, contracts, Invoices, receipts, data and other similar information for the purpose of verifying the accuracy of costs, hours and expenses relating to the Services or for any other reasonable purpose, including, without limitation, Consultant's compliance with Section 23. Consultant shall preserve, and shall require its Personnel to preserve, and provide audit access to, all information referred to above for a period of not less than three (3) years (or such longer period as required by the Prime Contract) after completion and acceptance of the Services or termination of the Agreement or for such longer period if required by the Prime Contract or by law.

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<u>MASTER SUBCONTRACT AGREEMENT ● PROFESSIONAL SERVICES</u>

21) **Environment**. Consultant will not, and will ensure that its Personnel will not, bring, use, store, transport, remove, dispose of or destroy any hazardous substances on Site, except with the prior written approval of WSP and only to the extent specifically required for the performance of the Services on the Site. Consultant will, in performance of the Services, comply with all applicable laws, procedures and practices, and policies and procedures of WSP and Client Without limiting the generality of the foregoing, throughout the performance of the Services, Consultant will conduct all its operations in such away as to minimize impact upon the natural environment and prevent any release of any hazardous substances, petroleum products or any derivative, contaminant, by-product, waste product or any similar product or other substances of any kind ("Products"), and will: (a) provide suitable equipment, facilities and precautions to prevent the discharge of Products into the atmosphere, any body of water or land areas; (b) provide all documentation required by law; (c) ensure that all Products are shipped and transported strictly in accordance with all applicable laws, including those of the place or places of shipment, of transit and of the applicable Sites; and, (d) maintain and update an emergency response plan to deal with any accidental, sudden or gradual leak, emission, discharge, release or spill of Products. Consultant shall promptly Investigate and report to WSP, and all authorities having jurisdiction any near miss accidents, or accidents resulting in injury, death or illness to any of person engaged in the performance of the Services, any criminal acts, any damage to property or the environment, and any unauthorized environmental releases. Consultant shall cease all activities in the area WSP shall have the right to suspend performance of the Services for as long as necessary to prevent or stop any violation of Consultant's obligations pursuant to this paragraph. Consultant shall, at its sole cost, cooperate fully and comply with any directions and investigations given or initiated by applicable governmental authorities and WSP. During such period of suspension, no compensation shall be payable to Consultant by WSP.

22) **Privacy**. Consultant will at all times comply with the requirements of all applicable privacy and other personal information laws with respect to the collection, use and disclosure of personal information In connection with Consultant's performance of its obligations hereunder, and Consultant will obtain and ensure that it has proper consents from all Personnel engaged in the performance of the Services.

23) **Business Ethics, Anti-Bribery and Code of Conduct**. Consultant shall adhere to all applicable laws, industry standards and principles of ethics and business conduct in the performance of the Services, including, without limitation, any anti-bribery legislation and any business standards or policies of WSP and the Client. Consultant shall release, defend, indemnify and hold harmless WSP from all claims brought against WSP and Client in connection with or as a result of the Consultant's failure to comply with any anti-bribery legislation or convention, as may apply now or in the future, including, without limitation, the Canadian Corruption of Foreign Public Officials Act, the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. The Consultant shall Immediately report to WSP any breach of anti-bribery law by the Consultant. Consultant represents that, in connection with this Agreement, neither it nor any of its Personnel, has received nor will receive, directly or indirectly, from any party, any payment or transfer that would violate the laws of the country in which it is made or other applicable anti-corruption laws. It is the intent of the parties that no payment or transfer of value will be made that have the purpose or effect of public or commercial bribery, acceptance of or acquiescence in extortion, kickbacks, collusion or other unlawful or improper means of obtaining business. Consultant shall execute such confirmations reflecting compliance with this paragraph and participate incompliance audits as WSP shall from time-to-time reasonably request, and this covenant shall survive termination of this Agreement.

Consultant shall use reasonable efforts to promote the WSP Third Party Code of Conduct among its subcontractors. Consultant shall adopt and comply with the Third Party Code of Conduct available at the following URL:https://www.wsp.com/en-CA/who-we-are/corporate responsibility/ethics-integrity. The Parties recognize that the above URL may change from time-to-time and agree that such change will not affect the applicability of the material referenced. WSP agrees to provide the new URL upon Consultant's request in the event of a change.

24) **Dispute Resolution**. In the event of a dispute relating to the Services or this Agreement, every endeavour will be made to resolve the dispute on its merits by negotiation. The parties will attend at least one meeting to discuss the dispute before commencing other proceedings in respect of the dispute. If the dispute cannot be resolved by negotiation, the parties will ascertain whether they agree that the dispute will first be subject to the process of conciliation, mediation or other resolution process. In the event that a dispute between WSP and Consultant relates to a dispute between WSP and Client, WSP and Consultant agree to be bound by the dispute resolution procedures in the Prime Contract, and in such event, Consultant consents to joinder in any proceedings between WSP and Client upon the request of WSP. Consultant, however, shall not have the right to join in proceedings between WSP and Client unless WSP consents to the joinder. Notwithstanding any dispute, the parties will continue to fulfill their obligations pursuant to the terms of the Agreement, including, without limitation, the continued execution of the Services by Consultant, pending resolution of the dispute, it being understood that by so doing neither party will Jeopardize any claims or rights the party may have against the other.

25) **Governing Law**. Unless the laws of another jurisdiction must apply for this Agreement to be enforceable, the validity, construction and performance of this Agreement and all disputes between the parties arising out of or related to this Agreement shall be governed by the laws, and the parties attorn to the jurisdiction of such courts, of the province where the WSP office issuing the applicable Task Order is located, and the laws of Canada applicable therein. To the extent that the dispute or claim relates to the Prime Contract and a dispute between WSP and Client. Consultant hereby consents to the dispute resolution process described in Section 24 and/or the venue and jurisdiction as may be set forth in the Prime Contract.

26) **Notices**. All approvals, notices, demands, and other communications given or made under this Agreement will be in writing and will be sufficiently given if delivered personally, sent by prepaid registered mail, transmitted by facsimile or delivered by other form of recorded electronic communication, at the address and contact information set out in the applicable Task Order, or to such other address to which such party may hereafter notify the other party in writing. All such approvals, notices, demands, and other communications hereunder will be effective when faxed, emailed, personally delivered, or if mailed, upon the earlier to occur of actual receipt or forty-eight (48) hours after deposit in the mail as aforesaid. Either party may from time to time change such address by giving the other party notice of such change in accordance with the above requirements.

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<u>MASTER SUBCONTRACT AGREEMENT ● PROFESSIONAL SERVICES</u>

27) **Entire Agreement and Amendments**. This Agreement, including all applicable Task Orders and Change Orders authorized by WSP in writing, constitutes the entire agreement between the parties and supersedes all prior agreements and representations. The terms and conditions of this Agreement shall prevail, notwithstanding any variance with any document submitted by Consultant, whether or not formally rejected by WSP. No cancellation, modification, amendment. deletion, addition, waiver or other change in this Agreement will have effect unless specifically set forth in writing signed by the party to be bound thereby.

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<u>MASTER SUBCONTRACT AGREEMENT ● PROFESSIONAL SERVICES</u>

**IN WITNESSWHEREOF**, the parties hereto have caused this Agreement to be duly executed by their duly authorized representatives, effective as of the day and year first above mentioned.

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| | | | |
|:---|:---|:---|:---|
| **WSP CANADA INC.** | **WSP CANADA INC.** | **Droneify Ltd.** | **Droneify Ltd.** |
| Per: | Per: | Per: | Per: |
| /s/ Tewfik Atia | /s/ Tewfik Atia | /s/ Thomas Hanson | /s/ Thomas Hanson |
| I have authority to bind the corporation. | I have authority to bind the corporation. | I have authority to bind the corporation. | I have authority to bind the corporation. |
| Name: | Tewfik Atia | Name: | Tom Hanson |
| Title: | Senior Vice President, National Operations, E&E | Title: | COO |
| Date: May 12, 2022 | Date: May 12, 2022 | Date: May 11, 2022 | Date: May 11, 2022 |

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## Exhibit 10.6

**Exhibit 10.6**

**THE SKY GUYS LTD.**

**LICENSE AGREEMENT**

This License Agreement (the **"Agreement"**) is entered into this 1st day of August, 2015 (the **"Effective Date"**), by and between The Sky Guys Ltd., a corporation incorporated pursuant to the laws of the province of Ontario, having its principal place of business at 209 Lakeshore Road East, Unit A, Oakville, Ontario (the **"Sky Guys"**) and 1040227 BC Ltd., a corporation incorporated pursuant to the laws of the province of British Columbia, having its principal place of business at 3659 Commercial St., Vancouver, British Columbia (the **"Licensee"**).

The parties agree as follows:

 **1. LICENSE**

Pursuant to the terms and conditions of this Agreement, Sky Guys grants to the Licensee a territory-exclusive, non-transferable, limited license for a period of ten (l 0) years from the Effective Date to use the licensed name "Sky Guys" (alone and in conjunction with terms such as "Drone", "Aerial", "Photography" and "Video", hereafter the **"Licensed Name"**). In addition to the license of the Licensed Name to the Licensee, Sky Guys agree to include the Licensee's contact information on certain Sky Guys marketing and advertising materials (Internet publications, including its various websites, videos, and print publications), and further agrees to make available to the Licensee the operational, organizational, marketing and advertising material and techniques utilized by Sky Guys should the Licensee so choose. The license shall provide, at the discretion of the Licensee, with training, lead development, volume product discounts and such other benefits that may be offered by Sky Guys from time to time. The license contemplated herein shall be an exclusive license for the territorial area comprising Vancouver, British Columbia and that area from Chilliwack westward and up the ocean to Sea to Sky Highway up to Whistler and Pemberton (the **"Territory"**, as specifically designated in the map set forth in <u>Appendix A</u> attached hereto). The instant license is intend to enable Licensee to reference its association with Sky Guys and draw upon the synergies and benefits that arise from such association through this license.

The license granted pursuant to this Agreement is specifically limited and restricted in that it shall neither involve Sky Guys or any associate of Sky Guys exercising control over, or offering any binding significant assistance in, the Licensee's method of operation, whether in the form of business operations, purchases, clients, business organization, marketing techniques or training nor involve Sky Guys or any associate of Sky Guys or third person designated by the Sky Guys providing location assistance, including securing clients or accounts for the goods or services to be sold, offered for sale or distributed or securing work pursued by the Licensee.

Whereas Sky Guys shall make available its operational, organizational and marketing systems to the Licensee, Sky Guys shall not assist or otherwise facilitate in their implementation, other than the inclusion of the Licensee's contact information in such marketing and advertising programs of Sky Guys that it undertakes for its own commercial advantage.

All business activity must be undertaken in accordance with applicable federal, provincial, state, municipal and local laws and regulations, together with not being in violation of any prescribed prohibit uses, if same are set forth in <u>Appendix X</u>.

 **2. LICENSING FEE**

An initial licensing fee shall become due and owing upon the execution of this Agreement in the amount of Fifty Thousand Dollars ($50,000.00) plus applicable taxes (the **"Initial Fee"**), with Fifteen Thousand Dollars ($15,000.00) plus applicable taxes being payable on the Effective Date (the **"First Payment"**). The balance of the Initial Fee shall be payable in accordance with the following schedule provided that the Licensee is not in default under this Agreement (for upon default the entire balance of the Initial Fee plus applicable taxes shall become immediately and fully due and owing to Sky Guys): forty percent (40%) of all profits earned by the Licensee based upon business undertaken by the Licensee, and if deemed appropriate by Sky Guys due to a presumed lack of profit remittance, determined in accordance with Sky Guys' suggested pricing guide and profit realization chart, as set forth in <u>Appendix B</u> attached hereto and updated from time-to-time by Sky Guys. Payment of the additional payments payable subsequent to payment of the First Payment shall be due on the tenth (10<sup>th</sup>) day of the month following the date that payment is received by the Licensee, with any delay resulting in interest accruing on the unpaid amount at the Prime Rate of interest of the Royal Bank of Canada plus five percent (5%) per annum calculated on a daily compounding basis.

At such time as the Initial Fee has been paid in full, the Licensee shall be required to pay an ongoing maintenance fee of eight percent (8%) of gross sales of the Licensee to Sky Guys (the **''Maintenance Fee"**), with the Maintenance Fee being due on the tenth (10<sup>th</sup>) day of the month following the date that payment is received by the Licensee in respect of any such sale, with any delay resulting in interest accruing at the Prime Rate of interest of the Royal Bank of Canada plus five percent (5%) calculated annually on a daily compounding basis.

For the duration of the Term and for five (5) years thereafter, the Licensee will provide Sky Guys with full access to its sales records, and should Sky Guys believe that there has been underreporting than the Licensee's financial records and related business and tax information for purposes of verification of the applicable fees or other amounts owing or otherwise due to Sky Guys, together with the Licensee immediately correcting any underpayment of fees or other amounts owing or otherwise due to Sky Guys.

 **3. TRANSGRESSIVE BUSINESS ACTIVITIES**

Should a pre-existing customer of Sky Guys require the services of the Licensee outside of the Territory, and there is no licensee or franchisee of Sky Guys entitled to servicing that particular territory, the Licensee shall pay an additional five percent (5%) Maintenance Fee for work performed outside the Territory for that customer, with no such part being allocated to Equity Stake but shall be fully payable in the same manner that the Maintenance Fee would otherwise be payable.

Notwithstanding the foregoing, if Sky Guys has licensed or franchised the territory in which such customer requires work to be undertaken to another licensee or franchisee, the said licensee or franchisee shall have the first option to undertake the subject work subject to Sky Guys then- current referral fee, failing which, rather than the additional five percent (5%) referred to above, the Licensee shall pay an additional ten percent (10%) Maintenance Fee, with one-half being payable to Sky Guys and one-half being payable to the infringed licensee or franchisee, should it undertake the services for said client in the other licensee's/franchisee's territory.

 **4. EQUITY STAKE**

Sky Guys' Equity Stake shall be subject to the terms and conditions set forth in a unanimous shareholders agreement that shall be mutually negotiated and agreed upon by both of the parties hereto acting reasonably.

Should the Licensee seek to sell a controlling interest in the Licensee to a third party or to sell substantially all of the assets of the Licensee to a third party, the Licensee shall pay the greater of the current Equity Stake or twenty percent (20%) of the purchase price to Sky Guys in full payment of the Equity Stake.

Should the Licensee choose not to renew this Agreement at the end of the Term, the full amount of the current Equity Stake shall become immediately due and payable to Sky Guys, unless the non-renewal follows at least one renewal term, whereupon the Equity Stake shall be reduced by twenty-five percent (25%).

Should the Licensee default or otherwise breach this Agreement, an amount equal to one hundred and fifty percent (150%) of the current Equity Stake shall become immediately due and payable to Sky Guys, together with such other and further remedies and damages available to Sky Guys at law and the continuance of all other obligations due and owing to Sky Guys, including but without limiting the restrictive covenants contemplated herein.

 **5. SKY GUYS' LIQUIDITY EVENT**

Immediately prior to any Sky Guys' Liquidity Event (as such term and related terms are defined in <u>Appendix C)</u>, Sky Guys shall have the option to (i) acquire the Licensee, provided such interest in the Licensee shall be acquired at the price determined by independent Chartered Business Valuator with the Canadian Institute of Chartered Business Valuators; (ii) discontinue the licensing arrangement pursuant to this Agreement by Sky Guys and relinquish all its interest to the Equity Stake; or (iii) such other arrangement that the parties might mutually agree to in writing.

 **6. EQUITY PARTICIPATION IN SKY GUYS**

Provided that the Licensee has all times been in compliance with all the terms and conditions of this Agreement and the Licensee shall have been profitable pursuant to this licensing arrangement for at least one (1) year prior to exercising the option contemplated herein, the Licensee shall have the option to acquire a common share equity stake in Sky Guys at its fair market value as commercially reasonably determined by the Board of Directors of Sky Guys, representing no more than two percent (2%) of Sky Guys' common share equity per year at the time the Licensee exercises the option and six percent (6%) of Sky Guys' share equity in aggregate, subject to the Licensee entering into such further and additional requirements as might reasonably be required by the Board of Directors of Sky Guys, including but not limited to a unanimous shareholders agreement.

 **7. RIGHT OF FIRST REFUSAL**

Should a further license or franchise become available in the province of British Columbia with Sky Guys, the Licensee shall have a right of first refusal to match the signed offer of the bona fide licensee or franchisee, as the case may be, to acquire said license or franchise, provided that the Licensee has agreed in writing to all the terms that have been previously agreed to in writing by this prospective licensee or franchisee, and provided the Licensee agrees to pay an additional break-fee of five percent (5%) of the license fee or franchise fee, to a maximum of Five Thousand Dollars ($5,000.00), which would have been payable by the prospective licensee or franchisee, which amount shall be payable to the prospective licensee or franchisee whose written agreement has been 'broken' pursuant to the break-fee arrangement.

 **8. INTELLECTUAL PROPERTY OWNERSHIP**

As between Sky Guys and the Licensee, the Licensee agrees that Sky Guys is the sole owner of the Licensed Name, all other intellectual property rights of Sky Guys, and all associated goodwill. The Licensee shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) challenge Sky Guys's ownership or use, or the validity, of any and all intellectual
property rights of Sky Guys; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) attempt to adopt or register any name, mark or logo identical or substantially
similar to or any other intellectual property rights of Sky Guys, including without limitation any translation or transliteration thereof,
or any other variants substantially similar to any other intellectual property rights of Sky Guys in appearance, pronunciation or meaning.

The Licensee agrees to cooperate with Sky Guys and take all reasonable actions required to assist Sky Guys to secure, protect and maintain ownership rights in the Licensed Names worldwide, including but not limited to giving prompt Notice to Sky Guys of any known or potential infringement of the Licensed Name of which the Licensee becomes aware, and cooperating with Sky Guys in the preparation, execution and/or recordation of any documents necessary to register or otherwise protect the Licensed Name, and maintaining or terminating, as applicable, such documents or recordation. Sky Guys shall reimburse the Licensee for the reasonable costs associated with providing such assistance, except to the extent that any such costs arise from the Licensee's breach of this Agreement.

Sky Guys may commence, prosecute or defend any action or claim concerning the Licensed Name or any intellectual property rights of Sky Guys. Sky Guys shall have the right to control any such action, and the Licensee shall fully cooperate with Sky Guys in any such action, including the satisfaction of procedural requirements necessary to bring such action in a particular jurisdiction. Sky Guys shall reimburse the Licensee for the reasonable costs associated with providing such assistance to Sky Guys, except to the extent that any such costs arise from the Licensee's breach of this Agreement. The Licensee shall not commence any action regarding the Licensed Name or any intellectual property rights of Sky Guys without Sky Guys's prior written consent, which Sky Guys may withhold. Licensee shall be entitled to take action if Sky Guys chooses not to do so and Sky Guys shall reimburse the Licensee for the reasonable costs associated with doing so, to the extent that such actions are in furtherance of Sky Guys's stated interests.

 **9. QUALITY REQUIREMENTS**

The Licensee hereby warrants that its use of the Licensed Name in connection with its business will comply with all of the quality requirements set forth in this section. Failure to comply with any of the obligations in this section will constitute a material breach of this Agreement.

The Licensee shall maintain the quality of its business with which the Licensee uses the Licensed Name at least at a level:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that meets or exceeds industry standards, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that is at least commensurate with the Licensee's overall reputation for
any other drone or aerial photography/video service.

The Licensee's operation of its business must also comply with all laws, government regulations, and requirements of the jurisdictions in which it operates; which includes the Licensee maintaining commercially reasonable insurance, as might be confinned by Sky Guys from time to time.

 **10. TERM AND TERMINATION**

This Agreement will begin as of the Effective Date and will continue for a period of ten (10) years (the **"Term"**), with renewal tenns of ten (10) years thereafter (each a **"renewal term"**) contingent, at the option of Sky Guys, on the payment of a Ten Thousand Dollar ($10,000.00) renewal fee, indexed for inflation. Either party may tenninate this Agreement for cause upon thirty (30) days written notice of a material breach, if the breach has not been cured within this thirty (30) day period. Any breach of the Licensee's payment obligations or unauthorized use of the Licensed Name will be deemed a material breach of this Agreement. Upon tennination or breach of this Agreement, the Licensee will immediately stop using the Licensed Name and observe the restrictive covenants as set forth herein. Furthennore, should this Agreement be tenninated for cause, the Licensee will be liable for any and all outstanding fees for services perfonned by the Licensee upon collection thereof.

 **11. NOW WARRANTIES / LIMITATION OF LIABILITY**

Sky Guys makes no warranties of any kind with respect to the Licensed Name, including the validity of Sky Guys' rights in the Licensed Names in any jurisdiction, and disclaims any and all warranties that might otherwise be implied by applicable law, including warranties against infringement of third-party trademarks and similar rights.

Except as expressly provided in this Agreement, in no event shall either party be liable for any indirect, incidental, special, consequential or punitive damages (including, without limitation, loss of profits, use, data or other economic advantage), regardless of the theory of liability, arising from or related to the Licensee's use of the Licensed Name or Sky Guys's operational, organizational, marketing or advertising techniques, or tennination of this Agreement, even if such party has been advised of the possibility of such damages. Further, liability for such damages is excluded, even if the remedies provided for in this Agreement fail of their essential purpose.

 **12. NON-COMPETITION**

The Licensee and its principals (collectively, the **"Restricted Persons"**) will not, directly or indirectly, in any manner whatsoever, which, for greater certainty includes any affiliate of Restricted Persons not dealing at ann's length with the Restricted Persons within the meaning of the *Income Tax Act* (Canada), either individually or in partnership or jointly, or in conjunction with any other person, as principal, agent, shareholder or in any other manner whatsoever, carry on or be engaged in or be concerned with or interested in or lend money to, guarantee the debts or obligations of, or pennit his name or any part thereof to be used or employed by any person engaged or concerned with or interested in the business undertaken by Sky Guys or any competitive enterprise in the provinces of British Columbia and Alberta during the course of this Agreement and for a period of two (2) years thereafter, whether by tennination or otherwise. For these purposes, ownership of securities of a company whose securities are publicly traded under a recognized securities regime not in excess of 5% of any class of such securities shall not be considered to be competition with the business of Sky Guys.

 **13. NON-SOLICITATION**

The Restricted Persons shall not divulge to any person the name of any customer of Sky Guys, including National Customers and such other customers referred by Sky Guys (collectively, the **"Restricted Customers"**) or solicit, interfere with or endeavor to entice away from Sky Guys any Restricted Customer or any person in the habit of dealing with Sky Guys, during the course of this Agreement and for a period of four (4) years thereafter, whether by termination or otherwise.

The Restricted Persons shall not, directly or indirectly, induce or attempt to induce any employee of Sky Guys to leave the employ of Sky Guys or to become employed by any person other than Sky Guys.

 **14. CONFIDENTIALITY**

The Restricted Persons will, and will cause their employees, officers, directors, shareholders, outside advisors, agents, affiliates, associates and representatives to, treat any Confidential Information (as defined hereafter) confidentially and with commercially reasonable care and discretion, and will not disclose any such information to third parties; provided, however, that the foregoing shall not apply to (i) information in the public domain or that becomes public through disclosure by any party other than the Restricted Persons, so long as such other party is not in breach of a confidentiality obligation, (ii) information that is required to be disclosed by applicable law or (iii) information that is disclosed by the Restricted Persons on a confidential basis, to any of their respective agents, accountants and lawyers in connection with or related to the consummation of the transactions contemplated hereby.

In the event that this Agreement is terminated, the Restricted Persons, upon the written request of Sky Guys, will, and will cause his representatives to, promptly deliver to Sky Guys any and all documents or other materials furnished by Sky Guys or any of its affiliates to the Restricted Persons in connection with this Agreement without retaining any copy thereof. In the event of such request, all other documents, whether analyses, compilations or studies, that contain or otherwise reflect the information furnished by the Restricted Persons or Sky Guys to the Restricted Persons, shall be destroyed by the Restricted Persons, or shall be returned to Sky Guys, and the Restricted Persons shall confirm to Sky Guys in writing that all such materials have been returned or destroyed. No failure or delay by Sky Guys in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other exercise thereof or the exercise of any right, power or privilege hereunder.

**"Confidential Information"** means all trade secrets, proprietary information, know-how, and confidential information of Sky Guys including but not limited to: (i) any and all technical, business or financial information or property, owned by or licensed to Sky Guys, or otherwise relating to Sky Guys and/or any of its subsidiaries, affiliates and related entities which is heretofore or hereinafter disclosed to the Licensee, including but not limited to information regarding Sky Guys' goods or services, processes, personnel, finances, business plans, studies, analyses, projections, research, market data, operations, apparatus, computer software, know- how, trade secrets, inventions, equipment, tools, parts, prototypes, samples, drawings, test results, material and manufacturing specifications, suppliers, customers, employees, processes, licensing and any other ideas or information relating to Sky Guys' business or any business or activity in which Sky Guys is engaged, regardless of the form of disclosure, whether or not disclosed in a writing marked "Confidential" or in some similar manner or identified as confidential; (ii) improvements derived by the Licensee from its engagement pursuant to this Agreement; and (iii) any and all software, reports, memoranda, documents, developments, imagery, video, photography or other results produced by the Licensee in furtherance of this Agreement that are directly related to Sky Guys' business.

 **15. REASONABLENESS OF COVENANTS**

The Licensee hereby acknowledges and agrees with Sky Guys that all of the covenants herein contained, including but not limited to paragraphs 12 to 14, are reasonable in the circumstances and necessary to protect the economic position of Sky Guys in respect of its business and waive any and all defenses to the strict enforcement thereof.

The Licensee acknowledges and agrees that a breach by the Restricted Persons of any of the provisions hereof would cause substantial and irreparable harm to Sky Guys and its business which could not be adequately compensated for by damages, and in the event of such a breach (or the reasonable apprehension of such a breach) by the Restricted Persons of such provisions, The Licensee hereby consents to a preliminary and permanent injunction being issued against him restraining him from any breach or further breach of the said provisions and of an order to account for all profits and benefits arising out of any such breach, but the provisions of this paragraph shall be in addition to and not in substitution for any other remedy which Sky Guys may have in respect of such a breach.

 **16. INDEMNIFICATION**

The Licensee agree to indemnify, defend and hold harmless Sky Guys, its shareholders, officers, directors, employees, agents, affiliates, successors and assigns, from and against any and all claims, liabilities, damages or expenses (including solicitor-client fees and costs) of any nature whatsoever incurred or suffered by Sky Guys (collectively, "Licensee Losses"), in so far as such Licensee Losses (or actions in respect thereof) arise out of or are based on (i) the breach of this Agreement by the Licensee or any representation or warranty made by the Licensee herein; or (ii) any action or omission of the Licensee, directly or indirectly, or on the Licensee's behalf.

Similarly, Sky Guys agree to indemnify, defend and hold harmless the Licensee, its shareholders, officers, directors, employees, agents, affiliates, successors and assigns, from and against any and all claims, liabilities, damages or expenses (including solicitor-client fees and costs) of any nature whatsoever incurred or suffered by the Licensee (collectively, "Sky Guys Losses"), in so far as such Sky Guys Losses (or actions in respect thereof) arise out of or are based on (i) the breach of this Agreement by Sky Guys or any representation or warranty made by Sky Guys herein; or (ii) any action or omission of Sky Guys, directly or indirectly, or on Sky Guys' behalf.

 **17. RELATIONSHIP BETWEEN THE PARTIES**

The relationship between Sky Guys and Licensee is that of licensor/licensee. Neither party will represent that it has any authority to assume or create any obligation, express or implied, on behalf of the other party, nor to represent the other party as agent, employee, franchisee, or in any other capacity.

 **18. NOTICE**

All notices under this Agreement shall be in writing and shall be deemed given if delivered personally, mailed by registered or certified mail, return receipt requested, or sent by facsimile with a receipt confirmed by telephone to either Sky Guys or Licensee by the other party, at the following addresses:

<u>Sky Guys</u>

The Sky Guys Ltd.

Address: 209 Lakeshore Road East, Unit A, Oakville, Ontario L6J 1H7

Attention: Adam Sax

Telephone:

Facsimile:

Email:

<u>Licensee</u>

1040227 BC Ltd.

Address:

Attention:

Telephone:

Facsimile:

Email:

 **19. ASSIGNMENT**

This Agreement may not be assigned by you without the prior written approval of Sky Guys but may be assigned without the Licensee's consent by Sky Guys to (i) a parent or subsidiary, (ii) an acquirer of assets, or (iii) a successor by merger. Any purported assignment in violation of this section shall be void.

 **20. GOVERNING LAW**

This Agreement shall be governed by Ontario law and controlling Canadian federal law, without regard to the choice or conflicts of law provisions of any jurisdiction, and any disputes, actions, claims or causes of action arising out of or in connection with this Agreement or the business conducted under the License shall be subject to the exclusive jurisdiction of the provincial and federal courts located in Toronto, Ontario.

 **21. ARBITRATION**

If any dispute arises between the parties relating to the application, interpretation, implementation or validity of this Agreement, the Parties agree to resolve the dispute by arbitration using the Canadian Arbitration Association Expedited Arbitration Rules. The parties agree that the Canadian Arbitration Association Expedited Arbitration Rules give the parties a fair opportunity to present their case and respond to the case of the other side. The arbitration shall be held in Toronto, Ontario and shall proceed in accordance with the provisions of the *Arbitration Act* (Ontario). Judgement upon the award rendered by the arbitrator may be entered in any court having jurisdiction.

 **22. SEVERABILITY**

If any provision of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, then such provision(s) shall be construed, as nearly as possible, to reflect the intentions of the invalid or unenforceable provision(s), with all other provisions remaining in full force and effect.

 **23. NO WAIVER**

No waiver of any breach of any provision of this Agreement shall constitute a waiver of any prior, concurrent or subsequent breach of the same or any other provision thereof, and no waiver shall be effective unless made in writing and signed by an authorized representative of the waiving party.

 **24. ENTIRE AGREEMENT**

This Agreement comprises the entire agreement between Sky Guys and the Licensee and supersedes any previous communications, representations or agreements between the parties, whether oral or written, regarding transactions hereunder.

 **25. COUNTERPARTS**

This Agreement may be executed and delivered in any number of counterparts, each of which when executed and delivered is an original but all of which taken together constitute one and the same instrument. A party's transmission by facsimile or by electronic transmission in portable document format (PDF) of a copy of this Agreement duly executed by that party shall constitute effective delivery by that party of an executed copy of this Agreement to the party receiving the transmission. A party that has delivered this Agreement by facsimile or by electronic transmission in portable document format (PDF) shall forthwith deliver an originally executed copy to the other party or parties.

 **26. INDEPENDENT LEGAL ADVICE**

Each of the parties acknowledges that they: (a) have been advised by the other parties to seek independent legal advice; (b) have sought such independent legal advice or deliberately decided not to do so; (c) understand their rights and obligations under this Agreement; and (d) are executing this Agreement voluntarily.

In witness whereof, the parties have executed this Agreement by their duly authorized representatives as of the date first set forth above.

---

| |
|:---|
| **1040227 B.C. Ltd.** |
| Per: |
| /s/ Lukas Montani |
| Lukas Montani, Director |
| /s/ Tim Magowan |
| Tim Magowan, Director |
| *We have authority to bind the corporation* |
| **The Sky Guys Ltd.** |
| Per: |
| /s/ Kirk Eksyma |
| Kirk Eksyma, Director |
| /s/ Adam Sax |
| Adam Sax, Director |
| *We have authority to bind the corporation* |

---

**APPENDIX C**

**<u>LIQUIDITY EVENT TERMS</u>**

**"Common Shares"** means the common shares of The Sky Guys Ltd.

**"Free Trading Securities"** means securities of an issuer other than Sky Guys that are listed or quoted on a Recognized Exchange or inter-dealer quotation system and that may be sold through such Recognized Exchange or inter dealer quotation system free of any restricted period or hold period under applicable securities laws in Canada or any other relevant jurisdiction (other than in respect of resales by control persons or any escrow requirements of an applicable stock exchange or securities regulator), and a liquid market exists for such Free Trading Securities, as determined by the Board of Directors of Sky Guys.

**"IPO"** means the occurrence of all of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the issuance of a receipt to Sky Guys for a (final) prospectus by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) securities commissions or other similar regulatory bodies of Ontario; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the United States Securities and Exchange Commission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the listing of the then outstanding Common Shares on a Recognized Exchange; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a liquid market exists for the Common Shares, as determined by the Board of Directors of Sky Guys.

**"Liquidity Event"** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an IPO; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the sale of all or substantially all of the assets of Sky Guys for consideration consisting of cash and/or
Free Trading Securities and the subsequent distribution of such consideration to the holders of the Common Shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a transaction carried out by Sky Guys:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) whereby each Sky Guys shareholder receives, in exchange for its Common Shares, cash and/or Free Trading
Securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) which results in all of the Common Shares being listed on a Recognized Exchange provided that, upon such
listing, the Sky Guys shareholders (in respect of such Common Shares then held) are not subject to any restricted period or hold period
under applicable securities laws in Canada or any other jurisdiction (other than in respect of resales by control persons or any escrow
requirements of an applicable stock exchange or securities regulator), and a liquid market exists for the Common Shares upon the completion
of such transaction, as determined by the Board of Directors of Sky Guys; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an amalgamation, arrangement, merger or other consolidation or business combination of Sky Guys with,
or acquisition of Common Shares by, another entity pursuant to which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the shareholders of Sky Guys immediately thereafter do not own shares of the successor or continuing entity
entitling them to cast more than 50% of the votes attaching to voting equity of the successor or continuing entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) each Sky Guys shareholder receives, in exchange for its Common Shares, cash and/or Free Trading Securities;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) such other transaction as is detennined to be a Liquidity Event by the Board of Directors of Sky Guys,

provided, however, that in the event of any uncertainty about the application of paragraphs (i) to (iv) of this definition to any particular transaction or circumstance the Board of Directors of Sky Guys and a voting majority of the Sky Guys shareholders will be entitled to mutually determine, acting reasonably and in good faith, whether an event satisfies the requirements of the definition.

**"Liquidity Plan of Arrangement"** means a statutory plan of arrangement which will give effect to a Liquidity Event and pursuant to which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Sky Guys shareholders will receive cash and/or Free Trading Securities in exchange for all of their Common
Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Shareholders are not required to enter into any agreement with any Person respecting the Liquidity Plan
of Arrangement, except one or more letters of transmittal or notices of guaranteed delivery or similar agreements related to the implementation
of the Liquidity Plan of Arrangement and regarding the ownership of Common Shares and the ability of the Sky Guys shareholder to contract
regarding their sale as are customary in such transactions.

**"Recognized Exchange"** means the Toronto Stock Exchange, the TSX Venture Exchange, the New York Stock Exchange, the Nasdaq National Market System, any of their successors or other stock exchange comparable or trading system as is approved as a Recognized Exchange by resolution of the Board of Directors of Sky Guys.

## Exhibit 10.7

**Exhibit 10.7**

OFFER TO LEASE

---

| | |
|:---|:---|
| **TO:** | THE SKY GUYS |
| **FROM:** | 2026324 ONTARIO INC. |
| **SUBJECT:** | LEASE AT 482 SOUTH SERVICE ROAD. |
| **DATE:** | 2021-03-24 |

---

I would like to briefly summarize the basic terms and financial arrangements for the lease that you will be entering into with 2026324 Ontario Inc., the landlord. The lease will commence June 1st, 2021 and will have the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;i) Commencing June 1st, 2021 on a month-to-month basis the tenant will be leasing suite # 103 (as indicated
on the attached drawing) for $2,700.00 a month plus HST (total $3,051.00). Rent is due on the first of each month.

ii) It is necessary for either party to provide sixty (60) days notice prior to terminating the lease between The Sky Guys and 2026324 Ontario Inc. Failure to do so will result in a penalty for early termination of the lease.

The rent is gross and includes realty taxes, management fees, maintenance, and insurance. The tenant will be responsible for their own telephone lines, internet, security system, including setup and monthly monitoring and office cleaning. The tenant will have access to all common areas including the lunchroom, board rooms and bathrooms.

The Tenant currently rents a different suite in the building and is in rental arrears of $12,204.00 as at March 24, 2021. Tenant will bring all rental arrears current, and will continue to pay rent for their current suite up to the end of April 30, 2021. Their last month security deposit on hand will be applied towards their May 2021 rent.

If you are in agreement with the above terms would you please execute this agreement and return back to us at your earliest convenience.

The above lease terms are accepted this 29<sup>th</sup> day of March, 2021.

---

| | | | |
|:---|:---|:---|:---|
| **2026324 Ontario Inc.** | **2026324 Ontario Inc.** | **The Sky Guys** | **The Sky Guys** |
| Per: | /s/ John M. Sidler | Per: | /s/ Adam Sax |
|  | John M. Sidler |  | Adam Sax |

---

## Exhibit 10.8

**Exhibit 10.8**

**EXECUTIVE EMPLOYMENT AGREEMENT**

**B E T W E E N:**

**THE SKY GUYS LTD.**

(the "**Corporation**")

-and-

**ADAM SAX**

(the "**Executive**")

**WHEREAS** the Corporation wishes to employ the Executive and the Executive wishes to be employed by the Corporation.

**AND WHEREAS** the Corporation and the Executive have agreed that, effective on **October 25, 2018**, or such other date as the Corporation and the Executive shall mutually agree upon in writing (the "**Effective Date**"), the Executive will become employed by the Corporation in the position of Chief Executive Officer.

**AND WHEREAS** the Corporation and the Executive have agreed to formalize the terms and conditions set out herein which will govern the Executive's employment with the Corporation following the Effective Date, all as set out in this Agreement.

**NOW THEREFORE** in consideration of the mutual covenants and promises set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each of the Corporation and the Executive, the parties hereby covenant and agree as follows:

**ARTICLE I – DEFINITIONS AND INTERPRETATION**

**1.1** **Definitions** 

For the purposes of this Agreement, the following words and phrases shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Affiliate** "
 has the same meaning as given to such word in the *Securities Act* and, for greater
 certainty, means in respect of any person, another person that would be considered to be
 an "affiliate" in respect of such person for the purposes of *National Instrument 45-106 - Prospectus and Registration Exemptions*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Agreement** "
 means this agreement, including any schedules hereto, as amended, supplemented,
or modified in writing by the parties from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Annual Bonus**" has the meaning ascribed thereto in Section 4.2 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Base Salary**" has the meaning ascribed thereto in Section 4.1 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Board** "
 means the board of directors of the Corporation and any reference herein to an action by
 the Board means any action by or under the authority of the Board or a duly empowered member
 of the Board or a committee appointed by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Business** "
 means any of the following businesses: (i) unmanned aerial vehicle (UAV) services in Canada;
 or (ii) any other line of business actively carried on by the Corporation or any of its Affiliates
 or, to the knowledge of the Executive while employed at the Corporation or as at the Date
 of Termination, in the active contemplation of the Corporation or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Business Relationship**" means any person or entity (including actual or potential clients
 or customers of the Corporation) that the Executive contacted, solicited or serviced for
 or on behalf of the Corporation or any of its Affiliates or about whom or which the Executive
 had access to any Confidential Information during his employment with the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Confidential Information**" means information disclosed or accessible to the Executive or acquired
 by the Executive as a result of his employment with the Corporation and which is not in the
 public domain or otherwise required to be disclosed by applicable law and includes, but is
 not limited to, the following: information relating to the Corporation's or any of
 its Affiliates' current, future or proposed products or services or the development
 of new or improved products or services; the Corporation's or any of its Affiliates'
 marketing strategies, sales or business plans; information (including contact information)
 relating to the Corporation's or any of its Affiliates' past, present or prospective
 employees, contractors, customers, clients (including any Business Relationship), vendors,
 or suppliers; technical data, reports, presentation materials, interpretations, forecasts,
 test results, formulae, projects, research data, personnel data, budgets, financial statements
 or other records relating to the Corporation or any of its Affiliates; information regarding
 any Innovation; and any other information received by the Corporation from any third party
 pursuant to an obligation of confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Date of Termination**" means the date of cessation of the Executive's employment
 with the Corporation, regardless of the reason therefor and without regard to any notice
 of termination, pay in lieu of notice of termination, severance or other damages paid or
 payable to the Executive, whether pursuant to this Agreement or at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Effective Date**" has the meaning ascribed thereto in the second recital above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**ESA** "
 means the *Employment Standards Act, 2000* (Ontario) and such other mandatory employment/labour
 standards legislation as may be applicable to the Executive's employment with the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Fiscal Year**" means the fiscal year of the Corporation as it may, from time to time,
adopt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Innovations** "
 means any of the following: inventions, processes and improvements (whether or not protectable
 under patent laws); techniques, ideas, concepts and programs; works of authorship and information
 fixed in any tangible medium, including source code for software (whether or not protectable
 under copyright laws) and all moral rights therein; mask works or integrated circuit topography;
 trademarks, trade names, trade dress and trade secrets and know-how (whether or not protectable
 under trade secret laws); subject matter protectable under patent, copyright, mask work,
 trademark, trade secret or other similar laws; and any derivative works, improvements, renewals,
 extensions or continuations relating to any Innovation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Just Cause**" means any conduct by the Executive which would constitute just cause for
 dismissal as recognized by law and which, for greater certainty, shall be deemed to include
 (i) any wilful act of dishonesty, theft, breach of trust or misappropriation of the Corporation's
 property, (ii) any refusal or deliberate failure by the Executive to comply with a lawful
 directive from the Board, (iii) the finding of fault or imposition of any disciplinary remedy
 against the Executive by the Ontario Securities Commission or other Canadian or United States
 security regulatory agency in connection with or as a result of any investigations, proceedings
 or actions against the Executive by such securities regulatory agency, and (iv) any material
 breach by the Executive of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Non-Competition Period**" means the six (6) month period following the Date of Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Non-Solicitation Period**" means the twelve (12) month period following the Date of Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Severance Period**" means the period of time following the Date of Termination equal to six
 (6) months plus one (1) month for each year of completed employment by the Executive with
 the Corporation following the Effective Date; *<u>provided that</u>* , the Severance
 Period will not exceed twelve (12) months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Territory** "
 means (i) all of Canada, and (ii) any city in the world in which the Corporation maintains
 an office.

**1.2** **Interpretation** 

In this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 division into Sections and Articles and the insertion of headings are for convenience of
 reference only and do not affect the construction or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless
 specified otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) where
 the word "including" or "includes" is used in this Agreement, it
 means "including without limitation" or "includes without limitation";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 expressions "hereof", "herein", "hereto", "hereunder",
 "hereby" and similar expressions refer to this Agreement and not to any particular
 Section of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any
 reference to legislation shall mean the legislation in force as at the Effective Date (together
 with all regulations promulgated thereunder), as amended, re-enacted, consolidated or replaced
 from time to time and any successor legislation thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) words
 in the singular include the plural and vice-versa and words in the one gender include all
 genders.

**ARTICLE II – TERM**

**2.1** **Indefinite Term** 

This Agreement shall commence and shall be deemed to be effective as of the Effective Date and the Executive's employment with the Corporation and this Agreement shall continue for an indefinite term thereafter unless and until terminated in accordance with this Agreement.

**ARTICLE III – EMPLOYMENT: POSITION AND DUTIES**

**3.1** **Position** 

Subject to the terms and conditions set out in this Agreement, the Corporation hereby agrees to continue to employ the Executive, and the Executive hereby agrees to serve the Corporation in the position of Chief Executive Officer, together with such other positions with the Corporation or its Affiliates as may be assigned to the Executive by the Board or by the Corporation which are consistent with Section 3.2 below.

**3.2** **Duties and Reporting** 

Reporting to the Board or as the Board may otherwise designate, the Executive shall perform all duties and responsibilities consistent with his position as may be assigned to him by the Corporation through the Board from time to time. The Executive shall perform all duties in accordance with the charter documents and by-laws of the Corporation, the instructions of the Board, and all of the Corporation's policies and codes of conduct, rules and regulations in effect from time to time. The Board retains full authority to change the Executive's duties and responsibilities and reporting relationships and to assign new duties and responsibilities to the Executive; *<u>provided that</u>*, any such changes or assignments shall be reasonably comparable in organizational status and grade to the Executive's position and, further, will not result in a diminution of the scope of the Executive's overall duties and responsibilities.

**3.3** **Full-Time** 

The Executive shall devote his full working time and attention to the business and affairs of the Corporation and its Affiliates, acting in their best interests at all times throughout his employment. The Executive shall not accept nor hold any position as an officer, director, employee, consultant, or any like position for or on behalf of any other entity that is competitive or related to the Business without the prior written approval of the Board, which approval may be withheld in the Board's sole discretion. Notwithstanding the foregoing, the Executive shall not be prohibited from serving as an unpaid volunteer, director, officer, advisor or similar position for any charitable or not-for-profit organization, so long as such activities do not constitute a potential conflict of interest and do not materially interfere with the Executive's duties or responsibilities with the Corporation.

**3.4** **Directorship** 

To the extent nominated and approved by the shareholders of the Corporation, the Executive hereby agrees to serve as a member of the Board and, to the extent so directed and appointed by the Corporation, as a member of the board of directors of any Affiliate of the Corporation.

**3.5** **Fiduciary Duties** 

The Executive acknowledges and agrees that, by virtue of his position and office, he occupies a position of fiduciary trust and confidence. Therefore, the Executive agrees to serve the Corporation in a manner which is consistent with his fiduciary duties including the highest standards of loyalty, confidentiality, good faith and avoidance of conflicts of duty and self- interest.

**3.6** **Compliance** 

The Executive shall abide by all laws applicable to the Corporation in each jurisdiction that it does business including, without limitation, all securities laws governing publicly traded companies. Recognizing the Corporation's commitment to achieving high standards of openness and accountability, the Executive shall raise with the Board, in a prompt manner, any good faith concerns he has regarding the conduct of the Corporation's business or compliance with the Corporation's financial, legal or reporting obligations.

**3.7** **Executive's Covenants** 

The Executive represents and warrants to the Corporation that he is free to enter this Agreement and that he is not subject to any obligation or restriction (statutory, contractual or at common law) which would prevent or interfere with the performance of all of his obligations hereunder. The Executive acknowledges and agrees that this Agreement and his employment with the Corporation are conditional on the Executive having and maintaining the lawful right to work for the Corporation in Canada.

**ARTICLE IV – COMPENSATION**

**4.1** **Base Salary** 

During the Executive's active employment with the Corporation, the Corporation shall pay the Executive a base salary at the rate of US$165,000 annually (the "**Base Salary**"), less applicable withholdings and deductions, paid in such instalments and at such times and in the same manner as the Corporation pays its other senior executives. The Base Salary will be reviewed annually, with increases from time to time as determined by the Corporation in its sole discretion.

**4.2** **Annual Discretionary Incentive Bonus** 

For each completed Fiscal Year during which the Executive is employed by the Corporation pursuant to this Agreement, the Executive shall be eligible to receive a discretionary cash bonus in an amount up to US$40,000 per fiscal year, and in such manner as determined in the Board's sole discretion (an "**Annual Bonus**"). Annual Bonus awards, if any, are contingent on the Executive not having ceased employment with the Corporation for any reason whatsoever during the relevant Fiscal Year, will be earned only upon completion of the relevant Fiscal Year, will be payable after completion of the Corporation's audited financial statements for such Fiscal Year, and are conditional on the Executive being employed at the time of pay out.

**4.3** **Vacation** 

The Executive shall accrue vacation of four (4) weeks per calendar year (prorated for partial years of employment) or such greater amount of vacation as provided for in the Corporation's policies. The Executive's vacation may be taken at such intervals as shall be appropriate and consistent with the proper performance of the Executive's duties and as agreed upon between the Executive and the Corporation. Accumulated vacation time or pay may not be carried forward except with the prior approval of the Board.

**4.4** **Reimbursement of Expenses** 

Upon presentation of proper receipts or other proof of expenditure and subject to such reasonable guidelines or limitations provided by the Corporation from time to time, the Corporation shall reimburse the Executive for all reasonable and necessary expenses actually incurred by the Executive directly in connection with the business affairs of the Corporation and the performance of his duties hereunder, including for greater certainty, all reasonable travel and accommodation fees to and from the Cayman Islands for Corporation-related matters. The Executive shall comply with such reasonable limitations and reporting requirements with respect to such expenses as the Board may establish from time to time.

**4.5** **No Other Benefits, Etc.** 

The Executive is not entitled to any other payment, benefit, perquisite, allowance or entitlement other than as specifically set out in this Agreement or as otherwise agreed to in writing and signed by the Corporation and the Executive. Unless otherwise specifically provided for herein, all payments, benefits, perquisites, allowances or other entitlements provided or made available to the Executive during his employment hereunder shall cease on the Date of Termination.

**4.6** **Aggregate Compensation** 

For greater certainty, the compensation set out in this Agreement (including any payments, benefits or other entitlements which may be owing to the Executive pursuant to Article V below) represent the aggregate of all compensation to which the Executive is entitled from the Corporation or any of its Affiliates, including for any services as an employee, officer or director. In the discretion of the Corporation, payment of such compensation or benefits may be provided to the Executive by the Corporation or by any of its Affiliates; *<u>provided that</u>*, in any event, the Corporation shall be responsible for any failure of any such Affiliate to pay or provide to the Executive any compensation or benefit set out in this Agreement.

**ARTICLE V – TERMINATION OF EMPLOYMENT**

**5.1** **Early Termination** 

Notwithstanding any other provision in this Agreement, the Executive's employment shall be subject to termination at any time as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Death*.
 The Executive's employment shall automatically terminate upon the death of the Executive.
 In such event, the Corporation's obligations and the Executive's entitlements
 shall be as set out in Sections 5.2 and 5.3 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Just Cause*. The Corporation may terminate this Agreement and the Executive's employment
 at any time forthwith for any Just Cause. In such event, the Corporation's obligations
 and the Executive's entitlements shall be as set out in Sections 5.2 and 5.3 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Without Just Cause*. The Corporation may terminate the Executive's employment at any time
 without Just Cause by providing written notice to the Executive specifying the effective
 Date of Termination, which date may be forthwith. In such event, the Corporation shall provide
 and the Executive shall be entitled to receive the payments, benefits and entitlements as
 set out in Sections 5.2 and 5.4 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Resignation*.
 The Executive may terminate this Agreement and his employment at any time by providing two
 (2) months' written notice of resignation to the Corporation specifying the Date of
 Termination. In such event, the Corporation's obligations and the Executive's
 entitlements shall be as set out in Sections 5.2 and 5.3
below. During the period between the notice of resignation until the Date of Termination, the Corporation may, in its discretion,
with respect to any or all of such period, do any of the following (and, notwithstanding anything contained in this Agreement and
for greater certainty, none shall constitute a constructive dismissal): remove any duties assigned to the Executive; assign to the
Executive other duties; require the Executive to remain away from the Corporation's place of business; or waive the remaining
notice of resignation period and consider the Executive's notice to be effective immediately or on some date prior to the
expiration of the notice of resignation period specified by the Executive. Notwithstanding any waiver by the Corporation of the
notice of resignation period, for the period of time remaining until the Date of Termination specified by the Executive, the
Executive will continue to be paid the Base Salary and participate in benefits (if applicable), in any event, for no less than the
minimum period required by the ESA, but *<u>provided that</u>* the Executive acts in a manner consistent with his obligations
as a fiduciary employee of the Corporation and in compliance with his obligations under this Agreement.

**5.2** **Consequences of Any Termination of Employment** 

In the event of the termination of the Executive's employment hereunder for any reason whatsoever, then the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Corporation shall pay to the Executive any Base Salary and vacation pay earned by and remaining
 payable to the Executive up to the Date of Termination or as otherwise may be required pursuant
 to the ESA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Executive will be provided with any benefits, perquisites and allowances to which the Executive
 is entitled pursuant to the applicable plans and policies up to the Date of Termination or
 as otherwise may be required pursuant to the ESA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Unless
 otherwise specifically set out herein or in any plan or other agreement, the Executive's
 participation in all bonus or incentive plans (including the Annual Bonus) and any long term
 incentive plan or other equity participation plans terminates immediately on the Date of
 Termination and, further, the Executive's entitlements (including with respect to vesting
 and exercise) with respect to any long term incentive compensation will be in accordance
 with the such applicable plans and policies as may be adopted by the Board, together with
 such relevant grant or other agreements entered into with the Executive.

**5.3** **Termination by Reason of Death, Just Cause or Resignation** 

If the Executive's employment is terminated pursuant to any of Sections 5.1(a), 5.1(b) or 5.1(d) herein, then the Executive shall have no entitlement to any further notice of termination, payment in lieu of notice of termination, severance, or any damages whatsoever. All benefits, perquisites, allowances and other entitlements shall cease on the Date of Termination (except for any entitlement pursuant to any health and welfare or insurance benefit which may be payable in accordance with the applicable plans or policies as of the Date of Termination). In any event, the Executive shall not be entitled to any Annual Bonus or any additional bonus or incentive, *pro rata* or otherwise, for the Fiscal Year in which the Date of Termination occurs.

**5.4** **Termination Without Just Cause** 

If the Executive's employment is terminated by the Corporation without Just Cause pursuant to Section 5.1(c) herein, then the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Executive shall be eligible for an Annual Bonus *pro rata* for the period up to the
 Date of Termination, such bonus to be determined by the Board in its sole discretion but
 also having regard to performance of the Corporation and the Executive up to such date and
 to payments made to other executives of the Corporation, such Annual Bonus (if any) being
 made at the same time generally as annual bonuses are paid to other senior executives of
 the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As
 severance, the Corporation shall continue to pay the Executive's Base Salary for a
 period equal to (6) months following the Date of Termination, plus one (1) additional month
 per year of the Executive's completed employment with the Corporation, up to a maximum
 of twelve (12) months in the aggregate. The foregoing severance shall commence on the first
 payroll date after the Date of Termination (or, if later, on the first payroll following
 delivery by the Executive to the Corporation of a signed release as required by Section 5.6
 below), shall be payable by way of salary continuation over the course of the Severance Period,
 and end once the severance outlined in this 5.4(b) has been fully paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except
 for all short term and long term disability insurance or any other benefits or entitlements
 which cannot be continued by the applicable plans or policies (all of which shall cease immediately
 effective on the Date of Termination or on the earliest date thereafter as may be required
 by the minimum provisions of the ESA), the Corporation shall continue all of the benefits
 in which the Executive was participating as at the Date of Termination (if applicable) for
 the Severance Period to the extent that the Corporation may do so legally and in compliance
 with the relevant plans and policies in existence from time to time; *<u>provided that</u>* ,
 if the Corporation cannot continue any particular benefit (if applicable) pursuant to the
 terms of the relevant plan or policy, then the Corporation's obligations shall be limited
 to the minimum requirements of the ESA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Executive shall not be required to mitigate damages by seeking other employment or otherwise.
 No amount provided in this Agreement shall be reduced in any respect in the event that the
 Executive secures or does not reasonably pursue alternative employment following the termination
 of the Executive's employment with the Corporation; *<u>provided that</u>* , to
 the extent that the Executive substantially replaces any benefit(s) (if applicable) following
 the Date of Termination, the Executive shall advise the Corporation forthwith and the Corporation
 shall no longer be required to continue any benefit(s) (if applicable) which has been so
 replaced by the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Save
 and except for such minimum payments and benefits as may be required by the ESA, the payments
 and benefits described in this Section 5.4 are conditional on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Executive having signed and delivered to the Corporation a release as required in Section
 5.6 herein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Executive having abided by all of the obligations described in this Agreement as continuing
 following the Date of Termination.

**5.5** **Minimum Standards** 

To the extent that the minimum standards of the ESA require any notice of termination, termination pay, severance pay or continuation of any benefits, perquisites, allowances or entitlements greater than that provided for in this Agreement, then such minimum standards shall be deemed to be incorporated into this Agreement and shall prevail to the extent greater.

**5.6** **Release** 

The parties agree that the provisions of this Article V are fair and reasonable and, in particular, that the payments, benefits and entitlements referred to in Section 5.4 above are reasonable estimates of the damages which will be suffered by the Executive in the event of the termination of this Agreement and of his employment with the Corporation. Except as otherwise provided in this Article V, the Executive shall not be entitled to any further notice of termination, payment in lieu of notice of termination, severance, damages, or any additional compensation whatsoever arising out of or in connection with his termination of employment; the Executive acknowledges and agrees that the payments and benefits provided pursuant to this Article V above are in full satisfaction of his entitlements upon termination of employment and, further, are inclusive of any termination pay and severance pay required by the ESA. As a condition precedent to any payment or continuation of benefits pursuant to Section 5.4 above (but except for the Corporation's obligations pursuant to the minimum provisions of the ESA), the Executive agrees to deliver a full and final release from all actions or claims in connection therewith in favour of the Corporation, its Affiliates, and all of their respective officers, directors, trustees, shareholders, employees, attorneys, insurers and agents, such release to be in a form satisfactory to the Corporation.

**5.7** **Resignation as Director and Officer** 

The Executive covenants and agrees that, upon any termination of his employment, howsoever caused, he shall forthwith tender his resignation from all offices, directorships and trusteeships then held by the Executive at the Corporation or any of its Affiliates, such resignation to be effective upon the Date of Termination. If the Executive fails to resign as set out above, the Executive will be deemed to have resigned from all such offices, directorships and trusteeships and the Corporation is hereby authorized by the Executive to appoint any person in the Executive's name and on the Executive's behalf to sign any documents or do anything necessary or required to give effect to such resignation.

**5.8** **Return of Property** 

All equipment, keys, pass cards, credit cards, software, material, written correspondence, memoranda, communication, reports, or other documents or property pertaining to the business of the Corporation used or produced by the Executive in connection with his employment, or in his possession or under his control, shall at all times remain the property of the Corporation. The Executive shall return all property of the Corporation in his possession or under his control in good condition forthwith upon any request by the Corporation or upon any of the termination of this Agreement and of the Executive's employment (regardless of the reason for such termination).

**ARTICLE VI – CONFIDENTIALITY AND OTHER PROTECTIONS**

**6.1** **Protection of Confidential Information** 

While employed by the Corporation and following the termination of this Agreement or of the Executive's employment (regardless of the reason for any termination), the Executive shall not, directly or indirectly, in any way use or disclose to any person any Confidential Information except as provided for herein. The Executive agrees and acknowledges that the Confidential Information of the Corporation or of its Affiliates is the exclusive property of the Corporation and its Affiliates to be used exclusively by the Executive to perform the Executive's duties and fulfil his obligations to the Corporation and its Affiliates and not for any other reason or purpose. Therefore, the Executive agrees to hold all such Confidential Information in trust for the Corporation and the Executive further confirms and acknowledges his fiduciary duty to use his best efforts to protect the Confidential Information, not to misuse such information, and to protect the Confidential Information from any misuse, misappropriation, harm or interference by others in any manner whatsoever. The Executive agrees to protect the Confidential Information regardless of whether the information was disclosed in verbal, written, electronic, digital, visual or other form, and the Executive hereby agrees to give notice immediately to the Corporation of any unauthorized use or disclosure of Confidential Information of which he becomes aware. The Executive further agrees to assist the Corporation in remedying any such unauthorized use or disclosure of Confidential Information. In the event that the Executive is requested or required to disclose to third parties any Confidential Information, the Executive will, prior to disclosing such Confidential Information, provide the Corporation with prompt notice of such request(s) or requirement(s) so that the Corporation may seek appropriate legal protection or waive compliance with the provisions of this Agreement. The Executive will not oppose action by, and will cooperate with the Corporation to obtain legal protection or other reliable assurance that confidential treatment will be accorded the Confidential Information.

**6.2** **Corporate Opportunities** 

Any business opportunities related in any way to the business and affairs of the Corporation or any of its Affiliates which become known to the Executive during his employment hereunder shall be fully disclosed and made available to the Corporation and shall not be appropriated by Executive under any circumstance without the prior written consent of the Corporation.

**6.3** **Trading** 

During the Executives' employment and continuing after the Date of Termination, the Executive shall comply with all prohibitions prescribed by law or by the Corporation's applicable policies against "insider trading" with respect to the securities of the Corporation having regard to any material fact or material change with respect to the Corporation of which the Executive has knowledge and that has not been generally disclosed.

**6.4** **Mutual Non-Disparagement** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) While
 employed by the Corporation and following the termination of this Agreement or of the Executive's
 employment (regardless of the reason for any termination), the Executive will not make or
 encourage others to make any statement or communication that is intended to or that may reasonably
 be expected to become public that criticizes, disparages or is otherwise derogatory of the
 Corporation or any of its Affiliates or any of their present or former employees, officers,
 directors or shareholders; *<u>provided that</u>* , the foregoing shall not apply to
 compliance by the Executive with legal process or subpoena, statements by the Executive in
 response to an enquiry from a court or regulatory body, statements by the Executive made
 in direct rebuttal of public statements about the Executive, or statements made by the Executive
 in response to an enquiry from the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Corporation will not make or encourage others to make any statement or communication that
 is intended to or that may reasonably be expected to become public that criticizes, disparages
 or is otherwise derogatory of the Executive; *<u>provided that</u>* , the foregoing shall
 not apply to compliance with legal process or subpoena, statements in response to an enquiry
 from a court or regulatory body, statements made in direct rebuttal of public statements
 about the Corporation or its Affiliates, statements made in response to an enquiry from the
 Board, statements made internally within the Corporation or any of its Affiliates (including,
 without limitation, any assessment with respect to the Executive's job performance),
 or statements made by individuals not authorized to speak on behalf of the Corporation.

**ARTICLE VII – PROPRIETARY RIGHTS**

**7.1** **Innovations** 

The Executive understands, acknowledges, and agrees that all Innovations which the Executive, solely or jointly with others, conceives, reduces to practice, creates, derives, develops or makes in the course of or in connection with the Executive's employment with the Corporation or any of its Affiliates shall belong solely to the Corporation and all such Innovations which constitute works of authorship shall be "works made in the course of employment" pursuant to the *Copyright Act* (Canada) and "works made for hire" pursuant to the *Copyright Act* (U.S.A.). The Executive shall promptly disclose to the Corporation in writing any and all Innovations, conceived, reduced to practice, created, derived, developed or made in the course of or otherwise in connection with the Executive's employment with the Corporation or any of its Affiliates, whether alone or with others, and whether during regular working hours or through the use of facilities and properties of the Corporation or otherwise which may in any way relate to the Business.

**7.2** **Assignment of Innovations** 

The Executive hereby assigns and agrees to assign to the Corporation or such other party as the Corporation may designate all of the Executive's right, title, and interest (including patent rights and copyrights) in and to all Innovations and all related patents, patent applications, copyright and copyright applications, and does hereby waive all moral rights, if any, that the Executive may have therein in favour of the Corporation or such other party as the Corporation may designate and, at the Corporation's request, the Executive agrees to provide whatever assistance the Corporation (or such other party, as the case may be) may require to register, record, perfect, or otherwise secure the Corporation's (or such other party's, as the case may be) rights in the Innovations. The Executive hereby irrevocably appoints and designates the Corporation and its duly authorized officers and agents as his agents and attorneys-in-fact to act for and in the Executive's behalf and instead of the Executive, to execute such documents and to take such actions as the Corporation believes are necessary to effect the foregoing assignment.

**ARTICLE VIII – RESTRICTIVE COVENANTS**

**8.1** **Non-Competition** 

The Executive covenants that he will not, at any time while the Executive is employed by or is a director or officer of the Corporation nor at any time during the Non-Competition Period, directly or indirectly, anywhere in the Territory, either individually or jointly with any other person or entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) become
 engaged as an employee, consultant, independent contractor, partner, principal, agent or
 advisor in any business which carries on any Business; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) carry
 on or provide services in any capacity to or have any financial interest in any business
 which carries on any Business.

For greater certainty, the restrictions contained in this Agreement shall apply in the event of any termination of the Executive's employment with the Corporation, regardless of who initiated the termination and regardless of the reasons therefor (and specifically including any termination of the Executive's employment with Just Cause).

**8.2** **Non-Solicitation and Non-Negotiation** 

The Executive covenants that he will not, at any time while the Executive is employed by or is a director or officer of the Corporation (except on behalf of and for the benefit of the Corporation) nor at any time during the Non-Solicitation Period, in any capacity, directly or indirectly, either individually or jointly with any other person or entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) solicit
 or divert away from the Corporation or any of its Affiliates or employ or engage (as an employee,
 independent contractor or otherwise) any person who is employed or engaged by the Corporation
 or any of its Affiliates as at the Date of Termination or who was employed or engaged by
 the Corporation or any of its Affiliates within the twelve (12) month period preceding the
 Date of Termination; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) solicit,
 interfere with, induce or divert away from the Corporation or any of its Affiliates the business
 or patronage of any Business Relationship or any of the clients, customers or accounts of
 the Corporation or any of its Affiliates or anyone who was a Business Relationship, client,
 customer or account of the Corporation of any of its Affiliates during the twelve (12) month
 period immediately preceding the Date of Termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) for
 the purpose or benefit of any Business, accept any business or patronage from, render any
 service to, or contract with anyone who was a Business Relationship, client or a customer
 of the Corporation or any of its Affiliates during the twelve (12)
month period immediately preceding the Date of Termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) participate
 in or advise any person or entity in any negotiation between such person or entity and the
 Corporation or any of its Affiliates; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) attempt
 to do any of the foregoing.

For greater certainty, the restrictions contained in this Section 8.2 shall apply in the event of any termination of the Executive's employment with the Corporation, regardless of who initiated the termination and regardless of the reasons therefor (and specifically including any termination of the Executive's employment whether with or without Just Cause).

**8.3** **Fiduciary Duty** 

The covenants set out in Article VI, Article VII, Article VIII and Article IX hereof shall not affect nor diminish the Executive's fiduciary obligations to the Corporation.

**ARTICLE IX– REMEDIES**

**9.1** **Remedy** 

The restrictions in Articles VI, VII and VIII hereof are independent from and do not detract from any other agreements or obligations by the Executive owed to the Corporation or its Affiliates in connection with confidentiality, proprietary rights, non-competition and non- solicitation. Further, the Executive acknowledges and agrees that he is employed in a fiduciary capacity, with obligations of trust and loyalty owed by him to the Corporation and its Affiliates. Accordingly, the Executive agrees the restrictions in Articles VI, VII and VIII hereof are reasonable in the circumstances of the Executive's employment and that the business and affairs of the Corporation and its Affiliates cannot be properly protected from the adverse consequences of the actions of the Executive other than by the restrictions set forth in this Agreement. If any of the restrictions are determined to be unenforceable as going beyond what is reasonable in the circumstances for the protection of the interests of the Corporation or any of its Affiliates but would be valid, for example, if the scope of their time periods or geographic areas were limited, the parties consent to the court making such modifications as may be required and such restrictions shall apply with such modifications as may be necessary to make them valid and effective.

**9.2** **Injunctions, Etc.** 

The Executive acknowledges and agrees that in the event of a breach of the covenants, provisions and restrictions in any of Articles VI, VII or VIII hereof by the Executive, the Corporation's and its Affiliates' remedy in the form of monetary damages will be inadequate. Therefore, the Corporation and its Affiliates shall be and are hereby authorized and entitled, in addition to all other rights and remedies available to it, to apply to a court of competent jurisdiction for interim and permanent injunctive relief and an accounting of all profits and benefits arising out of such breach. Without limiting any of the foregoing, with the exception of such minimum payments and benefits that may be owing to the Executive pursuant to the ESA, in the event of any breach by the Executive of the Articles referred to in the first sentence of this Section 9.2, then: (a) the Corporation may cease providing to the Executive any of the outstanding payments or continuation of benefits as set out in Sections 5.4(a), 5.4(b) or 5.4(c) above and, further, the Corporation shall be entitled to repayment of all amounts previously paid to the Executive in connection therewith; and (b) the Executive's participation in any long term incentive plan or other employee plans terminates immediately without any further vesting or exercise rights with respect to any long term incentive compensation.

**9.3** **Survival** 

Each and every provision of Articles I, VI, VII, VIII, IX and X hereof shall survive the termination of this Agreement or the Executive's employment hereunder (regardless of the reason for such termination).

**ARTICLE X – GENERAL CONTRACT TERMS**

**10.1** **Recitals** 

The Corporation and the Executive represent and warrant to each other that the Recitals set out above are true.

**10.2** **Withholding** 

All amounts paid or payable and all benefits, perquisites, allowances or entitlements provided to the Executive under this Agreement are subject to applicable taxes and withholdings. Accordingly, the Corporation shall be entitled to deduct and withhold from any amount payable to the Executive hereunder such sums that the Corporation is required to withhold pursuant to any federal, provincial, state, local or foreign withholding or other applicable taxes or levies. Notwithstanding the foregoing, the Executive acknowledges and agrees that he is solely responsible for all tax liability arising from his receipt of any payments, benefits, perquisites, allowances or entitlements as set out in this Agreement.

**10.3** **Rights and Waivers** 

All rights and remedies of the parties are separate and cumulative, and none of them, whether exercised or not, shall be deemed to be to the exclusion of any other rights or remedies or shall be deemed to limit or prejudice any other legal or equitable rights or remedies which either of the parties may have.

**10.4** **Waiver** 

Any purported waiver of any default, breach or non-compliance under this Agreement is not effective unless in writing and signed by the party to be bound by the waiver. No waiver shall be inferred from or implied by any failure to act or delay in acting by a party in respect of any default, breach or non-observance or by anything done or omitted to be done by the other party. The waiver by a party of any default, breach or non-compliance under this Agreement shall not operate as a waiver of that party's rights under this Agreement in respect of any continuing or subsequent default, breach or non-observance (whether of the same or any other nature).

**10.5** **Severability** 

Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of the prohibition or unenforceability and shall be severed from the balance of this Agreement, all without affecting the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

**10.6** **Notices** 

Any notice required or permitted to be given under this Agreement shall be in writing and shall be properly given if personally delivered, delivered by facsimile transmission (with confirmation of receipt) or mailed by prepaid registered mail addressed as follows:

to the Corporation at:

The Sky Guys Ltd.

574 Chartwell Road

Oakville, Ontario,

L6J 4A5

to the Executive at the last address in the Corporation's records,

or to such other address as the parties may from time to time specify by notice given in accordance herewith. Any notice so given shall be conclusively deemed to have been given or made on the day of delivery, if personally delivered, or if delivered by facsimile transmission or mailed as aforesaid, upon the date shown on the facsimile confirmation of receipt or on the postal return receipt as the date upon which the envelope containing such notice was actually received by the addressee.

**10.7** **Time of Essence** 

Time shall be of the essence of this Agreement in all respects.

**10.8** **Successors and Assigns** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This
 Agreement shall inure to the benefit of, and be binding on, the parties and their respective
 heirs, administrators, executors, successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Executive shall not assign or transfer, whether absolutely, by way of security or otherwise,
 all or any part of the Executive's rights or obligations under this Agreement without
 the prior consent of the Corporation, which may be arbitrarily withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Corporation shall have the right to assign this Agreement to any of its Affiliates or to
 any successor (whether direct or indirect, by purchase, amalgamation, arrangement, merger,
 consolidation or otherwise) to all or substantially all of the business and/or assets of
 the Corporation; *<u>provided that</u>* , the Corporation must first require that such
 assignee expressly assume and agree to perform this Agreement. On and after such assignment,
 all references to the "Corporation" hereunder shall include its successor. The
 Executive shall not be entitled to any payment or other consideration or to any advance notice
 of any such assignment and, by his signature hereto, the Executive expressly consents to
 such assignment.

**10.9** **Amendment** 

No amendment of this Agreement will be effective unless made in writing and signed by the parties.

**10.10** **Entire Agreement** 

This Agreement constitutes the entire agreement between the parties pertaining to the subject matter of this Agreement and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written. There are no conditions, warranties, representations or other agreements between the parties in connection with the subject matter of this Agreement (whether oral or written, express or implied, statutory or otherwise) except as specifically set out in this Agreement.

**10.11** **Governing Law** 

Unless otherwise indicated, legislation referred to in this Agreement is Ontario legislation. This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable in that Province and shall be treated, in all respects, as an Ontario contract.

**10.12** **Independent Legal Advice** 

The parties acknowledge that prior to executing this Agreement they have each had the opportunity to obtain independent legal advice and that they fully understand the nature of this Agreement and that they are entering into this Agreement voluntarily.

**10.13** **Counterparts** 

This Agreement may be signed in one or more counterparts, each of which so signed shall be deemed to be an original, and such counterparts together shall constitute one and the same instrument. Notwithstanding the date of execution or transmission of any counterpart, each counterpart shall be deemed to have the Effective Date first written above.

**IN WITNESS WHEREOF** this Agreement has been signed by the parties hereto under seal this **25** day of **October**, 2018.

---

| | | |
|:---|:---|:---|
| **SIGNED, SEALED and DELIVERED** | **THE SKY GUYS LTD.** | **THE SKY GUYS LTD.** |
| **in the presence of** | | |
|  | Per: | /s/ |
|  |  | Name: |
|  |  | Title: |
|  | I have the authority to bind the Corporation | I have the authority to bind the Corporation |
|  | /s/ Adam Sax | /s/ Adam Sax |
|  | **ADAM SAX** | **ADAM SAX** |

---

## Exhibit 10.9

**Exhibit 10.9**

October 7, 2017

Thomas Hanson

1204 Bonnybank Court

Oakville, ON L6M 1V7

Dear Thomas:

The Sky Guys ("the **Company**") is pleased to offer you additional vacation time of one (1) day per year effective on October 1, 2017. In consideration of this change you will be required to sign an Employment Agreement. The purpose of this Employment Agreement is to clarify our respective rights and obligations and will recognize your contribution to the Sky Guys from your original start date of April 1, 2016. This document will govern our employment relationship so please review them carefully and obtain any legal advice you deem appropriate. This Employment Agreement constitutes the entire agreement and supersedes all prior agreements, understanding or arrangements, whether oral or written, between you and the Corporation with respect to the subject matter of this agreement.

Outlined below are the terms and conditions upon which you will be employed (the "**Employment Agreement**"):

1. *<u>Role and Responsibilities</u>* 

Your title will be Chief Operating Officer. It is understood and agreed that your job description does not provide an exhaustive description of your job, and that you will perform such other duties as may be reasonably assigned. Also, the Company may make reasonable changes to your job duties from time to time, depending upon the needs of the Company. In the event that your job title and/or your roles and responsibilities with the Company change, the remaining terms and conditions outlined in this Employment Agreement will remain applicable, unless otherwise agreed to in writing.

2. *<u>Compensation</u>* 

All information in this Employment Agreement about your compensation is specific to you and your role.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>A.</u> <u>Salary</u> 

Your base salary will remain at $75,000, per year payable in accordance with the standard payroll practices of the Company ("**Base Salary"**). Your base salary will be reviewed regularly as part of our annual review process; however, no increase is guaranteed at that time (or at any other time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>B.</u> <u>Bonus</u> 

You will be eligible to participate in the company bonus program at a rate of up to $10,000 per year. Your bonus is subject to the following terms and conditions:

● All Bonus payments are discretionary, and no Bonus payments are guaranteed

● Any Bonus payment made to you for the current calendar year will be pro-rated based on your Start Date and your period of active employment during the calendar year;

● Bonus targets are reviewed annually and subject to change at any time without notice;

Page 1 of 7

● Bonus payments are based on both the Company's financial performance and your personal performance and are subject to the approval of the Board of Directors

● Should you employment end for any reason before Bonus is paid for any given year, you will not be entitled to a Bonus (either for Company or Individual Performance) in respect of any period of time you have worked – in other words, in order to be eligible to receive a Bonus payment for any particular year, you must be actively employed at the time of Bonuses (if any) are paid for that particular year; and

● If, for any potion of any particular year, you are not engaged in active employment (such as any time of leave of absence) but provided you are engaged in active employment at the time of the Bonus payment (if any) for that particular year, you will be eligible for a pro-rated Bonus for the year in question, based on that portion of the year for which you were engaged in active employment

3. *<u>Vacation</u>* 

Entitlement to vacation is three (3) weeks + one (1) day per calendar year.

Vacation must be taken according to the Company's Vacation Policy and, in all cases, will be approved according to Company needs. In any year that employment ends for any reason, whether voluntarily or involuntarily, if your actual vacation taken and paid exceeds the pro-rata entitlement at the date of termination, the excess vacation pay will be deducted from any final payment owing to you.

4. *<u>Expense Reimbursement</u>* 

The Company will pay or reimburse you for all travel and out-of-pocket expenses reasonably incurred or paid in the performance of your duties and responsibilities upon presentation of expense statements or receipts or such other supporting documentation as the Company may reasonably require. [Any expenses which you incur contrary to the Company's policy regarding expenses will be denied reimbursement or, as applicable, will be deducted from your hourly wages (or, in the event of voluntary or involuntary termination of your employment, from any final payment owing to you).

5. *<u>Termination of Employment</u>* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>A.</u> <u>Termination for Just Cause</u> 

The Company may terminate your employment without notice at any time if you engage in misconduct sufficient to constitute just cause as defined by statute and/or common law. For greater certainty, just cause for termination of your employment includes, but is not limited to:

● Assault or threats;

● Harassment;

● Discrimination;

● Fraud or other unethical conduct;

● Theft;

● Vandalism;

● Providing inaccurate or incomplete information during the hiring process;

● Disclosure of the details of your compensation (or any other employee's compensation), including Base Salary, Bonus target or Bonus payment;

● Engaging in any act of misconduct following receipt of a final warning pursuant to a disciplinary escalation process.

Page 2 of 7

If the Company terminates your employment for just cause, it shall not be obligated to make further Bonus or other payment under this Employment Agreement, or provide you with any other arrangements in connection with the termination of your employment, except (i) the payment of any Base Salary due, owing and remaining unpaid at the time your employment is terminated, and (ii) the provision of any further minimum payment(s) and other arrangement(s) that may be required to ensure our compliance with applicable employment standards legislation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>B.</u> <u>Termination Without Cause</u> 

Upon the completion of your Probationary Period, your employment may be terminated by the Company without cause, upon providing you with the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) two
 (2) weeks' notice (or pay in lieu thereof), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such
 minimum notice (or pay in lieu thereof) and severance pay as may be prescribed by applicable
 employment standards legislation.

It is expressly understood and agreed that in the event that you are provided with pay in lieu of notice pursuant to sub-section (i) or (ii) above, such payment in lieu of notice shall be: (a) comprised of Base Salary only (and, in particular, will not include any payment whatsoever in respect of Bonus or Commissions), and (b) accompanied by only such Benefits continuation as may be minimally required to ensure The Company's compliance with applicable employment standards legislation.

Notwithstanding the foregoing, the Company shall be entitled to terminate your employment upon providing you with only your minimum applicable statutory termination entitlements (i.e. in respect of notice of termination (or pay in lieu thereof), severance pay and Benefits continuation (if applicable)) in the event that (i) the Company has filed for or been petitioned into bankruptcy on or before the date of your termination, and (ii) the Company has not yet emerged from bankruptcy protection or remains in receivership on the date of your termination.

To be clear, after the termination of your employment, any period of Base Salary continuance will not be considered to be active employment with The Company.

Payment of any amounts contemplated herein which are in excess of your minimum applicable statutory termination entitlements is and shall be conditional upon your signing of a Full and Final Release in favour of the Company and its parent, related, affiliated and/or subsidiary entities.

You expressly agree that, if The Company terminates your employment in accordance with the terms of this Section, you will have no further or other claim for hourly wages, Bonus, Benefits, Commissions, incentive payments, notice or pay in lieu of notice, severance, disability payments or any other compensation whatsoever as against The Company, whether pursuant to statute, contract, common law or otherwise.

Page 3 of 7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>C.</u> <u>Termination by You (Resignation)</u> 

If you decide to resign, you must provide the Company with four (4) weeks of working notice of your resignation. Such notice must be in writing. The Company reserves the right to waive part or all of this notice period without further obligation to you, financial or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;6. *<u>Post-Employment</u>* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>A.</u> <u>Non-Solicitation</u> 

During your employment with the Company and for a period of two (2) years following the cessation of your employment with the Company for any reason, you are prohibited from directly or indirectly, on your own account or as an agent for a third party, hiring, attempting to hire, soliciting or retaining any employee(s) of the Company, with whom you interacted at any time during the last twenty-four (24) months of your employment with the Company. For purposes of this Section, an "employee of The Company" is someone actively employed by the Company on the last day of your employment and at the time of your solicitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>B.</u> <u>Non-Competition</u> 

The Employee agrees that during the Employee's term of active employment with the Employer and for a period of two (2) years after the end of that term, the Employee will not, directly or indirectly, as employee, owner, sole proprietor, partner, director, member, consultant, agent, founder, co-venturer or otherwise, solely or jointly with others engage in any business that is in competition with the business of the Employer within any geographic area in which the Employer conducts its business, or give advice or lend credit, money or the Employee's reputation to any natural person or business entity engaged in a competing business in any geographic area in which the Employer conducts its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>C.</u> <u>Social Media</u> 

*Company Accounts*

If you maintain, post, communicate or perform any duties on a social media platform on behalf of the Company and/or as part of your employment, you acknowledge that the social media accounts and contents, followers, connections, friends contained therein, etc., are the property of the Company. At no time shall your activities on these platforms and with these contacts/connections result in your ownership of these accounts, connections, contacts or content.

*Your Accounts*

You will, immediately upon termination of this Employment Agreement (for any reason), update your social media accounts (e.g. Linkedin, Facebook etc.) to reflect the fact that you are no longer employed by the Company.

7. *<u>Non-Disparagement</u>* 

During your employment and upon its termination for any reason, you agree not to publicly or privately disparage the Corporation or its products or services, or current or former principals, directors, officers, employees, agents or contractors in any medium or by way of any manner of communication, including without limitation, social media platforms such as LinkedIn, Twitter, Facebook, Google+ and public and private websites.

Page 4 of 7

8. *<u>Intellectual Property Rights and Work Product</u>* 

Any discoveries, inventions, developments, concepts, improvements, software, notes, charts, algorithms, formulae, data, records, symbols, reports, original works and other intellectual property (whether or not patentable or registrable under copyright or similar laws) that is prepared, created, written or recorded in association with your services provided to the Company (collectively, the "**Work Product**"), together with any intellectual property rights therein shall be owned by the Company. Employee acknowledges and agrees that Company shall own all rights, title and interest in and to such Work Product and such intellectual property rights to me: accordingly, Employee hereby assigns to Company all rights, title and interest it may have from time to time in the Work Products. Employee acknowledges and agrees that his or her services and the Work Product are "works made for hire" and hereby waives any moral rights he or she may have in such works.

9. *<u>Confidentiality</u>* 

Company policy deems all of the details of each employee's terms of employment, including but not limited to salary, any bonuses and benefits, as private and this information must remain strictly confidential. All information about the terms of your employment must be kept confidential and not shared with anyone at any time, other than your immediate family and your financial advisors. Likewise, if you are a manager, you are also required to keep compensation and other terms of employment for other employees strictly confidential. Failure to comply may result in disciplinary action up to and including termination of your employment.

During the term of this Employment Agreement, you will have access to other information that the Company considers to be confidential. Such confidential information includes, but is not limited to, any information concerning the customers, suppliers, products, pricing, employees, methods of distribution or procurement, potential business transactions, management, financial, purchasing, marketing, logistical and/or sales strategies and techniques of the Company together with the Company's inventions, production processes, trade secrets and other secret information; and you understand and agree that all such information constitutes valuable, special and unique property of the Company.

Accordingly, you agree that you will not, at any time (either during your employment with the Company or at any time thereafter), directly or indirectly, disclose to and/or use for the benefit of any person, firm, corporation, association, business entity or agency (whether governmental, private, or of any other nature whatsoever), any confidential information of the Company, except in connection with the lawful and proper performance of your duties on behalf of the Company.

10. *<u>Company Policies</u>* 

As an employee of the Company, you are required to review our corporate and employee policies, and to familiarize yourself with any new and/or amended policies as the Company may introduce from time to time.

These policies will form part of the terms and conditions of your employment and, by signing below and accepting this Employment Agreement, you confirm that you will be bound by and abide all such policies.

Page 5 of 7

11. *<u>General</u>* 

The terms and provisions of this Employment Agreement shall be for the benefit of the Company and its successors and assigns. In the event of any re-organization, merger or sale of the Company's business, the terms of this Employment Agreement may be assigned by the Company, in its sole discretion, to the applicable re-organized entity, merged entity or acquiring entity.

Each of the provisions in this Employment Agreement are severable from the others; and, in the event that any provision or part of this Employment Agreement is deemed invalid by a court of competent jurisdiction, the remaining provisions, or parts thereof, shall remain in full force and effect. This Employment Agreement shall be governed by and construed in accordance with the laws of Ontario.

By signing this Employment Agreement, you acknowledge and agree that this document contains all of the terms of your employment as you understand them and that nothing was done to induce you to leave your prior employment. In that regard, anything that you have discussed with any member of our staff will not form part of your Employment Agreement unless it is in this document.

If the above terms and conditions are agreeable, please indicate your agreement by signing this Employment Agreement no later than two (2) days from the date hereof.

---

| |
|:---|
| Sincerely, |
| /s/ Dallyce Sax |
| Dallyce Sax |
| VP of Client Services, The Sky Guys |

---

Page 6 of 7

*<u>Acceptance</u>*

 

I, Thomas Hanson hereby agree with and accept all terms and conditions of this Employment Agreement this Oct 10, 2017, and acknowledge that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All
 of the information that I have previously provided in connection with the hiring process
 is accurate and complete;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) I
 have had sufficient time to thoroughly review this Employment Agreement and to ask questions
 of the Company to confirm my understanding of the terms of this Employment Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) I
 have read and understood the terms of this Employment Agreement and my obligations thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) I
 understand my rights and obligations under this Employment Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) I
 have been given an opportunity to obtain independent legal advice concerning the interpretation
 and effect of this Employment Agreement ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) I
 agree that the terms outlined in this Employment Agreement will govern my relationship with
 the Company throughout my employment (and, as applicable, thereafter); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) I
 confirm that all applicable terms and conditions of my employment are reflected in this Employment
 Agreement and that there are no other terms, conditions or representations which have been
 communicated or made to me prior to signing this Employment Agreement which are not reflected
 in this Employment Agreement.

---

| | | |
|:---|:---|:---|
| Accepted: | <u>/s/ Tom Hanson</u> | Oct 10, 2017 |
|  | Signature | Date |

---

Page 7 of 7

## Exhibit 10.10

**Exhibit 10.10**

---

| | |
|:---|:---|
| ![](ex10-10_001.jpg) | UNLOCK THE UNKNOWN |

---

August 19, 2019

Tom Hanson

1245 Glenrose Crescent <br> Oakville, Ontario

L6M 3Y5

Dear Tom,

At The Sky Guys, we appreciate all you do to support our success. That is why we would like to advise you of the following changes to your compensation package:

Effective August 16<sup>th</sup>, 2019

● Annual base pay increase to $110,000 per year

● Bonus eligibility remains at $10,000 per year and is subject to terms of employment contract

Effective January 1<sup>st</sup>, 2020, or after successful equity financing of at least $200,000 CAD, whichever comes first

● Annual base pay increase to $150,000 per year

● Annual bonus eligibility increase to $30,000 per year subject to terms of employment agreement. Eligibility for the Bonus would be based on two achievements as follows;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. $10,000 of the bonus would be subject to company and personal
performance and is not subject to the achievement of item #2 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. $20,000 of the bonus would
be subject to the below:

● One hundred percent eligibility for this. bonus would entail:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The company raising a minimum of $500,000 CAD in equity financing
from year to date of January 1, 2020; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The company revenue hitting a minimum of $500,000 CAD year to
date of January 1, 2020.

We appreciate your continuing contribution to the success of The Sky Guys.

Warm Regards,

---

| |
|:---|
| /s/ Stuart Henderson |
| Stuart Henderson, Director |

---

cc: HR file

## Exhibit 10.11

**Exhibit 10.11**

**EMPLOYMENT AGREEMENT**

EMPLOYMENT AGREEMENT (this "**Agreement**"), dated as of February 6, 2023, between Droneify Holdings Limited, a Cayman Islands exempted company (the "**Company**"), and Scott J. Silverman, an individual (the "**Employee**").

**BACKGROUND**

The Company plans to file a registration statement on Form F-1 with the Securities and Exchange Commission (the "**SEC**") relating to an initial public offering of its securities (as amended, the "**Registration Statement**").

The Company wishes to secure the services of the Employee as Chief Financial Officer of the Company upon the terms and conditions hereinafter set forth, and the Employee wishes to render such services to the Company, effective as of the date that the Registration Statement is declared effective by the SEC (the "**Effective Date**"), upon the terms and conditions hereinafter set forth.

**AGREEMENT**

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Employment by the Company</u>. The Company agrees to employ the Employee in the position of Chief Financial Officer of the Company effective and have such duties and responsibilities as are reasonably assigned, delegated and determined as are customarily assigned to individuals serving in such position and such other duties consistent with Employee's title (with such other duties and/or offices in the Company and its affiliates as may be assigned from time to time by the Company, its Board of Directors, or Chief Executive Officer and as agreed to by Employee) and the Employee accepts such employment and agrees to perform such duties. The Employee agrees to devote his full customary business time and energies to the business of the Company and/or its affiliates to perform his duties hereunder. Notwithstanding the foregoing, and pursuant to Section 6 below, the Employee shall not be prohibited from pursuing outside business opportunities, including, but not limited to directorships, working as an employee, consultant, contractor, or in any other capacity for another business or organization, or be an individual proprietor, partner, member, stockholder, officer, director, joint venturer, investor, lender, or owner of or to any other business, company or organization ("**Outside Activities**") insofar as such Outside Activities do not interfere with Employee's ability to be a full-time employee of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Term of Employment</u>. The term (the "**Term**") of this Agreement shall commence on the Effective Date and continue until this Agreement, and thus the Employee's employment, is terminated by either the Company or the Employee. The Employee is employed "at-will" which means that the Employee's employment with the Company may be terminated by either the Employee or the Company at any time, with or without cause, for any or no reason, subject to the notice provisions in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Compensation</u>. As full compensation for all services to be rendered by the Employee to the Company and/or its affiliates in all capacities during the Term, the Employee shall receive the following compensation and benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Salary</u>. The Company shall pay to the Employee a base salary for all services to be rendered by the Employee under this Agreement at the rate of $150,000 per year (the "**Base Salary**"), which Base Salary shall be paid in approximately equal installments (less applicable payroll deductions and taxes) in accordance with the Company's normal payroll schedule, procedures and policies (which schedules, procedures and policies may be modified from time to time in the Company's sole discretion), but not less frequently than monthly. The Company shall have no obligation to pay the Employee's Base Salary following the date of the termination of this Agreement whether by the Company, the Employee, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Bonus</u>. In addition to the Base Salary, the Employee may be eligible to be considered for an annual bonus based upon the performance of the Employee and of the Company. The eligibility criteria to be a considered for annual bonus, whether to award the Employee any such bonus, the amount of any such bonus, and when any such bonus is paid are in the Company's absolute discretion. The Employee must be actively employed at the time of payment to receive an annual bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Participation in Employee Benefit Plans; Other Benefits</u>. During the Term, the Employee shall be entitled to participate in such medical, life, disability, and other benefits plans as are generally afforded to other Company employees at a similar level and to participate in all other Company-wide employee benefits plans as may be made available generally to Company employees from time to time, subject to the Employee satisfying waiting periods, eligibility criteria, and other terms and conditions, if any, that may be applicable to each such benefit plan. The Employee may be also eligible to be considered from time to time for an award under the Company's Equity Incentive Plan (the "**Plan**"), in the Company's sole discretion. The eligibility criteria for an award under the Plan and whether the Employee is provided with an award under the Plan are in the Company's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Expenses</u>. The Company shall pay or reimburse the Employee for all reasonable and necessary expenses actually incurred or paid by the Employee during the Term in the performance of the Employee's duties under this Agreement, upon submission and approval of expense statements, vouchers or other supporting information in accordance with the then customary practices of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Vacation and Sick Leave</u>. The Employee shall be entitled to receive unlimited paid time off per calendar year. The Employee's vacation and sick leave, how it is accrued, and how the Employee may use it may be subject to employment and other policies the Company may adopt and/or change from time to time in its sole discretion and with or without notice to the Employee. Unless required by applicable state or local law, the Employee is not be entitled to receive compensation for accrued but used paid sick leave or paid vacation leave upon separation from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Withholding of Taxes</u>. The Company may withhold from any Base Salary, bonuses, benefits, or other compensation payable under this Agreement all federal, state, city and other taxes as shall be required pursuant to any law or governmental regulation or ruling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Termination upon Death</u>. If the Employee dies during the Term, this Agreement and the Employee's employment with the Company shall terminate as of the date of his death and, except as provided in Section 5(b) hereof, the Employee's estate shall have no right to receive any compensation hereunder (including, without limitation, Base Salary, bonus, or benefit) on and after the date of death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination by Employee other than for Death</u>. The Employee may terminate this Agreement, and thus his employment with the Company, for any reason or no reason at any time during the Term upon 30 days' written notice by the Employee to the Company and, except as provided in Section 5(b) hereof, the Employee shall have no right to receive any compensation hereunder (including, without limitation, Base Salary, bonus, or benefit) on and after the date of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination for Cause</u>. During the Term, the Company may at any time by written notice to the Employee terminate this Agreement, and thus the Employee's employment, immediately if an event of Cause (as defined below) occurs, and, except as provided in Section 5(b) hereof, the Employee shall have no right to receive any compensation hereunder (including, without limitation, Base Salary, bonus, or benefit) on and after the date of such termination. For purposes of this Employment Agreement, "**Cause**" shall mean:

&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;(i) any willful breach by the Employee of any material term of this Agreement, if the Employee fails to reasonably cure such breach within 30 days after the receipt of written notice from the Company of such breach, which notice shall state in reasonable detail the facts and circumstances claimed to be a failure or willful breach and of the intent of the Company to terminate the Employee's employment upon the failure of the Employee to reasonably cure such failure or breach; or

&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;(ii) the Employee has committed an intentional act of fraud, misappropriation, embezzlement, or theft or a breach of fiduciary duty involving personal profit; or

&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;(iii) the Employee is indicted for any criminal offense constituting a felony or a crime involving moral turpitude; or

&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;(iv) the Employee intentionally breaches any of the provisions of Section 6 of this Agreement.

For purposes of this Agreement, an act, or a failure to act, shall not be deemed willful or intentional, as those terms are used herein, unless it is done, or admitted to be done, by the Employee in bad faith or without a reasonable belief that the Employee's action or omission was in the interest of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination without Cause</u>. The Company may terminate this Agreement, and thus the Employee's employment, for any reason or no reason at any time without Cause upon 30 days' written notice by the Company to the Employee and, except as provided in Section 5(b) hereof, the Employee shall have no right to receive any compensation hereunder (including, without limitation, Base Salary, bonus, or benefit) on and after the date of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Severance Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Certain Severance Payments</u>. If during the Term the Company terminates this Agreement pursuant to Section 4(d) hereof, all compensation payable to the Employee under Section 3 hereof shall cease as of the date of termination specified in the Company's notice (the "**Termination Date**"), and the Company shall pay to the Employee, subject to Section 6 hereof, an amount equal to the Base Salary for three (3) months, payable in a lump sum on the Termination Date, and all previously earned, accrued, and unpaid benefits from the Company and its employee benefit plans, including any such benefits under the Company's pension, disability, and life insurance plans, policies, and programs. Notwithstanding the foregoing, if the Employee has violated Section 6 hereof, then the Company shall have no obligation to make the foregoing payments. The payment of severance as required by this Section 5(a) may be conditioned by the Company on the delivery by the Employee of a release of any and all claims that the Employee may have against the Company which release shall be in form and substance satisfactory to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Other Severance Payments</u>. If this Agreement is terminated pursuant to Sections 4(a), 4(b) or 4(c) hereof, all compensation (including, without limitation, Base Salary) payable to the Employee under Section 3 hereof shall cease as of the date of termination specified in the notice of termination from the Company or the Employee, as the case may be, or, if the termination is due to the Employee's death, on the date of the Employee's death, and the Company shall pay to the Employee (or if the Employee has died, to his/her estate) all previously earned, accrued, and unpaid benefits from the Company and its employee benefit plans, including any such benefits under the Company's pension, disability, and life insurance plans, policies, and programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Certain Covenants of the Employee</u>. The Employee acknowledges that he is one of the limited number of persons who will assist with developing the Company's business, his work for the Company will bring the Employee into close contact with many confidential affairs not readily available to the public and the covenants contained in this Section 6 will not involve a substantial hardship upon the Employee's future livelihood. In order to induce the Company to enter into this Agreement, the Employee covenants and agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Confidential Information</u>. During the Term and for a period of three years thereafter (the "**Non-Disclosure/Non-Use Period**"), the Employee shall not, directly or indirectly: (i) disclose Confidential Information (defined below) to any entity that is not authorized by the Company or to receive such Confidential Information or (ii) use or appropriate Confidential Information for his own benefit or for the benefit of any entity other than the Company or its authorized subsidiary or affiliate, except as required in the course of the Employee's performance of his job duties with the Company under this Agreement or with the express written consent of the Company's Chief Executive Officer or its Board of Directors. The provisions of this Section 6(a) do not prohibit the Employee from disclosing Confidential Information as may be necessary to report unlawful sexual harassment or assault, unlawful discrimination, or unlawful activity at the Company or by the Company or any of its directors, officers, or employees (collectively, "**Unlawful Activity**"), provided that the Employee makes such disclosure solely to the appropriate federal, state or local government official or appropriate person within the Employee with responsibility for investigating or addressing reports of any such Unlawful Activity. As used in this Agreement, "**Confidential Information**" means all documents, files, papers or information relating to trade secrets of the Company or any Company subsidiary or affiliate and all confidential documents, files, papers, or information relating to the Company's business, including, without limitation, the customers, business relationships, accounts, pricing policies, customer lists, computer software and hardware, of the Company or any Company subsidiary or affiliate, any of the Company's, or Company affiliate or subsidiary's, business or operational methods, drawings, sketches, designs or product concepts, know-how, marketing plans or strategies, product development techniques or plans, business acquisition plans, financial or other performance data, personnel policies and other policies, whether generated by the Employee or by any other person, <u>provided, however</u>, that Confidential Information does not include information that the Employee can document: (A) is or becomes generally and freely publicly available through no fault of the Employee, (B) the Employee has otherwise rightfully obtained from a third-party who is not under any restriction to maintain its confidentiality, or (C) was lawfully known or obtained by the Employee prior to his/her receipt of it during the course of his/her employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Covenant Not to Compete</u>. During the Term and for a period of one year thereafter (the "**Restricted Period**"), the Employee shall not, directly or indirectly: (i) work, as an employee, consultant, contractor, or in any other capacity, for a Competitive Business (as defined below) in a position or role having a Restricted Duty (as defined below); (ii) be an individual proprietor, partner, member, stockholder, officer, director, joint venturer, investor, lender, or owner (other than a holder of not more than two percent of the combined voting power of the outstanding stock of a publicly held company) in or of a Competitive Business; or (iii) develop any property for use in the Company's Business on behalf of any entity other than the Company, its subsidiaries and affiliates. The term "**Competitive Business**" means any business engaged in the design, development and sale of drone-enabled solutions and technology and the term "**Restricted Duty**" means any sales, purchasing, operational management, marketing, competitive-planning, strategic-planning, or executive responsibility or duty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Covenant Not to Solicit</u>. During the Restricted Period, the Employee shall not directly or indirectly (other than in furtherance of the business of the Company): (i) initiate communications with, solicit, persuade, entice, induce or encourage any individual who is then or who has been within the preceding 12-month period, an employee, consultant, or contractor of, to, or with the Company or any of its affiliates or subsidiaries to terminate his/her/its employment or consulting or contractor relationship with the Company or any its subsidiaries or affiliates, as the case may be, or to become employed by or to enter into a consultant or contractor relationship with any entity, and the Employee shall not approach any such employee, contractor, or consultant for any such purpose or authorize or knowingly approve the taking of any such actions by any other person; or (ii) solicit customers or accounts of the Company that the Employee contacted, solicited, or served, or that the Employee knew had been contacted, solicited, or served by the Company, at any time in the preceding twelve month period of the Employee's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Rights and Remedies Upon Breach</u>. If the Employee breaches any of the provisions of Section 6 hereof (collectively, the "**Restrictive Covenants**"), the Company and its affiliates shall, in addition to the rights set forth in Section 6 hereof, have the right and remedy to seek from any court of competent jurisdiction specific performance of the Restrictive Covenants or injunctive relief against any act which would violate any of the Restrictive Covenants, it being acknowledged and agreed that any such breach may cause irreparable injury to the Company and its affiliates and that money damages will not provide an adequate remedy to the Company and its affiliates. The right to obtain such specific performance or injunction in addition to, and without prejudice to, any other rights or remedies available to the Company, its subsidiaries, and affiliates under this Employment Agreement, at law, or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Severability of Covenants</u>. If any of the Restrictive Covenants, or any part thereof, is held by a court of competent jurisdiction or any foreign, federal, state, county or local government or other governmental, regulatory or administrative agency or authority to be invalid, void, unenforceable or against public policy for any reason, the remainder of the Restrictive Covenants shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and such court, government, agency or authority shall be empowered to substitute, to the extent enforceable, provisions similar thereto or other provisions so as to provide to the Company and its affiliates, to the fullest extent permitted by applicable law, the benefits intended by such provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Other Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices</u>. Any notice or other communication required or which may be given hereunder shall be in writing and shall be delivered personally, telecopied, telegraphed or telexed, or sent by certified, registered or express mail, postage prepaid, or emailed to the Parties at the addresses specified on the signature page hereto, or at such other addresses as shall be specified by the parties by like notice, and shall be deemed given so long as such provides a receipt of delivery, when so delivered personally, telecopied, telegraphed or telexed, mailed, or emailed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Entire Agreement</u>. This Agreement represents the complete understanding between the Employee and the Company concerning the subject matter of this Agreement, and no other promises or agreements concerning the subject matter of this Agreement shall be binding unless reduced to writing and signed by the Employee and the Company. The Employee and the Company agree that this Agreement supersedes any prior agreements or understandings of the parties, whether oral or written, concerning the subject matter of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Waivers and Amendments</u>. This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by the parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder, nor any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Governing Law</u>.

&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;(i) This Agreement shall be governed by and construed under the laws of the State of Florida without regard to the choice of law principles thereof. The parties hereby agree that all questions concerning the construction, validity and interpretation of this Agreement, and any disputes arising thereunder shall be governed by the laws of the State of Florida without giving effect to any choice of law or conflict of law provision or rule, notwithstanding that public policy in any other forum or jurisdiction might indicate that the laws of that or any other jurisdiction should otherwise apply based on contacts within such state or otherwise. Each Party irrevocably submits to the exclusive jurisdiction (including both subject matter jurisdiction and personal jurisdiction over each of the parties) and the venue of the state and federal courts whose jurisdictional territory includes Miami-Dade County, Florida for the purpose of any suit, action, proceeding, or judgment relating to or arising out of this Agreement or the Employee's employment with the Company. Each of the parties hereto waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of any other party with respect thereto. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH PARTY IRREVOCABLY WAIVES ITS RIGHT TO HAVE A TRIAL BY JURY FOR ANY PROCEEDING SO BROUGHT. Each of the parties agrees that a final, non-appealable judgment in any such suit, action or proceeding brought in such a court shall be conclusive and binding on such party and may be enforced in any court to the jurisdiction of which such party is subject by a suit upon such judgment.

&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;(ii) As a condition precedent to a party's ability to commence a lawsuit against the other party relating to or arising out of this Agreement or Employee's employment with the Company, the party that wishes to commence such lawsuit shall first give written notice to the other party of the dispute arising out of or related to this Agreement or Employee's employment with the Company, and, no later than twenty-one (21) days after such notice is delivered, a representative of each party with authority to settle that dispute for each party shall confer in good faith in an effort to resolve that dispute. The notice of such dispute for each party shall include a reasonable description of the basis therefor. Only after the parties have conferred, or made a good faith effort to confer, in accordance with this Section 7(d)(ii) may a party commence a lawsuit pertaining to the dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Binding Effect; Benefit</u>. This Agreement shall inure to the benefit of and be binding upon the parties hereto and any successors and assigns permitted or required by Section 7(f) hereof. Nothing in this Agreement, expressed or implied, is intended to confer on any person other than the parties hereto or such successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Assignment</u>. This Agreement, and the Employee's rights and obligations hereunder, may not be assigned by the Employee. The Company may assign this Agreement and its rights, together with its obligations, hereunder in connection with any sale, transfer or other disposition of all or substantially all of its assets or business, whether by merger, consolidation or otherwise.

&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) <u>Interpretation</u>. Should any provision of this Agreement require interpretation or construction, it is agreed by the Employee and the Company that the person interpreting or construing this Agreement shall not apply a presumption against one party by reason of the rule of construction that a document is to be construed more strictly against the party who prepared the document. The headings and sub-headings in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Survival</u>. Sections 5,6 and 7 of this Agreement shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. This Agreement may be executed manually or by facsimile, scan, or other electronic means (*e.g.*, DocuSign).

[Signature page follows]

IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date first above written.

---

| | |
|:---|:---|
| COMPANY: | COMPANY: |
| Droneify Holdings Limited | Droneify Holdings Limited |
| By: | /s/ Adam Sax |
| Name: | Adam Sax |
| Title: | Chief Executive Officer |

---

Address: <u>103-482 South Service Road East</u> <br> <u>Oakville, ON L6J 2X6</u> <br> <u>Canada</u>

---

| | |
|:---|:---|
| EMPLOYEE: | EMPLOYEE: |
| /s/ Scott J. Silverman | /s/ Scott J. Silverman |
| Scott J. Silverman | Scott J. Silverman |
| Address: | 14075 SW 83<sup>rd</sup> Ct |
|  | Palmetto Bay, FL 33158 |
|  | USA |

---

## Exhibit 10.12

**Exhibit 10.12**

**6)**

EverAsia

**CFO CONSULTING AGREEMENT**

THIS CONSULTING AGREEMENT made and entered into this <u>Aug 11, 2022</u> ("Effective Date" herein), by and between Ever Asia Financial Group, Inc. a Corporation formed under the laws of the State of Florida, USA ("Consultant" herein) and Droneify Ltd., a Corporation formed under the laws of the Province of Ontario, Canada ("Client'' herein). Consultant and Client shall, at times, be referred to collectively as the "Parties".

**WHEREAS,** Consultant is in the business of providing fractional CFO services, business creations, financing, combinations, strategic and financial planning, mergers and acquisitions, going public, growth and development, securities regulation and compliance (the "Services") AND;

**WHEREAS,** Client desires to engage Consultant to provide the Services with respect to the business activities of Client, AND;

**WHEREAS,** Client and Consultant desire that the terms and conditions of such engagement, by and between the parties, be set forth in writing

**NOW THEREFORE,** in consideration of the mutual covenants, agreements, and terms and conditions set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. <u>DUTIES AND OBLIGATIONS OF CONSULTANT</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Consultant shall be engaged as the "Chief Financial
Officer" of the Client during the term of this agreement and shall provide the Services that are customary of the position and generally
described in Appendix A of this document. Further, Consultant's President and CEO, Scott J. Silverman ("Silverman"), shall act as an authorizing signatory on periodic filings with the SEC as required by the Securities
Act of 1933, the Securities Exchange Act of 1934 and the Sarbanes-Oxley Act of 2002, as amended, and other documents, as shall be required
from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. <u>DUTIES AND OBLIGATIONS OF CLIENT</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Client agrees to promptly and timely provide any and all documentation requested
by Consultant to perform the obligations as set forth herein

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Client agrees to cause its officers, directors and/or employees to attend all meetings,
given reasonable and sufficient prior notice of time, place, and agenda, which may be scheduled by Consultant for the purpose of furthering
the business of Client and carrying out Consultant's duties as defined herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Client agrees to promptly and timely transfer and convey any and all compensation
to Consultant as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. During the term under this Agreement, the Client shall include Consultant as an
insured under its officers and directors insurance policy with a Side A coverage

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ill.**  **<u>TERM:</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  **<u>Initial Term</u>** : Consultant shall provide services hereunder for a period ofone

&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;(1) year from the Effective Date (the "Initial Term").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.  **<u>Renewal Terms:</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. This Agreement shall automatically renew for three (3) month Renewal Term ("Renewal
Terms") after the Initial Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Client shall notify Consultant in writing no less than thirty (30) days prior to
the completion of the then-existing term of its intent to not renew ("Non-Renewal") at the end of the term. Notice of Non- Renewal
received at any other time will be considered ineffective and the Agreement will be considered automatically renewed upon completion of
the then-existing term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Client or Consultant shall have the right to terminate any Renewal Term with thirty
(30) days' prior written notice to the other party ("Early Termination").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. In the event of non-payment, Consultant shall have the right to terminate the Agreement
upon ten (10) days' notice, which shall be considered a Termination Without Cause by Client pursuant to Section IV below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. The date upon which this Agreement expires or is otherwise terminated is the "Termination
Date".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV.**  **<u>TERMINATION WITHOUT CAUSE:</u>** In the event
 of Client's Termination, Early Termination or Non-Renewal of this Agreement Without Cause,
 Client shall not be entitled to any refund of prepaid fees and shall immediately pay to Consultant
 any and all Consulting Fees and Unpaid Expenses due and payable hereunder through the last
 day of the month in which the Termination Date falls PLUS an Early Termination Fee ("ETF")
 equal to three (3) months of Consulting fees. Notwithstanding the foregoing, Client shall
 have the right to terminate this Agreement within the first thirty (30) days of the Effective
 Date of the Initial Term without incurring an ETF.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V.**  **<u>TERMINATION FOR CAUSE:</u>** In the event Client unilaterally terminates
Agreement prior to maturity for cause, Client shall not be entitled to any refund of prepaid fees, and shall immediately pay to Consultant
all Consulting Fees and Unpaid Expenses due and payable through the date of termination. "Cause" shall mean (i) the commission
of a material act of fraud, embezzlement or misappropriation, which is intended to result in substantial personal enrichment of Consultant
in connection with Consultant engagement with the Company; (ii) Consultant's willful misconduct, gross negligence, act of dishonesty or
breach of trust in connection with Consultant's engagement; (iii) Consultant's indictment for or charge with (and in connection with which
there is the commencement of a criminal trial), or plea of nolo contendere, to a crime constituting a felony (other than traffic-related
offenses) or any other criminal offense involving fraud, dishonesty, misappropriation or serious moral turpitude; (iv) Consultant's breach
of any non-solicitation or non-competition obligations to the Company or its affiliates, including without limitation, those set forth
herein or Consultant's willful, grossly negligent, or reckless breach of any
confidentiality obligations to the Company or its affiliates; or (v) Consultant's (1) material failure to perform Consultant's
duties as set forth in this Agreement, and (2) failure to "cure" any such failure within thirty (30) days after receipt of
written notice from the Company delineating the specific acts that constituted such material failure and the specific actions
necessary, if any, to "cure" such failure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VI.**  **<u>FEES AND EXPENSE REIMBURSEMENT</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Client shall compensate Consultant, or assigns, $12,500 per month ("Monthly
Fees") for the Initial Term and any Renewal Terms. Until such time that Client secures $800,000 in the aggregate from one or more
sources, Consultant agrees to accrue the Monthly Fees due hereunder ("Accrued Fees") in the following manner:

&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;1. For the first sixty (60) days after the Effective Date ("Equity Period"},
Consultant shall be compensated a total of $30,000 worth of the most senior equity being offered at the time valued at a 75% discount
to the offering price ("Pre-lPO Price")

2. &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;3. Upon expiration of the Equity Period, in the event that Client has not raised a
minimum of $800,000 in the aggregate from one or more sources, Client shall pay to Consultant a minimum of $5,000 per month and Consultant
shall accrue the balance of the Monthly Fees ("Accrued Fees") due hereunder until such time that Client raises $800,000 in the
aggregate.

&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;4. Upon the receipt of a minimum of $800,000 in the aggregate from one or more sources,
Client shall pay to Consultant the full amount of the Monthly Fees on the schedule set forth herein and any Accrued Fees due hereunder.
Notwithstanding the foregoing, Consultant may, in Consultant's sole discretion, accept payment of any, all or none of the Accrued Fees
in the most senior equity being offered at the Pre-lPO Price or any other beneficial manner as the parties may mutually agree.

&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;5. In the event that Client fails to secure $800,000 in funding from one or more sources
within 90 days of the Effective Date, Consultant may, in Consultant's sole discretion, terminate this Agreement due to non-payment pursuant
to the terms herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. All expenses shall be pre-approved in writing by the Client. Consultant shall be
entitled to reimbursement of all reasonable expenses, paid on behalf of the Client within 15 days of submission; provided that appropriate
receipts are provided to Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Consultant shall be entitled to advanced reimbursement of all travel expenses in
accordance with the following guidelines:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Client shall reimburse Consultant for all reasonable travel costs, including, but
not limited to, business class air travel on all flights 3 hours or longer, economy class air travel on all flights under 3 hours, hotel,
parking, gas and mileage, car rental, airport transfers and meals for Consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. All other related travel costs pertaining to Consultant's performance of Consultant's duties pursuant
to this Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Consultant shall invoice Client on the first day of the month for services in advance
for that month. All payments due hereunder shall be due and payable by the 10 <sup>th</sup> day of the month. Failure to make any payment when due shall constitute a Termination Without Cause by Client, pursuant to Section IV
above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VII.**  **<u>CONFIDENTIAL INFORMATION</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Consultant shall not, during the term of this Agreement, and at any time following
termination of this Agreement, directly or indirectly, disclose or permit to be known, to any person, firm or corporation, any confidential
information acquired by him or her during the course of or as an incident to his or her performance of services hereunder, relating to
the Client or any of its subsidiaries or affiliates, the officers of the Client or its subsidiaries or affiliates, any client of the Client
or any of its subsidiaries, or any corporation, partnership or other entity owned or controlled, directly or indirectly, by any of the
foregoing, or in which any of the foregoing has a beneficial interest, including, but not limited to, the business affairs of each of
the foregoing. Such confidential information shall include, but shall not be limited to, proprietary information, trade secrets, know-how,
market studies and forecasts, competitive analyses, the substance of agreements with clients and others, client lists and any other documents
embodying such confidential information as well as information developed by Consultant in the course of his or her services for the Client
or for the benefit of the Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. All information and documents relating to the Client, its affiliates as hereinabove
described (or other business affairs) shall be the exclusive property of the Client, and Consultant shall use his best efforts to prevent
any publication or disclosure thereof, without the consent of the Client. Upon termination of Consultant's engagement with the Client,
all documents, records, reports, writings and other similar documents containing confidential information, including copies thereof, then
in Consultant's possession or control shall be returned and left with the Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Any inventions, discoveries, concepts or ideas, or expressions thereof, whether
or not subject to patents, copyrights, trademarks or service mark protections, and whether or not reduced to practice, conceived or developed
by Consultant while retained by the Client which relate to or result from the actual or anticipated business, work, research or investigation
of the Client or any business transactions entered into by Consultant or his affiliates, including joint ventures, partnerships, plans,
strategies, contracts and arrangements related to any of the foregoing shall be the sole and exclusive property of the Client. Consultant
will do all things reasonably requested by the Client to assign to and vest in the Client the entire right, title and interest to any
such inventions, discoveries, concepts, ideas or expressions thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The Consultant hereby covenants and agrees that during the Initial Term and any
Renewal Term and for a period of one year following the termination date of this Agreement, the Consultant will not, without the prior
written consent of the Client, such consent which shall not be unreasonably
withheld, directly or indirectly, on Consultant's own behalf or in the service or on behalf of others, whether or not for
compensation, engage in any business activity, or have any interest in any person, firm, corporation or business, through a
subsidiary or parent entity or other entity (whether as a shareholder, agent, joint venturer, security holder, trustee, partner,
executive, creditor lending credit or money for the purpose of establishing or operating any such business, partner or otherwise)
with any Competing Business in the Covered Area. For the purpose of this Section VII (d.) "Competing Business" means the
current business of the Company and (ii) "Covered Area" means all geographical areas of the United States and other
foreign jurisdictions where Company then has offices and/or sells its products directly or indirectly through distributors and/or
other sales agents. Notwithstanding the foregoing, the Consultant may own shares of companies whose securities are publicly traded,
so long as ownership of such securities do not constitute more than three percent (3%) of the outstanding securities of any such
company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Consultant further agrees that during the Initial Term and any Renewal Term and
for a period of one (1) year from the termination date of this Agreement, the Consultant will not divert any business of the Client and/or
its affiliates or any customers or suppliers of the Client and/or the Client's and/or its affiliates' business to any other person, entity
or competitor, or induce or attempt to induce, directly or indirectly, any person to leave his or her employment with the Client and/or
its affiliates; provided, however, that the foregoing provisions shall not apply to a general advertisement or solicitation program that
is not specifically targeted at such employees

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VIII.**  **<u>INDEMNIFICATION</u>:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Notwithstanding any other term of this Agreement, Client agrees to indemnify and
hold harmless Consultant, its officers and directors, and each person, if any, who controls Consultant within the meaning of either Section
15 of the Securities Act of 1933 or Section 20 of the Securities Exchange Act of 1934, and any agents or employees of Consultant (the
"lndemnitees"), from and against any claim, liability, cost, damage, deficiency, loss, expense or obligation of any kind or
nature (including without limitation reasonable attorneys' fees and other costs and expenses of litigation) incurred by or imposed upon
the lndemnitees or any one of them in connection with any claims, suits, actions, demands or judgments arising out of this Agreement (including,
but not limited to, actions in the form of tort, warranty, or strict liability), unless such claims arise from the sole gross negligence
or sole willful misconduct of Consultant in connection with Consultant's work hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Notwithstanding any provision to the contrary, nothing in
this Agreement limits or excludes either party's liability to the extent it relates to: death or personal injury caused by its
negligence; fraud; fraudulent misrepresentation; or any other liability which may not be lawfully limited or excluded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Neither party shall be liable for consequential, special,
incidental or indirect losses including, without limitation, (i) loss of profits, revenue or goodwill; (ii) loss of business or (iii)
loss of anticipated savings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Each party agrees to use all reasonable endeavors to mitigate
any losses which it may suffer under or in connection with this Agreement (including in relation to any losses covered by an indemnity)
and any amounts it seeks from the other party in respect of any such liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IX.**  **<u>AMENDMENT AND MODIFICATION:</u>** Subject to
 applicable law, this Agreement may be amended, modified or supplemented only by a written
 agreement signed by both parties. No oral modifications to this Agreement may be made

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. <u>DISPUTE RESOLUTION</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In the event that Consultant shall be found in default with
respect to any obligation hereunder, then Client shall, after service of written notice of such default to Consultant, and after a period
of Twenty (20) days within which Consultant shall have the duty to cure such default, and Consultant fails to cure the default, Client
shall have the right to seek remedy as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. In the event of a dispute, the parties agree to first resolve
such matters through mediation. If the mediator cannot be agreed upon, each party will appoint one mediator and a third will be selected
by the other two who will mediate the issue(s). If the dispute is not settled after the mediation attempt, then the parties may bring
suit

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. In the event an arbitration, mediation, suit or action is
brought by any party under this Agreement to enforce any of its terms, or in any appeal there from, it is agreed that the prevailing
party shall be entitled to reasonable attorney's fees to be fixed by the arbitrator, mediator, trial court and/or appellate court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XI.**  **<u>SEVERABILITY:</u>** If any provision of this Agreement is held to be illegal,
invalid or unenforceable under present or future laws effective during the term hereof, such provision shall be fully severable and this
Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision never comprised a part hereof; and the
remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision
or by its severance here from. Furthermore, in lieu of such illegal, invalid and unenforceable provision, there shall be added automatically
as part of this Agreement a provision as similar in nature in its terms to such illegal, invalid or unenforceable provision as may be
legal, valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XII.**  **<u>Notices</u>.** For the purpose of this Agreement,
 notices and all other communications provided for in this Agreement shall be in writing and
 shall be deemed to have been duly given (1) on the date of delivery if delivered by hand,
 (2) on the date of transmission, if delivered by confirmed facsimile, (3) on the first business
 day following the date of deposit if delivered by guaranteed overnight delivery service,
 or (4) on the fourth business day following the date delivered or mailed by United States
 registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

---

| |
|:---|
| If to the Consultant: |
| EverAsia Financial Group, Inc. <br> 8950 SW 74<sup>th</sup> Ct |
| Ste 2201-A44 |
| Miami, FL 33156 |
| Facsimile:+ |
| Email: |
| If to the Client: |
| Droneify Ltd. |
| 103-482 South Service Road East <br> Oakville, ON L6J 2X6 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XIII.**  **<u>ENTIRE AGREEMENT:</u>** This Agreement contains
 the entire understanding between and among the parties and supersedes any prior understandings
 and agreements between them respecting the subject matter of this Agreement. The failure
 by either party to insist on strict performance of any term or condition contained in this
 Agreement shall not be construed by the other party as a waiver, at any time, of any rights,
 remedies or indemnifications, all of which shall remain in full force and effect from time
 of execution through eternity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XIV.**  **<u>GOVERNING LAW</u>:** This Agreement shall be
 governed by the laws of the State of Florida, and the venue for the resolution of any dispute
 arising thereof shall be in Miami-Dade County, Florida.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XV.**  **<u>ATTORNEY'S FEES</u>** : In the event an arbitration, mediation, suit or
action is brought by any party under this Agreement to enforce any of its terms, or in any appeal there from, it is agreed that the prevailing
party shall be entitled to reasonable attorney's fees to be fixed by the arbitrator, mediator, trial court and/or appellate court

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XVI.**  **<u>FORCE MAJEURE:</u>** Neither party shall be liable for the failure to perform
its obligations under this Agreement due to events beyond such party's reasonable control including, but not limited to, strikes, riots,
wars, fire, acts of God or acts in compliance with any applicable law, regulation or order (whether valid or invalid) of any court or governmental body.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XVII.**  **<u>BINDING EFFECT:</u>** This Agreement shall be binding upon the heirs, executors,
administrators, successors and permitted assigns of the parties hereto. Neither party shall assign its rights or delegate its duties under
any term or condition set forth in this Agreement without the prior written consent of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XVIII.**  **<u>COUNTERPARTS:</u>** This document may be executed in multiple counterparts,
each of which shall be deemed an original for all purposes.

IN WITNESS WHEREOF, the parties have set forth their hands in agreement on this the day and date first above written.

---

| | | | |
|:---|:---|:---|:---|
| Consultant | Consultant | Client | Client |
| By: | /s/ Scott J. Silverman | By: | /s/ Adam Sax |
|  | Scott J. Silverman |  | Adam Sax |
|  | Chief Executive Officer |  | CEO |

---

Appendix A - Scope of Work

Reporting directly to the CEO and the Board of Directors, Consultant shall be responsible for oversight of Financial Reporting,, Implementing Financial and Accounting Policies, Managing Finance and Accounting teams and acting as Strategic business partner to the senior executive leadership team.

Scope of work may include, but not be limited to, the oversight and/or direct completion of the following:

● Communicate, engage and interact with Board of Directors and Executive Leadership Team

● Assist with the creation and establishment yearly financial objectives that align with the company's plan for growth and expansion

● Recruit, interview, hire and manage finance, accounting and payroll staff as required

● Serve as a key member of executive leadership team

● Participate in pivotal decisions as they relate to strategic initiatives and operational models

● Interact with and bring department into line with Board of Directors' plans, initiatives and recommendations

● Implement policies, procedures and processes as deemed appropriate by senior leadership team

● Develop, improve and issue timely monthly financial records and reports for the CEO following GAAP principals

● Assist with managing cash flow planning process and ensure funds availability

● Oversee weekly cash management and AP Department, approve large payables, sign checks, authorize large wires and ACHs

● Oversee cash, investments and asset management area

● Maintain outstanding banking relationships and strategic alliances with vendors and business partners

● Supervise Accounts Receivable management and provide guidance relating to the collection process

● Safeguard assets and assure accurate and timely recording of all transactions by implementing disciplines of internal audits, controls and checks across all accounting related departments

● Prepare reports required by regulatory agencies

● Assist in preparation of company tax returns

● Review and ensure application of appro priate internal controls, SOX compliance and financial procedures

## Exhibit 10.13

**Exhibit 10.13**

**INDEPENDENT DIRECTOR AGREEMENT**

INDEPENDENT DIRECTOR AGREEMENT (this "**Agreement**"), dated _________, by and between **Droneify Holdings Limited**, an exempted company with limited liability incorporated under the laws of the Cayman Islands (the "**Company**"), and the undersigned (the "**Director**").

**RECITALS**

The Company desires to appoint the Director to serve on the Company's board of directors (the "**Board**"), which may include membership on one or more committees of the Board, and the Director desires to accept such appointment to serve on the Board, effective as of the Effective Date (as defined below).

**AGREEMENT**

NOW THEREFORE, in consideration of the mutual promises contained herein, the adequacy and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Company and the Director hereby agree as follows:

1. **<u>Duties</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General Duties</u>. The Company requires that the Director be available to perform the duties of an independent director customarily related to this function as may be determined and assigned by the Board and as may be required by the Company's constituent instruments, including its Amended and Restated Memorandum of Association, Articles of Association, and its corporate governance and board committee charters, each as amended or modified from time to time, and by applicable law, including the Companies Act (2022 Revision) of the Cayman Islands. The Director agrees to devote as much time as is necessary to perform completely the duties as a Director of the Company, including duties as a member of one or more committees of the Board, to which the Director may hereafter be appointed. The Director will perform such duties described herein in accordance with the general fiduciary duty of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Conflicts of Interest</u>. In the event that the Director has a direct or indirect financial or personal interest in a contract or transaction to which the Company is a party, or the Director is contemplating entering into a transaction that involves use of corporate assets or competition against the Company, the Director shall promptly disclose such potential conflict to the Board and proceed as directed by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Corporate Opportunities</u>. Whenever the Director becomes aware of a business opportunity, related to the Company's business, which one could reasonably expect the Director to make available to the Company, the Director shall promptly disclose such opportunity to the applicable Board committee and proceed as directed by such committee or the Board, as applicable.

2. **<u>Term</u>**. The term of this Agreement shall commence as of the effective date of the registration statement on Form F-1 relating to the Company's initial public offering (the "**Effective Date**") and shall continue until the Director's resignation or removal.

3. **<u>Compensation</u>**. For all services to be rendered by the Director in any capacity hereunder, the Company agrees to compensate the Director the annual fees and other compensation set forth on Exhibit A, which annual fees shall be paid to the Director monthly commencing in the first month following the Effective Date. Such compensation shall be subject to adjustment from time to time by the Board. The Director shall be responsible for his or her own individual income tax payment on such compensation in jurisdictions where the Director resides.

4. **<u>Independence</u>**. The Director acknowledges that his appointment hereunder is contingent upon the Board's determination that he is "independent" with respect to the Company, in accordance with the listing requirements of the Nasdaq and NYSE stock exchanges, and that his appointment may be terminated by the Company in the event that the Director does not maintain such independence standard.

5. **<u>Expenses</u>**. The Company shall reimburse the Director for pre-approved reasonable business related expenses incurred in good faith in connection with the performance of the Director's duties for the Company. Such reimbursement shall be made by the Company upon submission by the Director of a signed statement itemizing the expenses incurred, which shall be accompanied by sufficient documentation to support the expenditures.

6. **<u>Other Agreements</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Confidential Information and Insider Trading</u>. The Company and the Director each acknowledge that, in order for the intentions and purposes of this Agreement to be accomplished, the Director shall necessarily be obtaining access to certain confidential information concerning the Company and its affairs, including, but not limited to, business methods, information systems, financial data and strategic plans which are unique assets of the Company (as further defined below, the "**Confidential Information**") and that the communication of such Confidential Information to third parties could irreparably injure the Company and its business. Accordingly, the Director agrees that, during his association with the Company and thereafter, he will treat and safeguard as confidential and secret all Confidential Information received by him at any time and that, without the prior written consent of the Company, he will not disclose or reveal any of the Confidential Information to any third party whatsoever or use the same in any manner except in connection with the business of the Company and in any event in no way harmful to or competitive with the Company or its business. For purposes of this Agreement, "**Confidential Information**" includes any information not generally known to the public or recognized as confidential according to standard industry practice, any trade secrets, know-how, development, manufacturing, marketing and distribution plans and information, inventions, formulas, methods or processes, whether or not patented or patentable, pricing policies and records of the Company (and such other information normally understood to be confidential or otherwise designated as such in writing by the Company), all of which the Director expressly acknowledges and agrees shall be confidential and proprietary information belonging to the Company. Upon termination of his association with the Company, the Director shall return to the Company all documents and papers relating to the Company, including any Confidential Information, together with any copies thereof, or certify that he or she has destroyed all such documents and papers. Furthermore, the Director recognizes that the Company has received and in the future will receive confidential or proprietary information from third parties subject to a duty on the Company's part to maintain the confidentiality of such information and, in some cases, to use it only for certain limited purposes. The Director agrees that the Director owes the Company and such third parties, both during the term of the Director's association with the Company and thereafter, a duty to hold all such confidential or proprietary information in the strictest confidence and not to, except as is consistent with the Company's agreement with the third party, disclose it to any person or entity or use it for the benefit of anyone other than the Company or such third party, unless expressly authorized to act otherwise by an officer of the Company. In addition, the Director acknowledges and agrees that the Director may have access to "material non-public information" for purposes of the federal securities laws and that the Director will abide by all securities laws relating to the handling of and acting upon such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Disparaging Statements</u>. At all times during and after the period in which the Director is a member of the Board and at all times thereafter, the Director shall not either verbally, in writing, electronically or otherwise: (i) make any derogatory or disparaging statements about the Company, any of its affiliates, any of their respective officers, directors, shareholders, employees and agents, or any of the Company's current or past customers or employees, or (ii) make any public statement or perform or do any other act prejudicial or injurious to the reputation or goodwill of the Company or any of its affiliates or otherwise interfere with the business of the Company or any of its affiliates; provided, however, that nothing in this paragraph shall preclude the Director from complying with all obligations imposed by law or legal compulsion, and provided, further, however, that nothing in this paragraph shall be deemed applicable to any testimony given by the Director in any legal or administrative proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Enforcement</u>. The Director acknowledges and agrees that the covenants contained herein are reasonable, that valid consideration has been and will be received and that the agreements set forth herein are the result of arms-length negotiations between the parties hereto. The Director recognizes that the provisions of this Section 6 are vitally important to the continuing welfare of the Company and its affiliates and that any violation of this Section 6 could result in irreparable harm to the Company and its affiliates for which money damages would constitute a totally inadequate remedy. Accordingly, in the event of any such violation by the Director, the Company and its affiliates, in addition to any other remedies they may have, shall have the right to institute and maintain a proceeding to compel specific performance thereof or to obtain an injunction or other equitable relief restraining any action by the Director in violation of this Section 6 without posting any bond therefore or demonstrating actual damages, and the Director will not claim as a defense thereto that the Company has an adequate remedy at law or require the posting of a bond. If any of the restrictions or activities contained in this Section 6 shall for any reason be held by a court of competent jurisdiction to be excessively broad as to duration, geographical scope, activity or subject, such restrictions shall be construed so as thereafter to be limited or reduced to be enforceable to the extent compatible with the applicable law; it being understood that by the execution of this Agreement the parties hereto regard such restrictions as reasonable and compatible with their respective rights. The Director acknowledges that injunctive relief may be granted immediately upon the commencement of any such action without notice to the Director and in addition Company may recover monetary damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Separate Agreement</u>. The parties hereto further agree that the provisions of Section 6 are separate from and independent of the remainder of this Agreement and that Section 6 is specifically enforceable by the Company notwithstanding any claim made by the Director against the Company. The terms of this Section 6 shall survive termination of this Agreement.

7. **<u>Market Stand-Off Agreement</u>**. In the event of a public or private offering of the Company's securities and upon request of the Company, the underwriters or placement agents placing the offering of the Company's securities, the Director agrees not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company that the Director may own, other than those included in the registration, without the prior written consent of the Company or such underwriters, as the case may be, for such period of time from the effective date of such registration as may be requested by the Company or such placement agent or underwriter.

8. **<u>Termination</u>**. With or without cause, the Company and the Director may each terminate this Agreement at any time upon ten (10) days written notice, and the Company shall be obligated to pay to the Director the compensation and expenses due up to the date of the termination. Nothing contained herein or omitted herefrom shall prevent the shareholder(s) of the Company from removing the Director with immediate effect at any time for any reason.

9. **<u>Indemnification</u>**. The Company shall indemnify, defend and hold harmless the Director, to the full extent allowed by the law of the Cayman Islands, and as provided by, or granted pursuant to, the memorandum and articles of association of the Company, agreement (including, without limitation, the Indemnification Agreement executed herewith), vote of shareholders or disinterested directors or otherwise, both as to action in the Director's official capacity and as to action in another capacity while holding such office. The Company and the Director are executing an indemnification agreement in the Company's standard form.

10. **<u>Effect Of Waiver</u>**. The waiver by either party of the breach of any provision of this Agreement shall not operate as or be construed as a waiver of any subsequent breach thereof.

11. **<u>Notice</u>**. Any and all notices referred to herein shall be sufficient if furnished in writing at the addresses specified on the signature page hereto or, if to the Company, to the Company's address as specified in filings made by the Company with the U.S. Securities and Exchange Commission.

12. **<u>Governing Law</u>**. This Agreement shall be interpreted in accordance with, and the rights of the parties hereto shall be determined by, the laws of the Cayman Islands without reference to its conflicts of laws principles.

13. **<u>Assignment</u>**. The rights and benefits of the Company under this Agreement shall be transferable, and all the covenants and agreements hereunder shall inure to the benefit of, and be enforceable by or against, its successors and assigns. The duties and obligations of the Director under this Agreement are personal and therefore the Director may not assign any right or duty under this Agreement without the prior written consent of the Company.

14. **<u>Miscellaneous</u>**. If any provision of this Agreement shall be declared invalid or illegal, for any reason whatsoever, then, notwithstanding such invalidity or illegality, the remaining terms and provisions of the this Agreement shall remain in full force and effect in the same manner as if the invalid or illegal provision had not been contained herein. The article headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original but all of which taken together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, *e.g.*, www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. Except as provided elsewhere herein, this Agreement sets forth the entire agreement of the parties with respect to its subject matter and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party to this Agreement with respect to such subject matter.

[Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto have caused this Independent Director Agreement to be duly executed and signed as of the day and year first above written.

---

| |
|:---|
| **<u>COMPANY</u>**: |
| **Droneify Holdings Limited** |
| By: |
| Name: |
| Title: |
| **<u>DIRECTOR</u>:** |
| Address: |

---

**EXHIBIT A**

**<u>Compensation</u>**

<u>Annual Fees</u>

The Director shall be paid an annual fee of US$30,000.

Each committee chair shall receive an additional annual fee of US$10,000.

<u>Equity Compensation</u>

The Director shall receive an annual grant of US$40,000 of restricted shares or restricted share units at Fair Market value, which shall vest monthly over one year.

## Exhibit 10.14

**Exhibit 10.14**

**INDEMNIFICATION AGREEMENT**

INDEMNIFICATION AGREEMENT (this "**Agreement**"), dated _________, by and between **Droneify Holdings Limited**, an exempted company with limited liability incorporated under the laws of the Cayman Islands (the "**Company**"), and the undersigned (the "**Indemnitee**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Company desires to attract and retain the services of highly qualified individuals as directors, officers, employees and agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Company's Memorandum of Association and Articles of Association as currently in effect (the "**Articles**") permit the Company to indemnify its directors, officers, employees and agents, as authorized by the Companies Act (2022 Revision) of the Cayman Islands (the "**Companies Act**"), under which the Company is incorporated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Indemnitee may not regard the protection currently provided by applicable law, the Articles and available insurance, if any, as adequate under the present circumstances, and the Company has determined that the Indemnitee may not be willing to serve the Company without additional protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Company desires and has requested the Indemnitee to serve as a director and/or officer of the Company and has proffered this Agreement to the Indemnitee as an additional inducement to serve in such capacity.

**AGREEMENT**

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties hereto, intending to be legally bound, hereby agree as follows:

1. **<u>Definitions</u>**. As used in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Change in Control**" shall mean any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any "person" (as such term is used in Sections 13(d) and 14(d) of the United States Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (collectively, the "**Exchange Act**")), but excluding (1) the Company, (2) any trustee or other fiduciary holding securities pursuant to an employee benefit or welfare plan or employee share plan of the Company or any subsidiary or affiliate of the Company, or any entity organized, appointed, established or holding securities of the Company with voting power for or pursuant to the terms of any such plan and (3) any entity owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of shares of the Company, becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company's then outstanding securities without the prior approval of at least majority of the directors in office immediately prior to such person's attaining such interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors of the Company (the "**Board**") or other governing body of such surviving entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the approval by the shareholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company, in one transaction or a series of related transactions, of all or substantially all of the Company's assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item or any similar or successor schedule or form) promulgated under the Exchange Act whether or not the Company is then subject to such reporting requirements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) during any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described above whose election by the Board or nomination for election by the Company's shareholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, ceasing for any reason to constitute a least a majority of the members of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Disinterested Director**" with respect to any request by the Indemnitee for indemnification or advancement of expenses hereunder shall mean a director of the Company who neither is nor was a party to the Proceeding (as defined below) in respect of which indemnification or advancement is being sought by the Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Expenses**" shall mean shall mean, without limitation, expenses of Proceedings, including attorneys' fees, disbursement and retainers, accounting and witness fees, expenses related to preparation for service as a witness and to service as a witness, travel and deposition costs, expenses of investigations, judicial or administrative proceedings and appeals, amounts paid in settlement of a Proceeding by or on behalf of the Indemnitee, costs of attachment or similar bonds, any expenses of attempting to establish or establishing a right to indemnification or advancement of expenses, under this Agreement, the Articles, applicable law or otherwise, and reasonable compensation for time spent by the Indemnitee in connection with the investigation, defense or appeal of a Proceeding or action for indemnification for which the Indemnitee is not otherwise compensated by the Company or any third party. The term "Expenses" shall not include the amount of judgments, fines, interest or penalties, which are actually levied against or sustained by the Indemnitee to the extent sustained after final adjudication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Independent Legal Counsel**" shall mean any firm of attorneys that is not presently representing and has not in the preceding five (5) years represented the Company, the Company's subsidiaries or affiliates, the Indemnitee, any entity controlled by the Indemnitee, or any party adverse to the Company in any matter material to any such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements). Notwithstanding the foregoing, the term "Independent Legal Counsel" shall not include any person who, under applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or the Indemnitee in an action to determine the Indemnitee's right to indemnification or advancement of expenses under this Agreement, the Articles, applicable law or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Proceeding**" shall mean any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, or other proceeding (including, without limitation, an appeal therefrom), formal or informal, whether brought in the name of the Company or otherwise, whether of a civil, criminal, administrative or investigative nature, and whether by, in or involving a court or an administrative, other governmental or private entity or body (including, without limitation, an investigation by the Company or its Board), by reason of (i) the fact that the Indemnitee is or was a director or officer of the Company, or is or was serving at the request of the Company as an agent of another enterprise, whether or not the Indemnitee is serving in such capacity at the time any liability or expense is incurred for which indemnification or reimbursement is to be provided under this Agreement, (ii) any actual or alleged act or omission or neglect or breach of duty, including, without limitation, any actual or alleged error or misstatement or misleading statement, which the Indemnitee commits or suffers while acting in any such capacity, or (iii) the Indemnitee attempting to establish or establishing a right to indemnification or advancement of expenses pursuant to this Agreement, the Articles, applicable law or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The phrase "**serving at the request of the Company as an agent of another enterprise**" or any similar terminology shall mean, unless the context otherwise requires, serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, limited liability company, trust, employee benefit or welfare plan or other enterprise, foreign or domestic. The phrase "**serving at the request of the Company**" shall include, without limitation, any service as a director and/or executive officer of the Company which imposes duties on, or involves services by, such director and/or executive officer with respect to the Company or any of the Company's subsidiaries, affiliates, employee benefit or welfare plans, such plan's participants or beneficiaries or any other enterprise, foreign or domestic. In the event that the Indemnitee shall be a director, officer, employee or agent of another corporation, partnership, joint venture, limited liability company, trust, employee benefit or welfare plan or other enterprise, foreign or domestic, 50% or more of the ordinary shares, combined voting power or total equity interest of which is owned by the Company or any subsidiary or affiliate thereof, then it shall be presumed conclusively that the Indemnitee is so acting at the request of the Company.

2. **<u>Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Proceedings by or in the Right of the Company</u>. The Company shall indemnify the Indemnitee if the Indemnitee is a party to or threatened to be made a party to or is otherwise involved in any Proceeding by or in the right of the Company to procure a judgment in its favor by reason of the fact that the Indemnitee is or was a director or officer of the Company, or is or was serving at the request of the Company as an agent of another enterprise, against all Expenses, judgments, fines, interest or penalties, which are actually and reasonably incurred by the Indemnitee in connection with the defense or settlement of such a Proceeding, if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in, or not opposed to, the best interests of the Company; except that no indemnification under this section shall be made in respect of any claim, issue or matter as to which such person shall have been adjudicated by final judgment by a court of competent jurisdiction to be liable to the Company for willful misconduct in the performance of his/her duty to the Company, unless and only to the extent that the court in which such Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such amounts which such other court shall deem proper.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Proceedings Other Than Proceedings by or in the Right of the Company</u>. The Company shall indemnify the Indemnitee if the Indemnitee is a party to or threatened to be made a party to or is otherwise involved in any Proceeding (other than a Proceeding by or in the right of the Company) by reason of the fact that the Indemnitee is or was a director or officer of the Company, or is or was serving at the request of the Company as an agent of another enterprise, against all Expenses, judgments, fines, interest or penalties, which are actually and reasonably incurred by the Indemnitee in connection with such a Proceeding, to the fullest extent permitted by applicable law; <u>provided</u>, <u>however</u>, that any settlement of a Proceeding must be approved in advance in writing by the Company (which approval shall not be unreasonably withheld).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Indemnification for Costs, Charges and Expenses of Witness or Successful Party</u>. Notwithstanding any other provision of this Agreement, to the extent that the Indemnitee (i) has prepared to serve or has served as a witness in any Proceeding in any way relating to (A) the Company or the Company's subsidiaries, affiliates, employee benefit or welfare plans or such plan's participants or beneficiaries or (B) anything done or not done by the Indemnitee as a director or officer of the Company or in connection with serving at the request of the Company as an agent of another enterprise, or (ii) has been successful in defense of any Proceeding or in defense of any claim, issue or matter therein, on the merits or otherwise, including the dismissal of a Proceeding without prejudice or the settlement of a Proceeding without an admission of liability, the Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by the Indemnitee in connection therewith to the fullest extent permitted by applicable law. All such indemnification against Expenses shall be offset by the amount of cash, if any, received by the Indemnitee resulting from his/her success therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Partial Indemnification</u>. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for a portion of Expenses, but not for the total amount of Expenses, the Company shall indemnify the Indemnitee for the portion of such Expenses to which Indemnitee is entitled.

3. **<u>Advancement of Expenses</u>**. The Expenses incurred by the Indemnitee in any Proceeding shall be paid promptly by the Company in advance of the final disposition of the Proceeding at the written request of the Indemnitee, to the fullest extent permitted by applicable law; <u>provided</u>, <u>however</u>, that the Indemnitee shall set forth in such request reasonable evidence that such Expenses have been incurred by the Indemnitee in connection with such Proceeding and an undertaking in writing to repay any advances if it is ultimately determined as provided in Section 4(b) that the Indemnitee is not entitled to indemnification under this Agreement, the Articles, applicable law or otherwise.

4. **<u>Indemnification Procedure; Determination of Right to Indemnification</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Promptly after receipt by the Indemnitee of notice of the commencement of any Proceeding, the Indemnitee shall, if a claim for indemnification or advancement of Expenses in respect thereof is to be made against the Company under this Agreement, notify the Company of the commencement thereof in writing. The failure and delay to so notify the Company will not relieve the Company from any liability which the Company may have to the Indemnitee under this Agreement unless the Company shall have lost significant substantive or procedural rights with respect to the defense of any Proceeding as a result of such omission to so notify.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Indemnitee shall be conclusively presumed to be entitled to indemnification under this Agreement unless a determination is made that the Indemnitee is not entitled to indemnification under this Agreement, the Articles, applicable law or otherwise by one of the following two methods, which, if there has not been a Change in Control, shall be at the election of the Board: (i) by a majority vote of the Board of a quorum consisting of Disinterested Directors or (ii) if a quorum of the Board consisting of Disinterested Directors is not obtainable or, even if obtainable, said Disinterested Directors so direct, by Independent Legal Counsel in a written opinion to the Board, a copy of which shall be delivered to the Indemnitee. If a Change in Control shall have occurred and the Indemnitee so requests in writing, such determination shall be made only by Independent Legal Counsel in the manner set forth in this subsection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If (i) a determination is made that the Indemnitee is not entitled to indemnification under this Agreement or (ii) a claim for indemnification or advancement of Expenses under this Agreement is not paid by the Company within thirty (30) days after receipt by the Company of written notice thereof, the Indemnitee is entitled to an adjudication in any court of competent jurisdiction. Such judicial proceeding shall be made *de novo*. The burden of proving that indemnification or advances are not appropriate shall be on the Company. Neither the failure of the directors of the Company or Independent Legal Counsel to have made a determination prior to the commencement of such action that indemnification or advancement of Expenses is proper in the circumstances because the Indemnitee has met the applicable standard of conduct, if any, nor an actual determination by the directors of the Company or Independent Legal Counsel that the Indemnitee has not met the applicable standard of conduct shall be a defense to an action by the Indemnitee or create a presumption for the purpose of such an action that the Indemnitee has not met the applicable standard of conduct. The termination of any Proceeding by judgment, order, settlement or conviction, or upon a plea of *nolo contendere* or its equivalent, shall not, of itself (i) create a presumption that the Indemnitee did not act in good faith and in a manner which he reasonably believed to be in the best interests of the Company and/or its shareholders, and, with respect to any criminal Proceeding, that the Indemnitee had reasonable cause to believe that his conduct was unlawful or (ii) otherwise adversely affect the rights of the Indemnitee to indemnification or advancement of Expenses under this Agreement, except as may be provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If a court of competent jurisdiction shall determine that the Indemnitee is entitled to any indemnification or advancement of Expenses hereunder, the Company shall pay all Expenses actually and reasonably incurred by the Indemnitee in connection with such adjudication (including, but not limited to, any appellate proceedings).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) With respect to any Proceeding for which indemnification or advancement of Expenses is requested, the Company will be entitled to participate therein at its own expense and, except as otherwise provided below, to the extent that it may wish, the Company may assume the defense thereof, with counsel reasonably satisfactory to the Indemnitee. After notice from the Company to the Indemnitee of its election to assume the defense of a Proceeding, the Company will not be liable to the Indemnitee under this Agreement for any Expenses subsequently incurred by the Indemnitee in connection with the defense thereof, other than as provided below. The Company shall not settle any Proceeding in any manner which would impose any penalty or limitation on the Indemnitee without the Indemnitee's written consent. The Indemnitee shall have the right to employ his or her own counsel in any Proceeding, but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense of the Proceeding shall be at the expense of the Indemnitee, unless (i) the employment of counsel by the Indemnitee has been authorized by the Company, (ii) the Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee in the conduct of the defense of a Proceeding, or (iii) the Company shall not in fact have employed counsel to assume the defense of a proceeding, in each of which cases the fees and expenses of the Indemnitee's counsel shall be advanced by the Company. The Company shall not be entitled to assume the defense of any Proceeding brought by or on behalf of the Company or as to which the Indemnitee has reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee.

5. **<u>Limitations on Indemnification</u>**. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in connection with any claim made against the Indemnitee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in connection with any Proceeding initiated or brought voluntarily by the Indemnitee and not by way of defense, unless (i) the Board authorized the Proceeding prior to its initiation or (ii) the Proceeding is to enforce indemnification rights under this Agreement, the Articles, applicable law or otherwise and either (A) the Indemnitee is successful in such Proceeding in establishing the Indemnitee's right, in whole or in part, to indemnification or advancement of Expenses hereunder (in which case such indemnification or advancement shall be to the fullest extent permitted by this Agreement) or (B) the court in such Proceeding shall determine that, despite the Indemnitee's failure to establish his or her right to indemnification, the Indemnitee is entitled to indemnity for such expenses (in which case such indemnification or advancement shall be to the extent provided by such court);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in connection with the Indemnitee preparing to serve or serving, prior to a Change in Control, as a witness in voluntary cooperation with any non-governmental or non-regulatory party or entity who or which has threatened or commenced any action or proceeding against the Company, or any director, officer, employee, trustee, agent, representative, subsidiary, parent corporation or affiliate of the Company, but such indemnification may be provided by the Company if the Board finds it to be appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) for which payment has actually been made to the Indemnitee under a valid and collectible insurance policy, except in respect of any excess beyond the amount of payment under such insurance policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) for an accounting of profits made from the purchase or sale by the Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Exchange Act or similar provisions of any foreign or United States federal, state or local statute or regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) for which the Indemnitee is indemnified and actually paid other than pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) for conduct that is finally adjudged by a court of competent jurisdiction to have been caused by the Indemnitee's dishonesty, willful default or fraud, including, without limitation, breach of the duty of loyalty, unless and only to the extent that the court in which such Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, the Indemnitee is fairly and reasonably entitled to indemnity for such amounts which such court shall deem proper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if a court of competent jurisdiction finally determines that such indemnification is unlawful. In this respect, the Company and the Indemnitee have been advised that the Securities and Exchange Commission (the "**SEC**") takes the position that indemnification for liabilities arising under securities laws is against public policy and is, therefore, unenforceable and that claims for indemnification should be submitted to appropriate courts for adjudication;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) in connection with Indemnitee's personal tax matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) subject to the proviso in Section 5(a) hereof, in connection with any dispute or breach arising under any contract or similar obligation between the Company or any of its subsidiaries or affiliates and such Indemnitee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) in connection with any reimbursement made by Indemnitee to the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002, Section 306 of the Sarbanes-Oxley Act of 2002 or Section 954 of the Dodd–Frank Wall Street Reform and Consumer Protection Act and the rules promulgated by the SEC thereunder.

6. **<u>Insurance</u>**. To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person serves at the request of the Company, the Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any director, officer, employee, agent or fiduciary under such policy or policies. If, at the time of the receipt of a notice of a Proceeding pursuant to the terms hereof, the Company has directors' and officers' insurance in effect, the Company shall give prompt notice of the commencement of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.

7. **<u>No Employment Rights</u>**. Nothing in this Agreement is intended to create in the Indemnitee any right to continued employment with the Company.

8. **<u>Continuation of Indemnification</u>**. All agreements and obligations of the Company contained herein shall continue during the period that the Indemnitee is a director or an officer of the Company (or is or was serving at the request of the Company as an agent of another enterprise, foreign or domestic) and shall continue thereafter so long as the Indemnitee shall be subject to any Proceeding by reason of the fact that the Indemnitee is or was a director or an officer of the Company or is or was serving in any other capacity referred to in this Section 8.

9. **<u>Indemnification Not Exclusive</u>**. The indemnification provided by this Agreement shall not be deemed to be exclusive of any other rights to which the Indemnitee may be entitled under the Articles, any agreement, vote of shareholders or vote of Disinterested Directors, provisions of applicable law, or otherwise, both as to action or omission in the Indemnitee's official capacity and as to action or omission in another capacity on behalf of the Company while holding such office.

10. **<u>Contribution</u>**. To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (a) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving rise to such Proceeding; and/or (b) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s). The relative fault of the Company on the one hand and of the Indemnitee on the other hand shall be determined by reference to, among other things, the parties' relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses. The Company agrees that it would not be just and equitable if contribution pursuant to this Section 10 were determined by pro rata allocation or any other method of allocation which does not take account of the foregoing equitable considerations.

11. **<u>Entire Agreement</u>**. This Agreement and the documents referred to herein constitute the entire agreement between the parties hereto with respect to the matters covered hereby, and any other prior or contemporaneous oral or written understandings or agreements with respect to the matters covered hereby are superseded by this Agreement, provided that this Agreement is a supplement to and in furtherance of the Articles and applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

12. **<u>Amendment</u>**. This Agreement may not be modified or amended except by a written instrument executed by or on behalf of each of the parties hereto. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit, restrict or reduce any right of Indemnitee under this Agreement in respect of any act or omission, or any event occurring, prior to such amendment, alteration or repeal. To the extent that a change in applicable law, whether by statute or judicial decision limits rights with respect to indemnification, contribution or advancement of Expenses, it is the intent of the parties hereto that the rights with respect to indemnification, contribution or advancement of Expenses in effect prior to such change shall remain in full force and effect to the extent permitted by applicable law.

13. **<u>Waiver</u>**. The observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) by the party entitled to enforce such term only by a writing signed by the party against which such waiver is to be asserted. Unless otherwise expressly provided herein, no delay on the part of any party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party hereto of any right, power or privilege hereunder operate as a waiver of any other right, power or privilege hereunder nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.

14. **<u>Assignment; Successors and Assigns</u>**. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party thereto without the prior written consent of the other party, except that the Company may, without such consent, assign all such rights and obligations to a successor in interest to the Company which assumes all obligations of the Company under this Agreement in a written agreement in form and substance satisfactory to the Indemnitee. Notwithstanding the foregoing, this Agreement shall be binding upon and inure to the benefit of and be enforceable by and against the parties hereto and the Company's successors (including any direct or indirect successor by purchase, merger, consolidation, or otherwise to all or substantially all of the business and/or assets of the Company) and assigns, as well as the Indemnitee's spouses, heirs, and personal and legal representatives.

15. **<u>Notices</u>**. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the addresses specified on the signature page hereto, or to such other address as may have been furnished to the Company by Indemnitee, or, if to the Company, to the Company's address as specified in filings made by the Company with the SEC.

16. **<u>Subrogation</u>**. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company effectively to bring suit to enforce such rights.

17. **<u>Severability</u>**. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby. To the extent required, any section, sentence, term or provision of this Agreement may be modified by a court of competent jurisdiction to preserve its validity and to provide the Indemnitee with the broadest possible indemnification permitted under applicable law. The Company's inability, pursuant to a court order or decision, to perform its obligations under this Agreement shall not constitute a breach of this Agreement.

18. **<u>Governing Law</u>**. This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the Cayman Islands, without regard to its conflict of laws rules.

19. **<u>Headings</u>**. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

20. **<u>Counterparts</u>**. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, *e.g.*, www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

21. **<u>Use of Certain Terms</u>**. As used in this Agreement, the words "herein," "hereof," and "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular paragraph, subparagraph, section, subsection, or other subdivision. Whenever the context may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.

[Signature Page to Follow]

IN WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement on and as of the day and year first above written.

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| |
|:---|
| **<u>COMPANY</u>**: |
| **Droneify Holdings Limited** |
| By: |
| Name: |
| Title: |
| **<u>INDEMNITEE</u>:** |

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Address:

## Exhibit 10.15

**Exhibit 10.15**

**DRONEIFY HOLDINGS LIMITED**

**2022 EQUITY INCENTIVE PLAN**

1. <u>Purpose; Eligibility</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. <u>General Purpose</u>. The name of this plan is the Droneify Holdings Limited 2022 Equity Incentive Plan (the "**Plan**"). The purposes of the Plan are to (a) promote the long-term growth and profitability of Droneify Holdings Limited, an exempted company incorporated under the laws of the Cayman Islands (the "**Company**"), and any Affiliate to attract and retain the types of Employees, Consultants and Directors who will contribute to the Company's long-term success; (b) provide incentives that align the interests of Employees, Consultants and Directors with those of the shareholders of the Company; and (c) promote the success of the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. <u>Eligible Award Recipients</u>. The persons eligible to receive Awards are the Employees, Consultants and Directors of the Company and its Affiliates and such other individuals designated by the Committee who are reasonably expected to become Employees, Consultants and Directors after the receipt of Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. <u>Available Awards</u>. Awards that may be granted under the Plan include: (a) Incentive Share Options, (b) Non-qualified Share Options, (c) Share Appreciation Rights, (d) Restricted Awards, (e) Performance Share Awards and (f) Performance Compensation Awards.

2. <u>Definitions</u>.

"**Affiliate**" means a corporation or other entity that, directly or through one or more intermediaries, controls, is controlled by or is under common control with, the Company, including, without limitation, any corporation that is a "parent corporation" or a "subsidiary corporation" with respect to the Company within the meaning of Section 424(e) or (f) of the Code, and any other non-corporate entity that would be such a subsidiary corporation if such entity were a corporation.

"**Applicable Laws**" means (i) laws of Cayman Islands as they relate to the Company and its Ordinary Shares, (ii) the legal requirements relating to the Plan and the Awards under applicable provisions of the corporate, securities, tax and other laws, rules, regulations and government orders; and (iii) the rules of any applicable stock exchange of any jurisdiction applicable to Awards granted to residents therein.

"**Award**" means any right granted under the Plan, including an Incentive Share Option, a Non- qualified Share Option, a Share Appreciation Right, a Restricted Award, a Performance Share Award or a Performance Compensation Award.

"**Award Agreement**" means a written agreement, contract, certificate or other instrument or document evidencing the terms and conditions of an individual Award granted under the Plan which may, in the discretion of the Company, be transmitted electronically to any Participant. Each Award Agreement shall be subject to the terms and conditions of the Plan.

"**Beneficial Owner**" has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular "person" (as that term is used in Section 13(d)(3) of the Exchange Act), such "person" shall be deemed to have beneficial ownership of all securities that such "person" has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time. The terms "Beneficially Owns" and "Beneficially Owned" have a corresponding meaning.

"**Board**" means the Board of Directors of the Company, as constituted at any time.

"**Cause**" means:

With respect to any Employee or Consultant: (a) if the Employee or Consultant is a party to an employment or service agreement with the Company or its Affiliates and such agreement provides for a definition of Cause, the definition contained therein; or (b) if no such agreement exists, or if such agreement does not define Cause: (i) the commission of, or plea of guilty or no contest to, a felony or a crime involving moral turpitude or the commission of any other act involving willful malfeasance or material fiduciary breach with respect to the Company or an Affiliate; (ii) conduct that results in or is reasonably likely to result in harm to the reputation or business of the Company or any of its Affiliates; (iii) gross negligence or willful misconduct with respect to the Company or an Affiliate; or (iv) material violation of state or federal securities laws.

With respect to any Director, a determination by a majority of the disinterested Board members that the Director has engaged in any of the following: (a) malfeasance in office; (b) gross misconduct or neglect; (c) false or fraudulent misrepresentation inducing the director's appointment; (d) willful conversion of corporate funds; or (e) repeated failure to participate in Board meetings on a regular basis despite having received proper notice of the meetings in advance.

The Committee, in its absolute discretion, shall determine the effect of all matters and questions relating to whether a Participant has been discharged for Cause.

"**Change in Control**" means (a) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its subsidiaries, taken as a whole, to any Person that is not a subsidiary of the Company; (b) the Incumbent Directors cease for any reason to constitute at least a majority of the Board; (c) the date which is 10 business days prior to the consummation of a complete liquidation or dissolution of the Company; (d) the acquisition by any person of beneficial ownership of more than 50% (on a fully diluted basis) of the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors, taking into account as outstanding for this purpose Ordinary Shares issuable upon the exercise of options or warrants, the conversion of convertible share or debt, and the exercise of any similar right to acquire Ordinary Shares (the "**Outstanding Company Voting Securities**"); provided, however, that for purposes of this Plan, the following acquisitions shall not constitute a Change in Control: (A) any acquisition by the Company or any Affiliate, (B) any acquisition by any employee benefit plan sponsored or maintained by the Company or any subsidiary, (C) any acquisition which complies with clauses, (i), (ii) and (iii) of subsection (e) of this definition or (D) in respect of an Award held by a particular Participant, any acquisition by the Participant or any group of persons including the Participant (or any entity controlled by the Participant or any group of persons including the Participant); or (e) the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company that requires the approval of the Company's shareholders, whether for such transaction or the issuance of securities in the transaction (a "**Business Combination**"), unless immediately following such Business Combination: (i) more than 50% of the total voting power of (A) the entity resulting from such Business Combination (the "**Surviving Company**"), or (B) if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of sufficient voting securities eligible to elect a majority of the members of the board of directors (or the analogous governing body) of the Surviving Company (the "**Parent Company**"), is represented by the Outstanding Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which the Outstanding Company Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion as the voting power of the Outstanding Company Voting Securities among the holders thereof immediately prior to the Business Combination; (ii) no Person (other than any employee benefit plan sponsored or maintained by the Surviving Company or the Parent Company) is or becomes the Beneficial Owner, directly or indirectly, of 50% or more of the total voting power of the outstanding voting securities eligible to elect members of the board of directors of the Parent Company (or the analogous governing body) (or, if there is no Parent Company, the Surviving Company); and (iii) at least a majority of the members of the board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company, the Surviving Company) following the consummation of the Business Combination were Board members at the time of the Board's approval of the execution of the initial agreement providing for such Business Combination. The foregoing notwithstanding, if the Award constitutes non-qualified deferred compensation under Section 409A of the Code, in no event shall a Change in Control be deemed to have occurred unless such change shall satisfy the definition of a change in control under Section 409A of the Code.

"**Code**" means the Internal Revenue Code of 1986, as amended, and any successor thereto. References in this Plan to any section of the Code shall be deemed to include any regulations or other interpretative guidance under such section, and any amendments or successor provisions to such section, regulations or guidance.

"**Committee**" means the compensation committee of the Board, or if no such committee has been established, the full Board, or a committee of one or more members appointed to administer the Plan in accordance with ***Section 3.3*** and ***Section 3.4****.*

"**Consultant**" means any individual who is engaged by the Company or any Affiliate to render consulting or advisory services.

"**Continuous Service**" means that the Participant's service with the Company or an Affiliate, whether as an Employee, Consultant or Director, is not interrupted or terminated. The Participant's Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service, *provided that* there is no interruption or termination of the Participant's Continuous Service; *provided further that* if any Award is subject to Section 409A of the Code, this sentence shall only be given effect to the extent consistent with Section 409A of the Code. For example, a change in status from an Employee of the Company to a Director of an Affiliate will not constitute an interruption of Continuous Service unless otherwise required by Section 409A of the Code. The Committee or its delegate, in its sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal or family leave of absence.

"**Director**" means a member of the Board.

"**Disability**" means that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment; provided, however, for purposes of determining the term of an Incentive Share Option pursuant to ***Section 6.10*** hereof, the term Disability shall have the meaning ascribed to it under Section 22(e)(3) of the Code. The determination of whether an individual has a Disability shall be determined under procedures established by the Committee. Except in situations where the Committee is determining Disability for purposes of the term of an Incentive Share Option pursuant to ***Section 6.10*** hereof within the meaning of Section 22(e)(3) of the Code, the Committee may rely on any determination that a Participant is disabled for purposes of benefits under any long-term disability plan maintained by the Company or any Affiliate in which a Participant participates. The foregoing notwithstanding, if the Award is subject to Section 409A of the Code, in no event shall a Disability be deemed to have occurred unless such disability satisfies the requirements of Section 409A of the Code.

"**Effective Date**" shall mean December 30, 2022.

"**Employee**" means any person, including an Officer or Director, employed by the Company or an Affiliate; *provided, that,* for purposes of determining eligibility to receive Incentive Share Options, an Employee shall mean an employee of the Company or a parent or subsidiary corporation within the meaning of Section 424 of the Code. Mere service as a Director or payment of a director's fee by the Company or an Affiliate shall not be sufficient to constitute "employment" by the Company or an Affiliate.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended.

"**Fair Market Value**" means, as of any date, the value of the Ordinary Shares as determined below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Ordinary Shares are listed on any established stock exchange or a national market system, including without limitation, the Nasdaq Capital Market, its Fair Market Value will be the closing sales price for such Ordinary Share as quoted on such exchange or system, or if no sale occurred on such date, the last day preceding such date during which a sale occurred, as reported in *The Wall Street Journal* or another source the Committee deems reliable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Ordinary Shares are not listed on an established stock exchange but are quoted on a national market or other quotation system, its Fair Market Value will be the closing sales price for such Ordinary Shares on such date, or if no sales occurred on such date, then on the last date preceding such date during which a sale occurred, as reported in *The Wall Street Journal* or another source the Committee deems reliable; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the absence of an established market for the Ordinary Shares, the Fair Market Value shall be determined in good faith by the Committee and such determination shall be conclusive and binding on all persons; provided that if an Award is subject to Section 409A of the Code, then the Fair Market Value shall be determined in accordance with Section 409A of the Code.

"**Grant Date**" means the date on which the Committee adopts a resolution, or takes other appropriate action, expressly granting an Award to a Participant that specifies the key terms and conditions of the Award or, if a later date is set forth in such resolution, then such date as is set forth in such resolution.

"**Incentive Share Option**" means an Option that is designated by the Committee as an Incentive Share Option as described in Section 422 of the Code and otherwise meets the requirements set forth in this Plan.

"**Incumbent Directors**" means, for any period of 12 consecutive months, individuals who, at the beginning of such period, constitute the Board together with any new Director(s) (other than a Director designated by a person who shall have entered into an agreement with the Company to effect a transaction described in clause (a), (c), (d) or (e) of the Change in Control definition) whose election or nomination for election to the Board was approved by a vote of at least a majority (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for Director without objection to such nomination) of the Directors then still in office who either were Directors at the beginning of the 12-month period or whose election or nomination for election was previously so approved. No individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to Directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be an Incumbent Director.

"**Non-qualified Share Option**" means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Share Option.

"**Officer**" means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

"**Option**" means an Incentive Share Option or a Non-qualified Share Option granted pursuant to the Plan.

"**Optionholder**" means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.

"**Ordinary Shares**" means the Ordinary Shares, $0.0001 par value, of the Company (and any shares or other securities into which such Ordinary Shares may be converted or into which they may be exchanged).

"**Option Exercise Price**" means the price at which one Ordinary Share may be purchased upon the exercise of an Option.

"**Participant**" means an eligible person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Award.

"**Performance Compensation Award**" means any Award designated by the Committee as a Performance Compensation Award pursuant to ***Section 7.4*** of the Plan.

"**Performance Criteria**" means the criterion or criteria that the Committee shall select for purposes of establishing the Performance Goal(s) for a Performance Period with respect to any Performance Compensation Award under the Plan. The Performance Criteria that will be used to establish the Performance Goal(s) shall be based on the attainment of specific levels of performance of the Company (or Affiliate, division, business unit or operational unit of the Company) and may include the following: (a) net earnings or net income (before or after taxes); (b) basic or diluted earnings per share (before or after taxes); (c) net revenue or net revenue growth; (d) gross revenue; (e) gross profit or gross profit growth; (f) net operating profit (before or after taxes); (g) return on assets, capital, invested capital, equity, or sales; (h) cash flow (including, but not limited to, operating cash flow, free cash flow, and cash flow return on capital); (i) earnings before or after taxes, interest, depreciation and/or amortization; (j) gross or operating margins; (k) improvements in capital structure; (l) budget and expense management; (m) productivity ratios; (n) economic value added or other value added measurements; (o) share price (including, but not limited to, growth measures and total shareholder return); (p) expense targets; (q) margins; (r) operating efficiency; (s) working capital targets; (t) enterprise value; (u) safety record; (v) completion of acquisitions or business expansion; (w) achieving research and development goals and milestones; (x) achieving product commercialization goals; and (y) other criteria as may be set by the Committee from time to time.

Any one or more of the Performance Criteria may be used on an absolute or relative basis to measure the performance of the Company and/or an Affiliate as a whole or any division, business unit or operational unit of the Company and/or an Affiliate or any combination thereof, as the Committee may deem appropriate, or as compared to the performance of a group of comparable companies, or published or special index that the Committee, in its sole discretion, deems appropriate, or the Committee may select Performance Criterion (o) above as compared to various stock market indices. The Committee also has the authority to provide for accelerated vesting of any Award based on the achievement of Performance Goals pursuant to the Performance Criteria specified in this paragraph, provided that if the Award is subject to Section 409A of the Code, such accelerated vesting does not violate the rules of Code Section 409A. The Committee shall, within the first 90 days of a Performance Period (or, such longer or shorter time period as the Committee shall determine) define in an objective fashion the manner of calculating the Performance Criteria it selects to use for such Performance Period.

"**Performance Formula**" means, for a Performance Period, the one or more objective formulas applied against the relevant Performance Goal to determine, with regard to the Performance Compensation Award of a particular Participant, whether all, some portion but less than all, or none of the Performance Compensation Award has been earned for the Performance Period.

"**Performance Goals**" means, for a Performance Period, the one or more goals established by the Committee for the Performance Period based upon the Performance Criteria. The Committee is authorized at any time during the first 90 days of a Performance Period (or such longer or shorter time period as the Committee shall determine) or at any time thereafter, in its sole and absolute discretion, to adjust or modify the calculation of a Performance Goal for such Performance Period in order to prevent the dilution or enlargement of the rights of Participants based on the following events: (a) asset write-downs; (b) litigation or claim judgments or settlements; (c) the effect of changes in tax laws, accounting principles, or other laws or regulatory rules affecting reported results; (d) any reorganization and restructuring programs; (e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 (or any successor or pronouncement thereto) and/or in management's discussion and analysis of financial condition and results of operations appearing in the Company's annual report to shareholders for the applicable year; (f) acquisitions or divestitures; (g) any other specific unusual or nonrecurring events, or objectively determinable category thereof; (h) foreign exchange gains and losses; and (i) a change in the Company's fiscal year.

"**Performance Period**" means the one or more periods of time not less than one fiscal quarter in duration, as the Committee may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant's right to and the payment of a Performance Compensation Award.

"**Performance Share**" means the grant of a right to receive a number of actual Ordinary Shares or Ordinary Share units based upon the performance of the Company during a Performance Period, as determined by the Committee.

"**Permitted Transferee**" means: (a) a member of the Optionholder's immediate family (child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships), any person sharing the Optionholder's household (other than a tenant or employee), a trust in which these persons have more than 50% of the beneficial interest, a foundation in which these persons (or the Optionholder) control the management of assets, and any other entity in which these persons (or the Optionholder) own more than 50% of the voting interests; (b) third parties designated by the Committee in connection with a program established and approved by the Committee pursuant to which Participants may receive a cash payment or other consideration in consideration for the transfer of a Non- qualified Share Option; and (c) such other transferees as may be permitted by the Committee in its sole discretion.

"**Restricted Award**" means any Award granted pursuant to ***Section 7.2(a)***.

"**Rule 16b-3**" means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time.

"**Securities Act**" means the Securities Act of 1933, as amended.

"**Share Appreciation Right**" means the right pursuant to an Award granted under ***Section 7.1*** to receive, upon exercise, an amount payable in cash or Ordinary Shares equal to the number of Ordinary Shares subject to the Share Appreciation Right that is being exercised multiplied by the excess of (a) the Fair Market Value of Ordinary Shares on the date the Award is exercised, over (b) the exercise price specified in the Share Appreciation Right Award Agreement.

"**Ten Percent Shareholder**" means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) shares possessing more than 10% of the total combined voting power of all classes of shares of the Company or of any of its Affiliates.

3. <u>Administration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Authority of Committee</u>. The Plan shall be administered by the Committee or, in the Board's sole discretion, by the Board. Subject to the terms of the Plan and the provisions of Section 409A of the Code (if applicable), the Committee's charter and Applicable Laws, and in addition to other express powers and authorization conferred by the Plan, the Committee (or, failing whom, the Board) shall have the authority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to construe and interpret the Plan and apply its provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to promulgate, amend, and rescind rules and regulations relating to the administration of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to delegate its authority to one or more Officers of the Company with respect to Awards that do not involve "insiders" within the meaning of Section 16 of the Exchange Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) to determine when Awards are to be granted under the Plan and the applicable Grant Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) from time to time to select, subject to the limitations set forth in this Plan, those Participants to whom Awards shall be granted;

&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) to determine the number of Ordinary Shares to be made subject to each Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) to determine whether each Option is to be an Incentive Share Option or a Non-qualified Share Option;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to prescribe the terms and conditions of each Award, including, without limitation, the exercise price and medium of payment and vesting provisions, and to specify the provisions of the Award Agreement relating to such grant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) to determine the target number of Performance Shares to be granted pursuant to a Performance Share Award, the performance measures that will be used to establish the performance goals, the performance period(s) and the number of Performance Shares earned by a Participant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) to designate an Award (including a cash bonus) as a Performance Compensation Award and to select the Performance Criteria that will be used to establish the Performance Goals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) to amend any outstanding Awards, including for the purpose of modifying the time or manner of vesting, or the term of any outstanding Award; *provided, however*, that if any such amendment impairs a Participant's rights or increases a Participant's obligations under his or her Award or creates or increases a Participant's federal income tax liability with respect to an Award, such amendment shall also be subject to the Participant's consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) to determine the duration and purpose of leaves of absences which may be granted to a Participant without constituting termination of their employment for purposes of the Plan, which periods shall be no shorter than the periods generally applicable to Employees under the Company's employment policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) to make decisions with respect to outstanding Awards that may become necessary upon a change in corporate control or an event that triggers anti-dilution adjustments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) to interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any instrument or agreement relating to, or Award granted under, the Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) to exercise discretion to make any and all other determinations which it determines to be necessary or advisable for the administration of the Plan.

The Committee also may modify the purchase price or the exercise price of any outstanding Award, *provided that* if the modification effects a repricing, shareholder approval shall be required before the repricing is effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Committee Decisions Final</u>. All decisions made by the Committee pursuant to the provisions of the Plan shall be final and binding on the Company and the Participants, unless such decisions are determined by a court having jurisdiction to be arbitrary and capricious.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. <u>Delegation</u>. The Committee may delegate administration of the Plan to a subcommittee or subcommittees of one or more members of the Committee, and the term "Committee" shall apply to any person or persons to whom such authority has been delegated. The Committee shall have the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board or the Committee shall thereafter be to the committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and re-vest in the Board the administration of the Plan. The members of the Committee shall be appointed by and serve at the pleasure of the Board. From time to time, the Board may increase or decrease the size of the Committee, add additional members to, remove members (with or without cause) from, appoint new members in substitution therefor, and fill vacancies, however caused, in the Committee. The Committee shall act pursuant to a vote of the majority of its members or, in the case of a Committee comprised of only two members, the unanimous consent of its members, whether present or not, or by the written consent of the majority of its members and minutes shall be kept of all of its meetings and copies thereof shall be provided to the Board. Subject to the limitations prescribed by the Plan and the Board, the Committee may establish and follow such rules and regulations for the conduct of its business as it may determine to be advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. <u>Committee Composition</u>. Except as otherwise determined by the Board, the Committee shall consist solely of two or more Non-Employee Directors. The Board shall have discretion to determine whether or not it intends to comply with the exemption requirements of Rule 16b-3. However, if the Board intends to satisfy such exemption requirements, with respect to Awards to any insider subject to Section 16 of the Exchange Act, the Committee shall be a compensation committee of the Board that at all times consists solely of two or more Non-Employee Directors. Within the scope of such authority, the Board or the Committee may delegate to a committee of one or more members of the Board who are not Non-Employee Directors the authority to grant Awards to eligible persons who are not then subject to Section 16 of the Exchange Act. Nothing herein shall create an inference that an Award is not validly granted under the Plan in the event Awards are granted under the Plan by a compensation committee of the Board that does not at all times consist solely of two or more Non-Employee Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. <u>Indemnification</u>. In addition to such other rights of indemnification as they may have as Directors or members of the Committee, and to the extent allowed by Applicable Laws, the Committee shall be indemnified by the Company against the reasonable expenses, including attorney's fees, actually incurred in connection with any action, suit or proceeding or in connection with any appeal therein, to which the Committee may be party by reason of any action taken or failure to act under or in connection with the Plan or any Award granted under the Plan, and against all amounts paid by the Committee in settlement thereof (*provided, however*, that the settlement has been approved by the Company, which approval shall not be unreasonably withheld) or paid by the Committee in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such Committee did not act in good faith and in a manner which such person reasonably believed to be in the best interests of the Company, or in the case of a criminal proceeding, had no reason to believe that the conduct complained of was unlawful; *provided, however*, that within 60 days after institution of any such action, suit or proceeding, such Committee shall, in writing, offer the Company the opportunity at its own expense to handle and defend such action, suit or proceeding.

4. <u>Shares Subject to the Plan</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. Subject to adjustment in accordance with ***Section 11***, a total of 500,000 Ordinary Shares shall be available for the grant of Awards under the Plan. Ordinary Shares granted in connection with all Awards under the Plan shall be counted against this limit as one (1) Ordinary Share for every one (1) Ordinary Share granted in connection with such Award. During the terms of the Awards, the Company shall keep available at all times the number of Ordinary Shares required to satisfy such Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. Ordinary Shares available for distribution under the Plan may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares reacquired by the Company in any manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. Any Ordinary Shares subject to an Award that is canceled, forfeited or expires prior to exercise or realization, either in full or in part, shall again become available for issuance under the Plan. Each Ordinary Share that again becomes available for future grants pursuant to this ***Section 4.3*** shall be added back as one (1) Ordinary Share. Notwithstanding anything to the contrary contained herein, Ordinary Shares subject to an Award under the Plan shall not again be made available for issuance or delivery under the Plan if such Ordinary Shares are (a) tendered in payment of an Option, (b) delivered or withheld by the Company to satisfy any tax withholding obligation, or (c) covered by a share-settled Share Appreciation Right or other Awards that were not issued upon the settlement of the Award.

5. <u>Eligibility</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. <u>Eligibility for Specific Awards</u>. Incentive Share Options may be granted only to Employees. Awards other than Incentive Share Options may be granted to Employees, Consultants and Directors and those individuals whom the Committee determines are reasonably expected to become Employees, Consultants and Directors following the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. <u>Ten Percent Shareholders</u>. A Ten Percent Shareholder shall not be granted an Incentive Share Option unless the Option Exercise Price is at least 110% of the Fair Market Value of the Ordinary Shares at the Grant Date and the Option is not exercisable after the expiration of five years from the Grant Date.

6. <u>Option Provisions</u>. Each Option granted under the Plan shall be evidenced by an Award Agreement. Each Option so granted shall be subject to the conditions set forth in this ***Section 6***, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. All Options shall be separately designated Incentive Share Options or Non-qualified Share Options at the time of grant, and, if certificates are issued, a separate certificate or certificates will be issued for Ordinary Shares purchased on exercise of each type of Option. Notwithstanding the foregoing, the Company shall have no liability to any Participant or any other person if an Option designated as an Incentive Share Option fails to qualify as such at any time or if an Option is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A of the Code and the terms of such Option do not satisfy the requirements of Section 409A of the Code. The provisions of separate Options need not be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. <u>Term</u>. Subject to the provisions of ***Section 5.2*** regarding Ten Percent Shareholders, no Incentive Share Option shall be exercisable after the expiration of 10 years from the Grant Date. The term of a Non-qualified Share Option granted under the Plan shall be determined by the Committee; *provided, however*, no Non-qualified Share Option shall be exercisable after the expiration of 10 years from the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. <u>Exercise Price of An Incentive Share Option</u>. Subject to the provisions of ***Section 5.2*** regarding Ten Percent Shareholders, the Option Exercise Price of each Incentive Share Option shall be not less than 100% of the Fair Market Value of the Ordinary Shares subject to the Option on the Grant Date. Notwithstanding the foregoing, an Incentive Share Option may be granted with an Option Exercise Price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code. In no event may the Option Exercise Price of an Incentive Share Option be less than the par value of the Ordinary Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. <u>Exercise Price of a Non-qualified Share Option</u>. The Option Exercise Price of each Non-qualified Share Option shall be not less than 100% of the Fair Market Value of the Ordinary Shares subject to the Option on the Grant Date. Notwithstanding the foregoing, a Non-qualified Share Option may be granted with an Option Exercise Price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 409A of the Code. In no event may the Option Exercise Price of a Non-qualified Share Option be less than the par value of the Ordinary Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. <u>Consideration</u>. The Option Exercise Price of Ordinary Shares acquired pursuant to an Option shall be paid, to the extent permitted by applicable statutes and regulations, either (a) in cash or by certified or bank check at the time the Option is exercised or (b) in the discretion of the Committee, upon such terms as the Committee shall approve, the Option Exercise Price may be paid: (i) by delivery to the Company of other Ordinary Shares, duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery equal to the Option Exercise Price (or portion thereof) due for the number of Ordinary Shares being acquired, or by means of attestation whereby the Participant identifies for delivery specific Ordinary Shares that have an aggregate Fair Market Value on the date of attestation equal to the Option Exercise Price (or portion thereof) and receives a number of Ordinary Shares equal to the difference between the number of Ordinary Shares thereby purchased and the number of identified attestation Ordinary Shares (a "**Share for Share Exchange**"); (ii) a "cashless" exercise program established with a broker; (iii) by reduction in the number of Ordinary Shares otherwise deliverable upon exercise of such Option with a Fair Market Value equal to the aggregate Option Exercise Price at the time of exercise; (iv) any combination of the foregoing methods; or (v) in any other form of legal consideration that may be acceptable to the Committee. Unless otherwise specifically provided in the Option, the exercise price of Ordinary Shares acquired pursuant to an Option that is paid by delivery (or attestation) to the Company of other Ordinary Shares acquired, directly or indirectly from the Company, shall be paid only by Ordinary Shares of the Company that have been held for more than six months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes). Notwithstanding the foregoing, during any period for which the Ordinary Shares are publicly traded (i.e., the Ordinary Shares are listed on any established stock exchange or a national market system) an exercise by a Director or Officer that involves or may involve a direct or indirect extension of credit or arrangement of an extension of credit by the Company, directly or indirectly, in violation of Section 402(a) of the Sarbanes-Oxley Act of 2002 shall be prohibited with respect to any Award under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. <u>Transferability of An Incentive Share Option</u>. An Incentive Share Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. <u>Transferability of a Non-qualified Share Option</u>. A Non-qualified Share Option may, in the sole discretion of the Committee, be transferable to a Permitted Transferee, upon written approval by the Committee to the extent provided in the Award Agreement. If the Non-qualified Share Option does not provide for transferability, then the Non-qualified Share Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7. <u>Vesting of Options</u>. Each Option may, but need not, vest and therefore become exercisable in periodic installments that may, but need not, be equal. The Option may be subject to such other terms and conditions on the time or times when it may be exercised (which may be based on performance or other criteria) as the Committee may deem appropriate. The vesting provisions of individual Options may vary. No Option may be exercised for a fraction of an Ordinary Share. The Committee may, but shall not be required to, provide for an acceleration of vesting and exercisability in the terms of any Award Agreement upon the occurrence of a specified event, provided that if such Award is subject to Section 409A of the Code, such acceleration of vesting and exercisability complies with the provisions of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8. <u>Termination of Continuous Service</u>. Unless otherwise provided in an Award Agreement or in an employment agreement the terms of which have been approved by the Committee, in the event an Optionholder's Continuous Service terminates (other than upon the Optionholder's death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination) but only within such period of time ending on the earlier of (a) the date three months following the termination of the Optionholder's Continuous Service or (b) the expiration of the term of the Option as set forth in the Award Agreement; *provided that*, if the termination of Continuous Service is by the Company for Cause, all outstanding Options (whether or not vested) shall immediately terminate and cease to be exercisable. If, after termination, the Optionholder does not exercise his or her Option within the time specified in the Award Agreement, the Option shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9. <u>Extension of Termination Date</u>. An Optionholder's Award Agreement may also provide that if the exercise of the Option following the termination of the Optionholder's Continuous Service for any reason would be prohibited at any time because the issuance of Ordinary Shares would violate the registration requirements under the Securities Act or any other state or federal securities law or the rules of any securities exchange or interdealer quotation system, then the Option shall terminate on the earlier of (a) the expiration of the term of the Option in accordance with ***Section 6.1*** or (b) the expiration of a period after termination of the Participant's Continuous Service that is three months after the end of the period during which the exercise of the Option would be in violation of such registration or other securities law requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10. <u>Disability of Optionholder</u>. Unless otherwise provided in an Award Agreement, in the event that an Optionholder's Continuous Service terminates as a result of the Optionholder's Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination), but only within such period of time ending on the earlier of (a) the date 12 months following such termination or (b) the expiration of the term of the Option as set forth in the Award Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified herein or in the Award Agreement, the Option shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11. <u>Death of Optionholder</u>. Unless otherwise provided in an Award Agreement, in the event an Optionholder's Continuous Service terminates as a result of the Optionholder's death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder's estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the Option upon the Optionholder's death, but only within the period ending on the earlier of (a) the date 12 months following the date of death or (b) the expiration of the term of such Option as set forth in the Award Agreement. If, after the Optionholder's death, the Option is not exercised within the time specified herein or in the Award Agreement, the Option shall terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12. <u>Incentive Share Option US$100,000 Limitation</u>. To the extent that the aggregate Fair Market Value (determined at the time of grant) of Ordinary Shares with respect to which Incentive Share Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and its Affiliates) exceeds US$100,000, the Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be treated as Non-qualified Share Options.

7. <u>Provisions of Awards Other Than Options</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. <u>Share Appreciation Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Each Share Appreciation Right granted under the Plan shall be evidenced by an Award Agreement. Each Share Appreciation Right so granted shall be subject to the conditions set forth in this ***Section 7.1***, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. Share Appreciation Rights may be granted alone ("**Free Standing Rights**") or in tandem with an Option granted under the Plan ("**Related Rights**"). All such grants shall be exempt from, or comply with, the provisions of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Grant Requirements</u>. Any Related Right that relates to a Non-qualified Share Option may be granted at the same time the Option is granted or at any time thereafter but before the exercise or expiration of the Option. Any Related Right that relates to an Incentive Share Option must be granted at the same time the Incentive Share Option is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Term of Share Appreciation Rights</u>. The term of a Share Appreciation Right granted under the Plan shall be determined by the Committee; *provided, however*, no Share Appreciation Right shall be exercisable later than the tenth anniversary of the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Vesting of Share Appreciation Rights</u>. Each Share Appreciation Right may, but need not, vest and therefore become exercisable in periodic installments that may, but need not, be equal. The Share Appreciation Right may be subject to such other terms and conditions on the time or times when it may be exercised as the Committee may deem appropriate. The vesting provisions of individual Share Appreciation Rights may vary. No Share Appreciation Right may be exercised for a fraction of an Ordinary Share. The Committee may, but shall not be required to, provide for an acceleration of vesting and exercisability in the terms of any Share Appreciation Right upon the occurrence of a specified event, provided that if such Award is subject to Section 409A of the Code, such acceleration of vesting and exercisability complies with the provisions of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Exercise and Payment</u>. Upon exercise of a Share Appreciation Right, the holder shall be entitled to receive from the Company an amount equal to the number of Ordinary Shares subject to the Share Appreciation Right that is being exercised multiplied by the excess of (i) the Fair Market Value of one Ordinary Share on the date the Award is exercised, over (ii) the exercise price specified in the Share Appreciation Right or related Option. Payment with respect to the exercise of a Share Appreciation Right shall be made on the date of exercise. Payment shall be made in the form of Ordinary Shares (with or without restrictions as to substantial risk of forfeiture and transferability, as determined by the Committee in its sole discretion), cash or a combination thereof, as determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Exercise Price</u>. The exercise price of a Free Standing Share Appreciation Right shall be determined by the Committee, but shall not be less than the greater of (i) 100% of the Fair Market Value of one Ordinary Share on the Grant Date of such Share Appreciation Right or (ii) the par value of the Ordinary Shares. A Related Right granted simultaneously with or subsequent to the grant of an Option and in conjunction therewith or in the alternative thereto shall have the same exercise price as the related Option, shall be transferable only upon the same terms and conditions as the related Option, and shall be exercisable only to the same extent as the related Option; *provided, however*, that a Share Appreciation Right, by its terms, shall be exercisable only when the Fair Market Value per Ordinary Share subject to the Share Appreciation Right and related Option exceeds the exercise price per Ordinary Share thereof and no Share Appreciation Rights may be granted in tandem with an Option unless the Committee determines that the requirements of ***Section 7.1(b)*** are satisfied.

&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) <u>Reduction in the Underlying Option Shares</u>. Upon any exercise of a Related Right, the number of Ordinary Shares for which any related Option shall be exercisable shall be reduced by the number of Ordinary Shares for which the Share Appreciation Right has been exercised. The number of Ordinary Shares for which a Related Right shall be exercisable shall be reduced upon any exercise of any related Option by the number of Ordinary Shares for which such Option has been exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. <u>Restricted Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. A Restricted Award is an Award of actual Ordinary Shares ("**Restricted Shares**") or hypothetical Ordinary Share units ("**Restricted Share Units**") having a value equal to the Fair Market Value of an identical number of Ordinary Shares, which may, but need not, provide that such Restricted Award may not be sold, assigned, transferred or otherwise disposed of, pledged or hypothecated as collateral for a loan or as security for the performance of any obligation or for any other purpose for such period (the "**Restricted Period**") as the Committee shall determine. Each Restricted Award granted under the Plan shall be evidenced by an Award Agreement. Each Restricted Award so granted shall be subject to the conditions set forth in this ***Section 7.2***, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Restricted Share and Restricted Share Units</u>.

&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;(i) Each Participant granted Restricted Shares shall execute and deliver to the Company an Award Agreement with respect to the Restricted Shares setting forth the restrictions and other terms and conditions applicable to such Restricted Shares. If the Committee determines that the Restricted Shares shall be held by the Company or in escrow rather than delivered to the Participant pending the release of the applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the Company (A) an escrow agreement satisfactory to the Committee, if applicable and (B) the appropriate blank instrument of transfer with respect to the Restricted Shares covered by such agreement. If a Participant fails to execute an agreement evidencing an Award of Restricted Shares and, if applicable, an escrow agreement and instrument of transfer, the Award shall be null and void. Subject to the restrictions set forth in the Award, the Participant generally shall have the rights and privileges of a shareholder as to such Restricted Shares, including the right to vote such Restricted Shares and the right to receive dividends; *provided that*, any cash dividends and share dividends with respect to the Restricted Shares shall similarly be held in escrow by the Company for the Participant's account, and interest may be credited on the amount of the cash dividends so placed in escrow at a rate and subject to such terms as determined by the Committee. The cash dividends or share dividends so placed in escrow by the Committee and attributable to any particular Restricted Share (and earnings thereon, if applicable) shall be distributed to the Participant in cash or, at the discretion of the Committee, in Ordinary Shares having a Fair Market Value equal to the amount of such dividends, if applicable, upon the release of restrictions on such Restricted Share and, if such Restricted Share is forfeited, the Participant shall have no right to such dividends.

&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;(ii) The terms and conditions of a grant of Restricted Share Units shall be reflected in an Award Agreement. No Ordinary Shares shall be issued at the time a Restricted Share Unit is granted, and the Company will not be required to set aside a fund for the payment of any such Award. A Participant shall have no voting rights with respect to any Restricted Share Units granted hereunder. The Committee may also grant Restricted Share Units with a deferral feature, if permitted in Section 409A of the Code, whereby settlement is deferred beyond the vesting date until the occurrence of a future payment date or event set forth in an Award Agreement ("**Deferred Share Units**"). At the discretion of the Committee, each Restricted Share Unit or Deferred Share Unit (representing one Ordinary Share) may be credited with cash and share dividends paid by the Company in respect of one Ordinary Share ("**Dividend Equivalents**"). Dividend Equivalents shall not be paid but shall be credited to the Participant's account, and interest may be credited on the amount of cash Dividend Equivalents credited to the Participant's account at a rate and subject to such terms as determined by the Committee. Dividend Equivalents credited to a Participant's account and attributable to any particular Restricted Share Unit or Deferred Share Unit (and earnings thereon, if applicable) shall be distributed in cash or, at the discretion of the Committee, in Ordinary Shares having a Fair Market Value equal to the amount of such Dividend Equivalents and earnings, if applicable, to the Participant upon settlement of such Restricted Share Unit or Deferred Share Unit and, if such Restricted Share Unit or Deferred Share Unit is forfeited, the Participant shall have no right to such Dividend Equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Restrictions</u>.

&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;(i) Restricted Shares awarded to a Participant shall be subject to the following restrictions until the expiration of the Restricted Period, and to such other terms and conditions as may be set forth in the applicable Award Agreement: (A) if an escrow arrangement is used, the Participant shall not be entitled to delivery of the share certificate; (B) the Ordinary Shares shall be subject to the restrictions on transferability set forth in the Award Agreement; (C) the Ordinary Shares shall be subject to forfeiture to the extent provided in the applicable Award Agreement; and (D) to the extent such Ordinary Shares are forfeited, the register of members shall be written up to reflect such forfeiture, the share certificates shall be returned to the Company, and all rights of the Participant to such Ordinary Shares and as a shareholder with respect to such Ordinary Shares shall terminate without further obligation on the part of the Company.

&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;(ii) Restricted Share Units and Deferred Share Units awarded to any Participant shall be subject to (A) forfeiture until the expiration of the Restricted Period, and satisfaction of any applicable Performance Goals during such period, to the extent provided in the applicable Award Agreement, and to the extent such Restricted Share Units or Deferred Share Units are forfeited, all rights of the Participant to such Restricted Share Units or Deferred Share Units shall terminate without further obligation on the part of the Company and (B) such other terms and conditions as may be set forth in the applicable Award Agreement.

&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;(iii) The Committee shall have the authority to remove any or all of the restrictions on the Restricted Shares, Restricted Share Units and Deferred Share Units whenever it may determine that, by reason of changes in Applicable Laws or other changes in circumstances arising after the date the Restricted Shares, Restricted Share Units or Deferred Share Units are granted, such action is appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Restricted Period</u>. With respect to Restricted Awards, the Restricted Period shall commence on the Grant Date and end at the time or times set forth on a schedule established by the Committee in the applicable Award Agreement. No Restricted Award may be granted or settled for a fraction of an Ordinary Share. The Committee may, but shall not be required to, provide for an acceleration of vesting in the terms of any Award Agreement upon the occurrence of a specified event, provided that if such Award is subject to Section 409A of the Code, such acceleration is consistent with the provisions of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Delivery of Restricted Shares and Settlement of Restricted Share Units</u>. Upon the expiration of the Restricted Period with respect to any Restricted Share, the restrictions set forth in ***Section 7.2(c)*** and the applicable Award Agreement shall be of no further force or effect with respect to such Restricted Shares, except as set forth in the applicable Award Agreement. If an escrow arrangement is used, upon such expiration, the Company shall deliver to the Participant, or his or her beneficiary, without charge, the share certificate evidencing the Restricted Shares which have not then been forfeited and with respect to which the Restricted Period has expired (to the nearest full share) and any cash dividends or share dividends credited to the Participant's account with respect to such Restricted Shares and the interest thereon, if any. Upon the expiration of the Restricted Period with respect to any outstanding Restricted Share Units, or at the expiration of the deferral period with respect to any outstanding Deferred Share Units, the Company shall deliver to the Participant, or his or her beneficiary, without charge, one Ordinary Share for each such outstanding vested Restricted Share Unit or Deferred Share Unit ("**Vested Unit**") and cash equal to any Dividend Equivalents credited with respect to each such Vested Unit in accordance with ***Section 7.2(b)(ii)*** hereof and the interest thereon or, at the discretion of the Committee, in Ordinary Shares having a Fair Market Value equal to such Dividend Equivalents and the interest thereon, if any; *provided, however*, that, if explicitly provided in the applicable Award Agreement, the Committee may, in its sole discretion, elect to pay cash or part cash and part Ordinary Shares in lieu of delivering only Ordinary Shares for Vested Units. If a cash payment is made in lieu of delivering Ordinary Shares, the amount of such payment shall be equal to the Fair Market Value of the Ordinary Shares as of the date on which the Restricted Period lapsed in the case of Restricted Share Units, or the delivery date in the case of Deferred Share Units, with respect to each Vested Unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Share Restrictions</u>. Each certificate representing Restricted Shares awarded under the Plan shall bear a legend in such form as the Company deems appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. <u>Performance Share Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant of Performance Share Awards</u>. Each Performance Share Award granted under the Plan shall be evidenced by an Award Agreement. Each Performance Share Award so granted shall be subject to the conditions set forth in this ***Section 7.3****,* and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. The Committee shall have the discretion to determine: (i) the number of Ordinary Shares or share-denominated units subject to a Performance Share Award granted to any Participant; (ii) the performance period applicable to any Award; (iii) the conditions that must be satisfied for a Participant to earn an Award; and (iv) the other terms, conditions and restrictions of the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Earning Performance Share Awards</u>. The number of Performance Shares earned by a Participant will depend on the extent to which the performance goals established by the Committee are attained within the applicable Performance Period, as determined by the Committee. No payout shall be made with respect to any Performance Share Award except upon written certification by the Committee that the minimum threshold performance goal(s) have been achieved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. <u>Performance Compensation Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. The Committee shall have the authority, at the time of grant of any Award described in this Plan (other than Options and Share Appreciation Rights granted with an exercise price equal to or greater than the Fair Market Value per Ordinary Share on the Grant Date), to designate such Award as a Performance Compensation Award. In addition, the Committee shall have the authority to make an Award of a cash bonus to any Participant and designate such Award as a Performance Compensation Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Eligibility</u>. The Committee will, in its sole discretion, designate within the first 90 days of a Performance Period (or such shorter or longer time period as the Committee shall determine) which Participants will be eligible to receive Performance Compensation Awards in respect of such Performance Period. However, designation of a Participant eligible to receive an Award hereunder for a Performance Period shall not in any manner entitle the Participant to receive payment in respect of any Performance Compensation Award for such Performance Period. The determination as to whether or not such Participant becomes entitled to payment in respect of any Performance Compensation Award shall be decided solely in accordance with the provisions of this ***Section 7.4****.* Moreover, designation of a Participant eligible to receive an Award hereunder for a particular Performance Period shall not require designation of such Participant eligible to receive an Award hereunder in any subsequent Performance Period and designation of one person as a Participant eligible to receive an Award hereunder shall not require designation of any other person as a Participant eligible to receive an Award hereunder in such period or in any other period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Discretion of Committee with Respect to Performance Compensation Awards</u>. With regard to a particular Performance Period, the Committee shall have full discretion to select the length of such Performance Period (provided any such Performance Period shall be not less than one fiscal quarter in duration), the type(s) of Performance Compensation Awards to be issued, the Performance Criteria that will be used to establish the Performance Goal(s), the kind(s) and/or level(s) of the Performance Goal(s) that is (are) to apply to the Company and the Performance Formula. Within the first 90 days of a Performance Period (or such shorter or longer time period as the Committee shall determine), the Committee shall, with regard to the Performance Compensation Awards to be issued for such Performance Period, exercise its discretion with respect to each of the matters enumerated in the immediately preceding sentence of this ***Section 7.4(c)*** and record the same in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Payment of Performance Compensation Awards</u>.

&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;(i) <u>Condition to Receipt of Payment</u>. Unless otherwise provided in the applicable Award Agreement, a Participant must be employed by the Company on the last day of a Performance Period to be eligible for payment in respect of a Performance Compensation Award for such Performance Period.

&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;(ii) <u>Limitation</u>. A Participant shall be eligible to receive payment in respect of a Performance Compensation Award only to the extent that: (A) the Performance Goals for such period are achieved; and (B) the Performance Formula as applied against such Performance Goals determines that all or some portion of such Participant's Performance Compensation Award has been earned for the Performance Period.

&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;(iii) <u>Certification</u>. Following the completion of a Performance Period, the Committee shall review and certify in writing whether, and to what extent, the Performance Goals for the Performance Period have been achieved and, if so, calculate and certify in writing the amount of the Performance Compensation Awards earned for the period based upon the Performance Formula. The Committee shall then determine the actual size of each Participant's Performance Compensation Award for the Performance Period.

&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;(iv) <u>Use of Discretion</u>. The Committee shall not have the discretion to grant or provide payment in respect of Performance Compensation Awards for a Performance Period if the Performance Goals for such Performance Period have not been attained.

&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;(v) <u>Timing of Award Payments</u>. Performance Compensation Awards granted for a Performance Period shall be paid to Participants as soon as administratively practicable following completion of the certifications required by this ***Section 7.4*** but in no event later than 2 1/2 months following the end of the fiscal year during which the Performance Period is completed.

8. <u>Securities Law Compliance</u>. Each Award Agreement shall provide that no Ordinary Shares shall be purchased or sold thereunder unless and until (a) any then applicable requirements of state or federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel and (b) if required to do so by the Company, the Participant has executed and delivered to the Company a letter of investment intent in such form and containing such provisions as the Committee may require. The Company shall use reasonable efforts to seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Awards and to issue and sell Ordinary Shares upon exercise of the Awards; *provided, however*, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Award or any Ordinary Shares issued or issuable pursuant to any such Award. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of Ordinary Shares under the Plan, the Company shall be relieved from any liability for failure to issue and sell Ordinary Shares upon exercise of such Awards unless and until such authority is obtained.

9. <u>Use of Proceeds</u>. Proceeds from the sale of Ordinary Shares pursuant to Awards, or upon exercise thereof, shall constitute general funds of the Company.

10. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. <u>Acceleration of Exercisability and Vesting</u>. The Committee shall have the power to accelerate the time at which an Award may first be exercised or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Award stating the time at which it may first be exercised or the time during which it will vest, provided that if such Award is subject to Section 409A of the Code, any such acceleration or exercisability or vesting is in compliance with the provisions of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. <u>Shareholder Rights</u>. Except as provided in the Plan or an Award Agreement, no Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any Ordinary Shares subject to such Award unless and until such Participant has satisfied all requirements for exercise of the Award pursuant to its terms and no adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions of other rights for which the record date is prior to the date such Ordinary Share certificate is issued, except as provided in ***Section 11*** hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. <u>No Employment or Other Service Rights</u>. Nothing in the Plan or any instrument executed or Award granted pursuant thereto shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Award was granted or shall affect the right of the Company or an Affiliate to terminate (a) the employment of an Employee with or without notice and with or without Cause or (b) the service of a Director pursuant to the memorandum and articles of association of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4. <u>Transfer; Approved Leave of Absence</u>. For purposes of the Plan, no termination of employment by an Employee shall be deemed to result from either (a) a transfer of employment to the Company from an Affiliate or from the Company to an Affiliate, or from one Affiliate to another, or (b) an approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the Employee's right to reemployment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Committee otherwise so provides in writing, in either case, except to the extent inconsistent with Section 409A of the Code if the applicable Award is subject thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5. <u>Withholding Obligations</u>. To the extent provided by the terms of an Award Agreement and subject to the discretion of the Committee, the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Ordinary Shares under an Award by any of the following means (in addition to the Company's right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (a) tendering a cash payment; (b) authorizing the Company to withhold Ordinary Shares from the Ordinary Shares otherwise issuable to the Participant as a result of the exercise or acquisition of Ordinary Shares under the Award, *provided, however*, that no Ordinary Shares are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (c) delivering to the Company previously owned and unencumbered Ordinary Shares of the Company.

11. <u>Adjustments Upon Changes in Share Capital</u>. In the event of changes in the outstanding Ordinary Shares or in the capital structure of the Company by reason of any share or extraordinary cash dividend, share split, reverse share split, an extraordinary corporate transaction such as any recapitalization, reorganization, merger, consolidation, combination, exchange, or other relevant change in capitalization occurring after the Grant Date of any Award, Awards granted under the Plan and any Award Agreements, the exercise price of Options and Share Appreciation Rights, the maximum number of Ordinary Shares subject to all Awards stated in ***Section 4*** will be equitably adjusted or substituted, as to the number, price or kind of Ordinary Shares or other consideration subject to such Awards to the extent necessary to preserve the economic intent of such Award. In the case of adjustments made pursuant to this ***Section 11***, unless the Committee specifically determines that such adjustment is in the best interests of the Company or its Affiliates, the Committee shall, in the case of Incentive Share Options, ensure that any adjustments under this ***Section 11*** will not constitute a modification, extension or renewal of the Incentive Share Options within the meaning of Section 424(h)(3) of the Code and in the case of Non-qualified Share Options, ensure that any adjustments under this ***Section 11*** will not constitute a modification of such Non-qualified Share Options within the meaning of Section 409A of the Code. Any adjustments made under this ***Section 11*** shall be made in a manner which does not adversely affect the exemption provided pursuant to Rule 16b-3 under the Exchange Act. The Company shall give each Participant notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive and binding for all purposes.

12. <u>Effect of Change in Control</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. In the discretion of the Committee, any Award Agreement may provide, or the Committee may provide by amendment of any Award Agreement or otherwise, notwithstanding any provision of the Plan to the contrary, that in the event of a Change in Control, Options and/or Share Appreciation Rights shall become immediately exercisable with respect to all or a specified portion of the Ordinary Shares subject to such Options or Share Appreciation Rights, and/or the Restricted Period shall expire immediately with respect to all or a specified portion of the Restricted Shares or Restricted Share Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. In addition, in the event of a Change in Control, the Committee may in its discretion and upon at least 10 days' advance notice to the affected persons, cancel any outstanding Awards and pay to the holders thereof, in cash or Ordinary Shares, or any combination thereof, the value of such Awards based upon the price per Ordinary Share received or to be received by other shareholders of the Company in the event. In the case of any Option or Share Appreciation Right with an exercise price that equals or exceeds the price paid for an Ordinary Share in connection with the Change in Control, the Committee may cancel the Option or Share Appreciation Right without the payment of consideration therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3. The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to all or substantially all of the assets and business of the Company and its Subsidiaries, taken as a whole.

13. <u>Amendment of the Plan and Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. <u>Amendment of Plan</u>. The Board may amend, alter, suspend, discontinue, or terminate this Plan or any portion thereof at any time; *provided that* no such amendment, alteration, suspension, discontinuation or termination shall be made without shareholder approval if such approval is necessary to comply with any Applicable Laws (including, without limitation, as necessary to comply with any tax or regulatory requirement applicable to this Plan or to prevent the Company from being denied a tax deduction under Section 162(m) of the Code); *and provided further*, that any such amendment, alteration, suspension, discontinuance or termination that would materially and adversely affect the rights of any Participant or any holder or beneficiary of any Award theretofore granted shall not to that extent be effective without the prior written consent of the affected Participant, holder or beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2. <u>Contemplated Amendments</u>. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide eligible Employees, Consultants and Directors with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Share Options or to the nonqualified deferred compensation provisions of Section 409A of the Code and/or to bring the Plan and/or Awards granted under it into compliance therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3. <u>No Impairment of Rights</u>. Rights under any Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (a) the Company requests the consent of the Participant and (b) the Participant consents in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4. <u>Amendment of Awards</u>. The Committee may, to the extent consistent with the terms of any applicable Award Agreement, waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate, any Award theretofore granted or the associated Award Agreement, prospectively or retroactively; *provided, however* that any such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would materially and adversely affect the rights of any Participant with respect to any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant.

14. <u>General Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. <u>Forfeiture Events</u>. The Committee may specify in an Award Agreement that the Participant's rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain events, in addition to applicable vesting conditions of an Award. Such events may include, without limitation, breach of non-competition, non-solicitation, confidentiality, or other restrictive covenants that are contained in the Award Agreement or otherwise applicable to the Participant, a termination of the Participant's Continuous Service for Cause, or other conduct by the Participant that is detrimental to the business or reputation of the Company and/or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. <u>Clawback</u>. Notwithstanding any other provisions in this Plan, any Award which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3. <u>Other Compensation Arrangements</u>. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to shareholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4. <u>Sub-plans</u>. The Committee may from time to time establish sub-plans under the Plan for purposes of satisfying blue sky, securities, tax or other laws of various jurisdictions in which the Company intends to grant Awards. Any sub-plans shall contain such limitations and other terms and conditions as the Committee determines are necessary or desirable. All sub-plans shall be deemed a part of the Plan, but each sub-plan shall apply only to the Participants in the jurisdiction for which the sub-plan was designed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5. <u>Deferral of Awards</u>. The Committee may establish one or more programs under the Plan to permit selected Participants the opportunity to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the Participant to payment or receipt of Ordinary Shares or other consideration under an Award. The Committee may establish the election procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on amounts, shares or other consideration so deferred, and such other terms, conditions, rules and procedures that the Committee deems advisable for the administration of any such deferral program. All of such programs and procedures shall be consistent with the rules of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6. <u>Unfunded Plan</u>. The Plan shall be unfunded. Neither the Company, the Board nor the Committee shall be required to establish any special or separate fund or to segregate any assets to assure the performance of its obligations under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.7. <u>Recapitalizations</u>. Each Award Agreement shall contain provisions required to reflect the provisions of ***Section 11****.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.8. <u>Delivery</u>. Upon exercise of a right granted under this Plan, the Company shall issue Ordinary Shares or pay any amounts due within a reasonable period of time thereafter. Subject to any statutory or regulatory obligations the Company may otherwise have, for purposes of this Plan, thirty (30) days shall be considered a reasonable period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.9. <u>No Fractional Shares</u>. No fractional Ordinary Shares shall be issued or delivered pursuant to the Plan. The Committee shall determine whether cash, additional Awards or other securities or property shall be issued or paid in lieu of fractional Ordinary Shares or whether any fractional Ordinary Shares should be rounded, forfeited or otherwise eliminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.10. <u>Other Provisions</u>. The Award Agreements authorized under the Plan may contain such other provisions not inconsistent with this Plan, including, without limitation, restrictions upon the exercise of the Awards, as the Committee may deem advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.11. <u>Section 409A</u>. The Plan and all Awards granted under the Plan are intended to comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan and all Awards Agreements shall be interpreted and administered to be in compliance therewith. Any payments described in the Plan that are due within the "short-term deferral period" as defined in Section 409A of the Code shall not be treated as deferred compensation unless Applicable Laws require otherwise. Notwithstanding anything to the contrary in the Plan or any Award Agreement, to the extent required to avoid accelerated taxation and tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan or Award Agreement during the six (6) month period immediately following the Participant's termination of Continuous Service shall instead be paid on the first payroll date after the six-month anniversary of the Participant's separation from service (or the Participant's death, if earlier). Notwithstanding the foregoing, neither the Company nor the Committee shall have any obligation to take any action to prevent the assessment of any excise tax or penalty on any Participant under Section 409A of the Code and neither the Company nor the Committee will have any liability to any Participant for such tax or penalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.12. <u>Disqualifying Dispositions</u>. Any Participant who shall make a "disposition" (as defined in Section 424 of the Code) of all or any portion of Ordinary Shares acquired upon exercise of an Incentive Share Option within two years from the Grant Date of such Incentive Share Option or within one year after the issuance of the Ordinary Shares acquired upon exercise of such Incentive Share Option (a "**Disqualifying Disposition**") shall be required to immediately advise the Company in writing as to the occurrence of the sale and the price realized upon the sale of such Ordinary Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.13. <u>Section 16</u>. It is the intent of the Company that the Plan satisfy, and be interpreted in a manner that satisfies, the applicable requirements of Rule 16b-3 as promulgated under Section 16 of the Exchange Act so that Participants will be entitled to the benefit of Rule 16b-3, or any other rule promulgated under Section 16 of the Exchange Act, and will not be subject to short-swing liability under Section 16 of the Exchange Act. Accordingly, if the operation of any provision of the Plan would conflict with the intent expressed in this ***Section 14.13****,* such provision to the extent possible shall be interpreted and/or deemed amended so as to avoid such conflict.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.14. <u>Beneficiary Designation</u>. Each Participant under the Plan may from time to time name any beneficiary or beneficiaries by whom any right under the Plan is to be exercised in case of such Participant's death. Each designation will revoke all prior designations by the same Participant, shall be in a form reasonably prescribed by the Committee and shall be effective only when filed by the Participant in writing with the Company during the Participant's lifetime.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.15. <u>Expenses</u>. The costs of administering the Plan shall be paid by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.16. <u>Severability</u>. If any of the provisions of the Plan or any Award Agreement is held to be invalid, illegal or unenforceable, whether in whole or in part, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability and the remaining provisions shall not be affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.17. <u>Plan Headings</u>. The headings in the Plan are for purposes of convenience only and are not intended to define or limit the construction of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.18. <u>Non-Uniform Treatment</u>. The Committee's determinations under the Plan need not be uniform and may be made by it selectively among persons who are eligible to receive, or actually receive, Awards. Without limiting the generality of the foregoing, the Committee shall be entitled to make non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform and selective Award Agreements.

15. <u>Effective Date of Plan</u>. The Plan shall become effective as of the Effective Date.

16. <u>Termination or Suspension of the Plan</u>. The Plan shall terminate automatically on December 30, 2032. No Award shall be granted pursuant to the Plan after such date, but Awards theretofore granted may extend beyond that date. The Board may suspend or terminate the Plan at any earlier date pursuant to ***Section 13.1*** hereof, provided any such suspension or termination is consistent with the provisions of Section 409A of the Code. No Awards may be granted under the Plan while the Plan is suspended or after it is terminated.

17. <u>Choice of Law</u>. Except to the extent governed by Federal law, the Plan and all Award Agreements shall be construed in accordance with and governed by the laws of the Cayman Islands.

As adopted by the Board of Directors of the Company on December 30, 2022.

## Exhibit 10.16

**Exhibit 10.16**

**SHARE OPTION AGREEMENT**

This Share Option Agreement (this "**Agreement**") is made and entered into as of the Grant Date specified below by and between Droneify Holdings Limited, an exempted company incorporated under the laws of the Cayman Islands (the "**Company**"), and the participant named below (the "**Participant**").

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| |
|:---|
| Name of Participant: |
| Grant Date: |
| Expiration Date: |
| Exercise Price: |
| Number of Option Shares: |
| Type of Option: |
| Vesting Start Date: |
| Vesting Schedule: |

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1. <u>Grant of Option</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. <u>Grant</u>. The Company hereby grants to the Participant an option (the "**Option**") to purchase the total number of Ordinary Shares of the Company equal to the number of Option Shares set forth above, at the Exercise Price set forth above. The Option is being granted pursuant to the terms of the Company's 2022 Equity Incentive Plan (the "**Plan**"). Capitalized terms used but not defined herein will have the meanings ascribed to them in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. <u>Type of Option</u>. The Option is intended to be either a Non-qualified Share Option (i.e., *not* an Incentive Share Option) or an Incentive Share Option within the meaning of Section 422 of the Code, as indicated above, although the Company makes no representation or guarantee that the Option will qualify as an Incentive Share Option. To the extent that the aggregate Fair Market Value (determined on the Grant Date) of the Ordinary Shares with respect to which Incentive Share Options are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and its Affiliates) exceeds US$100,000, the Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be treated as Non-qualified Share Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. <u>Consideration</u>. The grant of the Option is made in consideration of the services to be rendered by the Participant to the Company and is subject to the terms and conditions of the Plan.

2. <u>Exercise Period; Vesting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Vesting Schedule</u>. The Option will become vested and exercisable in accordance with the Vesting Schedule specified above until the Option is 100% vested. The unvested portion of the Option will not be exercisable on or after the Participant's termination of Continuous Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. <u>Expiration</u>. The Option will expire on the Expiration Date set forth above, or earlier as provided in this Agreement or the Plan.

3. <u>Termination of Continuous Service</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Termination for Reasons Other Than Cause, Death or Disability</u>. If the Participant's Continuous Service is terminated for any reason other than Cause, death or Disability, the Participant may exercise the vested portion of the Option, but only within such period of time ending on the earlier of (a) the date that is three months following the termination of the Participant's Continuous Service or (b) the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Termination for Cause</u>. If the Participant's Continuous Service is terminated for Cause, the Option (whether vested or unvested) shall immediately terminate and cease to be exercisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. <u>Termination Due to Disability</u>. If the Participant's Continuous Service terminates as a result of the Participant's Disability, the Participant may exercise the vested portion of the Option, but only within such period of time ending on the earlier of (a) the date that is 12 months following the Participant's termination of Continuous Service or (b) the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. <u>Termination Due to Death</u>. If the Participant's Continuous Service terminates as a result of the Participant's death, or the Participant dies within a period following termination of the Participant's Continuous Service during which the vested portion of the Option remains exercisable, the vested portion of the Option may be exercised by the Participant's estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by the person designated to exercise the Option upon the Participant's death, but only within the time period ending on the earlier of (a) the date that is 12 months following the Participant's death or (b) the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. <u>Extension of Termination Date</u>. If following the Participant's termination of Continuous Service for any reason the exercise of the Option is prohibited because the exercise of the Option would violate the registration requirements under the Securities Act or any other state or federal securities law or the rules of any securities exchange or interdealer quotation system, then the expiration of the Option shall be tolled until the date that is thirty (30) days after the end of the period during which the exercise of the Option would be in violation of such registration or other securities requirements.

4. <u>Manner of Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Election to Exercise</u>. To exercise the Option, the Participant (or in the case of exercise after the Participant's death or incapacity, the Participant's executor, administrator, heir or legatee, as the case may be) must deliver to the Company an executed share option exercise agreement in the form attached hereto as <u>Exhibit A</u>, or as is approved by the Committee from time to time (the "**Exercise Agreement**"), which shall set forth, *inter alia*: (a) the Participant's election to exercise the Option; (b) the number of Ordinary Shares being purchased; (c) any restrictions imposed on the Ordinary Shares; and (d) any representations, warranties and agreements regarding the Participant's investment intent and access to information as may be required by the Company to comply with applicable securities laws. If someone other than the Participant exercises the Option, then such person must submit documentation reasonably acceptable to the Company verifying that such person has the legal right to exercise the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>Payment of Exercise Price</u>. The entire Exercise Price of the Option shall be payable in full at the time of exercise to the extent permitted by applicable statutes and regulations, either: (a) in cash or by certified or bank check at the time the Option is exercised; (b) by delivery to the Company of other Ordinary Shares, together with an instrument of transfer in favour of the Company, with a Fair Market Value on the date of delivery equal to the Exercise Price (or portion thereof) due for the number of Ordinary Shares being acquired, or by means of attestation whereby the Participant identifies for delivery specific Ordinary Shares that have a Fair Market Value on the date of attestation equal to the Exercise Price (or portion thereof) and receives a number of Ordinary Shares equal to the difference between the number of Ordinary Shares thereby purchased and the number of identified attestation Ordinary Shares (a "**Share for Share Exchange**"); (c) through a "cashless exercise program" established with a broker; (d) by reduction in the number of Ordinary Shares otherwise deliverable upon exercise of such Option with a Fair Market Value equal to the aggregate Exercise Price at the time of exercise; (e) by any combination of the foregoing methods; or (f) in any other form of legal consideration that may be acceptable to the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Withholding</u>. Prior to the issuance of Ordinary Shares upon the exercise of the Option, the Participant must make arrangements satisfactory to the Company to pay or provide for any applicable federal, state and local withholding obligations of the Company. The Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise of the Option by any of the following means: (a) tendering a cash payment; (b) authorizing the Company to withhold Ordinary Shares from the Ordinary Shares otherwise issuable to the Participant as a result of the exercise of the Option; *provided, however*, that no Ordinary Shares are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (c) delivering to the Company previously owned and unencumbered Ordinary Shares. The Company has the right to withhold from any compensation paid to a Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Issuance of Shares</u>. Provided that the Exercise Agreement and payment are in form and substance satisfactory to the Company, the Company shall issue the Ordinary Shares registered in the name of the Participant, the Participant's authorized assignee, or the Participant's legal representative which shall be evidenced by entry in the register of members of the Company and share certificates representing the Ordinary Shares with the appropriate legends affixed thereto, appropriate entry on the books of the Company or of a duly authorized transfer agent, or other appropriate means as determined by the Company.

5. <u>No Right to Continued Service; No Rights as Shareholder</u>. Neither the Plan nor this Agreement shall confer upon the Participant any right to be retained in any position, as an Employee, Consultant or Director of the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Participant's Continuous Service at any time, with or without Cause. The Participant shall not have any rights as a shareholder with respect to any Ordinary Shares subject to the Option prior to the date of exercise of the Option.

6. <u>Transferability</u>. The Option is not transferable by the Participant other than to a designated beneficiary upon the Participant's death or by will or the laws of descent and distribution, and is exercisable during the Participant's lifetime only by him or her. No assignment or transfer of the Option, or the rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise (except to a designated beneficiary upon death by will or the laws of descent or distribution) will vest in the assignee or transferee any interest or right herein whatsoever, but immediately upon such assignment or transfer the Option will terminate and become of no further effect.

7. <u>Change in Control</u>. In the event of a Change in Control, the Committee may, in its discretion and upon at least ten (10) days' advance notice to the Participant, cancel the Option and pay to the Participant the value of the Option based upon the price per Ordinary Share received or to be received by other shareholders of the Company in the event. Notwithstanding the foregoing, if at the time of a Change in Control the Exercise Price of the Option equals or exceeds the price paid for an Ordinary Share in connection with the Change in Control, the Committee may cancel the Option without the payment of consideration therefor.

8. <u>Adjustments</u>. The Ordinary Shares subject to the Option may be adjusted or terminated in any manner as contemplated by Section 11 of the Plan.

9. <u>Tax Liability and Withholding</u>. Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding ("**Tax-Related Items**"), the ultimate liability for all Tax-Related Items is and remains the Participant's responsibility and the Company (a) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting, or exercise of the Option or the subsequent sale of any Ordinary Shares acquired on exercise; and (b) does not commit to structure the Option to reduce or eliminate the Participant's liability for Tax-Related Items.

10. <u>Qualification as an Incentive Share Option</u>. If this Option is an Incentive Share Option, the Participant understands that in order to obtain the benefits of an Incentive Share Option, no sale or other disposition may be made of Ordinary Shares for which Incentive Share Option treatment is desired within one (1) year following the date of exercise of the Option or within two (2) years from the Grant Date. The Participant understands and agrees that the Company shall not be liable or responsible for any additional tax liability the Participant incurs in the event that the Internal Revenue Service for any reason determines that this Option does not qualify as an Incentive Share Option within the meaning of the Code.

11. <u>Disqualifying Disposition</u>. If this Option is an Incentive Share Option and the Participant disposes of the Ordinary Shares prior to the expiration of either two (2) years from the Grant Date or one (1) year from the date the Ordinary Shares are transferred to the Participant pursuant to the exercise of the Option, the Participant shall notify the Company in writing within thirty (30) days after such disposition of the date and terms of such disposition. The Participant also agrees to provide the Company with any information concerning any such dispositions as the Company requires for tax purposes.

12. <u>Non-competition and Non-solicitation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. <u>Non-competition and Non-solicitation Restrictions</u>. In consideration of the Option, the Participant agrees and covenants not to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contribute his or her knowledge, directly or indirectly, in whole or in part, as an employee, officer, owner, manager, advisor, consultant, agent, partner, director, shareholder, volunteer, intern or in any other similar capacity to an entity engaged in the same or similar business as the Company and its Affiliates for a period of one year following the Participant's termination of Continuous Service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) directly or indirectly, solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any employee of the Company or its Affiliates for one year following the Participant's termination of Continuous Service; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) directly or indirectly, solicit, contact (including, but not limited to, e-mail, regular mail, express mail, telephone, fax, and instant message), attempt to contact or meet with the current, former or prospective customers of the Company or any of its Affiliates for purposes of offering or accepting goods or services similar to or competitive with those offered by the Company or any of its Affiliates for a period of one year following the Participant's termination of Continuous Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. <u>Enforcement of Non-competition and Non-solicitation Restrictions</u>. In the event of a breach or threatened breach of any of the covenants contained in Section 12.1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any unvested portion of the Option shall be forfeited effective as of the date of such breach, unless sooner terminated by operation of another term or condition of this Agreement or the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any vested, but unexercised, portion of the Option that vested upon the termination of the Participant's Continuous Service or that vested within the one year period prior to the earlier of (i) the time the Participant first breached any of the covenants contained in Section 12.1 and (ii) the time of the Participant's termination of Continuous Service, shall be forfeited as of the date of such breach, unless sooner terminated by operation of another term or condition of this Agreement or the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Company shall have the right, but not the obligation, during the one year period following the termination of the Participant's Continuous Service to acquire any Ordinary Shares issued upon exercise of the Option during the one year period preceding the termination of the Participant's Continuous Service that continue to be held by the Participant at the Exercise Price paid by the Participant, if any, for such Ordinary Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Participant hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief.

13. <u>Compliance with Law</u>. The exercise of the Option and the issuance and transfer of Ordinary Shares shall be subject to compliance by the Company and the Participant with laws of Cayman Islands as they relate to the Company and its Ordinary Shares, all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Ordinary Shares may be listed. No Ordinary Shares shall be issued pursuant to this Option unless and until any then applicable requirements of Cayman Islands laws, state or federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. The Participant understands that the Company is under no obligation to register the Ordinary Shares with the Securities and Exchange Commission, any state securities commission or any stock exchange to effect such compliance.

14. <u>Notices</u>. Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the Company at the Company's principal corporate offices. Any notice required to be delivered to the Participant under this Agreement shall be in writing and addressed to the Participant at the Participant's address as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time.

15. <u>Governing Law</u>. This Agreement will be construed and interpreted in accordance with the laws of the Cayman Islands without regard to conflict of law principles.

16. <u>Interpretation</u>. Any dispute regarding the interpretation of this Agreement shall be submitted by the Participant or the Company to the Committee for review. The resolution of such dispute by the Committee shall be final and binding on the Participant and the Company.

17. <u>Options Subject to Plan</u>. This Agreement is subject to the Plan and is not required to be approved by the Company's shareholders. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

18. <u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon the Participant and the Participant's beneficiaries, executors, administrators and the person(s) to whom the Option may be transferred by will or the laws of descent or distribution.

19. <u>Severability</u>. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

20. <u>Discretionary Nature of Plan</u>. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in its discretion. The grant of the Option in this Agreement does not create any contractual right or other right to receive any Options or other Awards in the future. Future Awards, if any, will be at the sole discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Participant's employment with the Company.

21. <u>Amendment</u>. The Committee has the right to amend, alter, suspend, discontinue or cancel the Option, prospectively or retroactively; *provided, that*, no such amendment shall adversely affect the Participant's material rights under this Agreement without the Participant's consent.

22. <u>No Impact on Other Benefits</u>. The value of the Participant's Option is not part of the Participant's normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit.

23. <u>Participant Undertaking</u>. The Participant hereby agrees to take whatever additional actions and execute whatever additional documents the Company may in its reasonable judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on the Participant pursuant to the express provisions of this Agreement.

24. <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

25. <u>Acceptance</u>. The Participant hereby acknowledges receipt of a copy of the Plan and this Agreement. The Participant has read and understands the terms and provisions thereof, and accepts the Option subject to all of the terms and conditions of the Plan and this Agreement. The Participant acknowledges that there may be adverse tax consequences upon exercise of the Option or disposition of the underlying Ordinary Shares and that the Participant should consult a tax advisor prior to such exercise or disposition.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Grant Date set forth above.

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| | |
|:---|:---|
| **<u>COMPANY</u>:** | **<u>COMPANY</u>:** |
| **Droneify Holdings Limited** | **Droneify Holdings Limited** |
| By: |  |
|  | Name: |
|  | Title: |

---

Address:

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| |
|:---|
| **<u>PARTICIPANT</u>:** |
| (Signature) |
| (Name) |

---

Address:

**Exhibit A**

**SHARE OPTION EXERCISE AGREEMENT**

This Share Option Exercise Agreement (this "**Exercise Agreement**") is made and entered into as of _______________ by and between Droneify Holdings Limited, an exempted company incorporated under the laws of the Cayman Islands (the "**Company**"), and the purchaser named below (the "**Purchaser**"). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Droneify Holdings Limited 2022 Equity Incentive Plan (the "**Plan**").

Purchaser Name: <u>_________________________________________________________________</u>

Address:<u>_______________________________________________________________________</u>_

Social Security Number:_____________________________________________________________

1. <u>Option</u>. The Purchaser was granted an option (the "**Option**") to purchase Ordinary Shares pursuant to the terms of the Plan and the Share Option Agreement between the Company and the Purchaser dated ________________, as follows:

Type of Option (check one):

____ Incentive Share Option

____ Non-qualified Share Option

Grant Date:<u>________________________________</u>

Number of Option shares:_____________________

Exercise Price per share:_______________________

Expiration Date:<u>_____________________________</u>

2. <u>Exercise of Option</u>. The Purchaser hereby elects to exercise the Option to purchase __________ Ordinary Shares (the "**Shares**"), all of which are vested pursuant to the terms of the Share Option Agreement. The total Exercise Price for all of the Shares is ________ (Total Shares times Exercise Price per Share).

3. <u>Payment of the Exercise Price; Delivery of Required Documents</u>. The Purchaser encloses payment in full of the total Exercise Price for the Shares in the following form(s), as authorized by the Share Option Agreement (check and complete as appropriate):

____ In cash (by certified or bank check) in the amount of $_____, receipt of which is acknowledged by the Company.

____ By delivery of ______ previously acquired Ordinary Shares together with a duly executed instrument of transfer for transfer to the Company.

____ Through a Share for Share Exchange (Contact Company CFO).

____ By a broker-assisted cashless exercise (Contact Company CFO).

____ By reduction in the number of Shares otherwise deliverable upon exercise with a Fair Market Value equal to the total Exercise Price (Contact Company CFO).

The Purchaser will deliver any other documents that the Company requires.

4. <u>Tax Withholding</u>. The Purchaser authorizes payroll withholding and will make arrangements satisfactory to the Company to pay or provide for any applicable federal, state and local withholding obligations of the Company. The Purchaser may satisfy any federal, state or local tax withholding obligation relating to the exercise of the Option by any of the methods set forth in the Plan or Share Option Agreement. The Purchaser understands that ownership of the Shares will not be transferred to the Purchaser until the total Exercise Price and all applicable withholding taxes have been paid.

5. <u>Notice of Disqualifying Disposition</u>. If the Option is an Incentive Share Option, the Purchaser agrees to promptly notify the Company if he or she transfers any of the Shares purchased pursuant to this Exercise Agreement within one (1) year from the date of exercise of the Option or within two (2) years from the Grant Date.

6. <u>Tax Consequences</u>. The Purchaser understands that there may be adverse federal or state tax consequences as a result of his or her purchase or disposition of the Shares. The Purchaser also acknowledges that he or she has been advised to consult with a tax advisor in connection with the purchase or disposition of the Shares. The Purchaser is not relying on the Company for tax advice.

7. <u>Compliance with Law</u>. The issuance and transfer of the Shares will be subject to, and conditioned upon compliance by the Company and the Purchaser with, all applicable federal, state and local laws and regulations and all applicable requirements of any stock exchange or automated quotation system on which the Shares may be listed or quoted at the time of such issuance or transfer.

8. <u>Successors and Assigns; Binding Effect</u>. The Company may assign any of its rights under this Exercise Agreement. This Exercise Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. This Exercise Agreement will be binding upon the Purchaser and the Purchaser's heirs, executors, legal representatives, successors and assigns.

9. <u>Governing Law</u>. This Exercise Agreement will be construed and interpreted in accordance with the laws of the Cayman Islands without regard to conflict of law principles.

10. <u>Severability</u>. The invalidity or unenforceability of any provision of this Exercise Agreement shall not affect the validity or enforceability of any other provision, and each provision of this Exercise Agreement shall be severable and enforceable to the extent permitted by law.

11. <u>Counterparts</u>. This Exercise Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument.

12. <u>Notice</u>. Any notice required to be delivered to the Company under this Exercise Agreement shall be in writing and addressed to the Company at the Company's principal corporate offices. Any notice required to be delivered to the Purchaser under this Exercise Agreement shall be in writing and addressed to the Purchaser at the Purchaser's address as set forth above. Either party may designate another address in writing (or by such other method approved by the Company) from time to time.

13. <u>Acknowledgement</u>. The Purchaser understands that he or she is purchasing the Shares pursuant to the terms and conditions of the Plan and the Share Option Agreement, copies of which the Purchaser has read and understands.

IN WITNESS WHEREOF, the parties have executed this Exercise Agreement as of the date first above written.

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| |
|:---|
| **<u>COMPANY</u>:** |
| **DRONEIFY HOLDINGS LIMITED** |
| By: |
| Name: |
| Title: |
| **<u>PURCHASER</u>:** |
| [Name] |

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## Exhibit 10.17

**Exhibit 10.17**

**RESTRICTED SHARE AWARD AGREEMENT**

This Restricted Share Award Agreement (this "**Agreement**") is made and entered into as of _______________ (the "**Grant Date**") by and between Droneify Holdings Limited, an exempted company incorporated under the laws of the Cayman Islands (the "**Company**"), and ______________ (the "**Grantee**").

**WHEREAS**, the Company has adopted the Droneify Holdings Limited 2022 Equity Incentive Plan (the "**Plan**") pursuant to which awards of Restricted Share may be granted; and

**WHEREAS**, the Committee has determined that it is in the best interests of the Company and its shareholders to grant the award of Restricted Share provided for herein.

**NOW, THEREFORE**, the parties hereto, intending to be legally bound, agree as follows:

1. <u>Grant of Restricted Shares</u>. Pursuant to Section 7.2 of the Plan, the Company hereby issues to the Grantee on the Grant Date a Restricted Share Award consisting of, in the aggregate, _________ Ordinary Shares of the Company (the "**Restricted Shares**"), on the terms and conditions and subject to the restrictions set forth in this Agreement and the Plan. Capitalized terms that are used but not defined herein have the meaning ascribed to them in the Plan.

2. <u>Consideration</u>. The grant of the Restricted Shares is made in consideration of the services to be rendered by the Grantee to the Company.

3. <u>Restricted Period; Vesting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. Except as otherwise provided herein, provided that the Grantee remains in Continuous Service through the applicable vesting date, and further provided that any additional conditions and performance goals set forth in Schedule I have been satisfied, the Restricted Shares will vest in accordance with the following schedule:

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| | |
|:---|:---|
| **Vesting Date** | **Restricted Shares** |
| [VESTING DATE] | [NUMBER OR PERCENTAGE OF SHARES THAT VEST ON THE VESTING DATE] |
| [VESTING DATE] | [NUMBER OR PERCENTAGE OF SHARES THAT VEST ON THE VESTING DATE] |

---

The period over which the Restricted Share vests is referred to as the "**Restricted Period**".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. The foregoing vesting schedule notwithstanding, if the Grantee's Continuous Service terminates for any reason at any time before all of his or her Restricted Shares have vested other than death or retirement (in the case of a Director), termination of the Grantee's Continuous Service is terminated by the Company or an Affiliate for Disability, the Grantee's unvested Restricted Shares shall be automatically forfeited upon such termination of Continuous Service and neither the Company nor any Affiliate shall have any further obligations to the Grantee under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. The foregoing vesting schedule notwithstanding, in the event of the Grantee's death or if the Grantee's Continuous Service is terminated by the Company or an Affiliate for Disability, 100% of the unvested Restricted Shares shall vest as of the date of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. The foregoing vesting schedule notwithstanding, if the Grantee is an Outside Director, 100% of the unvested Restricted Shares shall vest on the Grantee's attainment of mandatory retirement age for members of the Board, if any.

4. <u>Restrictions</u>. Subject to any exceptions set forth in this Agreement or the Plan, during the Restricted Period, the Restricted Shares or the rights relating thereto may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee. Any attempt to assign, alienate, pledge, attach, sell or otherwise transfer or encumber the Restricted Shares or the rights relating thereto during the Restricted Period shall be wholly ineffective and, if any such attempt is made, the Restricted Shares will be forfeited by the Grantee and all of the Grantee's rights to such shares shall immediately terminate without any payment or consideration by the Company.

5. <u>Rights as Shareholder; Dividends</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. The Grantee shall be the record owner of the Restricted Shares until the Ordinary Shares are sold or otherwise disposed of, and shall be entitled to all of the rights of a shareholder of the Company including, without limitation, the right to vote such shares and receive all dividends or other distributions paid with respect to such shares. Notwithstanding the foregoing, any dividends or other distributions shall be subject to the same restrictions on transferability as the Restricted Shares with respect to which they were paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. The Company may issue share certificates or evidence the Grantee's interest by using a restricted book entry account with the Company's transfer agent. Physical possession or custody of any share certificates that are issued may be retained by the Company until such time as the Restricted Shares vest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. If the Grantee forfeits any rights he or she has under this Agreement in accordance with Section 3, the Grantee shall, on the date of such forfeiture, no longer have any rights as a shareholder with respect to the Restricted Shares and shall no longer be entitled to vote or receive dividends on such shares.

6. <u>Grantee Representations</u>. The Grantee represents to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. The Grantee acknowledges that the Grantee has received, read and understood the Plan and the Agreement and agrees to abide by and be bound by their terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. The Grantee understands that the Restricted Shares are being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Grantee's compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Grantee set forth herein in order to determine the availability of such exemptions and the eligibility of the Grantee to receive the Restricted Shares. All of the information which the Grantee has provided to the Company is true, correct and complete as of the date this Agreement is signed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. If, at the time of grant of the Restricted Shares, there does not exist a registration statement under the Securities Act, which registration statement shall have become effective and is current with respect to the Restricted Shares, the Grantee acknowledges that the Restricted Shares to be issued to the Grantee must be held indefinitely unless subsequently registered and qualified under the Securities Act, or unless an exemption from registration and qualification is otherwise available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. The Grantee acknowledges that the Restricted Shares may be subject to such restrictions, conditions or limitations as the Company determines appropriate as to the timing and manner of any resales by the Grantee or other subsequent transfers by the Grantee of any Restricted Shares, including without limitation (a) restrictions under an insider trading policy, (b) restrictions designed to delay and/or coordinate the timing and manner of sales by the Grantee, and (c) restrictions as to the use of a specified brokerage firm for such resales or other transfers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. The Grantee is purchasing the Restricted Shares for the Grantee's own account and not with a view to the resale or distribution thereof. At no time was the Grantee presented with or solicited by any publicly issued or circulated newspaper, mail, radio, television or other form of general advertising or solicitation in connection with the offer, sale and issue of the Restricted Shares. The Grantee is not required to be registered as a broker-dealer under Section 15 of the Exchange Act and is not affiliated with any broker-dealer registered under Section 15 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. If the Grantee is a U.S. Person (as such term is defined in Rule 902(k) of Regulation S (as defined below)), at the time the Grantee was offered the Restricted Shares, the Grantee was, and at the date hereof is, an "accredited investor" as defined in Rule 501(a) under the Securities Act, and has initialed the category of Accredited Investor applicable to the Grantee on the Grantee Questionnaire attached as **<u>Exhibit A</u>** to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7. If the Grantee is not a U.S. Person (as such term is defined in Rule 902(k) of Regulation S), the Grantee shall initial the category for foreign persons on the Grantee Questionnaire attached as **<u>Exhibit A</u>** to the Agreement and the Grantee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is familiar with and understands the terms and conditions and requirements contained in Regulation S promulgated under the Securities Act ("**Regulation S**"), and specifically, without limitation, the Grantee understands that the statutory basis for the exemption claimed for the sale of the Restricted Shares would not be present if the sale, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) acknowledges that the certificate(s) or book entry account representing or evidencing the Restricted Shares contain a customary restrictive legend restricting the offer, sale or transfer of any Restricted Shares except in accordance with the provisions of Regulation S, pursuant to registration under the Securities Act, or pursuant to an available exemption from registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) represents that the offer to purchase the Restricted Shares was made to the Grantee outside of the United States, and the Grantee was, at the time of the offer and will be, at the time of the sale and is now, outside the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) has not engaged in or directed any unsolicited offers to purchase Restricted Shares in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) is neither a U.S. Person nor a Distributor (as such term is defined in Rule 902(d) of Regulation S); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) agrees that any subsequent offer for sale or sale of any such Restricted Shares shall be made pursuant to either (i) a registration statement under the Securities Act, which registration statement shall have become effective and shall be current with respect to the Restricted Shares being offered and sold, or (ii) an exemption from the registration statement requirements of the Securities Act, including the provisions of Regulation S, provided that Grantee is not a U.S. Person, is not acquiring the Restricted Shares for the account or benefit of a U.S. Person, is the sole beneficial owner of the Restricted Shares and has not pre-arranged any sale with an investor in the United States, will resell the Restricted Shares only in accordance with the provisions of Regulation S and will not engage in any hedging transactions with regard to the Restricted Shares unless in compliance with the Securities Act, but in claiming the exemption in (ii), the Grantee shall, prior to any offer for sale or sale of such Restricted Shares, obtain a favorable written opinion from counsel for or reasonably approved by the Company as to the applicability of such exemption, and the certificate evidencing such Restricted Shares shall bear an additional legend to the effect of the foregoing substantially as follows:

"THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "SECURITIES ACT") OR UNDER APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF OTHER THAN IN COMPLIANCE WITH AN AVAILABLE EXEMPTION FROM THE REGISTRATION STATEMENT REQUIREMENTS OF THE SECURITIES ACT, INCLUDING THE PROVISIONS OF REGULATION S PROMULGATED UNDER THE SECURITIES ACT, UNLESS REGISTERED UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT THE SELLER DELIVERS TO THE COMPANY AN OPINION OF COUNSEL (WHICH OPINION IS REASONABLY SATISFACTORY TO THE COMPANY) CONFIRMING THE AVAILABILITY OF SUCH EXEMPTION. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES TO THE EXTENT PERMITTED BY APPLICABLE FEDERAL AND STATE SECURITIES LAWS."

7. <u>Exemption from Registration</u>. Subject to the accuracy of Grantee's representations and warranties set forth in Section 6, the issuance of Restricted Shares by the Company to the Grantee will not require registration under the Securities Act. The Company is issuing the Restricted Shares in accordance with and in reliance upon the exemption from securities registration afforded, inter alia, by Rule 506 under Regulation D or Rule 902 under Regulation S as promulgated by the Securities and Exchange Commission under the Securities Act.

8. <u>No Right to Continued Service</u>. Neither the Plan nor this Agreement shall confer upon the Grantee any right to be retained in any position, as an Employee, Consultant or Director of the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Grantee's Continuous Service at any time, with or without Cause.

9. <u>Adjustments</u>. If any change is made to the outstanding Ordinary Shares or the capital structure of the Company, if required, the Ordinary Shares shall be adjusted or terminated in any manner as contemplated by Section 11 of the Plan.

10. <u>Tax Liability and Withholding</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. The Grantee shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid to the Grantee pursuant to the Plan, the amount of any required withholding taxes in respect of the Restricted Shares and to take all such other action as the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes. The Committee may permit the Grantee to satisfy any federal, state or local tax withholding obligation by any of the following means, or by a combination of such means: (a) tendering a cash payment; (b) authorizing the Company to withhold Ordinary Shares from the Ordinary Shares otherwise issuable or deliverable to the Grantee as a result of the vesting of the Restricted Shares; *provided, however*, that no Ordinary Shares shall be withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (c) delivering to the Company previously owned and unencumbered Ordinary Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding ("**Tax-Related Items**"), the ultimate liability for all Tax-Related Items is and remains the Grantee's responsibility and the Company (a) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant or vesting of the Restricted Shares or the subsequent sale of any shares; and (b) does not commit to structure the Restricted Shares to reduce or eliminate the Grantee's liability for Tax-Related Items.

11. <u>Section 83(b) Election</u>. The Grantee may make an election under Code Section 83(b) (a "**Section 83(b) Election**") with respect to the Restricted Shares. Any such election must be made within thirty (30) days after the Grant Date. If the Grantee elects to make a Section 83(b) Election, the Grantee shall provide the Company with a copy of an executed version and satisfactory evidence of the filing of the executed Section 83(b) Election with the US Internal Revenue Service. The Grantee agrees to assume full responsibility for ensuring that the Section 83(b) Election is actually and timely filed with the US Internal Revenue Service and for all tax consequences resulting from the Section 83(b) Election.

12. <u>Non-competition and Non-solicitation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. In consideration of the Restricted Shares, the Grantee agrees and covenants not to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contribute his or her knowledge, directly or indirectly, in whole or in part, as an employee, officer, owner, manager, advisor, consultant, agent, partner, director, shareholder, volunteer, intern or in any other similar capacity to an entity engaged in the same or similar business as the Company and its Affiliates for a period of one year following the Grantee's termination of Continuous Service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) directly or indirectly, solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any employee of the Company or its Affiliates for one year following the Grantee's termination of Continuous Service; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) directly or indirectly, solicit, contact (including, but not limited to, e-mail, regular mail, express mail, telephone, fax, and instant message), attempt to contact or meet with the current, former or prospective customers of the Company or any of its Affiliates for purposes of offering or accepting goods or services similar to or competitive with those offered by the Company or any of its Affiliates for a period of one year following the Grantee's termination of Continuous Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. If the Grantee breaches any of the covenants set forth in Section 12.1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all unvested Restricted Shares shall be immediately forfeited; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company shall have the right, but not the obligation, during the one-year period following the termination of the Participant's Continuous Service to acquire any vested Restricted Shares that vested during the one-year period preceding the termination of the Participant's Continuous Service that continue to be held by the Participant at the purchase price, if any, paid by the Participant for such vested Restricted Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Grantee hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief.

13. <u>Compliance with Law</u>. The issuance and transfer of Ordinary Shares shall be subject to compliance by the Company and the Grantee with laws of Cayman Islands as they relate to the Company and its Ordinary Shares, with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company's Ordinary Shares may be listed. No Ordinary Shares shall be issued or transferred unless and until any then applicable requirements of Cayman Islands laws, state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. The Grantee understands that the Company is under no obligation to register the Ordinary Shares with the Securities and Exchange Commission, any state securities commission or any stock exchange to effect such compliance.

14. <u>Legends</u>. A legend may be placed on any certificate(s) or other document(s) delivered to the Grantee indicating restrictions on transferability of the Restricted Shares pursuant to this Agreement or any other restrictions that the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any applicable federal or state securities laws or any stock exchange on which the Ordinary Shares are then listed or quoted.

15. <u>Notices</u>. Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the Company at the Company's principal corporate offices. Any notice required to be delivered to the Grantee under this Agreement shall be in writing and addressed to the Grantee at the Grantee's address as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time.

16. <u>Governing Law</u>. This Agreement will be construed and interpreted in accordance with the laws of the Cayman Islands without regard to conflict of law principles.

17. <u>Interpretation</u>. Any dispute regarding the interpretation of this Agreement shall be submitted by the Grantee or the Company to the Committee for review. The resolution of such dispute by the Committee shall be final and binding on the Grantee and the Company.

18. <u>Restricted Shares Subject to Plan</u>. This Agreement is subject to the Plan and is not required to be approved by the Company's shareholders. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

19. <u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon the Grantee and the Grantee's beneficiaries, executors, administrators and the person(s) to whom the Restricted Shares may be transferred by will or the laws of descent or distribution.

20. <u>Severability</u>. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

21. <u>Discretionary Nature of Plan</u>. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in its discretion. The grant of the Restricted Shares in this Agreement does not create any contractual right or other right to receive any Restricted Shares or other Awards in the future. Future Awards, if any, will be at the sole discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Grantee's employment with the Company.

22. <u>Amendment</u>. The Committee has the right to amend, alter, suspend, discontinue or cancel the Restricted Shares, prospectively or retroactively; *provided, that*, no such amendment shall adversely affect the Grantee's material rights under this Agreement without the Grantee's consent.

23. <u>No Impact on Other Benefits</u>. The value of the Grantee's Restricted Shares is not part of the Grantee's normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit.

24. <u>Grantee Undertaking</u>. The Grantee hereby agrees to take whatever additional actions and execute whatever additional documents the Company may in its reasonable judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on the Grantee pursuant to the express provisions of this Agreement.

25. <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

26. <u>Acceptance</u>. The Grantee hereby acknowledges receipt of a copy of the Plan and this Agreement. The Grantee has read and understands the terms and provisions thereof, and accepts the Restricted Shares subject to all of the terms and conditions of the Plan and this Agreement. The Grantee acknowledges that there may be adverse tax consequences upon the grant or vesting of the Restricted Shares or disposition of the Restricted Shares and that the Grantee has been advised to consult a tax advisor prior to such grant, vesting or disposition.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

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| | |
|:---|:---|
| **<u>COMPANY</u>:** | **<u>COMPANY</u>:** |
| **Droneify Holdings Limited** | **Droneify Holdings Limited** |
| By: |  |
|  | Name: |
|  | Title: |
| Address: | Address: |
| **<u>GRANTEE</u>:** | **<u>GRANTEE</u>:** |
| (Signature) | (Signature) |
| (Name) | (Name) |
| Address: | Address: |

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**<u>Exhibit A</u>**

**GRANTEE Questionnaire**

***Non-U.S. Persons:***

(A) ____ I hereby represent and warrant that I AM NOT a U.S. domestic Person.

 ****

***U.S. Persons:***

(B) ____ I hereby represent and warrant that I AM a U.S. domestic Person. (**Please also indicate below which category of Accredited Investor is applicable)**

 ****

**[To be completed below ONLY IF you ARE a U.S. Person]**

☐ The undersigned certifies that he or she is an "accredited investor" by virtue of being at least one of the following (CHECK ALL THAT ARE APPLICABLE):

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| | |
|:---|:---|
| ____(1) | I had individual income in excess of $200,000 in each of the two most recent years or joint income with my or spousal equivalent in excess of $300,000 in each of those years and have a reasonable expectation of reaching the same income level in the current year. |

---

---

| | |
|:---|:---|
| ____(2) | My individual net worth, or joint net worth with my spouse or spousal equivalent, exceeds $1,000,000. For purposes of calculating net worth under this paragraph my primary residence is not included as an asset; indebtedness that is secured by my primary residence, up to the estimated fair market value of the primary residence at the time of the purchase of securities, is not included as a liability (except that if the amount of such indebtedness outstanding at the time of purchase of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess is included as a liability); and indebtedness that is secured by my primary residence in excess of the estimated fair market value of the primary residence at the time of the purchase of securities is included as a liability. |

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____(3) I am a director or executive officer of the Company.

____(4) I hold one of the following licenses in good standing: General Securities Representative license (Series 7), the Private Securities Offerings Representative license (Series 82), or the Investment Adviser Representative license (Series 65).

## Exhibit 10.18

**Exhibit 10.18**

**RESTRICTED SHARE UNIT AWARD AGREEMENT**

This Restricted Share Unit Award Agreement (this "**Agreement**") is made and entered into as of _______________ (the "**Grant Date**"), by and between Droneify Holdings Limited, an exempted company incorporated under the laws of the Cayman Islands (the "**Company**"), and ______________ (the "**Grantee**").

**WHEREAS**, the Company has adopted the Droneify Holdings Limited 2022 Equity Incentive Plan (the "**Plan**") pursuant to which awards of Restricted Share Units may be granted; and

**WHEREAS**, the Committee has determined that it is in the best interests of the Company and its shareholders to grant the award of Restricted Share Units provided for herein.

**NOW, THEREFORE**, the parties hereto, intending to be legally bound, agree as follows:

1. <u>Grant of Restricted Share Units</u>. Pursuant to Section 7.2 of the Plan, the Company hereby issues to the Grantee on the Grant Date _______________ Restricted Share Units (the "**Restricted Share Units**"). Each Restricted Share Unit represents an unfunded, unsecured right to receive one Ordinary Share of the Company on the Payment Date(s) specified in Section 3.4, subject to the terms and conditions set forth in this Agreement and the Plan. Capitalized terms that are used but not defined herein have the meaning ascribed to them in the Plan.

2. <u>Consideration</u>. The grant of the Restricted Share Units is made in consideration of the services to be rendered by the Grantee to the Company.

3. <u>Vesting; Payment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. Except as otherwise provided herein, provided that the Grantee remains in Continuous Service through the applicable vesting date, the Restricted Share Units will vest in accordance with the following schedule (each, a "**Vesting Date**"):

---

| | |
|:---|:---|
| <br> **Vesting Date** | **Restricted Share Units** |
| [VESTING DATE] | [NUMBER OR PERCENTAGE OF SHARES THAT VEST ON THE VESTING DATE] |
| [VESTING DATE] | [NUMBER OR PERCENTAGE OF SHARES THAT VEST ON THE VESTING DATE] |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. The foregoing vesting schedule notwithstanding, if the Grantee's Continuous Service terminates for any reason at any time before all of the Grantee's Restricted Share Units have vested, the Grantee's unvested Restricted Share Units shall be automatically forfeited upon such termination of Continuous Service and neither the Company nor any Affiliate shall have any further obligations to the Grantee under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. The foregoing vesting schedule notwithstanding, in the event of the Grantee's death or if the Grantee's Continuous Service is terminated by the Company or an Affiliate due to the Grantee's Disability, 100% of the unvested Restricted Share Units shall vest as of the date of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. The Company shall, as soon as reasonably, practicable following a Vesting Date (and in no event later than March 15th of the calendar year following the calendar year in which the Applicable Vesting Date occurs) (each a "**Payment Date**"), deliver (or cause to be delivered) to the Participant one Ordinary Share with respect to each vested Restricted Share Unit, as settlement of such Restricted Share Unit and each such Restricted Share Unit shall thereafter be cancelled.

4. <u>Transfer Restrictions</u>. Subject to any exceptions set forth in this Agreement or the Plan, the Restricted Share Units may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Grantee. Any attempt to assign, alienate, pledge, attach, sell or otherwise transfer or encumber the Restricted Share Units or the rights relating thereto shall be wholly ineffective and, if any such attempt is made, the Restricted Share Units shall be forfeited by the Grantee and all of the Grantee's rights to such Restricted Share Units shall immediately terminate without any payment or consideration by the Company.

5. <u>Rights as Shareholder; Dividend Equivalents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. The Grantee shall have no rights as a shareholder of the Company with respect to Ordinary Shares covered by the Restricted Share Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. With respect to ordinary cash dividends in respect of Ordinary Shares covered by any outstanding Restricted Share Units, the Grantee shall have the right to receive an amount in cash equal to (i) the amount of any ordinary cash dividend paid with respect to one Ordinary Share, multiplied by (ii) the number of Ordinary Shares covered by such Restricted Share Units (a "**Dividend Equivalent**"). A Dividend Equivalent shall be subject to the same vesting restrictions as the Restricted Share Units to which such Dividend Equivalent relates, as set forth in Section 3.1. Unless otherwise determined by the Committee, Dividend Equivalents shall be held, without interest thereon, until delivered to the Grantee within 30 days after the date the Restricted Share Units to which such Dividend Equivalents related vest, in each case, subject to Section 8. Any Dividend Equivalents in respect of Restricted Share Units that do not vest shall be forfeited and retained by the Company. In no event shall a Dividend Equivalent be paid that would result in the Grantee receiving both the Dividend Equivalent and the actual dividend with respect to a Restricted Share Unit and the corresponding Ordinary Share.

6. <u>No Right to Continued Service</u>. Neither the Plan nor this Agreement shall confer upon the Grantee any right to be retained in any position, as an Employee, Consultant or Director of the Company. Further, nothing in the Plan or this Agreement shall be construed to limit the discretion of the Company to terminate the Grantee's Continuous Service at any time, with or without Cause.

7. <u>Adjustments</u>. If any change is made to the outstanding Ordinary Shares or the capital structure of the Company, if required, the Ordinary Shares underlying the Restricted Share Units shall be adjusted or terminated in any manner as contemplated by Section 11 of the Plan.

8. <u>Tax Liability and Withholding</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. Solely to the extent applicable, the Grantee shall be required to pay to the Company, and the Company shall have the right to deduct from any compensation paid to the Grantee pursuant to the Plan, the amount of any required withholding taxes in respect of the Restricted Share Units and to take all such other action as the Committee deems necessary to satisfy all obligations for the payment of such withholding taxes. The Committee may permit the Grantee to satisfy any federal, state or local tax withholding obligation by any of the following means, or by a combination of such means: (a) tendering a cash payment; (b) authorizing the Company to withhold Ordinary Shares from the Ordinary Shares otherwise issuable or deliverable to the Grantee as a result of the settlement of the Restricted Share Units; *provided, however*, that no Ordinary Shares shall be withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (c) delivering to the Company previously owned and unencumbered Ordinary Shares. Notwithstanding the foregoing, if the Company's Ordinary Shares are publicly-traded, in the event a taxable event with respect to this Agreement occurs during a "blackout" period (whether scheduled or unscheduled) during which Participants in the Plan, including the Grantee, are prohibited by Company policy from selling Ordinary Shares, the Grantee's statutorily required withholding obligation will be satisfied by the Company automatically withholding from the Ordinary Shares otherwise deliverable to the Grantee a number of Ordinary Shares having an aggregate Fair Market Value equal to the Grantee's statutorily required withholding obligation (with any fraction of one Ordinary Share required to satisfy such obligation being disregarded and the amount due paid instead in cash by the Participant); provided, however, the Grantee may elect, by written notice to the Committee during an open trading window, to satisfy his or her applicable federal, state or local tax withholding obligation, in which case the Grantee shall be required, prior to any applicable taxable event, to remit to the Company an amount in cash sufficient to satisfy his or her applicable federal, state or local tax withholding obligations in connection with such taxable event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. Notwithstanding any action the Company takes with respect to any or all income tax, social insurance, payroll tax, or other tax-related withholding ("**Tax-Related Items**"), the ultimate liability for all Tax-Related Items is and remains the Grantee's responsibility and the Company (a) makes no representation or undertakings regarding the treatment of any Tax-Related Items in connection with the grant, vesting, or settlement of the Restricted Share Units or the subsequent sale of any shares; and (b) does not commit to structure the Restricted Share Units to reduce or eliminate the Grantee's liability for Tax-Related Items.

9. <u>Non-competition and Non-solicitation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. During the Grantee's Continuous Service, in consideration of the Restricted Share Units, the Grantee agrees and covenants not to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contribute his or her knowledge, directly or indirectly, in whole or in part, as an employee, officer, owner, manager, advisor, consultant, agent, partner, director, shareholder, volunteer, intern or in any other similar capacity to an entity engaged in the same or similar business as the Company and its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) directly or indirectly, solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any employee of the Company or its Affiliates; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) directly or indirectly, solicit, contact (including, but not limited to, e-mail, regular mail, express mail, telephone, fax, and instant message), attempt to contact or meet with the current, former or prospective customers of the Company or any of its Affiliates for purposes of offering or accepting goods or services similar to or competitive with those offered by the Company or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. If the Grantee breaches any of the covenants set forth in Section 9.1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all unvested Restricted Share Units or vested Restricted Share Units that have not been settled shall be immediately forfeited; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Grantee hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief.

10. <u>Compliance with Law</u>. The granting of the Restricted Share Units and the issuance and transfer of Ordinary Shares shall be subject to compliance by the Company and the Grantee with laws of Cayman Islands as they relate to the Company and its Ordinary Shares, with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company's Ordinary Shares may be listed. No Restricted Share Units shall be granted and no Ordinary Shares shall be issued or transferred unless and until any then applicable requirements of Cayman Islands laws, state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel. The Grantee understands that the Company is under no obligation to register the Ordinary Shares with the Securities and Exchange Commission, any state securities commission or any stock exchange to effect such compliance.

11. <u>Notices</u>. Any notice required to be delivered to the Company under this Agreement shall be in writing and addressed to the Company at the Company's principal corporate offices. Any notice required to be delivered to the Grantee under this Agreement shall be in writing and addressed to the Grantee at the Grantee's address as shown in the records of the Company. Either party may designate another address in writing (or by such other method approved by the Company) from time to time.

12. <u>Governing Law</u>. This Agreement will be construed and interpreted in accordance with the laws of the Cayman Islands without regard to conflict of law principles.

13. <u>Section 409A</u>. Although the Company makes no guarantee with respect to the tax treatment of the Restricted Share Units, the award of Restricted Share Units and Dividend Equivalents pursuant to this Agreement is intended to comply with, or to be exempt from, Section 409A of the Code and shall be limited, construed and interpreted in accordance with such intent. The Restricted Share Units and Dividend Equivalents shall be limited, construed and interpreted in accordance with such intent; provided that the Company does not guarantee to the Grantee any particular tax treatment of the Restricted Share Units or Dividend Equivalents. In no event whatsoever shall the Company or its Affiliates be liable for any additional tax, interest or penalties that may be imposed on the Grantee by Section 409A of the Code or any damages for failing to comply with Section 409A of the Code. Dividend Equivalents shall be treated separately from the Restricted Share Units and the rights arising in connection therewith for purposes of the designation of time and form of payments required by Section 409A of the Code. Each payment under this Agreement shall be treated as a separate payment for purposes of Section 409A of the Code. In no event may the Grantee, directly or indirectly, designate the calendar year of any payment to be made under this Agreement.

14. <u>Interpretation</u>. Any dispute regarding the interpretation of this Agreement shall be submitted by the Grantee or the Company to the Committee for review. The resolution of such dispute by the Committee shall be final and binding on the Grantee and the Company.

15. <u>Restricted Share Units Subject to Plan</u>. This Agreement is subject to the Plan and is not required to be approved by the Company's shareholders. The terms and provisions of the Plan as it may be amended from time to time are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan shall govern and prevail.

16. <u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement shall be binding upon the Grantee and the Grantee's beneficiaries, executors, administrators and the person(s) to whom the Restricted Share Units may be transferred by will or the laws of descent or distribution.

17. <u>Severability</u>. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

18. <u>Discretionary Nature of Plan</u>. The Plan is discretionary and may be amended, cancelled or terminated by the Company at any time, in its discretion. The grant of the Restricted Share Units in this Agreement does not create any contractual right or other right to receive any Restricted Share Units or other Awards in the future. Future Awards, if any, shall be at the sole discretion of the Company. Any amendment, modification, or termination of the Plan shall not constitute a change or impairment of the terms and conditions of the Grantee's employment with the Company.

19. <u>Amendment</u>. The Committee has the right to amend, alter, suspend, discontinue or cancel the Restricted Share Units, prospectively or retroactively; *provided, that,* no such amendment shall adversely affect the Grantee's material rights under this Agreement without the Grantee's consent.

20. <u>No Impact on Other Benefits</u>. The value of the Grantee's Restricted Share Units is not part of the Grantee's normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit.

21. <u>Grantee Undertaking</u>. The Grantee hereby agrees to take whatever additional actions and execute whatever additional documents the Company may in its reasonable judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on the Grantee pursuant to the express provisions of this Agreement.

22. <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, shall have the same effect as physical delivery of the paper document bearing an original signature.

23. <u>Acceptance</u>. The Grantee hereby acknowledges receipt of a copy of the Plan and this Agreement. The Grantee has read and understands the terms and provisions thereof, and accepts the Restricted Share Units subject to all of the terms and conditions of the Plan and this Agreement. The Grantee acknowledges that there may be adverse tax consequences upon the grant, vesting, or settlement of the Restricted Share Units or disposition of the Ordinary Shares and that the Grantee has been advised to consult a tax advisor prior to such grant, vesting or disposition.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

---

| |
|:---|
| **<u>COMPANY</u>:** |
| **Droneify Holdings Limited** |
| By: |
| Name: |
| Title: |
| Address: |
| **<u>GRANTEE</u>:** |
| (Signature) |
| (Name) |
| Address: |

---

## Exhibit 10.19

**Exhibit 10.19**

**THE SKY GUYS LTD.**

**STOCK OPTION PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Purpose** 

The purpose of the stock option plan (the "**Plan**") is to advance the interests of The Sky Guys Ltd. (the "**Corporation**") and its shareholders by providing to the directors, officers, employees and consultants of the Corporation a performance incentive for continued and improved services with the Corporation and its affiliates. The terms of the Plan shall govern each option issued hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Term of Plan** 

The Plan is effective on March 21, 2017. Options may be granted under the Plan until the earlier of (i) the 10<sup>th</sup> anniversary of the effective date of the Plan, or (ii) the date on which the Board terminates the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Shares** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The shares ()"**Shares**") that may be issued pursuant to the exercise of options ()"**Options** ")
granted under the Plan are common shares (the "**Common Shares**") of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The aggregate number of Shares reserved for issuance under the Plan is 1,919,667 Common Shares subject
to increase or decrease by reason of amalgamations, consolidations or subdivisions as provided in Section 15. No Option may be granted
if such grant would have the effect of causing the total number of Shares subject to Options to exceed the above-noted total number of
Shares reserved for issuance pursuant to the exercise of Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Options granted under this Plan expire, terminate or cease to be exercisable without having been exercised
in full, the Shares which were reserved for issue pursuant to such Options but which were not issued become available for issue pursuant
to the exercise of other Options under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Administration** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Plan shall be administered by the board of directors of the Corporation (the "**Board** ")
or any committee of directors of the Corporation designated by the Board (such designated directors being the "**Administrators** ").
The Board or the Administrators, as the case may be, shall have full and complete authority to interpret the Plan and to prescribe such
rules and regulations and make such other determinations as it or they deem necessary or desirable for the administration of the Plan,
including without limitation the full power and authority to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) adopt rules and regulations for implementing the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) determine the eligibility of persons to participate in the Plan, the number of Shares subject to Options,
the fair market value of such Shares, and the vesting period of the Options;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) determine when Options shall be granted, which eligible persons will be granted Options, the number of
Shares subject to each Option granted to a Participant and the vesting for each Option;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) interpret and construe the provisions of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) restrict or limit the Shares and the nature of such restrictions and limitations, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) accelerate the exercisability or waive the termination of any Options, based on such factors as the Board
or the Administrators may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) make exceptions to the Plan in circumstances which it or they determine to be exceptional; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) take such other steps as it or they determine to be necessary or desirable to give effect to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Decisions of the Board or the Administrators shall be recorded in writing and shall be binding on the
Corporation and on all persons eligible to participate in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Granting of Options to Participants** 

The only persons to whom Options may be granted ("**Participants**") shall be directors, officers, employees and consultants (as that term is defined in National Instrument 45-106) of the Corporation or its subsidiaries designated from time to time by the Board or the Administrators.

The Board or the Administrators may, from time to time, subject to the provisions of this Plan and such other terms and conditions as the Board or the Administrators may prescribe, grant Options to any Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Exercise Price** 

The Board or the Administrators shall determine the exercise price (the "**Exercise Price**") for an Option but in any event the Exercise Price will be no less than the fair market value of the Shares on the day prior to the date of grant of such Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Term and Vesting** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to any accelerated termination under this Plan, each Option shall be exercisable until the tenth
anniversary of the date on which it is granted. Each Option that has not been exercised pursuant thereto on or before the close of business
on such tenth anniversary shall expire and terminate and be of no further force or effect whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless otherwise specified by the Board at the time of granting Options and except as otherwise provided
in this Plan, each Option will vest and be exercisable as follows: (i) 25% (1/4) of the Option (rounded down to the nearest whole share)
shall vest on the first anniversary of the earlier of the following dates (the "**Cliff Date** "): (x) the date of grant,
and (y) any other earlier vesting start date that is approved by the Board, and (ii) 2.08333% (1/48) of the Option (rounded down to the
nearest whole share) shall vest at the end of each month following the Cliff Date, and the vested Options shall be exercisable to and
including the tenth anniversary of the date of grant, subject to the terms and conditions of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Once a portion of an Option that has vested becomes exercisable, it remains exercisable until expiration
or termination of the Option, unless otherwise specified by the Board in connection with the grant of such Option or pursuant to Section
16. Each Option or portion of an Option that has vested may be exercised at any time or from time to time, in whole or in part, for up
to the total number of Shares with respect to which it is then exercisable. The Board or the Administrators has/have the right to accelerate
the date upon which any portion of an Option that has vested becomes exercisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Termination of Employment** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, at any time, a Participant ceases to be a full-time employee of the Corporation or a subsidiary as
a result of the Participant's retirement, either with the concurrence of the Board or the Administrators at any time or after the
person reaches the age of 65 years, any Options granted to such Participant and vested as of the Termination Date (as defined below) shall
remain exercisable by such Participant until the earlier of: (i) 90 days following the Termination Date, and (ii) the expiration of such
vested Options in accordance with their terms. As of the Termination Date, all unvested Options of such Participant shall expire and such
Participant shall no longer be eligible for a grant of Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, at any time, a Participant ceases to be a full-time employee of the Corporation or a subsidiary as
a result of the Participant's death or physical or psychological Incapacity (as defined directly below), any Options granted to
such Participant and vested as of the Termination Date shall remain exercisable by such Participant (or, in accordance with clause 14(b)(ii),
the Participant's legal representative) until the earlier of: (i) 90 days following the date of death or the date on which the Board or
the Administrators determine(s) that the Incapacity will prevent the employee from fulfilling his or her full-time duties with the Corporation,
and (ii) the expiration of such vested Options in accordance with their terms. As of the Termination Date, all unvested Options of such
Participant shall expire. "**Incapacity**" means the permanent and total incapacity of a Participant as determined in accordance
with procedures established by the Board or the Administrators for purposes of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If at any time, a Participant ceases to be a full-time employee of the Corporation or a subsidiary as
a result of the Participant's termination for cause, then, as of the Termination Date, the vested and unvested Options granted to
such Participant shall expire and be of no further force or effect whatsoever and such Participant shall no longer be eligible for a grant
of Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If, at any time, a Participant ceases to be a full-time employee of the Corporation or a subsidiary as
a result of the Participant's resignation, then any Options granted to such Participant and vested as of the Termination Date shall
remain exercisable by such Participant until the earlier of: (i) 30 days following the Termination Date, and (ii) the expiration of such
Vested Options in accordance with their terms. As of the Termination Date, all unvested Options granted to such Participant shall expire
and be of no further force or effect whatsoever and such Participant shall no longer be eligible for a grant of Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If, at any time, a Participant ceases to be a full-time employee of the Corporation or a subsidiary as
a result of the Participant's dismissal without cause, any Options granted to such Participant and vested as of the Termination
Date shall remain exercisable by such Participant until the earlier of: (i) 90 days following the Termination Date, and (ii) the expiration
of such vested Options in accordance with their terms. As of the Termination Date, all unvested Options of such Participant shall expire
and such Participant shall no longer be eligible for a grant of Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Where, in the case of a consultant, the Participant's consulting agreement or arrangement terminates
by reason of: (i) termination by the Corporation or an affiliated Corporation for any reason whatsoever other than for material breach
of the consulting agreement or arrangement (whether or not such termination is effected in compliance with any termination provisions
contained in the Participant's consulting agreement or arrangement); or (ii) voluntary termination by the Participant; or (iii)
the death or incapacity of the Participant, then any Options held by the Participant that are exercisable at the Termination Date, or
at the date of the death or incapacity of the Participant, as the case may be, continue to be exercisable by the Participant until the
earlier of: (A) the date that is 90 days from the Termination Date, or from the date of the death or incapacity of the Participant, as
the case may be; and (B) the date on which the pa1ticu lar Options expire in accordance with their terms. Any Options held by the Participant
that are not exercisable at the Termination Date, or at the date of the death or incapacity of the Participant, as the case may be, immediately
expire and are cancelled on such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Where, in the case of a consultant, the Participant's consulting agreement or arrangement is terminated
by the Corporation or an affiliated Corporation for material breach of the consulting agreement or arrangement (whether or not such termination
is effected in compliance with any termination provisions contained in the Participant's consulting agreement or arrangement), then
any Options held by the Participant, whether or not such Options are exercisable at the Termination Date, immediately expire and are cancelled
on the Termination Date at a time determined by the Board, in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If, at any time, a Participant ceases to be a director, officer or member of an advisory board of the
Corporation or a subsidiary (and is not or does not continue as a full- time employee of the Corporation or a subsidiary), the Options
granted to such Participant and vested as of the Termination Date may be exercised by such Participant until the earlier of: (i) 90 days
following the Termination Date, and (ii) the expiration of such vested Options in accordance with their terms. As of the Termination Date,
all unvested Options granted to such Participant shall cease and terminate and be of no further force or effect whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding any other provisions of this Section 8, the Board or the Administrators may extend the
expiration date of vested and unvested Options of a Participant who ceases to be a full-time employee, consultant, officer or director
of the Corporation or a subsidiary beyond the expiry dates set out above, provided that such extended dates are not later than the assigned
expiry date of any such Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Termination Date**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Participant whose employment or term of office with the Corporation or a subsidiary terminates
in the circumstances set out in Section 8, the date that is designated by the Corporation or a subsidiary, as the case may be, as the
last day of the Participant's employment or term of office with the Corporation or a subsidiary, as the case may be, provided that
in the case of termination of employment by voluntary resignation by the Participant, such date shall not be earlier than the date notice
of resignation was given, and "Termination Date" specifically does not mean the date on which any period of reasonable notice
that the Corporation or a subsidiary, as the case may be, may be required at law to provide to the Participant, would expire; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of a Participant who is a consultant and whose consulting agreement or arrangement with the
Corporation or a subsidiary, as the case may be, terminates in the circumstances set out in Section 8, the date that is designated by
the Corporation or a subsidiary, as the case may be, as the date on which the Participant's consulting agreement or arrangement
is terminated, provided that in the case of voluntary termination by the Participant, such date shall not be earlier than the date notice
of voluntary termination was received by the Corporation, and "Termination Date" specifically does not mean the date on which
any period of notice of termination that the Corporation or a subsidiary, as the case may be, may be required to provide to the Participant
under the terms of the consulting agreement or arrangement, would expire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Stock Option Plan Agreement** 

The Corporation shall enter into an agreement with each Participant on the date of grant of Options substantially in the form of <u>Schedule 1</u> (or such other form as may be acceptable to the Board or the Administrators) evidencing the Participant's right to acquire Shares in accordance with the Plan. Each agreement will specify the number of Shares that are subject to the Options and will provide for the adjustment of that number in accordance with Section 15. The Participant acknowledges that such agreement will include a provision that, in certain circumstances as set out in the agreement, will require the Participant to sell its Shares to a party making an offer to purchase all of the Shares of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Right to Employment** 

Nothing contained in this Plan or in any Option granted under this Plan shall confer upon any person any right to continued employment with the Corporation or a subsidiary or interfere in any way with the rights of the Corporation or a subsidiary in connection with the employment or termination of any such person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Status as Shareholder** 

The Participant or the Participant's legal representative shall not, by reason of the grant of any Option, be considered to be a stockholder of the Corporation until an Option has been duly exercised. No person shall enjoy any of the rights or privileges of a holder of Shares subject to Options until that person becomes the holder of record of those Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Exercise of Option** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Subsection 12(b), an Option may be exercised at any time, or from time to time, during its
term. A person electing to exercise an Option shall give written notice of the election to the Secretary of the Corporation substantially
in the form of <u>Exhibit A to Schedule 1</u>, or such other form acceptable to the Board or the Administrators. A cash payment equal
to the Exercise Price for each Share to be acquired pursuant to the exercise of Options shall accompany the written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The exercise of any Option shall be subject to the condition that if at any time the Corporation shall
determine in its sole discretion that it is necessary or desirable to comply with any legal requirement or the requirements of any stock
exchange or other regulatory authority as a condition of, or in connection with, such exercise or the issue of Shares as a result thereof,
then in any such event such exercise shall not be effective unless such compliance shall have been effected on conditions satisfactory
to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon actual receipt by the Corporation of written notice addressed to the Secretary of the Corporation
and payment for the Shares to be purchased, the person exercising the Option shall be registered in the books of the Corporation as the
holder of the appropriate number of Shares and a share certificate shall be issued to such person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The issuance of Shares upon the exercise of any Option shall be conditional upon the Participant becoming
a party to the then current shareholders agreement(s) among the Corporation and its shareholders and such other voting trust agreement
and/or power of attorney as may be required by the Board in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.** **Waiver of Information Rights** 

If Options are exercised prior to the occurrence of an initial public offering of securities of the Corporation on (an "**IPO**"), the holder of Shares acquired upon the exercise of Options shall, by acceptance of such Shares, be deemed to have waived any rights such shareholder would otherwise have to receive financial statements of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.** **Transferability** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth in Subsection 14(b), Options are not transferable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Options may be exercised only by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Participant to whom the Options were granted; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) upon the Participant's death, by the legal representative of the Participant's
estate; or

&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;(B) upon the Participant becoming mentally incapable, the legal representative having authority to deal with the property of the Participant;

provided that any such legal representative shall first deliver evidence satisfactory to the Corporation of entitlement to exercise any Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A person exercising an Option may subscribe for Shares only in the person's own name or in the person's
capacity as a legal representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Prior to the occurrence of an IPO, Shares may not be sold, traded, pledged or otherwise dealt with or
disposed of to a third patty without the prior written approval of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.** **Adjustment of Options** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The existence of any Options does not affect in any way the right or power of the Corporation or its shareholders
to make, authorize or determine any adjustment, recapitalization, reorganization or any other change in the Corporation's capital structure
or its business, or any amalgamation, combination, merger or consolidation involving the Corporation, to create or issue any bonds, debentures,
shares or other securities of the Corporation or to determine the rights and conditions attaching thereto, to effect the dissolution or
liquidation of the Corporation or any sale or transfer of all or any part of its assets or business, or to effect any other corporate
act or proceeding, whether of a similar character or otherwise, whether or not any such action referred to in this section would have
an adverse effect on this Plan or any Option granted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of any subdivision, redivision or other similar change in the Shares at any time prior to
the termination of an Option into a greater number of Shares, the Corporation shall deliver at the time of any exercise thereafter of
an Option such additional number of Shares as would have resulted from such subdivision, redivision or change if such exercise of an Option
had taken place prior to the date of such subdivision, redivision or change and the Exercise Price for such Shares shall be adjusted accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of any merger, consolidation, recapitalization or other similar corporate change affecting
the Shares at any time prior to the termination of an Option, the Board shall make such adjustments as each deems equitable to the number
and kind of shares or other property to be delivered by the Corporation on any exercise thereafter of an Option, the Exercise Price of
an Option and any other term of the Option as it deems necessary to prevent the dilution or enlargement of the rights of Participants
thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No fractional Shares shall be issued upon the exercise of an Option. If, as a result of any adjustment
under this Section 15 a Participant would be entitled to a fractional Share, the Participant shall have the right to acquire only the
adjusted number of full Shares and no payment or other adjustment shall be made with respect to the fractional Shares so disregarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.** **Change in Control** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything else in this Plan or any Stock Option Plan Agreement, the Board has the right
to provide for the conversion or exchange of any outstanding Options into or for options, rights or other securities in any entity participating
in or resulting from a Change in Control (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the Corporation entering into an agreement relating to, or otherwise becoming aware of, a transaction
which, if completed, would result in a Change in Control, the Corporation shall give written notice of the proposed Change in Control
to the Participants, together with a description of the effect of such Change in Control on outstanding Options, not less than 10 days
prior to the closing of the transaction resulting in the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of and in connection with a transaction that would constitute a Change in Control, notwithstanding
anything else in this Plan but subject to the specific terms of any Stock Option Plan Agreement to the contrary, the Board shall have
the right, in its discretion, to deal with any or all Options (or any portion thereof) issued under this Plan in the manner it deems fair
and reasonable in the circumstances of the Change in Control. Without limiting the generality of the foregoing, in connection with a Change
in Control, the Board, without any action or consent required on the part of any Participant, shall have the right to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) determine that the Options, in whole or in part and whether vested or unvested, shall remain in full force
and effect in accordance with their terms after the Change in Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) provide for the conversion or exchange of any or all Options (or any portion thereof, whether vested or
unvested) into or for options, rights or other securities in any entity participating in or resulting from a Change in Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) cancel any unvested Options (or any portions thereof) without payment of any kind to any Participant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) accelerate the vesting of outstanding Options;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) provide for outstanding Options to be purchased;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) accelerate the date by which any or all Options or any portion thereof, whether vested or unvested, must
be exercised either in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) deem any or all Options or any portion thereof, whether vested or unvested (including those accelerated
pursuant to this Plan) to have been exercised in whole or in part, tender, on behalf of the Participant, the underlying Shares that would
have been issued pursuant to the exercise of such Options to any third party purchaser in connection with the Change in Control, and pay
to the Participant on behalf of such third party purchaser an amount per underlying Share equal to the positive difference between the
Change in Control price of the Shares and the applicable Exercise Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) cancel any or all outstanding Options (including those accelerated under pursuant to this Plan) either
in whole or in part and pay to the Participant an amount per underlying Share equal to the positive difference between the Change in Control
price of the Shares and the applicable Exercise Price; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) take such other actions, and combinations of the foregoing actions or any other actions permitted under
this Section 16(c), as it deems fair and reasonable under the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of this Plan, a "**Change in Control**" means the happening of any of the
following events: (i) any transaction pursuant to which (A) the Corporation goes out of existence, or (B) any person, or any associate
or affiliated Corporation of such person (as those terms are defined in the *Canada Business Corporations Act* (the "**CBCA** "))
(other than the Corporation, a subsidiary of the Corporation or an employee benefit plan of the Corporation (including any trustee of
such plan acting as trustee)) hereafter acquires the direct or indirect beneficial ownership of securities of the Corporation representing
50% or more of the aggregate voting power of all of the Corporation's then issued and outstanding securities; (ii) the sale of all
or substantially all of the Corporation's assets to a person other than a person that was an affiliated Corporation of the Corporation;
(iii) the dissolution or liquidation of the Corporation except in connection with the distribution of assets of the Corporation to one
or more persons which were affiliated Corporation's prior to such event; or (iv) the occurrence of a transaction requiring approval
of the Corporation's shareholders involving the acquisition of the Corporation by an entity through purchase of assets, by amalgamation
or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.** **Alterations in Plan** 

The Board or the Administrators may at any time or from time to time alter, amend, vary, suspend, terminate or cancel the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.** **Termination of Plan** 

The Board may terminate the Plan at any time in its discretion. If the Plan is so terminated, no further Options shall be granted but the Options then outstanding shall continue in full force and effect in accordance with the provisions set out above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.** **Compliance with Statutes and Regulations** 

The granting of Options and the sale of Shares under the Plan shall be carried out in compliance with applicable statutes and with the regulations of governmental authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.** **Participant's Entitlement** 

Except as otherwise provided in this Plan, Options previously granted under this Plan, whether or not then exercisable, are not affected by any change in the relationship between, or ownership of, the Corporation and an affiliated Corporation. For greater certainty, all Options remain valid and exercisable in accordance with the terms and conditions of this Plan and are not affected by reason only that, at any time, an affiliated Corporation ceases to be an affiliated Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.** **Withholding Taxes** 

The exercise of each Option granted under this Plan is subject to the condition that if at any time the Corporation determines, in its discretion, that the satisfaction of withholding tax or other withholding liabilities is necessary or desirable in respect of such exercise, such exercise is not effective unless such withholding has been effected to the satisfaction of the Corporation. In such circumstances, the Corporation may require that a Participant pay to the Corporation, in addition to and in the same manner as the Exercise Price for the Shares, such amount as the Corporation is obligated to remit to the relevant taxing authority in respect of the exercise of the Option. Any such additional payment is due no later than the date as of which any amount with respect to the Option exercised first becomes includable in the gross income of the Participant for tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.** **Rights of Participant** 

No Participant has any claim or right to be granted an Option (including, without limitation, an Option granted in substitution for any Option that has expired pursuant to the terms of this Plan), and the granting of any Option is not to be construed as giving a Participant a right to remain i n the employ of the Corporation or an affiliated Corporation. No Participant has any rights as a shareholder of the Corporation in respect of Shares issuable on the exercise of rights to acquire Shares under any Option until the allotment and issuance to the Participant of certificates representing such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.** **Indemnification** 

Every Director will at all times be indemnified and saved harmless by the Corporation from and against all costs, charges and expenses whatsoever, that such Director may sustain or incur by reason of any action, suit or proceeding, taken or threatened against the Director, otherwise than by the Corporation, for or i n respect of any act done or omitted by the Director in respect of this Plan, such costs, charges and expenses to include any amount paid to settle such action, suit or proceeding or in satisfaction of any judgement rendered therein. This indemnification is in addition to any rights of indemnification a Director may have under the articles of association of the Corporation, any agreement, any vote of shareholders or disinterested directors or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.** **Participation in the Plan** 

The participation of any Participant in the Plan is entirely voluntary and not obligatory and shall not be interpreted as conferring upon such Participant any rights or privileges other than those rights and privileges expressly provided in the Plan. In particular, participation in the Plan does not constitute a condition of employment nor a commitment on the part of the Corporation to ensure the continued employment of such Participant. The Plan does not provide any guarantee against any loss which may result from fluctuations in the market value of the Shares. The Corporation does not assume responsibility for the income or other tax consequences for the Participants and they are advised to consult with their own tax advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.** **Governing Law** 

The Plan, and determinations made and actions taken in connection with the Plan, shall be governed by the laws of the Province of Ontario and the federal laws of Canada and construed in accordance therewith.

**<u>Schedule 1</u>**

**THE SKY GUYS LTD.** 

**STOCK OPTION PLAN AGREEMENT**

---

| | |
|:---|:---|
| <u>Participant:</u> | ___________________ (the "**Participant**") |
| <u>Options</u> | _____________ Shares (as defined in the Plan) (the "**Subject Shares**") |
| <u>Exercise Price</u> | $____________ (the "**Exercise Price**") |
| <u>Vesting Start Date:</u> | ________________ (the "**Vesting Start Date**") |

---

FOR VALUABLE CONSIDERATION this agreement is entered into this ______ day of ________, ____ (the "**Date of Grant**") between the Corporation and the Participant pursuant to the Stock Option Plan (the "**Plan**") implemented by the Corporation effective March ___, 2017, a copy of which has been provided to the Participant (the receipt of which is hereby acknowledged).

&nbsp;&nbsp;&nbsp;&nbsp;1. Pursuant to the Plan, the Corporation hereby grants non-assignable, non-transferable
options (collectively, the "**Options**") to acquire the Shares at the Exercise Price and agrees to issue Shares to the
Participant in accordance with the terms of the Plan upon the due exercise of the Options.

&nbsp;&nbsp;&nbsp;&nbsp;2. The Options will vest and be exercisable as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 25% (1/4) of the Options (rounded down to the nearest whole share) shall vest on that date (the "**Cliff Date**") that is the first anniversary of the Vesting Start Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 2.08333% (1/48) of the Options (rounded down to the nearest whole share) shall vest at the end of each month following the Cliff Date;

and the vested Options shall be exercisable to and including the tenth anniversary of the Date of Grant, subject to the terms and conditions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;3. The exercise of the Options granted hereby, issuance of Shares and ownership
of the Shares are subject to the terms and conditions of the Plan (all of which are incorporated into and form part of this Stock Option
Plan Agreement) and this Stock Option Plan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;4. The Participant hereby acknowledges that the Corporation may, as a condition
to the exercise of the Options, require that the Participant execute and deliver the then current shareholders agreement(s) among the
Corporation and its shareholders and such other voting trust agreement and/or power of attorney as may be required by the Board in its
sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;5. Nothing in the Plan or in this Stock Option Plan Agreement will affect the
Corporation's right, or that of an affiliated Corporation, to terminate the employment of, term of office of, or consulting agreement
or arrangement with a Participant at any time for any reason whatsoever. Upon such termination, a Participant's rights to exercise Options
will be subject to restrictions and time limits for the exercise of Options. Complete details of such restrictions are set out in the
Plan, and in particular in Section 8 thereof.

&nbsp;&nbsp;&nbsp;&nbsp;6. Each notice relating to the Option, including the exercise thereof, must
be in writing. All notices to the Corporation must be delivered personally or by prepaid registered mail and must be addressed to the
secretary of the Corporation. All notices to the Participant will be addressed to the principal address of the Participant on file with
the Corporation. Either the Corporation or the Participant may designate a different address by written notice to the other. Such notices
are deemed to be received, if delivered personally, on the date of delivery, and if sent by prepaid, registered mail, on the fifth business
day following the date of mailing. Any notice given by either the Participant or the Corporation is not binding on the recipient thereof
until received.

&nbsp;&nbsp;&nbsp;&nbsp;7. The Participant hereby agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any rule, regulation or determination, including the interpretation by the Board or the Administrators of the Plan, the Option granted hereunder and the exercise thereof, is final and conclusive for all purposes and binding on all persons including the Corporation and the Participant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the grant of the Option does not affect in any way the right of the Corporation or any affiliated Corporation to terminate the employment of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;8. This Stock Option Plan Agreement shall be binding upon and enure to the
benefit of the Corporation, its successors and assigns and the Participant and the legal representative of the Participant's estate and
any other person who acquires Shares by bequest or inheritance.

&nbsp;&nbsp;&nbsp;&nbsp;9. By executing this Stock Option Plan Agreement, the Participant confirms
and acknowledges that the Participant has not been induced to enter into this agreement or acquire any Options by expectation of employment
or continued employment with the Corporation or its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;10. This Stock Option Plan Agreement has been made in and is to be construed
under and in accordance with the laws of the Cayman Islands and subject to the exclusive jurisdiction of the courts of the Cayman Islands.

---

| | |
|:---|:---|
| THE SKY GUYS LTD. | THE SKY GUYS LTD. |
| Per: |  |
|  | Authorized Signatory |
| (Signature of Participant) | (Signature of Participant) |

---

**<u>Exhibit A to Schedule 1</u>**

**NOTICE TO EXERCISE**

---

| | |
|:---|:---|
| **TO:** | The Secretary of The Sky Guys Ltd. ("**Corporation**") |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The undersigned hereby elects to purchase _________ Shares (as defined in the Stock Option Plan of the
Corporation dated March ___, 2017 (the "**Plan**") pursuant to the terms of the stock option plan agreement dated ___________
(the "**Option Agreement**") and tenders herewith payment in full of the purchase price thereof. The undersigned acknowledges
that the issuance of Shares upon this exercise is conditional upon the undersigned becoming a party to any existing shareholders agreement,
right of first refusal and co-sale agreement and voting agreement or any other agreement providing for similar rights and obligations
as the preceding agreements, as may be required by the Board in its sole discretion, and the undersigned hereby agrees to execute and
be bound by any such agreements at the request of the Board.

*OR, if exercise is concurrent with the IPO:*

 

Contingent upon and effective immediately upon the occurrence of the IPO (as that term is defined in the Plan incorporated by reference into the Option Agreement), the undersigned hereby elects to purchase ___________ Shares pursuant to the terms of the Option Agreement, and tenders herewith payment in full of the purchase price thereof.

*OR, if exercise is after the IPO:*

 

The undersigned hereby elects to purchase _______________ Shares pursuant to the terms of the Option Agreement, and tenders herewith payment in full of the purchase price thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Please issue a certificate or certificates representing the Shares in the name of the undersigned, whose
address is as follows:

---

| | |
|:---|:---|
| Dated this ____ day of __________, ____ |  |
|  | ___________________________________________ |
|  | (Signature of Participant) |
|  | ___________________________________________ |
|  | (Name of Participant – Please Print) |

---

## Exhibit 21.1

**Exhibit 21.1**

**LIST OF SUBSIDIARIES**

---

| | | |
|:---|:---|:---|
| **Name of Subsidiary** | **Jurisdiction of**<br>**Organization** | **Percentage of<br> Ownership** |
| Droneify Ltd. | Ontario, Canada | 84.15% |
| 2659498 Ontario Ltd. | Ontario, Canada | 100% |

---

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the incorporation in this Registration Statement on Form F-1 of our report dated December 16, 2022, relating to the consolidated financial statements of Droneify Holdings Limited as of December 31, 2021 and 2020 and to all references to our firm included in this Registration Statement.

![](ex23-1_001.jpg)

Certified Public Accountants

Lakewood, CO

February 7, 2023

## Exhibit 99.1

**Exhibit 99.1**

February 8, 2023

Droneify Holdings Limited

103-482 South Service Road East

Oakville, ON Canada L6J 2X6

Ladies and Gentlemen:

Pursuant to Rule 438 under the Securities Act of 1933, as amended, I hereby consent to the references to my name in the Registration Statement on Form F-1 of Droneify Holdings Limited (the "Company"), and any amendments thereto, which indicate that I have accepted the nomination to become a director of the Company.

Sincerely yours,

---

| |
|:---|
| /s/ Larry Goldman |
| Larry Goldman |

---

## Ex-Filing

**Exhibit 107**

**Calculation of Filing Fee Tables**

<u>Form F-1</u> <br> (Form Type)

<u>DRONEIFY HOLDINGS LIMITED</u> <br> (Exact Name of Registrant as Specified in its Charter)

<u>Table 1: Newly Registered and Carry Forward Securities</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Security Type** | **Fee Calculation or Carry Forward Rule** | **Amount Registered** | **Proposed Maximum Offering Price Per Unit** | **Maximum Aggregate Offering Price** | **Fee Rate** | **Amount of Registration Fee** |
| Fees to Be Paid | Equity Ordinary Shares, $0.0001 par value<sup>(1)</sup> | Rule 457(o) |  |  | $6900000<sup>(2)</sup> | 0.00011020 | $760.38 |
| Fees to Be Paid | Equity Representative's Warrants<sup>(3)(4)</sup> | Rule 457(g) |  |  |  |  |  |
| Fees to Be Paid | Equity Ordinary Shares, $0.0001 par value, underlying Representative's Warrants<sup>(3)</sup> | Rule 457(o) |  |  | $603750<sup>(2)</sup> | 0.00011020 | $66.53 |
| Fees to Be Paid | Equity Ordinary Shares, $0.0001 par value, registered on behalf of certain selling shareholders<sup>(5)</sup> | Rule 457(o) | 1500000 | $7.00 | $10500000 | 0.00011020 | $1157.10 |
|  | **Total Offering Amounts** | **Total Offering Amounts** | **Total Offering Amounts** |  | $18003750 |  | $1984.01 |
|  | **Total Fees Previously Paid** | **Total Fees Previously Paid** | **Total Fees Previously Paid** |  |  |  | $0.00 |
|  | **Total Fee Offsets** | **Total Fee Offsets** | **Total Fee Offsets** |  |  |  | $0.00 |
|  | **Net Fee Due** | **Net Fee Due** | **Net Fee Due** |  |  |  | $1984.01 |

---

(1) Includes
 ordinary shares that may be purchased by the underwriters pursuant to their over-allotment
 option.

(2) Estimated
 solely for the purpose of calculating the amount of the registration fee pursuant to Rule
 457(o) under the Securities Act of 1933, as amended.

(3) We
 have agreed to issue to the representative of the underwriters or its designees warrants
 to purchase a number of ordinary shares equal to seven percent (7%) of the number of ordinary
 shares to be issued and sold in this offering. The warrants are exercisable for a price per
 share equal to 125% of the public offering price.

(4) No
 fee required pursuant to Rule 457(g).

(5) Reflects
 the resale by the selling shareholders set forth herein of up to 1,500,000 ordinary shares
 assuming a price of $7.00 per share, the maximum offering price in the initial public offering.